FY2024 ACFR
KODIAK ISLAND BOROUGH
ALASKA
Annual Comprehensive Financial Report
Year Ended June 30, 2024
KODIAK ISLAND BOROUGH
ALASKA
Annual Comprehensive Financial Report
Year Ended June 30, 2024
Official Issuing Report
Dora Cross
Finance Director
KODIAK ISLAND BOROUGH
TABLE OF CONTENTS
June 30, 2024
Page
INTRODUCTORY SECTION:
Letter of Transmittal 1-4
GFOA Certificate of Achievement 5
Organizational Chart 6
Elected Officials (Photographs) 7
Borough Officials 8
Map of Kodiak Island Borough 9
FINANCIAL SECTION:
Independent Auditor’s Report 10-13
Management’s Discussion and Analysis 14-28
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 29
Statement of Activities 30
Fund Financial Statements:
Balance Sheet – Governmental Funds 31
Reconciliation of Net Position Between the Government-Wide and the Fund Financial
Statements 32
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds 33
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities 34
Statement of Net Position – Proprietary Funds – Business-Type Activities – Enterprise
Funds 35
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds –
Business-Type Activities – Enterprise Funds 36
Statement of Cash Flows – Proprietary Funds – Business-Type Activities – Enterprise
Funds 37
Notes to Basic Financial Statements 38-81
Required Supplementary Information:
Budgetary Comparison Schedule – General Fund 82-83
Budgetary Comparison Schedule – Special Revenue Fund – Education Support 84
Budgetary Comparison Schedule – Special Revenue Fund – Facilities 85
Public Employees’ Retirement System:
Schedule of Borough’s Proportionate Share of the Net Pension Liability 86
Schedule of Borough’s Proportionate Share of the Net OPEB Liability (Asset) 87
Schedule of Borough’s Contributions (Pension) 88
Schedule of Borough’s Contributions (OPEB) 89
Notes to Required Supplementary Information – Budgetary Comparison Schedules 90-92
KODIAK ISLAND BOROUGH
TABLE OF CONTENTS, CONTINUED
Page
Additional Supplementary Information:
Budgetary Comparison Schedule – Debt Service Fund – Education 93
Nonmajor Governmental Funds:
Combining Balance Sheet 94
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 95
Nonmajor Special Revenue Funds:
Combining Balance Sheet 96-97
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
(deficit) 98-99
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and
Actual:
Fire and Road Service Areas:
Fire:
Fire Protection Area No. 1 100
Womens Bay Fire Department 101
Kodiak Airport Fire District 102
Road:
Monashka Bay Road Service Area 103
Service Area No. 1 104
Womens Bay Road Service Area 105
Bay View Road Service Area 106
Service Area No. 2 107
L.E.P.C. 108
Land Sales 109
Buildings and Grounds 110
Woodland Acres Street Light Service Area 111
Trinity Islands Street Light Service Area 112
Tourism Development 113
Commercial Passenger Vessel 114
Mission Lake Tide Gate 115
Opioid Class Action Settlement 116
Nonmajor Capital Project Funds:
Combining Balance Sheet 117
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 118
Nonmajor Enterprise Funds:
Combining Statement of Net Position 119
Combining Statement of Revenues, Expenses, and Changes in Net Position 120
Combining Statement of Cash Flows 121
Enterprise Funds:
Schedule of Revenues, Expenses, and Changes in Net Position – Budget
and Actual:
Municipal Solid Waste Collection and Disposal 122
Hospital Facilities 123
Long Term Care Center 124
Kodiak Fisheries Research Center 125
911 Service Fund 126
Research Court Apartments 127
KODIAK ISLAND BOROUGH
TABLE OF CONTENTS, CONTINUED
Page
Supplementary Bond Schedules:
Summary of Bonded Debt Service Requirements to Maturity 128
General Obligation Bond, 2021 Series One – Retirement Schedule 129
General Obligation Bond, 2021 Series Two – Retirement Schedule 130
General Obligation Bond, 2021 Series Three – Retirement Schedule 131
General Obligation Bond, 2014 Series One / 2021 Series Four – Retirement Schedule 132
General Obligation Bond, 2015 Series Three – Retirement Schedule 133
General Obligation Bond, 2015 Series Three – Retirement Schedule 134
General Obligation Bond, 2016 Series One – Retirement Schedule 135
General Obligation Bond, 2016 Series One – Retirement Schedule 136
General Obligation Bond, 2016 Series Three – Retirement Schedule 137
General Obligation Bond, 2018 Series A – Retirement Schedule 138
General Obligation Bond, 2020 Series One A – Retirement Schedule 139
General Obligation Bond, 2020 Series One B – Retirement Schedule 140
STATISTICAL SECTION:
Statistical Section Index
Net Position by Component – Last Ten Fiscal Years 141
Changes in Net Position – Last Ten Fiscal Years 142
Fund Balances of Governmental Funds – Last Ten Fiscal Years 143
Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 144
General Revenues by Source – Last Ten Fiscal Years 145
Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 146
Direct and Overlapping Property Tax Rates and Contributions to the School District –
Last Ten Fiscal Years 147
Property Tax Levies and Collections – Last Ten Fiscal Years 148
Principal Property Tax Payers – Current Year and Ten Years Ago 149
Ratios of Net Bonded Debt– Last Ten Fiscal Years 150
Computation of Direct Debt 151
Legal Debt Margin Information – Last Ten Fiscal Years 152
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General
Fund Expenditures and Transfers – Last Ten Fiscal Years 153
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 154
Demographic and Economic Statistics – Last Ten Fiscal Years 155
Average Monthly Employment & Earnings – Last Ten Fiscal Years 156
Miscellaneous Statistical Data – Last Ten Fiscal Years 157
Property Value, Construction and Bank Deposits – Last Ten Fiscal Years 158
Full-Time Equivalent Borough Employees by Function/Program – Last Ten Fiscal Years 159
Operating Indicators by Function – Last Ten Fiscal Years 160
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 161
INTRODUCTORY SECTION
1
Kodiak Island Borough
Finance Department
710 Mill Bay Road Kodiak, Alaska 99615
December 19, 2024
Members of the Assembly
Kodiak Island Borough, Alaska
State of Alaska statutes and local charter provisions require that all general-purpose local governments publish
a complete set of financial statements presented in conformity with generally accepted accounting principles
(GAAP) in the United States of America and audited in accordance with auditing standards generally accepted
in the United States of America by a firm of licensed certified public accountants. Pursuant to that requirement,
we hereby issue the annual comprehensive financial report of the Kodiak Island Borough (Borough) for the
fiscal year ended June 30, 2024.
This report consists of management’s representations concerning the finances of the Borough. Consequently,
management assumes full responsibility for the completeness and reliability of all information presented in
this report. To provide a reasonable basis for making these representations, management of the Borough has
established a comprehensive internal control framework that is designed both to protect the government’s
assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the
Borough’s financial statements in conformity with GAAP. Because the cost of internal controls should not
outweigh their benefits, the Borough’s comprehensive framework of internal controls has been designed to
provide reasonable rather than absolute assurance that the financial statements will be free from material
misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is
complete and reliable in all material respects.
The Borough’s financial statements have been audited by Altman, Rogers & Co., a firm of licensed certified
public accountants. The goal of the independent audit was to form an opinion on whether the financial
statements of the Borough, for the fiscal year ended June 30, 2024, are presented fairly, in all material respects,
in accordance with generally accepted accounting principles in the United States of America. The independent
audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; assessing the accounting principles used and significant estimates made by management; and
evaluating the overall financial statement presentation. The independent auditor issued an unmodified
(“clean”) opinion on the Borough’s financial statements for the fiscal year ended June 30, 2024. The
independent auditor’s report is presented as the first component of the financial section of this report.
GAAP requires that management provides a narrative introduction, overview, and analysis to accompany the
basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it. The Borough’s
MD&A can be found immediately following the report of the independent auditors.
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As a receipient of both federal and state grant awards, the independent audit of the financial statements of the
Borough was part of broader, Federally and State of Alaska mandated “Single Audits” designed to comply
with the requirements of Title2 of the U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and Alaska
State Regulations 2AAC 45.010 and Audit Guide and Compiance Supplement for State Single Audits. These
standards governing Single Audit engagements require the independent auditor to report not only on the fair
presentation of the financial statements, but also on the audited government’s internal controls and compliance
with legal requirements, with special emphasis on internal controls and legal requirements involving the
administration of Federal and State awards. These reports are available in the Borough’s separately issued
Single Audit Report.
Profile of the Government
The Kodiak Island Borough lies at the western border of the Gulf of Alaska, approximately 40 miles south of
the Kenai Peninsula and approximately 250 miles south of Anchorage. Kodiak Island is the largest island in
Alaska and the second largest in the United States. About two-thirds of the Borough lies in the Kodiak
archipelago with the remaining third on the Alaska Peninsula, across the Shelikof Strait from Kodiak Island.
The Shelikof Strait is only 20 miles wide in places. The Borough encompasses 6,560 square miles, making it
slightly smaller than the State of Massachusetts and serves a population of 12,721 (State of Alaska, Dept of
Community and Regional Affairs).
The Borough was incorporated September 1963, as a Second Class Borough by Chapter 146 Sessions, Laws
of Alaska 1961, as amended. The powers granted to the Borough include area-wide powers and non area-wide
powers. Area-wide powers are health, education, planning and zoning, emergency services planning, and
assessment and collection of taxes for both the Borough and cities within the Borough. Non area-wide powers
include parks and recreation, economic development, solid waste disposal, animal control, fire protection,
street lighting and road maintenance and construction. A Manager form of government governs the Borough.
The mayor is elected at large while the Borough Assembly appoints the Manager. The Assembly is composed
of seven members who are elected at-large.
The Borough provides a full range of services including fire protection, the construction and maintenance of
roads and other infrastructure, community and economic development, health, culture and recreation and solid
waste collection and disposal. The Borough is also financially accountable for a legally separate school
districted discretely presented as unit within the Borough’s financial statements. Additional information on
this legally separate entity can be found in the basic financial statements.
Budgetary Accounting and Controls
The annual budget serves as the foundation for the Borough’s financial planning and control. All departments
of the Borough are required to submit requests for appropriation to the Borough Manager. The Borough
Manager uses these requests as the starting point for developing a proposed budget. The Borough Manager
then presents this proposed budget to the Assembly by April 1st for review. The assembly is required to hold
public hearings on the proposed budget and to adopt a final budget and mill rate by no later than June 10th.
The appropriated budget is prepared by department for the General Fund and by fund for all others.
The Assembly makes appropriation transfers between funds and/or departments only after the adoption of an
ordinance. Borough staff may execute transfers between line items within a department. Amendments to the
budget can occur anytime during the fiscal year through the Borough Assembly or administrative action.
Expenditures may not legally exceed appropriations at the following levels: General Fund- by department,
Capital Project Funds – project level, all other funds – as fund total. All funds, except Capital Project Funds,
are budgeted on an annual basis encompassing a fiscal year. Budgets of Capital Project Funds generally
encompass the period from start-up to project completion, which is generally greater than one year.
3
Budget-to-actual comparisons are provided in this report for each individual governmental and proprietary
fund for which an appropriated annual budget has been adopted.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from
the broader perspective of the specific environment within which the Borough operates.
State budget. The State of Alaska has experienced budget shortfalls for several years and has impacted the
Borough in the past with reduced Community Assistance Program funding, and School Construction Debt
Reimbursements payments. For the last few years, the State has approved their budget after the Borough’s
June 10th budget adoption deadline, meaning we have had to guess at what the State revenues we would receive.
Local economy. The economic condition of the Kodiak Island Borough remains guarded. The seafood
industry is by far the largest industry in the Kodiak Island Borough. This industry includes commercial fishing,
fisheries research, management and enforcement, seafood processing, and includes other additional
maintenance and support services. Kodiak is home to the largest port in the State, housing over 600 commercial
vessels and consistently ranks among the top ten ports in the United States in terms of amount and value of
product delivered. Severance tax revenues on sea products are volatile and can be affected by many variables
including quota limits, environmental restrictions, the health of select fisheries, housing and labor availability
and supply chain issues. Sea product revenues have seen highs of $1.9 million in FY12 to a low of $0.9 million
in FY24. With the severance tax tied to the mill rate, the decrease in mill rate also means a decrease in the
severance tax rate. Although Kodiak’s unemployment rates are lower than the State, labor shortages remain
an ongoing concern for all local businesses.
Tourism also has a strong presence in Kodiak, however the recent trends of online bookings and the
construction of a new hotel within the city limits, coupled with remote locations which cannot be readily
monitored, may make the transient tax revenues an unreliable indicator of the economy. In FY24 total revenue
was $99 thousand, a definite increase from FY21’s number of $50 thousand. Cruise ship tax revenues were
$20 thousand as of June 30, 2024 which was a drop from a high of $54 thousand in FY20 but an improvement
over the $6 thousand received FY23.
Kodiak is home to the largest U.S. Coast Guard base in the country, employing nearly 1,350 people and
providing vital services to the marine industries that are an integral part of Kodiak’s make-up as well as making
a significant contribution to the Kodiak community.
Employment varies throughout the year with July, August, and September being the peak months due to the
increased activity in the fisheries and related businesses, and then declines in November and December when
fishing quotas are reached. At June 30, 2024, the unemployment rate for the Kodiak Island Borough was 4.1%
compared to the State of Alaska’s rate of 4.5%.
Long-term financial planning. The Borough adopts a strategic plan. In this plan, the Borough decides what
its goals and objectives are for the next 3-5 years. To view the complete Strategic plan, you can visit our web
site at www.kodiakak.us. The basis of the strategic plan is:
Essential governmental services are to be provided at a level equal to or better than the level previously
provided. Plan for revenues and expenses to create a government that is more efficient, less costly,
and more accountable to ensure a financially sustainable borough for future generations.
All services are to be constantly examined to ensure that they are provided in an efficient and effective
manner and that unnecessary program costs are eliminated.
4
Each department’s progress in achieving their objectives is reviewed and monitored throughout the
budget year.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate
of Achievement for Excellence in Financial Reporting to the Borough for its Annual Comprehensive Financial
Report (Annual Report) for the fiscal year ended June 30, 2023. This was the thirty-fourth consecutive year
that the Borough has received this prestigious award. To be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized annual comprehensive financial report.
This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Report
continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the
GFOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and dedicated services of the
entire staff of the administration and finance department. We would like to express our appreciation to all
members of the department who assisted and contributed to the preparation of this report. Credit must be given
to the mayor and the assembly for their unfailing support for maintaining the highest standards of
professionalism in the management of the Borough’s finances.
Respectfully submitted,
Aimee Williams Dora Cross
Borough Manager Director of Finance
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Kodiak Island Borough
Alaska
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
6
Electorate
Borough Manager Borough Attorney
Engineering/
Facilities Director
Bayside Fire
Chief
Finance
Director
Borough Mayor
Borough Assembly
Community
Development
Director
Secretary III
Maintenance
Mechanic
KFRC
Maintenance
Engineer
KFRC
Interpretive
Spec/Rec.
Solid Waste Mgr/
Environ. Spec.
Solid Waste
Baler/Landfill
Supervisor
Treatment Plant
Operator Lead
Baler Operator II
Baler Operator I (4)
HR Officer Executive
Assistant
Assessor
Associate Planner/ENF
Associate Planner/LRP
Code Enforcement
Officer
Secretary III
Property Appraiser
Lead
Appraiser
Technician (2)
Assessment
Clerk I
Accounting Tech -
Accounts Payable
Accounting Tech -
Payroll
Cashier
Permit
Technician
Borough Clerk
Assistant Clerk Deputy Clerk
Kodiak Island Borough
Fiscal Year 2024
Assistant
Director
Projects
Inspector
Projects
Assistant
Grant Writer/
Spec Proj Support
Resource
Mgt Officer
Landfill Attendant
Treatment Plant
Operator
Treatment Plant
Operator Trainee
Fiscal Analyst (2)
Information/
Technology
Director
Network
Analyst
GIS
Analyst
Network
Technician
MAYOR AND ASSEMBLY MEMBERS
7
(No picture available)
Steven Ames, Jared Griffin,
At Large, 2026 At Large, 2025
(No picture available)
Scott Arndt, Mayor,
At Large, 2025
Larry Ledoux, Ryan Sharratt,
At Large, 2025 At Large, 2026
Bo Sedillo-Whiteside, James Turner,
At Large, 2026 At Large, 2024
Scott Smiley,
Deputy Presiding Officer (DPO),
At Large, 2024
KODIAK ISLAND BOROUGH
KODIAK, ALASKA
BOROUGH OFFICIALS
YEAR ENDED JUNE 30, 2024
MAYOR
Scott Arndt 2025
ASSEMBLY
Steven Ames
2026
Bo Sedillo-Whiteside
2026
Jared Griffin 2025 Scott Smiley 2024
Larry Ledoux 2025 James Turner 2024
Ryan Sharrett 2026
MANAGEMENT
Aimee Williams Borough Manager
Dora Cross Finance Director/Treasurer
Nova Javier Borough Clerk
Christopher French Community Development Director
Seema Garoutte Borough Assessor
Scott Ellis Fire Chief
Dave Conrad Engineering and Facilities Director
Fred Berestoff IT Supervisor
Keene & Currall Borough Attorney (Contracted Firm)
8
9
FINANCIAL SECTION
10
3000 C Street N. Suite 201 Anchorage, Alaska 99503 Phone 907-274-2992 Fax 907-274-2993
Offices in Juneau and Soldotna A Professional Corporation
Independent Auditor’s Report
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
Kodiak, Alaska
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the Kodiak Island Borough, Alaska (the Borough), as of and for the year ended June 30,
2024, and the related notes to the financial statements, which collectively comprise the Borough’s basic
financial statements as listed in the table of contents.
In our opinion, the accompany financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund information of
the Borough, as of June 30, 2024, and the respective changes in financial position, and, where applicable,
cash flows thereof for the year then ended in accordance with accounting principles generally accepted
in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States (Government Auditing Standards).
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the Borough
and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating
to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
11
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the Borough’s ability to continue as
a going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is
not a guarantee that an audit conducted in accordance with generally accepted auditing standards and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control. Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Borough’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Borough’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the audit.
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
12
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis, Budgetary Comparison Schedules, Schedules of Borough’s Proportionate Share
of the Net Pension and OPEB Liabilities (Assets) and Contributions for the Public Employees’s Retirement
System, and Notes to Required Supplementary Information on pages 14-28, 82-85, 86-89, and 90-92,
respectively, be presented to supplement the basic financial statements. Such information is the
responsibility of management and, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context. We
have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for consistency
with management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Borough’s basic financial statements. The information listed in the table of contents as
“Additional Supplementary Information”, which includes the Budgetary Comparison Schedule – Debt
Service Fund; Nonmajor Governmental Funds: Combining Balance Sheet and Combining Statement of
Revenues, Expenditures, and Changes in Fund Balances; Nonmajor Special Revenue Funds: Combining
Balance Sheet and Combining Statement of Revenues, Expenditures, and Changes in Fund Balances, and
Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual; Nonmajor
Capital Project Funds: Combining Balance Sheet and Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances; Nonmajor Enterprise Funds: Combining Statement of Net Position,
Combining Statement of Revenues, Expenses, and Changes in Net Position, and Combining Statement of
Cash Flows; Enterprise Funds: Schedule of Revenues, Expenses, and Changes in Net Position – Budget
and Actual, are presented for purposes of additional analysis and is not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates directly
to the underlying accounting and other records used to prepare the basic financial statements. The
information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the “Supplementary
Information”, as listed above, is fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
13
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory section, supplementary bond schedules, and statistical section but does not
include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial
statements do not cover the other information, and we do not express an opinion or any form of assurance
thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
We also have previously audited, in accordance with auditing standards generally accepted in the United
States of America, Kodiak Island Borough’s basic financial statements for the year ended June 30, 2023,
which are not presented with the accompanying financial statements and we expressed unmodified opinions
on the respective financial statements of the governmental activities, the business-type activities, the
aggregate discretely presented component unit, each major fund, and the aggregate remaining fund
information. That audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise Kodiak Island Borough’s basic financial statements as a whole. The individual fund
financial statements and schedules for the year ended June 30, 2023, are presented for purposes of additional
analysis and are not a required part of the basic financial statements. Such information is the responsibility
of management and was derived from and related directly to the underlying accounting and other records
used to prepare the 2023 basic financial statements. The information was subjected to the audit procedures
applied in the audit of those basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used
to prepare the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In
our opinion, the 2023 individual fund financial statements and schedules are fairly stated in all material
respects in relation to the basic financial statements from which they have been derived.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 19,
2024, on our consideration of the Borough’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the Borough’s internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards in considering Borough’s
internal control over financial reporting and compliance.
Anchorage, Alaska
December 19, 2024
MANAGEMENT’S DISCUSSION AND ANALYSIS
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis
June 30, 2024
14
As management of the Kodiak Island Borough, we offer readers of these financial statements this narrative
overview and analysis of the financial activities of the Kodiak Island Borough for the fiscal year ended
June 30, 2024. We encourage readers to consider the information presented herein in conjunction with
additional information that we have furnished in our letter of transmittal, which can be found on pages 1-4
of this report.
FINANCIAL HIGHLIGHTS
At the close of FY2024, the Kodiak Island Borough’s assets and deferred outflows of resources
exceeded its liabilities and deferred inflows of resources by $230.5 million (total net position). Of
this amount, $90.8 million (unrestricted net position) is legally unreserved and may be used to meet
the Borough ongoing obligations to citizens and creditors.
The unrestricted amount of the Borough’s total net position, or the amount that may be used to meet
the Borough’s ongoing obligations to citizens and creditors, increased by $6.5 million.
The Borough’s total net position increased $10.8 million when compared to the net position at the
beginning of the fiscal year. Of this amount, $10 million of this increase was due to governmental
activities and $800 thousand was due to business-type activities.
Total equity in the central treasury increased by $5.2 million. Of the amount, $4.9 million was due
to governmental activities and $300 thousand was due to business-type activities.
The Borough’s total noncurrent liabilities (obligations due in more than one year) decreased by $7.1
million.
At the end of the current fiscal year, the unassigned fund balance of Governmental Funds was $19.6
million. The $6.7 million of General Fund expenditures equates to 34.2% of that fund’s unassigned
fund balance.
OVERVIEW OF THE FINANCIAL STATEMENTS
The management discussion and analysis serve as an introduction to the Borough’s basic financial
statements, which contain the following: 1) government-wide financial statements, 2) fund financial
statements, and 3) notes to the financial statements. This report also contains other supplementary
information intended to furnish additional detail to support the basic financial statements themselves.
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
15
1) GOVERNMENT-WIDE FINANCIAL STATEMENTS (pages 29-30)
The government-wide financial statements are designed to provide readers with a broad overview of the
Borough’s finances in a manner similar to a private-sector business. These statements combine and
consolidate short-term, spendable resources with capital assets and long-term obligations. The government-
wide financial statements are divided into the following three categories:
Governmental activities – These are functions of the Borough that are financed primarily by taxes,
intergovernmental revenues, and charges for services. The Borough’s governmental activities
include general government, public safety, community and economic development, emergency
preparedness, non-profit contributions for health and social services and education, culture and
recreation, service district maintenance, primary and secondary education, and debt service.
Business-type activities – These are functions of the Borough in which customer user fees and
charges are used to help cover all or most of the cost of services they provide. The Borough’s
business-type activities include a solid waste collections and disposal (landfill) facility, E911
emergency system, and property leases for various Borough-owned buildings including a hospital,
long-term care center, a fisheries research center, and an apartment building.
Component unit – The Borough also includes the Kodiak Island Borough School District in its
report as it is financially accountable for this “component unit”. Financial information for the
school district is reported separately from the financial information presented for the primary
government itself.
The Statement of Net Position is designed to be a bottom line for the Borough’s activities and component
unit. This statement combines and consolidates governmental funds’ current financial resources (short-
term spendable resources) with capital assets, including infrastructure and long-term obligations. Net
positions are the difference between the Borough’s assets and deferred outflows of resources and its
liabilities and deferred inflows of resources. Increases or decreases in net position may serve as a useful
indicator of whether the financial position of the Borough is improving.
The Statement of Activities reflects the expenses of a given function, which are offset by program revenues.
All changes in net position are reported as soon as the underlying event given rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement
for some items that will result in cash flows in future fiscal periods. Program revenues are defined as charges
for services, operating grants and contributions, and capital grants and contributions directly associated
with a given function.
Both of the government-wide financial statements distinguish functions of the Borough that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business-type
activities).
The government-wide financial statements include not only the Borough itself (known as the primary
government), but also the legally separate school district for which the Borough is financially accountable.
Financial information for this component unit is reported separately from the financial information
presented for the primary government itself.
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
16
2) FUND FINANCIAL STATEMENTS (pages 31-37)
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The Borough, like other state and local governments, uses
fund accounting to ensure and demonstrate fiscal accountability. All the funds of the Borough can be
divided into two categories: a) governmental funds and b) proprietary funds.
Fund Type
Number of
Funds
Governmental Funds:
General Fund 1
Debt Service Fund 1
Special Revenue 19
Capital Projects 7
Total Governmental Funds 28
Proprietary Funds:
Enterprise Funds 6
Total of All Funds 34
Governmental Funds (pages 82-85 and 93-118) – Governmental funds are used to account for essentially
the same functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide statements, governmental fund financial statements focus on the
short-term view of the Borough’s operations. Because the focus of governmental funds is narrower than
that of the government-wide financial statements, it is useful to compare the information presented for the
governmental funds with similar information presented for governmental activities in the government-wide
financial statements. Both the governmental fund balance sheet and the governmental fund statement of
revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
The Borough adopts an annual appropriated budget for its General Fund, Special Revenue Funds and Debt
Service Fund. Budgetary comparison statements have been provided for the funds to demonstrate
compliance with the budget.
Proprietary Funds (pages 35-37 and 119-127) – The only Proprietary Fund type that the Borough uses is
enterprise funds. Proprietary fund statements provide the same type of information as the government-wide
financial statements, only in more detail. Enterprise funds are used to account for activities for which a fee
is charged to external users for goods and services.
The Borough adopts an annual appropriated budget for its proprietary funds. Budgetary comparison
statements have been provided for the funds to demonstrate compliance with the budget.
3) NOTES TO THE BASIC FINANCIAL STATEMENTS (pages 38-81)
The notes provide additional information that is essential to a full understanding of the data provided in the
government-wide and fund financial statements.
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
17
OTHER INFORMATION (pages 82-161)
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information and other information. The combining statements referred to earlier
in connection with nonmajor governmental funds can be found on pages 91-118.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position.
In the case of the Borough, net position at June 30, 2024 was $230 million compared to $219 million at
June 30, 2023 and $90.8 million is unrestricted at June 30, 2024 and may be used to meet the government’s
ongoing obligations to its citizens and creditors. The largest portion of the Kodiak Island Borough’s net
position ($137 million or 59.6%) reflects its investment in capital assets (e.g. land, buildings, equipment,
infrastructure, etc.) net of any related debt used to acquire those assets. The Borough uses these capital
assets to provide services to citizens; consequently, these capital assets are not available for future spending.
Although the Borough’s investment in capital assets is reported net of related debt, it should be noted that
the resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
Governmental Business-type Total
Activities Activities Activities
2024 2023 2024 2023 2024 2023
Current and other assets $ 108.7 103.0 37.8 39.4 146.5 142.4
Capital assets 138.4 141.0 63.5 65.7 201.9 206.7
Total assets 247.1 244.0 101.3 105.0 348.4 349.0
Deferred outflows of resources 0.5 0.7 0.2 0.3 0.7 1.0
Total assets and deferred
outflows of resources $ 247.6 244.7 101.5 105.3 349.1 350.0
Long-term liabilities $ 42.1 48.6 26.0 26.6 68.1 75.2
Other liabilities 31.5 32.0 2.8 4.6 34.3 36.6
Total liabilities 73.6 80.6 28.8 31.2 102.4 111.8
Deferred inflows of resources 0.0 0.1 16.2 18.4 16.2 18.5
Total liabilities and deferred
inflows of resources 73.6 80.7 45.0 49.6 118.6 130.3
Net position:
Net investment in capital assets 93.5 89.9 43.9 45.4 137.4 135.3
Restricted 1.7 0.1 0.6 — 2.3 0.1
Unrestricted 78.8 74.0 12.0 10.3 90.8 84.3
Total net position $ 174.0 164.0 56.5 55.7 230.5 219.7
Net Position by Activity Type (in millions)
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
18
Changes in Net Position
During the current fiscal year, the Borough’s total net position increased by $10.8 million (8.4%) as
compared to the $10 million increase for prior year ended June 30, 2023.
Governmental Activities – Overall Change: $10 million increase. As compared to fiscal year 2023, 2024
equity in central treasury increased $4.9 million due primarily due to a $4.4 million increase of investment
earnings. Increased earnings were achieved when low interest rate pandemic-era instruments matured and
were reinvested at higher interest rates. Charges for services and operating and capital grants increased $1.8
million from the prior year. The sale of a rural school to a local tribal entity accounts for the decline in
capital assets. A $6.5 million decrease in long term liabilities is related to ongoing general obligation debt
payments
Business-type Activities – Overall Change: $800 thousand: As compared to fiscal year 2023, 2024 equity
in central treasury increased by $324 thousand primarily due to a $718 thousand increase in investment
earnings. Increased earnings were achieved when low interest rate pandemic-era instruments matured and
were reinvested at higher interest rates. Charges for services were up roughly $92,000 from the prior year
as were Other revenues which were up $317 thousand. Receivables increased by $273 thousand primarily
due to the US Coast Guard’s outstanding balance due to the landfill fund.
(The remainder of this page intentionally left blank.)
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
19
Statement of Activities (page 30)
The following table shows the changes in revenues and expenses for fiscal years 2024 and 2023 for both
governmental and business-type activities.
Governmental Business-type
2024 2023 2024 2023 2024 2023
Revenues:
Program revenues:
Charges for services $ 1.1 1.0 7.9 7.8 9.0 8.8
Operating grants and contributions 5.9 5.8 0.0 (0.0) 6.0 5.8
Capital grants 1.8 0.1 — — 1.8 0.1
General revenues:
Property taxes 17.8 18.1 — — 17.8 18.1
Grants and entitlements not restricted
to specific programs 4.0 3.9 — — 4.0 3.9
Land sales 0.0 0.0 — — 0.0 0.0
Excise taxes 0.8 0.8 — — 0.8 0.8
Severance taxes 1.1 1.7 — — 1.1 1.7
Other 0.1 0.7 0.7 0.4 0.8 1.1
Investment earnings 5.3 1.0 0.8 0.1 6.2 1.1
Total revenues 37.9 33.2 9.5 8.3 47.4 41.5
Expenses:
General government 7.5 3.8 — — 7.5 3.8
Public safety 0.6 0.7 — — 0.6 0.7
Community and economic development 0.8 0.8 — — 0.8 0.8
Emergency preparedness 0.0 0.0 — — 0.0 0.0
Health and social welfare 0.2 0.2 — — 0.2 0.2
Education, culture and recreation 0.0 0.0 — — 0.0 0.0
Parks and recreation 0.0 0.0 — — 0.0 0.0
Service district maintenance 0.6 0.7 — — 0.6 0.7
Primary and secondary education 17.2 17.9 — — 17.2 17.9
Interest on long-term debt 1.1 0.9 — — 1.1 0.9
Municipal solid waste collection and
disposal — — 5.0 2.8 5.0 2.8
Hospital facilities — — 1.3 1.4 1.3 1.4
Long Term Care Center — — 0.7 0.6 0.7 0.6
Kodiak Fisheries Research Center — — 1.3 1.4 1.3 1.4
911 services — — 0.3 0.3 0.3 0.3
Research Court Apartments — — 0.1 0.1 0.1 0.1
Total expenses 27.9 25.0 8.7 6.5 36.6 31.5
Change in net position 10.0 8.2 0.8 1.7 10.8 10.0
Net position, beginning of year 164.0 155.7 55.7 53.9 219.6 209.6
Net position, end of year $ 174.0 164.0 56.5 55.7 230.4 219.6
Statement of Activities by Activity Type (in millions)
activities activities Total activities
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
20
Governmental Activities – increased the Borough’s net position by $10 million.
Revenues - $4.7 million increase from 2023: The two largest sources are Property Taxes and Operating and
Operating Grants at $17.8 million and $5.9 million, respectively. Investment earnings was the largest
increasing revenue by $4.4 million due to increasing interest rates and the largest decreasing revenue was
a $630 thousand reduction in severance tax collections due to fishing quota restrictions and a reduction in
the tax rate.
Expenses - $2.9 million increase from 2023: The largest functional expense is Primary and Secondary
Education, which amounted to $17.2 million, a 4.0% decrease from 2023 due to decreased funding to the
school district. General Government was the second largest expense at $7.4 million a $3.6 million (95.4%)
increase from 2023 due to increased salary and benefit costs and a $638 thousand loss on the disposal of
capital assets. Most other function categories decreased or stayed consistent, with the exception of interest
on long-term debt which increased by $127,919 due the final payments on the unrefunded portion of the
debt refunding which occurred in 2021.
Charges for services
3%
Operating grants and
contributions
16%
Property taxes
47%
Grants and
entitlements not
restricted to specific
programs
15%
Excise taxes
2%
Severance taxes
3%
Investment earnings
14%
Other
0%
FY2024 Governmental Activities - Revenue Sources
General government
27%
Public safety
2%
Community and
economic
development
3%
Health and social
services
1%
Primary and
secondary education
61%
Service district
maintenance
Interest on long-term debt
4%
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
21
Business Activities - increased the Kodiak Island Borough’s net position by $800 thousand.
Revenue - $1.2 million increase from 2023: The largest source is Charges for Services at $7.9 million which
increased by $93 thousand. Interest Earnings was the largest change in revenues with a $718 thousand
increase due to a better interest rate environment for investments.
Expenses - $2.2 million increase from 2023: The largest source is from the Municipal Solid Waste
Collection and Disposal fund which had $717 thousand in increased closure-post closure costs and $1
million of additional depreciation now that the treatment plant is completed.
Personnel
services
16%
Contracted
services
5%
Maintenance &
repair
11%
Depreciation
43%
General
Administration
15%
Recycling services
4%
E911 service
4%
Contributions
2%
FY2024 Business-Type Activities - Expenses
Charges for Services
83%
Investment Income
9%
Other
8%
FY2024 Business-Type Activities - Revenue
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
22
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As noted earlier, the Borough uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements. These funds are accounted for using the modified accrual basis of accounting.
Governmental Funds – The focus of the Borough’s governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the Borough’s financing requirements. Unassigned fund balance may serve as a useful measure of a
government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the Borough’s governmental funds reported combined ending fund
balances of $82.4 million, an increase of $6.1 million compared to the beginning of the year. Of this total
amount, $213 thousand constitutes nonspendable, $78 thousand was restricted, $48.4 million was
committed, $14.1 million was assigned, and $19.6 million was unassigned fund balance.
The General Fund is the main operating fund of the Borough. At the end of the current fiscal year,
nonspendable fund balance of the General Fund was $211 thousand, with an unassigned fund balance of
$20.1 million for a total fund balance of $20.3 million. As a measure of the General Fund’s liquidity, it
may be useful to compare fund balance to total expenditures. Unassigned fund balance represents 298.9%
of total General Fund expenditures.
$20,310,145
$(511,307)
$41,547,395
$419,519 $445,093
$20,158,568
(10,000,000)
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
General Education Facilities Debt Service State Capital
Grants
Non-Major Funds
GOVERNMENTAL FUNDS - FUND BALANCE
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
23
Governmental Funds (Major Funds) 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 thousand at year-end. A lost court case resulted in the repayment of tax
revenues, which was the key factor of the deficit.
Facilities Fund (Special Revenue Fund) – Fund balance increased by $1.6 million during the
current fiscal year. Investment income, the sole revenue source for the fund, was $2.5 million,
which was $2.1 million more than the previous year. Although 85% of earnings are eligible for
use, only $850 thousand was used.
Education Debt Service Fund (Debt Service Fund) – Fund balance decreased by $268 during the
current fiscal year. At year end, the fund balance is $420 thousand and meets the minimum required
reserve balance of $275 thousand.
Other Governmental Funds (Non-Major Funds) Highlights
Other Governmental funds – Aggregate fund balance increased by $2.26 million during the current
fiscal year; Special Revenue Funds increased $1.14 and Capital Projects Funds increased $1.12 million.
Building and Grounds (Special Revenue Fund) – Fund balance increased by $466 thousand. The
key factor leading to this was improved investment earnings and a reduction in expenses with the
sale of a school building.
Renewal and Replacement Projects Fund (Capital Projects Fund) – Fund balance increased by $1.6
million from property tax revenue of $1.7 million and a transfer in of $845 thousand.
(The remainder of this page intentionally left blank.)
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
24
Proprietary Funds – The Borough’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail. The only proprietary funds the Borough has is
Enterprise funds.
As of the end of the current fiscal year, the Borough’s proprietary funds reported combined net position of
$56.5 million, an increase of $777 thousand compared to the beginning of the year. Equity in central
treasury increased by $325 thousand and receivables increased by $483 thousand in comparison to the prior
year.
Major Fund Highlights
Municipal Solid Waste Collection and Disposal – Net position decreased by $780 thousand
primarily due to increased closure/post closure liabilities and increased depreciation for completed
leachate treatment plant.
Hospital Facility – Net position increased by $626 thousand, primarily due to improved
investment earning and fewer facility repair projects due to vacant positions.
Long-Term Care Center – Net position increased by $943 thousand, 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 thousand. Although lease and
investment income increased, cost of repairs on an aging facility have also increased.
Other Nonmajor Fund Highlights
911 Services – Since the revenues to this fund are passed through to the City of Kodiak, net
position at year-end is $0.
Research Court Apartments – Net position increased by $17 thousand due to stable tenant income
and repair expenses.
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
Municipal Solid
Waste
Long-Term Care
Center
Other Non-Major
Funds
FY2024 Proprietary Funds -
Operating Revenue versus Operating Expenses
Operating Revenues
Operating Expenses
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
25
GENERAL FUND BUDGETARY HIGHLIGHTS (pages 82-83)
The Borough’s budget is prepared, according to Alaska law, using a basis of accounting that is consistent
with accounting principles generally accepted in the United States of America. The most significant budget
areas are in the General Fund.
Revenues - $2.4 million more than budgeted: The largest difference between budgeted and actual revenues
was investment income receiving $2.1 million more than budgeted due to improved interest rates for
investments and local sea products severance taxes receiving $353 thousand less than budgeted due to
reduced fisheries quotas and a reduced tax rate.
Expenditures - $1 million less than budgeted: The largest difference between budgeted and actual expenses
was the finance department expending $174 thousand less than budgeted due to several vacant positions.
Most departments expended less than budgeted with the exception of the general administration department
that expending $3 thousand more due to multiple long-term unemployment claims and the building official
which expended $6 thousand more in payroll related costs.
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Property
Taxes
Severance
Taxes
Excise Tax State Sources Federal
Sources
Other
FY2024 Budget to Actual Comparison of Revenues
Budgeted
Actual
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
General
Government
Public Safety Community &
Economic
Development
Emergency
Preparedness
Non-Profit Parks and
Recreation
FY2024 Budget to Actual Comparison of
Expenditures - By Function
Budgeted
Actual
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
26
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets (Note 8 on page 54-58)
The Borough’s investment in capital assets (net of depreciation) as of June 30, 2024 increased by $4.9
million as compared to June 30, 2023. Assets include land, buildings and improvements, improvements
other than buildings, machinery and equipment, and construction work-in-progress. During the year, the
construction work-in-progress decreased by $24.4 million which increased the Buildings and
Improvements, and improvements other than buildings along with an increase of $704 thousand of
depreciation expenses. These changes are primarily due to the completion of the Leachate Treatment Plant
in the Solid Waste Collection fund.
Long-Term Debt (Note 10, pages 59-64)
At the end of the current fiscal year, the Borough’s total General Obligation outstanding bonded debt was
$43,615,000 (not including premiums), which was a $6.2 million decrease from June 30, 2023. This amount
is backed by the full faith and credit of the Borough. The remainder of the Borough’s debt represents loans,
revenue notes payable, compensated absences, and landfill closure/post-closure costs.
Governmental Business-type
activities activities
2024 2023 2024 2023 2024 2023
General obligation bonds, including premium$ 45.3 52.0 — — 45.3 52.0
Compensated absences 0.2 0.2 0.1 0.1 0.3 0.3
Landfill post closure care costs — — 7.0 6.7 7.0 6.7
Loans/notes payable — — 11.6 11.3 11.6 11.3
Revenue Bonds Payable, including premium — — 8.0 9.0 8.0 9.0
$ 45.5 52.2 26.7 27.1 72.2 79.3
Total
Activities
Outstanding Debt (in millions)
There is no general obligation debt limit imposed on the Borough by the State Constitution, state statutes,
or the Borough’s charter or code.
2024 2023 2024 2023 2024 2023
Artwork $ — — 0.0 0.0 0.0 0.0
Land 22.8 22.7 1.7 1.7 24.5 24.4
Construction work-in-progress 4.5 1.3 5.4 33.0 9.9 34.3
Buildings and improvements 98.9 102.8 24.4 26.6 123.3 129.4
Improvements other than buildings 9.8 11.9 30.0 2.5 39.8 14.4
Equipment 2.3 2.1 1.5 1.3 3.8 3.4
Infrastructure 0.1 0.2 — — 0.1 0.2
Unclassified plant in service 0.0 — 0.5 0.6 0.5 0.6
$138.4 141.0 63.5 65.7 201.9 206.7
Capital Assets
(net of depreciation, in millions)
Governmental
activities
Business-type
activities activities
Total
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
27
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
Economic Factors:
Kodiak continues to be one of the nation’s largest producers of seafood and the Borough has one
of the largest and most diversified fishing port in Alaska. In April 2024, NOAA released landing
statistics from 2022 where Kodiak’s rank slipped from 5th to 6th for fishing ports in the U.S. in
terms of value landed. New fisheries, such as kelp and oyster farming are being cultivated.
Although commercial fishing activities (excluding tourist-based fishing) were relatively
unaffected by COVID restrictions, processing activities saw operation interruptions related to
both staffing and supply chain disruptions and increased costs due to plant safety modifications
and personal protective equipment purchases. Several of the largest processing plants in Kodiak
have been sold during the last year and the amount of calendar days that the plants have been
able to keep workers employed for various fisheries have been reduced.
Tourism remains constant and revenues are back to pre-pandemic levels. Although cruise ship
visits have been fewer, the number of visits are increasing each year.
Kodiak’s general real estate market has been increasing since the late 1980s. The demand for
affordable housing dramatically increased with the closure of a major mobile home park in 2016.
The two largest constraint to the construction of housing is land availability and cost of supplies.
The Coast Guard is continuing to renovate and add new off-base housing in anticipation of their
increased personnel needs. Although Kodiak has begun to see an increase in both sales and sale
prices, the average home cost in 2024 was $455 thousand, which is about 4% higher than the
state average of $436 thousand.
Kodiak’s rental market has increasing rents and declining availability. 2024 rents increased
15.8% from 2023 to $1,713 for a two-bedroom apartment. Availability of vacant units decreased
for the third year in a row to just 3.3%.
The seasonally adjusted unemployment rate for the Kodiak Island Borough on June 30, 2024,
was 4.1% compared to 3.6% on June 30, 2023. The hiring of seasonal cannery and other fisheries-
related workers traditionally peaks around July and is virtually nothing in December which
generally accounts for seasonal highs and lows in the local unemployment rate. The
unemployment rate for the State of Alaska on June 30, 2024 was 4.5%.
Kodiak is home to the largest United States Coast Guard Base (USCG) in the United States
employing around 1,350 people and providing vital services to the marine industries that are an
integral part of Kodiak’s make-up. Base Kodiak supports both cutters and Air Station Kodiak.
Base Kodiak is the homeport to two large cutters with one additional large cutter and two more
small cutters scheduled to be homeported to Kodiak over the next few years. Air Station Kodiak
has three hangers that house supplies, maintenance equipment, C-130 Hercules airplanes, and
MH-60T helicopters. With the increased personnel and support staff, additional on-base housing
is being renovated and constructed.
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
28
Next Year’s Budgets and Rates:
Reduction to the Area-wide mill rate from 10.25 to 9.25.
Although assessed valuations continue to increase, General Fund property tax revenue increases
are limited to new property, property improvements, and changes to the Kodiak area Consumer
Price Index due to a Maximum Allowance of Property Tax Revenue formula.
Local contribution funding to the Kodiak Island Borough School District will increase to around
98% of State allowed funding by the borough. With the revenue limitations in place for property
taxes, the increase in school funding will mean a decrease to other areas funded by property tax
revenues.
Sea Product revenues from the State and from local sources are projected to decline due to
continued federal and state quota restrictions, abundance issues, and a reduction in severance tax
rate, which mirrors the reduction in the mill rate.
No increase to the State of Alaska’s ceiling of 22% for political subdivision contributions to
PERS (Public Employees Retirement System).
The Borough does not currently have any plans to issue new bonds. The Borough does plan to
participate in the next opportunity to refund the 2015 Series bonds in February of 2025, which
will result in lower payment amounts for that series in fiscal year 2026.
Landfill user fees are not expected to increase next year even with the expansion of cell number
three and the upgrade of leachate treatment plant.
All of these factors were considered in preparing the Borough’s budget for the fiscal year 2025.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Borough’s finances for all those with
an interest. Questions concerning any of the information provided in this report or requests for additional
information should be addressed to the Kodiak Island Borough, Director of Finance, 710 Mill Bay, Kodiak,
Alaska 99615.
BASIC FINANCIAL STATEMENTS
Component
Primary government unit Total reporting entity
Governmental Business-type School
activities activities Total District 2024 2023
Assets
Equity in central treasury $ 104,782,627 14,375,978 119,158,605 — 119,158,605 113,879,132
Due from primary
government — — — 15,364,922 15,364,922 17,566,532
Receivables:
Leases — 17,809,113 17,809,113 — 17,809,113 19,681,175
State of Alaska 414,419 — 414,419 2,356,541 2,770,960 2,872,579
Federal government 187,366 — 187,366 — 187,366 23,312
Property taxes, net of
allowance of $19,171 294,070 — 294,070 — 294,070 266,457
Severance taxes 136,646 — 136,646 — 136,646 169,179
Excise taxes 226,224 — 226,224 — 226,224 193,227
Interest 725,259 — 725,259 — 725,259 633,323
Land sales contracts
receivable 28,696 — 28,696 — 28,696 39,980
Accounts and other receivables 93,687 750,859 844,546 — 844,546 574,891
Current portion of
notes receivable — 145,769 145,769 — 145,769 140,763
Inventories — 2,130,967 2,130,967 522,286 2,653,253 2,770,938
Prepaid items 213,354 — 213,354 2,795 216,149 128,638
Restricted cash and equivalents — 1,445,574 1,445,574 — 1,445,574 1,374,054
Internal balances (34,956) 34,956 — — — —
Notes receivable — 594,338 594,338 — 594,338 740,107
Capital assets:
Non-depreciable 27,292,754 7,090,471 34,383,225 — 34,383,225 58,739,344
Depreciable, net 111,137,314 56,396,075 167,533,389 14,337,216 181,870,605 148,778,861
Net OPEB assets 1,589,574 568,238 2,157,812 762,629 2,920,441 15,272,921
Total assets 247,087,034 101,342,338 348,429,372 33,346,389 381,775,761 383,845,413
Deferred outflows of resources:
Related to bond refunding — — — — — 174,992
Pension and OPEB deferrals 562,208 200,977 763,185 4,144,081 4,907,266 5,425,999
Total deferred outflows
of resources 562,208 200,977 763,185 4,144,081 4,907,266 5,600,991
Total assets and deferred
outflows of resources $ 247,649,242 101,543,315 349,192,557 37,490,470 386,683,027 389,446,404
Liabilities:
Accounts payable $ 1,143,691 619,644 1,763,335 472,627 2,235,962 3,722,591
Accrued compensation
and related liabilities 156,333 — 156,333 3,153,736 3,310,069 3,265,081
Other accrued liabilities 184,076 52,920 236,996 — 236,996 284,335
Customer deposits 1,450 15,166 16,616 — 16,616 44,258
Unearned revenues 7,722,509 222,496 7,945,005 191,472 8,136,477 7,200,325
Due to component unit 15,364,922 — 15,364,922 — 15,364,922 17,566,532
Noncurrent liabilities:
Due within one year:
Accrued leave 77,081 29,934 107,015 — 107,015 89,332
Notes payable 6,822,277 1,890,904 8,713,181 — 8,713,181 8,513,619
Due in more than one year:
Accrued leave 167,058 78,779 245,837 694,217 940,054 905,212
Notes payable 38,501,548 17,693,952 56,195,500 — 56,195,500 63,724,373
Net pension liability 3,413,290 1,220,177 4,633,467 25,685,635 30,319,102 31,585,926
Landfill closure costs — 7,033,000 7,033,000 — 7,033,000 6,693,000
Total liabilities 73,554,235 28,856,972 102,411,207 30,197,687 132,608,894 143,594,584
Deferred inflows of resources:
Leases — 16,196,166 16,196,166 — 16,196,166 18,349,774
Pension and OPEB deferrals 76,352 27,294 103,646 808,443 912,089 1,547,349
Total deferred inflows
of resources 76,352 16,223,460 16,299,812 808,443 17,108,255 19,897,123
Net position:
Net investment in capital assets 93,525,762 43,901,690 137,427,452 762,629 138,190,081 136,142,411
Restricted:
Net OPEB assets 1,589,574 568,238 2,157,812 — 2,157,812 —
Commercial passenger vessel 78,097 — 78,097 — 78,097 54,247
Student activities — — — 882,085 882,085 891,801
Unrestricted 78,825,222 11,992,955 90,818,177 4,839,626 95,657,803 88,866,238
Total net position 174,018,655 56,462,883 230,481,538 6,484,340 236,965,878 225,954,697
Total liabilities, deferred inflows
of resources and net position $ 247,649,242 101,543,315 349,192,557 37,490,470 386,683,027 389,446,404
See accompanying notes to financial statements.
(With summarized financial information for June 30, 2023)
June 30, 2024
Statement of Net Position
KODIAK ISLAND BOROUGH
of Resources and Net Position
Liabilities, Deferred Inflows
Outflows of Resources
Assets and Deferred
29
Program revenues Net (expense) revenue and changes in net position
Operating Primary government Component unit
Charges for grants and Capital Governmental Business-type School Total reporting entity
Functions/Programs Expenses services contributions grants activities activities Total District 2024 2023
Primary government:
Governmental activities:
General government $7,422,565 1,013,697 40,409 743 (6,367,716) — (6,367,716) — (6,367,716) (2,942,732)
Public safety 574,608 35,852 14,871 — (523,885) — (523,885) — (523,885) (636,716)
Community and economic development 846,630 — 16,325 1,808,218 977,913 — 977,913 — 977,913 (646,465)
Emergency preparedness 17,810 — — — (17,810) — (17,810) — (17,810) (16,460)
Health and social welfare 158,819 — — — (158,819) — (158,819) — (158,819) (150,000)
Education, culture and recreation 20,265 — — — (20,265) — (20,265) — (20,265) (20,562)
Parks and recreation 6,167 — — — (6,167) — (6,167) — (6,167) (12,760)
Service district maintenance 618,344 47,150 — — (571,194) — (571,194) — (571,194) (665,801)
Primary and secondary education 17,163,738 — — — (17,163,738) — (17,163,738) — (17,163,738) (17,883,044)
Interest on long-term debt 1,052,310 — 5,877,863 — 4,825,553 — 4,825,553 — 4,825,553 4,947,837
Total governmental activities 27,881,256 1,096,699 5,949,468 1,808,961 (19,026,128) — (19,026,128) — (19,026,128) (18,026,703)
Business-type activities:
Municipal solid waste collection and
disposal 5,021,004 4,160,924 11,535 — — (848,545) (848,545) — (848,545) 1,268,339
Hospital facilities 1,318,569 1,394,915 — — — 76,346 76,346 — 76,346 76,663
Long Term Care Center 664,389 1,168,478 — — — 504,089 504,089 — 504,089 638,249
Kodiak Fisheries Research Center 1,269,667 1,072,086 2,212 — — (195,369) (195,369) — (195,369) (434,939)
911 service 322,004 — — — — (322,004) (322,004) — (322,004) (326,034)
Research court apartments 82,393 89,280 — — — 6,887 6,887 — 6,887 15,864
Total business-type activities 8,678,026 7,885,683 13,747 — — (778,596) (778,596) — (778,596) 1,238,142
Total primary government 36,559,282 8,982,382 5,963,215 1,808,961 (19,026,128) (778,596) (19,804,724) — (19,804,724) (16,788,561)
Component unit:
School District $56,363,154 192,503 10,193,642 97,819 (45,879,190) (45,879,190) (40,067,647)
General revenues:
Property taxes 17,793,535 — 17,793,535 — 17,793,535 18,130,369
Grants and entitlements not restricted to specific programs 3,996,780 — 3,996,780 33,815,546 37,812,326 38,222,289
Land sales 3,456 — 3,456 — 3,456 5,448
Severance taxes 1,089,780 — 1,089,780 — 1,089,780 1,719,343
Excise taxes 804,223 — 804,223 — 804,223 829,274
Support from primary government — — — 12,205,244 12,205,244 11,955,244
Investment earnings 5,315,474 844,893 6,160,367 — 6,160,367 1,078,303
Gain on disposal of capital assets 15,810 — 15,810 — 15,810 11,157
Other 69,434 710,677 780,111 30,243 810,354 1,154,974
Total general revenues 29,088,492 1,555,570 30,644,062 46,051,033 76,695,095 73,106,401
Change in net position 10,062,364 776,974 10,839,338 171,843 11,011,181 16,250,193
Net position, at beginning of year 163,956,291 55,685,909 219,642,200 6,312,497 225,954,697 209,704,504
Net position, at end of year $174,018,655 56,462,883 230,481,538 6,484,340 236,965,878 225,954,697
See accompanying notes to financial statements.
KODIAK ISLAND BOROUGH
Statement of Activities
Year ended June 30, 2024
(With summarized financial information for the year ended June 30, 2023)
30
State Capital
Education Grants Other
Education Debt Service Capital Project Governmental
Assets General Support Facilities Fund Fund Funds 2024 2023
Assets:
Equity in central treasury $ 24,173,351 14,902,627 41,547,395 22,098 3,826,798 20,310,358 104,782,627 99,827,815
Receivables:
State of Alaska 18,213 — — 396,206 — — 414,419 322,083
Federal government — — — — 186,623 743 187,366 23,312
Property taxes, net of
allowance of $19,171 64,331 169,151 — 22,921 — 37,667 294,070 266,457
Severance taxes 136,646 — — — — — 136,646 169,179
Excise taxes 226,224 — — — — — 226,224 193,227
Interest 725,259 — — — — — 725,259 633,323
Land sales contracts, due within one year — — — — — 12,003 12,003 12,075
Accounts and other receivables 59,173 — — — — 34,514 93,687 97,004
Prepaid items 210,785 — — — — 2,569 213,354 122,416
Due from other funds 19,466 — — — 216 4,833 24,515 —
Land sales contracts, due after one year — — — — — 16,693 16,693 27,905
Total assets $25,633,448 15,071,778 41,547,395 441,225 4,013,637 20,419,380 107,126,863 101,694,796
Liabilities:
Accounts payable $ 264,504 57,497 — — 696,494 125,196 1,143,691 631,138
Accrued compensation
and related liabilities 156,333 — — — — — 156,333 105,511
Customer deposits — — — — — 1,450 1,450 3,348
Due to component unit — 15,364,922 — — — — 15,364,922 17,566,532
Due to other funds 40,005 — — — — 19,466 59,471 —
Unearned revenues 4,801,159 — — — 2,872,050 49,300 7,722,509 6,807,236
Total liabilities 5,262,001 15,422,419 — — 3,568,544 195,412 24,448,376 25,113,765
Deferred inflows of resources -
Unavailable revenues 61,302 160,666 — 21,706 — 65,400 309,074 272,368
Total liabilities and deferred
inflows of resources 5,323,303 15,583,085 — 21,706 3,568,544 260,812 24,757,450 25,386,133
Fund balances:
Nonspendable 210,785 — — — — 2,569 213,354 122,416
Restricted — — — — — 78,097 78,097 54,247
Committed — — 41,547,395 419,519 — 6,448,725 48,415,639 45,928,606
Assigned — — — — 445,093 13,645,187 14,090,280 12,966,368
Unassigned 20,099,360 (511,307) — — — (16,010) 19,572,043 17,237,026
Total fund balances 20,310,145 (511,307) 41,547,395 419,519 445,093 20,158,568 82,369,413 76,308,663
Total liabilities, deferred inflows
of resources and fund balances $25,633,448 15,071,778 41,547,395 441,225 4,013,637 20,419,380 107,126,863 101,694,796
See accompanying notes to financial statements.
Liabilities, Deferred Inflows of Resources,
and Fund Balances
KODIAK ISLAND BOROUGH
Totals
Governmental Funds
Special Revenue Funds
(With summarized financial information for June 30, 2023)
June 30, 2024
Balance Sheet
31
Amount reported as fund balances on the governmental funds balance sheet $ 82,369,413
Amounts reported for governmental activities in the statement of net
position are different because:
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds.138,430,068
Long-term receivables, delinquent property taxes, and loans are
not available to pay for current-period expenditures and,
therefore, are unavailable in the funds:
Property taxes $280,378
Notes receivable - land sales 28,696 309,074
Long-term liabilities, including bonds payable, are not due and
payable in the current period and, therefore, are not reported
in the funds:
General obligation bonds payable (43,615,000)
Bond premium (1,708,825)
Accrued interest expense (184,076)
Compensated absences (244,139) (45,752,040)
Deferred outflows of resources represent costs applicable to future
periods, and therefore, are not reported in the governmental funds -
Deferred outflows related to pension and OPEB 562,208
Deferred inflows of resources represent resources or benefits
applicable to future periods, and therefore, are not reported in the
governmental funds -
Deferred inflows related to pension and OPEB (76,352)
Proportionate share of the collective net OPEB assets 1,589,574
Proportionate share of the collective net pension liabilities (3,413,290)
Net position of governmental activities $ 174,018,655
See accompanying notes to financial statements.
KODIAK ISLAND BOROUGH
Reconciliation of Net Position Between the
June 30, 2024
Government-Wide Financial Statements and the Fund Financial Statements
32
State Capital
Education Grants Other
Education Debt Service Capital Project Governmental
General Support Facilities Fund Fund Funds 2024 2023
Revenues:
Property taxes and assessments $2,114,661 11,879,865 — 424,344 — 3,326,675 17,745,545 18,121,497
Transient accommodations tax — — — — — 99,210 99,210 122,016
Severance taxes 990,570 — — — — — 990,570 1,597,327
Excise taxes 804,223 — — — — — 804,223 829,274
Intergovernmental:
State sources 1,969,874 — — 5,877,863 2,945 25,348 7,876,030 7,842,443
Federal sources 2,090,563 — — — 1,805,273 13,785 3,909,621 2,124,729
Charges for services 664 — — — — 939,220 939,884 839,696
Licenses, permits and fees 85,665 — — — — 55,550 141,215 113,364
Investment income 2,388,036 — 2,485,396 — — 442,042 5,315,474 951,821
Rentals — — — — — 15,600 15,600 15,100
Land sales — — — — — 14,740 14,740 15,540
Other 19,393 — — — 5,371 44,670 69,434 730,209
Total revenues 10,463,649 11,879,865 2,485,396 6,302,207 1,813,589 4,976,840 37,921,546 33,303,016
Expenditures:
Current:
General government 5,478,077 — — 3,150 — 562,407 6,043,634 5,062,574
Public safety 152,310 — — — — 592,833 745,143 725,305
Community and
economic development 783,858 — — — — 86,844 870,702 944,084
Emergency preparedness 17,810 — — — — — 17,810 16,460
Health and social welfare 158,819 — — — — — 158,819 150,000
Education, culture
and recreation 20,265 — — — — — 20,265 20,562
Parks and recreation 6,167 — — — — — 6,167 12,760
Service district maintenance — — — — — 618,344 618,344 700,146
Primary and secondary education 107,220 12,205,265 — — — — 12,312,485 12,035,259
Capital outlay:
Schools — — — — 1,567,243 424,142 1,991,385 461,278
General — — — — 246,919 1,282,571 1,529,490 686,810
Debt service:
Principal — — — 6,240,000 — — 6,240,000 6,035,000
Interest — — — 1,322,362 — — 1,322,362 1,531,316
Total expenditures 6,724,526 12,205,265 — 7,565,512 1,814,162 3,567,141 31,876,606 28,381,554
Excess (deficiency) of revenues
over expenditures 3,739,123 (325,400) 2,485,396 (1,263,305) (573) 1,409,699 6,044,940 4,921,462
Other financing sources (uses):
Proceeds from sale of capital assets 15,810 — — — — — 15,810 11,157
Transfers in — — — 995,618 — 850,000 1,845,618 12,444,981
Transfers out (995,618) — (850,000) — — — (1,845,618) (12,444,981)
Net other financing
sources (uses)(979,808) — (850,000) 995,618 — 850,000 15,810 11,157
Change in fund balances 2,759,315 (325,400) 1,635,396 (267,687) (573) 2,259,699 6,060,750 4,932,619
Fund balances (deficit), at beginning of year 17,550,830 (185,907) 39,911,999 687,206 445,666 17,898,869 76,308,663 71,376,044
Fund balances (deficit), at end of year $ 20,310,145 (511,307) 41,547,395 419,519 445,093 20,158,568 82,369,413 76,308,663
See accompanying notes to financial statements.
Totals
Special Revenue Funds
KODIAK ISLAND BOROUGH
Statement of Revenues, Expenditures and Changes
in Fund Balances
Governmental Funds
Year ended June 30, 2024
(With summarized financial information for the year ended June 30, 2023)
33
KODIAK ISLAND BOROUGH
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2024
Change in fund balances – total governmental funds $ 6,060,750
Amounts reported for governmental activities in the Statement of
Activities are different because:
Governmental funds report capital outlays as expenditures.
However, in the Statement of Activities the cost of those assets
is allocated over their estimated useful lives and reported as
depreciation expense:
Capital outlay $3,577,684
Depreciation expense (5,543,813) (1,966,129)
Governmental funds only report the revenue from the sale of
assets to the extent proceeds are received from the sale. In
the Statement of Activities, a gain or loss is reported for each
sale or disposal. This is the net effect of transactions involving
capital assets:
Cost of assets disposed (4,183,136)
Accumulated depreciation of assets disposed 3,544,706 (638,430)
Certain revenues in the statement of activities do not provide
current financial resources and are reported as unearned or
unavailable revenues in the funds:
Property tax 280,378
Land sale proceeds 28,696 309,074
Certain revenues that were earned in a prior year provide
current financial resources:
Accrued property tax (232,388)
Land sale contracts (39,980) (272,368)
The issuance of long-term debt provides current financial
resources to governmental funds, while the repayment of the
principal of long-term debt consumes the current financial
resources of governmental funds. Neither transaction, however,
has any effect on net position. Also, governmental funds do not
report the accrual of interest expense on debt when it is not
payable from currently available resources:
Interest expenditures applied to accrued interest 42,762
Principal repayments 6,240,000
Bond premium amortization 402,282 6,685,044
Some expenses reported in the Statement of Activities do not
require the use of current financial resources and, therefore,
are not reported as expenditures in governmental funds:
Change in compensated absences (34,830)
Change in the proportionate share of the collective
net pension liabilities (264,518)
Change in the proportionate share of the collective net OPEB assets 321,940
Change in deferred outflows related to bond refunding (174,992)
Change in deferred outflows related to pension and OPEB (1,266)
Change in deferred inflows related to pension and OPEB 38,089 (115,577)
Change in net position of governmental activities $
10,062,364
See accompanying notes to financial statements.
of Governmental Funds to the Statement of Activities
34
Municipal Kodiak Other
Solid Waste Fisheries Nonmajor
Collection and Hospital Long Term Research Enterprise Totals
Disposal Facilities Care Center Center Funds 2024 2023
Current assets:
Equity in central treasury $515,322 7,569,164 3,076,576 2,945,560 269,356 14,375,978 14,051,317
Receivables:
Customers 517,864 — — 193,097 39,898 750,859 477,887
Leases — 1,219,521 673,098 448,192 — 2,340,811 2,130,597
Current portion of note receivable — — — 145,769 — 145,769 140,763
Prepaids — — — — — — 4,182
Due from other funds 30,860 — — 4,008 88 34,956 —
Total current assets 1,064,046 8,788,685 3,749,674 3,736,626 309,342 17,648,373 16,804,746
Restricted cash and equivalents 338,661 — 1,106,913 — — 1,445,574 1,374,054
Leases — 2,629,413 7,043,221 5,795,668 — 15,468,302 17,550,578
Inventories 2,130,967 — — — — 2,130,967 2,314,593
Capital assets:
Non-depreciable 6,161,464 445,144 94,860 389,003 — 7,090,471 34,711,841
Depreciable, net 30,777,426 9,510,311 11,373,278 4,564,727 170,333 56,396,075 30,947,052
Total capital assets 36,938,890 9,955,455 11,468,138 4,953,730 170,333 63,486,546 65,658,893
Notes receivable — — — 594,338 — 594,338 740,107
Net OPEB assets 476,812 — — 91,426 — 568,238 570,850
Total noncurrent assets 39,885,330 12,584,868 19,618,272 11,435,162 170,333 83,693,965 88,209,075
Total assets 40,949,376 21,373,553 23,367,946 15,171,788 479,675 101,342,338 105,013,821
Pension and OPEB deferrals 168,641 — — 32,336 — 200,977 253,747
Total assets and deferred
outflows of resources $41,118,017 21,373,553 23,367,946 15,204,124 479,675 101,543,315 105,267,568
Current liabilities:
Accounts payable $458,077 — 4,062 32,603 124,902 619,644 2,352,784
Customer deposits 7,459 — — 54 7,653 15,166 40,910
Current portion of accrued —
compensation and related liabilities 24,796 — — 5,138 — 29,934 28,296
Unearned revenues — 115,356 86,969 15,270 4,901 222,496 223,995
Interest payable 43,583 — 9,337 — — 52,920 57,497
Current portion of notes and bonds payable 1,140,904 — 750,000 — — 1,890,904 1,870,905
Total current liabilities 1,674,819 115,356 850,368 53,065 137,456 2,831,064 4,574,387
Noncurrent liabilities:
Accrued compensation and
related liabilities 78,331 — — 448 — 78,779 94,008
Notes and bonds payable 11,338,952 — 6,355,000 — — 17,693,952 18,400,980
Accrual for landfill closure
and postclosure costs 7,033,000 — — — — 7,033,000 6,693,000
Net pension liability 1,023,857 — — 196,320 — 1,220,177 1,417,974
Total noncurrent liabilities 19,474,140 — 6,355,000 196,768 — 26,025,908 26,605,962
Total liabilities 21,148,959 115,356 7,205,368 249,833 137,456 28,856,972 31,180,349
Deferred inflows of resources:
Leases — 3,512,424 7,077,984 5,605,758 — 16,196,166 18,349,774
Pension and OPEB deferrals 22,903 — — 4,391 — 27,294 51,536
Total deferred inflows of resources 22,903 3,512,424 7,077,984 5,610,149 — 16,223,460 18,401,310
Net position:
Net investment in capital assets 24,459,034 9,955,455 4,363,138 4,953,730 170,333 43,901,690 45,387,008
Restricted:
Net OPEB assets 476,812 — — 91,426 — 568,238 —
Debt service 338,661 — 1,106,913 — — 1,445,574 1,374,054
Unrestricted (5,328,352) 7,790,318 3,614,543 4,298,986 171,886 10,547,381 8,924,847
Total net position 19,946,155 17,745,773 9,084,594 9,344,142 342,219 56,462,883 55,685,909
Total liabilities, deferred inflows
of resources and net position $ 41,118,017 21,373,553 23,367,946 15,204,124 479,675 101,543,315 105,267,568
See accompanying notes to financial statements.
KODIAK ISLAND BOROUGH
Deferred outflows of resources:
of Resources and Net Position
Proprietary Funds - Business - Type Activities - Enterprise Funds
Statement of Net Position
(With summarized financial information for June 30, 2023)
June 30, 2024
Outflows of Resources
Assets and Deferred
Liabilities, Deferred Inflows
35
KODIAK ISLAND BOROUGH
Statement of Revenues, Expenses, and Changes in Net Position
Year ended June 30, 2024
(With summarized financial information for the year ended June 30, 2023)
Municipal Kodiak Other
Solid Waste Fisheries Nonmajor
Collection and Hospital Long Term Research Enterprise
Disposal Facilities Care Center Center Funds 2024 2023
Operating revenues:
Charges for services:
Solid waste disposal $4,160,924 — — — — 4,160,924 4,120,050
Lease income — 1,170,808 765,187 719,176 89,280 2,744,451 2,597,068
Interest revenue — 224,107 403,291 352,910 — 980,308 1,076,002
Other 17,750 142,896 227,827 — 322,204 710,677 340,083
Total operating revenues 4,178,674 1,537,811 1,396,305 1,072,086 411,484 8,596,360 8,133,203
Operating expenses:
Personnel services 1,230,749 44,082 848 93,318 8,305 1,377,302 1,545,715
Contracted services 334,186 495 460 — — 335,141 296,864
Maintenance and repairs 145,495 194,469 — 10,369 631 350,964 311,318
Depreciation 1,241,939 1,079,523 518,933 719,870 34,066 3,594,331 2,834,102
General and administration 781,331 — 21,474 377,917 34,259 1,214,981 843,435
Miscellaneous — — 5,307 68,193 6,632 80,132 73,799
Telephone services — — — — 320,504 320,504 324,202
Recycling services 333,936 — — — — 333,936 330,396
Closure and postclosure costs (reduction)598,921 — — — — 598,921 (377,580)
Contributions 177,023 — — — — 177,023 169,935
Total operating expenses 4,843,580 1,318,569 547,022 1,269,667 404,397 8,383,235 6,352,186
Operating income (loss) (664,906) 219,242 849,283 (197,581) 7,087 213,125 1,781,017
Nonoperating revenues (expenses):
Intergovernmental -
State of Alaska 11,535 — — 2,212 — 13,747 (28,253)
Investment income 50,673 406,970 211,129 166,416 9,705 844,893 126,482
Interest revenue — — — — — — 52,777
Interest expense (177,424) — (117,367) — — (294,791) (174,539)
Total nonoperating
revenues (expenses)(115,216) 406,970 93,762 168,628 9,705 563,849 (23,533)
Change in net position (780,122) 626,212 943,045 (28,953) 16,792 776,974 1,757,484
Net position, at beginning of year 20,726,277 17,119,561 8,141,549 9,373,095 325,427 55,685,909 53,928,425
Net position, at end of year $19,946,155 17,745,773 9,084,594 9,344,142 342,219 56,462,883 55,685,909
See accompanying notes to financial statements.
Proprietary Funds - Business - Type Activities - Enterprise Funds
Totals
36
Municipal
Solid Waste Kodiak Other
Collection Long Term Fisheries Nonmajor
and Hospital Care Research Enterprise Totals
Disposal Facilities Center Center Funds 2024 2023
Cash flows from (for) operating activities:
Cash received from customers $4,049,162 1,527,167 2,036,642 1,116,498 408,693 9,138,162 9,167,345
Payments to suppliers (3,504,769) (194,964) (788,366) (750,122) (361,512) (5,599,733) (4,105,297)
Payments to employees (1,324,973) (44,082) (848) (165,596) (8,305) (1,543,804) (1,586,884)
Net cash from (for) operating activities (780,580) 1,288,121 1,247,428 200,780 38,876 1,994,625 3,475,164
Cash flows from (for) noncapital financing activities:
Net change in interfund receivable/payable (30,860) — — (4,008) (88) (34,956) —
Cash flows from (for) capital and related
financing activities:
Acquisition and construction of capital assets (1,389,938) (334) (5,222) (26,490) — (1,421,984) (3,972,115)
Interest paid on notes and bonds payable (181,737) — (117,631) — — (299,368) (181,032)
Issuance of note payable 1,183,876 — — — — 1,183,876 —
Principal payments on notes and bonds payable (1,130,905) — (740,000) — — (1,870,905) (1,893,715)
Net cash from (for) capital and
related financing activities (1,518,704) (334) (862,853) (26,490) — (2,408,381) (6,046,862)
Cash flows from investing activities:
Interest and dividends received 50,673 406,970 211,129 166,416 9,705 844,893 179,259
Net change in cash and
cash equivalents (2,279,471) 1,694,757 595,704 336,698 48,493 396,181 (2,392,439)
Cash and equivalents, at beginning of year 3,133,454 5,874,407 3,587,785 2,608,862 220,863 15,425,371 17,817,810
Cash and equivalents, at end of year $ 853,983 7,569,164 4,183,489 2,945,560 269,356 15,821,552 15,425,371
Reconciliation of cash and cash equivalents
to the Statement of Net Position:
Equity in central treasury $ 515,322 7,569,164 3,076,576 2,945,560 269,356 14,375,978 14,051,317
Restricted cash and equivalents 338,661 — 1,106,913 — — 1,445,574 1,374,054
$853,983 7,569,164 4,183,489 2,945,560 269,356 15,821,552 15,425,371
Reconciliation of operating income (loss) to net
cash from (for) operating activities:
Operating income (loss)$(664,906) 219,242 849,283 (197,581) 7,087 213,125 1,781,017
Adjustments to reconcile operating income (loss)
to net cash from (for) operating activities:
Depreciation 1,241,939 1,079,523 518,933 719,870 34,066 3,594,331 2,834,102
Noncash State PERS on-behalf payments 11,535 — — 2,212 — 13,747 (28,253)
Closure and postclosure costs 340,000 — — — — 340,000 (496,000)
Changes in assets and liabilities that
provided (used) cash:
(Increase) decrease in assets and deferred
outflows of resources:
Customer receivables (134,012) — — (137,668) (1,292) (272,972) 2,771
Lease receivable — 1,160,164 640,337 71,561 — 1,872,062 2,095,208
Inventories 183,626 — — — — 183,626 (2,216,446)
Prepaids 2,621 — — 1,561 — 4,182 (4,182)
Notes receivable — — — 140,763 — 140,763 135,928
Net pension and OPEB assets (39,234) — — 41,846 — 2,612 754,954
Deferred outflow of resources:—
Pension and OPEB 25,866 — — 26,904 — 52,770 (117,198)
Increase (decrease) in liabilities and
deferred inflows of resources
Accounts payable (1,660,124) — 4,062 (77,592) 514 (1,733,140) 2,020,485
Customer deposits 4,500 — — (30,244) — (25,744) (35,357)
Accrued compensation (12,716) — — (875) — (13,591) (29,832)
Unearned revenues — — — — (1,499) (1,499) 6,400
Retainage payable — — —
Net pension and OPEB liabilities (63,074) — — (134,723) — (197,797) 222,347
Deferred inflow of resources:
Related to bond refundings — — — — — — (141,542)
Pension and OPEB (16,601) — — (7,641) — (24,242) (843,187)
Leases — (1,170,808) (765,187) (217,613) — (2,153,608) (2,466,051)
Net cash from (for)
operating activities $(780,580) 1,288,121 1,247,428 200,780 38,876 1,994,625 3,475,164
See accompanying notes to financial statements.
Statement of Cash Flows
KODIAK ISLAND BOROUGH
Proprietary Funds - Business - Type Activities - Enterprise Funds
(With summarized financial information for the year ended June 30, 2023)
Year ended June 30, 2024
37
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
Year Ended June 30, 2024
38
(1) Summary of Significant Accounting Policies
(a) Reporting Entity
The Kodiak Island Borough (the Borough), Alaska, was organized to perform the municipal duties
allowed by Alaska Statutes and as directed by its residents. As required by accounting principles
generally accepted in the United States of America, these financial statements present the government
and its component unit, an entity for which the government is considered to be financially accountable.
The discretely presented component unit is reported in a separate column in basic financial statements
to emphasize it is legally separate from the government. The Borough reviewed its relationship with
other organizations and determined that the following organization is a component unit.
Discretely Presented Component Unit
The Kodiak Island Borough School District (KIBSD) is a legally separate governmental entity, which
is responsible for public education within the Borough. Members of the School Board are elected by
the voters; however, the Borough imposes its will over KIBSD because the Borough Assembly has
the authority to approve and/or alter the total budget of KIBSD. The Borough also must levy the
necessary taxes, and issue bonds for KIBSD. KIBSD has a June 30 fiscal year end, therefore, the
financial information presented in these financial statements is as of and for the fiscal year ended June
30, 2024.
Complete financial statements for the component unit may be obtained at the entity’s administrative
offices for the Kodiak Island Borough School District.
Kodiak Island Borough School District
722 Mill Bay Road
Kodiak, Alaska 99615
(b) Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the activities of the primary government and its component unit.
For the most part, the effect of inter-fund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business type activities, which rely to a significant extent on fees and charges
for support. Likewise, the primary government is reported separately from the legally separate
component unit for which the primary government is financially accountable.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
39
The statement of activities demonstrates the degree to which the direct expenses of a given function
or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with
a specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds, if applicable, are reported as
separate columns in the fund financial statements.
Deferred inflows of resources are the acquisition of fund balance / net assets by the Borough that are
applicable to a future reporting period. Deferred outflows of resources are the consumption of fund
balance / net assets that are applicable to a future reporting period.
(c) Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide and proprietary fund financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year
for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as
they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the government considers revenues to be available if they are collected within 60 days
of the end of the current fiscal period except for grant revenues which are recognized when the related
expenditure is incurred irrespective of when the cash is received. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well
as expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property taxes and interest associated with the current fiscal period are all considered to be susceptible
to accrual and have been recognized as revenues of the current fiscal period. All other revenue items
are considered to be measurable and available only when cash is received by the government.
The government reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another fund.
The Education Support Special Revenue Fund accounts for property taxes and assessments
dedicated to the Kodiak Island Borough School District in support of primary and secondary
education services.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
40
The Facilities Special Revenue Fund accounts for the proceeds from the sale of Shuyak Island. The
single most important goal is to preserve the principal of the fund. Interest earnings, after inflation
proofing, can be used for debt service, building insurance and capital projects.
The Education Debt Service Fund was established to finance and account for the payment of interest
and principal on all general obligation debts, serial and term, other than that payable exclusively
from special assessments and revenue debt issued for and serviced by an enterprise fund.
The State Capital Grants Capital Project Fund accounts for capital improvement projects relating
to grants received from the State of Alaska.
The government reports the following major proprietary funds:
The Municipal Solid Waste Collection and Disposal Fund accounts for the collection and disposal
of solid waste and metal recycling services for the Kodiak Island Borough and debt service
payments on related debt.
The Hospital Facilities Fund accounts for rents on the Borough owned hospital and other hospital
related revenue.
The Long Term Care Center Fund was created in fiscal year 2017 to account for the rents on the
Borough owned Long Term Care Center and debt service payments on related debt. These
activities were accounted for in the Hospital Facilities Fund until completion of the Long Term
Care Center.
The Kodiak Fisheries Research Center Fund accounts for rents and expenses on the Borough
owned Kodiak Fisheries Research Center. Multiple tenants pay lease funds to participate in this
multi-agency research facility committed to the preservation of the North Pacific marine
ecosystem and resources.
Additionally, the Borough also reports the following fund types:
Special Revenue Funds – account for revenue sources that are legally restricted or committed to
expenditure for specific purposes.
Capital Project Funds – account for the acquisition of capital assets or construction of major
capital projects not being financed by proprietary funds.
As a general rule the effect of inter-fund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are charges between various functions of the
government. Elimination of these charges would distort the direct costs and program revenues reported
for the various functions concerned.
Amounts reported as program revenues include (1) charges to customers or applicants for goods,
services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and
contributions. Internally dedicated resources are reported as general revenues rather than as program
revenues. Likewise, general revenues include all taxes.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
41
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues
of the enterprise funds are charges to customers for sales and services and lease revenues. Operating
expenses for enterprise funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
(d) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Fund
Balance/Net Position
Cash and Investments
Cash and temporary investments of Borough funds are pooled in a central treasury. Each fund’s portion
of this pool is displayed on the Balance Sheet and Statement of Net Position as “Equity in Central
Treasury”.
The Borough participates in the Alaska Municipal League Investment Pool (AMLIP). AMLIP is not
SEC registered and is unrated. Alaska Statute 37.23 establishes regulatory oversight of the pool. The
law sets forth numerous requirements regarding authorized investments and reporting. The pool is
incorporated in the State of Alaska as a nonprofit corporation and reports to its Board of Directors.
Alaska Statute 37.23.050 requires the retention of an investment manager.
The AMLIP manager is required to produce monthly disclosure statements to the pool. The pool has
also retained an investment advisor to monitor the performance of the investment manager and to
ensure compliance with investment policies. All participation in the pool is voluntary. The pool must
maintain a dollar weighted average maturity of 90 days or less, and only purchase instruments having
remaining maturities of 397 days or less. On a monthly basis, the investments in the pool are reviewed
for fair value by an independent pricing service.
All highly liquid investments, excluding restricted assets, with original maturities of ninety days or
less are considered to be cash equivalents. For purposes of the Statements of Cash Flows, equity in
central treasury held by enterprise funds are treated as cash equivalents.
Investments for the government, as well as the component unit, are reported at fair value, as determined
by quoted market prices. The reported value of the pool is the same as the fair value of the pool shares.
Fair Value of Financial Instruments
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The following financial instruments
are recorded at fair value or at amounts that approximate fair value: (1) cash and cash equivalents, (2)
receivables, net, (3) certain other current assets, (4) accounts payable, and (5) other current liabilities.
The carrying amounts reported in the Balance Sheet and Statement of Net Position for the above
financial instruments closely approximates their fair value due to the short-term nature of these assets
and liabilities, except for the Borough’s investments. The carrying amount of the Borough’s
investments are determined based on quoted market prices.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
42
The carrying amount of notes receivable and notes payable approximates fair value for those financial
instruments with interest at variable rates, as those rates approximate current market rates for notes
with similar maturities and credit quality.
Receivables and Payables
Activity between funds that are representative of lending /borrowing arrangements outstanding at the
end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of
inter-fund loans) or “advances to/from other funds” (i.e., the noncurrent portion of inter-fund loans).
Any residual balances outstanding between the governmental activities and business type activities are
reported in the government wide financial statements as “internal balances.”
Advances between funds, as reported in the fund financial statements, are offset by a fund balance
reserve account in applicable governmental funds to indicate that they are not available for
appropriation and are not expendable available financial resources.
Leases
The Borough is a lessor for non-cancellable leases and recognizes a lease receivable and a deferred
inflow of resources in the financial statements. At the commencement of a lease, the Borough initially
measures the lease receivable at the present value of payments expected to be received during the lease
term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received.
The deferred inflow of resources is initially measured as the initial amount of the lease receivable,
adjusted for lease payments received at or before the lease commencement date. Subsequently, the
deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the Borough determines (1) the discount rate it uses to
discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
a. The Borough uses its current borrowing rate as the discount rate for leases.
b. The lease term includes the non-cancellable period of the lease; the term of the lease contract,
including options to extend, must be more than 12 months. Lease receipts included in the
measurement of the lease receivable is composed of fixed payments from the lessee.
The Borough monitors changes in circumstances that would require a remeasurement of its leases and
will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are
expected to significantly affect the amount of the lease receivable.
Inventories and Prepaid Items/Expenses
Enterprise Fund inventories consist of cover rock that will be used to close cells at the Municipal Solid
Waste Landfill. Inventories are stated at cost (first-in, first-out) and are recorded as expenses when
used (consumption method).
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
43
Payments made to vendors for services that are applicable to future accounting periods are recorded
as prepaid items. The prepaid assets do not reflect current available resources and, thus, an equivalent
portion of fund balance is classified as nonspendable in the fund financial statements. Prepaid items
and expenses are based on the consumption method.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, street
lights, and similar items including those acquired prior to fiscal years ended after June 30, 1980), are
reported in the applicable governmental or business-type activities columns in the government-wide
financial statements. Capital assets are defined by the Borough as assets with an initial, individual cost
of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such
assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated
capital assets are recorded at acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business type activities is included as part
of the capitalized value of the assets constructed. There was no interest capitalized during the year.
Property, plant, and equipment of the primary government is depreciated using the straight line method
over the following estimated useful lives:
Buildings and improvements 10-40 years
Improvements other than buildings 10-15 years
Equipment 5-10 years
Infrastructure 40 years
Compensated Absences
It is the Borough’s policy to permit employees to accumulate earned but unused annual leave benefits.
All annual leave pay is accrued when incurred in the government wide and proprietary fund financial
statements. A liability for these amounts is reported in governmental funds only if they have matured,
for example, as a result of employee resignations and retirements.
Long-term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are
reported as liabilities in the applicable governmental activities, business type activities, or proprietary
fund Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life
of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond
premium or discount. Bond issuance costs are expensed in the year incurred.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
44
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures. Interest on
long-term obligations is recorded as an expenditure when due.
Pension and Other Postemployment Benefits (OPEB)
For purposes of measuring the net pension and OPEB assets and liabilities, deferred outflows of
resources and deferred inflows of resources related to pension and OPEB plans, and pension and OPEB
expense, information about the fiduciary net position of the Public Employees’ Retirement System
(PERS) and additions to/from PERS’s fiduciary net position have been determined on the same basis
as they are reported by PERS. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms, investments
are reported at fair value.
Net Position
Government-wide net position is divided into three components:
Net investment in capital assets – consists of the historical cost of capital assets less
accumulated depreciation and less any debt that remains outstanding that was used to finance
those assets plus deferred outflows of resources less deferred inflows of resources related to
those assets.
Restricted net position – consists of assets that are restricted by the Borough’s creditors (for
example, through debt covenants), by the state enabling legislation (through restrictions on
shared revenues), by grantors (both federal and state), and by other contributors.
Unrestricted – all other net position is reported in this category.
Fund Balance
In the Fund Financial Statements, fund balance includes five classifications as follows:
Nonspendable Fund Balance – amounts that are legally or contractually required to be maintained
intact (such as the corpus of an endowment fund) or amounts that are not in a spendable form (such as
inventory, prepaid expenses, supplies, and long-term receivables). Such constraint is binding until the
legal or contractual requirement is repealed or the amounts become spendable.
Restricted Fund Balance – amounts constrained to specific purposes by their providers (such as
grantors and higher levels of government), through constitutional provisions, or by enabling
legislation. Such constraint is binding unless modified or rescinded by external body, laws, or
regulation.
Committed Fund Balance – amounts that can be used only for the specific purposes determined by a
formal action of the Borough Assembly, the Borough’s highest level of decision-making authority.
Commitments may be changed or lifted by the Assembly taking the same formal action that imposed
the constraint originally. The formal action that is required to be taken to establish, modify or rescind
a fund balance commitment is for the Assembly to pass a resolution.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
45
Assigned Fund Balance – amounts that are constrained by the Borough for specific purposes. In
governmental funds other than the General Fund, assigned fund balance represents the amount that is
not restricted or committed, but constrained for a specific purpose. Assignment of fund balance is
made by the Borough Assembly or its designee, the Finance Director. Such constraint is binding
unless modified or eliminated by the Borough Assembly or Finance Director. Assignment of fund
balance is made during the budget process and reviewed at the end of the fiscal year. Assigned fund
balance represents amounts constrained for capital project funds and was assigned by the Finance
Director.
Unassigned Fund Balance – amounts not contained in the other classifications and available for any
purpose. Positive unassigned amounts will be reported only in the General Fund. If another
governmental fund, other than the General Fund, has a fund balance deficit, then it will be reported as
a negative amount in the unassigned classification in that fund.
The order of spending, regarding the restricted and unrestricted fund balance when an expenditure is
incurred for which both restricted and unrestricted fund balance is available should first reduce
restricted fund balance and then unrestricted fund balance. The order of spending regarding
unrestricted fund balance is that committed amounts should be reduced first, followed by the assigned
amounts, and then the unassigned amounts when expenditures are incurred for purposes for which
amounts in any of those unrestricted fund balance classifications could be used.
Compliance with the provisions of the Fund Balance Classification Policy are reviewed as part of the
annual budget adoption process. The Finance Director reports to the Assembly as close to the end of
the year as possible the anticipated year-end fund balance or deficit. The Assembly takes appropriate
action to commit or assign, or otherwise allocate prior year fund balances as a part of the budget
planning process.
The Borough’s Special Revenue Funds are used to account for Borough support, fire and road service
areas, federal and state grant programs, street lighting, and operations and maintenance programs that
are restricted or committed.
(e) Revenues, Expenditures, and Expenses
Property Taxes
Property taxes are based on the assessed value of taxable property as of January 1. Pursuant to Alaska
Statute 29.45.240, the Borough establishes the mill rate on or before June 15th. Tax bills are then
mailed on or before July 1st.
Taxes are due when billed and generally become delinquent on or after October 16th. The Borough
code also provides for split payments. If a taxpayer avails himself of this provision, one-half must be
paid on or before August 15th and the remainder becomes due on or before November 15th (in lieu of
October 15th). Borough property tax revenues are recognized in the fiscal year in which they are
levied.
All taxes are delinquent on November 16th, and a tax foreclosure process may commence as outlined
in Alaska Statutes Title 29. Briefly, this entails the petition for Judgment of Foreclosure signed by the
Borough Court Judge and the publication of all delinquent taxes in the local newspaper for four
consecutive weeks.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
46
Real property tax liens are enforced by one general foreclosure proceeding against the delinquent
properties.
Prior to FY2012 all area wide property taxes were deposited into the General Fund and then transferred
to the other area wide funds. As of FY2012 the Borough has set a separate mill rate for each area wide
function that was funded by property taxes. For FY2024 the Borough set a mill rate of 1.22 mills for
the General Fund, 7.67 mills for the Education Support Special Revenue Fund, 0.29 mills for the
Education Debt Service Fund, and 1.07 mills for the Renewal and Replacement Special Revenue Fund
for a total area wide mill rate of 10.25.
Severance Taxes
Severance taxes are based on the amount and value of natural resources severed from the environment.
Types of resources taxed include seafood, gravel and mineral resources, and timber. Severance tax
returns are sent to appropriate companies (as determined by the Borough Assessor) and are returned
to the Borough Finance Department. The returns are filed quarterly, and are due by the end of the
month following the quarter’s end. Borough severance tax revenues are recognized in the fiscal year
in which they become measurable and available.
Excise Taxes
Excise taxes are based on the quantity of tobacco brought into the Borough and the quantity of
marijuana cultivated for sale. Quarterly excise tax returns for tobacco are due by the end of the month
following the quarter’s end and monthly excise reports for marijuana are due by the end of the month
for the previous month. Borough excise tax revenues are recognized in the fiscal year in which they
become measurable and available.
Intergovernmental Revenue
State shared revenues, safe communities, State education related entitlement programs and State levied
taxes, the proceeds of which are distributed to local governments, are recorded in the fiscal year to
which they relate, including accrual at year end if final payments due are measurable and received
within approximately two months after year end.
State of Alaska and Federal government cost reimbursable grants and contracts are recorded to the
extent of allowable expenditures in the period in which the expenditures were incurred.
When both restricted and unrestricted resources are available for use for governmental activities, it is
the Borough’s policy to use restricted resources first, then unrestricted resources as they are needed.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
47
Operating and Nonoperating Revenue and Expenses
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues
of the Municipal Solid Waste Collection and Disposal Fund are charges to customers for services. The
principal operating revenues of the Hospital Facilities Fund, Long Term Care Center Fund, Kodiak
Fisheries Research Center Fund, and Research Court Apartments Fund are rents from customers. The
principal operating revenues for the 911 Service Fund are surcharges collected on phone lines.
Operating expenses for proprietary funds include costs of services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
Revenue from Investments and Property
Amounts earned on investment of available cash balances and the rental of building facilities are
recorded in the period to which they relate, including accrual at year end of the balance due, and
unrealized gains and losses on investments held at fiscal year end.
Land Sales Proceeds and Other Local Revenues
Amounts received pursuant to land sale contracts are recorded on the modified accrual basis in the
fund financial statements and the accrual basis in the government-wide financial statements.
Other local revenues are recorded on a basis consistent with their nature in relation to measurement
and availability standards.
(f) Cash Flows
All highly liquid investments, excluding restricted assets, with original maturities of three months or
less are considered cash equivalents for purposes of the statement of cash flows.
(g) Use of Estimates
Preparation of financial statements in accordance with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the
amounts reported in these financial statements. Actual results may differ from the estimates.
Significant estimates include the allowance for doubtful accounts, the useful lives of assets and related
accumulated depreciation, accrued landfill closure and post-closure care costs, and the net pension and
OPEB liabilities and related deferred outflows and inflows of resources.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
48
(2) Stewardship, Compliance, and Accountability
(a) Excess of Expenditures over Appropriations
The following fund expenditures or operating expenses exceeded their budget:
Fund Excess
Special Revenue Funds:
Education Support $ 21
Fire and Road Service Areas:
Kodiak Airport Fire District 358
Women’s Bay Road Service Area 42,824
Enterprise Funds:
Municipal Solid Waste 762,464
911 Service 22,004
These excesses were funded by available fund balance or net position.
(b) Deficit Fund Equity
The individual fund deficits at June 30, 2024, are as follows:
Education Support Special Revenue Fund $ 511,307
Womens Bay Road Service Area Special Revenue Fund 16,010
The deficit in these funds will be funded by transfers from the General Fund in future years.
(3) Cash and Investments (Equity in Central Treasury)
A portion of the Borough’s investments are in the Alaska Municipal League Investment Pool (AMLIP). The
investment in AMLIP represents the Borough’s share of ownership in the pool rather than ownership of
specific securities. The share value of investments in the AMLIP is approximately equal to fair value. To
obtain a copy of AMLIP’s financial statements contact Key Trust of Alaska at 101 West Benson Blvd.,
Room 412, Anchorage, Alaska 99503.
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
49
As of June 30, 2024, the Borough had the following investments:
Investment Maturities (in years)
Fair Less
Investment Type Value than 1 1 to 5 6 +
U.S. Agency Securities:
Federal Home Loan Bank $ 62,371,476 22,910,653 39,460,823 -
Federal Home Loan
Mortgage Corporation 19,798,510 6,980,690 12,817,820 -
Federal Farm Credit Bank 8,694,430 2,921,950 4,898,830 873,650
Federal Agriculture
Mortgage Corporation 1,922,810 985,250 937,560 -
Federal National Mortgage
Association 2,994,700 1,997,560 997,140 -
Corporate Obligations 985,020 985,020 - -
Municipal Obligations 4,235,261 1,302,683 1,991,479 941,099
$ 101,002,207 38,083,806 61,103,652 1,814,749
Investments measured at amortized cost:
Alaska Municipal League
Investment Pool 3,858,425
Money Market Funds 24,602
Certificates of Deposit 3,459,315
7,342,342
Total investments $ 108,344,549
In addition to the investments listed above, Kodiak Island Borough also had cash equivalents of $12,259,630,
which includes restricted cash of $1,445,574.
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
50
The Borough categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value
of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are
significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Borough’s
investments that are classified as Level 2 are valued using third party pricing models provided by investment
brokerages. The Borough has the following recurring fair value measurements as of June 30, 2023:
Total Level 1 Level 2 Level 3
Investments by fair value level:
Debt securities:
U.S. Agency Securities $ 95,781,926 95,781,926 - -
Corporate Obligation 985,020 - 985,020 -
Municipal Obligations 4,235,261 - 4,235,261 -
Total investments at fair
value level $ 101,002,207 95,781,926 5,220,281 -
Investments measured at amortized cost:
Alaska Municipal League
Investment Pool 3,858,425
Money Market Funds 24,602
Certificates of Deposit 3,459,315
Total investments $ 108,344,549
Interest Rate Risk
The Borough’s investment policy does not limit investment maturities as a means of managing its exposure
to fair value losses arising from increasing interest rates.
Credit Risk
Statutes authorize the Borough to invest in obligations of the United States, the State of Alaska and its
political subdivisions, savings accounts, certificates of deposit, banker’s acceptances, repurchase
agreements, and such other legal security instruments. The Borough does not have a formal investment
policy that restricts investments based on credit risk.
At June 30, 2024, the Borough’s investments in municipal obligations, U.S. Government agencies or
instruments implicitly guaranteed by the U.S. Government, and corporate obligations were rated as follows:
Moody’s
AAA 79%
A1 2%
AA 2%
AA+ 8%
AA1 2%
AA2 2%
AA3 3%
S&P – AAAm 0%
Not Rated 2%
100%
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
51
At June 30, 2024, the Borough’s investments in the Alaska Municipal League Investment Pool were rated
AAAm by Standard & Poor’s and the Borough’s Certificates of Deposit were unrated.
Concentration of Credit Risk
The Borough places no limit on the amount the Borough may invest in any one issuer. At June 30, 2024,
the Borough had 88% percent of its investments in U.S. Government Agency Securities and 4% in Municipal
Obligations.
Custodial Credit Risk – Deposits
The Borough maintains a cash pool that is available for use by all funds. Each fund’s portion of this pool is
reported on the Balance Sheet and Statements of Net Position as “Equity in Central Treasury” or amounts
“due to/from other funds.”
The Borough bank accounts are insured by the Federal Depository Insurance Corporation (FDIC) to a
maximum of $250,000. U.S. Treasury obligations, which are held by Bank of New York in a Tri-party
collateral agreement with Wells Fargo, the pledging financial institution’s agent, in the Borough’s name,
collateralize a portion of the remaining bank balance. As of June 30, 2023 the Borough had no uninsured
and uncollateralized bank balances.
Custodial Credit Risk – Investments
For an investment, this is a risk that, in the event of the failure of the counterparty, the Borough will not be
able to recover the value of its investments or collateral securities that are in the possession of an outside
party. The Borough manages its custodial credit risk in investments by requiring collateralization
agreements. The Borough had no debt securities exposed to custodial credit risk at June 30, 2024.
(4) Annual Appropriation to the School District
An annual appropriation is made to the School District. In addition to the annual appropriation, the Borough
provides the School District general liability and property insurance, the annual independent audit, and
grounds maintenance services.
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
52
(5) Receivables
Education Education State Capital Other
General Support Special Debt Grants Capital Governmental
Fund Revenue Fund Service Fund Project Fund Funds
Receivables:
Leases $ — — — — —
Grants 18,213 — 396,206 186,623 743
Taxes 431,396 180,137 24,405 — 40,173
Interest 725,259 — — — —
Customers and other 59,173 — — — 34,514
Notes receivable — — — — 28,696
Gross receivables 1,234,041 180,137 420,611 186,623 104,126
Less: allowance
for uncollectibles (4,195) (10,986) (1,484) — (2,506)
Net total receivables $ 1,229,846 169,151 419,127 186,623 101,620
Municipal Kodiak
Total Solid Waste Fisheries
Governmental Collection Hospital Long Term Research
Funds and Disposal Facilities Care Center Center
Receivables:
Leases $ — — 3,848,934 7,716,319 6,243,860
Grants 601,785 — — — —
Taxes 676,111 — — — —
Interest 725,259 — — — —
Customers and other 93,687 517,864 — — 193,097
Notes receivable 28,696 — — — 740,107
Gross receivables 2,125,538 517,864 3,848,934 7,716,319 7,177,064
Less: allowance
for uncollectibles (19,171) — — — —
Net total receivables $ 2,106,367 517,864 3,848,934 7,716,319 7,177,064
Enterprise Funds
Other
Nonmajor Total Total
Enterprise Enterprise Primary
Fund Funds Government
Receivables:
Leases $— 17,809,113 17,809,113
Grants — — 601,785
Taxes — — 676,111
Interest — — 725,259
Customers and other 39,898 750,859 844,546
Notes receivable — 740,107 768,803
Gross receivables 39,898 19,300,079 21,425,617
Less: allowance
for uncollectibles — — (19,171)
Net total receivables $ 39,898 19,300,079 21,406,446
Governmental Funds
Enterprise Funds
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
53
(6) Note Receivable - General Services Administration (GSA) on-behalf of National Oceanic and
Atmospheric Administration (NOAA)
In April 2016 a lease was executed between the Kodiak Island Borough and GSA, which included a debt
repayment portion designed to recoup costs incurred by the Borough to finance construction of the facility.
Monthly payments to the Borough are $14,112 including interest of 3.5%, continuing through March 2029.
As of June 30, 2024, the principal balance due is $740,107 and the principal amount due within one year is
$145,769. This note receivable is recorded in the Kodiak Fisheries Research Center Enterprise Fund.
(7) Deferred Inflows of Resources and Unearned Revenues
Governmental funds report deferred inflows of resources in connection with receivables for revenues that
are not considered to be available to liquidate liabilities of the current period. Governmental funds also
report unearned revenues in connection with resources that have been received, but not yet earned. At June
30, 2024, the various components of deferred inflows of resources and unearned revenue reported in the
governmental funds were as follows:
Unavailable Unearned Total
Unavailable taxes receivable $ 280,378 - 280,378
Unavailable land sales receivable 28,696 - 28,696
Grant advances prior to expending all proceeds - 7,722,509 7,722,509
Total unavailable/unearned revenue
for governmental funds $ 309,074 7,722,509 8,031,583
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
54
(8) Capital Assets
As noted in Footnote (14), the Borough leases the Kodiak Island Hospital and Long Term Care Center to
Sisters of Providence. The value of the lease assets and associated depreciation are reflected in the Hospital
Facilities Fund and Long Term Care Center Fund following.
Capital asset activity for the year ended June 30, 2024 was as follows:
Beginning Increase/ Ending
Balance Transfers Decrease Balance
Governmental activities:
Capital assets, not being depreciated
Land $ 22,752,807 - - 22,752,807
Construction work-in-progress 1,274,696 3,265,251 - 4,539,947
Total 24,027,503 3,265,251 - 27,292,754
Capital assets, being depreciated:
Buildings and improvements 199,718,394 - (3,554,403) 196,163,991
Improvements other than
buildings 32,017,094 - (588,363) 31,428,731
Equipment 4,863,587 312,433 (40,370) 5,135,650
Infrastructure 5,816,450 - - 5,816,450
Total 242,415,525 312,433 (4,183,136) 238,544,822
Less accumulated depreciation for:
Buildings and improvements 96,965,210 3,544,255 (3,263,537) 97,245,928
Improvements other than
buildings 20,063,640 1,748,879 (240,799) 21,571,720
Equipment 2,730,041 173,413 (40,370) 2,863,084
Infrastructure 5,649,510 77,266 - 5,726,776
Total 125,408,401 5,543,813 (3,544,706) 127,407,508
Total capital assets
being depreciated, net 117,007,124 (5,231,380) (638,430) 111,137,314
Total governmental
activities, net $ 141,034,627 (1,966,129) (638,430) 138,430,068
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
55
Beginning Increase/ Ending
Balance Transfers Decrease Balance
Business-type activities:
Municipal Solid Waste Collection
and Disposal Fund capital assets,
not being depreciated
Land $ 1,651,248 - - 1,651,248
Construction work-in-progress 32,065,281 1,034,904 28,589,969 4,510,216
Total 33,716,529 1,034,904 28,589,969 6,161,464
Capital assets, being depreciated:
Unclassified utility plant in
service 2,178,733 - - 2,178,733
Improvements other than
buildings 4,272,325 28,589,969 - 32,862,294
Machinery and equipment 2,975,413 355,034 38,444 3,292,003
Total 9,426,471 28,945,003 38,444 38,333,030
Less accumulated depreciation for:
Unclassified utility plant in
service 1,589,961 42,056 - 1,632,017
Improvements other than
buildings 2,812,327 1,078,059 - 3,890,386
Machinery and equipment 1,949,821 121,824 38,444 2,033,201
Total 6,352,109 1,241,939 38,444 7,555,604
Total capital assets
being depreciated, net 3,074,362 27,703,064 - 30,777,426
Total Municipal Solid
Waste Collection and
Disposal Fund, net $ 36,790,891 28,737,968 28,589,969 36,938,890
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
56
Beginning Increase/ Ending
Balance Transfers Decrease Balance
Hospital Facilities Fund:
Capital assets, not being depreciated
Artwork $ 16,091 - - 16,091
Land 10,251 - - 10,251
Construction in progress 418,468 334 - 418,802
Total 444,810 334 - 445,144
Capital assets, being depreciated:
Buildings 35,680,062 - - 35,680,062
Improvements other than
buildings 401,047 - - 401,047
Machinery and equipment 3,558,928 - - 3,558,928
Total 39,640,037 - - 39,640,037
Less accumulated depreciation for:
Buildings 24,773,399 1,048,451 - 25,821,850
Improvements other than
buildings 753,137 12,560 - 765,697
Machinery and equipment 3,523,667 18,512 - 3,542,179
Total 29,050,203 1,079,523 - 30,129,726
Total capital assets
being depreciated, net 10,589,834 (1,079,523) - 9,510,311
Total Hospital Facilities
Fund, net $ 11,034,644 (1,079,189) - 9,955,455
Long Term Care Center Fund:
Capital assets, not being depreciated
Construction in progress $ 89,638 5,222 - 94,860
Capital assets, being depreciated:
Buildings 15,567,986 - - 15,567,986
Less accumulated depreciation for:
Buildings 3,675,775 518,933 - 4,194,708
Total capital assets
being depreciated, net 11,892,211 (518,933) - 11,373,278
Total Long Term Care
Fund, net $ 11,981,849 (495,683) - 11,468,138
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
57
Beginning Increase/ Ending
Balance Transfers Decrease Balance
Kodiak Fisheries Research Center Fund:
Capital assets, not being depreciated
Construction in progress $ 460,864 26,490 98,351 389,003
Capital assets, being depreciated:
Buildings 17,840,410 - - 17,840,410
Improvements other than
buildings 1,884,546 98,351 - 1,982,897
Machinery and equipment 1,501,764 - - 1,501,764
Total 21,226,720 98,351 - 21,325,071
Less accumulated depreciation for:
Buildings 14,270,567 594,680 - 14,865,247
Improvements other than
buildings 516,794 93,781 - 610,575
Machinery and equipment 1,253,113 31,409 - 1,284,522
Total 16,040,474 719,870 - 16,760,344
Total capital assets
being depreciated, net 5,186,246 (621,519) - 4,564,727
Total Kodiak Fisheries
Research Center Fund,
net $ 5,647,110 (595,029) 98,351 4,953,730
Research Court Apartments Fund:
Capital assets being depreciated:
Buildings $ 1,021,998 - - 1,021,998
Less accumulated depreciation:
Buildings 817,599 34,066 - 851,665
Total Research Court
Apartments Fund, net $ 204,399 (34,066) - 170,333
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
58
Beginning Increase/ Ending
Balance Transfers Decrease Balance
Total business-type activities:
Capital assets, not being depreciated:
Artwork $ 16,091 - - 16,091
Land 1,661,499 - - 1,661,499
Construction work-in-progress 33,034,251 1,066,950 (28,688,320) 5,412,881
Total 34,711,841 1,066,950 (28,688,320) 7,090,471
Capital assets, being depreciated:
Unclassified utility plant in service 2,178,733 - - 2,178,733
Buildings 70,110,456 - - 70,110,456
Improvements other than buildings 6,557,917 28,688,320 - 35,246,237
Machinery and equipment 8,036,106 355,034 (38,444) 8,352,696
Total 86,883,212 29,043,354 (38,444) 115,888,122
Less accumulated depreciation for:
Unclassified utility plant in service 1,589,961 42,056 - 1,632,017
Buildings 43,537,339 2,196,130 - 45,733,469
Improvements other than buildings 4,082,257 1,184,400 - 5,266,657
Machinery and equipment 6,726,603 171,745 (38,444) 6,859,904
Total 55,936,160 3,594,331 (38,444) 59,492,047
Total capital assets
being depreciated, net 30,947,052 25,449,023 - 56,396,075
Total business-type
activities, net $ 65,658,893 26,515,973 (28,688,320) 63,486,546
Depreciation expense was charged to the departments and functions of the primary government as
follows:
Governmental activities:
General government $ 542,258
Public safety 145,879
Education, culture and recreation 4,855,676
Total – governmental activities $ 5,543,813
Business-type activities:
Municipal solid waste collection and disposal $ 1,241,939
Hospital facilities 1,079,523
Long term care center 518,933
Kodiak fisheries research center 719,870
Research court apartments 34,066
Total – business-type activities 3,594,331
Total primary government $ 9,138,144
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
59
(9) Interfund Receivables, Payables and Transfers
(a) Transfers
Interfund transfers have been made in accordance with budget ordinances. Funds are
transferred from one fund to support expenditures of other funds in accordance with the
authority established for the individual fund. Transfers between funds during the year ended
June 30, 2024 were as follows:
Transfers In
Education Other
Transfers Out
Debt Service
Fund
Governmental
Funds
Total
Major Governmental Funds:
General Fund $ 995,618 - 995,618
Facilities Special Revenue Fund - 850,000 850,000
Total transfers $ 995,618 850,000 1,845,618
A summary of significant transfers are as follows:
The General fund transferred $995,618 to the Education Debt Service Fund to help cover
debt service payments.
The Facilities Special Revenue Fund transferred $845,000 to the Renewal and
Replacement Special Revenue Fund for future borough and school district repair and
replacement needs.
(10) Long Term Debt
(a) General Obligation Bonds and Other Debt
The Borough issues general obligation bonds and other debt to provide funds for the acquisition
and construction of major capital facilities. General obligation bonds are direct obligations and
pledge the full faith and credit of the Borough. General obligation bonds and other debt
currently outstanding are as follows:
Balance Balance Due Within
July 1, 2023 Additions Reductions June 30, 2024 One Year
Governmental activities:
$22,660,000 2014 Series One High
School Renovation Bonds, due in
semi-annual installments of
$1,100,000 plus interest of 3.125%
through March 2025. This
bond was refunded by issuing the
2021 Series Four Bonds 2,170,000 - 1,060,000 1,110,000 1,110,000
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
60
Balance
Balance
Due
Within
July 1, 2023 Additions Reductions June 30, 2024 One Year
Governmental activities, continued:
$6,210,000 2015 Series Three
High School Renovation Bonds,
due in semi-annual installments of
$275,000 to $480,000 plus interest
of 5.0% to 5.25% through
October 2035 4,680,000 - 265,000 4,415,000 275,000
$1,780,000 2015 Series Three
Renewal and Replacement Bonds,
due in semi-annual installments of
$210,000 to $220,000 plus interest
of 5.0% through October 2025 630,000 - 200,000 430,000 210,000
$1,870,000 2016 Series One A
High School Renovation Bonds,
due in semi-annual installments of
$90,000 to $130,000 plus interest
of 2.0% to 5.0% through August 2035 1,405,000 - 85,000 1,320,000 90,000
$5,140,000 2016 Series One B
Renewal and Replacement Bonds,
due in semi-annual installments of
$630,000 to $660,000 plus interest
of 5.0% through August 2025 1,885,000 - 595,000 1,290,000 630,000
$4,905,000 2016 Series Three
High School Renovation Bonds,
due in annual installments of
$520,000 to $605,000 plus interest
of 5.0% through December 2027 2,745,000 - 495,000 2,250,000 520,000
$550,000 2018 Series A Bonds,
due in annual installments of $55,000
to $60,000 plus interest of 2.93%
to 3.05% through December 2028 345,000 - 55,000 290,000 55,000
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
61
Balance Balance Due Within
July 1, 2023 Additions Reductions June 30, 2024 One Year
Governmental activities, continued:
$345,000 2020 Series A High School
Renovation Bond, due in annual
installments of $30,000 to $45,000
plus interest of 5.0% through
December 2030 290,000 - 30,000 260,000 30,000
$1,855,000 2020 Series B Bonds
due in annual installments of
$170,000 to $230,000 plus interest
of 5% through December 2030 1,555,000 - 160,000 1,395,000 170,000
$4,070,000 2021 Series 1 Bonds issued to
partially refund the 2011 Series One
Bonds due in annual installments of
$375,000 to $505,000 plus interest of
5% through December 2030 3,400,000 - 355,000 3,045,000 375,000
$4,225,000 2021 Series 2 Bonds issued to
partially refund the 2012 Series A and B
Bonds due in annual installments of
$1,375,000 plus interest of .698% through
December 2024 2,740,000 - 1,365,000 1,375,000 1,375,000
$14,535,000 2021 Series 3 Bonds issued to
partially refund the 2013 Series One
Bonds due in annual installments of
$1,330,000 to $1,515,000 plus interest of
.698% to 2.22% through December 2032 13,990,000 - 1,325,000 12,665,000 1,330,000
$14,520,000 2021 Series 4 Bonds issued to
partially refund the 2014 Series One
Bonds due in annual installments of
$250,000 to $1,625,000 plus interest of
.698% to 2.352% through December
2033 14,020,000 - 250,000 13,770,000 250,000
$ 49,855,000 - 6,240,000 43,615,000 6,420,000
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
62
(b.) Notes and Bonds Payable
As of June 30, 2024, the Borough had the following notes and bonds payable outstanding in
the Municipal Solid Waste Collection and Disposal Enterprise Fund:
Note payable (ACWF #505031) to Alaska Department of Environmental
Conservation (ADEC), to be paid within 20 years. From June 2, 1999,
until April 28, 2005, interest accrued at 2.5%. From April 29, 2005,
to June 30, 2024, interest accrued at 1.5%. The first loan payment
was made on April 1, 2012, with principal payments of $100,000 due
on April 1 in each successive year.
$
700,000
Note payable (ACWF #505041) to Alaska Department of Environmental
Conservation (ADEC), to be paid within 20 years. Interest accrues at
1.5% over the life of the loan. The first loan payment was made on
April 1, 2018, with principal payments of $637,846 due on April 1 in
each successive year.
$
8,291,993
Note payable (ACWF #505061) to Alaska Department of Environmental
Conservation (ADEC), to be paid within 20 years. Interest accrues at
1.5% over the life of the loan. The first loan payment was made on
March 1, 2016, with principal payments of $131,227 being due on
March 1 in each successive year.
$
1,443,489
Note payable (ACWF #505071) to Alaska Department of Environmental
Conservation (ADEC), to be paid within 30 years. Interest will start
being accrued in May 2025 at 2.2775% and will be accrued over the
life of the loan. The first loan payment is due one year following
substantial completion and initiation of operation of the facility.
$ 1,183,876
On May 26, 2021, the Borough refunded the 2011 Series Three
revenue bond by issuing a $1,215,000 revenue bond, with a premium
of $190,994. The bond was marketed by the Alaska Municipal Bond
Bank. Interest accrues at rate of 5.0% over the life of the loan. The
first loan payment was made on December 1, 2022, with principal
payments due on December 1 in each successive year. The current
portion as of June 30, 2024, is $240,000. The bond will mature on
December 1, 2026.
$
765,000
As of June 30, 2024, the Borough had the following bond payable outstanding in the Long
Term Care Center Enterprise Fund:
On May 26, 2021, the Borough refunded a portion of the 2013 Series
revenue bond by issuing a $8,100,000 revenue bond. The bond was
marketed by the Alaska Municipal Bond Bank. Interest accrues at
rates between of .243% and 2.222% with payments due on June 1 and
December 1 of each year. The current portion as of June 30, 2024, is
$750,000. The bond will mature on December 1, 2032.
$
7,105,000
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
63
(c.) Changes in Long-term Liabilities
Long-term liability activity for the year ended June 30, 2024, was as follows:
For governmental activities, compensated absences are generally liquidated by the General Fund.
Balance Balance
June 30, June 30, Due within
2023 Additions Reductions 2024 one year
Governmental activities:
Bonds payable:
General obligation bonds $ 49,855,000 — 6,240,000 43,615,000 6,420,000
Bond premium 2,111,107 — 402,282 1,708,825 402,277
51,966,107 — 6,642,282 45,323,825 6,822,277
Net pension liability 3,148,772 264,518 — 3,413,290 —
Compensated absences 209,309 199,783 164,953 244,139 77,081
Total $ 55,324,188 464,301 6,807,235 48,981,254 6,899,358
Business-type activities:
Municipal Solid Waste
Collection and Disposal:
Landfill closure and
post-closure costs $ 6,693,000 340,000 — 7,033,000 —
Compensated absences 115,843 67,321 80,037 103,127 24,796
Net pension liability 1,086,931 — 63,074 1,023,857 —
Notes and bonds payable 12,299,555 1,183,876 1,099,073 12,384,358 1,109,072
Bond premium 127,330 — 31,832 95,498 31,832
Total $ 20,322,659 1,591,197 1,274,016 20,639,840 1,165,700
Long Term Care Center:
Bonds payable $ 7,845,000 — 740,000 7,105,000 750,000
Kodiak Fisheries Research
Center:
Net pension liability $ 331,043 — 134,723 196,320 —
Compensated absences 6,461 12,754 13,629 5,586 5,138
Total $ 337,504 12,754 148,352 201,906 5,138
Business-type activities:
Landfill closure and post-
closure costs $ 6,693,000 340,000 — 7,033,000 —
Compensated absences 122,304 80,075 93,666 108,713 29,934
Net pension liability 1,417,974 — 197,797 1,220,177 —
Notes and bonds payable 20,144,555 1,183,876 1,839,073 19,489,358 1,859,072
Bond premium 127,330 — 31,832 95,498 31,832
Total $ 28,505,163 1,603,951 2,162,368 27,946,746 1,920,838
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
64
Annual debt service requirements to maturity for all the Governmental Activities general obligation
bonds outstanding as of June 30, 2024, are as follows:
Year ending
June 30: Principal Interest Total
2025 $ 6,420,000 1,138,810 7,558,810
2026 5,230,000 959,871 6,189,871
2027 4,450,000 828,058 5,278,058
2028 4,565,000 707,672 5,272,672
2029 4,060,000 589,902 4,649,902
2030-2034 17,700,000 1,359,614 19,059,614
2035-2036 1,190,000 58,036 1,248,036
$ 43,615,000 5,641,963 49,256,963
At June 30, 2024, there was $419,519 available in the Education Debt Service Fund to service general
obligation bonds. There are a number of limitations and restrictions contained in the various bond
indentures. The Borough is in compliance with all significant limitations and restrictions.
Annual debt service requirements to maturity for all of the Business-type Activities revenue bonds and
notes payable obligations outstanding as of June 30, 2024, are as follows:
Year ending Bonds Payable Notes Payable
June 30: Principal Interest Total Principal Interest Total
2025 $ 990,000 145,624 1,135,624 869,073 156,533 1,025,606
2026 1,005,000 126,761 1,131,761 869,073 143,496 1,012,569
2027 1,030,000 105,275 1,135,275 869,073 130,461 999,534
2028 770,000 88,138 858,138 869,073 117,424 986,497
2029 785,000 75,450 860,450 869,073 104,388 973,461
2030-2034 3,290,000 142,695 3,432,695 5,229,233 330,899 5,560,132
2035-2038 - - - 2,044,762 59,374 2,104,136
$ 7,870,000 683,943 8,553,943 11,619,358 1,042,575 12,661,933
(The remainder of this page intentionally left blank.)
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
65
(11) Fund Balances
Detailed information related to amounts classified as nonspendable, committed and assigned fund
balances in governmental funds at June 30, 2024 are as follows:
State Capital
Facilities Education Grants
Special Debt Capital Other
General Revenue Service Project Governmental
Fund Fund Fund Fund Funds Total
Nonspendable:
Prepaid items $ 210,785 - - - 2,569 213,354
Restricted:
Commercial Passenger Vessel $ - - - - 78,097 78,097
Committed:
Facility Upgrades - 41,547,395 - - - 41,547,395
Debt Service - - 419,519 - - 419,519
Fire and Road
Service Areas - - - - 3,484,596 3,484,596
Emergency planning - - - - 22,824 22,824
Land Sales - - - - 1,412,963 1,412,963
Buildings and Grounds - - - - 1,182,575 1,182,575
Street Lighting
Districts - - - - 55,465 55,465
Tourism Development - - - - 135,425 135,425
Mission Lake Tide Gate - - - - 65,497 65,497
Opioid Class Action Settlement - - - - 89,380 89,380
Total committed $ - 41,547,395 419,519 - 6,448,725 48,415,639
Assigned:
Capital Projects and
Upgrades $ - - - 445,093 13,645,187 14,090,280
(12) Solid Waste Landfill Closure and Post Closure Care Costs
State and federal laws and regulations require that the Kodiak Island Borough place a final cover on
its landfill when closed and perform certain maintenance for a number of years after closure. In
addition to operating expenses related to current activities of the landfill, an expense provision and
related liability are recognized based on the future closure and post closure care costs that will be
incurred based on the date the landfill no longer accepts waste. The recognition of these landfill
closure and post closure care costs is based on the amount of the landfill used during the year. The
estimated liability of landfill closure and post closure care costs is $7,033,000 as of June 30, 2024,
which is based on 44.5% usage (filled) of the landfill. The Borough recorded closure/post-closure
expenses of $340,000 of estimated future costs for closure and post-closure costs. The estimated total
current cost of the landfill closure and post closure care of $7,033,000 is based on the amount that
would be paid if the landfill were closed as of June 30, 2024. However, the actual cost of closure and
post closure care may be higher due to inflation, changes in technology, or changes in landfill laws
and regulations.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
66
The Borough is required by state and federal laws and regulations to make annual contributions to
finance closure and post closure care. The Kodiak Island Borough complies with these requirements
by annually recording the liability based on the estimates provided by the Kodiak Island Borough’s
Engineering/Facilities Director. It is anticipated that future inflation costs and additional costs that
might arise from changes in post closure requirements, due to changes in technology or more rigorous
environmental regulations, for example, will be financed primarily by charges to future landfill users
and secondarily by taxpayers.
In the fiscal year ended June 30, 1999, the Borough began initial planning for lateral expansion of
the landfill (Phase 3). In May of 2012 bidding on the project was begun and work is ongoing and
expected to continue through 2027. The lateral expansion has an estimated forty year capacity.
Capital costs to complete are estimated at $6,150,000.
(13) Insurance and Risk Retention
The Kodiak Island Borough is exposed to numerous risks of loss associated with the operations of a
government. These potential losses include, but are not limited to, employee relations and injuries,
contracts, theft, loss or damage of property and general liability. The Borough manages its risks from
these potential losses by participating in the Alaska Municipal League Joint Insurance Association,
as well as purchasing commercial insurance coverage. This insurance has provided the Borough with
adequate coverage in the past. There were no significant changes in insurance coverage obtained and
there were no claims or settlements that exceeded insurance coverage in any of the past three fiscal
years.
The Borough is a member in good standing of the Alaska Municipal League Joint Insurance
Association (JIA), a governmental insurance pool established by the Alaska Municipal League.
Claims are covered on an occurrence basis. JIA provides risk management services, appraisal services
and there is also a separate pool for policy liability.
The responsibilities of both JIA and the participants are as follows:
(a) Responsibilities of JIA
JIA shall perform the following instructions in discharging its responsibilities:
Provide insurance coverage as necessary for property, including building and contents,
automobile, mobile equipment and data processing equipment, casualty, including
general liability, public officials’ and employees’ liability, auto liability and employee
benefit liability; workers’ compensation, including employers’ liability; commercial
blanket bond; and time element.
Assist each participant’s assigned risk manager with the implementation of that function.
Provide loss prevention and safety and consulting services to participants as required.
Provide claims adjusting and subrogation services for claims covered by the
association’s joint insurance arrangement.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
67
(b) Responsibilities of the Participants
The Participants shall have the following responsibilities:
The Borough Assembly or appointing official of each participant shall appoint a
representative as provided in Article 5, Section 2 of the bylaws and at least one alternate
representative to attend member meetings.
Each participant shall appoint an employee of the participant to be responsible for the
risk management function within that entity and to serve as a liaison between the
participant and JIA with respect to risk management.
Each participant shall maintain an active safety officer and/or committee, and shall
comply with all recommendations of JIA concerning the development and
implementation of a loss control policy to prevent unsafe practices.
Each participant shall maintain its own set of records as a loss log, in all categories of
loss to insure accuracy of JIA’s loss reporting system.
(14) Leases
(a) Hospital Facilities Enterprise Fund
The Kodiak Island Borough leases the Kodiak Island Hospital premise and equipment to Sisters
of Providence d.b.a. Providence Kodiak Island Medical Center who assumed responsibility for
the hospital’s operations as of April 21, 1997. The lease agreement was renegotiated in 2017
and is effective through fiscal year 2027. The lease is cancelable by either party with a one year
notice. The hospital capital assets, the lease income, and all other costs relating to the agreement
are accounted for by the Borough in the Hospital Facilities Enterprise Fund. The Borough
received $1,170,808 in lease payments for the year ended June 30, 2024. The lease receivable
at June 30, 2024 was $3,848,934. The Borough has deferred inflows of resources associated
with the lease that will be recognized as revenue over the lease term. At June 30, 2024 the
deferred inflow of resources was $3,512,424.
The agreement with Providence established a 20 year renewal and replacement schedule,
provided for a 3% administrative fee to be paid to the Borough, as well as $100,000 annual
payment to replenish the Borough’s Hospital Enterprise Fund Net Position. If renewal and
replacement costs are 25% greater than the budgeted costs, the lease payment may be amended
to incorporate these cost overruns. If projects greater than $50,000 are necessary to meet federal
or state facility audits, the lease payment may be amended to incorporate these cost overruns.
The future principal and interest lease payments to be received as of June 30, 2024, were as
follows:
Principal Interest Total
2025 1,219,521 164,751 1,384,272
2026 1,281,914 102,358 1,384,272
2027 1,347,499 36,773 1,384,272
Total $ 3,848,934 303,882 4,152,816
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
68
(b) Long Term Care Center Enterprise Fund
The Kodiak Island Borough Assembly leases the Kodiak Island Long Term Care Center to
Sisters of Providence, d.b.a. Providence Kodiak Island Medical Center who assumed
responsibility for the Long Term Care Center’s operations as of February 1, 2015. The lease
agreement is effective for a term of twenty years from that date.
The lease is cancelable by either party with a one year notice. The Center’s capital assets, the
lease income, and all other costs relating to the agreement are accounted for by the Borough in
the Long Term Care Center Enterprise Fund.
The agreement with Providence specifies that Providence will pay monthly lease payments to
the Borough in an amount no less than required to fully fund all debt service requirements plus
an amount sufficient to cover the Borough’s expenses in maintaining insurance for fire and
other risks (including earthquakes).
The monthly lease payment will be adjusted on January 1, each year and is based on the
Borough’s required debt service payments and costs to insure the facility. The current lease
payment through June 30, 2024, is $86,969. The Borough received $765,187 in lease payments
for the year ended June 30, 2024. The lease receivable at June 30, 2024 was $7,716,319. The
Borough has deferred inflows of resources associated with the lease that will be recognized as
revenue over the lease term. At June 30, 2024 the deferred inflow of resources was $7,077,984.
The future principal and interest lease payments to be received as of June 30, 2024, were as
follows:
Principal Interest Total
2025 673,098 370,530 1,043,628
2026 707,535 336,093 1,043,628
2027 743,734 299,894 1,043,628
2028 781,785 261,843 1,043,628
2029 821,783 221,845 1,043,628
2030-2034 3,988,384 447,035 4,435,419
Total $ 7,716,319 1,937,240 9,653,559
(c) Kodiak Fisheries Research Center
The Kodiak Fisheries Research Center (KFRC) leases its premise to the Alaska Department of
Fish and Game (ADF&G), the General Services Administration (GSA) on behalf of both the
National Oceanic and Atmospheric Administration (NOAA) and the Natural Resources
Commission (NRC), and Kodiak Regional Aquaculture Association (KRAA).
The original lease with ADF&G was from October 1, 1998 through September 30, 2018. In
September 2023, the second of two options to extend for an additional five-year period was
executed, extending the term of the lease through September 2028. Annual rent escalates each
year and is currently $63,732.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
69
The lease with NOAA was amended in April 2016 and expires in March 2036. Annual rent is
$808,181 which is comprised of $185,867 base rent plus operational and maintenance expenses
of $452,965 and debt repayment of $169,349. The debt repayment element was negotiated in
the new lease to recover a portion of the original debt incurred by the Borough for construction
of the facility and ends on March 2029. The original bond issue was fully paid by the Borough;
however, the new lease is designed to recoup costs already incurred and this portion of the lease
is recorded as a long-term receivable in the amount of $594,338 as of June 30, 2024.
The lease with NRC commenced on March 1, 2018, and extends through February 28, 2038,
with rents escalating every three years. The current annual rate of $28,335 is effective through
February 28, 2027.
The lease with Kodiak Regional Aquaculture Association was amended to include more space.
The new lease term is from March 2020 through June 30, 2025. Annual rent is $18,924.
The Borough received $719,176 in lease payments for the year ended June 30, 2024. The lease
receivable at June 30, 2024 was $6,243,860. The Borough has deferred inflows of resources
associated with the leases that will be recognized as revenue over the lease terms. At June 30,
2024 the deferred inflow of resources was $5,605,758.
The future principal and interest lease payments to be received as of June 30, 2024, were as
follows:
Principal Interest Total
2025 448,192 303,225 751,417
2026 453,329 280,797 734,126
2027 478,860 257,666 736,526
2028 506,502 233,193 739,695
2029 461,989 207,357 669,346
2030-2034 2,704,420 655,843 3,360,263
2035-2038 1,190,568 61,633 1,252,201
Total $ 6,243,860 1,999,714 8,243,574
(15) Employee Retirement System Plans
The Borough follows Governmental Accounting Standards Board (GASB) Codification P20,
Accounting for Pensions by State and Local Governmental Employees and GASB Codification P50,
Accounting and Financial Reporting by Employers for Post-employment Benefits Other than Pensions.
GASB Codification P20 and GASB Codification P50 establish uniform standards for the measurement,
recognition, and display of pension and other post-employment benefits other than pensions
(healthcare) expenditures/expense and related liabilities, assets, note disclosure and applicable required
supplementary information in the financial reports of state and local governmental employers.
All full-time employees and certain permanent part-time employees of the Borough participate in the
State of Alaska Public Employees’ Retirement System (PERS). In addition to the pension plan, PERS
also administers other post-employment benefit (OPEB) plans.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
70
The system is governed by the Alaska Retirement Management Board. The benefit and contribution
provisions are established by State law and may be amended only by the State legislature. The
Administrator of the Plan is the Commissioner of Administration or the Commissioner’s designee.
Summary of Significant Accounting Policies. The financial statements for PERS are prepared using
the accrual basis of accounting. Plan member contributions are recognized in the period in which the
contributions are due. The Borough’s contributions are recognized when due and a formal
commitment to provide the contributions has been made. Benefits and refunds are recognized when
due and payable in accordance with the terms of the plan. All plan investments are reported at fair
value.
PERS acts as the common investment and administrative agencies for the following multiple-
employer plans:
Plan Name Type of Plan
Defined Benefit Pension Plan (DB) Cost-sharing, Defined Benefit Pension
Defined Contribution Pension Plan (DC) Defined Contribution Pension
Defined Benefit Other Postemployment Benefits (OPEB):
Occupational Death and Disability Plan Cost-sharing, Defined Benefit OPEB
Alaska Retiree Healthcare Trust Plan Cost-sharing, Defined Benefit OPEB
Retiree Medical Plan Cost-sharing, Defined Benefit OPEB
Defined Contribution Other Postemployment
Benefits (DC):
Healthcare Reimbursement Arrangement Plan Defined Contribution OPEB
Plan Memberships
The table below includes the plan membership counts from the separately issued financial statements
for the various plans:
PERS
Retired plan members or beneficiaries
currently receiving benefits 36,951
Inactive plan members entitled to but
not yet receiving benefits 4,781
Inactive plan members not entitled to benefits 9,961
Active plan members 8,557
Total plan memberships 60,250
Other Postemployment Benefit Plans (OPEB)
Occupational Death and Disability Plan (ODD)
The Occupational Death and Disability Plan provides death benefits for beneficiaries of plan
participants and long-term disability benefits to all active members within the System. For the year
ended June 30, 2024 the employer contribution rate is 0.68% for peace officers and firefighters and
0.30% for all other members.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
71
Alaska Retiree Healthcare Trust Plan (ARHCT)
Beginning July 1, 2007, the Alaska Retiree Healthcare Trust Plan (ARHCT), a Healthcare Trust Fund
of the State, was established. The ARHCT is self-funded and provides major medical coverage to
retirees of the System. The System retains the risk of loss of allowable claims for eligible members.
The ARHCT began paying member healthcare claims on March 1, 2008. Prior to that, healthcare claims
were paid for by the Retiree Health Fund (RHF). For the year ended June 30, 2024 (latest available
information) employer contributions 0.00% of annual payroll.
Retiree Medical Plan (RMP)
The retiree medical plan provides major medical coverage to retirees of the DC plan. The plan is self-
insured. Members are not eligible to use this plan until they have at least 10 years of service and are
Medicare age eligible. For the year ended June 30, 2024 employer contributions were 1.01%.
Healthcare Reimbursement Arrangement Plan
The Healthcare Reimbursement Arrangement Plan was established to allow medical expenses to be
reimbursed from individual savings accounts established for eligible participants. Employer
contributions are 3.00% of the average annual compensation of all employees in the plan.
Investments
The Board is the investment oversight authority of the system’s investments. As the fiduciary, the
Board has the statutory authority to invest the assets under the Prudent Investor Rule. Fiduciary
responsibility for the Board’s invested assets is pursuant to AS 37.10.210.390.
State of Alaska Department of Treasury provides staff for the Board. Treasury has created a pooled
environment by which it manages investments of the Board. Additionally, Treasury manages a mix of
Pooled Investment Funds and Collective Investment Funds for the DC Participant-directed Pension
plans under the Board’s fiduciary responsibility.
Rate of Return
The money-weighted rate of return expresses investment performance, net of investment expense,
adjusted for the changing amounts actually invested. The annual weighted rate of return, net of
investment expense, for the year ended June 30, 2023 (latest available report) for the DB Plans for
PERS are: DB Pension 7.56%, ARHCT 7.64%, ODD 7.71%, and RMP is 7.71%.
For additional information on securities lending, interest rates, credit risks, foreign exchange,
derivatives, fair value, and counterparty credit risks, see the separately issued report on the Invested
Assets of the State of Alaska Retirement and Benefits Plans at:
http://treasury.dor.alaska.gov/armb/Reports-and-Policies/Annual-Audited-Financial-Schedules.aspx.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
72
The long-term expected rate of return on pension and OPEB plan investments was determined using
the building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for each major
asset class. These ranges are combined to produce the long-term expected rate of return by weighting
the expected future real rates of return by the target asset allocation percentage and adding expected
inflation. The best estimates of arithmetic real rates of return for each major asset class are summarized
below for the PERS plan (rates shown below exclude an annual inflation component of 2.82%):
Long-Term Expected
Asset Class Real Rate of Return
Broad Domestic Equity 6.17%
Global Equity (non-U.S.) 6.55%
Aggregate Bonds 1.63%
Real Assets 4.87%
Private Equity 11.57%
Cash Equivalents 0.49%
Discount Rate: The discount rate used to measure the total pension and OPEB liabilities and assets is
7.25%. The projection of the cash flows used to determine the discount rate assumes that Employer and
State contributions will continue to follow the current funding policy, which meets State statutes.
Based on those assumptions, the net pension and OPEB plans fiduciary net pension and OPEB liabilities
and assets were projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return on pension and OPEB plan investments
were applied to all periods of projected benefit payments to determine the total pension and OPEB
liabilities and assets. In the event benefit payments are not covered by the plan’s fiduciary net position,
a municipal bond rate would be used to discount the benefits not covered by the plan’s fiduciary net
position. The S&P Municipal Bond 20-Year High Grade Index rate was 4.13% as of June 30, 2023.
Employer and Other Contribution Rates. There are several contribution rates associated with the
pension and healthcare contributions and related liabilities. These amounts are calculated on an annual
basis.
Employer Effective Rate: This is the actual employer pay-in rate. Under current legislation, this rate
is statutorily capped at 22% of eligible wages, subject to the salary floor, and other termination costs
as described below. This rate is calculated on all PERS participating wages, including those wages
attributable to employees in the defined benefit plan.
ARM Board Adopted Rate: This is the rate formally adopted by the Alaska Retirement Management
Board. This rate is actuarially determined and used to calculate annual Plan funding requirements,
without regard to the statutory rate cap or the GASB accounting rate. Prior to July 1, 2015, there were
no constraints or restrictions on the actuarial cost method or other assumptions used in the ARM Board
valuation. Effective July 1, 2015, the Legislature requires the ARM Board to adopt employer
contribution rates for past service liabilities using a level percent of pay method over a closed 25 year
term which ends in 2040. This will result in lower ARM Board Rates in future years.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
73
On-behalf Contribution Rate: This is the rate paid in by the State as an on-behalf payment as mandated
under current statute. Under state law, subject to annual appropriation, the state will contribute an on-
behalf payment into the plan in an amount equal to the difference between the ARM Board Rate and
the Employer Effective Rate. On-behalf contribution amounts have been recognized in these financial
statements as both revenue and expenditures.
GASB Rate: This is the rate used to determine the long-term pension and healthcare liability for plan
accounting purposes. Certain actuarial methods and assumptions for this rate calculation are mandated
by the Governmental Accounting Standards Board (GASB). Medicare Part D subsidies are not
reflected in this rate. The rate uses a 7.25% discount rate.
Employer Contribution rates for the plan year ended 2024 are as follows:
ARM
Employer Board State
Effective Adopted Contribution
Rate Rate Rate
PERS:
Pension 22.00% 25.10% 3.10%
OPEB 0.00% 0.00% 0.00%
Total PERS contribution rates 22.00% 25.10% 3.10%
Termination Costs: If the Borough decides to terminate coverage for a department, group, or other
classification of members, even if that termination results from the decision to divest of a particular
Borough function, all affected employees in that department, group, or other classification of members
become immediately vested in the plan. The Borough must pay to have a termination study completed.
The purpose of the study is to calculate the Borough’s one-time termination costs. The costs represent
the amount necessary to fully fund the costs of plan members who become vested through this process
and for other changes in actuarial assumptions, such as, earlier than expected retirement, that arise from
the act of termination of coverage. The Borough must pay a lump sum within 60 days of termination
or arrange a payment plan that is acceptable to the PERS Administrator. For plan year ended 2023
(measurement period) the past service rate for PERS is 16.33%.
Actuarial Assumptions: The total pension and OPEB liabilities on June 30, 2023 (latest available) were
determined by an actuarial valuation as of June 30, 2022 which was rolled forward to the measurement
date June 30, 2023. These actuarial assumptions were based on the results of an actuarial experience
study for the period from July 1, 2017 to June 30, 2021.
Inflation 2.50% per year.
Salary Increases Increases range from 2.85% to 8.50% based on service.
Investment return / discount rate 7.25%, net of expenses based on average inflation of
2.50% and a real return of 4.75%.
Mortality Based upon 2017 - 2021 actual experience study and
applicable tables contained in Pub-210, projected with
MP-2021 generational improvement.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
74
Healthcare cost trend rates Pre-65 medical: 6.7% grading down to 4.5%
Post-65 medical: 5.5% grading down to 4.5%
Rx/EGWP: 7.2% grading down to 4.5%.
Ultimate trend rates reached in FY2050.
The actuarial assumptions used in the June 30, 2022 actuarial valuation are the same as those used in
the June 30, 2021 valuation with the following exceptions related to the ARHCT plan:
1. Per capita claims costs were updated to reflect recent experience.
2. Normal cost for administrative expenses were updated to reflect recent two years of actual
administrative expenses paid from plan assets.
The changes of assumptions from the latest experience study significantly reduced deferred inflows of
resources attributable to the Borough, as well as a net OPEB benefit recognized by the Borough for the
State’s proportionate share of OPEB plan expense attributable to the Borough. In some instances the
reduction of revenues and expenses reported for the State’s proportionate share of OPEB plan expense
attributable to the Borough creates a net negative Pension/OPEB expense (net pension/OPEB benefit)
which results in negative operating grants and contributions for certain functions reported on the
Statement of Activities.
Alaska Public Employee Retirement System (PERS) – Defined Benefit Plan (DB)
Plan Description. The Borough participates in the Alaska Public Employees’ Retirement System
(PERS), a cost sharing multiple employer defined benefit pension plan. PERS provides retirement
benefits, disability and death benefits, and post-employment healthcare to plan members and
beneficiaries. The Plan was established and is administered by the State of Alaska, Department of
Administration. The Public Employee’s Retirement System issues a publicly available financial report
that includes financial statements and required supplementary information for PERS. This report may
be obtained from the system at Pouch C, Juneau, Alaska 99811 or online at:
http://doa.alaska.gov/drb/pers.
Pension Benefits. All tier employee benefits vest with five years of credited service. There are three
tiers of employees based on entry date. Tier I employees enrolled prior to July 1, 1986, with five or
more years of credited service are entitled to annual pension benefits beginning at normal retirement
age 55 or early retirement age 50. For Tier II and III employees enrolled after June 30, 1986, but before
July 1, 2006, the normal and early retirement ages are 60 and 55, respectively. All tier employees with
30 or more years of credited service may retire at any age and receive a normal benefit.
The PERS defined benefit plan is closed to new hires enrolled on or after July 1, 2006. New hires after
this date participate in the PERS defined contribution plan (DC) described later in these notes.
Currently there are 150 employers participating in PERS defined benefit plan and 151 participating in
PERS defined contribution and OPEB plans.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
75
Retirement benefits are calculated by multiplying the average monthly compensation (AMC) times
credited PERS service times the percentage multiplier. The AMC is determined by averaging the
salaries earned during the five highest (three highest for peace officers/firefighters members or
members hired prior to July 1, 1996) consecutive payroll years. Members must earn at least 115 days
of credit in the last year worked to include it in the AMC calculation. The PERS pays a minimum
benefit of $25 per month for each year of service when the calculated benefit is less.
The percentage multipliers for peace officers/firefighters are 2% for the first ten years of service and
2.5% for all service over 10 years. The percentage multipliers for all other participants are 2% for the
first ten years, 2.25% for the next ten years, and 2.5% for all remaining service earned on or after July
1, 1986. All service before that date is calculated at 2%.
Post-employment healthcare benefits are provided without cost to all members first enrolled before July
1, 1986. Members first enrolled after June 30, 1986, but before July 1, 2006, and who have not reached
age 60 may elect to pay for major medical benefits.
Post Retirement Pension Adjustments. The plan has two types of postretirement pension adjustments
(PRPA). The automatic PRPA is issued annually to all eligible benefit recipients, when the cost of
living increases in the previous calendar year. The discretionary PRPA may be granted to eligible
recipients by the DB Plan’s administrator if the funding ratio of the DB Plan meets or exceeds 105%.
If both an automatic and discretionary PRPA are granted, the retiree is eligible for both adjustments,
the one that provides the retiree with the greatest benefit will be paid.
Funding Policy. In April 2008 the Alaska Legislature passed legislation which statutorily capped the
employer contribution, established a state funded “on-behalf” contribution, and required that employer
contributions be calculated against all PERS eligible wages, including wages paid to participants of the
PERS Tier IV defined contribution plan (DC) described later in these footnotes. The state legislature
capped the rate at 22%, with the State contributing an on-behalf payment for the difference between
the actuarial contribution and the cap.
Salary Floor. During the 25th legislation session, Senate Bill 125 passed, which established a June 30,
2008 salary floor under AS 39.35.255(a)(2). The salary floor is the total base salaries paid by an
employer to active employees of the system as of the fiscal year ending June 30, 2008. The statute
requires the Division of Retirement and Benefits (Division) to collect employer contributions at a
minimum based on FY 2008 base salaries.
Employee Contribution Rate. PERS active members are required to contribute 6.75%, 7.50% for peace
officers and firefighters, and 9.60% for certain school district employees.
Employer contributions for the year ended June 30, 2023, were:
Pensions
(DB)
Other Post-Employment
Benefits (DB)
Total
$ 489,010 33,839 522,849
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
76
Public Employees Retirement Plans
For the year ended June 30, 2024, the State of Alaska contributed $93,521 (100% pension cost) on-
behalf of the Borough, which has been recorded in the fund financial statements under the modified-
accrual basis of accounting. In the government-wide financial statements the on-behalf contribution
has been adjusted as of the measurement date June 30, 2023 to a total of $52,197, to represent the
pension/OPEB expense attributable to the State under the full accrual basis of accounting.
Pension and OPEB Liabilities and Assets, Pension and OPEB Expense, and Deferred Outflows of
Resources and Deferred Inflows of Resources Related to Pensions and OPEB: At June 30, 2024, the
Borough reported liabilities and assets that reflected a reduction for State pension and OPEB support
provided to the Borough. The amount recognized by the Borough as its proportionate share of net
pension and OPEB liabilities (assets), the related State support, and the total portion of the net pension
and OPEB liabilities (assets) that were associated with the Borough were as follows:
Defined Benefit: Pension
Borough’s proportionate share of the net pension liability $ 4,633,467
State’s proportionate share of the net pension liability 1,544,123
Total $ 6,177,590
OPEB
Borough’s proportionate share of the ARHCT OPEB liability (asset) $ (2,050,567)
State’s proportionate share of the ARHCT OPEB liability (asset) (690,965)
Total $ (2,741,532
Borough’s proportionate share of the ODD OPEB liability (asset) $ (52,170)
Borough’s proportionate share of the RMP OPEB liability (asset) $ (55,075)
Total Borough’s share of net pension and OPEB liabilities and assets $ 2,475,655
The net pension and OPEB liabilities and assets were determined by an actuarial valuation as of June
30, 2022, rolled forward to the measurement date of June 30, 2023 and adjusted to reflect updated
assumptions. The Borough’s proportion of the net pension and OPEB liabilities and assets were based
on the present value of contributions for FY2024 through FY2039, as determined by projections based
on the June 30, 2022 valuation.
The Borough’s proportionate share and changes in the pension and OPEB liabilities and assets were as
follows:
June 30, 2023 June 30, 2022
Measurement Measurement Change
Pension 0.0894% 0.0896% (0.0002%)
OPEB:
ARHCT 0.0891% 0.0889% 0.0002%
ODD 0.1017% 0.1073% (0.0056%)
RMP 0.1160% 0.1235% (0.0075%)
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
77
Based on the measurement date of June 30, 2023, the Borough recognized pension and OPEB expense
(benefit) of $713,066 and ($386,366), respectively, for the year ended June 30, 2024. At June 30, 2024,
the Borough reported deferred outflows of resources and deferred inflows of resources related to
pensions and OPEB from the following sources:
Pension
Deferred Outflows Deferred Inflows
Defined Benefit: of Resources of Resources
Differences between expected and actual
experience $ - -
Changes of assumptions - -
Net difference between projected and actual
earnings on pension plan investments 120,941 -
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions - -
Borough contributions subsequent to the
measurement date 489,010 -
Total $ 609,951 -
OPEB ARHCT
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience $ 4,258 (2)
Changes of assumptions - (37,734)
Net difference between projected and actual
earnings on OPEB plan investments 93,331 -
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions - (966)
Borough contributions subsequent to the
measurement date - -
Total $ 97,589 (38,702)
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
78
OPEB ODD
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience $ - (14,660)
Changes of assumptions - (217)
Net difference between projected and actual
earnings on OPEB plan investments 1,204 -
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions 7,171 (1,569)
Borough contributions subsequent to the
measurement date 8,070 -
Total $ 16,445 (16,446)
OPEB RMP
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience $ 1,679 (1,778)
Changes of assumptions 5,922 (44,786)
Net difference between projected and actual
earnings on OPEB plan investments 4,615 -
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions 1,215 (1,934)
Borough contributions subsequent to the
measurement date 25,769 -
Total $ 39,200 (48,498)
$489,010 and $33,839 are reported as deferred outflows of resources related to pension and OPEB
resulting from Borough contributions subsequent to the measurement date and will be recognized as a
reduction of the net pension liabilities and as an increase to the net OPEB assets in the year ended June
30, 2025, respectively. Other amounts reported as deferred outflows of resources and deferred inflows
of resources related to pension and OPEB will be recognized in pension and OPEB expense as follows:
Plan Year Ended
June 30,
Pension
OPEB
ARHCT
OPEB
ODD
OPEB
RMP
2024 $ (45,868) (75,047) (2,400) (7,109)
2025 (101,445) (84,308) (2,640) (7,992)
2026 274,443 223,956 (355) (356)
2027 (6,189) (5,714) (1,215) (8,528)
2028 - - (875) (6,036)
Thereafter - - (586) (5,046)
Total $ 120,941 58,887 (8,071) (35,067)
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
79
For the year ended June 30, 2024, the Borough recognized $33,151 and $74,957 of pension and OPEB
amortization of the net deferred outflows and inflows of resources, respectively.
Sensitivity of the Net Pension and OPEB Liabilities and Assets to Changes in the Discount Rate: The
following presents the net pension and OPEB liabilities and assets of the plan calculated using the
discount rate of 7.25%, as well as what the Plans’ net pension and OPEB liabilities and assets would
be if they were calculated using a discount rate that is 1-percentage-point lower (6.25%) or 1-
percentage-point higher (8.25%) than the current rate:
1% Decrease Current Rate 1% Increase
(6.25%) (7.25%) (8.25%)
Net pension liability $ 6,220,415 4,633,467 3,292,963
Net OPEB ARHCT (asset) $ (1,362,999) (2,050,567) (2,628,162)
Net OPEB ODD (asset) $ (49,019) (52,170) (54,623)
Net OPEB RMP (asset) $ (1,914) (55,075) (95,685)
Sensitivity of the Borough’s proportionate share of the Net OPEB liability and assets to changes in the
healthcare cost trend rates. The following present the Borough’s proportionate share of the net OPEB
liability (asset), as well as what the Borough’s proportionate share of the net OPEB liability (asset)
would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-
percentage-point higher than the current healthcare cost trend rates:
1% Decrease Current Rate 1% Increase
Net OPEB ARHCT (asset) $ (2,694,231) (2,050,567) (1,284,139)
Net OPEB ODD (asset) N/A (52,170) N/A
Net OPEB RMP liability (asset) $ (101,135) (55,075) 6,794
Alaska Public Employee Retirement System (PERS) – Defined Contribution Plan (DC)
Plan Description and Funding Requirements. Cities and Public Employers in the State of Alaska have
a defined contribution retirement plan (PERS Tier IV) for new hires first enrolled on or after July 1,
2006. This Plan is administered by the State of Alaska, Department of Administration in conjunction
with the defined benefit plan noted above. The Administrator of the Plan is the Commissioner of
Administration or the Commissioner’s designee. Plan members make mandatory contributions of
6.75% of gross eligible compensation. This amount goes directly to the individual’s account. State
statutes require the employer to contribute 5.00% of employees’ eligible compensation. Additionally,
employers are required to contribute to OPEB (DB): 1.01% for the retiree medical plan (DB), 0.30%
and 0.68% (peace officers) for occupational and death and disability benefits (DB) and 3.00% of
employers’ average annual employee compensation to the health reimbursement arrangement (HRA
DC). The effective employer contribution is capped at 22.00% with anything in excess of the
previously listed rates being contributed to the Defined Benefit Unfunded Liability (DBUL).
Plan members are 100% vested with their contributions.
Members become vested in employers’ contributions as follows:
2 years of service – 25%
3 years of service – 50%
4 years of service – 75%
5 years of service – 100%
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
80
The Borough contributed $199,315 for the year ended June 30, 2024, which included forfeitures of
$9,456 which have been applied as employer contributions.
Deferred Compensation Plan
The Kodiak Island Borough has three deferred compensation plans created and amended in accordance
with Internal Revenue Code Section 457. The plans are available to all regular Borough employees.
The deferred compensation is not available to employees until termination, retirement, death, or
unforeseeable emergency.
All amounts deferred under these plans are held in trusts that were established for the exclusive benefit
of plan participants. Amounts contributed to the plans by participants during the year ended June 30,
2024, were $89,330.
The first plan is managed by Mission Square, formally International City Managers Association
Retirement Corporation (ICMA). $22,100 was contributed to this plan during the year ended June 30,
2024. The Borough believes that the plan does not meet the criteria for inclusion as a fiduciary fund.
The second plan is managed by Empower, formally MassMutual Financial Group. $6,500 was
contributed to this plan during the year ended June 30, 2024. The Borough believes that the plan does
not meet the criteria for inclusion as a fiduciary fund.
The third plan is managed by Empower and accepts both taxable and non-taxable contributions.
$60,730 was contributed to this plan during the year ended June 30, 2023. The Borough believes that
the plan does not meet the criteria for inclusion as a fiduciary fund.
(16) Contingencies
(a) General
The Borough, in the normal course of its activities, is involved in various claims and pending
litigation. After consultation with legal counsel, management estimates that these matters will be
resolved without material adverse effect on the Borough’s future financial position or results of
operations.
(b) Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment by the
grantor agencies. Any disallowed claims, including amounts already collected, would become a
liability of the General or other applicable funds. In management’s opinion, disallowances, if
any, will not be material.
(17) Subsequent Events
Management have evaluated subsequent events through December 19, 2024, the date which the
financial statements were available for issue.
(18) Construction Commitments
The Borough has outstanding commitments for construction at year end of $3,118,032.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
81
(19) Subsequent Accounting Pronouncements
The Governmental Accounting Standards Board has passed several new accounting standards with
upcoming implementation dates covering several topics as follows:
GASB 101 Compensated Absences. Effective for fiscal years beginning after December 15,
2023, and all reporting periods thereafter.
GASB 102 Certain Risk Disclosures. Effective for fiscal years beginning after June 15, 2024,
and all reporting periods thereafter.
GASB 103 Financial Reporting Model Improvements: Effective for fiscal years beginning
after June 15, 2025, and all reporting periods thereafter.
GASB 104 Disclosure of Certain Capital Assets: Effective for fiscal years beginning after
June 15, 2025, and all reporting periods thereafter.
GASB Statement No. 101 unified recognition and measurement model in this Statement will result in a
liability for compensated absences that more appropriately reflects when a government incurs an
obligation. In addition, the model can be applied consistently to any type of compensated absence and
will eliminate potential comparability issues between governments that offer different types of leave.
The model also will result in a more robust estimate of the amount of compensated absences that a
government will pay or settle, which will enhance the relevance and reliability of information about the
liability for compensated absences.
GASB Statement No. 102 will improve financial reporting by providing users of financial statements
with essential information that currently is not often provided. The disclosures will provide users with
timely information regarding certain concentrations or constraints and related events that have occurred
or have begun to occur that make a government vulnerable to a substantial impact. As a result, users will
have better information with which to understand and anticipate certain risks to a government’s financial
condition.
GASB Statement No. 103 will improve key components of the financial reporting model to enhance its
effectiveness in providing information that is essential for decision making and assessing a government’s
accountability. This Statement also addresses certain application issues.
GASB Statement No. 104 establishes requirements for certain types of capital assets to be disclosed
separately in the capital assets note disclosures. The Statement also establishes requirements for capital
assets held for sale and requires additional disclosures for those capital assets. Under the guidance, a
capital asset is a capital asset held for sale if: (a) the government has decided to pursue the sale of the
asset, and (b) it is probable the sale will be finalized within a year of the financial statement date. A
government should disclose the historical cost and accumulated depreciation of capital assets held for
sale, by major class of asset.
REQUIRED SUPPLEMENTARY
INFORMATION
Budgetary Comparison Schedule
General Fund
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
Variance with
Final Budget –
Budget Positive 2023
Original Final Actual (Negative)Actual
Revenues:
Property taxes and assessments:
Real 1,737,702 1,737,702 1,677,123 (60,579) 1,604,686
Personal 193,078 193,078 185,732 (7,346) 188,509
Aircraft 26,900 26,900 23,100 (3,800) 25,700
Penalty and interest 260,000 260,000 228,706 (31,294) 232,873
Total property taxes
and assessments 2,217,680 2,217,680 2,114,661 (103,019) 2,051,768
Severance taxes:
Fish 1,300,000 1,300,000 946,628 (353,372) 1,554,470
Mining 5,000 5,000 2,679 (2,321) 1,479
Logging 30,000 30,000 41,263 11,263 41,378
Total severance taxes 1,335,000 1,335,000 990,570 (344,430) 1,597,327
Excise taxes -
Tobacco 675,000 675,000 804,223 129,223 829,274
Intergovernmental:
State sources:
State community assistance 477,242 477,242 481,596 4,354 477,242
Fisheries business tax 1,000,000 1,000,000 1,332,436 332,436 1,347,362
Fisheries resource landing tax 100,000 100,000 70,620 (29,380) 59,341
Electric cooperative tax 16,000 16,000 21,265 5,265 20,778
PERS on-behalf payment 67,070 67,070 63,657 (3,413) 51,677
Marijuana license — — 300 300 3,000
Total state sources 1,660,312 1,660,312 1,969,874 309,562 1,959,400
Federal sources:
Payments in lieu of taxes 1,636,000 1,636,000 1,902,885 266,885 1,783,197
Fish and Wildlife revenue sharing 180,000 180,000 187,678 7,678 201,160
Total federal sources 1,816,000 1,816,000 2,090,563 274,563 1,984,357
Total intergovernmental
revenue 3,476,312 3,476,312 4,060,437 584,125 3,943,757
Charges for services -
Sale of copies and maps — — 664 664 527
Licenses, permits and fees:
Building and trailer permits 63,000 63,000 67,488 4,488 57,238
Subdivision and zoning fees 11,000 11,000 11,020 20 12,900
Business licenses 300 300 300 — 400
Other permits 9,800 9,800 6,857 (2,943) 5,626
Total licenses, permits and fees 84,100 84,100 85,665 1,565 76,164
Investment income 300,000 300,000 2,388,036 2,088,036 422,783
Other 750 750 19,393 18,643 10,666
Total revenues 8,088,842 8,088,842 10,463,649 2,374,807 8,932,266
(continued)
2024
KODIAK ISLAND BOROUGH
82
Budgetary Comparison Schedule
General Fund, continued
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
Variance with
Final Budget –
Budget Positive 2023
Original Final Actual (Negative)Actual
Expenditures:
General government:
General administration $ 318,796 908,796 911,825 (3,029) 423,203
Borough assembly 250,671 250,671 224,295 26,376 168,806
Borough manager 520,172 520,172 421,004 99,168 285,809
Borough clerk 674,938 674,938 599,568 75,370 596,963
Borough attorney 90,500 90,500 36,861 53,639 43,907
Finance department 930,026 930,026 755,532 174,494 861,010
Management information systems 1,322,922 1,322,922 1,215,884 107,038 849,370
Assessing department 891,439 891,439 806,973 84,466 767,481
Engineering/facilities department 543,680 543,680 506,135 37,545 385,431
Total general government 5,543,144 6,133,144 5,478,077 655,067 4,381,980
Public safety - animal control 152,310 152,310 152,310 — 150,430
Community and economic development:
Community development department 776,213 776,213 581,877 194,336 473,750
Building official 190,295 190,295 196,381 (6,086) 215,020
Economic development 600 5,600 5,600 — 10,600
Total community and economic
development 967,108 972,108 783,858 188,250 699,370
Emergency preparedness 51,631 51,631 17,810 33,821 16,460
Health and social welfare 85,000 85,000 158,819 (73,819) 150,000
Education, culture and recreation 105,489 105,489 20,265 85,224 20,562
Parks and recreation 88,542 88,542 6,167 82,375 12,760
Kodiak College and city libraries 100,000 100,000 107,220 (7,220) 79,965
Total expenditures 7,093,224 7,688,224 6,724,526 963,698 5,511,527
Excess of revenues
over expenditures 995,618 400,618 3,739,123 3,338,505 3,420,739
Other financing sources (uses):
Proceeds from sale of capital assets — — 15,810 15,810 —
Transfers in — 595,000 — (595,000) 5,879,272
Transfers out (995,618) (995,618) (995,618) — —
Net other financing sources (uses) (995,618) (400,618) (979,808) (579,190) 5,879,272
Change in fund balance $— — 2,759,315 2,759,315 9,300,011
Fund balance, at beginning of year 17,550,830 8,250,819
Fund balance, at end of the year $20,310,145 17,550,830
See accompanying notes to required supplementary information.
2024
KODIAK ISLAND BOROUGH
83
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Special Revenue Fund – Education Support
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
Variance with
Final Budget –
Budget Positive 2023
Original Final Actual (Negative)Actual
Revenues:
Property taxes and assessments:
Real $10,984,720 10,984,720 10,703,958 (280,762) 10,667,787
Personal 1,220,524 1,220,524 1,175,907 (44,617) 1,259,033
Total revenues 12,205,244 12,205,244 11,879,865 (325,379) 11,926,820
Expenditures -
Primary and secondary education 12,205,244 12,205,244 12,205,265 (21) 11,955,294
Excess (deficiency) of revenues
over expenditures $— — (325,400) (325,400) (28,474)
Fund balance (deficit), at beginning of year (185,907) (157,433)
Fund balance (deficit), at end of year $ (511,307) (185,907)
See accompanying notes to required supplementary information.
2024
84
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Special Revenue Fund – Facilities
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
Variance with
Final Budget –
Budget Positive 2023
Original Final Actual (Negative) Actual
Revenues -
Investment income $1,000,000 1,000,000 2,485,396 1,485,396 426,116
Expenditures -
Contingencies 150,000 150,000 — 150,000 —
Excess (deficiency) of revenues
over expenditures 850,000 850,000 2,485,396 1,635,396 426,116
Other financing sources (uses):
Transfers in -
Education Debt Service Fund — — — — 2,213,366
Transfers out:
Building and Grounds
Special Revenue Fund (5,000) (5,000) (5,000) — —
Education Debt Service Fund (845,000) (845,000) (845,000) — —
Net other financing sources (uses)(850,000) (850,000) (850,000) — 2,213,366
Change in fund balance $— — 1,635,396 1,635,396 2,639,482
Fund balance, at beginning of year 39,911,999 37,272,517
Fund balance, at end of year $ 41,547,395 39,911,999
See accompanying notes to required supplementary information.
2024
85
Borough's
Proportionate
Share of the Plan Fiduciary
Borough's Borough's State of Alaska Net Pension Net Position as
Proportion Proportionate Proportionate Liability as a a Percentage
of the Net Share of the Share of the Total Borough's Percentage of of the Total
Pension Net Pension Net Pension Net Pension Covered Covered Pension
Liability Liability Liability Liability Payroll Payroll Liability
0.0813% $ 3,790,363 $ 3,187,850 $ 6,978,213 $ 2,929,492 129.39% 62.37%
0.1143% $ 5,545,660 $ 1,488,931 $ 7,034,591 $ 3,204,521 173.06% 63.96%
0.1330% $ 7,434,494 $ 939,394 $ 8,373,888 $ 3,129,406 237.57% 59.55%
0.1100% $ 5,687,130 $ 2,118,453 $ 7,805,583 $ 3,055,486 186.13% 63.37%
0.1188% $ 5,902,812 $ 1,709,426 $ 7,612,238 $ 3,597,759 164.07% 65.19%
0.1122% $ 6,144,196 $ 2,435,789 $ 8,579,985 $ 3,249,981 189.05% 63.42%
0.0880% $ 5,191,159 $ 2,144,483 $ 7,335,642 $ 3,076,150 168.76% 61.61%
0.1158% $ 4,247,344 $ 573,256 $ 4,820,600 $ 3,066,295 138.52% 76.46%
0.0896% $ 4,566,746 $ 1,261,745 $ 5,828,491 $ 2,867,555 159.26% 67.97%
0.0894% $ 4,633,467 $ 1,544,123 $ 6,177,590 $ 2,913,250 159.05% 68.23%
See accompanying notes to Required Supplementary Information.
KODIAK ISLAND BOROUGH
Schedule of Borough's Proportionate Share of the Net Pension Liability
2024
2020
2021
2022
Public Employees' Retirement System (PERS)
June 30, 2024
Year
2015
2016
2017
2018
2019
2023
86
Borough's
Proportionate Plan Fiduciary
Borough's Borough's State of Alaska Share of the Net Position as
Proportion Proportionate Proportionate Net OPEB a Percentage
of the Net Share of the Share of the Total Liability (Asset) of the Total
OPEB Net OPEB Net OPEB Net OPEB Borough's as a Percentage OPEB
Liability Liability Liability Liability Covered of Covered Liability
(Asset) (Asset) (Asset) (Asset) Payroll Payroll (Asset)
Alaska Retiree Healthcare Trust Plan (ARHCT):
0.1101% $ 929,853 $ 347,255 $ 1,277,108 $ 3,055,486 30.43% 89.68%
0.1187% $ 1,218,333 $ 353,630 $ 1,571,963 $ 3,597,759 33.86% 88.12%
0.1121% $ 166,384 $ 66,122 $ 232,506 $ 3,249,981 5.12% 98.13%
0.0880% $ (398,510) $ (165,197) $ (563,707) $ 3,076,150 -12.95% 106.15%
0.1163% $ (2,984,594) $ (390,455) $ (3,375,049) $ 3,066,295 -97.34% 135.54%
0.0889% $ (1,748,589) $ (501,316) $ (2,249,905) $ 2,867,555 -60.98% 128.51%
0.0891% $ (2,050,567) $ (690,965) $ (2,741,532) $ 2,913,250 -70.39% 133.96%
Occupational Death and Disability (ODD):
0.1438% $ (20,405) $ - $ (20,405) $ 3,055,486 -0.67% 212.97%
0.1648% $ (32,004) $ - $ (32,004) $ 3,597,759 -0.89% 270.62%
0.1352% $ (32,784) $ - $ (32,784) $ 3,249,981 -1.01% 297.43%
0.1276% $ (34,792) $ - $ (34,792) $ 3,076,150 -1.13% 283.80%
0.1243% $ (54,780) $ - $ (54,780) $ 3,066,295 -1.79% 374.22%
0.1073% $ (47,016) $ - $ (47,016) $ 2,867,555 -1.64% 348.80%
0.1017% $ (52,170) $ - $ (52,170) $ 2,913,250 -1.79% 349.24%
Retiree Medical Plan (RMP):
0.1438% $ 7,500 $ - $ 7,500 $ 616,628 1.22% 93.98%
0.1648% $ 20,969 $ - $ 20,969 $ 669,059 3.13% 88.71%
0.1530% $ 36,596 $ - $ 36,596 $ 665,832 5.50% 83.17%
0.1443% $ 10,236 $ - $ 10,236 $ 683,409 1.50% 92.23%
0.1404% $ (37,673) $ - $ (37,673) $ 729,168 -5.17% 115.10%
0.1235% $ (42,879) $ - $ (42,879) $ 717,059 -5.98% 120.08%
0.1160% $ (55,075) $ - $ (55,075) $ 721,455 -7.63% 124.29%
See accompanying notes to Required Supplementary Information.
2018
2018
2018
2019
2019
2020
2020
2021
2021
2022
2024
2023
Public Employees' Retirement System (PERS)
June 30, 2024
Year
KODIAK ISLAND BOROUGH
Schedule of Borough's Proportionate Share of the Net OPEB Liability (Asset)
2024
2022
2019
2020
2021
2022
2024
2023
2023
87
Contributions
Relative to the Contributions
Contractually Contractually Contribution Borough's as a Percentage
Required Required Deficiency Covered of Covered
Contribution Contribution (Excess) Payroll Payroll
$370,432 $ (370,432) $ - $3,204,521 11.56%
$377,365 $(377,365) $- $3,129,406 12.06%
$406,215 $ (406,215) $ - $3,055,486 13.29%
$483,892 $ (483,892) $ - $3,597,759 13.45%
$397,978 $(401,284) $ (3,306) $3,249,981 12.25%
$356,123 $(352,817) $ 3,306 $3,076,150 11.58%
$407,818 $(407,818) $- $3,066,295 13.30%
$386,986 $(386,986) $ - $2,867,555 13.50%
$ 454,479 $ (454,215) $ 264 $ 2,913,250 15.60%
$ 489,010 $ (489,010) $ - $ 3,282,564 14.90%
See accompanying notes to Required Supplementary Information.
Public Employees' Retirement System (PERS)
June 30, 2024
Year
KODIAK ISLAND BOROUGH
Schedule of Borough's Contributions (Pensions)
2024
2020
2022
2021
2015
2016
2017
2018
2019
2023
88
Contributions
Relative to the Contributions
Contractually Contractually Contribution Borough's as a Percentage
Required Required Deficiency Covered of Covered
Contribution Contribution (Excess) Payroll Payroll
Alaska Retiree Healthcare Trust Plan (ARHCT):
$ 137,930 $ (137,930) $ - $ 3,597,759 3.83%
$ 143,757 $ (143,757) $ - $ 3,249,981 4.42%
$ 142,245 $ (142,245) $ - $ 3,076,150 4.62%
$ 73,672 $ (73,672) $ - $ 3,066,295 2.40%
$ 59,046 $ (59,046) $ - $ 2,867,555 2.06%
$ - $ - $ - $ 2,913,250 0.00%
$ - $ - $ - $ 3,282,564 0.00%
Occupational Death and Disability (ODD):
$ 3,283 $ (3,283) $ - $ 3,597,759 0.09%
$ 5,521 $ (5,521) $ - $ 3,249,981 0.17%
$ 5,597 $ (5,597) $ - $ 3,076,150 0.18%
$ 6,630 $ (6,630) $ - $ 3,066,295 0.22%
$ 6,187 $ (6,187) $ - $ 2,867,555 0.22%
$ 6,229 $ (6,229) $ - $ 2,913,250 0.21%
$ 8,070 $ (8,070) $ - $ 3,282,564 0.25%
Retiree Medical Plan (RMP):
$ 19,210 $ (19,210) $ - $ 669,059 2.87%
$ 17,951 $ (17,951) $ - $ 665,832 2.70%
$ 25,744 $ (25,744) $ - $ 683,409 3.77%
$ 26,048 $ (26,048) $ - $ 729,168 3.57%
$ 20,890 $ (20,890) $ - $ 717,059 2.91%
$ 21,751 $ (21,751) $ - $ 721,455 3.01%
$ 25,769 $ (25,769) $ - $ 905,977 2.84%
See accompanying notes to Required Supplementary Information.
Public Employees' Retirement System (PERS)
June 30, 2024
Year
KODIAK ISLAND BOROUGH
Schedule of Borough's Contributions (OPEB)
2018
2018
2018
2019
2019
2020
2020
2021
2021
2022
2022
2024
2023
2023
2023
2024
2024
2022
2019
2021
2020
89
KODIAK ISLAND BOROUGH
Notes to Required Supplementary Information
June 30, 2024
90
1. Budgets and Budgetary Accounting
The Borough follows these procedures in establishing the budgetary data reflected in the fund financial
statements:
The Borough Manager must submit to the Borough Assembly by April 1st a proposed operating budget
for the fiscal year commencing the following July 1. The operating budget includes proposed
expenditures and the means of financing them.
Public hearings are conducted by the Borough Assembly to obtain citizen comments.
By June 10, the budget is legally enacted through passage of an ordinance by Borough Assembly action.
If the Borough Assembly fails to pass an ordinance, the budget submitted by the Borough Manager
becomes the adopted budget.
Amendments to the budget can occur anytime during the fiscal year through the Borough Assembly or
administrative action. Generally, the following actions are required at the level of the particular change:
– All new appropriations are authorized by an appropriation ordinance that amends the annual budget
ordinance.
– A resolution of the Borough Assembly is required to move (appropriate) amounts between
departments and projects.
– The administration is authorized and directed by the Borough Assembly to effect the necessary
line item changes within the limits established by Items (1) and (2) above by project or department
to properly monitor, account, and report receipts and expenditures.
Expenditures may not legally exceed appropriations at the following levels: Capital Projects Funds –
project level; General Fund – department level; all other funds – fund level.
All funds, except Capital Projects Funds, are budgeted on an annual basis encompassing a fiscal year.
Budgets of Capital Projects Funds generally encompass the period from start-up to project completion,
which is generally greater than one year.
Appropriations lapse at year end to the extent that they have not been expended for all funds, except
Capital Projects Funds, which lapse at project completion.
Budgets adopted by the Borough Assembly are in accordance with accounting principles generally
accepted in the United States of America.
The Borough published a separate 2024 budget document. That document may be obtained from the
Kodiak Island Borough, Finance Director, 710 Mill Bay Road, Kodiak, Alaska 99615.
KODIAK ISLAND BOROUGH
Notes to Required Supplementary Information, Continued
91
Excess of Expenditures over Appropriations
The Assembly approves operating budgets and appropriations of direct costs at the function and department
level for the General Fund, and at the function level for all other funds. For the year ended June 30, 2024,
expenditures exceeded appropriations in the following funds:
General Fund:
General government – general administration $ 3,029
Community and economic development – building official 6,086
Health and social welfare 73,819
Kodiak College and city libraries 7,220
Education Support Special Revenue Fund –
Primary and secondary education 21
2. Public Employees’ Retirement System
Schedule of Borough’s Proportionate Share of Net Pension and OPEB Liability (Asset)
The table is presented based on the Plan measurement date which is one year prior to fiscal year end for all
years presented.
Changes in Actuarial Assumptions, Methods, and Benefits Since the Prior Valuation
Defined Benefit Pension and Postemployment Healthcare Benefit Plan
a) Changes in Methods Since the Prior Valuation – June 30, 2021 to June 30, 2022
There were no changes in actuarial methods since the prior valuation.
b) Changes in Assumptions Since the Prior Valuation – June 30, 2021 to June 30, 2022
Effective for the June 30, 2022 valuation, the Alaska Retirement Management Board adopted the
changes to the demographic and economic assumptions recommended by the actuary, based on the
results of an experience study performed on the plan experience from July 1, 2017 to June 30, 2021.
The changes in assumptions were adopted at the June 2022 Board meeting. The effect of the new
assumptions was to increase the actuarial accrued liability as of June 30, 2022 by approximately $206
million for pension and decrease by approximately $88 million for healthcare.
The healthcare per capital claims cost assumption is updated for each valuation. The amounts
included in the Normal Cost for the administrative expenses were updated based on the last two years
of actual administrative expenses paid from plan assets.
c) Changes in Benefit Provisions Since the Prior Valuation – June 30, 2021 to June 30, 2022
There were no changes in benefit provisions since the prior valuation.
KODIAK ISLAND BOROUGH
Notes to Required Supplementary Information, Continued
92
Defined Contribution Occupational Death and Disability and Retiree Medical Benefits Plan
a) Changes in Methods Since the Prior Valuation – June 30, 2021 to June 30, 2022
There were no changes in actuarial methods since the prior valuation.
b) Changes in Assumptions Since the Prior Valuation – June 30, 2021 to June 30, 2022
Effective for the June 30, 2022 valuation, the Alaska Retirement Management Board adopted the
changes to the demographic and economic assumptions recommended by the actuary, based on the
results of an experience study performed on the plan experience from July 1, 2017 to June 30, 2021.
The changes in assumptions were adopted at the June 2022 Board meeting. The effect of the new
assumptions was to increase the actuarial accrued liability as of June 30, 2022 by approximately
$1,222,000 for occupational death & disability and decrease by approximately $22,348,000 for retiree
medical.
c) Changes in Benefit Provisions Since the Prior Valuation – June 30, 2021 to June 30, 2022
There have been no changes in benefit provisions valued since the prior valuation.
The GASB requires ten years of information be presented. However, until a full ten years of information is
available, the Borough will present only those years for which information is available.
Schedule of Borough’s Contributions (Pension) and (OPEB)
The table valuation date is June 30, 2022 which was rolled forward to June 30, 2023. Actuarially determined
contribution rates are calculated as of June 30th, two years prior to the fiscal year in which contributions are
reported.
ADDITIONAL SUPPLEMENTARY INFORMATION
Variance with
Final Budget –
Positive 2023
Original Final Actual (Negative)Actual
Revenues:
Property taxes and assessments $465,019 465,019 424,344 (40,675) 2,061,217
Intergovernmental -
State sources 5,808,627 5,808,627 5,877,863 69,236 5,872,228
Total revenues 6,273,646 6,273,646 6,302,207 28,561 7,933,445
Expenditures:
General government 3,150 3,150 3,150 — 3,159
Debt service:
Principal 6,240,000 6,240,000 6,240,000 — 6,035,000
Interest 1,322,362 1,322,362 1,322,362 — 1,531,316
Total expenditures 7,565,512 7,565,512 7,565,512 — 7,569,475
Excess (deficiency) of revenues
over expenditures (1,291,866) (1,291,866) (1,263,305) 28,561 363,970
Other financing sources (uses):
Transfers in - General Fund 995,618 995,618 995,618 — —
Transfers out - General Fund — — — — (5,879,272)
Transfers out - Facilities Special Revenue Fund — — — — (2,213,366)
Transfers out - Renewal and Replacement
Projects Capital Project Fund — — — — (4,047,302)
Net other financing sources (uses) 995,618 995,618 995,618 — (12,139,940)
Change in fund balance $(296,248) (296,248) (267,687) 28,561 (11,775,970)
Fund balance, at beginning of year 687,206 12,463,176
Fund balance, at end of year $ 419,519 687,206
2024
Budget
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Debt Service Fund - Education
Year ended June 30, 2024
(With summarized financial information for the year ended June 30, 2023)
93
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue
See Special Revenue section of this report.
Capital Projects
See Capital Projects section of this report.
KODIAK ISLAND BOROUGH
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
(With summarized financial information at June 30, 2023)
Special Capital
Revenue Project
Assets Funds Funds 2024 2023
Equity in central treasury $ 6,634,220 13,676,138 20,310,358 18,303,185
Receivables:
Federal government — 743 743 5,184
Property taxes, net 20,427 17,240 37,667 28,424
Land sales contracts, due within one year 12,003 — 12,003 12,075
Accounts and other receivables, net 34,514 — 34,514 33,409
Prepaid items 2,569 — 2,569 1,745
Due from other funds 4,833 — 4,833 —
Land sale contracts, due after one year 16,693 — 16,693 27,905
Total assets $ 6,725,259 13,694,121 20,419,380 18,411,927
Liabilities:
Accounts payable $92,804 32,392 125,196 414,578
Customer deposits 1,450 — 1,450 3,348
Due to other funds 19,466 — 19,466 —
Unearned revenues 49,300 — 49,300 29,600
Total liabilities 163,020 32,392 195,412 447,526
Deferred inflows of resources -
Unavailable revenues 48,858 16,542 65,400 65,532
Total liabilities and deferred
inflows of resources 211,878 48,934 260,812 513,058
Fund balances:
Nonspendable 2,569 — 2,569 1,745
Restricted 78,097 — 78,097 54,247
Committed 6,448,725 — 6,448,725 5,329,401
Assigned — 13,645,187 13,645,187 12,520,702
Unassigned (16,010) — (16,010) (7,226)
Total fund balances 6,513,381 13,645,187 20,158,568 17,898,869
Total liabilities, deferred inflows
of resources and fund balances $6,725,259 13,694,121 20,419,380 18,411,927
Totals
Resources and Fund Balances
Liabilities, Deferred Inflows of
94
KODIAK ISLAND BOROUGH
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
Year ended June 30, 2024
(With summarized financial information for year ended June 30, 2023)
Special Capital
Revenue Project
Funds Funds 2024 2023
Revenues:
Property taxes and assessments $1,652,061 1,674,614 3,326,675 2,081,692
Transient accommodations tax 99,210 — 99,210 122,016
Intergovernmental:
State sources 25,348 — 25,348 10,815
Federal sources 13,042 743 13,785 5,335
Charges for services 939,220 — 939,220 839,169
Licenses, permits and fees 55,550 — 55,550 37,200
Investment income 392,895 49,147 442,042 102,922
Rentals 15,600 — 15,600 15,100
Land sales 14,740 — 14,740 15,540
Other 44,240 430 44,670 713,313
Total revenues 3,251,906 1,724,934 4,976,840 3,943,102
Expenditures:
Current:
General government 562,407 — 562,407 677,435
Public safety 592,833 — 592,833 574,875
Community and economic development 86,844 — 86,844 105,886
Service district maintenance 618,344 — 618,344 700,146
Capital outlay:
Schools — 424,142 424,142 461,278
General 261,264 1,021,307 1,282,571 686,810
Total expenditures 2,121,692 1,445,449 3,567,141 3,206,430
Excess of revenues
over expenditures 1,130,214 279,485 1,409,699 736,672
Other financing sources (uses):
Proceeds from sale of capital assets — — — 11,157
Transfers in 5,000 845,000 850,000 4,352,343
Transfers out — — — (305,041)
Net other financing sources (uses) 5,000 845,000 850,000 4,058,459
Change in fund balances 1,135,214 1,124,485 2,259,699 4,795,131
Fund balances, at beginning of year 5,378,167 12,520,702 17,898,869 13,103,738
Fund balances, at end of year $ 6,513,381 13,645,187 20,158,568 17,898,869
Totals
95
NONMAJOR SPECIAL REVENUE FUNDS
The Fire Protection Area No. 1 Fund accounts for the activities related to fire suppression and fire prevention
services to the citizens of the service area.
The Womens Bay Fire Department Fund accounts for the activities related to fire suppression and fire prevention
services to the citizens of the service area.
The Kodiak Airport Fire District Fund accounts for the activities related to fire suppression and fire prevention
services to the citizens of the service area.
The Monashka Bay Road Service Area Fund accounts for the activities related to road services within the service
area.
The Service Area No. 1 Fund accounts for the activities related to maintenance service to roads within the district,
including snow removal, ditching and grading.
The Womens Bay Road Service Area Fund accounts for the activities related to maintenance service to roads
within the service area, including snow and ice removal, ditching and culvert work.
The Bay View Road Service Area Fund accounts for the activities related to road services within the service area.
The Service Area No. 2 Fund accounts for the activities related to water and sewer services in the service area.
This fund is in the design stage at present.
The Local Emergency Planning Committee (L.E.P.C.) Fund accounts for State of Alaska grants provided for
regional emergency preparation, response, and mitigation planning.
The Land Sales Fund accounts for the disposal of Borough-owned lands. The proceeds of land disposals are
generally used for the management of Borough lands.
The Buildings and Grounds Fund accounts for the operations and maintenance of certain buildings and grounds
owned by the Borough which are jointly shared with the City of Kodiak, the Kodiak Island Borough School
District, and certain nonprofit community organizations.
The Woodland Acres Street Light Service Area Fund accounts for activities related to the provision of street
lighting within the service area.
The Trinity Islands Street Light Service Area Fund accounts for activities related to the provision of street
lighting within the service area.
The Tourism Development Fund accounts for the collection of the Borough Transient Accommodation Tax (Bed
Tax) and Commercial Passenger Vessel tax revenues.
The Commercial Passenger Vessel Fund accounts for the collection of the Commercial Passenger Vessel Tax
revenue.
The Mission Lake Tide Gate Fund accounts for activities related to maintaining the tide gate for the residents of
the service area.
The Opiod Class Action Settlement Fund accounts for activities related to the federal Opioid settlement.
Fire
Fire Women's Kodiak Monashka Womens
Protection Bay Fire Airport Fire Bay Road Service Bay Road Bay View Road Service Area
Area No. 1 Department District Service Area Area No. 1 Service Area Service Area No. 2 L.E.P.C.
Equity in central treasury $ 979,100 890,174 56,025 284,000 1,306,035 42,683 44,128 6,440 22,824
Receivables:
Property taxes, net 8,288 566 3,111 749 6,568 1,131 — — —
Land sales contracts, due within one year — — — — — — — — —
Accounts and other receivables, net — — — — — — — — —
Prepaid items 2,569 — — — — — — — —
Due from other funds — — — 5 25 — — — —
Land sale contracts, due after one year — — — — — — — — —
Total assets $ 989,957 890,740 59,136 284,754 1,312,628 43,814 44,128 6,440 22,824
Liabilities:
Accounts payable $13,803 1,006 — 1,469 44,095 10,393 312 — —
Customer deposits — 1,450 — — — — — — —
Due to other funds 19,466 — — — — — — — —
Unearned revenues — — — — — 48,300 — — —
Total liabilities 33,269 2,456 — 1,469 44,095 58,693 312 — —
Deferred inflows of resources -
Unavailable revenues 8,115 566 3,111 749 6,476 1,131 — — —
Total liabilities and deferred
inflows of resources 41,384 3,022 3,111 2,218 50,571 59,824 312 — —
Fund balances:
Nonspendable 2,569 — — — — — — — —
Restricted — — — — — — — — —
Committed 946,004 887,718 56,025 282,536 1,262,057 — 43,816 6,440 22,824
Unassigned — — — — — (16,010) — — —
Total fund balances 948,573 887,718 56,025 282,536 1,262,057 (16,010) 43,816 6,440 22,824
Total liabilities, deferred inflows of
resources and fund balances $ 989,957 890,740 59,136 284,754 1,312,628 43,814 44,128 6,440 22,824
(continued)
Liabilities, Deferred Inflows of Resources,
and Fund Balances
State Grant
Program
Assets
Fire and Road Service Areas
Road
KODIAK ISLAND BOROUGH
Combining Balance Sheet
Nonmajor Special Revenue Funds
(With summarized financial information at June 30, 2023)
June 30, 2024
96
Woodland
Buildings Acres Street Trinity Islands Commercial Opioid
and Light Service Street Light Tourism Passenger Mission Lake Class Action Totals
Assets Land Sales Grounds Area Service Area Development Vessel Tide Gate Settlement 2024 2023
Equity in central treasury $1,409,027 1,191,898 22,320 33,793 112,799 78,097 65,497 89,380 6,634,220 5,516,361
Receivables:
Property taxes, net — — 14 — — — — — 20,427 20,074
Land sales contracts, due within one year 12,003 — — — — — — — 12,003 12,075
Accounts and other receivables, net 4,936 7,318 — — 22,260 — — — 34,514 33,409
Prepaid items — — — — — — — — 2,569 1,745
Due from other funds — 4,437 — — 366 — — — 4,833 —
Land sale contracts, due after one year 16,693 — — — — — — — 16,693 27,905
Total assets $1,442,659 1,203,653 22,334 33,793 135,425 78,097 65,497 89,380 6,725,259 5,611,569
Liabilities:
Accounts payable $— 21,078 528 120 — — — — 92,804 142,412
Customer deposits — — — — — — — — 1,450 3,348
Due to other funds — — — — — — — — 19,466 —
Unearned revenues 1,000 — — — — — — — 49,300 29,600
Total liabilities 1,000 21,078 528 120 — — — — 163,020 175,360
Deferred inflows of resources -
Unavailable revenues 28,696 — 14 — — — — — 48,858 58,042
Total liabilities and deferred
inflows of resources 29,696 21,078 542 120 — — — — 211,878 233,402
Fund balances:
Nonspendable — — — — — — — — 2,569 1,745
Restricted — — — — — 78,097 — — 78,097 54,247
Committed 1,412,963 1,182,575 21,792 33,673 135,425 — 65,497 89,380 6,448,725 5,329,401
Unassigned — — — — — — — — (16,010) (7,226)
Total fund balances 1,412,963 1,182,575 21,792 33,673 135,425 78,097 65,497 89,380 6,513,381 5,378,167
Total liabilities, deferred inflows of
resources and fund balances $1,442,659 1,203,653 22,334 33,793 135,425 78,097 65,497 89,380 6,725,259 5,611,569
Liabilities, Deferred Inflows of Resources,
and Fund Balances
June 30, 2024
(With summarized financial information at June 30, 2023)
Street Lighting Districts
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Combining Balance Sheet, (continued)
97
State Grant
Fire Program
Fire Women's Kodiak Monashka Women's
Protection Bay Fire Airport Fire Bay Road Service Bay Road Bay View Road Service
Area No. 1 Department District Service Area Area No. 1 Service Area Service Area Area No. 2 L.E.P.C.
Revenues:
Property taxes and assessments $ 706,693 121,585 20,783 59,145 483,167 233,911 16,768 — —
Transient accommodations tax — — — — — — — — —
Intergovernmental:
State sources 3,208 — — — — — — — —
Federal sources 6,975 6,067 — — — — — — —
Charges for services — 20,252 — — — — — — —
Licenses, permits and fees — — — — — 47,150 — — —
Investment income 65,590 52,157 3,272 16,980 81,886 5,579 2,779 377 —
Rentals — 15,600 — — — — — — —
Land sales — — — — — — — — —
Other 542 — — — 392 — — — —
Total revenues 783,008 215,661 24,055 76,125 565,445 286,640 19,547 377 —
Expenditures:
Current:
General government — — — — — — — — —
Public safety 498,985 73,490 20,358 — — — — — —
Community and economic
development — — — — — — — — —
Service district maintenance — — — 26,484 287,650 295,424 8,694 — —
Capital outlay - general 261,264 — — — — — — — —
Total expenditures 760,249 73,490 20,358 26,484 287,650 295,424 8,694 — —
Excess (deficiency) of revenues
over expenditures 22,759 142,171 3,697 49,641 277,795 (8,784) 10,853 377 —
Other financing sources (uses):
Proceeds from sale of capital assets — — — — — — — — —
Transfers in — — — — — — — — —
Transfers out — — — — — — — — —
Net other financing sources (uses) — — — — — — — — —
Change in fund balances 22,759 142,171 3,697 49,641 277,795 (8,784) 10,853 377 —
Fund balances (deficit), at beginning of year 925,814 745,547 52,328 232,895 984,262 (7,226) 32,963 6,063 22,824
Fund balances (deficit), at end of year $948,573 887,718 56,025 282,536 1,262,057 (16,010) 43,816 6,440 22,824
(continued)
Fire and Road Service Areas
Road
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances (Deficit)
Year ended June 30, 2024
(With summarized financial information for the year ended June 30, 2023)
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
98
Buildings Woodland Acres Trinity Islands Commercial Opioid
and Street Light Street Light Tourism Passenger Mission Lake Class Action Totals
Land Sales Grounds Service Area Service Area Development Vessel Tide Gate Settlement 2024 2023
Revenues:
Property taxes and assessments $ — — 6,247 2,110 — — 1,652 — 1,652,061 1,583,789
Transient accommodations tax — — — — 99,210 — — — 99,210 122,016
Intergovernmental:
State sources — 2,028 — — — 20,112 — — 25,348 10,815
Federal sources — — — — — — — — 13,042 —
Charges for services 4,836 914,132 — — — — — — 939,220 839,169
Licenses, permits and fees 8,400 — — — — — — — 55,550 37,200
Investment income 83,554 58,916 1,419 2,002 7,174 3,738 3,824 3,648 392,895 70,313
Rentals — — — — — — — — 15,600 15,100
Land sales 14,740 — — — — — — — 14,740 15,540
Other 105 120 — — — — — 43,081 44,240 36,565
Total revenues 111,635 975,196 7,666 4,112 106,384 23,850 5,476 46,729 3,251,906 2,730,507
Expenditures:
Current:
General government 40,806 514,313 5,868 1,420 — — — — 562,407 677,435
Public safety — — — — — — — — 592,833 574,875
Community and economic
development — — — — 86,844 — — — 86,844 105,886
Service district maintenance — — — — — — 92 — 618,344 700,146
Capital outlay - general — — — — — — — — 261,264 2,000
Total expenditures 40,806 514,313 5,868 1,420 86,844 — 92 — 2,121,692 2,060,342
Excess (deficiency) of revenues
over expenditures 70,829 460,883 1,798 2,692 19,540 23,850 5,384 46,729 1,130,214 670,165
Other financing sources (uses):
Proceeds from sale of capital assets — — — — — — — — — 11,157
Transfers in — 5,000 — — — — — — 5,000 —
Transfers out — — — — — — — — — (200,000)
Net other financing sources (uses) — 5,000 — — — — — — 5,000 (188,843)
Change in fund balances 70,829 465,883 1,798 2,692 19,540 23,850 5,384 46,729 1,135,214 481,322
Fund balances (deficit), at beginning of year 1,342,134 716,692 19,994 30,981 115,885 54,247 60,113 42,651 5,378,167 4,896,845
Fund balances (deficit), at end of year $1,412,963 1,182,575 21,792 33,673 135,425 78,097 65,497 89,380 6,513,381 5,378,167
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Street Lighting Districts
Combining Statement of Revenues, Expenditures,
Year ended June 30, 2024
and Changes in Fund Balances (Deficit), (continued)
(With summarized financial information for the year ended June 30, 2023)
99
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Fire Protection Area No. 1
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 687,000 706,693 19,693 680,148
Intergovernmental:
State sources - PERS on-behalf payment 5,000 3,208 (1,792) 2,133
Federal sources — 6,975 6,975 —
Investment income 5,000 65,590 60,590 18,218
Other 4,000 542 (3,458) 1,104
Total revenues 701,000 783,008 82,008 701,603
Expenditures:
Public safety:
Personnel 102,500 116,047 (13,547) 92,412
Volunteers 55,000 76,871 (21,871) 26,154
Fringe benefits 61,623 75,909 (14,286) 59,243
Professional services 17,500 17,458 42 14,180
Support goods and services 232,214 197,811 34,403 121,403
Repairs and maintenance 18,000 14,889 3,111 12,041
Total public safety 486,837 498,985 (12,148) 325,433
Capital outlay - general 625,000 261,264 363,736 2,000
Total expenditures 1,111,837 760,249 351,588 327,433
Excess (deficiency) of revenues
over expenditures (410,837) 22,759 433,596 374,170
Other financing sources (uses):
Proceeds from sale of capital assets — — — 11,157
Transfers out - Other Capital Projects
Capital Project Fund — — — (100,000)
Net other financing sources (uses) — — — (88,843)
Change in fund balance $ (410,837) 22,759 433,596 285,327
Fund balance, at beginning of year 925,814 640,487
Fund balance, at end of year $ 948,573 925,814
2024
100
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Womens Bay Fire Department
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 110,500 121,585 11,085 118,743
Intergovernmental - federal sources — 6,067 6,067 —
Charges for services 16,000 20,252 4,252 20,025
Investment income 2,000 52,157 50,157 9,774
Rentals 15,600 15,600 — 15,100
Other — — — 200
Total revenues 144,100 215,661 71,561 163,842
Expenditures:
Public safety:
Personnel services 2,500 5,733 (3,233) 1,863
Fringe benefits 2,350 940 1,410 371
Professional services 11,000 5,937 5,063 5,647
Support goods and services 122,250 47,736 74,514 215,152
Repairs and maintenance 56,000 13,144 42,856 6,295
Total public safety 194,100 73,490 120,610 229,328
Excess (deficiency) of revenues
over expenditures $(50,000) 142,171 192,171 (65,486)
Fund balance, at beginning of year 745,547 811,033
Fund balance, at end of year $ 887,718 745,547
2024
101
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Kodiak Airport Fire District
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
2024
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 20,000 20,783 783 20,162
Investment income — 3,272 3,272 155
Total revenues 20,000 24,055 4,055 20,317
Expenditures:
Public safety:
Professional services 19,900 20,252 (352) 20,027
Support goods and services 100 106 (6) 87
Total expenditures 20,000 20,358 (358) 20,114
Excess of revenues
over expenditures $— 3,697 3,697 203
Fund balance, at beginning of year 52,328 52,125
Fund balance, at end of year $ 56,025 52,328
102
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Monashka Bay Road Service Area
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
2024
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 53,230 59,145 5,915 54,451
Investment income — 16,980 16,980 2,812
Total revenues 53,230 76,125 22,895 57,263
Expenditures:
Service district maintenance:
Personnel services 400 38 362 58
Fringe benefits — 13 (13) 16
Support goods and services 2,830 145 2,685 182
Snow removal/sanding 20,000 14,391 5,609 13,622
Road grading/ditching 10,000 11,761 (1,761) —
Repairs and maintenance 20,000 136 19,864 11,678
Total expenditures 53,230 26,484 26,746 25,556
Excess of revenues
over expenditures $— 49,641 49,641 31,707
Fund balance, at beginning of year 232,895 201,188
Fund balance, at end of year $ 282,536 232,895
103
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Service Area No. 1
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2024
2024
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 452,000 483,167 31,167 457,169
Investment income — 81,886 81,886 11,851
Other — 392 392 280
Total revenues 452,000 565,445 113,445 469,300
Expenditures:
Service district maintenance:
Personnel services 8,800 5,184 3,616 5,264
Fringe benefits 2,350 719 1,631 1,009
Support goods and services 15,850 6,373 9,477 851
Snow removal/sanding 200,000 165,248 34,752 193,229
Road grading/ditching 60,000 14,339 45,661 51,268
Repairs and maintenance 165,000 95,787 69,213 123,113
Total expenditures 452,000 287,650 164,350 374,734
Excess of revenues
over expenditures $— 277,795 277,795 94,566
Fund balance, at beginning of year 984,262 889,696
Fund balance, at end of year $ 1,262,057 984,262
(With financial information for the year ended June 30, 2023)
104
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Womens Bay Road Service Area
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
2024
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $225,000 233,911 8,911 228,071
Licenses, permits and fees 27,600 47,150 19,550 27,600
Investment income — 5,579 5,579 1,371
Total revenues 252,600 286,640 34,040 257,042
Expenditures:
Service district maintenance:
Personnel services 500 91 409 89
Fringe benefits — 27 (27) 26
Support goods and services 22,100 330 21,770 401
Snow removal/sanding 70,000 68,775 1,225 67,717
Road grading/ditching 50,000 29,301 20,699 30,815
Repairs and maintenance 110,000 196,900 (86,900) 164,236
Total expenditures 252,600 295,424 (42,824) 263,284
Excess (deficiency) of revenues
over expenditures $— (8,784) (8,784) (6,242)
Fund balance (deficit), at beginning of year (7,226) (984)
Fund balance (deficit), at end of year $ (16,010) (7,226)
Schedule of Revenues, Expenditures, and Changes in Fund Balance (Deficit)
105
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Bay View Road Service Area
Schedule of Revenues, Expenditures, and Changes in Fund
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
2024
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $14,500 16,768 2,268 15,612
Investment income — 2,779 2,779 275
Total revenues 14,500 19,547 5,047 15,887
Expenditures:
Service district maintenance:
Personnel services — — — 83
Fringe benefits — — — 65
Professional services — — — 55
Support goods and services — 104 (104) 83
Snow removal/sanding 3,000 6,458 (3,458) 6,313
Road grading/ditching 2,700 1,820 880 1,235
Repairs and maintenance 8,800 312 8,488 27,862
Total expenditures 14,500 8,694 5,806 35,696
Excess (deficiency) of revenues
over expenditures $— 10,853 10,853 (19,809)
Fund balance, at beginning of year 32,963 52,772
Fund balance, at end of year $ 43,816 32,963
106
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Service Area No. 2
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
2024
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Revenues:
Investment income $— 377 377 60
Expenditures — — — —
Excess of revenues
over expenditures $— 377 377 60
Fund balance, at beginning of year 6,063 6,003
Fund balance, at end of year $ 6,440 6,063
107
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
2024
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Revenues — — — —
Expenditures:
Public safety:
Support goods and services 1,000 — 1,000 —
Excess (deficiency) of revenues
over expenditures $(1,000) — 1,000 —
Fund balance, at beginning of year 22,824 22,824
Fund balance, at end of year $ 22,824 22,824
L.E.P.C.
108
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Land Sales
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
2024
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Revenues:
Charges for services $30,000 4,836 (25,164) 2,357
Licenses, permits and fees 6,000 8,400 2,400 9,600
Investment income — 83,554 83,554 13,191
Land sales 15,540 14,740 (800) 15,540
Other — 105 105 100
Total revenues 51,540 111,635 60,095 40,788
Expenditures:
General government:
Personnel services 1,000 1,000 — 1,145
Fringe benefits — — — 49
Professional services — 27,630 (27,630) 6,830
Support goods and services 50,540 12,176 38,364 11,605
Total expenditures 51,540 40,806 10,734 19,629
Excess (deficiency) of revenues
over expenditures $— 70,829 70,829 21,159
Fund balance, at beginning of year 1,342,134 1,320,975
Fund balance, at end of year $ 1,412,963 1,342,134
109
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Buildings and Grounds
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
2024
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Revenues:
Intergovernmental:
State sources - PERS on-behalf payment $— 2,028 2,028 1,937
Charges for services 931,776 914,132 (17,644) 816,787
Investment income — 58,916 58,916 8,094
Other — 120 120 120
Total revenues 931,776 975,196 43,420 826,938
Expenditures:
General government:
School buildings — 17,808 (17,808) 186,536
Borough building 776,616 386,407 390,209 384,359
Mental health center 50,000 53,394 (3,394) 55,521
Various borough buildings 110,160 56,704 53,456 24,336
Total expenditures 936,776 514,313 422,463 650,752
Excess (deficiency) of revenues
over expenditures (5,000) 460,883 465,883 176,186
Other financing sources (uses):
Transfers in:
Facilities Special Revenue Fund 5,000 5,000 — —
Transfers out:
Borough Capital Projects
Capital Project Fund — — — (45,000)
Renewal and Replacement Projects
Capital Project Fund — — — (55,000)
Net other financing sources (uses) 5,000 5,000 — (100,000)
Change in fund balance $ — 465,883 465,883 76,186
Fund balance, at beginning of year 716,692 640,506
Fund balance, at end of year $ 1,182,575 716,692
110
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Woodland Acres Street Light Service Area
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2024
2024
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 5,800 6,247 447 5,844
Investment income 150 1,419 1,269 240
Total revenues 5,950 7,666 1,716 6,084
Expenditures:
General government -
Support goods and services 5,950 5,868 82 5,659
Excess of revenues
over expenditures $— 1,798 1,798 425
Fund balance, at beginning of year 19,994 19,569
Fund balance, at end of year $ 21,792 19,994
(With financial information for the year ended June 30, 2023)
111
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Trinity Islands Street Light Service Area
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
2024
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 1,900 2,110 210 1,988
Investment income — 2,002 2,002 323
Total revenues 1,900 4,112 2,212 2,311
Expenditures:
General government -
Support goods and services 1,900 1,420 480 1,395
Excess of revenues
over expenditures $— 2,692 2,692 916
Fund balance, at beginning of year 30,981 30,065
Fund balance, at end of year $ 33,673 30,981
112
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Tourism Development
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
2024
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Revenues:
Transient accommodations tax $ 90,000 99,210 9,210 122,016
Investment income — 7,174 7,174 1,544
Total revenues 90,000 106,384 16,384 123,560
Expenditures:
Community and economic development:
Personnel services — 6,813 (6,813) 20,417
Fringe benefits — 4,858 (4,858) 9,472
Contributions 75,000 75,000 — 75,000
Support goods and services 15,000 173 14,827 927
Total expenditures 90,000 86,844 3,156 105,816
Excess of revenues
over expenditures $— 19,540 19,540 17,744
Fund balance, at beginning of year 115,885 98,141
Fund balance, at end of year $ 135,425 115,885
113
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Commercial Passenger Vessel
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
2024
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Revenues:
Intergovernmental - State sources -
Commercial passenger vessel tax $ — 20,112 20,112 6,745
Investment income — 3,738 3,738 562
Total revenues — 23,850 23,850 7,307
Expenditures:
Community and economic development -
Support goods and services — — — 70
Excess of revenues
over expenditures $— 23,850 23,850 7,237
Fund balance, at beginning of year 54,247 47,010
Fund balance, at end of year $ 78,097 54,247
114
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Mission Lake Tide Gate
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
2024
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 1,700 1,652 (48) 1,601
Investment income 500 3,824 3,324 609
Total revenues 2,200 5,476 3,276 2,210
Expenditures:
Service district maintenance:
Personnel services 300 — 300 402
Fringe benefits 280 — 280 280
Support goods and services 205 92 113 74
Professional services — — — 120
Repairs and maintenance 1,415 — 1,415 —
Total expenditures 2,200 92 2,108 876
Excess of revenues
over expenditures $— 5,384 5,384 1,334
Fund balance, at beginning of year 60,113 58,779
Fund balance, at end of year $ 65,497 60,113
115
KODIAK ISLAND BOROUGH
Opioid Class Action Settlement
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
2024
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Revenues:
Investment income $ — 3,648 3,648 1,234
Other income — 43,081 43,081 34,761
Total revenues — 46,729 46,729 35,995
Expenditures — — — —
Excess of revenues
over expenditures $— 46,729 46,729 35,995
Fund balance, at beginning of year 42,651 6,656
Fund balance, at end of year $ 89,380 42,651
Nonmajor Special Revenue Funds
116
NONMAJOR CAPITAL PROJECT FUNDS
The Borough Capital Projects Fund accounts for capital improvement projects
related to various financing sources.
The School Bond Capital Projects Fund accounts for educational related capital
projects funded by general obligation bonds which will be paid for with property taxes
and State of Alaska grants.
The Kodiak High School Renovation Fund accounts for the construction and major
maintenance activities for the Borough’s educational facilities funded by bonds, which
will be paid for with property taxes and various grants.
The Renewal and Replacement Projects Fund accounts for renewal and replacement
projects which will be paid for with property taxes and other various financing sources.
The School Renewal and Replacement Facilities Bond Projects Fund accounts for
construction and maintenance for the Borough’s educational facilities funded by
bonds, which will be paid for with property taxes and various grants.
The Other Capital Projects Fund accounts for capital improvement projects related
to various financing sources.
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Funds
Combining Balance Sheet
June 30, 2024
School Renewal
Borough School Bond Kodiak High Renewal and and Replacement Other
Capital Capital School Replacement Facilities Bond Capital
Assets Projects Projects Renovation Projects Projects Projects 2024 2023
Equity in central treasury $694,201 119,475 742,275 9,471,796 573,645 2,074,746 13,676,138 12,786,824
Receivables:
Federal government 743 — — — — — 743 5,184
Property taxes, net — — — 17,240 — — 17,240 8,350
Total $ 694,944 119,475 742,275 9,489,036 573,645 2,074,746 13,694,121 12,800,358
Liabilities and Fund Balances
Liabilities -
Accounts payable $18,938 — — 13,454 — — 32,392 272,166
Deferred inflows of resources -
Unavailable revenues — — — 16,542 — — 16,542 7,490
Total liabilities and deferred
inflows of resources 18,938 — — 29,996 — — 48,934 279,656
Fund balances -
Assigned 676,006 119,475 742,275 9,459,040 573,645 2,074,746 13,645,187 12,520,702
Total liabilities, deferred inflows
of resources and fund balances $ 694,944 119,475 742,275 9,489,036 573,645 2,074,746 13,694,121 12,800,358
Totals
(With summarized financial information at June 30, 2023)
117
Year ended June 30, 2024
School Renewal
Borough School Bond Kodiak High Renewal and and Replacement Other
Capital Capital School Replacement Facilities Bond Capital
Projects Projects Renovation Projects Projects Projects 2024 2023
Revenues:
Property taxes and assessments $— — — 1,674,614 — — 1,674,614 497,903
Intergovernmental -
Federal sources 743 — — — — — 743 5,335
Investment income — 49,147 — — — — 49,147 32,609
Other — — — 430 — — 430 676,748
Total revenues 743 49,147 — 1,675,044 — — 1,724,934 1,212,595
Expenditures:
Capital outlay:
Schools — — — — 424,142 — 424,142 461,278
General 104,758 — — 915,117 — 1,432 1,021,307 684,810
Total expenditures 104,758 — — 915,117 424,142 1,432 1,445,449 1,146,088
Excess (deficiency) of revenues
over expenditures (104,015) 49,147 — 759,927 (424,142) (1,432) 279,485 66,507
Other financing sources (uses):
Transfers in — — — 845,000 — — 845,000 4,352,343
Transfers out — — — — — — — (105,041)
Net other financing sources (uses)— — — 845,000 — — 845,000 4,247,302
Change in fund balances (104,015) 49,147 — 1,604,927 (424,142) (1,432) 1,124,485 4,313,809
Fund balances, at beginning of year 780,021 70,328 742,275 7,854,113 997,787 2,076,178 12,520,702 8,206,893
Fund balances, at end of year $ 676,006 119,475 742,275 9,459,040 573,645 2,074,746 13,645,187 12,520,702
Totals
(With summarized financial information for the year ended June 30, 2023)
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Capital Project Funds
KODIAK ISLAND BOROUGH
118
ENTERPRISE FUNDS
The Municipal Solid Waste Collection and Disposal Fund accounts for the
collection and disposal of solid waste and recycling services for the Kodiak Island
Borough.
The Hospital Facilities Fund accounts for rents on the Borough-owned hospital and
makes debt service payment on hospital related debt.
The Long Term Care Center Fund accounts for rents on the Borough-owned long
term care center and other related revenue. In turn, it makes debt service payments on
the long term care center related debt.
The Kodiak Fisheries Research Center Fund accounts for rents and expenses on the
Borough-owned Kodiak Fisheries Research Center. This facility, which contains salt-
water lab facilities, and its tenants are committed to the preservation of the North
Pacific marine ecosystem and resources.
The 911 Service Fund accounts for the collection and payment of a surcharge on
phone lines which is passed through to the City of Kodiak for a 911 emergency system.
The Research Court Apartments Fund accounts for rents on the Borough-owened
apartments on Near Island located on Research Court.
Research
911 Court Totals
Service Apartments 2024 2023
Current assets:
Equity in central treasury $82,704 186,652 269,356 220,863
Customer receivables 39,898 — 39,898 38,606
Due from other funds — 88 88 —
Total current assets 122,602 186,740 309,342 259,469
Capital assets:
Depreciable, net — 170,333 170,333 204,399
Total assets $122,602 357,073 479,675 463,868
Current liabilities:
Accounts payable $ 122,602 2,300 124,902 124,388
Customer deposits — 7,653 7,653 7,653
Unearned revenues — 4,901 4,901 6,400
Total current liabilities 122,602 14,854 137,456 138,441
Net position:
Net investment in capital assets — 170,333 170,333 204,399
Unrestricted — 171,886 171,886 121,028
Total net position — 342,219 342,219 325,427
Total liabilities and net position $122,602 357,073 479,675 463,868
Assets
Liabilities and Net Position
KODIAK ISLAND BOROUGH
Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2024
(With summarized financial information for June 30, 2023)
119
KODIAK ISLAND BOROUGH
Year ended June 30, 2024
(With summarized financial information for the year ended June 30, 2023)
Research
911 Court Totals
Service Apartments 2024 2023
Operating revenues:
Charges for services -
Lease income $ — 89,280 89,280 94,755
Other 322,004 200 322,204 325,981
Total operating revenues 322,004 89,480 411,484 420,736
Operating expenses:
Personnel services 1,500 6,805 8,305 7,593
Maintenance and repairs — 631 631 659
Depreciation — 34,066 34,066 34,067
General and administration — 34,259 34,259 33,042
Miscellaneous — 6,632 6,632 5,362
Telephone services 320,504 — 320,504 324,202
Total operating expenses 322,004 82,393 404,397 404,925
Operating income (loss) — 7,087 7,087 15,811
Nonoperating revenues -
Investment income — 9,705 9,705 2,027
Change in net position — 16,792 16,792 17,838
Net position, at beginning of year — 325,427 325,427 307,589
Net position, at end of year $— 342,219 342,219 325,427
Nonmajor Enterprise Funds
Combining Statement of Revenues, Expenses, and Changes in Net Position
120
Research
911 Court Totals
Service Apartments 2024 2023
Cash flows from operating activities:
Cash received from customers $320,712 87,981 408,693 426,303
Payments to suppliers (318,314) (43,198) (361,512) (357,384)
Payments to employees (1,500) (6,805) (8,305) (7,593)
Net cash provided by
operating activities 898 37,978 38,876 61,326
Cash flows from noncapital financing activities:
Net change in interfund receivable/payable — (88) (88) —
Cash flows from investing activities:
Interest and dividends received — 9,705 9,705 2,027
Net change in cash and
cash equivalents 898 47,595 48,493 63,353
Cash and equivalents, at beginning of year 81,806 139,057 220,863 157,510
Cash and equivalents, at end of year $ 82,704 186,652 269,356 220,863
Reconciliation of operating income (loss) to net
cash provided by operating activities:
Operating income (loss)$— 7,087 7,087 15,811
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation — 34,066 34,066 34,067
Changes in assets and liabilities that
provided (used) cash:
(Increase) decrease in assets:
Customer receivables (1,292) — (1,292) (833)
Increase (decrease) in liabilities:
Accounts payable 2,190 (1,676) 514 5,881
Unearned revenues — (1,499) (1,499) 6,400
Net cash provided by
operating activities $ 898 37,978 38,876 61,326
KODIAK ISLAND BOROUGH
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
Year ended June 30, 2024
(With summarized financial information for the year ended June 30, 2023)
121
KODIAK ISLAND BOROUGH
Municipal Solid Waste Collection and Disposal
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Operating revenues:
Solid waste disposal $4,079,000 4,160,924 81,924 4,120,050
Other 34,000 17,750 (16,250) 14,102
Total operating revenues 4,113,000 4,178,674 65,674 4,134,152
Operating expenses:
Personnel services 1,381,267 1,230,749 150,518 1,323,342
Contracted services 530,000 334,186 195,814 292,008
Maintenance, repairs and equipment 752,500 145,495 607,005 277,754
Depreciation 294,617 1,241,939 (947,322) 235,004
General and administration 642,732 781,331 (138,599) 405,399
Recycling services 300,000 333,936 (33,936) 330,396
Closure and postclosure costs (reduction)— 598,921 (598,921) (377,580)
Contributions 180,000 177,023 2,977 169,935
Total operating expenses 4,081,116 4,843,580 (762,464) 2,656,258
Operating income (loss)31,884 (664,906) (696,790) 1,477,894
Nonoperating revenue (expense):
Intergovernmental:
State of Alaska - PERS on-behalf payment 21,684 11,535 (10,149) (20,914)
Investment income (loss)160,000 50,673 (109,327) (26,417)
Interest expense (213,568) (177,424) 36,144 (174,539)
Total nonoperating revenue (expense)(31,884) (115,216) (83,332) (221,870)
Change in net position $ — (780,122) (780,122) 1,256,024
Net position, at beginning of year 20,726,277 19,470,253
Net position, at end of year $ 19,946,155 20,726,277
Enterprise Funds
2024
122
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Operating revenues:
Lease income $1,384,272 1,170,808 (213,464) 1,170,808
Interest revenue — 224,107 224,107 280,574
Other revenue — 142,896 142,896 —
Total operating revenue 1,384,272 1,537,811 153,539 1,451,382
Operating expenses:
Personnel services 40,319 44,082 (3,763) 44,026
Contracted services — 495 (495) —
Maintenance and repairs 368,861 194,469 174,392 266
Depreciation 1,060,092 1,079,523 (19,431) 1,326,227
Miscellaneous — — — 4,200
Total operating expenses 1,469,272 1,318,569 150,703 1,374,719
Operating income (loss)(85,000) 219,242 304,242 76,663
Nonoperating revenue -
Investment income 85,000 406,970 321,970 61,084
Change in net position $— 626,212 626,212 137,747
Net position, at beginning of year 17,119,561 16,981,814
Net position, at end of year $ 17,745,773 17,119,561
KODIAK ISLAND BOROUGH
Enterprise Funds
2024
Hospital Facilities
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
123
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Operating revenues:
Lease income $1,043,628 765,187 (278,441) 765,187
Interest revenue — 403,291 403,291 434,457
Other — 227,827 227,827 —
Total operating revenues 1,043,628 1,396,305 352,677 1,199,644
Operating expenses:
Personnel services — 848 (848) 1,832
Contracted services 12,500 460 12,040 4,856
Maintenance and repairs — — — —
Depreciation 518,933 518,933 — 518,933
General and administration 464,564 21,474 443,090 35,774
Miscellaneous — 5,307 (5,307) —
Total operating expenses 995,997 547,022 448,975 561,395
Operating income (loss)47,631 849,283 801,652 638,249
Nonoperating revenue (expense):
Investment income 70,000 211,129 141,129 66,264
Interest revenue (expense)(117,631) (117,367) 264 52,777
Total nonoperating revenue (expense)(47,631) 93,762 141,393 119,041
Change in net position $— 943,045 943,045 757,290
Net position, at beginning of year 8,141,549 7,384,259
Net position, at end of year $ 9,084,594 8,141,549
KODIAK ISLAND BOROUGH
2024
Year ended June 30, 2024
Budget and Actual
Changes in Net Position
Schedule of Revenues, Expenses, and
Long Term Care Center
Enterprise Funds
(With financial information for the year ended June 30, 2023)
124
KODIAK ISLAND BOROUGH
Kodiak Fisheries Research Center
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Operating revenues:
Lease income $710,385 719,176 8,791 566,318
Interest revenue 28,586 352,910 324,324 360,971
Total operating revenues 738,971 1,072,086 333,115 927,289
Operating expenses:
Personnel services 217,518 93,318 124,200 168,922
Maintenance and repairs 25,000 10,369 14,631 32,639
Depreciation 697,000 719,870 (22,870) 719,871
General and administration:
Support goods and services 41,300 16,603 24,697 12,399
Cleaning and janitorial 75,000 46,670 28,330 47,500
Heating 50,000 114,525 (64,525) 18,989
Electrical 240,000 120,829 119,171 179,550
Plumbing 98,000 68,631 29,369 106,232
Air conditioning 15,000 7,853 7,147 2,115
Elevators 10,000 2,806 7,194 2,435
Miscellaneous 106,483 68,193 38,290 64,237
Total operating expenses 1,575,301 1,269,667 305,634 1,354,889
Operating income (loss) (836,330) (197,581) 27,481 (427,600)
Nonoperating revenue (expense):
Intergovernmental -
State of Alaska - PERS on-behalf payment 3,015 2,212 (803) (7,339)
Investment income — 166,416 166,416 23,524
Total nonoperating revenue (expense)3,015 168,628 165,613 16,185
Change in net position $ (833,315) (28,953) 804,362 (411,415)
Net position, at beginning of year 9,373,095 9,784,510
Net position, at end of year $ 9,344,142 9,373,095
Enterprise Funds
2024
125
KODIAK ISLAND BOROUGH
Enterprise Funds
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Operating revenues -
Other $300,000 322,004 22,004 325,981
Operating expenses:
Personnel services 1,500 1,500 — 1,500
General and administration — — — 332
Telephone services 298,500 320,504 (22,004) 324,202
Total operating expenses 300,000 322,004 (22,004) 326,034
Operating income (loss)$— — — (53)
Net position, at beginning of year — 53
Net position, at end of year $ — —
2024
911 Service Fund
126
KODIAK ISLAND BOROUGH
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2024
(With financial information for the year ended June 30, 2023)
Variance with
Final Budget
Final Positive 2023
Budget Actual (Negative)Actual
Operating revenues:
Lease income $ 91,830 89,280 (2,550) 94,755
Other — 200 200 —
Total operating revenues 91,830 89,480 (2,350) 94,755
Operating expenses:
Personnel services 13,698 6,805 6,893 6,093
Maintenance and repairs 5,000 631 4,369 659
Depreciation 34,067 34,066 1 34,067
General and administration:
Support goods and services 4,320 2,068 2,252 (106)
Contracted services 10,000 4,348 5,652 5,793
Heating 20,000 13,604 6,396 12,785
Air conditioning — 51 (51) —
Electrical 11,000 5,593 5,407 5,402
Plumbing 15,500 8,595 6,905 8,836
Miscellaneous 4,700 6,632 (1,932) 5,362
Total operating expenses 118,285 82,393 35,892 78,891
Operating income (loss) (26,455) 7,087 33,542 15,864
Nonoperating revenue -
Investment income 2,400 9,705 7,305 2,027
Change in net position $(24,055) 16,792 40,847 17,891
Net position, at beginning of year 325,427 307,536
Net position, at end of year $ 342,219 325,427
Enterprise Funds
2024
Research Court Apartments
127
SUPPLEMENTARY SCHEDULES
Fiscal Year Principal Interest Total
2025 6,420,000 1,138,811 7,558,811
2026 5,230,000 959,870 6,189,870
2027 4,450,000 828,058 5,278,058
2028 4,565,000 707,672 5,272,672
2029 4,060,000 589,902 4,649,902
2030 4,115,000 478,830 4,593,830
2031 4,230,000 362,743 4,592,743
2032 3,545,000 259,950 3,804,950
2033 3,635,000 168,674 3,803,674
2034 2,175,000 89,417 2,264,417
2035 580,000 43,323 623,323
2036 610,000 14,713 624,713
43,615,000$ 5,641,963$ 49,256,963$
SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS TO MATURITY
KODIAK ISLAND BOROUGH
June 30, 2024
Annual principal and interest requirements on General Obligation Bonds.
128
Refunding bond - 2021 Series One
Fiscal year Interest rate
Interest due
December 01
Principal due
December 01
Interest due
June 01 Total
2025 5.00%76,125$ 375,000$ 66,750$ 517,875$
2026 5.00%66,750 395,000 56,875 518,625
2027 5.00%56,875 410,000 46,625 513,500
2028 5.00%46,625 430,000 35,875 512,500
2029 5.00%35,875 450,000 24,625 510,500
2030 5.00%24,625 480,000 12,625 517,250
2031 5.00%12,625 505,000 - 517,625
319,500$ 3,045,000$ 243,375$ 3,607,875$
The 2021 Series One General Obligation School Bonds were issued to refund (refinance) the 2011 Series One General
Obligation School Bonds that were issued to provide funds for school and related capital improvements in the Borough,
specifically to provide a portion of the funds needed for the Kodiak High School Addition and Renovation.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
RETIREMENT SCHEDULE
June 30, 2024
2021 Series One
129
Refunding bond - 2021 Series Two
Fiscal Year Interest Rate
Interest Due
December 01
Principal Due
December 01
Interest due
June 01 Total
2025 0.698%4,799$ 1,375,000$ -$ 1,379,799$
The 2021 Series Two General Obligation School Bonds were issued to refund (refinance) the 2012 Series A and B General
Obligation School Bonds that were issued to refund (refinance) the 2004 Series C and D General Obligation bonds that were
issued to provide funds for school and related capital improvements in the Borough, specifically to fund various school
facility repairs.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
RETIREMENT SCHEDULE
June 30, 2024
2021 Series Two
130
Refunding bond - 2021 Series Three
Fiscal Year Interest Rate
Interest Due
December 01
Principal Due
December 01
Interest due
June 01 Total
2025 0.70%103,402$ 1,330,000$ 98,760$ 1,532,162$
2026 1.03%98,760 1,340,000 91,846 1,530,606
2027 1.18%91,846 1,355,000 83,838 1,530,684
2028 1.53%83,838 1,375,000 73,312 1,532,150
2029 1.73%73,312 1,400,000 61,195 1,534,507
2030 1.97%61,195 1,420,000 47,194 1,528,389
2031 2.02%47,194 1,450,000 32,534 1,529,728
2032 2.12%32,534 1,480,000 16,832 1,529,366
2033 2.22%16,832 1,515,000 - 1,531,832
608,913$ 12,665,000$ 505,511$ 13,779,424$
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
RETIREMENT SCHEDULE
June 30, 2024
The 2013 Series One General Obligation School Bonds were issued to provide funds for school and related capital
improvements in the Borough, specifically to provide a portion of the funds needed for the Kodiak High School Addition and
2013 Renovation. These bonds were refunded (refinanced) in 2021 and are reported as the 2021 Series Three Bonds.
2021 Series Three
131
Unrefunded Portion - 2014 Series One
Fiscal Year
Interest
Rate
Interest Due
September 01
Principal Due
March 01
Interest Due
March 01 Total
2025 3.125% $ 17,344 $ 1,110,000 $ 17,344 $ 1,144,688
Refunding bond - 2021 Series Four
Fiscal Year
Interest
Rate
Interest Due
December 01
Principal Due
December 01
Interest Due
June 01 Total
2025 0.698%123,628$ 250,000$ 122,756$ 496,384$
2026 1.032%122,756 1,410,000 115,480 1,648,236
2027 1.182%115,480 1,420,000 107,088 1,642,568
2028 1.531%107,088 1,440,000 96,065 1,643,153
2029 1.731%96,065 1,465,000 83,385 1,644,450
2030 1.972%83,385 1,490,000 68,694 1,642,079
2031 2.022%68,694 1,520,000 53,327 1,642,021
2032 2.122%53,327 1,560,000 36,775 1,650,102
2033 2.222%36,775 1,590,000 19,110 1,645,885
2034 2.352%19,110 1,625,000 - 1,644,110
826,308$ 13,770,000$ 702,680$ 15,298,988$
The 2014 Series One General Obligation School Bonds were issued to provide funds for school and related capital
improvements in the Borough, specifically to provide a portion of the funds needed for the Kodiak High School Addition
and Renovation. These bonds were refunded (refinanced) in 2021 and are reported as the 2021 Series Four Bonds.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
RETIREMENT SCHEDULE
June 30, 2024
2014 Series One / 2021 Series Four
132
Fiscal Year
Interest
Rate
Interest Due
October 01
Principal Due
October 01
Interest Due
April 01 Total
2025 5.00%111,231$ 275,000$ 104,356$ 490,587$
2026 5.00%104,356 290,000 97,106 491,462
2027 5.00%97,106 305,000 89,481 491,587
2028 5.00%89,481 320,000 81,481 490,962
2029 5.00%81,481 335,000 73,106 489,587
2030 5.00%73,106 355,000 64,231 492,337
2031 4.00%64,231 370,000 56,831 491,062
2032 5.25%56,831 390,000 46,594 493,425
2033 5.25%46,594 410,000 35,831 492,425
2034 5.25%35,831 430,000 24,544 490,375
2035 5.25%24,544 455,000 12,600 492,144
2036 5.25%12,600 480,000 - 492,600
797,392$ 4,415,000$ 686,161$ 5,898,553$
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
RETIREMENT SCHEDULE
June 30, 2024
The 2015 Series Three General Obligation School Bonds were issued to provide funds for school and related capital
improvements in the Borough, specifically to provide a portion of the funds needed for the Kodiak High School
Addition and Renovation.
2015 Series Three
133
Fiscal Year
Interest
Rate
Interest Due
October 01
Principal Due
October 01
Interest Due
April 01 Total
2025 5.00%10,750$ 210,000$ 5,500$ 226,250$
2026 5.00%5,500 220,000 - 225,500
16,250$ 430,000$ 5,500$ 451,750$
The 2015 Series Three General Obligation School Bonds were issued to provide funds for school and related capital
improvements in the Borough, specifically to provide for school facility renewal and replacement needs.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
RETIREMENT SCHEDULE
June 30, 2024
2015 Series Three
134
Fiscal Year
Interest
Rate
Interest Due
August 01
Principal Due
August 01
Interest Due
February 01 Total
2025 5.00%22,209$ 90,000$ 19,959$ 132,168$
2026 5.00%19,959 95,000 17,584 132,543
2027 2.00%17,584 100,000 16,584 134,168
2028 4.00%16,584 100,000 14,584 131,168
2029 4.00%14,584 105,000 12,484 132,068
2030 2.63%12,484 110,000 11,041 133,525
2031 3.00%11,041 110,000 9,391 130,432
2032 3.00%9,391 115,000 7,666 132,057
2033 3.00%7,666 120,000 5,866 133,532
2034 3.00%5,866 120,000 4,066 129,932
2035 3.13%4,066 125,000 2,113 131,179
2036 3.25%2,113 130,000 - 132,113
143,547$ 1,320,000$ 121,338$ 1,584,885$
The 2016 Series One General Obligation School Bonds were issued to provide funds for school and related capital
improvements in the Borough, specifically to provide for the Kodiak High School Addition and Renovation.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2016 Series One
RETIREMENT SCHEDULE
June 30, 2024
135
Fiscal Year
Interest
Rate
Interest Due
August 01
Principal Due
August 01
Interest Due
February 01 Total
2025 5.00%32,250$ 630,000$ 16,500$ 678,750$
2026 5.00%16,500 660,000 - 676,500
48,750$ 1,290,000$ 16,500$ 1,355,250$
The 2016 Series One General Obligation School Bonds were issued to provide funds for school and related capital
improvements in the Borough, specifically to provide for school facility renewal and replacement needs.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2016 Series One
RETIREMENT SCHEDULE
June 30, 2024
136
Fiscal Year
Interest
Rate
Interest Due
December 01
Principal Due
December 01
Interest Due
June 01 Total
2025 5.00%56,250$ 520,000$ 43,250$ 619,500$
2026 5.00%43,250 550,000 29,500 622,750
2027 5.00%29,500 575,000 15,125 619,625
2028 5.00%15,125 605,000 - 620,125
144,125$ 2,250,000$ 87,875$ 2,482,000$
The 2016 Series Three General Obligation School Bonds were issued to refund (refinance) the 2008 Series A General
Obligation Bonds were issued to provide funds for school and related capital improvements in the Borough, specifically the
new school pool facility.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2016 Series Three
RETIREMENT SCHEDULE
June 30, 2024
137
Fiscal Year
Interest
Rate
Interest Due
December 01
Principal Due
December 01
Interest Due
June 01 Total
2025 2.93%4,352$ 55,000$ 3,546$ 62,898$
2026 2.98%3,546 55,000 2,727 61,273
2027 3.01%2,727 60,000 1,824 64,551
2028 3.03%1,824 60,000 915 62,739
2029 3.05%915 60,000 - 60,915
13,364$ 290,000$ 9,012$ 312,376$
The 2018 Series A General Obligation School Bonds were issued to provide funds for school and related capital
improvements in the Borough, specifically to provide a portion of the funds needed for the Kodiak High School Addition and
Renovation.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2018 Series A
RETIREMENT SCHEDULE
June 30, 2024
138
Fiscal Year
Interest
Rate
Interest Due
December 01
Principal Due
December 01
Interest Due
June 01 Total
2025 5.00%6,500$ 30,000$ 5,750$ 42,250$
2026 5.00%5,750 35,000 4,875 45,625
2027 5.00%4,875 35,000 4,000 43,875
2028 5.00%4,000 35,000 3,125 42,125
2029 5.00%3,125 40,000 2,125 45,250
2030 5.00%2,125 40,000 1,125 43,250
2031 5.00%1,125 45,000 - 46,125
27,500$ 260,000$ 21,000$ 308,500$
The 2020 Series One A General Obligation School Bonds were issued to provide funds for school and related capital
improvements in the Borough, specifically to provide for the Kodiak High School Addition and Renovation.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2020 Series One A
RETIREMENT SCHEDULE
June 30, 2024
139
Fiscal Year
Interest
Rate
Interest Due
December 01
Principal Due
December 01
Interest Due
June 01 Total
2025 5.00%34,875$ 170,000$ 30,625$ 235,500$
2026 5.00%30,625 180,000 26,125 236,750
2027 5.00%26,125 190,000 21,375 237,500
2028 5.00%21,375 200,000 16,375 237,750
2029 5.00%16,375 205,000 11,250 232,625
2030 5.00%11,250 220,000 5,750 237,000
2031 5.00%5,750 230,000 - 235,750
146,375$ 1,395,000$ 111,500$ 1,652,875$
The 2020 Series One B General Obligation School Bonds were issued to provide funds for school and related capital
improvements in the Borough, specifically to provide for the Kodiak High School Addition and Renovation.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2020 Series One B
RETIREMENT SCHEDULE
June 30, 2024
140
STATISTICAL SECTION
STATISTICAL SECTION
This part of the Kodiak Island Borough’s annual comprehensive financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the government’s overall financial
health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand
how the government’s financial performance and well-being have changed
over time. 141-145
Revenue Capacity
These schedules contain information to help the reader assess the government’s
most significant local revenue source, the property tax. 146-149
Debt Capacity
These schedules present information to help the reader assess the afford ability
of the government’s current levels of outstanding debt and the gov ernment’s
ability to issue additional debt in the future. 150-154
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the government’s financial
activities take place. 155-161
Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports
for the relevant year.
2015 2016 2017 2018 2019
Governmental activities:
Net investment in capital assets $ 82,616,865 $ 80,747,617 $ 80,857,151 85,569,631 89,375,692
Restricted - - - - -
Unrestricted 43,472,334 47,678,271 48,293,582 46,105,327 50,237,644
Total governmental activities net assets $126,089,199 $128,425,888 $129,150,733 131,674,958 139,613,336
Business-type activities:
Net investment in capital assets $ 43,884,340 $ 37,381,997 $ 40,098,010 39,508,817 39,405,949
Restricted - - - - -
Unrestricted 5,239,974 12,436,280 9,584,434 10,154,986 11,720,431
Total business-type activities net assets $49,124,314 $49,818,277 $49,682,444 49,663,803 51,126,380
Primary government:
Net investment in capital assets $ 126,501,205 $ 118,129,614 $ 120,955,161 125,078,448 128,781,641
Restricted - - - - -
Unrestricted 48,712,308 60,114,551 57,878,016 56,260,313 61,958,075
Total primary government net assets $175,213,513 $178,244,165 $178,833,177 181,338,761 190,739,716
2020 2021 2022 2023 2024
Governmental activities:
Net investment in capital assets $ 89,442,508 $ 86,459,744 88,558,336 89,930,718 93,525,762
Restricted - 153,535 47,010 54,247 1,667,671
Unrestricted 53,408,078 56,917,265 67,107,947 73,971,326 78,825,222
Total governmental activities net assets $142,850,586 $143,530,544 155,713,293 163,956,291 174,018,655
Business-type activities:
Net investment in capital assets $ 39,561,198 $ 39,849,123 43,543,168 45,387,008 43,901,690
Restricted - - - - 568,238
Unrestricted 13,292,418 12,868,067 10,385,257 10,298,901 11,992,955
Total business-type activities net assets $52,853,616 $52,717,190 53,928,425 55,685,909 56,462,883
Primary government:
Net investment in capital assets $ 129,003,706 $ 126,308,867 132,101,504 135,317,726 137,427,452
Restricted - 153,535 47,010 54,247 2,235,909
Unrestricted 66,700,496 69,664,370 77,493,204 84,270,227 90,818,177
Total primary government net assets $195,704,202 $196,126,772 209,641,718 219,642,200 230,481,538
Source: Borough general ledger
Fiscal Year
Fiscal Year
KODIAK ISLAND BOROUGH
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
141
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Expenses
Governmental activities:
General government $ 5,637,239 $ 7,850,988 $ 7,156,087 $ 6,692,530 $ 5,209,588 $ 5,548,287 $ 5,367,775 5,348,834 3,799,341 7,422,565
Public safety 663,145 798,079 1,028,240 1,256,992 936,083 696,481 690,853 710,205 671,936 574,608
Community and economic development 886,613 1,167,367 1,136,303 1,152,197 1,133,265 782,053 779,758 877,503 775,952 846,630
Emergency preparedness 31,628 30,849 35,861 43,038 14,307 4,479 5,257 10,983 16,460 17,810
Health and social welfare 406,093 389,000 233,999 207,500 182,900 157,500 5,257,005 169,647 150,000 158,819
Education, culture, and recreation 335,854 2,996,004 17,562 4,665 70,472 5,790,959 20,397 20,396 20,562 20,265
Parks and recreation 161,596 87,456 30,172 77,186 43,368 32,561 19,560 22,125 12,760 6,167
Service district maintenance 534,376 626,289 475,248 587,707 645,533 786,379 647,976 856,657 700,146 618,344
Primary and secondary education 14,316,695 11,225,022 14,162,868 12,695,233 13,219,790 10,522,515 15,137,964 16,007,893 17,883,044 17,163,738
Interest on long-term debt 3,063,649 3,194,612 3,060,520 2,673,238 2,500,440 2,346,340 1,704,793 751,860 924,391 1,052,310
Total governmental activities expenses 26,036,888 28,365,666 27,336,860 25,390,286 23,955,746 26,667,554 29,631,338 24,776,103 24,954,592 27,881,256
Business-type activities:
Municipal solid waste collection and disposal 2,468,058 4,764,871 3,296,817 3,245,526 3,287,702 2,795,669 3,741,080 3,373,120 2,830,797 5,021,004
Hospital facilities 1,763,636 2,058,690 1,284,657 1,412,150 1,201,971 1,302,517 1,077,905 1,115,737 1,374,719 1,318,569
Long Term Care Center - - 1,128,059 1,008,032 960,008 946,018 1,247,226 670,592 561,395 664,389
Kodiak Fisheries Research Center 1,486,620 1,555,116 1,532,010 1,422,337 1,571,643 1,369,009 1,237,187 1,281,996 1,354,889 1,269,667
911 services 33,961 30,417 28,409 255,617 300,060 336,226 301,032 301,236 326,034 322,004
Research Court Apartments - - - - - - 77,483 82,581 78,891 82,393
Total business-type activities expenses 5,752,275 8,409,094 7,269,952 7,343,662 7,321,384 6,749,439 7,681,913 6,825,262 6,526,725 8,678,026
Total primary government expenses 31,789,163 36,774,760 34,606,812 32,733,948 31,277,130 33,416,993 37,313,251 31,601,365 31,481,317 36,559,282
Program Revenues
Governmental activities:
Charges for services:
General government $ 540,052 $ 682,664 $ 2,874,794 $ 873,043 $ 966,852 $ 1,006,601 $ 942,701 901,717 905,435 1,013,697
Public safety 13,601 16,610 14,716 15,366 16,701 8,734 18,657 16,420 35,125 35,852
Service district maintenance 114,516 66,161 111,146 90,450 27,600 27,600 27,600 27,600 27,600 47,150
Operating grants and contributions 4,305,691 4,813,838 4,226,913 5,614,105 5,611,754 2,577,821 479,124 14,585,488 5,819,357 5,949,468
Capital grants 3,002,933 3,216,270 885,493 96,698 346,427 294,899 137,918 625,925 140,372 1,808,961
Total governmental activities program revenues 7,976,793 8,795,543 8,113,062 6,689,662 6,969,334 3,915,655 1,606,000 16,157,150 6,927,889 8,855,128
Business-type activities:
Charges for services:
Municipal solid waste collection and disposal 2,611,854 2,859,436 3,105,560 3,813,343 4,465,387 4,151,619 4,061,604 4,161,775 4,120,050 4,160,924
Hospital facilities 1,759,789 1,959,827 660,000 1,384,272 1,384,272 1,384,272 1,384,272 1,505,101 1,451,382 1,394,915
Long Term Care Center - - 1,119,929 1,093,475 1,043,628 1,043,628 1,043,628 1,370,840 1,199,644 1,168,478
Kodiak Fisheries Research Center 2,267,032 3,353,718 847,642 818,138 820,167 787,296 499,485 950,570 927,289 1,072,086
911 services - - - - - 49,560 - - - -
Research Court Apartments - - - - - - 70,261 85,518 94,755 89,280
Operating grants and contributions 32,649 428,578 27,799 44,509 27,630 (20,490) 51,958 (37,904) (28,253) 13,747
Capital grants 213,753 11,326 - - - - - - - -
Total business-type activities program revenues 6,885,077 8,612,885 5,760,930 7,153,737 7,741,084 7,395,885 7,111,208 8,035,900 7,764,867 7,899,430
Total primary government program revenues $ 14,861,870 $ 17,408,428 $ 13,873,992 $ 13,843,399 $ 14,710,418 $ 11,311,540 $ 8,717,208 24,193,050 14,692,756 16,754,558
Net(expense)/revenue:
Governmental activities $ (18,060,095) $ (19,570,123) $ (19,223,798) $ (18,700,624) $ (18,700,624) $ (22,751,899) $ (28,025,338) (8,618,953) (18,026,703) (19,026,128)
Business-type activities 1,132,802 203,791 (1,509,022) (189,925) (189,925) 646,446 (570,705) 1,210,638 1,238,142 (778,596)
Total primary government net expense $ (16,927,293) $ (19,366,332) $ (20,732,820) $ (18,890,549) $ (18,890,549) $ (22,105,453) $ (28,596,043) (7,408,315) (16,788,561) (19,804,724)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes:
Property taxes $ 13,741,190 $ 14,414,032 $ 15,714,593 $ 16,045,148 $ 16,660,329 $ 17,228,428 $ 17,449,358 17,607,487 18,130,369 17,793,535
Severance taxes 1,843,819 3,985,978 1,414,557 1,929,409 1,285,669 1,286,750 1,100,413 1,779,042 1,719,343 1,089,780
Tobacco excise taxes - - - 310,482 425,444 389,725 702,142 683,971 829,274 804,223
Unrestricted grants and contributions 4,142,583 27,683 3,631,012 3,414,671 4,265,899 3,371,650 8,747,105 3,167,723 3,892,080 3,996,780
Land sales 864,584 1,586,555 325,793 27,955 19,002 12,140 10,118 4,791 5,448 3,456
Investment earnings 1,106,717 604,274 271,691 281,855 2,196,169 1,454,149 188,577 (2,822,026) 951,821 5,315,474
Other 506,546 403,958 23,306 305,983 117,278 470,560 354,048 534,249 741,366 85,244
Transfers (80,000) (50,228) (1,134,372) (45,000) (45,000) (45,000) - - - -
Transfers - Component Unit - - - - - 1,632,815 - - - -
Extraordinary item - 675,246 - - - - - - - -
Total governmental activities $ 22,125,439 $ 21,647,498 $ 20,246,580 $ 22,270,503 $ 24,924,790 $ 25,801,217 $ 28,551,761 20,955,237 26,269,701 29,088,492
Business-type activities:
Investment earnings 178,851 236,180 177,851 69,871 622,256 443,602 38,817 (836,242) 126,482 844,893
Other 598,162 203,764 115,556 320,774 375,891 592,188 428,009 317,012 392,860 710,677
Transfers 80,000 50,228 1,134,372 45,000 45,000 45,000 - - - -
Extraordinary item - - (54,590) - - - - - - -
Total business-type activities 857,013 490,172 1,373,189 435,645 1,043,147 1,080,790 466,826 (519,230) 519,342 1,555,570
Total primary government $ 22,982,452 $ 22,137,670 $ 21,619,769 $ 22,706,148 $ 25,967,937 $ 26,882,007 $ 29,018,587 20,436,007 26,789,043 30,644,062
Change in Net Position
Governmental activities $ 4,065,344 $ 2,077,375 $ 1,022,782 $ 3,569,879 $ 7,938,378 $ 3,195,933 $ 526,423 12,336,284 8,242,998 10,062,364
Business-type activities 1,989,815 693,963 (135,833) 245,720 1,462,577 1,727,236 (103,879) 691,408 1,757,484 776,974
Total primary government $6,055,159 $2,771,338 $886,949 $3,815,599 $9,400,955 $4,923,169 $422,544 13,027,692 10,000,482 10,839,338
KODIAK ISLAND BOROUGH
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
142
2015 2016 2017 2018 2019
General Fund:
Nonspendable $14,566 $26,272 $32,349 $ 37,885 $ 37,885
Unassigned 3,181,342 3,259,509 2,284,775 3,151,059 3,151,069
Total General Fund $3,195,908 $3,285,781 $2,317,124 $3,188,944 $3,188,954
All other governmental funds
Nonspendable $287,564 $181,191 $419,212 $ 4 $ 1,311
Restricted - - - - -
Committed 42,606,097 43,081,680 4,502,105 43,846,363 45,862,404
Assigned 7,610,272 11,312,217 3,073,997 5,411,992 5,899,049
Unassigned (2,516,222) (1,871,193) (122,678) (126,614) (877,704)
Total all other governmental funds $47,987,711 $52,703,895 $7,872,636 $49,131,745 $50,885,060
2020 2021 2022 2023 2024
General Fund:
Nonspendable $57,926 $33,149 $ 45,790 $ 120,671 $ 210,785
Unassigned 6,120,644 7,454,071 8,205,029 17,430,159 20,099,360
Total General Fund $6,178,570 $7,487,220 $8,250,819 $17,550,830 $20,310,145
All other governmental funds
Nonspendable $- $- $6,048 $1,745 $2,569
Restricted - 153,535 47,010 54,247 78,097
Committed 46,186,064 46,360,958 54,580,464 45,928,606 48,415,639
Assigned 7,393,442 6,828,331 8,650,120 12,966,368 14,090,280
Unassigned (926,989) - (158,417) (193,133) (527,317)
Total all other governmental funds $52,652,517 $53,342,824 $63,125,225 $58,757,833 $62,059,268
KODIAK ISLAND BOROUGH
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
143
Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues:
Property taxes and assessments $ 14,091,503 14,310,687 15,700,272 16,002,138 16,794,958 16,978,718 17,465,902 17,655,437 18,121,497 17,745,545
Transient accommodations tax 104,074 95,466 108,050 113,486 78,971 62,829 50,983 101,447 122,016 99,210
Intergovernmental:
State sources 10,332,739 8,870,802 6,134,338 6,975,473 8,128,643 4,378,515 1,914,694 16,158,378 7,842,443 7,876,030
Federal sources 2,093,987 3,090,533 2,628,537 2,067,113 2,147,572 2,387,270 7,522,174 2,485,648 2,124,729 3,909,621
Severance taxes 1,703,257 1,491,089 1,306,507 1,815,923 1,206,698 1,223,921 1,049,430 1,677,595 1,597,327 990,570
Tobacco excise taxes — — — 310,482 425,444 389,725 702,142 683,971 829,274 804,223
Licenses, permits, fees, and other local revenues 688,719 774,225 3,014,816 992,759 1,023,153 1,057,335 1,002,408 945,737 968,160 1,096,699
Land sale 329,344 110,428 145,820 224,902 76,676 28,903 62,805 15,440 15,540 14,740
Other revenues 17,747 45,422 9,146 290,343 95,463 533,239 340,598 534,249 730,209 69,434
Investment earnings 583,677 648,987 271,691 281,855 2,196,169 1,454,149 188,577 (2,822,026) 951,821 5,315,474
Total revenues 29,945,047 29,437,639 29,319,177 29,074,474 32,173,747 28,494,604 30,299,713 37,435,876 33,303,016 37,921,546
Expenditures:
General government 6,333,724 5,307,245 5,281,999 5,715,946 5,308,369 5,197,783 4,995,157 5,017,074 5,062,574 6,043,634
Public safety 524,169 572,839 699,118 2,001,538 714,826 635,865 546,055 543,862 725,305 745,143
Community and economic development 1,153,985 1,069,639 1,096,928 1,177,198 1,183,798 885,179 907,656 962,935 944,084 870,702
Emergency preparedness 29,128 30,849 35,861 43,038 14,307 4,479 5,257 10,983 16,460 17,810
Health and social welfare 406,093 389,000 233,999 207,500 182,900 157,500 5,257,005 169,647 150,000 158,819
Education, culture, and recreation 24,856 23,949 17,562 4,665 20,472 20,447 20,397 20,396 20,562 20,265
Parks and recreation 161,596 87,456 30,172 77,186 57,096 32,561 19,560 22,125 12,760 6,167
Service district maintenance 534,376 626,289 475,248 587,707 569,610 786,366 647,976 856,657 700,146 618,344
Primary and secondary education 11,100,714 11,100,650 10,373,548 9,449,500 9,970,576 10,522,544 9,443,364 10,521,511 12,035,259 12,312,485
Capital outlay:
Schools 21,984,655 13,240,920 3,936,147 2,958,053 2,092,006 555,253 367,008 137,568 461,278 1,991,385
General 2,907,018 3,430,975 1,086,817 826,432 991,403 1,049,466 803,272 516,580 686,810 1,529,490
Community Development — — — — — — 25,540 551,514 — —
Debt service:
Principal 2,646,040 3,201,002 3,530,000 3,870,000 4,425,000 4,655,000 4,850,000 5,840,000 6,035,000 6,240,000
Interest 3,121,577 3,194,612 3,568,559 3,408,310 3,253,414 3,078,394 2,986,372 1,719,024 1,531,316 1,322,362
Other charges - bond issuance costs — 124,372 64,313 — 10,000 — 251,851 — — —
Total expenditures 50,927,931 42,399,797 30,430,271 30,327,073 28,793,777 27,580,837 31,126,470 26,889,876 28,381,554 31,876,606
Excess of revenues over (under) expenditures (20,982,884) (12,962,158) (1,111,094) (1,252,599) 3,379,970 913,767 (826,757) 10,546,000 4,921,462 6,044,940
Other Financing Sources (Uses):
Proceeds from sales of bonds — 15,000,000 4,905,000 — 550,000 — 2,684,069 — — —
Bond premium — 2,141,115 806,205 — — — 857,176 — — —
Refunding bonds issued — — — — — — 37,350,000 — — —
Payment to refunded bond escrow agent — — (5,934,301) — — — (37,981,510) — — —
Bond refunding issuance cost — — — — — — — — — —
Proceeds from sale of assets — — 140,000 1,240 9,815 — — — 11,157 15,810
Insurance proceeds — 403,958 — — — — — — — —
Transfers in 642,691 1,404,497 1,758,036 1,189,104 1,786,712 1,628,191 5,700,165 4,290,585 12,444,981 1,845,618
Transfers out (795,048) (1,454,725) (2,892,408) (1,234,104) (1,831,712) (1,673,191) (5,700,165) (4,290,585) (12,444,981) (1,845,618)
Transfers in - Component unit 1,632,815 — — — —
Total other financing sources(uses) (152,357) 17,494,845 (1,217,468) (43,760) 514,815 1,587,815 2,909,735 — 11,157 15,810
Net change in fund balances $(21,135,241)4,532,687 (2,328,562)(1,296,359)3,894,785 2,501,582 2,082,978 10,546,000 4,932,619 6,060,750
Debt service as a percentage of noncapital expenditures % 21.71 % 23.80 % 26.84 % 28.08 % 30.20 % 29.24 % 26.23 % 28.82 % 28.32 % 26.72 %
KODIAK ISLAND BOROUGH
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
144
KODIAK ISLAND BOROUGH
General Revenues by Source(a)
Last Ten Fiscal Years
Licenses, Inter-
Fiscal Permits Governmental Investment Operating Miscellaneous
Year Taxes and Fees Revenue Income Transfers Revenue Total
2015 1,938,286 86,916 5,163,300 (18,330) — 19,468 7,189,640
2016 1,712,846 66,151 4,132,063 54,211 — 37,473 6,002,744
2017 1,727,620 83,546 3,738,157 11,059 — 3,715 5,564,097
2018 3,198,144 62,350 3,501,872 10,830 — 6,714 6,779,910
2019 3,551,740 130,441 4,403,041 211,630 — 15,210 8,312,062
2020 2,666,644 96,415 3,523,307 152,804 — 39,860 6,479,030
2021 6,045,254 75,790 8,931,861 24,496 — 8,743 15,086,144
2022 5,810,140 62,975 3,327,965 (371,295) — 1,616 8,831,401
2023 4,478,369 76,164 3,943,757 422,783 — 11,193 8,932,266
2024 3,909,454 85,665 4,060,437 2,388,036 — 20,057 10,463,649
(a) Includes General Fund only.
Source: Borough general ledger.
145
KODIAK ISLAND BOROUGH
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Ratio of
Total Taxable
Total Assessed to
Real Property Personal Property Total Direct Total
Year Ended Net Taxable Full Value Net Taxable Full Value Net Taxable Full Value Tax Full Value
June 30,Assessed Value Determination Assessed Value Determination Assessed Value Determination Rate Determination
1,068,647,102 1,137,024,180 113,251,900 361,886,700 1,181,899,002 1,498,910,880 10.75 78.85
1,084,317,572 1,161,805,872 118,559,600 348,158,100 1,202,877,172 1,509,963,972 10.75 79.66
1,169,223,198 1,256,477,176 143,116,200 154,899,290 1,312,339,398 1,411,376,466 10.75 92.98
1,205,698,799 1,290,502,977 137,125,100 149,533,000 1,342,823,899 1,440,035,977 10.75 93.25
1,220,528,925 1,344,742,803 139,440,700 152,390,588 1,359,969,625 1,497,133,391 10.75 90.84
1,266,365,775 1,363,039,653 155,178,500 168,465,300 1,421,544,275 1,531,504,953 10.75 92.82
1,298,329,669 1,390,457,647 157,498,073 168,586,400 1,455,827,742 1,559,044,047 10.75 93.38
1,341,595,132 1,437,926,510 153,152,089 164,741,900 1,494,747,221 1,602,668,410 10.75 93.27
2023 1,356,823,091 1,463,573,169 159,819,657 172,562,100 1,516,642,748 1,636,135,269 10.75 92.70
2024 1,433,068,792 1,541,889,692 158,168,898 170,836,100 1,591,237,690 1,712,725,792 10.25 92.91
Sources: Borough assessment and tax records
Notes: Property in Kodiak Island Borough is reassessed once every three years.
Property is assessed at actual value; therefore, the assessed values are equal to actual value,
Tax rates are per $1,000 of assessed value.
2021
2022
Fiscal
2018
2019
2020
2015
2016
2017
$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
$1,400,000,000
$1,600,000,000
$1,800,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Last Ten Years Assessed Values
146
KODIAK ISLAND BOROUGH
Direct and Overlapping Property Tax Rates and
Contributions to the School District
Last Ten Fiscal Years
Overlapping Rates
Woodland²Trinity²Mission²
Fiscal Acres Islands Lake Fire Areas²
Year Borough Education Renewal City¹Street Street Tide Road Services Areas²Fire
Ended Basic Support Debt and of Lighting Lighting Gate Monashka Service Bay View Womens Protection Womens
June 30, Rate Fund Service Replacement Kodiak Area Area Area Bay District 1 Road Bay Area No. 1 Bay Airport
2015 0.06 9.16 0.99 0.54 2.00 0.25 0.50 1.00 2.50 1.50 1.75 2.50 1.50 1.25 1.25
2016 0.10 8.45 1.70 0.50 2.00 0.10 0.20 1.00 2.50 1.50 1.50 2.50 1.50 1.25 1.25
2017 0.15 7.62 1.91 1.07 2.00 0.10 0.20 1.00 2.50 1.50 1.50 2.50 1.50 1.25 1.25
2018 0.62 6.80 2.03 1.30 2.00 0.10 0.20 1.00 2.50 1.50 1.50 2.50 1.50 1.25 1.25
2019 1.10 7.05 1.87 0.73 2.00 0.10 0.15 0.25 2.50 1.50 1.50 2.50 1.50 1.25 1.25
2020 0.56 7.45 1.79 0.95 2.00 0.10 0.15 0.25 2.50 1.50 1.50 2.50 1.50 1.25 1.25
2021 2.75 6.45 1.55 — 2.00 0.10 0.15 0.25 1.99 1.50 1.47 2.50 1.50 1.25 1.25
2022 2.11 6.99 1.65 — 2.00 0.10 0.15 0.25 1.99 1.50 1.47 2.50 1.50 1.25 1.25
2023 1.18 7.88 1.36 0.33 2.00 0.10 0.15 0.25 1.99 1.50 1.47 2.50 1.50 1.25 1.25
2024 1.22 7.67 0.29 1.07 2.00 0.10 0.15 0.25 1.99 1.50 1.47 2.50 1.50 1.25 1.25
Note: With the exception of a mill rate to cover Debt Service, the maximum mill rate allowed by State code is 30 mills
¹Overlapping rates are those of local governments that apply to property owners within the City of Kodiak.
²Overlapping rates are those which apply to property owners located within special taxing districts in the borough. They do not apply to every property owner in the Borough.
Direct
Rate
(per $1,000 of Assessed Value)
147
KODIAK ISLAND BOROUGH
Property Tax Levies and Collections
Last Ten Fiscal Years
Collections
in Subsequent
Years Amount
2015 $ 15,009,704 $ 14,749,222 98.3 $ 254,797 $ 15,004,019 100.0
2016 15,261,029 15,032,113 98.5 215,814 15,247,927 99.9
2017 16,642,674 16,554,392 99.5 73,780 16,628,172 99.9
2018 17,069,728 16,809,461 98.5 243,339 17,052,800 99.9
2019 17,699,787 17,462,634 98.7 214,057 17,676,691 99.9
2020 18,055,528 17,809,122 98.6 218,033 18,027,155 99.8
2021 18,431,128 18,243,706 99.0 160,273 18,403,979 99.9
2022 (a) 18,909,337 18,915,116 100.0 (41,835) 18,873,281 99.8
2023 (a) 19,173,229 19,137,935 99.8 (103,967) 19,033,969 99.3
2024 (a) $ 19,376,260 $ 19,195,261 99.1 $ — $ — —
Source: Borough general ledger.
(a) Assessed taxable values as reported in this schedule are prior to any adjustments made for the levied tax year.
Total Collections to DateTaxes Levied
for the
Fiscal Year
Percentage
of LevyAmount of Levy
Percentage
June 30,
Ended
Fiscal Year
Collected within the
Fiscal Year of the Levy
148
KODIAK ISLAND BOROUGH
Principal Property Tax Payers
Current Year and Ten Years Ago
Percentage Percentage
Taxable of Total Borough Taxable of Total Borough
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Trident Seafoods Corp $ 74,859,300 1 4.7% $ 32,091,700 1 2.7%
Matson Navigation 48,538,700 2 3.1% 7,809,800 7 0.7%
Kodiak Area Native Association 37,063,019 3 2.3% — —
Ocean Beauty Seafoods 26,125,800 4 1.6% 28,438,600 2 2.4%
North Pacific Seafoods 15,981,500 5 1.0% 13,893,400 4 1.2%
Island Holdings LLC 15,039,100 6 0.9% — —
Wal-Mart / Sam's Club 14,050,300 7 0.9% 9,494,400 6 0.8%
Mill Bay Plaza Assoc Ltd 13,428,900 8 0.8% 10,921,500 5 0.9%
Silver Bay Seafoods 12,856,300 9 0.8% — —
GCI Holdings LLC 11,269,700 10 — 7,804,500 8 0.7%
Int'l Seafoods of Alaska — — — 17,333,000 3 1.5%
Leisnoi Inc — — — 7,563,800 9 0.6%
Island Fish Co. LLC — — — 6,445,600 10 0.5%
Total $269,212,619 16.2% $141,796,300 12.0%
Source: Borough tax records.
2024 2015
149
Net
Total Taxable Net Debt Per
Fiscal Assessed Bonded Per Assessed
Year Population Value Debt Capita Value
13,819 (a) 1,181,899,002 73,131,566 5,292 6.19%
13,790 (a) 1,202,877,172 86,481,657 6,271 7.19%
13,563 (b) 1,312,339,398 82,302,899 6,068 6.27%
13,287 (b) 1,342,823,899 77,748,492 5,851 5.79%
13,136 (b) 1,389,969,625 73,189,089 5,572 5.27%
13,001 (b) 1,421,544,275 67,849,686 5,219 4.77%
12,611 (b) 1,455,827,742 65,140,020 5,165 4.47%
12,900 (b) 1,494,747,221 58,575,062 4,541 3.92%
2023 12,832 (b) 1,516,642,748 51,966,107 4,050 3.43%
2024 12,721 (b) 1,591,237,690 45,323,825 3,563 2.85%
Sources: Information obtained from assessment records and Borough general ledger except as otherwise noted.
(a) Information obtained from State of Alaska, Division of Community and Regional Affairs,
Community Database, Certified Population for Revenue Sharing Program.
(b) Information obtained from State of Alaska, Department of Labor, Economic Information.
Note: Detail regarding the Borough's outstanding debt can be found in the notes to the financial statements.
2021
2022
KODIAK ISLAND BOROUGH
Ratios of Net Bonded Debt
Last Ten Fiscal Years
2019
2020
2018
2015
2016
2017
150
KODIAK ISLAND BOROUGH
Computation of Direct Debt
Percentage Kodiak Island
Net Debt Applicable to this Borough's
Outstanding Governmental Share of
(a) Unit (b) Debt (c)
Kodiak Island Borough:
General obligation bonds $ 45,323,825 100% $ 45,323,825
City of Kodiak:
General obligation bonds 5,233,108 100% —
Total $50,556,933 $45,323,825
(a) Gross debt outstanding less applicable amounts in the Debt Service Funds.
(b) Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to
valuation of property subject to taxation in reporting unit.
(c) Per Alaska Statute 29.45.090 there is a limit of 30 mills for ad valorem taxes.
Per Alaska Statute 29.45.100 the limitation on maximum mill rate does not apply to taxes levied to
pay bonds.
Sources: Borough general ledger and City of Kodiak records.
June 30, 2024
151
2015 2016 2017 2018 2019
Taxable Assessed value $ 1,181,899,002 1,202,877,172 1,312,339,398 1,342,823,899 1,389,969,625
Plus exempt property 68,377,078 77,488,300 87,253,178 84,804,178 94,213,878
Total $1,250,276,080 1,280,365,472 1,399,592,576 1,427,628,077 1,484,183,503
2020 2021 2022 2023 2024
Taxable Assessed value $ 1,424,752,775 1,455,827,742 1,494,747,221 1,516,642,748 1,591,237,690
Plus exempt property 93,464,878 92,127,978 96,331,378 106,750,078 108,820,900
Total $1,518,217,653 1,547,955,720 1,591,078,599 1,623,392,826 1,700,058,590
The State of Alaska does not mandate a debt limit to its municipalities and political subdivisions.
Debt capacity is ultimately determined by the voters and the marketplace.
Source: Borough assessment records (certified tax rolls).
KODIAK ISLAND BOROUGH
Legal Debt Margin Information
Last Ten Fiscal Years
152
KODIAK ISLAND BOROUGH
Ratio of Annual Debt Service Expenditures
for General Bonded Debt to Total
General Governmental Expenditures and Transfers
Last Ten Fiscal Years
Total General Ratio of
Fund debt service
Fiscal Interest Total debt expenditures to general
year Principal (a) and fees service and transfers expenditures
2,646,040 3,120,449 5,766,489 7,497,680 76.9
3,201,002 3,194,612 6,395,614 6,576,153 97.3
3,530,000 3,632,872 7,162,872 6,532,754 109.6
3,870,000 3,408,310 7,278,310 6,402,256 113.7
4,425,000 3,263,414 7,688,414 6,287,584 122.3
4,655,000 3,078,394 7,733,394 5,744,905 134.6
4,850,000 2,986,372 7,836,372 13,693,473 57.2
5,840,000 1,719,024 7,559,024 8,067,802 93.7
2023 6,035,000 1,531,316 7,566,316 11,390,799 66.4
2024 6,240,000 1,322,362 7,562,362 7,720,144 98.0
(a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of
term bonds.
Sources: Borough general ledger and debt documents.
2015
2016
2017
2021
2022
2018
2020
2019
153
KODIAK ISLAND BOROUGH
Ratios of Outstanding Debt by Type
General Total Percent of
Obligation Notes Revenue Notes Primary Personal Per
Bonds Payable Bonds Payable Government Income Capita
73,131,566 31,002 17,984,677 9,908,184 101,055,429 12.51% 7,324
76,481,657 — 15,531,184 20,160,175 112,173,016 13.88% 8,117
82,302,899 — 16,437,616 14,576,980 113,317,495 13.84% 8,217
77,748,492 — 15,649,919 13,806,965 107,205,376 12.56% 7,904
73,189,089 — 13,016,950 14,750,846 100,956,885 11.70% 7,598
67,849,686 — 12,196,935 13,911,774 93,958,395 10.76% 7,153
65,140,020 — 11,473,825 13,042,701 89,656,546 10.08% 6,896
58,575,062 — 9,775,000 12,173,628 80,523,690 8.84% 6,385
51,966,107 — 8,840,000 11,431,885 72,237,992 7.50% 5,600
45,323,825 — 7,870,000 11,714,856 64,908,681 * 5,102
Note: Detail regarding the Borough's outstanding debt can be found in the notes to the financial statements.
* Information not available at report time.
2024
2023
Last Ten Fiscal Years
Fiscal
Year
2022
2021
Governmental Activities Business-type Activities
2019
2020
2017
2016
2015
2018
154
KODIAK ISLAND BOROUGH
Demographic and Economic Statistics
Last Ten Years
Per Capita Percentage
Calendar Personal Personal School Unemployment
Year Population (a) Income (c) Income (c) Enrollment (b) Rate (c)
2015 13,819 807,817,000 58,457 2,446 4.9
2016 13,790 808,036,000 58,843 2,437 5.0
2017 13,563 818,860,000 60,891 2,386 4.6
2018 13,287 853,258,000 63,938 2,437 4.8
2019 13,136 862,827,000 66,382 2,395 4.2
2020 13,001 872,896,000 66,988 2,315 4.4
2021 12,611 889,288,000 69,546 2,297 3.9
2022 12,900 910,664,000 71,593 2,275 3.9
2023 12,832 962,787,000 76,625 2,254 3.0
2024 12,721 * * 2,109 3.6
Sources:
(a) State of Alaska, DCRA certified population.
(b)Alaska Dept. of Education, Average Daily Membership by Fiscal Year at www.eed.state.ak.us/stats
(c)Bureau of Economic Analysis https://www.bea.gov
* Information not available at report time.
—
5,000
10,000
15,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Borough Population and Student Count
Population (a)School Enrollment (b)
155
Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017 Fiscal Year 2018
Average Average Average Average Average Average Average Average
Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly
Employment Earnings Employment Earnings Employment Earnings Employment Earnings
Total Industries 6,524 $ 3,650 6,154 $ 3,292 6,294 $ 3,540 6,037 $ 3,585
Private Ownership 5,148 3,565 4,721 3,118 4,867 3,407 4,578 3,433
Total Government 1,377 3,966 1,433 3,867 1,427 3,995 1,460 4,060
Private Goods-Producing 2,268 3,832 2,012 2,766 1,934 3,318 1,636 3,067
Private Service-Providing 2,879 3,356 2,710 3,378 2,933 3,466 2,942 3,637
Fiscal Year 2019 Fiscal Year 2020 Fiscal Year 2021 Fiscal Year 2022
Average Average Average Average Average Average Average Average
Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly
Employment Earnings Employment Earnings Employment Earnings Employment Earnings
Total Industries 5,967 $ 3,816 5,706 $ 3,887 5,369 $ 3,951 5,548 $ 4,303
Private Ownership 4,511 3,714 4,118 3,758 3,834 3,837 4,019 4,226
Total Government 1,455 4,134 1,588 4,222 1,535 4,236 1,530 4,504
Private Goods-Producing 1,637 3,651 1,524 3,665 1,384 3,633 1,440 4,328
Private Service-Providing 2,875 3,748 2,594 3,812 2,449 3,954 2,578 4,171
Fiscal Year 2023 Fiscal Year 2024
Average Average Average Average
Monthly Monthly Monthly Monthly
Employment Earnings Employment Earnings
Total Industries 5,433 $ 4,760 5,629 $ 4,839
Private Ownership 3,827 4,921 4,080 4,849
Total Government 1,605 4,379 1,550 4,808
Private Goods-Producing 1,337 5,369 1,497 5,146
Private Service-Providing 2,490 4,681 2,583 4,677
KODIAK ISLAND BOROUGH
Average Monthly Employment & Earnings
Last Ten Fiscal Years
156
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Land area - square miles 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130
Miles of improved street 26.1 26.1 26.1 26.1 26.1 26.1 26.1 26.1 26.1 26.1
Building permits:
Permits issued 193 216 143 93 94 91 85 68 58 87
Value of buildings (thousands) 36,216 10,866 11,793 7,331 19,324 14,148 7,736 7,938 11,391 10,578
Fire Protection:
Number of fire stations 2 2 2 2 2 2 2 2 2 2
Number of employees 1 1 1 1 1 1 1 1 1 1
Police Protection: none
(provided by the City of Kodiak within the city limits and by the State of Alaska outside the City boundaries.)
Recreation:
Parks (number of acres) 224 224 224 224 224 224 224 224 224 224
Facilities:
Number of playgrounds 16 16 16 16 16 16 16 16 16 16
Number of swimming pools 1 1 1 1 1 1 1 1 1 1
Public Education:
Number of schools:
Kodiak Area Elementary 4 4 4 4 4 4 4 4 4 4
Kodiak Area Middle School 1 1 1 1 1 1 1 1 1 1
Kodiak Area High School 1 1 1 1 1 1 1 1 1 1
Village Schools (a) 7 7 7 7 7 7 7 7 7 7
Number of support personnel (b) 187 200 206 206 189 192 196 214 236 190
Number of teachers (c) 166 170 177 210 193 185 190 217 228 218
Number of students (d) 2,446 2,437 2,386 2,437 2,395 2,315 2,297 2,275 2,254 2,109
Number of Municipal Employees 45 43 44.5 45 41 38 37 39 38 39
Sources: Borough Departments, Kodiak Island Borough School District and City of Kodiak
(a) The majority of Village Schools are grades K-12. (c) School District personnel figures include staffing from the General Fund and Grants.
(b) All non-teaching employees. (d) Alaska Department of Education and Early Development, Average District enrollment (www.eed.state.ak/stats)
KODIAK ISLAND BOROUGH
MISCELLANEOUS STATISTICAL DATA
Last Ten Fiscal Years
157
KODIAK ISLAND BOROUGH
Property Value, Construction, and Bank Deposits
Last Ten Fiscal Years
Construction Property Value*
Commercial Residential
Fiscal No. of No. of
year permits Value permits Value Commercial Residential
2015 61 31,146,134 141 5,644,907 239,000,000 402,319,200 800,640,400
56 4,882,606 160 5,983,768 245,354,000 452,535,972 750,341,200
13 4,599,616 130 7,193,534 243,973,000 384,902,202 820,796,597
23 3,515,430 70 3,815,114 233,000,000 390,922,837 859,606,088
2019 20 7,270,037 73 12,082,486 229,000,000 401,383,960 864,185,415
2020 18 3,854,671 73 10,294,257 260,885,000 410,473,530 887,856,139
2021 23 3,600,009 61 4,136,397 389,000,000 456,707,528 884,887,604
2022 12 2,220,683 56 5,717,888 398,847,000 477,502,969 879,320,122
2023 12 3,171,206 46 8,219,995 392,639,000 461,292,002 971,776,790
2024 18 4,389,109 69 6,189,167 349,604,000 516,915,364 1,148,680,165
Sources: Borough assessing records and City of Kodiak building department and FDIC.
Deposits in
local banks
2018
2016
2017
—
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Deposits in Kodiak Banks
158
2015 2016 2017 2018 2019
Function:
General Government 30 29 28.5 29 28
Community and Economic Development 4 5 6 6 3
Municipal Solid Waste Collection and Disposal 9 7 8 8 8
Kodiak Fisheries Research Center 2 2 2 2 2
Total 45 43 44.5 45 41
2020 2021 2022 2023 2024
Function:
General Government 25 25 26 25 26
Community and Economic Development 2 2 3 3 4
Municipal Solid Waste Collection and Disposal 9 8 8 8 8
Kodiak Fisheries Research Center 2 2 2 2 1
Total 38 37 39 38 39
Source: Borough Finance Department
Full-time Equivalent Employees
as of June 30:
KODIAK ISLAND BOROUGH
Full-Time Equivalent Borough Employees by Function/Program
Last Ten Fiscal Years
159
KODIAK ISLAND BOROUGH
Operating Indicators by Function
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
General Government
Elections
Number of registered voters 9,100 9,585 9,453 9,357 10,039 10,104 10,258 10,163 10,192 10,072
Number voting in last election 1,968 1,800 2,303 1,692 1,266 1,550 2,084 1,393 1,430 1,811
Percent of registered voters 22% 19% 24% 18% 13% 15% 20% 14% 14% 18%
Public Safety
Number of fire stations 2 2 2 2 2 2 2 2 2 2
Number of employees 1 1 1 1 1 1 1 1 1 1
Community and economic development
Zoning compliance permits issued 183 161 177 128 142 128 110 118 101 116
Junk cars removed 37 21 10 35 79 82 72 43 36 26
Primary and secondary education
Number of students 1,446 2,437 2,386 2,437 2,395 2,315 2,297 2,275 2,254 2,109
Number of General Fund certified staff 177 183 196 206 193 185 190 234 228 2,109
Number of General Fund classified staff 166 173 187 210 189 192 196 214 236 2,109
Solid waste disposal
Total solid waste disposal in tons 12,364 12,876 11,646 11,458 12,882 10,989 10,896 11,250 11,123 11,159
Baled waste in tons 8,900 10,454 9,875 10,396 9,584 9,191 9,821 10,017 9,799 9,859
Scrap metal in tons 205 221 190 128 142 173 108 160 207 210
Asbestos, cubic yards 362 219 179 142 348 509 161 66 59 63
Source: Borough Finance Department
160
Function program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
GOVERNMENTAL ACTIVITIES
Number of buildings (teacher housing, schools and office buildings)19 21 20 20 19 19 19 19 19 19
Vehicles 14 11 14 13 13 13 12 12 27 26
Inactive School building n/a n/a n/a n/a 1 1 1 1 1 1
Streets (miles) 26.1 26.1 26.1 26.1 26.1 26.1 26.1 26.1 26.1 26.1
Land area - square miles 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130
(provided by the City of Kodiak within the city limits and by the State of Alaska outside the city boundaries)
2 2 2 2 2 2 2 2 2 2
12 10 11 13 12 12 12 12 11 11
1 1 1 0 0 0 0 0 0 0
BUSINESS-TYPE ACTIVITES
Number of Baler Facilities (Landfills) 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1
- - - 1 1 1 1 1 1 1
224 224 224 224 224 224 224 224 224 224
1 1 1 1 1 1 1 1 1 1
16 16 16 16 16 16 16 16 16 16
1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1
Sources : Supplied by Kodiak Island Borough Department Heads
Notes : No capital asset indicators are available for the library function
A description of the Kodiak Island Borough's Capitalization and Depreciation policy
is included in the Notes To The Basic Financial Statements
KODIAK ISLAND BOROUGH
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Number of playgrounds
Number of Emergency response vehicles
Emergency Tsunami Shelters
Municipal Solid Waste
Community Health & Public Services
Mental Health Facilities
Long Term Care Center
Hospital
Culture, Parks and Recreation
Roads
Police: none
Fire and Emergency Services
Number of fire stations
Number of Swimming Pools
Kodiak Island Research Facilities (marine research)
Dorm facility (6 apartments)
Parks (number of acres)
Facilities:
161