FY2025 ACFR
KODIAK ISLAND BOROUGH
ALASKA
Annual Financial Report
Year Ended June 30, 2025
KODIAK ISLAND BOROUGH
ALASKA
Annual Financial Report
Year Ended June 30, 2025
Official Issuing Report
Dora Cross
Finance Director
KODIAK ISLAND BOROUGH
TABLE OF CONTENTS
June 30, 2025
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 10-14
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 15
Statement of Activities 16
Fund Financial Statements:
Balance Sheet – Governmental Funds 17
Reconciliation of Net Position Between the Government-Wide and the Fund Financial
Statements 18
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds 19
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities 20
Statement of Net Position – Proprietary Funds – Business-Type Activities – Enterprise
Funds 21
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds –
Business-Type Activities – Enterprise Funds 22
Statement of Cash Flows – Proprietary Funds – Business-Type Activities – Enterprise
Funds 23
Notes to Basic Financial Statements 24-68
Required Supplementary Information:
Budgetary Comparison Schedule – General Fund 69-70
Budgetary Comparison Schedule – Special Revenue Fund – Education Support 71
Budgetary Comparison Schedule – Special Revenue Fund – Facilities 72
Public Employees’ Retirement System:
Schedule of Borough’s Proportionate Share of the Net Pension Liability 73
Schedule of Borough’s Proportionate Share of the Net OPEB Liability (Asset) 74
Schedule of Borough’s Contributions (Pension) 75
Schedule of Borough’s Contributions (OPEB) 76
Notes to Required Supplementary Information – Budgetary Comparison Schedules 77-79
KODIAK ISLAND BOROUGH
TABLE OF CONTENTS, CONTINUED
Page
Supplementary Information:
Budgetary Comparison Schedule – Debt Service Fund – Education 80
Nonmajor Governmental Funds:
Combining Balance Sheet 81
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 82
Nonmajor Special Revenue Funds:
Combining Balance Sheet 83-84
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
(deficit) 85-86
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and
Actual:
Fire and Road Service Areas:
Fire:
Fire Protection Area No. 1 87
Womens Bay Fire Department 88
Kodiak Airport Fire District 89
Road:
Monashka Bay Road Service Area 90
Service Area No. 1 91
Womens Bay Road Service Area 92
Bay View Road Service Area 93
Service Area No. 2 94
L.E.P.C. 95
Land Sales 96
Buildings and Grounds 97
Woodland Acres Street Light Service Area 98
Trinity Islands Street Light Service Area 99
Tourism Development 100
Commercial Passenger Vessel 101
Mission Lake Tide Gate 102
Opioid Class Action Settlement 103
Nonmajor Capital Project Funds:
Combining Balance Sheet 104
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 105
Nonmajor Enterprise Funds:
Combining Statement of Net Position 106
Combining Statement of Revenues, Expenses, and Changes in Net Position 107
Combining Statement of Cash Flows 108
Enterprise Funds:
Schedule of Revenues, Expenses, and Changes in Net Position – Budget
and Actual:
Municipal Solid Waste Collection and Disposal 109
Hospital Facilities 110
Long Term Care Center 111
Kodiak Fisheries Research Center 112
911 Service Fund 113
Research Court Apartments 114
KODIAK ISLAND BOROUGH
TABLE OF CONTENTS, CONTINUED
Page
Supplementary Bond Schedules:
Summary of Bonded Debt Service Requirements to Maturity 115
General Obligation Bond, 2015 Series Three – Retirement Schedule 116
General Obligation Bond, 2016 Series One A – Retirement Schedule 117
General Obligation Bond, 2016 Series One B – Retirement Schedule 118
General Obligation Bond, 2016 Series Three – Retirement Schedule 119
General Obligation Bond, 2018 Series A – Retirement Schedule 120
General Obligation Bond, 2020 Series One A – Retirement Schedule 121
General Obligation Bond, 2020 Series One B – Retirement Schedule 122
General Obligation Bond, 2021 Series One – Retirement Schedule 123
General Obligation Bond, 2021 Series Three – Retirement Schedule 124
General Obligation Bond, 2021 Series Four – Retirement Schedule 125
General Obligation Bond, 2025 Series One – Retirement Schedule 126
STATISTICAL SECTION:
Statistical Section Index
Net Position by Component – Last Ten Fiscal Years 127
Changes in Net Position – Last Ten Fiscal Years 128
Fund Balances of Governmental Funds – Last Ten Fiscal Years 129
Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 130
General Revenues by Source – Last Ten Fiscal Years 131
Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 132
Direct and Overlapping Property Tax Rates and Contributions to the School District –
Last Ten Fiscal Years 133
Property Tax Levies and Collections – Last Ten Fiscal Years 134
Principal Property Tax Payers – Current Year and Ten Years Ago 135
Ratios of Net Bonded Debt– Last Ten Fiscal Years 136
Computation of Direct Debt 137
Legal Debt Margin Information – Last Ten Fiscal Years 138
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General
Fund Expenditures and Transfers – Last Ten Fiscal Years 139
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 140
Demographic and Economic Statistics – Last Ten Fiscal Years 141
Average Monthly Employment & Earnings – Last Ten Fiscal Years 142
Miscellaneous Statistical Data – Last Ten Fiscal Years 143
Property Value, Construction and Bank Deposits – Last Ten Fiscal Years 144
Full-Time Equivalent Borough Employees by Function/Program – Last Ten Fiscal Years 145
Operating Indicators by Function – Last Ten Fiscal Years 146
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 147
INTRODUCTORY SECTION
1
Kodiak Island Borough
Finance Department
710 Mill Bay Road Kodiak, Alaska 99615
December 12, 2025
Members of the Assembly
Citizens of the Kodiak Island Borough
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, 2025.
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, 2025, 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, 2025. The
independent auditor’s report is presented as the first component of the financial section of this report.
2
As a recipient 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 Compliance 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 12,570 (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’s port 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 Borough’s transient tax revenues an unreliable indicator of tourism economy. In
FY25 total revenue was just over one hundred thousand dollars, a definite increase from FY21’s pandemic
number of fifty thousand dollars. Cruise ship tax revenues have rebounded nicely with FY25 revenue double
that of FY2024 and is currently at the pre-pandemic average revenue of forty thousand dollars.
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 August 2025, the unemployment rate for the Kodiak Island Borough was 3.2%
compared to the State of Alaska’s rate of 4.7%.
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, 2024. This was the thirty-fifth 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.
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
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 2025
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
Jared Griffin, Dave Johnson,
At Large, 2025 At Large, 2027
(No picture available)
Scott Arndt, Mayor,
At Large, 2025
(No picture available)
Larry Ledoux, Ryan Sharratt,
At Large, 2025 At Large, 2026
Scott Smiley, Bo Sedillo-Whiteside,
At Large, 2027 At Large, 2026
Steven Ames,
At Large, 2026
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,
2025, 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 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, 2025, 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.
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
11
Emphasis of Matter
Change in Accounting Principle
As discussed in Note 19 to the financial statements, in 2025, the Borough implemented GASB Statement
No. 101, Compensated Absences, which established standards of accounting and financial reporting for
compensated absences. The requirements of this Statement apply to financial statements of all state and
local governments.
The 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.
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.
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.
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
12
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.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the 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 69-72, 73-76, and 77-79, 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.
Management has omitted the Management’s Discussion and Analysis that accounting principles generally
accepted in the United States of America require to be presented to supplement the basic financial
statements. Such missing information, 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. Our opinions on the basic financial statements are not affected by this missing information.
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
13
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
“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.
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.
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
14
We also have previously audited, in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, Kodiak Island Borough’s basic financial
statements for the year ended June 30, 2024, 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, 2024, 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 2024 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 2024
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 12,
2025, 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 12, 2025
BASIC FINANCIAL STATEMENTS
Component
Primary government unit Total reporting entity
Governmental Business-type School
activities activities Total District 2025 2024
Assets
Equity in central treasury $ 108,602,675 16,740,964 125,343,639 — 125,343,639 119,158,605
Due from primary
government — — — 15,002,000 15,002,000 15,364,922
Receivables:
Leases — 15,468,302 15,468,302 — 15,468,302 17,809,113
State of Alaska 221,342 — 221,342 1,379,610 1,600,952 2,770,960
Federal government 247,219 — 247,219 — 247,219 187,366
Property taxes, net of
allowance of $19,371 402,844 — 402,844 — 402,844 294,070
Severance taxes 154,431 — 154,431 — 154,431 136,646
Excise taxes 169,980 — 169,980 — 169,980 226,224
Interest 955,477 — 955,477 — 955,477 725,259
Land sales contracts
receivable 17,957 — 17,957 — 17,957 28,696
Accounts and other receivables 58,478 889,363 947,841 — 947,841 844,546
Current portion of
notes receivable — 150,954 150,954 — 150,954 145,769
Inventories — 1,983,002 1,983,002 453,075 2,436,077 2,653,253
Prepaid items 175,676 1,013 176,689 704 177,393 216,149
Restricted cash and equivalents — 1,512,913 1,512,913 — 1,512,913 1,445,574
Internal balances 37,415 (37,415) — — — —
Notes receivable — 443,385 443,385 — 443,385 594,338
Capital assets:
Non-depreciable 23,857,716 5,348,861 29,206,577 — 29,206,577 34,383,225
Depreciable, net 109,410,105 54,613,162 164,023,267 628,844 164,652,111 181,870,605
Net OPEB assets 1,498,804 535,790 2,034,594 14,447,203 16,481,797 2,920,441
Total assets 245,810,119 97,650,294 343,460,413 31,911,436 375,371,849 381,775,761
Deferred outflows of resources:
Related to bond refunding — — — — — —
Pension and OPEB deferrals 532,085 190,208 722,293 3,268,858 3,991,151 4,907,266
Total deferred outflows
of resources 532,085 190,208 722,293 3,268,858 3,991,151 4,907,266
Total assets and deferred
outflows of resources $ 246,342,204 97,840,502 344,182,706 35,180,294 379,363,000 386,683,027
Liabilities:
Accounts payable $ 660,833 733,008 1,393,841 634,015 2,027,856 2,235,962
Accrued compensation
and related liabilities 154,446 — 154,446 2,897,322 3,051,768 3,310,069
Other accrued liabilities 155,149 48,146 203,295 42,654 245,949 236,996
Customer deposits 20,225 21,612 41,837 — 41,837 16,616
Unearned revenues 4,819,027 222,495 5,041,522 192,842 5,234,364 8,136,477
Due to component unit 15,002,000 — 15,002,000 — 15,002,000 15,364,922
Noncurrent liabilities:
Due within one year:
Compensated absences 195,741 65,647 261,388 — 261,388 107,015
Notes and bonds payable 5,491,093 1,905,905 7,396,998 — 7,396,998 8,713,181
Due in more than one year:
Compensated absences 147,158 83,566 230,724 1,610,396 1,841,120 940,054
Notes and bonds payable 32,996,843 15,788,044 48,784,887 — 48,784,887 56,195,500
Net pension liability 3,481,953 1,244,722 4,726,675 27,523,665 32,250,340 30,319,102
Landfill closure costs — 7,769,000 7,769,000 — 7,769,000 7,033,000
Total liabilities 63,124,468 27,882,145 91,006,613 32,900,894 123,907,507 132,608,894
Deferred inflows of resources:
Leases — 13,734,839 13,734,839 — 13,734,839 16,196,166
Pension and OPEB deferrals 55,516 19,846 75,362 574,952 650,314 912,089
Total deferred inflows
of resources 55,516 13,754,685 13,810,201 574,952 14,385,153 17,108,255
Net position:
Net investment in capital assets 95,138,609 42,268,074 137,406,683 628,844 138,035,527 138,190,081
Restricted:
Net OPEB assets 1,498,804 535,790 2,034,594 — 2,034,594 2,157,812
Commercial passenger vessel 123,744 — 123,744 — 123,744 78,097
Student activities — — — 862,757 862,757 882,085
Unrestricted 86,401,063 13,399,808 99,800,871 212,847 100,013,718 95,657,803
Total net position 183,162,220 56,203,672 239,365,892 1,704,448 241,070,340 236,965,878
Total liabilities, deferred inflows
of resources and net position $ 246,342,204 97,840,502 344,182,706 35,180,294 379,363,000 386,683,027
See accompanying notes to financial statements.
(With summarized financial information for June 30, 2024)
June 30, 2025
Statement of Net Position
KODIAK ISLAND BOROUGH
of Resources and Net Position
Liabilities, Deferred Inflows
Outflows of Resources
Assets and Deferred
15
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 2025 2024
Primary government:
Governmental activities:
General government $8,610,408 1,012,562 607,763 232,519 (6,757,564) — (6,757,564) — (6,757,564) (6,367,716)
Public safety 1,161,284 36,415 200,820 — (924,049) — (924,049) — (924,049) (523,885)
Community and economic development 939,849 — 54,967 2,115,514 1,230,632 — 1,230,632 — 1,230,632 977,913
Emergency preparedness 28,760 — — — (28,760) — (28,760) — (28,760) (17,810)
Health and social welfare 306,846 — — — (306,846) — (306,846) — (306,846) (158,819)
Education, culture and recreation 20,650 — — — (20,650) — (20,650) — (20,650) (20,265)
Parks and recreation 266,800 — — — (266,800) — (266,800) — (266,800) (6,167)
Service district maintenance 954,187 48,300 — — (905,887) — (905,887) — (905,887) (571,194)
Primary and secondary education 17,923,796 — — — (17,923,796) — (17,923,796) — (17,923,796) (17,163,738)
Interest on long-term debt 640,474 — 5,878,860 — 5,238,386 — 5,238,386 — 5,238,386 4,825,553
Total governmental activities 30,853,054 1,097,277 6,742,410 2,348,033 (20,665,334) — (20,665,334) — (20,665,334) (19,026,128)
Business-type activities:
Municipal solid waste collection and
disposal 5,687,579 4,117,993 525,197 — — (1,044,389) (1,044,389) — (1,044,389) (848,545)
Hospital facilities 1,455,770 1,335,559 — — — (120,211) (120,211) — (120,211) 76,346
Long Term Care Center 670,985 1,135,718 — — — 464,733 464,733 — 464,733 504,089
Kodiak Fisheries Research Center 1,472,653 883,762 26,099 — — (562,792) (562,792) — (562,792) (195,369)
911 service 313,728 — — — — (313,728) (313,728) — (313,728) (322,004)
Research court apartments 117,329 82,078 — — — (35,251) (35,251) — (35,251) 6,887
Total business-type activities 9,718,044 7,555,110 551,296 — — (1,611,638) (1,611,638) — (1,611,638) (778,596)
Total primary government 40,571,098 8,652,387 7,293,706 2,348,033 (20,665,334) (1,611,638) (22,276,972) — (22,276,972) (19,804,724)
Component unit:
School District $62,565,573 218,327 12,027,691 91,557 (50,227,998) (50,227,998) (45,879,190)
General revenues and transfers:
Property taxes 19,134,610 — 19,134,610 — 19,134,610 17,793,535
Grants and entitlements not restricted to specific programs 3,622,783 — 3,622,783 34,186,442 37,809,225 37,812,326
Land sales 2,681 — 2,681 — 2,681 3,456
Severance taxes 892,130 — 892,130 — 892,130 1,089,780
Excise taxes 703,712 — 703,712 — 703,712 804,223
Support from primary government — — — 12,316,558 12,316,558 12,205,244
Investment earnings 5,545,347 976,180 6,521,527 — 6,521,527 6,160,367
Gain on disposal of capital assets 100 — 100 — 100 15,810
Other 51,128 331,247 382,375 39,013 421,388 810,354
Internal transfers (45,000) 45,000 —
Total general revenues and transfers 29,907,491 1,352,427 31,259,918 46,542,013 77,801,931 76,695,095
Change in net position 9,242,157 (259,211) 8,982,946 (3,685,985) 5,296,961 11,011,181
Net position, at beginning of year, as originally stated 174,018,655 56,462,883 230,481,538 6,484,340 236,965,878 225,954,697
Change in accounting principle (Footnote 19)(98,592) — (98,592) (1,093,907) (1,192,499) —
Net position, at beginning of year, as restated 173,920,063 56,462,883 230,382,946 5,390,433 235,773,379 225,954,697
Net position, at end of year $183,162,220 56,203,672 239,365,892 1,704,448 241,070,340 236,965,878
See accompanying notes to financial statements.
KODIAK ISLAND BOROUGH
Statement of Activities
Year ended June 30, 2025
(With summarized financial information for the year ended June 30, 2024)
16
Renewal and
Education Replacement Other
Education Debt Service Capital Project Governmental
Assets General Support Facilities Fund Fund Funds 2025 2024
Assets:
Equity in central treasury $ 26,206,282 14,602,110 42,830,625 152,738 12,302,516 12,508,404 108,602,675 104,782,627
Receivables:
State of Alaska 16,153 — — 205,189 — — 221,342 414,419
Federal government 180,258 — — — — 66,961 247,219 187,366
Property taxes, net of
allowance of $19,371 83,895 238,270 — 23,502 28,667 28,510 402,844 294,070
Severance taxes 154,431 — — — — — 154,431 136,646
Excise taxes 169,980 — — — — — 169,980 226,224
Interest 955,477 — — — — — 955,477 725,259
Land sales contracts, due within one year — — — — — 13,131 13,131 12,003
Accounts and other receivables 24,060 — — — — 34,418 58,478 93,687
Prepaid items 175,039 — — — — 637 175,676 213,354
Due from other funds 82,449 — — — — — 82,449 24,515
Land sales contracts, due after one year — — — — — 4,826 4,826 16,693
Total assets $28,048,024 14,840,380 42,830,625 381,429 12,331,183 12,656,887 111,088,528 107,126,863
Liabilities:
Accounts payable $ 240,909 23,222 — — 15,835 380,867 660,833 1,143,691
Accrued compensation
and related liabilities 154,446 — — — — — 154,446 156,333
Customer deposits — — — — — 20,225 20,225 1,450
Due to component unit — 15,002,000 — — — — 15,002,000 15,364,922
Due to other funds — — — — — 45,034 45,034 59,471
Unearned revenues 4,803,117 — — — 15,910 4,819,027 7,722,509
Total liabilities 5,198,472 15,025,222 — — 15,835 462,036 20,701,565 24,448,376
Deferred inflows of resources -
Unavailable revenues 80,269 224,195 — 22,705 26,729 44,166 398,064 309,074
Total liabilities and deferred
inflows of resources 5,278,741 15,249,417 — 22,705 42,564 506,202 21,099,629 24,757,450
Fund balances:
Nonspendable 175,039 — — — — 637 175,676 213,354
Restricted — — — — — 123,744 123,744 78,097
Committed — — 42,830,625 358,724 — 7,525,645 50,714,994 48,415,639
Assigned — — — — 12,288,619 4,527,964 16,816,583 14,090,280
Unassigned 22,594,244 (409,037) — — — (27,305) 22,157,902 19,572,043
Total fund balances 22,769,283 (409,037) 42,830,625 358,724 12,288,619 12,150,685 89,988,899 82,369,413
Total liabilities, deferred inflows
of resources and fund balances $28,048,024 14,840,380 42,830,625 381,429 12,331,183 12,656,887 111,088,528 107,126,863
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, 2024)
June 30, 2025
Balance Sheet
17
Amount reported as fund balances on the governmental funds balance sheet $ 89,988,899
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.133,267,821
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 $380,107
Notes receivable - land sales 17,957 398,064
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 (36,910,000)
Bond premium (1,577,936)
Accrued interest expense (155,149)
Compensated absences (342,899) (38,985,984)
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 532,085
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 (55,516)
Proportionate share of the collective net OPEB assets 1,498,804
Proportionate share of the collective net pension liabilities (3,481,953)
Net position of governmental activities $ 183,162,220
See accompanying notes to financial statements.
KODIAK ISLAND BOROUGH
Reconciliation of Net Position Between the
June 30, 2025
Government-Wide Financial Statements and the Fund Financial Statements
18
State Capital Renewal and
Education Grants Capital Replacement Other
Education Debt Service Project Fund Capital Project Governmental
General Support Facilities Fund (Formerly Major)Fund Funds 2025 2024
Revenues:
Property taxes and assessments $2,328,687 12,422,089 — 454,008 1,791,691 2,038,406 19,034,881 17,745,545
Transient accommodations tax — — — — — 105,265 105,265 99,210
Severance taxes 786,865 — — — — — 786,865 990,570
Excise taxes 703,712 — — — — — 703,712 804,223
Intergovernmental:
State sources 1,586,143 — — 5,878,860 — 200,172 7,665,175 7,876,030
Federal sources 2,495,580 — — — 33,377 2,400,660 4,929,617 3,909,621
Charges for services 310 — — — — 926,421 926,731 939,884
Licenses, permits and fees 98,246 — — — — 56,700 154,946 141,215
Investment income 2,542,384 — 2,503,230 — — 499,733 5,545,347 5,315,474
Rentals — — — — — 15,600 15,600 15,600
Land sales — — — — — 13,420 13,420 14,740
Other 16,771 — — — — 34,357 51,128 69,434
Total revenues 10,558,698 12,422,089 2,503,230 6,332,868 1,825,068 6,290,734 39,932,687 37,921,546
Expenditures:
Current:
General government 5,090,425 — — 1,359 — 622,704 5,714,488 6,043,634
Public safety 154,430 — — — — 838,284 992,714 745,143
Community and
economic development 828,232 — — — — 75,323 903,555 870,702
Emergency preparedness 55,546 — — — — — 55,546 17,810
Health and social welfare 172,000 — — — — — 172,000 158,819
Education, culture
and recreation 20,650 — — — — — 20,650 20,265
Parks and recreation 24,242 — — — — — 24,242 6,167
Service district maintenance — — — — — 954,187 954,187 618,344
Primary and secondary education 88,330 12,319,819 — — — — 12,408,149 12,312,485
Capital outlay:
Schools — — — — — 1,567,243 1,567,243 1,991,385
General — — — — 88,024 1,788,372 1,876,396 1,529,490
Debt service:
Principal — — — 6,420,000 — — 6,420,000 6,240,000
Interest — — — 1,138,812 — — 1,138,812 1,322,362
Debt issuance costs — — — 73,841 — — 73,841 —
Total expenditures 6,433,855 12,319,819 — 7,634,012 88,024 5,846,113 32,321,823 31,876,606
Excess (deficiency) of revenues
over expenditures 4,124,843 102,270 2,503,230 (1,301,144) 1,737,044 444,621 7,610,864 6,044,940
Other financing sources (uses):
Proceeds from sale of capital assets 100 — — — — — 100 15,810
Proceeds from issuance of refunding debt — — — 3,855,000 — — 3,855,000 —
Premium on refunding debt — — — 343,517 — — 343,517 —
Payment to bond refunding escrow agent — — — (4,144,995) — — (4,144,995) —
Transfers in — — — 1,186,827 1,322,576 1,102,007 3,611,410 1,845,618
Transfers out (1,665,805) — (1,220,000) — (230,041) (540,564) (3,656,410) (1,845,618)
Net other financing
sources (uses)(1,665,705) — (1,220,000) 1,240,349 1,092,535 561,443 8,622 15,810
Change in fund balances 2,459,138 102,270 1,283,230 (60,795) 2,829,579 1,006,064 7,619,486 6,060,750
Fund balances, beginning of
year, as previously reported 20,310,145 (511,307) 41,547,395 419,519 445,093 — 20,158,568 82,369,413 76,308,663
Change with financial reporting entity
(major to nonmajor fund)— — — — (445,093) — 445,093 — —
(nonmajor to major fund)— — — — — 9,459,040 (9,459,040) — —
Fund balances (deficit), at beginning of
year, as adjusted 20,310,145 (511,307) 41,547,395 419,519 9,459,040 11,144,621 82,369,413 76,308,663
Fund balances (deficit), at end of year $ 22,769,283 (409,037) 42,830,625 358,724 12,288,619 12,150,685 89,988,899 82,369,413
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, 2025
(With summarized financial information for the year ended June 30, 2024)
19
KODIAK ISLAND BOROUGH
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2025
Change in fund balances – total governmental funds $ 7,619,486
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 $1,167,814
Depreciation expense (5,739,271) (4,571,457)
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 (590,790)
Accumulated depreciation of assets disposed — (590,790)
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 380,107
Land sale proceeds 17,957 398,064
Certain revenues that were earned in a prior year provide
current financial resources:
Accrued property tax (280,378)
Land sale contracts (28,696) (309,074)
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 28,927
Issuance of long term debt (4,198,517)
Debt defeasement 4,212,124
Principal repayments 6,420,000
Bond premium amortization 402,282 6,864,816
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 (168)
Change in the proportionate share of the collective
net pension liabilities (68,663)
Change in the proportionate share of the collective net OPEB assets (90,770)
Change in deferred outflows related to pension and OPEB (30,123)
Change in deferred inflows related to pension and OPEB 20,836 (168,888)
Change in net position of governmental activities $
9,242,157
See accompanying notes to financial statements.
of Governmental Funds to the Statement of Activities
20
Municipal Kodiak Other
Solid Waste Fisheries Nonmajor
Collection and Hospital Long Term Research Enterprise Totals
Disposal Facilities Care Center Center Funds 2025 2024
Current assets:
Equity in central treasury $283,883 9,399,312 3,398,872 3,382,045 276,852 16,740,964 14,375,978
Receivables:
Customers 634,630 — — 219,293 35,440 889,363 750,859
Leases — 1,281,914 707,535 453,329 — 2,442,778 2,340,811
Current portion of note receivable — — — 150,954 — 150,954 145,769
Prepaid items 675 — — 338 — 1,013 —
Due from other funds — — — — — — 34,956
Total current assets 919,188 10,681,226 4,106,407 4,205,959 312,292 20,225,072 17,648,373
Restricted cash and equivalents 353,723 — 1,159,190 — — 1,512,913 1,445,574
Leases — 1,347,499 6,335,686 5,342,339 — 13,025,524 15,468,302
Inventories 1,983,002 — — — — 1,983,002 2,130,967
Capital assets:
Non-depreciable 4,787,687 59,860 94,860 406,454 — 5,348,861 7,090,471
Depreciable, net 31,080,234 8,707,295 10,854,345 3,835,022 136,266 54,613,162 56,396,075
Total capital assets 35,867,921 8,767,155 10,949,205 4,241,476 136,266 59,962,023 63,486,546
Notes receivable — — — 443,385 — 443,385 594,338
Net OPEB assets 449,585 — — 86,205 — 535,790 568,238
Total noncurrent assets 38,654,231 10,114,654 18,444,081 10,113,405 136,266 77,462,637 83,693,965
Total assets 39,573,419 20,795,880 22,550,488 14,319,364 448,558 97,687,709 101,342,338
Pension and OPEB deferrals 159,605 — — 30,603 — 190,208 200,977
Total assets and deferred
outflows of resources $39,733,024 20,795,880 22,550,488 14,349,967 448,558 97,877,917 101,543,315
Current liabilities:
Accounts payable $369,319 218,914 — 26,916 117,859 733,008 619,644
Customer deposits 13,959 — — — 7,653 21,612 15,166
Current portion of —
compensate absences 59,240 — — 6,407 — 65,647 29,934
Unearned revenues — 115,356 86,969 15,270 4,900 222,495 222,496
Interest payable 39,230 — 8,916 — — 48,146 52,920
Due to other funds 33,564 102 37 3,467 245 37,415 —
Current portion of notes and bonds payable 1,155,905 — 750,000 — — 1,905,905 1,890,904
Total current liabilities 1,671,217 334,372 845,922 52,060 130,657 3,034,228 2,831,064
Noncurrent liabilities:
Compensated absences 78,817 — — 4,749 — 83,566 78,779
Notes and bonds payable 10,183,044 — 5,605,000 — — 15,788,044 17,693,952
Accrual for landfill closure
and post closure costs 7,769,000 — — — — 7,769,000 7,033,000
Net pension liability 1,044,453 — — 200,269 — 1,244,722 1,220,177
Total noncurrent liabilities 19,075,314 — 5,605,000 205,018 — 24,885,332 26,025,908
Total liabilities 20,746,531 334,372 6,450,922 257,078 130,657 27,919,560 28,856,972
Deferred inflows of resources:
Leases — 2,341,616 6,312,796 5,080,427 — 13,734,839 16,196,166
Pension and OPEB deferrals 16,653 — — 3,193 — 19,846 27,294
Total deferred inflows of resources 16,653 2,341,616 6,312,796 5,083,620 — 13,754,685 16,223,460
Net position:
Net investment in capital assets 24,528,972 8,767,155 4,594,205 4,241,476 136,266 42,268,074 43,901,690
Restricted:
Net OPEB assets 449,585 — — 86,205 — 535,790 568,238
Debt service 353,723 — 1,159,190 — — 1,512,913 1,445,574
Unrestricted (6,362,440) 9,352,737 4,033,375 4,681,588 181,635 11,886,895 10,547,381
Total net position 18,969,840 18,119,892 9,786,770 9,009,269 317,901 56,203,672 56,462,883
Total liabilities, deferred inflows
of resources and net position $ 39,733,024 20,795,880 22,550,488 14,349,967 448,558 97,877,917 101,543,315
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, 2024)
June 30, 2025
Outflows of Resources
Assets and Deferred
Liabilities, Deferred Inflows
21
KODIAK ISLAND BOROUGH
Statement of Revenues, Expenses, and Changes in Net Position
Year ended June 30, 2025
(With summarized financial information for the year ended June 30, 2024)
Municipal Kodiak Other
Solid Waste Fisheries Nonmajor
Collection and Hospital Long Term Research Enterprise
Disposal Facilities Care Center Center Funds 2025 2024
Operating revenues:
Charges for services:
Solid waste disposal $4,117,993 — — — — 4,117,993 4,160,924
Lease income — 1,170,808 765,188 556,955 82,078 2,575,029 2,744,451
Interest revenue — 164,751 370,530 326,807 — 862,088 980,308
Other 17,519 — — — 313,728 331,247 710,677
Total operating revenues 4,135,512 1,335,559 1,135,718 883,762 395,806 7,886,357 8,596,360
Operating expenses:
Personnel services 1,538,627 40,650 — 205,271 15,004 1,799,552 1,377,302
Contracted services 388,988 7,000 — — — 395,988 335,141
Maintenance and repairs 132,219 — — 16,511 15 148,745 350,964
Depreciation 1,268,218 1,188,300 518,933 729,705 34,067 3,739,223 3,594,331
General and administration 457,132 — 29,380 373,535 68,820 928,867 1,214,981
Miscellaneous 282,888 219,820 9,719 147,631 923 660,981 80,132
Telephone services — — — — 312,228 312,228 320,504
Recycling services 353,952 — — — — 353,952 333,936
Closure and post closure costs 883,964 — — — — 883,964 598,921
Contributions 228,993 — — — — 228,993 177,023
Total operating expenses 5,534,981 1,455,770 558,032 1,472,653 431,057 9,452,493 8,383,235
Operating income (loss) (1,399,469) (120,211) 577,686 (588,891) (35,251) (1,566,136) 213,125
Nonoperating revenues (expenses):
Intergovernmental:
State of Alaska 67,231 — — 13,238 — 80,469 13,747
Federal sources 457,966 — — 12,861 — 470,827 —
Investment income 50,555 494,330 237,443 182,919 10,933 976,180 844,893
Interest revenue — — — — — — —
Interest expense (152,598) — (112,953) — — (265,551) (294,791)
Total nonoperating
revenues (expenses)423,154 494,330 124,490 209,018 10,933 1,261,925 563,849
Income (loss) before transfers (976,315) 374,119 702,176 (379,873) (24,318) (304,211) 776,974
Transfers in — — — 45,000 — 45,000 —
Change in net position (976,315) 374,119 702,176 (334,873) (24,318) (259,211) 776,974
Net position, at beginning of year, 19,946,155 17,745,773 9,084,594 9,344,142 342,219 56,462,883 55,685,909
Net position, at end of year $18,969,840 18,119,892 9,786,770 9,009,269 317,901 56,203,672 56,462,883
See accompanying notes to financial statements.
Proprietary Funds - Business - Type Activities - Enterprise Funds
Totals
22
Municipal
Solid Waste Kodiak Other
Collection Long Term Fisheries Nonmajor
and Hospital Care Research Enterprise Totals
Disposal Facilities Center Center Funds 2025 2024
Cash flows from (for) operating activities:
Cash received from customers $4,025,246 1,384,272 1,808,816 1,451,472 400,263 9,070,069 9,138,162
Payments to suppliers (1,933,604) (7,906) (808,349) (1,069,033) (389,029) (4,207,921) (5,599,733)
Payments to employees (1,385,857) (40,650) — (176,758) (15,004) (1,618,269) (1,543,804)
Net cash from (for) operating activities 705,785 1,335,716 1,000,467 205,681 (3,770) 3,243,879 1,994,625
Cash flows from (for) noncapital financing activities:
Federal sources - grants 457,966 — — 12,861 — 470,827 —
Net change in interfund receivable/payable 64,424 102 37 7,475 333 72,371 (34,956)
Transfers in (out)— — — 45,000 — 45,000 —
Net cash from (for) noncapital
financing activities 522,390 102 37 65,336 333 588,198 (34,956)
Cash flows from (for) capital and related
financing activities:
Acquisition and construction of capital assets (197,249) — — (17,451) — (214,700) (1,421,984)
Interest paid on notes and bonds payable (156,951) — (113,374) — — (270,325) (299,368)
Issuance of note payable — — — — — — 1,183,876
Principal payments on notes and bonds payable (1,140,907) — (750,000) — — (1,890,907) (1,870,905)
Net cash (for) capital and
related financing activities (1,495,107) — (863,374) (17,451) — (2,375,932) (2,408,381)
Cash flows from investing activities:
Interest and dividends received 50,555 494,330 237,443 182,919 10,933 976,180 844,893
Net change in cash and
cash equivalents (216,377) 1,830,148 374,573 436,485 7,496 2,432,325 396,181
Cash and equivalents, at beginning of year 853,983 7,569,164 4,183,489 2,945,560 269,356 15,821,552 15,425,371
Cash and equivalents, at end of year $ 637,606 9,399,312 4,558,062 3,382,045 276,852 18,253,877 15,821,552
Reconciliation of cash and cash equivalents
to the Statement of Net Position:
Equity in central treasury $ 283,883 9,399,312 3,398,872 3,382,045 276,852 16,740,964 14,375,978
Restricted cash and equivalents 353,723 — 1,159,190 — — 1,512,913 1,445,574
$637,606 9,399,312 4,558,062 3,382,045 276,852 18,253,877 15,821,552
Reconciliation of operating income (loss) to net
cash from (for) operating activities:
Operating income (loss)$(1,399,469) (120,211) 577,686 (588,891) (35,251) (1,566,136) 213,125
Adjustments to reconcile operating income (loss)
to net cash from (for) operating activities:
Depreciation 1,268,218 1,188,300 518,933 729,705 34,067 3,739,223 3,594,331
Noncash State PERS on-behalf payments 67,231 — — 13,238 — 80,469 13,747
Closure and post closure costs 736,000 — — — — 736,000 340,000
Changes in assets and liabilities that
provided (used) cash:
(Increase) decrease in assets and deferred
outflows of resources:
Customer receivables (116,766) — — (26,196) 4,458 (138,504) (272,972)
Lease receivable — 1,219,521 673,098 448,192 — 2,340,811 1,872,062
Inventories 147,965 — — — — 147,965 183,626
Prepaids (675) — — (338) — (1,013) 4,182
Notes receivable — — — 145,768 — 145,768 140,763
Net pension and OPEB assets 27,227 — — 5,221 — 32,448 2,612
Deferred outflow of resources:—
Pension and OPEB 9,036 — — 1,733 — 10,769 52,770
Increase (decrease) in liabilities and
deferred inflows of resources
Accounts payable (88,758) 218,914 (4,062) (5,687) (7,043) 113,364 (1,733,140)
Customer deposits 6,500 — — (54) — 6,446 (25,744)
Compensated absences 34,930 — — 5,570 — 40,500 (13,591)
Unearned revenues — — — — (1) (1) (1,499)
Net pension and OPEB liabilities 20,596 — — 3,949 — 24,545 (197,797)
Deferred inflow of resources:
Related to bond refundings — — — — — — —
Pension and OPEB (6,250) — — (1,198) — (7,448) (24,242)
Leases — (1,170,808) (765,188) (525,331) — (2,461,327) (2,153,608)
Net cash from (for)
operating activities $705,785 1,335,716 1,000,467 205,681 (3,770) 3,243,879 1,994,625
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, 2024)
Year ended June 30, 2025
23
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
Year Ended June 30, 2025
24
(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, 2025.
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
25
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
26
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 was reported as a major fund in the prior fiscal year.
The fund no longer meets the requirements of a major fund and is reported as a nonmajor fund in
the fiscal year ended June 30, 2025.
The Renewal and Replacement Capital Project Fund accounts for renewal and replacement projects
which will be paid for with property taxes and other various financing sources.
The government reports the following major proprietary funds:
The Municipal Solid Waste Collection and Disposal Fund accounts for the collection and disposal
of solid waste and 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 (KFRC) 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
27
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
28
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
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
29
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
All permanent employees earn and accrue vacation leave and sick leave. A liability is recognized
when it is attributable to services already rendered, it accumulates, and it is more likely than not that
the government will compensate an employee (either as paid time off or cash payment). Unused leave
is accrued utilizing current salary costs as earned by employees, and recorded as a liability in the
government-wide and business-type activities statement of net position.
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
30
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
31
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
32
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 FY2025, the Borough set a mill rate
of 1.15 mills for the General Fund, 6.86 mills for the Education Support Special Revenue Fund, 0.25
mills for the Education Debt Service Fund, and 0.99 mills for the Renewal and Replacement Special
Revenue Fund for a total area wide mill rate of 9.25.
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
33
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
34
(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:
Tourism Development $ 323
Fire and Road Service Areas:
Kodiak Airport Fire District 56
Fire Protection Area No. 1 15,592
Service Area No. 1 36,306
Women’s Bay Road Service Area 90,921
Debt Service Fund - Education 72,048
Enterprise Funds:
Municipal Solid Waste and Collection and Disposal 930,526
Hospital Facilities 71,498
911 Service Fund 3,728
Research Court Apartments 7,402
These excesses were funded by available fund balance or net position.
(b) Deficit Fund Equity
The individual fund deficits at June 30, 2025, are as follows:
Education Support Special Revenue Fund $ 409,037
Womens Bay Road Service Area Special Revenue Fund 27,305
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
35
As of June 30, 2025, 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 $ 45,223,360 8,812,851 31,034,550 5,375,959
Federal Home Loan
Mortgage Corporation 11,943,870 3,958,130 7,985,740 -
Federal Farm Credit Bank 36,025,393 7,228,523 22,806,190 5,990,680
Federal Agriculture
Mortgage Corporation 3,999,120 982,710 3,016,410 -
Federal National Mortgage
Association 6,002,520 - 5,002,360 1,000,160
Corporate Obligations 974,670 974,670 - -
Municipal Obligations 3,029,815 865,313 1,301,622 862,880
$ 107,198,748 22,822,197 71,146,872 13,229,679
Investments measured at amortized cost:
Alaska Municipal League
Investment Pool 4,036,066
Money Market Funds 25,757
Certificates of Deposit 2,244,406
6,306,229
Total investments $ 113,504,977
In addition to the investments listed above, Kodiak Island Borough also had cash equivalents of $13,351,575,
which includes restricted cash of $1,512,913.
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
36
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, 2025:
Total Level 1 Level 2 Level 3
Investments by fair value level:
Debt securities:
U.S. Agency Securities $ 103,194,263 103,194,263 - -
Corporate Obligation 974,670 - 974,670 -
Municipal Obligations 3,029,815 - 3,029,815 -
Total investments at fair
value level $ 107,198,748 103,194,263 4,004,485 -
Investments measured at amortized cost:
Alaska Municipal League
Investment Pool 4,036,066
Money Market Funds 25,757
Certificates of Deposit 2,244,406
Total investments $ 113,504,977
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, 2025, 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 40%
A1 2%
AA 1%
AA+ 48%
AA1 1%
AA2 2%
AA3 1%
Not Rated 5%
100%
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
37
At June 30, 2025, 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, 2025,
the Borough had 91% percent of its investments in U.S. Government Agency Securities and 3% 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, 2025 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, 2025.
(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
38
(5) Receivables
Education Education Renewal and Other
General Support Special Debt Replacement Capital Governmental
Fund Revenue Fund Service Fund Project Fund Funds
Receivables:
Leases $ — — — — —
Grants 196,411 — 205,189 — 66,961
Taxes 412,398 249,698 24,659 30,029 29,842
Interest 955,477 — — — —
Customers and other 24,060 — — — 34,418
Notes receivable — — — — 17,957
Gross receivables 1,588,346 249,698 229,848 30,029 149,178
Less: allowance
for uncollectibles (4,092) (11,428) (1,157) (1,362) (1,332)
Net total receivables $ 1,584,254 238,270 228,691 28,667 147,846
Municipal Kodiak
Total Solid Waste Fisheries
Governmental Collection Hospital Long Term Research
Funds and Disposal Facilities Care Center Center
Receivables:
Leases $ — — 2,629,413 7,043,221 5,795,668
Grants 468,561 — — — —
Taxes 746,626 — — — —
Interest 955,477 — — — —
Customers and other 58,478 634,630 — — 219,293
Notes receivable 17,957 — — — 594,339
Gross receivables 2,247,099 634,630 2,629,413 7,043,221 6,609,300
Less: allowance
for uncollectibles (19,371) — — — —
Net total receivables $ 2,227,728 634,630 2,629,413 7,043,221 6,609,300
Enterprise Funds
Other
Nonmajor Total Total
Enterprise Enterprise Primary
Fund Funds Government
Receivables:
Leases $— 15,468,302 15,468,302
Grants — — 468,561
Taxes — — 746,626
Interest — — 955,477
Customers and other 35,440 889,363 947,841
Notes receivable — 594,339 612,296
Gross receivables 35,440 16,952,004 19,199,103
Less: allowance
for uncollectibles — — (19,371)
Net total receivables $ 35,440 16,952,004 19,179,732
Governmental Funds
Enterprise Funds
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
39
(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, 2025, the principal balance due is $594,339 and the principal amount due within one year is
$150,954. 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, 2025, 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 $ 380,107 - 380,107
Unavailable land sales receivable 17,957 - 17,957
Grant advances prior to expending all proceeds - 4,819,027 4,819,027
Total unavailable/unearned revenue
for governmental funds $ 398,064 4,819,027 5,217,091
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
40
(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, 2025 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 4,539,947 1,141,028 (4,576,066) 1,104,909
Total 27,292,754 1,141,028 (4,576,066) 23,857,716
Capital assets, being depreciated:
Buildings and improvements 196,163,991 3,862,870 - 200,026,861
Improvements other than
buildings 31,428,731 - - 31,428,731
Equipment 5,135,650 26,786 - 5,162,436
Infrastructure 5,816,450 122,406 - 5,938,856
Total 238,544,822 4,012,062 - 242,556,884
Less accumulated depreciation for:
Buildings and improvements 97,245,928 3,869,725 - 101,115,653
Improvements other than
buildings 21,571,720 1,659,934 - 23,231,654
Equipment 2,863,084 170,309 - 3,033,393
Infrastructure 5,726,776 39,303 - 5,766,079
Total 127,407,508 5,739,271 - 133,146,779
Total capital assets
being depreciated, net 111,137,314 (1,727,209) - 109,410,105
Total governmental
activities, net $ 138,430,068 (586,181) (4,576,066) 133,267,821
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
41
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 4,510,216 80,814 (1,454,591) 3,136,439
Total 6,161,464 80,814 (1,454,591) 4,787,687
Capital assets, being depreciated:
Unclassified utility plant in
service 2,178,733 - - 2,178,733
Improvements other than
buildings 32,862,294 1,454,591 - 34,316,885
Machinery and equipment 3,292,003 116,435 - 3,408,438
Total 38,333,030 1,571,026 - 39,904,056
Less accumulated depreciation for:
Unclassified utility plant in
service 1,632,017 42,056 - 1,674,073
Improvements other than
buildings 3,890,386 1,078,058 - 4,968,444
Machinery and equipment 2,033,201 148,104 - 2,181,305
Total 7,555,604 1,268,218 - 8,823,822
Total capital assets
being depreciated, net 30,777,426 302,808 - 31,080,234
Total Municipal Solid
Waste Collection and
Disposal Fund, net $ 36,938,890 383,622 (1,454,591) 35,867,921
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
42
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 418,802 - (385,284) 33,518
Total 445,144 - (385,284) 59,860
Capital assets, being depreciated:
Buildings 35,680,062 385,284 - 36,065,346
Improvements other than
buildings 401,047 - - 401,047
Machinery and equipment 3,558,928 - - 3,558,928
Total 39,640,037 385,284 - 40,025,321
Less accumulated depreciation for:
Buildings 26,249,300 1,172,995 - 27,422,295
Improvements other than
buildings 338,246 12,560 - 350,806
Machinery and equipment 3,542,180 2,745 - 3,544,925
Total 30,129,726 1,188,300 - 31,318,026
Total capital assets
being depreciated, net 9,510,311 (803,016) - 8,707,295
Total Hospital Facilities
Fund, net $ 9,955,455 (803,016) (385,284) 8,767,155
Long Term Care Center Fund:
Capital assets, not being depreciated
Construction in progress $ 94,860 - - 94,860
Capital assets, being depreciated:
Buildings 15,567,986 - - 15,567,986
Less accumulated depreciation for:
Buildings 4,194,708 518,933 - 4,713,641
Total capital assets
being depreciated, net 11,373,278 (518,933) - 10,854,345
Total Long Term Care
Fund, net $ 11,468,138 (518,933) - 10,949,205
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
43
Beginning Increase/ Ending
Balance Transfers Decrease Balance
Kodiak Fisheries Research Center Fund:
Capital assets, not being depreciated
Construction in progress $ 389,003 17,451 - 406,454
Capital assets, being depreciated:
Buildings 17,840,410 - - 17,840,410
Improvements other than
buildings 1,982,897 - - 1,982,897
Machinery and equipment 1,501,764 - - 1,501,764
Total 21,325,071 - - 21,325,071
Less accumulated depreciation for:
Buildings 14,865,247 594,680 - 15,459,927
Improvements other than
buildings 610,575 103,616 - 714,191
Machinery and equipment 1,284,522 31,409 - 1,315,931
Total 16,760,344 729,705 - 17,490,049
Total capital assets
being depreciated, net 4,564,727 (729,705) - 3,835,022
Total Kodiak Fisheries
Research Center Fund,
net $ 4,953,730 (712,254) - 4,241,476
Research Court Apartments Fund:
Capital assets being depreciated:
Buildings $ 1,021,998 - - 1,021,998
Less accumulated depreciation:
Buildings 851,665 34,067 - 885,732
Total Research Court
Apartments Fund, net $ 170,333 (34,067) - 136,266
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
44
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 5,412,881 98,265 (1,839,875) 3,671,271
Total 7,090,471 98,265 (1,839,875) 5,348,861
Capital assets, being depreciated:
Unclassified utility plant in service 2,178,733 - - 2,178,733
Buildings 70,110,456 385,284 - 70,495,740
Improvements other than buildings 35,246,238 1,454,591 - 36,700,829
Machinery and equipment 8,352,695 116,435 - 8,469,130
Total 115,888,122 1,956,310 - 117,844,432
Less accumulated depreciation for:
Unclassified utility plant in service 1,632,017 42,056 - 1,674,073
Buildings 46,160,920 2,320,675 - 48,481,595
Improvements other than buildings 4,839,207 1,194,234 - 6,033,441
Machinery and equipment 6,859,903 182,258 - 7,042,161
Total 59,492,047 3,739,223 - 63,231,270
Total capital assets
being depreciated, net 56,396,075 (1,782,913) - 54,613,162
Total business-type
activities, net $ 63,486,546 (1,684,648) (1,839,875) 59,962,023
Depreciation expense was charged to the departments and functions of the primary government as
follows:
Governmental activities:
General government $ 617,449
Public safety 151,459
Education, culture and recreation 4,970,363
Total – governmental activities $ 5,739,271
Business-type activities:
Municipal solid waste collection and disposal $ 1,268,218
Hospital facilities 1,188,300
Long term care center 518,933
Kodiak fisheries research center 729,705
Research court apartments 34,067
Total – business-type activities 3,739,223
Total primary government $ 9,478,494
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
45
(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,
2025 were as follows:
Transfers In
Transfers Out
Education
Debt Service
Fund
Renewal and
Replacement
Capital
Project Fund
Other
Governmental
Funds
KFRC
Enterprise
Fund Total
General Fund $ 1,186,827 - 478,978 - 1,665,805
Facilities Special Revenue Fund - 1,220,000 - - 1,220,000
Renewal and Replacement
Capital Project Fund - - 230,041 - 230,041
Other Government Funds - 102,576 392,988 45,000 540,564
Total transfers $ 1,186,827 1,322,576 1,102,007 45,000 3,656,410
A summary of significant transfers are as follows:
The General Fund transfers totaled $1,665,805 and included:
1,186,827 to the Education Debt Service Fund to make debt service payments.
$450,000 towards the remediation of the old mental health buildings.
$20,000 to the Fisheries Economic Development project to support local fisheries.
$8,978 to clean up a fuel spill.
The Facilities Special Revenue Fund transferred $1,220,000 to the Renewal and Replacement
Capital Project Fund for future borough and school district repair and replacement needs.
The Renewal and Replacement Capital Project Fund transfers totaled $230,041:
$125,000 for the Mill Bay Beach Stair project.
$105,041 for Tsunami Siren Upgrades.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
46
Other Governmental Fund transfers totaled $540,564 and included:
$75,000 for the Main Elementary Roof Project.
$27,576 for the East Elementary Ceiling Repair Project.
$300,000 for the Middle School Elevator Modernization project.
$26,166 for the Borough Building Roof Repair.
$45,000 from the Tourism Development fund for tourism related expenses at the KFRC
facility.
$34,234 Chiniak School painting project.
$32,588 for the Salonie Creek Culvert Replacement project.
(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
July 1, 2024
Additions
Reductions
Balance
June 30, 2025
Due Within
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 $ 1,110,000 - 1,110,000 - -
$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 4,415,000 - 4,415,000 - -
$1,780,000 2015 Series Three Renewal and
Replacement Bonds, due in a semi-annual
installment of $220,000 plus interest of 5.0%
through October 2025 430,000 - 210,000 220,000 220,000
$1,870,000 2016 Series One A High School
Renovation Bonds, due in semi-annual interest
$95,000 to $130,000 plus interest of 2.0% to
5.0% through August 2035
1,320,000
-
90,000
1,230,000
95,000
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
47
Balance July
1, 2024
Additions Reductions Balance June
30, 2025
Due Within
One Year
Governmental activities, continued:
$5,140,000 2016 Series One B
Renewal and Replacement Bonds,
due in a semi-annual installment of
$660,000 plus interest of 5.0%
through August 2025 $ 1,290,000 - 630,000 660,000 660,000
$4,905,000 2016 Series Three
High School Renovation Bonds,
due in annual installments of
$550,000 to $605,000 plus interest
of 5.0% through December 2027 2,250,000 - 520,000 1,730,000 550,000
$550,000 2018 Series A Bonds,
due in annual installments of $55,000
to $60,000 plus interest of 2.98%
to 3.05% through December 2028 290,000 - 55,000 235,000 55,000
$345,000 2020 Series One A High School
Renovation Bond, due in annual
installments of $35,000 to $45,000
plus interest of 5.0% through
December 2030 260,000 - 30,000 230,000 35,000
$1,855,000 2020 Series One B Bonds
due in annual installments of
$180,000 to $230,000 plus interest
of 5% through December 2030 1,395,000 - 170,000 1,225,000 180,000
$4,070,000 2021 Series One Bonds issued
to partially refund the 2011 Series One
Bonds due in annual installments of
$395,000 to $505,000 plus interest of
5.0% through December 2030 3,045,000 - 375,000 2,670,000 395,000
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
48
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Balance Balance Due Within
July 1, 2024 Additions Reductions June 30, 2025 One Year
Governmental activities, continued:
$4,225,000 2021 Series Two Bonds issued to
partially refund the 2012 Series A and B
Bonds due in annual installments of
$1,375,000 plus interest of 0.698% through
December 2024 $ 1,375,000 - 1,375,000 - -
$14,535,000 2021 Series Three Bonds issued to
partially refund the 2013 Series One
Bonds due in annual installments of
$1,340,000 to $1,515,000 plus interest of
1.032% to 2.22% through December 2032 12,665,000 - 1,330,000 11,335,000 1,340,000
$14,520,000 2021 Series Four Bonds issued to
partially refund the 2014 Series One
Bonds due in annual installments of
$1,410,000 to $1,625,000 plus interest of
1.032 % to 2.352% through December 2033 13,770,000 - 250,000 13,520,000 1,410,000
$3,855,000 2025 Series One Bonds issued to
fully refund the 2015 Series Three Bonds
due in annual installments of $245,000 to
$450,000 plus interest of 5.0% through
December 2035
-
3,855,000
-
3,855,000
245,000
$ 43,615,000 3,855,000 10,560,000 36,910,000 5,185,000
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
49
(b.) Notes and Bonds Payable
As of June 30, 2025, 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, 2025, 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.
$
600,000
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.
$
7,654,147
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.
$
1,312,260
Note payable (ACWF #505071) to Alaska Department of Environmental
Conservation (ADEC), to be paid within 30 years. Interest accrues at
2.2775% 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, 2025, is $255,000. The bond will mature on
December 1, 2026.
$
525,000
As of June 30, 2025, 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 0.243% and 2.222% with payments due on June 1
and December 1 of each year. The current portion as of June 30, 2025,
is $750,000. The bond will mature on December 1, 2032.
$
6,355,000
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
50
(c.) Changes in Long-term Liabilities
Long-term liability activity for the year ended June 30, 2025, was as follows:
For governmental activities, compensated absences are generally liquidated by the General Fund.
Balance Balance
June 30, June 30, Due within
2024 Additions Reductions 2025 one year
Governmental activities:
Bonds payable:
General obligation bonds $ 43,615,000 3,855,000 10,560,000 36,910,000 5,185,000
Bond premium 1,708,825 343,517 474,406 1,577,936 306,093
45,323,825 4,198,517 11,034,406 38,487,936 5,491,093
Net pension liability 3,413,290 68,663 — 3,481,953 —
Compensated absences 342,731 226,511 226,343 342,899 195,741
Total $ 49,079,846 4,493,691 11,260,749 42,312,788 5,686,834
Business-type activities:
Municipal Solid Waste
Collection and Disposal:
Landfill closure and
post-closure costs $ 7,033,000 736,000 — 7,769,000 —
Compensated absences 144,341 38,352 44,636 138,057 59,240
Net pension liability 1,023,857 20,596 — 1,044,453 —
Notes and bonds payable 12,384,357 — 1,109,074 11,275,283 1,124,073
Bond premium 95,499 — 31,833 63,666 31,832
Total $ 20,681,054 794,948 1,185,543 20,290,459 1,215,145
Long Term Care Center:
Bonds payable $ 7,105,000 — 750,000 6,355,000 750,000
Kodiak Fisheries Research
Center:
Net pension liability $ 196,320 3,949 — 200,269 —
Compensated absences 9,433 4,230 2,507 11,156 6,407
Total $ 205,753 8,179 2,507 211,425 6,407
Business-type activities:
Landfill closure and post-
closure costs $ 7,033,000 736,000 — 7,769,000 —
Compensated absences 153,774 42,582 47,143 149,213 65,647
Net pension liability 1,220,177 24,545 — 1,244,722 —
Notes and bonds payable 19,489,357 — 1,859,074 17,630,283 1,874,073
Bond premium 95,499 — 31,833 63,666 31,832
Total $ 27,991,807 803,127 1,938,050 26,856,884 1,971,552
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
51
Annual debt service requirements to maturity for all the Governmental Activities general obligation
bonds outstanding as of June 30, 2025, are as follows:
Year ending
June 30: Principal Interest Total
2026 $ 5,185,000 973,411 6,158,411
2027 4,430,000 814,846 5,244,846
2028 4,545,000 695,460 5,240,460
2029 4,040,000 578,690 4,618,690
2030 4,090,000 468,743 4,558,743
2031-2035 14,040,000 883,176 14,923,176
2036 580,000 13,363 593,363
$ 36,910,000 4,427,689 41,337,689
At June 30, 2025, there was $358,724 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, 2025, are as follows:
Year ending Bonds Payable Notes Payable
June 30: Principal Interest Total Principal Interest Total
2026 $ 1,005,000 132,761 1,137,761 869,073 143,496 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 795,000 60,817 855,817 869,073 91,351 960,424
2031-2035 2,495,000 81,878 2,576,878 5,129,229 270,218 5,399,447
2036-2037 - - - 1,275,689 28,703 1,304,392
$ 6,880,000 544,319 7,424,319 10,750,283 886,041 11,636,324
(The remainder of this page intentionally left blank.)
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
52
(11) Fund Balances
Detailed information related to amounts classified as nonspendable, committed and assigned fund
balances in governmental funds at June 30, 2025 are as follows:
Renewal and
Facilities Education Replacement
Special Debt Capital Other
General Revenue Service Project Governmental
Fund Fund Fund Fund Funds Total
Nonspendable:
Prepaid items $ 175,039 - - - 637 175,676
Restricted:
Commercial Passenger Vessel $ - - - - 123,744 123,744
Committed:
Facility Upgrades - 42,830,625 - - - 42,830,625
Debt Service - - 358,724 - - 358,724
Fire and Road
Service Areas - - - - 4,277,151 4,277,151
Emergency planning - - - - 22,406 22,406
Land Sales - - - - 1,552,879 1,552,879
Buildings and Grounds - - - - 1,289,957 1,289,957
Street Lighting
Districts - - - - 60,795 60,795
Tourism Development - - - - 128,222 128,222
Mission Lake Tide Gate - - - - 70,642 70,642
Opioid Class Action Settlement - - - - 123,593 123,593
Total committed $ - 42,830,625 358,724 - 7,525,645 50,714,994
Assigned:
Capital Projects and
Upgrades $ - - - 12,288,619 4,527,964 16,816,583
(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 $7,769,000 as of June 30, 2025,
which is based on 48.3% usage (filled) of the landfill. The Borough recorded closure/post-closure
expenses of $883,964 of estimated future costs for closure and post-closure costs. The estimated total
current cost of the landfill closure and post closure care of $7,769,000 is based on the amount that
would be paid if the landfill were closed as of June 30, 2025. 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
53
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 $8,250,000.
(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
54
(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, 2025. The lease receivable
at June 30, 2025 was $2,629,413. The Borough has deferred inflows of resources associated
with the lease that will be recognized as revenue over the lease term. At June 30, 2025 the
deferred inflow of resources was $2,341,616.
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 a $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, 2025, were as
follows:
Principal Interest Total
2026 $ 1,281,914 102,358 1,384,272
2027 1,347,499 36,773 1,384,272
Total $ 2,629,413 139,131 2,768,544
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
55
(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, 2025, is $86,969. The Borough received $765,188 in lease payments
for the year ended June 30, 2025. The lease receivable at June 30, 2025 was $7,043,221. The
Borough has deferred inflows of resources associated with the lease that will be recognized as
revenue over the lease term. At June 30, 2025 the deferred inflow of resources was $6,312,796.
The future principal and interest lease payments to be received as of June 30, 2025, were as
follows:
Principal Interest Total
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 863,826 179,802 1,043,628
2031-2034 3,124,558 267,234 3,391,792
Total $ 7,043,221 1,566,711 8,609,932
(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 $65,326.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
56
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 note receivable in the amount of $594,338 as of June 30, 2025.
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 in April 2025 and
expires June 30, 2028. Annual rent is $19,805.
The Borough received $556,955 in lease payments for the year ended June 30, 2025. The lease
receivable at June 30, 2025 was $5,795,668. The Borough has deferred inflows of resources
associated with the leases that will be recognized as revenue over the lease terms. At June 30,
2025 the deferred inflow of resources was $5,080,427.
The future principal and interest lease payments to be received as of June 30, 2025, were as
follows:
Principal Interest Total
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 486,412 183,716 670,128
2031-2035 2,846,982 517,371 3,364,353
2036-2038 561,594 16,389 577,983
Total $ 5,795,668 1,696,489 7,492,157
(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
57
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 36,198
Inactive plan members entitled to but
not yet receiving benefits 4,516
Inactive plan members not entitled to benefits 9,790
Active plan members 7,963
Total plan memberships 58,467
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, 2025 the employer contribution rate is 0.69% for peace officers and firefighters and
0.24% for all other members.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
58
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, 2025 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, 2025 employer contributions were 0.83%.
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, 2024 (latest available report) for the DB Plans for
PERS are: DB Pension 8.75%, ARHCT 8.89%, ODD 9.01%, and RMP is 9.02%.
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
59
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 2.39%):
Long-Term Expected
Asset Class Real Rate of Return
Broad Domestic Equity 5.48%
Global Equity (non-U.S.) 7.14%
Aggregate Bonds 5.79%
Real Assets 2.10%
Private Equity 8.84%
Cash Equivalents 0.77%
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 4.21% as of June 30, 2024.
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, 2014, there were
no constraints or restrictions on the actuarial cost method or other assumptions used in the ARM Board
valuation. Effective July 1, 2014, 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. Effective June 30, 2018, each future year’s unfunded service liability is separately amortized on
a level percent of pay basis over 25 years.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
60
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% 26.76% 4.76%
OPEB 0.00% 0.00% 0.00%
Total PERS contribution rates 22.00% 26.76% 4.76%
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 2025
(measurement period) the past service rate for PERS is 17.88%.
Actuarial Assumptions: The total pension and OPEB liabilities on June 30, 2024 (latest available) were
determined by an actuarial valuation as of June 30, 2023 which was rolled forward to the measurement
date June 30, 2024. 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
61
Healthcare cost trend rates Pre-65 medical: 6.4% grading down to 4.5%
Post-65 medical: 5.4% grading down to 4.5%
Rx/EGWP: 6.9% grading down to 4.5%.
Initial trends rates are for FY2025.
Ultimate trend rates reached in FY2050.
The actuarial assumptions used in the June 30, 2023 actuarial valuation were based on the results of an
actuarial experience study for the period from July 1, 2017 to June 30, 2021. The new demographic and
economic assumptions were adopted by the Board at the June 2022 meeting to better reflect expected
future experience and were effective for the June 30, 2022 actuarial valuation. For the ARHCT and RM
plan, the per capita claims costs were updated to reflect recent experience for the June 30, 2023 actuarial
valuation.
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
62
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, 2025, were:
Pensions
(DB)
Other Post-Employment
Benefits (DB)
Total
$ 522,947 31,645 554,592
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
63
Public Employees Retirement Plans
For the year ended June 30, 2025, the State of Alaska contributed $151,230 (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, 2024 to a total of $312,002, 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, 2025, 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 $ 4,726,675
State’s proportionate share of the net pension liability 1,768,122
Total $ 6,494,797
OPEB
Borough’s proportionate share of the ARHCT OPEB liability (asset) $ (1,901,966)
State’s proportionate share of the ARHCT OPEB liability (asset) (706,673)
Total $ (2,608,639)
Borough’s proportionate share of the ODD OPEB liability (asset) $ (70,210)
Borough’s proportionate share of the RMP OPEB liability (asset) $ (62,418)
Total Borough’s share of net pension and OPEB liabilities and assets $ 2,692,081
The net pension and OPEB liabilities and assets were determined by an actuarial valuation as of June
30, 2023, rolled forward to the measurement date of June 30, 2024 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 FY2026 through FY2039, as determined by projections based
on the June 30, 2023 valuation.
The Borough’s proportionate share and changes in the pension and OPEB liabilities and assets were as
follows:
June 30, 2024 June 30, 2023
Measurement Measurement Change
Pension 0.0862% 0.0894% (0.0032%)
OPEB:
ARHCT 0.0864% 0.0891% 0.0027%
ODD 0.1176% 0.1017% (0.0156%)
RMP 0.1339% 0.1160% (0.0179%)
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
64
Based on the measurement date of June 30, 2024, the Borough recognized pension and OPEB expense
(benefit) of $946,485 and $161,005, respectively, for the year ended June 30, 2025. At June 30, 2025,
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 45,501 -
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions - -
Borough contributions subsequent to the
measurement date 522,947 -
Total $ 568,448 -
OPEB ARHCT
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience $ 1,030 -
Changes of assumptions 51,065 -
Net difference between projected and actual
earnings on OPEB plan investments 28,964 -
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions 10,805 -
Borough contributions subsequent to the
measurement date - -
Total $ 91,864 -
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
65
OPEB ODD
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience $ - (16,448)
Changes of assumptions - (174)
Net difference between projected and actual
earnings on OPEB plan investments 224 -
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions 5,709 (6,116)
Borough contributions subsequent to the
measurement date 7,539 -
Total $ 13,472 (22,738)
OPEB RMP
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience $ 1,571 (6,937)
Changes of assumptions 21,121 (41,960)
Net difference between projected and actual
earnings on OPEB plan investments 881 -
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions 831 (3,727)
Borough contributions subsequent to the
measurement date 24,106 -
Total $ 48,510 (52,624)
$522,947 and $31,645 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, 2026, 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
2025 $ (126,684) (44,015) (4,721) (9,122)
2026 235,843 191,835 (2,111) (282)
2027 (34,813) (30,747) (3,096) (9,705)
2028 (28,845) (25,209) (2,676) (6,849)
2029 - - (1,822) (3,958)
Thereafter - - (2,379) 1,696
Total $ 45,501 91,864 (16,805) (28,220)
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
66
For the year ended June 30, 2025, the Borough recognized ($97,507) and $52,787 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 $ 6,296,375 4,726,675 3,398,331
Net OPEB ARHCT (asset) $ (1,204,295) (1,901,966) (2,489,070)
Net OPEB ODD (asset) $ (65,947) (70,210) (73,551)
Net OPEB RMP (asset) $ 10,813 (62,418) (118,390)
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) $ (2,556,097) (1,901,966) (1,124,902)
Net OPEB ODD (asset) N/A (70,210) N/A
Net OPEB RMP liability (asset) $ (125,777) (62,418) 22,597
Alaska Public Employee Retirement System (PERS) – Defined Contribution Plan (DC)
Plan Description and Funding Requirements. Boroughs 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
8.00% 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): 0.83% for the retiree medical plan (DB), 0.24%
and 0.69% (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
67
The Borough contributed $226,903 for the year ended June 30, 2025, which included forfeitures of
$12,122 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,
2025, were $120,203.
The first plan is managed by Mission Square, formally International City Managers Association
Retirement Corporation (ICMA). $26,803 was contributed to this plan during the year ended June 30,
2025. 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. $34,900 was
contributed to this plan during the year ended June 30, 2025. 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.
$58,500 was contributed to this plan during the year ended June 30, 2025. 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 12, 2025, the date which the
financial statements were available for issue.
(18) Construction Commitments
The Borough has outstanding commitments for construction at year end of $745,368.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
68
(19) Implementation of New Accounting Standard GASB Statement No. 101
During the fiscal year, the Borough implemented the provisions GASB Statement No. 101, Compensated
Absences. This Statement modifies the recognition and measurement of the compensated absences
liability. Prior to the implementation of GASB Statement No. 101, the Borough did not include certain
balances related to sick leave. Under GASB Statement No. 101, all earned, accumulating leave that is
more likely than not to be paid or settled, is included in the measurement of compensated absences.
In accordance with the Standard, the Borough is required to apply the new guidance retroactively by
restating prior reporting periods unless it is not practicable to do so. Management evaluated the
availability of historical information necessary to restate the earliest year presented and determined that
such information was not practicable to obtain and the impact on prior periods was not material. As a
result, the Borough did not restate the earliest year presented. Instead the cumulative effect of
implementing GASB Statement 101 has been reported as an adjustment to beginning net position for the
current fiscal year as follows:
Governmental
Activities
Net position, beginning of year, as previously stated
June 30, 2024 $ 174,018,655
Change in accounting principle:
Compensated absences (98,592)
Net position, beginning of year, as restated $ 173,920,063
Management evaluated the potential liability in the Enterprise Funds under GASB 101 and concluded
that the estimated leave accumulation is not material to the Business-type Activities or Enterprise Fund
financial statements and does not warrant restatement of beginning net position.
(20) Subsequent Accounting Pronouncements
The Governmental Accounting Standards Board has passed several new accounting standards with
upcoming implementation dates covering several topics as follows:
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. 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, 2025
(With financial information for the year ended June 30, 2024)
Variance with
Final Budget –
Budget Positive 2024
Original Final Actual (Negative)Actual
Revenues:
Property taxes and assessments:
Real 1,800,547 1,800,547 1,881,407 80,860 1,677,123
Personal 308,413 308,413 192,709 (115,704) 185,732
Aircraft 25,000 25,000 17,800 (7,200) 23,100
Penalty and interest 250,000 250,000 236,771 (13,229) 228,706
Total property taxes
and assessments 2,383,960 2,383,960 2,328,687 (55,273) 2,114,661
Severance taxes:
Fish 720,000 720,000 751,334 31,334 946,628
Mining 1,500 1,500 14,059 12,559 2,679
Logging 35,000 35,000 21,472 (13,528) 41,263
Total severance taxes 756,500 756,500 786,865 30,365 990,570
Excise taxes -
Tobacco 625,000 625,000 703,712 78,712 804,223
Intergovernmental:
State sources:
State community assistance 302,379 302,379 469,339 166,960 481,596
Fisheries business tax 1,000,000 1,000,000 913,318 (86,682) 1,332,436
Fisheries resource landing tax 70,000 70,000 77,428 7,428 70,620
Electric cooperative tax 17,000 17,000 21,072 4,072 21,265
PERS on-behalf payment 116,792 116,792 104,386 (12,406) 63,657
Marijuana license — — 600 600 300
Total state sources 1,506,171 1,506,171 1,586,143 79,972 1,969,874
Federal sources:
Payments in lieu of taxes 1,631,000 1,631,000 1,960,768 329,768 1,902,885
Fish and Wildlife revenue sharing 180,000 180,000 180,258 258 187,678
American Rescue Plan 2021 — — 354,554 354,554 —
Total federal sources 1,811,000 1,811,000 2,495,580 684,580 2,090,563
Total intergovernmental
revenue 3,317,171 3,317,171 4,081,723 764,552 4,060,437
Charges for services -
Sale of copies and maps — — 310 310 664
Licenses, permits and fees:
Building and trailer permits 55,000 55,000 83,025 28,025 67,488
Subdivision and zoning fees 10,500 10,500 7,580 (2,920) 11,020
Business licenses 400 400 1,200 800 300
Other permits 7,200 7,200 6,441 (759) 6,857
Total licenses, permits and fees 73,100 73,100 98,246 25,146 85,665
Investment income 1,000,000 1,000,000 2,542,384 1,542,384 2,388,036
Other 750 750 16,771 16,021 19,393
Total revenues 8,156,481 8,156,481 10,558,698 2,402,217 10,463,649
(continued)
2025
KODIAK ISLAND BOROUGH
69
Budgetary Comparison Schedule
General Fund, continued
Year ended June 30, 2025
(With financial information for the year ended June 30, 2024)
Variance with
Final Budget –
Budget Positive 2024
Original Final Actual (Negative)Actual
Expenditures:
General government:
General administration $ 319,462 319,462 307,856 11,606 911,825
Borough assembly 263,224 263,224 229,720 33,504 224,295
Borough manager 576,170 476,170 451,410 24,760 421,004
Borough clerk 659,402 659,402 636,664 22,738 599,568
Borough attorney 85,300 85,300 56,789 28,511 36,861
Finance department 836,023 836,023 799,029 36,994 755,532
Management information systems 1,173,999 1,173,999 1,059,235 114,764 1,215,884
Assessing department 1,010,802 1,010,802 873,864 136,938 806,973
Engineering/facilities department 454,526 674,526 675,858 (1,332) 506,135
Total general government 5,378,908 5,498,908 5,090,425 408,483 5,478,077
Public safety - animal control 154,430 154,430 154,430 — 152,310
Community and economic development:
Community development department 773,088 653,088 606,402 46,686 581,877
Building official 190,295 190,295 221,230 (30,935) 196,381
Economic development 20,600 20,600 600 20,000 5,600
Total community and economic
development 983,983 863,983 828,232 35,751 783,858
Emergency preparedness 120,997 120,997 55,546 65,451 17,810
Health and social welfare 170,000 170,000 172,000 (2,000) 158,819
Education, culture and recreation 15,789 15,789 20,650 (4,861) 20,265
Parks and recreation 45,547 45,547 24,242 21,305 6,167
Kodiak College and city libraries 100,000 100,000 88,330 11,670 107,220
Total expenditures 6,969,654 6,969,654 6,433,855 535,799 6,724,526
Excess of revenues
over expenditures 1,186,827 1,186,827 4,124,843 2,938,016 3,739,123
Other financing sources (uses):
Proceeds from sale of capital assets — — 100 100 15,810
Transfers out (1,186,827) (1,636,827) (1,665,805) (28,978) (995,618)
Net other financing sources (uses) (1,186,827) (1,636,827) (1,665,705) (28,878) (979,808)
Change in fund balance $— (450,000) 2,459,138 2,909,138 2,759,315
Fund balance, at beginning of year 20,310,145 17,550,830
Fund balance, at end of the year $ 22,769,283 20,310,145
See accompanying notes to required supplementary information.
2025
KODIAK ISLAND BOROUGH
70
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Special Revenue Fund – Education Support
Year ended June 30, 2025
(With financial information for the year ended June 30, 2024)
Variance with
Final Budget –
Budget Positive 2024
Original Final Actual (Negative)Actual
Revenues:
Property taxes and assessments:
Real $11,345,807 11,345,807 11,272,544 (73,263) 10,703,958
Personal 1,231,658 1,231,658 1,149,545 (82,113) 1,175,907
Total revenues 12,577,465 12,577,465 12,422,089 (155,376) 11,879,865
Expenditures -
Primary and secondary education 12,577,465 12,577,465 12,319,819 257,646 12,205,265
Excess (deficiency) of revenues
over expenditures $— — 102,270 102,270 (325,400)
Fund balance (deficit), at beginning of year (511,307) (185,907)
Fund balance (deficit), at end of year $ (409,037) (511,307)
See accompanying notes to required supplementary information.
2025
71
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Special Revenue Fund – Facilities
Year ended June 30, 2025
(With financial information for the year ended June 30, 2024)
Variance with
Final Budget –
Budget Positive 2024
Original Final Actual (Negative) Actual
Revenues -
Investment income $1,450,000 1,450,000 2,503,230 1,053,230 2,485,396
Expenditures -
Contingencies 230,000 230,000 — 230,000 —
Excess of revenues over
expenditures 1,220,000 1,220,000 2,503,230 1,283,230 2,485,396
Other financing sources (uses):
Transfers out:
Renewal and Replacement
Capital Project Fund (1,220,000) (1,220,000) (1,220,000) — (5,000)
Education Debt Service Fund — — — — (845,000)
Net other financing sources (uses)(1,220,000) (1,220,000) (1,220,000) — (850,000)
Change in fund balance $— — 1,283,230 1,283,230 1,635,396
Fund balance, at beginning of year 41,547,395 39,911,999
Fund balance, at end of year $ 42,830,625 41,547,395
See accompanying notes to required supplementary information.
2025
72
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
0.1143% $ 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%
0.0862% $ 4,726,675 $ 1,768,122 $ 6,494,797 $ 3,282,564 143.99% 67.81%
See accompanying notes to Required Supplementary Information.
2025
2020
2021
2022
KODIAK ISLAND BOROUGH
Public Employees' Retirement System (PERS)
Schedule of Borough's Proportionate Share of the Net Pension Liability
June 30, 2025
Year
2016
2017
2018
2019
2023
2024
73
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 of OPEB
Liability Liability Liability Liability Covered 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%
0.0864% $ (1,901,966) $ (706,673) $ (2,608,639) $ 3,282,564 -57.94% 130.59%
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%
0.1176% $ (70,210) $ - $ (70,210) $ 3,282,564 -2.14% 346.81%
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%
0.1339% $ (62,418) $ - $ (62,418) $ 905,977 -6.89% 119.87%
See accompanying notes to Required Supplementary Information.
2025
2022
2019
2020
2021
2022
2025
2023
2023
2024
KODIAK ISLAND BOROUGH
Schedule of Borough's Proportionate Share of the Net OPEB Liability (Asset)
Public Employees' Retirement System (PERS)
June 30, 2025
Year
2018
2018
2018
2019
2019
2020
2020
2021
2021
2022
2025
2023
2024
2024
74
Contributions
Relative to the Contributions
Contractually Contractually Contribution Borough's as a Percentage
Required Required Deficiency Covered of Covered
Contribution Contribution (Excess) Payroll Payroll
$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%
$ 517,378 $ (522,947) $ (5,569) $ 3,111,782 16.63%
See accompanying notes to Required Supplementary Information.
2025
2020
2022
2021
2016
2017
2018
2019
2023
2024
KODIAK ISLAND BOROUGH
Public Employees' Retirement System (PERS)
Schedule of Borough's Contributions (Pensions)
June 30, 2025
Year
75
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%
$ - $ - $ - $ 3,111,782 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%
$ 7,539 $ (7,539) $ - $ 3,111,782 0.24%
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%
$ 24,106 $ (24,106) $ - $ 590,909 4.08%
See accompanying notes to Required Supplementary Information.
2023
2025
2025
2022
2019
2021
2020
2024
2018
2018
2018
2019
2019
2020
2020
2021
2021
2022
2022
2025
2023
2023
2024
2024
KODIAK ISLAND BOROUGH
Schedule of Borough's Contributions (OPEB)
Public Employees' Retirement System (PERS)
June 30, 2025
Year
76
KODIAK ISLAND BOROUGH
Notes to Required Supplementary Information
June 30, 2025
77
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 2025 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
78
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, 2025,
expenditures exceeded appropriations in the following funds:
General Fund:
General government – engineering/facilities department $ 1,332
Community and economic development – building official 30,935
Health and social welfare 2,000
Education, culture and recreation 4,861
Debt Service Fund – Education
Debt service 72,048
2. Public Employees’ Retirement System
Schedule of Borough’s Proportionate Share of Net Pension and OPEB Liabilities (Assets)
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, 2022 to June 30, 2023
There were no changes in actuarial methods since the prior valuation.
b) Changes in Assumptions Since the Prior Valuation – June 30, 2022 to June 30, 2023
Healthcare claim costs are 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. There were no other changes in actuarial assumptions since the prior
valuation.
c) Changes in Benefit Provisions Since the Prior Valuation – June 30, 2022 to June 30, 2023
There were no changes in benefit provisions since the prior valuation.
Defined Contribution Occupational Death and Disability and Retiree Medical Benefits Plan
a) Changes in Methods Since the Prior Valuation – June 30, 2022 to June 30, 2023
There were no changes in actuarial methods since the prior valuation.
KODIAK ISLAND BOROUGH
Notes to Required Supplementary Information, Continued
79
b) Changes in Assumptions Since the Prior Valuation – June 30, 2022 to June 30, 2023
Healthcare claim costs are 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. There were no other changes in actuarial assumptions since the prior
valuation.
c) Changes in Benefit Provisions Since the Prior Valuation – June 30, 2022 to June 30, 2023
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, 2023 which was rolled forward to June 30, 2024. Actuarially determined
contribution rates are calculated as of June 30th, two years prior to the fiscal year in which contributions are
reported.
SUPPLEMENTARY INFORMATION
Variance with
Final Budget –
Positive 2024
Original Final Actual (Negative)Actual
Revenues:
Property taxes and assessments $458,411 458,411 454,008 (4,403) 424,344
Intergovernmental -
State sources 5,866,052 5,866,052 5,878,860 12,808 5,877,863
Total revenues 6,324,463 6,324,463 6,332,868 8,405 6,302,207
Expenditures:
General government 3,150 3,150 1,359 1,791 3,150
Debt service:
Principal 6,420,000 6,420,000 6,420,000 — 6,240,000
Interest 1,138,814 1,138,814 1,138,812 2 1,322,362
Debt issuance costs — — 73,841 (73,841) —
Total expenditures 7,561,964 7,561,964 7,634,012 (72,048) 7,565,512
Excess (deficiency) of revenues
over expenditures (1,237,501) (1,237,501) (1,301,144) (63,643) (1,263,305)
Other financing sources (uses):
Proceeds from issuance of refunding debt — — 3,855,000 3,855,000 —
Premium on refunding debt — — 343,517 343,517 —
Payment to bond refunding escrow agent — — (4,144,995) (4,144,995) —
Transfers in - General Fund 1,186,827 1,186,827 1,186,827 — 995,618
Net other financing sources (uses) 1,186,827 1,186,827 1,240,349 53,522 995,618
Change in fund balance $(50,674) (50,674) (60,795) (10,121) (267,687)
Fund balance, at beginning of year 419,519 687,206
Fund balance, at end of year $ 358,724 419,519
2025
Budget
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Debt Service Fund - Education
Year ended June 30, 2025
(With summarized financial information for the year ended June 30, 2024)
80
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, 2025
(With summarized financial information at June 30, 2024)
Special Capital
Revenue Project
Assets Funds Funds 2025 2024
Equity in central treasury $ 7,815,308 4,693,096 12,508,404 20,310,358
Receivables:
Federal government — 66,961 66,961 743
Property taxes, net 28,510 — 28,510 37,667
Land sales contracts, due within one year 13,131 — 13,131 12,003
Accounts and other receivables, net 34,418 — 34,418 34,514
Prepaid items 637 — 637 2,569
Due from other funds — — — 4,833
Land sale contracts, due after one year 4,826 — 4,826 16,693
Total assets $ 7,896,830 4,760,057 12,656,887 20,419,380
Liabilities:
Accounts payable $159,527 221,340 380,867 125,196
Customer deposits 20,225 — 20,225 1,450
Due to other funds 45,034 — 45,034 19,466
Unearned revenues 5,157 10,753 15,910 49,300
Total liabilities 229,943 232,093 462,036 195,412
Deferred inflows of resources -
Unavailable revenues 44,166 — 44,166 65,400
Total liabilities and deferred
inflows of resources 274,109 232,093 506,202 260,812
Fund balances:
Nonspendable 637 — 637 2,569
Restricted 123,744 — 123,744 78,097
Committed 7,525,645 — 7,525,645 6,448,725
Assigned — 4,527,964 4,527,964 13,645,187
Unassigned (27,305) — (27,305) (16,010)
Total fund balances 7,622,721 4,527,964 12,150,685 20,158,568
Total liabilities, deferred inflows
of resources and fund balances $7,896,830 4,760,057 12,656,887 20,419,380
Totals
Resources and Fund Balances
Liabilities, Deferred Inflows of
81
KODIAK ISLAND BOROUGH
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
Year ended June 30, 2025
(With summarized financial information for year ended June 30, 2024)
Special Capital
Revenue Project
Funds Funds 2025 2024
Revenues:
Property taxes and assessments $2,038,406 — 2,038,406 3,326,675
Transient accommodations tax 105,265 — 105,265 99,210
Intergovernmental:
State sources 48,949 151,223 200,172 25,348
Federal sources 237,227 2,163,433 2,400,660 13,785
Charges for services 926,421 — 926,421 939,220
Licenses, permits and fees 56,700 — 56,700 55,550
Investment income 454,756 44,977 499,733 442,042
Rentals 15,600 — 15,600 15,600
Land sales 13,420 — 13,420 14,740
Other 30,109 4,248 34,357 44,670
Total revenues 3,926,853 2,363,881 6,290,734 4,976,840
Expenditures:
Current:
General government 622,704 — 622,704 562,407
Public safety 838,284 — 838,284 592,833
Community and economic development 75,323 — 75,323 86,844
Service district maintenance 954,187 — 954,187 618,344
Capital outlay:
Schools — 1,567,243 1,567,243 424,142
General 24,251 1,764,121 1,788,372 1,282,571
Total expenditures 2,514,749 3,331,364 5,846,113 3,567,141
Excess of revenues
over expenditures 1,412,104 (967,483) 444,621 1,409,699
Other financing sources (uses):
Transfers in 118,900 983,107 1,102,007 850,000
Transfers out (421,664) (118,900) (540,564) —
Net other financing sources (uses) (302,764) 864,207 561,443 850,000
Change in fund balances 1,109,340 (103,276) 1,006,064 2,259,699
Fund balances, at beginning of year, as adjusted 6,513,381 4,631,240 11,144,621 17,898,869
Fund balances, at end of year $ 7,622,721 4,527,964 12,150,685 20,158,568
Totals
82
NONMAJOR SPECIAL REVENUE FUNDS
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 Women's
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 $ 1,383,093 1,076,848 62,883 356,258 1,452,378 2,516 62,422 6,828 22,406
Receivables:
Property taxes, net 11,571 729 3,400 887 10,146 1,769 — — —
Land sales contracts, due within one year — — — — — — — — —
Accounts and other receivables, net — — — — — — — — —
Prepaid items 300 — — — — — — — —
Due from other funds — — — — — — — — —
Land sale contracts, due after one year — — — — — — — — —
Total assets $ 1,394,964 1,077,577 66,283 357,145 1,462,524 4,285 62,422 6,828 22,406
Liabilities:
Accounts payable $31,513 3,080 — 683 39,398 30,066 4,608 — —
Customer deposits — 1,450 — — — — — — —
Due to other funds 40,720 — — — — 6 — — —
Unearned revenues 4,157 — — — — — — — —
Total liabilities 76,390 4,530 — 683 39,398 30,072 4,608 — —
Deferred inflows of resources -
Unavailable revenues 10,560 633 3,401 887 9,202 1,518 — — —
Total liabilities and deferred
inflows of resources 86,950 5,163 3,401 1,570 48,600 31,590 4,608 — —
Fund balances:
Nonspendable 300 — — — — — — — —
Restricted — — — — — — — — —
Committed 1,307,714 1,072,414 62,882 355,575 1,413,924 — 57,814 6,828 22,406
Unassigned — — — — — (27,305) — — —
Total fund balances 1,308,014 1,072,414 62,882 355,575 1,413,924 (27,305) 57,814 6,828 22,406
Total liabilities, deferred inflows of
resources and fund balances $ 1,394,964 1,077,577 66,283 357,145 1,462,524 4,285 62,422 6,828 22,406
(continued)
KODIAK ISLAND BOROUGH
Combining Balance Sheet
Nonmajor Special Revenue Funds
(With summarized financial information at June 30, 2024)
June 30, 2025
Liabilities, Deferred Inflows of Resources,
and Fund Balances
State Grant
Program
Assets
Fire and Road Service Areas
Road
83
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 2025 2024
Equity in central treasury $1,551,581 1,355,804 24,611 36,857 102,844 123,744 70,642 123,593 7,815,308 6,634,220
Receivables:
Property taxes, net — — 8 — — — — — 28,510 20,427
Land sales contracts, due within one year 13,131 — — — — — — — 13,131 12,003
Accounts and other receivables, net 9,040 — — — 25,378 — — — 34,418 34,514
Prepaid items — 337 — — — — — — 637 2,569
Due from other funds — — — — — — — — — 4,833
Land sale contracts, due after one year 4,826 — — — — — — — 4,826 16,693
Total assets $1,578,578 1,356,141 24,619 36,857 128,222 123,744 70,642 123,593 7,896,830 6,725,259
Liabilities:
Accounts payable $6,742 42,764 539 134 — — — — 159,527 92,804
Customer deposits — 18,775 — — — — — — 20,225 1,450
Due to other funds — 4,308 — — — — — — 45,034 19,466
Unearned revenues 1,000 — — — — — — — 5,157 49,300
Total liabilities 7,742 65,847 539 134 — — — — 229,943 163,020
Deferred inflows of resources -
Unavailable revenues 17,957 — 8 — — — — — 44,166 48,858
Total liabilities and deferred
inflows of resources 25,699 65,847 547 134 — — — — 274,109 211,878
Fund balances:
Nonspendable — 337 — — — — — — 637 2,569
Restricted — — — — — 123,744 — — 123,744 78,097
Committed 1,552,879 1,289,957 24,072 36,723 128,222 — 70,642 123,593 7,525,645 6,448,725
Unassigned — — — — — — — — (27,305) (16,010)
Total fund balances 1,552,879 1,290,294 24,072 36,723 128,222 123,744 70,642 123,593 7,622,721 6,513,381
Total liabilities, deferred inflows of
resources and fund balances $1,578,578 1,356,141 24,619 36,857 128,222 123,744 70,642 123,593 7,896,830 6,725,259
June 30, 2025
(With summarized financial information at June 30, 2024)
Street Lighting Districts
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Combining Balance Sheet, (continued)
Liabilities, Deferred Inflows of Resources,
and Fund Balances
84
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 $ 850,469 140,571 23,884 64,079 579,568 349,294 18,469 — —
Transient accommodations tax — — — — — — — — —
Intergovernmental:
State sources 5,649 — — — — — — — —
Federal sources 140,854 48,954 — — — — — — —
Charges for services — 20,815 — — — — — — —
Licenses, permits and fees — — — — — 48,300 — — —
Investment income 78,711 57,525 3,929 19,392 89,605 8,632 3,373 388 —
Rentals — 15,600 — — — — — — —
Land sales — — — — — — — — —
Other 850 300 — — — — — — —
Total revenues 1,076,533 283,765 27,813 83,471 669,173 406,226 21,842 388 —
Expenditures:
Current:
General government — — — — — — — — —
Public safety 692,841 124,069 20,956 — — — — — 418
Community and economic
development — — — — — — — — —
Service district maintenance — — — 10,432 517,306 417,521 7,844 — —
Capital outlay - general 24,251 — — — — — — — —
Total expenditures 717,092 124,069 20,956 10,432 517,306 417,521 7,844 — 418
Excess (deficiency) of revenues
over expenditures 359,441 159,696 6,857 73,039 151,867 (11,295) 13,998 388 (418)
Other financing sources (uses):
Transfers in — 25,000 — — — — — — —
Transfers out — — — — — — — — —
Net other financing sources (uses) — 25,000 — — — — — — —
Change in fund balances 359,441 184,696 6,857 73,039 151,867 (11,295) 13,998 388 (418)
Fund balances (deficit), at beginning of year 948,573 887,718 56,025 282,536 1,262,057 (16,010) 43,816 6,440 22,824
Fund balances (deficit), at end of year $1,308,014 1,072,414 62,882 355,575 1,413,924 (27,305) 57,814 6,828 22,406
(continued)
Fire and Road Service Areas
Road
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances (Deficit)
Year ended June 30, 2025
(With summarized financial information for the year ended June 30, 2024)
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
85
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 2025 2024
Revenues:
Property taxes and assessments $ — — 7,339 2,526 — — 2,207 — 2,038,406 1,652,061
Transient accommodations tax — — — — 105,265 — — — 105,265 99,210
Intergovernmental:
State sources — 3,065 — — — 40,235 — — 48,949 25,348
Federal sources — 47,419 — — — — — — 237,227 13,042
Charges for services 8,940 896,666 — — — — — — 926,421 939,220
Licenses, permits and fees 8,400 — — — — — — — 56,700 55,550
Investment income 85,509 80,167 1,473 2,099 7,855 5,412 4,022 6,664 454,756 392,895
Rentals — — — — — — — — 15,600 15,600
Land sales 13,420 — — — — — — — 13,420 14,740
Other 1,090 320 — — — — — 27,549 30,109 44,240
Total revenues 117,359 1,027,637 8,812 4,625 113,120 45,647 6,229 34,213 3,926,853 3,251,906
Expenditures:
Current:
General government 37,109 577,488 6,532 1,575 — — — — 622,704 562,407
Public safety — — — — — — — — 838,284 592,833
Community and economic
development — — — — 75,323 — — — 75,323 86,844
Service district maintenance — — — — — — 1,084 — 954,187 618,344
Capital outlay - general — — — — — — — — 24,251 261,264
Total expenditures 37,109 577,488 6,532 1,575 75,323 — 1,084 — 2,514,749 2,121,692
Excess (deficiency) of revenues
over expenditures 80,250 450,149 2,280 3,050 37,797 45,647 5,145 34,213 1,412,104 1,130,214
Other financing sources (uses):
Transfers in 59,666 34,234 — — — — — — 118,900 5,000
Transfers out — (376,664) — — (45,000) — — — (421,664) —
Net other financing sources (uses) 59,666 (342,430) — — (45,000) — — — (302,764) 5,000
Change in fund balances 139,916 107,719 2,280 3,050 (7,203) 45,647 5,145 34,213 1,109,340 1,135,214
Fund balances (deficit), at beginning 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
Fund balances (deficit), at end of year $1,552,879 1,290,294 24,072 36,723 128,222 123,744 70,642 123,593 7,622,721 6,513,381
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Street Lighting Districts
Combining Statement of Revenues, Expenditures,
Year ended June 30, 2025
and Changes in Fund Balances (Deficit), (continued)
(With summarized financial information for the year ended June 30, 2024)
86
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, 2025
(With financial information for the year ended June 30, 2024)
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 710,500 850,469 139,969 706,693
Intergovernmental:
State sources - PERS on-behalf payment 6,000 5,649 (351) 3,208
Federal sources — 140,854 140,854 6,975
Investment income 15,000 78,711 63,711 65,590
Other — 850 850 542
Total revenues 731,500 1,076,533 345,033 783,008
Expenditures:
Public safety:
Personnel 137,882 129,109 8,773 116,047
Volunteers 51,200 104,117 (52,917) 76,871
Fringe benefits 87,911 95,891 (7,980) 75,909
Professional services 16,000 5,350 10,650 17,458
Support goods and services 313,507 340,562 (27,055) 197,811
Repairs and maintenance 20,000 17,812 2,188 14,889
Total public safety 626,500 692,841 (66,341) 498,985
Capital outlay - general 75,000 24,251 50,749 261,264
Total expenditures 701,500 717,092 (15,592) 760,249
Excess of revenues over
expenditures 30,000 359,441 329,441 22,759
Other financing sources (uses) -
Transfers out - Other Capital Projects
Capital Project Fund 30,000 — (30,000) —
Change in fund balance $60,000 359,441 299,441 22,759
Fund balance, at beginning of year 948,573 925,814
Fund balance, at end of year $ 1,308,014 948,573
2025
87
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Women's Bay Fire Department
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2025
(With financial information for the year ended June 30, 2024)
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 112,500 140,571 28,071 121,585
Intergovernmental - federal sources — 48,954 48,954 6,067
Charges for services 18,000 20,815 2,815 20,252
Investment income 2,000 57,525 55,525 52,157
Rentals 15,600 15,600 — 15,600
Other — 300 300 —
Total revenues 148,100 283,765 135,665 215,661
Expenditures:
Public safety:
Personnel services 2,500 28 2,472 5,733
Fringe benefits 800 50 750 940
Professional services 11,000 1,730 9,270 5,937
Support goods and services 208,800 96,821 111,979 47,736
Repairs and maintenance 25,000 25,440 (440) 13,144
Total expenditures 248,100 124,069 124,031 73,490
Excess (deficiency) of revenues
over expenditures (100,000) 159,696 259,696 142,171
Other financing sources:
Transfers in - Other Capital Projects
Capital Project Fund — 25,000 (25,000) —
.
Change in fund balance $(100,000) 184,696 234,696 142,171
Fund balance, at beginning of year 887,718 745,547
Fund balance, at end of year $ 1,072,414 887,718
2025
88
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, 2025
(With financial information for the year ended June 30, 2024)
2025
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 20,000 23,884 3,884 20,783
Investment income 900 3,929 3,029 3,272
Total revenues 20,900 27,813 6,913 24,055
Expenditures:
Public safety:
Professional services 20,800 20,815 (15) 20,252
Support goods and services 100 141 (41) 106
Total expenditures 20,900 20,956 (56) 20,358
Excess of revenues
over expenditures $— 6,857 6,857 3,697
Fund balance, at beginning of year 56,025 52,328
Fund balance, at end of year $ 62,882 56,025
89
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, 2025
(With financial information for the year ended June 30, 2024)
2025
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 53,230 64,079 10,849 59,145
Investment income — 19,392 19,392 16,980
Total revenues 53,230 83,471 30,241 76,125
Expenditures:
Service district maintenance:
Personnel services 400 31 369 38
Fringe benefits — 14 (14) 13
Support goods and services 2,830 703 2,127 145
Snow removal/sanding 20,000 467 19,533 14,391
Road grading/ditching 10,000 9,217 783 11,761
Repairs and maintenance 20,000 — 20,000 136
Total expenditures 53,230 10,432 42,798 26,484
Excess of revenues
over expenditures $— 73,039 73,039 49,641
Fund balance, at beginning of year 282,536 232,895
Fund balance, at end of year $ 355,575 282,536
90
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, 2025
2025
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 481,000 579,568 98,568 483,167
Investment income — 89,605 89,605 81,886
Other — — — 392
Total revenues 481,000 669,173 188,173 565,445
Expenditures:
Service district maintenance:
Personnel services 8,800 6,056 2,744 5,184
Fringe benefits 2,350 1,147 1,203 719
Support goods and services 24,850 1,731 23,119 6,373
Snow removal/sanding 220,000 122,977 97,023 165,248
Road grading/ditching 60,000 36,111 23,889 14,339
Repairs and maintenance 165,000 349,284 (184,284) 95,787
Total expenditures 481,000 517,306 (36,306) 287,650
Excess of revenues
over expenditures $— 151,867 151,867 277,795
Fund balance, at beginning of year 1,262,057 984,262
Fund balance, at end of year $ 1,413,924 1,262,057
(With financial information for the year ended June 30, 2024)
91
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Women's Bay Road Service Area
Budget and Actual
Year ended June 30, 2025
(With financial information for the year ended June 30, 2024)
2025
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $299,000 349,294 50,294 233,911
Licenses, permits and fees 27,600 48,300 20,700 47,150
Investment income — 8,632 8,632 5,579
Total revenues 326,600 406,226 79,626 286,640
Expenditures:
Service district maintenance:
Personnel services 500 70 430 91
Fringe benefits — 26 (26) 27
Support goods and services 7,100 1,626 5,474 330
Snow removal/sanding 70,000 10,640 59,360 68,775
Road grading/ditching 99,000 158,169 (59,169) 29,301
Repairs and maintenance 150,000 246,990 (96,990) 196,900
Total expenditures 326,600 417,521 (90,921) 295,424
Excess (deficiency) of revenues
over expenditures $— (11,295) (11,295) (8,784)
Fund balance (deficit), at beginning of year (16,010) (7,226)
Fund balance (deficit), at end of year $ (27,305) (16,010)
Schedule of Revenues, Expenditures, and Changes in Fund Balance (Deficit)
92
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 Balance
Budget and Actual
Year ended June 30, 2025
(With financial information for the year ended June 30, 2024)
2025
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $14,500 18,469 3,969 16,768
Investment income — 3,373 3,373 2,779
Total revenues 14,500 21,842 7,342 19,547
Expenditures:
Service district maintenance:
Support goods and services — 632 (632) 104
Snow removal/sanding 3,000 1,004 1,996 6,458
Road grading/ditching 2,700 6,208 (3,508) 1,820
Repairs and maintenance 8,800 — 8,800 312
Total expenditures 14,500 7,844 6,656 8,694
Excess of revenues
over expenditures $— 13,998 13,998 10,853
Fund balance, at beginning of year 43,816 32,963
Fund balance, at end of year $ 57,814 43,816
93
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, 2025
(With financial information for the year ended June 30, 2024)
2025
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Revenues:
Investment income $— 388 388 377
Expenditures — — — —
Excess of revenues
over expenditures $— 388 388 377
Fund balance, at beginning of year 6,440 6,063
Fund balance, at end of year $ 6,828 6,440
94
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2025
(With financial information for the year ended June 30, 2024)
2025
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Revenues $ — — — —
Expenditures:
Public safety:
Professional services 20,000 — 20,000 —
Support goods and services 1,000 418 582 —
Total expenditures 21,000 418 20,582 —
Excess (deficiency) of revenues
over expenditures $(21,000) (418) 20,582 —
Fund balance, at beginning of year 22,824 22,824
Fund balance, at end of year $ 22,406 22,824
L.E.P.C.
95
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, 2025
(With financial information for the year ended June 30, 2024)
2025
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Revenues:
Intergovernmental:
State sources - PERS on behalf payment $2,103 — (2,103) —
Charges for services 5,000 8,940 3,940 4,836
Licenses, permits and fees 8,000 8,400 400 8,400
Investment income — 85,509 85,509 83,554
Land sales 14,339 13,420 (919) 14,740
Other — 1,090 1,090 105
Total revenues 29,442 117,359 87,917 111,635
Expenditures:
General government:
Personnel services 73,919 1,000 72,919 1,000
Professional services 16,103 18,592 (2,489) 27,630
Support goods and services 60,236 17,517 42,719 12,176
Total expenditures 150,258 37,109 113,149 40,806
Excess (deficiency) of revenues
over expenditures (120,816) 80,250 201,066 70,829
Other financing sources:
Transfers in - Other Capital Projects
Capital Project Fund — 59,666 (59,666) —
Change in fund balance $(120,816) 139,916 141,400 70,829
Fund balance, at beginning of year 1,412,963 1,342,134
Fund balance, at end of year $1,552,879 1,412,963
96
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, 2025
(With financial information for the year ended June 30, 2024)
2025
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Revenues:
Intergovernmental:
State sources - PERS on-behalf payment $4,099 3,065 (1,034) 2,028
Federal sources — 47,419 47,419 —
Charges for services 888,141 896,666 8,525 914,132
Investment income — 80,167 80,167 58,916
Other 120 320 200 120
Total revenues 892,360 1,027,637 135,277 975,196
Expenditures:
General government:
School buildings 305,000 26,532 278,468 17,808
Borough building 652,693 473,365 179,328 386,407
Mental health center 187,000 24,364 162,636 53,394
Various borough buildings 130,400 53,227 77,173 56,704
Total expenditures 1,275,093 577,488 697,605 514,313
Excess (deficiency) of revenues
over expenditures (382,733) 450,149 832,882 460,883
Other financing sources (uses):
Transfers in:
Facilities Special Revenue Fund 5,000 — (5,000) 5,000
Other Capital Projects Capital Project Fund — 34,234 34,234 —
Transfers out:
Borough Capital Projects (300,000) (274,088) 25,912 —
Renewal and Replacement Projects
Capital Project Fund — (102,576) (102,576) —
Net other financing sources (uses) (295,000) (342,430) (47,430) 5,000
Change in fund balance $ (677,733) 107,719 785,452 465,883
Fund balance, at beginning of year 1,182,575 716,692
Fund balance, at end of year $ 1,290,294 1,182,575
97
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, 2025
2025
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 6,200 7,339 1,139 6,247
Investment income 400 1,473 1,073 1,419
Total revenues 6,600 8,812 2,212 7,666
Expenditures:
General government -
Support goods and services 6,600 6,532 68 5,868
Excess of revenues
over expenditures $— 2,280 2,280 1,798
Fund balance, at beginning of year 21,792 19,994
Fund balance, at end of year $ 24,072 21,792
(With financial information for the year ended June 30, 2024)
98
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, 2025
(With financial information for the year ended June 30, 2024)
2025
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 2,100 2,526 426 2,110
Investment income 800 2,099 1,299 2,002
Total revenues 2,900 4,625 1,725 4,112
Expenditures:
General government -
Support goods and services 2,900 1,575 1,325 1,420
Excess of revenues
over expenditures $— 3,050 3,050 2,692
Fund balance, at beginning of year 33,673 30,981
Fund balance, at end of year $ 36,723 33,673
99
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, 2025
(With financial information for the year ended June 30, 2024)
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Revenues:
Transient accommodations tax $ 120,000 105,265 (14,735) 99,210
Commercial passenger vessel tax — — — —
Investment income — 7,855 7,855 7,174
Total revenues 120,000 113,120 (6,880) 106,384
Expenditures:
Community and economic development:
Personnel services — — — 6,813
Fringe benefits — — — 4,858
Contributions 75,000 75,000 — 75,000
Support goods and services — 323 (323) 173
Total expenditures 75,000 75,323 (323) 86,844
Excess of revenues
over expenditures $ 45,000 37,797 (7,203) 19,540
Other financing (uses) -
Transfers out - Kodiak Fisheries Research
Center Enterprise Fund (45,000) (45,000) — —
Change in fund balance $— (7,203) (7,203) 19,540
Fund balance, at beginning of year 135,425 115,885
Fund balance, at end of year $ 128,222 135,425
2025
100
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, 2025
(With financial information for the year ended June 30, 2024)
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Revenues:
Intergovernmental - State sources -
Commercial passenger vessel tax $ — 40,235 40,235 20,112
Investment income — 5,412 5,412 3,738
Total revenues — 45,647 45,647 23,850
Expenditures — — — —
Excess of revenues
over expenditures $— 45,647 45,647 23,850
Fund balance, at beginning of year 78,097 54,247
Fund balance, at end of year $ 123,744 78,097
2025
101
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, 2025
(With financial information for the year ended June 30, 2024)
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 1,600 2,207 607 1,652
Investment income 600 4,022 3,422 3,824
Total revenues 2,200 6,229 4,029 5,476
Expenditures:
Service district maintenance:
Personnel services 300 243 57 —
Fringe benefits 280 97 183 —
Support goods and services 205 114 91 92
Repairs and maintenance 1,415 630 785 —
Total expenditures 2,200 1,084 1,116 92
Excess of revenues
over expenditures $— 5,145 5,145 5,384
Fund balance, at beginning of year 65,497 60,113
Fund balance, at end of year $ 70,642 65,497
2025
102
KODIAK ISLAND BOROUGH
Opioid Class Action Settlement
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2025
(With financial information for the year ended June 30, 2024)
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Revenues:
Investment income $ — 6,664 6,664 3,648
Other income 7,052 27,549 20,497 43,081
Total revenues 7,052 34,213 27,161 46,729
Expenditures -
General government:
Support goods and services 7,052 — 7,052 —
Excess of revenues
over expenditures $— 34,213 34,213 46,729
Fund balance, at beginning of year 89,380 42,651
Fund balance, at end of year $ 123,593 89,380
Nonmajor Special Revenue Funds
2025
103
NONMAJOR CAPITAL PROJECT FUNDS
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 State Capital Grants Capital Projects Fund accounts for capital improvement
projects relating to grants received from the State of Alaska.
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 School 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 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, 2025
School Renewal
Borough School Bond State Kodiak High and Replacement Other
Capital Capital Capital School Facilities Bond Capital
Assets Projects Projects Grants Renovation Projects Projects 2025 2024
Equity in central treasury $808,973 164,452 222,863 742,275 573,645 2,180,888 4,693,096 13,676,138
Receivables:
Federal government 16,388 — 50,573 — — — 66,961 743
Property taxes, net — — — — — — — 17,240
Total assets $ 825,361 164,452 273,436 742,275 573,645 2,180,888 4,760,057 13,694,121
Liabilities:
Accounts payable $158,097 — 55,674 — — 7,569 221,340 32,392
Unearned revenues — — 10,753 — — — 10,753 —
Total liabilities 158,097 — 66,427 — — 7,569 232,093 32,392
Deferred inflows of resources -
Unavailable revenues — — — — — — — 16,542
Total liabilities and deferred
inflows of resources 158,097 — 66,427 — — 7,569 232,093 48,934
Fund balances -
Assigned 667,264 164,452 207,009 742,275 573,645 2,173,319 4,527,964 13,645,187
Total liabilities, deferred inflows
of resources and fund balances $ 825,361 164,452 273,436 742,275 573,645 2,180,888 4,760,057 13,694,121
Totals
(With summarized financial information at June 30, 2024)
Liabilities and Fund Balances
104
Year ended June 30, 2025
School Renewal
Borough School Bond State Kodiak High and Replacement Other
Capital Capital Capital School Facilities Bond Capital
Projects Projects Grants Renovation Projects Projects 2025 2024
Revenues:
Property taxes and assessments $— — — — — — — 1,674,614
Intergovernmental:—
State sources — — 151,223 — — — 151,223 —
Federal sources 199,142 — 1,964,291 — — — 2,163,433 743
Investment income — 44,977 — — — — 44,977 49,147
Other — — 4,248 — — — 4,248 430
Total revenues 199,142 44,977 2,119,762 — — — 2,363,881 1,724,934
Expenditures:
Capital outlay:
Schools — — 1,567,243 — — — 1,567,243 424,142
General 510,950 — 1,240,603 — — 12,568 1,764,121 1,021,307
Total expenditures 510,950 — 2,807,846 — — 12,568 3,331,364 1,445,449
Excess (deficiency) of revenues
over expenditures (311,808) 44,977 (688,084) — — (12,568) (967,483) 279,485
Other financing sources (uses):
Transfers in 303,066 — 450,000 — — 230,041 983,107 845,000
Transfers out — — — — — (118,900) (118,900) —
Net other financing sources (uses) 303,066 — 450,000 — — 111,141 864,207 845,000
Change in fund balances (8,742) 44,977 (238,084) — — 98,573 (103,276) 1,124,485
Fund balances, at beginning of year, as adjusted 676,006 119,475 445,093 742,275 573,645 2,074,746 4,631,240 12,520,702
Fund balances, at end of year $ 667,264 164,452 207,009 742,275 573,645 2,173,319 4,527,964 13,645,187
Totals
(With summarized financial information for the year ended June 30, 2024)
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Capital Project Funds
KODIAK ISLAND BOROUGH
105
Research
911 Court Totals
Service Apartments 2025 2024
Current assets:
Equity in central treasury $79,239 197,613 276,852 269,356
Customer receivables 35,440 — 35,440 39,898
Due from other funds — — — 88
Total current assets 114,679 197,613 312,292 309,342
Capital assets -
Depreciable, net — 136,266 136,266 170,333
Total assets $114,679 333,879 448,558 479,675
Current liabilities:
Accounts payable $ 114,679 3,180 117,859 124,902
Customer deposits — 7,653 7,653 7,653
Unearned revenues — 4,900 4,900 4,901
Due to other funds — 245 245 —
Total current liabilities 114,679 15,978 130,657 137,456
Net position:
Net investment in capital assets — 136,266 136,266 170,333
Unrestricted — 181,635 181,635 171,886
Total net position — 317,901 317,901 342,219
Total liabilities and net position $114,679 333,879 448,558 479,675
Assets
Liabilities and Net Position
KODIAK ISLAND BOROUGH
Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2025
(With summarized financial information for June 30, 2024)
106
KODIAK ISLAND BOROUGH
Year ended June 30, 2025
(With summarized financial information for the year ended June 30, 2024)
Research
911 Court Totals
Service Apartments 2025 2024
Operating revenues:
Charges for services -
Lease income $ — 82,078 82,078 89,280
Other 313,728 — 313,728 322,204
Total operating revenues 313,728 82,078 395,806 411,484
Operating expenses:
Personnel services 1,500 13,504 15,004 8,305
Maintenance and repairs — 15 15 631
Depreciation — 34,067 34,067 34,066
General and administration — 68,820 68,820 34,259
Miscellaneous — 923 923 6,632
Telephone services 312,228 — 312,228 320,504
Total operating expenses 313,728 117,329 431,057 404,397
Operating income (loss) — (35,251) (35,251) 7,087
Nonoperating revenues -
Investment income — 10,933 10,933 9,705
Change in net position — (24,318) (24,318) 16,792
Net position, at beginning of year — 342,219 342,219 325,427
Net position, at end of year $— 317,901 317,901 342,219
Nonmajor Enterprise Funds
Combining Statement of Revenues, Expenses, and Changes in Net Position
107
Research
911 Court Totals
Service Apartments 2025 2024
Cash flows from (for) operating activities:
Cash received from customers $318,186 82,077 400,263 408,693
Payments to suppliers (320,151) (68,878) (389,029) (361,512)
Payments to employees (1,500) (13,504) (15,004) (8,305)
Net cash from (for)
operating activities (3,465) (305) (3,770) 38,876
Cash flows from noncapital financing activities:
Net change in interfund receivable/payable — 333 333 (88)
Cash flows from investing activities:
Interest and dividends received — 10,933 10,933 9,705
Net change in cash and
cash equivalents (3,465) 10,961 7,496 48,493
Cash and equivalents, at beginning of year 82,704 186,652 269,356 220,863
Cash and equivalents, at end of year $ 79,239 197,613 276,852 269,356
Reconciliation of cash and cash equivalents
to the Statement of Net Position:
Equity in central treasury $ 79,239 197,613 276,852 269,356
Restricted cash and equivalents — — — —
$79,239 197,613 276,852 269,356
Reconciliation of operating income (loss) to net
cash provided by operating activities:
Operating income (loss)$— (35,251) (35,251) 7,087
Adjustments to reconcile operating income (loss)
to net cash from (for) operating activities:
Depreciation — 34,067 34,067 34,066
Changes in assets and liabilities that
provided (used) cash:
(Increase) decrease in assets:
Customer receivables 4,458 — 4,458 (1,292)
Increase (decrease) in liabilities:
Accounts payable (7,923) 880 (7,043) 514
Unearned revenues — (1) (1) (1,499)
Net cash from (for)
operating activities $ (3,465) (305) (3,770) 38,876
KODIAK ISLAND BOROUGH
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
Year ended June 30, 2025
(With summarized financial information for the year ended June 30, 2024)
108
ENTERPRISE FUNDS
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.
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, 2025
(With financial information for the year ended June 30, 2024)
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Operating revenues:
Solid waste disposal $4,061,000 4,117,993 56,993 4,160,924
Other 3,000 17,519 14,519 17,750
Total operating revenues 4,064,000 4,135,512 71,512 4,178,674
Operating expenses:
Personnel services 1,466,382 1,538,627 (72,245) 1,230,749
Contracted services 570,000 388,988 181,012 334,186
Maintenance, repairs and equipment 210,000 132,219 77,781 145,495
Depreciation 590,623 1,268,218 (677,595) 1,241,939
General and administration 1,277,450 457,132 820,318 781,331
Recycling services 300,000 353,952 (53,952) 333,936
Closure and post closure costs — 883,964 (883,964) 598,921
Contributions 190,000 228,993 (38,993) 177,023
Miscellaneous — 282,888 (282,888) —
Total operating expenses 4,604,455 5,534,981 (930,526) 4,843,580
Operating income (loss)(540,455) (1,399,469) (859,014) (664,906)
Nonoperating revenue (expense):
Intergovernmental:
State of Alaska - PERS on-behalf payment 37,400 67,231 29,831 11,535
Federal sources — 457,966 457,966 —
Investment income 45,000 50,555 5,555 50,673
Interest expense (156,532) (152,598) 3,934 (177,424)
Total nonoperating revenue (expense)(74,132) 423,154 497,286 (115,216)
Income (loss) before transfers (614,587) (976,315) (361,728) (780,122)
Transfers out (600,000) — 600,000 —
Change in net position $ (1,214,587) (976,315) 238,272 (780,122)
Net position, at beginning of year 19,946,155 20,726,277
Net position, at end of year $ 18,969,840 19,946,155
Enterprise Funds
2025
109
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Operating revenues:
Lease income $1,384,272 1,170,808 (213,464) 1,170,808
Interest revenue — 164,751 164,751 224,107
Other revenue — — — 142,896
Total operating revenue 1,384,272 1,335,559 (48,713) 1,537,811
Operating expenses:
Personnel services 40,319 40,650 (331) 44,082
Contracted services 10,000 7,000 3,000 495
Maintenance and repairs — — — 194,469
Depreciation 1,060,092 1,188,300 (128,208) 1,079,523
Miscellaneous 273,861 219,820 54,041 —
Total operating expenses 1,384,272 1,455,770 (71,498) 1,318,569
Operating income (loss)— (120,211) (120,211) 219,242
Nonoperating revenue -
Investment income — 494,330 494,330 406,970
Change in net position $— 374,119 374,119 626,212
Net position, at beginning of year 17,745,773 17,119,561
Net position, at end of year $ 18,119,892 17,745,773
KODIAK ISLAND BOROUGH
Enterprise Funds
2025
Hospital Facilities
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2025
(With financial information for the year ended June 30, 2024)
110
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Operating revenues:
Lease income $765,188 765,188 — 765,187
Interest revenue 110,000 370,530 260,530 403,291
Other — — — 227,827
Total operating revenues 875,188 1,135,718 260,530 1,396,305
Operating expenses:
Personnel services — — — 848
Contracted services 10,000 — 10,000 460
Maintenance and repairs — — — —
Depreciation 41,581 518,933 (477,352) 518,933
General and administration 710,234 29,380 680,854 21,474
Miscellaneous — 9,719 (9,719) 5,307
Total operating expenses 761,815 558,032 203,783 547,022
Operating income 113,373 577,686 464,313 849,283
Nonoperating revenue (expense):
Investment income — 237,443 237,443 211,129
Interest revenue (expense)(113,373) (112,953) 420 (117,367)
Total nonoperating revenue (expense) (113,373) 124,490 237,863 93,762
Change in net position $— 702,176 702,176 943,045
Net position, at beginning of year 9,084,594 8,141,549
Net position, at end of year $ 9,786,770 9,084,594
KODIAK ISLAND BOROUGH
2025
Year ended June 30, 2025
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, 2024)
111
KODIAK ISLAND BOROUGH
Kodiak Fisheries Research Center
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2025
(With financial information for the year ended June 30, 2024)
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Operating revenues:
Lease income $592,950 556,955 (35,995) 719,176
Interest revenue 23,580 326,807 303,227 352,910
Total operating revenues 616,530 883,762 267,232 1,072,086
Operating expenses:
Personnel services 361,496 205,271 156,225 93,318
Maintenance and repairs 25,000 16,511 8,489 10,369
Depreciation — 729,705 (729,705) 719,870
General and administration:
Support goods and services 54,950 19,817 35,133 16,603
Cleaning and janitorial 77,000 47,894 29,106 46,670
Heating 125,000 78,599 46,401 114,525
Electrical 230,000 140,831 89,169 120,829
Plumbing 98,000 83,531 14,469 68,631
Air conditioning 15,000 2,863 12,137 7,853
Elevators 14,000 — 14,000 2,806
Miscellaneous 606,000 147,631 458,369 68,193
Total operating expenses 1,606,446 1,472,653 133,793 1,269,667
Operating income (loss) (989,916) (588,891) 401,025 (197,581)
Nonoperating revenue (expense):
Intergovernmental -
State of Alaska - PERS on-behalf payment 7,265 13,238 5,973 2,212
Federal sources — 12,861 12,861 —
Investment income — 182,919 182,919 166,416
Total nonoperating revenue (expense)7,265 209,018 201,753 168,628
Income (loss) before transfers (982,651) (379,873) 602,778 (28,953)
Transfer in 45,000 45,000 — —
Change in net position $ (937,651) (334,873) 602,778 (28,953)
Net position, at beginning of year 9,344,142 9,373,095
Net position, at end of year $ 9,009,269 9,344,142
Enterprise Funds
2025
112
KODIAK ISLAND BOROUGH
Enterprise Funds
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2025
(With financial information for the year ended June 30, 2024)
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Operating revenues -
Other $310,000 313,728 3,728 322,004
Operating expenses:
Personnel services 1,500 1,500 — 1,500
Telephone services 308,500 312,228 (3,728) 320,504
Total operating expenses 310,000 313,728 (3,728) 322,004
Operating income $— — — —
Net position, at beginning of year — —
Net position, at end of year $ — —
2025
911 Service Fund
113
KODIAK ISLAND BOROUGH
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2025
(With financial information for the year ended June 30, 2024)
Variance with
Final Budget
Final Positive 2024
Budget Actual (Negative)Actual
Operating revenues:
Lease income $ 88,200 82,078 (6,122) 89,280
Other — — — 200
Total operating revenues 88,200 82,078 (6,122) 89,480
Operating expenses:
Personnel services 3,361 13,504 (10,143) 6,805
Maintenance and repairs 5,000 15 4,985 631
Depreciation 34,066 34,067 (1) 34,066
General and administration:
Support goods and services 7,000 5,808 1,192 2,068
Contracted services 10,000 6,745 3,255 4,348
Heating 20,000 10,324 9,676 13,604
Air conditioning — — — 51
Electrical 11,000 5,361 5,639 5,593
Plumbing 13,500 40,582 (27,082) 8,595
Miscellaneous 6,000 923 5,077 6,632
Total operating expenses 109,927 117,329 (7,402) 82,393
Operating income (loss) (21,727) (35,251) (13,524) 7,087
Nonoperating revenue -
Investment income 4,070 10,933 6,863 9,705
Change in net position $(17,657) (24,318) (6,661) 16,792
Net position, at beginning of year 342,219 325,427
Net position, at end of year $ 317,901 342,219
Enterprise Funds
2025
Research Court Apartments
114
SUPPLEMENTARY SCHEDULES
Fiscal Year Principal Interest Total
2026 5,185,000 973,410 6,158,410
2027 4,430,000 814,846 5,244,846
2028 4,545,000 695,460 5,240,460
2029 4,040,000 578,690 4,618,690
2030 4,090,000 468,743 4,558,743
2031 4,205,000 352,056 4,557,056
2032 3,525,000 249,025 3,774,025
2033 3,610,000 159,874 3,769,874
2034 2,150,000 82,917 2,232,917
2035 550,000 39,304 589,304
2036 580,000 13,363 593,363
36,910,000$ 4,427,688$ 41,337,688$
SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS TO MATURITY
KODIAK ISLAND BOROUGH
June 30, 2025
Annual principal and interest requirements on General Obligation Bonds.
115
Fiscal Year
Interest
Rate
Interest Due
October 01
Principal Due
October 01
Interest Due
April 01 Total
2026 5.00%5,500$ 220,000$ -$ 225,500$
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, 2025
2015 Series Three
116
Fiscal Year
Interest
Rate
Interest Due
August 01
Principal Due
August 01
Interest Due
February 01 Total
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
121,338$ 1,230,000$ 101,379$ 1,452,717$
The 2016 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
2016 Series One A
RETIREMENT SCHEDULE
June 30, 2025
117
Fiscal Year
Interest
Rate
Interest Due
August 01
Principal Due
August 01
Interest Due
February 01 Total
2026 5.00%16,500$ 660,000$ -$ 676,500$
The 2016 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 school facility renewal and replacement needs.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2016 Series One B
RETIREMENT SCHEDULE
June 30, 2025
118
Fiscal Year
Interest
Rate
Interest Due
December 01
Principal Due
December 01
Interest Due
June 01 Total
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
87,875$ 1,730,000$ 44,625$ 1,862,500$
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, 2025
119
Fiscal Year
Interest
Rate
Interest Due
December 01
Principal Due
December 01
Interest Due
June 01 Total
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
9,012$ 235,000$ 5,466$ 249,478$
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, 2025
120
Fiscal Year
Interest
Rate
Interest Due
December 01
Principal Due
December 01
Interest Due
June 01 Total
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
21,000$ 230,000$ 15,250$ 266,250$
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, 2025
121
Fiscal Year
Interest
Rate
Interest Due
December 01
Principal Due
December 01
Interest Due
June 01 Total
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
111,500$ 1,225,000$ 80,875$ 1,417,375$
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, 2025
122
Refunding bond - 2021 Series One
Fiscal year Interest rate
Interest due
December 01
Principal due
December 01
Interest due
June 01 Total
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
243,375$ 2,670,000$ 176,625$ 3,090,000$
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, 2025
2021 Series One
123
Refunding bond - 2021 Series Three
Fiscal Year Interest Rate
Interest Due
December 01
Principal Due
December 01
Interest due
June 01 Total
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
505,511$ 11,335,000$ 406,751$ 12,247,262$
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
RETIREMENT SCHEDULE
June 30, 2025
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
124
Refunding bond - 2021 Series Four
Fiscal Year
Interest
Rate
Interest Due
December 01
Principal Due
December 01
Interest Due
June 01 Total
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
702,680$ 13,520,000$ 579,924$ 14,802,604$
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, 2025
2021 Series Four
125
Refunding bond - 2025 Series One
Fiscal Year
Interest
Rate
Interest Due
December 01
Principal Due
December 01
Interest Due
June 01 Total
2026 5.00%124,752$ 245,000$ 90,250$ 460,002$
2027 5.00%90,250 285,000 83,125 458,375
2028 5.00%83,125 300,000 75,625 458,750
2029 5.00%75,625 315,000 67,750 458,375
2030 5.00%67,750 330,000 59,500 457,250
2031 8.00%59,500 345,000 50,875 455,375
2032 5.00%50,875 370,000 41,625 462,500
2033 5.00%41,625 385,000 32,000 458,625
2034 5.00%32,000 405,000 21,875 458,875
2035 5.00%21,875 425,000 11,250 458,125
2036 5.00%11,250 450,000 - 461,250
658,627$ 3,855,000$ 533,875$ 5,047,502$
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. These bonds were refunded (refinanced) in 2025 and are reported as the 2025 Series One
Bonds.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2025 Series One
RETIREMENT SCHEDULE
June 30, 2025
126
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. 127-131
Revenue Capacity
These schedules contain information to help the reader assess the government’s
most significant local revenue source, the property tax. 132-135
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. 136-140
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. 141-147
Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports
for the relevant year.
2016 2017 2018 2019 2020
Governmental activities:
Net investment in capital assets $ 80,747,617 80,857,151 85,569,631 89,375,692 89,442,508
Restricted - - - - -
Unrestricted 47,678,271 48,293,582 46,105,327 50,237,644 53,408,078
Total governmental activities net assets $128,425,888 129,150,733 131,674,958 139,613,336 142,850,586
Business-type activities:
Net investment in capital assets $ 37,381,997 40,098,010 39,508,817 39,405,949 39,561,198
Restricted - - - - -
Unrestricted 12,436,280 9,584,434 10,154,986 11,720,431 13,292,418
Total business-type activities net assets $49,818,277 49,682,444 49,663,803 51,126,380 52,853,616
Primary government:
Net investment in capital assets $ 118,129,614 120,955,161 125,078,448 128,781,641 129,003,706
Restricted - - - - -
Unrestricted 60,114,551 57,878,016 56,260,313 61,958,075 66,700,496
Total primary government net assets $178,244,165 178,833,177 181,338,761 190,739,716 195,704,202
2021 2022 2023 2024 2025
Governmental activities:
Net investment in capital assets $ 86,459,744 88,558,336 89,930,718 93,525,762 95,138,609
Restricted 153,535 47,010 54,247 1,667,671 1,622,548
Unrestricted 56,917,265 67,107,947 73,971,326 78,825,222 86,401,063
Total governmental activities net assets $143,530,544 155,713,293 163,956,291 174,018,655 183,162,220
Business-type activities:
Net investment in capital assets $ 39,849,123 43,543,168 45,387,008 43,901,690 42,268,074
Restricted - - - 568,238 535,790
Unrestricted 12,868,067 10,385,257 10,298,901 11,992,955 13,399,808
Total business-type activities net assets $52,717,190 53,928,425 55,685,909 56,462,883 56,203,672
Primary government:
Net investment in capital assets $ 126,308,867 132,101,504 135,317,726 137,427,452 137,406,683
Restricted 153,535 47,010 54,247 2,235,909 2,158,338
Unrestricted 69,785,332 77,493,204 84,270,227 90,818,177 99,800,871
Total primary government net assets $196,247,734 209,641,718 219,642,200 230,481,538 239,365,892
Source: Borough general ledger
Fiscal Year
Fiscal Year
KODIAK ISLAND BOROUGH
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
127
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses
Governmental activities:
General government $ 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 $ 8,610,408
Public safety 798,079 1,028,240 1,256,992 936,083 696,481 690,853 710,205 671,936 574,608 1,161,284
Community and economic development 1,167,367 1,136,303 1,152,197 1,133,265 782,053 779,758 877,503 775,952 846,630 939,849
Emergency preparedness 30,849 35,861 43,038 14,307 4,479 5,257 10,983 16,460 17,810 28,760
Health and social welfare 389,000 233,999 207,500 182,900 157,500 5,257,005 169,647 150,000 158,819 306,846
Education, culture, and recreation 2,996,004 17,562 4,665 70,472 5,790,959 20,397 20,396 20,562 20,265 20,650
Parks and recreation 87,456 30,172 77,186 43,368 32,561 19,560 22,125 12,760 6,167 266,800
Service district maintenance 626,289 475,248 587,707 645,533 786,379 647,976 856,657 700,146 618,344 954,187
Primary and secondary education 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 17,923,796
Interest on long-term debt 3,194,612 3,060,520 2,673,238 2,500,440 2,346,340 1,704,793 751,860 924,391 1,052,310 640,474
Total governmental activities expenses 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 30,853,054
Business-type activities:
Municipal solid waste collection and disposal 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 5,687,579
Hospital facilities 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 1,455,770
Long Term Care Center - 1,128,059 1,008,032 960,008 946,018 1,247,226 670,592 561,395 664,389 670,985
Kodiak Fisheries Research Center 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 1,472,653
911 services 30,417 28,409 255,617 300,060 336,226 301,032 301,236 326,034 322,004 313,728
Research Court Apartments - - - - - 77,483 82,581 78,891 82,393 117,329
Total business-type activities expenses 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 9,718,044
Total primary government expenses 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 40,571,098
Program Revenues
Governmental activities:
Charges for services:
General government $ 682,664 $ 2,874,794 $ 873,043 $ 966,852 $ 1,006,601 $ 942,701 $ 901,717 $ 905,435 $ 1,013,697 $ 1,012,562
Public safety 16,610 14,716 15,366 16,701 8,734 18,657 16,420 35,125 35,852 36,415
Service district maintenance 66,161 111,146 90,450 27,600 27,600 27,600 27,600 27,600 47,150 48,300
Operating grants and contributions 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 6,742,410
Capital grants 3,216,270 885,493 96,698 346,427 294,899 137,918 625,925 140,372 1,808,961 2,348,033
Total governmental activities program revenues 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 10,187,720
Business-type activities:
Charges for services:
Municipal solid waste collection and disposal 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 4,117,993
Hospital facilities 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 1,335,559
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 1,135,718
Kodiak Fisheries Research Center 3,353,718 847,642 818,138 820,167 787,296 499,485 950,570 927,289 1,072,086 883,762
911 services - - - - 49,560 - - - - -
Research Court Apartments - - - - - 70,261 85,518 94,755 89,280 82,078
Operating grants and contributions 428,578 27,799 44,509 27,630 (20,490) 51,958 (37,904) (28,253) 13,747 551,296
Capital grants 11,326 - - - - - - - - -
Total business-type activities program revenues 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 8,106,406
Total primary government program revenues $ 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 $ 18,294,126
Net (expense)/revenue:
Governmental activities $ (19,570,123) $ (19,223,798) $ (18,700,624) $ (16,986,412) $ (22,751,899) $ (28,025,338) $ (8,618,953) $ (18,026,703) $ (19,026,128) $ (20,665,334)
Business-type activities 203,791 (1,509,022) (189,925) 419,700 646,446 (570,705) 1,210,638 1,238,142 (778,596) (1,611,638)
Total primary government net expense $ (19,366,332) $ (20,732,820) $ (18,890,549) $ (16,566,712) $ (22,105,453) $ (28,596,043) $ (7,408,315) $ (16,788,561) $ (19,804,724) $ (22,276,972)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes:
Property taxes $ 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 $ 19,134,610
Severance taxes 3,985,978 1,414,557 1,929,409 1,285,669 1,286,750 1,100,413 1,779,042 1,719,343 1,089,780 892,130
Tobacco excise taxes - - 310,482 425,444 389,725 702,142 683,971 829,274 804,223 703,712
Unrestricted grants and contributions 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 3,622,783
Land sales 1,586,555 325,793 27,955 19,002 12,140 10,118 4,791 5,448 3,456 2,681
Investment earnings 604,274 271,691 281,855 2,196,169 1,454,149 188,577 (2,822,026) 951,821 5,315,474 5,545,347
Other 403,958 23,306 305,983 117,278 470,560 354,048 534,249 741,366 85,244 51,228
Transfers (50,228) (1,134,372) (45,000) (45,000) (45,000) - - - - (45,000)
Transfers - Component Unit - - - - 1,632,815 - - - - -
Extraordinary item 675,246 - - - - - - - - -
Total governmental activities $ 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 $ 29,907,491
Business-type activities:
Investment earnings 236,180 177,851 69,871 622,256 443,602 38,817 (836,242) 126,482 844,893 976,180
Other 203,764 115,556 320,774 375,891 592,188 428,009 317,012 392,860 710,677 331,247
Transfers 50,228 1,134,372 45,000 45,000 45,000 - - - - 45,000
Extraordinary item - (54,590) - - - - - - - -
Total business-type activities 490,172 1,373,189 435,645 1,043,147 1,080,790 466,826 (519,230) 519,342 1,555,570 1,352,427
Total primary government $ 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 $ 31,259,918
Change in Net Position
Governmental activities $ 2,077,375 $ 1,022,782 $ 3,569,879 $ 7,938,378 $ 3,049,318 $ 526,423 $ 12,336,284 $ 8,242,998 $ 10,062,364 $ 9,242,157
Business-type activities 693,963 (135,833) 245,720 1,462,847 1,727,236 (103,879) 691,408 1,757,484 776,974 (259,211)
Total primary government $2,771,338 $886,949 $3,815,599 $9,401,225 $4,776,554 $422,544 $13,027,692 $10,000,482 $10,839,338 $8,982,946
KODIAK ISLAND BOROUGH
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
128
2016 2017 2018 2019 2020
General Fund:
Nonspendable $26,272 $32,349 $37,885 $ 37,885 $ 57,926
Unassigned 3,259,509 2,284,775 3,151,059 3,151,069 6,120,644
Total General Fund $3,285,781 $2,317,124 $3,188,944 $3,188,954 $6,178,570
All other governmental funds
Nonspendable $181,191 $419,212 $4 $ 1,311 $ -
Restricted - - - - -
Committed 43,081,680 4,502,105 43,846,363 45,862,404 46,186,064
Assigned 11,312,217 3,073,997 5,411,992 5,899,049 7,393,442
Unassigned (1,871,193) (122,678) (126,614) (877,704) (926,989)
Total all other governmental funds $52,703,895 $7,872,636 $49,131,745 $50,885,060 $52,652,517
2021 2022 2023 2024 2025
General Fund:
Nonspendable $33,149 $45,790 $ 120,671 $ 210,785 $ 175,039
Unassigned 7,454,071 8,205,029 17,430,159 20,099,360 22,594,244
Total General Fund $7,487,220 $8,250,819 $17,550,830 $20,310,145 $22,769,283
All other governmental funds
Nonspendable $- $6,048 $1,745 $2,569 $637
Restricted 153,535 47,010 54,247 78,097 123,744
Committed 46,360,958 54,580,464 45,928,606 48,415,639 50,714,994
Assigned 6,828,331 8,650,120 12,966,368 14,090,280 16,816,583
Unassigned - (158,417) (193,133) (527,317) (436,342)
Total all other governmental funds $53,342,824 $63,125,225 $58,757,833 $62,059,268 $67,219,616
KODIAK ISLAND BOROUGH
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
129
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues:
Property taxes and assessments $ 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 19,034,881
Transient accommodations tax 95,466 108,050 113,486 78,971 62,829 50,983 101,447 122,016 99,210 105,265
Intergovernmental:
State sources 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 7,665,175
Federal sources 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 4,929,617
Severance taxes 1,491,089 1,306,507 1,815,923 1,206,698 1,223,921 1,049,430 1,677,595 1,597,327 990,570 786,865
Tobacco excise taxes — — 310,482 425,444 389,725 702,142 683,971 829,274 804,223 703,712
Licenses, permits, fees, and other local revenues 774,225 3,014,816 992,759 1,023,153 1,057,335 1,002,408 945,737 968,160 1,096,699 1,097,277
Land sale 110,428 145,820 224,902 76,676 28,903 62,805 15,440 15,540 14,740 13,420
Other revenues 45,422 9,146 290,343 95,463 533,239 340,598 534,249 730,209 69,434 51,128
Investment earnings 648,987 271,691 281,855 2,196,169 1,454,149 188,577 (2,822,026) 951,821 5,315,474 5,545,347
Total revenues 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 39,932,687
Expenditures:
General government 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 5,714,488
Public safety 572,839 699,118 2,001,538 714,826 635,865 546,055 543,862 725,305 745,143 992,714
Community and economic development 1,069,639 1,096,928 1,177,198 1,183,798 885,179 907,656 962,935 944,084 870,702 903,555
Emergency preparedness 30,849 35,861 43,038 14,307 4,479 5,257 10,983 16,460 17,810 55,546
Health and social welfare 389,000 233,999 207,500 182,900 157,500 5,257,005 169,647 150,000 158,819 172,000
Education, culture, and recreation 23,949 17,562 4,665 20,472 20,447 20,397 20,396 20,562 20,265 20,650
Parks and recreation 87,456 30,172 77,186 57,096 32,561 19,560 22,125 12,760 6,167 24,242
Service district maintenance 626,289 475,248 587,707 569,610 786,366 647,976 856,657 700,146 618,344 954,187
Primary and secondary education 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 12,408,149
Capital outlay:
Schools 13,240,920 3,936,147 2,958,053 2,092,006 555,253 367,008 137,568 461,278 1,991,385 1,567,243
General 3,430,975 1,086,817 826,432 991,403 1,049,466 803,272 516,580 686,810 1,529,490 1,876,396
Community Development — — — — — 25,540 551,514 — — —
Debt service:
Principal 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 6,420,000
Interest 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 1,138,812
Other charges - bond issuance costs 124,372 64,313 — 10,000 — 251,851 — — — 73,841
Total expenditures 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 32,321,823
Excess of revenues over (under) expenditures (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 7,610,864
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 — — — 343,517
Refunding bonds issued — — — — — 37,350,000 — — — 3,855,000
Payment to refunded bond escrow agent — (5,934,301) — — — (37,981,510) — — — (4,144,995)
Bond refunding issuance cost — — — — — — — — — —
Proceeds from sale of assets — 140,000 1,240 9,815 — — — 11,157 15,810 100
Insurance proceeds 403,958 — — — — — — — — —
Transfers in 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 3,611,410
Transfers out (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) (3,656,410)
Transfers in - Component unit — — — — 1,632,815 — — — —
Total other financing sources(uses) 17,494,845 (1,217,468) (43,760) 514,815 1,587,815 2,909,735 — 11,157 15,810 8,622
Net change in fund balances $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 7,619,486
Debt service as a percentage of noncapital expenditures % 23.80 % 26.84 % 28.08 % 30.20 % 29.24 % 26.23 % 28.82 % 28.32 % 26.72 % 24.26
KODIAK ISLAND BOROUGH
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
130
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
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
2025 3,819,264 98,246 4,081,723 2,542,384 — 17,081 10,558,698
(a) Includes General Fund only.
Source: Borough general ledger.
131
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
$ 1,084,317,572 $ 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
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
2025 1,665,595,529 1,781,141,529 168,049,093 178,446,300 1,833,644,622 1,959,587,829 9.25 93.57
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.
2022
2023
Fiscal
2019
2020
2021
2016
2017
2018
$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
$2,000,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Last Ten Years Assessed Values
132
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 Women's Protection Womens
June 30, Rate Fund Service Replacement Kodiak Area Area Area Bay District 1 Road Bay Area No. 1 Bay Airport
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
2025 1.15 6.86 0.25 0.99 2.00 0.10 0.15 0.25 1.99 1.50 1.47 3.25 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)
133
KODIAK ISLAND BOROUGH
Property Tax Levies and Collections
Last Ten Fiscal Years
Collections
in Subsequent
Years Amount
2016 $ 15,261,029 $ 15,032,113 98.5 $ 223,231 $ 15,255,344 100.0
2017 16,642,674 16,554,392 99.5 75,180 16,629,572 99.9
2018 17,069,728 16,809,461 98.5 245,765 17,055,226 99.9
2019 17,699,787 17,462,634 98.7 220,225 17,682,859 99.9
2020 18,055,528 17,809,122 98.6 223,310 18,032,432 99.9
2021 18,431,128 18,243,706 99.0 159,049 18,402,755 99.8
2022 (a) 18,909,337 18,915,116 100.0 (32,928) 18,882,188 99.9
2023 (a) 19,173,229 19,137,935 99.8 (762) 19,137,173 99.8
2024 (a) 19,376,260 19,195,261 99.1 41,739 19,237,000 99.3
2025 $ 20,636,430 $ 20,473,008 99.2 $ — $ 20,473,008 99.2
Source: Borough general ledger.
(a) Assessed taxable values as reported in this schedule are prior to any adjustments made for the levied tax year.
June 30,
Ended
Fiscal Year
Collected within the
Fiscal Year of the Levy Total Collections to DateTaxes Levied
for the
Fiscal Year
Percentage
of LevyAmount of Levy
Percentage
134
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
PSK Real Estate LLC $ 71,305,800 1 4.5% $ — —
Matson Navigation 49,765,500 2 3.1% 41,599,900 2 3.5%
Silver Bay Seafoods 31,996,900 3 2.0% — —
Kodiak Area Native Association 30,624,230 4 1.9% — —
Ocean Beauty Seafoods 24,952,300 5 1.6% 35,626,000 3 3.0%
GCI Holdings LLC 16,308,800 6 1.0% 9,144,400 8 0.8%
North Pacific Seafoods 15,550,000 7 1.0% 21,024,700 4 1.8%
Island Holdings LLC 15,399,400 8 1.0% — —
Wal-Mart / Sam's Club 13,902,200 9 0.9% 9,750,200 7 0.8%
Mill Bay Plaza Assoc Ltd 12,856,400 10 0.8% 11,641,800 6 1.0%
Int'l Seafoods of Alaska — — — 20,862,000 5 1.7%
Trident Seafoods Corp — — — 73,267,600 1 6.1%
Island Fish Co. LLC — — — 6,779,100 9 0.6%
Koncor Forest Products — — — 6,151,700 10 0.5%
Total $ 282,661,530 17.8% $ 235,847,400 19.8%
Source: Borough tax records.
2025 2016
135
Net
Total Taxable Net Debt Per
Fiscal Assessed Bonded Per Assessed
Year Population Value Debt Capita Value
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%
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%
2025 12,570 (b) 1,833,644,622 38,487,936 3,062 2.10%
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.
2022
2023
KODIAK ISLAND BOROUGH
Ratios of Net Bonded Debt
Last Ten Fiscal Years
2020
2021
2019
2016
2017
2018
136
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 $ 38,487,936 100% $ 38,487,936
City of Kodiak:
General obligation bonds 4,943,638 0% —
Total $43,431,574 $38,487,936
(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, 2025
137
2016 2017 2018 2019 2020
Taxable Assessed value $ 1,202,877,172 1,312,339,398 1,342,823,899 1,389,969,625 1,424,752,775
Plus exempt property 77,488,300 87,253,178 84,804,178 94,213,878 93,464,878
Total $ 1,280,365,472 1,399,592,576 1,427,628,077 1,484,183,503 1,518,217,653
2021 2022 2023 2024 2025
Taxable Assessed value $ 1,455,827,742 1,494,747,221 1,516,642,748 1,591,237,690 1,833,644,622
Plus exempt property 92,127,978 96,331,378 106,750,078 108,820,900 116,341,500
Total $ 1,547,955,720 1,591,078,599 1,623,392,826 1,700,058,590 1,949,986,122
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
138
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
$ 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
6,035,000 1,531,316 7,566,316 11,390,799 66.4
2024 6,240,000 1,322,362 7,562,362 5,744,718 131.6
2025 6,420,000 1,138,812 7,558,812 8,099,560 93.3
(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.
2016
2017
2018
2022
2023
2019
2021
2020
139
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
$ 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 6.44% 5,102
38,487,936 — 6,880,000 10,813,949 56,181,885 * 4,470
Note: Detail regarding the Borough's outstanding debt can be found in the notes to the financial statements.
* Information not available at report time.
2025
2024
Last Ten Fiscal Years
Fiscal
Year
2023
2022
Governmental Activities Business-type Activities
2020
2021
2018
2017
2016
2019
140
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)
2016 13,790 $ 808,036,000 $ 58,596 2,437 5.0
2017 13,563 818,860,000 60,375 2,386 4.6
2018 13,287 853,258,000 64,218 2,437 4.8
2019 13,136 862,827,000 65,684 2,395 4.2
2020 13,001 872,896,000 67,141 2,315 4.4
2021 12,611 889,288,000 70,517 2,297 3.9
2022 12,900 910,664,000 70,594 2,275 3.9
2023 12,832 962,787,000 75,030 2,254 3.0
2024 12,721 1,008,265,455 79,260 2,109 3.6
2025 12,570 * * 2,040 3.2
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
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Borough Population and Student Count
Population (a)School Enrollment (b)
141
Fiscal Year 2016 Fiscal Year 2017 Fiscal Year 2018 Fiscal Year 2019
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 6,154 $ 3,292 6,294 $ 3,540 6,037 $ 3,585 5,967 $ 3,816
Private Ownership 4,721 3,118 4,867 3,407 4,578 3,433 4,511 3,714
Total Government 1,433 3,867 1,427 3,995 1,460 4,060 1,455 4,134
Private Goods-Producing 2,012 2,766 1,934 3,318 1,636 3,067 1,637 3,651
Private Service-Providing 2,710 3,378 2,933 3,466 2,942 3,637 2,875 3,748
Fiscal Year 2020 Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023
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 5,706 $ 3,887 5,369 $ 3,951 5,548 $ 4,303 5,433 $ 4,760
Private Ownership 4,118 3,758 3,834 3,837 4,019 4,226 3,827 4,921
Total Government 1,588 4,222 1,535 4,236 1,530 4,504 1,605 4,379
Private Goods-Producing 1,524 3,665 1,384 3,633 1,440 4,328 1,337 5,369
Private Service-Providing 2,594 3,812 2,449 3,954 2,578 4,171 2,490 4,681
Fiscal Year 2024 Fiscal Year 2025
Average Average Average Average
Monthly Monthly Monthly Monthly
Employment Earnings Employment Earnings
Total Industries 5,629 $ 4,839 5,572 $ 5,033
Private Ownership 4,080 4,849 4,138 5,095
Total Government 1,550 4,808 1,434 4,855
Private Goods-Producing 1,497 5,146 1,444 5,299
Private Service-Providing 2,583 4,677 2,694 4,986
KODIAK ISLAND BOROUGH
Average Monthly Employment & Earnings
Last Ten Fiscal Years
142
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
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 216 143 93 94 91 85 68 58 87 86
Value of buildings (thousands) 10,866 11,793 7,331 19,324 14,148 7,736 7,938 11,391 10,578 14,384
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 3
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) 200 206 206 189 192 196 214 236 190 199
Number of teachers (c) 170 177 210 193 185 190 217 228 218 219
Number of students (d) 2,437 2,386 2,437 2,395 2,315 2,297 2,275 2,254 2,109 2,040
Number of Municipal Employees 43 44.5 45 41 38 37 39 38 39 38
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
143
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
2016 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
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
2025 20 7,351,407 66 7,033,445 305,037,000 510,066,789 1,217,188,461
Sources: Borough assessing records and City of Kodiak building department and FDIC.
Deposits in
local banks
2019
2017
2018
—
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Deposits in Kodiak Banks
144
2016 2017 2018 2019 2020
Function:
General Government 29 29 29.0 28 25
Community and Economic Development 5 6 6 3 2
Municipal Solid Waste Collection and Disposal 7 8 8 8 9
Kodiak Fisheries Research Center 2 2 2 2 2
Total 43 45 45.0 41 38
2021 2022 2023 2024 2025
Function:
General Government 25 26 25 26 25
Community and Economic Development 2 3 3 4 4
Municipal Solid Waste Collection and Disposal 8 8 8 8 8
Kodiak Fisheries Research Center 2 2 2 1 1
Total 37 39 38 39 38
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
145
KODIAK ISLAND BOROUGH
Operating Indicators by Function
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function
General Government
Elections
Number of registered voters 9,585 9,453 9,357 10,039 10,104 10,258 10,163 10,192 10,072 10,075
Number voting in last election 1,800 2,303 1,692 1,266 1,550 2,084 1,393 1,430 1,811 2,081
Percent of registered voters 19% 24% 18% 13% 15% 20% 20% 14% 18% 21%
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 161 177 128 142 128 110 118 101 116 97
Junk cars removed 21 10 35 79 82 72 43 36 26 14
Primary and secondary education
Number of students 2,437 2,386 2,437 2,395 2,315 2,297 2,275 2,254 2,109 2,040
Number of General Fund certified staff 183 196 206 193 185 190 234 228 218 199
Number of General Fund classified staff 173 187 210 189 192 196 214 236 190 219
Solid waste disposal
Total solid waste disposal in tons 12,876 11,646 11,458 12,882 10,989 10,896 11,250 11,123 11,159 11,061
Baled waste in tons 10,454 9,875 10,396 9,584 9,191 9,821 10,017 9,799 9,859 9,866
Scrap metal in tons 221 190 128 142 173 108 160 207 210 219
Asbestos, cubic yards 219 179 142 348 509 161 66 59 63 35
Source: Borough Finance Department
146
Function program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
GOVERNMENTAL ACTIVITIES
Number of buildings (teacher housing, schools and office buildings)21 20 20 19 19 19 19 19 19 19
Vehicles 11 14 13 13 13 12 12 27 26 27
Inactive School building n/a n/a n/a 1 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
10 11 13 12 12 12 12 11 11
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
224 224 224 224 224 224 224 224 224
1 1 1 1 1 1 1 1 1
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
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
Number of fire stations
Number of Swimming Pools
Kodiak Island Research Facilities (marine research)
Dorm facility (6 apartments)
Parks (number of acres)
Facilities:
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
147
KODIAK ISLAND BOROUGH
ALASKA
Federal and State Single Audit Reports
and Supplementary Information
Year Ended June 30, 2025
KODIAK ISLAND BOROUGH
ALASKA
Federal and State Single Audit Reports
and Supplementary Information
Year Ended June 30, 2025
KODIAK ISLAND BOROUGH
Table of Contents
Pages
Report Required Under Government Auditing Standards
Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance
with Government Auditing Standards 1-2
Report and Schedules Required by the Uniform Guidance
Report on Compliance For Each Major Federal Program; Report on Internal Control
Over Compliance; and Report on the Schedule of Expenditures of Federal
Awards Required by the Uniform Guidance 3-6
Schedule of Expenditures of Federal Awards 7
Notes to the Schedule of Expenditures of Federal Awards 8
Federal Schedule of Findings and Questioned Costs 9-10
Report and Schedules Required Under State of Alaska Single Audit Guide
and Compliance Supplement
Report on Compliance for Each Major State Program; Report on Internal
Control Over Compliance; and Report on the Schedule of State Financial
Assistance Required by the State of Alaska Audit Guide and Compliance
Supplement for State Single Audits 11-14
Schedule of State Financial Assistance 15
Notes to the Schedule of State Financial Assistance 16
State Schedule of Findings and Questioned Costs 17
REPORT REQUIRED UNDER
GOVERNMENT AUDITING STANDARDS
1
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
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based
on an Audit of Financial Statements Performed in Accordance with Government Auditing
Standards
Independent Auditor’s Report
The Honorable Mayor
and Members of the Assembly
Kodiak Island Borough
Kodiak, Alaska
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the 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 Kodiak Island Borough, as of and for the year ended June 30,
2025, and the related notes to the financial statements, which collectively comprise Kodiak Island
Borough’s basic financial statements, and have issued our report thereon dated December 12, 2025.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered Kodiak Island Borough’s
internal control over financial reporting (internal control) as a basis for designing audit procedures that
are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of Kodiak Island
Borough’s internal control. Accordingly, we do not express an opinion on the effectiveness of Kodiak
Island Borough’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
The Honorable Mayor and
Members of the Assembly
Kodiak Island Borough
2
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given the limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether Kodiak Island Borough’s financial statements are
free from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the financial statements. However, providing an opinion on compliance with those provisions was
not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of Kodiak Island Borough’s
internal control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Anchorage, Alaska
December 12, 2025
REPORT AND SCHEDULES REQUIRED
BY THE UNIFORM GUIDANCE
3
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
Report on Compliance For Each Major Federal Program; Report on Internal Control Over
Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the
Uniform Guidance
Independent Auditor’s Report
The Honorable Mayor
and Members of the Assembly
Kodiak Island Borough
Kodiak, Alaska
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited Kodiak Island Borough’s compliance with the types of compliance requirements
identified as subject to audit in the OMB Compliance Supplement that could have a direct and material
effect on each of Kodiak Island Borough’s major federal programs for the year ended June 30, 2025.
Kodiak Island Borough’s major federal programs are identified in the summary of auditor’s results
section of the accompanying Federal Schedule of Findings and Questioned costs.
Kodiak Island Borough’s basic financial statements include the operations of Kodiak Island Borough
School District, which expended $6,116,852 in federal awards which is not included in the Kodiak Island
Borough’s schedule of expenditures of federal awards during the year ended June 30, 2025. Our audit,
described in the Opinion on Each Major Federal Program section, did not included the operations of
Kodiak Island Borough School District because it was subjected to a separate audit performed in
accordance with the Uniform Guidance.
In our opinion, Kodiak Island Borough complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major federal
programs for the year ended June 30, 2025.
The Honorable Mayor and
Members of the Assembly
Kodiak Island Borough
4
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States (Government Auditing
Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in
the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of Kodiak Island Borough and to meet our other ethical responsibilities,
in accordance with 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 opinion on compliance for each
major federal program. Our audit does not provide a legal determination of Kodiak Island Borough’s
compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to Kodiak
Island Borough’s federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion
on Kodiak Island Borough’s compliance based on our audit. 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, Government Auditing Standards, and the Uniform
Guidance will always detect material noncompliance when it exists. The risk of not detecting material
noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Noncompliance with the compliance requirements referred to above is considered material if there is a
substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a
reasonable user of the report on compliance about Kodiak Island Borough’s compliance with the
requirements of each major federal program as a whole.
The Honorable Mayor and
Members of the Assembly
Kodiak Island Borough
5
In performing an audit in accordance with generally accepted auditing standards, Government Auditing
Standards, and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, 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 Kodiak Island Borough’s compliance with the compliance
requirements referred to above and performing such other procedures as we considered necessary
in the circumstances.
Obtain an understanding of Kodiak Island Borough’s internal control over compliance relevant to
the audit in order to design audit procedures that are appropriate in the circumstances and to test
and report on internal control over compliance in accordance with the Uniform Guidance, but not
for the purpose of expressing an opinion on the effectiveness of Kodiak Island Borough’s internal
control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal
control over compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,
or a combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a federal program will not
be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over
compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type
of compliance requirement of a federal program that is less severe than a material weakness in internal
control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies
in internal control over compliance that might be material weaknesses or significant deficiencies in internal
control over compliance. Given these limitations, during our audit we did not identify any deficiencies in
internal control over compliance that we consider to be material weaknesses, as defined above. However,
material weaknesses or significant deficiencies in internal control over compliance may exist that were not
identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control
over compliance. Accordingly, no such opinion is expressed.
The Honorable Mayor and
Members of the Assembly
Kodiak Island Borough
6
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the 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 Kodiak Island
Borough as of and for the year ended June 30, 2025, and the related notes to the financial statements, which
collectively comprise Kodiak Island Borough’s basic financial statements. We issued our report thereon dated
December 12, 2025, which contained an unmodified opinion on those financial statements. Our audit was
performed for the purpose of forming opinions on the financial statements that collectively comprise the basic
financial statements. The accompanying schedule of expenditures of federal awards and accompanying notes
are presented for purposes of additional analysis as required by the Uniform Guidance and are not a required
part of the 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 financial statements. The
information has been subjected to the auditing procedures applied in the audit of the financial statements and
certain additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the financial statements or to the financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the schedule of expenditures of federal awards and accompanying notes are fairly stated
in all material respects in relation to the financial statements as a whole.
Anchorage, Alaska
December 12, 2025
Federal
Assistance Pass-through Program
Listing Entity Identifying or Award Federal
Number Award Number Amount Expenditures
U.S. Department of Agriculture:
Passed through the State of Alaska,
Department of Natural Resources -
Volunteer Fire Capacity 10.664 None $ 10,000 5,843
U.S. Department of the Interior:
Passed through the State of Alaska,
Department of Fish and Game -
Saltery Cove Trail System Access Improvements 15.611 AKW-D-6-2020 405,903 59,098
U.S. Department of the Treasury:
Direct -
COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 SLRFP5509 2,524,709 2,468,655
Passed through the State of Alaska, Department of Commerce,
Community, and Economic Development -
COVID-19 Local Government Lost Revenue Relief 21.027 22-LGLR-21 1,925,939 402,396
Total U.S. Department of the Treasury 4,450,648 2,871,051
U.S. Department of Health and Human Services:
Passed through the State of Alaska, Department of Health:
Healthy and Equitable Communities 93.391 C0622-584-0 130,498 50,936
Healthy and Equitable Communities 93.268 C0622-584-0 130,498 50,937
Total U.S. Department of Health and Human Services 260,996 101,873
National Oceanic and Atmospheric Administration -
Passed through Pacific State Marines Fisheries Commission -
Fisheries Disaster Funds 11.022 None 78,437 78,437
Denali Commission -
Direct -
Kodiak Areawide Solid Waste Plan 90.100 1881-00 250,000 22,411
U.S. Department of Homeland Security:
Passed through the State of Alaska, Department of
Military and Veterans Affairs:
State and Local Cybersecurity Grant 97.137 22SLCGP-GY22 49,500 39,337
Hazard Mitigation Grant 97.039 4585-05-R 89,586 80,455
Hazard Mitigation Grant 97.039 4584-05-MC 4,975 913
Total ALN 97.039 94,561 81,368
Total U.S. Department of Homeland Security 144,061 120,705
Total federal financial assistance $ 5,600,045 3,259,418
Reconciliation to federal source revenues in the Statement of Revenues,
Expenditures and Changes in Fund Balances:
Total Federal financial assistance 3,259,418
Refuge Revenue Sharing payments are not considered to be federal
financial assistance but are classified as federal revenues for
financial statement presentation. 180,258
Payment in Lieu of Taxes are not considered to be federal financial
assistance but are classified as federal revenues for financial
statement presentation. 1,960,768
U.S. Department of the Treasury, COVID-19 Coronavirus State and
Local Fiscal Recovery Funds recorded in the Enterprise Funds (470,827)
$ 4,929,617
See accompanying notes to Schedule of Expenditures of Federal Awards.
KODIAK ISLAND BOROUGH
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2025
Federal Grantor
7
8
KODIAK ISLAND BOROUGH
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2025
Note 1. Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal
award activity of Kodiak Island Borough under programs of the federal government for the year ended June
30, 2025. The information in this Schedule is presented in accordance with the requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a
selected portion of the operations of Kodiak Island Borough, it is not intended to and does not present the
basic financial statements of Kodiak Island Borough.
Note 2. Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein
certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts
shown on the Schedule represent adjustments or credits made in the normal course of business to amounts
reported as expenditures in prior years. Kodiak Island Borough has elected not to use the 10% de minimis
indirect cost rate allowed under the Uniform Guidance.
Note 3. Passed Through Awards
No funding was passed through to subrecipients in the year ended June 30, 2025.
Note 4. Reporting Entity
The Kodiak Island Borough, for purposes of the supplementary schedule of expenditures of federal awards
includes all the funds of the primary government. It does not include the component unit of Kodiak Island
Borough as follows:
The Kodiak Island Borough School District
The Kodiak Island Borough’s basic financial statements include $6,116,852 in federal awards expended
for the Kodiak Island Borough School District, a component unit of the Kodiak Island Borough. These
monies are excluded from this schedule. Separate reports on compliance and internal control dated
November 25, 2025, were issued for the Kodiak Island Borough School District.
9
KODIAK ISLAND BOROUGH
Federal Schedule of Findings and Questioned Costs
Year Ended June 30, 2025
Section I - Summary of Auditor’s Results
Financial Statements
Type of report the auditor issued on whether the financial
statements audited were prepared in accordance with GAAP: Unmodified
Is a going concern emphasis-of-matter paragraph
included in the audit report? Yes X No
Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None reported
Noncompliance material to financial statements noted? Yes X No
Federal Awards
Internal control over major programs (2 CFR 200.516 (a)(1)):
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None reported
Any material noncompliance with provisions of laws,
regulations, contracts, or grant agreements,
related to a major program (2 CFR 200.516 (a)(2))? Yes X No
Type of auditor’s report issued on compliance
for major programs: Unmodified
Any audit findings disclosed that are required to
be reported in accordance with the Uniform Guidance
(2 CFR 200.516 (a) (3) or (4))? Yes X No
Identification of major programs:
Assistance Listing Number(s) Name of Federal Program or Cluster
21.027 COVID-19 Coronavirus State and Local Fiscal
Recovery Funds
KODIAK ISLAND BOROUGH
Federal Schedule of Findings and Questioned Costs, Continued
10
Dollar threshold used to distinguish
between Type A and Type B programs: $ 750,000
Auditee qualified as low-risk auditee? X Yes No
Section II- Financial Statement Findings
The Kodiak Island Borough did not have any findings that relate to the Financial Statements.
Section III - Federal Award Findings and Questioned Costs
The Kodiak Island Borough did not have any findings that relate to Federal Awards.
REPORT AND SCHEDULES REQUIRED
BY THE STATE OF ALASKA AUDIT GUIDE AND
COMPLIANCE SUPPLEMENT
11
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
Report on Compliance For Each Major State Program; Report on Internal Control Over
Compliance; and Report on the Schedule of State Financial Assistance Required by the State of
Alaska Audit Guide and Compliance Supplement for State Single Audits
Independent Auditor’s Report
The Honorable Mayor
and Members of the Assembly
Kodiak Island Borough
Kodiak, Alaska
Report on Compliance for Each Major State Program
Opinion on Each Major State Program
We have audited Kodiak Island Borough’s compliance with the types of compliance requirements
identified as subject to audit in the State of Alaska Audit Guide and Compliance Supplements that could
have a direct and material effect on each of Kodiak Island Borough’s major state programs for the year
ended June 30, 2025. Kodiak Island Borough’s major state programs are identified in the accompanying
Schedule of State Financial Assistance.
Kodiak Island Borough’s basic financial statements include the operations of Kodiak Island Borough
School District which expended $32,664,692 in state awards which is not included in the Kodiak Island
Borough’s schedule of state financial assistance during the year ended June 30, 2025. Our audit,
described in the Option on Each Major State Program section, did not include the operations of Kodiak
Island Borough School District because it was subjected to a separate audit performed in accordance
with the State of Alaska Audit Guide.
In our opinion, Kodiak Island Borough complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major state
programs for the year ended June 30, 2025.
The Honorable Mayor
and Members of the Assembly
Kodiak Island Borough
12
Basis for Opinion on Each Major State Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States (Government Auditing
Standards); and the audit requirements in the State of Alaska Audit Guide. Our responsibilities under those
standards and the State of Alaska Audit Guide are further described in the Auditor's Responsibilities for the
Audit of Compliance section of our report.
We are required to be independent of Kodiak Island Borough and to meet our other ethical responsibilities,
in accordance with 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 opinion on compliance for each major
state program. Our audit does not provide a legal determination of Kodiak Island Borough’s compliance with
the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to Kodiak
Island Borough’s state programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion
on Kodiak Island Borough’s compliance based on our audit. 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 GAAS, Government Auditing Standards, and State of Alaska Audit Guide requirements
will always detect material noncompliance when it exists. The risk of not detecting material noncompliance
resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the
compliance requirements referred to above is considered material, if there is a substantial likelihood that,
individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on
compliance about Kodiak Island Borough’s compliance with the requirements of each major state program
as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the State of Alaska
Audit Guide, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, 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 Kodiak Island Borough’s compliance with the compliance
requirements referred to above and performing such other procedures as we considered necessary
in the circumstances.
The Honorable Mayor
and Members of the Assembly
Kodiak Island Borough
13
Obtain an understanding of Kodiak Island Borough’s internal control over compliance relevant to
the audit in order to design audit procedures that are appropriate in the circumstances and to test
and report on internal control over compliance in accordance with the State of Alaska requirements,
but not for the purpose of expressing an opinion on the effectiveness of Kodiak Island Borough’s.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal
control over compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
state program on a timely basis. A material weakness in internal control over compliance is a deficiency,
or combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a state program will not
be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control
over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a
type of compliance requirement of a state program that is less severe than a material weakness in internal
control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor's
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies
in internal control over compliance that might be material weaknesses or significant deficiencies in internal
control over compliance. Given these limitations, during our audit we did not identify any deficiencies in
internal control over compliance that we consider to be material weaknesses, as defined above. However,
material weaknesses or significant deficiencies in internal control over compliance may exist that were not
identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the State of
Alaska. Accordingly, this report is not suitable for any other purpose.
The Honorable Mayor
and Members of the Assembly
Kodiak Island Borough
14
Report on Schedule of State Financial Assistance Required by the State of Alaska
We have audited the financial statements of Kodiak Island Borough as of and for the year ended June 30,
2025, and have issued our report thereon dated December 12, 2025, which contained an unmodified
opinion on those financial statements. Our audit was performed for the purpose of forming an opinion on the
financial statements as a whole. The accompanying schedule of state financial assistance and
accompanying notes are presented for purposes of additional analysis as required by the State of Alaska
and are not a required part of the 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 financial statements. The information has been subjected to the auditing procedures
applied in the audit of the financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
financial statements or to the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion, the
schedule of state financial assistance and accompanying notes are fairly stated in all material respects in
relation to the financial statements as a whole.
Anchorage, Alaska
December 12, 2025
Program
Program or Award State
Number Amount Expenditures
Department of Revenue -
Direct -
Commercial Passenger Vessel Tax None $ 40,235 40,235
Department of Commerce, Community, and Economic Development -
Direct -
Repair and Replacement of Sargent Creek Park Playground 24-RR-002 251,427 151,223
Department of Education and Early Development -
Direct -
# Debt Retirement Program None 5,145,948 5,145,948
Total state financial assistance $5,437,610 5,337,406
Reconciliation to Intergovernmental - State sources revenues in the
Statement of Revenues, Expenditures, and Changes in Fund Balances:
Total State financial assistance $ 5,337,406
PERS On-Behalf payments 151,230
PERS On-Behalf recorded in Enterprise Funds prior to
adjustment to match the measurement date of the
net pension and OPEB liabilities/assets as required
by GASB Statements 68 and 75 (38,130)
Community Assistance Program 469,339
Shared Fisheries Business and Resource Landing Taxes 990,746
Electric Cooperative Tax 21,072
Motor Vehicle Tax 732,912
Marijuana Tax 600
Total Intergovernmental - State sources revenue
in the Statement of Revenues, Expenditures,
and Changes in Fund Balances $7,665,175
See accompanying notes to the Schedule of State Financial Assistance.
KODIAK ISLAND BOROUGH
Schedule of State Financial Assistance
Year Ended June 30, 2025
State Grantor
15
16
KODIAK ISLAND BOROUGH
Notes to the Schedule of State Financial Assistance
Year Ended June 30, 2025
Note 1. Basis of Presentation
The accompanying schedule of state financial assistance (the “Schedule”) includes the state award activity
of Kodiak Island Borough under programs of the State of Alaska for the year ended June 30, 2025. The
information in this Schedule is presented in accordance with the requirements of the State of Alaska Audit
Guide and Compliance Supplement for State Single Audits. Because the Schedule presents only a
selected portion of the operations of Kodiak Island Borough, it is not intended to and does not present the
basic financial statements of Kodiak Island Borough.
Note 2. Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting, which is
described in Note 1 to the Kodiak Island Borough basic financial statements.
Note 3. Reporting Entity
The Kodiak Island Borough, for purposes of the supplementary schedule of expenditures of federal awards
includes all the funds of the primary government. It does not include the component unit of Kodiak Island
Borough as follows:
The Kodiak Island Borough School District
The Kodiak Island Borough’s basic financial statements include $32,664,692 in state awards
expended for the Kodiak Island Borough School District, a component unit of the Kodiak Island
Borough. These monies are excluded from this schedule. Separate reports on compliance and
internal control dated November 25, 2025, were issued for the Kodiak Island Borough School District.
Note 4. Subrecipients
No state funds were passed through to subrecipients.
Note 5. Major Programs
# Denotes a major program for compliance audit purposes.
17
KODIAK ISLAND BOROUGH
State Schedule of Findings and Questioned Costs
Year Ended June 30, 2025
Section I – Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued: Unmodified
Internal control over financial reporting:
Material weakness identified? Yes X No
Significant deficiency identified? Yes X None reported
Noncompliance material to the financial statements noted? Yes X No
State Financial Assistance
Internal control over major programs:
Material weakness identified? Yes X No
Significant deficiency identified? Yes X None reported
Type of auditor’s report issued on compliance
for major programs: Unmodified
Dollar threshold used to distinguish between
Type A and Tape B programs: $ 750,000
Auditee qualified as low-risk auditee? X Yes No
Section II – Financial Statement Findings
Kodiak Island Borough did not have any findings that related to the financial statements.
Section III – State Award Findings and Questioned Costs
Kodiak Island Borough did not have any findings related to State awards.
KODIAK ISLAND BOROUGH ALASKA
Letter to the Governing Board
Year Ended June 30, 2025
KODIAK ISLAND BOROUGH ALASKA
Letter to the Governing Board
Year Ended June 30, 2025
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
December 12, 2025
The Honorable Mayor and
Members of the Assembly
Kodiak Island Borough
Kodiak, Alaska
We have audited the 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
Kodiak Island Borough (the Borough) for the year ended June 30, 2025, which collectively comprise the
Borough’s basic financial statements. Professional standards require that we provide you with
information about our responsibilities under generally accepted auditing standards, Government Auditing
Standards, the Uniform Guidance, and the State of Alaska Audit Guide and Compliance Supplement for
State Single Audits, as well as certain information related to the planned scope and timing of our audit.
We have communicated such information in our letter to you dated June 24, 2025. Professional
standards also require that we communicate to you the following information related to our audit.
Significant Accounting Policies and Transactions
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by Kodiak Island Borough are described in Note 1 to the financial statements.
During 2025, as discussed in Note 19 to the financial statements, the Borough changed accounting
policies related to the recognition, measurement, and financial reporting for compensated absences as
required by GASB Statement No. 101, Compensated Absences. We noted no transaction entered into by
Kodiak Island Borough during the year for which there is a lack of authoritative guidance or consensus.
All significant transactions have been recognized in the financial statements in the proper period.
Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ
significantly from those expected. The most sensitive estimates affecting the financial statements were:
All Opinion Units:
Management’s estimate of the collectability of accounts receivable is based on historical
collections. We evaluated the key factors and assumptions used to develop the collectability of
accounts receivable in determining that it is reasonable in relation to the financial statements taken
as a whole.
The Honorable Mayor and
Members of the Assembly
Kodiak Island Borough
Page 2 of 4
Governmental Activities Opinion Unit and Business-type Activities:
Management’s estimate of the useful lives of assets and depreciation is based upon the expected life
of an asset. We evaluated the key factors and assumptions used to develop the useful lives and
depreciation expense in determining that it is reasonable in relation to the financial statements as a
whole.
Management’s estimate of the compensated absences balance, which includes accrued leave, sick
leave, and related benefits, is based upon historical payroll data. We evaluated the methods,
assumptions, and data used to develop the estimate in determining that it is reasonable in relation to
the financial statements taken as a whole.
Management’s estimates of the Borough’s proportionate share of the collective net pension and other
postemployment benefits (OPEB) assets and liabilities and related deferred outflows and inflows of
resources are based on information furnished by the State of Alaska and actuarial reports generated
during the audit of the Public Employees’ Retirement System. The amortization of these deferrals is
based on guidance provided by the Governmental Accounting Standards Board. We evaluated the
key factors and assumptions used to develop the estimates of the Borough’s proportionate share of
the collective net pension and OPEB liabilities, assets, and deferred outflows and inflows of resources
and related amortization in determining that it is reasonable in relation to the financial statements as
a whole.
Business-type Activities, Hospital Facilities Enterprise Fund, Long Term Care Center Enterprise
Fund, and Kodiak Fisheries Research Center Enterprise Fund Opinion Units:
Management’s estimate of the calculation of the lease receivable is based on an estimated incremental
borrowing rate for the tenants for the present value calculation of the lease payments. We evaluated
the key factors and assumptions used to develop present value calculation in determining that it is
reasonable in relation to the financial statements as a whole.
Business-type Activities and Municipal Solid Waste Collection and Disposal Enterprise Fund
Opinion Units:
Management’s uses estimates to calculate the liability for the closure and post closure of the landfill.
These estimates are based on engineering surveys. We evaluated the key factors and assumptions
used to develop the estimated liability for the closure and post closure activities of the landfill to
determine its reasonableness in relation to the financial statements taken as a whole.
Financial Statement Disclosures
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management.
During the course of our audit we did not identify any misstatements.
The Honorable Mayor and
Members of the Assembly
Kodiak Island Borough
Page 3 of 4
Disagreements with Management
For the purposes of this letter, a disagreement with management is a financial accounting, reporting or
auditing matter, whether or not resolved to our satisfaction that could be significant to the financial
statements or the auditor’s report. We are pleased to report that no such disagreements arose during the
course of the audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated December 12, 2025.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application
of an accounting principle to the Borough’s financial statements or a determination of the type of auditor’s
opinion that may be expressed on those statements, our professional standards require the consulting
accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge,
there were no such consultations with other accountants.
Internal Control Matters
See the June 30, 2025, Federal and State Single Audit Report for definition and descriptions of deficiencies,
significant deficiencies, material weaknesses and any reported findings.
Accounting Assistance
As part of our engagement we drafted the basic financial statements of the Borough from the Borough’s
accounting records; however, management of the Borough was involved in the drafting process and retains
responsibility for the basic financial statements.
Supplementary Information Accompanying the Financial Statements
We applied certain limited procedures to the Budgetary Comparison Schedules, Schedules of Borough’s
Proportionate Share of Net Pension and Other Postemployment Benefit (OPEB) Assets and Liabilities and
Contributions for the Public Employees’ Retirement System, and Notes to Required Supplementary
Information, which are required supplementary information (RSI) that supplements the basic financial
statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the “Supplementary Information”, which includes the combining and
individual major and nonmajor fund financial statements, which accompany the financial statements but
are not RSI. With respect to this supplementary information, we made certain inquiries of management and
evaluated the form, content, and methods of preparing the information to determine that the information
complies with accounting principles generally accepted in the United States of America, the method of
preparing it has not changed from the prior period, and the information is appropriate and complete in
relation to our audit of the financial statements. We compared and reconciled the supplementary
information to the underlying accounting records used to prepare the financial statements or to the financial
statements themselves.
The Honorable Mayor and
Members of the Assembly
Kodiak Island Borough
Page 4 of 4
We were not engaged to report on the Introductory Section, the Supplementary Bond Schedules, and the
Statistical Section, which accompany the financial statements but are not RSI. This information has not
been subjected to the auditing procedures applied in the audit of the basic financial statements, and
accordingly, we do not express an opinion or provide any assurance on it.
Major Issues Discussed with Management Prior to Retention
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the Borough’s auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention.
Restriction on Use
This information is intended solely for the use of the Borough Assembly and management of Kodiak Island
Borough and is not intended to be and should not be used by anyone other than these specified parties.
Sincerely,
Anchorage, Alaska