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Kodiak Island h Borou
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_ Popular Annual Financial Report
For Fiscal Year Ending June 30, 2024
Government, Geographic Location & Population
The Kodiak Island Borough was incorporated in 1963 as a sec-
ond class Borough and currently operates under a manager -
form of government. The Manager is hired by the Assembly and
oversees the day-to-day business of the Borough. The seven
member Assembly, along with the Mayor, are elected by the
people. The day-to-day business of the Borough is conducted
within seven departments: Manager, Clerk, Finance, Infor-
mation Technology (IT), Assessing, Community Development
and Engineering/Facilities.
Kodiak Island lies at the western border of the Gulf of Alaska
and is approximately 250 air miles southwest of Anchorage,
Alaska. The island is accessible only by boat or plane and is the
second largest island in the United States. In total, the Borough
encompasses 6,560 square miles and currently serves an esti-
mated population of 12,721.
Services
The Borough has a full range of services, including: general gov-
ernment, fire protection, first -response emergency medical ser-
vices, health care facilities, road and other infrastructure con-
struction and maintenance, community and economic develop-
ment and solid waste disposal. Additionally, the Borough sup-
ports tourism development, local parks, and cultural and recre-
ational activities. The Borough is financially responsible for a
legally separate school district which is reported separately
within the Borough's financial statements. Additional infor-
mation on this legally separate entity can be found in the Annu-
al Comprehensive Financial Report.
Economics
Kodiak's number one economic driver is the commercial fishing
industry. Seafood processing generates the most revenue in the
form of severance tax, property tax, and employment. The Port
of Kodiak has consistently ranked among the top ten ports in
the U.S. in both landed value and landed weight. For 2023, the
National Oceanic and Atmospheric Administration's National
Marine Fisheries Service ranked Kodiak as eighth in the nation,
with 310 million pounds of landed weight and $94 million dol-
lars of landed value.
In addition to fishing, tourism was a solid revenue stream that
provided both transient accommodations tax and a commercial
passenger vessel tax collected from cruise lines. Despite a
downturn due to COVID-19, tourism numbers returned to pre -
pandemic levels for transient accommodation revenues, but
commercial passenger vessel taxes are still in recovery.
Kodiak Island is home to the largest US Coast Guard Base in the
United States, employing over 1,350 people and providing vital
monitoring and search & rescue operations.
Kodiak, Alaska
Map of the Kodiak Island Borough
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BOROUGH
About The Popular Annual Financial Report
The Popular Annual Financial Report is intended to brief the
residents of the Kodiak Island Borough on the financial
standing of their municipal government. The information in
this report was drawn from the FY2024 Annual Comprehen-
sive Financial Report. The annual comprehensive financial
report conforms to the generally accepted accounting prin-
ciples and includes audited financial statements, as well as
more detailed information than presented here. Although
the financial numbers in this Popular Annual Report come
from an audited source, they are presented in this report in
a condensed and unaudited format.
For copies of the reports, visit the Borough's office located
at 710 Mill Bay Road, Kodiak, Alaska, or on our website at
www.kodiakak.us.
We hope you find the report to be informative. We wel-
come your comments, questions, and suggestions.
Aimee Williams, Borough Manager
Dora Cross, Finance Director
Kodiak Island Borough, Kodiak Alaska Popular Annual Financial Report For Fiscal Year Ending June 30, 2024
BOROUGH POPULATION AND STATISTICAL INFORMATION
FY2022 FY2023 FY2024
Borough Population
12,900
12,832
12,721
Annual Unemployment Rate in the Borough
3.9%
3.0%
3.6%
Percentage of Owner -Occupied Housing in the Borough*
53.8%
56.6%
60.7%
Median Gross Rent within the Borough*
$1,483
$1,646
$1,669
Median Household Income within the Borough*
$83,765
$91,138
$83,716
Percent of Persons Living in Poverty within the Borough*
8.5%
8.5%
7.5%
KIBSD Student Enrollment
2,275
2,254
2,109
KIBSD Employees (Teachers and Support Personnel)
431
464
408
Number of Schools in the Borough
13
13
13
Number of Borough Employees
39
38
39
* United States Census Bureau
FINANCIAL STRUCTURE
The Borough maintains 34 separate funds to account for governmental services. They are generally established based upon their legal
basis and objectives. These funds are grouped into two separate categories: Governmental Funds and Proprietary Funds. This report
focuses on the funds that interest most residents : General, Education Support and Municipal Solid Waste Collection & Disposal.
Governmental Fund Name
General Fund
GOVERNMENTAL FUNDS
(Reports the basic service activities provided by the Borough)
Activity or Purpose of Fund
Operating fund for the Borough. Departments within the fund are: the Assembly, Assessing, Clerks, Com-
munity Development, Engineering & Facilities, Finance, Information Technology (IT) and the Manager.
Special Revenue Funds Operating funds for specific revenue sources. These include: education, facilities, tourism, emergency
planning and neighborhood service districts such as road, fire and street lighting, as well as maintenance
of Borough buildings and grounds.
Debt Service Fund Operating fund for the payment of general long-term debt principal, interest and other related costs.
Currently the fund services general obligation bonds for school related projects.
Capital Project Funds I Operating fund for the acquisition, construction, or major repairs of capital facilities and equipment.
GOVERNMENTAL FUNDS - FUND BALANCE 6/30/24
■ General Fund ■ Special Revenue Funds
$20,310,1451 1 $47,549,469
■ Debt Service Fund
$419,519
Capital Funds
1 $14,090,280
Kodiak Island Borough, Kodiak Alaska Popular Annual Financial Report For Fiscal Year Ending June 30, 2024
GOVERNMENTAL FUNDS
(Reports the basic service activities provided by the Borough)
Governmental Fund Highlights:
• General Fund - Fund balance increased by $2.8 million during the current fiscal year. Total revenues were $2.4 million more than
anticipated due to $2.1 million more in investment income and $584 thousand more in intergovernmental revenues. Expenditures
were $1 million less than budgeted due largely to six vacant positions in various departments. Total fund balance is $20.3 million
and meets the minimum required reserve balance of $3.5 million.
• Education Support (Special Revenue Fund) - Fund balance decreased by $325 thousand and has a negative balance of $511 thou-
sand at year-end. A lost court case resulted in the refund of tax revenues, which was the key factor of the deficit.
Statement of Revenue, Expenditures and Changes in Fund Balance (Deficits)
Total of All Governmental Funds
General Education
Fund Support Fund
(Only) (Only)
FY2022 FY2023 FY2024 FY2024 FY2024
Revenues
Property Taxes $17,655,437
$18,121,497
$17,745,545 $2,114,661
$11,879,865
Severance Taxes 1,677,595
11597,327
990,570 990,570
-
Excise Taxes 683,971
829,274
804,223 804,223
-
Intergovernmental 18,644,026
9,967,172
11,785,651 4,060,437
-
Services, Fees, Investments & (1,240,593)
Other Miscellaneous Revenue
2,787,746
6,595,557 2,493,758
-
Total Revenues $37,420,436
$33,303,016
$37,921,546 $10,463,649
$11,879,865
Expenditures
General Government $5,017,074
$5,062,574
$6,043,634 $5,478,077
-
Public Safety 543,862
725,305
745,143 152,310
-
Community & Economic Devel- 1,514,449
opment
944,084
870,702 783,858
-
Emergency Preparedness 10,983
16,460
17,810 17,810
-
Health & Social Services 169,647
150,000
158,819 158,819
-
Parks, Culture & Recreation 42,521
33,322
26,432 26,432
-
Service District Maintenance 856,657
700,146
618,344 -
-
Primary & Secondary Education 10,521,511
12,035,259
12,312,485 107,220
12,205,265
Capital Outlay 654,148
1,148,088
3,520,875 -
-
Debt Service 7,559,024
7,566,316
7,562,362 -
-
Total Expenditures $26,889,876
$28,381,554
$31,876,606 $6,724,526
$12,205,265
Other financing sources (uses) $15,440
$11,157
$15,810 ($979,808)
-
Increase (decrease) in fund bal- $10,546,000
$4,932,619
$6,060,750 $2,759,315
$(325,400)
ance
Fund Balance, beginning of 60,830,044
71,376,044
76,308,663 17,550,830
(185,907)
year, as restated
Fund Balance, at end of year $71,376,044
$76,308,663
$82,369,413 $20,310,145
511 307
4
Kodiak Island Borough, Kodiak Alaska Popular Annual Financial Report For Fiscal Year Ending June 30, 2024
PROPRIETARY FUNDS:
(Reports the business -type activities provided by the Borough)
Proprietary Fund Name Activity or Purpose of Fund
• . . - . -
• o
Accounts for the collection and disposal of solid waste and for the operation of the leachate
treatment plant.
Hospital Facility
Accounts for the Borough -owned hospital.
Long -Term Care Center
Accounts for the Borough -owned long-term care center.
Kodiak Fisheries Research Center
Accounts for the Borough -owned Kodiak Fisheries Research Center.
Research Court Apartments
Accounts for the Borough -owned Research Court Apartments.
911 Services
Accounts for fees collected from all phone lines for a 911 emergency system. This is a pass
through to the City of Kodiak, therefore there is no fund balance at year-end.
PROPRIETARY FUNDS - NET POSITION 6/30/24
■ Municipal Solid Waste ■ Hospital ■ Long Term Care Center Kodiak Fisheries Research Center ■ Research Court Apartments
$19,946,155 $17,745,773 $9,084,594 — $9,344,142 ` $342,219
M
Proprietary (Enterprise) Funds Highlights:
• Municipal Solid Waste Collection and Disposal — Net position decreased by $780,122 primarily due to increased closure/post
closure liabilities and increased depreciation for completed leachate treatment plant.
• Hospital Facilities — Net position increased by $626,212 primarily due to improved investment earning, and fewer facility repair
projects due to vacant positions.
• Long -Term Care Center — Net position increased by $943,045, primarily due to lease income, improved investment earnings, and
fewer facility repair projects due to vacant positions.
• Kodiak Fisheries Research Center— Net position decreased by $28,953 due to increased depreciation, and repair and maintenance
expenses.
• Research Court Apartments - Net position increased by $16,792 due to stable tenant income and repair expenses.
Statement of Revenue, Expenses and Changes in Net Position (Deficits)
Total for All Borough Proprietary Funds
Municipal Waste
Collection &
Disposal (Only)
FY2022
FY2023
FY2024
FY2024
Revenues
Total Operating Revenue
$8,390,816
$8,133,203
$8,596,360
$4,178,674
Total Non -Operating Revenue
(874,146)
151,006
858,640
62,208
Total Revenues
$7,516,670
$8,284,209
$9,455,000
$4,240,882
Expenses
Total Operating Expenses
$6,587,450
$6,352,186
$8,383,235
$4,843,580
Total Non -Operating Expenses
237,812
174,539
294,791
177,424
Total Expenses
$6,825,262
$6,526,725
$8,678,026
$5,021,004
Other Financial Sources (uses) $ - Is - Is - I $ -
Net Position, beginning of year, as $53,237,017 $53,928,425 $55,685,909 $20,726,277
restated
Net Position, end of year $53 928 425 555 685 909 556,462 883 519,946,155
5
Kodiak Island Borough, Kodiak Alaska Popular Annual Financial Report For Fiscal Year Ending June 30, 2024
ASSEMBLY MEETINGS
Assembly meetings can be viewed live via internet streaming through the Borough's website. Video recordings of previous regular
meetings and voice recordings of work sessions, along with meeting packet information is also available on the website:
http://www.kodiakak.us.
Borough Building Assembly Chambers located at 710 Mill Bay Rd
Public Comment Call In Numbers: Toll Free 855-482-9202 or locally 907-486-3231
SUMMARY OF DEBT SERVICE REQUIREMENTS AS OF 06/30/2024
$ 41,935,296 High school renovation and renewal project.
$ 3,459,875 Renewal and replacement for various school buildings.
$ 2,482,000 Acquisition and construction of school improvements including a new school pool.
$ 757,635 Planning, design and construction for the new school pool and Kodiak High School Voc/Ed classroom.
$ 622,164 Planning, design and construction for the Larsen Bay, Kodiak Middle and Kodiak High schools.
$ 49,256,970
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
Summary of Total Debt Service Requirements By Year
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
PROPERTY TAXES
The Assembly sets the mill rates, or the number of mills each individual taxpayer will be assessed or charged per dollar value of
property owned. A mill is one tenth of one percent of a dollar (.001). For FY2024, the Borough -wide mill rate was 10.25 which
equates to 1.025 cents of tax to be paid for each dollar of assessed property value.
In addition to the Borough -wide mill rate, mill rates are set for taxing properties within specific boundaries for specific activities. If
the taxing area has a board or committee (such as a road or fire service area), they submit a budget and recommended rate to the
Assembly. For those properties within the city limits, the City of Kodiak's City Council sets the mill rate.
Mill Rate Allocation History
1.07
FY24Q29
7.67
1.22 (Includes $995,618 tra nsferto Debt Service)
0.33
FY23 1.36
7.88
1.18 (1 ncl udes $118,335 tra nsferto Debt Service)
0.00
FY22 1.65
6.99
2.11 (1 ncl udes $2.3 mi Ilion tra nsferto Debt Service)
0 1 2 3 4 5 6 7 8 9
■ R&R Projects —To fund renewal and replacement
project need swithin the Borough.
❑ Debt Service —To fund payment of principal and
interest on the Borough's long-term debt.
❑ Education Support —To fund the Kodiak Island
Borough School District for the State required
local minimum contribution and in -kind costs.
■ General Fund —To fund the general operations of
the Kodiak Island Borough.
■ R & R Projects ■ Debt Service ■ Education Support ■ General Fund
R,
Kodiak Island Borough, Kodiak Alaska Popular Annual Financial Report For Fiscal Year Ending June 30, 2024
GENERAL FUND REVENUES — A Closer Look
Revenue Source Reason(s) for Increase or Decrease
or
Excise Taxes, Services, There was a decrease of $25,051 in excise tax revenues. Investment earnings increased by $1,965,253 due
Fees, Investments & Other to an improved investment market environment.
Intergovernmental Various State and Federal revenues increased, primarily due to a $119,688 increase in payments in lieu of
taxes from the Federal Government.
Severance Tax There was an overall decrease of $606,757 primarily due to reduced sea products revenues. Not only was
the tax reduced by .5 mills, quota restrictions reduced overall catch.
Property Taxes General Fund Property Tax Revenues increased by $62,893. Although the area wide mill rate went down
by .25 mills, the general fund mill rate increased to accommodate a $995,618 transfer to the debt service
fund to make required bond payments.
General Fund Revenue by Category
Category Descriptions:
Excise Taxes, Services, Fees, Investments &
Other: Local revenues from penalties and
$12,000,000
$3,297,981
interest, excise taxes, building permits,
$377,267
$1,339,414
zoning permits, interest earnings and
$io,000,000
changes in market value on investments,
map sales and reimbursed expenses.
❑ Intergovernmental: Federal and State reve-
$8,000,000
$3,327,965
nues such as ARPA, Payment in Lieu of Tax
(PILT), Community Revenue Sharing, Fisher-
$6,000,000
$3,943,75 $4,060,43
ies Business Tax Sharing, Fisheries Landing
$4,000,000
11,677,595
Tax, National Wildlife Refuge and PIERS on
Behalf Payments.
$1,597,327 $990,570
■ Severance Taxes: Local revenues from the
$2,000,000
$3,448,574
harvest of sea products, gravel and timber.
$2,051,768 $2,114,66
Property Taxes: Local revenues from resi-
dential and commercial real and personal
General Fund Mill Rate FY2022 - 2.11 mills
FY2023 - 1.18 mills FY2024 - 1.22 mills
properties, and commercial aircraft.
WHERE YOUR BOROUGH -WIDE PROPERTY TAX DOLLAR GOES
(See category descriptions under Property
Taxes)
Education Support
Debt Service
General Fund Renewal &
74 Cents
3 Cents
12 Cents Replacement
1
11 Cents
THK i'wri-:i) ST.%TFo�*ice,
T (Transfer to Debt I
Service 5 Cents)
�1 F
it C ,
Kodiak Island Borough, Kodiak Alaska Popular Annual Financial Report For Fiscal Year Ending June 30, 2024
CAPITAL PROJECTS
Completed in FY2024:
• North Star Siding & Windows Replacement
• Sargent Creek Park Upgrades
• Kodiak Island Borough Landfill Stage 3 Closure,
Temporary Closure, and Cover Rock Production
• PKIMC & Kodiak Community Health Center
Space Analysis
• Kodiak Island Borough Emergency Sewer Lift Station
Repairs
• Kodiak Fisheries Research Center Lift Station Repairs
Landfill Stage 3 Closure
North Star Siding & Windows
PKIMC & KCHC Space Analysis
Scheduled for Completion in FY2025 and Bevond:
• Schools:
0
Peterson HVAC & Roof Replacement (FY2025)
0
North Star Roof & Skylight Replacement Planning
and Design
0
East Elementary Roof Replacement Planning and
Design
0
Main Elementary Siding and Windows Replace-
ment
0
Chiniak School Water System
0
Middle School Elevator Modernization
• Providence Kodiak Island Medical Center (PKIMC):
0
Elevator Modernization
• Kodiak Island
Borough Building
0
Boiler & Mechanical Upgrades (FY2025)
0
Roof Repairs
• Kodiak Fisheries Research Center
0
Fume Hoods (FY2025)
0
Research Court Apartments Lift Station Repairs
(FY2025)
0
Seawater Decontamination System
0
Exterior Upgrades
0
Wet Well Platform
• Leachate
Treatment Plant Pretreatment Facility (FY2025)
• Mental
Health Buildings Demo & Abatement (FY2025)
• Landfill
0
Baler Floor Slab Overlay Replacement (FY2025)
0
Scale Shack Platform (FY2025)
Sargent Creek Park Upgrades