CAFR FY20141
KODIAK ISLAND BOROUGH
Comprehensive Annual Financial Report
Year Ended June 30 , 2014
Official Issuing Report
Karleton G. Short
Finance Director
KODIAK ISLAND BOROUGH
TABLE O F CONTENTS
INTRODUCTORY SECTION:
Letter of Transmittal
GFOA Certificate of Achievement
Organizational C hart
E lected Officials (Photographs)
Borough Officials
Map of Kodiak Is land Borough
FINANCIAL SECTION:
Independent Auditor's Report
Management's Discussion and Analysis
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Po s iti on
Statement of Activities
Fund Financial Statements:
Balance Sheet -Governmental Funds
Jun e 30, 2014
Reco nciliation of Net Po siti on Between the Govemment-Wide and the Fund Financial
Statements
Statement of Revenues, Ex penditures, and C hanges in Fund Balances (Deficits)-
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund ·
Balances (Deficits) of Governmental Funds to the Statement of Activities
Statement of Net Position -Proprietary Funds -Business-Type Activities -Enterprise
Funds
Statement of Revenues, Expenses, and Changes in N et Pos ition -Proprietary Funds -
Bus ines s-Type Acti vi ties -Enterprise Funds
State ment of Cash Flows -Proprietary Funds -Business-Type Activities -Enterprise
Funds
Notes to Basic Financial Statements
Required Supplemeutary Information:
Budgetary Comparison Schedule -General Fund
Budgetary Comparison Schedule -Special Revenue Fund -Education Support
Budgetary Comparison Schedule -Special Revenue Fund -Facilities
Notes to Required Supplementary Info rmati on -Budgetary Comparison Schedules
Additional Supplementary Information:
Budgetary Comparison Sc hedule -Debt Service Fund -Education and H ea lth
Nonmajor Governmental Funds:
Combining Balance Sheet
Combining Statement of Revenues, Ex penditures, and C hanges in Fund Balances
Nonmajor Special Revenue Funds:
Co mbinin g Balance Sheet
Page
1-4
5
6
7
8
9
10-12
13-22
23
24
25
26
27
28
29
30
31-32
33 -72
73 -74
75
76
77
78
79
80
81-84
KODIAK ISLAND BOROUGH
TABLE OF CONTENTS, CONTINUED
Additional Supplementary Information, continued
Combining Statement of Revenues , Expenditures and Changes in Fund Balances
(Deficits)
Schedule of Revenues , Expenditures, and Changes in Fund Balance (Deficit)-
Budget and Actual:
Fire and Road Service Areas:
Fire:
Fire Protection Area No. I
Womens Bay Fire Department
Kodiak Airport Fire District
Road:
Monashka Bay Road Service Area
Service Area No. I
Womens Bay Road Service Area
Bay V iew Road Service Area
Service Area No.2
L.E.P.C.
Land Sales
Buildings and Grounds
Woodland Acres Street Light Service Area
Trinity Islands Street Light Service Area
Tourism Development
Mission Lake Tide Gate
Fern Fuller Trust
Trinity Islands Paving
Oil Spill Disaster
Nonmajor Capital Project Funds:
Combining Balance Sheet
Combining Statement of Revenues, Expend itures and Changes in Fund Balances
Page
85-88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
(continued)
E nterpri se Funds:
KODIAK ISLAND BOROUGH
TABLE OF CONTENTS, CONTINUED
Schedule of R even ues , Expen ses, and C hanges in Net P o s iti o n -Budget
and Actual:
Municipal So lid Waste Collection and Di s posal
Ho spital Facilities
Kodiak Fisheries Research Center
91 I Services Fund
Supplementary Bond Schedules:
Summary of Bonded Debt Service Requirements to Maturity
General Obli gation Bond , 2004 Series D -Retirement Schedule
General Obli gation Bond , 2008 Series A -Retire ment Schedule
General Obli gation Bond, 20 II Series One -Retirement Schedule
General Obligation Bond , 2012 Series A -Retirement Schedule
General Obligation Bond, 2012 Series B -Retirement Schedule
General Obligation Bond , 2013 Series O ne -Retirement Schedule
General Obligation Bond , 2014 Series One -Retirement Schedule
STATISTICAL SECTION:
Statistical Section Index
Net Position by Component '--Last Ten Fiscal Years
Changes in Net Position -Last Ten Fiscal Years
Fund Balances of Governmental Funds -Last Five Fiscal Years
Changes in Fund Balances of Governmental Funds -Last Ten Fiscal Years
General Revenu es by Source -Last Ten Fiscal Years
A ssessed and Es timated Actual Value of Taxable Property-Last Ten Fiscal Years
Direct and Overlapping Property Tax Rates and Contribution s to the School Di strict -
Last Ten Fiscal Years
Property Tax Levies and Collections -Last Ten Fiscal Years
Principal Property Tax Payers -Current Year and Ten Years Ago
Ratios of Net Bonded Debt-Last Ten Fiscal Years
Computation of Direct and Overlapping Debt
Legal Debt Margin Information -Last Ten Fiscal Years
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General
Governmental Expenditures and Transfers -La st Ten Fiscal Years
Ratios of Outstanding Debt by Type -Last Ten Fiscal Years
Demographic and Economic Statistics -Last T en Fiscal Y ears
Average Monthly Employment & Earnings -Last Ten Fiscal Years
Miscellaneous Statistical Data -Last Ten Fiscal Years
Property Value, Co nstruction and Bank Deposits -Last Ten Fiscal Years
Full-Time Equivalent Borough Employees by FunctionlProgram -Last Ten Fiscal Years
Operating Indicators by Function -Last Ten Fiscal Years
Capital Asset Statistics by Function/Program -Last Ten Fiscal Years
109
110
I II
112
113
114
I IS
116
I 17
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119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
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138
139
140
141
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INTRODUCTORY SECTION
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grantor agencies. The standards governing Single Audit engagements require the independent
auditor to report not only on the fair presentation of the financial statements, but also on the
audited government's internal controls and compliance with legal requirements, with special
emphasis on internal controls and legal requirements involving the administration of State and
federal awards. These reports are available in the Borough's separately issued Single Audit
Report.
GAAP require that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analy sis
(MD&A). This letter of transmittal is de signed to complement MD&A and should be read in
conjunction with it. The Borough 's MD&A can be found immediately following the report of the
independent auditors.
ProfIle ofthe Government
The Kodiak Island Borough lies at the western border of the Gulf of Ala ska, approximately 40
miles south of the Kenai Peninsula. Kodiak Island is the largest island in Alaska and the second
largest in the United States. About two-thirds of the Borough lies in the Kodiak archipelago with
the remaining third on the Alaska Peninsula, across the Shelikof Strait from Kodiak Is land. The
Shelikof Strait is only 20 miles wide in pl aces . The Borough encompasses 7,130 square miles,
making it slightly smaller than the State of Massachusetts and serves a population of 13,824.
The Borough was incorporated September 30, 1963, as a Second Class Borough by Chapter 146
Sessions, Laws of Alaska 1961 , as amended. The powers granted to the Borough include area-
wide powers and non area-wide powers. Area-wide powers are health, education, planning and
zoning, emergency services planning, and assessment and collection of taxe s 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 also is financially
accountable for a legally separate school district which is reported separately within the
Borough's financial statements. Additional information on this legally separate entity can be
found in the basic financial statements.
The annual budget serves as the foundation for the Borough 's financial planning and control. All
departments of the Borough are required to submit requests for appropriation to the Borough
Manager. The Borough Manager uses these requests as the starting point for developing a
proposed budget. The Borough Manager then presents this proposed budget to the Assembly for
review by April 30. The assembly is required to hold public hearings on the proposed budget and
to adopt a final budget by no later than June 10. The appropriated budget is prepared by fund and
department. The Assembly makes appropriation transfers between funds and/or departments only
after the adoption of an ordinance . Borough staff may execute transfers between line items
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within a department. Amendments to the budget can occur anytime during the fiscal year through
the Borough Assembly or administrative action. Expenditures may not legally exceed
appropriations at the following levels: Capital Project Funds -project level, all other funds -
department level. All funds , except Capital Project Funds, are budgeted on an annual basis
encompassing a fiscal year. Budgets of Capital Project Funds generally encompass the period
from start-up to project completion, which is generally greater than one year . Budget-to-actual
comparisons are provided in this report for each individual governmental and proprietary fund
for which an appropriated annual budget has been adopted. For the General Fund , the Education
Support Special Revenue Fund and the Facilities Special Revenue Fund , this comparison is
presented on pages 73-76 as part of required supplementary information . For governmental
funds, other than the General Fund , the Education Support Special Revenue Fund and the
Facilities Special Revenue Fund, this comparison is presented in the additional supplementary
information subsection of this report, which starts on page 78. Also included in the additional
supplementary information subsection are the Education and Health Debt Service Fund budget to
actual. For proprietary funds , this comparison is presented in the proprietary funds subsection of
this report, which starts on page 109 .
Factors Affecting Financia l 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.
L ocal eco n omy. The economic condition of the Kodiak Island Borough remains healthy . The
main industries of the Borough are commercial fishing , logging, and tourism. The commercial
fishing industry in Kodiak has been very strong. Severance taxes on seafood increased from
$980 ,109 in FY2005 to $1 ,715 ,496 in FY2014, a 75% increase. Logging has increased over the
last ten years from $17,013 to $96 ,014 but it is not a material revenue source . Tourism continues
to be strong in Kodiak. Bed tax revenues have increased from $20 ,886 in FY2005 to $75 ,042 in
FY2014, an increase of259%. Considering today's economy this is very good. To accommodate
this demand , construction of fishing lodges , bed and breakfast accommodations and recreational
facilities has increased along with an increase in charter boat and guide operations. Cruise ships
continue to visit Kodiak.
The Kodiak Island Borough is also home to the aerospace industry , which began with
construction of the Kodiak Launch Complex in 1998. Owned by the Alaska Aerospace
Development Corporation (AADC), a public corporation of the State of Alaska, the Kodiak
Launch complex is the first complete launch facility built in the United States since the 1960's
and the first not owned by the Federal Government. The state-of-the-art facility includes a launch
control center, payload processing facility , spacecraft assembly building and launch pad. It is
designed to handle small to medium sized rockets used to launch low earth orbit satellites, as
well as military, scientific and research missions.
Kodiak is home to the largest U.S. Coast Guard base in the country, employing nearly 1,350
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.
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The seafood industry is by far the largest industry in the Kodiak Island Borough. This industry
includes commercial fishing, fisheries research, management and enforcement, seafood
processing, and maintenance and support services. Kodiak is home to the largest port in the
State, housing over 500 commercial vessels and consistently ranks among the top ten ports in the
United States in terms of amount and value of product delivered. In 2012393,000,000 pounds of
sea food was landed with a value of$148,086,957.
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. The local unemployment rate has
fluctuated from 5.2% to 8.3% over the last ten years, but the overall average has remained
around 6.7%.
Long-term financial planning. Every year the Borough adopts a five-year strategic plan. In this
plan the Borough decides what its goals and objectives are for the next five years. The Borough
breaks these goals out based on our Mandatory and Adopted powers. To view the complete
Strategic plan you can visit our web site at www.kodiakak.us.
Awards and Acknowledgemen ts
The Government Finance Of ficers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the Borough for
its comprehensive annual financial report (CAFR) for the fiscal year ended June 30 , 2013. This
was the twenty-fourth consecutive year that the Borough has received this prestigious award. In
order to be awarded a Certificate of Achievement, a government must publish an easily readab le
and efficiently organized comprehensive annual financial report . This report must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
CAFR continues to meet the Certificate of Achievement Program's requirements and we are
submitting it to the GFOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and dedicated
services of the entire staff of the administration and finance department. We would like to
express our appreciation to all members of the department who assisted and contributed to the
preparation of this report. Cred it 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 ,
Charles E . Cassidy Jr.
Borough Manager
Karleton G . Short
Director of Finance
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Kodiak Island Borough
Alaska
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2013
Executive Director/CEO
5
Kodiak Island Borou g h
FY 2014
Electorate
F I Bo r ough Mayor
Borough Assembly
I I
Borough Manager II
II Borough Attorney II II II Borough Clerk
Grant Writer! Spec Proj Support
I I
Resource Mgt Officer Deputy CJerk
HR Officer / Executive Assistant Assis t ant Clerk
Eng i neeri ng/Faci lities I Fire Chief I I Assessing I Community Development I Finance / Mis I
I I
Director
Mai ntenance Coordinator
Assesso r Direct o r Director
Maintenance Mechan ic
Property Appraiser Associate Planner Finance
Secretary III
Appraiser Technician Associate Planner Ge neral Accountant
Ba ler
Appraiser Tec h nician Co de En f orcement Officer Acco unti n g Tec h/AP
Ba ler/la ndfil l Supervisor
Assessment Clerk I Secretary 111 Accounting Tech/
Ba ler Op H Payroll
Ba ler Op I
Baler Op I Revenue Accountant
Baler Op I Cashie r
Ba ler Op I
KFRC MIS
Interpretive Spec/Rec. IT Supervisor
Interp retive Spec./Rec. Programmer/Ana lyst
M ai nt e nan ce Engineer GIS Analyst
Pro jec t s PC Tec h It
Pr oject Ma nage r /I nsp .
Constructi on Insp./En gr Secretary II I
Pr oject Ma nage r
Project Ass ista nt
Secretarv III
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Carol Austerman '16
Aaron Gri ffi n ' 15
Chris Lynch ' 15
Frank R. Pete rson' 16
KODIAK ISLAND BOROUGH
KODIAK, ALASKA
BOROUGH OFFICIALS
YEAR ENDED JUNE 30, 2014
MAYOR
Jerro l Friend' 14
ASSEMBLY
MANAGEMENT
Tuck Bonne y' 14
Dave Kaplan' 14
Mel Stephens' 14
Charles "Bud" Cassidy ........................................................................................... Borough Manager
Karleton G . Short ..................................................................................... Finance Director/Treasurer
Robert Tucker ............................................................................. Engineering and Facilities Director
Nova Javier, CMC ....................................................................................................... Borough Clerk
Bill Roberts ............................................................................................................ Borough Assessor
Robert A. Himes ................................................................................................................. Fire Chief
Levesq ue Law Group, LLC ...................................................... Borough Attorne y (Contracted Firm)
Stuart McDonald ............................................................................... Superintendent, School District
Dria Bray-Ho ll oway ............................................................................................ General Accountant
Dora Cross ................................................................ , ........................................ Revenue Accountant
Paul Van Dyke .............................................................................................................. IT Supervisor
Lauri Whiddon ....................................................................... : ......... HR OfficerlExecutive Assistant
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FINANCIAL SECTION
Altman, Roger~IED
(".3 Go I PUBLIC e;-. ACCOUNTANTS
Independent Auditor's Report
The Honorable Mayor and Members ofthe Assembly
Kodiak Island Borough
Kodiak, Alaska
Report on the Financia[ Statements
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, as of and for the year ended June 30 , 20[4, and the related
notes to the financial statements, which collectively comprise the Borough's basic financial state ments as
listed in the table of contents .
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles general[y accepted in the United States of America; this includes
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.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the stan dards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity 's preparation
and fair presentation of the financial statements 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 entity's
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements .
[0
425 G Street Suite 500 Anchorage, Alaska 99501 Phone 907-274 -2992 Fax 907-274-2993
Offices in Juneau and Soldotna A Professional Corporation
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
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 Kodiak
Island Borough, as of June 30, 2014 , 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 .
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis on pages 13-22 and the Budgetary Comparison Schedules and notes to RSI on
pages 73-77 be presented to supplement the basic financial statements. Such 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. 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 .
Othe r Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise Kodiak Island Borough 's basic financial statements. The information listed in the table of
contents as "Additional Supplementary Information", which includes Budgetary Comparison Schedule -
Debt Service Fund -Education and Health, Nonmajor Governmental Funds: Combining Balance Sheet
and Combining Statement of Revenues, Expenditures, and Changes in Fund Balances, Nonmajor Special
Revenue Funds: Combining Balance Sheet, Combining Statement of Revenues, Expenditures and
Changes in Fund Balances (Deficits), and Schedules of Revenues, Expenditures, and Changes in Fund
Balance (Deficit) -Budget and Actual , Nonmajor Capital Project Funds: Combining Balance Sheet and
Combining Statement of Revenues , Expenditures and Changes in Fund Balances are presented for
purposes of additional analysis and are not a required part ofthe basic financial statements.
II
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The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
The Additional Supplementary Information listed above 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. Such 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 Additional Supplementary Information listed above is fairly stated, in all material respects, in relation
to the basic financial statements as a whole.
The Introductory Section, the Supplementary Bond Schedules and the Statistical Section, as identified in
the table of contents , have 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 them.
Otber Reporting Reqnired by Govemment Auditing Standards
In accordance with Government Auditing Standards , we have also issued our report dated December 31,
2014 on our consideration of the Kodiak Island 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 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
internal control over fmancial reporting or on compliance . That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering Kodiak Island Borough's
internal control over financial reporting and compliance.
/) . . a .. -. I-&1, ~,~
Anchorage, Alaska
December 31,2014
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KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30, 2014
As management of the Kodiak Island Borough , we offer readers of these financial statements this narrative
overview and analysis of the financial activities of the Kodiak Island Borough for the fiscal year ended June 30 ,
2014 . We encourage readers to consider the information presented here in conjunction with additional
information that we have furnished in our letter of transmittal, which can be found on pages I -4 of this report.
Financial Highlights
• The assets of the Kodiak Island Borough exceeded it s liabilities at the close ofFY20 14 by $175 ,412,469.
Of this amount, $58 ,869 ,7 19 (unrestricted net position) may be used to meet the Borough 's ongoing
obligations to c iti zens and creditors.
• In FY2014 the Borough 's total net pos ition increased by $13,110,572 .
• Equity in our central trea sury decreased $11 ,792 ,274. This decrease was mainl y due to capital
expenditures.
• At the end of the current fiscal year, the Borough 's governmental funds reported combined fund balances
of $72,318,860. Thi s wa s a decrease of $3 ,497,624 , compared to the net cbange in the prior year of an
increase of $20 ,645 ,7 19. At the end of FY20l4, unassigned fund balance for the general fund was
$3,502,489 . This was 57% of total general fund expenditures .
• The Borough 's bond s payable increa sed by $20,991 ,44 2. Thi s was due to th e issuance of a $22,660 ,000
general obligation bond with a premium of $2 ,427,432 le ss payments of $4 ,095 ,990 in bond principal and
premium.
Overview of the Financial Statements
Gover nme nt wide Financial Statements
The government wide financial statements are des igned to provide readers with a broad overview of the Kodiak
Island Borough 's finances , in a manner simi lar to a private sector business .
The statement of net position presents information on all of the Kodiak Island Borough 's assets and liabilities,
with the difference between the two reported as net position. Over time, increases or decreases in net position
may serve as a useful indicator of whether the financial position of the Kodiak Island Borough is inlproving or
deteriorating .
The statement of activities presents information showing how the government's net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. T hus , revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods.
Both of the government wide financial statements distinguish functions of the Kodiak Island Borough that are
principally supported by taxes and intergovernrnental revenues (governrnental activities) from other functions
that are intended to recover all or a significant portion of their costs through user fees and charges (business -typ e
activities). The governrnental activities of the Kodiak Island Borough include general government, public safety,
community and economic development, emergency preparedness , health and sanitation , education, culture and
recreation , parks and recreation , service district maintenance , and primary and secondary ed ucation. The
business-type activities of the Kodiak Island Borough include a so lid waste collection and disposal faci lity , a
Borough owned hospital , the Kodiak Fisheries Research Center, and a 911 emergency system .
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KODIAK ISLAND BOROUGH
Management's Discussion and Analysis , Continued
The government wide financial statements include not only the Kodiak Island Borough itself (known as the
primary government), but also the legally separate sc hool district for which the Kodiak Island Borough is
financially accountable. Financial information for this component unit is reported separately from the financial
information presented for the primary government itself.
The government wide financial statements can be found on pages 23-24 of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities or objectives. The Kodiak Island Borough, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance related legal requirements. All of the funds of the
Kodiak Island Borough can be divided into two categories: governmental funds and proprietary funds.
Governmental Funds -Governmental fund s are used to account for essentially the same functions reported as
governmental activities in the government wide financial sta tements. However, unlike the government wide
statements, govermnental fund financial sta tements focus on near-term inflows and outflows of spendable
resources as well as on balances of spendable resources available at the end of the fiscal year . Such information
may be useful in evaluating a governmen t's near-ternl financing requirements.
Because the focus of governmental funds is narrower than that of the government wide financial statements, it is
usefu l to compare the information . presented for governmental funds with similar information presented for
governmental activities in the government wide financial statements. By doing so, readers may better understand
the long-term impact of the government's near-term financing decisions. Both the governmental fund balance
sheet and govermnental fund statement of revenues , expenditures, and changes in fund balances provide a
reconciliation to facilitate this compar ison between governmental funds and governmenta l activities.
The Kodiak Island Borough maintains 30 individual governmental funds. Information is presented separately in
the governmental funds balance sheet and in the governmental funds statement of revenues , expenditures, and
changes in fund balances for the General Fund, the Education Support Specia l Revenue Fund , the Facilities
Special Revenue Fund, the Education and Health Debt Service Fund, and the Kodiak High School Renovation
Capital Project Fund, and the Renewel and Replacement Projects Capital Project Fund , which are all considered
to be major funds. Data from the other nonmajor funds are combined into a single, aggregated presentat ion.
Indiv idual fund data for each of these nonmajor governmental funds is provided in the form of combining
statements elsewhere in the supplementary information section of this report.
The Kodiak Island Borough adopts an annual appropriated budget for its General Fund, Special Revenue Funds
and Debt Service Fund. Budgetary comparison statements have been provided for the funds to demonstrate
compliance with this budget.
The ba sic governmental financial statements can be found on pages 23-32 of this report.
Proprietary F unds -The only Proprietary Fund type that the Kodiak Island Borough uses is enterprise funds.
Enterprise funds are used to report the same functions presented as business type activities in the government
wide financial statements. Proprietary Funds provide the same type of information as government wide financial
statements, only in more detail. The Kodiak Island Borough uses enterprise funds to account for a solid waste
collection and disposal facility , a Borough owned hospital leased to the Sisters of Providence d .b.a. Providence
Kodiak Island Medical Center, rents and utilities of the Borough owned Kodiak Fisheries Research Center, and
911 phone charges and expenses.
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KODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
The Kodiak Island Borough adopts an annual appropriated budget for its proprietary funds. Budgetary
comparison statements have been provided for the funds to demonstrate compliance with the budget.
The basic Proprietary Fund financial statements can be found on pages 29-32 of this report.
Notes to the Basic Financial Statements -The notes provide additional infonnation that is essential to a full
understanding of the data provided in the government wide and fund financial statements. The notes to the basic
financial statements can be found on pages 33-72 of this report.
Other Information -In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary infonnation including budgetary comparison schedules for the General
Fund , the Education Support Special Revenue Fund and the Facilities Special Revenue Fund. Required
supplementary infonnation can be found on pages 73-77 of this report.
Government wide Financial Analysis
Statement orNet Position
As noted earlier, net position may serve over time as a useful indicator of a government's fmancial position . In
the case of the Kodiak Island Borough, assets exceeded liabilities by $175,412,469 at the close of FY2014, the
most recent fiscal year. The net position of the component unit were $7,485,028 at the close ofFY2014.
The largest portion of the Kodiak Island Borough 's net position ($1 16 ,542,750 or 66%) reflects its investment in
capital assets (e.g. land, buildings , equipment and infrastructure) net of related debt. The Kodiak Island Borough
uses these capital assets to provide services to citizens; consequently, these capital assets are not available for
future spending. Although the Borough's investment in capital assets is reported net of debt, it should be noted
that the resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
Governmental Business-type
Activities Activities Total
2014 2013 2014 2013 2014 2013
Current and other assets $ 81 .695,355 79 ,790,040 22 ,131,673 35,122,305 103 ,827,028 114 ,9 12 ,345
Capital assets 131 ,424 ,119 100 ,052,704 65,293,662 47,791,787 196 ,717,781 147 ,844,491
Total asset s $ 213 ,1 19,474 179,842,744 87,425,335 82 ,914,092 30 0,544 ,809 262 ,756,836
Long-term liabilities _ $ 72 ,178,195 51,746,354 32,003,516 31 ,293,294 104 ,181 ,7 11 83 ,039,648
Other liabi lities 14 ,027,297 8,172,957 6,923,352 9,242,334 20 ,950,649 17 ,415 ,29 1
Total1iabilities $ 86,205,492 59,919,311 38 ,926,868 40 ,535,628 125,132 ,360 100 ,454,939
Net position :
Net invest ment in capital assets $ 80,159 ,5 21 72 ,773 ,598 36 ,383 ,229 21,628 ,143 116 ,5 42,750 94 ,401 ,741
Unrestricted 46 ,7 54,461 47 ,149,835 12 ,115 ,2 58 20,750,321 58 ,869,719 67,900,156
Total net position $ 126 ,913,982 119 ,923,433 48 ,498,487 42,378,464 175 ,412,469 162 ,301,897
For more detailed infonnation see the Statement of Net Position on page 23.
The remaining balance of unrestricted net position, $58 ,869 ,719, may be used to meet the Borough's ongoing
obligations to citizens and creditors.
15
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
Statement of Activities
The following condensed table of chan ges in net position di splays the re venues and expenses for the current and
pri or year.
Gowrnmenlal .cti~tie5 BU3inC5S-!l:e: acth'des ToW
2014 2013 2014 2013 2014 1013
Revenues:
Program revenues :
Ourrges furscrvices S 70 1,999 657,025 5,267.289 4,827,538 5,969,288 5,484,563
Operatin g grants and contrib ution s 4,On,5 10 2,917 ,662 85,634 4,077,'10 3,003,296
Capital grants 6,651,737 2,2 12,524 5,538,038 5,984,095 12,189,775 8,196,6 19
General revenues :
Property t axes 13,741 ,190 12,910,5 12 13,741 ,190 12,910,5 12
Grants and entitlements not res tricted
10 s pecific programs 4,142,583 4,458,203 4,142,583 4,458,203
Land sales 864,584 864,.'584
Severance ta)OOs 1,843,8 19 1,774,700 1,843,8 19 1,174,700
Other ""'.S46 383,877 598,162 78,688 1,104,708 462,565
Investment earnings 1,106,7 17 528,676 178,851 117 ,702 1,285,568 646,378
Total revenues 33,636,685 25,843,179 11,582,340 11 ,093,657 45,219,025 36,936,836
ElIpenses:
Genem l government 6,990,640 7.398,899 6,990,640 7,398 ,899
Public safety 751,637 644 ,I 'i11 75 1,63 7 644,I'i11
ConnM.mity and economic development 964 ,377 1,070,991 964 ,3 77 1,010,991
E'mergency preparedness 12 ,487 278,480 12,487 278,480
Health and sanit a t ion department 326,700 290,800 326,700 290.800
Education , culture and recreation 2 18 ,013 84,273 218,013 84,273
Parks and recreation 37,795 2 1,100 37,795 21,100
Service district maintenance 631,572 479,264 631,572 479,264
Primal)' an d secondal)' education 14 ,523,m J3 ,930,919 14,523,509 13,930,919
Interest on kmg.tenn debt 2,109,>W6 1,254,225 2,109,406 1,254,225
Municipal solid waste eoUection and d is pos a l 2,080,864 2,342,006 2,080,864 2,342,006
Ho s pital facilities 1,740,525 1,091,035 1,740 ,525 1,091 ,03 5
Kodiak Fisheries Re search Center 1,68 1,111 1.715,062 1,68 1.111 1.775,062
911 services 39,8 17 87,596 39,8 17 87.596
Total expenses 26,566,136 25,453,148 5,542,317 5,295,699 32,108,453 30,748,847
ClJ.a nge in net position
before tmn s fers 7,070,549 390,031 6,040,023 5,7'i11,958 13,110,572 6,187,989
Transfers (80.000) (80,000) 80.000 80.000
Oumge in net p o s ition 6,990,549 3 10,03 1 6,120 ,023 5,8n,9j8 13,11 0,572 6,187,989
Net position, beginning of year, as previou s ly stated 119,923 ,43 3 133,550,817 42,..378,464 36,500,506 162,301 ,897 170,05 1,323
o.lfnm.llative effect oCa change in
accoun t ing principle (196,453)
Prior period adjus tment (1 3,740,962) (13,740,962)
Net pos ition , beg innin g of year, a s re s tated 11 9,923,433 119,6 13,402 42,378,464 36,500,506 162,301,897 156,11 3,908
Net pos it ion, end of year S 126,9 13,982 119.923,433 48,498,487 42,378,464 175,412,469 162,301,897
Governmental activities increased the Kodiak Island Borough 's net pOSItIOn by $6,990,549. The major
differences in revenue s were an increase of $5,599,061 in operating and capital grants due to successful grant
applications, an increase of $830,678 in property taxe s due to increased assessed values and an increase in
investment earnings of $578,041 due to longer investment maturities. There were some major changes in
expenses including an increase of $855,181 in interest on long term debt due to issuance of general obligation
bonds , and an increase of $592,590 in primary and secondary education caused by an increase in non-capital
expenditures.
16
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
The General Fund is the main operating fund of the Kodiak Island Borough. At the end of the current fiscal year,
nonspendable fund balance of the General Fund was $1 ,459 with an unas s igned fund balance of $3,502 ,489
for a total fund balance of $3,503,948. As a mea s ure of the General Fund 's liquidity, it may be useful to
compare fund balance to total expenditures. Unassigned fund balance represent s 57% of total General Fund
expenditures.
The fund balanc e of th e Kodiak Is land Borough 's General Fund increased by $156 ,962 during the current fiscal
year. While overall there was no significant change it is worth noting an increase of $109,700 in federal
payments in lieu of taxes , a decrease in state revenue sha ring of $311 ,11 7, a decrease of $100 ,717 in state
fisheries bu s ines s tax, a decrease in general administration and administration expenditures of $286 ,424 and an
increase of$135,264 in management information services .
The fund balance of the Kodiak Island Borough 's Facilities Special Revenue Fund increa sed by $133, I 05
during the current fiscal year. The key factor leading to thi s minimal increase was increa sed investment earnings
compared to the prior year.
The fund balance of the Education Support Special Revenue Fund decreased by $184,223 during the current
fiscal year. The key factor leading to thi s change were increases in capital outlay to the School District.
The fund balance of th e Fire Protection Area No. I increased by $172 ,894 . The key factor leading to thi s
increa se wa s not s pending mo nies budgeted for capital outlay.
The fund balance of Womens Ba y Road Service Area increa se d by $67,567. The key factors leading to thi s
increase were lower snow removal and repair and maintenance costs.
The fund balance of Land Sales increased $50,315. The key factor leading to this increase wa s a land sale.
The fund balance of the Fern Fuller Trust decreased $64,207 . The key factor leading to thi s decreas~ was low
interest earnings.
The fund balance of the Kodiak Island Borough's Renewal and Replacement Projects Capital Project Fund
decreased by $936,578 during the current fiscal year. The key factor leading to this was a budgeted use of
assigned fund balance to balance the FY20 14 budget.
The fund balance of the Kodiak Island Borougb 's Kodiak High School Renovation Capital Project Fund
decreased by $2 ,933,587 during the current fiscal year. Tbe key factor leading to this decrea se was a budgeted
use of assigned fund balance.
Proprietary Funds -The Kodiak Island Borough 's proprietary funds provide the same type of information
found in the government wide financial statements, but in more detail.
Net position of the Municipal Solid Waste Collection and Disposal Enterprise fund amounted to $16 ,846 ,5 88, the
Hospital Facilities Enterprise Fund amounted to $21,263 ,713 , the Kodiak Fisheries Researcb Center Enterprise
Fund amounted to $10 ,388,186 and the 911 Services Enterprise Fund amounted to $0.
The total increase in net position for the Municipal Solid Waste Collection and Disposal Enterprise Fund was
$6,032,820. The total decrease in net position for the Hospital Facilities Enterprise Fund was $121 ,997 . The
total increase in net position for tbe Kodiak Fisheries Research Center Enterprise Fund was $209,200. The total
change in net po sit ion in the 911 Service Enterprise Fund was $0. Other factors concerning the finances of these
four funds have already been addressed in the discussion of the Kodiak Island Borough's business-type activities.
18
KODIAK ISLAND BOROUGH
Management 's Di scussion and Anal ysi s, C ontinued
• Severance taxes for mining were $22,309 more than budgeted. This was due to an estimation error when
the budget was devel o ped.
• Penalties and interest on taxes were $71,942 le ss than budgeted . This was due to fewer late tax payments .
• State shared revenue s were $23 ,675 more than budgeted. This was due to an increa se in the State's budget
for aid to the various political subdivisions of the State .
• The Borough 's share (50%) of state raw fish tax was $103,692 less than budgeted. This was due to an
estimation error in harvest of wild fish.
• State on-behalf P ERS payments were $37,543 more than budgeted. This was due to an estimation error
when the budget was developed .
• Federal payments in lieu of taxes were $315 ,152 more than budgeted. Thi s wa s due to an estimation error
when the budget was developed.
• Federal fi sh and wildlife revenue sharing were $55 ,518 more than budgeted . Thi s was due to an estimation
error when the budget was developed .
• Building permit revenues were $19 ,661 over budget. This was due to an estimation error when the budget
was developed .
• Investment income was $76,196 less than budgeted . This wa s due to an overall decrea se in the market in
the current year.
• The General Admini stration department came in $68 ,163 under budget. This was due to lower insurance
costs.
• The Borough Manager department came in $60,661 under budget. This was due to vacant positions.
• The Borough Clerk department came in $43 ,049 under budget. Thi s was due to vacant positions, reduced
records management costs, and other.
• The Management Information Systems department came in $62 ,647 under budget. Thi s was due to vacant
positions and not purchasing all budgeted equipment expenditures.
• The Community Development department came in $140 ,579 under budget. This was due to vacant
positions .
• The Parks and Recreation department came in $157,205 under budget. Thi s was due to lack of staff to
supervise projects .
• The Emergency Preparedness department was $42,013 under budget. This was due to contracted services
coming in under budget.
Capital Assets and Debt Administration
Capital Assets -The Kodiak Island Borough's investment in capital assets for its governmental and business -
type activities as of June 30, 2014, amounted to $196 ,717,741 (net of accumulated depreciation). This investment
in capital assets includes, land , buildings and improvements, improvements other than buildings , machinery and
equipment, and construction work-in-progress. The total net increase in the Kodiak Island Borough 's investments
in capital assets for the current fiscal year was $48,873,250 which was mostly due to increases in construction
work in process .
20
KODIAK ISLAND B OROUGH
Ma nage ment's Di sc uss io n and A na lys is, Continu ed
T he fo ll ow ing ta bl e d ispl ays the capi ta l assets (net of acc umul ated d eprec iati on) fo r th e curre nt year.
Gove rnm e n ta l B usin ess-ty p e
acti viti es acti\'iti es To ta l
2014 2013 2014 2013 2014 2013
Artwork $ 16 ,09 1 16,09 1 16,09 1 16,09 1
Land 23,272 ,788 23,46 7,3 04 1,66 1,499 1,66 1,499 24 ,934,287 25,128 ,803
Con stru ction work-in-pro gres s 47,862 ,997 12,6 04,89 7 40 ,07 4,74 2 20 ,790 ,509 87 ,937,739 33 ,39 5,406
Buildi ngs and improveme nts 44 ,588 ,590 47 ,085,28 3 20 ,38 7,522 2 1,782 ,249 64 ,9 76 ,11 2 68 ,8 67 ,532
Imp rovements Other than b ui ld in g 13 ,889,667 14,987 ,459 1,65 1,121 1,833 ,395 15,540 ,788 16,820,854
Equipme nt 978 ,81 6 932,432 53 5,38 0 698 ,722 1,5 14 ,19 6 1,63 1,154
ln fra stru cture 83 1,26 1 975 ,329 83 1,261 9 75 ,3 29
Uncla ss ifi ed pla nt in se rvice 96 7,26 7 1,009 ,322 967,267 1,00 9,322
$ 13 1,424,11 9 100 ,05 2 ,70 4 6 5,293 ,622 4 7,7 9 1,787 196 ,7 17,74 1 14 7,844 ,4 9 1
Additi ona l in fo rm ation o n the Kodi ak Is land Borough 's capi ta l assets can be fo und in note 7 o n pages 44 -4 8 of
thi s re port .
L o ng-T erm Debt -At th e end of th e c urrent fi sca l yea r, th e Ko di a k Is land Bo ro ugh had tota l bond ed debt
o ut sta ndin g of $69 ,135 ,000. T hi s e ntir e a mo unt is bac ked by th e fu ll faith and credit of th e B oro ug h. T he
rem ai nd er of th e Kod iak Is land Bo ro ugh 's debt re pre se nt s loa ns and notes payabl e, com pensated a bse nces an d
landfill cl os ur e and post-cl osure co st s .
T he fo ll ow in g tabl e d is play s t he long-te rm debt for the current year.
Gove rnm ent a l Bu siness-ty pe
acti v ities ac tiv iti es T otal
2014 2013 2014 2013 2014 2013
Ge nera l obl igatio n bo nd s, includ in g pre mium $ 76,227 ,556 55 ,236 ,11 4 76 ,227 ,556 55 ,236,11 4
ADEC loan s 37,042 42 ,992 37 ,042 42,992
Compe nsated ab se nces 328 ,529 298,640 328 ,529 298 ,640
Landfill post closure car e costs 3,968 ,123 5,389 ,65 0 3,968 ,123 5,389,650
Lo ng le m1 interfu nd borrowi ngs 3,97 1,872 4,55 1,382 3,97 1,872 4,55 1,382
Not es pa ya ble 28 ,9 10,39 3 26,163 ,644 28 ,9 10,393 26,163 ,644
$ 76,593 ,127 55,577 ,746 36 ,850,388 36 ,104 ,676 113 ,443 ,5 15 9 1,682,422
Th e Kodiak Is land Boro ug h 's to tal d ebt in crease d by $2 1,761 ,093 durin g th e c urrent fi scal year . Thi s in c rea se
was mostly du e to th e Kodi ak Hi gh Schoo l Re nov ati on Ca pital Proj ect Fund se llin g $22 ,660,000 in genera l
obli ga ti on . Tota l d ebt se rvic e payments durin g the year were $3 ,645,950 of prin ci pal of ge ne ral o bli gati o n bond s.
Th er e is n o genera l obli gati on debt lim it imp os ed on the Kodi ak Island Borou g h by th e State Co nstituti on, state
statu tes or th e Borough's ch art er or co de.
Additi onal inform at ion on th e Kod iak Is land Boro ugh 's long -term debt can be fo und in note 9 on pages 53-63 of
thi s report .
2 1
KODIAK ISLAND BOROUGH
Man age men t's Discuss ion and Ana lys is, Co ntinu ed
E cono mi c Factors a nd Next Yea r's Budgets and Rates
• At June 30,2014, the un empl oy ment rate for t he Kodiak Is land Borough was 5.2 %, which is .6 % lowe r
than la st yea r 's rate of 5.8%. The average un empl oyme nt rate for the las t 10 yea rs has been 6.67%.
• Property tax reve nues received are proj ected to increase in future years as the Kodiak Island Borough 's
assessed valuation co ntinu es to increase.
• Th e PERS (Publi c Empl oyees Retirement Syste m) rate has increa sed fro m 0% in FY2 004 to 35 .68% in
FY2014. The State of Alaska se t a ceiling of 22 % o n all p o litical subdivi sions and contributed the
additional 13.68 %.
·Req uests for Information
This financial re po rt is de s ign ed to provide a ge neral overview o f the K odiak Island Borough's fman ces for all
tho se with an interes t. Questions concerning any of the information provided in thi s re port or reque sts for
additional informati on should be addressed to th e Kodiak Is land Borou gh, Director of Finance, 710 Mill Bay
Kodiak, Alaska 99615 .
22
BASIC FINANCIAL STATEMENTS
(This page was left blank intentionally)
..
KODIAK ISLAN D BOROUG H
Statement of Net Po sition
June 30 , 2014
(With summa ri zed finan c ial info rmation fo r June 30, 20 13)
C omponent
Pr im a!! gOl'crom e Dt unit Tot al reporting e ntity
Go"ernmcntal Bu sine ss -type Sc hool
Ass ets activitie s adi\'iti tS To tal District 2014 2013
Equity in cent ral treasu ry $ 79,478,297 15,488 ,8 23 94,967,120 33,487 95,000,607 106 ,784 ,673
Due from primary
government 8,708,251 8,708 ,251 5,764,927
Receivables :
State of Alaska 611,868 4,086,05 8 4 ,69 7,926 3,095 ,11 5 7,793 ,04 1 9,625,483
Federa l government 359,513 359,5 13 35 9,5 13 192,177
Pr operty taxes , ne t of
allo wa nce 0[$15 ,828 245,933 245,933 245,933 18 3,093
Severance taxes 396 ,798 396,798 396,798 394,984
Land sa les contracts
receivable 549,230 549,230 549,230 9,1 14
Account s and other
receivables , nct 52 ,257 307,053 359 ,3 10 36,4 66 395 ,776 294 ,677
Inventories 597 ,93 2 597,932 50 1,735 1,099,66 7 767 ,668
Prepaid item s 1,45 9 2 ,6 79 4 ,138 2 ,940 7,078 67,183
Restricted cash and equivalents 1,649 ,188 1,6 49 ,188 1,649,188
Ca pit al assets :
Non-depreciable 71 ,135,785 4 1,752,332 112 ,888 ,117 112 ,8 88,117 58,540,300
pepreciable, ne t 60,288,334 23 1541 1290 83 ,829 ,624 744,435 84,574,059 89,864,964
Total $ 213 ,119,474 87,42 5,355 300,544 ,829 13 ,122 ,429 313 ,66 7,258 272,489,243
Liabilities a nd Net Po sition
Liabilities :
Account s payab le $ 3,611 ,343 1,852 ,359 5,463 ,702 1,092,034 6,555 ,736 6 ,740,063
Accrued compensation
and related liab ilit ies 401,423 100,575 50 1,99 8 3,741 ,034 4 ,243 ,032 3,893,502
Other accrued lia bilities 998,650 42 ,383 1,041 ,033 1,04 1,033 7 16 ,782
Custome r deposits 1,100 27 ,000 28,100 28,100 14 ,750
Unearned reven ues 134,815 134 ,8 15 98,651 2)),466 204,546
Du e to component unit 8,708,251 8,708,251 8,708,251 5,764,927
Internal ba lances (4,026,035) 4,026,035
Noncurrent liabi li ties :
Du e within one year 4 ,197,750 875 ,000 5,072,750 609,278 5,6 82 ,028 4 ,537,923
Due in more than
one ye ar 72 ,178,195 28 ,035,393 100,213 ,588 96,404 100,309,992 77,649,998
Landfill closur e costs 3,968,123 3,968,123 3,968,123 5,389,650
T otal li abiliti es 86,205,492 38,926,868 12 5,132,360 5 ,63 7,40 1 130,769,76 1 104 ,912 ,141
Net posit ion :
Net investme nt in
capital assets 80,159,52 1 36 ,383,229 11 6,542,750 618,900 117 ,16 1,650 94 ,962,5 14
Unrestric ted 46,754,46 1 12,11 5,,58 58,869,719 6,866,128 65,735,847 72,6 14 ,588
Net pos ition 126,9 13,982 48,498,487 175,412,469 7,485.028 182,897,497 167,577,102
Tota l $ 2 13,11 9,474 87 ,4 25 ,355 300,544,829 13 ,122,429 313,667,258 272,489,2 4 3
See accompanying note s to fi nancial stateme nt s.
23
FunctionsiPrograms ~ensts
Primary government:
Governmenta l activi ties:
Ge neral government S 6,990,640
Public safety 751,637
Community and economic d evelopment 964,377
Emergency preparedness 12,487
Health and sanitation department 326,700
Educati on, culture and recreation 2 18,013
Parks and r ecreation 37,795
Service district maintenance 631,572
Primary and secondary education 14,523,509
In te rest on long<tenn debt 21 1091406
Totalgovernmenllli activities . 26,566,136
Business<type activities:
Municipal soli d waste collection and
disposal 2,080,864
Hospital facili ties 1,740 ,525
Kodiak Fisheries Resea«:h Center 1,681,111
91 1 servic e 39:81 7
TOIllI business-type activities 5,542,317
Total primary government 32,108,453
Component unit:
School Distri ct $ 53,240,623
General revenues:
Propeny taxes
Grants and entit lements not restricted to specific programs
LaI1d sales
Severance taxes
Suppon from primary government
Oth"
Inv estment earn ings
Transfers
Total general reven ues and transfers
Change in net position
Net position, at beginning of year. as previously staled
C wnulative e ffect of a change in accounting principle
Prior period adjustment
Nel position, at beginning of year, as restated
Net position, at end of year
See accompanying notes to financial statements,
C horges for
services
577,350
14 ,336
110,313
701,999
2,265,967
1,150,000
1,851.322
.5,267,289
5,969,288
243,260
KODIAK ISLAND BOROUGH
Statement of Ac tivities
Year ended Jun e 30, 20 14
(With summarized financial inform ation for the year ended June 30. 20 13)
PrORr.m revenu es Net (expe nse ) r evenu e li nd cha nges in n et positi on
Operating
grant! and
contributions
392,183
13 ,430
71,150
253,230
3,347,517
4,077.510
4,077,510
12,726,590
Ca pital
grant s
10,007
51 ,764
160,730
[ 1,987
6,417,249
6,65 1,737
5,323,038
2 15,000
5,538,038
12,189,775
6,820
24
Primary governmenl
Governm enla l Bu si n en-Iype
ac tivities activities
(6,01 1,100)
(672,107)
(732,497)
(500)
(326,700)
(2 18,013)
(37,795)
(52 1,259)
(7,853,030)
1.238,111
(15,134,890)
(15,134,890)
13,741,190
4,142,583
864.584
1,843,819
506,546
1.1 06,717
~80,OOOl
22,125,439
6,990,549
11 9,923.433
119,923,433
126,9 13,982
5.508.141
(375,525)
170,21 1
ill&!lL
5 1263,0 10
5,263~
598,162
178,85 1
80,000
857,013
6,120,023
42,378,464
42,378,464
48,4?8,487
Total
(6,011,100)
(672,107)
(732,497)
(500)
(326,700)
(2 18,013)
(37,795)
(521.259)
(7,853 ,030)
1.238,111
(15,134 ,890)
5,508,141
(375,525)
170,2 11
(39.817)
5,263,010
(9,8 71 ,88 0)
13 ,74 1,190
4,142,583
864,584
1,843,8 19
1,104 ,708
1,285,568
22,982,452
13 ,11 0,572
162 ,30 1,897
162,30 1,897
175,412,469
Compon enl unil
School
Di strict
(40,263,953)
30,698.126
10,651,976
1,123,674
42,473,776
2,209,823
5,275,205
5,275,205
7,485,028
Totlll reporting entity
~ 20t3
(6,0 11,100) (5,208,0 11 )
(672,107) (528,757)
(732,497) (1,070,99 1)
(500) (2 78.480)
(326,700) (290,800)
(218,013) (8 4,273)
(37,795) (2 1,100)
(52 1,259) (385,188)
(7,853,030) (12,811.391)
1,238 ,111 1,013 ,054
(15,134,890) (19,665,93 7)
5,508.141 5,42 8,958
(375,525) 408,436
170,21 1 (148,230)
p9,8171 ~87,5961
5,263,010 5,60 1.568
[9187 1,88 0 1 [14 ,064,3691
(40,263,953) (38,652,207)
13,741,190 12,9 10,512
34,8 40,709 34 ,780,892
864,584
1,843,8 19 1,774,700
10,651,976 10,250,350
2,228.382 560,856
1,285,568 646,378
65,456,228 60,923,688
15,320,395 8,207,112
167 1577,102 173 1307,405
(196,453)
(13,740,%2)
167,577,102 159,369,990
18 2,897,497 1~7,577, 102
A"ds Genera l
Assets:
Equity in ce ntral tr eas ury S 3,484,048
Rec eivabl es :
State of Alaska 87,465
Federal government 205,518
Property taxes, net of
allowance of$15 ,828 21,885
Severance taxes 396.798
Land sales contracts
Account s and other
receivables, net 14,740
Pre paid item s 1,459
Due from other fund s 209,477
Land sales contracts , due after one year
Advances to other funds
Total S 4,421,390
L iabilities, Defe rred Innows of Resources,
and f und Balances (Deficits)
Liabilities :
Accounts payable 364 ,037
Accrued compensatio n
and related liab ilities 184 ,241
Custome r deposits
Due to component unit
Due to other fund s 174,3 12
Advances from other funds
Unearned revenues
Total1iabilities 722,590
Deferred inflows of resources :
Unavailable revenue s 194!852
Total liabil itie s and deferred
inflows of resourc es 917.442
Fund balances (deficit s):
No nspendab le 1,45 9
Co mmitted
Ass igned
Unassigned 3.502,489
Total fu nd balances (deficits) 3,503,94 8
Tot al S 4 ,421,390
See accompanying notes to fin ancial statements .
KODIAK ISLAND BOROUGII
Balanc e Sheet
Govemment(ll Funds
June 30 , 2014
(With summarized financial infonnation for June 30, 2013)
Education Ca ~ital Proj ect Funds
S~t<:ial Revenue F unds and Hea lth Kodiak High Rencwa l . .nd
Education Debt Scrvice Sc hool RCll lacemcnt
Su~~rt Facilities Fund Renovatio n Pro iects
8,468 ,311 32,7 11 ,89 5 296 ,5 11 28.530,694 464
49,396 338 ,864 70.160 43,838
170 .206 33.486 2,580
174 ,3 12
6!716.900
8,687,913 39,603,107 668,86 1 28.600.854 46.882
11,336 3,150 2.974,474 11,369
8 ,708 .25 1
95.0 72
2,745.028
8,7 19,587 3,1 50 2,974,474 2,85 1,469
54 1 163
__ 8,7 19,587 54 ,1 63 3.1 50 2.974,4 74 2.85 1,4 69
39.548 ,944 665,7 11
25 ,62 6,380
PI,674} (2 ,804,587)
Pl ,674} 39,5 48 ,9 44 665,7 11 25,626,3 80 p ,804 ,58 7}
8,687,9 13 39,603,107 668.861 28 ,600 ,854 46,882
25
Other
Govel·nmental Totals
Funds 2014 2013
5,986,374 79 ,478,297 77,6 18 ,660
22.145 6 11 ,868 1,2 84 ,2 14
153 .995 359,513 192 ,177
17 ,776 245 ,933 183 ,093
396,798 394 ,9 84
35,465 35,465 3 ,649
37,517 52 ,257 46 ,422
1,4 59 61 ,376
383.789 3,836 ,895
513,765 513 ,765 5,465
6,7 16 ,900 4!576 ,459
6,767.0 37 88,796,044 88,203,394
246.977 3,6 11 ,3 43 2,3 49 ,953
184 ,241 91 ,924
1,100 1,100 1.250
8,708,25 I 5,764 ,927
60,242 329,626 3.773,983
2,745.028 25,077
134 ,8 15 134 ,8 15 188,756
443 .13 4 15.7 14,404 ~870
513 ,7 65 762,780 19 1,0 40
956,899 16 .4 77.184 12,386,9 10
513,765 515,224 4 ,643,300
2,14 0,474 42,355,129 37 ,902,356
3,249.11 9 28,875,499 29,98 1,503
!93,22O l 573,008 3,289,325
5,810.138 72.31 81860 75,8 16.484
6 ,767 ,037 ~044 88 ,2 03,394
KODIAK ISLAND BOROUGH
Reconciliation of Net Position Between the
Government-Wide Financial Statements and the Fund Financial Statements
June 30, 20 14
Amount reported as fund balances on the governmental funds balance sheet
Amounts reported for governmen tal activities in the statement of n et
position are different because:
Cap it al asse ts used in governmental activities are not financial
resources and, therefore, are not reported in the funds.
Long-term receivables, delinquent property taxes and loans are
not availab le to pay for current-period expenditures and,
therefore, are unavailable in the funds:
Property taxes
Int erest receivable
Notes receivable -land sale s
Long-term li abi lities , including bonds payable, are not due and
payable in the current period and therefore are not reported
in the funds:
General obligation bonds payable
Bond premium
ADEC loans
Accrued intere st expense
Compensated absences
Net position of governmental activities
See accompanying notes to financial statements.
26
$ . 194,852
54,163
51 3,765
(69,135,000)
(7 ,092,556)
(37,042)
(998,650)
$ 72,3 18 ,860
131,424,119
762,780
(328 ,529) (77 ,59 1,777)
$ 126,913,982
Gentra]
Revenut$:
Property taxes and assessments 207,975
Transient accomodations tax
Severance tax es 1,843,819
Intergevemmental :
Sl.ltewurcn 2,859,246
Federal sources 1,746,670
Charges for serv ic es 3,136
Licenses, permits and fCC'S 82,113
In''eStment income 23,804
Other 11,1 92
Total uwenues 6,77 8,555
Expenditures:
Current
~nera l ge"cmment 4,495,294
P ublic safety 72,941
Communit y and
economic dew;lepmem 880,251
Emergcncy preparedness 9,987
Health and sa nitation department 326,700
EduC3tion, culture
and recrc-ation 95,625
Parks and recreation 37,795
Serv ice district maintenance
Pr imaI)' and secondary educat io n 195,000
C.piUlloutlay:
Schools
Genera l 24.500
Debt $tn.'icc'
Principal
Int erest
Debt issuance costs
Tota] cxpC'nd ilures 6,13 8,093
Eltcess (defi ciency) of revenues
ever (u nder) c:O;pC'nd itures 640,462
Other fi nancin~ sources (uses):
Proceeds from sale of bonds
Premi um on bonds issued
Proceeds from sale of capital a:;sets
La.nd s.ale proceeds
T mlsfen in
Transfers OUI
Net ether financin g
(483 SOOI
sources (uses) ~483.s001
Change in fund balances 156 ,962
Fund balances (deficits), al begilUlin g ofyur 3.346.986
Fund ba lances (d eficits), at end of year , 3 503 948
See accompanying nOles \0 financial statements.
KODIAK ISLAND BOROUGH
SUlterne nt of Revenues, Eltp~ndit ur~s an d Changes
in Fund Balances (Deficits)
Governmental Funds
Year ended June 30, 2014
(With summarittd financial information for th e ye;lr ended Jun e 30, 2013)
E duration Cal!ital Pro ject "',,n ds
Sl!eci ~1 R c-nnue Funds a nd HfI]th Kodiak High Rentw.lland
Educa ti on Debt Sen>ic c-Sc ho ol Replacemc-n t
S u.,po rt Faciliti es Fund Renu"ltion Projects
9,882,767 2,043,895 180,590
253,230 3,347,5]7 6.342,993 74,256
655,470 3,182 385,835
IO,i3 ,t997 655.470 5,394,594 6728,828 254 ,346
6,045 90,749
10,650,220
34,749,847
1,262 ,638
3,645,950
2,107,/98
89,835
10,650220 5,849,028 34749847 1.353.387
(514,223 1 655,470 (454,434 1 (28,0210191 (1 098,541)
22,660,000
2,42 7,432
330,000 482,402 16 1,963
(522 3651
3)0.000 (5g36s1 482,402 25,087432 161.963
(1 84.22 3) 133,105 27,968 (2,933.5 87) (936,S78 )
152,549 39,4 15,839 637,74 3 28559,967 jl ,868,(09)
(3 1 674 ) 39.54 8 944 665711 25626380 (2804,58 71
27
O th c-r
Gonrnmc-ntHI Tot a l~
Fund s 2014 2013
1,341544 13,656,771 12,936,796
75,142 75,142 96,640
1,343 ,8 19 1,774,700
60,916 12,938,158 7,929,017
187,002 1,933,672 ],659,372
586.300 589,436 562,199
29,850 112,563 94,826
47,17S 1,115,466 536,903
39364 50,556 52516
2,367,293 32,3 15,583 25,642,969
857,417 5,449.505 5,307,199
503,779 576,720 469,280
84,126 964,377 1,070,99 1
9,987 18 ,342
326,700 290,800
95,625 84,273
37,795 21,100
631,572 631,512 479,264
10,845.220 ]0,442,350
122,388 34,872,235 5.486,612
234,858 1.52 1,996 2,041,674
3,645,950 2,966,441
2,208 2,109,406 1,254,22 5
89835 20809
2,436 J48 61,176.923 29953,420
(69,0551 (28,861,)40) (431045 1)
22,660,000 21,595,000
2,427,4 32 3,424,8 19
9,16<
356.284 356.284 6,787
18,000 992,365 6,2 12,885
(66 500) (1 ,072 365) (6.292 ,8851
307,784 25,363.71 6 24,956.170
238,729 (3,497.624) 20,645,719
5,51 1,409 75,816,434 55 170,765
5,8 10,13 8 72.318,860 75.816,484
KODIAK ISLAND BOROUGH
Reconcil iation of the Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits)
of Governmental Funds to the State ment of Activities
Year ended June 30 , 2014
Change in fund balances -tota l governmental fund s
Amounts reported for governmental activities in the statement of
activitie s are different becau se:
Governmenta l fund s report capital outlays as expenditures .
However, in the Statement of Activities the cost of those ass ets
is a llocated over their estimated useful live s and reported as
depreciation expense:
Capital outl ay
Depreciation expen se
Governmenta l funds only report the revenue from the sale of
ass ets to the extent proceeds are received from the sale. In
the Statement of Activ iti es, a gain or lo ss is reported for each
sa le. The net effect of tran saction s in vo lving capital as set s
is to decrease net position.
Cost of ass ets so ld
Accumulated depreciation of assets sold
Certain revenue s in the statement of activit ies do not provide
current financial resource s and are reported as unearned or
unavailable revenues in the funds :
Property tax
Interest income
Land sale proceeds
Certain revenue s that were earned in a prior year provide
current financial resource s :
Accrued property tax
Accrued interest income
Land sale contracts
The issuance of long-term debt provides current financial
resources to goverrunental funds , while the repayment of the
principal of/ong-term debt consumes the current financial
resources of governmenta l funds. Neither transaction, however,
has any effect on net position. Also , governmental fund s do not
report th e accrual of interest expense on debt when it is not
payable from c urrentl y avai labl e resources:
Interest expenditures applied to accrued interest
Issuance of/ong term debt
Principal repayments
Bond premium
Bond premium amortization
Some expenses reported in the Statement of Activities do not
require the use of current financial resources and , therefore,
are not reported as expenditures in governmental funds:
Compensated absences , net change
Change in net position of governmental activities
S~e accompanying notes to financial statem ents .
28
$ 35 ,607 ,990
(4 ,042 ,059)
(194,5 16)
194 ,852
54 ,163
513 ,765
(185 ,575)
(62 ,912)
(5,465)
(376,689)
(22,660,000)
3,645 ,950
(2,427,432)
455,990
$ (3,497,624)
31 ,565 ,931
(194 ,516)
762 ,780
(253 ,952)
(2 1,362,18 1)
(29,889)
$ ====6,=99=0,,=,5=49=
Assets
Curr ent assets :
Equi ty in central treasury $
Restricted cash and equivalents
Customer re cei vables
Accounts re ce ivab le-
State of Ala ska
Prepa ids
Total current as sets
Inventorie s
Ca pital asse ts:
Non-depreciable
Deprcci~ble . net
Total capital assets
Tota l noncurr ent asset s
Total $
Liabilities and Net Po sition
Current liab ilitie s:
Account s payabl e $
Customer deposits
Accrued co mpensa tion and
related liabilities
Other accrued liab ilities
Current port ion of adva nces
from other fun ds
Curre n! portion of notes pa yabl e
Due to other fund s
Total cu rrent li abilities
Noncurrent liabilities :
Notes paya bl e
Adv anc es from other fu nds
Accrual for landfill closure
and postclosure costs
Tot al noncurrent liabi li ties
Tota l liabilities
Net po si tion :
Net investment in cap ital assets
Unre stri cted (defi c it)
Total net position
Total $
See accompan yin g no tes to financial statem en ts .
KODIAK IS L AN D BOROUGH
Statement of Net Position
Prop ri etary Funds -Bu sin ess -Type Activities -Enterprise Funds
Ju ne 30, 20 14
(With summar iz ed fi nanci al information for Ju ne 30 , 20 13)
Municipal Kodiak Otbn
So lid Waste Fisberies Nonmajor
Collection and Hospital Research Enterprise
Dis~OSllI Facilities Cenf er Fund
5,737,395 6,449,638 3,27 1,18 1 30,609
302 ,500 1,346 ,6 88
260,897 40 ,046 6,110
4 ,047 ,505 38,553
2,679
10,35 0,976 7,834,8 79 3,311 ,227 36 ,719
320,925 277 ,00 7
19 ,753,655 20 ,967,304 1,031 ,373
2,287 ,465 11,770,723 9,483,102
22,041 ,120 32 ,738 ,0 27 10 ,5 14,475
22,362 ,045 33,015 ,0 34 10,5 14 ,47 5
32 ,713 ,02 1 40,849,9 13 13,825,702 36,719
1,551 ,020 5,83 0 258,790 36,719
27,000
7 1,0 12 29,563
4 2,383
82 ,723 540,000
270,000 605 ,000
54,163
1,96 1,41 5 693 ,553 882 ,5 16 36,719
9,936 ,895 18 ,098,4 98
794 ,149 2,555 ,000
3,968 ,123
13 ,905,0 18 18,892,647 2,555,000
15,866 ,433 19,586,200 3,437 ,5 16 36,719
I 1,834 ,225 14 ,034,529 10 ,5 14 ,475
5,0 12,363 7,229 ,184 (126,289)
16,846,588 2 1,263 ,7 13 10,388,186
32,713,021 40,84 9,9 13 13 ,825 ,702 36,719
29
Totals
2014 2013
15,48 8,823 29,140,734
1,649,188
307,053 248 ,255
4,086 ,058 5,456 ,114
2.679 195
21 ,533,801 34,845,298
597 ,9 32 277,007
41 ,752,332 22 ,468 ,099
23,54 1,290 25,323,688
65 ,293,622 47,791 ,787
65,89 1,554 48 ,068,794
87,425,355 82 ,9 14,092
1,852 ,359 4,164,291
2 7,000 13 ,500
100,575 95,428
42,383 94,82 1
622 ,723 579,510
875,000 260,000
54,163 62,912
3,574,203 5,270,462
28 ,035 ,393 25,903,644
3,349,149 3,971,872
3,968,12 3 5,389,650
35,352,665 35 ,265,166
38,926,868 40,535,628
36,383,229 2 1,628,143
12,115,258 20,750,321
48 ,498,487 42 ,378,464
87,425,355 82,9 14,092
KODIAK ISLAND BOROUGH
State ment of Revenue s, Expenses , and Changes in Ne t Pos ition
Proprietary Fund s · Bu siness· Type Act iviti es -Enterpri se Fund s
Year ended Ju ne 30 , 20 14
(Wit h su mmarized financial in fonn ation for the year ended June 30, 2013)
Municipal Kodiak O ther
So lid Was te Fis herie s No nmajor
Collcction and Hospital Rcstarcb En(uprise
Disposal Fa cilities Cent e r Fund
Operatin g revenues :
Charges for serv ices :
So lid waste disposal $ 2,265,967
Lease in come 1,150,000 1,851,322
Other 39,403 439 39,817
Total operating re venues 2,305.370 1,150,000 1,851 .761 39,817
Operat ing expenses:
Personne l serv ices 876 ,3 54 10,100 359,783 3,000
Refuse di sposa l
Co ntracted services 185,284
Maintenance and repair s 141 ,309 1,144
Dep reciation 278 ,342 867,913 636,14 3
General and administrati on 206,793 411,55 0
Misce llaneous 5 ,791 47 ,090 98
Telephone services 36,719
Re cycli ng serv ices 214 ,876
Contributions 39,106
Tota l operating expen ses 1,942,064 883,804 1,455,710 39,8 17
Operat ing income (loss) 363,306 266 ,196 396,051
Other income (expe nse):
In te rgovernmental :
State sources· grant s 5,323,038 2 15 ,000
State of Alaska on·bchalfpayment
Federal so urces -grant s
Co ntr ibut ion to Pro vidence Hosp ital (108,000)
Investment income 67,094 73,207 38,550
Bon d premium amort izatio n 27 ,2 11 113 ,82 1
Bond is suance costs
Landfil l closure and postclosure costs 377,471
Intere st expe nse ( 138,800) (748,721) (225,401)
Tota l other in come (expense) 5,656,0 14 (4 54,6 93) (186,85 1)
Inco me (loss) befor e tran sfers 6 ,0 19,320 (188,497) 209,200
Transfers in 13,500 66,500
Change in net po si tion 6,032,820 (12 1,997) 209,200
Net po siti o n, at be g innin g of year 10,813,768 2 1,385,71 0 10 ,178,986
Net position , at end of year S 16,846,588 2 1,263,713 10,388,186
See accompanying not es to finan cial stateme nts .
30
Total s
20 14 20 13
2,265,967 2,504,035
3,00 1,322 2,323,503
79 ,659 51,477
5,346,948 4,879,015
1,249,237 1,292,778
185,284 352,132
142,453 38 ,981
1,782 ,398 1,774 ,135
618,343 771 ,218
52,979 67,418
36,7 19 84 ,454
214,876 212,243
39,106 37,011
4,32 1,395 4,630 ,3 70
1,0 25 ,553 24 8,645
5,538,038 5,984,095
84,296
1,338
(108 ,000) (108 ,000)
178 ,851 117,702
14 1,032 27,21 1
(112 ,573)
377,47 1
(1 ,112 ,922) (444,756)
5,0 14,470 5,549,3 13
6 ,040,023 5 ,797,95 8
80,000 80,000
6,120 ,023 5,877,958
42 ,3 78,464 36 ,500 ,506
48 ,498,487 42 ,378,464
KODlAK I SLAND BOROUG H
S tatement of Cash Flows
Propri etary Fund s -Bu si nes s -Type Activities -Enterpri se Fu nds
Year ended Ju ne 30, 2014
(Wi th su mmari ze d finan c ia l infonnation fo r the year ended J une 30, 20 13)
Municipal Kodiak Other
Sol id Waste F is h eries Non m ajor
C ollection and n os pital Resear c h Ente rprise T ota ls
Di sposa l Faciliti es Center Fund 2014 2013
Cash flo ws from operating acti viti es:
Cas h rece iv ed from c ustom ers $ 3,399 ,424 1,421 ,7 16 1,81 2,2 4 6 38,320 6,67 1,706 1,602 ,009
Payments to s uppli e rs (3,637,290) (1 ,100,863) (2 4 7,059) (36,725) (5,021,937) 1,888,395
Pa)'J11ent s to e mployees (870,866) (10,100) (359,783) (3,000) {I ,243,749) (1 ,350,745)
Ne t cash provi ded (used) by
operating activi ties (1,108,732) 3 10,753 1,205,404 (1,405) 406P20 2,139,659
Cash flows from noncap it al fina ncing activi ties :
State sources -grants 5,323,03 8 2 15,000 5,538,038 5,984,095
Federal sources -grants 1,338
Contribution to Providence Ho s pital (108,000) (108,000) ( 108,000 )
Int ern a l activi ty -payments to/from other funds (8 ,749) (8,749) 7 1,284
Transfers in 13,500 66 ,500 80,000 80,000
Net cash provided (uscd) by noncapita l
financ ing activi ti es 5,336,538 173 ,500 (8,749) 5,501,2 89 6,028,7 17
Cas h flo ws from capi tal and related
finan c ing activities:
Acqui sition and const ru ction of capital assets (8,470,829) (9,969 ,269) (844 ,13 5) (19,284,233) (10,249,728)
Int erest paid on not es payab le and
in terfund borrowings (111 ,589) (7 48,72 1) (225,40 1) (1,085,711 ) (442,830)
Principal payments on lo ng-tenn notes pa yable
and in terfund borrowin g (287,2 11 ) (79,510) (500,000) (866,72 1) (882 ,858)
Proce ed s fro m issuance of notes pa yab le 3,147 ,7 82 3,14 7,782 18 ,730,03 2
Net cash provided (used ) by capi ta l and
related fin a nc in g acti vities (5 ,72 1,8 47) (I O,797,500~ (1,569,536) ( 18,088,883) 7,154,6 16
Cash nows from investing activit ies:
Interest and di vi dends rece ived 67,094 73,207 38,550 178 ,851 11 7,702
Net c ha nge in cas h and
cash equival ent s (1.426 ,947) (10,240,040) (334,33 1 ) (1 ,405) (12 ,002,723) 15,440,694
Cash and equ ivalents, at beginning o f year 7,466 ,842 18,036,366 3,605 ,5 12 32,0 14 29,140,734 13,700,040
Cash and equ iva lents, at end of year $ 6,039.895 7,796,326 3,27 1,181 30,609 17,138,0 11 29,1 40,734
Reconc il iation of cas h and cash equi valents
to the State ment of Net Pos it ion :
Equity in central treasury $ 5,737,395 6,449,638 3,271,18 1 30 ,609 15,488,823 29,140,734
Re stri cted cash and e quival ents 302,500 1,3 46,688 1,64 9,188
$ 6,039,895 7,796,326 3.27 1,18 1 30,609 17,138 ,0 1 1 29,140,734
(continued )
3 1
KODIAK I SLAND BOROUG H
Statement of Cash Fl ows
Pro prietary Fund s -Business -Type Activities -Enterprise Funds, (Continu ed)
Year ended June 30. 20 14
(Wi th s ummarized financial in fo nnat io n for the year e nded J une 30, 2013)
Municipal Kodiak Othe r
Solid W u tt Fisbe ries Noumajor
ColI «tion and Hos pita l Resea r c h Enterprist
Di s ~osal Facilities Ctnter Fund
Reconciliation of operating income (loss) to n et
cash provide d by operating a cti vities:
Operating income (loss) $ 363,306 266,196 396,05 I
Adj us tTmnts to reco nc il e operating income (loss)
to net cash provided by operati ng acti\'it ies:
Deprec ialion 278,342 867,9 13 636,143
State of Alaska on-behalf payments
Accrual for landfill c los ure and
postclosure costs
Changes in assets and li abilities that
provided (used) cash:
(Increase) decrease in assets:
CUS lomer receivables (17,786) (39,515) (1,497)
Accounts re ceivable -Slale of Alaska 1,098 ,3 40 271 ,7 16
Accounts receivable -Federal govemm ent
Prepaids (2 ,484)
In ven tories (320,925)
Increase (decrease) in liabil it ies:
ACCOlUUS payable (1,4 30,0 19) (1,095,072) 213,066 92
Accrued compensation 5,488
Other accrued li abilities (52,438) (341 )
Landfill closure and postclosure costs (1,0 44.056)
Unearned revenues 13 ,500
Net cas ~ pro\'ide~ (used) by
(1,1011,732) 3 1U,753 1,2U5,4U4 operatmg act IvItIes , { I,4U5 1
See accompanyin g notes to fi nancial statements.
32
Totals
2014 20U
1,025,553 248,645
1,782,398 1,774,135
84,296
(8 ,295)
(58.798) 32,152
1,370,056 (3,403,372)
80,7 14
(2,484) (195)
(320.925)
(2,311 ,933) 3,357,643
5,488 (25,763)
(52,779) (13.801)
(1.044,056)
13,500 13,500
4U6 ,020 2 ,139,659
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
June 30, 2014
(1) Summary of Significant Accounting Policies
(a) Reportillg Elltity
The Kodiak Island Borough (the Borough), Ala ska , wa s organized to perform the municipal dutie s
allowed by Alaska Statute s and as directed by it s residents. As required by accounting principle s
generall y accepted in the United States of America , these financial statements pre sent the
government and it s component unit, an entity for which the government is considered to be
financiall y accountable. The discretely presented component unit is repOlted in a separate column in
basic financial statements to empha s ize it is legally separate from the government. The Borough
reviewed its relation ship with other organization s and determined that the following organization is a
component unit.
Discretely Presented Component Unit
The Borough ha s delegated the operating respon s ibility for public education to the Kodiak Island
Borou g h School Di strict (School District). In accordance with statutes, the Borough retain s
ownership of the education related capital ass ets and incurs the debt, if nece ss ary , to finance the
acqui s ition and con struction o f school facilitie s. T he Borou gh Assembly approves the total annual
budget of the School District and may, during the year, increa se the total appropriation.
Complete financial statements for the component unit ma y be obtained at the entity 's admini strative
offices for the Kodiak Island Borough School District.
Kodiak Is land Borough School Di strict
722 Mill Bay Road
Kodiak, Alaska 99615
(b) GoveTllme"t-Wide alld FUlld Fillallcial Statemellts
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.
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 I) 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 enterpri se funds , if applicable, are reported as
separate columns in the fund financial statements.
33
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
(c) Measurement Focus, BllSis of Accollnting, and Finllncial Statement Presentation
The government-wide financial state men ts are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial sta tements. Revenues
are recorded when earned and expenses are recorded when a liability is incun·e d, 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 item s are recogni ze d as revenue as soon as all eligibility requirements
have been met.
Governmental fund financial sta tements are reported using the current financial resources
measurement focu s and the mod ified accrual basis of accounting. Revenues are recognized as soon
as they are both measurabl e and available . Revenues are considered to be available when they are
collectible within the current peri o d 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 dle current fi s cal period except for grant revenues which are recognized when
the related expenditure is incurred irre s pect ive of when the cash is received. Expend iture s 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
s usce ptible to accrual and have been recognized as revenues of the current fi sca l period. All other
revenue items are considered to be measurable and available only when cash is received by the
government.
The gove rnment reports dle following maj o r governmental funds :
The General Fund is the gove rnment's primary operating fund. Jt accounts for all financial
resources of the general gove rnment, except those required to be accounted for in another fund.
The Education Support Special Revenue Fund accounts for property taxes and assessments
dedicated to school district support activity.
The Facilities Special Revenue Fund accounts for the proceeds from the sale of Shuyak Island.
The single most important goal is to preserve the principal of the fund . Interest earnings, after
inflation proofing, can be used for debt service, building insurance and capital projects.
The Education and Health Debt Service Fund was established to finance and account for the
payment of interest and principal on all general obligation debts, serial and term, odler than that
payable exclusively from special assessments and revenue debt issued for and serviced by a
government enterprise fund.
The Kodiak High School Renovation Capital Project Fund accounts for the construction and
major maintenance activities for the Borough's educational facilitie s funded by school bonds.
The Renewal and Replacement Projects Capital Project Fund accounts for the construction and
maintenance of various Borough facilities .
34
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Co ntinued
The government reports the following major proprietary funds:
The Municipal So lid Waste Co llection and Disposal Fund accounts for the co llect ion and di s posa l
of solid waste and recycling serv ices for the Kodiak Island Borough .
The Hospital Facilities Fund accounts for rent s on the Borough owned ho sp ital; ho sp ital related
state revenue sharing; and other ho spital related revenue. In turn , it purchases hospital equipment
and makes debt serv ice pa yment s on ho spital related debt.
The Kodiak Fisheries Research Cen ter Fund accounts for rents and expenses on the Borough
owned Kodiak Fisheries Research Center. The three tenants: NOAA, Alaska Department of Fish
& Game and University of Alaska, Fairbanks pay lea se funds to participate in this multi-agency
re sea rch facility committed to the preserva tion of the North Pacific marine ecosystem and
reso urce s.
As a general rule the effect of inter-fund activity has been eliminated from the government wide
financial stateme nts. Exceptions to thi s general rule are charges between various function s of the
government. Elimination of the se charges would distort the direct costs and program revenues
reported for the various functions concerned.
Amounts reported as program revenues include (I) charges to customers o r applicants for goods,
se rvices, or privileges provided , (2) operating grants and contributions, and (3) capital grants and
contributions. Intelllall y dedicated resources are reported as ge neral revenue s rather than as program
revenue s. Likewise , general revenues include all taxes .
Proprietary funds distinguish operating revenues and expenses from nonoperating item s. 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
revenue s of the enterprise funp s are charges to customers for sa les and serv ice s and lea se reve nue s.
Operating expenses for enterprise funds include the cost of sales and se rvices, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition
are reported as nonoperating revenues and expenses.
(d) Assets, Liabilities, alld FUlld BalallcelNet Positioll
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 Inve stment 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 inve stment manager.
The AMLIP manager is required to produce monthly disclosure statements to the pool. The pool has
also reta ined an investment advisor to monitor the performance of the investment manager and to
ensure compliance with investment policie s. 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 le ss. On a monthly basis , the investments in the pool are
reviewed for fair value by an independent pricing serv ice .
35
KODIAK ISLAND BOROUGH
Notes to Basic Financia l Statements, Continu ed
All highly liquid investments, excluding restricted assets , with original maturities of ninety days or
less are con s idered to be cash equivalents. For purposes of the Statements of Cash Flow s, equity in
central trea sury held by e nterpri se funds are treated as cash equivalents .
lnvestments for the government, as well as the component unit, are repOlted at fair value , as
deternJined by quoted market prices. The reported value of the pool is the same as the fair value of
the pool share s .
Receivables and Payables
Act ivity between fund s that are repre sentative of lending /borrowing arrangements out standing at the
end of the fi scal year are referred to as either "due to /from other fund s" (i.e., the current portion of
inter-fund loans) or "advances to /from other fund s" (i.e., the noncurrent portion of inter-fund loans).
Any re s idual balances outstanding betweeiJ the governmental activit ies and business type activities
are reported in the government wide financial statements as "interna l balances."
Advances between fund s, as reported in the fund financial statements, are offset by a fund balance
re serve account in applicab le governmental funds to indicate that they are not available for
appropriation and are not expendable available financial re sources.
Inventories and Prepaid ltemslExpenses
Expendable operating supplies of the Borough are accounted for using the purchases method. There
are no s ignificant amounts of s uch inventories on hand at year end. The entire Ho spital Enterprise
Fund inventory is assigned to Providence as of Apri l 21 ,1997. According to the terms of the lease
agreement for the hospital facilities [see note 13(a)], those item s are required to be returned to the
Borough at the ternJination 'ofthe lease in at le ast equa l value.
Payments made to vendors for services that are applicab le to future accountin g periods are recorded
as prepaid items. The prepaid as sets do not reflect current available re sources and , thus, an
equivalent portion of fund balance is clas sified 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 estimated fair market va lu e at the date of donation.
The costs of nonnal maintenance and repairs that do not add to the va lu e of the asset or materially
extend assets lives are not capitalized .
Major outlays for capita l assets and improvements are capita li zed 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.
36
KODIAK ISLAND BOROUGH
Notes to Basic Fin ancial Statements, Co ntinued
Property, plant, and eq uipment of th e primary gove rnment is deprec iat ed us in g th e stra ight lin e
me thod over the foll ow in g estimated use ful live s:
Buildings and improvem e nts
Improvements other than buildings
Equipment
infra structure
Compensated Absences
10-40 years
10-15 years
5-10 years
40 yea rs
It is the Borough's policy to pelmit e mployees to accumulate earned but unu sed annual leav e
benefits. All annual leave pay is accrued when incurred in the government wide and proprietary fund
financial statements. A liability for the se amounts is reported in governmental fund s only if they
have matured, for example, as a re sult of employee re signation s and retirements.
Long-term Obligations
In the government wide financi a l statements, long-ternl debt and other long-term obligations are
rep0l1ed as liabilitie s in the applicable governmental activitie s, bu s ines s ty pe activities, or
prop rietary fund Statement of Net Position. Bond premium s and di sco unts are d eferred and
am o rtized over the life of the bonds using the effective interest method. Bonds payable are reported
net of th e applicable bond premium o r di sco unt. Bond iss uance costs are expensed in the year
incurred.
In the fund financial statements, go vernmenta l fund type s recognize bond premiums and di sc ounts,
as well as bond iss uance costs , during the current period. The face amount of debt issued is reported
as o ther financing sources. Premiums received on debt iss uances are reported as other financing
sources while discounts on debt issuances are reported as other financing use s . Issuance costs, -
whether or not withheld from the actual d e bt proceed s received, are reported as debt service
expenditures. interest on long-teml obligations is recorded as an expenditure when due.
Net Position
In the government wide financial statements, net position is reported in three categoties; net
investment in capital assets , restricted net position and unrestricted net position.
Net position is reported as restricted when constraints placed on net asset use are either externally
impo se d by creditors (such as thro ugh debt covenants), grantors, contributors provisions or laws or
regulations of other governments or imposed by law through constitutional provision s or enabling
legislation .
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 fOml (such a s
inventory , prepaid expenses, supplies, and long-teml receivables). Such constraint is binding until the
legal or contractual requirement is repealed or the amounts become spendable.
37
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
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 spec ific purposes detennined by a
fonnal action of the Borough Assembly, the Borough's highest leve l of decision-making authority.
Commitments may be changed or lifted by the Assembly taking the same fOimal action that imposed
the constraint originally. The fOl1nal action that is required to be taken to establish, modifY or rescind a
fund balance commitment is for the Assembly to pass a resolution.
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 F inance 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 for FY21 04 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 s pending, 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 t he 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 school district s upport, fire and road
service areas, federal and state grant programs, street lighting districts, 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.
38
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Co ntinu ed
Taxes are du e when billed and ge nerall y become de linqu ent on or after October 16th . 11,e Boro ug h
code al so provid es for sp lit pay ment s. If a taxpayer ava il s him se lf of thi s prov ision , o ne-h a lf must be
pa id on or befo re Augu st 15th and the re maind er becomes due o n o r befo re Nove mb e r 15th (in lie u
of October 15th ). Borough property tax reve nu es are r ecognized in the fi scal year in which th ey
become mea surable and ava ilabl e, which is generally th e ye ar following t he yea r t he tax bill s are
mailed.
All taxes are delinquent on Novembe r 16th, and a tax foreclosure process may com me nc e as outlined
in Alaska Statutes Titl e 29. Briefly, thi s ent ai ls the petition for Jud gment of Foreclosure s ig ned by
the District Co urt Judge a nd the publication of a ll delinquent ta xes in t he local new spaper fo r four
consecutive weeks.
Real prope rty tax lien s are e nforced by one general for eclos ure proceeding again st the de linquent
properties.
Prior to FY2012 all area w id e property taxes were depos ite d into th e Genera l Fund and tben
transfened to the other area wide funds . As of FY2012 the Boro ugh ha s set a separa te mill rate for
each area w ide fun ction th at wa s funded by property taxe s. Fo r FY2014 th e Borough set a mill rate
of 0.03 mill s fo r th e General Fund , 8.75 mill s for th e Edu cation Support Spec ial Re ve nu e Fund , 1.81
mills for the De bt Service Fund and 0.16 mill s for the Renewal and Replacement Projects C apital
Project Fund for a total area wide mill rate of 10 .75. This was the same mill rate as FY2013.
Severance Taxes
Severance taxes are based o n the am ou nt and value of natural re so urces seve red from the
environment. Types of reso urces taxed include seafood, gravel and mineral re so urces, and timber.
Severance tax returns are se nt to appropriate companies (as determined by the Bo rough Assessor)
and are re turned to the Borough Finance Department. The return s are filed quarterly, and are due by
the end of the month following the quarter 's end. Borough severance tax revenue s are recognized in
the fiscal year in which they become mea s urable and available.
Intergovernmental Revenue
State s hared 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
re ceived within approximately two month s after yea r e nd .
State of Alaska and Federal government cost reimbursable g rants and contracts are recorded to the
extent o f 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 Boro ugh 's policy to use re stricted resources first, then unrestricted resources as they are needed .
39
KODIAK IS LAND BOROUGH
Notes to Basic Financial Statements, Continued
Operating and Nonoperating Revenue and Ex penses
Proprietary funds distinguish operating reve nu es and expenses fro m nonoperating item s. Operating
revenues a nd expenses ge ne rall y re sult from providing services and producing and deliv erin g goo ds
in connection with a proprietary fund 's principal ongoing operations. The princip a l operating
revenu es o f the Municipal Solid Wa ste Co llecti o n and Di sposal Fund and 911 Service Fund are
charges to customers for se rvi ces. The princip a l o perating rev enues of the Ho spital Facilities Fund
and the Kodiak Fi she ri es Researc h Center Fund are rents from customers. Operating expenses for
proprietary funds includ e costs of services, administrative expen ses, and depreciati o n o n capital
assets. All revenue s and ex penses not meet in g thi s definition are reported as non operat in g revenues
and expenses.
Revenue from hlvestments and Property
Amounts earned on inve stment of available cash balances and the rental of building facilities are
re corded in the period to which they relate, includin g accrual at yea r end of the bal a nce due , and
unr ea li ze d ga in s and losses o n inve stments held at fi sca l yea r end.
Land Sales Proceeds a nd Otber Local R ev enues
Amounts received pursuant to land sale contracts are recorded on the mod ified accrual ba sis in the
fund financial statements and the accrual bas is in the go vernment-wid e financial statements.
Other loca l revenue s are recorded on a bas is consistent with their nat ur e in relation to meas urement
and avai labili ty standard s .
(f) Cash Flows
All highly liquid investments, excluding restricted assets, with original maturities of three mo nths or
le ss are considered cash equivalents for purposes of th e statement of cash flows .
(g) Use of Estimates
Preparati on of financial state ments in accordance with accountin g principles generally accepted in
the United States of America requires management to make estimates an d assumptions that affect the
amounts reported in th ese financial statement s. Actual results may differ from the estimates.
Significant estimates include the allowance for doubtful accounts , the useful lives of assets and
related accumulated depreciation, and accrued landfill closure and post-closure care costs.
(2) Stewardship, Compliance, and Accountability
(a) Excess of Expenditures over Appropriations
The following fund expenditures exceeded their budget:
Fund
Special Revenue Funds:
Ed ucation Support
Kodiak Airport fire District
Debt Se rvice Fund -
Edu catio n and Health
Total expenditures exceedin g budgets
40
Excess
500
59
98,835
$ ==9;,;;9,;;;,3;;,94;,.
KODIAK ISLAND BOROUGH
No te s to Basic Financial Statements, Continued
(b) Deficit Fund Equity
The individual fund de ficit s at June 30, 2014, are as follows:
Special Revenue Funds:
Edu ca ti on Supp ort
L.E.P.C
Trinity Island Paving
Oil Spill Di sa ster
Renew al and Repl ace me nt Projec ts Cap it a l Project Fund
Tota l fund deficits
$ 31 ,674
17,82 1
11 ,985
10 ,566
2,804 ,587
$ 2,876 ,633
The d e ficit in Edu c ati o n Support Fund, L.E.P.C. Fund , a nd Trinity Is land Paving Fund will all be funded
by t ra nsfe rs in fro m the General Fund in FY2015.
T he deficit in the Renewal and Replacement Projects Ca pital Proj ects Fund will be c overed by a loa n from
th e Fac ilitie s Special Revenue Fund , which w ill then be repaid by a mill rate in c rea se.
(3) Cash and Investments
A portion of the Borough 's investm ent s are in the Alaska Municipal Lea g ue Investment Pool (AM LIP).
The investm e nt in AMLIP represents the Borough 's share of ownership in the pool rath er than o wn e rship
of s pecific sec uri t ie s . The fair values of the investments in the pool approximates amortized c ost and is
equal to the value of pool s hares. To o btain a copy of AMLIP's financial statements contact Key Trust of
Alas ka at 10 I West Ben so n Blvd ., Roo m 302 , Anchorage, Alaska 99503 .
As of June 30 , 2014, the Borough had the foll owing investments:
Investment Maturities !in ~ears}
Fair Less
Investment Type Value than I Ito 5 6 to 10
U.S. Agency Securities:
Federa l Hom e Loan Bank $ 12 ,738,3 06 8,260 ,897 4,477,409
Federal Horne Loan
Mortgage Corporation 5,118 ,445 2,007 ,145 3,111 ,3 00
Federal Home Loan Di sco unt Note 19,999,500 19 ,999 ,500
Federal Farm Cred it Ban k 1,189 ,343 1,189 ,343
Federal National Mortga ge Association 5,080,076 999 ,980 4,080,09 6
Municipal Obligations 29,401 ,333 5,428 ,793 2,699 ,41 9 21 ,273,121
Alaska Municipal League Inv estme nt Pool 14 ,65 7,777 14 ,657 ,777
Cert ifi cate s of Depo sit 948 ,897 948,897
$ 89 ,133,677 51,354,092 15,3 17,121 22 ,46 2,464
In addition to the inve stments li sted above, Kodiak Island Borough also had cash equivalents of
$5 ,833 ,443 .
41
KODIAK ISL AND BOROU GH
Notes to Basic Financial Statements, Continued
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 fonnal investment
policy that restricts investments based on credit risk.
At June 30, 2014, the Borough's U.S. agencies bonds were rated AAA by Standard & Poor and Fitch
Ratings, and AAA by Moody's Investor Service. At June 30, 2014, the Borough's investment in the
Alaska Municipal League Investment Pool was unrated.
Concentration of Credit Risk
The Borough places no limit on the 1lI110untthe Borough may invest in anyone issuer. At June 30, 2014,
the Borough had 50% percent of its investments in U.S . Government agency securities.
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 DepositoI)' Insurance Corporation (FDIC) to a
maximum of $250,000. U .S. Treasury obligations collateralize the remaining bank balance, which is held
by Bank of New York in a Tri-party collateral agreement with Wells FargQ, the pledging fmancial
institution's agent, in the Borough's name.
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, 2014 . -
(4) Annual Appropriation to the School District
An armual appropriation is made to the School District. In addition to the annual appropriation, the
Borough provides the School District, without charge, general liability and property insurance, data
processing services, the annual independent audit, mental health serv ices, and grounds maintenance
services.
42
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
(5) Receivables
Governmental Funds
Eduado. and Education and
Capital Project Funds
Kodiak High Rmewaland Other Total
General Support Special BealtbDebt Sellool Replacement Govtramentll Govenmental
Fund Revenue Fund Servlu: Fund Renovation Projects Fund, FUDds
Receivab le s:
Grut~· $ 292,983 49,3 96 338 ,86 4 70,160 43 ,83 8 176,1 40 971,381
Taxes 434,511 170,206 33,486 . 2,580 17,776 658 ,55 9
Customers and other 14,740 B,982 87,722
Gross ro::eivablca 742,234 219 ,602 372,350 70,160 46 ,4 18 266,898 1,717,662
Less: al lowance
for unco Jl ectibles (15,828) !,5,828 1
Net total receivables S 726,406 219,602 372,350 70,160 46,418 266,898 1,701,834
Entt!l!rue FuDds
Mumcipal Kodiak Othe,
SoUd Waste Fisheries NODlDljor Total Total Total
CoUection UoopiUl Ratarch EBterprise Ellta'prise Go vcrDmentll Pri .... ry
and !!!e0sal Fac:iJities Ceo", Fund hads Fuods Goveroment
Receivables:
Grut~ $ 4,047,505 38,553 4,086,05 8 971,381 5,057,439
Taxes 658,559 658,559
Customers and other 260,897 40,046 6,110 307,053 87,722 394,775
Gross receivables 4,308,402 38,553 40 ,046 6,110 4,393 ,111 1,717,662 6,110,773
Less: allowance
for WlCOllcctibles (15,828 1 !15,B28 1
Net total receivables $ 4,308,402 38,553 4l!,M6 6,110 4~§3 .111 1,701 ,834 6,094,945
(6) Deferred Inflows and Uaearned Revenues
Govenlmental funds report deferred inflows in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Govenunental funds also report
unearned revenues in connection with resources that have been received, but not yet earned, At June 30,
2014, the various components of deferred inflows and unearned revenue reported in the governmental
funds were as follows:
Unavailable property taxes receivable
Unavailable land sales receivable
Grant advances prior to expending all proceeds
Total unavaiIablelunearned revenue
for governmental funds
$
$
43
Unavailable
194,852
513,165
54,163
162.180
Unearned
134,815
134,815
Total
194,852
513,165
188,918
897595
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
(7) Capital A ssets
As noted in Footnote (12), the Borough leases the Kodiak Island Hospital and Care Center to Sisters of
Providence. The value of the leased assets and associated depreciation are reflected in the Hospital
Facilities Fund following.
Capital asset activity for the year ended June 30, 2014 was as follows :
Beginning liiuling
Balance Increase Decrease Balance
Governmental activities:
Capital assets, not being
depreciated:
Land $ 23 ,467,304 (194 ,516) 23 ,272,788
Construction
work-in-progress 12,604,897 35,560,550 P02,450) 47,862,997
Total 36,072,201 35,560,550 ~496,96~ 71,135,785
Capital assets , being depreciated :
Buildings and improvements III,772, 770 55,OIl IIl,827,781
Improvements other than .
buildings 21,164,554 53,084 21 ,217,638
Equipment 2,936,661 241,795 3,178,456
Infrastructure 5,762,722 5,762,722
Total 141,636,707 349,890 141,986,597
Less accumulated depreciation for:
Buildings and improvements 64,687,487 2,551,704 67,239,191
Improvements other than
buildings 6,177,095 1,150,876 7,327,971
Equipment 2,004,229 195,411 2,199,640
Infrastructure 4,787 ,393 144,068 4,931,461
Total 77,656,204 4,O4!.059 81,698,263
Total capital assets
being depreciated, net 63,980,503 p,69~169~ 60,288,334
Total governmental
activities , net $ 100,052,704 31,868,381 ~496,966) 131,424,119
44
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continned
Beginning Ending
Balance Increase Decrease Balance
Business-type activities:
Municipal Solid Waste Collection
and Disposal Fund capital assets,
not bcing depreciated:
Land $ 1,651,248 1,651,248
Construction work-in-progress 9,631,578 8,470,829 18,102,407
Total 11,282,826 8,470,829 19,753,655
Capital assets, being depreciated:
Unclassified utility plant in
service 2,178,733 2,178,733
Improvements other than
buildings 2,410,717 2,410,717
MachineI)' and equipment 1,928,803 1,928,803
Total 6,518 ,253 6,518,253
Less accumulated depreciation fur:
Unclassified utility plant in
service 1,169,411 42,055 1,211,466
Improvements other than
buildings 1,301,154 132,666 1,433,820
MachineI)' and equipment 1,481,881 103,621 1,585,502
Total 3,952,446 278,342 4,230,788
Total capital as sets
being depreciated, net 2,565,807 ~78,342l 2,287,465
Total Municipal Solid
Waste Collection and
Disposal Fund, net $ 13,848,633 8,192,487 22,041,120
45
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continu ed
Beginning Ending
Balance Increase Decrease Balance
Hospital Facilities Fund, Capital
assets , not being depreciated:
Artwork .$ 16,091 16 ,091
Land 10 ,251 10 ,251
'Construction work-in-progress 10 ,971 ,693 9,969,269 20,940,962
Total 10 ,998 ,035 9,969,269 20 ,967,304
Capital assets, being depreciated:
Building s 27 ,131,044 27 ,13 1,044
Improvements other than
building s 401 ,046 401,046
Machinery and equ ipm ent 3,627 ,068 3,627,068
Total 31 ,159 ,158 31,159,158
Less accumulated depreciat ion for:
Bui ldings 14 ,922,012 800,044 15,722 ,056
Impr oveme nt s other than
building s 197 ,122 14,176 211,298
Machinery and equipment 3,401 ,388 53,693 3,455,081
Total 18 ,520 ,522 867,913 19,388,435
Total capital assets being
depreciated , net 12,638,636 (867 ,913) 11,770,723
Total Hospital Facilities
Fund , net $ 23 ,636,671 9,101,356 32 ,738 ,027
46
-' I
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements , Co ntinued
Beginning Ending
Balance Increase Decrease Balance
Kodiak Fisheries Re se arch Center Fund
Ca pital assets , not being depreciated:
Cons tru cti on work-in-progress $ 18 7,238 844 ,135 1,031,373
Capi tal assets, being depreciated :
Buildings 17,840 ,410 17 ,840 ,410
Improve ment s other than buildin gs 1,058 ,26 1 1,058,261
MachineI)' and equipment 1,187 ,679 1,187,679
Tota l 20,086 ,350 20,086 ,350
Less accumu lated depr eciatio n for:
Buildings 8,323,761 594,683 8,918,444
Improvem ent s other than buildings 481,785 35,432 517 ,2 17
MachineI)' and equipment 1,161 ,559 6,028 1,167,587
Tota l 9,967, I 05 636 ,143 10 ,6 03,248
Total capital ass et s being
depr ec iated , net 10,119 ,245 (636 ,14 3) 9,483 ,102
Total Kodiak Fi sherie s
Re sea rch Center Fund , net $ 10 ,306,483 207,992 10 ,514 ,475
47
KODIAK ISLAND BOROUGH
Notes to Basic Financia l Statements, Continued
Beginning Ending
Balance Increase Decrease Balance
Total bu siness-ty pe activities:
Capita l assets, not being
depreciated:
Artwork $ 16 ,09 1 16 ,091
Land 1,66 1,499 1,66 1,499
Co nstructi on work-in -progress 20,790,509 19,28 4,23 3 40,074,742
Total 22 ,468,099 19,284,233 41 ,752,332
Capital assets, being depre ciated:
Unclassified utility plant in
serv ice 2 ,178 ,733 2 ,178 ,733
Buildings 44 ,97 1,454 44 ,971,454
Improvement s other than
buildings 3,870,024 3,870,024
Machinery and equipment 6,743,550 6 ,743,550
Total 57,763 ,761 57 ,763 ,761
Less accumu lated depreciati on for:
Un classified utility plant in
se rvice 1,169,411 42,055 1,211 ,466
Bui ldings 23 ,189,205 1,394,727 24,583,932
Improvement s other than
bui lding s 2 ,036,629 182 ,274 2,218,903
Machinery and equipment 6,044,828 163,342 6,208,170
Total 32,440,073 1,782,398 34,222,471
Total capital assets
being deprec iated, net 25,323,688 (1 ,782,398) 23,541 ,290
Total business-type
activities, net $ 47 ,791,787 17,5 01,835 65,293,622
48
KODIAK ISLAND BOROUGH
N o tes to Basic Financial Statements, Contillued
Depreciation expense was charged to t he departments and functions ofthe prim ary governm e nt as follows:
General government
Public sa fety
Emergency prepa redness
Primary and seco nd ary educati o n
T ot al -governmenta l ac tiviti es
Business-type activitie s:
Municipal so lid wa ste collection a nd
disposal
Hos pital facilitie s
Kodiak fi s herie s research center
Total -bu s in ess -ty pe activities
Total primary governm ent
(8) Interfund Receivables, Payables and T ransfers
(aJ filter/and Receivables allli Payables
In terfund balances at June 3 0, 20 14 cons isted of the following:
(1) Due to / from other funds:
Receivable Fund Payable Fund
M ajo r gove rnmental fund s:
$ 652 ,877
174 ,917
2,500
3,211,765
4,042 ,059
278 ,342
86 7,9 13
636 ,143
1,782 ,3 98
$ =.;;5~,8;;;,24,;,;,4,;,;5;,;,7=
General Fund
General Fund
General Fund
R e newa l and Replacement Projects $
Facilities Special Revenue Fund
Other Governmental Funds
Kodiak Fisheries Research Center Enterprise Fund
General .Fund
Total primary government
(2) Advances to / from other funds:
Rece ivable Fund Payable Fuod
$
Majo r governmental fund s -
Facilities Special Revenue Fund Renewal and Replacement Project $
Hospital Facilities Enterprise Fund
Kodiak Fisheries R esearch Center E nterpris e Fund
Amount
95 ,0 72
60,2 42
54,163
174,3 12
383,789
Amount
2,745,028
876,8 72
3,095 ,000
Total primary gove rnm ent $ =~6h' 7,;,;1 6;g;,9,;;,00~
49
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
The balance of $3,095,000 due the Facilities Fund from the K.F.R.C. Fund resulted from a loan of
$8 ,000,000 that was made to help pay for the . construction of the building. $2,555,000 is not
sc heduled to be paid in FY2015 and is record ed as a noncurrent liability in advances from other
funds.
The balance of $876,872 due the Facilities Special Revenue Fund from the Hospital Facilities
Enterprise Fund re sulted from a loa n of $1,600,000 that was made part of the cost of a lawsuit.
$794,149 is not sc heduled to be paid in FY20 15 and is recorded as a noncun'e nt liability in advances
from other funds.
All remaining interfund balances were s hort term loan s to cover negative cash balances at year end.
The outstanding short tern1 balances between funds result from the time lag between the dates that
(J) inter-fund goods and se rvice s are provided or reimbursabl e expenditures or expenses occur,
(2) tran sac tions are rec orded in the accounting system, and (3) payments between funds are made .
(b) LOllg-term bllerftilul Borrowillgs
In October 199 7 the Facilities Special Revenue Fund loaned $8,000,0 00 to the Kodiak Fisheries
Research Center Enterprise Fund. This loan was to help finance the construction of the Kodiak
Fisheries Research Center. The loan from the Facilities Special Revenue Fund is accounted for as a
long-term inter-fund advance , while the liabi lity in the Kodiak Fisheries Re search Center Enterprise
Fund is accounted for as a long-term inter-fund borrowing. The advance bears interest at 7%, and the
scheduled payments for the next five fiscal years ended and thereafter are as follows:
Princil!al Interest Total
Year ending June 30:
2015 $ 540,000 19 7,750 737,750
2016 575,000 158 ,725 733,725
2017 615 ,000 117,07 5 732,075
2018 660,000 72,450 732,450
2019 705,000 24,675 729 ,675
$ 3,095,000 570,675 3,665 ,675
50
(c)
Tr ansfers Oul
Major Governmenta l Funds:
General Fund
KODIAK ISLAND BOROUGH
Notes to Bas ic Financial Statements, Continued
In July 2 00 3, the Facilities Special Revenue Fund loaned $1,600 ,000 to the Hos pita l Facilities
Enterp ri se Fund in order to he lp fund c urren t operations. The loan from the Facilities S pecial
Revenue Fund is accounted for a s a lo ng-te rm interfund advance , while th e liability in the Hos pital
Faci litie s Enterprise Fund is acco unted for as a long-term interfund borrowing. The advance bears
interest at 4%, and the sc hed ul ed pay me nt s for the next five fiscal ye ar s and there aft e r are as follows:
Princil!al Interest T otal
Year en din g Jun e 30:
20 15 $ 82 ,723 34,255 11 6,978
20 16 86 ,06 5 30 ,9 13 116 ,978
2017 89,542 27,436 116 ,978
20 18 93,159 23,819 116,978
20 19 96 ,923 20 ,056 116 ,979
2020-2023 428,460 39,45 1 467,9 11
$ 876,872 175,930 1,052 ,802
Trallsfers
Interfund tran sfers have been made in accordance with budget ordinances. Funds are transferred
from one fund to s upp ort expend it ures of ot her funds in accordance with the a uth ority esta bli shed for
the individual fund . Transfers between funds during the yea r ended June 30, 20 14, were as follows:
Transfers In
CO \'ernm ental Fund s Enl erl!ri se Fund s
R en~'.1 and
Education Educati on Replacement Municipa l
Support and Hea lth Pro jects Other So lid WlS le Ho spit al
Specia l Reve nue Debt Service Ca pital Projet'l Governmental Co ll ection and Facilitits
fund Fund Fund Funds Di sl!2 sa l Fund Fund Tota ls
I 220.000 250.000 13,500 483.500
Facilities Special Reve nu e Fund 11 0,000 232 ,402 161,%3 18,000 522,365
Other Governmenta l Funds 661500 661500
Total transfe~ S 330,000 482 ,402 161,963 18,000 13,500 66,500 1.072,3 65
A s ummary of significant transfers are as follows:
• The General Fund tran sfe rre d $220,000 to the Education Support Special Revenue Fund to
cover school di stri ct suppo rt.
• The Genera l Fund transferred $250,000 to the Education and Health Debt Service Fund to
pa y for debt se rvice on sc hoo l di strict and hospital bonds .
• The General Fund transferred $13 ,500 to the Municipal Solid Waste Collection and Disposal
Enterprise Fund to pay for garbage disposal for area thrift shops.
51
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
• The Facilities Special Revenue Fund tran sferred $110,000 to the Education Support Special
Revenue Fund to cover schoo l district insurance costs.
• The Fac iliti es Special Revenue Fund transferred $232,402 to the Education and Health Debt
Service Fund for debt se rvice on schoo l di s trict and ho s pital bonds.
• The Facilities Special Revenue Fu nd transferred $161,963 to the Renewal and Replacement
Projects Capital Project Fund to pay for capital improvements .
• The Faci lities Special Revenue Fund transferred $18 ,000 to the Buildin g and Grounds
Special Revenue Fund to pay additi ona l s now removal costs at school sites.
• The Fern Fuller Trust Specia l Revenue Fund transferred $66 ,500 to the Hospital Facilities
Enterprise Fund for the purchase of new equipment.
The remainder of this page left blank intentionally.
52
(This page was left blank intentionally)
KODIAK ISLAND BOROUGH
Notes to Bas ic Financial Statements, Continued
(9) L ong Term Debt
(a) Gelleral Obligatioll BOllds alld otfler Debt
The Borough iss ues ge nera l obligation bond s a nd other debt to provide fund s for the acq uisition and
con struction of maj or cap it a l facilities. General ob li gation bond s a re direct ob li gat io ns a nd pledge the
full faith and cred it of the Borough. Genera l ob li gati o n bond s and other debt c urrentl y outstandin g a re
as fo ll ows :
Interest Principal I!!;tments
TYI!: of debt Rates Dates Issue dates J\1aturi!l: dates Dates Amount
Gen era l obligation
bo nd s -2004 C Se ri es 4 .0-5.00A, 1/1-7/1 7 /2112004 7/1/20 14 071011 14
Gen e ral ob ligat ion
bonds -2004 0 Series 4 .0% S/]-l l1 l 121 1/2004 1 111120 14 111011 14 530,000
530.000
General obligatio n
bonds -2008 A Series 4.0-5.0% 4/1-10/1 11 /112008 4/1/2028 04/0 1115 335,000
04/01/16 350.000
04 /011 17 370,000
04/011 18 380,000
04/011 19 400,000
04/01/20 4 15,000
04/0 112 1 430,000
04 /01122 450,000
(WOIl23 470,000
04/01124 490,000
04 /01125 515,000
04/0 1/26 540,000
04101 127 565,000
04/01128 595,000
6,305,000
Ge neral o bligation
bonds -2009 A Series '3.54% 2/1-8/1 4 /912009 211120 14 021 14 /14
53
KODIAK ISLAND BOROUGH
Note s to Ba s ic Financial Statements, Continu e d
Authorized Prior Icars Balance at Retiredi' Balance at
Fiscal year Anlount Iss u cd R e tire d Julv 1.2013 Iss ued Refunded June30,2014
2004 9 ,300,000 9 ,300,000 8 ,865,000 435,000 435,000
2004 11 ,050,000 11 ,050,000 10,0 10,000 1,040,000 5 10 ,000 530 ,000
2008 8,000,000 8,000,000 1,375,000 6 ,625,000 320 ,000 6 ,305,000
2009 6 ,740,000 6 ,740,000 5 ,295 ,000 1,445,000 1,445,000
54
KODIAK ISLAND BOROUGH
Notes to Bas ic Financi a l Statements, Continued
Intcrest Princie!1 ~l:!!!ent.s
Tl2: ofdcbt Rates Dates Issue date Maturity dates Date s Amount
General o bligatio n
bonds -201 1 Serie s One 2.05%-S.200/o 9/1-3 /1 311 /20 11 3111 203 1 03 /0111 5 305,000
03/01116 310,000
03/01 /17 320,000
03 /01 /18 330,000
03 /01119 340,000
03 /0 1/20 355 ,000
03 /01 12 1 370,000
03 /01 /22 3 85 ,000
03/01123 405 ,000
03 /01124 425,000
03 /01 125 445 ,000
03 /01126 465 ,000
03/01 /27 485 ,000
03/01128 510,000
03/01129 535,000
03 /0 1/30 565,000
03 /01 /3 1 595,000
7,145,000
General ob ligation
bonds -2012 Series A 2.0-5.0% 311 -911 5124120 12 91112024 91112014
91112015 435,000
911120 16 455,000
911120 17 460,000
9/112018 480,000
9f112019 495,000
91112020 525,000
9/1/2021 545,000
9/1/2022 570,000
9/112023 600,000
91112024 630,000
5,195 ,000
55
Authorized
Fiscal year Amount
2012 8,000,000
2012 5,230,000
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
Prior years
issued Retired
8 ,000 ,000 560,000
5,230,000 35,000
Balance at
Julyl,2013
7 ,440,000
5,195,000
56
Issued
Retired'
Refunded
295 ,000
Balance at
June30,2014
7,145 ,000
5,195,000
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
Interest Principail!!.r!!!cnts
Type of debt Rates Dales Iss ue dates Maturitv d.'ltes Dates Amount
Ge nera l ob lig ation
bond s -20 12 Series B 2.0-5.0% 3/1-9/1 5124120 12 911 /2024 9/1/2014
911120 15 5 30 ,000
9/1/20 16 550,000
9/1/20 17 565,000
911 /20 18 585,000
9/112019 610,000
9/1/2020 640,000
911 /2021 665,000
9/1/2022 695,000
9/112023 730,000
9/112024 770,000
6 ,340,000
Ge n era l ob li gation
bonds -2013 Series One 3.8-5.0% 21 1-8/1 3/112013 21 1/2033 211120 15 730,000
21 1/20 16 760,000
21 1/2017 790,000
21112018 820,000
21 1120 19 855,000
21 112020 895,000
21 112021 935,000
21 112022 970,000
21112023 1,0 10,000
21112024 1,050,000
21 112025 I ,JOO,<XXl
21 1/2026 1,155,000
21 112027 1,2 15,000
21112028 1,275,000
21112029 1,340,<XXJ
21 1/2030 1,405,000
21 1/203 1 1,475,000
21112032 1,550,000
21 112033
57
Authori zed
Fiscal year Amount
2 01 2 6 ,385 ,000
2013 21 ,595,000
KODIAK ISLAND BOROUGH
Notes to Bas ic Financial Statements, Continued
P ri or years
Issued Retired
6 ,3 8 5,000 4 5 ,000
2 1,595,000
Balance at
Ju ly 1,2013
6,340,000
21 ,595,000
58
Iss u ed
Retired!
Refunded
635 ,000
Balance at
J UD e 30, 2014
6 ,340,000
20,%0,000
KODIAK ISLAND BOROUGH
Notes to Bas ic F inan c ia l State me nts, Continu e d
Interes t Princi p:1 1 pa;rm e n ts
T~ of debt Rat e s Dates iss u e date Maturi!r w l te s D ates A mount
Gen era l ob li gat ion
bonds -20 14 Ser ies One 2.O-S.00/Q 3/1-9/1 3 /1/2013 3 /1/2034 3/1/20 15 740,000
31 1120 16 785,000
3/1120 17 8 10 ,000
3/1120 18 840,000
3/1/2019 880,000
3/1/2020 900,000
3/11202 1 9 15 ,000
31112022 965,000
3 /112023 1,010,000
3 /112024 1,060,000
3 /112025 1,1 10,000
3 /112026 1,150,000
3/1/2027 1,205,000
3/1/2028 1,265,000
3/1/2029 1,330,000
3/112030 1,395 ,000
3/1/203 1 1,465,000
3/112032 1,535,000
3/1/2033 1,6 10 ,000
3 /112034 1,690,000
22,660.000
C lean water -Kar luk 3.92-4.05% •• •• •• 611/20 15 6 ,039
6/1120 16 6,130
6111 2 0 17 6 ,22 2
6/]/20 ]8 6,3 15
61 1/20 19 6,4 10
6/112020 5.926
37.042
$ 69,172,042
59
Authorized
Fiscal year A mount
20 14 22,660,000
1998 400.000
, 1
$ _~99;.;,3:;:60::.,000=_
KODIAK ISLAND BOROUGH
Notes to Basic Financial State ments, Co ntinu ed
P I'jor ' years
Issued Retired
97,0 19 54,027
76,397,0 19 26,239,027
60
Balance at
July 1,2 013
42,992
50,157,992
Issued
22,660,000
22,660,000
Retired!
Refunded
5,950
3,645 ,950
Bal ance at
June 30, 20 14
22,660,000
37,04 2
69,172,042
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
The annual requirements to amortize all general obligation bonded debt and the ADEC loan payable
outstanding as of June 30, 2014, are as follows:
General AD EC
obli;ation loan ~.yable Total loterest
Year ending Jun e 30:
2015 $ 2,640,000 6,039 2,646,039 3,119,885
2016 3,170,000 6,130 3,176 ,130 2 ,989,362
2017 3,295,000 6,222 3,3 01,222 2,869,212
2018 3,395,000 6,3 15 3 ,401 ,3 15 2,750 ,462
2019 3,540,000 6,410 3,546,4 10 2,617,362
2020-2024 19,980,000 5,926 19 ,985,926 10 ,756,373
2025-2029 18 ,200,000 . 18 ,200,000 6 ,158 ,180
2030-2034 14 ;915,000 14 ,9 15 ,000 1,964,556
$ 69 ,135,000 37,042 69,172 ,042 33,225 ,3 92
At June 30, 2014, there was $665,711 available in the Education and Health Debt Service Fund to serv ice
general obligation bonds. There are a number of limitation s and restrictions contained in the various bond
indentures. The Borough is in compliance with all significant limitation s and restrictions.
The remainder of this page leji blank intentionally.
61
KODIAK ISLAND BOROUGH
Notes to Basic Financia l Statements, Continued
(b) Notes Payable
As of June 30,20 14 , the Borough had the followin g notes pa y able outstanding in the Municipal So lid
Wa ste Co ll ect ion and Di s po s al Enterpr ise Fund:
No te payable (AC WF #5 0503 1) to Alaska Department of Environmental
Co nservati on (A DEC ), to be paid within 20 years. From June 2,1999
until April 28, 2005 inter es t accrued at 2.5%. From Apr il 29 , 2005 to
June 30, 2014 interest accrued at 1.5%. The fir st loan payment was
made on April 1,2012, with payment s of$1 00 ,00 0 being due on
Apr il I in each suc cessiv e year.
Note payable (ACWF #50504 I) to Alaska Department of Environmental
Co nser vation (A DEC), to be paid within 20 yea rs. Intere st acc rued at
3.8% over the life of the loan. The fir st loan payme nt is due one year
following sustantial comp letion and initi ation of operatio n of th e facility .
No te payable (AC WF #505061) to Alas ka Department of Environmenta l
Co nser vation (A DEC), to be paid within 20 yea rs. Int erest accrued at
3.8% over the life of the loan. The fir st loa n payme nt is du e one year
following sustantial co mpl etion and initiation of operat ion of the facility.
On September 15 ,20 I I the Boro ugh iss ued a $3,275 ,000 revenue bond ,
with a premium of$384,379. The bond wa s marketed by the Alaska
Municipal Bond Bank. Interest accru es at rate s between 3.0 and 5.0%
with payments due on Septemb er I and March I of each year. The
bond will mature on September 1,2026 .
$ =...,;1,;;,7,;;,00;:,;,0;;,;0;;;,0=
$ =~4;;;,4;;;4,;,1 ,;:,;65;,;;3=
$ ==,;,;75;,;;;0,,;;;00;;;,0 =
$ =~3,~3 I;;o5,~24~2=
As of June 30, 2014, the Borough had the following bond payable outstanding in the Hospital Facilities
Enterprise Fund:
On June 19 ,2013 the Borough iss ued a $ I 7,1 10,000 reven ue bond ,
with a premium of$I,707,320. The bond was mark eted by the Alaska
Municipal Bond Bank. Intere st accrue s at rate s bewleen 2.0 and 5.0%
with payment s due on June I of each year. The bond will mature on
June 1,2033.
62
$ =,,;1,;;,!8 ',;,;7 0,;;,!3 ,,;,;49;;;,8 =
KODIAK ISLAND BOR OUGH
Not es to Basic Fin anc ia l Statements, Continu ed
(e) Challges ill LO ll g -term L iabilities
Long-term lia b ili ty ac t iv ity for the year en ded J une 30, 2 01 4, w as as fo ll ows:
Balance Balance
June 30, June 3 0 , D u e within
201 3 Ad ditions Re ductions 201 4 one ~'ea r
Governm en tal activities :
Bo nds pa yable :
General obligation bonds $ 50,1 15,000 22,660,000 3,640,000 69 ,135 ,000 3,640,000
Bond premium 5,12 1,114 2,427 ,4 32 455 ,990 7,092 ,556 334 ,6 18
55,236,1 14 25 ,087 ,432 4,095 ,990 76,227,556 3,974,6 18
AD EC loan s 42,992 5,950 37,042 5,950
Compensated ab se nces 298,640 247,07 1 217,182 32 8,529 2 17,182
TOiai $ 55,577,746 25 ,334 ,503 4 ,3 19 ,122 76 ,593,127 4 ,197 ,75 0
Bu siness·type activit ie s:
Municipal Solid Waste
Collect ion and Dis posal :
Landfi ll closure and
po st-cl osure costs $ 5,389,650 1,42 1,527 3,968,123
Note s payable 7,34 6,324 3,147 ,783 287 ,2 12 10,206 ,895 270 ,000
Total $ 12 ,735 ,974 3,14 7,783 1,708,739 14,175 ,018 270,000
Hos pita l Faci lities:
Lon g te rm in terfund
borrowi ngs $ 956,382 79,5 10 876,872 82 ,723
Bond s payable 18,817,320 11 3,822 18,703,498 605,000
Tot al $ 19,773,702 193 ,332 19,580,370 687 ,723
Kod iak Fisheries Research
Cente r :
Lo ng te rm inter fu n d
borrowings $ 3,595 ,000 500,000 3,095 ,0 00 540,000
Total $ 3,595,000 500,000 3,095 ,000 540,000
Busin es s-type activit ies:
Lan dfill clos ure and post-
clo sure costs $ 5,389,650 1,42 1,527 3,968,123
Long term inte rfun d
borrowings 4,551,382 579,510 3,971,872 622 ,723
No teslbonds payab le 26,163 ,644 3,147 ,783 401 ,034 28,910,393 875,000
Total $ 36,104,676 3,147 ,783 2,402 ,071 36 ,850,388 1,497,723
For governm enta l acti v it ies , compe nsated ab sences are ge nerally liqui da ted by the Gen era l Fund,
63
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
(10) Fuud Balances
Detailed infomlation related to amounts classified as nonspe ndable , committed and assigned fund balances in
governmental funds at June 30 , 2014 are as foll ows:
Education Kodiak
Facilities and Hea lth Hi gh Sc hool
Special Debt Renovati on Other
O:ne131 Rev enu e Serv ice Cap ital Qwcmnx:ntal
Fund Fun d Fund Proj ec t Fund Fund s Total
Nonspendable:
Prepaid it ems $ 1,459 1,45 9
lon g tenn rece ivab le s 513,765 513,765
TOlal nonspendable S 1,459 513 ,765 515,224
Co nmitted:
Facility upgrades 39,548,944 39,54 8,944
Debt service 665,711 665 ,711
Fire and Road
Service Areas 1,33 6,940 1,33 6,940
Bu ildin gs and Gounds 323,281 323,281
Street ligh tin g
Dis tricts 44,298 44,298
Tourism DevelopJrent 133,682 133,682
Mission lake Tid e
GlIe 37,417 37,417
Fern Fuller Trusl 264,856 264,856
Tolal committed $ 39,548,944 665 ,711 2,140,474 42 ,3 55,129
Assigned:
Capn al proje ct s
and upgrad es S 25,626 ,380 3,249,119 28 ,875 ,499
(11) 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 $3,968 ,123 as of June 30, 2014 , which is based on 93% usage (filled) of the landfill.
64
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
The landfill is estimated to be filled and unusable by the year 2016. During the year ended June 30,2014,
a reduction of $1 ,421,527 was recorded . This reduction was due to approximately 5 acres of the existing
landfill being closed during the year. The Borough incurred $1,044 ,056 of expenses related to the closure
of 5 acres, with the additional $377,471 reduction resulting from a change in the accounting estimate An
estimated additional $491,566 will be recognized as closure and post closure care expenses between the
date of the Statement of Net Position and the date the landfill is expected to be filled to capacity . The
estimated tota l current cost of the landfill closure and post closure care of $4,459 ,689 is based on the
amount that would be paid if the landfill were closed as of June 30, 2014 . However, the actua l cost of
closure and post closure care may be higher due to inflation, changes in technology , or changes in landfill
law s and regulations.
The Kodiak Island Borough is required by state and federal laws and regulations to make annua l
contributions to finance closure and post clo sure care. The Kodiak Island Borough complies with these
requirements by annually recording the liability based on the estimates provided by the Kodiak Is land
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 regulation s, for example, will be financed primarily by cliarges 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 20 12 bidding on the project was begun and work is ongoing and expected to
continue through 2015. The lateral expansion has an estimated forty year capacity. Capital costs to
complete is estimated at $10,000,000.
(12) Insurance and Risk Retention
The Kodiak Island Borough is exposed to numerous ri sks of loss associated with the operations of a
government. These potential losses include , but are not limited to , employee relations and injuries,
contracts, theft, loss or damage of property and general liability. The Borough manages its risks from these
potential losses by participating in the Alaska Municipal League Joint Insurance Association , as well as
purchasing commercial insurance coverage . This insurance has provided the Borough with adequate
coverage in the past. There were no significant changes in insurance coverage obtained and there were no
claims or settlements that exceeded insurance coverage in any of the past three fiscal years.
The Borough is a member in good standing of the Alaska Municipal League Joint Insurance Association
(JIA), a governmental insurance pool established by the Alaska Municipal League. Claims are covered on
an occurrence basis. JIA provides risk management services, appraisal services and there is also a separate
pool for policy liability . The Kodiak Island Borough Finance Director and the Kodiak Island Borough
Mayor are members of the Board of Directors ofthe JIA.
65
KODIAK ISLAND BOROUGH
Notes to Bas ic Financial Statements, Continued
The resp o nsibilitie s of both JIA and the palticipants are as follow s:
(a) Respollsibilities of JIA
JIA shall perform the following in struction s in di sc harging it s re sponsibilities:
• Provide in s urance coverage as nece ssary for property, including buildin g and contents,
automobile, mob ile equipment and data processing equipment, casualty, includin g general
liability, publi c official s' and employees' liability, auto liability and e mpl oyee benefit liability ;
workers' co mpen sation , including employers' liability; commercial blanket bond ; and time
element.
• Assist each participant's assigned ri sk mana ge r with the implementati on of that function .
• Provide loss prevention and safety and consulting services to participants as required .
• Provide c laim s adju sting and s ubrogation serv ices for claims covered by the associati o n 'sjoint
in s uranc e anangement.
(b) Respollsibilities of tile Participallts
The Participants shall have the foll ow ing respon s ibilities:
• The Borou gh Assembly or appointing official of each participant shall appoint a represe ntative
as provided in Article 5 , Section 2 of the bylaws and at least one alternate represe ntative to
attend member meetings.
• Ea ch participant shall appoint an employee of the participant to be re s ponsible for the risk
management function within that entity and to serve as a liai so n between the participant and
IIA with re s pect to risk man agement.
• 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 un safe practices.
• Each participant shall maintain its own set of record s as a loss log , in all categories of loss to
insure accuracy of JIA 's loss reporting system.
(13) Rental Revenues
(a) Hospital Facilities Ellterprise Flllld
The Kodiak Island Borough Assembly leases the Kodiak Island Hospital and Care Center premise
and equipment to Sisters of Providence d.b.a. Providence Kodiak Island Medical Center who
assumed responsibility for the hospital 's operations as of April 21 , 1997 . The lease agreement is
effective for a tem of twenty years from that date. The lease is cancelable by either party with a one
year notice. The hospital capital assets, the lease income, and all other costs relating to the agreement
are accounted for by the Borough in the Hospital Facilities Enterprise Fund .
66
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements , Continued
The agreement with Providence specifies that the Borough will contribute at least $108,000 per year
for the purchase of new and rep lacement equipment for the hospital. The Borough is also required to
fund any major maintenance and repairs projects exceeding $25,000 in cost. The Borough receives
$60,000 per month in rental revenue. In August, 2003, the lease was amended and required
Providence to pay an additional lease payment of $1 ,300,000 in 2004 . In October 2005 the lease was
amended to remove the requirement that Providence had to pay 50% of the net revenues of the
hospital, up to $600,000, in rental revenues . Providence now has to spend 50% or more of their net
profit, up to $200,000 , on equipment. The lease was also amended to have the $108,000 of
equipment which the Borough was required to purchase annually to become Providence property
rather than Borough property .
(b) Kodiak Fisheries Research Cel/fer
The Kodiak Fisheries Research Center (KFRC) leases its premi se to the General Services
Administration (GSA), Alaska Department of Fish and Game (ADF&G), the GSA on behalf of
Department of Commerce, National Oceanic and Atmospheric Administration (NOAA), and the
University of Alaska Fairbanks (UAF).
The lease with the GSA is /Tom March I, 2003 , through September 30, 2018, cancelable with
120 days notice . Annual rent varies from $37 ,500 to $41,000. Rent was $41,000 in 2014.
The lease with ADF&G is from October 1, 1998 through September 30,2018, with an option to
extend for up to two additional five year periods. Annual rent is $52,800. The annual rent /Tom 2012
through 2018 will be adjusted for the tenant's proportionate share of building expenses and
utilization of the seawater system .
The lease with NOAA is from October I , 1998 through September 30, 2018, with an option to
extend for up to four additional five year periods. Annual rent is $756,000 plus operational and
maintenance expenses of $754,437. Operational and maintenance expenses are adjusted every five
years to actual costs.
The lease with UAF 'was originally from October I, 1998 through September 30, 2018, cancelable
with 30 days notice, with an option to extend for up to two additional five year periods. The State of
Alaska cancelled the lease for laboratory space effective September I, 2012, but has continued
leasing the dorm space. The State has not given notice to cancel this section of the lease in 2014.
(14) Retirement Commitments
The Borough has adopted Governmental Accounting Standards Board (GASB) Codification P20,
Accoul/til/g for Pel/siol/s by State al/d Local Govemmel/tal Employees and GASB Codification P50,
Accoul/til/g al/d Fil/al/cial Reportil/g by Employers for Post-employmel/t Bel/efits Other thal/
Pel/siol/s. GASB Codification P20 and Codification P50 establish uniform standards for the
measurement, recognition and display of pension and other post-employment benefits other than
pensions (health care ) expenditures/expense and related liabilities, assets, note disclosure and
applicable required supplementary information in ihe financial reports of state and local
governmental employers .
67
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
Retirement Plans . All full-time employees and certain permanent part-time employees of the
Borough participate in th e State of Alaska Public Employees' Retirement System (PERS). In
addition to the pension plan the sys tem also administers a post-employment healthcare benefit plan.
Summmy of Significant Accounting Poli cies. PERS financial statements are prepared using the
accrual basis of accounting. Plan member contributions are recognized in the period in which the
contributions are due . The Borough 's contributions are recognized when due and a fom13 I
commitment to provide the contributions has been made. Benefits and refunds are recognized when ·
due and payable in accordance with the tenn s of the plan. All plan inve stments are reported at fair
market value or estimated fair market value.
Termination Costs. If the Borough decid es to terminate coverage for a department, group , or other
class ification of members, even if that termination results from the deci s ion to divest of a particular
govemmental function , all affected employees in that department, group or other classification of
members become immediately vested in the plan. The Borough mu st pay to have a temlination
study completed. The purpose of the stu dy is to calculate the Borough 's one-time termination costs .
The costs represe nt the amount necessary to fully fund the costs of plan members who become
vested through this proce ss and for other changes in actuarial as su mption s, s uch as, earlier than
expected retirement, that arise from the act of termination of coverage. Borough must pay a lump
sum within 60 days of termination or arrange a payment plan that is acceptable to the PERS
Administrator. For fiscal year 20 I 4 the pa st service rate is 24. I 9%.
Plan Oversight. The Borough contributes to the Alaska Public Employees Retirement System
(PERS), which includes both a cost sharing multiple employer defined benefit pen s ion and post-
employment healthcare plan and a defined contribution plan. Both plans are administered by the
Commissioner of Administration and the Alaska Retirement Management Board (ARMB). Both
PERS plans provides retirement benefits including disability and death benefits, and post-employment
healthcare to plan members and beneficiaries. The authority to establish and amend benefit provisions
is assigned to the ARMB. The Public Employee's Retirement System issues a publicly available
financial report that includes financial statements and required supplementary information for PERS.
This report may be obtained from the system at Pouch C, Juneau , Alaska 99811.
Alaska Public Employee Retirement System (PERS) -Defined Benefit Plan
Plan Description and Funding Agreement. Benefits vest with five years of credited service.
Employees enrolled prior to July I, 1986 with five or more years of credited service are entitled to
annual pension benefits beginning at normal retirement age 55 or early retirement age 50. For
employees enrolled after June 30, 1986, but before July I , 2006 , the normal and early retirement
ages are 60 and 55, respectively. Employees with 30 or more years of credited service may retire at
any age and receive a normal benefit.
Retirement benefits are calculated by multiplying the average monthly compensation (AMC) times
credited PERS service times the percentage multiplier. The AMC is determined by averaging the
salaries earned during the five highest (three highest for PolicelFire members or members hired prior
to July I, 1996) consecutive payroll years. Members must eam 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.
68
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
The percentage multipliers for policelfire per so nnel are 2% for the first ten years of service and 2.5%
for all serv ic e 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 remainin g se rvice earned on or after Jul y 1,
1986 . All service before that date is ca lculated at 2%.
Post-employment hea lthcare benefits are provid ed without cost to all member s first enrolled before
Jul y I, 1986. Members first enrolled after Jun e 30, 1986 and who have not reached age 60 ma y elect
to pay for major medical benefits.
Pension benefits are adjusted each year based upon increases in the Consumer Price Index (CPI) for
the prior year. The increase in the benefits is 75% of the CP l increase up to a 9% maximum for
recipients who are at least age 65 or on disability o r 50% of the in crease up to a 6% maximum for
recipients who are at least age 60 but under age 65 or who have been receiving benefits for at least
five years. Starting at age 65 , or at any age for those employed before July 1, 1986, a retired
employee who remain s in Alaska is eligible for an additiona·1 allowance equal to 10% of the base
benefit or $50 a month , whichever is greater.
Post R etirement Pension Adjustments. Post retirement pension adjustments (PRPAs) are g ranted
annually to eligible benefit recipients when the consumer price index (Cpr) increase s during the
preceding calendar year. PRP As are calculated by multiplying the recipient's base benefit, including
past PRP As , times:
(a) 75% of the CPI increase in the preceding calendar year or 9%, whichever is le ss, if the
recipient is at least 65 or on PERS di sab ility ; or
(b) 50% of the CP l increase in the preceding calendar year or 6%, whichever is le ss, if the
recipient is at least 60, or ha s been receiving benefits for at least five years.
Ad hoc PRP As, up to a maximum of 4%, may be granted to eligible recipients who first entered the
PERS before July 1, 1986, iftbe cpr increase s and the financial condition of the fund will permit an
increase . In a year where an ad hoc PRPA is granted, eligible recipients will receive the higher of
the two calculations.
Funding Policy. The Borough PERS active members are required to contribute 6 .75% (3 .26% pension
cost and 3.49% post-employment healthcare costs) of their annual covered salary and the Borough is
required to contribute at an actuarial determined rate; the current rate is 35.68%. The legislature
capped the employer rate at 22% (10.64% pension cost and 11.36% post-employment health care cost)
with the State of Alaska contributing an on behalf payment for the difference between the actuarial .
required contribution and the cap . On behalf payments by the State of Alaska for the Borough's
employees are recognized as revenues and expenditures/expenses during the year. The contribution
requirements of plan members and the Borough are established and may be amended by the ARMB.
During the 25 1h legislation session, Senate Bill 125 passed, which established a June 30, 2008 salary
floor under AS 39.35.255(aX2). 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 .
69
KODIAK ISLAND BOROUGH
No te s to Basic Financial Statements, Co ntinued
Annual Pension Cost and On-Behalf Payments. The Borough's annual pension cost for the y ears
ended Jun e 30,20 14 ,20 13 , and 2012 were $515,789, $532,75 0 and $572,822, re s pectively , which
was equal to th e Borough 's actual contribution s . For th e year end e d Jun e 30 , 2014 the State of
Alaska co ntributed $463,3 33 o r 13.68% (7 .74 % pen s ion cos t and 5.94% post-e mploy ment health
care co st) o n behalf of the Borough, which was recogni zed as revenu e a nd expenditures.
Alaska Public Employee Retirement System (PERS) -Defined Contribution Plan
Plan Desc ripti on and Funding Req uirements. Boroughs and Public Employers in th e State of Alaska
hav e a defi ned co ntributi on retirem e nt plan for new hire s fir st enro ll ed on o r afte r Jul y I , 2006. Plan
membe rs make manda tory contribution s of 8% of g ros s eligible compensation. State statute s require
the empl oyer to contribute 5% of employees' eligible compensation . Additionally , employers ar e
required to contribute 0.48 % to th e retiree medi ca l plan , 0.20% for occ upati o na l and death and
disability benefits and 3% of employers average annu al emplo yee co mp ensat ion to the health
reimbursement arra nge ment (HRA). The employer effective contribution rate is 22%. Plan
members are 100% vested wi th their contributions. Members become vested in em pl oyer 's
contributions as fo ll ows:
2 years of service -25 %
3 years of serv ice -50%
4 years of serv ice -75%
5 years of se rvi ce -100 %
Plan prov is ion s and contribution requirements and amendments are established by th e Alaska
Retirement Management Board (ARMB). Total contributions for the yea r ended June 30, 2014 are
as follow s:
Defin ed contribution
Retiree medical plan
Occupational death and di sabi lity benefits
Health reimburse ment agreement (HRA)
Defined benefit unfunded liability (DBUL)
Employer
$ 184 ,3 99
4,022
1,67 6
26,438
110 ,327
Actual contributions were equal to the annual requir ed contributions.
Deferred Compellsalioll Plall
Employee
67 ,039
The Kodiak Island Borough has two defen'ed compensation plan s created and amended in
accordance with Internal Reve nue Code Section 457. The plan s are available to all regular Borough
employees. The deferred compensation is not available to employees until ternlination , retirement ,
death , or unfore seea ble emergency.
All am o unts deferred under these plan s are he ld in trusts that were esta blish ed for the exclusive
benefit of plan participants . Amounts contributed to the plan s by participants durin g the year ended
June 30 , 2014 , was $174 ,560.
70
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
The first plan is managed by the International Borough Managers Association Retirement
Corporation. $73 ,675 was contributed to this plan during the year ended June 30, 2014 . The
Borough believes that the plan does not meet the criteria for inclusion as a fiduciary fund.
The second plan is managed by the MassMutual Financial Group. $100,885 was contributed to this
plan during the year ended June 30, 2014. The Borough believes that the plan does 'not meet the
criteria for inclusion as a fiduciary fund .
(15) 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 tbe
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.
(16) Subsequent Events
Management have evaluated subseq'uent events through December 31, 2014, the date which the
financial statements were available for issue .
(17) Construction Commitments
The Borough has outstanding commitments for construction at year end of $46, 195,669.
(18) Subsequent Accounting Pronouncements
The Governmental Accounting Standards Board has passed several new accounting standards with
upcoming implementation dates covering several topics as follows:
• GASB 67 -Financial Reportingjor Pension Plans -an Amendment ojGASB
Statements No. 10 and No . 62. Effective jor periods beginning after June
15,2014.
• GASB 68 -Accounting and Reportingjor Pensions -an Amendment ojGASB
Statement No. 27. Effective jor fiscal years beginning after June 15, 2014.
• GASB 69 -Government Combinations and Disposals oj Government Operations.
Effective jor fiscal years beginning after December 15, 2014.
• GASB 70 -Accounting and Financial Reportingjor Nonexchange Financial
Guarantees. Effective jor fiscal years beginning after June 15, 2014.
71
KODIAK ISLAND BOROUGH
Notes to Basic Fin anc ia l Statements, Co ntinued
• GASB 7 1 -Pension Transitionfor Co ntributions Made Su bsequent to the Measurement
Date -An Amendment ofGASB Statement No. 68. Effective forjiscai years
beginning after June 15, 2014.
Statements 67 and 69-71 are not expected to have any material impa ct on the financia l statements of
the District.
GASB Statement No. 68's objective is to imp rove accounting and reporting for pension s. Thi s
Statement establishes standards for mea s uring and recogni z ing liabil iti es, defen·ed o utfl ows of
reso ur ces, deferred inflows of resource s, and expense/expenditures. This Statement establi shes
method s and assumpt ions used to project benefit payments to thei r actuarial present value and
attribute that pre se nt va lu e to the period s of employee serv ices. Note di sclo sures a nd required
s uppl ementalY information are addressed in this Statement.
This Statement is effective for fiscal years beginning after June 15 ,2014.
72
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i
J
J
J
REQUIRED SUPPLEMENTARY INFORMATION
, .
KODIAK ISLAND BOROUGH
Bud ge tary Comp ari so n Schedul e
Gene ral Fund
Yea r end ed June 30 , 20 14
(Wi th fin ancial infonn ation for the yea r ended Jun e 30, 20 13 )
2014
Vari a nce with
Final Budget -
Budget Posith'c 2013
Original Final Actual (N egative) Aclual
Rev enu es:
Property tax es an d assess ments:
Real $ 29,900 29,900 34,167 4,26 7 33,406
Per so nal 3,3 0 0 3,300 (3,300)
Ba al 22 ,000 22,000 24,3 50 2,350 21 ,545
Air craft 5,5 00 5,500 2 1,400 15 ,900 4 ,900
Penal ty and intere st 200,000 200 ,000 128,058 (7 1,942) 201 ,420
Tot al prope rty tax es and asse ss ment s 260,700 260,700 207 ,975 (52 ,725) 261 ,271
Severance ta xes:
Fi sh 1,750,000 1,750 ,000 1,715 ,496 (3 4,504 ) 1,654 ,149
Mining 10,000 10 ,000 32,3 09 22,309 9,4 32
Logg in g 100,000 100 ,000 96,014 (3,986) 111 ,119
Tot al sev eran ce ta xes 1,860 ,000 1,860 ,000 1,84 3,819 (16,181) 1,774 ,700
Inter gove rnm ent al:
State sour ces:
S tate re ve nue sh arin g 707,639 707 ,639 73 1,314 23,675 1,042,431
Fi sherie s bu sine ss tax 1,6 50,000 1,6 50,000 1,546,3 08 (10 3,692) 1,647,02 5
Fi sherie s res our ce landing tax 100,000 100,000 9 7,679 (2 ,321) 110,532
Co mmercia l pa sse nger vesse l tax 25 ,000 25,000 4,600 (2 0,400) 23,47 3
Telephon e and el ec tric ta x 26,000 26,000 15 ,792 (10 ,208) 27,075
O n-beh a lf PERS payment 250,000 425 ,790 46 3,333 37,54 3 329 ,10 5
Liquor li cense 220 220
T atal state so urce s 2,758,6 39 2,934,429 2,859,246 (75 ,18 3) 3,179 ,641
Fed eral source s:
Payment s in lieu of taxe s 1,226 ,000 1,226,000 1,541 ,152 3 15 ,152 1,43 1,452
Fi sh and Wildlife revenu e sharin g 150 ,000 150 ,000 205 ,518 55 ,518 17 3,848
Sc hool s and Road s -Grant s to St ates 2,400 2,400 (2 ,400) 2,3 67
Total federal source s 1,3 78,400 \,3 78,400 1,746,670 368,270 1,607 ,667
Tot al int ergovernm ental
re venue 4,1 37,0 39 4,3 12,829 4,605,916 293,087 4,787,308
Charge s for service s -
Sal e of cop ies and ma ps 5,000 5,000 3,1 36 (1 ,864) 6,139
Licen ses, permit s and fee s:
Building and trailer permit s 40,000 40,000 59 ,661 19 ,661 37,24 3
Subdi vision and zonin g fee s 18 ,500 18 ,500 16,18 3 (2 ,317) 24,540
Other permit s 8,000 8,000 6,869 (1,131) 4,693
Total licen ses, pennit s and fee s 66,500 66,500 82 ,71 3 16 ,213 66 ,476
Inve stment income 100,000 100,000 23,804 (76,196) 39,078
Oth er 14 ,000 14 ,000 11 ,192 (2 ,808) 15 ,030
Total revenu es 6 ,44 3,239 6,619,029 6,778,555 159 ,526 6,950,002
(continued)
73
KODIAK ISLAND BORO UG H
Bud ge tary Compari so n Schedu le
Ge neral Fund , co ntinu ed
Year ende d June 30 , 20 14
\'Nith fin anc ial informa tion for the yea r ended June 30 , 20 13)
2014
Variance w ith
Actua l Amounts F inal Budget -
Budget Budgetary Basis Positive
Original Filial (see Note A~ (Negative)
Expenditures:
Gene ral government:
Gene ral and admini stration $ 249,100 249 ,100 180,937 68 ,163
Borough asse mbly 18 1,850 183 ,350 183 ,790 (440)
Boro ugh mana ger 605 ,768 605 ,768 545 ,107 60,66 1
Borough clerk 563,365 568 ,485 525 ,436 43 ,049
Boro ugh att orn ey 14 9,000 149,000 136 ,859 12 ,14 1
Fi nance department 897 ,962 942 ,872 92 1,132 2 1,740
Mana gement infonn at ion sys tems 1,065 ,775 1,076 ,605 1,013,958 62,647
Assess in g departm ent 670,312 687 ,462 680,158 7,304
Enginee rin g/fac ili ties depa rtment 276,663 3 13,293 307,9 17 5,376
T olal general gove rnment 4,659,795 4,775,935 4,495,294 280,64 1
Public sa fety -animal contro l 85 ,000 85 ,000 72 ,941 12 ,059
Conununity and econom ic deve lop ment:
Co mmun ity development department 747,2 18 806,868 666,289 140 ,579
Bu ildin g official 151 ,484 151,484 153 ,32 4 (1,840)
Eco nomic de ve lopm ent 73,600 73,600 58,862 14,738
Total comm unity and econo mi c
developmenl 972 ,302 1,031 ,952 878,475 153 ,477
Emergency pr epared ness 52 ,000 52,000 9,987 42 ,013
Health and sanitation department 3 16,000 3 16,000 326,700 (10,700)
Ed uca tion, culture , and rec reat ion 90,000 90,000 95,625 (5 ,625)
Par ks and recreation 45 ,0 00 19 5,000 37 ,795 157,205
Kodiak Co ll ege and cit y libraries 195 ,000 195,000 195 ,000
Total expenditure s 6,4 15,097 6,740,887 6,1 I 1,8 17 629,070
Excess of revenues
over expe nditures 28 ,142 (12 1,858) 666,738 788 ,596
Other financing (us es):
Proceed s from saJe of capila l assets 5,000 5 ,000 (5 ,000)
Tran s fer s in
Tran sfers o ut (4 83 ,500) (48 3,500) (483 ,500)
Ne t othe r fman cin g so urces (uses) (478,500) (478,500) (483,500) (5,000)
Chan ge in fund balance $ (450,358) (600,35 8) 183,238 783 ,596
Fund balan ce, at beginning of year 3,3 48,732
Fund balance , at end of th e year $ 3,53 1,970
Note A: This schedu le does not includ e ex penditure s of$26,276 and a be ginnin g fund (deficit) of ($1 ) 746) on a multi year
community development proj ect. The se costs ar e acc umulated in th e Commu nit y Development Fund which
is combined with th e Ge neraJ Fund for the Bas ic Financial Stateme nt s.
Not e B: See acco mp anying notes to requi re d suppl ementary infonn at ion .
74
2013
Adual
467 ,36 1
168 ,967
386,191
546,655
146,24 1
887,515
878 ,694
605 ,500
314,693
4,401 ,8 17
28 ,000
721,760
126,941
73 ,730
922,43 1
18,342
290 ,800
84,273
2 1,100
192 ,000
5,958,763
99 1,23 9
9,564
29,335
(9 11 ,559)
(872 ,660)
11 8,579
3,230,153
3,348,732
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Specia l Revenue Fund -Education Support
Year e nd ed Ju ne 30, 2014
(With financ ial information for the year ended June 30, 2013)
2014
B ud ~et
Original F inal Actual
Revenues:
Property taxes and assessments:
Real $ 9,114 ,580 9,114,580 9,003,276
Personal 925,140 925 ,140 879,491
Intergovernmental M sta te source s
Motor vchicl e tax 280,000 280,000 253,230
Total revenues 10,319,720 10,3 19,720 10 ,135,997
Expenditures:
Primary and secondary education 10 ,649,720 10,649,720 10 ,650,220
Excess (deficiency) of reven ues
ove r (under) expen ditur es (330,000) (330 ,000) (514,223)
Other financ ing sou rces:
Transfers in 330,000 330,000 330,000
Change in fund balance $ (184,223)
Fu nd balance (deficit), at beginning of year 152 ,549
Fund balan ce (defic it), at end of year $ (3 1,674)
See accompanyi ng not es to requ ired suppl eme ntary information.
75
Va ri a nce with
Fi nal B ud get-
Positive 2013
(Negative) Actual
(111 ,304) 8,846,747
(45,649) 939,619
(26 ,770) 259,252
(183 ,723) 10 ,045,618
(500) 10 ,250,350
(184 ,223) (204,732)
428,550
(184 ,223) 223 ,8 18
(7 1,269)
152,549
KODIAK ISLAND BOROUGH
Budgetary Co mpari son Schedule
Special Revenue Fund -Faci liti es
Year ended June 30, 2014
(With financial infomlation for the year ended Jun e 30, 2013)
2014
Budget
Original Final Actual
Revenue s -
Investment income $ 1,000,000 1,000,000 655,470
Expenditures 200 ,000 200 ,000
Excess of reven ues over
expenditures 800 ,000 800 ,000 655 ,470
Other fina ncin g so urces (u ses):
Tran sfe rs out (800 ,000) (800,000) (522,365)
Chan ge in fund ba lance $ 13 3,10 5
Fund balance , at beginnin g of year 39,415 ,839
Fund balan ce, at end of year $ 39,548,944
See accompany ing notes to required supplementary infonnation.
76
Variance with
Fina l Budget -
Positive 2013
(Negative) Actual
(344,530) 546,829
200,00 0
(144 ,530) 546,829
277,635 (996 ,696)
133 ,105 (449 ,867)
39,865,706
39,415 ,839
KODIAK ISLAND BOROUGH
No te s to Required Supplementary Inform ation -Budgetary Comp ari so n Sc hedul es
June 30 , 2014
Th e Boro ugh follow s these procedures In establ ishin g th e budgeta ry data re fl ec ted In th e fund financial
statem ents:
• The Borough Manager must s ubmit to th e Borough Assembly by April 30 a prop osed operating bud get for
the fi sca l yea r com men ci ng th e following July 1. The operating bud get includes propose d expen diture s and
the mean s of financing them.
• Public hearin gs are conducted by the Borough Asse mbl y to obtain c iti ze n comment s.
• By Jun e 10 , th e bud get is lega ll y enacted throu gh pa ssage of an ordinance by Borough Assembly actio n. If
the Bo rough A sse mbl y fail s to pa ss an ordinan ce, th e bud get submitted by the Borough Manager becomes
the adopted bud get.
• Amendments to the bud get can occ ur anyt im e durin g th e fi sca l year throu gh the Borough Assembly or
ad mini strati ve act ion. Generall y, the fo ll owi ng actions are required at the leve l ofthe particular chan ge:
A ll new appropriations are authorized by an a ppr op riati on ord inance that amends the annual budget
ordinance.
A resolution of the Borough Assembly is required to move (appropriate) amounts between
departm e nt s and projects.
The admini strati on is auth orized and directed by th e Borough Assembly to effect the nece ssary lin e
ite m changes within the limits established by Items (\) and (2) above by proj ect or department to
properly monitor, account, and report receipt s and expenditures.
• Ex penditures may not le gally ex ceed appropriations at the following leve ls: Ca pital Projects Funds -
project level, all other fund s -de partment leve l.
• All fund s, except Capital Projects Fund s, are budgeted on an annual ba s is encompassing a fi sca l year.
Budgets of Capital Projects Funds generally encompass the peri od from start-up to project completion,
which is generall y greater than o ne year.
• Appropriations lapse at year end to the extent that they have not been expended for all fund s, except
Capital Projects Funds, which lap se at project completion.
• Budgets adopted by the Borough As se mbly are in accordance with accounting principles generally
accepted in the United States of America.
• The Borough published a separate 2014 budget document. That document may be obtained from the
Kodiak Island Borough, Finance Director, 7 10 Mill Bay Road , Kodiak , Alaska 99615.
77
(This page was left blank intentionally)
. I
ADDITIONAL SUPPLEMENTARY INFORMATION
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KODIAK ISLAND BOROUGH
Budgetary Co mpari so n Schedule
De bt Service Fund -Education and Health
Year ended June 30, 2014
(With s ummari ze d fin anc ia l informatio n for the year e nd ed June 30, 2013)
20 14
Variance with
Original Fin al Budget-
and Final Positive
Budget Actual (Negative)
Revenues:
Property taxes an d assess me nt s $ 2,045,300 2,043,895 (1,405)
Intergovernmental:
State so urces 2,7 41 ,74 4 3,347 ,517 605,773
Investm e nt income 15 ,200 3,182 (12 ,0 18)
Total reve nu es 4,802,244 5,394,594 592,350
Expenditures:
General government 5,744 6,045 (301)
Debt service:
Principal 3,645 ,950 3,645,950
Interest 2,098,499 2,107,198 (8 ,699)
Debt iss uanc e 89,8 35 (89 ,835)
Total expenditures 5,750,193 5,849,028 (98 ,835)
Excess (deficiency) of revenues
over (under) expenditures (947,949) (454,434) 493,515
Other financing sources:
Transfers in 650,000 482,402 (167,598)
Change in fund balance $ (297,949) 27 ,968 325 ,917
Fund balance (deficit), at beginning of year 637,743
Fund balance, at end of year $ 665 ,7 11
78
2013
Actual
1,744,9 06
2,267,279
2 ,22 1
4 ,014,406
5,471
2,966,441
1,2 44 ,233
20 ,809
4,236,95 4
(222,548)
1,057,858
835,310
(197,567)
637,743
(This page was left blank intentionally)
• I
NONMAJORGOVERNMENTALFUNDS
Special Revenue
See Special Revenue section of this report.
Capital Projects
See Capital Projects section of this report.
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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 activit ie s related to fire suppression and fire
prevent ion serv ices to the citizens of the serv ice area.
The Kodiak Airport Fire District Fund acco unt s for the activities related to fire suppression and fire prevention
services to the cit ize ns of the service area.
The Monasbka Bay Road Service Area Fund accounts for the activities re lated to road services within tbe
service area .
The Service Area No.1 Fund accounts for the activities re lated to maintenance service to roads within the
district, includin g snow removal, ditching and grad in g.
The Womens Bay Road Service Area Fund accounts for the act ivities 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 activ ities related to road services within the serv ice
area.
The Service Area No.2 Fund accounts for the act iviti es re lated 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 acco unt s for the disposal of Borough-owned lands. The proceeds of land disposals are
generally used for the management of Borough lands and the re pairs and maintenance of Borough schoo l
buildings.
The Buildings and Grou nds Fund accou nts for the operations and maintenance of certa in buildings and
grounds owned by the Borough which are jointly shared w ith the City of Kodiak, the Kodiak Island Borough
Schoo l District, and certa in nonprofit commun ity organizations.
T he Woodland Acres Street Ligbt Service Area Fund accou nt s for activities related to the provision of street
li ghting within the serv ice area.
The Trinity Islands Street Light Service Area Fund accounts for act iviti es re lated to the provi sio n of street
li ght ing within th e serv ice area.
The Tourism Development Fund acco unts fo r the co ll ectio n of the Borough Transient Accommodation Tax
(Bed Tax) and it s subsequen t transfer to the Kodiak Island Convention and Visitor Bureau.
The Missio n Lake Tide Gate Fund accoun ts for activities related to maintaining the tide gate for the residents
of the serv ice are a .
The Fern Fuller Trust Fund accounts for the distribution of funds to the beneficiaries of the trust.
The Trinity Islands Paving Fund acco unts for activ iti es related to th e provision of paving within the service
area .
The Oil Spill Disaster Fund accounts for act ivities related to the gro undin g orthe drilling vesse l Kullllk.
KODIAK ISLAND BOROUGH
C o mbinin g Bala nce Sheet
Nonmajor Go vernmental Fu nds
Ju ne 30 , 20 14
(W ith summa rized finan cial infonnation at June 30, 20 13)
Specia l Capital
Revenue Project
Assets F un ds F unds
Equity in ce ntra l treas ury $ 2,666 ,213 3,3 20 ,16 1
Rece ivab les:
State of A las ka 6,778 15 ,367
Federal governme nt 153,995
Property taxes 17 ,776
Land sa les contract s, due w it hin one year 35,465
Other 29 ,898 7,6 19
Prepaid ite ms
Land sale contracts , due after one year 5 13 ,765
Total $ 3 ,269,895 3 ,497,142
L iabilities, Deferred In fl ows of Resou rces,
a nd F un d Ba la nces
Liab ilities:
Accounts payab le $ 97,305 149 ,672
Customer deposits 1,100
Due to other fund s 60 ,242
Advances fro m other fu nds
Unearned revenue s 36 ,464 98 ,351
Total liabi li t ies 195 ,111 248,023
Deferred inflows of re so urces:
Unavai lab le revenues 5 13,765
Total li ab ili t ies and deferred
in fl ows of reso urces 708 ,876 248,023
Fun d balances:
No ns pendable 513 ,765
Comm itted 2,140,474
Ass igne d 3,249,11 9
Unass igne d (93 ,220)
To tal fu nd ba lances 2 ,56 1,0 19 3 ,249,119
Tota l $ 3,269,895 3,497,142
79
Tota ls
2014 20 13
5,986 ,374 6,044 ,853
22,145 97,5 14
153 ,995 18 ,329
17 ,776 16,662
35 ,465 3,649
37,517 34,483
3 16
51 3,765 5,465
6,767 ,037 6,221,271
246,977 487,417
1,100 1,250
60,242 1,872,8 18
25 ,077
134 ,815 125 ,844
443 ,134 2,5 12,406
5 13,765 5,465
956,899 2,5 L7,87 1
5 13,765 5,781
2 ,140 ,474 2,272,684
3,249,11 9 1,476,272
(93 ,220) (5 1,337)
5,8 10,138 3,703 ,4 0 0
6,767,0 37 6,22 1,27 1
(This page was left blank intentionally)
KODIAK ISLAND BOROUGH
Combi ni ng State ment of Rev enu es, Expenditu re s,
and Changes in Fund Ba lance s
No nmajor Gove rnment al Fu nds
Yea r e nded June 30 , 20 14
(Wi th summ arized financial in fonnation for year ended Jun e 30 , 20 13)
S pecial Ca pital
Reven ue Project Tota ls
Funds F unds 2014 2013
Revenues:
Property taxes and as sess ment s $ 1,34 1,544 1,3 4 1,544 1,144,253
Tra nsie nt accommodat ions tax 75 ,142 75,14 2 96,640
I ntergove rnm enta l:
State so urces 13,430 47,48 6 60,9 16 1,4 33,134
Federa l sources 187,002 187 ,002 5 1,705
Charges for services 586 ,300 586,3 00 556 ,060
License s, penn it s and fees 29,850 29,850 28 ,350
In vestment income 19 ,579 27,596 47,175 77,884
Oth e r 39 ,364 39,364 3 7,486
To tal revenues 2,105,209 262,084 2,367,293 3,425,5 12
Ex penditur es:
C urrent:
Ge ner al governme nt 857,4 17 857,41 7 899,9 11
Public sa fety 503,779 503,779 441 ,280
Com muni ty and eco nomi c deve lopm ent 84 ,126 84,126 84 ,910
Service dist rict maintenance 63 1,572 63 1,572 47 9,264
Capital outlay:
School s 122,388 122 ,38 8 613 ,235
General 234,858 23 4 ,858 2,041 ,67 4
Debt service -int eres t 2,208 2,208 9,992
Tota l expenditur es 2,079,10 2 35 7,246 2,436,348 4 ,570 ,266
Excess (defi c iency) of reven ues
over (und e r) exp enditure s 26 ,107 (95,16 2) (69,055 ) (1,144,75 4)
Ot her financin g so urce s (uses):
Land sa les pro cee ds 356,284 356,284 6,787
Tran sfer s in 18 ,000 18,000 435,947
Tra nsfers o ut (66,500) (66,5 00) (4,384 ,630)
Net other financing sou rce s (uses) 307,784 307 ,784 (3 ,94 1,896)
Change in fund ba lances 333 ,89 1 (95 ,1 62) 238,729 (5 ,086,65 0)
Fund balan ces , at beginnin g of yea r 2,227,128 3,344,281 5,571,409 8,790,050
Fund ba lance s, at end o f year $ 2,56 1,01 9 3 ,249,11 9 5,810,138 3,703,400
80
KODIAK I SLAND BOROUG H
Nonmajor Special Re ven ue Funds
Combining Balance Sheet
June 30. 2014
(W ith summarized financial info rmat ion at June 30, 20 13)
Fir e a nd Road Service Areas
F ire Road
Fire "'omens Kodiak Monashka
Protecti ol1 Bay Fire Airport Fire Bay Road Sen'ic e
Assets Area No. I Dej?:artmcnt District Service Area Area No.1
Equity in ce ntra l treasur), $ 30 1,357 507.423 35,759 4,472 380,658
Receivables :
Stale of A laska
Property taxes 9.70 1 285 641 5,877
Land sal es contracts, due wi thin one year
O th er
Prepaid it em s
Due from othe r fund s
Land sa le cont racts, due after one year
Total S 3 1 1,058 507,708 35 1759 5,113 386,535
LiJibi lities, Deferred InO ows of Reso urces,
and Fund Balances (Deficits)
Liabiliti es:
Account s payable 19 ,439 764 1,574 37,947
C ustomer deposits 1,100
Due to othe r fund s
Advance from other fund s
Unearned reven ues
Tota l liabiliti es 19,439 1,864 1,574 37,9 47
Deferred inflows of resou rces:
Unavailable revenue s
Total liabilities and deferr ed
inflows of resources 19,439 1,864 1,574 37,947
Fund balances (de ficit s):
Nonspe ndable
Co m mitted 29 1,6 19 505 ,8 44 35 ,759 3,539 34 8 ,588
Unassigned
Total fund balances (deficits) 29 1,6 19 505,844 35,759 3,539 348,588
Total $ 3 11 ,058 507,708 35,759 5,11 3 386,535
81
F ire and Road Sen-ice Areas State G rant
Roa d Program
Womens
Bay Road Bay View Road Ser v ice Area
Service Area Service Area No.2 L.E.P.C. La nd Sales
144 ,18 1 5,955 5,795 454 ,439
6 ,778
570 702
35,465
9,164
513,765
144 ,75 1 6,657 5,795 6 .778 1,012 ,833
5,385 227 1,687
24 ,599
36,464
5,385 227 ·24,599 38,151
513,765
5,385 227 24 ,5 99 551 ,916
513,765
139 ,366 6,430 5,795
(17 ,8 21) (52,848)
139,366 6,430 5,795 (17,82 11 460,917
144 ,75 1 6,657 5,795 6,778 1,0 12,833
(conti nued)
82
Miss ion L ake Fern Fuller Trinity Islands Oil S pill Totals
Tid e Gate T rus t Pav in g Di saste r 2014 2013
37,417 264,85 6 13 ,092 2,666 ,2 13 2,646 ,895
6,778 4,2 59
17,776 15,6 12
35,465 3,649
29 ,898 26,863
316
513 ,765 5,465
37,4 17 26 4 ,856 13,092 3,269,895 2,703 ,059
97,3 05 380,927
1,100 1,250
25,077 10 ,566 60,24 2 58 ,563
25 ,077
36 ,464 4 ,649
2 5,077 10,566 195 ,111 470,466
513 ,765 5,465
25 ,077 10,566 708,876 475,931
513 ,76 5 5,78!
37,4 17 264 ,856 2,1 40,474 2,272,684
(11 ,9 85 ) (10,566) (93 ,220) (51,3371
37,4 17 264,856 (1 1,985) (10 ,5661 2,56 1,0 19 2,227,128
37,417 264,856 13 ,092 3,269,895 2,703,059
84
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures,
and Chan ges in Fund Ba lances (Deficits)
Year ended June 30, 20 14
(With summa ri zed financial infonnation fo r the yea r ended June 30, 2013)
Rev en ues :
Pro perty taxes and assessments
Transient accommoda tions tax
Int ergovernmental :
State sources
Charges for se rvi ces
Licenses, pennits and fee s
Inv estment income
Other
Tota l revenues
Expe nd it ures :
Current:
General governm e nt
Pu blic safety
Comm unity and economic development
Health and san itat ion de partment
Service district maintenance
Debt serv ice· interest
T otal expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other fi nan cin g sources (uses):
Land sa le proceeds
Transfers in
Tran sfers out
Net other financ ing sources (uses)
Chan ge in fu nd balances
Fund bal ance s (defi cits), at beg in ning of year
Fund balances (deficits), at end of yea r
$
Fire
Proteclion
Area No. I
552 ,353
3,470
25 ,543
581,366
408 ,472
408 ,472
172 ,894
172 ,894
118 ,725
$ __ ..,;2;;;,9;.,;1,6;;,;1;;;,9_
85
Fi re and Road Stn'ice Areas
Fire
WomtDs
Ba y F ire
Department
95,537
14 ,336
4,478
13,200
127,55 1
66,459
66,459
6 1,092
6 1,092
444 ,752
505,8 44
Kodiak
Airport Fire
Dislrict
13,602
362
13 ,964
14,359
14 ,359
(395)
(395)
36,154
35,75 9
Road
Monasbka
Bay Road
Service Area
6 1,032
14 5
6 1,177
55 ,293
55.293
5,884
5,884
(2 ,3 45)
3,53 9
Serv ice
Area No. I
388,416
4,774
393,190
425,158
425,158
(31,968)
(31,968)
380,556
348,588
Fire and Road Serv ice Areas
Womens
Bay Road
Service Area
183 ,730
27,600
1,530
212,860
145,293
145,293
67,567
67,567
71,799
139,366
Road
Ray View Road
Service A rea
13 ,622
78
13,700
5,566
5,566
8,134
8,134
(1,704)
6,430
Service
Area No.2
86
52
52
52
52
5,743
5,795
S tate Grant
Program
L.E,P ,C.
13 ,430
13 ,430
14 ,489
14 ,489
(1 ,059)
(1 ,059)
(16,762)
(17,821 )
(continued)
K O DIAK ISLAND BOR OUGH
Nonmajor Special Revenue Fund s
Combining Statement of Revenues , Expenditures.
and Changes in Fund Balances (Deficits), (continued)
Year eooed June 30 , 20 14
(With s ummar ized financial informat io n for the year ended June 30 , 20 13)
Sa nel L ig htin g Dist ri cts
Wo od la nd Ac r es Trinity Isla nd s
Buildi ngs a nd S ired Light Stru t Lig ht
La nd Sales Ground s Sen 'ic e Area Se n 'ic e A r ts
Reve nu es:
Property taxes and assessments $ 12,067 5,753
Tran sie nt accommodations tax
Inter gov enunental :
State sources
Charges for services 34,765 537,199
Licen ses, pemlits and fees 2,250
Investment income (2 ,647) 2 ,937 208 200
Other 140 481
Total reven ues 34,508 540,6 17 12 ,275 5,953
Expenditure s ·
C urrent:
General government 340,477 510,306 4 ,834 1,800
Pub li c safety
Community and eco nomic deve lop ment
Health a nd sanitation department
Serv ice d istrict maintenance
Debt serv ice· in terest
Total expenditures 340.477 5 10,306 4,834 1,800
Excess (deficiency) of reven ues
over (under) expen ditures P05,969) 30,311 7,441 4 ,153
Othe r financin g sources (uses):
Land sales proceeds 356,284
Transfers in 18,000
Trans fe rs out
Ne t other financin g sources (uses) 356,284 18 ,000
C hange in fund balances 50,3 15 48 ,311 7 ,441 4 ,153
Fund balances (deficits), at beginning o f year 410,602 274 ,970 14,750 17,95 4
Fund balances (defi c its), at end afyear S 460,9 17 323,28 1 22,19 1 22 ,107
87
Tourism Mission Lake Fern Fuller Trinity Islands Oil Spill Totals
Development Tide Gate Trust Paving Disaster 2014 2013
5,448 9,984 1,341 ,544 1,057,55 1
75,142 75 ,142 96 ,640
13,430 62,026
586,300 556,060
29,850 28 ,350
1,150 333 2,293 21 6 19,579 16,090
39,364 37,486
76,292 5,78 1 2,293 10,200 2,105 ,209 I ,854,203
857,417 899,911
503,779 441 ,280
84,126 84 ,126 84 ,9 10
245 17 631 ,572 479,264
2,208 2,208 9,992
84,126 245 2,225 2,079,102 1,915,357
(7,834) 5,536 2,293 7,975 26,107 (61,154)
356,284 6,787
18 ,000 45,600
(66,500 ) (66,500) (123,435)
(66,500) 307,784 (71,048)
(7,834) 5,536 (64,207) 7,975 333 ,89 1 (132,202 )
141 ,5 16 31,881 329,063 (1 9,960 ) (1 0,566) 2,227,12 8 2,35 9,330
133 ,682 37,417 264,856 (11,985) (10,566 ) 2,561,019 2,227,128
88
KODIAK ISLAND BOROUGH
Nonm ajor Specia l R evenue Fund s
Fire and Road Service Areas -Fire Pro tection Area No. I
Sc hedule of Reven ues, Expenditures,
a nd C ha nges in Fund Balance (De fi c it )
Budget a nd Actual
Yea r end ed Jun e 30, 20 14
(W ith financial infonnation for the year ended Jun e 30, 2013 )
Revenues:
Property taxes and as sessments
Intergovernm e ntal -
State sources -PERS o n behalf payment
In vestme nt in co me
Other
Total revenues
Expenditures:
Public safety :
Personne l
Vo lunteers
Fringe b enefi ts
Professional services
S upport goods and serv ices
Capital outlay
Debt se rv ice -
Int ere st
Total expenditures
Excess of revenues over
expend iture s
Fund ba lance (deficit), at beginning or year
Fund balance, at end of year
Fi n al
Budget
$ 533 ,000
5 ,900
1,440
8,700
549,040
99,440
20 ,000
54 ,750
1,000
223 ,850
150 ,000
549,040
$====
8 9
2014
Actua l
552,353
3,4 70
25 ,543
581 ,3 66
108 ,982
13 ,545
71 ,69 1
75
173 ,665
40,514
408 ,472
172 ,894
118 ,725
$ =~2~9;;;1 ,6;;;,1~9 =
Variance w ith
Final Budget
Positive
(Negative)
19,353
(5 ,900)
2,0 30
16 ,843
3 2,326
(9 ,542)
6,455
(16 ,941)
925
50,185
109 ,486
140,568
172 ,894
2013
Actual
53 1,840
13 ,101
(476)
23,838
568 ,303
94 ,832
17,3 10
60 ,507
158,45 7
6,943
6,750
344,799
223 ,504
(104 ,779)
118 ,725
KODIAK ISLAND BOROUGH
No nm ajo r Spec ial Revenu e Fu nds
Fire and Road Service A reas -Wom ens Bay Fi re Departm ~nt
Sch edul e of Reven ues, Ex pend itu re s,
an d Change s in Fund Balance
Budget and Ac tual
Year end ed Jun e 30, 20 14
(With finan c ial info rm at ion fo r the yea r ended Jun e 30, 2013 )
2014
Variance with
final Budget
Final Positive
BudGet Actual (Negati".)
Revenues:
Property taxes and assessments $ 92 ,000 95 ,537 3,537
Charges for se rvices 13,000 14 ,336 1,33 6
I nvestm ent in come 2,000 4 ,478 2,478
Oth e r 12 ,000 13,2 00 1,200
Total revenu es 11 9 ,000 127,55 1 8,55 1
Ex penditure s:
Publi c safety:
Per sonnel services 1,000 1,000
Fringe bene fit s 500 500
Support goo ds and se rvice s 94 ,500 38 ,806 55 ,694
Cap ital outla y 23 ,000 27 ,653 (4 ,653)
Total ex penditur es 11 9,000 66,459 52 ,54 1
Excess of revenu es
over ex penditures $ 6 1,092 6 1,092
Fund bala nce. at be ginnin g o f ye ar 444,75 2
Fun d ba lance , at end of year $ 505 ,844
90
2013
Actual
94 ,27 1
13 ,849
2,522
13,2 00
123,842
48 ,939
24 ,820
73 ,759
50,083
394 ,669
444,75 2
Revenues:
Property taxes and 3SSCssments
lnvestment income
Total revenues
Expenditures:
Public safety:
Support goods and services
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas -Kodiak Airport Fire District
Schedule of Revenues , Expenditure s.
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2014
(With financial information for the year ended June 30, 2013)
2014
Final
BudGet Actual
$ 13,800 13,602
500 362
14,300 13,964
14,300 14,359
Excess (deficiency) of revenues
over (under) expenditures $ (395)
Fund balance, at beginning of year 36,154
Fund balance, at end of year S 35,759
91
Variance with
Final Budge(
Positive
(Negative)
(198)
(138)
(336)
(59)
(395)
2013
Actual
13,743
279
14,022
13,883
139
36,015
36,154
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 (Deficit)
Budget and Actual
Year ended June 30, 2014
(With financial infonnation for the year ended June 30, 2013)
2014
Variance with
Final Budget
Final Positive
Budget Actual (Negative!
Revenues:
Property taxes and assessments $ 60,850 61,032 182
Investment income 145 145
Total revenues 60,850 61,177 327
Expenditures:
Service district maintenance:
Persormel services 500 1,091 (591)
Fringe benefits 589 (589)
Support goods and services 4,350 443 3,907
Snow removaVsanding 26,000 9,713 16,287
Road grading/ditching 5,000 n,l3l (6,l3l)
Repairs and maintenance 25,000 32,326 (7,326)
Total expenditures 60,850 55,293 5,557
Excess (deficiency) ofrevenues
over (under) expenditures $ 5,884 5,884
Fund balance (deficit), at beginning of year ~2,345)
Fund balance (deficit), at end of year $ 3,539
92
2013
Actual
59,904
481
60,385
249
204
2,237
41,964
42,856
87,510
(27,125)
24,780
(2,345)
KODIAK ISLAND BOROUGH
Nonmaj or Special Revenu e Fund s
Fire and Road Service Areas -Service Area No. I
Schedule of Revenue s, Expenditures,
and Changes in Fund Bal an ce
Budget and Actual
Year ended Jun e 30, 2014
(With finan cial inform ation for the year ended June 30, 2013)
2014
Final
Budget Actual
Revenues:
Property taxes and asse ss ment s $ 490,500 388 ,416
Investment income 4,774
Total rev enues 490,500 393,190
Expenditures:
Servi ce district maintenanc e:
Personnel servi ces 8,800 6,038
Fringe benefits 2,900 1,464
Support goods and servi ces 2,\00 \,732
Snow removal /sandin g 200 ,000 73 ,000
Road grading/ditching 10\,700 35 ,358
Repairs and maintenance 575 ,000 307,566
Total expenditures 890,500 425,158
Excess (deficiency) of revenues
over (under) expenditures $ (400,000) (31 ,968 )
Fund balance, at beginning of year 380 ,556
Fund balance, at end of year $ 348,588
93
Variance with
Final Budget
Positive 2013
(Negative! Actual
(102,084) 123,944
4,774 4,035
(97,3\0) 127,979
2,762 7,939
1,436 3,404
368 4,\95
\27,000 98,548
66,342 49,689
267 ,434 7.1,\89
465,342 234,964
368,032 (106 ,985)
487,541
380,556
KODIAK ISLAND BOROUG H
No nm ajo r S pecia l Revenue Fund s
fire a nd Road Servi ce Areas -Womens Bay Road Se rvice A rea
Schedu le of Revenues, Expend itures, and Changes in Fund B alance (De ficit)
Bud get and Actual
Year e nd ed Ju ne 30, 2014
(With financial informat ion for th e year en ded J une 30, 2013)
201 4
Variance with
Fin al Budget
Fina l Positive
B u dget Actu a l (Negative)
Revenue s:
Property taxes and assessments $ 180,000 183,730 3,730
Licen ses, pennits and fe es 25 ,000 27,600 2 ,600
In vestment in come 1,000 1,530 530
Total revenues 206,000 2 12 ,860 6 ,860
Expend itu res:
Se rvice di stri ct ma inten ance:
Personn e l services 1,200 6 1,194
Fringe benefits 800 2 798
Support goods and se rvices 3 1,000 337 30,663
Snow removal/s anding 60,000 48,925 11,075
Road grad ing/ditching 33,000 44 ,270 (11 ,270)
Repa irs a nd main tenance 80,000 5 1,753 28 ,247
Total ex penditures 206,000 145 ,29 3 60,707
Excess of re ven ues
over expenditures 67,567' 67,567
Oth er financing sources:
Trans fers in -
Land Sales Special Re ve nue Fund
Change in fund balance $ 67,5 67 67,567
Fund balance (deficit), at begin n ing of year 7 1,799
Fund ba lance, at end of year $ 139,366
94
2013
Actua l
181 ,203
27,600
81
208,884
94
29
507
86,972
37,647
25 ,290
150,539
58,345
27,600
85 ,945
(14,146)
7 1,799
Rev enu es:
Prope rty taxes and asses sme nts
In ves tm ent in co me
Total revenu es
Expe ndi tu res:
Servi ce dis tri ct main tenan ce:
Perso nn el serv ices
Frin ge bene fit s
Pro fess ion al se rvi ces
S up po rt goods and serv ices
Snow rem ova l/sandin g
Road gr ad ing/ditchi ng
Repairs an d maintenance
Total ex pen ditu res
KODIAK ISLAND BORO UGH
Nonmajor Spec ial Reve nue Fund s
Fi re and Road Serv ice Areas -Bay V iew Road Serv ice A rea
Sched ul e of Rev enu es, Ex pendit ures , and Changes in Fu nd (Deficit)
Budge t and Ac tu al
Y ea r ended Jun e 30, 20 14
(With fi nancial infonn at ion for the year ended Jun e 30, 201 3)
2014
Final
Budget Actual
$ 15,257 13,622
78
15 ,257 13,700
187
16 1
7,257
252
5,400 4 ,966
1,100
1,500
15,2 57 5,5 66
Excess of reve nues ove r
ex pend itu res $ 8,134
Fund balanc e (d efici t), at beginning of ye ar (1,704)
Fund ba lance (d efi cit ), at e nd o f year $ 6,4 30
95
Variance with
Final Budget
Positive 2013
(Nega th'c) Actual
(1 ,63 5) 15,17 1
78 13
(1,557) 15 ,184
(187)
(16 I )
7,257
(252) 6 9
434 6,12 5
1,100
1,5 00
9,69 1 6 ,194
8,134 8 ,99 0
(10,694)
(1,704)
Revenue s:
Investmen t incom e
Expend itu res :
Serv ice di stri ct ma intena nce -
S uppo rt services
K OD IA K ISL A ND BORO UG H
Nonmajor Special Re ven ue Fund s
Fire and Road Se rvice A reas -Serv ice Area No.2
Schedu le of Revenue s, Ex pend itures, and Ch an ges in Fun d Balance
Bu dge t and Ac tua l
Y ca r end ed June 30, 20 14
(\"li th fina nc ial infonnat ion for the yea r e nd ed Ju ne 30 , 20 13 )
Final
Budget
$ __ ----'1"'0"-0 _
100
2014
Actual
52
Varian ce with
Final Bud get
Positive
(Negative)
(48)
100
Excess of reven ues ove r
expenditures $ 52 52
Fun d ba lan ce, at beginning of year
Fund ba lan ce , at end of year
===
96
5,743
5,795 $ ==,,;;;,;,~
2013
A ctual
37
37
5,706
5,743
KODIAK ISLAND BOROUGH
N onmajor Special Reven ue Fu nd s
L.E .P.C.
Schedule of Revenue s , Expenditure s, and Changes in Fund (De ficit)
Bud get and Actu al
Yea r end ed June 30, 20 14
(With financial infonnatio n for th e year ended Jun e 30, 20 13)
2014
Variance wi t h
Final Budget
Final Positive
B ud ge t Actual (Negative)
Revenue s :
Intergovern mental :
State so urc~s -grant s $ 57,120 13,430 (43,690)
Expen ditur es:
Pub li c safe ty:
Personne l service s 36,020 9 ,465 26 ,555
Fr in ge ben efit s 21,100 4 ,609 16 ,491
Supp ort good s and services 4 15 (415)
Total expe nditure s 57 ,120 14,489 42 ,63 1
Exce ss (deficiency) o f revenues
over (under) expenditure s $ (1 ,059) (1 ,059)
Fund (deficit), at beginning of year (16 ,762)
Fund (d eficit), at end of yea r $ (17,821)
97
2013
Actual
15,589
10 ,002
4,8 14
773
15,589
(16 ,762)
(16,762)
KODIAK ISLAND BOROUGH
Nonmajo r Special Revenue Fund s
Land Sales
Schedule of Revenue s, Expendit ur es , and Changes in Fund Balance
Budget and Actual
Year ended Jun e 30 , 2014
(With financial information for the year ended Jun e 30 , 2013)
2014
Variance with
Fi nal Budget
Final Pos itive
Bud get Actual (Nega ti ve)
Re venues:
Intergovernmental:
Sta te sources -PERS on behalf payment $
Charges for se rvic es 50 ,000 34,765 (15 ,235)
Li censes, penn it s and fees 1,000 2,250 1,250
In vestme nt in come 20,000 (2,6 47 ) (22,647)
Other 200 14 0 (6 0)
Total revenues 7 1,2 00 34 ,508 (36,692)
Expenditu res:
General government:
Person nel services 168 ,470 170 ,86 1 (2 ,391)
Fringe benefit s 87,210 87,350 (140)
Prore ss ional serv ices 25,000 27 ,837 (2 ,837)
Suppo rt goods and serv ice s 881 ,750 54,429 827 ,32 1
Total expenditu res 1,162,430 340,477 82 1,953
Excess (deficiency) of revenues
ove r (under) expenditure s (1,091 ,230) (305 ,969) 785 ,26 1
Other financ ing sources:
Land sa le proc eeds 902 ,000 356,284 (545,7 16)
Transfe r out -Women s Bay
Road Service Area Special Re ve nu e Fund
Net other finan c in g so urce s (uses) 902 ,000 356,284 (545,7 16)
Change in fund ba lance $ (189,230) 50,315 239,545
Fund balance, at begin nin g of yea r 410,602
Fund ba lance, at end of yea r $ 460,9 17
98
2013
Actual
13,439
9,684
750
4 ,988
446
29,3 07
162,960
82 ,359
108,11 8
353,437
(324,130)
6,787
(27,600)
(20,813)
(344,943)
755,545
410,602
KODIAK ISLAND BOROUGH
NOllmajor Spe cial Revenue Fund s
Buildings and Grounds
Schedule of Re ve nu es, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2014
(With finan cial information for the year ended June 3D, 2013)
2014
Fina l
Budget Actual
Revenues:
Intergovernmenta l:
State so urce s · PERS on behalf payment $
Charge s for services 569,908 537,199
Inv estment income 1,000 2,937
Other 481
Total revenues 570,908 540,6 17
Expenditures:
General govern ment:
Schoo l building s 35,000 24 ,655
Chiniak Schoo l 2 5,000 1,875
Borough building 495 ,908 4 79,011
Mental health center 5,000 3,538
Var ious borough buildin gs 13,000 1,22 7
Project office 15 ,000
Total expenditures 588,908 510,3 06
Excess (defic iency) of revenues
over (unde r) ex penditure s (18 ,000) 30,311
Other financing sources:
Tran sfer s in ~ Faci lit ies Special Revenue Fund 18 ,000 18,000
Change in fund balanc e $ 48 ,3 11
Fund balance , at begi nnin g or year 274,970
Fund balanc e, at end of year $ 323,28 1
99
Variance with
Final Budget
Positive 2013
(NeGative) Actual
19,897
(32,709) 532,527
1,937 (214)
481 2
(30,291) 552 ,2 12
10,345 44 ,297
23,125 897
16,897 46 3,36 2
1,462 3,074
11 ,773 16,88 1
15,000 554
78,602 529 ,065
48 ,311 23 ,14 7
18,000
48,311 41,147
233,823
274,970
KODIAK ISLAND BOROUGH
Npnmajor Special Reven ue Funds
Woodland Acres Street Light Serv ic e Area
Sch edule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2014
(With financial information for the year ended Jun e 30, 2013)
2014
Variance with
Final Budget
Final Positive
Budget Actual (Ne~ative)
Revenues:
Property taxes and assessments $ 11 ,650 12 ,067 417
In vestment in come 200 208 8
Total revenues 11 ,850 12 ,275 425
Expenditures:
General governme nt:
Support goods and services 11 ,850 4,834 7,0 16
Excess of revenues over
expenditures $ 7,441 7,441
Fund balance, at beginning of year 14 ,750
Fund balance, at end of year $ 22,191
100
2013
Actual
11 ,550
66
11 ,616
5 ,008
6,608
8,142
14 ,750
KODIAK ISLAND BOROUGH
Nonmaj or Special Revenue Funds
Trinity Is lands Street Light Service Area
Schedule of Revenues , Ex penditure s, and Change s in Fund Ba lance
Budget and Actual
Year ended Jun e 30, 2014
(W ith financial infonnation for the year e nded June 30, 20 13)
2014
Variance with
F i nal Budget
Final Positive
Bud~et Actual (Negative)
Revenues:
Property taxes and assessments $ 5,500 5,753 253
Inve stment incom e 100 200 100
Total revenues 5,600 5,953 353
Expen diture s:
General government:
Support good s and services 5,600 1,800 3,800
Excess o f revenues over
expenditures $ 4,153 4,153
Fund balance , at be ginnin g of year 17 ,954
Fund balance , at end o f year $ 22 ,107
101
2013
Actual
5,213
98
5,311
1,835
3,476
14 ,478
17,954
KODIAK ISLAND BOROUGH
Nonmajor Spec ial Revenue Fund s
Tourism Development
Sch edule of Re venu es , Expenditur es, and Chan ge s in Fund Bal anc e
Budg e t and Actua l
Year e nd e d Jun e 3 0, 2014
(With financia l infonn ation for the ye ar end ed Jun e 30 , 2013 )
2014
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
Rev en ues :
Trans ient accommodation s tax $ 115 ,000 75,142 (39 ,858)
In vestment incom e 500 1,150 650
Tot al reve nu es 115 ,500 76,292 (39 ,208)
Expenditures :
Communi ty and economic developm e nt:
Contributions 10 3,126 84 ,126 19 ,000
Supp o rt good s and servi ces 12,374 12 ,374
Total exp enditure s 115 ,500 84 ,126 31,374
Excess (d e ficienc y) of revenu es
ov er (und er) expenditure s $ (7 ,834) (7 ,834)
Fund balance, at beginning of year 141 ,516
Fund balanc e, at end of year $ 13 3,682
102
2013
Actual
96,640
818
97 ,458
84 ,910
84,910
12 ,548
128 ,968
141,516
K O DIAK ISLAN D BO RO UGH
No nm ajo r Speci al Reve nu e Fun ds
M iss ion Lake Tid e G ate
Sc hedul e of Reve nu es, Ex penditu res, and Changes in Fund Ba lan ce
Budget a nd Actu a l
Vear e nde d Jun e 30, 20 14
(With fin anc ial informati on fo r th e year end ed J une 30, 20 13)
2014
V a ri a nc e w ith
F in a l Budget
Final Pos itive
Budget Actual (N egat ive)
Reven ues:
Pro pe rty taxes and assess ments $ 3,740 5,44 8 1,70 8
In ves tm ent inco me 230 333 103
To tal reve nues 3 ,970 5,78 1 1,8 11
Ex penditures:
Servi ce distri ct main te nance:
Perso nne l se rvic es 188 (188)
Fr inge benefit s 50 (50)
Co ntr ac ted services 2 ,000 2,000
Supp ort goo ds an d service s 1,970 7 1,963
To tal expen di tu re s 3,970 24 5 3,725
Excess of reve nue s
o ver ex penditur es $ 5,536 5,536
Fund balan ce, at beginnin g of year 3 1,88 1
Fund ba lance , at end o f year $ 37,41 7
10 3
2013
Actual
5,11 7
172
5,289
9
9
5,280
26 ,6 01
3 1,88 1
KODIAK ISLAND BOROUGH
N Ollmajor Special Reve nue Fund s
Fern Fulle r Tru st
Schedule of Reve nu es , Expend iture s, and Changes in Fund Ba lance
Budget and Actual
Year ended June 30, 20 14
(With fina n cia l informat ion for the year ended June 30, 2013)
2014
Variance wit h
F in .1 Bu d get
Final Positive
Budget Actu.1 (Neg.tive)
Revenue s:
Inve stment income $ 3,500 2,29 3 (1 ,207)
Expe nditures:
Genera l governme nt:
Ex ce ss of revenue s
over expenditure s 3 ,500 2,29 3 (1,207)
Other financ ing (u ses):
Tran s fers out-
Ho spital Facilities Enterpri se Fund (66 ,500) (66 ,500)
Change in fund ba lance s $ (63 ,000) (64 ,207) (1 ,207)
Fund balance , at beg inning of year 329 ,063
Fund ba lance, at end of year $ 264,856
104
20 13
Ac tu al
2,762
2,762
(66,500)
(63 ,738)
392,801
329,063
KODIAK ISLAND BOROUGH
Non major Special Revenue Fund s
Trinity Is lands Paving
Schedule of Revenues, Ex pen ditures, and Changes in Fund (Deficit)
Budget and Actual
Year ended Jun e 3 0, 2014
(With financial info nnatio n for the year en ded June 30, 2013)
2014
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
Revenues:
Prop erty taxes and assessments $ 10 ,0 00 9,984 (16)
Invest ment in co me 500 216 (284)
Total revenu es 10 ,5 00 10 ,200 (30 0)
Ex penditure s:
Service di st rict maintenance -
Support goods and serv ices 8,2 90 17 8,273
Debt service -
Intere st 2,2 10 2,208 2
Total expenditures 10 ,5 00 2,2 25 8,275
Excess of revenues over
expenditure s $ 7,975 7,975
Fund (deficit), at beginnin g of year (19,960)
Fund (deficit), at end of year $ (11 ,9 85)
105
2013
Actual
15 ,595
428
16,023
48
3,242
3,290
12 ,733
(32 ,693)
(19,96 0)
KODIAK ISLAND BOROUGH
No nmaj o r Special Revenue Fund s
Oil Spill Di sas ter
Schedu le of Re ve nue s, Expenditures, and Changes in Fund Balance (Deficit)
Budget and Actual
Year ended June 30, 2014
(W ith finan cial information for th e yea r ended June 30, 2013)
Revenue s
Expenditures;
General government:
Personnel services
Fringe benefit s
Support goods and se rv ices
Tota l expe nd itur es
Excess (deficiency) of revenues
over (under) expenditure s
Fund (deficit), at beginn ing of year
Fund (deficit), at end of year
2014
Final
Budget Actual
$
$
(10 ,566)
$ (10 ,566 )
106
Variance with
F inal Budget
Pos itive
(Negative)
2013
Actual
6,036
3,644
886
10,566
(10,566)
(10,566)
(This page was left blank intentiona ll y)
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NONMAJOR CAPITAL PROJECT FUNDS
The Borough Capital Projects Fund accounts for capital improvement projects
related to various fmancing 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 Fund accounts for capital improvement projects relating
to grants received from the State of Alaska.
The Other Capital Projects Fund accounts for capital improvement projects related
to var ious financing sources.
Assets
Equity in central treasury $
Receivable s :
State of Alaska
Federal governm ent
Property tax es
Account s and ot her rece ivab le s, net
Total $
L iabilities and Fund Balances
Liabilities:
Acco un ts payable
Due to other funds
Unearned revenues
Total liabilities
Fund balances -
Assigned
Total $
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Funds
Combin in g Ba lance Sheet
June 30 , 2014
(With su mmari ze d financial inform at io n at June 30, 2013)
Borough Sc hool Bond State Oth er
Capital Capita l Capital Capital
Projects Projects Grant s Proiects
530 ,827 186 ,749 319 ,130 2,28 3,455
8,302 7 ,065
152 ,900 1,095
4,466 3,153
535,293 186 ,749 483,485 2,291 ,615
4,800 104 ,931 38 ,3 03 1,638
8,962 89 ,389
4,800 104 ,93 1 47 ,265 9 1,027
530 ,493 81 ,818 436 ,220 2,200,588
535 ,293 18 6 ,749 483 ,485 2,29 1,615
107
Totals
2014 2013
3,320,16 1 3,397 ,958
15,367 93 ,255
153,99 5 18,329
1,050
7,6 19 7 ,620
3,497 ,14 2 3 ,5 18 ,212
149 ,672 106 ,490
1,814 ,255
98,35 1 121 ,195
248,023 2 ,041 ,940
3 ,249 ,11 9 1,476 ,2 72
3,497 ,14 2 3 ,5 18 ,2 12
Revenues:
Property taxe s and assessments
Intergove rnmental:
State sources
Federal sources
In ves tment income
Total revenues
Expenditures:
Capital outlay:
Schoo ls
General
Total expenditu res
Excess (deficiency) of re ve nue s
over (u nder ) expenditures
Other financin g sources:
Transfers in
Tran sfer s Qut
Net other financing so urce s (uses)
Change in fund balance s
Fund ba lances , at beginning of year
Fund balance s, at end of year
KODIAK ISLAND BOROUGH
Nonmajor Capital Proje ct Fund s
Combining Statement of Revenu es, Ex penditures, and Changes in Fund Balances
Year ended June 30, 2014
(With summari zed financ ial information for the year ended J une 30 , 20 13)
Borough School Bond State Other
Capital Cap it al Cap ital Capita l
Projects Projects Grants Proj ects
$
19 ,177 28 ,3 09
152 ,900 34,102
4,7 08 66 3,652 19,170
4,708 66 175,729 81 ,581
122 ,388
174,137 60 ,721
122,388 174,137 60 ,721
4,708 (122,322) 1,592 20,860
4 ,708 (122 ,322) 1,592 20,860
525,785 204,140 . 434,628 2.179 ,728
$ 530,493 81,818 436 ,220 2,200,588
108
Tota ls
2014 2013
86 ,702
47 ,486 1,371 ,108
187 ,002 51 ,705
27 ,596 6 1,794
262 ,0 84 1,571,309
122 ,388 613 ,235
234,858 2,041,674
357 ,246 2,654 ,909
(95 ,162) (1,083 ,6 00)
390 ,347
(4,26 1,195)
(3,8 70,848)
(95 ,162) (4,954 ,448)
3,344,281 6,430 ,720
3,249 ,119 1,476 ,272
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ENTERPRISE FUNDS
The Muuicipal Solid Waste Collection and Disposal Fund accounts for the
collection and disposal of solid waste and recycling services for the Kodiak Island
Borough.
The Hospital Facilities Fund accounts for rents on the Borough-owned hospital,
hospital related state revenue sharing , and other hospital related revenue . In turn , it
purchases hospital equipment and makes debt service payments on hospital related
debt.
The Kodiak Fisheries Research Center Fund accounts for rents and expenses on
the Borough-owned Kodiak Fisheries Research Center. The three tenants: NOAA ,
Alaska Department of Fish & Game and Univers ity of Alaska, Fairbanks pay lease
funds to participate in this multi-agency res earch faci lit y committed to the
preservation of the North Pacific marine ecosystem and resources.
The 911 Service Fund accounts for funds collected from phone charges and pays for
a 911 emergency system.
KODIAK ISLAND BOROUGH
Enterprise Fund s
M uni c ipa l So lid Waste Co ll ecti o n and Disposal
Sc hed ule of Revenues, Ex penses , and
Changes in Ne t Positi on
B ud get an d Actual
Year ended Jun e 30 , 20 14
(W ith finan cia l inform ati on for the year end ed June 3 0, 20 13)
2014
Variance with
F inal Budget
Final Positive 2013
Budget Actual ~egative} Actua l
Operating re ven ue s:
Solid waste disposa l $ 2,536,085 2,265 ,967 (27 0,118) 2 ,504 ,035
Other 39,403 39,403 11 ,7 08
Tot al operating re ve nue s 2,53 6,08 5 2 ,305 ,370 (23 0,71 5) 2,5 15,74 3
Operating expen ses:
Per so nn e l se rvi ces 995 ,829 87 6,354 119,4 75 936 ,508
Con trac ted serv ice s 46 ,000 185,284 (1 39 ,284) 352 ,132
Maintenance and repa ir s 72 ,500 141,309 (6 8,80 9) 38,882
Landfil l clo sure and po stcl osure costs 300 ,000 3 00 ,000
Depreciation 306 ,12 0 278,342 27 ,778 293 ,913
General and admini strat ion 287 ,600 206,793 80 ,807 30 1,707
Recycling services 28 0 ,000 214 ,876 65 ,124 2 12,243
Co nt ribution s 48 ,500 39,106 9,394 37,011
Tota l operating expenses 2,336,549 1,942,064 3 94,485 2,172,3 96
Operating income 199 ,536 363 ,306 16 3,770 343,34 7
Other income (expense):
Intergove rnm ental :
State sources -grant s 5,323,038 5,323,038 5,2 05 ,962
State of Alaska on -b ehalf payment 60,967
Inv es tment income 100 ,000 67,094 (32,906) 63,542
Bond premium amort iza tion 27 ,211 27,2 11 27,211
Bond iss uanc e costs (25 ,285)
Landfill closure and po st clos ure costs 377,471 377,471
Intere st expen se (25,000) (138 ,8 00) (113,800) (144 ,3 25)
Total other in co me (expense) 75,000 5,656,0 14 5,58 1,014 5,188,072
In co me befo re tran sfer s 274 ,536 6,01 9,32 0 5,744,784 5,531 ,4 19
Transfers in 13,500 13,500 13,5 00
Change in net pos it io n $ 288,036 6,032,820 5,744,784 5,544,9 19
Net po s ition , at beginnin g of year 10 ,81 3 ,768 5,268 ,849
Net pos iti o n, at end of year $ 16,846 ,588 10 ,81 3 ,768
109
KODIAK ISLAND BOROUGH
Enterpr ise Fund s
Hos pital Facilitie s
Sc hedu le of Reven ues , Ex pe nses, and
Change s in Net Posit ion
Budget and Actua l
Year ended June 30, 2014
(With financ ial information for the year ended June 30, 2013)
Operating revenue s:
Lease income
Other
Tota l operating revenue
Operat ing expenses:
Per so nnel service s
Maintenance and repair s
Miscellaneous
Depreciatio n
Total operating expenses
Operating in co me (lo ss)
Other income (expen se):
Intergovernmental:
State sources ~ grants
Federal sources -grants
Inve stment income
Bond premium amorti za tion
Bond issue costs
Contribution to Providence Hospita l
Intere st expense
Total other income (expense)
[ncome (loss) before transfers
Transfers in
Change in net posit ion
Net position , at beginning of year
Net po sition, at end of year
Final
Bud~et
$ 720,000
720,000
10 ,000
885,000
895,000
(175 ,000)
20,000
(108,000)
(37,470)
(125,470)
(300,470)
66,500
$ (233,970)
JlO
2014
Actual
1,150,000
1,150 ,000
10 ,100
5,791
867,913
883 ,804
266,196
215 ,000
73,207
113 ,82 1
(108,000)
(748,721)
(454 ,693)
(188,497)
66,500
(121 ,997)
21,385,710
$ 21,263,713
Variance with
Final Budget
Positive
(Ne~ative)
430,000
430,000
(100)
(5,791)
17,087
11 ,196
418,804
215,000
53,207
113 ,82 1
(711,251)
(329,223)
89 ,581
89,581
2013
Actual
720 ,000
720,000
10,000
845,191
855,191
(135,191)
778,133
1,338
26 ,626
(87,288)
(108,000)
(40,556)
570,253
435,062
66,500
501,562
20,884,148
21 ,385,7 10
KODIAK ISLAND BOROUGH
Enterpri se Fund s
Kodiak F isheri es Re sea rch Center
Sch ed ule of Revenue s, Ex penses, and
Changes in Ne t Po s ition
Budget and Act ua l
Year e nded June 30, 20 14
(With financial infonnat ion for th e year ended Jun e 30 , 2013 )
2014
Variance with
Final Budget
F inal Posit iv e
Budget Actual (Negative)
Operating revenue s:
Lea se incom e $ 1,5 43 ,500 1,851 ,322 307,822
Other 4 39 4 39
Total operatin g reven ues 1,5 4 3,5 00 1,851 ,761 308,26 1
Operating expenses:
Per sonnel se rvic es 35 1,882 359,783 (7,90 1)
Maintenance and repairs 95,000 1,144 93,856
Depreciation 750,2 00 636,143 114 ,0 57
Gener al and admini stration:
C leanin g and janitorial 55,7 00 50,114 5,586
Heating 205,000 15 5,290 4 9,7 10
Electrical 188 ,500 152 ,984 35,5 16
Plumbing 169 ,000 50,384 118 ,616
Air conditioning 628 (628)
E le vators 3,000 2 ,15 0 850
Mi sce llaneou s 11 3,943 4 7,090 66 ,853
Total operating expenses 1,932,225 1,455,710 476,5 15
Operating income (lo ss) (388,725) 396,051 784,337
Other income (expense):
State of Ala ska on-behalf paym e nt
In vesttnent income 38,550 38,550
Intere st expen se 225,400 (225,401) (450,801)
Total other incom e (expense) 225 ,400 (186,851) (412 ,2 51)
Change in net po sition $ (163 ,325) 209,200 372,086
Net po s ition , at beg inning of year 10,178,9 86
Net po s ition , at end of year $ 10 ,388 ,186
111
2013
Actual
1,6 03,503
1,603,5 0 3
34 3,270
99
635,031
48,908
2 10,977
170 ,062
34 ,064
5,500
67 ,276
1,515 ,187
88 ,316
23 ,329
27,534
(259 ,875)
(209,012)
(120,696)
10,299 ,682
10 ,178,986
KODIAK ISLAND BOROUGH
Enterpri se Fund s
911 Service Fund
Schedu le of Revenue s, Expenses, and
C hanges in Ne t Pos iti on
Budget and Actual
Year ended June 30, 2014
(With financial infonnation for the year ended June 30, 2013)
Operating revenues:
Customer charges
Operating expenses:
Personnel services
Miscellaneous
Telephone services
Total operating expenses
Operating income (lo ss )
Net position, at beginning of year
Net position, at end of year
$
$
Final
Budget
50 ,000
3,000
100
46 ,900
50,000
112
2014
Actual
39,817
3,000
98
36,7 19
39,8 17
$====
Variance with
Fi nal Budget
Positive
(Negative)
(10,183)
2
10 ,181
10 ,183
2013
Actual
39,7 69
3 ,000
142
84 ,454
87,596
(47,827)
47 ,827
SUPPLEMENTARY SCHEDULES
J
J
. , .
KODlAK ISLAND BOROUGH
SUMMARY O F BONDED DEBT SERVICE REQU IREMENTS TO MATURITY
Jun e 30, 2014
Annua l principal and interest re quirem ents on Ge neral Obli gat ion Refundin g and
Construction Bond s.
Fi sca l Year PrinciEa l In terest Total
2015 $ 2,640,000 $ 3,119 ,88 5 $ 5,759,885
20 16 3,170,000 2,989,362 6,159 ,362
20 17 3,295,000 2,86 9,2 12 6,164,2 12
20 18 3,395 ,000 2,750 ,462 6,145,462
20 19 3,540,000 2,6 17,362 6,15 7,362
2020 3,670,000 2 ,478,487 6,14 8,487
202 1 3,8 15,000 2 ,33 6,09 9 6,15 1,099
2022 3,980,000 2,166,550 6 ,146 ,55 0
2023 4 ,160,000 1,985 ,699 6,145 ,699
2024 4 ,355,000 1,7 89,538 6,144,538
2025 4 ,57 0,000 1,572 ,570 6,14 2 ,570
2026 3,310,000 1,402 ,026 4 ,7 12,026
2027 3,470,000 1,238,228 4,708,228
2028 3,645,000 1,064 ,122 4 ,709,122
2029 3,205 ,000 881,234 4 ,086,234
2030 3,365 ,000 720,316 4,085 ,3 16
203 1 3,535,000 55 1,360 4 ,086,360
2032 3,085 ,000 38 1,190 3,466 ,190
2 0 33 3,240,000 226,940 3,466,940
2034 1,690 ,0 00 84 ,750 1,77 4 ,750
$ 69,135,000 $ 33,22 5,39 2 $ 102,360,392
113
(This page was left blank intentio nall y)
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2004 SERIES D
RETIREMENT SCHEDULE
June 30, 2014
2004 D BOND ISSUE
This iss ue, dated December 1,2004 , wa s iss ued under a book entry system regi stered in the nam e of Cede &
Company, as Nominee of the Depo s itory Trust Co mpany, New York, New York, the securitie s depo s itory for the
2004 Series D Bond. This issue was marketed by th e Alaska Municipal Bond Bank . Legal opinion wa s rendered by
bond council , Wohlforth, Vassar, Johnson & Brecht of Anchorage, Alaska. This bond wa s iss ued to fund the
acquisition and construction of sc hool capital improvements in the Borough, includin g a new sc hool pool and the
Kodiak High School Voc Ed/Classroom reclamation.
Fiscal year Interest rate
2015 4.00%
Interest du e
November 01
$ 10 ,600
Principal due
November 01
$ 530,000
114
$
Intere st du e
May OI
$
Total
540,600
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2008 SERlES A
RETIREMENT SCHEDULE
Jun e 30 , 20 14
2008 A BOND ISSUE
Thi s issue, dated April 15,2008, was iss ued under a bo ok entry system re gistered in the nam e of Cede & Compa ny, a s
Nominee of the Depository Trust Compan y, New York, New York, th e sec uriti es depo s itory for the 2008 Series A
Bond. This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond council ,
Birch, Horton, Bittner and C herot of Anchorage, Alaska. Thi s bond wa s issued to fund the acq ui sition and
construction of school capital improvements in the Borough , including a new schoo l pool.
Int ere st due Principal due Interest due
Fiscal ~ear Interest rate October 01 AerilOI AerilOI Total
2015 5.00% $ 144,605 $ 335 ,000 $ 144,605 $ 624,210
20 16 5.00% 136,230 350,000 136 ,230 622,460
2017 4 .00% 12 7,480 370,000 127 ,4 80 624 ,960
2018 4.00% 120,080 380,000 120 ,080 620,160
2019 4.00% 112,480 400,000 112 ,480 624 ,960
2020 4.25% 104 ,480 415,000 104,480 623 ,960
2021 4 .25% 95,661 430,000 95,661 621 ,3 22
2022 4.38% 86,524 450,000 86,524 623 ,048
2023 4.50% 76,680 470,000 76,680 623,360
2024 4.70% 66 ,105 490,000 66,105 622,210
2025 4.80% 54,590 515,000 54,590 624 ,180
2026 4.90% 42,230 540,000 42,230 624,460
2027 5.00% 29,000 565,000 29,000 623 ,000
2028 5.00% 14,875 595,000 14 ,875 624,750
$ 1,211,020 $ 6,305,000 $ 1,211,020 $ 8,727,040
liS
KODIAK ISLAND BOROUGH
GENERAL OBLIGA nON BOND, 20 II SERIES ONE
RETIREMENT SCHEDULE
June 30, 2014
2011 SERIES ONE BOND ISSUE
This issue , dated March 1, 2011 , was issued under a book entry system registered in the name of Cede & Company, as
Nominee of the Depository Trust Company, New York, New York, the securit ie s depository for the 2011 Series One Bond.
This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond council , Birch,
Horton, Bittner and Cherot of Anchorage, Alaska. This bond was issued to fund the High Schoo l Renovation and Renewal
project.
Interest due Principal due Interest due
Fiscal ;tear Interest rate SeE tember 0 I AErilOI March 01 Total
2015 2.05% $ 160,500 $ 305,000 $ 160 ,500 $ 626,000
20 16 2.36% 155,925 310,000 155,925 621,850
2017 2.75% 151 ,27 5 320,000 151,275 622,550
2018 3.12% 146,475 330,000 146,475 622,950
2019 3.45% 140 ,700 340,000 140,700 621,400
2020 3.70% 133,900 355,000 133 ,900 622,800
2021 3.93% 126 ,800 370,000 126,800 623 ,600
2022 4.80% 119,400 385,000 119,400 623,800
2023 4.80% 110 ,256 405,000 110,256 625,512
2024 4.80% 100 ,638 425,000 100,638 626,276
2025 5 .20% 90,544 445,000 90,544 626,088
2026 5.20% 79,975 465,000 79,975 624,950
2027 5.20% 68,931 485,000 68,931 622,862
2028 5.20% 56,503 510,000 56,503 623,006
2029 5.20% 43,434 535,000 43,434 62 1,868
2030 5.20% 29,725 565,000 29,725 624,450
2031 5.20% 15,247 595,000 15,247 625,494
$ 1,730,228 $ 7,145,000 $ 1,730,228 $ 10,605,456
116
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 20 12 SERIES A
RETIREMENT SC HEDULE
June 30, 20 14
2012 A BOND ISSUE
Thi s issue, dated Ma y 24, 20 12 wa s is sued under a book entry sy stem regi stered in the name of Cede & Company, as
Nominee of the Depository Tru st Company, New York, Ne w York, th e securities depository for the 20 12 Ser ies A Bond.
This iss ue wa s marketed by the Ala ska Municipal Bond Bank. Lega l opinion was rendered by bond council , Wohlforth ,
Vassar, John son & Brecht of Anchorage, Alaska. This bond was iss ued to refund part of the 2004C Bond which was is s ued
to fund planning, de s ign , and con struction of c ap it a l improvements to the Larsen Bay School, Kodiak Middle School and
Kodiak High School.
Interest due Principal due Interest due
Fiscal :tear Interest rate SeEtember 1 SeEtember I March 1 Total
2015 2.00% $ 11 3,400 $ $ 113 ,400 $ 226 ,800
2016 4.00% 11 3 ,400 435 ,000 104,700 653 ,100
2017 4.00% 104,700 455 ,000 95 ,600 655 ,300
20 18 2.00% 95 ,600 460,000 9 1,000 646 ,600
2019 4.00% 91 ,000 480,000 81,400 652 ,400
2020 5.00% 81,400 495 ,000 69,025 645,425
2021 5.00% 69 ,025 525 ,000 55 ,900 649 ,925
2022 4.00% 55 ,900 545,000 45 ,000 645,900
2023 5 .00% 45 ,000 570,000 30,750 645 ,750
2024 5.00% 30,750 600,000 15,750 646 ,500
2025 5.00% 15,750 630,000 645,750
$ 815,925 $ 5,195,000 $ 702,525 $ 6,713 ,450
117
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2012 SERJES B
RETIREMENT SCHEDULE
June 30, 20 14
2012 B BOND ISSUE
Thi s issue , dated May 24, 2012 was issued under a book ent ry syste m registered in th e nam e of Cede & Company, as
No min ee of the Depository Tru st Co mpan y, New York , New York , the sec uriti es depos ito ry for the 20 12 Ser ies B Bond.
Thi s issue was marketed by t he A laska Municipa l Bond Bank. Legal op ini on was rendered by bond council , Wohlforth,
Va ssa r, John so n & Brecht of Anchorage , Alaska. This bond wa s iss ued to refund part of the 2004D bond iss ue, whic h was
u sed to fund the acquisition and construction of schoo l cap it al impro vemen ts in the Borough , including a new school pool
and the Kodiak High School Voc!E d C lass room reclamation.
Interest due Pri!lcip ai du e Interest due
Fisca l year Interest rate Se~tember 1 Se~tember I March I Tota l
20 15 2.00 % $ 138 ,375 $ $ 138 ,375 $ 276,750
20 16 4.00% 138 ,375 530,000 127,775 796,150
20 17 4.00% 127 ,775 550,000 11 6,775 794,550
2018 2.00% 11 6 ,775 565,000 111 ,12 5 792,900
2019 4.00% 111 ,125 585 ,000 99,42 5 795,550
2020 5 .00% 99,425 6 10,000 84 ,175 793 ,600
202 1 5.00% 84,175 640,000 68 ,17 5 792,350
2022 4.00% 68,17 5 665,000 54 ,875 788 ,050
2023 5.00% 54 ,875 695,000 37,500 787 ,3 75
2024 5.00% 37,500 730,000 19 ,250 786,750
2025 5.00% 19 ,250 770,000 789,250
$ 995 ,825 $ 6,340,000 $ 857 ,450 $ 8,19 3 ,275
118
KODIAK ISLAND BOROUGH
GENE RA L OBLIGA TlON BOND, 2013 SERJ ES ONE
RET IREMENT SCHEDULE
June 30, 20 14
2013 SERIES ONE BOND ISS UE
Thi s iss ue, da te d March 1,20 13, was iss ued under a book entry sys tem re g istered in th e name of Ce de & Co mpan y, a s
Nominee of the Depos itory Tru st C ompany, New York, New York, th e se curiti es depos itory for th e 20 13 Series On e
Bond . This iss ue wa s ma rketed by the A las ka Municipa l Bond Bank . Legal opinion was rendered by bond counci l,
Birch , Horton, Bittner and Cherot o f Anchorage, Alaska. Thi s bond wa s iss ued to fund the High Sc hoo l Renovation an d
Renewa l proj ect.
Intere st Interest Due Prin c ipal Due Interest due
Fi sca l Year Rate Au gust 01 February 01 February 01 Total
2015 4.00% $ 479,670 $ 73 0,000 $ 479 ,670 $ 1,689 ,3 40
2016 4.00% 465,070 760 ,000 465,070 1,690 ,140
2017 4.00 % 449,870 79 0 ,000 449 ,870 1,689 ,740
20 18 4 .00% 434 ,070 820,000 434,070 1,688 ,140
20 19 5.00% 417 ,670 855 ,000 417,670 1,690 ,34 0
2020 4 .00% 396,2 95 895 ,000 39 6,295 1,687,590
202 1 4.00% 378,395 935 ,000 378,395 1,691 ,790
2022 4.00% 359,695 970 ,000 359,695 1,689,390
2023 4 .00% 340,295 1,010 ,000 340,295 1,690 ,590
2024 5 .00% 32 0,095 1,050 ,0 00 320,095 1,690 ,190
2025 5.00% 293,845 1,100 ,000 293,845 1,687 ,690
2026 5.00% 266,345 1,155,000 266,345 1,687 ,690
2027 5.00% 237,470 1,215 ,000 237,470 1,689,940
2028 5.00% 207,095 1,275 ,000 207,095 1,689,190
2029 5 .00% 175 ,220 1,340,000 175 ,220 1,690,440
2030 5.00% 141 ,720 1,405,000 141,720 1,688 ,440
203 1 5.00% 106,595 1,475 ,000 106 ,595 1,688 ,190
2032 5.00% 69,720 1,550 ,000 69,720 1,689,440
2033 3.80% 30 ,970 1,630 ,000 30,970 1,691 ,940
$ 5,570,105 $ 20,960,000 $ 5,570,105 $ 32,100,210
119
KODIAK ISLAND BOROUGH
GENERAL OBLlGATION BOND, 2014 SERIES ONE
RETIREMENT SCHEDULE
June 30, 2014
2014 SERIES ONE BOND ISSUE
This iss ue , dated March 12 ,201 3, wa s iss ued under a book entry system regi stered in th e nam e orCede & Company, a s
No min ee of the Depository Trust Company, New York, New York , th e sec uriti es depos itory for th e 20 13Seri es One Bond.
This iss ue was marketed by th e Alaska Municipal Bond Bank. Legal opinion was rendered by bond council, Birch, Horton,
Bittner and Cherot of Anchorage, A laska. This bond was iss ued to fund the High School Renovation and Renewal project.
Interest Interest Due Principal Due Interest Due
Fiscal Year Rate September 01 March 01 March 01 Tota l
20 15 2.00% $ 533,454 $ 740,000 $ 502 ,73 1 $ 1,776,185
2016 3.00% 495 ,33 1 785 ,000 495 ,33 1 1,775,662
2017 4.00% 483,556 810,000 483 ,556 1,777,112
2018 5.00% 467,356 840,000 46 7,356 1,7 74 ,712
2019 2.00% 446,356 880,000 446,356 1,772 ,7 12
2020 2.00% 43 7,556 900,000 4 37,556 1,77 5,112
2021 5.00% 428,556 915,000 428,556 1,772,112
2022 5.00% 405 ,68 1 965,000 405,681 1,776,362
2023 5.00% 381 ,556 1,010 ,000 381,556 1,7 73 ,112
2024 5.00% 356,306 1,060 ,000 356,306 1,7 72,612
2025 3.12% 329,806 1,110 ,000 329,806 1,769,612
2026 5.00% 3 12 ,463 1,150,000 312,463 1,774,926
2027 5.00% 283,713 1,2 05,000 283,713 1,772,426
2028 5.00% 253 ,5 88 1,2 65 ,000 253,588 1,772,176
2029 5.00% 221 ,963 1,330,000 221,963 1,773 ,926
2030 5.00% 188,713 1,395,000 188 ,713 1,772,426
2031 4.50% 153 ,838 1,465 ,000 153 ,838 1,772,676
2032 5.00% 120,875 1,535 ,000 120;875 1,776,750
2033 5.00% 82 ,5 00 1,610,000 82 ,5 00 1,775,000
2034 5.00% 42,250 1,690,000 42 ,500 1,774,750
$ 6,425 ,4 17 $ 22,660,000 $ 6,394,944 $ 35,480,361
120
(This page was left blank intentionally)
STATISTICAL SECTION
• .I
_.J
STATISTICAL SECTION
This part of the Kodiak Island Borough's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the fmancial statements, note
disclosures , and required supplementary infoffilation says about the governments' overall fmancial
health.
Contents
Financial T rends
These schedules contain trend informatio n to help the reader understand
how the government's finanCial performance and well-being have changed
over time.
Revenue Capacity
These schedules contain information to help the reader assess the govern-
ment 's most significant local revenue source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the afJorda -
bility of the government's current levels of outstanding debt and th e gov-
ernment's ability to issue additional debt in the future.
Demographic and Economic Information
These schedules ofJer demographic and economc indicators to help the
reader understand the environment within which the gove rnment 's finan-
cial activities take place.
Page
121-124
125-129
130-134
135-141
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial
reports for the revelant year.
· , . r
KODIAK ISLAND BOROUGH
Net Po s itio n by Component
La st Te n Fiscal Yea rs
(accrual basis of accounting)
Fisca l Year
2005 2006 2007 2008 2009
Gove rnm ent al act ivit ies:
Net in vestment in capita l assets $ 61,154,2 04 $ 62,7 16 ,326 $ 73 ,425,394 $ 25 ,127 ,779 $ 71 ,534,766
Unrestricted 45,052,197 4 5,653 ,357 37,640,7 16 89,853 ,794 48 ,140 ,406
Tota l gove rnm enta l activitie s net assets $ 106,206,401 $ 108,369,683 $ 111 ,066,11 0 $ 114,981 ,573 $ 11 9,675,172
Business-type act ivities:
Net in vestment in cap it al assets $ 39,878,78 5 $ 38,588,510 $ 38,623,762 $ 34,706,597 $ 38,135,3 40
Unrestricted (7 ,263,950) (6,133,853) (5 ,503,362) (2,862 ,363) (2,939,30 1)
Total busines s-typ e act iv itie s net asse ts $ 32,6 14 ,835 $ 32,454,657 $ 33,120 ,400 $ 3 1,8 44 ,234 $ 35,196,039
Primary government:
Net investm ent in cap ital assets $ 101 ,032,98 9 $ 101 ,304,836 $ 112,049,156 $ 59,8 34 ,376 $ 109,670,106
Unrestricted 37,788,247 39,5 19,504 32,137,354 86,99 1,431 45,20 1,105
Total primary governm ent net asse ts $ 138,82 1,236 $ 140 ,824,340 $ 14 4,186,510 $ 14 6,825 ,807 $ 154,87 1,2 11
Fisca l Year
2010 2011 2012 2013 2014
Governmenta l activit ies:
Net in vest ment in capi tal assets $ 77,447,045 $ 8 1,789,375 $ 85,285,497 $ 72,773,598 80,159 ,521
Un restric ted 48 ,992 ,902 47 ,094 ,977 48,265,320 47,149,835 46 ,754 ,46 1
Tota l governmenta l activ iti es net assets $ 126,439,947 $ 128,8 84 ,352 $ 133,550,8 17 $ 119,923 ,433 126,913,982
Bu sin ess-type act ivities:
Net investment in capital assets $ 36,655,859 $ 35,170,143 $ 3 1,967,945 $ 2 1,628,143 36,383,229
Unrest rict ed (598,367) 1,137,826 4,532 ,56 1 20,750,32 1 12,115 ,258
Tota l bu sin ess-type activ ities net assets $ 36,057,492 $ 36,307,969 $ 36,500,506 $ 42,378,464 48,498,487
Primary gove rnm ent:
Ne t investment in capi tal asse ts $ 114,102,904 $ 116,959,5 18 $ 11 7,785,10 8 $ 94 ,401 ,74 1 11 6,542,750
Unrestr ict ed 48,394 ,535 48 ,232 ,803 55 ,522,297 67 ,900,156 58 ,869,719
Tota l primary government net assets $ 162,497,439 $ 165,192,32 1 $ 173,307,405 $ 162,30 1,897 175 ,4 12 ,469
So ur ce: Borough general ledger
121
KODIAK I SLAND BORO UGH
Fund Balances of Govemmental Funds
Last Five Fiscal Years
(modified accrual ba sis of accounting)
F is ca l Yea r
2010 ill! 2012 2013 2014
Ge ne ral Fund:
Nonspendab le $ 15 ,703 $ 6 ,801 $ 166,020 $ 6 ,324 $ 1,459
Comm itted
Unassigned 2,366 ,973 1,9 52 ,757 3,126,037 3,3 40,662 3,502,489
To tal General Fund $ 2,382 ,676 $ 1,959,558 $ 3 ,292,057 $ 3,346 ,986 $ 3,503,948
All other govern mental fund s
Nonspendablc $ 34 ,342 $ 2 1,704 $ 5 .114 ,902 $ 4 ,636,976 $ 513 ,765
Committed 52,453 ,87 1 57,633,409 37,188 ,510 37 ,902,356 42,355 ,129
Assigned 11,464,575 29,98 1,503 28,875,499
Unass igned (805 ,499) (1 ,179,132) (1 ,989,279) (5 1,337) (2,929,481)
Total a ll other governmental fu nds $ 51,682,7 14 $ 56,475,98 1 $ 5 1,878,708 $ 72,469,498 $ 68,81 4,9 12
The Kodiak Island Borough imp lemented GASB 54 in Fiscal Year 2011 . Thai is why the re is only five ye ars of data.
123
KOD IAK ISLAND BO ROUC H
Changes in Fund &Iances ofGovemmentai Funds
Last Ten Fiscal Years
(modified laNai buis of accounting)
Fbl.'lll Yur ,." , ... '007 2('" 2('" 20 10 2 011 2012 20 1J 201 4
Rev cnu u:
Property tlXes and assessments S 9,042,84 3 9,786,201 9,681,815 10,175,295 10,477,347 10,993.175 11,909,806 13,052,598 12,936,796 13,656,771
Tran$ient accommodations 1l1li: 20,886 47 ,645 68,367 79,182 88,338 36,003 96,384 87,400 96,640 75,]42
Intergovernmental :
Slate $OUrces 2,169,303 3,363,491 4,012,647 4,42M72 5,966,803 10,6]0,23 1 7,029,684 5,313,092 7,929,017 12,933,158
Feder al sources 3,853,343 1,766,926 1,417,403 2,553,990 3,122,316 2,338,468 2,149,205 1,940,376 1,659,372 ],933,672
Severance taxes 1,005,539 1,186,908 1,316,689 1,436,2]0 1,311,138 1,336,075 1,649,275 1,970,265 1,774,700 1,843,819
Licenses, pennilS, fees, and otm local revenues 692,'" 820,286 690,962 658,331 742,527 766,193 719,318 634,697 657,025 101,999
Ot her rev enues 15 ,841 125,040 633,925 353,850 418,741 459,412 720,659 44,304 52,5]6 50,556
Investment eamings 1,71~893 2,803,466 3,75 11609 3,918,008 2,038,915 1225933 70fJ,617 1,857,413 536,903 1,115,466
Total revenues 13,633,693 19,904,963 21,573,917 23,603,3S8 24,216.180 27,815,495 24,981,50S 24,950,145 25,642,969 ~3r5,583
EI.JH'ndltu res:
General government 2,713,633 3,950,927 4,504,052 3,318,544 4,067,024 4,600,601 4,S13,287 4,S48,305 5,307,199 5,449,505
Publicwety 425,506 385,529 460,826 502,491 537,623 447,479 469,280 576,720
Emergency preparedness 23,521 6,098 7,884 5,713 12,488 8,011 lI,705 18,923 18,342 9,987
Community an d economic deve lopment 509,680 784,002 786,614 923,203 908,501 1,034,686 1,211,189 1,195,23 7 1,070,991 964,317
Health and sanitation department 329,738 363,520 373,132 387,053 333,747 311,321 392,011 391,996 290,800 326,700
Education. culture, and recreation 185,993 161,633 158,161 183 ,741 248,m 192,182 85,690 64,239 84,213 95,625
Park$ and recrea!ion 13 ,625 5,825 21,100 37,795
MaintCfllnce IIIld operations 698,119
Scrvice district maintenance )47,934 336,385 498,53 9 374,320 398,219 543,897 593,388 705,665 479,264 631,572
Primary and secondary educa!ion 7,973,035 8,430,840 8,387,440 9,123,412 9,956 ,618 9,980,350 10,127,350 10,337,349 10,442,350 10,845,220
Fern Fu!1eT-tru~t 22,547
Ca pitlll outlay:
Schools 68,109 464,142 1.436,639 7,029,628 14,851,064 7,)59,932 1,881 ,069 5,255,037 5,486,672 34,872,235
Gencrlll 2,972,174 332,398 373,038 837,]S9 1,271,106 4,319,438 4,839,652 562,007 2,Q41,674 1,521,996
Debt service:
Pri ncipal 1,784,859 1,814 ,553 2,100,)61 2,205,441 2,495,056 2.685,606 2,750,690 2,780,776 2,966,441 3,645,950
Interest 984,766 1,584 ,763 1,336,349 1,263,176 1,578,408 1,356,872 1,292,645 2,695,657 1,254,225 2,109,406
Other charges -bond iS$Uance costs 43,661 68 635 40,689 100,149 20,809 89,835
TOiaI expenditures 19083275 18,229,26 1 19,9622Q9 26,586,955 36662,263 32955,387 28,595,613 29,409,194 29953,420 6 1,176,923
Excess of revenues over (under) expenditures, (449,582) 1,675,702 1,611,7ot! (2,933,567) (12,446,083) (5 ,139,892) (3,614,105) (4,459,Q49) (4,310,451) (28,861,340)
O th er FInancing Sources (VI ~'):
Proceeds from sales of bonds 20,350,000 8,000,000 8,049,2)) 21,595,000 22,660,000
Bond premium 121,590 3,424,819 2,427,432
Refunding bonds iS$Ued 6,740,000 13,578,039
Payment to refunded bond escrow ag~m (6,S65,467) (12,180,000)
Proceeds from sale ofassets 9,564
Land sale proceeds 22,738 177,164 47,087 19,458 30,561 138,867 15,021 10,735 6,787 356,284
Transfers in 1,800,2 12 1,751,182 2,626,853 2,966,610 6,144,30 1 3,2 11 ,195 3,782,289 951,652 6,212,885 992,365
Transfers ou ! {I,629,6 10} (1,503,9021 p ,464,2 101 {2,839,5601 16,909 791) p,291,195) p,8622892 (1 ,03 7,652) (6292,885) (1,072,3651
Total other linancing sourccs(uSC!) 20,664,930 424.444 209,730 8,146,508 1860,3961 53,867 7,984 254 l,328,774 24,956,170 25,)63,716
Net change in fund balances 20,215.348 2,100,146 l t821.438 5,162,94 1 (13 306,479) (5,OSI,025) 4,370,149 (3,130,275) 20,645,7 19 (3,497.624)
Debt service as a pe~age of noncapital expenditures 15,01 % 19,99 "4 19,20 % 19.45 % 20,91 ~o 19 .41 % 1$,53 % 27.22 ~. 17.62 % 22 ,51 %
The Kodiak Island Borough im plemented GAS B 34 in Fiscal Year 2004,
12.
KODIAK ISLAND BORO UGH
Genera l Reve nu es by Source (a)
La st Te n Fisca l Years
Licenses, Inter-
F iscal Permits Governmental Investment Ope rnting M iscellaneous
Year Taxes and Fees Revenue Income T ra ns fer s Rev enue Total
2005 9,378,8 16 161 ,62 1 1,925,405 265,392 11 ,731 ,234
2006 10 ,257,023 171 ,962 2 ,369,185 469,913 13,268,083
2007 10 ,218 ,016 78,720 3,325 ,899 399,149 82 ,604 14,104,388
2008 10,792,741 100 ,256 3,276,741 544,926 14 ,7 14 ,664
2009 10 ,86 4,441 65 ,417 4,461 ,624 292 ,825 131,944 15 ,8 16,25 1
20 10 11 ,2 19 ,182 71 ,3 19 4 ,123 ,507 178 ,567 38,352 15,630,927
20 11 12 ,412 ,832 72 ,394 3,642 ,009 (2 1,628) 537,235 16,642,8 42
20 12 2 ,29 1,625 65,42 1 4,425 ,447 28 1,792 16 ,177 7,080,462
2013 2,035 ,97 1 66,476 4,787,308 39,078 29,335 30,733 6,988,901
2014 2,051,794 82 ,713 4,605,916 23 ,804 14,328 6,778 ,555
(a) Includ es Gene ra l Fund o nly.
Source: Borough ge nera l ledger.
125
KODIAK ISLAND BOROUG H
Direct and O ... ttlapp ing Property Ta.~ Rates and
Contrib uti o ns to the School Di strict
(per $1 ,000 of Assessed Value)
Last Ten Fisc al Years'
Dirett
R a t e Ove rla(!(!ing Rates
Woodland" Trinity" Mission "
Fiscal A,~ Is land! Lake Fire Areas"
Year Borough Edutation Re newa l City' Street Street Tide ROIHJ Service! Areas' Fire
Ended Basic Support De bt .n' or Lighting Lighting Gate l\fonllShka Service HIIY View \Vomen~ ProtNtion \Vom en J
June 30, Rate Fund Service Rel!lucment Kodia k Arel A rea Area Ha! Di s trict I Road On A rea No, I ~ Airport
2005 10 .25 2.00 0.50 1.00 1.50 1.00 1.00 2.00 1.50 1.25 1.25
2006 11.00 2.00 0.50 1.00 2.50 1.25 1.00 2.00 1.50 1.25 1.25
2007 10 .50 2.00 0.5 0 1.00 2.30 1.2 5 1.00 2.00 1.50 1.2 5 1.23
2008 10.30 2.00 0 .50 1.00 2.30 1.23 1.00 2.00 1.5 0 1.2 3 1.25
2009 10 .30 2.00 0.2S O.SO 1.00 2.30 1.50 1.00 2.00 1.3 0 1.23 1.2S
2010 10.50 2.00 0.25 0.50 1.00 2.30 1.50 1.00 2.00 1.50 1.23 1.25
20 11 10 .30 2.00 0.25 O.SO 1.00 2.30 1.50 1.00 2.30 LSO 1.25 1.2 5
20 12 0.03 9.09 1.53 0.08 2.00 0.25 0.50 1.00 2.5 0 1.3 0 1.00 2.50 1.50 1.25 1.2 5
2013 0.03 9.03 1.6 1 0.08 2.00 0 .25 0.50 1.00 2.50 0.5 0 1.13 2.50 1.50 1.2 5 1.25
2014 0.03 8.75 1.8 1 0.16 2.00 0.25 0.5 0 1.00 2.50 1.50 1.50 2.50 1.30 1.25 1.25
Note: Th e maximum mill rate allowed by State code is 30 mill s
Overlappin g rates are those of local governments that app ly 10 property owners within th e City of Kodiak.
2 Overlapping rale s are those wh ic h apply 10 property owners located within special taxing di stricts in the borough. Th ey do nOI apply to every pr operty owne r in the Boro ugh.
127
Fiscal Year Taxes Levied
Ended for the
June 30, Fiscal Year
2005 $ 8,756,263
2006 9,733 ,253
2007 9,298,329
2008 9,979,775
2009 10,231 ,461
2010 10,879,276
20 11 11 ,536,75 8
2012 13,255,665
2013 13 ,581 ,524
2014 14 ,424,260
Source : Borough general ledger.
KODIAK ISLAND BOROUGH
Property Tax Levies and Collections
Las t Ten Fisca l Years
Collected within the
Fiscal Year of t h e Lev):: Collectio n s
Percentage in S u bsequent
Amount of Levy Years
8,602,243 98.2 153 ,837
9,320,203 95.8 412,332
9,169,456 98 .6 126 ,255
9,615,784 96.4 361 ,432
10,201,209 99.7 24,891
10 ,4 87,467 96.4 383 ,320
11 ,499,457 99.7 38 ,109
13,038,077 98.4 273,899
13,477 ,005 99.2 113 ,2 96
14,250,305 98.8
128
Total Collections to Date
Percentage
Amount of Levy
8,756,080 100 .0
9,732,535 100.0
9,295,711 100 .0
9,977 ,216 100 .0
10 ,229 ,858 100.0
10 ,872,433 99.9
11 ,537 ,566 100 .0
13,31 1,976 100.4
13 ,590,30 1 100 .1
14,250,305 98.8
KODIAK ISLANO BORO UGH
Principal Propeny Ta x Payers
Current Year and Ten Years Ago
2014 2004
PC'rcentagC' Puunta ge
Taxable o(To(al Borough Taxable or Tota l Borough
Asstssed Assrssed Ass essrd Assessed
Taxj!a vtr Value Rank Va lue Va lue Rank Va lu e
Ocean Beauty Seafoo ds $ 25,59 1,900 2.2% $ 9,824 ,538 3 1.3 %
Trident Seafood s Corp 2 1,075,400 2 1.8% 1.4 %
Int'l Seafoods of Alas ka 16,4 59 ,000 3 1.4 % 9,837,184 4 1.3%
We stward Se afood s In c 14 ,762 ,500 4 1.3 %
North Pac ific Seafoods 14 ,113 ,600 5 1.2% 0.9%
Br echan En te rpr ises 11 ,442 ,200 6 1.0% 8,965 ,2 19 5 1.2%
Wa l-Mart/Sa ms Club 9,609 ,000 7 0 .8% 7,93 4,200 6 1.0010
Mill Say Pl aza Assoc LTD 8,95 2,200 8 0.8% 7,138,400 8 0 .9%
Gel Communi cat ion s Corp 7,641 ,000 9 0.7% 1.7%
Horizon Lin es of Alask a LLC (a) 7,3 16,800 10 0 .6 % 7,2 52,942 9 1.7%
Western Alaska Fi sheri es 11 ,487 ,450 1 1.5%
Alaska Communi cation s Sys tems 11 ,771 ,192 2 1.5%
Afognak Native Corporat ion 9,623 ,32 1 7 1.3 %
Kodiak Fi shmea l Company 7,40 9,320 10 0.9%
Total $ 136,963 ,600 11.7% $ 9 1,243 ,766 11.5%
Source : Borough tax reco rd s.
(a) In 2004 company nam e was CSX Line s LLC
129
KODIAK ISLAND BOROUGH
Ratios of N et Bonded Debt
Last Ten Fi scal Years
Net
Total Taxable Net Debt Per
Fiscal Assessed Bonded Pe r Assessed
Year Population Value Debt Capita Value
2005 13,693 (b) 783 ,907 ,45 1 33 ,08 0,509 2,4 16 4 .22%
2006 13,457 (c) 783,907,45 1 31 ,264,429 2,323 3.99%
2007 13,664 (a) 805,681,814 29,163,349 2,134 3.62%
2008 13,954 (a) 835,525,537 34 ,957,269 2,505 4.18%
2009 13 ,860 (a) 870,472,985 32,534,424 2,347 3.74%
2010 13,592 (a) 913,0 14 ,985 29 ,838,432 2,195 3.27%
2011 13 ,870 (a) 988,879,125 35 ,124,21 I 2,532 3.55%
2012 14 ,041 (a) 1,039,223 ,833 33,510,913 2,387 3.22%
2013 13 ,824 (a) 1,085,968,280 55,236,114 3,996 5.09%
2014 • (a) 1,131 ,476,6 1 I 76,227,556 • •
Sources: lnfonnation obtai ned from assessment record s and Borough general ledger except as otherwise no·ted.
(a) lnfonnation obtained fi'om State of Alaska, Department of Community and Regional Affairs,
Certified Population for Revenue Sharing Program.
(b) Infonnation obtained from State of Alaska, Departme nt of Commerce, Commun ity and
E conomic Development, Comunnity Database .
(c) Infonnation obtained from State of Alaska, Department of Labor, Econom ic lnfonnation.
Note: Detail regarding the borough's outstanding debt can be found in the notes to the financial statements.
• lnfonnation not available at report time
130
Kodiak Island Borough:
General obligation bonds
City of Kodiak:
General obligation bonds
Total
KODIAK ISLAND BOROUGH
Computation of Direct and Overlapping Debt
June 30, 2014
Percentage
Net Debt Applicable to this
Outstanding Governmental
(a) Unit (b)
$ 76 ,264,598 100%
7,075,000 100%
$ 83 ,339,598
(a) Gross debt outstanding less applicable amounts in the Debt Service Funds.
Kodiak Island
Borough
Share of
Debt(c)
$ 76,264,598
7,075,000
$ 83,339,598
(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 ofJO 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.
131
Taxable Assessed valu e
Plus exempt p ro perty
Total
200S
$ 783 ,907,451
32 ,49 1,840
$ 8 16 ,399,291
2006
798 ,779 ,3 49
4 5,783 ,490
844 ,562,839
2007
805,681 ,814
49,539,000
855,220,8 14
KODIAK ISLAND BOROUGH
Legal Debt Margin Infoon ation
Last Ten Fi scal Years
2008
835 ,5 25 ,537
50,194,170
885,719,707
2009
870;472 ,985
45,18 8,050
915,66 1,035
The Stale of Alaska does not mandate a debt limit to its muni cipalities an d political subdivisi ons.
Debt capacity is ultim ately d ete rmined by th e voters and the market place.
Source: Boroug h assessme nt records (certified tax roll s).
132
2010
913 ,01 4 ,985
50,452 ,120
963 ,46 7.1 05
2011
98 8,879,125
55 ,543,030
1,0 44,42 2,155
2012
1,039 ,223 ,833
59 .588,100
1,098,8 11 ,9 33
2013
1,085,968 ,080
65 ,600 ,100
1,15 1,568,180
2014
1,131,476 ,6 11
71 ,462 ,869
1,202,939,480
Fiscal
year
2005
2006
2007
2008
2009
20 10
2011
2012
2013
2014
KODIAK ISLAND BOROUGH
Ratio of Annual Debt Service Ex penditures
for General Bonded Debt to Total
General Governmental Expenditures and Transfers
La st Ten Fi scal Years
Total General
Fund
Interest Total debt expenditures
Principal (a) and fees service and transfers
1,780,4 17 983,19 5 2,763 ,612 12,027,7 17
1,814,553 1,583,488 3,398,041 13,054,983
2,100 ,361 1,329 ,456 3,429,817 13 ,337,188
2,205,441 1,255,313 3,460,754 14 ,277,498
2,495,056 1,57 1,295 4 ,066,351 15 ,922,441
2,685,606 1,350,620 4 ,036,226 16 ,372,540
2,750 ,690 1,287,822 4 ,083 ,335 17,065 ,960
2,780,776 2,691 ,426 5,472 ,202 5,747,963
2,966 ,441 1,244,233 4,2 10 ,674 6,933,972
3,645,950 2,107 ,198 5,753,148 6,621 ,593
Ratio of
debt service
to general
expenditures
23.0
26 .0
25.7
24.2
25.5
24.7
23.9
95.2
60.7
86.9
(a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of
term bonds.
Sources: Borough genera l ledger and debt documents .
133
Governmental Activities
General
Fiscal Obligation Notes
Year Bonds Payable
2005 33,080,509 88 ,243
2006 31,264,429 83 ,69 0
2007 29 ,163,349 77,470
2008 34,957,269 72,028
2009 32,534,424 66,505
2010 29,838,432 60,899
2011 35,124,211 55,209
2012 33,510,913 49,433
2013 55,236,114 42,992
2014 76,227,556 37,042
KODIAK ISLAND BOROUGH
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business-type Activities
Revenue Notes
Bonds Payable
1,270,2 10
1,270 ,210
1,636,924
1,768,660
1,86 4,503
1,989 ,995
2,735,778
7,603,249
18 ,8 17 ,32 0 7,346 ,324
18 ,703 ,49 8 10 ,206 ,895
Total
Primary
Government
34,438 ,962
32,618,329
30,877,7 43
36,797,957
34,465,432
3 1,889,326
37,915,198
41,163,595
81,442,750
105 ,174,991
Note: Detail regarding the Borough's outstanding debt can be found in the notes to the financial statements .
* Information not available at report time.
134
Percent of
Personal Per
Income Capita
8.31% 2,5 15
7.36% 2,424
6 .57% 2,260
7.47% 2,637
6.29% 2 ,487
5.52% 2,346
6.13% 2,734
6.25% 2,932
12 .07% 5,891
* •
Fiscal Year 2005
Average Average
Monthly Monthly
E m~lo~ment Ea rnings
Total Indu stries 5,38 1 $ 2,871
Private Ownership 4 ,042 2,757
Total Government 1,3 39 3,2 14
Private Goods -Produ cing 1,659 3,489
Private Service -Providing 2,3 84 2,245
Fiscal Vear 2009
Average Average
Monthly Monthly
Eml!lol:ment Earnings
Total Indu stri es 5,961 $ 3,100
Private Ownership 4,485 2,956
Total Government 1,475 3,53 8
Private Good s-Producing 1,814 3,2 90
Private Service -Providing 2,671 2,730
Fiscal Yea r 2013
Average Average
Monthly Monthly
Em~lo~ment Earnings
Total Indu strie s 6,411 $ 3,459
Private Owner ship 4,928 3,358
Total Government 1,483 3,795
Pri vate Goods -Producin g 2,138 3,704
Pri vate Service -Providing 2,7 90 3,092
KODIAK ISLAND BOROUGH
Average Monthly Emp loyment & Earning s
La st Ten Fiscal Years
F iscal Vear 2006
Average Average
Monthly Monthly
Fiscal Year 2007
Average Average
Monthly Monthly
Em(!I0l:ment Earnings E ml!lo~ment Ear nings
5,553 $ 2,926 5,616 $ 3,060
4,191 2,80 3 4 ,160 2,979
1,36 1 3,306 1,456 3,291
1,69 1 3,382 1,63 1 3,5 55
2,5 00 2,4 12 2,529 2,608
Fiscal Vear 2010 "~iscal Year 2011
Average Average Average Average
Monthly Monthly Monthly Monthly
Eml!lol:ment Earnings Eml!l0l:ment Ear nings
5,961 $ 3,100 6,416 $ 3,362
4,485 2,956 4,898 3,263
1,475 3,538 1,5 18 3,68 1
1,814 3,290 2,11 3 3,619
2,671 2,730 2,785 2,993
Fiscal Year 2014
Average Average
Monthly Monthly
Eml!l0l::ment Ea rnings
6,472 $ 3,575
5,049 3,49 1
1,42 3 3,875
2,2 19 3,83 1
2,830 3,224
136
"~iscal Year 2008
Average Average
Monthly Monthly
Eml!)0l:ment Earnings
5,80 3 $ 3,111
4 ,3 40 3,006
1,48 3 3,4 24
1,778 3,484
2,562 3,006
Fisca l Year 2012
Average Average
Monthly Monthly
Em(!loxment Earnings
6,461 $ 3,4 88
4,952 3,4 12
1,501 3,742
2,193 3,801
2,760 3,101
KODIAK ISLAND BOROUGH
Miscellaneou s Stat istical Data
L1St Ten Fisca l Years
2005 2006 2007 2008 2009 2010 201l 2012 2013 ---1!Ui
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 st re et 25 .6 25.6 25.6 25.6 25.6 25.6 25.6 26.1 26 .1 26.1
Building permits ;
Penn it s iss ued 205 222 190 190 192 208 204 167 219 155
Value of buildings (thou sands) 12 ,689 11 ,928 12 ,058 33 ,14 5 15,007 16,445 30,832 10 ,171 91 ,619 36,652
Fire Protec tion:
Number of fire sta tion s 2 2 2 2 2 2 2 2 2 2
Number of em pl oyees
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 ac res) 223 223 223 223 223 223 224 224 224 224
Facilitie s:
Numbe r of playgrounds 15 15 15 15 15 15 16 16 16 16
Number of swim min g pools
Public Educati on:
Number of schoo ls:
Kodiak Area Elementary 4 4 4 4 4 4 4 4 4 4
Kod iak Area Middle School I I
Kodiak Area High Sc hool I I I I I I I I
Village Sc hoo ls (a) 7 8 7 6 7 7 8 8 8 7
Number of supp ort personnel (b) 14 6 151 202 205 217 217 215 2 15 193 181
Nu mber of teachers (e) 2 17 206 209 218 203 2 18 20 1 20 1 207 162
Number of stu de nt s 2,678 2,718 2,636 2,671 2 ,598 2,567 2 ,543 2,543 2,5 13 2,468
Number of Municipal Emp lo yees 41 4 1 43 43 43 43 43 45 45 48
Electi ons:
Numbe r of regis tered voters 9 ,2 82 9 ,300 9,417 9 ,587 9,599 9 ,649 9,619 9,479 9,585 9 ,100
Nu mber voting in last e le cti on 2,18 1 2 ,200 2,407 2,105 2,477 2,477 2,311 2,139 1,250 1,968
Percent of registe red voters 23% 24% 26% 22% 26% 26% 24% 23% 13% 22%
So urce s: Borough Departments, Kodiak Island Borough School District and City of Kodiak
(a) The majority of ViI!age Schools are grades K-12 . (cl School district personnel figures inClude staffing lro m the General Fund and Grants .
(b) All non-teaching employees .
137
Function:
General Gove rnment
Communit y and Economic Developm ent
Mun ic ip al Solid Waste Coll ec ti on and Dispo sa l
Ko di ak Fi sheries Resea rch Cent er
Total
So urce : Borou gh Fi nan ce Departm ent
KODIAK ISLAND BOROUGH
Fu ll -T im e Equi valent Bo rough Empl oyees by Fun ctio nlProgra m
Last Ten Fi sca l Year s
Full -time Equivalent Employees
as of June 30:
2005 2006 200 7 2008 200 9 2010 2011
22 23 24 27 31 29 29
6 6 5 5 5 5 5
8 7 7 7 7 7 7
2 2 2 2 2 2 2 ---38 38 ~ 41 45 43 43
139
2012 2013 2014
30 30 33
6 6 5
7 7 8
2 2 2 ---45 45 48
2005 2006
Function
General Government
Elections
Number of registered voters 9,282 9,300
Number voting in last elect ion 2,18 1 2,200
Percent of registered voters 23% 24%
Public Safety
Number of flTe stat ions 2 2
Number of employees
Community and economic development
Zoning comp lian ce pennits iss ued 187 150
Junk cars removed 125 100
Primary and secondary education
Number of students 2,678 2,7 18
Number of General Fund certified staff 217 206
Number of General Fund classified staff 146 151
So lid waste disposal
Tota1 so lid waste disposal in ton s 17 ,253 16,290
Baled waste in tons 11 ,557 11 ,444
Scrap metal in ton s 1,162 416
Asbestos, cubic yards 300 73
Source: Borough Finance Department
l
KODIAK ISLA ND BOROUGH
Operating Indicators by Function
Last Ten Fi sca l Years
2007 2008
9,417 9,587
2,407 2,105
26% 22%
2 2
2 12 2 14
58 261
2,636 2,67 1
209 218
143 137
2009
9,599
2,477
26 %
2
203
83
2,598
225
135
16,997 14 ,730 14 ,429
10,83 1 10,843 10,212
282 360 205
166 112 324
140
2010 2011 2012 2013 2014
9,649 9,619 9,479 9,585 9,100
2,477 2,3 11 2,139 1,250 1,968
26% 24% 23% 13% 22%
2 2 2 2 2
245 149 11 3 160 III
89 218 27 22 28
2,567 2,543 2 ,5 17 2,513 2,468
224 217 211 207 186
135 16 2 166 193 161
14 ,580 14 ,896 16 ,558 14,688 11 ,826
10 ,527 10 ,846 10,153 11 ,535 10 ,005
282 260 147 251 172
218 230 116 399 390
Function program
GOVERNMENTAL ACTIVITIES
Number of bui ldings (teachery housing, schools and office buildings)
Veh icles
Roads
Streets (miles)
Land area -square miles
Police: none
KODIAK ISLAND BOROUGH
Capital Asset Statistic s by FunctionlPro gram
Last Ten Fi sc al Years
200S 2006 2007 2008
19 20 19 18
8 8 9 10
25.6 25.6 25.6 25 .6
7,130 7,130 7,130 7,130
(provided by the City of Kodiak within th e city limits and by th e State of Alaska outs ide th e tity boundaries)
Fire and Emergency Services
Number of fire s tations 2 2 2 2
Number of Emergency respon se vehicles 10 " " 12
Eme rgency Ts unami Shelters
BUSINESS-TYPE ACTIVITES
Municipal Solid Waste
Number of Baler Facilities (Landfills)
Community H ealth & Public Services
Mental He alth Facilities
Hospital
Culture Parks and Recreation
Parks (number of acres) 223 223 223 223
Facilities:
Number of Swimmin g Pool s I
Number of playgrounds 15 15 15 15
Kodiak Island Research Facilities (marine research) I
Donn facility (6 apartments)
Sources : Supplied by Kodiak Island Borough Departme nt Heads
Note: No capital asset indicators are available for the library function
A description of the Kodiak Is land Borough's Capitalization and Depreciation policy
is included in the Notes To The Basic Financial Statements
141
2009 2010 2011 2012 2013 2014
18 18 18 19 19 19
13 13 15 15 15 14
25 .6 25.6 25 .6 26 .1 26 .1 26.1
7,130 7 ,130 7 ,130 7,130 7,130 7,130
2 2 2 2 2 2
" 8 15 13 13 12
I
22 3 223 224 224 22 4 224
I I I
15 15 16 16 16 16
.1
I
· j
· J
· J
· J
, J
KODIAK ISLAND BOROUGH
Federal and State Single Audit Reports
and Supplementary Information
Year Ended June 30, 2014
Altman, Roger~'ED C.....:...9Ga I PUBLIC c;-. ACCOUNTANTS
KODIAK ISLAND BOROUGH
Federal and State Single Audit Reports
and Supplementary Information
Year Ended June 30, 2014
KODIAK ISLAND BOROUGH
Table of Contents
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
Government with Auditing Standards
Report and Schedules Required Under OMB Circular A-133
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 OMS Circular A-133
Schedule of Expenditures of Federal Awards
Notes to the SChedule of Expenditures of Federal Awards
Federal Schedule of Findings and Questioned Costs
Corrective Action Plan
State Single Audit Report and Schedule
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
1-2
3-6
7
8
9-11
12
for State Single Audits 13-15
Schedule of State Financial Assistance 16-17
Notes to the Schedule of State Financial Assistance 18
State Schedule of Findings and Questioned Costs 19
(This page was left blank intentionally)
REPORT REQUIRED UNDER
GOVERNMENT AUDITING STANDARDS
Altman, Roger~lEo c....:..:JGa I PUBLIC eJ -. ACCOUNTAN TS
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financia l Statements Performed in Acco rdance with Government ,
Auditing Standards
Independent Auditor's Report
The Honorable Mayor
and Members of the Assembly
Kodiak Island Borough
Kodiak , Alaska
Ladies and Gentlemen :
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 , 2014 , 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 31 ,2014 .
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) to determine the 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 .
1
425 G Street Suite 500 Anchorage, Alaska 99501 Phone 907-274-2992 Fax 907-274-2993
Offices in Juneau and Soldotna A Professional Corporation
The Honorable Mayor and
Members of the Assembly
Kodiak Island Borough
Our consideration of internal control was for the limited purpose described in the preceding
paragraph and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies . Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses .
However, material weaknesses may exist that have not been identified .
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 determination of financial statement amounts . 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
the entity'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 .
~/~/&J.
Anchorage , Alaska
December 31 ,2014
2
REPORT AND SCHEDULES REQUIRED
UNDER OMS CIRCULAR A-133
Altman, Roger~'ED
c.3 Ga I PUBLIC ~ • ACCOUNTANTS
Report on Compliance For Each Major Feder al Proqram; Report on Internal Control Over
Compliance; and Report o n the Schedule of Expenditures of Fede ral Awards Req uired by
OMS Circular A·133
Indepe nde nt Auditor's Report
The Honorable Mayor
and Members of the Assembly
Kodiak Island Borough
Kodiak, Alaska
Repo rt o n Compliance for Each Major Federal Program
We have audited Kodiak Island Borough 's compliance with the types of compliance requirements
described in the OMB Circular A·133 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, 2014. 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 its component unit,
Kodiak Island Borough School District, which received $5,493 ,151 in federal awards which are
not included in the Schedule of Expenditures of Federal Awards for the year ended June 30,
2014 . Our audit, described below , did not include the operations of Kodiak Island Borough
School District because it was subjected to a separate audit performed in accordance with OMB
Circular A·133.
Manageme nt's Responsibility
Management is responsible for compliance with the requirements of laws, regulations , contracts,
and grants applicable to its federal programs .
3
425 G Street Suite 500 Anchorage, Alaska 99501 Phone 907-274-2992 Fax 907-274-2993
Offices in Juneau and Soldotna A Professional Corporation
The Honorable Mayor and
Members of the Assembly
Kodiak Island Borough
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of Kodiak Island Borough's
major federal programs based on our audit of the types of compliance requirements referred to
above . We conducted our audit of compliance in accordance with auditing standards generally
accepted in the United States of America ; the standards applicable to financial audits contained in
Government Auditing Standards , issued by the Comptroller General of the United States ; and
OMB Circular A-133 , Audits of States, Local Governments, and Non-Profit Organizations. Those
standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program
occurred. An audit includes examining , on a test basis , evidence about Kodiak Island Borough 's
compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each
major federal program . However, our audit does not provide a legal determination of Kodiak
Island Borough's compliance .
Opin ion on Each Major Federal Program
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 , 2014 .
Ot her Matters
The results of our auditing procedures disclosed an instance of noncompliance, which is required
to be reported in accordance with OMB Circular A-133 and which is described in the
accompanying Federal Schedule of Findings and Questioned Costs as Finding 2014-01 . Our
opinion on each major federal program is not modified with respect to this matter.
Kodiak Island Borough 's response to the noncompliance finding identified in our audit is
described in the accompanying Federal Schedule of Findings and Questioned Costs and
Corrective Action Plan . Kodiak Island Borough 's response was not subjected to the auditing
procedures applied in the audit of compliance and , accordingly , we express no opinion on the
response .
4
The Honorable Mayor and
Members of the Assembly
Kodiak Island Borough
Report on Internal Control Over Compliance
Management of Kodiak Island Borough is responsible for establishing and maintaining effective
internal control over compliance with the types of compliance requirements referred to above . In
planning and performing our audit of compliance , we considered Kodiak Island Borough's internal
control over compliance with the types of requirements that could have a direct and material
effect on each major federal program to determine the auditing procedures that are appropriate in
the circumstances for the purpose of expressing an opinion on compliance for each major federal
program and to test and report on internal control over compliance in accordance with OMB
Circular A-133 , but not for the purpose of expressing an opinion on the effectiveness of internal
control over compliance . Accordingly , we do not express an opinion on the effectiveness of
Kodiak Island Borough 's 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 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
first paragraph of this section and was not designed to identify all deficiencies in internal control
over compliance that might be material weaknesses or significant deficiencies, and therefore ,
material weaknesses or significant deficiencies may exist that were not identified. We did not
identify any deficiencies in internal control over compliance that we consider to be material
weaknesses . However, we identified a certain deficiency in internal control over compliance , as
described in the accompanying Federal Schedule of Findings and Questioned Costs , as Finding
2014-001 that we consider to be a significant deficiency .
Kodiak Island Borough's response to the internal control over compliance finding identified in our
audit is described in the accompanying Federal Schedule of Findings and Questioned Costs and
Corrective Action Plan . Kodiak Island Borough's response was not subjected to the auditing
procedures applied in ·the audit of compliance and , accordingly , we express no opinion on the
response .
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 OMB Circular A-133 . Accordingly , this report is not suitable for any other
purpose.
5
The Honorable Mayor and
Members of the Assembl y
Kodia k Island Borough
Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133
We have audited the financial statements of Kodiak Island Borough as of and for the year ended
June 30 , 2014, and have issued our report thereon dated December 31 , 2014 , which contained
an unmodified opinion on those financial statements . Our audit was conducted for the purpose of
forming opinions on the financial statements as a whole. The accompanying Schedule of
Expenditures of Federal Awards is presented for purposes of additional analysis as required by
OMB Circular A-133 and is 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 basic financial statements . The information has
been subjected to the auditing procedures applied in the audit of the financial statements and
certa in 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
Ex penditures of Federal Awards is fairly stated in all material respects in relation to the financial
statements as a whole.
Anchorage , Alaska
December 31 ,2014
6
KODIAK ISLAND BOR O UGH
Schedu le of Expenditures of Fed eral Awards
Year Ended June 30 , 2014
Federal
CFDA
Number
U.S . Department of Homeland Security·
Passed through the State of Alaska ,
Department of Military and Veteran Affair s:
2012 State Homeland Se curity Program 97.067
Bioplug Sergeant Creek 97 .036
Panamaroff Creek Culverts 97.036
Total U.S. Department of Homeland Security
Denali Comission .
Direct Programs -
Anton larsen Dock Replacement 90 .100
U.S . Department of Housing and Urban Development
Oirect Program -
FY 2009 EDI Special Project 14 .251
Passed through Kodiak Island Housing Authority -
Payments in Ueu of Ta xes 14 .867
Passed through Alaska Housing Finance Corporation·
Payment in lieu of Taxes R881
Total US Departmen t of Housing
and Uman Development
U.S . Department of the Interior:
Direct Programs :
Payments in lieu of Taxes (BlM) 15.226
Refuge Revenue Sharing 15.659
Passed through Kodiak Soli and Water
Conservation District·
Lake Omin Fish Paggage Project 15.631
Total U.S. Department of the Interior
U.S. Environmental Protection Agency -
Passed through the Stale of Alaska ,
Department of Environmental Conservation :
Alaska Clean Water Revolving Loan Funds 66.458
Alaska Clean Water Revolving loan Funds 66.458
Total U.S. Environomental Protection Agency
Total federal financ ial assistance
Reconciliation to federal source revenues in the Statement of Revenues ,
Expenditures and Changes in Fund Balances :
Total Federal financial assistance
Clean Water Rev olving Loan Funds are not treated as revenues in
the financial statements ; however, are required to be presented
on this schedule in accordance with OMS Circular A-133. The
loans are recorded in the Business-type activities and Enterprise funds .
See accompanying notes to Schedule of Expenditures of Federal Awards .
7
Pass -through
Grantor's
Award Number
EMW-2012-SS-0012 7
DR-1865-AK
FEMA 1865-DR-AK
01402-01
B-09-SP-AK-0288
None
None
None
None
F13AC00878
Loan # 505041
Loan # 505061
Program
or Award Federal
Amount E x ~ndjtures
$ 31 ,651 31,651
30,8 51 80
22 ,998 1,276
85,500 33,007
80,000 51,283
475,000 101,617
23 ,529 23,529
15,6 54 15 ,654
514 ,183 140,800
1,501 ,969 1,501 ,969
205 ,518 205,518
1 ,707 ,487 1 ,707,487
40 ,000 1 ,095
1,747,487 1,708,582
11 ,787,792 1,955,880
1 ,500,000 375,468
13 ,287 ,792 2 ,331 ,348
$ 15,714,962 4,265,020
$ 4 ,265 ,020
(2 ,331 ,348)
$ ==1 .. ,9",3,,3,g,6!,!.72 ..
(This page was left blan k intentionally)
KODIAK ISLAND BOROUGH
Notes to the Schedule of Ex penditures of Federal Awards
Year Ended June 30 , 2014
(1) Basis of Accounting
The schedule of expenditures of federal awards includes the federal grant activity of Kodiak Island
Borough and is presented on the modified accrual basis of accounting . The information in this
schedule is presented in accordance with the requirements of OMB Circular A-133 , Audits of
States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in
this schedule may differ from amounts presented in , or used in the preparation of, the basic
financial statements .
(2) 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
the Kodiak Island Borough as follows :
The Kodiak Island Borough School District
The Kodiak Island Borough 's basic financial statements include $5,493 ,151 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 14, 2014, were issued for the Kodiak Island Borough School
District.
(3) Pass-Through Funds
The Borough did not pass any federal funds through to subrecipients during the year ended June
30,2014 .
(4) Non-Cash Awards
During the year ended June 30, 2014, the Borough received no federal awards in the form of non-
cash awards .
(5) Retainages Payable
Retainages payable on contracts are not charged to the grants until they are paid to the contractor.
Accordingly, expenditures exclude amounts payable for retainages on contracts .
8
KODIAK ISLAND BOROUGH
Federal Schedule of Finding s and Questioned Costs
Year Ended June 30, 2014
Section 1-Summary of Auditor's Results
Financial Statements
Type of auditor's report issued :
Is a going concern emphasis-of-matter paragraph
included in the audit report?
Internal control over financial reporting :
Significant deficiency(ies) identified?
Material weakness(es) identified?
Noncompliance material to financial statements noted?
Federal Awards
Internal Control over major programs (Section .510 (a)(1»:
Significant deficiency(ies) identified?
Material weakness(es) identified?
Any material noncompliance with provisions of laws,
regulations, contracts, or grant agreements ,
related to a major program (Section .510 (a)(2»?
Type of aU9itor's report issued on compliance
for major programs:
Any audit findings disclosed that are required to
be reported in accordance with Circular A-133,
Section .510(a) (3) or (4)?
Identification of major programs:
Unmodified
Yes _X_ No
Yes _X_ No
Yes _X_ No
Yes _X _ No
----2S.... Yes No
Yes _X_ No
Yes _X_ No
Unmodified
Yes _X_ No
CFDA Number(s)
66.458
14 .251
Name of Federal Program or Cluster
Alaska Clean Water Revolving Loan Funds
EDI Special Project FY2009
Dollar threshold used to distinguish
between Type A and Type B programs :
Auditee qualified as low-risk auditee?
9
$ 300,000
Yes _X_ No
KODIAK ISLAND BOROUGH
Federal Schedule of Findings and Questioned Costs , Continued
Section 11-Financial Statement Findings
The Kodiak Island Borough did not have any findings that related to the financial statements .
Section 11/-Federal Award Findings and Questioned Costs
Finding 2014-001
Significant Deficiencyl
Noncompliance
Fede r al Agency:
Program:
Award Number/CFDA No.:
Award Year
Condition:
Cr iteria:
Context:
Ca use:
Effect:
Lack of Interna l Contr ol over Activiti es Allowed or Unallowed and
Allowable Costs I Cost Principles
U.S. Department of Housi ng and Urban Development
FY 2009 EDI Special Project
B-09 -SP-AK-0288; CFDA No. 14.251
2009
During our audit work over allowable costs , we noted that $6 ,038 of
salaries and administrative overhead were charged to the grant.
Provisions of the grant agreement state that " ... no unobligated funds for
EDI grants may be used for any purpose except acquisition , planning ,
design , purchase of equipment, revitalization , development or
construction ."
The number of transactions were relatively few compared to the program
total . After the error was discovered the costs were moved to the
General Fund and are not reported in the program for financial statement
purposes in FY 2014 . The Borough has set aside funds equivalent to the
amount of unallowed costs already reimbursed and earmarked these
funds for future allowable grant expenditures in FY 2015 .
Lack of internal control over allowable costs .
Unallowed or questioned costs may lead to the granting agency
requesting repayment of funds disbursed , withdrawal of the grant
entirely , or a reduction in future funding from the agency .
10
KODIAK ISLAND BOROUGH
Federal Schedule of Findings and Questioned Costs , Continued
Questioned Costs:
Recommendation:
Management's Response :
None . The unallowed costs were moved to the General Fund once the
error was discovered .
We recommend the Borough finance personnel carefully review specific
grant budgets and requirements to ensure unallowed costs are not
charged to federal grant programs.
Management concurs with the finding . See corrective action plan .
Section IV -Summary of Prior Audit Findings
Financial Statement Fi ndings
Finding 2013-001
Significant Deficiency
Condition:
Status:
Finding 2013-002
Material Weakness
Condition:
Status:
Internal Control over Leases
During our audit work over lease revenue associated with the Kodiak
Fisheries Research Center (KFRC), we noted that the Borough does not
have adequate internal control procedures in place to monitor leases .
This finding has been resolved .
Internal Control over Construction Work In Progress
During our review of capital assets it was noted that the balance in
construction work in progress (WIP) was overstated as it included
construction projects that had been completed in FY12 .
This finding has been resolved.
11
Finding 2014-001
Name of Contact Person:
Corrective Action:
Proposal Completion Date:
KODIAK ISLAND BOROUGH , ALASKA
Corrective Action Plan
Year Ended June 30 , 2014
Internal Control ove r Activities Allowed or Unallowed and
Allowable Costs I Cost Principles
Ka~eton Short, Finance Director
We will ensure that all grant award documents are reviewed to
ensure that the Borough is aware of allowable costs under each
award. We will also perform budget to actual checks when
submitting financial reports to ensure that budget line items have not
been exceeded .
Immediately.
12
(Th is page was left blank intentionally)
STATE SINGLE AUDIT REPORT AND SCHEDULE
Altman, Rog~[~'ED C..3Ga I PUBLIC QJ • ACCOUNTANTS
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
We have audited Kodiak Island Borough's compliance with the types of compliance requirements
described in the State of Alaska Audit Guide and Compliance Supplement for State Single Audits
that could have a direct and material effect on each of Kodiak Island Borough 's major state
programs for the year ended June 30, 2014 . 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 its component unit,
Kodiak Island Borough School District, which received $36,993,884 in state awards which are not
included in the Schedule of State Financial Assistance during the year ended June 30,2014. Our
audit, described below, 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
Single Audit Guide and Compliance Supplement for State Single Audits.
Management's Responsibility
Management is responsible for compliance with the requirements of laws , regulations ,
contracts , and grants applicable to its state programs .
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of Kodiak Island Borough's
major state programs based on our audit of the types of compliance requirements referred to
above .
425 G Stree t Suite 500 Anchorage, Alaska 99501 Phone 907-274-2992 Fax 907-274-2993
Offices in Juneau and Soldotna 13 A Professional Corporation
The Honorable Mayor and
Members of the Assembly
Kodiak Island Borough
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the Unite Slates; and the
State of Alaska Audit Guide and Compliance Supplement for State Single Audits. Those
standards and the State of Alaska Audit Guide and Compliance Supplement for State Single
Audits require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a
direct and material effect on a major state program occurred. An audit includes examining, on a
test basis, evidence about Kodiak Island Borough's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each
major state program . However our audit does not provide a legal determination of Kodiak Island
Borough's compliance .
Opinion on Each Major State Program
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 , 2014.
Report on In terna l Co ntrol over Compliance
Management of Kodiak Island Borough is responsible for establishing and maintaining effective
internal control over compliance with the types of compliance requirements referred to above . In
planning and performing our audit of compliance, we considered Kodiak Island Borough's internal
control over compliance with the types of requirements that could have a direct and material
effect on each major state program to determine the auditing procedures that are appropriate in
the circumstances for the purpose of expressing an opinion on compliance for each major state
program and to test and report on internal control over compliance in accordance with the State
of Alaska Audit Guide and Compliance Supplement far State Single Audits, but not for the
purpose of expressing an opinion on the effectiveness of internal control over compliance .
Accordingly, we do not express an opinion on the effectiveness of Kodiak Island Borough's
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 slate 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 .
14
The Honorable Mayor and
Members of the Assembly
Kodiak Island Borough
Our consideration of internal control over compliance was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control
over compliance that might be material weaknesses or significant deficiencies. We did not
identify any deficiencies in internal control over compliance that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
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 Audit Guide and Compliance Supplement for State Single
Audits. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of State Financial Assistance required by the State of Alaska Audit
Guide and Compliance Supplement for State Single Audit
We have audited the financial statements of Kodiak Island Borough as of and for the year ended
June 30, 2014, and have issued our report thereon dated December 31 , 2014, which contained
an unmodified opinion on those financial statements. Our audit was conducted for the purpose of
forming opinions on the financial statements as a whole. The accompanying Schedule of State
Financial Assistance is presented for purposes of additional analysis as required by the State of
Alaska Audit Guide and Compliance Supplement for State Single Audits and is 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 is fairly stated in all material
respects in relation to the financial statements as a whole.
Anchorage, Alaska
December 31,2014
15
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KODIAK ISLAND BOROUGH
Schedule of State Finan cia l Assistance
Year ended June 30 , 2014
Program
Program or Award Siale
Number Amount Exeenditures
Department of Commerce , Community and
Economic Development·
Dire ct Programs :
Community Re venue Sharing None $ 731 ,314 731 ,314
Anton Larsen Dock 12·DC·388 2 ,000,000 7,830
Emergency School Generators 12·DC·625 2,182,000 600,688
Womens Bay Tsunam i Emergency Shelter 12·DC·390 1,025 ,000 7,317
Womens Bay Playground Upgrades 13·DC·134 100,000 7,130
Tsunami Sirens , Upgrades , Replacements , Additions 07·DC·329 100,000 4,030
Chiniak Warning Siren 12·DM·109 45,000 475
Landfill Expansion Grant 13·DC·547 3,000,000 794,038
Long Term Care Facility Planning and Design 12·DC·389 1,275,000 215,000
landfill Leachate Treatment Plant 7 Related Phase III 14·DC-{)74 4 ,529,000 4,529,000
Fire Protection Area No .1 Emergency Generator 13·DM·185 40,000 20 ,114
Kodiak High School Vocation and Physical Educati on Facilities 13·DC-604 7,000 ,000 5 ,816 ,726
Total Department of Community and
Economic Development 22 ,027,314 12,733,662
Department of Administration -
Direct Programs :
HB 65 PERS Supplement on·behalf paymenl None 463,333 463,333
Motor Vehicle Tax None 253 ,230 253,230
716,563 716 ,563
Department of Education and Early Development -
Direct Programs -
Debt Retirement Program None 3 ,347,5 17 3 ,347 ,517
Department of Revenue :
Direct Programs:
Fisheries Business Tax None 1,546 ,308 1,546,308
Commercial Passenger Vessel Tax None 4,600 4 ,600
Fisheries Resource Landing Tax None 97,679 97 ,679
Telephone/Electric Tax None 15,792 15 ,792
Liquor license None 220 220
Tota l Department of Revenue 1,664,599 1,664,599
Department of Environmental Conservation -
Direct Programs :
Clean Water Revolving Loan Funds 505041 None 2 ,675,756 441 ,902
Clean Water Revolving loan Funds 505061 None 1,500,000 374,532
Total Department of Environmental Conservation 4,175,756 816,434
(continued)
16
Department of Military and Ve terans Affairs :
Direct Programs :
Local Emergen cy Planning Committee
Panamaroff Creek Culverts
KODIAK ISLAND BOROUGH
Schedule of State Financial Assistance , continued
Program
Number
14LEPC-GR35602 $
FEMA-1865-DR-AK
Total Department of Military and Veteran Affairs
Program
or Award
Amount
13,430
Total State of Alaska $ 31 ,952 ,845
Reconciliation to State of Alaska revenues in the Statement of Revenues,
Expenditures, and Changes in Fund Balances:
Total State financial assistance
State awards included in this schedule that are recorded
in the Business-type activities :
landfill Expansion Grant
Long Term Care Facility Planning and Design
Landfill Leachate Treatment Plant 7 Related Phase III
Clea n Water Revolving Loan Funds received in the current year are
not treated as revenue in the financial sta tements; however,
they are required t o be presented on this schedule by the
State of Alaska Aud it Guide and Compliance Supplement
for State Single Audits. The loan is recorded in the Business·type
activities and Ente rprise Funds .
See accompanying notes to the Schedule of State Financial Assistance.
17
13-DC-547
12-DC-389
14 -DC-074
$
$
19,292 ,630
(794,038)
(215 ,000)
(4 ,529 ,000)
(816 ,434)
12 ,938 ,158
Expenditures
13 ,430
425
13,855
19,292 ,630
KODIAK ISLAND BOROUGH
Notes to Schedule of State Financial Assistance
Year Ended June 30 , 2014
(1) Basis of Accounting
This schedule was pre'pared on the modified accrual basis of accounting .
(2) Reporting Entity
The Kodiak Island Borough , for purposes of the supplementary Schedule of State
Financial Assistance includes all the funds of the primary government. It does not include
the component unit of the Kodiak Island Borough as follows :
The Kodiak Island Borough School District
The Kodiak Island Borough 's basic financial statements include $36,993 ,884 of State of
Alaska funds expended for the Kodiak Island Borough School District, a component unit of
the Kodiak Island Borough . These monies are excluded from this schedule . These
monies were subjected to State of Alaska single audit procedures and are subject to
separate reports issued for the Kodiak Island Borough School District dated November 14,
2014 .
(3) • Major State Programs for Compliance:
State Revenue Sharing
Emergency School Generators
Clean Water Revolving Loan Funds 505041
Clean Water Revolving Loan Funds 505061
Landfill Expansion Grant
Long Term Care Facility Planning and Design
Kodiak High School Vocational and Physical Education Facilities
HB 65 PERS On-behalf Payment
Motor Vehicle Tax
Debt Retirement Program
Fisheries Business Tax
Landfill Leachate Treatment Plant 7 Related Phase III
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KODIAK ISLAND BOROUGH
State Schedule of Findings and Questioned Costs
Year Ended June 30 , 2014
Section I -Summary of Auditor's Results
Financial Statements
Type of auditor's report issued :
Internal control over financial reporting :
Material weakness(es) identified?
Significant deficiency(ies) identified?
Is a material noncompliance disclosed?
State Financial Assistance
Internal control over major programs :
Material weakness(es) identified?
Significant deficiency(ies) identified?
Type of auditor's report issued on compliance
for major programs:
Dollar threshold used to distinguish
a state major program:
Section II -Financial Statement Findings
Unmodified
Yes..lL. No
Yes..lL. No
Yes..lL. No
Yes ..lL. No
Yes ..lL. No
Unmodified
$ 100,000
The Kodiak Island Borough did not have any findings that related to the financial statements .
Section III -State Award Findings and Questioned Costs
The Kodiak Island Borough did not have any findings that related to State awards .
Section IV -Summary of Prior Audit Findings
The Kodiak Island Borough did not have any prior year findings related to State awards. See Federal
Schedule of Findings and Questioned Costs for status of prior year financial statement findings .
19