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2021 Annual Operating Budget Booki KODIAK ISLAND BOROUGH, ALASKA ANNUAL ADOPTED BUDGET FISCAL YEAR ENDING JUNE 30, 2021 AS SUBMITTED BY Michael Powers BOROUGH MANAGER May 9, 2020 AMENDED AND ADOPTED BY THE BOROUGH ASSEMBLY June 4, 2020 BOROUGH ASSEMBLY Mayor Bill Roberts Assembly Members Scott Arndt Duane Dvorak Julie Kavanaugh Andy Schroeder Rebecca Skinner Dennis Symmons James Turner Table of Contents ii INTRODUCTION ......................................... 1 Contact information: meetings, elected officials, service areas and boards………….. 1 10 Common Budget Questions .................. 5 Budget Award ............................................ 7 Mission Statement, Vision Statement and Strategic Plan …………………………………………. 8 Organizational Chart .................................. 10 Community Profile and Demographics ..... 13 BUDGET OVERVIEW ................................... 17 Budget Message ........................................ 17 Budget Calendar ........................................ 30 Budget Process Overview .......................... 31 FINANCIAL SUMMARIES ............................. 34 Fund Structure ........................................... 34 Fund Matrix ............................................... 35 Fund Summary ........................................... 40 GENERAL FUND .......................................... 44 Summaries: Revenue Sources and Estimates .............. 44 Revenue ................................................... 53 Expenditures by Department .................. 55 Expenditures by Function ........................ 56 Operational Departments: Borough Assembly ................................... 57 Manager’s Office ..................................... 61 Clerk’s Office ............................................ 63 Legal Services ........................................... 65 Finance ..................................................... 67 Information Technology Services ............ 69 Assessing .................................................. 71 Engineering and Facilities ....................... 75 Community Development ....................... 77 Building Inspection .................................. 81 Economic Development ........................... 83 General Administration ........................... 84 Parks and Recreation ............................... 85 Emergency Preparedness ........................ 86 Animal Control ......................................... 89 Education, Culture and Recreation .......... 91 Non- Profit Funding -Kodiak College and Libraries ................ 92 -Health & Social Services ....................... 93 Transfers ..................................................... 95 SPECIAL REVENUE FUNDS ........................... 96 Summaries: Revenue Sources and Estimates ............... 97 Revenue .................................................... 99 Operational Funds: Education Support .................................... 101 Land Sales Fund – Resource Mgmt. ......... 103 Buildings and Grounds Summary ............. 105 -Borough Building .................................. 106 -Mental Health Center ........................... 107 -Closed Schools ...................................... 108 -School Building Major Repairs .............. 109 -Various Borough Buildings ................... 110 -Projects Office ...................................... 111 Local Emergency Planning Committee ..... 113 Womens Bay Road Service Area .............. 115 Service Area No. 1 .................................... 117 Service Area No. 2 .................................... 119 Monashka Bay Road Service Area ............ 121 Bay View Road Service Area ..................... 123 Fire Protection Area No. 1 (Bayside FD) .. 125 Womens Bay Fire Department ................. 127 Airport Fire Protection District ................. 129 Woodland Acres Streetlight Service Area 130 Trinity Islands Streetlight Service Area…..131 Mission Lake Tide Gate Service Area........ 132 Facilities Fund ........................................... 133 Tourism Development .............................. 135 Commercial Passenger Vessel .................. 137 DEBT SERVICE FUND ...................................138 CAPITAL PROJECT FUNDS ...........................144 ENTERPRISE FUNDS ....................................194 Solid Waste Collection and Disposal ........... 197 Hospital Facilities ........................................ 201 Long-Term Care Center ............................... 203 Kodiak Fisheries Research Center ............... 205 Research Court Apartments……………………..207 911 Services ................................................ 208 APPENDIX ..................................................210 Acronyms ………………………………………………. 210 Glossary …………………………………………………. 212 Map: Location of Assembly Work Sessions 218 Mill Rates Table (Current Year) ................... 219 Maximum Allowable Tax Revenue .............. 221 INTRODUCTION 1 Kodiak Island Borough Fiscal Year 2021 Contact Information Assembly Meetings Assembly meetings are held on the second and fourth Thursdays of each month at 6:30 p.m. Regular meetings can be viewed live via internet streaming or viewed as a recording which is accessible through the Borough website. Assembly work sessions have voice recordings which can be accessed through the borough website. Meeting agendas can be viewed on the Borough website. Meeting locations: Regular meetings – held in the Assembly Chambers*, 710 Mill Bay Road Call-in number to give public comment telephonically: 855-482-9202 or 907-486-3231 Work Session meetings – held in the school district conference room*, 722 Mill Bay Road * Map of meeting locations can be found in the Appendix Meeting information: Borough Website is: http://www.kodiakak.us Elected Officials Name Office Term Ends Email Phone Bill Roberts Mayor 2022 bill.roberts@kibassembly.org 907-512-0762 Scott Arndt Assembly Member 2022 Call instead of email 414-791-3745 Duane Dvorak Assembly Member 2022 duane.dvorak@kibassembly.org 907-942-2912 Julie Kavanaugh Assembly Member 2020 julie.kavanaugh@kibassembly.org 907-942-0058 Andy Schroeder Assembly Member 2020 andy.schroeder@kibassembly.org 907-539-1979 Rebecca Skinner Assembly Member 2020 rebecca.skinner@kibassembly.org 907-512-0467 Dennis Symmons Assembly Member 2021 dennis.symmons@kibassembly.org 907-654-1045 James Turner Assembly Member 2021 james.turner@kibassembly.org 206-316-0482 Borough Departments De pa rtme nt Director Email Phone Borough Manager Michael Powers mpowers@kodiakak.us 907-486-9302 Borough Clerk Alise Rice arice@kodiakak.us 907-486-9310 Assessing Seema Garoutte sgaroutte@kodiakak.us 907-486-9350 Finance / IT Dora Cross dcross@kodiakak.us 907-486-9323 Engineering/Facilities Dave Conrad dconrad@kodiakak.us 907-486-9343 Community Development Erin Welty ewelty@kodiakak.us 907-486-9360 Fire Protection Area #1 Chris Smith csmith@kodiakak.us 907-486-4536 (Bayside Fire Department) INTRODUCTION 2 Kodiak Island Borough Fiscal Year 2021 Contact Information Service Areas with Active Boards Board Chair Service Area Em a il Phone Reed Oswalt Bay View Road Service mroswalt@alaskan.com 907-486-4486 Paul VanDyke Fire Protection Area #1 kodpvd@gmail.com 907-942-2904 Andrew Dano Monashka Bay Road Service trashfish@gci.net 907-486-6823 Scott Arndt Service Area #1 Call instead of email 414-791-3745 John Isadore Womens Bay Service izzy@acsalaska.net 907-539-7500 Craig Johnson Mission Lake Tide Gate craig.johnson@edwardjones.com 907-654-7712 Service Areas with Inactive Boards* Airport Fire Protection Service Area Service Area #2 Trinity Islands Street Light Service Area Woodland Acres Street Light Service Area *Please contact the Clerk’s Office if you are interested in serving on one of these boards. Advisory Boards Architectural/Engineering Review Board / Building Code Board of Appeals (as needed) Citizens Board of Equalization (BOE) Consolidation Committee Joint Building Code Review Committee (as needed) Kodiak Fisheries Advisory Committee Kodiak Fisheries Work Group Parks & Recreation Committee Planning & Zoning Commission (P&Z) Solid Waste Advisory Board (SWAB) INTRODUCTION 3 WHO CAN I CONTACT FOR THESE FREQUENTLY ASKED QUESTIONS? Assessing Department 907-486-9353 • What is the assessed value of a property? • What if I disagree about the assessed value of my property? • What if I need specific information on a property, like lot size or property lines? • What kinds of exemptions on property taxes are available? • Where can I apply for an exemption on my property taxes? • Where do I change my address for my tax statement? • Who do I notify of a property sale? • What documents are required to change the ownership of a property? • How is the assessed value of my property determined? Clerk’s Office 907-486-9310 • Where can I put in a public information request? • Where do I go to contact the Assembly? • Where do I go to register to vote? • Where do I go to run for a Borough elected office? • Where do I vote in municipal elections? • Where do I find public meeting information? • Where can I find a list of boards and commissions? Community Development Department 907-486-9363 • Who do I contact about planning and zoning regulations? • How do I get a zoning compliance permit? • How do I report a code violation? • Who do I contact about the animal control program? • How do I contact the Planning & Zoning Commission? • Who do I contact about the GIS program? • Who do I contact about maps? • How do I find a plat of my property? Engineering and Facilities Department 907-486-9343 • Who do I contact about the landfill or leachate treatment plant? • Who do I contact about my garbage pickup service? • Who do I contact about ongoing or upcoming capital improvement projects? • Who do I contact about Borough maintained roads? • Who do I contact about Borough maintained buildings? Finance Department 907-486-9323 • When are my property taxes due? • Where do I go to pay for my property taxes, severance, transient accommodations or excise taxes? • How can I pay for my property taxes, severance, transient accommodations or excise taxes? • Where can I get more information about severance, transient accommodations or excise taxes? • Where can I get a copy of the annual budget, annual popular report or annual financial report? INTRODUCTION 4 WHO CAN I CONTACT FOR THESE FREQUENTLY ASKED QUESTIONS? – CON’T Manager’s Office 907-486-9301 • Who do I contact about employment? • Who do I contact about the Borough’s website? • How do I contact the Borough manager? Burn Permits • Bayside Fire Department – 907-486-4536 • Women’s Bay Volunteer Fire Department – 907-487-4312 Other Miscellaneous Questions • Who do I contact about City sales tax? – City of Kodiak 907-486-8650 • Who do I contact about City water/sewer service? – City of Kodiak 907-486-8650 • Who do I contact about any building, electrical or plumbing permits? – City of Kodiak 907-486-8070 (The Borough contracts with the City for permit and inspection services) INTRODUCTION 5 Common Questions About the Budget • How many employees work for the Borough and in which department? – Page 11 • Where can I find population and other demographic information about the Kodiak Island Borough? – Pages 15-16 • What is the total budget of the Borough? – Page 24 • What percentage of the budget is spent on education? – Page 25 • Does the Borough have a financial policy that guides how funds are reported, invested and audited? – 38 • What are the reserves (or fund balances) of the Borough? – Page 40 • How much revenue comes from property taxes? – Page 46 • What are other sources of revenue for the Borough? – Pages 47-52 • How much will road service/fire service spend in my district? – Pages 115-129 • Where can I find definitions and acronyms? – Pages 210-217 INTRODUCTION 6 This page is intentionally left blank. 7 Government Finance Officers Distinguished Budget Presentation Award The Kodiak Island Borough has been a participant in the Distinguished Budget Presentation Award program since FY1990. The Borough has received the Distinguished Budget Presentation Award for all of our budgets from FY1991 through FY2020. This FY2021 budget will also be submitted to the GFOA for their consideration. 8 Kodiak Island Borough Mission Statement Our mission is to provide quality service to the public in a fiscally responsible manner while fulfilling Borough responsibilities and exercising powers required by Alaska Statute Title 29 and the Kodiak Island Borough Code of Ordinances. Vision Statement Our vision is that the Kodiak Island Borough government is trusted and respected as a leader in providing the highest quality of services to the public in a cost effective, efficient manner that is open, dynamic, and focused. Strategic Plan Fiscal Years 2018-2023 (last updated 03/22/2018) Purpose The Kodiak Island Borough government exists to provide effective and efficient government services within our powers and duties that will improve the quality of life in our community. Envisioned Future 2030 Citizens have entrusted the Kodiak Island Borough government with powers that promote a vibrant, diverse, and healthy economy and community centered on Kodiak’s unique assets like our natural resources, people, and history. This includes a focus on a reasonable cost of living and a great quality of life where diverse cultures and viewpoints come together, and an engaged community of citizens who are working, living, and thriving together. Strategic Direction 1. Encourage land and natural resources management for maximum benefit of Borough citizens. a. Review Comprehensive Plan to ensure it is current and accurate, then develop land plan consistent with the Comprehensive Plan to maximize potential for our community’s economic growth and quality of life. b. Create a long range natural resource development plan. 2. Optimize the effective use of community resources and assets through partnerships for the benefit of Borough citizens. a. Explore ways to collaborate with local governments to capitalize on community partnerships through fostering positive relationships with cities, school district, service areas, tribes and rural communities within the borough. b. Work in partnership with State and Federal Agencies. c. Promote a culture of public trust of elected officials, appointed officials, and staff through involvement of all citizens, and strive to ensure all citizens feel comfortable, empowered and desirous of participating in local government. 9 3. Foster responsible economic growth throughout the Borough. a. Promote economic development policies that enhance a diverse economy and business development. b. Advocate for a healthy and vibrant fisheries industry. c. Advocate for enhancement of local resources such as Kodiak based seafood and marine science and education opportunities, tourism, agriculture, energy, Pacific Space Port, mineral extraction, etc. d. Encourage options to meet the local need for housing affordable for citizens with financial capacities. 4. Promote fiscal policies that ensure stability and responsible government. a. The Borough Assembly will be prudent in deliberations on revenue required to fund Borough operations. b. Balance expenditures to revenues on an annual basis to ensure the health of our community. c. Foster public understanding of borough finances and operations. d. Periodically review the long-term solid waste plan and revise as necessary. 5. Promote efficient, effective and responsive processes reflective of a high-performing government. a. Evaluate opportunities for restructuring local government (e.g., consolidation or other options available under Alaska law). b. Understand the service area boards activities and borough’s responsibility in regards to service area boards. c. Seek ways to integrate committees in borough and city that maximize participation and capacity. d. Provide clear and concise direction to committees on an annual basis. FY2020 Priorities (Not in Priority Order) 1. Focus on staffing structure and ensure a smooth transition for new key leaders. 2. Establish expectations and accountability for each committee, and ensure codes and roles are clear and understood by members. 3. Explore ways to collaborate with the City of Kodiak, the school district, service areas, tribes, rural communities and civic organizations within the borough. 4. Identify potential policies for adoption to enhance economic development. 5. Develop a catalog of all available land to begin the process of developing a comprehensive land plan. 6. Look into cost of securing specialist(s) to forecast and recommend the most viable economic strategies. 7. Continue to seek opportunities for restructuring or consolidation with expectations to have a report at year’s end on opportunities and progress made. 10 11 Primary Department Fund FY2020 FY2021 Permanent Staff* Assessing General 4.0 5.0 Clerks General 3.0 3.0 Community Development General 6.0 5.0 Engineering & Facility General 5.0 6.0 Finance General 6.5 6.5 Information Technology General 2.5 2.5 Manager General 4.0 4.0 Land Sales Special Revenue 0.5 - Kodiak Fisheries Research Center Enterprise 1.5 1.0 Solid Waste Collection & Disposal Enterprise 10.0 9.0 Permanent Total 43.0 42.0 Temporary/Seasonal Staff Assessing General - 1.0 Engineering & Facility General 1.0 1.0 Finance General 0.5 0.5 Solid Waste Collection & Disposal Enterprise 1.0 1.0 Temporary/Seasonal Total 2.5 3.5 Grand Total 45.5 45.5 * Budgeted FTE's Kodiak Island Borough Personnel Summary When employees work outside of their primary department, payroll costs for that work is charged to the department or fund receiving the benefit of the employees time. 12 This page is intentionally left blank. 13 COMMUNITY PROFILE AND DEMOGRAPHICS Location Kodiak is the largest island in the State of Alaska and the second largest in the United States; second only to the Big Island of Hawaii. The island lies at the western border of the Gulf of Alaska, about 40 miles south of the Kenai Peninsula and approximately 250 miles south of Anchorage. Nearly two-thirds of the Borough lies in the Kodiak Archipelago, which includes Kodiak Island and several smaller outlying islands. One-third of the Borough is on the Alaska Peninsula, across the Shelikof Strait from Kodiak Island. The Borough encompasses a total of 7,130 square miles, making it slightly smaller than the state of Massachusetts. Accessible only by boat or plane, the Kodiak Island Borough faces unique challenges in providing services to its residents. 14 Form of Government The Kodiak Island Borough is a second-class borough and currently operates under a manager form of government. The Manager is hired by the Assembly and oversees the day-to-day affairs of the Borough. The Assembly is comprised of seven members elected by the public to govern the Borough. The Borough Mayor, also elected by the people, presides over the Assembly, votes only in the case of a tie and serves as a ceremonial figure for certain Borough affairs. The term of office for both assembly members and the Mayor is three years. The day-to-day business of the Borough is conducted within six departments: Manager’s Office, Clerk’s Office, Finance (including IT), Assessing, Community Development, and Engineering/Facilities. The Borough was incorporated in 1963, as a Second-Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended. Per AS 29.35.210, the powers of a second-class borough include providing transportation systems; regulating the sales and use of fireworks; licensing, impounding, and disposing of animals; providing garbage, solid waste, and septic waste collection and disposal; providing water and air pollution control; participating in federal or state loan programs for housing rehabilitation and improvement for energy conservation; providing for economic development; providing for the acquisition and construction of local service roads and trails; establishing an emergency services communications center; and regulating the licensing and operation of motor vehicles and operators. A second-class borough may also issue bonds to finance or make loans to finance the acquisition, construction, rehabilitation or development of public improvements. The Kodiak Island Borough has also adopted health care powers under rules outlined in AS 29.35.300. Population The general population of the Kodiak Island Borough has fluctuated between 13,000 and 14,000 with most of the population located in and around the City of Kodiak. The borough also includes five villages which are located throughout the archipelago, all accessible only by small commuter aircraft or boat. Economic Condition and Outlook The economic condition of the Kodiak Island Borough remains resilient. The main industries within the Borough are commercial fishing, tourism, government and community support services. The backbone of the Kodiak economy is, and has been, the seafood industry. This industry includes commercial fishing, fisheries research, management and enforcement, seafood processing, and maintenance and support services. While some segments of the commercial fishing industry, such as crab fisheries, have declined over time, others, like kelp harvesting have grown. The Port of Kodiak has room for over 600 vessels and consistently has ranked in the top ten ports in the country, according to the National Ocean Economics Program data. Prior to the Covid-19 pandemic, tourism was stable in Kodiak with a steady number of visitors. Cruise ships had become a growing presence, bringing many visitors each summer. The long-term effects of the pandemic have yet to be determined. An interesting niche within the Kodiak Island Borough is the Pacific Spaceport Complex, which was constructed twenty years ago. Located at Narrow Cape, the complex occupies 3,700 acres and is owned by Alaska Aerospace Development Corporation (AADC). It is also the first not owned by the Federal Government, as the AADC is a public corporation of the State of Alaska. The Pacific Spaceport Complex 15 is the first complete launch facility built in the United States since the 1960’s. Its purpose is to support the launches of small to medium-sized rocket-launched low earth orbit satellites, as well as military and scientific research missions. Kodiak is also home to the largest United States Coast Guard Base (USCG) in the United States, employing around 1,200 people and providing vital services to the marine industries that are an integral part of Kodiak’s make-up. The preliminary unemployment rate on June 30, 2020, is 8.0% compared to 5.0% on June 30, 2019. Hiring of seasonal cannery and other fisheries-related workers traditionally peaks around July and is virtually nil in December. This generally accounts for seasonal highs and lows in the local unemployment rate. This rate has fluctuated from 5.4% to 6.3% over the last five years with the overall average being 5.6%. The higher unemployment percentage in June 2020 includes the impact the pandemic has on local employment for fisheries and tourism workers. Kodiak’s general real estate market has been increasing since the late 1980’s. The demand for affordable housing increased with the 2016 closure of a major mobile home park within the Borough. From about 2000 until the general crash of the real estate market in the Lower 48 in 2007, Kodiak’s market was increasing around 6-12% annually. While the real estate economy and the general economy of this country fell drastically in 2007, the Kodiak real estate market generally continued to grow 2-4% annually through the year 2012. The market leveled out in 2013 and 2014 for the most part, but sales in 2017 show a continued value increase of about 2% annually. With the US Coast Guard announcing that they will be increasing personnel by an additional 10% over the next six years (beginning in 2020), Kodiak has begun to see an increase in sales and sale prices. Kodiak Island Borough Demographics State of Alaska, Department of Labor, Workforce Development Kodiak Island Borough State of Alaska Annual Unemployment Rate (2019) 5.6%6.1% Annual Unemployment Rate (2018) 5.8%6.6% Annual Unemployment Rate (2017)5.1%7.2% Kodiak Island Borough Specific Information (from Borough records)2018 2019 Kodiak Island Borough Kodiak Island Borough Public Education Number of Schools 13 13 Number of Staff Teachers 206 193 Support Personnel 210 189 Elections Number of Registered Voters 10,039 10,104 Votes Cast in Last Election 1,266 1,550 Voter Turnout 13%15% 16 Kodiak Island Borough Demographics, cont. United States Census Bureau - Quick Facts Estimate for 7/1/2020 2018 2019 Kodiak Island Borough Kodiak Island Borough State of Alaska United States Population 13,345 12,998 731,545 328,239,523 Age Under 5 years, percent 7.8%7.3%7.0%6.0% Under 18 years, percent 25.6%24.9%24.6%22.3% 65 Years & Over, percent 10.3%11.4%12.5%16.5% Unspecified in above groups, percent 56.0%56.4%55.9%55.2% Sex Male, percent 53.2%53.1%52.1%49.2% Female, percent 46.8%46.9%47.9%50.8% Housing Housing Units 5,455 5,501 319,854 139,684,244 Owner-occupied housing, percent 59.0%55.0%64.0%63.8% Median value of owner-occupied housing 267,700$ 275,000$ 265,200$ 204,900$ Median gross rent 1,294$ 1,369$ 1,231$ 1,023$ Families & Living Arrangements Households 4,538 4,373 253,462 119,730,128 Persons per household 2.96 3.05 2.81 2.63 Living in same house 1 year ago, percent of persons age 1 year+83.4%81.0%81.7%85.5% Lanuage other than English spoken at home, percentage of persons age 5years+24.3%25.9%16.2%21.5% Education High school graduate or higher, percentage of persons age 25years+88.5%89.9%92.7%87.7% Bachelor's degree of higher, percentage of persons age 25 years+24.1%26.0%29.2%31.5% Geography Population per square mile 2.1 2.1 1.2 87.4 Income & Poverty Median household income 74,167$ 78,281$ 76,715$ 60,293$ Per capita income in past 12 months 32,625$ 32,516$ 35,874$ 32,621$ Persons in poverty, percent 7.5%8.2%10.9%11.8% 17 Dear Mayor, Assembly Members and Residents: Enclosed is the fiscal year 2021 budget document for the Kodiak Island Borough (KIB). This budget is submitted according to Borough Code Section 3.08.030 and State Statutes and includes the goals and objectives for fiscal year 2021, revenue sources, projected revenues, and the operating plan for all departments including capital expenditures. Budget Development Considerations During the budget development process, staff considers many issues and challenges. These issues include, but are not limited to, the economic outlook for the Borough, changes in federal and state policies, controlling operational costs, and providing the current level of services to the community. In response to these challenges, staff developed a budget that included conservative revenue estimates based on a stable, local economic outlook. Staff also developed the budget to control operations costs, where possible, and include provisions to allow for the same level of services offered to the community. In addition, staff considered federal and state policies, including current direction and key issues noted by these governing bodies. This is to ensure that any direct or indirect impacts are taken into consideration while developing the Borough’s budget. What was not budgeted for in the fiscal year 2021 budget were the costs associated with the current COVID-19 pandemic. Budget Message Kodiak Island Borough Fiscal Year 2021 18 Federal Federal budget reductions and regulatory changes over the last several years have impacted the Borough. Budget reductions have affected the revenue sharing we receive from the National Wildlife Refuge Sharing and regulatory changes in the commercial fishing industry influence state fisheries revenue sharing and local severance tax collections. Federal PILT (Payment in Lieu of Taxes), which was 82% of our federal revenue in FY2020, has remained stable over the last few years and that trend is expected to continue. State The State of Alaska’s budget reductions also influence the Borough’s budget. The Borough receives revenues from the State’s Community Assistance Program (CAP), Shared Business Fisheries Tax, Fisheries Business Landing Tax, and shared Telephone & Electric taxes. From those sources, the Borough received a total of $2.460 million in 2019 and $1.352 million in 2020; a decrease of $1,108,259, or 45%. Given the State’s current fiscal situation, more reductions are anticipated in FY2021. 19 (State Continued) The current State budget cut FY2021 funding to the School Construction Debt Program. This program allows incorporated boroughs and cities to take advantage of state aid for cost of school construction debt and receive a reimbursable percentage of approved bond principal and interest. This is a $5.2 million dollar loss of funds to the borough in FY2021. In fiscal year 2008, the State of Alaska legislature established one uniform contribution rate of 22% for PERS (Public Employees Retirement Systems) employers. Prior to this legislation, separate contributions rates were used for each employer. Although the Alaska Retirement Management Board approved the actuarially determined rate for fiscal year 2021 of 30.85%, which is an increase of 7.8% from the prior year, the State is not passing that increase to employers. The Borough will not see a budget impact due to a rate change in its PERS contribution this year which will remain at 22% of covered payroll. In 2017, due to the fiscal policies of the State of Alaska, Standard & Poor’s bond rating agency had dropped the State of Alaska’s bond rating to a Negative Outlook. However, on June 13, 2018, with the passage of Senate Bill 26, the Permanent Fund Protection Act, the rating agency upgraded the State’s rating to a Stable Outlook. Prior to 2016, the state had a AAA rating; their current rating is a lessor rating of AA. The State’s credit rating affects the interest rates related to Alaska bonds and capital project funding in which the Borough participates in. 0 5000000 10000000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Debt Service & State Reimbursements Last 10 Years Debt Service Payments State Reimbursements Received 20 Local Major local policies are summarized in the Assembly’s Strategic Plan. The long-term goals are to develop balanced budgets while maintaining existing levels of service, to reduce reliance on Federal and State revenues by encouraging and developing our local economy and not reducing current fund balances. The Borough uses assessed value on property, severance tax revenues, and City of Kodiak sales tax figures to evaluate the strength of the local economy. Although the recent pandemic will not likely impact property values and property tax collections, it may weaken severance and sales tax revenues. Other non-financial events that effect the local economy are: • The June 2018 announcement by the USCG to add an additional 100 service members over the next six years to the Kodiak Coast Guard Base. • Federal appropriations of up to $32 million to study and create housing over the next five years for new personnel being assigned to the Kodiak base. • The Alaska Aerospace Corporation is continuing to schedule commercial launches at its Kodiak facility. • The Covid-19 pandemic. In October of 2018, voters passed a Maximum Allowable Tax Revenue initiative. This initiative limits increases in local tax revenues. Debt service for GO Bonds is not subject to the tax revenue limitations per AS29.45.100. Personnel Cost The Borough’s budget goal for fiscal year 2021 was to maintain a consistent level of permanent staffing. This budget includes estimated costs for vacant positions and an increased use of temporary and 21 seasonal employees. These temporary and seasonal employees are filling long vacant positions or working on projects and maintenance work not completed in prior years. Other expenses such as specialty training, certifications and licensures may increase costs and have been anticipated and included in department budgets. Based on filled, vacant, and temporary and seasonal employees, the fiscal year 2021 budget reflects a 3.3% increase in salaries and related benefits compared to FY2020 actual costs. Budgeted health insurance, the largest variable benefit, includes a 5% premium cost increase. The actual premium increase for FY2021 was 4.8%. Overview of the FY2021 Budget The Borough has five different fund types (a more in-depth description of each fund type will follow). They are: 1. General. This fund is the nucleus of the Borough; day-to-day operations are in this fund. 2. Special Revenue. These funds include revenue and expenditures for a specified purpose, such as education support, fire protection, road services, etc. 3. Debt Service. This fund is for the revenue and expenditures associated with bonded debt. 4. Capital Projects. These funds are for the various projects to upgrade, renovate, build, and repair facilities owned or maintained by the Borough. 5. Enterprise. These funds are for the business-type activities of the Borough, within which user or services fees generate revenue to cover expenditures. General Fund The General fund is the Borough’s main operating fund and is where the day-to-day business of the government is accounted for. Twenty separate departments fall into this fund. Revenues and expenses which are not pledged for any specific purpose or use reside here. In FY2020, the levied mill rate was 0.56 which, along with other State and Federal revenue, assist in funding General Fund expenditures. Due to the State eliminating funding to the School Construction Debt Program estimated decreases in severance tax revenues, among other revenue stream reductions, the FY2021 mill rate was increased to 2.75 mills. The fund balance of the General Fund at June 30, 2020 is estimated to be $6.12 million which is an increase of $828,000 from the FY2019 ending fund balance of $5.292 million. The FY2021 year-end fund balance is estimated to be $4.9 million. The reserve amounts required by code for the General Fund is $4.21 million. The FY2020 budget was adopted as a balanced budget, i.e. revenues would be the same as expenditures and there was no planned “use of fund balance” to balance this budget. The following is a list of major variances between budget and actual revenues and department expenses. The net of these major 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Filled 43 45 46 47 45 43 45 43 39 40 40 Vacant 3 1 2 1 4 6 4 3 7 6 6 Budgeted 46 46 48 48 49 49 49 46 46 46 46 Permanent Personnel Totals 22 variances, along with non-major changes, helped to contribute to the increase in fund balance in FY2020. • Federal Payment-In-Lieu-of-Tax (PILT) payment was $314k over the budgeted amount. • Penalties and interest on tax revenue was $27k over the budgeted amount. • Interest earnings on investments was $102k over the budgeted amount. • The Finance department expenses came in $137k under budget due to a position vacancy and reduced costs. • The Community Development department expenses were $387k under budget due to position vacancies and reduced costs. • The General Administration department expenses were $101k over budget largely due to increased donated trash expenses. General Fund revenues are budgeted at $8,832,496, which includes $5,180,269 (58%) from property taxes and PILT, $1,526,500 (17%) from severance and excise taxes, $72,700 (1%) from licenses and permits, $1,731,027 (20%) from intergovernmental sources, $310,000 (3.5%) from interest earnings, and $12,000 (<0.05%) from miscellaneous revenue. General Fund expenditures are expected to increase from an estimated $5,660,794 in FY2020 to a budgeted $8,832,496 in FY2021; an increase of $3,171,702. The primary reason for this increase is the $3,016,076 of additional tax revenues being paid to the Debt Service fund for school bond debt payments. The additional funds are needed to cover the expenditures the State is no longer reimbursing the Borough for. General Fund expenditures are budgeted at $8,832,496; $1,826,566 (21%) for General Government, $20,800 (<1%) for Education, $654,886 (7%) for Assessing, $320,156 (3.6%) for Public Safety, $1,671,826 (19%) for Finance/IT, $385,671 (4%) for Engineering/Facilities, $72,772 (1%) for Health and Welfare, $726,921 (8%) for Community Development, $126,750 (1.4%) for Non-Profit funding, and $3,026,148 (34%) in Transfers Out. Special Revenue Funds Special revenue funds are created when a revenue source is dedicated solely to a specific activity. Examples would be a property tax dedicated to a road service district or for education support, or a transient accommodation tax to be used only to promote tourism. In total, the Borough has twenty-six separate special revenue funds. The largest two are the Education Support Fund and the Facilities Fund. • Education Support Fund: This fund was created by the Borough in FY2012. Prior to this, the funds were part of the General Fund. Revenue for this fund comes from property taxes. For FY2021, budgeted support to the school district is $9,390,089 and is funded by a 6.45 mill rate. This is a decrease of $1,200,416 from FY2020 funding. Support funding includes $8,960,089 of direct appropriation to the school district and $430,000 of in-kind services to the school district. In-kind services are payments the Borough makes on behalf of the Kodiak Island Borough School District for expenses such as snow removal, audit services and property and liability insurance. The reserve amount required by code for the Education Support Fund is $75,000. 23 • Facilities Fund: The Borough established this fund to account for the sale of Shuyak Island to the federal government in FY1996 with the stipulation that eighty-five percent of the interest earnings from the previous year could be used for insurance, debt service (capped at 50% of the 85%), and capital projects; the remaining fifteen percent must be kept in the fund for inflation proofing. In FY2020, changes were made to allow 100%, rather than 50%, of the allowable earnings for debt service. For FY2021, the Facilities Fund is budgeted to transfer $5,000 to Buildings and Grounds, and $827,316 to Debt Service. of As of June 30, 2020, the Facilities Fund had a fund balance of $40.6 million. Since inception in FY1996 the Facilities fund has earned approximately $22.9 million in interest income. Highlights of other special revenue funds are listed below. • The Building & Grounds Fund has budgeted an increase in salary expenses, contracted services and expenses related to the closed schools in Larsen Bay and Karluk. The FY2021 total budget is a 52% increase over FY2020 actual expenditures and the budget for closed schools is 65% more than FY2020 actual expenditures. There is a planned use of $403,000 of fund balance for this fund. • The Tourism Development Fund transient accommodation tax revenues decreased 18% from $76,881 in FY2019 to $62,829 in FY2020. Revenue collections for the 4th quarter of the year went from $23,761 in FY2019 to $3,175 in FY2020; the decrease is attributed to the COVID-19 pandemic. Since the FY2021 budgeted expenditures are expected to exceed the revenue collections, there is a planned use fund balance of $55,000. • The Commercial Passenger Vessel fund, which receives revenue sharing from the State Alaska’s cruise ship passenger tax, does not have any planned expenditures in FY 2021. Debt Service Funds The Borough paid $7,733,393 in debt service payments and $4,184 in related costs totaling $7,737,577 in FY2020. The State of Alaska reimbursed the Borough for $2,552,052 (33%) of those costs. The remaining $5,185,525 was paid by local sources comprising; $2,539,516 (33%) with a 1.79 mill rate levy, $830,105 (11%) from the Facilities Fund and the $1,632,815 (21%) from the Kodiak Island Borough School District and the remaining $183,089 (2%) was paid by the Motor Vehicle Registration Tax collections. For FY2021, the Borough is budgeting to spend $8,037,369 on debt service payments and $36,301 on related costs. The increase of $299,792 is due to the new FY2020 bonds that were issued for the final costs on the High School Renovation project and the School Repair and Renovation project. For FY2021, the mill rate on debt service was decreased to from 1.79 mills to 1.55 mills. The reserve amount required by code for the Debt Service Fund is $275,000. Capital Project Funds The Borough is currently managing $129,775,705 in capital projects and is budgeting to expend $6,800,798 of these funds in FY2021. The majority ($91,116,305 (70%)) of these projects are being funded by bond issues. In previous years, the State of Alaska reimbursed the Borough for up to 60% of debt service payments for repairs and maintenance and up to 70% of the costs of new construction for school buildings, however this program was not funded by the State for FY2021. The Borough has 24 $17,417,000 in capital projects funded by state grants. This has been a major source of construction funds over the years. Other funding sources are $2,200,000 in federal grants, and $20,462,548 in loans from the Alaska Clean Water Fund. As the projects that have been funded from the proceeds of general obligation bonds are completed, the Borough will have far less construction going on. Enterprise Funds The Borough has six enterprise funds: Solid Waste Collection and Disposal, Hospital Facility, Long-Term Care Center, Kodiak Fisheries Research Center (KFRC), Research Court Apartments, and 911 Services. Highlights of these funds are below. • The Borough has been closing sections of the landfill. As a result, our liability for closure post/post closure costs have gone from $5,830,000 to $5,979,000, an increase of $149,000 (2.5%). Closure/post closure expenses and leachate management will remain two of the biggest long-term issues facing the Borough. • The Borough leases the hospital and long-term care buildings to Providence Health Care and the KFRC Building to various federal and state entities. As such, the Borough has little impact on the day-to-day operations within those buildings. • The owns an apartment complex that was under a 20-year leased to a State entity along with part of the KFRC building. With the expiration of the lease, are now being accounted for in separate enterprise fund. These apartments are currently being rented to visiting fisheries research staff and visiting borough construction and engineering contractors. • The Borough collects a tax on phone lines and retains an administration fee to recover the cost of maintaining the mapping and addressing systems. The remainder of the revenue is remitted to the City of Kodiak to support their emergency communications system. The Borough’s total budget for FY2021 is $47,978,722. The above chart enumerates the dollar value and percentages of each fund’s share of the total budgeted amount. 25 Major Policy Issues As always, one of the highest priorities of the Borough is to provide quality services to the Kodiak residents at the lowest possible costs. The major policy issues for FY2021 are maintaining the same level of service to the residents, funding the School District to provide a quality education while maintaining a stable tax rate. This year the area-wide mill rate total is 10.75 which has remained unchanged since FY2012. The total mill rate encompasses individual mill rates for the following funds: General Fund (2.75), Education Support Fund (6.45), and the Debt Service Fund (1.55). Unlike prior years, the FY2021 mill rate does not include a mill rate for the Renewal & Replacement fund (a fund that is used to care for Borough owned buildings). The mill rate normally attributed to this fund was instead used to augment the Debt Service fund to compensate for the loss of State reimbursement income. Since 74% of the total area-wide mill rate provides funding for schools (with Education Support at 60% and Debt Service for school construction at 14%) many of the budget discussions center on school funding. As a Second-Class Borough, the Borough must provide education area-wide in accordance with AS14. State school funding limits for the Borough, prescribed by the State of Alaska using a formula based on assessed property values within the Borough, contain a minimum and a maximum amount of allowable funding. For FY2020, the minimum amount of required Educational Support was $4,340,404 and the maximum was $11,205,478; the Borough provided $10,472,544 which was 93% of allowable maximum. In FY2021, the maximum allowable funding is $11,430,096 and the Borough is funding Educational Support at $9,390,089 or 82% of the maximum amount. Future budget discussions will be focused on: the amount of Education Support funding provided to the school district, how to pay for the school debt bond payments without reimbursements from the State, and how to pay for the repair and maintenance of Borough owned buildings. Alternatives to raising the mill rate may include reducing the annual school district appropriation, suspending maintenance and repairs on buildings, reduce current programs or levels of services, or a combination thereof. Interest rates are low and potential earnings are difficult to predict. The COVID-19 pandemic impacted what had been an improving investment market. However, once the interest rates declined into negative territory, any callable bonds the Borough had invested in were called and reissued at substantial lower interest rates. While the low rates are good for the bond refunding the Borough is proceeding with, it is not good for investing. Currently, one-year treasury yields are 0.1, 5-year treasury yields are 0.3 and 10-year treasury yields are 0.8; 2 year T-Notes are -2.5. The FY2021 budget reflects a 35% reduction in interest income compared to FY2020. 26 This year the Borough budgeted non-profit contributions from the General Fund at $126,750. This is equal to approximately 0.09 mills of property tax. Every year the Assembly reviews applications for funding of non-profit organizations. Traditionally the Borough has allocated a considerable amount of money towards non-profit agencies within the Kodiak Island Borough, however due to the overall budget constraints reductions were made in the FY2021 budget compared to the FY2020 budget and this trend is expected to continue. The Borough is responsible for solid waste collection and disposal ‘on the road system’ and manages the municipal landfill and leachate treatment plant in Kodiak. Currently, the Borough contracts out for dumpster and roll-cart collection services. The Borough awarded a new garbage collection contract for the years 2021 through 2027 to Alaska Waste. Landfill fees are set annually and begin July 1st; the base tonnage fee remains unchanged for FY2021. Making the budget process difficult is the continued uncertainty regarding State and Federal funding. Especially when the funding or cut information comes after the deadline for approved local municipal budgets. Along with the late information is the increasing costs of complying with unfunded State and Federal regulations such as the Clean Water Act, wetland regulations, senior exemption allowances and others. 27 Tax Rate and Financial Analysis This budget keeps the combined mill rate at 10.75 mills for the Borough’s area-wide funds: General Fund, Debt Service Fund, Education Support Fund and the Renewal and Replacement. The voters of the Kodiak Island Borough initiated and passed a property tax revenue cap in October of 2018, limiting the amount of future allowable tax revenues to the increase in CPI and improved or new construction. The State has generally paid for 60 - 70% of the Borough’s principal and interest payments for school construction related debt. However, in FY2020 the State Governor vetoed 50% of the program’s distributions (reducing reimbursement to 30 - 35%) leaving the Borough to find a way to pay for 65% of the payments instead of 30%. For FY2021, the program went completely unfunded which leaves the Borough to pay all of the $8,073,670 of expenses. Various service districts within the Borough levy a property tax to provide service within the Borough. These levies range from 0.10 mills up to 2.5 mills. A complete schedule of these rates can be found in the appendix. This year the Borough’s Education Support budget is $9,390,089 and the debt service budget for education facilities is $8,073,670 for a total of $17,463,759. This contribution is equal to approximately 12.00 mills of property tax; however, only 8.00 mills (11,646,622) is funded directly by property taxes. The remaining 4.00 mills are from other revenue sources, such as transfers from the General and Facilities Funds. Property assessments have increased from last year largely due to new construction and reappraisals of existing property. A consistent pattern of reappraisals, standardization, and increased quality of both the real and personal property rolls has continued. The taxable value of real and personal property for FY2021 is $1,455,827,742, an increase of $34,283,467 (2%) over the FY2020 value of $1,421,544,275. The Kodiak Island Borough School District (KIBSD) is a component unit of the Borough. As such, their budget is not included in this document for three reasons: 1) the School District is still formulating their budget, 2) their budget is submitted to and approved by the State of Alaska, and 3) the school board is a governing board and the Borough Assembly has no control over their budget except for the amount of local support funding made. The economy of the Borough is resilient, even with the recent downturn in fisheries. Kodiak Island has a diversified economic base including fishing, timber harvesting, tourism, a rocket launch facility, a Fisheries Research Center, and a large contingent of Federal and State government employees including a Coast Guard base. It is imperative that the borough continue to be financially responsible and seek cost-effective improvements throughout Borough operations. 28 Objectives for FY2021 As this document describes, every department has unique goals and objectives. ‘Goals’ represent the long-term purpose of the respective department and ‘objectives’ encompass the measurable steps required to accomplish department goals. The Borough performs some of its functions on an area wide-basis and some on a service-area basis. Tasks such as property assessment, tax collection, planning and zoning, and administrative functions are performed on an area-wide basis. State law mandates that the Borough is procure funds to pay for school district operations. Fire protection, road maintenance, building inspections, and other functions are performed on a service area basis. The revenues from these areas fund these services. The High School Renovation and Renewal Project is the largest capital project that the Borough has ever funded. The construction is completed and is in use by students and school personnel. The Borough is working on many long-term projects. Most of these are described in the Capital Projects funds. That section enumerates projects scheduled for completion in FY2021 versus the years to come. The COVID19 pandemic is expected to continue to well into FY2021 and will impact the borough and its residents. Looking past Fiscal Year 2021 The Borough will have to find other sources of revenues or cut expenditures in the coming years to pay for school education support, school bond debt payments and deferred maintenance of Borough owned buildings (including schools). The Borough does not currently plan on issuing any new bond debt and the current debt payment have peaked; annual payments start to decline in FY2025. Since indications are that interest rates will not rise much in the next two to three years, there is renewed interest in changing some of our investment policies and/or contracting with an investment firm to manage all or part of the Borough’s Facility Fund. Despite the national trend, the Borough believes that the assessed value of Kodiak Island property will continue to rise, although the recent announcements of the Federal government’s plans to evaluate, and potentially create new housing, for the increased staffing occurring at the Coast Guard base may affect the expected rise in property values Concerns over the age and deferred maintenance on Borough buildings and infrastructure continue, especially as maintenance costs rise and the cost of asbestos abatement is discussed. Following the completion of the High School Renovation project, the Borough does not anticipate much major school construction for the near future. Presently, infrastructure is not adequate to handle the needs of our senior citizens or those with physical, mental health or addiction disabilities. The Borough operates the baler facility, landfill and leachate treatment plant. The Borough is continuing to work on a major project that seeks to expand the landfill and extend its useful life. Diversion and recycling are being discussed as a way to reduce the amount of intake into the facility. The total cost of this project is expected to be $32,000,000. The leachate treatment plant is functioning; however, 29 technicians are still working to configure the chemicals and process for optimum performance. Since the leachate effluent has changed over time, additional changes to the plant and treatment process are being evaluated. Acknowledgment Particular appreciation is directed to all members of the Kodiak Island Borough staff for their cooperative, efficient, and dedicated service during the past year. Special appreciation is also given to the finance department for their assistance in the preparation of this document. Also, we would like to give thanks to each member of the Assembly for their interest and support in adopting legislation, goals, and policy guidance that allows staff to conduct the financial affairs of the Kodiak Island Borough in a progressive and responsible manner. Conclusion The requested appropriations have been made with careful consideration and much conversation between staff, the assembly and the public. The Assembly’s strategic plan containing their goals and objectives helped staff build their budgets. Staff encourages participation and comments from the residents of the Kodiak Island Borough on the budgeting process. Respectfully submitted, KODIAK ISLAND BOROUGH Michael Powers Dora Cross Administrative Official Finance Director 30 BUDGET CALENDAR KODIAK ISLAND BOROUGH FISCAL YEAR 2021 The following activity is outlined as essential for the orderly formulation of the Fiscal Year 2021 Borough budget (July 1, 2020 through June 30, 2021). Proposed Date Specific Date Budget Action Item Participants February February 15, 2020 Assembly discusses mill rates, General Fund, and Special Revenue and Enterprise Funds without active boards. Manager, Finance Director, Department Directors & Assembly February 27, 2020 Assembly discusses mill rates and General Fund Manager, Finance Director & Assembly March March 14, 2020 Assembly revies budgets for General Fund and Enterprise Funds with active boards. (Cancelled due to COVID-19) Manager, Finance Director, Department Directors & Assembly March 31st March 31, 2020 Active Service Area Board budgets due to Clerk & Finance Department Service Area Board Chairs April April 11, 2020 Assembly meets with Service Area Representatives to discuss budgets. (Cancelled due to COVID-19) Manager, Finance Director, Boardchairs & Assembly By April 30th April 27, 2020 School District Funding Request to Manager School District & Manager By April 30th April 30, 2020 Manager's Budget presentation to Assembly Manager & Assembly May May 14, 2020 Assembly reviews budget Manager, Finance Director, Department Directors & Assembly May May 21, 2020 First Reading of Budget Ordinance Manager, Finance Director & Assembly May May 21, 2020 Resolution Identifying minimum funding to the School District (within 30 days of receipt of School District Budget Request) Manager, Finance Director & Assembly By June 10th June 4, 2020 Second Reading of Budget Ordinance & adoption of Budget Ordinance Manager & Assembly June 18, 2020 Resolution for Annual Fee Schedule Manager, Finance Director, Department Directors & Assembly 31 Budget Process Overview Budget Preparation Budget preparation allows departments, service areas and enterprise fund directors to assess their goals and objectives in order to create a financial plan for accomplishing them. The assembly must adopt a final budget by June however the process begins as much as six months earlier. During those six months, staff and service board meetings are held to discuss potential changes in external (public) services, internal services, expected revenues and requested expenditures. These meetings set the ‘groundwork’ for the Manager’s Budget submission to the Assembly which must occur prior to May 1st each year. Budget meetings with the Assembly are usually divided into three parts: • All General Fund departments and those Special Revenue, and Enterprise funds that do not have active boards. o For these departments and funds, Borough staff prepares the budget information for inclusion in the Manager’s Budget. • Special Revenue and Enterprise funds that do have active boards. o For these funds, board members meet and prepare budgets that must be submitted to the Clerk’s office by March 31st for inclusion in the Manager’s Budget. • School Board Funding Request o The local school board submits a funding request to the assembly prior to May 1st. The assembly has 30 days from the boards submission date to pass a resolution identifying the minimum amount of funding appropriated to the district. During the period of February through May, the Assembly reviews the budget with the Manager, Finance director, department directors and board chairs. To approve the budget, there must be two public readings of the budget with final approval by June 10th of each year. The Borough Clerk is responsible for posting notices of the public hearing. The budget shall be adopted by a favorable vote of a majority of all members of the Assembly through the adoption of an ordinance setting forth the appropriation levels and a resolution setting the mill rates. The Borough Mayor may veto the ordinance, but his veto may be overridden by two-thirds of all the votes to which the Assembly is entitled on the question. If the Assembly does not adopt a budget by June 10, the Manager’s budget shall be deemed to be adopted. Upon adoption of the budget through Assembly passage of the budget ordinance, the budget is in effect for the budget year (July 1-June 30). 32 Budget Amendments Amendments to the budget can occur anytime during the fiscal year. Generally, the following actions are required: • By ordinance o All new appropriations that amends the annual budget ordinance, o Acceptance of grant funds which are unlimited as to use or subject to only general limitations • By resolution o To move (appropriate) amounts between departments and projects, o Acceptance of grant funds which are limited by the grantor to a specific use or category of use Balanced Budget All funds of the Borough must have a balanced budget. For the Borough, this means that revenues, plus a use of unrestricted fund balance, must equal expenditures. Basis of Accounting for Budget The term “basis of accounting” is used to describe the timing in which transactions or events are recognized. The Borough uses this same basis for our budgeting. Fund Type Accounting Basis Budgeting Basis General Fund Modified Accrual Modified Accrual Special Revenue Funds Modified Accrual Modified Accrual Debt Service Fund Modified Accrual Modified Accrual Capital Projects Modified Accrual Modified Accrual Enterprise Funds Full Accrual Full Accrual The Borough budgets government-type funds (General Fund, Special Revenue Funds, and Debt Service Fund) and Capital Projects funds on a modified accrual basis. Revenues are recognized only when they are both measurable and available. Revenues are considered available if they are received within 60 days of year end. Expenditures are recognized when they are incurred, but an exception to this general rule is principal and interest on general long-term debt, which is recognized when due. Prepayment of insurance and similar services extending over more than one year is allocated to the years benefited. The Enterprise Funds (Municipal Solid Waste and Collection, Hospital, Long-Term Care Center, Kodiak Fisheries Research Center, Research Court Apartments, and E911 Services) also budget obligations when incurred as expenditures. Revenues are recognized when they are obligated to the Borough (for example, user fees are recognized as revenues when services are provided). All Borough funds are appropriated annually, with the single exception being Capital Projects. These are appropriated by project when they are presented to the assembly for approval. Capital projects appropriations are adjusted in the budget amendments. 33 Date Appropriations Shall Lapse Funds appropriated by the assembly shall lapse for further use as follows: • For encumbrance (obligation): o All single-year funds shall lapse for the purpose of encumbrance on the last day of the fiscal year. o All multi-year appropriations (usually capital projects) shall normally lapse upon completion of the project. • For Expenditure (payments): o All single-year funds shall lapse upon payment of those encumbrances outstanding at fiscal year-end. o All multi-year funds shall normally lapse at project completion. In other words, in all funds except Capital Projects, when goods and services are not received by the end of the year, the encumbrances lapse. 34 FINANCIAL SUMMARIES FUND STRUCTURE The Borough accounts are organized on the basis of fund and account groups, each of which is considered a separate accounting entity. Operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses as appropriate. Borough resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds in this report are grouped into five generic fund types within two broad fund categories. Government Fund Types General Fund: The General Fund is the operating fund of the Borough and is used to account for all financial resources, except those that are required to be accounted for in another fund. Special Revenue Funds: Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for special purposes. We include neighborhood service districts such as road, fire, and street lighting, as well as maintenance of our buildings and grounds, education and tourism development in this fund type. Debt Service Funds: The Debt Service Funds are used to account for the accumulation of, resources for, and the payment of general long-term debt principal, interest, and related costs. The bulk of our debt is in the form of general obligation bonds which are accounted for primarily in one debt service fund. Capital Project Funds: Capital Project Funds are used to account for financial resources to be used for acquisition or construction of major capital facilities and equipment. We use these funds to track projects funded by bond revenue, grants, and other large maintenance projects. Proprietary Fund Types Enterprise Funds: Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges, or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The Borough has six Enterprise Funds: Municipal Solid Waste Collection and Disposal, Hospital Facility, Long-Term Care Center, Kodiak Fisheries Research Center, Research Court Apartments, and 911 Emergency Telephone Services. 35 Fund 495/497 – Health Services Projects 36 FISCAL POLICY This fiscal policy, adopted March 15, 1990, is a statement of the guidelines and goals that will influence and guide the financial management practices of the Kodiak Island Borough. A fiscal policy that is adopted, adhered to, and regularly reviewed is recognized as the cornerstone of sound financial management. Effective fiscal policy: • contributes significantly to the Borough’s ability to insulate itself from having a financial crisis; • enhances long-term financial credibility by helping to achieve the highest bond and credit ratings possible; • promotes long-term financial stability by establishing clear and consistent guidelines; • directs attention to the total financial picture of the Borough rather than single-issue areas; • promotes the view of linking long-run financial planning with day-to-day operations; and • provides the Assembly and the citizens of the Borough with a framework for measuring the fiscal impact of government services against established fiscal parameters. To these ends, the following policy statements are provided: Operating Budget Policies (Adopted FY1990) The budget is a plan for allocating resources. The objective is to enable service delivery with allocated resources. Services must be delivered to the citizens at a level that will meet real needs as efficiently and effectively as possible. The Borough’s goal is to pay for all recurring expenditures with recurring revenues and to use non-recurring revenues for non-recurring expenditures. It is important that a positive undesignated fund balance and a positive cash balance be shown in all governmental funds at the end of each fiscal year. When deficits appear to be forthcoming within a fiscal year, spending during the fiscal year must be reduced sufficiently to create a positive undesignated fund balance and a positive cash balance. When possible, the Borough will integrate performance measurement and productivity indicators within the budget. This should be done in an effort to improve the productivity of Borough programs and employees. Productivity analysis should become a dynamic part of the Borough administration. The budget must be structured so that the Assembly and the general public can readily establish the relationship between expenditures and the achievement of service objectives. The individual department and agency budget submissions must be prepared with the basic assumption that the Assembly will always attempt to maintain the current tax rates. Budgetary review by the Assembly will focus on the following basic concepts: Staff Economy The size and distribution of staff will be a prime concern. The Assembly will seek to limit staff increases to areas where approved program growth and support absolutely requires additional staff and to reduce staff where this can be done without adversely affecting approved service levels. Capital Construction Emphasis will be placed upon continued reliance on a viable level of pay-down capital construction to fulfill needs in an Assembly approved comprehensive capital improvements program. 37 Program Expansions Proposed expansion to existing programs and services must be submitted as budgetary increments requiring detailed justification. Every proposed program or service expansion will be scrutinized on the basis of its relationship to the health, safety, and welfare of the community. New Programs New programs or services must also be submitted as budgetary increments requiring detailed justification. They will be evaluated on the same basis as program expansion plus an analysis of long-term fiscal impacts. Existing Service Costs The justification for base budget program costs will be a major factor during budget review. Administrative Costs In all program areas, administrative overhead costs should be kept to an absolute minimum. Functions of all departments and agencies should be reviewed in an effort toward reducing duplicate activities within the Borough government and the autonomous and semi-autonomous agencies, which receive appropriations from the Borough. The budget will provide for adequate maintenance of capitalized assets and for their orderly replacement. The administration will maintain budgetary controls at the character level within each organizational unit. (Characters are broad classifications of expenditures: fringe benefits, contractual services.) The preparation and distribution of budget status reports, interim financial statements, and annual financial reports is required. The Borough will remain current in payments to the retirement system. The Borough will develop and annually update a long-range (three to five years) financial forecasting system that will include projections of revenues, expenditures, and future costs and financing of capital improvements that are included in the capital budget. The Borough will develop and annually update a financial trend monitoring system which will examine the fiscal trends from the preceding five years- trends such as revenues and expenditures per capita and adjusted for inflation, liquidity, or operating deficits. Where possible, trend indicators will be developed and tracked for specific elements of the Borough’s fiscal policy. Debt Policies (Amended in FY2010) • The Borough will not fund current operations from the proceeds of borrowed funds. • The Borough will confine long-term borrowing to funding of capital improvements or projects that cannot be financed from current revenues. When the Borough finances capital projects by issuing bonds, it will repay the debt within a period not to exceed the expected useful life of the project. • Target debt ratios will be annually calculated and included in the review of financial trends. • Net debt, as a percentage of the estimated market value of taxable property, should not exceed two percent. • The ratio of debt service expenditures as a percent of governmental fund expenditures should not exceed 15 percent. • The Borough recognizes the importance of underlying and overlapping debt in analyzing financial conditions and will regularly analyze its indebtedness. • The Borough will maintain good communications about its financial condition with bond and credit institutions. 38 • The Borough will follow a policy of full disclosure in every annual financial statement and bond official statement. • The Borough will avoid borrowing on tax anticipation and maintain adequate fund balance. Revenue Policies (Adopted in FY1990) • The Borough will try to maintain a diversified and stable revenue structure to shelter it from short-run fluctuations in any single revenue source. • The Borough will attempt to maintain a diversified and stable economic base by supporting policies that promote tourism, fishing, agriculture, commercial, and industrial employment. • The Borough will estimate its annual revenues by an objective, analytical process. • The Borough, where possible and reasonable, will institute user fees and charges for specialized programs and services. Rates will be established to recover operational, as well as capital or debt service costs. • The Borough will regularly review user fee charges and related expenditures to determine if pre- established recovery goals are met. • The Borough will maintain a sound, consistent, and equitable ad valorem property tax assessment program. The Borough will follow an aggressive policy of collecting tax revenues where the annual level of uncollected current property tax should not exceed two percent. • The Borough should routinely identify governmental aid funding possibilities. However, before applying for and accepting intergovernmental aid, the Borough will assess the merits of a particular program as if it were funded with local tax dollars. Local tax dollars will not be used to make up for losses of intergovernmental aid without first reviewing the program and its merits as a budgetary increment. Investment Policies (Adopted in FY1990) • The Borough will maintain an investment policy based on the Government Finance Officers Association (GFOA) model investment policy. • The Borough will conduct an analysis of cash flow needs on an ongoing basis. Disbursements, collections, and deposits of all funds will be scheduled to ensure maximum cash availability and investment potential. • When permitted by law, the Borough will pool its various funds for investment purposes. • The Borough will obtain the best possible return on all investments consistent with the underlying criteria of liquidity and safety of principal. • The Borough will regularly review contractual opportunities for consolidated banking services. Accounting, Auditing, and Reporting Policies (Adopted in FY1990) • The Borough will establish and maintain a high standard of accounting practices in conformance with Generally Accepted Accounting Principles (GAAP). • The accounting system will maintain records on a basis consistent with accepted standards for government accounting according to the Government Accounting Standards Board (GASB). • Regular monthly financial statements and annual financial reports will present a summary of financial activity by departments and agencies within all funds. • Where possible, the reporting system will also provide monthly information on the total cost of specific services by type of expenditure and revenue by fund. • An independent firm of certified public accountants will perform an annual financial and compliance audit and will publicly issue an opinion, which will be incorporated into the Comprehensive Annual Financial Report (CAFR). • The Borough will annually strive for the GFOA Certificate of Achievement for Excellence in Financial Reporting and the GFOA Distinguished Budget Presentation Award. 39 Capital Budget Policies (Adopted in FY1990) • The Borough will make all capital improvements in accordance with an adopted capital improvements program. • The Borough will develop a multi-year plan for capital improvements that considers development policies and links the development process with the capital plan. • The Borough will enact an annual capital budget based on the multi-year capital improvement program. • The Borough will coordinate development of the capital improvement budget with development of the operating budget. Future operating costs associated with new capital projects will be projected and included in operating budget forecasts. • The Borough will maintain all its assets at a level adequate to protect its capital investments and to minimize future maintenance and replacement costs. • The Borough will identify “full-life” estimated cost and potential funding sources for each capital project proposal before it is submitted to the Assembly for approval. • The Borough will determine the total cost for each potential financing method for capital project proposals. • The Borough will identify the cash flow needs for all new projects and determine which financing method best meets the cash flow needs of the project. Reserve Policies (Amended FY2020) • Fund Balance policy. Fund balance is the uncommitted resources of a fund. Borough policy is to construct the various fund balance budgets in such a way that there will be sufficient uncommitted resources to cover cash flow needs at all times, regardless of seasonal fluctuations in expenditures or reserves, and to provide adequate reserves for emergency needs. • The Borough will maintain a fund balance designation for fiscal cash liquidity purposes (i.e., fiscal reserve) that will provide sufficient cash flow to minimize the potential short-term tax anticipation borrowing. Specific fund balance reserves and the purposes of these reserves are as follows: o General Fund Operating Reserves. The borough will maintain a general fund operating reserve to provide for adequate cash flow, budget contingencies and insurance reserves. The cash flow reserve within the general fund is an amount equal to six months of budgeted operating expenditures and one-half the current liability insurance deductible amount. o Education Support Fund. The borough will maintain a cash flow reserve to provide for unexpected revenue shortfalls. The cash flow within the education support fund is equal to $75,000. o Debt Service Fund. The borough will maintain a cash flow reserve to provide for unexpected revenue shortfalls. The cash flow reserve within the debt service fund is equal to $275,000. o Solid Waste Disposal and Collection Fund. The borough will maintain an operating reserve for adequate cash flow, budget contingencies and loan payment reserves. The cash flow reserve within the solid waste disposal and collection fund is an amount equal to six months of budgeted operating expenditures and the loan payment reserve is the following year’s total loan payments. • Use and restoration of reserves o All expenditures drawn from reserve accounts require prior assembly approval unless previously authorized by the assembly for expenditure within the assembly approved annual budget. o If reserves and/or fund balances fall below the required level set in subsection A of this section, the assembly shall include within its annual budget a plan to restore reserves and/or fund balances to the required levels. 40 Special Debt Capital General Revenue Service Projects Enterprise Fund Funds Funds Funds Funds Total Revenues Property Taxes 3,814,269 10,862,491 2,445,791 - - 14,090,249 Transient Accomodation Tax - 20,000 - - - 94,000 Non Ad Valorem Taxes 28,000 - 210,000 - - 279,500 Payment in Lieu of Taxes 1,338,000 - - - - 1,331,000 Severence Taxes 1,124,000 - - - - 1,435,000 Excise Tax 402,500 - - - - 200,000 Penalties & Interest Fees 210,000 - - - 4,000 153,500 Rents & Royalties - 837,951 - - 1,774,378 2,952,492 User Fees - - - - 4,473,000 3,913,925 Land Sales Activities - 28,464 - - - 200,000 Licenses & Permits 72,700 33,600 - - - 95,500 Federal Revenues 190,000 50,000 - 63,634 - 112,500 State Revenues 1,541,027 9,774 - 224,624 58,018 7,100,800 Fines - - - - - - Interest Earnings 100,000 787,657 - - 239,597 879,058 Sale of Bonds/Loans - - - 3,226,357 85,015 5,737,058 Miscellaneous 12,000 1,017,729 - 486,208 3,975,012 2,863,712 Total Revenue 8,832,496 13,647,666 2,655,791 4,000,823 10,609,020 41,438,294 Transfers In - 15,072 5,417,879 1,895,695 - 734,346 Total Sources of Funds 8,832,496 13,662,738 8,073,670 5,896,518 10,609,020 42,172,640 Expenditures General Government 3,884,063 - - 195,287 - 4,200,180 Education - 9,390,089 8,073,670 889,399 2,105,975 24,830,272 Health & Welfare 72,772 - - 962,901 2,547,704 2,911,792 Assessing 654,886 - - - - 739,669 Community Development 726,921 - - 16,974 - 894,786 Resource Management - 306,167 - - - 465,603 KIB Buildings - 1,238,382 - 193,424 57,483 1,004,741 LEPC - 10,072 - - - 15,812 Road Maintenance - 728,884 - - - 771,118 Public Safety 320,156 1,081,828 - 960,145 300,000 1,822,113 Culture and Recreation 20,800 - - - - 321,320 Economic Development - 75,000 - - - 119,100 Non Profit Funding 126,750 - - - - 207,500 Solid Waste - - - 3,692,668 5,597,858 8,169,782 Other - - - - - - Transfers Out 3,026,148 832,316 - - - 215,000 Total Use of Funds 8,832,496 13,662,738 8,073,670 6,910,798 10,609,020 46,688,788 Estimated Beginning Balance 6,120,644 45,679,534 565,914 - 13,292,418 65,658,510 Estimated Funds Available 06/30/21 6,120,644 45,679,534 565,914 (1,014,280) 13,292,418 61,142,362 FY2021 Budget Summary, All Funds 41 Three Year Budget Overview General Fund Special Revenue Funds Debt Service Funds FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 Actual Estimated Budgeted Actual Estimated Budgeted Actual Estimated Budgeted REVENUES Property Taxes 1,600,580$ 796,822$ 3,814,269$ 11,262,407$ 12,040,064$ 10,862,491$ 2,598,320$ 2,539,516$ 2,445,791$ Transient Accomodation Tax - - - 78,571 62,829 20,000 - - - Non Ad Valorem Taxes 30,200 29,100 28,000 220,392 - - - 215,538 210,000 Payment in Lieu of Taxes 1,582,037 1,651,791 1,338,000 - - - - - - Severance Taxes 1,206,697 1,223,921 1,124,000 - - - - - - Excise Tax 425,445 389,726 402,500 - - - - - - Penalties & Interest on Taxes 288,818 227,076 210,000 403 0 - - - - Rents & Royalties - - - 845,653 911,400 837,951 - - - User Fees - - - - - - - - - Land Sales Activites - - - 76,676 28,902 28,464 - - - Licenses & Permits 130,441 96,415 72,700 33,600 33,600 33,600 - - - Federal Revenues 222,000 366,782 190,000 2,231 46,647 50,000 - - - State Revenues 2,599,004 1,515,255 1,541,027 78,055 67,250 9,774 5,226,069 2,552,052 - Fines - 55 - - - - - - - Interest Earnings 211,629 152,804 100,000 1,845,032 1,292,337 787,657 1,213 - - Miscellaneous 15,210 29,283 12,000 28,634 18,698 14,080 - - - Use of Fund Balance - - - - - 1,003,649 - - - Sale of Bonds - - - - - - - - - Sale of Fixed Assets 4,815 - - - - - - - - TRANSFERS IN 142,177 - - 451,387 18,000 15,072 338,982 2,462,920 5,417,879 TOTAL SOURCE OF FUNDS 8,459,054 6,479,029 8,832,496 14,923,040 14,519,726 13,662,738 8,164,583 7,770,025 8,073,670 EXPENDITURES General Government 4,164,763 3,832,870 3,884,063 - - - - - - Education 50,000 50,000 - 9,920,576 10,472,544 9,390,089 7,678,413 7,733,393 7,737,369 Health & Welfare 57,096 37,041 72,772 - - - - - - Assessing 522,375 643,045 654,886 - - - - - - Community Development 971,199 582,927 726,921 - - - - - - Resource Management - - - 193,727 128,990 306,167 - - - KIB Buildings - - - 776,305 741,330 1,238,382 - - - Road Maintenance - - - 589,610 785,753 731,013 - - - Fire Districts - - - 744,822 943,717 1,072,262 - - - Public Safety 318,178 303,364 320,156 22,418 21,794 17,509 - - - Culture and Recreation 20,472 20,447 20,800 - - - - - - Economic Development 600 20,600 - 89,129 132,330 75,000 - - - Solid Waste - - - - - - - - - Capital Outlay - - - - - - - - - Non-Profit Funding 182,900 157,500 126,750 - - - - - - Other - - - - - - 17,727 4,184 336,301 TRANSFERS OUT - 13,000 3,026,148 832,982 835,191 832,316 142,177 - - TOTAL USE OF FUNDS 6,287,583 5,660,794 8,832,496 13,169,571 14,061,649 13,662,738 7,838,317 7,737,577 8,073,670 42 Three Year Budget Overview Continued Capital Projects Funds Enterprise Funds TOTAL FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 Actual Estimated Budgeted Actual Estimated Budgeted Actual Estimated Budgeted REVENUES Property Taxes -$ -$ -$ -$ -$ -$ 15,461,306$ 15,376,401$ 17,122,551$ Transient Accomodation Tax - - - - - - 78,571 62,829 20,000 Non Ad Valorem Taxes - - - - - - 250,592 244,638 238,000 Payment in Lieu of Taxes - - - - - - 1,582,037 1,651,791 1,338,000 Severance Taxes - - - - - - 1,206,697 1,223,921 1,124,000 Excise Tax - - - - - - 425,445 389,726 402,500 Penalties & Interest on Taxes - - - 4,912 1,797 4,000 294,133 228,873 214,000 Rents & Royalties - - - 1,863,527 1,880,231 1,774,378 2,709,180 2,791,630 2,612,329 User Fees - - - 4,435,772 4,123,040 4,473,000 4,435,772 4,123,040 4,473,000 Land Sales Activites - - - - - - 76,676 28,902 28,464 Licenses & Permits - - - - - - 164,041 130,015 106,300 Federal Revenues 403,843 136,258 63,634 - 1,885 - 628,074 551,571 303,634 State Revenues 25,965 68,707 224,624 27,360 (22,374) 58,018 7,956,453 4,180,889 1,833,443 Fines - - - - - - - 55 - Interest Earnings - - - 673,411 490,836 239,597 2,731,284 1,935,977 1,127,254 Miscellaneous 353,600 218,281 486,208 1,714,232 1,708,549 1,709,272 2,111,676 1,974,811 2,221,560 Use of Fund Balance - - - - - 2,265,740 - - 3,269,389 Sale of Bonds - 81,946 3,226,357 85,015 85,015 85,015 85,015 166,961 3,311,372 Sale of Fixed Assets - - - - - - 4,815 - TRANSFERS IN 145,261 3,228,278 1,895,695 45,000 45,000 - 1,122,807 5,754,198 7,328,646 TOTAL SOURCE OF FUNDS 928,669 3,733,470 5,896,518 8,849,228 8,313,978 10,609,020 41,324,574 40,816,228 47,074,442 EXPENDITURES General Government - - - - - - 4,164,763 3,832,870 3,884,063 Education - - - 1,751,643 863,408 2,105,975 19,400,632 19,119,344 19,233,433 Health & Welfare - - - 2,317,608 2,783,702 2,547,704 2,374,704 2,820,743 2,620,476 Assessing - - - - - - 522,375 643,045 654,886 Community Development - - - - - - 971,199 582,927 726,921 Resource Management - - - - - - 193,727 128,990 306,167 KIB Buildings - - - - 756,157 57,483 776,305 1,497,488 1,295,865 Road Maintenance - - - - - - 589,610 785,753 731,013 Fire Districts - - - - - - 744,822 943,717 1,072,262 Public Safety - - - 300,060 295,439 300,000 640,657 620,598 637,665 Culture and Recreation - - - - - - 20,472 20,447 20,800 Economic Development - - - - - - 89,729 152,930 75,000 Solid Waste - - - 3,492,913 3,264,470 5,597,858 3,492,913 3,264,470 5,597,858 Capital Outlay 6,998,136 2,491,563 6,910,798 - - - 6,998,136 2,491,563 6,910,798 Non-Profit Funding - - - - - - 182,900 157,500 126,750 Other - - - - - - 17,727 4,184 336,301 TRANSFERS OUT - - - - - - 975,159 848,191 3,858,464 TOTAL USE OF FUNDS 6,998,136 2,491,563 6,910,798 7,862,224 7,963,176 10,609,020 42,155,831 37,914,758 48,088,722 43 Fiscal Real Property Personal Property Total Mill Total Year Assessed Value Assessed Value Assessed Value Rate Tax Levy 2004 659,695,261 110,941,504 770,636,765 9.25 7,128,390 2005 678,427,713 105,481,537 783,909,250 10.25 8,035,070 2006 692,709,445 106,206,504 798,915,949 11.00 8,788,075 2007 710,848,299 94,833,515 805,681,814 10.50 8,459,659 2008 734,527,929 100,997,608 835,525,537 10.50 8,773,018 2009 765,152,958 105,617,604 870,770,562 10.50 9,143,091 2010 788,107,547 108,786,132 896,893,679 10.50 9,417,384 2011 875,787,940 113,091,185 988,879,125 10.50 10,383,231 2012 947,611,296 91,612,537 1,039,223,833 10.50 10,911,850 2013 984,146,580 101,821,700 1,085,968,280 10.75 11,674,159 2014 1,013,670,977 104,876,351 1,118,547,328 10.75 12,024,384 2015 1,044,081,107 108,022,642 1,152,103,749 10.75 12,385,115 2016 1,084,317,572 118,559,600 1,202,877,172 10.75 12,930,930 2017 1,169,223,198 143,116,200 1,312,339,398 10.75 14,107,649 2018 1,205,698,799 137,125,100 1,342,823,899 10.75 14,435,357 2019 1,250,528,925 139,440,700 1,389,969,625 10.75 14,942,173 2020 1,266,365,775 155,178,500 1,421,544,275 10.75 15,281,601 2021 1,298,329,669 157,498,073 1,455,827,742 10.75 15,650,148 Historical Assesed Values, Mill Rates and Tax Levies 44 GENERAL FUND General Fund Description The General Fund is used to account for all assets and liabilities of the Kodiak Island Borough except those particularly assigned for other purposes in another, more specialized fund. The General Fund is the primary operating fund of our government. Much of the usual activities of a municipality are supported by the general fund. Examples are the purchase of supplies and meeting operating expenditures. Examples of specialized funds would be special revenue funds like Education Support or a service district, or a Capital Projects fund which account for financial resources used for the acquisition or construction of major capital facilities. The General Fund reports information on a modified accrual basis of accounting and uses the current financial resources measurement focus. In other words, with a couple of exceptions, the balance sheet reports cash and other financial resources (such as receivables) as assets and amounts owed that are expected to be paid off within a short time period as liabilities. Departments included in the General Fund are: • Legislative (Borough Assembly) • Borough Management • Borough Clerk • Legal Services • Finance • Information Technology (IT) • Assessing • Engineering & Facilities • Community Development • Building Inspection • Economic Development • General Administration • Parks & Recreation • Emergency Preparedness • Animal Control • Education, Culture, & Recreation • Kodiak College & Libraries • Non-Profits • Transfers Out Revenue Sources and General Fund Estimates In FY2012, a special revenue fund, called Education Support, was created to account for property tax revenues collected from the public which was to be paid to the Kodiak Island Borough School District. The creation of that special revenue fund now accounts for that revenue instead of the General Fund. After that change, the largest source of revenue for the General Fund from FY2013-FY2019 was intergovernmental revenue. In October of 2018, voters passed a Maximum Allowable Tax Revenue initiative. This initiative limits increases in local tax revenue to the Kodiak CPI. Debt service for GO Bonds is not subject to the tax revenue limitations per AS29.45.100. 45 See following pages for definitions of revenues. GENERAL FUND REVENUE SUMMARY Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2018 Actual 2019 Actual 2020 Budget 2020 Estimated 2021 Budget Property Tax (includes PILT)2,474,118$ 3,212,817$ 2,162,806$ 2,477,713$ 5,180,269$ Severance Tax 1,815,923 1,206,697 1,409,000 1,223,921 1,124,000 Excise Tax - 425,445 405,000 389,726 402,500 Licenses & Permits 62,349 130,441 72,975 96,415 72,700 Intergovernmental Revenues 1,876,625 2,821,004 1,919,374 1,882,037 1,731,027 Interest Earnings 229,916 500,447 250,000 379,879 310,000 Miscellaneous Revenues 6,714 15,210 3,200 29,338 12,000 Transfers In 492,936 142,177 20,403 - - Total 6,958,583$ 8,454,239$ 6,242,758$ 6,479,029$ 8,832,496$ 46 PROPERTY TAXES Local Real and Personal Property Taxes. Alaska Statutes (AS) 29.45.010-29.45.500 gives municipalities the authority to levy a property tax. The Kodiak Island Borough’s property tax revenue for fiscal year 2021 is based on the net taxable assessed valuation as of January 1, 2020. That value is estimated at $1,455,827,742. The Borough has set the tax levy on real and personal property for the General Fund at 2.75 mills, which will generate estimated property tax revenues of $3,814,269. Approximately 90% of this revenue is from real property and 10% from personal property. The current delinquency rate is 0.2% (two tenths of one percent). For budget purposes, the amount of tax generated by one (1) mill is $1,455,828. Payment in Lieu of Tax (PILT). Payments in Lieu of Taxes (PILT) are federal payments to local governments that help offset losses in property taxes due to nontaxable federal lands within their boundaries. PILT payments are made annually for tax-exempt Federal lands administered by the Bureau of Land Management (BLM), the National Park Service, the U.S. Fish and Wildlife Service (all agencies of the Interior Department), the U.S. Forest Service (part of the U.S. Department of Agriculture), and for Federal water projects and some military installations. Congress appropriates PILT payments each year. The BLM allocates payments according to a formula in the PILT Act that includes population, receipt-sharing payments, and the amount of Federal land within an affected borough. The estimated amount for FY2021 PILT revenue, $1,300,000 is $314,634 less than last year’s actual amount received. Penalty and interest on Taxes Receivable. AS 29.45.650 and KIB Code of Ordinances section 3.35.140 establish the authority to apply penalties and interest on delinquent property taxes. The penalty rates are 10% for late payments, and the interest rate on delinquent accounts is 12% per annum. The Borough does not recognize the receivable at the time penalties and interest are applied to the accounts; rather, it is recognized when the payment is made. Based on past collections, we estimate revenues at $210,000. 47 SEVERANCE TAXES The Kodiak Island Borough levies a tax on certain natural resources that are severed or harvested within the boundaries of the Borough. The tax rate is the Borough-wide mill levy, which is currently 10.75 mills (1.075%). Taxable resources are grouped into three categories: 1) sea products (fish, crab, kelp, etc.), 2) rock, sand and gravel (mining), and 3) timber (logging). Sea Products Severance Tax. Budgeting for sea products severance tax involves many factors. How many fish will be available for harvesting? What other types and how much other sea products will be harvested? What countries will be buying our products? What will the price per pound be? What will the environmental issues be? Does the market prefer wild products to farmed products? Many of these variables are very difficult to predict. With these issues in mind, the Borough is budgeting sea products severance tax revenues for 2021 at $1,100,000. Rock, Sand and Gravel Severance Tax. To estimate the value for rock and gravel, KIB looked at the construction industry. The main source of extraction for this category is rock. The rock is sold to construction companies for their building lots and road construction. Based on the revenues generated in the fiscal years 2019 and 2020, the estimated revenue for fiscal year 2021 is $4,000. Timber Severance Tax. Logging severance tax revenues remained fairly constant between FY2012 and FY2016. There was a decline in revenue starting in FY2017, and with the major logging operations on Kodiak Island completed, further reductions of revenue are expected. Therefore, the Borough is budgeting revenues for this tax source at $20,000 for FY2021. Overall, the FY2021 severance tax is estimated at $1,124,000. 48 EXCISE TAX The Borough added two new excise tax revenue sources in FY2018, marijuana and tobacco. In FY2020, the Borough collected 388,276 in tobacco excise taxes and $1,449 in marijuana excise taxes. Since this is still a new revenue source, no multi-year trend data is available. The revenues for FY2021 is budgeted at $2,500 for marijuana and $400,000 for tobacco. LICENSES AND PERMITS Licenses and permits are revenues from building, marijuana, and tobacco industries. The largest portion of revenue in this category is building permits, which can be attributed to the low interest rates on home mortgages in rural areas through the State of Alaska. Per the Community Development Department, revenues from all industries are budgeted at $72,700, based on FY2020 revenues. INTERGOVERNMENTAL REVENUES FEDERAL SHARED REVENUES National Wildlife Refuge. The Revenue Sharing Act authorizes payments to local governments whose jurisdiction includes land being administered by the Fish and Wildlife Service (FWS). The payments are based on the percentage of the fair market value of Borough lands that the FWS has acquired, the number of acres they hold, and a percentage of net receipts the FWS collected in their previous fiscal year. This payment is a form of PILT, but the land owned by the FWS is not the same land owned by FWS that generates a portion of the PILT federal payment. The difference is the land under the National Wildlife Refuge was previously owned by private individuals and was previously taxable. From FY2014-FY2020 these revenues varied from $191,973 to $230,082. For FY2021, the budgeted revenues are $190,000. 49 STATE SHARED REVENUES Community Assistance Program (AS 29.60.010-29.60.030). This payment from the State of Alaska is an equalization entitlement. The computation is based on population, the relative ability to generate revenue, and the local tax burden of the taxing unit. The Borough received $443,211 in FY2019 and $408,023 in FY2020. Based on State legislation, the Borough is budgeting $316,986 for FY2021. Fish Tax Revenue Sharing (AS 43.75 and 43.77) authorizes the State of Alaska to levy taxes on fisheries businesses. A portion of the tax is refunded to municipalities and boroughs. There are two types of fishery tax: • Fisheries Business Tax (AS 43.75) levies the tax on businesses and persons who process or export fisheries resources from Alaska. The tax is based on the value paid to commercial fishers. The rate of the tax is based on the processing activity of the business. The processing activity is classified as either “established” or “developing” by the Alaska Department of Fish and Game. The rates are as follows: Established Developing Floating 5.0% Floating 3.0% Salmon Cannery 4.5% Shore-based 1.0% Shore-based 3.0% Fisheries businesses file with the State on a calendar-year basis. Their tax returns are due by March 31 of the following year. From the taxes collected, the Department of Revenue distributes the taxes based on the location of the business. Municipalities will receive 50% of the tax collected from businesses from within their jurisdiction. If the tax collected is from a business within a city as well as a borough, the payment will be split equally between the borough and the city. For those businesses that operate outside a municipality or organized borough, 50% of those funds collected are shared through an allocation program administered by the Alaska Department of Commerce, Community and Economic Development. • Fishery Resource Landing Tax (AS 43.77) levies the tax on processed fishery resources first landed in Alaska. The tax amount is based on the unprocessed value of the resource. This value is determined by multiplying a statewide average price per pound (based on Alaska Department of Fish and Game data) by the unprocessed 50 weight. This tax is primarily collected from factory trawlers and floating processors which process fishery resources outside of the state’s 3-mile limit and bring their products to Alaska for transshipment. This tax is based on a calendar year and must be filed by March 31. The rate is based on classification. The Alaska Department of Fish and Game determines whether a resource is “established” or “developing.” The rates are 3% for established resources and 1% for developing resources. The tax collected in this category is distributed in the same manner as the Fisheries Business Tax. Budgeting for this revenue is difficult. As with the severance tax on seafood products, there are many factors to consider. Some of the factors to be considered are: the amount of product available for harvesting, the market price of product at the time of purchase, environmental and market issues and federal and state regulatory factors. The Borough does not know all the businesses filing with the State or the statistics of the tax collected outside of municipalities and unorganized boroughs. For budgeting purposes, the Borough looks at the prior year’s revenues as well as the factors that are known and budgets accordingly. Using this method, it is estimated that FY2021 fishery tax revenue will be $1,050,000. Utility Revenue Sharing (AS 10.25.570). The State of Alaska collects electric and telephone cooperative taxes and shares the proceeds, less the amount expended by the state in their collections to organized boroughs or a city of any class. With the increased use of cell phones and the decreased use of land lines, revenue from this source is expected to continue to decline. For budgeting purposes, the Borough looks at prior year’s average decreases and budgets accordingly. Using this method, it is estimated that the FY2021 revenue will be $17,000. INTEREST EARNINGS Interest Earned on Investments. KIB Code of Ordinances sections 3.04.01 through 3.04.030 establishes the guidelines and responsibilities of the Finance Director in investment and treasury management matters. For efficiency, KIB has established a central treasury of pooled resources and the interest income is allocated among the different funds depending on how much equity they have in the Central Treasury. This revenue stream is difficult to predict from year to year due to varying interest rates, variable levels of funds to invest, and the unpredictability of the financial market. It should be noted that in FY2020 the market’s negative response to the COVID-19 pandemic drove interest rates down and decreased interest revenues substantially during the last 51 quarter of 2020. The General Fund earned $152,804 in interest earnings compared to FY2019’s $211,629. In fiscal year 2021 the General Fund is expected to earn $100,000. MISCELLANEOUS REVENUE Miscellaneous Revenue. This category includes revenues generated from animal control fines, sale of copies, sale of computer data and other miscellaneous revenue. For fiscal year 2021, total miscellaneous revenue is budgeted at $12,000. TRANSFERS IN Transfers In. This category includes revenues transferred from other funds into the General Fund. There is nothing budgeted to be transferred in for FY2021. FUND BALANCE General Fund Balance. Fund balance is revenue that is left over at year end after all expenditures have been accounted for. If revenues are greater than expenditures, then the fund balance increases. The reserve policy for the General Fund was amended in FY2020 requiring six months of budgeted operating expenses and 50% of the current insurance deductible remain in the account to provide adequate cash flows for operations. The following chart shows the fund balances for the last 10 years and the changes that took place. We estimate the General Fund will have a fund balance of $6,120,644 at the end of FY2020. 52 This page is left intentionally blank 53 GENERAL FUND REVENUE FY 2018 Actual FY 2019 Actual FY 2020 Budget FY 2020 Estimated FY 2021 Budget Property Tax Real Property 737,825 1,448,182 718,025 710,068 3,432,842 Personal Property 84,827 152,398 79,781 86,754 381,427 TOTAL PROPERTY TAXES 822,653 1,600,580 797,806 796,822 3,814,269 Non Ad Valorem Taxes Aircraft Tax 30,000 30,200 27,000 29,100 28,000 TOTAL NON AD VALOREM TAXES 30,000 30,200 27,000 29,100 28,000 Payment in Lieu of Taxes PILT - Federal 1,578,030 1,542,393 1,300,000 1,614,634 1,300,000 PILT - Kodiak Island Housing 27,602 22,227 23,000 18,583 23,000 PILT - Alaska Housing 15,834 17,417 15,000 18,574 15,000 TOTAL PAYMENT IN LIEU OF TAXES 1,621,466 1,582,037 1,338,000 1,651,791 1,338,000 Severance Taxes Fish 1,660,842 1,163,238 1,375,000 1,170,360 1,100,000 Mining 53,618 5,183 4,000 12,564 4,000 Logging 101,463 38,277 30,000 40,997 20,000 TOTAL SEVERANCE TAXES 1,815,923 1,206,697 1,409,000 1,223,921 1,124,000 Excise Taxes Tobacco Tax 310,482 423,979 405,000 388,276 400,000 Marijuana Tax - 1,465 - 1,449 2,500 TOTAL EXCISE TAXES 310,482 425,445 405,000 389,726 402,500 Penalties and Interest on Taxes Penalties and Interest 219,086 288,818 200,000 227,076 210,000 TOTAL PENALTIES AND INTEREST TAX 219,086 288,818 200,000 227,076 210,000 Licenses and Permits Annual Use Permit - - - - - Building Permits 42,466 99,553 47,700 78,274 52,000 Subdivision 4,200 6,765 6,200 1,900 4,000 Conditional Use Permits 250 900 1,700 - 500 Zoning Compliance Permit 6,180 6,190 7,000 5,790 7,000 Variance Fee 650 1,850 1,400 500 500 Zoning Change Fee - - 275 - - Electric Permit 3,873 4,446 3,600 4,060 4,000 Plumbing Permit 2,514 5,629 2,400 2,062 2,400 Planning & Zoning Review Fee 600 900 1,000 1,450 1,000 Special Land Use - - - - - Dog License 1,467 1,608 1,400 1,079 1,000 Business License - Marijuana - 2,200 - 1,000 - Business License - Tobacco - 400 300 300 300 Site Plan Review 150 - - - - TOTAL LICENSES AND PERMITS 62,349 130,441 72,975 96,415 72,700 54 INTERGOVERNMENTAL REVENUES FY 2018 Actual FY 2019 Actual FY 2020 Budget FY 2020 Estimated FY 2021 Budget Federal Grants CORONAVIRUS Relief Fund (CARES Act) - - - 173,633 - - - - 173,633 - Federal Shared Revenues National Wildlife Refuge 191,973 222,000 180,000 193,149 190,000 TOTAL FEDERAL SHARED REVENUE 191,973 222,000 180,000 193,149 190,000 State Shared Revenues State Community Assistance 465,942 443,211 405,124 408,022 316,986 Fisheries Business Tax 1,103,101 1,816,530 1,200,000 718,307 900,000 Fisheries Resource Landing Tax 14,868 184,560 12,000 210,076 150,000 Telephone and Electric 17,321 16,561 16,750 16,198 17,000 Liquor License - - - 174 - Marijuana Licenses 500 1,000 500 300 500 PERS on Behalf Payment 82,920 137,142 105,000 151,657 155,541 PERS Forfeiture - - - 10,521 1,000 TOTAL STATE SHARED REVENUES 1,684,652 2,599,004 1,739,374 1,515,255 1,541,027 TOTAL INTERGOVERNMENTAL 1,876,625 2,821,004 1,919,374 1,882,037 1,731,027 Fines Animal Control 441 - 150 55 - Zoning Violations - - - - - TOTAL FINES 441 - 150 55 - Interest Interest Earnings 60,668 121,586 50,000 137,371 100,000 Change in Market Value (49,838) 90,044 - 15,433 - TOTAL INTEREST 10,830 211,629 50,000 152,804 100,000 Miscellaneous Jury Duty 250 300 200 300 200 Sale of Copies 95 - - 691 500 Sale of Maps 1,969 1,458 1,200 829 1,200 Fees - Dishonored Checks 219 245 150 75 100 Local Electric/Reimbursement - - - - - Other 3,740 13,207 1,500 11,988 10,000 Legal Fee Reimbursement - - - 13,007 - IBEW Reimbursement - - - 2,394 - TOTAL MISCELLANEOUS 6,273 15,210 3,050 29,283 12,000 Use of Fund Balance - - 20,403 - - Transfers In 492,936 142,177 - - - Sale of Fixed Assets 1,240 4,815 - - - TOTAL REVENUES 7,270,305 8,459,054 6,242,758 6,479,029 8,832,496 55 SUMMARY OF GENERAL FUND EXPENDITURES BY DEPARTMENT FY 2018 Actual FY 2019 Actual FY 2020 Budget FY 2020 Estimated FY 2021 Budget Borough Assembly 147,031 144,454 163,969 144,178 149,047 Manager's Office 592,589 661,322 651,622 673,842 664,732 Clerk's Office 536,454 552,964 500,009 447,602 483,360 Legal Services 104,847 86,894 135,000 88,376 109,500 Finance 758,166 755,760 932,445 795,020 819,986 Information-Technology 806,484 1,150,743 989,937 953,408 851,840 Assessing 789,478 522,375 608,205 643,045 731,316 Engineering & Facilities 465,177 463,006 384,294 418,669 385,671 Community Development 880,241 971,199 970,101 582,927 726,921 Building Inspector 166,451 188,072 166,591 184,664 160,491 Economic Development 33,936 600 20,600 20,600 13,570 General Administration 194,859 349,619 210,038 311,776 279,927 Parks & Recreation 77,186 57,096 86,904 32,562 72,772 Emergency Preparedness 43,038 14,307 63,043 4,479 40,950 Animal Control 114,015 115,800 118,700 118,700 118,715 Education Culture & Recreation 4,665 20,472 20,800 20,447 20,800 Kodiak College & Libraries 72,000 50,000 50,000 50,000 50,000 Non-Profit Funding 207,500 182,900 157,500 157,500 126,750 Transfers Out 403,958 - 13,000 13,000 3,026,148 TOTAL 6,398,076$ 6,287,583$ 6,242,758$ 5,660,794$ 8,832,496$ 56 SUMMARY OF GENERAL FUND EXPENDITURES BY FUNCTION FY 2018 Actual FY 2019 Actual FY 2020 Budget FY 2020 Estimated FY 2021 Budget General Government 2,040,958$ 2,258,260$ 2,044,932$ 2,084,443$ 2,072,237$ Public Safety 323,504 318,178 348,334 307,843 320,156 Assessing 789,478 522,375 608,205 643,045 731,316 Finance/IT 1,564,650 1,906,503 1,922,382 1,748,427 1,671,826 Community Development 880,241 971,199 970,101 582,927 726,921 Other 395,287 311,068 335,804 281,109 283,892 Transfers Out 403,958 - 13,000 13,000 3,026,148 TOTAL 6,398,076$ 6,287,583$ 6,242,758$ 5,660,794$ 8,832,496$ 57 LEGISLATIVE FY2021 PROGRAM DESCRIPTION: The Kodiak Island Borough government exists to provide effective and efficient government services within our powers and duties that will improve the quality of life in our community. The executive duties of the borough are vested in the Borough Mayor. The mayor is elected at-large by the qualified voters of the borough. The legislative power of the borough is vested in the Borough Assembly which is otherwise known also as the governing body. The assembly consists of seven members elected at large. The Assembly formally establishes borough policy by ordinance or resolution. GOALS AND OBJECTIVES: Goals Department Objectives Indicators FY2018 Outcome FY2019 Outcome FY2020 Outcome FY2021 Goal Review the strategic plan annually Done annually Yes No No Yes # of Regular Assembly Meetings 21 22 21 24 # of Joint Work Sessions with the City of Kodiak 4 3 1 4 # of Joint Work Sessions with the KIB School District 1 2 1 2 Host the Mayor's Conference No No No Yes # of Quarterly Budget updates 2 4 4 4 Provide Manager with policy direction No No No Yes Approve the budget by June 10 Yes Yes Yes Yes Establish annual priorities No No No Yes 21 3 of 3 12 3 of 3 12 28 Goals, Objectives, and Performance Indicators: Collaborate with the City of Kodiak, school district, service areas, tribes, rural communities and civic organizations within the Borough Provide efficient, effective, and consistent government processes # of attendees of AML NEO 2 of 3 1 of 2 Hold Borough Assembly meetings to establish Borough policy by ordinance or resolution Newly elected Assembly attends Alaska Municipal League (AML)Newly Elected Officials (NEO) training # of Work Sessions 21 32 Ensure an effective budgeting process Promote fiscal policies that ensure stability and responsible government # of published monthly finance reports 11 12Foster public understanding of Borough finances and operations 58 LEGISLATIVE (CONT.) FY2021 ANALYSIS: Citizens have entrusted the Kodiak Island Borough government with powers that promote a vibrant, diverse, and healthy economy and community centered on Kodiak’s unique assets like our natural resources, people, and history. This includes a focus on a reasonable cost of living and a great quality of life where diverse cultures and viewpoints come together; and an engaged community of citizens who are working, living, and thriving together. FY2021 Priorities (Not in Priority Order) 1. Focus on staffing structure and ensure a smooth transition for new key leaders. 2. Establish expectations and accountability for each committee, and ensure codes and roles are clear and understood by members. 3. Explore ways to collaborate with the City of Kodiak, the school district, service areas, tribes, rural communities and civic organizations within the borough. 4. Identify potential policies for adoption to enhance economic development. 5. Develop a catalog of all available land to begin the process of developing a comprehensive land plan. 6. Look into cost of securing specialist(s) to forecast and recommend the most viable economic strategies. 7. Continue to seek opportunities for restructuring or consolidation with expectations to have a report at year’s end on opportunities and progress made. SIGNIFICANT BUDGET CHANGES: There was an overall decrease of $14,922 from FY2020 to FY2021. 59 LEGISLATIVE (CONT.) FY2021 Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 31,800$ 31,500$ 32,600$ 32,000$ 32,100$ Fringe Benefits 3,926 2,923 4,219 3,382 3,597 Professional Services 72,931 72,954 78,500 72,184 73,500 Contributions - - - - - Legal Services - - - - - Support Goods & Services 38,774 37,077 48,650 36,611 39,850 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - - - - Total Expenditures 147,431$ 144,454$ 163,969$ 144,178$ 149,047$ Personnel FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Total Number of Employees - - - There is no personnel for this department. Personnel Expenditures 60 This page intentionally left blank. 61 BOROUGH MANAGEMENT FY2021 PROGRAM DESCRIPTION: The Manager provides administrative guidance to the governing body's policy decisions and serves as the chief administrative officer of the Kodiak Island Borough, overseeing the day-to-day business of the organization. The Manager is appointed by the Assembly. The Manager's office also includes Human Resources, a Grant Writer/Special Projects Support position, and an Administrative Assistant. GOALS AND OBJECTIVES: ANALYSIS: The Manager's office monitors federal, state and local activities relative to how it affects Borough business. The Manager and staff maintain communication with federal and state lobbyists and work together to advocate for the local community needs. Particularly challenging this past year was addressing continued diminishment of federal and state contributions to local funding. Balancing the local budget and maintaining a work force appropriate for accomplishing borough business are among the top challenges. The COVID-19 Pandemic brought significant challenges to the community and the Manager's Department. Amidst the onset of the pandemic, many unprecedented decisions were required regarding the health and safety of staff and the community. SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2021. Goals Department Objectives Indicators FY2018 Outcome FY2019 Outcome FY2020 Outcome FY2021 Goal Be present for citizen comment period at Assembly meetings 100%100%100%100% Invite citizens to contact the Borough with questions and concerns 100%100%100%100% Monitor social media for citizen feedback regarding Borough operations Yes Yes Yes Yes Attend the Kodiak Rural Regional Forums held three times per year 3 3 n/a 2 Direct staff to provide government to government communications regarding borough issues or concerns that affect other government entities. Yes Yes Yes Yes Promote a culture of public trust of elected officials, appointed officials, and Borough Staff Review internal policies and practices and update as needed Identify a priority list for review 2 2 0 1 20 Yes 20 YesYes Assist the Assembly with policy implementation and administer quality cost effective services to the citizens of the Kodiak Island Borough Deliver Manager's Report at Assembly meetings; Provide introduction, summary and recommendation regarding Assembly meeting agenda items. 17 19 Goals, Objectives, and Performance Indicators: Continue to build government relationships with other local community governments such as second class cities and tribal governments Number of Reports Delivered Execute the annual budget and capital improvement Program Promote the building of a strong sense of community Yes Monitor the effectiveness of Borough operations Annual budget completed before due; Provide guidance and recommendation for approval of the capital improvement program by December 62 BOROUGH MANAGEMENT (CONT.) FY2021 Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 347,178$ 392,194$ 393,483$ 406,717$ 404,431$ Fringe Benefits 213,188 229,913 236,590 249,404 253,301 Professional Services 175 - - - - Contributions - - - - - Legal Services - - - - - Support Goods & Services 64,048 76,215 63,549 59,721 49,000 Capital Outlay - - - - - Allocated to other funds (32,000) (37,000) (42,000) (42,000) (42,000) Operating Transfers - - - - - Total Expenditures 592,589$ 661,322$ 651,622$ 673,842$ 664,732$ Personnel FY2017 FY2018 FY2019 FY2020 FY2021 Budget Borough Manager 1 1 1 1 1 Deputy Manager 0 0 0 0 0 Human Resources Manager 0 1 1 1 1 Grant Writer/Special Projects 1 1 1 1 1 Executive Assistant 1 1 1 1 1 Total Number of Employees 3 4 4 4 4 Expenditures Personnel 63 BOROUGH CLERK FY2021 PROGRAM DESCRIPTION: The Borough Clerk’s Office provides the professional link between the citizens, the local governing bodies, and agencies of government at other levels. The Clerk’s Office Staff are public administrators who play intrinsic and essential roles in the community. The department provides administrative support to the Mayor and Assembly. Duties performed by this office are guided by KIBC 2.50.020 and Alaska Statutes 29.20.380. Some of the major and mandated duties of this office are the following: • Administers all Borough Elections. The Clerk also prepares petitions and verifies signatures for initiatives, referendums, and recall elections. • Manages Borough Records for active and inactive files, develops retention schedules and procedures for inventory, storage, and destruction of all Borough records as necessary. • Assures that public records, including ordinances, resolutions, rules, regulations, and codes are available for public inspection as required by law. • Publishes and gives notice of meetings to the Borough Assembly members and the public of the time, place, and location of the meetings. • Prepares agendas and packets for the Assembly; provides for codification of ordinances; keeps a journal of all Borough Assembly meetings; and takes oaths, affirmation, and acknowledgements as necessary. • Serves as parliamentarian to the Borough Assembly and advises other Borough boards on parliamentary procedures. GOALS AND OBJECTIVES: Goals Department Objectives Indicators FY2018 Outcome FY2019 Outcome FY2020 Outcome FY2021 Goal Make Borough meeting packets available to the public on the Borough website at the same time the packets are released to the Assembly % of packets made available to the public on schedule 100%100%100%100% Make all Assembly public mail available to the public online % of Assembly mail made available to the public online 100%100%100%100% Respond to all records request in a timely manner as required by Borough code % of timely responses as required Borough code 100%100%100%100% Accurately record and carefully preserve and safeguard the legislative history of the Kodiak Island Borough Assist and provide guidance to departments regarding, access, retainment, and preservation of records # of assistance 35 30 unknown 18 Actively train election workers assigned to the 9 precincts in the Kodiak Island Borough Number of trainings conducted 7 6 5 6 Assembly meetings attended 60 70 unknown 60 # of resolutions adopted 40 22 32 25 # of ordinances adopted 30 21 19 25 Provide administrative support to the Mayor, Assembly, and other boards and committees in compliance with open meeting act Effectively coordinate and provide clerical support to the Assembly Effectively administer and coordinate municipal elections and provide support for State Elections % of elections not successfully contested or challenged 100%100%100%100% Goals, Objectives, and Performance Indicators: Administer municipal elections for the Kodiak Island Borough Prepare agendas and maximize timely access to Borough packets, records, and information in an environmental friendly way 64 BOROUGH CLERK (CONT.) FY2021 ANALYSIS: The main goal of the Clerk's Office is to provide support to the Mayor and Kodiak Island Borough Assembly with integrity. The Clerk's Office also provides assistance to customers regarding processes, complaints, concerns and other issues. The Borough Clerk's office has had a complete staff turnover at the end of FY2019; therefore, office staff continues to review and find ways to streamline Clerk's office procedures and processes. SIGNIFICANT BUDGET CHANGES: There was a budget reduction of $16,649. Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 254,649$ 274,088$ 226,200$ 203,041$ 219,126$ Fringe Benefits 152,267 160,728 157,637 147,289 150,862 Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Support Goods & Services 129,539 118,148 116,172 97,272 113,372 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - - Total Expenditures 536,454$ 552,964$ 500,009$ 447,602$ 483,360$ Personnel FY2017 FY2018 FY2019 FY2020 FY2021 Budget Borough Clerk 1 1 1 1 1 Borough Deputy Clerk 1 1 1 1 1 Assistant Clerk 1 1 1 1 1 Total Number of Employees 3 3 3 3 3 Expenditures Personnel 65 BOROUGH ATTORNEY (LEGAL SERVICES) FY2021 PROGRAM DESCRIPTION: The Borough attorneys provide legal counsel and advice to the Mayor, Assembly, the Manager, and all departments of the Borough. The attorneys are responsible for representing the Borough in lawsuits brought by or against the Borough in state or federal courts. The Kodiak Island Borough hires legal services via contract. GOALS AND OBJECTIVES: Protect the Borough from financial loss and actual or potential legal action. • Ensure that all Borough operations are conducted in accordance with the law so that legal liabilities do not arise. • Provide legal advice to the manager, elected officials, and staff members. • Assist departments in resolving legal problems as they arise. ANALYSIS: The level of required legal support varies from year to year. The budget is created by averaging and projecting expenses based on the actual expenses of the past few years, coupled with an analysis of current issues. SIGNIFICANT BUDGET CHANGES: Litigation expenses have been decreased. Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2021 Estimated FY2021 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services - - - - - Contributions - - - - - Legal Services 89,553 62,455 125,000 73,911 100,000 Support Goods & Services 15,294 24,439 10,000 14,465 9,500 Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures 104,847$ 86,894$ 135,000$ 88,376$ 109,500$ Personnel FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Total Number of Employees - - - - - Expenditures Personnel There is no personnel for this department. 66 This page intentionally left blank. 67 FINANCE DEPARTMENT FY2021 PROGRAM DESCRIPTION: The mission of the Finance Department is to provide competent and comprehensive financial services for the Kodiak Island Borough, to enable all departments to work in the best interests of the community, therefore achieving an outstanding level of service. The Finance Department has many different areas of responsibility including accounting, payroll, budgeting, cash management, issuance and refinancing of debt instruments (bond sales), submitting grant reports, customer service billing and collections (including property taxes and the landfill). The department's main function is to properly budget, account for, and report accurately and correctly all revenues and expenditures of the Kodiak Island Borough, and its subsidiary and/or affiliated government entities. The Finance Department's policy is to strictly comply with GASB, AICPA, and GAAP, to ensure the highest quality of all budgeting, accounting, and reporting to the Borough and the citizens of Kodiak Island. The Finance Department also includes the Borough's Information Technology Services Department. The Finance Director works with the Information Technology Department through weekly meetings to ensure all technology is working efficiently and correctly throughout the Borough. GOALS AND OBJECTIVES: Goals Department Objectives Indicators FY2018 Outcome FY2019 Outcome FY2020 Outcome FY2021 Goal 12 4 Process all accounts payable by Friday of each week 9 Years Consecutive 10 Years Consecutive Number provided Available online and by printed copy 12 1 1 Received the GFOA Distinguished Budgetary Presentation award Provide Monthly Financials to the public and assembly # of help desk requests process for Information Technology Department Yes 100%100% 4 12 9 Years Consecutive 100% 100% 537 499 10 Years Consecutive 100% Yes Yes Available AvailableOpen.gov offered Calls returned in 1 Business dayFinance will respond to all calls with in 1 business day Offer an online option to view the Kodiak Island Borough Finances Goals, Objectives, and Performance Indicators: Ensure that Borough accounts receivable and payable are settled in a timely fashion Received award Received award Provide all citizens with accurate and timely financial records To provide the community with accurate financial records that uphold to GASB, AICPA, etc. Number provided Number provided Calls returned in 1 Business day % of Grant Reports Submitted timely Percent Collected per year Provide reliable and competent accounting services to all Borough departments Number provided Number provided Help Desk software report Number provided Process and mail all statements for the Landfill each Month Continue a high rate of tax collections Return calls with in 1 business day to all Borough Departments Process quarterly stipend payrolls timely Process employee payroll by Friday biweekly Distribute the Comprehensive Annual Report (CAFR) by November 30th Available 1 12 11 Years Consecutive Received the Popular Annual Financial Reporting Award 12 99.10%99.10% 100% Yes Yes 99.00% 3 100% Yes 98.00% Yes Available 1 12 12 Years Consecutive 12 Years Consecutive 100% 12 480 100% 4 100% 11 Years Consecutive 100% 12 664 100% Yes 68 FINANCE DEPARTMENT (CONT.) FY2021 ANALYSIS: The Finance Department will continue to maximize the use of technology to improve efficiency and accounting procedures Borough wide. The KIB is very proud to have again received GFOA’s: • Certificate of Achievement for Excellence in Financial Reporting • Distinguished Budget Presentation Award • Popular Annual Financial Reporting Award The Kodiak Island Borough was one of only two Alaskan governments to achieve all three awards. SIGNIFICANT BUDGET CHANGES: Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 420,271$ 426,275$ 507,851$ 436,923$ 442,408$ Fringe Benefits 268,749 278,740 371,432 314,089 335,016 Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Support Goods & Services 112,145 99,064 100,481 91,326 90,881 Capital Outlay - - - - - Allocated to other funds (43,000) (48,319) (47,319) (47,319) (48,319) Operating Transfers - - - - - Total Expenditures 758,166$ 755,760$ 932,445$ 795,020$ 819,986$ Personnel FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Finance Director 1 1 1 1 1 Accountant 1 1 1 1 1 Accounting Technician 2 2 2 2 2 Clerk/Cashier 1 1 1 1 1 Secretary 1 1 1 1 1 Temporary Accounting Tech 0.5 0.5 0.5 0.5 0.5 Vacant Position (Accountant) 1 1 1 1 0 Total Number of Employees 7.5 7.5 7.5 7.5 6.5 Expenditures Personnel 69 INFORMATION TECHNOLOGY FY2021 PROGRAM DESCRIPTION: The Information Technology (IT) Department serves the Kodiak Island Borough by providing and supporting IT resources to enable business processes to be accomplished in a cost-effective and efficient manner. Examples of this include: • Installing and maintaining desktop computers and software for all Borough employees. • Maintaining and upgrading the Borough’s datacenter, including servers, storage, and networking assets. • Executing backups of the Borough’s data and monitoring the integrity and availability of IT systems. • Implementing security products and protocols to defend the Borough’s IT infrastructure against cyberattacks, viruses, and other malware. • Developing and providing training for IT policies and procedures to support the Borough’s goals and objectives. • Maintaining telecommunication equipment and contracts between the various locations that are served by the Borough. • Maintaining current documentation on all information technology products and systems in operation. GOALS AND OBJECTIVES: ANALYSIS: The IT department continues to research and implement the industry best practices with information technology related to system reliability, integrity and data security. The IT department has upgraded the Borough’s desktop computers to Windows 10 and Office 2016 to stay current with the industry’s supported software. We are still in the process of upgrading all of our servers to currently supported software versions. We have implemented a new phone system in FY2020. Goals Department Objectives Indicators FY2018 Outcome FY2019 Outcome FY2020 Outcome FY2021 Goal Provide current information technology resources and training to Borough Employees Number of trainings offer to employees each year 2 7 8 12 Continue to Improve employee awareness of cyberattacks, viruses, and other malware User Phishing Security Testing (Failures)9.8%8.0%12%5% Upgrade the Borough's telephone system to current telephone standards Completed throughout the Borough Yes No Yes N/A Upgrade each employees desktop to the most compatible and efficent operating system Current Desktop Operating System Windows 10 Windows 10 1809 Windows 10 1909 Windows 10 2004 # of Help Desk Tickets Opened 541 583 656 500 # of Help Desk Tickets Closed 537 531 664 600 Continued maintance and problem solving for all Borough employee technology needs Goals, Objectives, and Performance Indicators: All IT infrastructure equipment is under warranty and/or has sufficient working backups All IT infrastructure has been evaluated and meets objective In Progress Yes Provide efficient, effective and consistent government processes. Maintain up-to-date documentation on all currrent IT infrastructure systems Documentation reviewed and updated In Progress 90% Complete Promote fiscal policies that ensure stability, growth and responsible government. Optimize the effective use of community resources and assets for the benefit of the borough citizens. 75.00% No 100.00% Yes 70 INFORMATION TECHNOLOGY (CONT.) FY2021 SIGNIFICANT BUDGET CHANGES: No significant budget changes this year. Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 273,862$ 278,941$ 292,689$ 304,519$ 282,927$ Fringe Benefits 165,684 172,401 182,354 193,719 185,519 Professional Services 6,680 9,286 15,000 1,000 15,000 Contributions - - - - - Legal Services - - - - - Support Goods & Services 347,531 406,491 342,394 340,248 343,394 Capital Outlay 18,726 83,625 157,500 13,921 25,000 Allocated to other funds (6,000) - - - - Operating Transfers - 200,000 - 100,000 - Total Expenditures 806,484$ 1,150,743$ 989,937$ 953,408$ 851,840$ Personnel FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget IT Director 1 1 1 1 1 IT Supervisor 1 1 1 1 1 Programmer/Analyst 0.5 0.5 0.5 0.5 0.5 PC Network Technician II 1 1 1 1 1 Total Number of Employees 3.5 3.5 3.5 3.5 3.5 Expenditures Personnel 71 ASSESSING DEPARTMENT FY2021 PROGRAM DESCRIPTION: The primary function of the Assessing Department is the annual valuation and assessment of approximately 7,800 real and 579 personal property accounts at their full and true value. The real property function requires a re-inspection program be phased cyclically, the annual appraisal of new construction and additions, and includes the audit, discovery, and compliance programs. This function includes maintaining assessment standards, ownership records, property description data, and other related clerical support. The personal property function is accomplished though the filing and auditing of business personal property renditions, and related discovery and compliance activities. GOALS AND OBJECTIVES: *The Business Personal Property accounts went from 489 to 579 for 2020. Beginning in 2020, 10% of the businesses will have a personal property audit. Additionally, all shipping containers are counted monthly. For FY2020, per KIB 3.40.020 Exemptions, Assessing will be implementing the $20,000 exemption will only be given to timely filed businesses. The Assessing Department staff worked diligently in making certain they could attain that goal that has not been met by the department in the last five years. All penalty fees are continued to be added **No GIS Imagery was available for 2020 remote areas. Due to the coronavirus COVID-19 pandemic, the numbers for FY2020 outcome are low. There will also be no GIS imagery for FY2021 remote areas, the numbers shown for the goal are boots on the ground and do not include any leftovers from FY2020 and could be higher. ***The Assessor’s Office will be conducting a monthly compliance audit for 25 senior citizens beginning in February 2021. These audits will continue until further notice. Goals Department Objectives Indicators FY2018 Outcome FY2019 Outcome FY2020 Outcome FY2021 Goal 1500 100* 400** 5000 700*** 255 2000 150 250** 5000 700*** 25 1210 49 150 5000 686 10 5000 1800 25 Goals, Objectives, and Performance Indicators: Strive to provide a comprehensive taxation and assessment program that is fair and equitable for all citizens Re-inspect the road system properties in the following boundaries: City of Kodiak Total re-inspected residential properties Total re-inspected commercial properties Total re-inspected remote properties Administer tax exemption programs that meet local, state and federal requirements Reviewed properties GIS Re-inspection and revalue of remote properties Number of parcels processed each year Periodical update of exempt properties to ensure the properties still meet requirements for exemption Real Property Parcels adjusted through market analysis and model updates To administer senior citizen and disabled veterans exemptions 649Total number of senior citizen and Disabled Veteran exemptions filed 325 72 ASSESSING (CONT.) FY2021 ANALYSIS: Assessing has a periodic review process for physically inspecting all properties within the Borough as prescribed in Alaska Statute 29.454.150. In Kodiak, it has been Assessing's practice to re-inspect all road system properties every three years, and remote properties including outlying cities every five years. The department had an established schedule for GIS imagery acquisition to ensure that assessing has the latest GIS data for those remote areas being inspected each year. Unfortunately, FY2021 GIS imagery data will not be available, and staff must go physically inspect remote areas. Physical inspections of all remote properties costs thousands of dollars. In 2019 the State Assessor completed an audit of all of assessing's tasks and determined that the Kodiak Island Borough Assessment Department is functioning well, with acceptable ranges of uniformity. Physical inspection of real properties is required by State Statute. AS 29.45.110 requires that all properties be re-appraised to ensure that the properties meet the definition of "full and true value". The new Assessor has found errors in the current Assessing Department inspection process for meeting State Statutes. Again, Assessing has changed, amended, and upgraded the methods for auditing with personal property assets with an overall goal of equitable assessments. Future tasks are instituting a review system for all exempt properties, better cataloguing of these properties, and tracking changes. Also, the Borough needs to transition to a new Computer Assisted Mass Appraisal (CAMA) software as the present software provider will not be updating the current system. SIGNIFICANT BUDGET CHANGES: The Assessing budget is mostly personnel costs. As noted, the State Assessor's Office determined in their 2019 audit that Kodiak Island Borough is functioning, but also states "Given the current job descriptions and organizational structure, three positions out of five are functionally vacant at the time of this audit. This is a serious concern to OSA in terms of the ability of the department to complete its annual work in a compliant manner". Given the Borough's size and parcel count, the Assessor's Office had to re-evaluate the re- assessment cycle currently in place to comprehensively complete each inspection cycle; and also to continue to meet State Statutes as well as ensure taxpayer confidence in fair and equitable assessments. In ratio studies with the State Assessor, as well as length of service in the department currently, 3 of the assessing staff are looking to retire in 5 years. (That means that the entire staff will retire in 2025). For FY2021, Assessing is looking to add 1.5 employees. GIS imagery was not approved by Assembly for the FY2021 assessment review, making it necessary to go remote, boots on the ground. Additionally, since the tax cap does NOT include any new construction or any buildings included in discovery, the Assessing Department is changing the inspection process currently in place which will make training new employees more efficient. The current staff of 3 cannot meet the State Statute or ensure fair and equitable assessments. There is the possibility that temporary positions may have to be filled until permanent positions are, along with the possibility of needing temporary help to cover the large remote area that is now not going to be provided by the GIS imagery. in FY2021, personal property inspections will occur on 10% of all personal property accounts, and all shipping containers are counted monthly. Assessing will also being a yearlong audit for 25 Senior/Disabled Veteran accounts every year. The Assessing Department is also in the process of reviewing all religious and charitable exemptions per the State Assessors Audit..."Improvement is needed in both the administrative practices and the municipal code related to administration of exemptions." Ordinance FY2020-04 is one example of the municipal code changes for review practices. 73 ASSESSING (CONT.) FY2021 Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 460,871$ 260,574$ 305,000$ 335,135$ 333,465$ Fringe Benefits 272,679 184,847 219,045 237,961 231,863 Professional Services - 18,470 25,000 7,260 76,430 Contributions - - - - Legal Services - - - - Support Goods & Services 59,928 62,483 60,660 64,188 91,058 Capital Outlay - - - - Allocated to other funds (4,000) (4,000) (1,500) (1,500) (1,500) Operating Transfers - - - - - Total Expenditures 789,478$ 522,375$ 608,205$ 643,045$ 731,316$ Personnel FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Assessor 1 1 1 1 1 Appraiser 1 1 1 1 1 Assessment Clerk ll 1 1 1 0 0 Assessment Clerk l 0 0 0 0 0 Appraiser Technician 2 2 2 2 2 Total Number of Employees 5 5 5 4 4 Expenditures Personnel 74 This page intentionally left blank. 75 ENGINEERING AND FACILITIES FY2021 PROGRAM DESCRIPTION: The Engineering and Facilities Department is responsible for the safe operation and maintenance of all Borough-owned grounds and facilities and administrates all service-area maintenance contracts. The Borough’s Capital projects are coordinated and administered by the Projects Office, which is overseen by the Engineering and Facilities Department. The department is also responsible for the operation of the KIB Landfill. The Landfill is used for the disposal of garbage, metals, construction debris, and the potential recycling of these materials to prolong the use of the existing landfill. The department also provides staff and funding for the Solid Waste Advisory Board. Engineering and Facilities also operates the Leachate Treatment Plant. This plant processes drainage liquids from the landfill and purifies the liquids to state drinking water standards. The Kodiak Fisheries Research Center is also maintained and operated by the Engineering and Facilities Department. The aquarium at KFRC is staffed and maintained for public enjoyment and education by the Borough and is also operated by Engineering and Facilities. GOALS AND OBJECTIVES: ANALYSIS: Engineering and Facilities continues to seek funding sources to increase efficiencies for energy and indoor air quality for Borough owned facilities. The Department also seeks funding to bring Borough buildings into compliance with the Americans with Disabilities Act during renovations. The Department also plans to continue the household hazardous waste collections during Kodiak Island's Annual Spring Cleanup. This service provides the community with little or no disposal costs of household hazardous wastes such as paints, motor oils, chemicals etc. SIGNIFICANT BUDGET CHANGES: Funding reductions have been realized due to current economic issues. All maintenance and repair, capital improvement projects will be scrutinized and prioritized for health and safety, and facility preservation. Goals Department Objectives Indicators FY2018 Outcome FY2019 Outcome FY2020 Outcome FY2021 Goal Continue to work on deferred projects listed on the Renewal and Replacement Schedule Number of Projects completed 6 Completed Projects 5 Completed Projects 8 Completed Projects Continue Project Completions Perform daily maintenance and janitorial of facilities Cleaning and Maintainance Yes Yes Yes Increase Services Provide support for service areas to maintain safe roads All complaints from public for road service areas are transmitted to board members Within 24 hours complaints are uploaded to complaint system on KIB website 100%100%100%100% Yes Yes Maintain Maintain Provide staff support and guidance for all capital projects and staff support for various advisory boards. Goals, Objectives, and Performance Indicators: Yes Yes Yes Yes Design, operate, and maintain Kodiak Island Borough facilities in a safe, healthy, and responsible manner with attractive, comfortable and efficient environments Provide quality information to various Borough Departments as needed. Staffed requested support meetings Staffed various advisory boards 76 ENGINEERING AND FACILITIES (CONT.) FY2021 Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 234,475$ 232,915$ 175,778$ 192,054$ 175,369$ Fringe Benefits 149,305 155,503 120,724 157,719 129,302 Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Support Goods & Services 81,398 74,589 87,792 68,896 81,000 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - - - - Total Expenditures 465,177$ 463,006$ 384,294$ 418,669$ 385,671$ Personnel FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Construction Inspector/Engineer 1 0 0 0 0 Director 1 1 1 1 1 Deputy Director 0 1 1 0 0 Project Manager/Inspector 1 1 1 1 1 Project Assistant 1 1 1 1 1 Secretary lll 1 1 1 1 1 Solid Waste Manager/Environmental Specialist 0 0 0 1 1 Maintenance Mechanic 1 1 1 1 1 Total Number of Employees 6 6 6 6 6 Expenditures Personnel 77 COMMUNITY DEVELOPMENT FY2021 PROGRAM DESCRIPTION: Community Development Department is responsible for a number of Borough functions. The department's four primary functions are: 1) Administer the Borough's zoning and land use regulations. The Community Development Department is in charge of interpreting and enforcing Title 17; to include permit issuance, site plan review, land use application processing and customer service. 2) Administer the Borough's subdivision/platting regulations. Title 16 of the Kodiak Island Borough Code contains the Borough’s platting (subdivision) regulations, which include subdivision and vacation regulations, standards for physical improvements to be made during the subdivision process, and waiver and appeals processes. 3) Perform short and long-term planning on both an areawide and non-areawide basis. Per Alaska Statute the Borough is responsible for short and long-range planning Borough wide. Community Development is responsible for updating the Borough’s areawide comprehensive plan, which includes long-range planning specific to each community in the Borough. 4) Provide technical expertise and support to Borough boards and committees. Community Development provides staffing to the Planning and Zoning Commission, Parks and Recreation Committee and Local Emergency Planning Committee. In addition, the Community Development Director represents the department as staff at Borough Assembly regular meetings and work sessions. The Department works with elected officials, agency staff and community members alike to promote sound development and ensure that Borough regulations, policies and procedures related to planning, land use and development reflect the community's vision and values as identified in the Borough's comprehensive plan. 78 COMMUNITY DEVELOPMENT (CONT.) FY2021 GOALS & OBJECTIVES: ANALYSIS: EPA Brownfield Community Assessment Grant - The Borough was awarded a total of $600,000 by the U.S. EPA for the purposes of identifying, prioritizing and assessing contaminated sites within the Borough. This project, which kicked off in October 2017, opens the door for future funding and cleanup opportunities for the Borough, which will ultimately lead to site revitalization and economic development. In 2020 the Mill Bay Corridor area-wide plan was developed through meetings with the public and various community group representatives. The Brownfield grant was finalized and closed in late FY2020, having completed Phase I investigations on 8 properties and Phase II investigations on 5 properties, as well as assisting the Sun'aq Tribe in finding money for redevelopment plans on one of their parcels. Parks & Recreation Comprehensive Plan Update - The Community Development staff is helping the Parks & Recreation Committee with updating the Borough's 37-year-old Parks & Recreation Plan. This update is identified as an action in the Borough's adopted 2008 Comprehensive Plan. In FY2020 staff began the rewrite process after delays in previous years. The plan is expected to be completed and adopted by the Planning & Zoning Commission and Assembly in FY2021. Title 16 Updates – Changes and corrections to KIBC Code Title 16 – Subdivisions, are up for adoption in FY2021. ADU Code Update – Revisions to the ADU code section were adopted by the Assembly in FY2020. UMOT - The KIB Assembly adopted their first Uniform Minor Offense Table in FY2020, after months of revisions. The UMOT table will allow the CDD code enforcement officer to issue fines for those individuals not complying with the fines in the table. The fines table becomes effective at the start of FY2021. Enforcement processes are being modified and will be implemented in FY2021 as well. Goals Department Objectives Indicator FY2018 Outcome FY2019 Outcome FY2020 Outcome FY2021 Goal Periodically review zoning codes to ensure they serve the best interest of the community At least 3 zoning code chapters reviewed/changed.3 12 3 3 Perform periodic reviews of the adopted Comprehensive Plan (may be by plan section). Begin section reviews of the Comprehensive Plan.Yes No 0 1 section Complete other planning efforts as directed by P&Z and the Assembly.Begin at least one major planning effort per year as directed by P&Z and the Assembly.1 2 1 (AWP)2 Host outreach activities during National Planning Week (October)0 0 0 4 (1 per week in October) Produce educational series of articles via website.n/a n/a n/a 4 Participate in radio shows and contribute to news articles quarterly.0 1 6 4 Utilize website for project planning feedback from public.n/a n/a n/a 1 project Public Meetings Hold public meetings for significant code changes and projects being administered by the department or partner agencies.Yes Yes 1 2 Perform long range planning and continuous code review. Goals, Objectives, and Performance Indicators: Use the Borough website, public news sources and social media to disseminate information to the public. Participate in local outreach and public education events. Educate the public in land use regulations as well as potential changes. 79 COMMUNITY DEVELOPMENT (CONT.) FY2021 Title 17 - Staff will begin updates and corrections to Title 17 in FY2021. Aerial Imagery - A new aerial imagery contract was secured in FY2020 after two years of missed flights. The first of the new imagery will be received in FY2021. Staffing Levels - Staffing in CDD was reduced to 50% for various reasons and continued at that level in FY2020. Attempts will be made into FY2021 to fill the GIS and Code Enforcement positions, bringing the staffing level to 83%. SIGNIFICANT BUDGET CHANGES: The FY2021 budget is $171,350 lower than the amended FY2020 budget. Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 438,592$ 364,544$ 465,854$ 252,017$ 354,793$ Fringe Benefits 285,084 255,130 301,107 173,949 247,545 Professional Services 13,217 21,423 11,000 37,167 10,000 Contributions - - - -- Legal Services 19,509 11,984 8,000 7,053 7,000 Support Goods & Services 124,339 253,418 184,180 112,740 107,583 Capital Outlay - - - Allocated to other funds (500) (500) - - Operating Transfers - 65,200 - - - Total Expenditures 880,241$ 971,199$ 970,141$ 582,927$ 726,921$ Personnel FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Community Development Director 1 1 1 1 1 Associate Planner/Enforcement 1 1 0 0 1 Associate Planner/Long Range Planning 1 1 1 1 1 Secretary lll 1 1 1 1 1 Code Enforcement Officer 1 1 0 0 1 GIS Analyst 1 1 0 0 1 Total Number of Employees 6 6 3 3 6 Expenditures Personnel 80 This page intentionally left blank. 81 BUILDING OFFICIAL FY2021 PROGRAM DESCRIPTION: The Kodiak Island Borough Building Inspection Program ensures compliance with adopted building codes and related zoning codes. The Borough, by means of a Memorandum of Agreement, uses the City of Kodiak for administration of the Borough’s Building Inspection Program. Inspections performed on residential and commercial building construction include structural, mechanical, electrical, and plumbing inspections. This ensures that every new construction project in the Kodiak Island Borough complies with applicable adopted building codes and fire codes. GOALS AND OBJECTIVES: • Continue a positive relationship between the City of Kodiak and the Kodiak Island Borough Building Inspection contract. • Encourage and enable the continuing education of the building inspectors. • Encourage and enable the maintenance of the City's delegated plan review authority from the State of Alaska and maintenance of the AHFC building inspections program approval. • Encourage and enable the City to maintain and improve their Insurance Service Office (ISO) rating. ANALYSIS: The City of Kodiak provides monthly and annual reports outlining their building permitting activities, both inside and outside the City of Kodiak. The monthly/annual valuation and permit reports are then reviewed by the Community Development Department. In FY2020 the City of Kodiak provided the following report for the Kodiak Island Borough boundaries: Building Permits: 91 Plumbing Permits: 35 Electrical Permits: 80 Inspections related to these permits are performed as required by Building Department personnel. The Building Inspection Department will continue to annually review the Memorandum of Agreement between the City of Kodiak and the Kodiak Island Borough for the provision of building inspection services within the road system. The Memorandum of Agreement will then be placed on the Assembly's agenda at the beginning of each calendar year for review and consideration. SIGNIFICANT BUDGET CHANGES: The budget has decreased by $6,100 for FY2021. 82 BUILDING OFFICIAL (CONT.) FY2021 Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services 142,231 167,430 146,000 164,173 140,000 Contributions - - - - - Legal Services - - - - - Support Goods & Services 24,220 20,642 20,591 20,491 20,491 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfer - - - - - Total Expenditures 166,451$ 188,072$ 166,591$ 184,664$ 160,491$ Personnel FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Total Number of Employees - - - - - Personnel Expenditures There is no personnel for this department. 83 ECONOMIC DEVELOPMENT FY2021 PROGRAM DESCRIPTION: The function of the Economic Development Program is to provide the Assembly with the opportunity to pursue the most feasible economic development opportunities that will be of benefit to the entire community. GOALS AND OBJECTIVES: • Engage citizens in understanding the value of establishing an economic development entity. • Promote the value of having community leaders at the table when effects on fish policy are up for discussion. • Encourage the preservation and growth of Kodiak’s natural fisheries. • Promote economic diversification. • Support different community entities in collaborating and creating partnerships in order to strengthen opportunities for economic development. ANALYSIS: The Borough does not have dedicated Economic Development staff. However, the goal of the economic development funds in FY2021 is to assist the local fishing community to preserve Kodiak’s fisheries. SIGNIFICANT BUDGET CHANGES: No significant changes from FY2020 to FY2021. Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services 33,336 - 20,000 20,000 13,570 Contributions - - - - - Legal Services - - - - - Support Goods & Services 600 600 600 600 - Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures 33,936$ 600$ 20,600$ 20,600$ 13,570$ Personnel FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Total Number of Employees - - - - - Expenditures Personnel There is no personnel for this department. 84 GENERAL ADMINISTRATION FY2021 PROGRAM DESCRIPTION: The function of the General Administration department is to provide for organization- wide needs such as basic office supplies, employee training, and recognition. GOALS AND OBJECTIVES: Provide continuing education opportunities to department staff to increase efficiency and maintain/increase knowledge with applicable state and federal laws. • Maintain the Drug-Free Workplace program, including training for all employees. • Maintain the Blood Borne Pathogens Training program for all employees to comply with Occupational Safety and Health Administration (OSHA) standards. • Maintain the quarterly safety training program for all employees to comply with Occupational Safety and Health Administration (OSHA) Standards. • Continue award programs to recognize outstanding employees. • Maintain the Employee of the Quarter and Employee of the Year incentive awards programs. • Maintain the service award program (service pins) for employees to promote and reward longevity. ANALYSIS: This department provides for basic needs for the entire Borough to function such as postage and stationary, as well as for items that benefit all employees such as safety training and recognition through an employee award system. New quarterly safety training modules by a third-party vendor have been added to comply with OSHA standards. SIGNIFICANT BUDGET CHANGES: There is an increase in expenditures in the amount of $112,751. Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 833$ 1,433$ 1,000$ 772$ 1,500$ Fringe Benefits 2,880 3,250 3,413 8,120 3,665 Professional Services Audit Expenses 98,555 107,201 105,000 89,050 108,000 Contracted Services - 108 125 109 125 Contributions 35,103 103,931 36,000 130,576 - Legal Services - - - - - Support Goods & Services 57,488 133,696 64,500 83,149 166,637 Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures 194,859$ 349,619$ 210,038$ 311,776$ 279,927$ Personnel FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Total Number of Employees - - - - - Expenditures Personnel There is no personnel for this department. 85 PARKS AND RECREATION FY2021 PROGRAM DESCRIPTION: The major function of this program is to operate and maintain Borough parks, trails, trailheads and provide informational and mapping materials associated with Borough recreational activities. The Parks and Recreation department continues to develop renewal and replacement plans for all parks. The parks and trails maintained by the KIB Parks and Recreation include: Sargent Creek Park (Bell Flats) Panamaroff Park (Bell Flats) Otmeloi Park White Sands Beach Termination Point Trail Mill Bay Beach Island Lake Park & Boat Launch Harlequin Park The Bike Path (This crosses both KIB and City of Kodiak Property) GOALS AND OBJECTIVES: Provide the Borough communities with save and enjoyable parks, trails, and open space. • Maintain equipment and clear brush at parks. • Replace or remove unsafe equipment causing liability. • Brushing, stabilizing, and hardening trails. • Garbage removal and clean-up for parks and trails • Snow removal and ice control for the bike path. Increase community involvement to help develop improvements for parks and trails. • Continue to offer public meetings through the Parks and Recreation committee. ANALYSIS: Parks and Recreation has completed multiple upgrades to various parks, increased code enforcement and maintenance responsibilities throughout the parks. In FY2020 the department continued trail improvements to Termination Point Trail utilizing volunteer labor. Additional funding has been requested for equipment upgrades and improvements. SIGNIFICANT BUDGET CHANGES: The budget was decreased by $14,132 for FY2021. Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 17,414$ 11,570$ 47,924$ 12,289$ 29,500$ Fringe Benefits 4,304 3,219 6,480 3,030 6,272 Professional Services 8,431 1,055 10,000 1,350 10,000 Contributions - - - - - Legal Services - - - - - Support Goods & Services 38,003 41,252 22,500 15,893 27,000 Capital Outlay 9,035 - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures 77,186$ 57,096$ 86,904$ 32,562$ 72,772$ Personnel FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budgeted Total Number of Employees - - - - - Expenditures Personnel There is no personnel for this department. 86 This page intentionally left blank. 87 EMERGENCY PREPAREDNESS FY2021 PROGRAM DESCRIPTION: Alaska Statute 26.23.060 (b) requires Alaska political subdivisions to be responsible for disaster preparedness and coordination of response. This fund is intended to provide funds for electricity and maintenance associated with the Siren Alert Warning Systems (SAWS), which are also known as Tsunami sirens. GOALS AND OBJECTIVES: Operate and maintain the community Siren Alert Warning Systems (SAWS). • Maintain and replace sirens as needed. Ensure the availability of qualified staff to fill critical Incident Management Team (IMT) positions). • Coordinate with the State of Alaska Department of Homeland Security and Emergency Management (DHS&EM) to facilitate Incident Command System (ICS) overview for executives/senior officials training for all Borough elected officials. • Establish a Borough policy that requires all Borough employees to complete the basic online ICS 100, 200, 700, and 800 courses. • Fund advanced ICS 300, 400 and IMT position specific training opportunities for key Borough personnel. Staff participation in an annual exercise with our emergency management partners. • Exercise the Kodiak Area Emergency Operations Plan by developing and facilitating at least one joint Borough staff/emergency management partner disaster drill in FY2021. Update the Kodiak Area Emergency Operations Plan and Kodiak Island Borough Hazard Mitigation Plan • Begin the annual review of the Kodiak Area Emergency Operations Plan update by the Emergency Services Council. Assist remote communities with emergency preparedness efforts. • Collaborate with the DHS&EM provided consultant and our remote communities to update their respective Hazard Mitigation Plan Annexes. • Assist our remote communities with the development of local emergency response plans utilizing the DHS&EM Small Community Emergency Response Plan (SCERP) template. • Assist in the development of tsunami evacuation maps for our remote communities. • Coordinate with DHS&EM to arrange ICS training opportunities for our remote communities. 88 EMERGENCY PREPAREDNESS, CONT. FY2021 ANALYSIS: FY2020 saw very little use of this budget do to staffing changes and unfilled positions. In FY2021 staff will utilize the funding to provide KIB's match funding for a Homeland Security grant to upgrade the tsunami sirens. Some of the funding will also be used to buy new emergency radios in preparation for an emergency. Funds were removed from the salary line item for FY2021. SIGNIFICANT BUDGET CHANGES: The Emergency Preparedness budget decreased $2,093 for FY2021. Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 4,204$ 5,028$ 6,375$ 423$ -$ Fringe Benefits 2,443 2,637 4,918 251 - Professional Services 21,917 400 30,000 - 20,000 Contributions - - - - - Legal Services - - - - - Support Goods & Services 14,473 6,241 21,750 3,804 20,950 Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures 43,038$ 14,307$ 63,043$ 4,479$ 40,950$ Personnel FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budgeted Total Number of Employees - - - - - Expenditures Personnel There is no personnel for this department. 89 ANIMAL CONTROL FY2021 PROGRAM DESCRIPTION: The Kodiak Island Borough contracts with the City of Kodiak to provide for Animal Control Services. The goal of the program is to have officers patrol all neighborhoods as needed to address loose dogs and cats, investigate nuisance animals and to operate a shelter to house them. Animal Control Services also encourages compliance with Borough pet licensing program and leash requirements where and when applicable. The contract between the Borough and the City states that the City will provide the Patrol Officer(s), the vehicle(s), and the shelter (which is contracted to the Humane Society of Kodiak). The humane shelter is used to re-unite animals with the owners and also as an adoption center for surrendered or abandoned animals of Kodiak. The shelter ensures that impounded animals are current on rabies vaccinations before being released back to the public. This arrangement works for the vast majority of animal control cases but does not work for large animals such as horses. In the past the Borough has contracted with the Kodiak State Fair and Rodeo Association to hold large animals until any issue is resolved. The Borough’s Enforcement Officer and the City's Animal Control personnel will work closely on some cases. The Community Development Department administrates and oversees and Animal Control Fund. GOALS AND OBJECTIVES: Continue a positive relationship between the City of Kodiak and the Kodiak Island Borough for community Animal Control. • Respond to citizen complaints outside the City of Kodiak regarding animal nuisances, dangerous animals, and animal cruelty. • Enable and promote the continued contract between the City of Kodiak and the Humane Society of Kodiak for providing veterinary services as required to ensure vaccination. • Enable and promote the continued contract between the City of Kodiak and the Humane Society of Kodiak for providing shelter services. ANALYSIS: The City of Kodiak provides reports on an annual and as-requested basis outlining their animal control activities, both inside and outside the City of Kodiak. For the last full reporting year (FY2020), the City provided the following services for Borough boundaries: • 45 Impounds • 95 Licenses • 1 Citation • 35 Aggressive Animals • 21 Cruelty • 26 Annoying Animals • 236 Actual Calls • 229 Actual Responses • 24 calls to Pasagshak/Chiniak SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2021. The Humane Society of Kodiak is a 501C3 that is locally organized and is not affiliated with the Humane Society of the United States. 90 ANIMAL CONTROL (CONT.) FY2021 Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Actual FY2021 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services 114,015 115,800 118,700 118,700 118,715 Contributions - - - - - Legal Services - - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures 114,015$ 115,800$ 118,700$ 118,700$ 118,715$ Personnel FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Total Number of Employees - - - - - Expenditures Personnel There is no personnel for this department. 91 EDUCATION, CULTURE, AND RECREATION FY2021 PROGRAM DESCRIPTION: This program consists of contributions to non-profit agencies that provide educational, cultural, and/or recreational opportunities for the citizens of the Kodiak Island Borough. GOALS AND OBJECTIVES: Provide financial assistance to non-profit agencies to ensure their financial viability to provide educational, cultural, and recreational opportunities for the residents of the Borough. • Provide funding for high-quality wide-appeal programs for the benefit of Borough residents. ANALYSIS: This fund was established to reflect money allocated to non-profit agencies. As the local philosophy regarding the Borough's funding of these agencies has changed, the accounting for those funds has also changed. A fund titled Non-Profit Funding accounts for the discretionary funding of non-profit agencies while this account now reflects payment of actual costs for the North Star PTA provision of streetlighting near the school, and pass through monies from the State of Alaska to the Karluk IRA Council, a tribal entity. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2021. Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2021 Estimated FY2021 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services - - - - - Contributions - - - - - North Star PTA 4,665 4,683 4,800 4,658 4,800 Karluk IRA Council - 15,789 16,000 15,789 16,000 Legal Services - - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures 4,665$ 20,472$ 20,800$ 20,447$ 20,800$ Personnel FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Total Number of Employees - - - - - Expenditures Personnel There is no personnel for this department. 92 KODIAK COLLEGE AND LIBRARIES FY2021 PROGRAM DESCRIPTION: This department is an aspect of non-profit funding that helps support education in the Borough. GOALS AND OBJECTIVES: Provide educational opportunities through the associate degree level of schooling and provide resources for more materials in the Borough’s public libraries. • Contribute to Kodiak College. ANALYSIS: The residents of the community of the Kodiak Island Borough have voiced their preference for continued funding of the contribution to Kodiak College for their Jump Start program which assists high school students transition into college classes, therefore the appropriation has remained. The local public libraries are no longer provided funds from this department. SIGNIFICANT BUDGET CHANGES: No significant budget changes. Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services - - - - - Contributions Kodiak College 60,000 50,000 50,000 50,000 50,000 Libraries 12,000 - - - - Legal Services - - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - Total Expenditures 72,000$ 50,000$ 50,000$ 50,000$ 50,000$ Personnel FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Total Number of Employees - - - - - Expenditures Personnel There is no personnel for this department. 93 NON-PROFIT FUNDING FY2021 PROGRAM DESCRIPTION: This department has been established to account for grants awarded to non-profit entities in the community to assist them in providing their community services. GOALS AND OBJECTIVES: Provide financial assistance to non-profit agencies to ensure their financial viability to provide community services for the residents of the Borough. • Provide funding for high-quality wide-appeal programs for the benefit of Borough residents. • Provide an efficient, effective, and consistent application process. ANALYSIS: The Borough has a long history of providing funds to nonprofit entities to assist them in providing services that are important to the community. As it has become more challenging to balance the budget without raising the tax rate, it has been equally challenging to maintain this program. At this time, the funding has been reduced but the program remains in place. SIGNIFICANT BUDGET CHANGES: Due to overall revenue decreases, non-profit reductions have been necessary. 94 NON-PROFIT FUNDING (CONT.) FY2021 Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services - - - - - Contributions Safe Harbor 17,000 4,100 - - - Humane Society 4,000 4,100 3,100 3,100 3,100 Women's Resource & Crisis Center 47,500 47,500 47,500 47,500 20,000 American Red Cross - 4,100 3,100 3,100 3,100 Kodiak Baptist Mission 34,000 27,200 - - - Hospice of Kodiak 4,000 4,100 3,100 3,100 3,100 Senior Citizen Support 26,000 20,800 21,000 21,000 20,000 Hope Community Resources 4,000 - - - 3,100 Salvation Army - 12,000 20,000 20,000 20,000 Brother Francis Shelter 43,000 34,400 36,000 36,000 20,000 Funding/Non-Profits - - - - - Legal Services - - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Sub-Total 179,500$ 158,300$ 133,800$ 133,800$ 92,400$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services - - - - - Contributions Alutiiq Museum & Archaelogical Repository - - - - 4,000 KMXT Public Radio 4,000 4,100 3,700 3,700 4,000 Kodiak Arts Council 4,000 4,100 3,100 3,100 3,100 Head Start - - - - - Kodiak Area Mentor Program 4,000 4,100 4,500 4,500 4,750 KANA Family Center 4,000 4,100 3,100 3,100 3,100 Kodiak Soil & Water Conservation 4,000 - 3,100 3,100 3,100 Native Village of Port Lions 4,000 - - - - Kodiak Teen Court - 4,100 3,100 3,100 - Kodiak Maritime Museum - - - - 4,000 Kodiak Rodeo & State Fair .- - - 4,000 Rural Alaska Community Action Program - 4,100 3,100 3,100 3,100 Funding/Non-Profits - - - - 1,200 Legal Services - - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Sub-Total 24,000$ 24,600$ 23,700$ 23,700$ 34,350$ Total Expenditures 203,500$ 182,900$ 157,500$ 157,500$ 126,750$ Non-Profit Funding - Education, Culture & Recreation Non-Profit Funding - Health & Social Services 95 TRANSFERS FY2021 PROGRAM DESCRIPTION: Money is transferred from the General Fund to other funds of the Kodiak Island Borough. GOALS AND OBJECTIVES: There are no specific goals and objectives listed for this department; they are delineated in the fund receiving the transfer. ANALYSIS: Not applicable. SIGNIFICANT BUDGET CHANGES: Due to the State of Alaska not providing for funding for the LEPC Grant or Debt Service Reimbursement programs, the General Fund mill rate includes amounts transferred to those funds. Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Allocated to Other Funds - - - - Operating Transfers - Education Support Fund - - - - - Land Sales - - - - - Buildings & Grounds - - - - - LEPC - - 13,000 13,000 10,072 Fire District #1 - - - - - Debt Service - - - - 3,016,076 Transfers to Fund 270 - - - - - Transfers to Capital Projects 403,958 - - - - Solid Waste - - - - - Hospital - - - - - KFRC - - - - - Total Expenditures 403,958$ -$ 13,000$ 13,000$ 3,026,148$ Expenditures 96 SPECIAL REVENUE FUNDS Special Revenue Fund Description Special revenue funds account for revenues obtained via specific taxes or other designated revenue sources. They are usually mandated by statue, charter, or local ordinance to fund specific functions or activities. Examples are fire protection and road service districts. Unlike the general fund, which has one revenue fund and many departments within it to account for the various expenditures, each special revenue fund is a complete set of accounts, one for revenue and one for expenditures. Special Revenue funds do not include debt service, capital projects or enterprise funds. Funds included in this section are: • Education Support • Land Sales Fund – Resource Management • Buildings and Grounds o Borough Building o Mental Health Center o Closed Schools (Larsen Bay & Karluk) o School Buildings Major Repairs o Various Borough Buildings o Projects Office • Local Emergency Planning Committee (LEPC) • Women’s Bay Road Service Area • Service Area #1 • Service Area #2 • Monashka Bay Road Service Area • Bay View Road Service Area • Fire Protection Area #1 • Women’s Bay Fire Department • KIB Airport Fire Protection District • Woodland Acres Lighting District • Trinity Islands Lighting District • Mission Lake Tide Gate • Facilities Fund • Tourism Development • Commercial Passenger Vessel 97 REVENUE SOURCES AND SPECIAL REVENUE FUND ESTIMATES The total revenue budget for all Special Revenue Funds is $13,662,738. Property Tax: Real and Personal Property Taxes. Several service areas levy a mill rate and collect taxes on the property located within their boundaries. The following table shows these service areas, the net taxable value of the property within their boundaries, and the mill rate. The net taxable value is the total assessed value of property less any applicable exemptions. Generally, 90% of property taxes are from real property and 10% from personal property. Overall, the current Borough-wide delinquency rate is approximately 0.2%. Transient Accommodation Tax. The Borough assesses a tax on overnight accommodations provided within the Kodiak Island Borough’s boundaries. Cities within the Borough’s boundaries that assess their own accommodation tax on businesses within city boundaries are exempt from collecting the Borough’s tax. The FY2021 revenue Area-Wide (all properties within the Borough) Net Taxable Value Mill Leavy Kodiak Island Borough School District 1,455,827,742$ 6.45 Non-Area-Wide (within Service Area Boundaries only) Womens Bay Road Service Area 2.50 Road Service Area No.1 1.50 Monashka Bay Road Service Area 1.99 Bay View Road Service Area 1.47 Fire Protection Area No. 1 1.50 Womens Bay Fire Department 1.25 KIB Airport Fire Protection District 1.22 Woodland Acres Street Light Area 0.10 Trinity Lslands Street Light Area 0.15 Mission Lake Tide Gate Area 0.25 98 budgeted for this tax is $20,000. This is due to the COVID-19 pandemic severely impacting air travel and tourism in general. Motor Vehicle Registration Tax. AS 28.10.431 allows the Division of Motor Vehicles to collect property tax on motor vehicles on behalf of municipalities and boroughs. The property tax is a flat rate based on the type of vehicle and the year of the vehicle. The tax is collected, along with the biannual registration fee, and remitted to the Borough monthly. This method of collection was created in anticipation of reducing the delinquency rate for personal property taxes and improves collection of taxes on vehicles. Based on prior year collections, the revenues from this source are budgeted at $210,000. Per KIB 3.60.020, for FY2021 these revenues will be collected in the Debt Service fund. Prior to FY2020, the funds were collected in the Education Support Fund. Licenses & Permits. Money received by the Borough and service districts for use of land that they own. The total revenue anticipated for all special revenue funds is $33,600. Rents and Royalties: Office Rent. The Borough charges rent for office space to Borough departments and outside agencies that have offices within Borough buildings. For fiscal year 2021, the Borough is charging an average rate of $2.20 per square foot which equates to $813,251 in rental revenues. Rents and Royalties: Gravel Sales. The Kodiak Island Borough has leased out four parcels of land for gravel extraction. The lease requires that a royalty be paid on the amount of gravel extracted. The $6,000 of revenue we expect to receive in fiscal year 2021 is based on estimates and averages of gravel extractions in prior years. The current royalty rate is $2.00 per cubic yard. Land Sales Activities. Periodically, the Borough sells land, typically by public auction. Two objectives are met by these land sales: the Borough receives revenue, and land is put into private ownership. For FY2021 the estimated revenue from land payments is $28,464. State Shared Revenues: State Grants. Money received by the Borough to be used on specified projects. This revenue funds activities in the Local Emergency Planning Committee Fund. The State of Alaska cut this program in FY2020 due to budgetary constraints and this was again the case in FY2021. State Shared Revenues: Cruise Ship Tax. Beginning in FY2019, cruise ship tax sharing revenues have been accounted for in a separate fund. Previously the revenue was accounted for within the Tourism Development fund. Based on past collections, the estimated FY2021 revenue is $0. The cruise ship industry has been impacted heavily due to the COVID-19 pandemic, as well as tourism in general. Other Financing Sources: These are other sources of money that are not earned revenue. These include items such as use of fund balance or transfers in from other funds. Penalties and Earnings on Investments. The majority of this revenue is from net earnings on investments in the Facilities Fund. It is estimated that these net earnings (interest income added to the increase and/or decrease of the market value of investments) will be $750,000. The estimated amount of penalties and net earnings on all special revenue funds is $37,657. The earnings budgeted are conservative and based on economic trends. Miscellaneous. Money received that does not fit in any other defined category that is generally one-time in nature. 99 SPECIAL REVENUE FUND RECAP Special Revenue Funds Budget Summary Education Support Land Sales Buildings & Grounds LEPC Womens Bay Service Area Service Area No. 1 Service Area No. 2 Monashka Bay Service Area Bay View Rd. Service Area Estimated Fund Balance 59,394$ 1,348,857$ 1,287,773$ 13,000$ 135,560$ 803,815$ 6,345$ 214,812$ 49,452$ Revenues Property Tax 9,390,089 - - - 210,000 428,500 - 48,805 13,879 Penalties/Interest on Tax - - - - - - - - - Non Ad Valorem Tax - - - - - - - - - Sales Tax - - - - - - - - - Licenses & Permits - 6,000 - - 27,600 - - - - State Shared Revenue - - 6,974 - - - - - - Federal Grants - - - - - - - - - State Grants - - - - - - - - - Rents & Royalties - 8,000 813,251 - - - - - - Charges for Services - - - - - - - - - Land Sale Activity - 28,464 - - - - - - - Interest Earnings - 25,000 10,000 - - - - - 100 Miscellaneous - 80 - - - - - - - Other Funding Sources - 238,623 403,157 - - - - - - - - - - - - - - - Transfers In - - 5,000 10,072 - - - - - Total Revenues & Transfers In 9,390,089 306,167 1,238,382 10,072 237,600 428,500 - 48,805 13,979 Total Available Funds 9,449,483 1,655,024 2,526,155 23,072 373,160 1,232,315 6,345 263,617 63,431 Expenditures Education 9,390,089 - - - - - - - - Resource Management - 56,167 - - - - - - - KIB Buildings - - 1,238,382 - - - - - - LEPC - - - 10,072 - - - - - Road Maintenance - - - - 237,600 428,500 - 48,805 13,979 Public Safety - - - - - - - - - Economic Development - - - - - - - - - - Transfers Out - 250,000 - - - - - - - Total Use of Funds 9,390,089 306,167 1,238,382 10,072 237,600 428,500 - 48,805 13,979 Est. Funds Available 6/30/21 59,394$ 1,348,857$ 1,287,773$ 13,000$ 135,560$ 803,815$ 6,345$ 214,812$ 49,452$ 100 SPECIAL REVENUE FUND RECAP Special Revenue Funds Budget Summary, continued Fire Protection Area No. 1 Womens Bay Fire Dept. KIB Airport Fire Protection District Woodland Acres Street Light Area Trinity Islands Street Light Area Mission Lake Tide Gate Facilities Fund Tourism Developm ent Commercial Passenger Vessel TOTAL Estimated Fund Balance 87,731$ 691,521$ 53,592$ 20,464$ 31,072$ 62,597$ 40,614,042$ 100,476$ 99,041$ 45,679,544$ Revenues Property Tax 635,280 108,500 18,429 5,540 1,897 1,572 - - - 10,862,491 Penalties/Interest on Tax - - - - - - - - - - Non Ad Valorem Tax - - - - - - - - - - Sales Tax - - - - - - - - - - Licenses & Permits - - - - - - - - - 33,600 State Shared Revenue 2,800 - - - - - - - - 9,774 Federal Grants 50,000 - - - - - - - - 50,000 State Grants - - - - - - - - - - Rents & Royalties - - - - - - - 20,000 - 841,251 Charges for Services - 16,700 - - - - - - - 16,700 Land Sale Activity - - - - - - - - - 28,464 Interest Earnings - 2,000 - - - 557 750,000 - - 787,657 Miscellaneous 2,000 12,000 - - - - - - - 14,080 Other Funding Sources 49,553 175,000 - - - - 82,316 55,000 - 1,003,649 Transfers In - - - - - - - - - 15,072 Total Revenues & Transfers In 739,633 314,200 18,429 5,540 1,897 2,129 832,316 75,000 - 13,662,738 Total Available Funds 827,364 1,005,721 72,021 26,004 32,969 64,726 41,446,358 175,476 99,041 59,342,282 Expenditures Education - - - - - - - - - 9,390,089 Resource Management - - - - - - - - - 56,167 KIB Buildings - - - - - - - - - 1,238,382 LEPC - - - - - - - - - 10,072 Road Maintenance - - - - - - - - - 728,884 Public Safety 739,633 314,200 18,429 5,540 1,897 2,129 - - - 1,081,828 Economic Development - - - - - - - 75,000 - 75,000 Transfers Out - - - - - - 832,316 - - 1,082,316 Total Use of Funds 739,633 314,200 18,429 5,540 1,897 2,129 832,316 75,000 - 13,662,738 Est. Funds Available 6/30/21 87,731$ 691,521$ 53,592$ 20,464$ 31,072$ 62,597$ 40,614,042$ 100,476$ 99,041$ 45,679,544$ 101 EDUCATION SUPPORT FUND FY2021 PROGRAM DESCRIPTION: The Education Support Fund encompasses the transfer of state-required local funding to the Kodiak Island Borough School District for operational costs. This program includes the purchase of liability, workers’ compensation and property insurance, funding the annual audit, snow removal, and an annual appropriation. GOALS AND OBJECTIVES: Providing adequate funding to the Kodiak Island Borough School District to ensure that high-quality education and safety will be provided to all children. • Provide snow removal and sanding to all schools within the district. • Identify a school facility maintenance list. ANALYSIS: Under State law, the Borough must annually contribute a dollar amount to the School District that falls within a specific range. The top of this range is sometimes referred to as “the cap.” There is a rather complicated formula done by the State of Alaska Department of Education and Early Development which sets both the minimum and maximum contribution range that the Borough will make to the school district. For FY2021, the Borough contributed 82% of the maximum amount possible under state law to the school district. SIGNIFICANT BUDGET CHANGES: The funding for FY2021 decreased $1,200,416 from the FY2020 funding and, as was the case in FY20, the funding is by a mill rate levy alone. In previous years revenues received from motor vehicle registration taxes (MVRT) were collected by this fund and thereby reduced the mill rate for this fund by the amount of estimated revenues. However, the MVRT revenues will now be collected in the Debt Service fund. 102 EDUCATION SUPPORT FUND (CONT). FY2021 Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Real Property Tax 9,081,032$ 9,795,955$ 10,590,505$ 10,562,780$ 9,390,089$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax 237,895 220,392 - - - Sale Tax - - - - - Licenese & Permits - - - - - State Shared Revenue - - - - - State Grants - - - - - Rent & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings - - - - - Miscellaneous - - - - - Other Funding Sources - - - - - Operating Transfer - - - - - Total Revenues 9,318,927$ 10,016,348$ 10,590,505$ 10,562,780$ 9,390,089$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services - - - - - Contracted Services - - - - - Audit Services 45,840 41,000 50,000 49,250 50,000 Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 291,639 373,050 515,261 542,873 380,000 Debt Service-Interest - - - - - Capital Outlay - - - - - Operating Transfers 9,040,021 9,506,526 10,025,244 9,880,421 8,960,089 Total Expenditures 9,377,500$ 9,920,576$ 10,590,505$ 10,472,544$ 9,390,089$ Revenues Expenditures 103 LAND SALES – RESOURCE MANAGEMENT FY2021 PROGRAM DESCRIPTION: The Kodiak Island Borough holds title to approximately 47,000 acres of land within the Kodiak Archipelago valued at 70-100 million dollars. It is the mission of the Resource Management Department of the Kodiak Island Borough to balance demand for public recreation access, development, industrial use, and resource extraction to meet the needs of Kodiak’s economic, recreational, and industrial needs. Generally, the Kodiak Island Borough seeks to manage lands in such a way that minimize day-to-day tasking related to land resource management and allows maximum access and enjoyment of Borough lands by the public. Therefore, the Resource Management Department focus is to develop means and methods to balance the resource priorities and needs of the community. GOALS AND OBJECTIVES: Manage Borough lands to meet the needs of the social, economic, and industrial development of the Kodiak Island Borough. • Work with the Borough Lands Committee to identify potential land acquisitions, disposals, zoning type demands, and other management issues. • Inventory and develop an electronic record of all KIB-Owned Lands and Facilities. • Assess anticipated needs and available resources in Kodiak Island Borough. • Develop and publish a Land and Resource Management Policy for Kodiak Island Borough. • Continuously examine land management practices and assess utility towards stated goals of the KIB Resource Management Office. • Examine the success of Borough Land Sales towards the relief of housing shortages in the Kodiak Island Borough. Minimize operating costs of Borough-owned facilities to the KIB Tax Base. • Work with the KIB Assembly to develop a long-term management strategy and spending criteria for the Kodiak Island Borough Land Sales Fund. • Work with Engineering and Facilities to maintain sufficient leases to cover ownership and maintenance costs of KIB Buildings. • Continue minimally demanding land management practices. ANALYSIS: No analysis provided since the resource manager position is vacant. SIGNIFICANT BUDGET CHANGES: Salaries and benefits have been reduced to zero, funds for surveying activities have been increased, and funds have been committed to capital projects. 104 LAND SALES – RESOURCE MANAGEMENT (CONT.) FY2021 8 Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Property Tax -$ -$ -$ -$ -$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits 7,210 6,000 6,000 6,000 6,000 State Shared Revenue 2,467 3,312 1,256 - - State Grants - - - - - Rents & Royalties 12,879 11,049 8,000 85,775 8,000 Charges for Services - - - - - Land Sale Activity 224,902 76,676 35,650 28,902 28,464 Interest Earnings 7,173 52,161 10,000 37,763 25,000 Miscellaneous 2,580 305 80 1,307 80 Other Funding Sources - - 176,957 - 238,623 Operating Transfers - - - - - Total Revenues 257,211$ 149,502$ 237,943$ 159,748$ 306,167$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 87,486$ 70,151$ 31,399$ 1,230$ 1,000$ Employee Benefits 54,028 45,525 17,576 615 - Professional Services 176,655 22,503 20,000 2,905 - Legal Services - - 2,000 - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 32,319 55,843 66,968 24,240 55,167 Capital Outlay - - - - - Operating Transfers - - 100,000 100,000 250,000 Total Expenditures 350,488$ 194,021$ 237,943$ 128,990$ 306,167$ Personnel FY2017 FY2018 FY2019 FY2020 FY2021 Budget Resource Manager 1 1 1 0 0 Total Number of Employees 1 1 1 0 0 Revenues Expenditures Personnel 105 BUILDING AND GROUNDS – ALL DEPARTMENTS FY2021 PROGRAM DESCRIPTION: This program funds the operation and maintenance of Borough-owned buildings, parking lots, parks, and public grounds. Specifically, this includes snow removal, lawn maintenance, park maintenance, and general building and grounds maintenance. It also includes rental of Borough-owned buildings. Budgeted departments within the Building and Grounds Fund are: • Borough Building • Mental Health Center • School Buildings Major Repairs • Closed Schools (Larsen Bay & Karluk) • Various Borough Buildings • Project Office GOALS AND OBJECTIVES: Provide adequate annual maintenance to Borough-owned buildings, parks, and other Borough facilities in a safe manner to prevent liability issues and ensure community safety. • Review checklist annually of KIB Building and Grounds to ensure funding is available within each year’s budget. • Provide funding for snow removal and parking lot maintenance around all Borough facilities, including school buildings. ANALYSIS: Budget analysis for this fund is detailed by individual departments listed above. SIGNIFICANT BUDGET CHANGES: Reduced budget funding may reduce services. Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Property Tax -$ -$ -$ -$ -$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue 2,121 4,165 2,200 5,087 6,974 Federal Revenues - - - 12,667 - Rents & Royalties 848,390 817,904 797,037 816,890 813,251 Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 4,635 51,686 3,300 36,786 10,000 Miscellaneous 122 4,215 - 595 - Other Funding Sources - - 302,742 - 403,157 Operating Transfers 10,000 341,370 5,000 5,000 5,000 Total Revenues 865,268 1,219,341 1,110,279 877,025 1,238,382 Revenues 106 BUILDING AND GROUNDS – (CONT.) FY2021 BOROUGH BUILDING PROGRAM DESCRIPTION: The Borough Building provides administrative office space for Borough Government and the City of Kodiak Government. It is also the site of the Borough Assembly Chambers. This department covers all routine maintenance and janitorial to the building. Engineering and Facilities administrates and operates the Building and Grounds Fund - Borough Building. GOALS AND OBJECTIVES: Work towards funding for the renewal and replacement (R&R) and capital projects for this facility to ensure a safe environment for all employees. • Meet with the Assembly to discuss funding sources for R&R. • Meet with the Assembly to discuss funding sources for capital projects. • Provide routine maintenance for a safe environment and pleasant appearance. • Maintain adequate level of lawn maintenance. • Maintain adequate level of snow/ice removal. • Provide maintenance to the air handling and boiler systems and controls. ANALYSIS: The Building and Grounds Fund - Borough Building upgrades are underway as a result of the current pandemic and associated protective measures required for the health and safety of residents, visitors, elected officials and staff. Improvements will include sanitation specific fixture replacement, upgraded filtration and increased change out of Merv 13 filters. The Engineering and Facilities Department is requesting Assembly funding for renewal, replacement, and renovation of the Borough Building for HVAC, emergency electrical generator replacement, hazardous material removal and security upgrades. SIGNIFICANT BUDGET CHANGES: Budget reduction in the FY2021 Budget. Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 73,109$ 81,080$ 88,326$ 85,553$ 106,550$ Employee Benefits 48,702 49,345 57,163 50,548 88,700 Professional Services 10,235 78,465 43,850 34,581 - Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 226,988 224,158 421,242 238,949 270,132 Capital Outlay - - 26,000 69 300,000 Operating Transfers 137,000 115,000 150,000 150,000 - Total Expenditures 496,035$ 548,048$ 786,581$ 559,700$ 765,382$ Expenditures 107 BUILDING AND GROUNDS – (CONT.) FY2021 MENTAL HEALTH CENTER PROGRAM DESCRIPTION: The Kodiak Island Borough leases the Mental Health Facility to Providence Kodiak Island Medical Center, which provides a variety of services including rehabilitation housing, therapy programs, and administration offices for the Providence Kodiak Island Counseling Center. The Borough is responsible for staffing for lease negotiations and provides some funding for maintenance. Engineering and Facilities administrates and operates the Building and Grounds Fund - Mental Health Center. GOALS AND OBJECTIVES: Continue a positive relationship between Providence Kodiak Island Medical Center and the Kodiak Island Borough. • Provide annual maintenance funding to ensure safe usable facilities. • Provide review of maintenance tax request to ensure requests are required. ANALYSIS: The Borough is providing minimal funding for maintenance requests. The facility lease is nearing expiration and the intent is to vacate this aging property. Minimal contingent maintenance funds have been provided for in this budget however maintenance tasks will be scrutinized to maintain the buildings in their current condition and minimize improvement projects. SIGNIFICANT BUDGET CHANGES: Per the 2018 lease negotiation the Borough is required to provide up to $25,000 in funding for maintenance needs. Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 123$ 1,032$ 2,161$ 203$ 3,000$ Employee Benefits 129 587 1,696 76 - Professional Services - - 5,000 - 15,000 Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 24,119 27,597 23,000 4,263 28,800 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures 24,372$ 29,216$ 31,857$ 4,542$ 46,800$ Expenditures 108 BUILDING AND GROUNDS – (CONT.) FY2021 CLOSED SCHOOLS PROGRAM DESCRIPTION: This program provides funding for the maintenance, operation, and utility costs of any Karluk and Larsen Bay closed school buildings to maintain the integrity of the building for future use. Engineering and Facilities administrates and oversees the Building and Grounds Fund - School Buildings. GOALS AND OBJECTIVES: Manage the closure of any school facilities. • Request funding required for staffing and support services. • Provide ongoing utility service to maintain facility. ANALYSIS: In FY2021 Karluk and Larsen Bay Schools are utilized for school and community use activities to ensure constant surveillance of these remote facilities. The pandemic has prohibited to date any repairs and maintenance required at the facilities unless the items can be performed by local staff. The Larsen Bay facility requires significant repair on the sprinkler system and associated machinery. SIGNIFICANT BUDGET CHANGES: Current budget has been based on FY 2019 and FY 2020 expenditures and minimal maintenance projects. All requested and required tasks will be reviewed and prioritized based on health and safety concerns and facility preservation. Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services -$ -$ -$ -$ -$ Employee Benefits - - - - - Professional Services - - - - - Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services - 101,416 207,100 161,711 267,200 Capital Outlay - - - - - Operating Transfers - 50,000 - - - Total Expenditures -$ 151,416$ 207,100$ 161,711$ 267,200$ Expenditures 109 BUILDING AND GROUNDS – (CONT.) FY2021 SCHOOL BUILDINGS MAJOR REPAIRS PROGRAM DESCRIPTION: This program provides funding for major repairs to the Borough-owned school facilities. The Kodiak Island Borough is responsible for repairs that exceed $10,000 in accordance with the current In-kind Agreement. The Engineering and Facilities Department administrates and oversees the Building and Grounds Fund - School Building Major Repair. GOALS AND OBJECTIVES: Continue maintenance as per the In-Kind Agreement. • Provide financial back-up for unforeseen major maintenance repairs. ANALYSIS: In FY2021 budget has been reduced due to budgetary constraints. Current planning and alternate funding have been redirected to capital projects to continue school maintenance and faciltiy upgrades. The School Buildings Major Repairs Fund for professional service and support goods and services requests vary from year to year. The Borough and KIBSD staff continue to interact and prioritize required funding requests. SIGNIFICANT BUDGET CHANGES: Budget reductions and alternative funding of capital projects have reduced expenditures planned for this budget section. Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services -$ -$ 3,100$ -$ 3,000$ Employee Benefits - - 1,999 - - Professional Services 31,062 7,650 20,035 510 20,000 Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 80 32,068 25,100 9,108 25,000 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures 31,142$ 39,718$ 50,234$ 9,618$ 48,000$ Expenditures 110 BUILDING AND GROUNDS – (CONT.) FY2021 VARIOUS BOROUGH BUILDING PROGRAM DESCRIPTION: This program funds the operation and maintenance of various smaller Borough-owned buildings, such as the Egan Way Cottages, Borough Annex Building, Borough Maintenance Facility. The Engineering and Facilities Department administrates and oversees the Building and Grounds Fund - Various Borough Buildings. GOALS AND OBJECTIVES: Provide adequate annual maintenance to these facilities to prevent liability issues. • Continue to perform annual inspections of each of these facilities to provide for proper funding for projects identified in these inspections. • Revise the renewal and replacement schedule to ensure funding requests are based on priorities based on health, safety and facility stability. ANALYSIS: In FY2021 the fund will continue routine maintenance of all facilities included in the Various Borough Buildings Fund. SIGNIFICANT BUDGET CHANGES: Funding was reduced due to funding reduction due to the current economic situation. All the facilities covered within this fund require significant repairs, maintenance, and system upgrades. All proposed expenditures will be analyzed for their priority to maintain facility integrity based and health and safety and facility preservation. Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services -$ 130$ -$ 1,130$ 1,000$ Employee Benefits - 84 - 461 - Professional Services - - - - - Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 3,185 7,694 15,000 4,168 35,000 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures 3,185$ 7,908$ 15,000$ 5,759$ 36,000$ Expenditures 111 BUILDING AND GROUNDS – (CONT.) FY2021 PROJECTS OFFICE EXPENSES PROGRAM DESCRIPTION: The Engineering and Facilities Projects Division is responsible for managing the Borough's capital construction projects from concept through construction completion. This includes providing management for all the school bonded projects and any tsunami siren upgrades. The division works with end- users, design teams, consultants, funding agencies, and construction contractors to deliver projects in compliance with program budget, schedule, code, and legal requirements. The Projects Division provides staff support, coordination, and administration of the Architectural Review Board. The department also encourages community involvement to ensure projects meet the needs of the community by offering public held Architectural Review Committee meetings and community meetings if applicable. The project office also works on other non-capital projects funded by the Engineering and Facilities budget. Expenses for the Building and Grounds Fund Project Office are paid by ongoing projects where appropriate. GOALS AND OBJECTIVES: Provide management for school bonded and other capital projects. • Work with design consultants, contractors, and user groups to complete construction projects. Provide management to complete non-capital projects. • Continue to take on and complete other non-capital projects as required by the needs of the Borough. ANALYSIS: Expenses for the Projects Office are distributed proportionally through active projects. Projects completed in FY2020 include Anton Larsen Dock Concrete Pad Extension, Baler Building Septic System Replacement, Bayside Fire Department Diesel Extraction System, Bayside FD Paving Extension, Borough Building Exterior Painting, KMS Boiler Room Remodel, Lake Orbin / Middle Bay Drive Anadromous Culvert Replacement. In FY2021 the projects office will be working to administrate ongoing projects, assist with design and planning for multiple capital projects at Borough facilities including the Landfill, Leachate Treatment Plant, Hospital, Long Term Care Center, Chiniak Library and Chiniak School. The Non-capital projects completed by the Projects Office include Borough-wide Safety Data Sheet inventory surveillance and updates. SIGNIFICANT BUDGET CHANGES: FY2021 Budget reductions will drive capital projects specific to Enterprise Funds and allocated bond funds as funds are available. Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services Employee Benefits Professional Services Legal Services Contributions Service District Maint. Support Goods & Services Capital Outlay Operating Transfers Total Expenditures -$ -$ -$ -$ -$ All expenses are allocated to capital projects or the Engineering/Facilities Department. Expenditures 112 This page has been left intentionally blank. 113 LEPC – LOCAL EMERGENCY PLANNING COMMITTEE FY2021 PROGRAM DESCRIPTION: The Local Emergency Planning Committee (LEPC) of the Kodiak Island Borough has been established pursuant to federal and state laws. LEPC is required by federal law to perform the following duties: • Establish procedures for receiving and processing requests from the public for information about hazardous materials in the region. • Prepare and periodically review the local emergency operations plan. • Evaluate the need for resources necessary to develop, implement, and exercise the emergency operations plan and submit recommendations to local governments. • Serve as an advisory committee to local government with respect to emergency planning, training, and response. GOALS AND OBJECTIVES: Facilitate region-wide preparedness training for government officials and emergency responders. • Develop and implement comprehensive training programs. Facilitate region-wide emergency preparedness outreach efforts to better prepare residents in the event of a local disaster. • Facilitate Emergency Preparedness information booths at the Kodiak Crabfest and Bayside, Womens Bay, and City of Kodiak Fire Department open house events. • Provide Kodiak Area Emergency Preparedness Guides in English, Tagalog, and Spanish to various businesses, government offices, and the USCG base for dispersion to Kodiak residents and visitors. Locally implement the requirements of SARA Title 3 (Federal Community Right-To-Know Program). • Maintain Kodiak's library of Tier II hazardous and toxic chemical storage facility reports. • Publish hazardous and toxic chemical storage facility Community Right-To-Know in local news publications annually, as required by Federal law. ANALYSIS: Very little was done with the LEPC in FY2020 due to staffing changes and the inability to achieve a quorum at meetings. Additionally, the state cut all LEPC funding to municipalities for FY2020. For FY2021, the LEPC will be reviewing its members, reviewing its essential duties, and restructuring as needed to accommodate decreased funding. In FY2021 staff will continue to provide consistent review of submitted spill response plans for the Kodiak Island Borough. SIGNIFICANT BUDGET CHANGES: Due to no grant funding from the State of Alaska for LEPC, the proposed FY2021 budget has been reduced by $2,928. 114 LEPC – LOCAL EMERGENCY PLANNING COMMITTEE (CONT.) FY2021 Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Property Tax -$ -$ -$ -$ -$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - - - - State Grants 15,500 16,144 - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings - - - - - Miscellaneous - - - - - Other Funding Sources - - - - - Operating Transfers - - 13,000 13,000 10,072 Total Revenues 15,500$ 16,144$ 13,000$ 13,000$ 10,072$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 6,374$ 4,662$ -$ -$ -$ Employee Benefits 4,474 3,689 - - - Professional Services - - - - - Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 4,652 7,794 13,000 - 10,072 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures 15,500$ 16,144$ 13,000$ -$ 10,072$ Revenues Expenditures 115 WOMEN’S BAY ROAD SERVICE DISTRICT FY2021 PROGRAM DESCRIPTION: The Women's Bay Road Service Area provides maintenance to roads within the service area, including snow removal, ice control, culvert, drainage ditch repair and maintenance, as well as asphalt pavement repair. GOALS AND OBJECTIVES: • Provide safe, well drained and maintained road surfaces for the community. • Continue improving and maintaining drainage. • Continue maintaining paved road surfaces. • Identify and replace failed culverts as needed. • Provide timely management of snow and ice removal. • Maintain a project list. ANALYSIS: In FY2020 the Service Board responded to several heavy rain events, effecting repairs to the shoulder at the entrance of Sargent Creek Road from the Chiniak Highway, a reoccurring problem with flooding from Sargent Creek overflowing the banks and running along the highway and dumping into South Russian Creek where it flows over the asphalt and cuts the shoulder on the creek side of the road. This is a big problem and could cut off the only access to the Bells Flats Subdivision side of Womens Bay stranding residents and isolating the Fire Department. Numerous trees were damaged and felled by windstorms in the fall and caused temporary blockages of several roads. As of early March 2020, we are in the third month of a significant amount of snow and ice response, the total costs are increasing weekly. Ditch clearing and brushing were done in the fall. Crack sealing was done which is a large expense, and the 33+ year old asphalt is degrading overall. The board is pursuing a cooperative effort with Road Service Area #1 to create a project for chip sealing of asphalt roads in FY2021 The improved fish culvert was installed on Middle Bay Drive in July that carries the creek from the old beaver pond area into Lake Orbin. SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2021. 116 WOMEN’S BAY ROAD SERVICE DISTRICT (CONT.) FY2021 Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Property Taxes 196,223$ 210,504$ 205,000$ 210,609$ 210,000$ Penalties & Interest Tax 0 1 - 0 - State Shared Revenue - - - - - Licences & Permits 27,600 27,600 27,600 27,600 27,600 Interest Earnings 551 7,806 - 5,549 - Other Financing Sources - - - - - Operating Transfers In - - - - - Total Revenues 224,374$ 245,911$ 232,600$ 243,758$ 237,600$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 274$ -$ 1,000$ 20$ 500$ Fringe Benefits 177 - 850 12 250 Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Service District Maintenance Snow Removal/Sanding 31,919 40,938 60,000 69,985 65,000 Maintenance & Repairs 89,917 115,979 90,000 139,600 95,000 Grading / Ditching 72,102 46,345 45,000 33,851 45,000 Support Goods & Services 274 595 35,750 694 31,850 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers 25,000 20,000 20,000 - - Total Expenditures 219,663$ 223,857$ 252,600$ 244,163$ 237,600$ Revenues Expenditures 117 SERVICE DISTRICT NO. 1 FY2021 PROGRAM DESCRIPTION: Service Area No. 1 provides maintenance to approximately 12 miles of roads within the district. Services provided include snow removal, ice control, culvert and drainage, ditch maintenance and repair, brush clearing of right away, dust control on gravel roads, painting and whiting fog lines and yellow center lines on paved roads, as well as asphalt pavement repair and replacement. The State of Alaska Department of Transportation owns and maintains approximately 6 miles of roads in Service District No. 1. Most of these roads are paved. Property owners with access directly onto these State Roads do not pay the road Service District No. 1 mill rate tax. The approximate replacement value of the asphalt on Service District No. 1 maintained roads is $5,000,000. The board will work on a plan to deal with the replacement of this asphalt. GOALS AND OBJECTIVES: Provide safe, well drained, and maintained surfaces for the residents in the Service District. • Provide timely removal of snow and sanding with D-1 on gravel roads. • Provide timely removal of snow and sanding with chip and sometimes salt on paved roads. • Provide new D-1 surfacing on gravel roads as needed to improve surface drainage. • Provide calcium chloride on gravel roads for dust control in the summer. • Paint yellow center lines and white fog lines on the side of paved roads for safety. • Continue improving drainage along roads that have no ditches and maintain drainage on roads built to Borough Standards. • Continue brush and tree removal on roads. • Identify and replace deteriorated or failed culverts as needed. • Maintain a project list. ANALYSIS: No updated analysis was provided by the service area board for FY2021. SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2021. 118 SERVICE DISTRICT NO. 1 (CONT.) FY2021 Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Property Taxes 400,030$ 422,703$ 420,500$ 428,892$ 428,500$ Penalties & Interest Tax 0 0 - 0 - State Shared Revenue - - - - - Licences & Permits - - - - - Interest Earnings 3,362 39,136 - 29,778 - Other Financing Sources 7,500 400 157,000 229 - Operating Transfers In - - - - - Total Revenues 410,893$ 462,240$ 577,500$ 458,900$ 428,500$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 5,865$ 5,702$ 8,800$ 5,443$ 8,800$ Fringe Benefits 1,291 1,105 2,350 1,676 2,350 Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Service District Maintenance Snow Removal/Sanding 80,237 62,090 200,000 152,112 200,000 Maintenance & Repairs 216,608 194,460 135,750 277,906 143,750 Grading / Ditching 47,140 49,282 60,000 40,434 60,000 Support Goods & Services 13,428 11,418 170,600 8,943 13,600 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - - - - Total Expenditures 364,570$ 324,056$ 577,500$ 486,513$ 428,500$ Revenues Expenditures 119 SERVICE DISTRICT NO. 2 FY2021 PROGRAM DESCRIPTION: Service Area No. 2 is responsible for water and sewer services in the service area. GOALS AND OBJECTIVES: None at this time. ANALYSIS: This service district is currently inactive. The fund balance will be used to defray any administrative costs incurred by this fund. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2021. Special Note: If you are a service area resident and want to participate on this board, please contact the Clerk’s Office for an application. Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Property Taxes -$ -$ -$ -$ -$ Penalties & Interest Tax - - - - - State Shared Revenue - - - - - Licences & Permits - - - - - Interest Earnings 30 246 - 176 - Other - - - - - Operating Transfers In - - - - - Total Revenues 30$ 246$ -$ 176$ -$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Service District Maintenance Snow Removal/Sanding - - - - - Maintenance & Repairs - - - - - Grading / Ditching - - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - - - - Total Expenditures -$ -$ -$ -$ -$ Expenditures Revenues 120 This page has been left intentionally blank. 121 MONASHKA BAY ROAD SERVICE AREA FY2021 PROGRAM DESCRIPTION: Monashka Bay Road Service Area (MBRSA) is responsible for road maintenance and snow removal in the service area; it also has some administrative responsibility for a Greenbelt separating Monashka Bay Road Service Area residents from the adjacent KIB Landfill, and a commercial storage and dump property (Lot 1) zoned "Light Industrial" as of 2016. GOALS AND OBJECTIVES: Provide well-maintained roads for the safety of the residents. • As practicable and within budget, maintain/repair roads, ditches, culverts, and signs within the service area. • Conduct annual road inspection/walk/tour to identify concerns and create "Priority List." • Improve roads to meet all current Kodiak Island Borough code design requirements. ANALYSIS: With the past few mild winters, MBRSA snow plowing costs have been much reduced, saving significant amounts of money and restoring a positive “Unreserved Fund Balance”. Supervisors have remained conservative in road maintenance routines, which has saved additional funds. The Monashka Bay Service Area is also safeguarding "Lot 2" of the Greenbelt from further encroachment from the adjacent KIB Landfill. The service district encourages dialog between KIB Assembly, KIB staff, and all other Service Area Boards to explore cost and timesaving strategies relative to MBRSA responsibilities. The Service District continues to review and revise the current road service contract and return it to the Kodiak Island Borough for bids each year. This ensures the best use of the service area's budget. The Service District will pursue additional funding when necessary to address safety and road-structure concerns that do not meet KIB Code design requirements. SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2021. 122 MONASHKA BAY ROAD SERVICE AREA (CONT.) FY2021 Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Property Taxes 61,813$ 51,672$ 49,805$ 51,388$ 48,805$ Penalties & Interest Tax 0 0 - - - State Shared Revenue - - - - - Licences & Permits - - - - - Interest Earnings 807 8,946 - 6,513 - Other - - - - - Operating Transfers In - - - - - Total Revenues 62,620$ 60,619$ 49,805$ 57,901$ 48,805$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 60$ -$ 600$ -$ 600$ Fringe Benefits 18 - 205 - 205 Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Service District Maintenance Snow Removal/Sanding 10,254 4,908 11,000 20,540 11,000 Maintenance & Repairs 2,563 21,893 12,500 23,922 12,500 Grading / Ditching 10,285 3,305 23,000 1,846 23,000 Support Goods & Services 78 64 2,500 118 1,500 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - - - - Total Expenditures 23,258$ 30,169$ 49,805$ 46,425$ 48,805$ Revenues Expenditures 123 BAY VIEW ROAD SERVICE DISTRICT FY2021 PROGRAM DESCRIPTION: Bay View Road Service Area is responsible for the road maintenance in the service area. GOALS AND OBJECTIVES: Provide safe and adequate roads for the residents. • Maintain, repair, and provide snow removal for the roads in the Bay View Road Service Area. ANALYSIS: The Service District is working to build fund balance to finish the cul-de-sac. The ongoing problem is the road was left unfinished over 30 years ago when first created. The road has a nearly twelve-foot drop with no guard rail, this creates a major liability on this short one-mile road. The service area will continue to seek funding in FY2021 on this matter. The Bayview service district is very fortunate to have very supportive residents. During FY2018 windstorms blew down many trees, and residents cut and removed the fallen trees, eliminating the expense of paying an outside company to remove the trees. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes in FY2021 Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Property Taxes 13,879$ 14,738$ 13,879$ 14,569$ 13,879$ Penalties & Interest Tax - - - - - State Shared Revenue - - - - - Licences & Permits - - - - - Interest Earnings 147 1,704 100 1,461 100 Other Financing Sources - - - - - Operating Transfers In - - - - - Total Revenues 14,025$ 16,442$ 13,979$ 16,030$ 13,979$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 48$ -$ 500$ -$ 500$ Fringe Benefits 14 - 174 - 174 Professional Services - - 5,305 550 5,305 Contributions - - - - Legal Services - - - - Service District Maintenance Snow Removal/Sanding 1,901 2,343 5,400 7,873 5,400 Maintenance & Repairs 721 3,012 1,500 - 1,500 Grading / Ditching 1,891 1,789 1,100 142 1,100 Support Goods & Services - 23 - 87 - Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - - - - Total Expenditures 4,575$ 7,167$ 13,979$ 8,653$ 13,979$ Revenues Expenditures 124 This page intentionally left blank. 125 FIRE PROTECTION AREA NO. 1 (BAYSIDE FIRE DEPARTMENT) FY2021 PROGRAM DESCRIPTION: Bayside Fire Station is responsible for providing fire suppression, fire and injury prevention, and first responder emergency medical services. The Fire Department also offers a car seat installation program, smoke detector supply, instruction, and installation to residents at no cost. Bayside Fire Station is also responsible for providing associated services to the residents and visitors of Fire Protection Area No. 1. GOALS AND OBJECTIVES: ANALYSIS*: The Fire Protection Area No. 1 purchased a new Spartan 1,250 gpm pumper and a Spartan 3,000- gallon tender with a 1,250 gpm pump. These are expected to be delivered at the end of FY2018. The purchase of this apparatus will help us to respond to Fire and EMS calls within the 5-minute time frame. These new pieces of apparatus will help the department reach the goal of reducing the ISO Rating from a 4 to a 3. In FY2018 the department purchased a total of 8,000 feet of new 1 ¾”, 2 ½’’, and 4” fire hose. The hose will be used for the new engine and tender. This will also give the fire department spare hose on the rack to be used to replace wet that has been used for training after a fire. Also, in FY2018 the department purchased 15 sets of new “Bunker Gear” that will replace old and non-conforming turn-out gear. The 15 sets of bunker gear are in service and will protect our firefighters from exposure to high heat and other facets of firefighting. The Department has continued upgrades and improvements to the fire training site. The old school bus has been removed from the Burn Training Center. The fire station bays and storage areas are being cleaned. The Memorial Garden has again been cleaned and replanted. The Burn Training Center burn buildings and surrounding area has been cleaned of trash and old debris. The burn building is being used on a regular basis and was repainted in FY2018. In FY2019 the Bayside Fire Station is focusing on continuing a stable 1.5 mill rate through an itemized budget and reviewing spending monthly for the property owners of Fire Protection Area No. 1. *No updated analysis was provided by the service area board for FY2021. SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2021. Goals Department Objectives Indicators FY2018 Outcome FY2019 Outcome FY2020 Outcome FY2021 Goal Respond within 5 minutes or less to an alarm on 90% of all calls Reports from Aurora and I Am Responding programs 95% *uknown at time of publication *uknown at time of publication 95% Successfully respond to emergencies Number of incident reports 167 *uknown at time of publication *uknown at time of publication 170 Maintain a Class 4 or lower to a Class 3 Insurance rating which in return reduces the cost of of fire insurance and shows the efficiency of the Fire Protection Area No. 1. Insurance Services Organization Rating 4/4 Rating *uknown at time of publication *uknown at time of publication 3/3 Rating Recruit new volunteers to increase the number of trained volunteers up to 40 volunteers Number of trained volunteers 32 *uknown at time of publication *uknown at time of publication 40 Provide public education on fire suppression and medical emergencies. Number of trainings offered to the public 25 *uknown at time of publication *uknown at time of publication 30 Continue upgrades and improvements to the fire training site and campus Upgrades and improvements completed 59 *uknown at time of publication *uknown at time of publication 20 Increase personnel's expertise in fire prevention, injury prevention, fire suppression and emergency medical services Number of trainings offered to personnel 61 Drills *uknown at time of publication *uknown at time of publication 75 Drills Provide training and safety to the volunteer responders and community. Minimize the impact on life and property from the effects of fire and medical emergencies to the community. Goals, Objectives, and Performance Indicators: 126 FIRE PROTECTION AREA NO. 1 (BAYSIDE FIRE DEPARTMENT, CONT.) FY2021 Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Property Taxes 597,761$ 630,300$ 630,308$ 634,882$ 635,280$ Penalties & Interest Tax 0 0 - 0 - State Grants - 5,063 - - - Federal Grants 159,846 2,331 - 32,581 50,000 State Shared Revenue 3,522 6,618 2,800 7,943 2,800 Licenses & Permits - - - - - Interest Earnings 844 17,842 - 14,251 - Other 1,030 11,514 1,500 2,117 2,000 Use of Fund Balance - - 235,000 - 49,553 Operating Transfers In - - - - - Total Revenues 763,004$ 673,669$ 869,608$ 691,774$ 739,633$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 146,139$ 162,488$ 174,120$ 157,893$ 195,533$ Fringe Benefits 84,469 82,532 84,500 87,603 98,500 Professional Services 10,502 9,215 2,000 4,720 - Contributions - - - - - Legal Services - - - - - Service District Maintenance Snow Removal/Sanding - - - - - Maintenance & Repairs - - - - - Grading / Ditching - - - - - Support Goods & Services 324,382 245,593 187,462 182,598 235,600 Capital Outlay 1,123,973 11,941 184,088 43,788 210,000 Allocated to other funds - - - - - Operating Transfers - 125,000 355,000 355,000 - Total Expenditures 1,689,465$ 636,769$ 987,170$ 831,603$ 739,633$ Expenditures Revenues 127 WOMEN’S BAY FIRE DEPARTMENT FY2021 PROGRAM DESCRIPTION: The Women’s Bay Fire Department is responsible for providing fire suppression services to the residents of the Women’s Bay Fire Protection District. The department provides first response to emergency medical service (EMS) calls within the service area. The department also provides structural fire suppression by contract to the Airport Fire Protection Area. GOALS AND OBJECTIVES: ANALYSIS*: During the current fiscal year the department has collaborated with the Bayside Volunteer Fire Department to procure new compliant Globe Structural Turnouts and Scott Air Packs and bottles. The department has recruited and continues to train three new volunteers. The Women’s Bay Fire Department also participated in the National Fire Academy Officer Development Classes to strengthen the advancement of long-term volunteers. The Department conducted a Community Open House and Fun Day for the recently completed facility expansion in cooperation with the Women's Bay Community Council. Additionally, the department collaborated with the Community Council to conduct the "Santa Drive Around," Community Tree Lighting Gathering, and the "Trunk or Treat" Halloween Event. In FY2019, the planning will continue to enter into agreements with the Red Cross and Community Council for the development and implementation of an evacuation shelter within the local service area. This will include researching funding opportunities to procure required equipment and supplies to support shelter operations. *No updated analysis was provided by the service area board for FY2021. SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2021. Goals Department Objectives Indicators FY2018 Outcome FY2019 Outcome FY2020 Outcome FY2021 Goal Respond within 10 minutes of an alarm for 90% of all calls for assistance within the service area Incident Reports 33 Calls *Unknown at publication *Unknown at publication 30 calls Maintain local area mutual aid agreements On File - KIB 3 On File *Unknown at publication *Unknown at publication 3 on File Maintain AK Division of Forestry Annual Operating Agreement On File - KIB On File *Unknown at publication *Unknown at publication In Process Continue community outreach to stimulate recruitment Personnel Records Yes *Unknown at publication *Unknown at publication In Planning Train volunteers in fire suppression and prevention methods and techniques. Training Records Yes *Unknown at publication *Unknown at publication Published Training Schedule Train volunteers in EMS to maintain certification and ensure CEU's are available Training Records 4 Personnel *Unknown at publication *Unknown at publication 5 Personnel Encourage and increase interagency training opportunities Training Records Yes *Unknown at publication *Unknown at publication In Progress Monitor NFPA standards for compliance updates Review Monthly NFPA Publications Yes *Unknown at publication *Unknown at publication Yes Monitor and maintain fire and EMS response vehicles Weekly and monthly check sheets 4 Apparatus *Unknown at publication *Unknown at publication 4 Apparatus Monitor and maintain fire and EMS equipment and supplies Weekly and monthly check sheets 4 Apparatus *Unknown at publication *Unknown at publication 4 Apparatus Work with KIB staff to ensure contracts are in place to provide facility maintenance, repairs and utility services KIB records and contracts Yes *Unknown at publication *Unknown at publication Yes Perform monthly facility inspections Inspection forms No *Unknown at publication *Unknown at publication Develop Program Ensure periodic and annual maintenance of systems Records on file Yes *Unknown at publication *Unknown at publication Develop Program Maintain physical building and property for safety and efficiency Procure and maintain compliant fire and EMS equipment for efficient response for the community Minimize the impacts on life and property caused by fire for the residents of Kodiak Maintain adequate volunteer/responder membership to adequately responsed in the case of an emergency Provide First Responder Emergency Medical Response for the Community Goals, Objectives, and Performance Indicators: 128 WOMEN’S BAY FIRE DEPARTMENT (CONT.) FY2021 Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Property Taxes 101,828$ 109,331$ 103,000$ 109,376$ 108,500$ Penalties & Interest Tax - 1 - - - State Shared Revenue - - - - - Federal Grants - - - 1,399 - Charges for Services 15,366 16,701 16,700 8,734 16,700 Licenses & Permits - - - - - Interest Earnings 2,913 26,659 1,000 19,812 2,000 Other 14,500 12,200 10,000 14,450 12,000 Use of Fund Balance - - 75,000 - 175,000 Operating Transfers In - - - - - Total Revenues 134,606$ 164,892$ 205,700$ 153,771$ 314,200$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 1,674$ 984$ 2,000$ 514$ 2,000$ Fringe Benefits 801 547 1,068 420 1,025 Professional Services 5,746 10,818 5,000 761 5,000 Contributions - - - - - Legal Services - - 2,000 - 1,000 Support Goods & Services 79,920 53,983 120,632 73,742 130,175 Capital Outlay 79,050 - 75,000 27,854 175,000 Allocated to other funds - - - - Operating Transfers - 25,000 - - Total Expenditures 167,191$ 91,333$ 205,700$ 103,291$ 314,200$ Revenues Expenditures 129 KIB AIRPORT FIRE DISTRICT FY2021 PROGRAM DESCRIPTION: This program is responsible for providing fire suppression and prevention services to the citizens of the Kodiak Island Borough Airport Fire Protection Area. GOALS AND OBJECTIVES: Minimize the impact on life and property attributable to fire through the development and implementation of fire prevention and suppression programs. • Continue contracting with Women’s Bay Fire Department to provide fire suppression and prevention service to the district. • Complete installation of new fire hydrant. ANALYSIS: This service area does not currently have an active board. All services are contracted with the Women’s Bay Fire Department. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2021. Special Note: If you are a service area resident and want to participate on this board, please contact the Clerk’s Office for an application. Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Property Tax 16,701$ 18,112$ 17,200$ 18,544$ 18,429$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - - - - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 192 1,552 - 1,349 - Miscellaneous - - - - - Other Funding Sources - - - - - Operating Transfers - - - - - Total Revenues 16,892$ 19,664$ 17,200$ 19,893$ 18,429$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services -$ -$ -$ -$ -$ Employee Benefits - - - - - Professional Services 15,366 16,701 17,200 8,734 14,200 Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services - 20 - 89 4,229 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures 15,366$ 16,720$ 17,200$ 8,823$ 18,429$ Revenues Expenditures 130 WOODLAND ACRES STREET LIGHT SERVICE AREA FY2021 PROGRAM DESCRIPTION: The Woodland Acres Street Light Service Area provides construction, operation, and maintenance of street lights on public streets within its boundaries. GOALS AND OBJECTIVES: Provide street lighting to ensure a safer environment for all residents and visitors of Woodland Acres. • Maintain and adequately fund the current streetlights. ANALYSIS: This service area is currently inactive. The mill rate and fund balance will be used to defray any administrative costs incurred by this fund. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2021. Special Note: If you are a service area resident and want to participate on this board, please contact the Clerk’s Office for an application. Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Property Tax 5,241$ 5,576$ 5,356$ 5,579$ 5,540$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - - - - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 160 1,406 - 724 - Miscellaneous - - - - - Other Funding Sources - - 15,000 - - Operating Transfers - - - - - Total Revenues 5,401$ 6,982$ 20,356$ 6,303$ 5,540$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services -$ -$ -$ -$ -$ Employee Benefits - - - - - Professional Services - - - - - Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 4,672 4,544 5,356 4,871 5,540 Capital Outlay - - 15,000 14,629 - Operating Transfers - - - - - Total Expenditures 4,672$ 4,544$ 20,356$ 19,501$ 5,540$ Expenditures Revenues 131 TRINITY ISLANDS STREET LIGHT SERVICE AREA FY2021 PROGRAM DESCRIPTION: The Trinity Islands Street Light Service Area provides construction, operation, and maintenance of streetlights on public streets within its boundaries. GOALS AND OBJECTIVES: Provide street lighting to ensure a safer environment for all residents and visitors of Trinity Islands. • Maintain and adequately fund the current streetlights. ANALYSIS: This service area is currently inactive. The mill rate and fund balance will be used to defray any administrative costs incurred by this fund. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2021. Special Note: If you are a service area resident and want to participate on this board, please contact the Clerk’s Office for an application. Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Property Tax 2,498$ 1,942$ 2,000$ 1,873$ 1,897$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - - - - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 147 1,224 - 879 - Miscellaneous - - - - - Other Funding Sources - - - - - Operating Transfers - - - - - Total Revenues 2,645$ 3,166$ 2,000$ 2,752$ 1,897$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services -$ -$ -$ -$ -$ Employee Benefits - - - - - Professional Services - - - - - Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 1,796 1,730 2,000 1,744 1,897 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures 1,796$ 1,730$ 2,000$ 1,744$ 1,897$ Revenues Expenditures 132 MISSION LAKE TIDE GATE FY2021 PROGRAM DESCRIPTION: This service area provides tide-gate maintenance to benefit the area residents as well as the surrounding community. The original tide-gate was established after the 1964 tsunami and remains in place with outfall onto Mission Beach GOALS AND OBJECTIVES: Provide maintenance of the tide gate for the safety of the residents of Mission Lake and adjacent Mission Beach. • Remove debris and maintain the tide gate. ANALYSIS: Without a tide-gate and without proper maintenance and oversight, Mission Lake water level could rise and adversely affect lakefront properties. This location was vulnerable to filling with sand and plugging up, due to exposure to more severe surf conditions. The new tide-gate is more protected and less likely to back up due to kelp or sand blocking the outlet. In the last ten years, there has only been one incident of severe blockage that required heavy equipment to alleviate. SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2021. Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Property Tax 6,192$ 1,571$ 1,571$ 1,571$ 1,572$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - - - - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 298 2,468 250 1,732 557 Miscellaneous - - - - - Other Funding Sources - - - - - Operating Transfers - - - - - Total Revenues 6,490$ 4,040$ 1,821$ 3,303$ 2,129$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 383$ 198$ 160$ 276$ 200$ Employee Benefits 251 146 106 198 145 Professional Services - 1,448 1,447 - - Legal Services - 2,535 - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 8 3 108 76 1,784 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures 641$ 4,330$ 1,821$ 550$ 2,129$ Revenues Expenditures 133 FACILITIES FUND FY2021 PROGRAM DESCRIPTION: This fund was established with the proceeds from the sale of Shuyak Island. The Borough entered into an agreement with the Exxon Valdez Oil Spill Trustee Council to sell all its rights on Shuyak Island for $42 million to the State of Alaska. The Borough received $8 million in FY1996, $2,194,266 in FY1997, $4,000,000 in FY1998 through FY2002, and the balance of $11,805,734 in FY2003. $6 million was utilized in construction of the Kodiak Fisheries Research Center, and the remaining $36 million established the Facilities Fund. The purpose of this fund is to maintain the proceeds of the sale and use excess earnings to help support Borough operations. Ordinance No. FY1996-13 states the conditions under which the Borough can use these funds and that excess income of the fund is defined as 85% of the annual investment income of the fund. The excess income of the fund may be appropriated only for the following purposes: for maintenance and repair of Borough buildings, insurance on Borough buildings, and upgrade and reconstruction of existing buildings. Additionally, up to 50% of the excess may be used for debt service on general obligation bonds issued for facilities construction Since inception, the Facilities fund has earned $22,964,215 in net investment income and has transferred $16,837,018 to capital projects, debt service, and building and grounds (for property insurance). GOALS AND OBJECTIVES: 1. Preserve the principal of the fund. 2. Uphold the conditions established by the fund and Ordinance No. FY1996-13. 3. Achieve a fair rate of return on allowable investments ANALYSIS: Current investment policies mandate following GFOA’s investment recommendations which focus on the preservation of principal and the use of risk adverse investments. This short-term investment strategy is used in order to promote quick access to liquid assets which may be needed for day-to-day operational use. This policy may not be appropriate for the long-term nature of these funds. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2021. 134 FACILITIES FUND (CONT.) FY2021 Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Property Tax -$ -$ -$ -$ -$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - - - - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 203,429 1,625,078 750,000 1,130,902 750,000 Miscellaneous - - - - - Other Funding Sources - - 85,191 - 82,316 Operating Transfers 110,017 - - - Total Revenues 203,429$ 1,735,095$ 835,191$ 1,130,902$ 832,316$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services -$ -$ -$ -$ -$ Employee Benefits - - - - - Professional Services - - - - - Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Operating Transfers - - - - - Education Support Fund - - - - - Buildings & Grounds 10,000 5,000 5,000 5,000 5,000 Debt Service 65,105 338,982 830,105 830,105 827,316 Renewal & Replacement 55,105 444,000 86 86 - Total Expenditures 130,210$ 787,982$ 835,191$ 835,191$ 832,316$ Revenues Expenditures 135 TOURISM DEVELOPMENT FY2021 PROGRAM DESCRIPTION: The fund collects the transient accommodations (bed) tax revenue and cruise ship revenue sharing to promote increased development of the tourism industry and various tourism related programs within the Kodiak Island Borough. GOALS AND OBJECTIVES: Recognize tourism as a diversification of the island’s economy and promote its growth. • Promote and fund tourism development activities including but not limited to museums, fishing, bear viewing, hiking, and lodging. ANALYSIS: The current tax rate for the transient accommodation tax is 5% with a 2% administrative discount if the quarterly returns is filed timely. There are no current plans to change this rate. SIGNIFICANT BUDGET CHANGES: FY2021 revenue expectations are low due to the COVID-19 pandemic on tourism. 136 TOURISM DEVELOPMENT (CONT.) FY2021 Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Property Tax -$ -$ -$ -$ -$ Penalties/Interest on Tax - 400 - - - Non Ad Valorem Tax - - - - - Transient Accomodations Tax 113,485 78,571 105,000 62,829 20,000 Licenses & Permits - - - - - State Shared Revenue 37,625 - - - - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 976 6,583 600 3,019 - Miscellaneous - - - - - Other Funding Sources - - 26,400 - 55,000 Operating Transfers - - - - - Total Revenues 152,086$ 85,553$ 132,000$ 65,847$ 75,000$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services -$ -$ -$ -$ -$ Employee Benefits - - - - - Professional Services - - - - Legal Services - - - - - Contributions 96,501 88,890 87,000 87,000 75,000 Service District Maint.- - - - - Support Goods & Services 69 239 - 220 - Capital Outlay - - - - - Operating Transfers 45,000 45,000 45,000 45,000 - Total Expenditures 141,569$ 134,129$ 132,000$ 132,220$ 75,000$ Revenues Expenditures 137 COMMERCIAL PASSENGER VESSEL FY2021 PROGRAM DESCRIPTION: Effective in 2006, a tax was imposed on passengers traveling on commercial passenger vessels providing overnight accommodations that anchor or moor on the state’s marine waters with the intent to allow passengers to embark or disembark. GOALS AND OBJECTIVES: • Recognize tourism as a diversification of the island’s economy and support the influx of commercial passenger vessels. ANALYSIS: This fund was established in FY2019 to improve transparency and clarity of usage of these monies. Previously, these revenues were collected in the Tourism and Development fund. SIGNIFICANT BUDGET CHANGES: Due to the COVID-19 pandemic causing the disruption in cruise ships and other tourism related travel, no revenue is expected from the State in FY2021. Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Property Tax -$ -$ -$ -$ -$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Transient Accomodations Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - 42,273 40,000 54,220 - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings - 535 - 1,643 - Miscellaneous - - - - - Other Funding Sources - - - - - Operating Transfers - - - - - Total Revenues -$ 42,807$ 40,000$ 55,863$ -$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services -$ -$ -$ -$ -$ Employee Benefits - - - - - Professional Services - - - - Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services - 40,000 110 - Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures -$ -$ 40,000$ 110$ -$ Revenues Expenditures 138 DEBT SERVICE FUND The Debt Service Fund accounts for the payment of interest and principal on long-term debt resulting from the sale of general obligation bonds. This fund does not include the accounting for special assessments and service debts of governmental enterprises. Debt Policies The Kodiak Island Borough has a written debt policy in the Kodiak Island Borough Code, Title 3 – Revenue and Finance, Chapter 3.05.030. The policy is used to analyze the existing debt position of the Borough and assess the impact of future financing requirements on the Borough’s ability to service debt. Review and analysis of the Borough’s debt provides a capital financing plan for infrastructure and other improvements. Both available resources and Borough needs drive the Borough’s debt issuance program. Long- term projected financing is linked with economic, demographic, and financial resources expected to be available to repay the debt. The use of debt ratios is only one tool of many in determining a course of action and is not used exclusively in making decisions. Decisions regarding the use of debt is based upon a number of factors including, but not limited to, the long-term needs of the Borough and the amount of resources available to repay the debt. The Kodiak Island Borough has a five-year Capital Improvement Program. Each year the Assembly updates the program to maintain the list of needed capital improvement priorities. Capital funds spent on projects will result in long-term economic growth beyond the initial capital expenditure and will in turn contribute significantly to the economy and revenue for many years. Legal Debt Margin There is no limitation on the amount of taxes the Borough can levy to pay for bonds. State Code reads: “Sec. 29.45.100. No limitations on taxes to pay bonds. The limitations provided for in AS29.45.080 - 29.45.090 do not apply to taxes levied or pledged to pay or secure the payment of the principal and interest on bonds. Taxes to pay or secure the payment of principal and interest on bonds may be levied without limitation as to rate or amount, regardless of whether the bonds are in default or in danger of default.” The voters of the Kodiak Island Borough ultimately determine the amount of debt that can be outstanding. The citizens of the Borough pass a ballot question giving the Borough the authority to issue bonds to fund projects. Reserve Policy The Borough updated its reserve policies in FY2020, adding new provisions for fund balance in the debt service fund. “Debt Service Fund. The borough will maintain a cash flow reserve to provide for unexpected revenue shortfalls. The cash flow reserve within the debt service fund is equal to $275,000.” 139 DEBT SERVICE FY2021 PROGRAM DESCRIPTION: This fund was established to finance and account for the payment of interest and principal on general obligation debts. This fund does not include enterprise fund revenue bonds which are reported in their respected fund. GOALS AND OBJECTIVES: Promote fiscal policies that ensure stability, growth, and responsible government. • Meet all debt requirements when due, thus avoiding any payments for penalties of interest • Remain in compliance for all debt covenant requirements ANALYSIS: Due to the State of Alaska’s reduction to debt reimbursement since FY2017, transfers were made from the General and Facilities Funds to cover the shortfall. This trend is expected to continue. The motor vehicle registration tax (MVRT) revenues will continue to be collected in this fund rather than in the Education Support Fund as was done in prior years. SIGNIFICANT BUDGET CHANGES: The FY2021 State of Alaska budget eliminated the funding to the School Construction Debt program. 140 DEBT SERVICE (CONT.) FY2021 Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Real Property Tax 2,433,591$ 2,339,243$ 2,290,108$ 2,262,212$ 2,201,212$ Personal Property Tax 277,523 259,077 254,456 277,303 244,579 Penalties & Interest - - - - - Non-Ad Valorem Taxes - - 230,000 215,538 210,000 State Debt Reimbursement 4,985,040 5,226,069 5,263,053 2,552,052 - Interest Earnings (1,747) 1,213 - - - Proceeds from Bond Issues - - - - - Use of Fund Balance - - - - - Transfers In 65,105 338,982 830,105 2,462,920 5,417,879 Total Revenues 7,759,512$ 8,164,583$ 8,867,722$ 7,770,025$ 8,073,670$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Consultants 16,050$ 3,150$ 3,149$ -$ 6,301$ Support Goods & Services 7 4,577 1,133,179 4,184 - Principal 3,870,000 4,425,000 4,655,000 4,655,000 4,850,000 Interest 3,408,309 3,253,413 3,076,394 3,078,393 2,887,369 Refunded Bond Costs - 10,000 - - 330,000 Transfers Out 492,936 142,177 - - - Total Expenditures 7,787,302$ 7,838,317$ 8,867,722$ 7,737,577$ 8,073,670$ Revenues Expenditures 141 Below is a summary of all the Borough’s bonded debt obligations, the annual year expenditure totals and what these bonds were issued for. Detailed debt service schedules for each bond issue can be found in the Comprehensive Annual Financial Report. Kodiak Island Borough Summary of Annual Bonded Debt Service Requirements * FY2021-2036 Amount Eligible Net Bond Payment Total Bond For State Due After Estimated Fiscal Year Principal Interest Payments Due Reimbursement Reimbursement 2021 4,850,000$ 2,887,372 7,737,372$ 5,287,338$ 2,450,034$ 2022 5,240,000$ 2,772,207 8,012,207$ 5,473,421$ 2,538,786$ 2023 5,490,000$ 2,526,673 8,016,673$ 5,469,254$ 2,547,419$ 2024 5,750,000$ 2,260,707 8,010,707$ 5,471,782$ 2,538,925$ 2025 6,035,000$ 1,971,297 8,006,297$ 5,467,966$ 2,538,331$ 2026 4,855,000$ 1,724,971 6,579,971$ 4,548,841$ 2,031,130$ 2027 4,170,000$ 1,506,536 5,676,536$ 3,922,899$ 1,753,637$ 2028 4,370,000$ 1,299,242 5,669,242$ 3,917,219$ 1,752,023$ 2029 3,950,000$ 1,096,681 5,046,681$ 3,546,414$ 1,500,267$ 2030 4,090,000$ 901,428 4,991,428$ 3,503,625$ 1,487,803$ 2031 4,290,000$ 699,728 4,989,728$ 3,295,497$ 1,694,231$ 2032 3,590,000$ 501,671 4,091,671$ 2,864,170$ 1,227,501$ 2033 3,770,000$ 322,896 4,092,896$ 2,865,028$ 1,227,868$ 2034 2,240,000$ 154,806 2,394,806$ 1,676,365$ 718,441$ 2035 580,000$ 43,322 623,322$ 436,326$ 186,996$ 2036 610,000$ 14,713 624,713$ 437,299$ 187,414$ 63,880,000$ 20,684,250$ 84,564,250$ 58,183,444$ 26,380,806$ * This schedule only shows debt service payments and amounts eligible for reimbursement by the State of Alaska Fiscal Year Bond Payoff Date Principal Interest Project Description 2011 2031 5,185,000$ 1,682,908$ High school renovation and renewal project. 2012A 2025 2,870,000$ 363,825$ 2012B 2025 3,500,000$ 443,775$ 2013 2033 16,110,000$ 5,854,920$ High school renovation and renewal project. 2014 2034 17,705,000$ 7,123,615$ High school renovation and renewal project. 2015A 2036 5,395,000$ 2,474,662$ High school renovation and renewal project. 2015B 2026 1,170,000$ 184,250$ Renewal and replacement for various school buildings. 2016A 2036 1,640,000$ 475,311$ High school renovation and renewal project. 2016B 2026 3,510,000$ 552,000$ Renewal and replacement for various school buildings. 2016C 2028 4,095,000$ 862,975$ AMBBA 2018 2029 500,000$ 69,509$ High school renovation and renewal project. 2020A 3031 345,000$ 94,125$ High school renovation and renewal project. 2020B 3031 1,855,000$ 502,375$ Renewal and replacement for various school buildings. 63,880,000$ 20,684,250$ Total Remaining Payments Planning, design and construction for the Larsen Bay, Kodiak Middle and Kodiak High schools. Planning, design and construction for the new school pool and Kodiak High School Voc/Ed classroom. Acquisition and construction of school improvements including a new school pool. (refunded 2008A) 142 Per Capita Bonded Debt has ranged from a low of $2,483 in 2012 to a high of $7,475 in 2018 during the last ten years. Most of this increase is from the sale of bonds to finance the construction of a new swimming pool, and the renovation and construction on the high school. It should be noted, however, that per capita bonded debt has decreased in the last two fiscal years and is project to keep declining as bonds are paid off. As the Borough pays off bonded debt and does not issue new bonds, combined with increasing assessed values, produces the downward trend of net bonded debt per assessed value. This indicator has gone from a high of 8.10% in FY2016 to 5.75% in FY2020. 143 Debt service expenditures increased in FY2017 due to the refinancing of the 2008A bond. Debt service expenditures per capita also increased in FY2017 due to the refinancing of the 2008A bond. 144 CAPITAL PROJECTS FUND Capital Projects Fund Description A capital project is defined as a project that is not permanently ongoing in nature and is either to construct new facilities or significant, long-term renovations to existing facilities. Capital Projects Funds have been set up to account these projects, are budgeted for total cost of the project instead of annual expenditures or expenses and are related to one specific activity. If the specific activity is the building or renovation of an asset, it is moved from a project to an asset classification when complete. Capital projects funds do not include special revenue, debt service or enterprise funds. Altogether, the Borough has $132,783,759 in ongoing capital projects. This represents $10,213 in ongoing capital projects for every man, woman and child in the Borough. These projects are within eleven (11) different capital project funds. They are: • Fund 415 – Miscellaneous Borough Projects • Fund 426 – Borough Capital Projects - KFRC • Fund 430 – State Funded Capital Projects • Fund 450/455 – Borough Capital Projects • Fund 460 – Kodiak High School Renovation and Replacement Capital Project • Fund 469 – Renewal and Replacement Capital Projects • Fund 470 – Bonded Renewal and Replacement Capital Projects • Fund 490 – Solid Waste Capital Projects • Fund 495/497 – Hospital Capital Projects 145 Borough Capital Project – Fund 415 This fund contains several miscellaneous projects that benefit the Borough as a whole and may not necessarily create a capital asset. Projects in this fund include an upgrade the tax collection and assessment program, removal of junk vehicles, and acquiring aerial imagery of the Borough. The total budget for this fund is $954,239 and the largest project is Project #20008 KIBSD North Star Siding Replacement. Borough Capital Project – Fund 426 This fund contains projects relating to the Kodiak Fisheries Research Center. The last completed project was upgrades the direct digital controls (DDC) of the building. Other planned projects include repairing the seawater storage tank and filter and upgrading and replacing the fire alarm system. The total budget for this fund is $701,000. The largest of the projects is the electric boiler controls upgrade, which are anticipated to be finished in early FY2021. State Capital Grants – Fund 430 The State of Alaska and the Federal Government have awarded the Kodiak Island Borough an impressive array of grants. At this time the Borough has $3,073,000 in State Capital Grants, as well as $475,000 from the U.S. Department of Housing and Urban Development. These grants include $2,000,000 for a new dock in Anton Larsen, and awards of $1,025,000 and $475,000 for an emergency shelter in Womens Bay. Borough Capital Projects – Fund 450/455 This fund contains $2,199,200 of miscellaneous projects within the Borough that are funded by outside entities or service areas. One is a $118,166 grant from the U.S. Fish and Wildlife Service for a culvert replacement at Lake Orbin. The other is a $600,000 grant from the Environmental Protection Agency Brownfield Assessment program for identifying, assessing and initializing clean-up and redevelopment of land. The largest project in this fund is number 16003, to rebuild the Chiniak emergency shelter is currently budgeted at $670,958. There are also several projects to improve the Bayside Fire Station for Fire Protection Area # 1, totaling $225,000. Kodiak High School Renovation and Renewal – Fund 460 On October 9, 2009, the voters approved a $76,310,000 bond issue for the High School Renovation and Addition project. Between various other funding sources, the entire project is budgeted at $80,479,009. Construction is complete and in use by students and school personnel. Renewal and Replacement Capital Projects – Fund 469 This fund is for the renewal and replacement of worn out and obsolete capital assets, often funded by property taxes. Currently there are $4,283,544 in capital projects in this fund; the largest of these projects is the Borough Building rehabilitation which is budgeted at $1,931,702. There are also transfers out of this fund budgeted for a total of $542,509. Bonded Renewal and Replacement Capital Projects – Fund 470 On October 7, 2014, the voters approved a $10,230,000 bond issue to fund replacement and renewal of worn and obsolete school capital assets. Projects in this fund are currently budgeted fully at the not-to-exceed amount of $10,230,000. The largest of these projects was the underground storage tank replacement at Kodiak Middle School and paving replacement at Peterson Elementary. The total project budget is $1,850,241. Solid Waste Capital Projects – Fund 490 The Borough has $33,343,000 in capital projects relating to the landfill. The funding for these projects comes from the sale of bonds, grants, and loans from the Alaska Clean Water Fund. Current projects that are either under way or planned are replacing the siding, roof, septic tank, and removal and replacement of the underground storage tank at the landfill. There is also a project to provide aeration to leachate before it enters the leachate treatment plant. The majority of the fund is made up of the Lateral Expansion project, which is budgeted at 32,000,000. 146 Hospital Capital Projects – Fund 495/497 The Borough has $1,276,000 in capital projects relating to the hospital facility between the two funds. The funding from these projects comes from the hospital enterprise fund. The largest of these projects is the project to replace and upgrade the fire suppression and alarm system. 147 Borough Capital Projects: Project Budget as 07/01/2019 Life-to-Date Usage as of 06/30/20 CompletedFY 2020 Amendments Project Budget Remaining as of 06/30/2020 Revenues: Fund 415 - Miscellaneous Borough Projects 265,200$ 369,279$ 689,039$ 584,960$ Fund 426 - KFRC Capital Projects 391,000 198,463 200,000 392,537 Fund 430 - State Grant Projects 2,100,000 1,875,376 - 224,624 Fund 450 - Borough Capital Projects 1,844,200 2,188,699 355,000 10,501 Fund 455 - Borough Capital Projects - 175,000 175,000 - Fund 460 - High School Renewal and Replacement Project 80,479,009 79,349,195 - 879,814 Fund 469 - Borough Renewal and Replacement Projects 3,752,802 2,017,441 530,742 2,266,103 Fund 470 - Bonded Renewal and Replacement Projects 10,280,000 6,352,506 - 3,927,494 Fund 490 - Solid Waste Capital Projects 32,845,548 29,599,393 110,000 3,356,155 Fund 495 - Hospital Capital Projects 826,000 388,024 (276,000) 161,976 Fund 497 - Hospital Capital Projects - 726,000 726,000 - Total Revenues 132,783,759$ 123,239,375$ 2,509,781$ 11,804,165$ Projects: Fund 415 - Miscellaneous Borough Projects 265,200$ 114,055$ 689,039$ 840,184$ Fund 426 - KFRC Capital Projects 391,000 306,498 200,000 284,502 Fund 430 - State Grant Projects 2,100,000 1,845,597 - 254,403 Fund 450 - Borough Capital Projects 1,844,200 2,219,382 355,000 (24,042) Fund 455 - Borough Capital Projects - - 175,000 175,000 Fund 460 - High School Renewal and Replacement Project 80,479,009 79,760,820 Y - 718,189 Fund 469 - Borough Renewal and Replacement Projects 3,882,802 1,705,712 943,251 3,120,341 Fund 470 - Bonded Renewal and Replacement Projects 6,754,494 6,352,506 - 401,988 Fund 490 - Solid Waste Capital Projects 33,233,000 29,560,223 110,000 3,782,777 Fund 495 - Hospital Capital Projects 826,000 388,024 (276,000) 161,976 Fund 497 - Hospital Capital Projects - - 726,000 726,000 Total Expenditures 129,775,705$ 122,252,817$ 2,922,290$ 10,441,318$ CURRENT FUND ACTIVITY 148 FY2021 FY2022 FY2023 FY2024 FY2025 584,960$ -$ -$ -$ -$ 392,537 - - - - 224,624 - - - - 76,595 - - - - - - - - - - - - - - 373,671 - - - - - - - - - 3,356,155 - - - - 161,976 - - - - - - - - - 5,170,518$ -$ -$ -$ -$ 690,184$ 150,000$ -$ -$ -$ 284,502 - - - - 254,403 - - - - 88,916 - - - - 175,000 - - - - - - - - - 652,224 - 1,908,182 - - - - - - - 3,692,668 - - - - 236,901 - - - - 726,000 - - - - 6,800,798$ 150,000$ 1,908,182$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 149 Fund 415 - Miscellaneous Borough Projects: Project Budget as 07/01/2019 Life-to-Date as of 06/30/20 CompletedFY 2020 Amendments Budget Remaining as of 06/30/2020 Revenues: Transfer in from General Fund 265,200$ 265,200$ 100,000$ 100,000$ Transfer in from KIBSD - 104,079 589,039 484,960 Total Revenues 265,200$ 369,279$ 689,039$ 584,960$ Expenditures: Project #19008 CAMA/Collection Software Upgrade 200,000$ -$ 100,000$ 300,000$ Project #19013 Junk Car Removal 25,200 19,913 - 5,287 Project #19015 Aerial Imagery 40,000 - - 40,000 Project #20007 KIBSD Auxiliary Gym Design - 48,625 60,000 11,375 Project #20008 KIBSD North Star Siding Replacement - 45,371 502,039 456,668 Project #20020 KIBSD Auditorium Upgrades - 146 27,000 26,854 Total Expenditures 265,200$ 114,055$ 689,039$ 840,184$ CURRENT FUND ACTIVITY 150 FY2021 FY2022 FY2023 FY2024 FY2025 100,000$ -$ -$ -$ -$ 484,960.00 - - - - 584,960$ -$ -$ -$ -$ 150,000$ 150,000$ -$ -$ -$ 5,287 - - - - 40,000 - - - - 11,375 - - - - 456,668 - - - - 26,854 - - - - 690,184$ 150,000$ -$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 151 Project #19008 CAMA/Collection Software Upgrade Fiscal Year Project Began: TBD Project Description: This scope of this project is upgrade the current version of software to a version that better suits the Borough's needs. Expenditure Category Project Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - - - - - - - - - Construction - - - - - - - - - Equipment 200,000 - 100,000 300,000 150,000 150,000 - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead - - - - - - - - - Totals 200,000$ -$ 100,000$ 300,000$ 150,000$ 150,000$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project #19013 Junk Car Removal Fiscal Year Project Began: Ongoing Project Description: Expenditure Category Project Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - - - - - - - - - Construction - - - - - - - - - Equipment - - - - - - - - - Other Services 25,200 19,913 - 5,287 5,287 - - - - Contingency - - - - - - - - - Overhead - - - - - - - - - Totals 25,200$ 19,913$ -$ 5,287$ 5,287$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY The scope of this project is to remove junk and abandoned cars. A lottery is held annually for owners with clear titles and abandoned vehicle removals are made from borough and state properties. Project #19015 Aerial Imagery Fiscal Year Project Began: 2019 Project Description: The scope of this project is collect updated aerial imagery of the Kodiak Island Borough. Expenditure Category Project Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - - - - - - - - - Construction - - - - - - - - - Equipment - - - - - - - - - Other Services 40,000 - - 40,000 40,000 - - - - Contingency - - - - - - - - - Overhead - - - - - - - - - Totals 40,000$ -$ -$ 40,000$ 40,000$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 152 Project #20007 KIBSD Auxiliary Gym Design Fiscal Year Project Began: TBD Project Description: This scope of this project is to… Expenditure Category Project Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - - - - - - - - - Construction - - - - - - - - - Equipment - - - - - - - - - Other Services - 45,589 60,000 14,412 11,375 - - - - Contingency - - - - - - - - - Overhead - 3,037 - (3,037) - - - - - Totals -$ 48,625$ 60,000$ 11,375$ 11,375$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project #20008 KIBSD North Star Siding Replacement Fiscal Year Project Began: TBD Project Description: This scope of this project is to… Expenditure Category Project Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - 30,893 26,193 (4,700) - - - - - Construction - - 436,556 436,556 436,556 - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - 21,828 21,828 17,128 - - - - Overhead - 14,478 17,462 2,984 2,984 - - - - Totals -$ 45,371$ 502,039$ 456,668$ 456,668$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project #20020 Auditorium Upgrades Fiscal Year Project Began: TBD Project Description: This scope of this project is to… Expenditure Category Project Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - - 24,500 24,500 24,500 - - - - Construction - - - - - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead - 146 2,500 2,354 2,354 - - - - Totals -$ 146$ 27,000$ 26,854$ 26,854$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY 153 Fund 426-KFRC Capital Projects: Budget as 07/01/2019 Life-to-Date as of 06/30/20 CompletedFY 2020 Amendments Budget Remaining as of 06/30/2020 Revenues: Transfer in from Fund 555 - KFRC 180,000$ 100,000$ 310,000$ 390,000$ Reimbursements from Kodiak Electric Association (KEA)211,000 98,463 - 112,537 Total Revenues 391,000$ 198,463$ 310,000$ 502,537$ Expenditures: Project #19002 KFRC Electric Boiler Controls Upgrade 211,000 267,455 100,000 43,545 Project #19003 KFRC Seawater Storage and Filter Vessel 30,000 - - 30,000 Project #19004 KFRC Fire Alarm Replacement & Upgrade 150,000 24,656 110,000 235,344 Project #20004 KFRC Exterior - 14,386 100,000 85,614 Total Expenditures 391,000$ 306,498$ 310,000$ 394,502$ CURRENT FUND ACTIVITY 154 FY2021 FY2022 FY2023 FY2024 FY2025 280,000$ -$ -$ -$ -$ 112,537 392,537$ -$ -$ -$ -$ 43,545 - - - - 30,000 - - - - 235,344 - - - - 85,613 - - - - 394,502$ -$ -$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 155 Project #19002 KFRC Electric Boiler Controls Upgrade Fiscal Year Project Began: 2019 Project Description: Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 28,000 13,306 (2,500) 12,194 - - - - - Construction 132,000 235,640 118,000 14,360 43,545 - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 25,000 - (5,000) 20,000 - - - - - Overhead 26,000 18,509 (10,500) (3,009) - - - - - Totals 211,000$ 267,455$ 100,000$ 43,545$ 43,545$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY The scope of this project is to install a backup electric boiler. The cost of replacing the boiler is being reimbursed by the Kodiak Electric Association (KEA). During times when the electric company produces more electricity than it has demand for, the electric company has the ability to interrupt the diesel powered boiler and use the electric powered boiler. The borough has entered into an agreement with KEA for a reduced rate for the excess generated electricity. Project #19003 KFRC Seawater Storage and Filter Vessel Fiscal Year Project Began: TBD Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 30,000 - - 30,000 30,000 - - - - Construction - - - - - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead - - - - - - - - - Totals 30,000$ -$ -$ 30,000$ 30,000$ -$ -$ -$ -$ Project Description: The scope of this project is to rebuild the seawater filter membrane, cleaning out the marine life inside the storage tank and to make repairs to the exterior structure of the storage tank. CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 156 Project #19004 KFRC Fire Alarm Replacement & Upgrade Fiscal Year Project Began: TBD Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - 14,543 25,000 10,457 10,457 - - - - Construction 130,000 - (30,000) 100,000 100,000 - - - - Equipment - - - - - - - - - Other Services - - 110,000 110,000 110,000 - - - - Contingency 10,000 - 5,000 15,000 - - - - - Overhead 10,000 10,113 - (113) 14,887 - - - - Totals 150,000$ 24,656$ 110,000$ 235,344$ 235,344$ -$ -$ -$ -$ Project Description: The scope of this project is to upgrade and replace the fire alarm system at KFRC. CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project #20004 KFRC Exterior Upgrades Fiscal Year Project Began: TBD Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - 10,840 75,000 64,160 64,160 - - - - Construction - - - - - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead - 3,546 25,000 21,454 21,453 - - - - Totals -$ 14,386$ 100,000$ 85,614$ 85,613$ -$ -$ -$ -$ Project Description: The scope of this project is to upgrade and repair the exterior of the KFRC building. CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 157 Fund 430-State Funded Capital Projects: Budget as 07/01/2019 Life-to-Date as of 06/30/20 CompletedFY 2020 Amendments Budget Remaining as of 06/30/2020 Revenues: 12010 Anton Larsen Dock - Grant 2,100,000 1,875,376 - 224,624 Total Revenues 2,100,000$ 1,875,376$ -$ 224,624$ Projects: Project #12010 Anton Larsen Dock 2,100,000 1,845,597 - 254,403 Total Expenditures 2,100,000$ 1,845,597$ -$ 254,403$ CURRENT FUND ACTIVITY 158 FY2021 FY2022 FY2023 FY2024 FY2025 224,624 - - - - 224,624$ -$ -$ -$ -$ 254,403 - - - - 254,403$ -$ -$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 159 Fund 450 - Other Borough Capital Projects: Budget as 07/01/2019 Life-to-Date as of 06/30/20 CompletedFY 2020 Amendments Budget Remaining as of 06/30/2020 Revenues: Project #14001 Lake Orbin Culvert Replacement 208,242$ 274,335$ -$ (66,093)$ Project #16003 Chiniak Emergency Shelter Rebuild 670,958 670,958 - - Project #17008 EPA Brownfield Assessment Grant 600,000 536,366 - 63,634 Project #19006 Fire Prot Area #1 - Exhaust Venting System 140,000 127,039 - 12,961 Project #19007 Borough Building Exterior Project 115,000 115,000 Y - - Project #19009 Fire Prot. Area #1 - Exterior Improvement 25,000 375,000 350,000 - Project #19010 Fire Prot. Area #1 - Paving 60,000 65,000 Y 5,000 - Project #19011 Womens Bay Fire Kitchen Remodel 25,000 25,000 - - Total Revenues 1,844,200$ 2,188,699$ 355,000$ 10,501$ Expenditures: Project #14001 Lake Orbin Culvert Replacement 208,242$ 274,335$ -$ (66,093)$ Project #16003 Chiniak Emergency Shelter Rebuild 670,958 717,822 - (46,864) Project #17008 EPA Brownfield Assessment Grant 600,000 583,026 - 16,974 Project #19006 Fire Prot Area #1 - Exhaust Venting System 140,000 134,174 - 5,826 Project #19007 Borough Building Exterior Project 115,000 111,583 Y - - Project #19009 Fire Prot. Area #1 - Exterior Improvement 25,000 333,884 350,000 41,116 Project #19010 Fire Prot. Area #1 - Paving 60,000 64,557 Y 5,000 - Project #19011 Womens Bay Fire Kitchen Remodel 25,000 - - 25,000 Total Expenditures 1,844,200$ 2,219,382$ 355,000$ (24,042)$ CURRENT FUND ACTIVITY 160 FY2021 FY2022 FY2023 FY2024 FY2025 -$ -$ -$ -$ -$ - - - - - 63,634 - - - - 12,961 - - - - - - - - - - - - - - - - - - - - - - - - 76,595$ -$ -$ -$ -$ -$ -$ -$ -$ -$ - - - - - 16,974 - - - - 5,826 - - - - - - - - - 41,116 - - - - - - - - - 25,000 - - - - 88,916$ -$ -$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 161 Project #14001 Lake Orbin Culvert Replacement Fiscal Year Project Began: 2014 Project Description: Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House 5,000 - - 5,000 - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - 48,336 - (48,336) - - - - - Construction 175,242 204,898 - (29,656) - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 23,000 - - 23,000 - - - - - Overhead 5,000 21,101 - (16,101) - - - - - Totals 208,242$ 274,335$ -$ (66,093)$ -$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY This scope of this project is to design and construct at least one identified fish barrier culvert with fish friendly culverts within the Lake Orbin drainage Project #16003 Chiniak Emergency Shelter Rebuild Fiscal Year Project Began: 2017 Project Description: The scope of this project is to rebuild the Chiniak Emergency Shelter to replace the one that was destroyed by the Twin Creeks fire in 2015. Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration 12,084$ 28,633$ -$ (16,549)$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 43,010 32,324 - 10,686 - - - - - Construction 458,864 532,874 - (74,010) - - - - - Equipment - 19,163 - (19,163) - - - - - Other Services 157,000 104,828 - 52,172 - - - - - Contingency - - - - - - - - - Overhead - - - - - - - - Totals 670,958$ 717,822$ -$ (46,864)$ -$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 162 Project #17008 EPA Brownfield Assessment Grant Fiscal Year Project Began: 2017 Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation 571,190 578,472 - (7,282) 16,974 - - - - Design Services - - - - - - - - - Construction - - - - - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead 28,810 4,554 - 24,256 - - - - - Totals 600,000$ 583,026$ -$ 16,974$ 16,974$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Description: The scope of this project is to assess up to 18 Brownfield sites in order to take initial steps toward cleaning up and redeveloping vacant & underutilized properties Project #19006 Fire Prot Area #1 - Exhaust Venting System Fiscal Year Project Began: 2017 Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 4,850 7,350 - (2,500) - - - - - Construction 116,390 115,356 - 1,034 5,826 - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 7,150 - - 7,150 - - - - - Overhead 11,610 11,468 - 142 - - - - - Totals 140,000$ 134,174$ -$ 5,826$ 5,826$ -$ -$ -$ -$ Project Description: The scope of this project is to install an exhaust venting system that will connect directly to the fire apparatus to eliminate combustion gases in the garage area. CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 163 Project #19007 Borough Building Exterior Project Fiscal Year Project Began: 2019 Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - - - - - - - - - Construction 100,000 102,351 - (2,351) - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 5,000 - - 5,000 - - - - - Overhead 10,000 9,232 - 768 - - - - - Totals 115,000$ 111,583$ -$ 3,417$ -$ -$ -$ -$ -$ Project Description: The scope of this project is to repair and paint the exterior of the Borough building. CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 164 Project #19010 Fire Prot. Area #1 - Paving Fiscal Year Project Began: 2019 Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - - - - - - - - - Construction 55,000 60,195 5,000 (195) - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead 5,000 4,362 - 638 - - - - - Totals 60,000$ 64,557$ 5,000$ 443$ -$ -$ -$ -$ -$ Project Description: The scope of this project is to pave the entrance to the fire truck bays. CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project #19011 Womens Bay Fire Kitchen Remodel Fiscal Year Project Began: 2019 Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 20,000 - - 20,000 20,000 - - - - Construction - - - - - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead 5,000 - - 5,000 5,000 - - - - Totals 25,000$ -$ -$ 25,000$ 25,000$ -$ -$ -$ -$ Project Description: The scope of this project is to remodel the fire department kitchen. CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 165 Fund 455 - Other Borough Capital Projects Budget as 07/01/2019 Life-to-Date as of 06/30/20 CompletedFY 2020 Amendments Budget Remaining as of 06/30/2020 Revenues: Project #20009 Salonie Creek Culvert Replacement - 100,000 100,000 - Project #20024 Chiniak School Water - 75,000 75,000 - Total Revenues -$ 175,000$ 175,000$ -$ Projects: Project #20009 Salonie Creek Culvert Replacement - - 100,000 100,000 Project #20024 Chiniak School Water - - 75,000 75,000 Total Expenditures -$ -$ 175,000$ 175,000$ CURRENT FUND ACTIVITY 166 FY2021 FY2022 FY2023 FY2024 FY2025 - - - - - - - - - - -$ -$ -$ -$ -$ 100,000 - - - - 75,000 - - - - 175,000$ -$ -$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 167 Project #20024 Chiniak School Water Fiscal Year Project Began: Project Description: Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - - - - - - - - - Construction - - - - - - - - - Equipment - - - - - - - - - Other Services - - 75,000 75,000 75,000 - - - - Contingency - - - - - - - - - Overhead - - - - - - - - - Totals -$ -$ 75,000$ 75,000$ 75,000$ -$ -$ -$ -$ The scope of this project is to CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 168 This page is left intentionally blank. 169 Fund 460-Borough Capital Projects: Budget as 07/01/2019 Life-to-Date as of 06/30/20 CompletedFY 2020 Amendments Budget Remaining as of 06/30/2020 Revenues: Sale of GO Bonds 68,429,814$ 67,550,000$ -$ 879,814$ State Grant 7,788,000 7,538,000 - - Transfers In 4,261,195 4,261,195 - - Total Revenues 80,479,009$ 79,349,195$ -$ 879,814$ Expenditures: Project #10021 Kodiak High School Renovation and Renewal 80,479,009$ 79,760,820$ Y -$ 718,189$ Total Expenditures 80,479,009$ 79,760,820$ -$ 718,189$ CURRENT FUND ACTIVITY Project #10021 Kodiak High School Renovation and Renewal Fiscal Year Project Began: 2010 Project Description: This scope of this project is to construct a new portion of the Kodiak High School and renovate existing High School facilities. Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 6,146,247 6,635,376 - (489,129) - - - - - Construction 61,462,465 68,403,179 - (6,940,714) - - - - - Equipment 1,852,200 1,798,530 - 53,670 - - - - - Other Services 614,625 641,669 - (27,044) - - - - - Contingency 4,302,324 - - 4,302,324 - - - - - Overhead 6,101,148 2,282,066 - 3,819,082 - - - - - Totals 80,479,009$ 79,760,820$ -$ 718,189$ -$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY 170 FY2021 FY2022 FY2023 FY2024 FY2025 -$ -$ -$ -$ -$ - - -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 171 Fund 469-Borough Renewal & Replacement Capital Projects: Budget as 07/01/2019 Life-to-Date as of 06/30/20 CompletedFY 2020 Amendments Budget Remaining as of 06/30/2020 Revenues: 11003 Chiniak, Remove UST 414,169$ 414,169$ Y -$ -$ 11009 Island Wide UST Removal 567,931 567,931 - - 13006 Borough Building Rehab 1,931,702 23,520 - 1,908,182 18001 Electric Boiler for Kodiak Middle School 275,000 290,750 Y - (15,750) 19001 Electric Boiler for Kodiak High School 564,000 90,329 (100,000) 373,671 20005 Borough Building Abatement/Mechanical Upgrades - 100,000 100,000 - 20021 Tsunami Siren Upgrades - 530,742 530,742 - Total Revenues 3,752,802$ 2,017,441$ 530,742$ 2,266,103$ Expenditures: 11003 Chiniak, Remove UST 414,169$ 405,727$ Y -$ 8,442$ 11009 Island Wide UST Removal 567,931 536,370 - 31,561 13006 Borough Building Rehab 1,931,702 23,520 - 1,908,182 18001 Electric Boiler for Kodiak Middle School 275,000 266,015 Y - 8,985 19001 Electric Boiler for Kodiak High School 564,000 442,839 (100,000) 21,161 20005 Borough Building Abatement/Mechanical Upgrades - 31,240 100,000 68,760 20021 Tsunami Siren Upgades - - 530,742 530,742 Transfers Out 130,000 - 412,509 542,509 Total Expenditures 3,882,802$ 1,705,712$ 943,251$ 3,120,341$ CURRENT FUND ACTIVITY 172 FY2021 FY2022 FY2023 FY2024 FY2025 -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - 373,671 - - - - - - - - - 373,671$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 31,561 - - - - - - 1,908,182 - - - - - - - 21,161 - - - - 68,760 - - - - 530,742 - - - - - - - - - 652,224$ -$ 1,908,182$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 173 Project #11003 Chiniak Remove UST Fiscal Year Project Began: 2011 Project Description: This scope of this project is to remove the old underground storage tank (UST) at the Chiniak School. Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 58,685 107,313 - (48,628) - - - - - Construction 289,872 236,454 - 53,418 - - - - - Equipment 27,233 21,702 - 5,531 - - - - - Other Services - - - - - - - - - Contingency 15,225 - - 15,225 - - - - - Overhead 23,154 40,258 - (17,104) - - - - - Totals 414,169$ 405,727$ -$ 8,442$ -$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project #11009 Island Wide UST Removal Fiscal Year Project Began: 2011 Project Description: The scope of this project is to remove the old underground storage tanks (USTs) at the schools in the villages. The first is in Karluk. Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation 6,302 6,302 - 0 - - - - - Design Services 83,035 140,506 - (57,471) - - - - - Construction 401,477 312,099 - 89,378 31,561 - - - - Equipment 41,345 41,345 - - - - - - - Other Services - - - - - - - - - Contingency 19,255 - - 19,255 - - - - - Overhead 16,517 36,118 - (19,601) - - - - - Totals 567,931$ 536,370$ -$ 31,561$ 31,561$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 174 Project #13006 Borough Building Rehab Fiscal Year Project Began: 2014 Project Description: The scope of this project is to rehabilitate and renovate the Borough building. Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - 23,182 - (23,182) - - - - - Construction 1,931,702 - - 1,931,702 - - 1,908,182 - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - 338 - (338) - - - - - Overhead - - - - - - - - - Totals 1,931,702$ 23,520$ -$ 1,908,182$ -$ -$ 1,908,182$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project #18001 Electric Boiler for KMS Fiscal Year Project Began: 2018 Project Description: The scope of this project is to install an electric boiler at the Kodiak Middle School. Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 23,000 16,443 - 6,557 - - - - - Construction 208,000 238,974 - (30,974) - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 25,000 - - 25,000 - - - - - Overhead 19,000 10,598 - 8,402 - - - - - Totals 275,000$ 266,015$ -$ 8,985$ -$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 175 Project #19001 KHS Electric Boiler Fiscal Year Project Began: 2019 Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 38,000 20,386 (12,500) 5,114 - - - - - Construction 475,000 378,640 (75,000) 21,360 21,161 - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 25,000 - (5,000) 20,000 - - - - - Overhead 26,000 43,813 (7,500) (25,313) - - - - - Totals 564,000$ 442,839$ (100,000)$ 21,161$ 21,161$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Description: The scope of this project is to install a backup electric boiler. The cost of replacing the boiler is being reimbursed by the Kodiak Electric Association (KEA). During times when the electric company produces more electricity than it has demand for, the electric company has the ability to interrupt the diesel powered boiler and use the electric powered boiler. The Borough has entered into an agreement with KEA for a reduced rate for the excess generated electricity. Project #20005 Borough Building Abatement/Mechanical Upgrades Fiscal Year Project Began: 2020 Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - 29,107 80,000 50,893 50,893 - - - - Construction - - - - - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead - 2,134 20,000 17,866 17,867 - - - - Totals -$ 31,240$ 100,000$ 68,760$ 68,760$ -$ -$ -$ -$ Project Description: The scope of this project is to CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 176 Project #20021 Tsunami Siren Upgrades Fiscal Year Project Began: 2020 Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - - - - - - - - - Construction - - 520,000 520,000 520,000 - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead - - 10,742 10,742 10,742 - - - - Totals -$ -$ 530,742$ 530,742$ 530,742$ -$ -$ -$ -$ Project Description: The scope of this project is to CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Transfers Out Fiscal Year Project Began: n/a Project Description: This tracks the transfers out to other funds. Expenditure to Fund/Project Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 450/Project #16003 130,000$ -$ -$ 130,000$ -$ -$ -$ -$ -$ 300/Debt Service - - 412,509 412,509 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Totals 130,000$ -$ 412,509$ 542,509$ -$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 177 Fund 470-Bonded School Renewal & Replacement Capital Projects: Budget as 07/01/2019 Life-to-Date as of 06/30/20 CompletedFY 2020 Amendments Budget Remaining as of 06/30/2020 Revenues: Bond Proceeds (2015 GO Bond Series) 10,230,000$ 6,302,506$ -$ 3,927,494$ Project #15010 Playground Replacements State Grant 50,000 50,000 - - Total Revenues 10,280,000$ 6,352,506$ -$ 3,927,494$ Expenditures: Project #15003 Roofing Replacement East & KMS 822,527$ 822,527$ -$ -$ Project #15004 East Elementary School Renovation 1,592,841 1,467,865 Y - 124,976 Project #15005 Flooring Replacement - Main and Peterson 586,882 586,882 - - Project #15006 Peterson Elementary Boilers & Controls 826,995 826,995 - - Project #15009 Paving and UST Replacement 1,850,241 1,830,662 Y - 19,579 Project #15011 Main, Old Harbor, & Port Lions UST 577,375 332,452 Y - 244,923 Project #18101 KMS Boiler Replacement 497,633 485,123 Y - 12,510 Total Expenditures 6,754,494$ 6,352,506$ -$ 401,988$ CURRENT FUND ACTIVITY 178 FY2021 FY2022 FY2023 FY2024 FY2025 -$ -$ -$ -$ -$ - - - - - -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -$ -$ -$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 179 Project #15003 Roofing Replacement East & KMS Fiscal Year Project Began: 2016 Project Description: This scope of this project is to to replace the roofing for East Elementary and Kodiak Middle School Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 72,599 72,599 - - - - - - Construction 733,855 733,855 - - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead 16,073 16,073 - - - - - - Totals 822,527$ 822,527$ -$ -$ -$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project #15004 East Elementary School Renovation Fiscal Year Project Began: 2016 Project Description: This scope of this project is to renovate East Elementary. Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 116,549 93,897 - 22,652 - - - - - Construction 1,294,993 1,304,007 - (9,014) - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 64,750 - - 64,750 - - - - - Overhead 116,549 69,961 - 46,588 - - - - - Totals 1,592,841$ 1,467,865$ -$ 124,976$ -$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project #15005 Flooring Replacement - Main and Peterson Fiscal Year Project Began: 2016 Project Description: This scope of this project is to replace the flooring for both Main Elementary and Peterson Elementary. Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 29,149 29,149 - - - - - - - Construction 538,158 538,158 - - - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead 19,575 19,575 - - - - - - - Totals 586,882$ 586,882$ -$ -$ -$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY 180 Project #15006 Peterson Elementary Boilers & Controls Fiscal Year Project Began: 2015 Project Description: This scope of this project is to install new boilers and controls for Peterson Elementary Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 67,452 67,452 - - - - - - Construction 738,739 738,739 - - - - - - Equipment - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - Overhead 20,804 20,804 - - - - - - - Totals 826,995$ 826,995$ -$ -$ -$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project #15009 Paving and UST Replacement Fiscal Year Project Began: 2017 Project Description: The scope of this project is to replace the UST and pavement at the Kodiak Middle School and replace pavement at Peterson. Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 117,890 113,696 - 4,194 - - - - - Construction 1,689,724 1,666,396 - 23,328 - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead 42,627 50,570 - (7,943) - - - - - Totals 1,850,241$ 1,830,662$ -$ 19,579$ -$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 181 Project #15011 Main, Old Harbor, & Port Lions UST Fiscal Year Project Began: 2017 Project Description: The scope of this project is to replace USTs at the Main, Old Harbor, & Port Lions schools. Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 51,709 57,464 - (5,755) - - - - - Construction 462,952 238,583 - 224,369 - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 22,398 - - 22,398 - - - - - Overhead 40,316 36,405 - 3,911 - - - - - Totals 577,375$ 332,452$ -$ 244,923$ -$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project #18101 KMS Boiler Replacement Fiscal Year Project Began: 2018 Project Description: The scope of this project is to install a new fuel oil boiler at the Kodiak Middle School. Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 32,067 33,286 - (1,219) - - - - - Construction 420,672 417,414 - 3,258 - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 16,034 - - 16,034 - - - - - Overhead 28,860 34,423 - (5,563) - - - - - Totals 497,633$ 485,123$ -$ 12,510$ -$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 182 This page is left intentionally blank. 183 Fund 490-Landfill Capital Projects: Budget as 07/01/2019 Life-to-Date as of 06/30/20 CompletedFY 2020 Amendments Budget Remaining as of 06/30/2020 Revenues: ACWF Loan 505031 3,000,000$ 3,000,000$ -$ -$ Sale of Revenue Bonds 3,650,000 2,129,708 - 1,520,292 State Legislative Grants 7,529,000 7,529,000 - - ACWF Loan 505041 14,463,548 12,757,483 - 1,706,065 ACWF Loan 505061 3,000,000 3,000,000 - - Transfers in from Fund 530 1,203,000 1,183,202 110,000 129,798 Total Revenues 32,845,548$ 29,599,393$ 110,000$ 3,356,155$ Expenditures: Project #07013 Landfill Lateral Expansion 32,000,000$ 28,377,021$ -$ 3,622,979$ Project #17001 Landfill Scale Shack 100,000 55,749 - 44,251 Project #17002 Baler Building Siding & Roof 975,000 924,678 - 50,322 Project #18004 Baler Building Septic Removal/Replacement 40,000 61,450 50,000 28,550 Project #18005 Baler Building UST Removal/ Replacement 90,000 108,861 60,000 41,139 Project #19012 Leachate Aeration 28,000 32,464 - (4,464) Total Expenditures 33,233,000$ 29,560,223$ 110,000$ 3,782,777$ CURRENT FUND ACTIVITY 184 FY2021 FY2022 FY2023 FY2024 FY2025 -$ -$ -$ -$ -$ 1,520,292 - - - - - - - - - 1,706,065 - - - - - - - - - 129,798 - - - - 3,356,155$ -$ -$ -$ -$ 3,622,979$ -$ -$ -$ -$ - - - - - - - - - - 28,550 - - - - 41,139 - - - - - - - - - 3,692,668$ -$ -$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 185 Project #07013 Landfill Lateral Expansion Fiscal Year Project Began: 2007 Project Description: This scope of this project is to expand the landfill. Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House 200,000 167,578 - 32,422 32,422 - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 3,750,000 3,538,507 - 211,493 211,493 - - - - Construction 25,000,000 24,165,665 - 834,335 834,335 - - - - Equipment 75,000 1,240 - 73,760 73,760 - - - - Other Services 10,000 7,670 - 2,330 2,330 - - - - Contingency 2,215,000 - - 2,215,000 2,215,000 - - - - Overhead 750,000 496,362 - 253,638 253,639 - - - - Totals 32,000,000$ 28,377,021$ -$ 3,622,979$ 3,622,979$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project #17001 Landfill Scale Shack Fiscal Year Project Began: 2017 Project Description: The scope of this project is upgrade the scale shack at the landfill. Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - - - - - - - - - Construction 75,000 54,513 - 20,487 - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead 25,000 1,236 - 23,764 - - - - - Totals 100,000$ 55,749$ -$ 44,251$ -$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project #17002 Baler Building Siding & Roof Fiscal Year Project Began: 2017 Project Description: The scope of this project is to replace the siding and roof of the baler building at the landfill. Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 67,800 74,626 - (6,826) - - - - - Construction 787,000 781,841 - 5,159 - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 75,000 - - 75,000 - - - - - Overhead 45,200 68,212 - (23,012) - - - - - Totals 975,000$ 924,678$ -$ 50,322$ -$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 186 Project #18004 Baler Building Septic Removal/Replacement Fiscal Year Project Began: 2018 Project Description: Due to changes in the building walls, relocation of septic lines was necessary Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 40,000 26,252 - 13,748 13,748 - - - - Construction - 28,691 35,000 6,309 6,309 - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead - 6,507 15,000 8,493 8,493 - - - - Totals 40,000$ 61,450$ 50,000$ 28,550$ 28,550$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project #18005 Baler Building UST Removal/ Replacement Fiscal Year Project Began: 2018 Project Description: This scope of this project is to remove the underground tank and install an above ground tank. Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 40,000 26,728 - 13,272 13,272 - - - - Construction 50,000 73,142 40,000 16,858 16,858 - - - - Equipment - - - - - - - - Other Services - - - - - - - - Contingency - - - - - - - - Overhead 8,991 20,000 11,009 11,009 - - - - Totals 90,000$ 108,861$ 60,000$ 41,139$ 41,139$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project #19012 Leachate Aeration Fiscal Year Project Began: 2020 Project Description: Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 28,000 32,464 - (4,464) - - - - - Construction - - - - - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead - - - - - - - - - Totals 28,000$ 32,464$ -$ (4,464)$ -$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY This scope of this project is to provide aeriation to leachate prior to it entering the plant. This will result in driving off of VOCs (volatile organic compounds), and assist in coalescence of metals and minerals to drop out of the leachate as solids prior to entering the plant. 187 Fund 495-Hospital Capital Projects: Budget as 07/01/2019 Life-to-Date as of 06/30/20 CompletedFY 2020 Amendments Budget Remaining as of 06/30/2020 Revenues: Transfers in from Fund 540 826,000$ 388,024$ (276,000)$ 161,976$ Total Revenues 826,000$ 388,024$ -$ (276,000)$ 161,976$ Expenditures: Project #18002 PKIMC Roof 118,000$ 3,390$ (118,000)$ (3,390)$ Project #18003 PKIMC Fire Suppression 608,000 1,134 (608,000) (1,134) Project #19014 PKIMC Fuel Leak 100,000 220,401 50,000 (70,401) Project #20001 PKIMC New Fuel Tank - 28,247 200,000 171,753 Project #20003 PKIMC Retaining Wall - 98,863 150,000 51,137 Project #20006 PKIMC Structural Analysis - 35,989 50,000 14,011 Total Expenditures 826,000$ 388,024$ (276,000)$ 161,976$ CURRENT FUND ACTIVITY 188 FY2021 FY2022 FY2023 FY2024 FY2025 161,976$ -$ -$ -$ -$ 161,976$ -$ -$ -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - 171,753 - - - - 51,137 - - - - 14,011 - - - - 236,901$ -$ -$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 189 Project #18002 PKIMC Roof Fiscal Year Project Began: 2018 Project Description: Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 11,800 - (11,800) - - - - - - Construction 89,680 - (89,680) - - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 5,900 - (5,900) - - - - - - Overhead 10,620 3,390 (10,620) (3,390) - - - - - Totals 118,000$ 3,390$ (118,000)$ (3,390)$ -$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY This scope of this project is to replace the roof of the hospital building. In FY2020, this project was combined with Project #18003 and rolled into a new project, #21000 PKIMC Fire Alarm Replacement & Upgrade. Project #18003 PKIMC Fire Suppression Fiscal Year Project Began: 2018 Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 60,800 59 (60,800) (59) - - - - - Construction 474,240 - (474,240) - - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 30,400 - (30,400) - - - - - - Overhead 42,560 1,075 (42,560) (1,075) - - - - - Totals 608,000$ 1,134$ (608,000)$ (1,134)$ -$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Description: The scope of this project is for the upgrade and replacement of the fire suppression and alarm system at the Providence Hospital. In FY2020, this project was combined with Project #18002 and rolled into a new project, #21000 PKIMC Fire Alarm Replacement & Upgrade. Project #19014 PKIMC Fuel Leak Fiscal Year Project Began: 2019 Project Description: The scope of this project is to clean up and remidate fuel spilled and repair the associated fuel system at the Hospital Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - 485 - (485) - - - - - Design Services - 35,914 - (35,914) - - - - - Construction 80,000 57,548 40,000 62,452 - - - - - Equipment - 62,160 - (62,160) - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead 20,000 64,294 10,000 (34,294) - - - - - Totals 100,000$ 220,401$ 50,000$ (70,401)$ -$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 190 Project #20001 PKIMC New Fuel Tank Fiscal Year Project Began: 2020 Project Description: The scope of this project is to Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - 20,645 35,000 14,355 14,355 - - - - Construction - - 75,000 75,000 75,000 - - - - Equipment - - 62,000 62,000 62,000 - - - - Other Services - - - - 13,000 - - - - Contingency - - 13,000 13,000 - - - - - Overhead - 7,601 15,000 7,399 7,398 - - - - Totals -$ 28,247$ 200,000$ 171,753$ 171,753$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project #20003 PKIMC Retaining Wall Fiscal Year Project Began: 2020 Project Description: The scope of this project is to Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - 91,747 125,000 33,253 33,253 - - - - Construction - - - - - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead - 7,116 25,000 17,884 17,884 - - - - Totals -$ 98,863$ 150,000$ 51,137$ 51,137$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project #20006 Structural Analysis Fiscal Year Project Began: 2020 Project Description: The scope of this project is to Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - 35,989 43,000 7,011 7,011 - - - - Construction - - - - - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead - - 7,000 7,000 7,000 - - - - Totals -$ 35,989$ 50,000$ 14,011$ 14,011$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 191 Fund 497 - Hosptial Capital Projects Budget as 07/01/2019 Life-to-Date as of 06/30/20 CompletedFY 2020 Amendments Budget Remaining as of 06/30/2020 Revenues: Transfer in from Project #18002 PKIMC Roof - 118,000 118,000 - Transfer in from Project #18003 PKIMC Fire Suppression - 608,000 608,000 - Total Revenues -$ 726,000$ 726,000$ -$ Projects: Project #21000 PKIMC Fire Alarm Replacement & Upgrade - - 726,000 726,000 Total Expenditures -$ -$ 726,000$ 726,000$ CURRENT FUND ACTIVITY Project #21000 PKIMC Fire Alarm Replacement & Upgrades Fiscal Year Project Began: 2020 Project Description: Expenditure Category Budget as 07/01/2019 Life-to-Date as of 06/30/20 FY 2020 Amendments Budget Remaining as of 06/30/2020 FY2021 FY2022 FY2023 FY2024 FY2025 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - - - - - - - - - Construction - - - - - - - - - Equipment - - - - - - - - - Other Services - - 726,000 726,000 726,000 - - - - Contingency - - - - - - - - - Overhead - - - - - - - - - Totals -$ -$ 726,000$ 726,000$ 726,000$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY The scope of this project is to 192 FY2021 FY2022 FY2023 FY2024 FY2025 - - - - - - - - - - -$ -$ -$ -$ -$ 726,000 - - - - 726,000$ -$ -$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 193 This page is left intentionally blank. 194 ENTERPRISE FUNDS Enterprise Funds Description Enterprise funds are a different type of fund than the General or Special Revenue Funds. They are similar to business type operations in that the costs of providing goods and services are recovered through user fees. Enterprise funds do not include special revenue, debt service or capital projects funds. Funds included in this section are: • Municipal Solid Waste Collection and Disposal • Hospital Facility • Long-Term Care Facility • Kodiak Fisheries Research Facility • Research Court Apartments • 911 Service 195 Municipal Solid Waste Collection and Disposal Hospital Facility Long-Term Care Center Kodiak Fisheries Research Center KFRC Dorm Facility 911 Service Total Estimated Beginning Net Assets 1,369,568$ 4,730,564$ 3,526,975$ 3,656,228$ -$ 9,083$ 13,292,418$ Revenues Disposal Fees 4,473,000 - - - - - 4,473,000 Rents and Royalties - 1,384,272 1,043,628 700,750 30,000 - 3,158,650 PERS on Behalf Payment 47,797 - - 10,221 - - 58,018 Metal Recycling 25,000 - - - - - 25,000 Customer Charges - - - - - 300,000 300,000 Interest Earnings 114,000 30,000 32,000 67,597 - - 243,597 Proceeds of Long Term Debt 27,211 - 57,804 - - - 85,015 Use of Fund Balance 910,850 - - 1,327,407 27,483 - 2,265,740 Transfers in - - - - - - - Total Revenues and Transfers In 5,597,858 1,414,272 1,133,432 2,105,975 57,483 300,000 10,609,020 Total Available Funds 6,967,426 6,144,836 4,660,407 5,762,203 57,483 309,083 23,901,438 Expenses Waste Disposal - - - - - - Personnel Costs 1,321,303 40,319 - 292,975 7,183 1,500 1,663,280 Contracted Services 502,000 - - - - 298,200 800,200 Dorm Facility - - - - 50,300 - 50,300 Depreciation 672,055 1,062,092 518,933 697,000 - - 2,950,080 Debt Service Interest 335,500 - 442,275 - - - 777,775 Support Goods & Services 1,645,000 311,861 172,224 746,500 - 300 2,875,885 Other 1,122,000 - - 469,500 - - 1,591,500 Total Use of Funds 5,597,858 1,414,272 1,133,432 2,205,975 57,483 300,000 10,709,020 Est. Net Assets 06/30/2021 1,369,568$ 4,730,564$ 3,526,975$ 3,556,228$ -$ 9,083$ 13,192,418$ ENTERPRISE FUNDS BUDGET SUMMARY 196 This page intentionally left blank. 197 MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL FY202 1 PROGRAM DESCRIPTION: The Kodiak Island Borough manages solid waste collection services with a private contractor and provides waste disposal and limited recycling services for the residents and commercial generators located on the Kodiak road system. Residents and commercial waste generators may also deliver solid waste such as garbage, household hazardous waste, construction debris, scrap metal, asbestos, and used oil to the landfill facility for disposal. The Engineering and Facilities Department is responsible for the administration, operation, and maintenance of the solid waste baling (baler) facility, landfill area, and the newly completed Leachate Treatment Plant. The landfill is operated in compliance with federal, state, and local regulations and guidelines. GOALS AND OBJECTIVES: To provide cost-effective, environmentally safe waste collection, disposal, and recycling services for Kodiak Island. • Manage the long-term contract for collection. ANALYSIS*: Staff has recently completed the Municipal Solid Waste Permit Renewal with consultant, Jacobs, and it has been approved by the ADEC (Alaska Department of Environmental Conservation). This permit application is required every six years by Alaska statute. The annual survey for the rock cover material stockpiles, remaining permitted landfill airspace, and slope monitoring is underway with an anticipated completion date of mid-July; the next slope monitoring event is not until 2019. This survey is required for audit, MSW (Municipal Solid Waste) permit, and associated closure/post closure requirements. This construction season will see the replacement of the roof, siding, and garage doors on the baler facility building. Staff will strive to minimize the effects on residents as well as commercial use of the landfill. Scheduled required shutdowns due to construction will be advertised well in advance to minimize impacts. The Leachate Treatment Plant has recently been plagued with calcium deposits on the filter membranes in the system. Staff, SUEZ (formerly General Electric Water/Wastewater), and Jacobs have been collaborating to identify the cause and solution for this event. Dramatic improvements have been seen in the amount of treated water passing through the associated systems. Staff and consultants are also working to reduce the ammonia discharge levels to consistently meet the discharge permit requirements. ADEC is aware of the concern and has been monitoring progress and cooperatively involved in the periodic permit exceedances. Staff has met with the borough’s Solid Waste Advisory Board and has discussed increased attention for public outreach and education. Staff has also been in contact with the ADEC regarding available curriculums that may be available for review to discuss potential implementation in the local schools and community groups. *No updated analysis was provided by staff for FY2021. The Borough amended its reserve policies with additional provisions for this fund. “Solid Waste Disposal and Collection Fund. The borough will maintain an operating reserve for adequate cash flow, budget contingencies and loan payment reserves. The cash flow reserve within the solid waste disposal and collection fund is an amount equal to six months of budgeted operating expenditures and the loan payment reserve is the following year’s total loan payments.” SIGNIFICANT BUDGET CHANGES: No significant budget changes. 198 MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL (CONT.) FY202 1 Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Penalties/Interest on Tax 525$ 4,912$ 4,000$ 1,797$ 4,000$ Licenses & Permits - - - - - Federal Revenue - - - 628 - PERS on Behalf Payment 35,503 21,847 36,200 (17,840) 47,797 Disposal Fees 3,751,605 4,435,772 4,460,460 4,123,040 4,473,000 Interest Earnings 32,435 306,914 50,000 240,268 110,000 Miscellaneous 61,738 29,614 20,300 28,578 25,000 Transfers In - - - - - Premium on Bonds 27,211 27,211 27,211 27,210 27,211 Use of Fund Balance - - 248,290 - 910,850 Total Revenues 3,909,016$ 4,826,270$ 4,846,461$ 4,403,680$ 5,597,858$ SOLID WASTE DISPOSAL Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 551,036$ 548,674$ 620,190$ 496,023$ 559,329$ Employee Benefits 327,430 279,572 476,491 125,093 431,923 Contracted Services 183,611 299,316 164,959 217,268 347,000 Legal Fees 14,897 7,134 5,000 3,160 5,000 Contributions 36,383 37,040 40,000 37,904 180,000 Support Goods & Services 569,383 534,920 749,050 575,175 1,256,000 Capital Outlay 7,000 - 455,000 267,870 15,000 Debt Service Interest 123,205 111,713 115,475 101,608 115,500 Closure/Post Closure 367,703 295,000 730,000 149,000 750,000 Other 205,000 150,000 160,000 160,000 150,000 Depreciation 293,749 288,234 278,188 280,420 672,055 Sub-Total 2,679,396$ 2,551,603$ 3,794,353$ 2,413,520$ 4,481,807$ LEACHATE TREATMENT PLANT Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel Services 139,894$ 143,721$ 154,463$ 177,298$ 189,676$ Employee Benefits 100,636 106,784 121,599 134,291 140,375 Professional Services 101,309 82,881 116,524 78,256 150,000 Support Goods & Services 221,665 274,884 357,756 148,054 389,000 Capital Outlay 10,756 92,714 165,940 112,234 27,000 Debt Service Interest 223,171 212,326 215,249 200,697 220,000 Other - 28,000 - - - Depreciation - - - 120 - Sub-Total 797,430$ 941,310$ 1,131,531$ 850,950$ 1,116,051$ Total Expenditures 3,476,827$ 3,492,913$ 4,925,884$ 3,264,470$ 5,597,858$ Revenues Expenditures 199 MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL (CONT.) FY202 1 Solid Waste Disposal Positions FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Solid Waste Mgr / Environmental Specialist 0 0 0 1 1 Baler/Landfill Supervisor 1 1 1 1 1 Baler Operator II 1 1 1 1 1 Baler Operator I 4 4 4 4 4 Landfill Attendant 0 0 0 0 1 Total Number of Employees 6 6 6 7 8 Leachate Treatment Plant Positions FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Treatment Plant Operator Lead 1 1 1 1 1 Treatment Plant Operator 0 0 0 0 0 Treatment Plant Operator Trainee 0 1 1 1 1 Total Number of Employees 1 2 2 2 2 Personnel 200 This page intentionally left blank. 201 HOSPITAL FUND FY202 1 PROGRAM DESCRIPTION: The Hospital Facilities Fund collects lease revenues and other resources to be used for care and maintenance of current hospital facilities. On April 22, 1997, the Kodiak Island Borough leased the Kodiak Island Hospital to Providence Health and Services of Alaska. The hospital is now known as the Providence Kodiak Island Medical Center. In FY2017, the original 20-year lease ended and a new lease was negotiated. The new lease began July 1, 2017. GOALS AND OBJECTIVES: To continue a healthy partnership between the Borough and Providence Health and Services of Alaska for the benefit of the community. ANALYSIS: As an enterprise fund (a business type fund), the lease annual revenue should match or exceed annual expenditures. Planned exceptions to this would be the use of fund balance for capital projects. SIGNIFICANT BUDGET CHANGES: • With a new lease in place, capital improvement projects will begin. These projects will be funded through operating transfers from the enterprise fund the Capital Project Fund 495. 202 HOSPITAL FUND (CONT.) FY202 1 Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Interest Earnings 23,850$ 101,495$ 30,000$ 50,053$ 30,000$ Providence Lease 1,384,272 1,384,272 1,384,272 1,384,272 1,384,272 Other - - - - - Use of Fund Balance - - 200,000 - - Operating Transfers In - - - - - Premium on Bonds - - - - - Total Revenues 1,408,122$ 1,485,767$ 1,614,272$ 1,434,325$ 1,414,272$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Employee Salaries 34,000$ 43,387$ 40,319$ 72,461$ 40,319$ Employee Benefits 2,788 - 18,794 - Support Goods & Services 22,818 91,314 50,298 170,641 311,861 Contracted Services - - - 5,760 - Depreciation 1,085,223 1,062,307 1,062,092 1,062,321 1,062,092 Debt Service Interest - - - - - Other 277,007 - - - - Operating Transfers 726,000 100,000 450,000 450,000 - Contributions - - - - - Total Expenditures 2,145,048$ 1,299,796$ 1,602,709$ 1,779,976$ 1,414,272$ Personnel FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Total Number of Employees - - - - - Revenues Expenditures Personnel There is no personnel for this fund. 203 LONG-TERM CENTER CARE FUND FY202 1 PROGRAM DESCRIPTION: In FY2013, the Borough constructed a 22-bed long-term care facility. This long-term care center is currently under lease to Providence Health and Services of Alaska until 2033. GOALS AND OBJECTIVES: To continue a healthy partnership between the Borough and Providence Health and Services of Alaska for the benefit of the community. ANALYSIS: As an enterprise fund (a business type fund), the lease annual revenue should match or exceed annual expenditures. This lease revenue for this fund is based, in part, on repayment of the revenue bond used to construct the facility and the cost of insurance. Therefore, there will be some fluctuation in revenues. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes. 204 LONG-TERM CENTER CARE FUND, CONT. FY202 1 Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2021 Estimated FY2021 Budget Interest Earnings 2,754$ 124,262$ 32,000$ 95,151$ 32,000$ LTC Lease 1,093,475 1,043,628 1,043,628 1,043,628 1,043,628 Other - - - - - Use of Fund Balance - - - - - Operating Transfers In - - - - - Premium on Bonds 57,804 57,804 57,804 57,804 57,804 Total Revenues 1,154,034$ 1,225,694$ 1,133,432$ 1,196,584$ 1,133,432$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Employee Salaries -$ -$ -$ 180$ -$ Employee Benefits - - - 147 - Legal Fees - - - - - Support Goods & Services 16,042 18,927 151,424 23,045 172,224 Contracted Services - 3,150 - - - Depreciation 518,933 518,933 518,933 518,933 518,933 Debt Service Interest 530,863 476,802 463,075 461,421 442,275 Other - - - - - Contributions - - - - - Total Expenditures 1,065,838$ 1,017,812$ 1,133,432$ 1,003,726$ 1,133,432$ Personnel FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Total Number of Employees - - - - - Personnel Revenues Expenditures There is no personnel for this fund. 205 KODIAK FISHERIES RESEARCH CENTER FY202 1 PROGRAM DESCRIPTION: The Kodiak Island Borough is the owner/landlord of this state-of-the-art fisheries research center. This facility is managed, operated, and maintained by the Engineering and Facilities Department of the Borough. The Kodiak Fisheries Research Center (KFRC) houses a multi-agency research team committed to the preservation, enhancement, and management of the North Pacific and Arctic Marine ecosystems. In addition, the KFRC contains a public interpretive center that provides an educational and interactive overview of marine life through graphic display panels, interactive computer programs and videos, a topographic map of Kodiak Island, a touch tank with live tide pool creatures, and a 10-foot diameter aquarium featuring local marine finfish, shellfish, and other marine organisms. Many school children, cruise ship passengers, and tourists have visited the facility. The main source of revenue from this facility is in the form of lease payments. GOALS AND OBJECTIVES: To provide a world-class research center for use by various tenants and for community enjoyment. • Manage, operate, and maintain the facility. • Continue a long-lasting landlord partnership with the tenants of KFRC. ANALYSIS*: Recent upgrades to the Direct Digital Controls (DDC) for the HVAC system at the facility have been completed. Significant improvements have been verified regarding the reaction time of the system and the improved notification of critical alarms for the facility. Staff anticipates the replacement of the raw seawater pumps to be completed this summer. The next large project anticipated for this facility is the upgrade or replacement of the fire alarm system software and required hardware due to the age of the system and original hardware. Staff anticipates the sprinkler system piping in the seawater intake structure will require replacement this year due to visible corrosion and age. Estimates will be prepared and a proposal package will be developed for this work. *No updated analysis was provided by staff for FY2021. SIGNIFICANT BUDGET CHANGES: No significant budget changes are projected at this time. Kodiak Fisheries Research Center Positions FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Interpretive Specialist/Receptionist 0.5 0.5 0.5 0.5 0.5 Maintenance Engineer 1 1 1 1 1 Total Number of Employees 1.5 1.5 1.5 1.5 1.5 Personnel 206 KODIAK FISHERIES RESEARCH CENTER (CONT.) FY2021 Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Federal Revenues $ - $ - $ - $ 1,257 $ - PERS on Behalf Payment 9,006 5,513 7,342 (4,535) 10,221 Interest Earnings 66,047 140,740 56,951 105,081 67,597 Rents & Royalties 826,282 819,899 800,117 787,043 700,750 Miscellaneous - Classified 365 268 - 252 - Operating Transfers In 45,000 45,000 45,000 45,000 - Use of Fund Balance - - 1,593,623 - 1,327,407 Total Revenues 946,699$ 1,011,420$ 2,503,033$ 934,098$ 2,105,975$ RESEARCH FACILITY Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel 184,973$ 172,492$ 170,850$ 182,278$ 178,393$ Employee Benefits 100,897 85,030 108,300 55,491 114,582 Support Goods & Services 10,352 14,227 24,553 13,178 53,800 Capital Outlay - - 35,000 - - Depreciation 699,011 696,476 698,485 (18,923) 697,000 Debt Service - Interest - - - - - Janitorial 60,784 54,023 79,540 53,844 75,500 Heating 77,905 68,401 90,000 62,592 85,000 Electrical 132,639 146,022 146,000 128,430 160,000 Plumbing 57,594 40,613 88,500 46,049 258,000 Air Conditioning 981 2,750 1,500 3,291 11,500 Elevators 2,250 2,363 2,500 900 2,700 Miscellaneous 33,619 176,034 614,672 122,593 444,500 Bldg Repair/Maint 21,050 30,917 25,000 3,685 25,000 Other - 180,000 100,000 210,000 - Sub-Total 1,382,055$ 1,669,347$ 2,184,900$ 863,408$ 2,105,975$ DORM FACILITY Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel 5,433$ 6,991$ -$ -$ -$ Employee Benefits 3,615 4,739 - - - Support Goods & Services - 1,060 - - - Janitorial 660 7,886 - - - Heating 9,705 8,370 - - - Electrical 4,219 6,108 - - - Plumbing 6,506 5,934 - - - Air Conditioning - - - - - Elevators - - - - - Miscellaneous 9,305 28,572 - - - Bldg Repair/Maint 839 12,635 - - - Sub-Total 40,280$ 82,296$ -$ -$ -$ Total Expenditures 1,422,335$ 1,751,643$ 2,184,900$ 863,408$ 2,105,975$ Expenditures Revenues 207 RESEARCH COURT APARTMENTS FY2021 PROGRAM DESCRIPTION: In FY2020 the new Research Court Apartment Fund was created. The facility has five furnished apartments, four of the apartments are one bedroom/one bath and one is two bedroom/one bath. This facility is managed, operated, and maintained by the Engineering and Facilities department of the Borough. GOALS AND OBJECTIVES: To provide residential leases to visiting fisheries research staff, Borough construction and engineering contractors. • Work with tenants to create affordable, short-term leases for the promotion of fisheries and professional contractor visits. ANALYSIS: The Research Court Apartments fund is a relatively new enterprise fund within the Kodiak Island Borough, created in FY2020. It is anticipated that the apartments will all be leased for FY2021. SIGNIFICANT BUDGET CHANGES: None. Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget PERS on Behalf Payment -$ -$ -$ -$ -$ Interest Earnings - - - 283 - Rents & Royalties - - - 49,560 30,000 Miscellaneous - Classified - - - - - Operating Transfers In - - - - - Use of Fund Balance - - - - 27,483 Total Revenues -$ -$ -$ 49,843$ 57,483$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Personnel -$ -$ 7,402$ 6,280$ 4,165$ Employee Benefits - - 4,606 4,137 3,018 Support Goods & Services - - - 394 - Janitorial - - - 4,037 5,000 Heating - - 11,500 5,033 11,500 Electrical - - 5,800 4,735 10,000 Plumbing - - 12,000 11,089 12,000 Air Conditioning - - - - - Depreceiation - - - 715,399 Elevators - - - - - Miscellaneous - - 4,600 4,804 11,800 Bldg Repair/Maint - - 350,000 249 - Total Expenditures -$ -$ 395,908$ 756,157$ 57,483$ Positions FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Total Number of Employees 0 0 0 0 0 Expenditures Revenues Personnel There are no personnel for this fund. 208 911 SERVICE FY2021 PROGRAM DESCRIPTION: This program is funded solely by a levy on individual phone lines in the area served. Although the Borough collects the revenue, this money is passed through to the City of Kodiak since they administer the operations of the service. The program provides for maintenance of an enhanced emergency response call-in system. The system hardware (located in the City of Kodiak dispatch center) displays owner and address information from the phone number calling 911. This system ensures appropriate and timely response to anyone calling, even when they are incapable of conversing with the dispatcher. The Borough’s Community Development Department is responsible for maintenance of the mapping and addressing that supports the 911 system. GOALS AND OBJECTIVES: To continue a healthy partnership between the Borough and City of Kodiak for the benefit of the community’s 911 service. • Provide accurate and timely map and addressing updates to the City of Kodiak. ANALYSIS: In 2018, by request of the City, the Borough raised the monthly per line fee from $0.75 to $2 along with adding a provision to tax cellular phone lines, which were not taxed previously. SIGNIFICANT BUDGET CHANGES: No significant budget changes are projected at this time. Revenues FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Interest Earnings -$ -$ -$ -$ Customer Charges 255,617 300,078 250,000 295,447 300,000 Total Revenues 255,617$ 300,078$ 250,000$ 295,447$ 300,000$ Expenditures FY2018 Actual FY2019 Actual FY2020 Budget FY2020 Estimated FY2021 Budget Allocated Salaries 1,500$ 1,500$ 1,500$ 1,500$ 1,500$ Contracted Services 253,983 298,265 248,350 293,658 298,200 Support Goods & Services 133 296 150 282 300 Total Expenditures 255,617$ 300,060$ 250,000$ 295,439$ 300,000$ Personnel FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Budget Total Number of Employees - - - - - Revenues Expenditures Personnel There is no personnel for this fund. 209 This page intentionally left blank. ACRONYMS 210 TERM STANDS FOR ACWF Alaska Clean Water Fund ADA Americans with Disabilities Act ADEC Alaska Department of Environmental Conservation ADEED Alaska Department of Education & Early Development AHFC Alaska Housing Finance Corporation AICPAS American Institute of Certified Public Accountants. A member organization representing the accounting profession. They set ethical standards, auditing standards and develop the CPA exam. AML Alaska Municipal League AS Alaska Statute BLM Bureau of Land Management. A federal department responsible for managing most vacant federally owned land. BVFD Bayside Volunteer Fire Department CAFR Comprehensive Annual Financial Report CDD Community Development Department CIP Capital Improvement Program CPI Consumer Product Index DDC Direct Digital Control DOR Alaska Department of Revenue DHS & EM Alaska Department of Homeland Security & Emergency Management EMS Emergency Medical Services EMT Emergency Medical Technician EPA Environmental Protection Agency FTE Full-Time Equivalent FWS Fish and Wildlife Service FY Fiscal Year GAAP Generally accepted accounting principles GASB Governmental Accounting Standards Board GFOA Government Finance Officers Association TERM STANDS FOR GIS Geographic Information System GPM Gallons per minute HVAC Heating, Ventilation and Air Conditioning ICS Incident Command System IMT Incident Management Team ISO Insurance Service Office IT Information Technology KEA Kodiak Electric Association KFRC Kodiak Fisheries Research Center KIB Kodiak Island Borough KIBC Kodiak Island Borough Code KIBSD Kodiak Island Borough School District LEPC Local Emergency Planning Committee LTP Leachate Treatment Plant MATR Maximum Allowable Tax Revenue MVRT Motor Vehicle Registration Tax N/A Not applicable NFPA National Fire Protection Association NMFS National Marine Fisheries Service, a subsidiary of NOAA NOAA National Oceanic and Atmospheric Administration OSHA Occupational Safety and Health Administration PC Personal computer PERS Public Employees’ Retirement System PILT Payment In Lieu of Tax P&R Parks & Recreation P&Z Planning and Zoning Commission RFP Request for Proposal RSA Road Service Area R&R Renewal and Replacement SARA Title III Title III of the Superfund Amendments and Reauthorization Act; commonly known as the Emergency Planning & Community Right-to- know Act SAWS Siren Alert Warning System ACRONYMS 211 TERM STANDS FOR SCBA Self-contained Breathing Apparatus SCERP Small Community Emergency Response Plan SWAMC Southwest Alaska Municipal Conference SWAB Solid Waste Advisory Board TBD To Be Determined TCA Tax Code Area USCG United States Coast Guard UST Underground Storage Tank VOC Volatile Organic Compound WBFD Womens’ Bay Fire Department GLOSSARY 212 ACCRUAL BASIS: The basis of accounting under which the financial effects of a transaction and other events and circumstances that have cash consequences for the governmental entity are recorded in the period of which those transactions, events and circumstances occur, rather than only in the periods in which cash is received or paid by the entity. ADOPTED BUDGET: Refers to the budget amounts as originally approved by the Kodiak Island Borough Assembly at the beginning of the year, and to the budget document which consolidates all beginning-of-the-year operating appropriations and new capital project appropriations. ANNUAL BUDGET: A budget developed and enacted to apply to a single fiscal year. APPROPRIATION: The legal authorization granted to the legislative body of a government that permits officials to incur obligations and make expenditures of governmental resources for specific purposes. Appropriations are usually limited in amounts and time that they may be expended. ASSEMBLY: The governing body of the Kodiak Island Borough. Seven members and one mayor are elected at large by the voters of the Kodiak Island Borough. ASSESSED VALUATION: The valuation set upon all real and personal property in the Borough that is used as a basis for levying taxes. Tax-exempt property is excluded from the assessable base. ASSESSED VALUE: The fair market value placed upon personal and real property owned by taxpayers. State law requires all taxable property to be assessed annually at 100% of market value. AT LARGE: An elected official who is elected to serve an entire area rather than one area or subdivision. AUDIT: A systematic collection of the sufficient, competent evidential matter to attest to the fairness of management’s assertions in the financial statements or to evaluate whether management has efficiently carried out its responsibilities. The auditor obtains this evidential matter through inspections, observations, inquiries, and confirmations with third parties. BALANCED BUDGET: A budget in which planned funds available equal planned expenditures. BASIS OF ACCOUNTING: The term referring to when revenues, expenditures, expenses, and transfers (and the related assets and liabilities) are recognized in the accounts and reported in the financial statements. Specifically, it relates to the timing of the measurements made, regardless of the nature of the measurement, on either cash or accrual method. BOARD OF EQUALIZATION: An official board of the Kodiak Island Borough that holds annual hearings for the purpose of settling disputes regarding the assessed value of property within the Borough. BOND: A written promise to pay a specified sum of money, called the face value or principal amount, at a specified date in the future, called the maturity date, together with periodic interest at a specified date. BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for a given period of time and the purposed means of financing them. Since the term budget designates the financial plan presented to the appropriating governing body for adoption, and sometimes, the plan finally approved by that body. BUDGET DOCUMENT: The official written statement prepared by the Borough’s administrative staff to present a comprehensive financial program to the Borough Assembly. The first part provides overview information, together with a message from the budget-making authority, and a summary of the proposed expenditures and the means of financing them. The second consists of schedules supporting the summary. These schedules show in detail the past year’s actual revenues, expenditures, and other data used in making the GLOSSARY 213 estimates. The third part is composed of personnel and salary schedules, the chart of accounts and a glossary. BUDGET MESSAGE: A general discussion of the proposed budget presented in writing by the budget-making authority to the Borough Assembly. A budget message contains an explanation of the principal budget items, an outline of the Borough’s experience during the past period and its financial status at the time of the message, and recommendations regarding the financial policy for the coming period. CAPITAL ASSET: A tangible asset, with a useful life longer than one year that is not intended for sale in the regular course of operations. CAPITAL OUTLAY: Expenditures that result in the accumulation of items such as tools, desks, machinery, and vehicles costing more than $5,000, each having a useful life of more than one year, and that are not consumed through use are defined as capital items. CAPITAL PROJECT: A project that is not permanently ongoing in nature and is either to construct new facilities or significant, long-term renovations to existing facilities. CAPITAL PROJECTS FUND: Funds established to account for financial resources to be used for the acquisition or construction of major capital facilities (other than proprietary and trust funds). COMPONENT UNIT: A separate government unit, agency, or non-profit corporation that is combined with other component units to constitute the reporting entity in conformity with GAAP. COMPREHENSIVE ANNUAL FINANCIAL REPORT: The official annual report of a government including: (a) the five combined financial statements in the combined statement overview and their related notes; (b) combining statements by fund type and individual fund; and (c) account group financial statements prepared in conformity with GAAP and organized into a financial report pyramid. It also includes support schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, required supplementary information, extensive introductory material and detailed statistical sections. CONTINGENCY: Those funds included in the budget for the purpose of providing a means to cover minor unexpected costs during the budget year. CONTRACTUAL SERVICES: Items of expenditure from services that the Borough receives primarily from an outside company. DEBIT SERVICE FUNDS: Funds established to account for the accumulation of resources for and the payment of general long-term debt principal and interest that resulted from the issuance of bonds. DEFICIT: The excess of expenditures over revenues during an accounting period, or in the case of proprietary funds, the excess of expenses over revenues during an accounting period. DEPRECIATION: This occurs when the cost of an asset is spread over its useful life. ELECTORATE: All residents who are eligible to vote in an election. ENCUMBRANCES: Commitments related to unperformed contracts, in the form of purchase orders or contracts, for goods or services. Used in budgeting, encumbrances are not expenditures or liabilities, but represent the estimated amount of expenditures that will result if unperformed contracts in process are completed. ENTERPRISE FUND: A propriety fund established to account for operations that are financed and operated in a manner similar to a private business enterprise. In this case, the intent of the governing body is that the expenses, including depreciation, of providing goods and services to the general public on a continuing basis will be financed or recovered primarily through user charges. GLOSSARY 214 EXPENDITURE: A decrease in net financial resources. Expenditures include current operating expenses requiring the present or future use of net current assets, debt service and capital outlays, intergovernmental grants, entitlements and shared revenues. EXPENSE: An outflow or other consumption of assets or incurrence of liabilities (or a combination of both) from delivering or producing goods, rendering services, or carrying out other government units, and/or other funds. FISCAL YEAR: The twelve-month accounting period to which the annual operating budget applies and at the end of which a government determines the financial position and results of its operations. The Borough’s fiscal year extends from July 1 to the following June 30. FUND: A fiscal and accounting entity with a self-balancing set of accounts in which cash and/or other financial resources, all related liabilities, and residual equities or balances and changes therein are recorded and segregated to carry on specific activities or attain certain objectives in accordance with special regulations, restrictions, or limitations. FUND BALANCE: The difference between the total assets available for appropriation and the total count of current liabilities of the fund. FUND TYPE: The three broad fund categories of governmental accounting are subdivided into seven fund types. The seven types are: General, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal Service, and Trust and Agency. GENERAL FUND: A type of governmental fund used to account for regular day-to-day Borough operations revenue and expenditures, including transactions which are not accounted for in specific purpose (special revenue) funds. GENERAL OBLIGATION BONDS: Debts that are backed by the full faith and credit of a government agency. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES: Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP encompasses the conventions, rules and procedures necessary to define accepted accounting practice at a particular time. They include not only broad guidelines of general applications, but also detailed practices and procedures. GAAP provides a standard for measuring financial presentations. GOAL: The overall purpose(s) or reason(s) for a department or fund to exist which is tied to the Borough’s Strategic Plan. GOVERNMENT FINANCE OFFICERS ASSOCIATION: A professional association of state, provincial and local government finance officers. GOVERNMENT FUND TYPES: Funds used to account for the acquisition, use, and balances of expendable financial resources and the related current liabilities, except those accounted for in the proprietary funds and fiduciary funds. GOVERNMENTAL ACCOUNTING STANDARDS BOARD: The authoritative accounting and financial reporting standard-setting body for state and local governments. IN-KIND SERVICES: These are services that the Borough pays directly on behalf of the school district, these are services such as audit expenses and insurance. INTERFUND TRANSFERS: These are amounts transferred from one fund to another, including reimbursements, residual equity transfers and operating transfers. GLOSSARY 215 INTERGOVERNMENTAL REVENUE: Revenues from other governments; usually in the forms of grants, entitlements, shared revenues or payments in lieu of taxes. INVESTMENT: Securities held for the production of income in the form of interest, in compliance with the policies set out by Borough Code. LAPSE: As applied to appropriations, the automatic termination of an appropriation. Except for indeterminate appropriations and continuing appropriations, an appropriation is made for a specific period of time. When this time is reached, the appropriation will ‘lapse.’ LEVY: To impose taxes, special assessments, or service charges for the support of government activities. It is also used to denote the total amount of taxes, special assessments, or service charges imposed by a government. LIABILITY: Debt or other legal obligation arising from the present obligation of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. MAJOR FUND: Any fund where the assets, revenues or expenditures are at least 10 percent of the total of the overall fund type; and its assets, revenues or expenditures is at least five percent of the overall total of the government’s assets, revenues or expenditures; or is of major public interest. Major funds meeting these requirements are reported as a separate column in the basic financial statements of the comprehensive annual financial report (CAFR). MEASUREMENT FOCUS: This accounting convention determines (1) which assets and which liabilities are included on a government’s balance sheet and where they are reported, and (2) whether an operating statement presents information on the flow of financial resources (revenues and expenditures) or information on the flow of economic resources (revenues and expenses). MILL: The measure of the rate of property taxation, representing one one-thousandth (0.001) of a dollar of assessed value. MILLAGE RATE: The tax rate on property, based on mill(s). A rate of 1 mill applied to a taxable value of $100,000 would yield $100 in taxes. MODIFIED ACCRUAL BASIS OF ACCOUTING: A basis of accounting in which revenues and other financial resources are recognized when they become susceptible to accrual, that is, when they are both measurable and available to finance expenditures of the current period. “Available” means collectable in the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recognized when the fund liability is incurred, except for (1) inventories of materials and supplies that may be considered expenditures either when purchased or when uses, and (2) prepaid insurance and similar items that may be considered expenditures either when paid for or when consumed. All government funds, except trust funds, and agency funds are accounted for using the modified accrual basis of accounting. NON-MAJOR FUND: Any fund that does not meet the requirements for a major fund. Non-major funds are consolidated into a single column in the basic financial statements of the comprehensive annual financial report (CAFR). OBJECTIVE: An objective is a specific way or action in which a department or fund will accomplish a specific goal. OBSOLETE: A piece of equipment or a system that is out of date, of an outmoded type or model in need of replacement. GLOSSARY 216 OPERATING BUDGET: Plans of current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing, acquisition, spending and service delivery activities of a government are controlled. The law usually requires the use of an annual operating budget. Annual operating budgets are essential to sound financial management and should be adopted by every government. OPERATING TRANSFERS: All inter-fund transfers other than residual equity transfers. ORDINANCE: A formal legislative enactment by the legislative body which, if not in conflict with any highest form of law, has the full force and effect of law within the boundaries of the municipality to which it applies. The difference between an ordinance and a resolution is that the latter requires less legal formality and has a lower legal status. Revenue-raising measures, such as the imposition of taxes, special assessments and services charges usually require ordinances. OTHER FINANCING SOURCES: Government funds, general long-term debt proceeds, land lease payments, land sale payments, proceeds from the sale of fixed assets, operating transfers in, service charges and fees for government services. OVERSIGHT RESPONSIBILITY: The basic, but not the only, criterion for including a government department, agency, institution, commission, public authority, or other organization in a government unit’s reporting entity for general purpose financial reports. Oversight responsibility is derived from the government unit’s power and includes, but is not limited to, financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations and accountability for fiscal matters. PERFORMANCE INDICATOR: A measurable standard in which a department or fund can show that an objective is being accomplished. PROGRAM: An organized set of related work activities that are directed toward a common purpose or goal and represent a well-defined expenditure of Borough resources. PROGRAM BUDGET: A budget which structures budget choices and information in terms of programs and their related activities (e.g., repairing roads, treating water, etc.), provides information on what each program is committed to accomplish in the long term (goals) and in the short term (objectives) and measures the degree of achievement of program objectives (performance measures). PROGRAM DESCRIPTION: A program description describes the function of the program, the various activities involved in the program, and other pertinent information about the program. It answers the question “What does this program do?” PROGRAM GOAL: A program goal is a general statement on the intended effect or purpose of the program’s activities. It includes terms such as “provide” (a service), “supply” (a given need), “control, reduce or eliminate” (an occurrence), “maintain” (standards), or “maximize” (quality). A goal is not limited to a one- year time frame and should generally not change from year to year. A goal statement describes the essential reason(s) for the program’s existence. PROGRAM OBJECTIVE: Objectives are statements of the intended beneficial and/or tangible effects of a program’s activities. They are measurable and related to the proposed budget year. They are specified targets toward which a manager can plan, schedule work activities, and make staff assignments. Objectives should be quantifiably be addressed in terms such as “increase” (an activity), “maintain” (a service level), “reduce” (the incidence), or to “eliminate” (a problem). PROPERTY TAX: A tax levied based on the assessed value of a property. GLOSSARY 217 PROPRIETARY FUND: A type of fund that accounts for government operations that are financed and operated in a manner similar to private business enterprises. The only proprietary funds used by the Borough are the Enterprise Funds. PURCHASE ORDER: A document authorizing the delivery of specified merchandise or the rendering of certain services for a stated, estimated price. Outstanding (unfulfilled) purchase orders are called encumbrances. REGULAR MEETING: A meeting occurring on the second and third Thursday of each month in which Assembly action is taken, comments are on record and other official business is conducted. REQUEST FOR PROPOSAL: A written request asking vendors to submit bids with specifications and pricing that fits the scope of the request. This can be done for products or services. RESOLUTION: A special or temporary order of a legislative body; an order of a legislative body requiring less legal formality than an ordinance or statute. Resolutions have a lower legal status than an ordinance or statute. RETAINED EARNINGS: An equity account reflecting the accumulated earnings of an enterprise or internal service fund. REVENUE: Increases in the net current assets of a governmental type other than expenditure refunds and residual equity transfers; increases in the net total assets of a proprietary fund type other than expense refunds, capital contributions, and residual equity transfers. General long-term debt proceeds and operating transfers-in are classified as “other financing sources” rather than revenues. Operating transfers, as in governmental fund types, are classified separately from revenues. SEVERANCE TAX: A tax on the removal of natural resources from the Kodiak Island Borough. Major resources include fish, timber and gravel. The severance tax rate is the same as the mill rate. SPECIAL ASSESSMENTS: Fees levied on property owners to construct an asset that benefits the property holder. These assessments are levied until the asset is paid for. The amount of the assessment can be based on value, size, road frontage, etc. SPECIAL REVENUE FUND: A fund used to account for the proceeds of specific revenue sources (other than expendable trust or major capital projects) that are legally restricted to expenditure for specific purposes. TAX RATE: The level at which taxes are levied. For example, a property tax rate may be proposed to be $0.575 per $100 of assessed value or 5.75%. TAX LEVY: The total dollar amount of tax that optimally should be collected based on tax rates and assessed values of personal and real properties. WORK SESSION: An unofficial meeting of the Borough Assembly in which discussions take place, questions are posed for staff to answer and review of upcoming regular meeting packet material is conducted. APPENDIX 218 Map of location of KIB Assembly Work Sessions, KIBSD Conference Room APPENDIX 219 ::Tide GateBoroughGeneralEducationSupportSchool DebtServiceRenewal & Replacement : :City of Womens BayService Area #1Monashka BayBayviewProtection Area #1Womens BayAirportWoodland AcresTrinity IslandMission LakeFundFundFundFund:KodiakFundFundFundFundFundFundFundFundFundFund100201300469:240242244246250252254260261262TotalTax Code Area (TCA):TCA 12.756.451.550.00:2.0012.75City of Kodiak::TCA 22.756.451.550.00:1.501.500.1013.85Road Service Area No. 1:Fire Protection Area No. 1:Woodland Acres Street Lighting::TCA 32.756.451.550.00:1.2211.97KIB Airport Fire Protection Area::TCA 42.756.451.550.00:1.471.5013.72Bayview Road Service Area:Fire Protection Area No. 1::TCA 52.756.451.550.00:10.75Entire Borough:(excluding special assessment areas)::TCA 62.756.451.550.00:1.991.5014.24Monashka Bay Road Service Area:Fire Protection Area No. 1: *Properties with no road service2.756.451.550.00:1.5012.25:TCA 72.756.451.550.00:1.501.5013.75Road Service Area No. 1:Fire Protection Area No. 1: *Properties with no road service2.756.451.550.00:1.5012.25:TCA 712.756.451.550.00:1.501.500.2514.00Road Service Area No. 1:Fire Protection Area No. 1:Mission Lake Tide Gate Area: *Properties with no road service2.756.451.550.00:1.500.2512.50:TCA 722.756.451.550.00:1.501.500.1513.90Road Service Area No. 1:Fire Protection Area No. 1:Trinity Islands Street Lighting::TCA 82.756.451.550.00:1.5012.25Fire Protection Area No. 1::TCA 92.756.451.550.00:2.501.2514.50Womens Bay Road Area:Womens Bay Fire Area: *Properties with no road service2.756.451.550.00:1.2512.00Kodiak Island Borough Mill Rates - Fiscal Year 2021, Tax Year 2020 AREAWIDENON-AREAWIDERoad ServiceFire ProtectionStreet Light APPENDIX 220 This page is left intentionally blank. APPENDIX 221 Kodiak Island Borough Final - Maximum Local Tax Revenue Computation FY2021 Budget (July 2020 - June 2021) TY2019 Real & Personal property taxes levied before Mandatory Exemptions 35,702,956$ 7,131,828$ Less: Exemption for Owner Non-Profit/Native (Federal & State mandate)22,040,236$ 4,403,127$ Exemptions for Senior Citizens/Veterans (State mandate)837,445$ 167,302$ $20,000 Personal Property & Fishing Gear exemption (Local mandate)59,489$ 11,091$ Total Adjustments 33,108$ 22,970,278$ -$ 4,581,520$ TY19 Net Real & Personal Taxes 12,732,678$ 2,550,308$ Plus: Estimated FY2020 Tax revenues for: Excise - Tobacco 405,000$ Excise - Marijuana -$ Severance - Fish 1,375,000$ Severance - Timber 30,000$ Severance - Mineral (gravel)4,000$ Sales - Transient Accommodations (Excluding City of Larsen Bay) Non-Ad Valorem - Aircraft 27,000$ Non-Ad Valorem - Motor Vehicle -$ Total Adjustments (14,158)$ 1,826,842$ Debt Service in FY2021 Debt Service Principal, Interest & Service Payments 8,073,670$ Less: Debt Service Reimbursements Received -$ Less: Motor Vehicle Registration Tax Received 210,000$ Total Adjustments -$ 7,863,670$ Adjusted prior year taxes levied, plus all other tax revenues 14,559,520$ - Plus:Adjustment for inflation (2019 Inflation Rate using the Anchorage Consumer Price index - Urban = 1.40%)1.40%203,833$ - FY20 Gross Maximum Local Tax Revenue Allowed, Before Exclusions 14,763,353$ FY21 Gross Maximum Debt Service Tax Revenue Allowed, Before Exclusions 7,863,670$ Plus Exclusions for: 1 Taxes on New Construction/Improvements -$ 2 FY2020 Debt Service less reimbursements (adjmt for FY17 veto)-$ 3 Voter Approved Services -$ 4 Judgements Paid in FY2020 -$ 5 Special Appropriations on an emergency basis -$ FY20 Gross Maximum Local Tax Revenue Allowed, After Exclusions 14,763,353$ FY21 Gross Maximum Debt Service Tax Revenue Allowed, After Exclusions 7,863,670$ Estimated FY2021 - Budgeted Tax Revenues Real & Personal Property Tax 13,208,853$ Excise - Tobacco 400,000$ Excise - Marijuana 2,500$ Severance - Fish 1,100,000$ Severance - Timber 20,000$ Severance - Mineral (gravel)4,000$ Sales - Transient Accommodations (Excluding City of Larsen Bay) Non-Ad Valorem - Aircraft 28,000$ Non-Ad Valorem - Motor Vehicle -$ -$ 2020 Net Maximum Local Tax Revenue Allowed (for FY2021 Budget)14,763,353$ 2021 Net Maximum Debt Service Tax Revenue Allowed (for FY2021 Budget)7,863,670$ Area-Wide Funds Area-Wide 'Cap' Exempt Fund 3 Funds (Gen 100, Educ 201, R&R 469)1 Fund (Debt Service 300) APPENDIX 222 Kodiak Island Borough Final - Maximum Local Tax Revenue Computation, con't FY2021 Budget (July 2020 - June 2021) Non-Area-Wide Service Districts 240 242 244 246 250 252 254 260 261 262 240,631$ 512,361$ 59,226$ 17,632$ 787,363$ 125,053$ 20,003$ 6,206$ 2,146$ 1,809$ 7,549$ 47,636$ -$ -$ 95,688$ 4,441$ 1,319$ 208$ -$ 50$ 18,783$ 36,046$ 7,102$ 2,700$ 56,118$ 9,391$ -$ 390$ 225$ 188$ 675$ 1,042$ 41$ -$ 1,134$ 338$ 254$ 13$ 2$ -$ (784)$ (260)$ 300$ 142$ (342)$ (393)$ -$ 15$ -$ 214,408$ 427,897$ 51,783$ 14,790$ 634,765$ 111,276$ 18,430$ 5,580$ 1,919$ 1,571$ 214,408$ 427,897$ 51,783$ 14,790$ 634,765$ 111,276$ 18,430$ 5,580$ 1,919$ 1,571$ 3,002$ 5,991$ 725$ 207$ 8,887$ 1,558$ 258$ 78$ 27$ 22$ 217,410$ 433,888$ 52,508$ 14,997$ 643,652$ 112,834$ 18,688$ 5,658$ 1,946$ 1,593$ 217,410$ 433,888$ 52,508$ 14,997$ 643,652$ 112,834$ 18,688$ 5,658$ 1,946$ 1,593$ 217,410$ 433,888$ 52,508$ 14,997$ 643,652$ 112,834$ 18,688$ 5,658$ 1,946$ 1,593$ 217,410$ 433,888$ 52,508$ 14,997$ 643,652$ 112,834$ 18,688$ 5,658$ 1,946$ 1,593$