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2017 Annual Operating Budget BookKodiak Island Borough, Alaska 2016-2017 Annual Operating Budget Photo by Carl Royall 1 Kodiak Island Borough Budget July 1, 2016 - June 30, 2017 As submitted by Interim Borough Manager, William Roberts on May 5th, 2016 and as amended by the Kodiak Island Borough Assembly And adopted on June 2nd, 2016 KODIAK ISLAND BOROUGH MAYOR AND ASSEMBLY Jerrol Friend , Mayor Kyle Crow Larry LeDoux Frank Peterson, Jr. Dan Rohrer Rebecca Skinner Mel Stephens Dennis Symmons 2 INTRODUCTION ............................................................................................................................................... 5 BUDGET MESSAGE .............................................................................................................................................. 8 BUDGET CALENDAR ........................................................................................................................................... 19 STRATEGIC PLAN ................................................................................................................................................. 23 FINANCIAL SUMMARIES .................................................................................................................................... 25 FUND STRUCTURE ............................................................................................................................................... 25 FUND MATRIX ...................................................................................................................................................... 26 FISCAL POLICY ..................................................................................................................................................... 27 FUND SUMMARY ............................................................................................................................................ 32 REVENUE SOURCES AND GENERAL FUND ESTIMATES ............................................................................ 40 GENERAL FUND REVENUE ................................................................................................................................ 47 SUMMARY OF GENERAL FUND EXPENDITURES BY DEP ARTMENT. ....................................................... 49 BOROUGH ASSEMBLY ........................................................................................................................................ 52 MANAGER 'S OFFICE ................................................................................................................................... 54 CLERK 'S OFFICE .......................................................................................................................................... 56 LEGAL SERVICES ................................................................................................................................................. 58 FINANCE ................................................................................................................................................................. 60 MANAGEMENT INFORMATION SERVICES ....................................................................................................62 ASSESSING ............................................................................................................................................................. 64 ENGINEERING AND FACILITIES ....................................................................................................................... 66 COMMUNITY DEVELOPMENT ........................................................................................................................... 68 BUILDING INSPECTION ...................................................................................................................................... 70 ECONOMIC DEVELOPMENT .............................................................................................................................. 72 GENERAL ADMINISTRATION ............................................................................................................................ 74 PARKS AND RECREATION ................................................................................................................................ 76 EMERGENCY PREPAREDNESS .......................................................................................................................... 78 ANIMAL CONTROL .............................................................................................................................................. 80 EDUCATION, CULTURE, AND RECREATION .................................................................................................. 82 CONTRIBUTION TO KODIAK COLLEGE AND LIBRARIES ........................................................................... 84 NON-PROFIT FUNDING ........................................................................................................................................ 86 TRANSFERS ........................................................................................................................................................... 88 SPECIAL REVENUE FUNDS ........................................................................................................................... 91 REVENUE SOURCES AND SPECIAL REVENUE FUND ESTIMATES ........................................................... 92 SPECIAL REVENUE FUND RECAP .............................................................................................................. 94 EDUCATION SUPPORT ................................................................................................................................ 96 RESOURCE MANAGEMENT .................................. .............................................. .............................................98 BUILDING AND GROUNDS FUNDS ........................ ............................................. ............................................ 100 BUILDING AND GROUNDS FUND- BOROUGH BUILDING ............................................................................ 102 BUILDING AND GROUNDS FUND- MENTAL HEALTH CENTER ............................................................... 104 BUILDING AND GROUNDS- SCHOOL BLDG MAJOR REPAIRS ................................................................ 106 CHINIAK SCHOOL ...................................................................................................................................................... 108 BUILDING AND GROUNDS- VARIOUS BOROUGH BUILDINGS .............................................................. 110 PROJECTS OFFICE ..................................................................................................................................................... 112 BUILDINGS AND GROUNDS – LONG TERM CARE FACILITY .................................................................. 114 LOCAL EMERGENCY PLANNING COMMITTEE ........................................................................................... 116 WOMENS BAY ROAD SERVICE AREA ........................................................................................................... 118 SERVICE AREA NO. l ......................................................................................................................................... 120 SERVICE AREA NO. 2 .................................................................................................................................... 122 MONASHKA BAY ROAD SERVICE AREA ...................................................................................................... 124 BAY VIEW ROAD SERVICE AREA ............................................................................................................................126 FIRE PROTECTION AREA NO. 1 (BAYSIDE FIRE DEPARTMENT) .............................................................. 128 3 WOMENS BAY FIRE DEPARTMENT ................................................................................................................ 130 KODIAK ISLAND BOROUGH AIRPORT FIRE PROTECTION DISTRICT ..................................................... 132 WOODLAND ACRES STREET LIGHT SERVICE AREA .................................................................................. 134 TRINITY ISLANDS STREET LIGHT SERVICE AREA ...................................................................................... 136 MISSION LAKE TIDE GATE SERVICE AREA .................................................................................................. 138 TRINITY ISLANDS SUBDIVISION PA YING DISTRICT ................................................................................. 140 FACILITIES FUND ................................................................................................................................................ 142 TOURISM DEVELOPMENT ................................................................................................................................. 144 FERN FULLER TRUST ......................................................................................................................................... 146 DEBT SERVICE FUND .......................................................................................................................................... 149 CAPITAL PROJECTS FUNDS ............................................................................................................................. 165 ENTERPRISE FUNDS ............................................................................................................................................ 215 MUNICIPAL SOLID WASTE DISPOSAL ........................................................................................................... 218 HOSPITAL ENTERPRISE FUND ......................................................................................................................... 220 KODIAK FISHERIES RESEARCH CENTER ...................................................................................................... 222 911 SERVICE ......................................................................................................................................................... 224 APPENDIX ............................................................................................................................................................... 227 GLOSSARY .............................................................................................................................................................. 233 4 Government Finance Officers Asso ciation of the United States and Canada (GFOA) pre sented a Di stingui shed Budget Presentation Award to the Kodiak Island Borough for its annual budget for the fiscal years beginning July 1, 1990 through July 1, 2015. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy docum ent, as an operating guide, as a financial plan, and as a communications medium. The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to the GFOA to determine its eligibility for the fiscal year 2017 award. 5 Introduction The Kodiak Island Borough is a second-class borough incorporated on September 24, 1963. The Borough currently operates under a manager form of government. The Manager is hired by the Assembly and oversees the day-to-day affairs of the Borough. The Assembly is comprised of seven members elected by the public to govern the Borough. The Borough Mayor, also elected by the people, presides over the Assembly, votes only in the case of a tie, and serves as a ceremonial figure for certain Borough affairs. The day-to-day business of the Borough is conducted within six departments: Manager’s Office, Clerk’s Office, Finance/MIS, Assessing, Community Development and Engineering/Facilities. Kodiak is the largest island in the State of Alaska and the second largest in the United States, second only to the island of Hawaii. Located in the Gulf of Alaska, accessible only by boat or plane, the Kodiak Island Borough faces unique challenges in providing services to nearly 14,000 residents. The majority of the population lives within the City of Kodiak and surrounding area, while several small cities and villages exist in more remote areas of the island. Kodiak Island is known for the incredible Kodiak brown bear, world-class sport fishing and hunting, and one of the largest commercial fishing ports in the nation. Kodiak also has the privilege of housing the nation’s largest United States Coast Guard Base and the first commercial rocket launch facility. 6 7 8 Residents, Transmitted herewith is the fiscal year 2017 budget document for the Kodiak Island Borough (KIB). This budget is submitted according to Borough Code Section 3.08.030 and State Statutes, and includes the goals and objectives for fiscal year 2017 as determined by the Assembly in their adoption of the Kodiak Island Borough Strategic Plan. Mission Statement Our mission is to provide quality service to the public in a fiscally responsible manner while fulfilling Borough responsibilities and exercising powers required by Alaska Statute Title 29 and the Kodiak Island Borough Code of Ordinances. Vision Statement Our vision is that the Kodiak Island Borough government is trusted and respected as a leader in providing the highest quality of services to the public in a cost effective, efficient manner that is open, dynamic, and focused. Kodiak Island Borough Economy The local economy is very strong. Almost all of the financial indicators for this region are strong. Here are some of the indices that we use to evaluate the borough’s condition. We only use financial indicators that are actual, we do not rely on hersay and rumors. 9 At June 30, 2016 there was $245,354,000 on deposit in Kodiak banks, an increase of $6,225,000 over the June 30, 2015’s balance of $239,129,000. This is a 3% increase. - 50,000 100,000 150,000 200,000 250,000 300,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Deposits in Local Banks in millions In the last 10 years the total taxable assessed value of the Borough increased from $835,525,537 to $1,312,339,398, an increase of $476,813,861. This is an increase of 57% over the last ten years for an average of 6% per year. - 200,000,000 400,000,000 600,000,000 800,000,000 1,000,000,000 1,200,000,000 1,400,000,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Assessed Values Real Property Personal Property 10 Severance taxes peaked in 2012 and are currently declining. Timber revenues have been consistant, however fish revenues have declined. - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 Severance Taxes Timber Mining Fish While the Kodiak Island Borough does not have a sales tax the City of Kodiak’s sales tax revenues are a good indicator of the Borough’s economy. Sales tax revenues have continued to rise in the last ten years, however they did drop off slightly in FY2016. - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 City of Kodiak Sales Tax Revenues 11 Overview of the FY2017 Budget The Borough has five different fund types. These are: 1. General Fund 2. Special Revenue Funds 3. Debt Service Funds 4. Capital Project Funds 5. Enterprise Funds We will do a description of each fund type at the beginning of their section. As always, one of the highest priorities of the Borough Assembly is to provide quality services to our residents at the lowest possible costs. The major policy issues for FY2017 are maintaining the same level of service to our residents, funding the School District to adequately provide a quality education to our youth, and maintaining our low tax rate. This year the mill rate for the General Fund, Education Support Fund, and the Debt Service Fund was 10.75 mills. This is the same amount as the few last years. One question that keeps being asked is: should the Borough change the mill rate to pay for the increasing school bond payments? Other options would be to reduce annual school district appropriation, reduce other programs, or a combination of all of the above to pay for this debt service. At this time I believe the debt service component of the mill rate will continue to increase, but this may change. General Fund The fund balance of the General Fund at June 30, 2016 is estimated to be $3,285,781. This is $53,379 less than the FY2015’s ending fund balance of $3,232,402. This budget is balanced without a use of fund balance. The FY2016 budget was adopted as a balanced budget, i.e. revenues would be the same as expenditures. A “use of Fund Balance” of $921,631 was used to balance this budget however the fund balance only decreased by $169,451. The major reasons for this reduced decrease in budgeted fund balance were as follows:  Federal PILT came in $330,517 over budget.  National Wildlife Refuge came in $53,084 over budget.  The Manager’s department was $245,072 under budget, due to a position vacancy and no termination expenses.  The Finance department budget came in $73,871 under budget due to a position vacancy and no termination expenses.  The Economic Development department budget came in $71,319 under budget  The Parks and Recreation department budget came in $65,544 under budget. 12 General Fund revenues are budgeted at $6,201,324; $1,554,850 (25%) from property taxes and payment in lieu of taxes, $1,738,000 (28%) from severance taxes, $66,000 (1%) from licenses and permits, $2,616,387 (42%) from intergovernmental sources, $211,587 (3%) from interest earnings, and $14,500 (<1%) from miscellaneous revenue. General Fund expenditures are expected to decrease from an estimated $6,576,153 in FY2016 to a budgeted $6,201,324 in FY2017, a decrease of $374,829. The largest part of these decreases is that the Assembly directed staff to cut expenditures where possible. General Fund expenditures are budgeted at $6,201,324; $1,658,017 (26%) for general government, $96,000 for education (2%), $781,226 (13%) for assessing, $133,615 (2%) for public safety, $1,863,641 (30%) for Finance/IT, $176,695 (3%) for Engineering/Facilities, $334,297 (5%) for health and welfare, and $1,157,833 (19%) for Community Development. Special Revenue Funds Special revenue funds are created when a revenue source is dedicated to a specific activity. Examples would be a property tax dedicated to a road service district or a transient accomdations tax to only be used to promote tourism. By far the largest two special revenue funds are the School District Support Fund and the Facilities Fund. The Borough created the School District Support fund in FY2012. The revenues for this fund come from property taxes and taxes on motor vehicles. For FY2017 the mill rate for education support has been set at 7.62 mills. Motor vehicle taxes have been budgeted at $280,000 and there have been no transfers budgeted. For FY2017 $10,277,500 has been budgeted for support of the school district. This is a reduction of $628,149 from FY2016 funding. This includes a direct appropriation of $9,366,500 and in-kind services of $911,000. The Borough established a special revenue fund named the “Facilities Fund” to account for the sale of Shuyak Island to the federal government in FY1996. Without the Facilities Fund the Borough would have to increase its area wide mill rate by approximately one half mill. At June 30, 2016 the Facilities Fund had a fund balance of $39,544,921. Since inception in FY1996 the Facilities fund has earned $19,869,081 in interest. Eighty-five percent of the interest earnings from the previous year can be used for insurance, debt reimbursement (capped at 50%), and capital projects, the remaining fifteen percent must be kept in the fund for inflation proofing. The Facilites Fund is budgeted to transfer $275,325 to the Renewal and Replacement fund. Some highlights of other special revenue funds are listed below. 13 1. FY2016 snow removal costs in the service districts were budgeted at $293,550 but came in at $51,527. This was $265,413 under budget and $23,390 less than last year’s. We have budgeted $293,550 for snow removal costs in FY2017. 2. Fire district costs were in line with previous years. 3. The Tourism Development Fund bed tax revenues decreased slightly from $104,074 in FY2015 to $95,466 in FY2016. This is an 8% decrease. We do feel that Kodiak still has a healthy tourism economy and revenues should remain stable. Debt Service Funds The Borough paid $6,469,074 in debt service costs in FY2016. The State of Alaska reimbursed the Borough for $4,304,877 of these costs or 67%. The Borough levied a 1.70 mill property tax on real and personal property. This tax accounted for revenues of $2,033,427 that accounted for 31% of debt service fund revenues. Interest earnings of the Facilities Fund paid for $150,000 (2%) of these costs. For FY2017 we are Budgeting to spend $7,836,597 on debt service. This is an increase of $1,116,091 or .85 mills. For FY2017 the mill rate on debt service was increased slightly to 1.91 mills. The Hospital bonds were paid off on February 1, 2014. This saves the Borough about $730,000 in debt service expenditures every year. Capital Project Funds The Borough is currently managing $159,643,817 in capital projects. We are budgeting to expend $12,557,190 of these funds in FY2017. The majority ($100,648,056 (63%)) of these projects are being funded by bond issues. The State of Alaska reimburses the Borough for up to 60% of debt service payments for repairs and maintenance and up to 70% of the costs of new construction for school buildings. During this past legislative session, the State decided to decrease the bond reimbursement by 25% in a State-wide cost saving measure. We expect this trend to continue since the State’s budget shortfalls have yet to be addressed. We have $20,317,580 in capital projects funded by state grants. This has been a major source of construction funds over the years. Other funding sources are $3,934,068 in federal grants and $20,463,548 in loans from the Alaska Clean Water Fund. Our renewal and replacement projects are being funded by a $3,691,633 loan from the Hospital Enterprise Fund. This loan will have to be paid back with property tax revenue unless other revenue sources are found. As the projects that have been funded from the proceeds of general obligation bonds are completed we will have far less construction going on. Enterprise Funds The Borough has four enterprise funds: Solid Waste Disposal, Hospital Facility, Kodiak Fisheries Research Center (KFRC), and 911 Services. The Borough has been closing sections of the landfill and as a result our liability for closure post/post closure costs have gone from $3,188,507 to $5,094,036, an increase of $1,905,529 (60%). This 14 usually decreases, however this year it increased due to the opening of new landfill cells. Closure/post closure expenses will remain as one of the biggest issues facing the Borough. The Borough currently leases the hospital to Providence Health Care and the KFRC Building to the federal and state government. As such the Borough has little impact in the day to day operation of these entities. The Borough has been working with Providence Health Care to build a new long term care center in Kodiak. This project has been completed. The Borough collects a tax on phone lines and uses part of the funds to recover the cost of maintaining addresses on our computer system and remits the rest of it to the City of Kodiak to support their communications system. The Borough is not making as much revenue from 911 surcharges with more and more people using cell phones which are not currently taxed by the Kodiak Island Borough. Even with our continued economic growth, the Borough’s population is going down, we have fewer children enrolled in our schools, and the number of registered voters is declining. The State of Alaska demographers feel that this trend will continue for at least 25 more years. Major Policy Issues Currently the area wide mill rate is 10.75 mills. The General Fund mill rate is only .15 mills. The vast majority of area wide taxes go to the school district and debt service. As the Borough sells more bonds to finance the High School Remodel and Renovation project the area wide mill rate will have to be increased another 1 to 2 mills. This year the Borough’s Education Support budget is $10,277,500 and the debt service budget for education is $7,836,597 for a total of $18,114,097. This contribution is equal to 13.80 mills of property tax. Interest earnings are very low right now. Where the Borough earned $2,356,109 in interest in FY2009 the Borough only earned $901,166 in FY2016, a 62% reduction. We believe that interest earnings will remain low in FY2017, however interest rates are starting to slowly increase. This year the Borough budgeted contributions to non-profits at $234,000. This is equal to approximately .18 mills of property tax. Every year the Assembly reviews the funding of non-profit organizations. Traditionally the Borough has allocated a considerable amount of money towards non- profit agencies within the Kodiak Island Borough and this year was no exception. The Borough is responsible for solid waste collection and disposal on the “road system” of the Borough and the Borough has contracted with Alaska Waste to provide solid waste collection service. The Borough operates the baler facility and landfill. The Borough is currently working on a major project to expand the landfill. The total cost of this project is expected to be $32,000,000 and will expand the life cycle of the landfill by approximately 20 years. 15 Tax Rate and Financial Analysis This budget keeps the combined mill rate for the General Fund, Debt Service Fund, Education Support fund and the Renewal and Replacement Fund at 10.75 mills. These 4 funds are the funds in the Borough that are funded with and area wide property tax. The voters of the Kodiak Island Borough initiated and passed a property tax revenue cap in October of 1998, limiting the amount of any potential increases to the mill rate. The tax cap does allow an increase for new debt service and inflation. Pursuant to Alaska law respecting initiatives however this limit is subject to change after two years and this time period has lapsed. The Facilities Fund plays a major part in keeping our General Fund Expenditures down. The Facilities Fund was created when the Borough sold Shuyak Island to the State of Alaska for forty two million dollars. This fund has been set up as a permanent fund where only the interest earnings can be used, and then only after inflation proofing. The Borough can use up to eighty-five percent of the previous year’s interest earnings for building insurance, debt service payments, and transfers to capital projects. Interest earnings have remained low in the last several years. In FY2014, we earned $655,469, they dropped down to $468,769 in FY2015 and went up a little to $515,662 in FY2016. We have conservatively budgeted interest earnings of $357,825 for FY2017. These earning are equivelant to just more than one quarter of a mill. In FY2017 the Facilities Fund is budgeted to transfer $275,325 to Capital Projects. If the Facilities Fund were not available this $275,325 would have to be paid out of the General Fund and ultimately the individual taxpayers. This is a savings of 0.21 mills. Various service districts within the Borough levy a property tax to provide service within the Borough. These levies range up to 2.5 mills. A complete schedule of these rates can be found in the Financial Summaries section. Property assessments have increased from last year largely due to new construction and reappraisals of existing property. A consistent pattern of reappraisals, standardization and increased quality of both the real and personal property rolls has continued. The taxable value of real and personal property for FY2017 is $1,312,339,398 an increase of $109,462,226 (9%) over FY2016’s value of $1,202,877,172. The total proposed budget for fiscal year 2017 calls for expenditures and transfers of $55,874,027. The Kodiak Island Borough School District’s (KIBSD) budget is not included in this total for three reasons: 1) the School District is still formulating their budget, 2) it will not be approved by the State of Alaska until July, and 3) the school board is a governing board and the Borough Assembly has no control over their budget except for the local appropriation and total budget approval. The proposed General Fund budget is only 11% of the total budget. Special revenue funds are budgeted at $15,337,066 which is 27% of the total budget. Education support makes up 67% of the special revenue funds. 16 Debt service expenditures are budgeted at $7,836,597 or 14% of the proposed budget. State debt reimbursement is budgeted at $5,328,029. The State has generally paid for 60 - 70% of our debt for school construction; however with the recent State budget vetoes, this reimbursement has been decreased by 25% for FY2017. The Borough has ten different capital project funds. These are Borough Capital Projects, Bond Improvements, Borough Capital Project, State Capital Grants, Borough Capital Projects 2, High School Renovation and Renewal, Renewal and Replacement Projects, Bonded Renewal and Replacement Projects, Landfill Improvements and Hospital Improvements. At this time the Borough has $159,643,817 total in ongoing capital projects. For FY2017, capital projects are budgeted to expend $12,557,190 or 22% of the proposed budget. For a complete description of these funds and the individual projects you can turn to the Capital Projects tab. Enterprise funds are budgeted at $7,740,526 or 14% of the proposed budget. The Borough faces many challenges for FY2017 and beyond. Crude oil production in the State of Alaska is steadily declining. From a high of 2,054,000 barrels of oil a day production has decreased to 624,687 barrels of oil a day in 2011. Increased prices have offset this declining production. The State has been trying to cut or contain costs wherever possible. One large area is education. The State has not kept up with the escalating cost of education. This means that the Boroughs pay for a larger share of education by making up the difference in diminishing State support for education. Along with cuts in State and Federal funding are the increasing costs of complying with State and Federal regulations such as the Clean Water Act, wetland regulations, and others. The economy of the Borough is sound. We have a diversified economic base including fishing, timber harvesting, tourism, a rocket launch facility, a Fisheries Research Center, and a large contingent of Federal and State government employees. It is imperative that we continue to be financially responsible and seek cost effective improvements throughout Borough operations. Objectives for FY2017 Performing our day to day operations is always important. We perform some of our functions on an area wide basis and some on a service area basis. Tasks such as property assessment, tax collection, planning and zoning, and administrative functions are performed on an area-wide basis. One of the most important functions of the Borough is procuring funds to pay for the school district. As you page through the document you will notice that every department has goals and objectives. Goals are the long term purposes of that department and objectives are what the department wants to accomplish this year. Fire protection, road maintenance, building inspections, and other functions are performed on a service area basis. The revenues from these areas fund these services. The High School Renovation and Renewal Project is the largest capital project that the Borough has taken on. The goal is to complete the project in FY2017. 17 The Borough is working on many projects that will take more than a year to complete. Most of these are in our capital project funds. In that section the reader can easily see what projects are scheduled to be completed in FY2017 and which ones will take longer. Looking past Fiscal Year 2017 The Borough will have to raise the mill rate, find other sources of revenues, or drastically cut expenditures in the near future to pay for the new school bond issues. At this time we feel that raising the mill rate is going to be the only way to balance our budget in the future. We will have to raise the mill rate by 1.5 to 2 mills for the new school bond issues. We do not think that interest rates will rise very much in the next 2 to 3 years. Despite the national trend we believe that the assessed value of our property will continue to rise. However, we do not anticipate an increase like we experienced in FY2011. Most of this increase was due to not having current assessments on much of our property. A good deal of this lag has been corrected. As the Borough constructs new infrastructure our maintenance liability will continue to rise especially as the facilities age. After completing the High School Renovation project we do not anticipate much new school construction for the near future. We will however have renewal and replacement bond projects that will lower our maintenance cost as we renew ageing items under these bond projects. We do anticipate that we will be doing more health care projects. At the present time there are still not adequate facilities to handle the needs of our senior citizens. The Borough operates the baler facility and landfill. The Borough is currently working on a major project to expand the landfill. The total cost of this project is expected to be $32,000,000 and will expand the life cycle of the landfill by approximately 20 years. Government Finance Officers Distinguished Budget Presentation Award The Borough has been a participant in the Distinguished Budget Presentation Award program since FY1990. The Borough has received the Distinguished Budgetary Presentation Award for all of our budgets from FY1991 through FY2016. We will be submitting this budget to the GFOA for their evaluation. Acknowledgment Particular appreciation is directed to all members of the Kodiak Island Borough staff for their cooperative, efficient and dedicated service during the past year. Special appreciation is also given to the finance department for their assistance in the preparation of this document. Also, I would like to give thanks to each member of the Assembly for their interest and support in adopting legislation, goals, and policy guidance that allows staff to conduct the financial affairs of the Kodiak Island Borough in a progressive and responsible manner. 18 Conclusion The requested appropriations have not been established easily. The Assembly provided goals and objectives in November which helped the staff build budgets around these goals from the start. During the months of December through March, budget sessions were conducted with all departments and agencies. Since then, several budget work sessions have been held with the Assembly. As usual, this process was difficult due to limited revenues and the unavailability of State revenue projections until after the legislative session ended in May. Respectfully submitted, KODIAK ISLAND BOROUGH William Roberts Dora Cross Administrative Official Finance Director 19 BUDGET CALENDAR KODIAK ISLAND BOROUGH FISCAL YEAR 2017 The following activity is outlined as essential for the orderly formulation of the fiscal year 2017 Borough budget (July 1, 2016 through June 30, 2017). FY17 BUDGET CALENDAR GENERAL DATES Specific Dates ITEM July 1 KIB Fiscal Year begins July 1 State fiscal year begins July 15 KIBSD budget to DoEED late July State budget process begins August 15 August 17, 2015 1st half property tax pmt due September KIBSD Needs Assessment September 30 Quarter end for severance tax and bed tax late Sept-early Oct State Fall revenue forecast 1st Tuesday Oct October 6, 2015 Local Elections October KIBSD strategic planning Mid-October October 19 New Assembly members seated by 4th Friday of Oct KIBSD 20 day count of students to DEED October 15 October 15, 2015 Single payment property taxes due October October 29 Review State Legislative Priority/CIP List w lobbyist (this has previously been done in Sept, ok to do in later this year, per Hickey) November KIBSD budget handbook distributed early November Further discuss the State CIP/Legislative Priority List Mid November November 5, 2015 Finalize State Legislative Priority/CIP list November 15 November 16, 2015 2nd half property tax pmt due Mid November Nov 18-20 AML annual conference mid January November 28, 2015 KIB Budget Message to Dept Directors from the Manager late January November 28, 2015 Finance Director distributes budget worksheets by December 15 December 15, 2015 Governor releases operating and capital budget mid February mid December Departmental budget requests due to the Finance Department December December 15, 2015 Introduce Debt Service and General Fund budgets December 31 Quarter end for severance tax and bed tax January KIBSD preliminary budget to School Board January February 25, 2016 Review Special Revenue funds: Airport Fire District, Woodland Acres Street Lighting, Trinity Islands Street Lighting, Mission Lake Tide Gate, Fern Fuller Trust January Review Enterprise Funds: Hospital, 911 January December 15, 2015 Preliminary "Big Picture" of the Budget by January 15 DoR Publishes Revenue Sharing Population Determinations January 15 Personal Property Tax Returns due January 15 Application for real property (tax) exemptions due Late Oct-Early Nov January 16, 2016 KIB Strategic Planning mid January Assessor's property tax projection to Finance 3rd Tues January January 19, 2016 State legislative session begins late January State subcommittees review Governor's Budget Request late January Mayor's Conference late January Initiate KIBSD funding discussions by end of December Jan/Feb Staff submits action plans based on Strategic Plan February Adopt a Federal CIP List February KIBSD budget hearings February 15 Shared Fisheries Business Tax application due late February KIB revenue forecast to Assembly February 28 KIB Personal Property Tax Return due February 28/29 Assessment Roll complete/notices mailed late Feb-early March SWAMC annual economic summit late Feb-early March Legislative Reception in Juneau March 1 July 15th, 2016 Distribute non-profit funding applications March February 25th, 2016 Review Special Revenue funds: Land Sales, Building & Grounds, Local Emergency Planning, Tourism Development March Review Solid Waste Fund March KIBSD budget revisions mid March data due for PILT application March 31 Service Area budget requests due to Finance March 31 Quarter end for severance tax and bed tax late March-early April State Spring Revenue Forecast April KIBSD budget approval April 15 Tax Assessment appeals due mid April May 18th, 2016 State legislative session ends late April August 8th, 2016 KIB Non profit requests due by April 30 Manager's proposed budget to Assembly by April 30 KIBSD budget to KIB by April 30th 1st Monday of May Board of Equalization meets (for assessed value appeals) May Review Kodiak Fisheries Research Center Fund early May KIB work session on School district minimum funding mid May Assessment Roll is certified mid May May 5th, 2016 KIB resolution identifying the minimum funding to KIBSD mid May May 5th, 2016 KIB Budget Ordinance introduced mid May KIB publish public notice June 1 State Revenue Sharing application due by June 10th June 3rd, 2016 KIB public hearing and adoption of budget mid June Budget process debrief June 30 Quarter end for severance tax and bed tax June 30 Revenue sharing determinations 20 The Budget Process The budget process began on November 28th, 2015 with the budget preparation message by the Borough Manager. At this time, budget worksheets are distributed to the various departments to aid them in preparing their requests. Later, forms are distributed to solicit input from the villages and from autonomous, not-for-profit organizations. Departmental budget requests must be returned to the Finance Department by the second week in December. Departments must include line item monetary requests and goals and objectives for the upcoming fiscal year. The Finance Officer prepares revenue forecasts for all funds by the third week in February. During December through March, work sessions are held between the Manager, Finance Officer, and department heads to resolve or justify the departmental budgets. Service district budgets must be received by March 31 of the year, per Section 4.20.030 of the Borough code. The school district budget must be received by April 30 of the year, per Section 3.08.030 B of the code. Budget requests by public and not-for-profit organizations must be returned to the Manager’s Office no later than August 8. The Manager presents the annual budget message during the last week of April. The proposed budget and capital program must be presented to the Borough Assembly in a work session prior to April 30, per section 3.08.030 A of the code. During the months of April and May, the Assembly reviews the budget with the Manager and department heads. In May, the Manager introduces the budget ordinance. There must be a public hearing on the budget on or before June 10 of each year. The Borough Clerk posts the notices of this public hearing. The budget shall be adopted by a favorable vote of a majority of all members of the Assembly no later than June 10 through the adoption of an ordinance setting forth the appropriation levels and the mill rate. The Borough Mayor may veto the ordinance, but his veto may be overridden by two-thirds of all the votes to which the Assembly is entitled on the question. If the Assembly does not adopt the budget by June 10, the budget, as presented by the Manager, shall be deemed to have been finally adopted, per Section 3.08.060 of the code. Budget Amendments According to the Borough Code for Public Finance-Budget Secion 3.15.070, upon adoption of the budget through Assembly passage of the budget ordinance, the budget is in effect for the budget year (July 1- June 30). Amendments to the budget can occur anytime during the fiscal year through the Borough Assembly or administrative action. Generally, the following actions are required at the level of the particular change: 1. All new appropriations are authorized by an appropriation ordinance that amends the annual budget ordinance. 21 2. A resolution of the Borough Assembly is required to move (appropriate) amounts between departments and projects. Basis of Accounting The term “basis of accounting” is used to describe the timing of recognition that is, when the effects of transactions or events should be recognized. The Borough uses this same basis for our budgeting. Fund Type Accounting Basis Budgeting Basis General Fund Modified Accrual Modified Accrual Special Revenue Funds Modified Accrual Modified Accrual Debt Service Fund Modified Accrual Modified Accrual Capital Projects Modified Accrual Modified Accrual Enterprise Funds Full Accrual Full Accrual The Borough budgets government-type funds (for example, the General Fund, Special Revenue Funds, and Debt Service Fund) and Capital Projects funds on a modified accrual basis. Revenues are recognized only when they are both measurable and available. Revenues are considered available if they are received within 60 days of year end. Expenditures are recognized when they are incurred, but an exception to this general rule is principal and interest on general long-term debt, which is recognized when due. Prepayment of insurance and similar services extending over more than one year is allocated to the years benefited. The Enterprise Funds (Municipal Solid Waste and Collection, Hospital, Kodiak Fisheries Research Center, and 911 Services) also budget obligations when incurred as expenditures. Revenues are recognized when they are obligated to the Borough (for example, user fees are recognized as revenues when services are provided). In all funds when goods and services are not received by the end of the year, the encumbrances lapse. Encumbrances are not recognized in the year of encumbrance but in the year they are incurred. Balanced Budget All funds of the Borough must have a balanced budget. For the Borough, this means that revenues, plus a use of unrestricted fund balance, must equal expenditures. 22 This page intentionally left blank 23 24 25 FINANCIAL SUMMARIES FUND STRUCTURE The Borough accounts are organized on the basis of fund and account groups, each of which is considered a separate accounting entity. Operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses as appropriate. Borough resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds in this report are grouped into five generic fund types within two broad fund categories. Government Fund Types General Fund: The General Fund is the operating fund of the Borough and is used to account for all financial resources, except those that are required to be accounted for in another fund. Special Revenue Funds: Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for special purposes. We include neighborhood service districts such as road, fire, and street lighting, as well as maintenance of our buildings and grounds, in this fund type. Debt Service Funds: The Debt Service Funds are used to account for the accumulation of, resources for, and the payment of general long-term debt principal, interest, and related costs. The bulk of our debt is in the form of general obligation bonds which are accounted for primarily in one large debt service fund. Capital Project Funds: Capital Projects Funds are used to account for financial resources to be used for acquisition or construction of major capital facilities and equipment. We use these funds to track our projects funded by b ond revenue, grants and other large maintenance projects. Proprietary Fund Types Enterprise Funds: Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent o f the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges, or (b) where the governing body has decided that p eriodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The Borough has four Enterprise Funds: Municipal Solid Waste, Hosp ital Facility, Kodiak Fisheries Research Center, and 911 Emergency Telephone Services. 26 Governmental Funds General Fund (Major Fund) Kodiak Island Borough Budgeting Funds Special Revenue Funds Enterprise Funds Facilities Fund Trinity Island Paving Mission Lake Tide Gate Trinity Islands Street Light Area Woodland Acres Street Light Area KIB Airport Fire Protection District Womens Bay Fire Department Fire Protection Area No. 1 Bayview Service Area Monashka Bay Service Area Service Area No. 2 Service Area No. 1 Womens Bay Service Area LEPC Buildings & Grounds Land Sales Education Support Tourism Development Fern Fuller Trust Capital Projects Funds Fund 470 – Bonded R&R Projects Fund 469 – R&R Projects Fund 460 – High School R&R Project Fund 450 – Borough Projects Fund 430 – State Grants Projects Fund 426 – Borough Projects Fund 420 – Bonded Projects Fund 410 – Borough Projects Fund 490 – Landfill Projects Fund 495 – Health Services Projects Debt Service Fund Education Municipal Solid Waste Hospital Facility KFRC 911 Services 27 FISCAL POLICY This fiscal policy, adopted March 15, 1990, is a statement of the guidelines and goals that will influence and guide the financial management practices of the Kodiak Island Borough. A fiscal policy that is adopted, adhered to, and regularly reviewed is recognized as the cornerstone of sound financial management. Effective fiscal policy: contributes significantly to the Borough’s ability to insulate itself from having a financial crisis; enhances long-term financial credibility by helping to achieve the highest bond and credit ratings possible; promotes long-term financial stability by establishing clear and consistent guidelines; directs attention to the total financial picture of the Borough rather than single -issue areas; promotes the view of linking long-run financial planning with day-to-day operations; and provides the Assembly and the citizens of the Borough with a framework for measuring the fiscal impact of government services against established fiscal parameters. To these ends, the following policy statements are provided: 1. Operating Budget Policies The budget is a plan for allocating resources. The objective is to enable service delivery with allocated resources. Services must be delivered to the citizens at a level that will meet real needs as efficiently and effectively as possible. The Borough’s goal is to pay for all recurring expenditures with recurring revenues and to use non- recurring revenues for non-recurring expenditures. It is important that a positive undesignated fund balance and a positive cash balance be shown in all governmental funds at the end of each fiscal year. When deficits appear to be forthcoming within a fiscal year, spending during the fiscal year must be reduced sufficiently to create a positive undesignated fund balance and a positive cash balance. When possible, the Borough will integrate performance measurement and productivity indicators within the budget. This should be done in an effort to improve the productivity of Borough programs and employees. Productivity analysis should become a dynamic part of the Borough administration. The budget must be structured so that the Assembly and the general public can readily establish the relationship between expenditures and the achievement of service objectives. The individual department and agency budget submissions must be prepared with the basic assumption that the Assembly will always attempt to maintain the current tax rates. Budgetary review by the Assembly will focus on the following basic concepts: Staff Economy The size and distribution of staff will be a prime concern. The Assembly will seek to limit staff increases to areas where approved program growth and support absolutely requires additional staff and to reduce staff where this can be done without adversely affecting approved service levels. 28 Capital Construction Emphasis will be placed upon continued reliance on a viable level of pay-down capital construction to fulfill needs in an Assembly approved comprehensive capital improvements program. Program Expansions Proposed expansion to existing programs and services must be submitted as budgetary increments requiring detailed justification. Every proposed program or service expansion will be scrutinized on the basis of its relationship to the health, safety, and welfare of the community. New Programs New programs or services must also be submitted as budgetary increments requiring detailed justification. New programs or services will be evaluated on the same basis as program expansion plus an analysis of long term fiscal impacts. Existing Service Costs The justification for base budget program costs will be a major factor during budget review. Administrative Costs In all program areas, administrative overhead costs should be kept to an absolute minimum. Functions of all departments and agencies should be reviewed in an effort toward reducing duplicate activities within the Borough government and the autonomous and semi-autonomous agencies, which receive appropriations from the Borough. The budget will provide for adequate maintenance of capitalized assets and for their orderly replacement. The administration will maintain budgetary controls at the character level within each organizational unit. (Characters are broad classifications of expenditures: fringe benefits, contractual services.) The preparation and distribution of budget status reports, interim financial statements, and annual financial reports is required. The Borough will remain current in payments to the retirement system. The Borough will develop and annually update a long-range (three to five years) financial forecasting system that will include projections of revenues, expenditures, and future costs and financing of capital improvements that are included in the capital budget. The Borough will develop and annually update a financial trend monitoring system which will examine the fiscal trends from the preceding five years- trends such as revenues and expenditures per capita and adjusted for inflation, liquidity, or operating deficits. Where possible, trend indicators will be developed and tracked for specific elements of the Borough’s fiscal policy. 2. Debt Policies The Borough will not fund current operations from the proceeds of borrowed funds. The Borough will confine long-term borrowing to funding of capital improvements or projects that cannot be financed from current revenues. 29 When the Borough finances capital projects by issuing bonds, it will repay the debt within a period not to exceed the expected useful life of the project. Target debt ratios will be annually calculated and included in the review of financial trends. Net debt, as a percentage of the estimated market value of taxable property should not exceed two percent. The ratio of debt service expenditures as a percent of governmental fund expenditures should not exceed 15 percent. The Borough recognizes the importance of underlying and overlapping debt in analyzing financial conditions and will regularly analyze its indebtedness. The Borough will maintain good communications about its financial condition with bond and credit institutions. The Borough will follow a policy of full disclosure in every annual financial statement and bond official statement. The Borough will avoid borrowing on tax anticipation and maintain adequate fund balance. 3. Revenue Policies The Borough will try to maintain a diversified and stable revenue structure to shelter it from short-run fluctuations in any single revenue source. The Borough will attempt to maintain a diversified and stable economic base by supporting policies that promote tourism, fishing, agriculture, commercial, and industrial employment. The Borough will estimate its annual revenues by an objective, analytical process. The Borough, where possible and reasonable, will institute user fees and charges for specialized programs and services. Rates will be established to recover operational, as well as capital or debt service costs. The Borough will regularly review user fee charges and related expenditures to determine if pre- established recovery goals are met. The Borough will maintain a sound, consistent, and equitable ad valorem property tax assessment program. The Borough will follow an aggressive policy of collecting tax revenues where the annual level of uncollected current property tax should not exceed two percent. The Borough should routinely identify governmental aid funding possib ilities. However, before applying for and accepting intergovernmental aid, the Borough will assess the merits of a particular program as if it were funded with local tax dollars. Local tax dollars will not be used to make up for losses of intergovernmental aid without first reviewing the program and its merits as a budgetary increment. 4. Investment Policies The Borough will maintain an investment policy based on the Government Finance Officers Association (GFOA) model investment policy. The Borough will conduct an analysis of cash flow needs on an ongoing basis. Disbursements, collections, and deposits of all funds will be scheduled to ensure maximum cash availability and investment potential. When permitted by law, the Borough will pool its various funds for investment purposes. 30 The Borough will obtain the best possible return on all investments consistent with the underlying criteria of liquidity and safety of principal. The Borough will regularly review contractual opportunities for consolidated banki ng services. 5. Accounting, Auditing, and Reporting Policies The Borough will establish and maintain a high standard of accounting practices in conformance with Generally Accepted Accounting Principles (GAAP). The accounting system will maintain records on a basis consistent with accepted standards for government accounting according to the Government Accounting Standards Board (GASB). Regular monthly financial statements and annual financial reports will present a summary of financial activity by departments and agencies within all funds. Where possible, the reporting system will also provide monthly information on the total cost of specific services by type of expenditure and revenue by fund. An independent firm of certified public accountants will perform an annual financial and compliance audit and will publicly issue an opinion, which will be incorporated into the Comprehensive Annual Financial Report (CAFR). The Borough will annually strive for the GFOA Certificate of Achievement for Excellence in Finan cial Reporting and the GFOA Distinguished Budget Presentation Award. 6. Capital Budget Policies The Borough will make all capital improvements in accordance with an adopted capital improvements program. The Borough will develop a multi-year plan for capital improvements that considers development policies and links the development process with the capital plan. The Borough will enact an annual capital budget based on the multi-year capital improvement program. The Borough will coordinate development of the capital improvement budget with development of the operating budget. Future operating costs associated with new capital projects will be projected and included in operating budget forecasts. The Borough will maintain all its assets at a level adequate to protect its capital investments and to minimize future maintenance and replacement costs. The Borough will identify “full-life” estimated cost and potential funding sources for each capital project proposal before it is submitted to the Assembly for approval. The Borough will determine the total cost for each potential financing method for capital project proposals. The Borough will identify the cash flow needs for all new projects and determine which financing method best meets the cash flow needs of the project. 7. Reserve Policies The Borough will maintain a fund balance designation for fiscal cash liquidity purposes; i.e. fiscal reserve that will provide sufficient cash flow to minimize the potential of short-term tax anticipation borrowing. 31 The Borough will maintain appropriated contingencies to provide for unanticipated expenditures. The three contingencies and their recommended minimum funding levels are: Emergency Contingency 1.00% of General Fund Personnel Contingency 0.50% of General Fund Litigation Contingency 0.25% of General Fund The Borough will maintain sufficient self-insurance reserves, as established by professional judgment, based on the funding techniques utilized and the recorded losses. For fiscal year 2017 these are the levels of funding required to meet these needs. Basically this is unencumbered fund balance in the General Fund: General Fund Balance Percent Applied for Fund Contingency Balance Emergency $3,285,781 1% 32,858 Personnel $3,285,781 ½% 16,429 Litigation $3,285,781 ¼% 8,214 Total N/A N/A $57,501 The $3,285,781 in unreserved fund balance in the General Fund easily covers these amounts. 32 Special Debt Capital General Revenue Service Projects Enterprise Fund Funds Funds Funds Funds Total Estimated Beginning Balance 3,285,781$ 42,988,023$ 217,833$ 12,687,399$ 47,612,350$ 106,791,386$ Revenues Property Taxes 196,850 11,359,427 2,506,568 117,293 - 14,180,138 Bed Tax - 89,500 - - - 89,500 Non Ad Valorem Taxes 26,000 280,000 - - - 306,000 Payment in Lieu of Taxes 1,332,000 - - - - 1,332,000 Severence Taxes 1,738,000 - - - - 1,738,000 Penalties & Interest Fees 153,410 - - - 2,000 155,410 Rents & Royalties - 777,278 - - 2,232,477 3,009,755 User Fees - - - - 3,175,634 3,175,634 Land Sales Activities - 89,409 - - - 89,409 Licenses & Permits 66,000 31,800 - - - 97,800 Federal Revenues 150,080 - - 1,159,281 - 1,309,361 State Revenues 2,466,307 108,900 5,328,029 481,380 158,275 8,542,891 Fines - - - - - - Interest Earnings 58,177 370,625 2,000 598,080 212,583 1,241,465 Sale of Bonds/Loans - - - 12,639,868 - 12,639,868 Miscellaneous 14,500 2,230,127 - - 1,848,057 4,092,684 Transfers In - - - 167,042 111,500 278,542 Total Available Funds 9,487,105 58,325,089 8,054,430 27,850,343 55,352,876 159,069,843 Expenditures General Government 3,698,353 - - 309,490 - 4,007,843 Education 96,000 10,277,500 7,836,597 4,468,855 1,683,183 24,362,135 Health & Welfare 41,140 66,500 - - 2,253,841 2,361,481 Assessing 781,226 - - - - 781,226 Community Development 957,070 - - - - 957,070 Resource Management - 1,628,709 - - - 1,628,709 KIB Buildings - 781,278 - 211,075 - 992,353 LEPC - 14,000 - - - 14,000 Road Maintenance - 793,227 - 11,654 - 804,881 Public Safety 333,835 1,275,127 - 139,244 35,000 1,783,206 Culture and Recreation 24,200 - - 655,148 - 679,348 Economic Development 35,500 142,900 - - - 178,400 Non Profit Funding 234,000 - - - - 234,000 Solid Waste - - - 5,387,577 3,768,502 9,156,079 Other - - - 1,374,147 - 1,374,147 Transfers Out - 357,825 - - - 357,825 Total Use of Funds 6,201,324 15,337,066 7,836,597 12,557,190 7,740,526 49,672,703 Estimated Funds Available 06/30/17 3,285,781 42,988,023 217,833 15,293,153 47,612,350 109,397,140 Budget Summary, All Funds 33 This page left intentionally blank. 34 Three Year Budget Overview General Fund Special Revenue Funds Debt Service Funds FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 Actual Estimated Budgeted Actual Estimated Budgeted Actual Estimated Budgeted REVENUES Property Taxes 31,916$ 32,039$ 196,850$ 12,056,899$ 11,457,284$ 11,359,427$ 1,158,727$ 2,033,427$ 2,506,568$ Bed Tax - - - 104,074 95,466 89,500 - - - Non Ad Valorem Taxes 46,585 44,651 26,000 262,175 253,112 280,000 - - - Payment in Lieu of Taxes 1,401,087 1,670,540 1,332,000 - - - - - - Severance Taxes 1,703,257 1,491,089 1,738,000 - - - - - - Penalties & Interest on Taxes 156,528 145,067 153,410 4 3 - 1 - - Rents & Royalties - - - 550,006 694,870 765,278 - - - User Fees - - - - - - - - - Land Sales Activites - - - 329,428 110,428 89,409 - - - Licenses & Permits 86,916 66,151 66,000 28,600 26,250 31,800 - - - Federal Revenues 192,441 203,084 150,080 - - - - - - State Revenues 3,569,772 2,258,439 2,466,307 113,238 57,323 108,900 3,885,080 4,304,877 5,328,029 Fines 55 55 - - - - - - - Interest Earnings (18,329) 54,211 58,177 483,957 541,859 370,625 510 (149) 2,000 Miscellaneous 19,229 441,375 14,500 21,393 17,284 1,529,000 - - - Use of Fund Balance - - - - - - - - - Sale of Bonds - - - - - - - 141,115 - Sale of Fixed Assets 182 - - - - - - - - TRANSFERS IN - - - 70,691 535,680 713,127 250,000 150,000 - TOTAL SOURCE OF FUNDS 7,189,639 6,406,702 6,201,324 14,020,465 13,789,559 15,337,066 5,294,317 6,629,270 7,836,597 EXPENDITURES General Government 4,513,356 3,721,740 3,698,353 - - - - - - Education 195,000 195,000 96,000 10,905,714 10,905,649 10,277,500 5,766,185 6,598,663 7,836,597 Health & Welfare 161,596 87,456 41,140 66,500 66,500 66,500 - - - Assessing 840,703 677,938 781,226 - - - - - - Community Development 919,303 777,637 957,070 - - - - - - Resource Management - - - 276,562 278,625 1,628,709 - - - KIB Buildings - - - 547,169 507,995 781,278 - - - Road Maintenance - - - 540,719 632,914 793,227 - - - Fire Districts - - - 400,841 448,564 1,275,127 - - - Public Safety 263,955 301,485 333,835 13,913 14,860 14,000 - - - Culture and Recreation 24,856 23,949 24,200 - - - - - - Economic Development 33,100 45,781 35,500 75,000 85,000 142,900 - - - Solid Waste - - - - - - - - - Capital Outlay - - - - - - - - - Non-Profit Funding 406,093 389,000 234,000 - - - - - - Other - - - - - - 6,604 - - TRANSFERS OUT 167,740 356,166 - 656,500 530,534 357,825 - - - TOTAL USE OF FUNDS 7,525,703 6,576,153 6,201,324 13,482,918 13,470,641 15,337,066 5,772,789 6,598,663 7,836,597 35 Capital Projects Funds Enterprise Funds TOTAL FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 Actual Estimated Budgeted Actual Estimated Budgeted Actual Estimated Budgeted 180,589$ 598,217$ 117,293$ -$ -$ -$ 13,428,132$ 14,120,967$ 14,180,138$ - - - - - - 104,074 95,466 89,500 - - - - - - 308,760 297,763 306,000 - - - - - - 1,401,087 1,670,540 1,332,000 - - - - - - 1,703,257 1,491,089 1,738,000 - - - 5,791 9,267 2,000 162,323 154,337 155,410 - - - 3,298,181 3,573,794 2,232,477 3,848,187 4,268,664 2,997,755 - - - 2,569,261 2,403,799 3,175,634 2,569,261 2,403,799 3,175,634 - - - - - - 329,428 110,428 89,409 - - - - - - 115,516 92,401 97,800 187,002 1,216,909 1,159,281 - - - 379,443 1,419,993 1,309,361 12,002,773 12,066,400 481,380 32,649 39,422 158,275 19,603,512 18,726,461 8,542,891 - - - - - - 55 55 - 413,433 53,066 598,080 80,825 252,180 212,583 960,395 901,166 1,241,465 - 309 - 810,738 19,988 1,848,057 851,361 478,956 3,391,557 - - - - - - - - - 25,087,432 17,000,000 12,639,868 141,032 141,033 - 25,228,464 17,282,148 12,639,868 - - - - - - 182 - 161,963 691,979 167,042 152,357 66,500 111,500 635,011 1,444,159 991,669 38,033,192 31,626,880 15,162,944 7,090,834 6,505,982 7,740,526 71,628,448 64,958,392 52,278,457 - - - - - - 4,513,356 3,721,740 3,698,353 - - - 1,486,619 1,507,013 1,683,183 18,353,518 19,206,325 19,893,280 - - - 1,763,637 2,040,325 2,253,841 1,991,733 2,194,280 2,361,481 - - - - - - 840,703 677,938 781,226 - - - - - - 919,303 777,637 957,070 - - - - - - 276,562 278,625 1,628,709 - - - - - - 547,169 507,995 781,278 - - - - - - 540,719 632,914 793,227 - - - - - - 400,841 448,564 1,275,127 - - - 33,961 30,417 35,000 311,829 346,762 382,835 - - - - - - 24,856 23,949 24,200 - - - - - - 108,100 130,781 178,400 - - - 2,468,060 4,651,983 3,768,502 2,468,060 4,651,983 3,768,502 53,154,863 50,562,635 12,557,190 - - - 53,154,863 50,562,635 12,557,190 - - - - - - 406,093 389,000 234,000 - - - - - - 6,604 - - - - - - - - 824,240 886,700 357,825 53,154,863 50,562,635 12,557,190 5,752,277 8,229,738 7,740,526 85,688,549 85,437,829 49,672,703 36 37 REVENUE SOURCES Fiscal Real Property Personal Property Total Mill Total Year Assessed Value Assessed Value Assessed Value Rate Tax Levy 2002 635,934,054 116,117,838 752,051,892 9.25 6,956,480 2003 642,995,612 117,456,245 760,451,857 9.25 7,034,180 2004 659,695,261 110,941,504 770,636,765 9.25 7,128,390 2005 678,427,713 105,481,537 783,909,250 10.25 8,035,070 2006 692,709,445 106,206,504 798,915,949 11.00 8,788,075 2007 710,848,299 94,833,515 805,681,814 10.50 8,459,659 2008 734,527,929 100,997,608 835,525,537 10.50 8,773,018 2009 765,152,958 105,617,604 870,770,562 10.50 9,143,091 2010 788,107,547 108,786,132 896,893,679 10.50 9,417,384 2011 875,787,940 113,091,185 988,879,125 10.50 10,383,231 2012 947,611,296 91,612,537 1,039,223,833 10.50 10,911,850 2013 984,146,580 101,821,700 1,085,968,280 10.75 11,674,159 2014 1,013,670,977 104,876,351 1,118,547,328 10.75 12,024,384 2015 1,044,081,107 108,022,642 1,152,103,748 10.75 12,385,115 2016 1,084,317,572 118,559,600 1,202,877,172 10.75 12,930,930 2017 1,169,223,198 143,116,200 1,312,339,398 10.75 14,107,649 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 State Revenue Sharing FY2017 Estimated 38 This page left intentionally blank. 39 GENERAL FUND General Fund Description The General Fund is used to account for all assets and liabilities of the Kodiak Island Borough except those particularly assigned for other purposes in another more specialized fund. It is the primary operating fund of a governmental unit. Much of the usual activities of a municipality are supported by the general fund. Examples are the purchase o f supplies and meeting operating expenditures. An example of a specialized fund, on the other hand, is the capital projects fund that accounts for financial resources used for the acquisition or construction of major capital facilities. The General Fund reports information on a modified accrual basis of accounting and current financial resources measurement focus. In other words, with a couple of exceptions, balance sheet reports cash and other financial resources (such as receivables) as assets and amounts owed that are expected to be paid off within a short time period as liabilities. 40 Revenue Sources and General Fund Estimates The largest source of revenue for the general fund is intergovernmental revenue. Property tax used to be the largest source of General Fund revenue but most of it was transferred to the school district. We have set up an education support fund in Special Revenue Funds which records the property taxes that will be passed on to the school district. GENERAL FUND REVENUE SUMMARY Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2014 Actual 2015 Actual 2016 Budget 2016 Actual 2017 Budget Property Tax 1,620,703$ 1,479,589$ 1,504,000$ 1,747,230$ 1,554,850$ Severance Tax 1,843,819 1,703,257 1,850,000 1,491,089 1,738,000 Licenses & Permits 82,713 86,916 66,000 66,151 66,000 Intergovernmental Revenues 3,064,764 3,762,213 2,647,677 2,461,523 2,616,387 Interest Earnings 152,229 138,199 205,000 199,277 211,587 Miscellaneous Revenues 14,328 19,466 20,500 441,430 14,500 Use of Fund Balance - - 921,631 - - Total 6,778,555$ 7,189,639$ 7,214,808$ 6,406,702$ 6,201,324$ General Fund Revenues Property Tax Severance Tax Licenses & Permits Intergovernmental Revenues Interest Earnings Miscellaneous Revenues Use of Fund Balance 41 PROPERTY TAXES Real and Personal Property Taxes. Alaska Statutes (AS) 29.45.010-29.45.500 gives municipalities the authority to levy a property tax. The Kodiak Island Borough’s tax revenue for fiscal year 2017 is based on the assessed valuation as of January 1, 2016. That value is estimated to be $1,312,339,398. - 200,000,000 400,000,000 600,000,000 800,000,000 1,000,000,000 1,200,000,000 1,400,000,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Assessed Values Real Property Personal Property The Borough has set the tax levy for real and personal property at .15 mills which will generate estimated property tax revenue of $196,850 with 90% being from real property and 10% from personal property. The current delinquency rate is 0.2% (two tenths of one percent). For budget purposes, the amount of tax generated by one (1) mill is $1,312,339. Penalty and interest on Taxes Receivable. AS 29.45.650 and KIB Code of Ordinances section 3.35.140 establishes the authority to apply penalties and interest on delinquent property taxes. KIB levies a penalty of 1 0% for late payments and interest at the rate of 12% per annum on past due accounts. The Borough does not recognize the receivable at the time penalties and interest are applied to the accounts; rather, it is recognized when the payment is made. Based on past collections, we estimate revenues at $153,410. PAYMENT IN LIEU OF TAXES PILT-Federal. Payments in Lieu of Taxes (PILT) are federal payments to local governments that help offset losses in property taxes due to nontaxable federal lands within their boundaries. PILT payments are made annually for tax-exempt Federal lands administered by the Bureau of Land Management, the National Park Service, the U.S. Fish and Wildlife Service (all agencies of the Interior Department), the U.S. Forest Service (part of the U.S. Department of Agriculture), and for Federal water projects and some military insta llations. Congress appropriates PILT payments each year. The BLM allocates payments according to a formula in the PILT Act that includes population, receipt-sharing payments, and the amount of Federal land within an affected borough. The estimated amount for FY2017 PILT revenue, $1,332,000, is $324,103 less than last year’s actual, based on estimated Federal reductions. 42 SEVERANCE TAXES The Kodiak Island Borough levies a tax on certain natural resources that are severed or harvested within the boundaries of the Borough. Currently the tax rate is the borough -wide mill levy, which is currently 10.75 mills (1.075%). The resources that we collect taxes on are grouped into three categories: 1) fish, 2) rock, sand and gravel (mining), and 3) timber (logging). Rock, Sand and Gravel Severance Tax. To estimate the value for rock and gravel, KIB looked at the construction industry. The main source of extraction for this category is rock. The rock is sold to construction companies for their building lots and road construction. Based on the revenues generated in fiscal years 2015 and 2016, the estimated revenue for fiscal year 2017 is $25,000. Timber Severance Tax. The estimated value for timber is $50,000, based on a projection of revenue received to date in the current fiscal year. It should be noted that in FY1997, we received $272,000 and the mill rate was only 9.25 mills. While we predict that logging severance tax should remain fairly constant through FY2017 we believe that logging operations on Kodiak Island will be much lower in FY2018. Fish Severance Tax. Budgeting for fish severance tax involves many factors. How many fish will be available for harvesting? What countries will be buying our fish? What will the price per pound be? What will the environmental issues be? Does the market prefer wild fish to farmed fish? Many of these variables are very difficult to predict. With these issues in mind, the Borough is budgeting fish tax for 2017 at $1,663,000. Overall, the FY2017 severance tax is estimated to be $1,738,000. - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Severance Taxes (FY 2017 Budgeted) Fish Mining Timber 43 LICENSES AND PERMITS Licenses and permits are revenues associated with the building industry. The largest portion of revenue in this category is building permits, which can be attributed to the low interest rates on home mortgages in rural areas throughout the State of Alaska. Per the Community Development Department, these revenues are budgeted at $66,000, based on FY2016 revenues. 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 Building Permit Revenue & Expenditures FY2016 estimated & FY2017 Budgeted Building Permit Revenue Building permit expenditures INTERGOVERNMENTAL REVENUES Federal Shared Revenues National Wildlife Refuge. The Revenue Sharing Act authorizes payments to local governments whose jurisdiction includes land being administered by the Fish and Wildlife Service (FWS). The payment that we receive is based on a percentage of the fair market value of lands that the FWS has acquired, the number of acres they hold, and a percentage of net receipts the FWS collected in their previous fiscal year. This payment is a form of payment in lieu of taxes, but the land owned by the FWS is not the same land owned by Fish and Wildlife that generates a portion of the PILT federal payment. The difference is that the land under the National Wildlife Refuge revenue was previously owned by private individuals and was taxable. The FWS purchased the land to add t o the Wildlife Refuge that they manage on Kodiak Island. From FY2011 to FY2016 these revenues varied from $173,767 to $205,518. We are budgeting revenues of $150,000 in FY2017. 44 State Revenues Energy Assistance (Revenue Sharing). The State of Alaska enacted an energy assistance program for FY2007, which was essentially revenue sharing. The amount of this “assistance” is determined by the State of Alaska. There is no formal calculation to determine the amount that will be given to the Borough each year. The Borough received $724,731 in FY2015 and $692,624 in FY2016. Based on State legislation, we are budgeting $477,182 for FY2017. Fish Tax Revenue Sharing. AS 43.75 and 43.77 authorizes the State to levy taxes on fisheries businesses. A portion of the tax is refunded to municipalities and boroughs. There are two types of fishery taxes. One is the Fisheries Business Tax (AS 43.75) and it levies the tax on businesses and persons who process or export fisheries resources from Alaska. The tax is based on the value paid to commercial fishers. The rate of the tax is based on the processing activity of the business. The processing activity is classified as either “established” or “developing” by the Alaska Department of Fish and Game. The rates are as follows: Established Developing Floating 5.0% Floating 3.0% Salmon Cannery 4.5% Shore-based 1.0% Shore-based 3.0% Fisheries businesses file with the State on a calendar year. Their tax returns are due by March 31 of the following year. From the taxes collected, the Department of Revenue distributes the taxes based on locale of the business. Municipalities will receive 50% of the tax collected from businesses within their jurisdiction. If the tax is collected within a city as well as a borough, the payment will be split equally between the borough and the city. For those business that operate outside a municipality or organized borough, 50% of those funds collected are shared though an allocation program administered by the Alaska Department of Community and Economic Development. The other fishery tax is the Fishery Resource Landing Tax (AS43.77), which is levied on processed fishery resources first landed in Alaska. The tax is based on the unprocessed value of the resource. This value is determined by multiplying a statewide average price per pound (based on Alaska Department of Fish and Game data) by the unprocessed weight. This tax is primarily collected from factory trawlers and floating processors which process fishery resources outside of the state’s 3-mile limit and bring their products to Alaska for transshipment. This tax is based on a calendar year and must be filed by March 31. The ra te is based on classification. The Alaska Department of Fish and Game determines whether the resource is “established” or “developing”. The rates are 3% for established resources and 1% for developing resources. The tax collected in this category is distributed in the same manner as the Fisheries Business Tax. Budgeting for this revenue is difficult. As with our severance tax on raw fish, there are many factors. We need to consider the number of fish available for harvesting, the market price of fish at the time of purchase, and environmental and market issues. However, we do not know all of the businesses filing with the State or the statistics of the tax collected outside the municipalities and unorganized boroughs. For budgeting purposes, we look at the prior year’s revenues and the factors that are known and budget accordingl y. This method estimates FY2017 fish tax revenue to be $1,550,000. 45 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 Raw Fish Tax (FY2017 Budgeted) INTEREST EARNINGS Interest Earned on Investments. KIB Code of Ordinances sections 3.04.01 through 3.04.030 establish the guidelines and responsibilities of the Finance Director in investment and treasury management matters. For efficiency, KIB has established a central treasury of pooled resources. In fiscal year 2017 the General Fund is expected to earn $58,177. This is in contrast to FY2008 when the General Fund earned $544,926 in investment earnings. This decline is due to both declining interest rates and less funds to invest. -100,000 0 100,000 200,000 300,000 400,000 500,000 600,000 Interest Earnings Last 10 Years FY2016 Estimated 46 MISCELLANEOUS REVENUE Miscellaneous Revenue. This category includes revenues generated from animal control, sale of copies, sale of computer data and other miscellaneous revenue. For fiscal year 2017, total miscellaneous revenue is budgeted at $14,500. FUND BALANCE General Fund Balance. It is the Borough’s goal to maintain a General Fund balance of $1 to $2 million. The following chart shows the fund balances for the last 10 years and the changes that took place. - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 Fund Balance Last ten Years We estimate the General Fund will have a fund balance of $3,285,781 at the end of FY2016. We have balanced the FY2017 budget without any use of fund balance. Our goal has been to keep our fund balance between one and two million dollars. Deposits in Local Banks Money on deposit in local banks is an indicator of the Borough’s economy. - 50,000 100,000 150,000 200,000 250,000 300,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Deposits in Local Banks in millions 47 GENERAL FUND REVENUE FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Property Tax Real Property 34,167 24,977 108,000 20,175 175,383 Personal Property (367) 6,939 12,000 11,865 21,467 TOTAL PROPERTY TAXES 33,801 31,916 120,000 32,039 196,850 Non Ad Valorem Taxes Boat Tax- over 5 tons 24,350 22,985 25,000 22,451 - Aircraft tax 21,400 23,600 25,000 22,200 26,000 TOTAL NON AD VALOREM TAXES 45,750 46,585 50,000 44,651 26,000 Payment in Lieu of Taxes PILT-Federal 1,501,969 1,370,176 1,300,000 1,630,517 1,300,000 PILT-Kodiak Island Housing 23,529 21,088 24,000 25,586 25,000 PILT- Alaska Housing 15,654 9,823 10,000 14,437 7,000 TOTAL PAYMENT IN LIEU OF TAXES 1,541,152 1,401,087 1,334,000 1,670,540 1,332,000 Severance Taxes Fish 1,715,496 1,550,706 1,750,000 1,395,610 1,663,000 Mining 32,309 49,440 25,000 3,064 25,000 Logging 96,014 103,111 75,000 92,416 50,000 TOTAL SEVERANCE TAXES 1,843,819 1,703,257 1,850,000 1,491,089 1,738,000 Penalties and Interest on Taxes Penalties and Interest 128,424 156,528 175,000 145,067 153,410 TOTAL PENALTIES AND INTEREST TAX 128,424 156,528 175,000 145,067 153,410 Licenses and Permits Annual Use Permit - - - - - Building Permits 59,661 52,355 40,000 38,177 40,000 Subdivision 7,900 8,525 6,000 5,710 6,000 Conditional Use Permit 1,025 2,900 1,000 2,750 1,000 Zoning Compliance Permit 5,728 8,460 10,000 6,475 10,000 Variance Fee 750 1,250 500 1,250 500 Zoning Change Fee 780 - - 1,100 - Electric Permit 3,332 3,391 4,000 3,709 4,000 Plumbing Permit 1,584 1,954 3,000 2,704 3,000 Planning & Zoning (P&Z) Review Fee 350 - 1,000 2,800 1,000 Dog License 1,253 1,365 - 1,477 - Site Plan Review 350 6,716 500 - 500 TOTAL LICENSES AND PERMITS 82,713 86,916 66,000 66,151 66,000 48 INTERGOVERNMENTAL REVENUES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Federal Shared Revenue National Wildlife Refuge 205,518 192,376 150,000 203,084 150,000 National Forest Fund - 65 2,400 - 80 TOTAL FEDERAL SHARED REVENUE 205,518 192,441 152,400 203,084 150,080 State Shared Revenues State Revenue Sharing 731,314 724,731 667,277 692,624 477,182 Raw Fish Tax 1,546,308 1,561,675 1,550,000 1,382,320 1,550,000 Raw Fish Tax- Off Shore 97,679 92,730 50,000 20,370 50,000 Telephone and Electric 15,792 17,206 20,000 16,987 20,000 Liquor License 220 322 - 53 - Cruise Ship Tax Sharing 4,600 - - - - PERS on Behalf Payment 463,333 1,173,108 208,000 146,085 369,125 TOTAL STATE SHARED REVENUES 2,859,246 3,569,772 2,495,277 2,258,439 2,466,307 TOTAL INTERGOVERNMENTAL 3,064,764 3,762,213 2,647,677 2,461,523 2,616,387 Fines Animal Control 83 55 - 55 - Zoning Violations - - - - - TOTAL FINES 83 55 - 55 - Interest Interest Earnings 63,548 27,300 30,000 72,077 58,177 Change in market value (39,744) (45,630) - (17,866) - TOTAL INTEREST 23,804 (18,329) 30,000 54,211 58,177 Miscellaneous-Classified Jury Duty 410 875 500 125 500 Sale of Copies 489 198 1,000 96 1,000 Sale of Maps 2,648 2,449 3,000 1,436 3,000 Fee-Dishonored Checks - 62 - 181 - Local Electric/Reimbursement 85 - - - - Other 9,436 15,645 10,000 434,765 10,000 Legal Fee Reimbursement - - - 4,772 - IBEW Reimb.- - 1,000 - - TOTAL MISC. CLASSIFIED 13,067 19,229 15,500 441,375 14,500 Use of Fund Balance - - 921,631 - - Transfers In - - - - - Sale of Fixed Assets 1,179 182 5,000 - - TOTAL REVENUES 6,778,555 7,189,639 7,214,808 6,406,702 6,201,324 49 SUMMARY OF GENERAL FUND EXPENDITURES BY DEPARTMENT FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Borough Assembly 183,791 159,142 195,554 149,658 162,123 Manager's Office 545,106 697,994 850,304 605,245 571,222 Clerk's Office 525,434 682,444 570,376 556,743 552,058 Legal Services 136,859 203,520 184,000 129,864 164,000 Finance 921,131 1,087,354 1,017,467 943,633 947,761 Information-Technology 1,013,959 1,164,224 1,047,744 930,200 915,880 Assessing 680,159 840,703 706,463 677,938 781,226 Engineering & Facilities 307,917 331,478 163,573 230,699 176,695 Community Development 666,289 919,303 808,262 777,637 957,070 Building Inspector 153,323 125,412 158,650 161,221 165,263 Economic Development 58,862 33,100 117,100 45,781 35,500 General Administration 180,936 187,201 222,100 175,696 208,614 Parks & Recreation 37,796 161,596 153,000 87,456 41,140 Emergency Preparedness 9,987 29,128 47,000 30,849 59,157 Animal Control 72,941 109,415 109,415 109,415 109,415 Education Culture & Recreation 24,925 24,856 20,200 23,949 24,200 Kodiak College & Libraries 195,000 195,000 195,000 195,000 96,000 Non-Profit Funding 397,400 406,093 390,000 389,000 234,000 Transfers Out 483,500 167,740 362,166 356,166 - TOTAL 6,595,316$ 7,525,703$ 7,318,374$ 6,576,153$ 6,201,324$ 50 SUMMARY OF GENERAL FUND EXPENDITURES BY FUNCTION GENERAL FUND EXPENDITURES BY FUNCTION FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget General Government 1,880,044$ 2,261,779$ 2,185,907$ 1,847,907$ 1,834,712$ Public Safety 236,251 263,955 315,065 301,485 333,835 Assessing 680,159 840,703 706,463 677,938 781,226 Finance/IT 1,935,090 2,251,578 2,065,211 1,873,833 1,863,641 Community Development 666,289 919,303 808,262 777,637 957,070 Other 713,983 820,645 875,300 741,186 430,840 Transfers Out 483,500 167,740 362,166 356,166 - TOTAL 6,595,316$ 7,525,703$ 7,318,374$ 6,576,153$ 6,201,324$ General Government 30% Public Safety 5% Assessing 13% Finance/MIS 30% Community Development 15% Other 7% 51 This page left intentionally blank 52 PROGRAM BUDGET SUMMARY BOROUGH MAYOR AND ASSEMBLY Program Description  Borough Mayor. Executive duties of the borough are vested in the mayor. The mayor is elected at-large by the qualified voters of the borough.  Borough Assembly. The legislative power of the borough is vested in the assembly which is otherwise known also as governing body. The assembly consists of seven members elected at large. The Assembly formally establishes borough policy by ordinance or resolution. STRATEGIC DIRECTION PER RESOLUTION NO. FY2016-32 1. OPTIMIZE THE EFFECTIVE USE OF COMMUNITY RESOURCES AND ASSETS FOR THE BENEFIT OF THE BOROUGH CITIZENS. a. Explore ways to collaborate with local governments to capitalize on community partnerships. b. Work in partnership with State and Federal Agencies. c. Develop a long-term solid waste plan. d. Encourage land use for the maximum benefit of Borough citizens • Develop land sale plans to maximize potential for our community’s quality of life. • Develop plans for utilization of borough land that achieves multiple land and housing options. • Collaborate with other land owners for land developmen t. • Review building and zoning codes to ensure they serve the best interest of the community. • Encourage options to meet the local need for affordable housing. 2. PROVIDE EFFICIENT, EFFECTIVE, AND CONSISTENT GOVERNMENT PROCESSES a. Promote a culture of public trust of elected officials, appointed officials, and staff. • Facilitate involvement of all citizens and multi-cultural engagement in civic activities. • Foster positive relationships with cities, service areas, tribes and rural communities within the borough. b. Develop clearly defined protocols that govern the relations between the Borough’s elected officials and staff. c. Explore the potential impacts of consolidation (legally defined in statutes). 3. PROMOTE FISCAL POLICIES THAT ENSURE STABILITY, GROWTH AND RESPONSIBLE GOVERNMENT a. Balance expenditures to revenues on an annual basis to ensure the health of our community. b. Foster public understanding of borough finances and operations. c. Develop a Borough-KIBSD multi-year fiscal plan. 4. FOSTER RESPONSIBLE ECONOMIC DEVELOPMENT THROUGHOUT THE BOROUGH. a. Develop economic development policies that promote a diverse economy and business development. b. Promote and advocate for a healthy and vibrant fisheries industry. c. Advocate for enhancement of local resources such as Kodiak based seafood and marine science and education opportunities, tourism, agriculture, mineral extraction, etc. Significant Budget Changes No significant budget changes. There was a reduction of $32,000 in the legislative budget. Reduction came from the following accounts: honorarium/amenities, food business lunch, Mayor and Assembly travel and per diem. 53 BOROUGH ASSEMBLY EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Personnel Services 32,000$ 32,100$ 31,200$ 30,000$ 26,400$ Fringe Benefits 7,799 10,567 5,474 4,212 3,523 Professional Services 67,000 70,082 75,000 72,346 75,000 Support Goods & Services 76,992 46,393 83,880 43,100 57,200 183,791$ 159,142$ 195,554$ 149,658$ 162,123$ PERFORMANCE INDICATORS FY 2014 Actual FY 2015 Actual FY 2016 Actual FY 2017 Projected Regular Assembly Meetings 21 22 21 17 Special Meetings 2 6 9 9 Joint Work Sessions 3 5 5 8 Work Sessions 24 27 31 25 SWAMC Conference Attendees 3 3 2 3 AML Conference Attendees 6 3 7 3 Ordinances 20 10 20 20 Resolutions 33 24 35 30 Contracts 38 34 54 35 Other Action items 84 80 115 80 54 PROGRAM BUDGET SUMMARY MANAGER’S OFFICE Program Description The Assembly of the Kodiak Island Borough appoints the Manager. The Manager provides administrative guidance to KIB assembly policy decisions, and serves as the chief administrative officer of the Kodiak Island Borough. Goals  Assist the Assembly with policy implementation and administer quality, cost-effective services to the citizens of the Kodiak Island Borough.  Promote the building of a strong sense of community on our “island community.”  Promote a culture of public trust of elected officials, appoint ed officials and Borough staff. Objectives for 2016-2017  Monitor the effectiveness of all Borough operations and exercise custodianship of Borough property.  Provide the Assembly with administrative support necessary to develop and implement Assembly strategic policy.  Execute the annual budget and Capital Improvement Program.  Interact with members of other community entities such as second class cities, tribal governments and native corporations to demonstrate a partnership in resolving issues that affect all island communities such as government-to-government concerns, economic development, educational facilities, etc.  Direct staff to work with the land management committee to address the need to provide affordable land and/or affordable housing opportunities. Significant Budget Changes No significant changes for FY2017. 55 MANAGER'S OFFICE EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Personnel Services 291,161$ 350,995$ 472,923$ 377,968$ 322,381$ Fringe Benefits 246,079 323,163 333,994 192,673 216,929 Professional Services - - 1,200 - 2,500 Support Goods & Services 37,867 40,836 74,187 66,604 61,412 Allocated to Other Funds (30,000) (17,000) (32,000) (32,000) (32,000) 545,106$ 697,994$ 850,304$ 605,245$ 571,222$ Personnel Number of Employees Position:FY 2014 FY 2015 FY 2016 FY 2017 Borough Manager 1 1 1 1 Deputy Manager 0 0 0 0 Human Resources Manager 0 0 0 0 Grant Writer/Special Projects Support 1 1 1 1 Executive Assistant 1 1 1 1 TOTAL 3 3 3 3 56 PROGRAM BUDGET SUMMARY CLERK’S OFFICE Program Description The Borough Clerks Office provides the professional link between the citizens, the local governing bodies, and agencies of government at other levels. The Clerk’s Office provides administrative support to the Mayor and Assembly. Duties performed by this office and guided by KIBC 2.50.020 and Alaska Statutes 29.20.380. Some of the major and mandated duties of this office are the following:  Administer all Borough Elections. The Clerk also prepares petitions and verifies signatures for initiatives, referendum, and recall elections.  Manages Borough Records for active and inactive files, develops retention schedules and procedures for inventory, storage, and destruction of all borough records as necessary.  Assures that public records, including ordinances, resolutions, rules, regulations, and codes are available for public inspection as required by law.  Publishes and gives notice of meetings to the Borough assembly members and the public of the time, place, and location of the meetings.  Prepare agendas and assembly packets; provide for codification of ordinances; keeps a journal of all borough assembly meetings; and, takes oaths, affirmation, and acknowledgements as necessary.  Serves as parliamentarian to the borough assembly and advises other borough boards on parliamentary procedures.  Has custody of the official municipal seal and attests deeds, and other documents, such as ordinances, resolutions, minutes, and contracts, by signing and affixing the Borough seal. Goals:  Provide efficient administrative support to the governing body and other boards assigned to the Clerk’s Office.  Administer elections according to local, state, and federal statutes.  Provide policy guidance, direction, and assistance to the Mayo r and Assembly members.  Continue implementation of the next phases of Records and Information Management. Objectives for 2016-2017  Provide the highest quality of service the Mayor, Assembly, Borough staff, and its citizens with integrity and teamwork.  Perform all duties as required by KIBC 2.50.020 and Alaska Statutes 29.20.380.  Maximize training for staff and develop a succession plan for the Office of the Clerk.  Continue to develop an effective records and information management system for the Borough. Update retention schedules, records policy manual, and create indexes and templates for scanning, including digitizing of backlogged scanning in multiple departments.  Improve and ensure a fair electoral process. Continue to administer borough elections in an accountable and certifiable manner in accordance with election laws.  Work with Borough staff to increase involvement of citizens in governance. Significant Budget Changes  Increase of $1,000 to overtime budget.  Reduction of $5,000 to records management.  Reduction of $3,000 to continuing education. 57 CLERK'S OFFICE EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Personnel Services 228,331$ 269,371$ 260,063$ 251,908$ 244,974$ Fringe Benefits 151,655 262,491 151,129 147,184 177,764 Support Goods & Services 145,449 150,582 159,184 157,651 129,320 Capital Outlay (Furniture)- - - - - 525,434$ 682,444$ 570,376$ 556,743$ 552,058$ PERSONNEL Number of Employees Position:FY 2014 FY 2015 FY 2016 FY 2017 Borough Clerk 1 1 1 1 Borough Deputy Clerk 1 1 1 1 Assistant Clerk 1 1 1 1 TOTAL 3 3 3 3 PERFORMANCE INDICATORS FY 2014 Actual FY 2015 Actual FY 2016 Actual FY 2017 Projected Ordinances 20 10 20 18 Resolutions 33 23 35 30 Minutes (pages)146 138 180 150 Regular Assembly Meetings 21 22 21 20 Special Meetings 2 6 9 2 Joint Work Sessions 3 5 5 5 Work Sessions 24 27 31 24 Other Meetings Attended 24 24 71 24 Plats Filed 23 16 9 20 Liquor Licenses Reviewed 20 13 19 20 Gaming Licenses Reviewed 14 20 11 10 Borough Newspage Publications 52 28 35 50 Elections 1 1 1 1 Absentee Voters-municipal 205 205 234 150 Registered Voters-municipal 9,100 9,100 9,585 9,250 Code Supplements 2 2 2 2 Archival Records Destroyed (cubic feet)150 125 116 100 Archival Records Added (cubic feet)90 62 59 80 Contract 38 34 54 30 Other Action Items 84 99 115 80 58 PROGRAM BUDGET SUMMARY LEGAL SERVICES Program Description The Borough attorneys provide legal counsel and advice to the Mayor and Assembly, the Manager and all departments of the Borough. The attorneys are responsible for representing the Borough in lawsuits brought by or against the Borough in state or federal courts. Goals  Protect the Borough from financial loss and actual or potential legal action.  Ensure that all Borough operations are conducted in accordance with the law so that legal liabilities do not arise.  Provide legal advice to elected officials and staff members. Objectives for 2016-2017  Defend lawsuits brought against the Borough.  Provide legal advice and counsel and answer legal questions raised by the Mayor, the Assembly, and the Manager.  Assist departments in resolving legal problems as they arise before they can create serious difficulty. Significant Budget Changes There are no significant budget changes in FY2017. 59 LEGAL SERVICES EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Legal Fees 131,876$ 192,111$ 160,000$ 115,713$ 140,000$ Support Goods & Services 4,984 11,408 24,000 14,152 24,000 TOTAL 136,859$ 203,520$ 184,000$ 129,864$ 164,000$ 60 PROGRAM BUDGET SUMMARY FINANCE Program Description The Borough Finance Department has different areas of responsibility, many of them quite dissimilar. The department’s main function is to properly budget, account for, and report promptly and correctly all revenues and expenditures of the Kodiak Island Borough and its subsidiary and/or affiliated governmental entities. All budgeting accounting and reporting efforts are to be annually updated to include all new pronouncements by our promulgating policy bodies including GASB, AICPA, etc. The Finance Department also includes the Borough’s Management Information Services department, exhibited on the following pages. Other functions include cash management, collections on all receivables including taxes, issuance and refinancing of debt instruments (bond sales), risk management, and other related functions. Goals  Provide all Borough departments and citizens with accurate and timely financial records.  Provide reliable and competent accounting services to all Borough departments.  Provide for high returns on investments while minimizing risk and maintaining needed liquidity.  Ensure that Borough accounts receivable and payable are settled in a timely fashion. Objectives for 2016-2017  Maintain the Certificate of Achievement Award for Financial Reporting.  Maintain the award for a Distinguished Budgetary Presentation by the Government Finance Officers Association (GFOA).  Maintain the Popular Annual Financial Reporting Award.  Distribute the Short Report (monthly financial statements) within fifteen working days of the end of the month.  Distribute the Comprehensive Annual Financial Report (CAFR) by November 30.  Continue our high rate of tax collections and all other receivables. Significant Budget Changes There are no significant Budget changes for FY2017. Previous Year’s Accomplishments  Again last year the Kodiak Island Borough was the only Alaskan government to win all three GFOA awards. These are for our budget, our annual report, and our popular report. 61 FINANCE EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Personnel Services 470,516$ 508,167$ 542,155$ 540,301$ 481,004$ Fringe Benefits 364,776 514,901 368,912 326,810 371,638 Professional Services - - 10,000 63 10,000 Support Goods & Services 104,838 103,286 127,400 107,460 128,119 Capital Outlay - - - - - Allocated to other funds (19,000) (39,000) (31,000) (31,000) (43,000) 921,131$ 1,087,354$ 1,017,467$ 943,633$ 947,761$ Number of Employees FY 2014 FY 2015 FY 2016 FY 2017 Finance Director 1 1 1 1 Accountant 2 2 2 2 Accounting Technician 2 2 2 2 Clerk/Cashier 1 1 1 1 Secretary III 1 1 1 1 TOTAL 7 7 7 7 FY 2014 Actual FY 2015 Actual FY 2016 Actual FY 2017 Estimated Monthly Financials 12 12 12 12 Annual Report (CAFR)1 1 1 1 Personnel Turnover 1 1 2 0 Total Tax Levy $14,424,260 $15,009,700 $15,261,029 $16,642,693 Collected With In Year of Levy $14,250,305 $14,749,222 $15,032,113 - Collected in Subsequent Year 129,649 126,394 - - Percent Of Taxes Collected 99.6%99.1%98.5%- Certificate Of Achievement Yes Yes Yes Yes Distinguished Budgetary Presentation Yes Yes Yes Yes Popular Annual Financial Reporting Award Yes Yes Yes Yes Personnel PERFORMANCE INDICATORS 62 PROGRAM BUDGET SUMMARY MANAGEMENT INFORMATION SERVICES Program Description The Information Technology Department provides information technology services to the Borough. Areas of responsibility include:  Developing and maintaining the management information system (MIS).  Developing information processing policies and procedures.  Ensuring the security of all electronic data generated by information technology.  Evaluation and selection of operating systems, hardware and applications software.  Maintaining and operating the Borough’s computer data center.  Providing reliable printing services for Borough employees.  Designing and maintaining telecommunication and data networks.  Researching computer systems or methods of using technology that could impro ve cost-effectiveness or increase productivity.  Reviewing and approving information technology equipment acquisitions, external services and technology contracts for the Borough.  Reporting on the performance of the preceding areas of responsibility to seni or management on a periodic basis. Goals  Continue to provide the best and most cost-effective information technology services to the Borough.  Maximize system availability.  Maintain a high level of customer satisfaction.  Optimize the Borough’s information technology systems through the use of computer resources where applicable.  Increase productivity through teamwork, sharing information, and pooling resources. Objectives for 2016-2017  Provide computer system security training to employees to reduce exposure to internet based threats such as viruses, malware or ransomware.  Continue to implement a culture of security awareness with Borough computing resources.  Replace one-third of the Borough’s PC’s.  Bring the public web interface online for the assessment software.  Migrate the Borough Assembly’s email to Office 365 cloud-hosted solution.  Upgrade server and datacenter software to current versions.  Implement Windows 10 and Office 2016 on desktop computers.  Extend technology to allow better village participation with the Borough Assembly. Significant Budget Changes  We have no significant budget changes this year. 63 INFORMATION-TECHNOLOGY SERVICES EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Personnel Services 321,402$ 391,054$ 383,062$ 365,349$ 297,507$ Fringe Benefits 228,457 366,218 219,492 211,634 203,123 Contracted Services 41,494 16,832 25,000 17,980 25,000 Support Goods & Services 460,054 392,252 384,190 328,564 346,250 Capital Outlay 18,552 53,869 62,000 32,673 70,000 Allocated to other funds (56,000) (56,000) (26,000) (26,000) (26,000) 1,013,959$ 1,164,224$ 1,047,744$ 930,200$ 915,880$ Number of Employees Position:FY 2014 FY 2015 FY 2016 FY 2017 MIS Supervisor 1 1 1 1 Programmer/Analyst 1 1 1 1 PC Technician 1 1 1 1 1 GIS Analyst 1 1 1 0 TOTAL 4 4 4 3 FY 2014 Actual FY 2015 Actual FY 2016 Estimated FY 2017 Projected AS/400 Users 10 10 2 0 Network Users 70 70 70 70 Network Devices 260 270 270 275 Network Servers 14 6 7 6 Virtual Servers 60 80 55 60 Network Storage Used (Terabytes)20 30 25 36 PC Applications Supported 40 45 45 50 Server-Based Applications supported 52 55 55 55 AS/400 Applications Supported 6 2 0 0 PERSONNEL PERFORMANCE INDICATORS 64 PROGRAM BUDGET SUMMARY ASSESSING Program Description The primary function of the assessing department is the annual valuation and assessment of ap proximately 7,800 real and 400 personal property accounts at their full and true value. The real property function requires re- inspection programs be phased cyclically, the annual appraisal of new construction and additions, and includes the audit, discovery, and compliance programs. This function includes maintaining assessment standards, ownership records, property description data, and other related clerical support. The personal property function is accomplished though the filling and auditing of business personal property rendit ions, and related discovery and compliance activities. The personal property appraisals, as of 2017, will also include field inspections of properties and field documentation of machinery and equipment condition. Goals  Strive to provide a comprehensive taxation and assessment program that is fair and equitable for all citizens.  Administer tax exemption programs that meet local, state and federal requirements. Objectives for 2016-2017  Re-inspect the following road system properties: All properties within the boundaries of the City of Kodiak, both residential and commercial.  Complete a comprehensive re-evaluation of personal property assessment practices begun in 2014 to make them more effective, efficient, and current with industry standards.  Audit selected business personal property accounts for completeness and accuracy.  Continue the efforts begun in 2010 to set up a web server which will make the PACS database available to the public and Borough staff.  Continue the reappraisal of all exempt properties to update values to current day.  Review current cost models and update them to the current market as needed  Finalize the re-inspection of all remote properties not yet inspected, includ ing: miscellaneous remote properties not easily accessible by road or boat. Significant Budget Changes The largest changes in the FY2017 budget is the significant lower budget figure for education as all appraisers have successfully been accredited and only recertification classes are necessary. 65 ASSESSING EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Personnel Services 348,441$ 388,507$ 393,726$ 376,211$ 414,524$ Fringe Benefits 266,012 395,010 246,007 252,222 302,977 Professional Services - - 1,500 - 1,500 Support Goods & Services 78,706 69,686 68,230 52,505 66,225 Capital Outlay - - - - - Allocated to other funds (13,000) (12,500) (3,000) (3,000) (4,000) 680,159$ 840,703$ 706,463$ 677,938$ 781,226$ Number of Employees Position:FY 2014 FY 2015 FY 2016 FY 2017 Assessor 1 1 1 1 Appraiser 1 1 1 1 Assessment Clerk II 0 1 1 1 Assessment Clerk I 1 0 1 1 Appraiser Technician 2 2 1 1 TOTAL 5 5 5 5 ASSESSED VALUE FY 2014 Actual FY 2015 Actual FY 2016 Estimated FY 2017 Projected Real Property (net after all exemptions)$1,029,239,311 $1,068,647,102 $1,084,317,572 $1,169,223,198 Personal Property 102,237,300 113,251,900 118,559,600 143,116,200 Total Assessed Value $1,131,476,611 $1,181,899,002 $1,202,877,172 $1,312,339,398 CHANGE IN VALUE FROM PRIOR YEAR Real Property 45,092,731$ 39,407,791$ 15,670,470$ 84,905,626$ Personal Property 415,600$ 11,014,600$ 5,307,700$ 24,556,600$ Total Value Increase From Prior Year $45,508,331 $50,422,391 $20,978,170 $109,462,226 NUMBER OF PARCELS Real Property Accounts 7,870 7,832 7,830 7,866 Personal Property Accounts 874 945 916 371 Tax Accounts per Employee 1,749 1,755 1,749 1,647 ASSESSED VALUE PER EMPLOYEE $226,295,322 $236,379,800 $240,575,434 $262,467,880 PERSONNEL PERFORMANCE INDICATORS 66 PROGRAM BUDGET SUMMARY ENGINEERING AND FACILITIES Program Description The Engineering and Facilities Department is responsible for the safe operation and maintenance of all Borough - owned grounds and facilities, coordination and administration of capital construction projects, and administration of the service area road maintenance contracts. The department is also responsible for the operation of the KIB landfill that includes the disposal of garbage, metals, construction debris, and the potential recycling of these materials to prolong the use of the existing landfill. In addition, the department provides efficient operation of the Kodiak Fisheries Research Center and other Borough-owned buildings. Goals  Design, operate, and maintain Kodiak Island Borough facilities in a safe, healthy, and responsible manner with attractive, comfortable and efficient environments.  Continue to seek funding sources to increase efficiencies for energy and indoor air quality for Borough owned facilities.  Ensure that all Borough buildings are brought into compliance with the American s with Disabilities Act during renovations. Objectives for 2016-2017  Provide departmental management support to the construction and design teams to deliver the Kodiak High School Addition and Renovation Project to meet Education Specifications outlined by KIBSD and meet budget and schedule constraints.  Provide departmental management support to deliver the Anton Larsen Dock project to meet the needs of the program outlined by the program operator and identified in the Certificate of Need issued by the State of Alaska and meet schedule and budget constraints.  Provide departmental management support to the construction and design teams to deliver the Landfill Lateral Expansion Project to meet the future solid waste disposal needs of citizens and businesses located on the Kodiak Road System including the US Coast Guard Base while meeting budget and schedule constraints.  Continue work on deferred projects listed on the Renewal and Replacement schedule.  Continue daily maintenance and repair of facilities for which KIB has direct maintenance responsibilities.  Provide departmental support and guidance for all capital projects.  Provide staff support for various advisory boards as requested or obligated.  Continue to use the plan for energy savings (boilers, HVAC, lighting, etc.) and other cost control measures that can be achieved on a benefit-cost basis.  Identify items necessary to bring Borough facilities into ADA compliance. Significant Budget Changes There are no significant budget changes for FY2017. 67 ENGINEERING AND FACILITIES EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Personnel Services 154,498$ 122,545$ 68,972$ 103,397$ 62,684$ Fringe Benefits 156,703 186,302 41,501 87,361 47,527 Professional Services - 1,800 1,000 - - Support Goods & Services 44,716 44,831 52,100 39,942 66,484 Capital Outlay - - - - - Allocated to other funds (48,000) (24,000) - - - 307,917$ 331,478$ 163,573$ 230,699$ 176,695$ Number of Employees Position:FY 2014 FY 2015 FY 2016 FY 2017 Engineering and Facilities Director 1 1 1 1 Project Manager/Inspector 1 1 1 1 Project Assistant 1 1 1 1 Secretary III 1 1 1 1 Maintenance Coordinator 0.8 0 0 0 Maintenance Mechanic 1 1 1 1 Receptionist/Interpretive Specialist 0.5 0.5 0.5 0.5 TOTAL 6.3 5.5 5.5 5.5 PERSONNEL 68 PROGRAM BUDGET SUMMARY COMMUNITY DEVELOPMENT DEPARTMENT Program Description CDD is responsible for comprehensive (long-range) planning, zoning compliance, and development services for the Borough. One of the important responsibilities of the CDD is to provide guidance to the public regarding zoning and land subdivision regulations. CDD also provides support and professional and technical expertise to the Planning and Zoning Commission (P&Z), the Borough Assembly, and the Parks and Recreation Committee. Additional responsibilities of the CDD include administrative support to the Loc al Emergency Planning Committee (LEPC) and participation in the Incident Command System (ICS) for responses to natural and man -made disasters. The CDD is responsible for land use Code Enforcement in the Borough and coordinates with the Facilities Department to enforce solid waste disposal requirements. Goals  Perform the functions assigned to the department in an efficient and effective manner.  Implement land use policies, regulations, and Strategic Plan goals established by the Assembly.  Provide accurate and factual data to a wide range of residents to promote well-informed decision making.  Educate and engage the public in land use regulations as well as any potential changes. Objectives for FY2017  Completion of the periodic update of the Hazard Mitigation Plan.  Manage trail improvements projects for Saltery Cove and Island Lake trails.  Digitize the historical property files and permit information .  Work with the Resource Manager, the Borough Lands Committee, and P&Z to identify tracts of Borough- owned land suitable for residential development. • Participate in development of master plans or subarea plans for tracts identified • Provide planning assistance on Comprehensive Plan amendments, Rezones, and Platting actions as necessary to facilitate sale and development of selected tracts.  Continue to work with P&Z to identify and prioritize changes to Title 17 that will address identified problems in the code, eliminate unnecessary barriers to development, and increase opportunities for economic development and use of land. Significant Budget Changes There are no significant budget changes for FY2017. 69 COMMUNITY DEVELOPMENT EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Personnel Services 338,301$ 399,854$ 359,743$ 354,797$ 441,684$ Fringe Benefits 205,703 402,549 227,719 235,706 324,689 Professional Services 37,211 21,428 30,000 9,719 10,000 Legal Fees - - - 1,093 - Support Goods & Services 85,574 95,702 191,300 176,822 181,197 Allocated to Projects (500) (229) (500) (500) (500) 666,289$ 919,303$ 808,262$ 777,637$ 957,070$ Number of Employees Position:FY 2014 FY 2015 FY 2016 FY 2017 Community Development Director 1 1 1 1 Associate Planner/Enforcement 1 1 1 1 Associate Planner 1 1 1 1 Secretary III 1 1 1 1 Enforcement Officer 1 1 1 1 GIS Analyst 0 0 0 1 TOTAL 5 5 5 6 FY 2014 Actual FY 2015 Actual FY 2016 Actual FY 2017 Projected Zoning Compliance Permits Issued B-69 C-92 101 183 161 100 Planning & Zoning Commission Meetings 29 31 25 20 Complaints Responded to 30 489 44 20 Parks and Rec Meetings 8 7 12 10 Other public meetings (LEPC)25 6 3 15 PERSONNEL PERFORMANCE INDICATORS 70 PROGRAM BUDGET SUMMARY BUILDING INSPECTION Program Description The Kodiak Island Borough Building Inspection Program ensures compliance with adopted building codes and related zoning codes. The Borough, by means of Memorandums of Agreement Contracts, uses the City of Kodiak for administration of the Borough’s Building Inspection Program. Inspections performed on residential and commercial building constructions include structural, mechanical, electrical, and plumbing inspections. Plan reviews for large construction projects are conducted by the City of Kodiak building inspection staff or City of Kodiak’s professional plan review service before a building permit is issued. Building height, setbacks, and parking requirements are some of the zoning requirements checked in the field by the building inspection staff. Goals  Ensure that every new construction project in the Kodiak Island Borough complies with applicable, adopted building codes and fire codes.  Ensure that unsafe structures are abated.  Review annually the Memorandum of Agreement between the City of Kodiak and the Kodiak Island Borough for the provision of building inspection services within the borough road system. Objectives for 2016-2017  Maintain inspection proficiency though training, reference materials, field inspections, and contact with the International Code Council.  Complete commercial plan reviews and permit issuance within 30 days of submittal, and residential plan reviews and permit issuance within seven days of submittal, provided a complete set of plans are submitted for review.  Provide information to the public and contractors about the most current editions of the building, mechanical electrical and plumbing codes.  Maintain delegated plan review authority from the State of Alaska, Department of Public Safety, and Division of Fire Prevention.  Maintain AHFC building inspections program approval.  Maintain and improve the ISO (Insurance Service Office) inspection program rating. Significant Budget Changes There are no significant budget changes for FY2017. 71 BUILDING INSPECTOR EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Contracted Services 141,761$ 113,849$ 145,000$ 147,490$ 145,000$ Support Goods & Services 11,563 11,563 13,650 13,731 20,263 153,323$ 125,412$ 158,650$ 161,221$ 165,263$ FY 2014 Actual FY 2015 Actual FY 2016 Actual FY 2017 Projected Commercial Building Permits 44 56 56 50 Residential Bulding Permits 111 142 160 120 Borough Plumbing Permits 48 62 74 95 Borough Electrical Permits 124 120 110 130 PERFORMANCE INDICATORS - 72 PROGRAM BUDGET SUMMARY ECONOMIC DEVELOPMENT Program Description The function of the Economic Development Program is to provide the Assembly with the opportunity to pursue the most feasible economic development opportunities that will be of benefit to the entire community. Goals  Determine and establish the best organizational function for promoting economic development (economic development authority, association, corporation, etc.)  Engage citizens in understanding the value of establishing an economic development entity  Encourage economic development by identifying training opportunities that may be available to community members.  Promote economic diversification. Objectives for FY2017  Provide funding for Assembly members to attend economic development training.  Enhance the economic viability of the community by pursuing activities that may contribute to an increased tax base, as well as provide for better public amenities and services.  Promote the value of having community leaders at the table when fish policy that affects all island communities is being discussed  Support different community entities in collaborating and creating partnerships in order to strengthen opportunities for economic development. Significant Budget Changes There are no significant budget changes for FY2017. 73 ECONOMIC DEVELOPMENT EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Personnel -$ -$ $ 35,000 -$ $ - Employee Benefits - - - - - Professional Services 21,429 30,000 54,000 43,899 35,000 Contributions 36,833 2,500 1,500 - - Support Goods & Services 600 600 26,600 1,882 500 58,862$ 33,100$ 117,100$ 45,781$ 35,500$ 74 PROGRAM BUDGET SUMMARY GENERAL ADMINISTRATION Program Description The function of the General Administration Department is to provide services to the Kodiak Island Borough that cannot be directly identified within any specific fund or program. Goals  Provide for the financial audit of the Borough as well as for postage, liability insurance, bad debt expense, and other miscellaneous costs. Objectives for 2016-2017  Maintain the Employee of the Quarter and Employee of the Year incentive awards programs.  Maintain the service award program (service pins) for employees to promote and reward longevity.  Maintain the Drug-Free Workplace program, including training, for all employees to comply with federal requirements.  Maintain the Blood Borne Pathogens Training program for all employees to comply with Occupational Safety and Health Administration (OSHA) standards.  Provide Hepatitis B vaccinations to all employees in accordance with OSHA Blood Borne Pathogens program.  Provide for an annual audit process to comply with federal and state laws.  Maintain a Risk Management Program and liability insurance on the building, including administration of a safety program to prevent liability.  Provide continuing education opportunities to department staff in order to increase efficiency and maintain/increase knowledge of applicable state and federal la ws. Significant Budget Changes There are no significant budget changes for FY2017. 75 GENERAL ADMINISTRATION EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Personnel Services 728$ 1,192$ 500$ 815$ -$ Fringe Benefits 2,677 1,906 - 2,382 - Audit Expense 101,706 92,403 120,000 101,818 110,000 Contracted Services - 6,158 - - - Contributions - - - 4,877 - Support Goods & Services 75,825 85,543 101,600 65,804 98,614 180,936$ 187,201$ 222,100$ 175,696$ 208,614$ 76 PROGRAM BUDGET SUMMARY PARKS AND RECREATION Program Description The major function of this program is to operate and maintain Borough parks, trails, trailheads and provide informational and educational materials associated with Borough recreational activities. Money is also included to construct any improvements approved during the year. Goals  Use community involvement to assist in the development of improvements of KIB parks.  Develop current plan for renewal of Borough parks.  Provide the Borough communities with safe and enjoyable parks, trails and open space.  Limit liability with removal of unsafe equipment. Objectives for 2016-2017  Repair damaged park equipment, brushing, stabilizing and hardening trails, garbage removal and cleanup.  Replace equipment causing liability. Significant Budget Changes There are no significant budget changes for FY2017. 77 PARKS AND RECREATION EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Personnel Services 8,577 16,382 23,000$ 13,357 16,000$ Fringe Benefits 3,758 6,487 - 6,203 7,640 Contracted Services - 111,190 100,000 41,049 - Support Goods & Services 25,461 27,537 30,000 26,846 17,500 37,796$ 161,596 153,000$ 87,456 41,140$ 78 PROGRAM BUDGET SUMMARY EMERGENCY PREPAREDNESS Program Description Alaska Statute 26.23.060 (b) requires Alaska political subdivisions to be responsible for disaster preparedness and coordination of response. This fund was initially intended to provide funds for electricity and maintenance associated with the Siren Alert Warning Systems (SAWS), which are also known as Tsunami sirens. Over the years this fund has evolved to include emergency expenses and staff salaries when associated with a disaster event or to provide supplemental funding when needed to support staff emergency preparedness training and participation in annual exercises conducted in conjunction with the City of Kodiak, USCG, Providence Kodiak I sland Medical Center, the State of Alaska and others. Goals  Operate and maintain the community SAWS.  Staff participation in an annual exercise with our emergency management partners.  Provide sufficient resources for interim disaster funding for a potential hazard that may occur during the fiscal year.  Participate in four (4) quarterly drills of the Kodiak Incident Management Team (IMT).  Ensure the availability of qualified staff to fill critical IMT positions.  Assist remote communities in their emergency preparedness efforts.  Update the Kodiak Area Emergency Operations Plan and Kodiak Island Borough Hazard Mitigation Plan. Objectives for 2016-2017  Maintain and replace sirens as needed.  Exercise the Kodiak Area Emergency Operations Plan one time per year eith er during a table top exercise, a local response, or a statewide exercise.  Provide Incident Command System (ICS) training opportunities to staff to increase the availability of qualified personnel to fill critical IMT positions.  Assist remote communities with completion and publication of the new small community Emergency Operations Plan template.  Coordinate with the Department of Homeland Security and Emergency Management (DHS&EM) to conduct hazard vulnerability assessments in remote communities.  Assist remote communities with updates to their respective Hazard Mitigation Plan Annexes.  Coordinate with the DHS&EM to arrange ICS training opportunities for remote communities. Significant Budget Changes  No significant budget changes in FY2017. 79 EMERGENCY PREPAREDNESS EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Personnel Services $ 1,958 $ 12,158 $ 15,500 $ 3,592 $ 16,459 Fringe Benefits 1,802 8,685 - 1,487 11,999 Contracted Services - 360 10,000 11,375 13,199 Support Goods & Services 6,227 7,924 21,500 14,395 17,500 Capital Outlay - - - - - 9,987$ 29,128$ 47,000$ 30,849$ 59,157$ 80 PROGRAM BUDGET SUMMARY ANIMAL CONTROL Program Description The Kodiak Island Borough contracts with the City of Kodiak to provide for Animal Control Services. The goal of the program is to have this officer patrol all neighborhoods to address loose dogs and cats, investigate nuisance animals and to operate a shelter to house them. A contract is entered into with the city which provides the Patrol Officer, the vehicle, and the shelter (which is contracted to the Humane Society of Kodiak 1). This arrangement works for 99.9% of the cases, but does not work for large animals such as horses. The Borough has contracted in the past with the Kodiak State Fair and Rodeo Association to hold large animals until any issue is resolved. This position and the Borough’s Enforcement Officer will work closely on some cases. Goals  Perform periodic patrols outside the City of Kodiak to impound loose dogs, cats and horses in the borough.  Respond to citizen complaints outside the City of Kodiak regarding animal nuisances, dangerous animals and animal cruelty.  Encourage compliance with borough pet licensing program and leash requirements where and when applicable.  Ensure that impounded animals are current on rabies vaccinations before being released back to the public.  Provide a humane shelter for impounded animals until they can be re-united with their owners.  Provide a humane shelter for surrendered or abandoned animals until they can be put up for adoption. Objectives for 2016-2017  Maintain statistics for animal nuisance citations, impoundments and sheltering that are generated from the borough jurisdiction. Significant Budget Changes No significant changes for FY2017. 1 The Humane Society of Kodiak is a 501C3 that is locally organized and is not affiliated with the Humane Society of the United States. 81 ANIMAL CONTROL EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Animal Control 72,941$ 109,415$ 109,415$ 109,415$ 109,415$ 72,941$ 109,415$ 109,415$ 109,415$ 109,415$ 82 PROGRAM BUDGET SUMMARY EDUCATION, CULTURE, AND RECREATION Program Description This program consists of funding for non-profit agencies that provide educational, cultural, and recreational opportunities for the citizens of the Kodiak Island Borough. Goals  Provide financial assistance to non-profit agencies to ensure their financial viability to provide educational cultural and recreational opportunities for the residents of the Borough. Objectives for 2016-2017  Continue to fund a variety of educational, cultural, and recreational non -profit agencies.  Seek high-quality, wide-appeal programs for the benefit of Borough residents. Significant Budget Changes There are no significant budget changes for FY2017. 83 EDUCATION, CULTURE & RECREATION EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget North Star PTA 4,725 4,656 - 4,649 4,000 Karluk IRA Council 20,200 20,200 20,200 19,300 20,200 24,925$ 24,856$ 20,200$ 23,949$ 24,200$ 84 PROGRAM BUDGET SUMMARY CONTRIBUTION TO KODIAK COLLEGE AND LIBRARIES Program Description This department helps support education in the Borough. Goals  Provide educational opportunities through the Associate’s Degree level of schooling and provide resources for more materials in our public libraries. Objectives for 2016-2017  Contribute $84,000 to Kodiak College.  Contribute $12,000 to local public libraries. Significant Budget Changes These expenditures were previously included in the Education, Culture and Recreation Department. Because these contributions support public entities rather than non-profit organizations, it was felt that the contributions to the local college and public libraries would be better represented in a separate department. 85 KODIAK COLLEGE & LIBRARIES EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Kodiak College 180,000$ 180,000$ 180,000$ 180,000$ 84,000$ Libraries 15,000 15,000 15,000 15,000 12,000 195,000$ 195,000$ 195,000$ 195,000$ 96,000$ 86 PROGRAM BUDGET SUMMARY NON-PROFIT FUNDING Program Description This department has been established to account for grants awarded to nonprofit entities in the community to assist them in providing their community services. Significant Budget Changes There are no significant budget changes for FY2017. 87 Non Profit Funding EXPENDITURES Health & Social Services FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Safe Harbor 42,394$ 25,000$ 25,000$ 25,000$ -$ Humane Society 5,000 - 4,250 4,250 - Women's Resource & Crisis Center 60,000 60,000 60,000 60,000 - American Red Cross 7,101 7,101 7,900 7,900 - Kodiak Baptist Mission 41,310 45,120 45,120 45,120 - Special Olympics 7,500 - 6,000 6,000 - Health Care Foundation 25,000 20,000 20,000 20,000 - Hospice of Kodiak 10,000 20,000 11,000 11,000 - Senior Citizen Support 35,000 45,000 35,000 35,000 - Hope Community Resources 5,200 5,500 5,050 5,050 - Salvation Army 10,000 - 8,000 8,000 - Brother Francis Shelter 54,000 70,000 56,180 56,180 - Kodiak Area Transit 15,000 25,000 15,000 15,000 - Threshold Services 9,195 - 8,000 8,000 - Funding/ Non-Profits - - 1,000 - 234,000 Sub-total 326,700$ 322,721$ 307,500$ 306,500$ 234,000$ Education, Culture & Recreation Alutiiq Museum & Archaeological Repository 2,500 19,041 10,000 10,000 - KMXT Public Radio 10,000 10,000 8,100 8,100 - Historical Society 6,500 9,945 10,000 10,000 - Kodiak Maritime Museum - - 10,000 10,000 - Kodiak Arts Council 16,500 16,500 15,350 15,350 - Head Start 9,000 - 7,200 7,200 - Island Trails Network - 9,586 - - - KANA Family Center 12,000 6,000 10,500 10,500 - Kodiak Soil & Water Conservation 6,900 7,300 4,250 4,250 - Girl Scouts 2,200 - 1,000 1,000 - Kodiak Little League - - - - - Kodiak Teen Court 5,100 - 5,100 5,100 - Marion Center, Inc. - 5,000 1,000 1,000 - Kodiak Audubon Society - - - - - Funding/Non-Profits - - - - - Sub-total 70,700$ 83,372$ 82,500$ 82,500$ -$ Funds for Distribution - - - - 234,000$ Total 397,400$ 406,093$ 390,000$ 389,000$ 234,000$ 88 PROGRAM BUDGET SUMMARY TRANSFERS Program Description Money is transferred from the General Fund to other Funds of the Kodiak Island Borough. There are no specific goals and objectives listed for this department; they are delineated in the fund receiving the transfer. Significant Budget Changes There are no transfers budgeted for in FY2017. 89 TRANSFERS EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Operating Transfers Education Support Fund 220,000 - 345,600 345,600 - Land Sales - 14,961 - - - Buildings and Grounds - 21,690 - - - Fire District #1 - 16,040 - - - Debt Service 250,000 - - - - Transfers to Fund 270 - .10,566 10,566 - Transfers to Special Projects - 29,192 - - - Solid Waste 13,500 64,383 6,000 - - KFRC - 21,474 - - TRANSFERS 483,500 167,740 362,166$ 356,166 -$ 90 This page is intentionally left blank 91 SPECIAL REVENUE FUNDS Special Revenue Fund Description Special revenue funds are used to account and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. Many of our special revenue funds levy taxes to support a specific function. Examples would be fire protection and road service districts. The Facilities Fund generates its revenue through investment earnings and spends these earnings on debt service, property insurance, and capital projects. These revenues can be used for no other purpose. 92 REVENUE SOURCES AND SPECIAL REVENUE FUND ESTIMATES The overall revenue budget for Special Revenue Funds is $15,337,066. FY17 Special Revenue Funds Income Property Taxes Bed Tax Motor vehicle tax Licenses &Permits Rents & Royalties Land Sales Activities State Grants Penalties & Interest PROPERTY TAX Real and Personal Property Taxes. Alaska Statutes (AS) 29.45.010-29.45.500. We have several service areas that levy a mill rate and collect taxes on the property located within their boundaries. The following table shows these service areas, the net taxable value of the property within their boundaries, and their mill rate. The net taxable value is the total assessed value of property less any applicable exemptions. The property taxes budgeted for the service areas are usually slightly less than actual amounts because service area boards tend to be conservative in their revenue projections. Generally 90% of property taxes are from real property and 10% from personal property. Overall, the current Borough-wide delinquency rate is approximately .20%. Area Wide Net Taxable Value Mill Levy Kodiak Island Borough School District 1,312,339,398 7.62 Service Districts Womens Bay Road Service Area 81,460,420 2.50 Road Service Area No.1 335,706,295 1.50 Monashka Bay Road Service Area 25,773,509 2.50 Bay View Road Service Area 9,504,300 1.50 Fire Protection Area No. 1 393,593,515 1.50 Womens Bay Fire Department 81,460,420 1.25 KIB Airport Fire Protection District 12,292,372 1.25 Woodland Acres Street Light Area 51,851,324 0.10 Trinity lslands Street Light Area 12,228,900 0.20 Mission Lake Tide Gate Area 6,146,900 1.00 93 Land Sales. When the Borough was organized in 1964, it was given 56,000 acres by the State of Alaska. Periodically, the Borough sells this land. Two objectives are met by these land sales: the Borough receives revenue; and land is put into private ownership. Typically, this land is sold at public auction. Penalties and Interest. The majority of this revenue is from interest earned on investments in t he Facilities Fund. It is estimated that the interest earned on the Facilities Fund will be $357,825. The estimated amount of interest earned on all special revenue funds is $370,625. The interest budgeted is conservative and based on economic trends. Tourism Development (Bed Tax). KIB 3.55 Transient Accommodations Tax authorizes the Borough to collect taxes on overnight accommodations provided within the Kodiak Island Borough’s boundaries. Cities that are within the Borough and have their own bed tax, and businesses within those areas, are exempt from collecting on the Borough’s behalf. We are budgeting $89,500 for fiscal year 2017. We collected $95,466 in FY2016 and $104,074 in FY2015. Beginning in FY2014 cruise ship tax sharing revenues has been deposited into this fund. We believe that the tourism industry will continue to grow. Facilities Fund. In December 1995, the Kodiak Island Borough entered into an agreement with the Exxon Valdez Oil Spill Trustee Council (EVOSTC) to sell the Borough’s rights on Shuyak Island to the State of Alaska. The proceeds of the sale established the Facilities Fund. This fund received its final payment from EVOSTC in October 2002. At the end of FY2016 the Facilities Fund has earned $19,869,081 on interest and has spent $16,690,049 on capital projects, building insurance, and debt service. The interest earned on these funds can be used for upgrades, maintenance and repair of existing Borough buildings, Borough building insurance, and payment on general obligation bonds used for construction of Borough facilities. The Borough is budgeting $275,325 for renewal and replacement projects in FY2017. INTERGOVERNMENTAL REVENUE State Grants. Special Revenue funded with grant monies: Local Emergency Planning Committee. NON AD VALOREM TAXES Motor Vehicle Tax. AS 28.10.431 allows the Division of Motor Vehicles to collect property tax on motor vehicles on behalf of municipalities and boroughs. The property tax is a flat rate based on the type of vehicle and the year of the vehicle. The tax is collected along with the biannual registration fee and remitted to the Borough on a monthly basis. This method of collection was created in anticipation of reducing the delinquency rate for personal property taxes and improves collection of taxes on vehicles. Based on prior year collections the revenues from this source are budgeted at $280,000. All of these revenues go into the Education Support Fund. RENTS AND ROYALTIES Office Rent. The Borough charges rent for office space to the Borough departments and outside agencies that have offices within the Borough building. For fiscal year 2017, the Borough is charging an annual rate of $2.20 per square foot to the City of Kodiak and $1.85 per square foot to all other entities, which equates to $746,278 in rental revenues. Gravel Sales. The Kodiak Island Borough has leased four parcels of land for gravel extraction. The lease requires that a royalty be paid on the amount of gravel extracted. The revenue that we expect to receive in fiscal year 2017, $5,000, is based on the estimates and averages of gravel extracted in past years. The royalty rate is $2.00 per cubic yard. 94 SPECIAL REVENUE FUND RECAP Special Revenue Funds Budget Summary Education Support Land Sales Buildings & Grounds LEPC Womens Bay Service Area Service Area No. 1 Service Area No. 2 Monashka Bay Service Area Bay View Rd. Service Area Beginning Fund Balance (14,046)$ 381,900$ 558,612$ (18,338)$ 175,395$ 409,072$ 5,865$ 90,785$ 14,300$ Revenues Property Taxes 9,997,500 - - - 190,000 388,000 - 60,000 15,257 Bed Tax - - - - - - - - - Motor Vehicle Tax 280,000 - - - - - - - - Licenses &Permits - 4,800 - - 27,000 - - - - Rents & Royalties - 5,000 746,278 - - - - - - Land Sales Activities - 89,409 - - - - - - - State Revenues - 12,000 30,000 14,000 - - - - - Penalties & Interest - 2,000 5,000 - - - 100 - - Miscellaneous - 1,515,500 - - - 100,000 - - - - Transfers In - - - - - - - - - Total Revenues & Transfers In 10,277,500 1,628,709 781,278 14,000 217,000 488,000 100 60,000 15,257 Total Available Funds Expenditures Education 10,277,500 - - - - - - - - Resource Management - 1,628,709 - - - - - - - KIB Buildings - - 781,278 - - - - - - LEPC - - - 14,000 - - - - - Road Maintenance - - - - 217,000 488,000 100 60,000 15,257 Public Safety - - - - - - - - - Economic Development - - - - - - - - - Transfers Out - - - - - - Total Use of Funds 10,277,500 1,628,709 781,278 14,000 217,000 488,000 100 60,000 15,257 Est. Funds Available 6/30/17 (14,046)$ 381,900$ 558,612$ (18,338)$ 175,395$ 409,072$ 5,865$ 90,785$ 14,300$ 95 Fire Protection Area No. 1 Womens Bay Fire Dept. KIB Airport Fire Protection District Woodland Acres Street Light Area Trinity Islands Street Light Area Mission Lake Tide Gate Trinity Islands Paving Facilities Fund Tourism Developm ent Fuller Trust TOTAL 798,703$ 534,714$ 37,212$ 30,002$ 26,991$ 48,379$ -$ 39,554,921$ 219,550$ 134,007$ 42,988,023$ 582,500 99,000 14,500 4,940 2,330 5,400 - - - - 11,359,427 - - - - - - - - 89,500 - 89,500 - - - - - - - - - - 280,000 - - - - - - - - - - 31,800 - 26,000 - - - - - - - - 777,278 - - - - - - - - - - 89,409 - - - - - - - - 52,900 - 108,900 - 1,000 500 200 - - - 357,825 500 3,500 370,625 451,627 100,000 - - - - - - - 63,000 2,230,127 - - - - - - - - - - - 1,034,127 226,000 15,000 5,140 2,330 5,400 - 357,825 142,900 66,500 15,337,066 - - - - - - - - - - 10,277,500 - - - - - - - - - - 1,628,709 - - - - - - - - - - 781,278 - - - - - - - - - - 14,000 - - - - - - - - 780,357 1,034,127 226,000 15,000 5,140 2,330 5,400 - - - - 1,287,997 - - - - - - - - 142,900 142,900 - - - - - - - 357,825 - 66,500 424,325 1,034,127 226,000 15,000 5,140 2,330 5,400 - 357,825 142,900 66,500 15,337,066 798,703$ 534,714$ 37,212$ 30,002$ 26,991$ 48,379$ -$ 39,554,921$ 219,550$ 134,007$ 42,988,023$ 96 PROGRAM BUDGET SUMMARY EDUCATION SUPPORT Program Description The Education Support fund encompasses the transfer of state-required local funding to the Kodiak Island Borough School District for operational costs. This program includes the purchase of liability and property insurance, funding the annual audit, snow removal, mental health services and an annual appropriation. Goals  Provide adequate funding to the Kodiak Island Borough School District to ensure that high -quality education will be provided to all children living in the Kodiak Island Borough, Objectives for 2016-2017  Identify a school facility maintenance list  Provide a painting schedule that addresses required exterior maintenance for all buildings. Significant Budget Changes There are no significant budget changes in FY2017. 2300 2350 2400 2450 2500 2550 2600 2650 2700 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Number of Students Last Ten Years 97 EDUCATION SUPPORT REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Real Property Tax 9,003,276$ 9,707,963$ 9,126,000$ 9,103,596$ 8,909,480$ Personal Property Tax 879,491 1,013,965 1,014,000 1,002,581 1,088,020 Moter Vehicle Tax 253,230 262,175 280,000 253,112 280,000 Transfers In 330,000 - 485,600 485,600 - Total 10,465,996$ 10,984,103$ 10,905,600$ 10,844,890$ 10,277,500$ Expenditures Contracted Services 381,350$ 381,350$ 400,000$ 400,000$ 400,000$ Audit Expense 53,216 48,020 45,000 32,788 45,000 Contributions - - - - 96,000 Liability Insurance 154,068 127,786 150,000 137,351 140,000 Property Insurance 137,581 145,004 185,000 144,116 160,000 Bad Debts Expense - 114 - 49 - Snow Removal/Sanding 42,776 16,200 70,000 15,847 70,000 Repairs/Maintenance - 12,943 - 21,260 - Transfers to B&G - - 198,124 - - Transfers to KIBSD 9,881,230 10,174,298 9,857,476 10,154,238 9,366,500 10,650,220$ 10,905,714$ 10,905,600$ 10,905,649$ 10,277,500$ $8,000,000 $8,500,000 $9,000,000 $9,500,000 $10,000,000 $10,500,000 $11,000,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Borough's Cost of Education 98 PROGRAM BUDGET SUMMARY RESOURCE MANAGEMENT Program Description The Borough’s land and resource base is a multi-million dollar asset. It should be viewed in the context of a “land trust” with the citizens of the Borough as the beneficiaries. KIB received 56,500 acres from the State of Alaska by organizing as a Borough. Another 15,000 acres has been acquired from native corporations and the federal government (watershed and school sites). The value of KIB’s land and resource base is estimated to be between $70 and $100 million. The borough takes a passive management approach to managing most of these lands, which means that they are not managed intensively on a day -to-day basis. This method costs the public very little compared to the value of the asset. The level of management for other Borough lands, particularly those on the road system, is determined by public demands on the properties or readying it for sale and revenue generation. Goals  Manage Borough lands for the maximum benefit of Borough residents.  Provide decision makers with the tools and information to make informed decisions on the allocation, use and development of Borough lands and resources.  Continue to review and implement land sale strategies that are in balance with the real estate market.  Facilitate the transfer of developable public lands to the private sector in a cost -effective manner.  Manage leases to maximize public benefit.  Oversee the Salvage Timber Sale Contract for burned timber on Borough land near Chiniak. Objectives for 2016-2017  Conduct a land sale of Borough owned parcels that are ready for sale  Coordinate with the Community Development Department to contribute to and facilitate the master planning process for Tract R2, Killarney Hills Subdivision.  Work with the Borough Lands Committee to determine other land acquisitions, disposal and other management issues.  Coordinate with other governmental entities and non-profit organizations to identify opportunities to address affordable housing issues through the use of borough owned lands.  Plan for the opening of an identified gravel extraction site in the Salonie Creek drainage.  Ensure that the Salvage Timber Sale Contract provisions are successfully implemented and the project closed out properly. Significant Budget Changes The Salvage Timber Sale Contract and preparation of a planned land sale are expected to generate significant income and expenditures of a onetime nature during FY2017. 99 RESOURCE MANAGEMENT REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Annual Use Permit 2,250$ 1,000$ 1,000$ 1,250$ 4,800$ PERS on Behalf Payment - 28,536 4,093 3,920 12,000 Interest Earnings (2,646) 2,364 - 3,427 2,000 Gravel Sales 34,765 4,307 7,000 4,307 5,000 Principal Payments 353,885 289,036 24,400 82,715 54,409 Interest Payments 2,399 40,308 29,650 27,713 35,000 Fees/Penalties - 84 - - - Miscellaneous 140 90 100 (248) 1,515,500 Use of Fund Balance - - 178,479 - - Transfers In - 14,961 - - - 390,792$ 380,686$ 244,722$ 123,084$ 1,628,709$ Expenditures Personnel Services 170,863$ 153,601$ 101,858$ 98,623$ 121,290$ Employee Benefits 87,349 65,039 52,114 49,392 72,709 Contracted Services 27,837 11,200 - 61,466 475,000 Support Goods & Services 54,427 46,722 90,750 69,144 959,710 Operating Transfers - - 27,600 27,600 - 340,477$ 276,562$ 272,322$ 306,225$ 1,628,709$ PERSONNEL Position:FY 2014 FY 2015 FY 2016 FY 2017 Resource Manager 1 1 1 1 100 PROGRAM BUDGET SUMMARY BUILDING AND GROUNDS FUND Program Description This program funds the operation and maintenance of Borough-owned buildings, parking lots, parks, and public grounds. Specifically, this includes snow removal, lawn maintenance, park maintenance, and general building and grounds maintenance. It also includes rental of Borough -owned buildings. Goals  Provide adequate annual maintenance to Borough-owned buildings, parks, and other Borough facilities in a safe manner to prevent liability issues.  Provide funding for snow removal and parking lot maintenance around all Borough facilities, including school buildings. Objectives for 2016-2017  Create a checklist for the review of KIB building and grounds. Significant Budget Changes There are no significant budget changes in FY2017. 101 BUILDINGS AND GROUNDS REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues PERS on Behalf Payment -$ 30,659$ 7,416$ 3,790$ 30,000$ Interest Earnings 2,937 1,558 - 4,466 5,000 Rents & Royalties-KIB 300,972 300,971 326,430 326,921 374,110 City of Kodiak 90,922 90,922 90,920 122,674 124,766 KIBSD 128,827 128,827 - 209,006 221,232 Borough Building Annex 16,478 11,378 16,470 17,662 16,470 Land Sale Fund - - 10,500 - 9,700 Miscellaneous 481 122 - 120 - Use of Fund Balance - - 87,133 - - Transfers In 18,000 39,690 216,124 18,000 - TOTAL 558,616$ 604,127$ 754,993$ 702,640$ 781,278$ Expenditures Borough Building 480,366$ 496,230$ 557,857$ 448,663$ 709,778$ KIB Mental Health Center 3,538 19,394 25,000 5,768 16,500 School Bldg Major Repairs 24,655 25,011 137,436 44,364 55,000 Chiniak School 1,876 - - - - Various Borough Buildings 1,226 6,322 10,000 9,162 - Project Office Expenses (1,355) 213 7,700 39 - Long Term Care Facility - 16,272 - - - TOTAL 510,305$ 563,441$ 737,993$ 507,995$ 781,278$ 102 PROGRAM BUDGET SUMMARY BUILDING AND GROUNDS FUND- BOROUGH BUILDING Program Description The Borough Building provides administrative office space for Borough government and City of Kodiak government. It is also the site of Assembly Chambers and is the community’s Emergency Response Center during disasters. Goals  Provide adequate lawn care, snow removal, and general routine maintenance in an effort to provide a safe environment and pleasant appearance.  Work towards funding for the R&R project for this facility to ensure a safe environment for all employees. Objectives for 2016-2017  Meet with the Assembly to discuss funding sources for R&R  Provide maintenance to the air handling and boiler systems and controls.  Maintain adequate level of lawn maintenance.  Maintain adequate level of snow/ice removal.  Provide adequate routine maintenance of building (paint, roof cleaning etc.). Significant Budget Changes There are no significant budget changes in FY2017. 103 BOROUGH BUILDING EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Expenditures Personnel Services 168,076$ 136,044$ 148,896$ 149,052$ 139,837$ Fringe Benefits 119,125 151,326 99,561 94,244 108,762 Contracted Services - - 8,000 7,556 8,000 Support Goods & Services 193,164 206,919 274,900 197,810 442,179 Capital Outlay - 1,940 26,500 - 11,000 480,366$ 496,230$ 557,857$ 448,663$ 709,778$ 104 PROGRAM BUDGET SUMMARY BUILDING AND GROUNDS FUND-MENTAL HEALTH CENTER Program Description The Kodiak Island Borough apartments accommodate a variety of needs including rehabilitation housing, therapy programs, and administration offices for the Providence Kodiak Island Counseling Center. Goals  Provide annual major maintenance services to ensure a safe, usable environment. Objectives for 2016-2017  Provide for owner-responsible maintenance. Significant Budget Changes There are no significant budget changes in FY2017. 105 MENTAL HEALTH CENTER EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Expenditures Personnel Services 49$ 424$ -$ 1,299$ -$ Fringe Beneftis 44 166 - 857 - Contracted Services - - 5,000 - - Support Goods & Services 3,444 18,804 20,000 3,613 16,500 3,538$ 19,394$ 25,000$ 5,768$ 16,500$ 106 PROGRAM BUDGET SUMMARY BUILDING AND GROUNDS FUND-SCHOOL BUILDINGS MAJOR REPAIRS Program Description This program provides funding for major repairs to the Borough owned school buildings. Repairs in this category exceed the $10,000 limit for which KIB is responsible in accordance with the current in-kind agreement. Objectives for 2016-2017  Provide financial back-up for unforeseen large repair projects.  Provide DDC control maintenance on all the older school buildings that have not been upgraded. Significant Budget Changes There are no significant budget changes in FY2017. 107 SCHOOL BUILDING MAJOR REPAIR EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Expenditures Personnel Services -$ -$ -$ 123$ -$ Employee Benefits - - - 119 - Contracted Services - - 25,000 17,637 25,000 Insurance and Bonding 56 78 - 261 - Repairs & Maintenance 24,599 24,933 30,000 26,225 30,000 Contingencies - - 82,436 - - 24,655$ 25,011$ 137,436$ 44,364$ 55,000$ 108 PROGRAM BUDGET SUMMARY CHINIAK SCHOOL Program Description This program provides funding for the maintenance, operation, and utility costs of the Chiniak School property including the public water system when under KIB control, and when major maintenance projects that may arise. Objectives for 2016-2017  No projects anticipated. Significant Budget Changes Maintenance on this building has been taken over by the School District . 109 CHINIAK SCHOOL EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Expenditures Personnel Services 1,380$ -$ -$ -$ -$ Fringe Benefits 496 - - - - Support Goods & Services - - - - - Repair & Maintenance - - - - - Operating Transfers - - - - - 1,876$ -$ -$ -$ -$ 110 PROGRAM BUDGET SUMMARY BUILDING AND GROUNDS FUND-VARIOUS BOROUGH BUILDINGS Program Description This program funds the operation and maintenance of various smaller owned Borough buildings, such as Chiniak Tsunami Center, Egan Way Cottages, and Red Cross Building.  Provide adequate annual maintenance to these facilities to prevent liability issues.  Provide funding for a limited amount of snow removal and parking lot maintenance. Objectives for 2016-2017  Create a check list for the annual inspections of each of these facilities to provide for proper funding for projects identified in these inspections.  Review the major systems of each of these facilities to be able to produce a renewal and replacement schedule to ensure funding is available when the systems are in need of replacement. Significant Budget Changes There are no significant budget changes in FY2017. 111 BLDG & GROUNDS-VARIOUS BOROUGH BUILDINGS EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Expenditures Support Goods & Services 1,226$ 2,322$ 10,000$ 9,162$ -$ Capital Outlay - 4,000 - - - 1,226$ 6,322$ 10,000$ 9,162$ -$ 112 PROGRAM BUDGET SUMMARY Project Office Program Description The Engineering and Facilities Projects Division is responsible for managing KIB capital construction projects from concept through construction completion. The division works with end-users, design teams, consultants, funding agencies, and construction contractors to deliver projects in compliance with program, budget, schedule, code and legal requirements. The Projects Division provides staff support, coordination, and administration of the Architectural Review Board. The project office also works on other non-capital projects funded by the Engineering and Facilities budget. Goals  Encourage community involvement to ensure projects that meet the needs of the community.  Provide management support for the KHS Addition and Renovation Project.  Provide management support for the Landfill Lateral Expansion Project.  Provide management for all the School Bonded projects.  Provide management of the Tsunami Siren upgrades.  Procure design consultants and construction contractors, and provide management support for Renewal and Replacement projects.  Provide management of all other non-capital projects funded by the Engineering and Facilities Department. Objectives for 2016-2017  Continue to provide opportunities for community involvement on all projects through th e Architectural Review Committee and through community meetings if applicable.  Administer and guide construction of KHS Addition and Renovation Project.  Close-out Phase III and complete the Landfill Lateral Expansion Project.  Administer the Peterson Boiler and control upgrades Project  Administer the East Elementary Roof Project  Administer the Main Gym Floor Replacement  Administer the Peterson Flooring and Asbestos Removal Project. Significant Budget Changes There are no significant budget changes in FY2017. 113 PROJECT OFFICE EXPENSES EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Expenditures Personnel Services -$ -$ 500$ -$ -$ Fringe Benefits (1,355) - - 39 - Support Goods & Services - 213 6,200 - - Capital Projects - - 1,000 - - (1,355)$ 213$ 7,700$ 39$ -$ 114 PROGRAM BUDGET SUMMARY BUILDING AND GROUNDS FUND-LONG TERM CARE FACILITY Program Description The Long Term Care facility is a borough owned facility operated by Providence Health & Services. This fund provides for expenses related to ownership of the facility. Goals  Provide for funding for necessary owner related expenses. Objectives for 2016-2017  Provide for owner-responsible insurance and maintenance. Significant Budget Changes There are no significant budget changes for FY2017. 115 BLDG & GROUNDS-LONG TERM CARE FACILITY EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Expenditures Support Goods & Services -$ 16,272$ -$ -$ -$ Capital Outlay - - - - - -$ 16,272$ -$ -$ -$ 116 PROGRAM BUDGET SUMMARY LOCAL EMERGENCY PLANNING COMMITTEE Program Description The Local Emergency Planning Committee (LEPC) of the Kodiak Island Borough has been established pursuant to federal and state laws. LEPCs are required by federal law to perform the following duties:  Establish procedures for receiving and processing requests from the public for information about hazardous materials in the region;  Prepare and periodically review the local emergency operations plan;  Evaluate the need for resources necessary to develop, implement, and exercise the emergency operations plan and submit recommendations to local governments; and  Serve as an advisory committee to local government with respect to emergency planning, training, and response. Goals  Continue to locally implement the requirements of SARA Title III (also known as the Federal Community Right-To-Know Program).  Develop and implement a comprehensive training program for emergency responders in the region.  Provide designated staff support for the LEPC and region-wide emergency response planning programs.  Facilitate region-wide emergency preparedness outreach efforts to better prepare residents in the event of a local disaster. Objectives for 2016-2017  Maintain a library of Tier II hazardous and toxic chemical storage facility reports.  Annual publication of hazardous and toxic chemical storage facility community right -to-know advertisements in the Kodiak Daily Mirror.  Implement improved region-wide emergency response planning and training programs.  Implement the Kodiak Emergency Operations Plan update.  Facilitate emergency preparedness information booths at the Kodiak Crabfest and Bayside, Womens Bay, and City of Kodiak Fire Department open house events.  Provide Kodiak Area Emergency Preparedness Guides in English, Tagalog, and Spanish to various businesses, government offices, and the USCG base for dispersion to Kodiak residents and visitors. Significant Budget Changes This program is funded by a grant from the State of Alaska Department of Homeland Security and Emergency Management. The grant award for FY2017 is $13,756, which is $587 less than was awarded in FY2016. 117 LEPC REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues LEPC Grant 13,430$ 13,913$ 12,000$ 14,343$ 14,000$ PERS on Behalf Payment - - - - - 13,430$ 13,913$ 12,000$ 14,343$ 14,000$ Expenditures Personnel Services 9,464$ 6,768$ 11,000$ 6,812$ 10,000$ Fringe Benefits 4,608 3,228 - 4,551 - Contracted Services - - - - - Support Goods & Services 415 3,917 1,000 3,497 4,000 14,487$ 13,913$ 12,000$ 14,860$ 14,000$ 118 PROGRAM BUDGET SUMMARY WOMENS BAY ROAD SERVICE AREA Program Description The Women’s Bay Road Service Area provides maintenance to roads within the service area, including snow removal, ice control, culvert and drainage ditch repair and maintenance, as well as asphalt pavement repair. Goals  Provide safe, well drained and maintained road surfaces, and timely management of snow and ice within budgetary constraints. Objectives for 2016-2017  Continue improving and maintaining drainage  Continue improving and maintaining pave road surfaces  Identify and replace failed culverts  Develop Asphalt Repair project list and implement maintenance. Project List  Bells Flats Road dust control in conjunction with BEI  Noch Drive ditching and topping  Chiniak Drive ditching and topping  Womens Bay Drive ditching and topping  Replace/install missing and damaged road and traffic signage  Install culvert markers Significant Budget Changes There are no significant budget changes in FY2017. 119 WOMENS BAY ROAD SERVICE REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Property Taxes 183,730$ 189,925$ 183,500$ 191,715$ 190,000$ Penalties/Interest 0 2 - 0 - Annual Use Permits 27,600 27,600 25,000 27,600 27,000 Interest Earnings 1,530 873 - 1,226 - PERS on Behalf Payment - - - - - Operating Transfers In - - - - - 212,860$ 218,400$ 208,500$ 220,541$ 217,000$ Expenditures Personnel Services 6$ 505$ 1,000$ 361$ 1,000$ Fringe Benefits 2 357 1,200 274 - Contracted Services - - - - - Snow Removal/Sanding 48,926 18,191 60,000 17,188 60,000 Repairs & Maintenance 51,753 149,289 80,000 150,971 90,000 Grading/Ditching 44,270 25,824 35,000 39,067 40,000 Support Goods & Services 337 451 31,300 435 26,000 145,294$ 194,616$ 208,500$ 208,295$ 217,000$ PERFORMANCE INDICATORS Number of Miles 12 12 12 12 12 Road Service Cost per Mile 12,108$ 16,218$ 17,375$ 17,358$ 18,083$ 120 PROGRAM BUDGET SUMMARY SERVICE AREA No. 1 Program Description Service Area No. 1 provides maintenance service to roads within the district, including snow removal, ditching and grading. Service Area No.1 is comprised of Tax Code Areas (TCAs) 2 and 7. Goals  Provide Grading & Snow Removal for Service District Roads. Objectives for 2016-2017  Place Calcium chloride for dust control on all gravel roads and sweep edges of all paved roads  Resurface with new D-1 gravel on approximately 20% of service district gravel roads  Reduce depth of ditches to correct safety hazards on Mallard Way  Install new ditches and culverts on part of Woodland Drive to accommodate drainage, eliminate road surface erosion and correct Safety Hazards.  Continue with Design & Engineering of drainage plan for Shahafka Circle along with drainage easement acquisition.  Continue with ditch cleaning and sign replacement as needed. Significant Budget Changes There are no significant budget changes in FY2017. 121 SERVICE AREA No. 1 REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Property Taxes 388,416$ 375,649$ 377,000$ 386,094$ 388,000$ Penalties & Interest 0 1 - 1 - PERS on Behalf Payment - - - - - Interest Earnings 4,774 2,321 - 3,447 - Use of Fund Balance - - 100,000 - 100,000 393,190$ 377,970$ 477,000$ 389,542$ 488,000$ Expenditures Personnel Services 6,038$ 5,618$ 8,800$ 6,868$ 8,800$ Fringe Benefits 1,464 971 2,900 1,848 2,900 Snow Removal/Sanding 73,000 29,198 200,000 10,114 200,000 Repairs & Maintenance 307,566 237,899 202,200 296,876 213,700 Grading/Ditching 35,358 45,647 60,000 65,240 60,000 Support Goods & Services 1,733 1,027 3,100 1,243 2,600 Transfer to Fund 263 - - - 4,480 - 425,158$ 320,360$ 477,000$ 386,669$ 488,000$ PERFORMANCE INDICATORS Number of Miles 11.12 11.12 11.12 11.12 11.12 Road Service Cost per Mile 38,234$ 28,809$ 42,896$ 34,772$ 43,885$ 122 PROGRAM BUDGET SUMMARY SERVICE AREA No. 2 Program Description Service Area No. 2 is responsible for water and sewer services in the service area. Service Area No. 2 is comprised of Tax Code Areas (TCAs) 4, 6, and 8. Goal  Obtain water and sewer services for this area. Objectives for 2016-2017  The service district is currently inactive. Significant Budget Changes The fund balance will be used to defray any administrative costs incurred over the next year. 123 SERVICE AREA No. 2 REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Interest Earnings 51$ 29$ 100$ 41$ 100$ 51$ 29$ 100$ 41$ 100$ Expenditures Support Goods & Services -$ 0$ 100$ 0$ 100$ -$ 0$ 100$ 0$ 100$ 124 PROGRAM BUDGET SUMMARY MONASHKA BAY ROAD SERVICE AREA Program Description Monashka Bay Road Service Area (MBRSA) is responsible for road maintenance and snow removal in the service area; it also has some administrative responsibility for a Greenbelt separating MBRSA residents from the adjacent KIB Landfill and a commercial storage and dump property (Lot 1) zoned “Light Industrial” as of 2016. With the past few mild winters, Monashka Bay RSA snow plowing costs have been much reduced, saving significant amounts of money and restoring a positive fund balance. Supervisors have rema ined conservative in road maintenance routines, which have saved additional funds. For the 2016 -summer season, pothole treatment, dust control and road surface aggregate stability will be improved using measured applications of calcium chloride and compaction. Several culverts will be replaced at highest priority locations. Goals  Provide for road maintenance, repairs, snow removal, and sanding.  Address road safety and other related concerns.  Improve roads to meet all current Kodiak Island Borough design requirements.  Safeguard the Greenbelt and “Lot 2” from further encroachment.  Encourage dialog between KIB Assembly, KIB Staff, and all Road Service Area Boards to explore cost and timesaving strategies relative to MBRSA responsibilities. Objectives for 2016-2017  As practicable and within budget, maintain/repair roads, ditches, culverts, and signs within the service area.  Board to conduct annual road inspection/walk/tour to identify concerns and create "Priority List."  Unfinished work from previous year's "Priority List" should be reviewed and considered for current or future budget years.  Reduce expenditures and maintain a positive balance in the KIB-MBRSA "Unreserved Fund Balance."  Pursue additional funding to address safety and road -structure concerns that do not meet KIB Code. Significant Budget Changes Other than a slight decrease in estimated available revenue, and a budget decrease in snow removal, there are no significant budget changes in FY2017. With the snow removal season nearly done, the FY16 expenses show a large surplus going into FY17. This savings will be used to address as many items as possible on the Work Priority List. 125 MONASHKA BAY ROAD SERVICE AREA REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Property Taxes 61,032$ 60,701$ 60,000$ 59,665$ 60,000$ Penalties & Interest - 0 - 1 - Interest Earnings 145 171 - 576 - PERS on Behalf Payment - - - - - 61,177$ 60,872$ 60,000$ 60,242$ 60,000$ Expenditures Personnel Services 1,091$ 274$ 300$ 185$ 500$ Fringe Benefits 588 202 200 164 - Snow Removal/Sanding 9,713 3,158 28,150 - 28,150 Repairs & Maintenance 32,326 586 16,000 18,294 16,000 Grading/Ditching 11,131 3,099 13,000 7,644 13,000 Support Goods & Services 443 137 2,350 126 350 Contingencies - - - - 2,000 55,292$ 7,454$ 60,000$ 26,413$ 60,000$ PERFORMANCE INDICATORS FY 2014 Actual FY 2015 Actual FY 2016 Projected FY 2016 Actual FY 2017 Projected Number of Miles 2 2 2 2 2 Road Service Cost per Mile 27,646$ 3,727$ 30,000$ 13,207$ 30,000$ 126 PROGRAM BUDGET SUMMARY BAY VIEW ROAD SERVICE AREA Program Description Bay View Road Service Area is responsible for the road maintenance in the service area. Goal  Maintain, repair, and provide snow removal for the roads in the Bay View Road Service Area. Objectives for 2016-2017  Provide safe and adequate roads. Significant Budget Changes There are no significant budget changes in FY2017. 127 BAY VIEW ROAD SERVICE AREA REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Property Taxes 13,622$ 13,743$ 15,257$ 13,605$ 15,257$ Penalties & Interest Tax - - - - - Interest Earnings 78 36 - 91 - PERS on Behalf Payment - - - - - 13,700$ 13,779$ 15,257$ 13,696$ 15,257$ Expenditures Personnel Services 187$ 215$ -$ 59$ -$ Fringe Benefits 161 135 - 64 - Contracted Services - - 7,257 - 7,257 Snow Removal/Sanding 1,516 981 5,400 835 5,400 Repairs & Maintenance - 514 1,500 2,625 1,500 Grading/Ditching 3,450 9,539 1,100 4,203 1,100 Support Goods & Services 252 23 - 32 - Other - - - 350 - 5,566$ 11,408$ 15,257$ 8,167$ 15,257$ PERFORMANCE INDICATORS FY 2014 Actual FY 2015 Actual FY 2016 Projected FY 2016 Actual FY 2017 Projected Number of Miles 1 1 1 1 1 Road Service Cost Per Mile 5,566$ 11,408$ 15,257$ 8,167$ 15,257$ 128 PROGRAM BUDGET SUMMARY FIRE PROTECTION AREA NO. 1 (BAYSIDE FIRE DEPARTMENT) Program Description The Bayside Fire Station is responsible for providing fire suppression, fire prevention, injury prevention, first responder emergency medical services, and associated services to the residents and visitors of Fire Protection Area No. 1. Goals  Minimize the impact on life and property from the effects of fire and medical emergencies through public education, fire suppression, and emergency medical services.  Maintain a stable 1.5 mill rate for these services to Fire Protection Area No. 1 property o wners.  Maintain a Class 4 Insurance Services Organization rating to reduce the cost of fire insurance to the residents and businesses in Fire Protection Area No.1. Fire Protection Area No. 1 will be reviewed and hopefully retain the 4/4 rating at the end of October 2016. Objectives for 2016-2017  Maintain a force of 30 trained volunteer firefighters and emergency medical responders. The department is at 28 members, including the fire chief, for a total of 29 responders. We are currently recruiting and would like to get that number up to 40 volunteers.  Respond with a fire engine and firefighters within five minutes of an alarm on 90% of all fire calls. This goal is documented on dispatch time sheets.  Respond with emergency medical responders within five minutes of an alarm on 90% of all emergency medical calls. This goal is documented on dispatch time sheets.  Increase personnel’s expertise in fire prevention, injury prevention, fire suppression and emergency medical services through continuing education. Training is continuing with an emphasis on fire fighting. A Firefighter 1 class is going to be offered in the near future. A Lieutenants test is going to be administered as well and four lieutenants will be promoted. Basic first aid will be offered, follo wed by an EMT course after the Firefighter 1 class.  Continue upgrades and improvements to the fire training site. The fire station bays and storage areas have been cleaned. The Memorial garden has been cleaned and replanted. The gutters on the entire building have been cleaned by members. The Burn Training Center burn buildings and surrounding area has been cleaned of trash and old debris. The burn building is being used on a regular basis and is expected to be repainted in the summer of 2016.  Purchase new command pickup truck & water tanker/tender vehicles. These will be purchased in FY2017.  Purchase and install new back up emergency generator. The generator and associated switch gear is on site. Engineering and Facilities is currently working on the generator concrete pad and electrical connections to complete the project. This should be completed by fall of 2016. Significant Budget Changes No significant budget changes for FY2017. 129 FIRE PROTECTION AREA NO. 1 REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Property Taxes 552,352$ 558,020$ 557,500$ 572,732$ 582,500$ Penalties/Interest Tax 0 1 - 1 - Interest Earnings 3,470 2,425 - 5,601 - PERS on Behalf Payment - 26,205 - 2,705 - Miscellaneous - Classified 25,543 7,731 8,700 2,831 1,500 Operating Transfers - 16,040 - - - Use of Fund Balance - - 209,805 - 450,127 581,366$ 610,421$ 776,005$ 583,870$ 1,034,127$ Expenditures Salaries 108,608$ 84,249$ 85,000$ 60,021$ 98,309$ Temporary HelpVolunteers - - - - - Overtime 374 1,277 1,000 1,140 2,000 Volunteer Stipends 13,545 28,980 20,000 29,925 40,000 Fringe Benefits 71,690 66,238 84,505 48,625 80,318 Contract Instruction 75 - 2,000 - 2,000 Support Goods & Services 195,430 136,354 243,500 214,581 229,500 Capital Outlay 18,750 9,617 340,000 4,380 582,000 Equipment Depreciation - - - - - Legal Fees - - - 1,821 - Operating Transfers - - - - - 408,472$ 326,715$ 776,005$ 360,493$ 1,034,127$ 130 PROGRAM BUDGET SUMMARY WOMENS BAY FIRE DEPARTMENT Program Description The Women’s Bay Fire Department is responsible for providing fire suppression services to the citizens of the Womens Bay Fire Protection District. The department provides first response to emergency medical service (EMS) calls within the area. The department also provides structural fire suppression by contract to the Airport Fire Protection Area. Goals  Provide effective, safe and timely response whenever called upon by the community  Minimize the impact on life and property caused by fire  Provide first responder emergency medical service through training and continuing medical education  Maintain up-to-date equipment to ensure firefighter and community safety  Promote an increased level of interagency training with local fire and rescue services  Work with Bayside Fire Department in discussion of consolidation of the two departments to reduce duplication of effort and encourage like training methods Objectives for 2016-2017  Respond within 10 minutes of an alarm for 90% of all calls for assistance  Maintain a trained force of emergency response personnel and support staff  Work toward achieving compliance with NFPA and OSHA regulations  Increase personnel expertise in fire prevention and suppression activities  Participate and support mutual aid agreements for the Kodiak area community  Continue to develop and formalize Standard Operating Procedures/Standard Operating Guidelines (SOP/SOG) to better define department operations  Focus on facility maintenance and energy efficient upgrades to fire house  Finalize work on the Emergency Shelter Expansion Project interior finishes, procurement and installation of a facility generator. Significant Budget Changes The Fire Department is requesting the Service Area Board to approve and recommend the use of $100,000 of unreserved fund balance for the completion of the Emergency Shelter Project. These funds will be used for interior finish completion, emergency generator installation efforts and procurement of sheltering supplies. In addition the Fire Department will begin the multi-year process of replacing Scott Air Packs as the current versions will be outdated in 2017. 131 WOMENS BAY FIRE DEPARTMENT REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Property Taxes 95,537$ 98,692$ 99,000$ 99,338$ 99,000$ Penalties/Interest 0 1 - 0 - State Shared Revenue - - - 2,310 - Charges for Services 14,336 13,601 13,000 14,300 14,000 Interest Earnings 4,478 2,748 1,000 4,095 1,000 Rental Income 13,200 13,450 12,000 8,800 12,000 Miscellanous - - - 5,780 Use of Fund Balance - - 100,000 - 100,000 Operating Transfers In - - - - - 127,551$ 128,491$ 225,000$ 134,623$ 226,000$ Expenditures Salaries (Including Overtime) -$ -$ 7,000$ 785$ 7,000$ Fringe Benefits - - 3,000 479 3,000 Contracted Services - - - 5,460 - Support Goods & Services 38,807 42,313 98,650 67,017 109,150 Capital Outlay 27,653 18,190 116,350 - 106,850 Operating Transfers - - - 100,000 - 66,460$ 60,503$ 225,000$ 173,741$ 226,000$ 132 PROGRAM BUDGET SUMMARY KODIAK ISLAND BOROUGH AIRPORT FIRE PROTECTION DISTRICT Program Description This program is responsible for providing fire suppression and prevention services to the citizens of the Kodiak Island Borough Airport Fire Protection Area. Goals  Minimize the impact on life and property attributable to fire through the development and implementation of fire prevention and suppression programs. Objectives for 2016-2017  Continue contracting with Women’s Bay Fire Department to provide fire suppression and prevention service to the district. Significant Budget Changes There are no significant budget changes in FY2017. 133 AIRPORT FIRE PROTECTION DISTRICT REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Property Taxes 13,601$ 14,300$ 13,800$ 14,716$ 14,500$ Penalties & Interest - - - 0 - Interest Earnings 362 156 500 233 500 13,964$ 14,457$ 14,300$ 14,950$ 15,000$ Expenditures Contracted Services 14,336$ 13,601$ 14,300$ 14,300$ 14,000$ Support Goods & Services 23 22 - 30 1,000 Operating Transfers - - - - - 14,359$ 13,623$ 14,300$ 14,330$ 15,000$ 134 PROGRAM BUDGET SUMMARY WOODLAND ACRES STREET LIGHT SERVICE AREA Program Description The Woodland Acres Street Light Service Area provides construction, operation, and maintenance of street lights on public streets within its boundaries. Goals  Provide street lighting to ensure a safer environment for all residents and visitors of Woodland Acres. Objectives for 2016-2017  Maintain and adequately fund the current street lights throughout Woodland Acres. Significant Budget Changes There are no significant budget changes in FY2017. 135 WOODLAND ACRES STREET LIGHTS REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Property Taxes 12,067$ 12,164$ 4,940$ 4,932$ 4,940$ Interest Earnings 208 139 200 213 200 12,274$ 12,303$ 5,140$ 5,145$ 5,140$ Expenditures Support Goods & Services 4,834$ 4,810$ 5,140$ 4,828$ 5,140$ Capital Outlay - - - - - 4,834$ 4,810$ 5,140$ 4,828$ 5,140$ 136 PROGRAM BUDGET SUMMARY TRINITY ISLANDS STREET LIGHT SERVICE AREA Program Description The Trinity Islands Street Light Service Area provides construction, operation and maintenance of streetlights on public streets within its boundaries. Goal  Provide street lighting to ensure a safer environment for all residents and visitors of Trinity Islands. Objectives for 2016-2017  Maintain street lights throughout the Trinity Islands subdivision. Significant Budget Changes There are no significant budget changes in FY2017. 137 TRINITY ISLAND LIGHTING DISTRICT REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Property Taxes 5,753$ 5,824$ 2,330$ 2,334$ 2,330$ Interest Earnings 200 125 - 190 - 5,953$ 5,949$ 2,330$ 2,524$ 2,330$ Expenditures Support Goods & Services 1,800$ 1,792$ 2,330$ 1,798$ 2,330$ 1,800$ 1,792$ 2,330$ 1,798$ 2,330$ 138 PROGRAM BUDGET SUMMARY MISSION LAKE TIDE GATE SERVICE AREA Program Description This service area provides tide-gate maintenance to the residents of the Mission Lake area. Goal  Provide maintenance of the tide gate. Objectives for 2016-2017  Remove debris and maintain the tide gate. Significant Budget Changes There are no significant budget changes in FY2017. 139 MISSION LAKE TIDE GATE REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Property Taxes 5,448$ 5,953$ 5,400$ 5,976$ 5,400$ Interest Earnings 334 201 - 332 - PERS on Behalf Payment - - - - - 5,781$ 6,154$ 5,400$ 6,308$ 5,400$ Expenditures Personnel Services 188$ 195$ -$ 757$ -$ Fringe Benefits 51 77 - 452 - Contracted Services - - 3,000 - 3,000 Support Goods & Services 6 8 2,400 11 2,400 245$ 279$ 5,400$ 1,220$ 5,400$ 140 PROGRAM BUDGET SUMMARY TRINITY ISLANDS SUBDIVISION PAVING DISTRICT Program Description This is a local improvement district created to pave the roads in the Trinity Islands housing subdivision. This district was funded through an inter-fund loan that will be paid back through special assessments. Goal  Maintain the roads within the new Trinity Islands housing subdivision. Objectives for 2016-2017  Maintain the 428 linear feet of pavement. Significant Budget Changes There are no significant budget changes in FY2017. 141 TRINITY ISLANDS PAVING REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Penalties/Interest 151$ 151$ -$ -$ -$ Special Assessments 9,833 8,747 - - - Interest Earnings 216 87 - - - Transfers In - - 4,479 4,480 - 10,200$ 8,985$ 4,479$ 4,480$ -$ Expenditures Support Goods & Services 17$ 256$ -$ 3$ -$ Debt Service 2,208 1,128 - - - 2,225$ 1,384$ -$ 3$ -$ 142 PROGRAM BUDGET SUMMARY FACILITIES FUND Program Description This fund was established with the proceeds from the sale of Shuyak Island. The Borough entered into an agreement with the Exxon Valdez Oil Spill Trustee Council to sell all of its rights on Shuyak Island for $42 million to the State of Alaska. The Borough received $8 million in fiscal year 1996, $2,194,266 in fiscal year 1997, $4,000,000 in fiscal years 1998 through 2002 and received the balance of $11,805,734 in fiscal year 2003. $6 million was utilized in construction of the Kodiak Fisheries Research Center and the remaining $36 million established the Facilities Fund. The purpose of this fund is to maintain the proceeds of the sale and use interest earnings to help support Borough operations. Provisions have been established dictating that 85% of the previous years’ interest earnings can be used to pay for maintenance and repair of Borough buildings, insurance on Borough buildings, and upgrade and reconstruction of existing buildings. Additionally, up to 50% of the total amount available in any one fiscal year can be used toward debt service on general obligation bonds issued for facilities construction. Since inception the Facilities fund has earned $19,353,419 in interest and has transferred $16,690,049 to capital projects, debt service and building and grounds (property insurance). Goal  Preserve the principal of the fund; and to achieve a fair rate of return on our investments. Objectives for 2016-2017  Realize a 1.0% rate of return on Facilities Fund investments. Significant Budget Changes There are no significant budget changes in FY2017. 143 FACILITIES FUND REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Interest Earnings 655,469$ 468,769$ 700,000$ 515,662$ 357,825$ Use of Fund Balance - - - - - 655,469$ 468,769$ 700,000$ 515,662$ 357,825$ Expenditures Contingencies -$ -$ 105,000$ -$ 82,500$ Education Support Fund 110,000 - 140,000 140,000 - Buildings and Grounds 18,000 18,000 18,000 18,000 - Debt Service 232,402 250,000 150,000 150,000 - Capital Projects - - - - - Transfers to Cap. Proj.- - - - - Renewal/Replacement 161,963 322,000 287,000 90,454 275,325 522,365$ 590,000$ 700,000$ 398,454$ 357,825$ 144 PROGRAM BUDGET SUMMARY TOURISM DEVELOPMENT Program Description The fund collects the transient accommodations (bed) tax revenue and cruise ship revenue sharing to promote increased development of the tourism industry and various tourism programs within the Kodiak Island Borough. Goal  Recognize tourism as a diversification of the island’s economy  Promote tourism development activities including, but not limited to, fishing, bear viewing, hiking, and lodging. Objectives for 2016-2017  Fund a variety of tourism packages such as Discover Kodiak and the Kodiak Fisheries Research Center. Significant Budget Changes Discover Kodiak is requesting a sustained $10,000 increase over FY2016 and has requested an additional $10,000. These funds will cover an Adventure Travel Trade Association visit to Kodiak and a rural summit . 145 TOURISM DEVELOPMENT REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Bed Tax Revenue 75,042$ 104,074$ 89,500$ 95,466$ 89,500$ Penalties & Interest Tax 100 - - - - State Shared Revenue - 13,925 8,000 30,255 52,900 Interest Earnings 1,150 731 500 1,417 500 Use of Fund Balance - - - - - 76,292$ 118,730$ 98,000$ 127,138$ 142,900$ Expenditures Personnel Sevices -$ -$ -$ -$ 3,314$ Fringe Benefits - - - - 2,686 Historical Society - - - - - Kodiak Convention Burueau 75,000 75,000 85,000 85,000 75,000 Village Tourism Development - - 5,000 - 5,000 Island Trails Network - - - - - Kodiak Maritime Musuem 9,126 - - - - Support Goods & Services - - 8,000 - 11,900 Operating Transfers - - - - 45,000 84,126$ 75,000$ 98,000$ 85,000$ 142,900$ 146 PROGRAM BUDGET SUMMARY FULLER TRUST Program Description This trust was established to fund new equipment purchases at the Kodiak Island Hospital and to make payment to six beneficiaries. The funding for the trust came from the cash and assets of the Fern Fuller Charitable Unitrust. Goal  Make all payments in a timely manner. Objectives for 2016-2017  Purchase needed equipment for the hospital. Significant Budget Changes There are no significant budget changes in FY2017. 147 FERN FULLER TRUST REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Interest Earnings 2,293$ 1,311$ 3,500$ 840$ 3,500$ Use of Fund Balance - - 63,000 - 63,000 2,293$ 1,311$ 66,500$ 840$ 66,500$ Expenditures Operating Transfer,Hospital 66,500 66,500$ 66,500$ 66,500$ 66,500$ 66,500$ 66,500$ 66,500$ 66,500$ 66,500$ 148 This page intentionally left blank 149 DEBT SERVICE FUND Debt Administration The necessity to incur debt in order to finance the capital program carries with it the obligation to manage the debt program effectively. As a result, the level of outstanding debt and the Borough’s ability to incu r and repay additional debt bare careful examination. The Kodiak Island Borough has a written debt policy in the Kodiak Island Borough Code, Title 3- Revenue and Finance, Chapter 3.01-Fiscal Policy, 3.01.030. Debt Policies The policy is used to analyze the existing debt position of the Borough and assess the impact of future financing requirements on the Borough’s ability to service debt. Review and analysis of the Borough’s debt provides a capital financing plan for infrastructure and other improvements. Both available resources and Borough needs drive the Borough’s debt issuance program. Long- term projected financing is linked with economic, demographic and financial resources expected to be available to repay the debt. The use of debt ratios is only one tool of many in determining a course of action and is not used exclusively in making decisions. Decisions regarding the use of debt is based upon a number of factors including, but not limited to, the long -term needs of the Borough and the amount of resources available to repay the debt. The Kodiak Island Borough has a five year Capital Improvement Program. Each year the assembly updates the program to maintain the list of needed capital improvement priorities. Capital funds spent on projects will result in long-term economic growth beyond the initial capital expenditure and will in turn contribute significantly to the economy and revenue for many years. Legal Debt Margin There is no limitation on the amount of taxes the Borough can levy to pay for bonds. State Code reads: “Sec. 29.45.100. No limitations on taxes to pay bonds. The limitations provided for in AS29.45.080 - 29.45.090 do not apply to taxes levied or pledged to pay or secure the payment of the principal and interest on bonds. Taxes to pay or secure the payment of principal and interest on bonds may be levied without limitation as to rate or amount, regardless of whether the bonds are in default or in danger of default.” The voters of the Kodiak Island Borough ultimately determine the amount of debt that can be outstanding. The citizens of the Borough pass a ballot question giving the Borough the authority to issue bonds to fund projects. The Borough maintains debt at a manageable level considering economic factors including population, a ssessed valuation, and other current and future tax-supported essential service needs. 150 PROGRAM BUDGET SUMMARY DEBT SERVICE- EDUCATION Program Description This fund was established to finance and account for the payment of interest and principal on a ll general obligation debts. Goal  This fund accounts for the accumulation of money for payment of principal, interest, and fiscal agent fees related to serial bond debt incurred by the Borough to construct schools and a new hospital. Objectives for 2016-2017  To meet all debt service requirements when due, thus avoiding any charges for penalties of interest. Significant Budget Changes The Borough should sell two more bond issues in FY2017. 151 REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Real Property Tax 1,861,927$ 1,049,140 1,836,000$ 1,831,724$ 2,233,216$ Personal Property Tax 181,967$ 109,587 204,000 201,703 273,352 Penalties & Interest - 1 - - - State Debt Reimbursement 3,347,517 3,885,080 4,528,506 4,304,877 5,328,029 Interest Earnings 3,182 510 2,000 (149) 2,000 Proceeds from Bond Issues - - - 113,179 - Use of Fund Balance - - - - - Transfers In 482,402 250,000 150,000 150,000 - TOTAL REVENUES 5,876,996$ 5,294,317$ 6,720,506$ 6,601,334$ 7,836,597$ Expenditures EDUCATION Consultants 3,150$ 6,300$ -$ 3,600$ -$ Support Goods and Services 2,892 - 30,911 5,524 11,263 Principal 2,924,958 2,640,000 3,170,000 3,170,000 4,114,978 Interest 2,077,944 3,119,885 3,512,992 3,193,523 3,710,356 Refunded Bond Costs 89,834 - - 96,436 - School Bonds - - 69,553 69,553 - SUBTOTAL EDUCATION 5,098,777$ 5,766,185$ 6,783,456$ 6,538,637$ 7,836,597$ HOSPITAL Support Goods & Services -$ -$ -$ -$ -$ Principal- 2009 Refunding Bond 715,042 - - - - Interest- 2009 Refunding Bond 28,602 - - - - SUBTOTAL HOSPITAL 743,644$ -$ -$ -$ -$ KARLUK LOANS Principal 5,950$ 6,040$ 6,130$ 31,617$ -$ Interest 653 564 473 474 - SUBTOTAL KARLUK LOANS 6,603$ 6,604$ 6,603$ 32,090$ -$ TOTAL EXPENDITURES $5,849,024 $5,772,789 $6,790,059 $6,570,727 $7,836,597 152 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Per Capita Bonded Debt Per Capita Bonded Debt has increased from $2,499 to $7,337 in the last 10 years. Most of this increase is from constructing a new swimming pool, constructing a new long term care facility and work on the High School. 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Net Debt Per Assessed Value Even though the assessed value of the Borough continues to rise our net debt is increasing at a higher rate. The Borough should sell two more bond issues in FY2017 and then not sell another bond issue for some time. 153 Fiscal Year Principal Interest Total 2017 3,900,000 3,564,105 7,464,105 2018 4,250,000 3,420,119 7,670,119 2019 4,430,000 3,250,444 7,680,444 2020 4,045,000 2,817,825 6,862,825 2021 4,800,000 2,877,356 7,677,356 2022 5,020,000 2,657,182 7,677,182 2023 5,250,000 2,423,081 7,673,081 2024 5,500,000 2,171,044 7,671,044 2025 5,775,000 1,895,326 7,670,326 2026 4,575,000 1,663,031 6,238,031 2027 3,875,000 1,458,984 5,333,984 2028 4,065,000 1,266,253 5,331,253 2029 3,645,000 1,062,890 4,707,890 2030 3,830,000 881,178 4,711,178 2031 4,015,000 692,853 4,707,853 2032 3,590,000 501,671 4,091,671 2033 3,770,000 322,896 4,092,896 2034 2,240,000 155,056 2,395,056 2035 580,000 43,322 623,322 2036 610,000 14,713 624,713 77,765,000 33,139,327 110,904,327 SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS TO MATURITY KODIAK ISLAND BOROUGH As of June 30, 2016 Annual principal and interest requirements on General Obligation Bonds. 154 Fiscal year Interest rate Interest due October 01 Principal due April 01 Interest due April 01 Total 2017 4.00%127,480 370,000 127,480 624,960 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 95,661 621,322 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 14,875 624,750 930,185$ 5,620,000$ 930,185$ 7,480,370$ The 2008 Series A General Obligation Bonds were issued to provide funds for school and related capital improvements in the Borough, specifically the new school pool facility. KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS As of June 30, 2016 RETIREMENT SCHEDULE 2008 SERIES A 155 Fiscal year Interest rate Interest due September 01 Principal due April 01 Interest due March 01 Total 2017 2.75%151,275 320,000 151,275 622,550 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%110,256 405,000 110,256 625,513 2024 4.80%100,638 425,000 100,638 626,275 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 68,931 622,863 2028 5.20%56,503 510,000 56,503 623,006 2029 5.20%43,434 535,000 43,434 621,869 2030 5.20%29,725 565,000 29,725 624,450 2031 5.20%15,247 595,000 15,247 625,494 1,413,803.14$ 6,530,000.00$ 1,413,803.14$ 9,357,606.28$ The 2011 Series A General Obligation School Bonds were issued to provide funds for school and related capital improvements in the Borough, specifically to provide a portion of the funds needed for the Kodiak High School Addition and Renovation. KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS RETIREMENT SCHEDULE As of June 30, 2016 2011 SERIES A 156 Fiscal Year Interest Rate Interest Due September 1 Principal Due September 1 Interest due March 1 Total 2017 4.00%104,700 455,000 95,600 655,300 2018 2.00%95,600 460,000 91,000 646,600 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 - 645,750 589,125 4,760,000 484,425 5,833,550 The 2012 Series A General Obligation School Bonds were issued to refund (refinance) the 2004 Series A General Obligatin bonds that were issued to provide funds for school and related capital improvements in the Borough, specifically to fund various school facility repairs. KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS RETIREMENT SCHEDULE As of June 30, 2016 2012 Series A 157 Fiscal Year Interest Rate Interest Due September 1 Principal Due September 1 Interest due March 1 Total 2017 4.00%127,775 550,000 116,775 794,550 2018 2.00%116,775 565,000 111,125 792,900 2019 4.00%111,125 585,000 99,425 795,550 2020 5.00%99,425 610,000 84,175 793,600 2021 5.00%84,175 640,000 68,175 792,350 2022 4.00%68,175 665,000 54,875 788,050 2023 5.00%54,875 695,000 37,500 787,375 2024 5.00%37,500 730,000 19,250 786,750 2025 5.00%19,250 770,000 - 789,250 719,075 5,810,000 591,300 7,120,375 KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS RETIREMENT SCHEDULE As of June 30, 2016 The 2012 Series A General Obligation School Bonds were issued to refund (refinance) the 2004 Series B General Obligatin bonds that were issued to provide funds for school and related capital improvements in the Borough, specifically to fund construction of the new pool facility. 2012 Series B 158 Fiscal Year Interest Rate Interest Due August 01 Principal Due February 01 Interest due February 01 Total 2017 4.00%449,870 790,000 449,870 1,689,740 2018 4.00%434,070 820,000 434,070 1,688,140 2019 5.00%417,670 855,000 417,670 1,690,340 2020 4.00%396,295 895,000 396,295 1,687,590 2021 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%320,095 1,050,000 320,095 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 2031 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 4,625,365 19,470,000 4,625,365 28,720,730 KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS RETIREMENT SCHEDULE As of June 30, 2016 The 2013 Series Two General Obligation School Bonds were issued to provide funds for school and related capital improvements in the Borough, specifically to provide a portion of the funds needed for the Kodiak High School Addition and Renovation. 2013 Series Two 159 Fiscal Year Interest Rate Interest Due September 01 Principal Due March 01 Interest Due March 01 Total 2017 4.00%483,556 810,000 483,556 1,777,113 2018 5.00%467,356 840,000 467,356 1,774,713 2019 2.00%446,356 880,000 446,356 1,772,713 2020 2.00%437,556 900,000 437,556 1,775,113 2021 5.00%428,556 915,000 428,556 1,772,113 2022 5.00%405,681 965,000 405,681 1,776,363 2023 5.00%381,556 1,010,000 381,556 1,773,113 2024 5.00%356,306 1,060,000 356,306 1,772,613 2025 3.12%329,806 1,110,000 329,806 1,769,613 2026 5.00%312,463 1,150,000 312,463 1,774,925 2027 5.00%283,713 1,205,000 283,713 1,772,425 2028 5.00%253,588 1,265,000 253,588 1,772,175 2029 5.00%221,963 1,330,000 221,963 1,773,925 2030 5.00%188,713 1,395,000 188,713 1,772,425 2031 4.50%153,838 1,465,000 153,838 1,772,675 2032 5.00%120,875 1,535,000 120,875 1,776,750 2033 5.00%82,500 1,610,000 82,500 1,775,000 2034 5.00%42,250 1,690,000 42,500 1,774,750 5,396,631 21,135,000 5,396,881 31,928,513 The 2014 Series A General Obligation School Bonds were issued to provide funds for school and related capital improvements in the Borough, specifically to provide a portion of the funds needed for the Kodiak High School Addition and Renovation. KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS RETIREMENT SCHEDULE As of June 30, 2016 2014 Series A 160 Fiscal Year Interest Rate Interest Due October 01 Principal Due October 01 Interest Due April 01 Total 2017 2.00%149,156 195,000 147,206 491,363 2018 2.00%147,206 200,000 145,206 492,413 2019 4.00%145,206 205,000 141,106 491,313 2020 5.00%141,106 215,000 135,731 491,838 2021 5.00%135,731 225,000 130,106 490,838 2022 5.00%130,106 240,000 124,106 494,213 2023 5.00%124,106 250,000 117,856 491,963 2024 5.00%117,856 265,000 111,231 494,088 2025 5.00%111,231 275,000 104,356 490,588 2026 5.00%104,356 290,000 97,106 491,463 2027 5.00%97,106 305,000 89,481 491,588 2028 5.00%89,481 320,000 81,481 490,963 2029 5.00%81,481 335,000 73,106 489,588 2030 5.00%73,106 355,000 64,231 492,338 2031 5.00%64,231 370,000 56,831 491,063 2032 4.00%56,831 390,000 46,594 493,425 2033 5.25%46,594 410,000 35,831 492,425 2034 5.25%35,831 430,000 24,544 490,375 2035 5.25%24,544 455,000 12,600 492,144 2036 5.25%12,600 480,000 - 492,600 1,887,869 6,210,000 1,738,713 9,836,581 KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS RETIREMENT SCHEDULE As of June 30, 2016 The 2015 Series Three General Obligation School Bonds were issued to provide funds for school and related capital improvements in the Borough, specifically to provide a portion of the funds needed for the Kodiak High School Addition and Renovation. 2015 Series A 161 Fiscal Year Interest Rate Interest Due October 01 Principal Due October 01 Interest Due April 01 Total 2017 2.00%39,300 145,000 37,850 222,150 2018 2.00%37,850 150,000 36,350 224,200 2019 4.00%36,350 155,000 33,250 224,600 2020 5.00%33,250 160,000 29,250 222,500 2021 5.00%29,250 170,000 25,000 224,250 2022 5.00%25,000 180,000 20,500 225,500 2023 5.00%20,500 190,000 15,750 226,250 2024 5.00%15,750 200,000 10,750 226,500 2025 5.00%10,750 210,000 5,500 226,250 2026 5.00%5,500 220,000 225,500 253,500 1,780,000 214,200 2,247,700 The 2015 Series Three General Obligation School Bonds were issued to provide funds for school and related capital improvements in the Borough, specifically to provide for school facility renewal and replacement needs. KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS RETIREMENT SCHEDULE As of June 30, 2016 2015 Series Three 162 Fiscal Year Interest Rate Interest Due August 01 Principal Due August 01 Interest Due February 01 Total 2017 5.00%35,760 30,000 35,209 100,969 2018 5.00%35,209 65,000 33,584 133,794 2019 5.00%33,584 65,000 31,959 130,544 2020 5.00%31,959 70,000 30,209 132,169 2021 5.00%30,209 75,000 28,334 133,544 2022 5.00%28,334 80,000 26,334 134,669 2023 5.00%26,334 80,000 24,334 130,669 2024 5.00%24,334 85,000 22,209 131,544 2025 5.00%22,209 90,000 19,959 132,169 2026 5.00%19,959 95,000 17,584 132,544 2027 2.00%17,584 100,000 16,584 134,169 2028 4.00%16,584 100,000 14,584 131,169 2029 4.00%14,584 105,000 12,484 132,069 2030 2.63%12,484 110,000 11,041 133,525 2031 3.00%11,041 110,000 9,391 130,431 2032 3.00%9,391 115,000 7,666 132,056 2033 3.00%7,666 120,000 5,866 133,531 2034 3.00%5,866 120,000 4,066 129,931 2035 3.13%4,066 125,000 2,113 131,178 2036 3.25%2,113 130,000 - 132,113 389,272 1,870,000 353,513 2,612,785 The 2016 Series A General Obligation School Bonds were issued to provide funds for school and related capital improvements in the Borough, specifically to provide for the Kodiak High School Addition and Renovation. KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS 2016 Series A RETIREMENT SCHEDULE As of June 30, 2016 163 Fiscal Year Interest Rate Interest Due August 01 Principal Due August 01 Interest Due February 01 Total 2017 5.00%127,786 235,000 122,625 485,411 2018 5.00%122,625 440,000 111,625 674,250 2019 5.00%111,625 465,000 100,000 676,625 2020 5.00%100,000 490,000 87,750 677,750 2021 5.00%87,750 515,000 74,875 677,625 2022 5.00%74,875 540,000 61,375 676,250 2023 5.00%61,375 570,000 47,125 678,500 2024 5.00%47,125 595,000 32,250 674,375 2025 5.00%32,250 630,000 16,500 678,750 2026 5.00%16,500 660,000 - 676,500 781,911 5,140,000 654,125 6,576,036 The 2016 Series B General Obligation School Bonds were issued to provide funds for school and related capital improvements in the Borough, specifically to provide for school facility renewal and replacement needs. KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS 2016 Series B RETIREMENT SCHEDULE As of June 30, 2016 164 This page left intentionally blank 165 CAPITAL PROJECTS FUND Capital project funds have been set up to account for projects that are not ongoing in nature, are budgeted for total cost of the project rather than annual expenditures or expenses, and relate to one specific activity. This specific activity is usually building something. Many of our projects are related to education, specifically the Kodiak Island Borough School District. Under State law the Borough must contribute a range of funds to the School District. There is a rather complicated formula setting both the minimum and the maximum contribution that the Borough will make to the School District. At this time the Borough is contributing the maximum amount p ossible under State law to the School District. When the Borough completes a capital project for the School District, such as a new school, the Borough cannot give any money to the School District for maintenance, operation, or other costs relating to thi s capital project. Because of this there is no ongoing Borough expense on projects built for the School District. We also have other projects, that when completed, will be operated and maintained by other entities. At this time we are working on projects for both the State of Alaska and Native Corporations. Altogether, the Borough has $159,643,817 in ongoing capital projects. This represents $11,552 in ongoing capital projects for every man, woman and child in the Borough. These projects are within 10 different capital project funds. These ten Capital Project Funds are:  Borough Capital Projects  Bonded Capital Projects  Borough Capital Project  State Grants  Borough Capital Projects  High School Renovation and Replacement Project  Renewal and Replacement Projects  Bonded Renewal and Replacement Projects  Landfill Projects  Hospital Projects Capital Projects by Fund Fund 410- Borough Capital Projects Fund 420- Bonded Debt School Construction Fund 426 - Borough Capital Project Fund 430- State Capital Grants Fund 450-Borough Capital Projects Fund 460- HS Renovation and Renewal Fund 469-Renewal and Replacement Prj Fund 470-Bond Renewal & Replacement Prj Fund 490- Landfill Capital Projects Fund 495- Hospital Capital Projects 166 Borough Capital Projects – Fund 410 The Borough Capital Projects Fund is for projects that don’t fit into the other funds, much like the General Fund is in relation to other funds. We currently have $950,000 in ongoing capital projects in this fund. Here are some of this fund’s highlights:  The Borough has purchased and is implementing a new assessing program. The program currently in use was purchased in the early 1990’s and is obsolete. The Borough did not have a maintenance agreement for this program.  We have several projects ongoing in the villages to remove scrap metal and dispose of them in an environmentally conscious manner. Bonded Capital Projects – Fund 420 At this time, most of the Borough’s projects funded with General Obligation Bonds are education related. There are $673,779 in ongoing capital projects in this fund. Again, because this project will be transferred to the School District upon completion there will be no effect on the Borough’s budget. Borough Capital Project – Fund 426 This fund houses a project funded by the Borough to make modifications and upgrades to the Kodiak Fisheries Research Center in order to make it more energy efficient. The building operating in a more efficient way will in turn save the Borough money in the future for things such as electricity, heating and repairs. The total cost of this project is $1,346,418. State Capital Grants – Fund 430 The State of Alaska and the Federal Government have awarded the Kodiak Island Borough an impressive array of grants. At this time the Borough has $3,173,000 in State Capital Grants; as well as $475,000 from the US Department of Housing and Urban Development. Large grants include $2,000,000 for a new dock in Anton Larsen, $1,025,000 for an emergency shelter in Womens Bay and $100,000 to replace and upgrade the tsunami warning sirens. Borough Capital Projects – Fund 450 The Borough has $4,523,535 in ongoing capital projects fund in the second general capital projects fund. This fund includes many other grant funded projects; most notably from the US Department of the Interior we have received $2,187,452 to remove debris and hazardous waste materials in the villages and $208,540 to harden and maintain the Saltery Trail. Kodiak High School Renovation and Renewal – Fund 460 On October 9, 2009 the voters approved a $76,310,000 bond issue for the High School Renovation and Addition project. Between various other funding sources, the entire project is budgeted at $80,479,009. The construction has been ongoing and the students now occupy most of the new KHS tower. The project should be completed in full in FY2017. 167 Renewal and Replacement Capital Projects – Fund 469 This fund is for the renewal and replacement of worn out and obsolete capital assets. These will be funded with a loan from the Facilities Fund which will be paid with General Fund property taxes, as well as other funding sources. Projects in this fund are currently budgeted at $5,908,076. Bonded Renewal and Replacement Capital Projects – Fund 470 On October 7, 2014 the voters approved a $10,230,000 bond issue to fund replacement and renewal of worn and obsolete school capital assests. Projects in this fund are currently budgeted fully at the not to exceed amount of $10,230,000. Solid Waste Capital Projects The Borough has $32,000,000 in capital projects relating to our landfill. The funding for this project comes from bonds sold, grants and loans from the Alaska Clean Water Fund. Hospital Capital Projects The Borough has $19,865,000 budgeted for a long term care center; the funding sources for this project was a bond issue passed by the voters as well as a State grant. Construction on this project is complete, and qualified residents have been inhabiting the new facilities. The Future The Borough is still considering other capital projects to benefit the residents of the Borough. The Borough is currently at the maximum level of projects we can manage at this time. 168 Capital Projects Summary by Fund FY16 Amended Budget Completed Projects FY 2017 Additions FY2017 L-T-D Budget Revenues: Fund 410- Borough Capital Projects 950,000$ -$ -$ 950,000$ Fund 420- Bonded Debt School Const.673,779 - - 673,779 Fund 426 - Borough Capital Project 1,346,418 - - 1,346,418 Fund 430- StateCapital Grants 3,668,000 - 180,000 3,848,000 Fund 450-Borough Capital Projects 4,473,535 - 50,000 4,523,535 Fund 460- HS Renovation and Renewal 80,479,009 - - 80,479,009 Fund 469-Renewal and Replacement Prj 5,908,076 - - 5,908,076 Fund 470 - Bond Renewal & Replacement Prj 10,230,000 - - 10,230,000 Fund 490- Enterprise Fund Capital Projects 32,000,000 - - 32,000,000 Fund 495- Enterprise Fund Capital Projects 19,685,000 - - 19,685,000 Total Revenues:159,413,817$ -$ 230,000$ 159,643,817$ Projects Fund 410- Borough Capital Projects 950,000$ -$ -$ 950,000$ Fund 420- Bonded Debt School Construction 673,779 - - 673,779 Fund 426 - Borough Capital Project 1,346,418 - - 1,346,418 Fund 430- State Capital Grants 3,668,000 - 180,000 3,848,000 Fund 450-Borough Capital Projects 4,473,535 - 50,000 4,523,535 Fund 460- HS Renovation and Renewal 80,479,009 - - 80,479,009 Fund 469-Renewal and Replacement Prj 5,908,076 - - 5,908,076 Fund 470-Bond Renewal & Replacement Prj 10,230,000 - - 10,230,000 Fund 490- Landfill Capital Projects 32,000,000 - - 32,000,000 Fund 495- Hospital Capital Projects 19,685,000 - - 19,685,000 Total Projects:159,413,817$ -$ 230,000$ 159,643,817$ 169 Previous Years Activity Activity FY 2017 Activity FY 2018 Activity FY 2019 Activity FY 2020 Activity FY 2021 907,170$ 42,830$ -$ -$ -$ -$ 502,255 102,019 - - - - 1,325,781 20,637 - - - - 3,418,173 429,827 - - - - 2,785,391 1,471,647 - - - - 78,975,188 1,137,330 50,000 50,000 50,000 50,000 3,046,359 2,861,717 - - - - 8,031,766 - 2,230,000 - - - 25,066,879 6,933,121 - - - - 19,685,000 - - - - - 143,743,962$ 12,999,128$ 2,280,000$ 50,000$ 50,000$ 50,000$ 392,270$ -$ 157,730$ -$ -$ -$ 604,274 - - - - - 1,327,238 19,180 - - - - 3,484,380 363,620 - - - - 3,174,699 1,233,628 - - - - 78,849,667 1,629,342 - - - - 2,505,881 1,568,298 1,546,701 - - - 407,676 3,460,697 4,563,798 1,797,829 - - 27,717,575 4,282,425 - - - - 15,567,986 - - - - - 134,031,646$ 12,557,190$ 6,268,229$ 1,797,829$ -$ -$ 170 Capital Projects Fund 410-Borough Capital Projects: FY16 Amended Budget Completed Projects FY 2017 Amendments FY2017 L-T-D Budget Revenues Operating Transfers In: Facilities Fund 650,000$ -$ -$ 650,000$ Interest Earnings 300,000 - - 300,000 Total Operating Transfers In 950,000 - - 950,000 Total Revenues 950,000$ -$ -$ 950,000$ Projects: 85 Village Metals 150,000$ -$ -$ 150,000$ 08004 Computer Asst Mass Appraisal/Collection 400,000 - - 400,000 400 Undesignated 400,000 - - 400,000 Total Borough Projects 950,000$ -$ -$ 950,000$ 171 Project To date Activity FY 2017 Activity FY 2018 Activity FY 2019 Activity FY 2020 Activity FY 2021 650,000$ -$ -$ -$ -$ -$ 257,170 42,830 - - - - 907,170 42,830 - - - - 907,170$ 42,830$ -$ -$ -$ -$ 33,431$ -$ 116,569$ -$ -$ -$ 358,839 - 41,161 - - - - - - - - - 392,270$ -$ 157,730$ -$ -$ -$ 172 Project Title:Village Metals Project Number: 85 Project Description:Collect waste metals in the villages Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Administration 10,000$ 9,234$ 766$ -$ 766$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services - - - - - - - - Construction 140,000 21,121 118,879 - 115,803 - - - Equipment - 2,507 (2,507) - - - - - Other Services - 569 (569) - - - - - Contingency - - - - - - - - Overhead - - - - - - - - Totals 150,000$ 33,431$ 116,569$ -$ 116,569$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:Contributions and interest earnings Operating Budget Effect:$10,000 per year from the Buildings and Grounds Fund Project Title:Computer Assisted Mass Appraisal & Collection Prg.Project Number: 08004 Project Description:To purchase a new assessment and collection computer program Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Equipment 360,000$ 115,544$ 244,456$ -$ -$ -$ -$ -$ Indirect Admin - - - - - - - - Other Services 40,000 243,295 (203,295) - 41,161 - - - Art - - - - - - - - Contingency - - - - - - - - Totals 400,000$ 358,839$ 41,161$ -$ 41,161$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:Transfer in from the General Fund Operating Budget Effect: At the current time our median sales ratio is 79%. If this new technology moves us to 100% our general fund tax revenues should increase by $1,900,000 at our current mill rate (10.5) mills. 173 This page intentionally left blank 174 CAPITAL PROJECTS Fund 420-Bonded Debt School Construction FY 2016 L-T-D Budget Completed Projects FY 2017 Amendments FY 2017 L-T-D Budget Revenues: Interest 673,779$ -$ -$ 673,779$ Total Revenues/Transfers In 673,779$ -$ -$ 673,779$ Projects: 05009 Kodiak Middle School concrete repair 673,779$ Complete -$ 673,779$ Total Project 673,779$ -$ -$ 673,779$ 175 Project to date Activity FY 2017 Activity FY 2018 Activity FY 2019 Activity FY 2020 Activity FY 2021 502,255 102,019 - - - - 502,255$ 102,019$ -$ -$ -$ -$ 604,274$ -$ -$ - - - 604,274$ -$ -$ -$ -$ -$ 176 Project Title:KMS, Repair Spalling Concrete Project Number: 05009 Project Description:Repair/replace 5,000 sf of concrete walks and stairs at Kodiak Middle School Expenditure Category Estimated Total Cost Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Construct Mgmt. Consultant 3,055$ 3,055$ -$ -$ -$ -$ -$ -$ Construct Mgmt. in-house 19,965 21,249 (1,284) - - - - - Land - - - - - - - - Site Investigation - - - - - - - - Design Services 39,933 45,366 (5,433) - - - - - Construction 527,947 515,840 12,107 - - - - - Equipment 1 1 (0) - - - - - Technology - - - - - - - - Indirect Admin 42,878 18,763 24,115 - - - - - Art - - - - - - - - Contingency 40,000 - 40,000 - - - - - Totals 673,779$ 604,274$ 69,505$ -$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:2004A Bond Issue Operating Budget Effect:This project will not change maintenance or operating expenses. 177 This page intentionally left blank 178 Capital Projects Fund 426-Borough Capital Projects: FY16 Amended Budget Completed Projects FY 2017 Amendments FY2017 L-T-D Budget Revenues Operating Transfers In: Fund 555 - KFRC 1,346,418 - - 1,346,418 Total Operating Transfers In 1,346,418 - - 1,346,418 Total Revenues 1,346,418$ -$ -$ 1,346,418$ Projects: 12015 KFRC Energy Project 1,346,418$ -$ -$ 1,346,418$ Total Borough Projects 1,346,418$ -$ -$ 1,346,418$ 179 Project To date Activity FY 2017 Activity FY 2018 Activity FY 2019 Activity FY 2020 Activity FY 2021 1,325,781 20,637 - - - - 1,325,781 20,637 - - - - 1,325,781$ 20,637$ -$ -$ -$ -$ 1,327,238$ 19,180$ -$ -$ -$ -$ 1,327,238$ 19,180$ -$ -$ -$ -$ 180 Project Title:KFRC Energy Project Project Number: 12015 Project Description:Upgrade HVAC unit to operate more effieciently; upgrade electrical to save energy Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Indirect Administration 65,156$ 43,566$ 21,590$ -$ -$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services 209,862 211,520 (1,658) - - - - - Construction 974,000 1,072,152 (98,152) - - - - - Equipment - - - - - - - - Other Services - - - - - - - - Contingency 97,400 - 97,400 19,180 - - - - Overhead - - - - - - - - Totals 1,346,418$ 1,327,238$ 19,180$ 19,180$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:NOAA and KIB Operating Budget Effect:Should lower expenditures in the future 181 This page intentionally left blank 182 CAPITAL PROJECTS Fund 430- State Capital Grants FY16 Amended Budget Completed Projects FY 2017 Amendments FY2017 L-T-D Budget Revenues: 07003 Island Lake Trail 48,000 - - 48,000 07009 Tsunami Siren, Upgrades and Additions 100,000 - - 100,000 10032 Women's Bay Emergency Shelter - HUD grant (Federal)1,420,000 - 180,000 1,600,000 12010 Anton Larsen Dock 2,100,000 - - 2,100,000 Interest Earnings - - - - Total Revenues/Transfers In 3,668,000$ -$ 180,000$ 3,848,000$ CAPITAL PROJECTS Fund 430- State Capital Grants FY16 Amended Budget Completed Projects FY 2017 Amendments FY2017 L-T-D Budget Projects: 07003 Island Lake Trail 48,000 - 48,000 07009 Tsunami Siren, Upgrades & Additions 100,000 Complete - 100,000 10032 Women's Bay Emergency Shelter - HUD grant (Federal)1,420,000 - 180,000 1,600,000 12010 Anton Larsen Dock 2,100,000 - - 2,100,000 Total State Grant Projects 3,668,000$ -$ 180,000$ 3,848,000$ 183 Project To Date Activity FY 2017 Activity FY 2018 Activity FY 2019 Activity FY 2020 Activity FY 2021 43,806 4,194 - - - - 100,000 - - - - - 1,500,000 100,000 1,770,311 329,689 - - - - 4,056 (4,056) - - - - 3,418,173$ 429,827$ -$ -$ -$ -$ Project To Date Activity FY 2017 Activity FY 2018 Activity FY 2019 Activity FY 2020 Activity FY 2021 48,000 - - - - - 100,000 - - - - - 1,545,870 54,130 - - - - 1,790,510 309,490 - - - - 3,484,380$ 363,620$ -$ -$ -$ -$ 184 Project Title:Island Lake Trail Project Number: 07003 Project Description:Extend the Island Lake Trail Expenditure Category Estimated Total Cost Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Construction Mgmr,Consultant 1,920$ -$ 1,920$ -$ -$ -$ -$ -$ Construction Mgmt,In-house - 1,193 (1,193) - - - - - Indirect/Administration - 39 (39) - - - - - Site Investigation 4,800 - 4,800 - - - - - Design Services 41,280 - 41,280 - - - - - Construction - 46,768 (46,768) - - - - - Totals 48,000$ 48,000$ -$ -$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:State Grant Operating Budget Effect:This is a pass through grant. After the trail is completed BLM will be responsible for maintenance. Project Title:Tsunami Siren Upgrade/Addition Project Number: 07009 Project Description:Repair and/or replace aging tsunami sirens Expenditure Category Estimated Total Cost Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Consruct Mgmt, Consultant 4,000$ -$ 4,000$ -$ -$ -$ -$ -$ Construct Mgmt, in-house - 144 (144) - - - - - Land - - - - - - - - Site Investigation - - - - - - - - Design Services 92,691 2,473 90,218 - - - - - Construction - 53,000 (53,000) - - - - - Equipment - 35,764 (35,764) - - - - - Indirect Admin 3,309 8,620 (5,311) - - - - - Contingency - - - - - - - - Totals 100,000$ 100,000$ 0$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:State grant Operating Budget Effect:This should reduce maintenance costs a minimal amount. Project Title:Women's Bay Emergency Shelter Project Number: 10032 Project Description:Emergency shelter Expenditure Category Estimated Total Cost Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Construct Mgmt, Consultant -$ -$ -$ -$ -$ -$ -$ -$ Construct Mgmt, in-house - 643 (643) - - - - - Land - - - - - - - - Site Investigation - 2,060 (2,060) - - - - - Design Services 210,000 223,624 (13,624) - - - - - Construction 1,250,000 1,252,570 (2,570) - - - - - Contingency 80,000 - 80,000 54,130 - - - - Direct Admin 60,000 66,973 (6,973) - - - - - Totals 1,600,000$ 1,545,870$ 54,130$ 54,130$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:State Grant & HUD Grant Operating Budget Effect:There will be a minimal maintenance cost after the shelter is complete 185 Project Title:Anton Larsen Dock Project Number: 12010 Project Description:Replacement of Anton Larsen Dock Expenditure Category Estimated Total Cost Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Construct Mgmt, Consultant -$ 520$ (520)$ -$ -$ -$ -$ -$ Construct Mgmt, in-house - - - - - - - - Land - - - - - - - - Site Investigation - - - - - - - - Design Services - 294,597 (294,597) - - - - - Construction - 1,455,431 (1,455,431) - - - - - Equipment 2,100,000 - 2,100,000 309,490 - - - - Indirect Admin - 39,963 (39,963) - - - - - Totals 2,100,000$ 1,790,510$ 309,490$ 309,490$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:State Grant Operating Budget Effect:None 186 Capital Projects FY16 Amended Completed FY 2017 FY 2017 Fund 450-Borough Capital Projects:Budget Projects Amendments L-T-D Budget Revenues: State of Alaska Grant Chiniak Warning Sirens 45,000$ -$ -$ 45,000$ US Dept of Interior CIAP Village Metal & Hazmat Removal 2,187,452 - - 2,187,452 State of Alaska Fire Protection Area #1 Emergency Generator 40,000 - - 40,000 US Dept of Interior CIAP Trail Hardening 208,450 - - 208,450 US F&W Service Lake Orbin Culvert Replacement 118,166 - - 118,166 12011 Emergency Generator 1,276,765 - - 1,276,765 State of Alaska Chiniak Playground Equipment 50,000 - 50,000 100,000 Interest Revenue 157,364 157,364 Total Grant Revenues 4,083,197$ -$ 50,000$ 4,133,197$ Operating Transfers In: Transfer in from Fund 276 243,933$ -$ -$ 243,933$ Transfer in fund 250 115,100 - - 115,100 Transfer in fund 240 25,000 - - 25,000 Transfer in fund 100 6,305 - - 6,305 Total Operating Transfers In 390,338$ -$ -$ 390,338$ Total Revenues 4,473,535$ -$ 50,000$ 4,523,535$ Projects: 12009 Chiniak Warning Sirens 45,000$ Complete -$ 45,000$ 12011 Emergency Generator Extra Funds 1,276,765 Complete - 1,276,765 12016 Fire Protection Area #1 Emergency Generator 155,100 - - 155,100 13004 CIAP Village Metal & Hazmat Removal 2,187,452 - - 2,187,452 13009 CIAP Trail Improvements 208,540 - - 208,540 14001 Lake Orbin Culvert Replacment 149,471 - - 149,471 13008 State of Alaska Womens Bay Playground Equipment 50,000 Complete 50,000 100,000 Contingencies 31,708 - - 31,708 Transfer to Fund 410 369,499 - - 369,499 Total Borough Projects 4,473,535$ -$ 50,000$ 4,523,535$ 187 Project Activity Activity Activity Activity Activity To Date FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 45,000$ -$ -$ -$ -$ -$ 1,082,301 1,105,151 - - - - 40,000 - - - - - 34,315 174,135 - - - - 118,166 - - - - - 1,254,201 - - - - - 100,000 - - - - - 111,407 45,957 - - - - 2,785,391$ 1,325,242$ -$ -$ -$ -$ 24,933$ -$ -$ -$ -$ -$ - 115,100 - - - - - 25,000 - - - - - 6,305 - - - - -$ 146,405$ -$ -$ -$ -$ 2,785,391$ 1,471,647$ -$ -$ -$ -$ 45,000$ -$ -$ -$ -$ -$ 1,254,201 - - - - - 69,986 85,114 - - - - 1,082,301 1,105,152 - - - - 115,896 - - - - - 137,817 11,654 - - - - 100,000 - 31,708 - - - - 369,499 - - - - - 3,174,699$ 1,233,628$ -$ -$ -$ -$ 188 Project Title:Chiniak Warning Sirens Project Number: 12009 Project Description: Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Administration -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - Land - - - - - - - - Site Investigation 3,000 3,000 - - - - - - Design Services - - - - - - - - Construction 34,000 40,944 (6,944) - - - - - Equipment - 475 (475) - - - - - Other Services - - - - - - - - Contingency - - - - - - - - Overhead 8,000 581 7,419 - - - - Totals 45,000$ 45,000$ 0$ -$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:State of Alaska Operating Budget Effect:None Project Title:Emergency Generators Contingency Project Number: 12011 Project Description: Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Administration -$ -$ -$ -$ -$ -$ -$ -$ CM by Consultant 520 520 - - - - - - Land - - - - - - - - Site Investigation - - - - - - - - Design Services 100,000 88,869 11,131 - - - - - Construction 975,000 1,141,752 (166,752) - - - - - Equipment - - - - - - - - Other Services - - - - - - - - Contingency 151,245 - 151,245 - - - - - Overhead 50,000 23,048 26,952 - - - - - Totals 1,276,765$ 1,254,188$ 22,577$ -$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:State of Alaska Operating Budget Effect:None Project Title:Bayside Emergency Generator Project Number: 12016 Project Description: Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Administration -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - Land - - - - - - - - Site Investigation - - - - - - - - Design Services 26,288 28,295 (2,007) - - - - - Construction 116,288 173 116,116 85,114 - - - - Equipment - 28,847 (28,847) - - - - - Other Services - - - - - - - - Contingency 7,514 - 7,514 - - - - Overhead 5,010 12,671 (7,661) - - - - - Totals 155,100$ 69,986$ 85,114$ 85,114$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:State of Alaska and local fund Operating Budget Effect:None 189 Project Title:Metal Debris and Household Hazardous Waste Clean-up Project Number: 13004 Project Description: Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Administration -$ 98,784$ (98,783.99)$ -$ -$ -$ -$ -$ Project Laborers 240,174 94,682 145,492 145,492 - - - - Heavy Equipment Op 185,760 29,679 156,081 156,081 - - - - Metals Disposal 16,000 6,043 9,957 9,957 - - - - Safety Training 51,100 14,014 37,086 37,086 - - - - Materials/Supplies 615,160 72,296 542,864 542,864 - - - - Equipment 128,609 337,986 (209,377) - - - - - Travel 22,281 8,357 13,924 13,924 - - - - Barge Loading/Hauling 892,368 414,637 477,731 199,748 - - - - Barge Unloading 36,000 5,823 30,177 - - - - - Totals 2,187,452$ 1,082,301$ 1,105,152$ 1,105,152$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:United States Department of Interior Operating Budget Effect:None Project Title:Women's Bay Playground Upgrades Project Number: 13008 Project Description: Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Administration -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - Land - - - - - - - - Site Investigation - - - - - - - - Design Services - - - - - - - - Construction 30,000 31,588 (1,588) - - - - - Equipment 50,000 64,223 (14,223) - - - - - Other Services - - - - - - - - Contingency 10,000 - 10,000 - - - - - Overhead 10,000 4,190 5,810 - - - - - Totals 100,000$ 100,000$ -$ -$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:State of Alaska Operating Budget Effect:None Project Title:CIAP Trail Improvments Project Number: 13009 Project Description: Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Administration -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - Land - - - - - - - - Site Investigation - - - - - - - - Design Services - - - - - - - - Construction 208,540 113,760 94,780 - - - - - Equipment - - - - - - - - Other Services - - - - - - - - Contingency - - - - - - - - Overhead - 2,136 (2,136) - - - - Totals 208,540$ 115,896$ 92,644$ -$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:United States Department of Interior Operating Budget Effect:None 190 Project Title:Lake Orbin Culvert Replacement Project Number: 14001 Project Description: Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Administration -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - Land - - - - - - - - Site Investigation - - - - - - - - Design Services - - - - - - - - Construction 121,471 130,388 (8,917) - - - - - Equipment - - - - - - - - Other Services - - - - - - - - Contingency 23,000 - 23,000 11,654 - - - - Overhead 5,000 7,429 (2,429) - - - - - Totals 149,471$ 137,817$ 11,654$ 11,654$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:Kodiak Soil and Water Conservation District passthru USFWS Operating Budget Effect:None 191 This page intentionally left blank 192 Capital Projects FY16 Amended Completed FY 2017 FY 2017 Fund 460-Kodiak HS Renovation and Addition Budget Projects Amendments L-T-D Budget Revenues: Sale of Bonds 68,243,814$ -$ -$ 68,243,814$ State Grant 7,538,000 - - 7,538,000 Transfer in - Fund 420 4,167,212 - - 4,167,212 Transfer in - Fund 410 93,983 - - 93,983 Interest Earnings 436,000 - - 436,000 Total Revenues 80,479,009$ -$ -$ 80,479,009$ Projects: 10021 Kodiak High School Renovation and Renewal 80,479,009 - - 80,479,009 Total Borough Projects 80,479,009$ -$ -$ 80,479,009$ 193 Project Activity Activity Activity Activity Activity To Date FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 67,156,484$ 1,087,330$ -$ -$ -$ -$ 7,538,000 - - - - - 4,261,195 (93,983) - - - - - 93,983 - - - - 19,509 50,000 50,000 50,000 50,000 50,000 78,975,188$ 1,137,330$ 50,000$ 50,000$ 50,000$ 50,000$ 78,849,667 1,629,342 - - - - 78,849,667$ 1,629,342$ -$ -$ -$ -$ 194 Project Title:Kodiak High School Renovation and Renewal Project Number: 10021 Project Description:Renovate High School Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Construction Mgmt by Consultant 1,335,155$ 1,231,615$ 103,541$ 103,541$ -$ -$ -$ -$ Site Investigation - - - - - - - - Design Services 6,739,369 6,613,060 126,309 126,309 - - - - Construction 66,757,750 67,582,851 (825,101) - - - - - Equipment 2,000,000 1,798,530 201,470 201,470 - - - - District Admin Overhead 1,300,000 982,317 317,683 317,683 - - - - Art 667,578 641,295 26,283 26,283 - - - - Contingency 1,679,157 - 1,679,157 854,056 - - - - Totals 80,479,009$ 78,849,667$ 1,629,342$ 1,629,342$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:Bond Issue ; State of Alaska Operating Budget Effect:It should not be a material change in costs. 195 This page intentionally left blank 196 Capital Projects FY16 Amended Completed FY 2017 FY 2017 Fund 469-Renewal and Replacement Projects Budget Projects Amendments L-T-D Budget Revenues: Property Tax 1,698,076$ -$ -$ 1,698,076$ Legislative Grant - Emergency Generator 435,147 - - 435,147 Transfer in from General Fund 83,220 - - 83,220 Interest Earnings - - - - Hospital Loan 3,691,633 - - 3,691,633 Total Revenues 5,908,076$ -$ -$ 5,908,076$ Projects: 11002 East Elementary Generator & Building 1,213,625 Complete - 1,213,625 11003 Chiniak Remove UST 369,169 - - 369,169 11004 Ahkiok Teacherage Rehabilitation 45,379 Complete - 45,379 12001 Boro Bldg Exterior Repairs 357,127 - - 357,127 12007 Larsen Bay School Roof Replacement 598,200 Complete - 598,200 13006 Borough Building Rehab 1,718,932 - - 1,718,932 13007 Port Lions Exterior Painting 121,700 Complete - 121,700 13013 Auditorium Flooring Foyer & Hall 141,505 Complete - 141,505 R and R Contingencies 1,342,439 - - 1,342,439 Total Borough Projects 5,908,076$ -$ -$ 5,908,076$ 197 Project Activity Activity Activity Activity Activity To Date FY 2017 FY 2018 FY 2019 FY 2020 FY2021 1,580,783$ 117,293$ -$ -$ -$ -$ 437,413 (2,266) 83,220 - 178 (178) - - - - 944,764 2,746,869 - - - - 3,046,359$ 2,861,717$ -$ -$ -$ -$ 1,208,900 - - - - - 335,205 33,964 - - - - - - - - - - 313,943 43,184 - - - - 538,163 - - - - - 23,520 148,711 1,546,701 - - - 86,150 - - - - - - - - - - - - 1,342,439 - - - - 2,505,881$ 1,568,298$ 1,546,701$ -$ -$ -$ 198 Project Title:Chiniak Remove UST Project Number: 11003 Project Description:Remove Underground storage tank Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Construction by Consultant -$ -$ -$ -$ -$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services 58,685 58,535 150 150 - - - - Construction 244,872 230,264 14,608 14,608 - - - - Equipment 27,233 21,702 5,531 5,531 - - - - Other Services - - - - - - - - Contingency 15,225 - 15,225 13,675 - - - - Overhead 23,154 24,705 (1,551) - - - - - Totals 369,169$ 335,205$ 33,964$ 33,964$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:Loan from the Facilities fund to be paid off with property taxes Operating Budget Effect:None Project Title:Borough Building Exterior Painting Project Number: 12001 Project Description:Paint the main Borough building Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Construction by Consultant 4,550$ 4,550$ -$ -$ -$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services 32,966 18,433 14,534 14,534 - - - - Construction 275,965 279,273 (3,308) - - - - - Equipment - - - - - - - - Contingency 21,669 - 21,669 21,669 - - - - Overhead 21,977 11,687 10,290 6,981 - - - - Totals 357,127$ 313,943$ 43,184$ 43,184$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:Loan from the Facilities fund to be paid off with property taxes Operating Budget Effect:None Project Title:KMS Elevator Controls Project Number: 12006 Project Description:To replace elevator controls at Kodiak Middle School Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Construction by Consultant -$ -$ -$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services 2,722 - 2,722 2,722 - - - - Construction 45,374 - 45,374 45,374 - - - - Equipment - - - - - - - - Contingency 2,269 - 2,269 2,269 - - - - Overhead 1,475 46 1,429 1,429 - - - - Totals 51,840$ 46$ 51,794$ 51,794$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:Loan from the Facilities fund to be paid off with property taxes Operating Budget Effect:None 199 Project Title:Borough Building Rehab Project Number: 13006 Project Description: Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Construction by Consultant -$ -$ -$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services 171,893 23,182 148,711 148,711 - - - - Construction 1,203,253 - 1,203,253 - 1,203,253 - - - Equipment - - - - - - - - Contingency 171,893 - 171,893 - 171,893 - - - Overhead 171,893 338 171,555 - 171,555 - - - Totals 1,718,932$ 23,520$ 1,695,412$ 148,711$ 1,546,701$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding: Operating Budget Effect:None Project Title:Kodiak Middle School HVAC Controls Project Number: 13010 Project Description: Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Construction by Consultant -$ -$ -$ -$ -$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services - - - - - - - - Construction 1,537,255 - 1,537,255 1,537,255 - - - - Equipment - - - - - - - - Contingency - - - - - - - - Overhead - - - - - - - - Totals 1,537,255$ -$ 1,537,255$ 1,537,255$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding: Operating Budget Effect:None Project Title:Peterson HVAC Control Project Number: 13011 Project Description: Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Construction by Consultant -$ -$ -$ -$ -$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services - - - - - - - - Construction 624,427 - 624,427 624,427 - - - - Equipment - - - - - - - - Contingency - - - - - - - - Overhead - - - - - - - - Totals 624,427$ -$ 624,427$ 624,427$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding: Operating Budget Effect:None 200 Project Title:Middle School Paving Project Number: 13012 Project Description: Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Construction by Consultant -$ -$ -$ -$ -$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services - - - - - - - - Construction 415,383 - 415,383 415,383 - - - - Equipment - - - - - - - - Contingency - - - - - - - - Overhead - - - - - - - - Totals 415,383$ -$ 415,383$ 415,383$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding: Operating Budget Effect:None Project Title:Auditorium Flooring Foyer & Hall Project Number: 13013 Project Description: Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Construction by Consultant -$ -$ -$ -$ -$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services - - - - - - - - Construction 141,505 - 141,505 - - - - - Equipment - - - - - - - - Contingency - - - - - - - - Overhead - - - - - - - - Totals 141,505$ -$ 141,505$ -$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding: Operating Budget Effect:None 201 This page intentionally left blank 202 Capital Projects Fund 470-Borough Capital Projects: FY16 Amended Budget Completed Projects FY 2017 Amendments FY2017 L-T-D Budget Revenues Operating Transfers In: Proceeds from 2015 Series GO Bonds 10,230,000$ -$ -$ 10,230,000$ Interest Earnings - - - - Total Revenues 10,230,000$ -$ -$ 10,230,000$ Projects: 15003 East & KMS Roofing Replacement 1,367,248$ -$ -$ 1,367,248$ 15004 East Elementary Renovation 1,592,841 - - 1,592,841 15005 Main & Peterson Flooring Replacement 813,498 - - 813,498 15006 Peterson Elementary Boilers and Controls 1,019,428 - - 1,019,428 15007 KMS Fire Alarms, HVC & Elevator Controls 2,035,193 - - 2,035,193 15008 Ahkiok, Karluk & Ouz. Schools Flooring 383,489 - - 383,489 15009 Paving and UST Replacement 1,797,829 - - 1,797,829 15010 Playground Replacement 668,099 - - 668,099 15011 Main, Old Harbor & Port Lions UST 552,375 - - 552,375 Total Borough Projects 10,230,000$ -$ -$ 10,230,000$ 203 Project To date Activity FY 2017 Activity FY 2018 Activity FY 2019 Activity FY 2020 Activity FY 2021 8,000,000$ -$ 2,230,000$ -$ -$ -$ 31,766.02 - - - - - 8,031,766$ -$ 2,230,000$ -$ -$ -$ 89,601$ 1,277,647$ -$ -$ -$ -$ - - 1,592,841 - - - 73,621 739,877 - - - - 231,403 788,025 - - - - - - 2,035,193 - - - 100 - 383,389 - - - - - - 1,797,829 - - 12,951 655,148 - - - - - - 552,375 - - - 407,676$ 3,460,697$ 4,563,798$ 1,797,829$ -$ -$ 204 Project Title:East and KMS Roofing Replacement Project Number: 15003 Project Description:To replace roofs on East Elmentary and KMS Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Indirect Administration -$ -$ -$ -$ -$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services 100,043 66,056 33,987 33,987 - - - - Construction 1,111,584 14,146 1,097,438 1,097,438 - - - - Equipment - - - - - - - - Other Services - - - - - - - - Contingency 55,578 - 55,578 55,578 - - - - Overhead 100,043 9,399 90,644 90,644 - - - - Totals 1,367,248$ 89,601$ 1,277,647$ 1,277,647$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:GO Bonds - 70% Reimbursable by the State of Alaska Operating Budget Effect:None Project Title:East Elementary School Renovation Project Number: 15004 Project Description: Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Indirect Administration -$ -$ -$ -$ -$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services 116,549 - 116,549 - 116,549 - - - Construction 1,294,993 - 1,294,993 - 1,294,993 - - - Equipment - - - - - - - - Other Services - - - - - - - - Contingency 64,750 - 64,750 - - - - - Overhead 116,549 - 116,549 - 116,549 - - - Totals 1,592,841$ -$ 1,592,841$ -$ 1,528,091$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:GO Bonds - 70% Reimbursable by the State of Alaska Operating Budget Effect:None Project Title:Main and Peterson Elementary Flooring Replacement Project Number: 15005 Project Description:To replace flooring at Main and Peterson Elementary Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Indirect Administration -$ -$ -$ -$ -$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services 40,675 29,149 11,526 11,526 - - - - Construction 677,915 34,105 643,810 643,810 - - - - Equipment - - - - - - - - Other Services - - - - - - - - Contingency 33,896 - 33,896 33,896 - - - - Overhead 61,012 10,367 50,645 50,645 - - - - Totals 813,498$ 73,621$ 739,877$ 739,877$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:GO Bonds - 70% Reimbursable by the State of Alaska Operating Budget Effect:None 205 Project Title:Peterson Elementary Boilers and Controls Project Number: 15006 Project Description:To replace boilers and controls at Peterson Elementary Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Indirect Administration -$ -$ -$ -$ -$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services 66,848 55,749 11,099 11,099 - - - - Construction 835,597 165,862 669,735 669,735 - - - - Equipment - - - - - - - - Other Services - - - - - - - - Contingency 41,779 - 41,779 41,779 - - - - Overhead 75,204 9,792 65,412 65,412 - - - - Totals 1,019,428$ 231,403$ 788,025$ 788,025$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:GO Bonds - 70% Reimbursable by the State of Alaska Operating Budget Effect:None Project Title:KMS Fire Alarms, HVAC and Elevator Controls Project Number: 15007 Project Description:To replace fire alar, HVAC and elevator controls at KMS Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Indirect Administration -$ -$ -$ -$ -$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services 164,129 - 164,129 - 164,129 - - - Construction 1,641,285 - 1,641,285 - 1,641,285 - - - Equipment - - - - - - - - Other Services - - - - - - - - Contingency 82,063 - 82,063 - - - - - Overhead 147,716 - 147,716 - 147,716 - - - Totals 2,035,193$ -$ 2,035,193$ -$ 1,953,130$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:GO Bonds - 70% Reimburseable by the State of Alaska Operating Budget Effect:None Project Title:Ahkiok, Karluk and Ouzinkie Schools Flooring Replacement Project Number: 15008 Project Description:To replace flooring at Ahkiok, Karluk and Ouzinkie schools Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Indirect Administration -$ -$ -$ -$ -$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services 19,174 - 19,174 - 19,174 - - - Construction 319,574 - 319,574 - 319,574 - - - Equipment - - - - - - - - Other Services - - - - - - - - Contingency 15,979 - 15,979 - 15,979 - - - Overhead 28,762 100 28,662 - 28,662 - - - Totals 383,489$ 100$ 383,389$ -$ 383,389$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:GO Bonds - 70% Reimbursable by the State of Alaska Operating Budget Effect:None 206 Project Title:Paving and UST Replacement Project Number: 15009 Project Description: Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Indirect Administration -$ -$ -$ -$ -$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services 117,890 - 117,890 - - 117,890 - - Construction 1,473,630 - 1,473,630 - - 1,473,630 - - Equipment - - - - - - - - Other Services - - - - - - - - Contingency 73,682 - 73,682 - - - - - Overhead 132,627 - 132,627 - - 132,627 - - Totals 1,797,829$ -$ 1,797,829$ -$ -$ 1,724,147$ -$ -$ Cost Beyond 5-year program:None Source of Funding:GO Bonds - 70% Reimbursable by the State of Alaska Operating Budget Effect:None Project Title:Playground Replacements Project Number: 15010 Project Description:To replace/upgrade playground equipment Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Indirect Administration -$ -$ -$ -$ -$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services 41,289 - 41,289 41,289 - - - - Construction 575,055 - 575,055 575,055 - - - - Equipment - - - - - - - - Other Services - - - - - - - - Contingency - - - - - - - - Overhead 51,755 12,951 38,804 38,804 - - - - Totals 668,099$ 12,951$ 655,148$ 655,148$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:GO Bonds - 70% Reimbursable by the State of Alaska Operating Budget Effect:None Project Title:Main, Old Harbor and Port Lions UST Replacement Project Number: 15011 Project Description:To replace underground storage tanks at Main Elementary, Old Harbor and Port Lions Schools Expenditure Category Estimated Total Budget Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Indirect Administration -$ -$ -$ -$ -$ -$ -$ -$ Land - - - - - - - - Site Investigation - - - - - - - - Design Services 41,709 - 41,709 - 41,709 - - - Construction 447,952 - 447,952 - 447,952 - - - Equipment - - - - - - - - Other Services - - - - - - - - Contingency 22,398 - 22,398 - 22,398 - - - Overhead 40,316 - 40,316 - 40,316 - - - Totals 552,375$ -$ 552,375$ -$ 552,375$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:GO Bonds - 70% Reimbursable by the State of Alaska Operating Budget Effect:None 207 This page intentionally left blank 208 CAPITAL PROJECTS Fund 490-Enterprise Funds Capital Projects FY16 Amended Budget Completed Projects FY 2017 Additions FY2017 L-T-D Budget Revenues: Loan Payable ACWF 505031 3,000,000$ -$ -$ 3,000,000$ Reveue Bonds 3,650,000 - - 3,650,000 State Legistlative Grants 7,529,000 - - 7,529,000 Loan Payable ACWF 505041 14,463,548 - - 14,463,548 Loan Payable ACWF 505061 3,000,000 - - 3,000,000 Interest Earnings 357,452 - - 357,452 Total Revenues/Transfers In 32,000,000$ -$ -$ 32,000,000$ Projects: 07013 Landfill Lateral Expansion 32,000,000 - - 32,000,000 Total State Grant Projects 32,000,000$ -$ -$ 32,000,000$ 209 Project To Date Activity FY 2017 Activity FY 2018 Activity FY 2019 Activity FY 2020 Activity FY 2021 3,000,000$ -$ -$ -$ -$ -$ - 3,650,000 - - - - 7,529,000 - - - - - 11,537,879 2,925,669 - - - - 3,000,000 - - - - - - 357,452 - - - - 25,066,879$ 6,933,121$ -$ -$ -$ -$ 27,717,575 4,282,425 - - - - 27,717,575$ 4,282,425$ -$ -$ -$ -$ 210 Project Title:Landfill Lateral Expansion Project Number: 07013 Project Description:To extend the landfill Expenditure Category Estimated Total Cost Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Construction Mtg In House 200,000$ 167,578$ 32,422$ 32,423$ -$ -$ -$ -$ Construction Admin Consultant 10,000 7,670 2,330$ 2,330 - - - - Design Services 3,750,000 3,416,012 333,988$ 333,988 - - - - Construction 25,000,000 23,640,749 1,359,251$ 1,359,251 - - - - Equipment 75,000 1,240 73,760$ 73,760 - - - - Contingency 2,215,000 - 2,215,000$ 2,215,000 - - - - Indirect Admin 750,000 484,327 265,673$ 265,673 - - - - Totals 32,000,000$ 27,717,575$ 4,282,425$ 4,282,425$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:State Grant and Loan Operating Budget Effect:None 211 This page intentionally left blank 212 CAPITAL PROJECTS Fund 495-Enterprise Funds Capital Projects FY16 Amended Budget Completed Projects FY 2017 Additions FY2017 L-T-D Budget Revenues: State Grants 1,105,758 - - 1,105,758 Bond Proceeds 18,524,242 - - 18,524,242 Interest earnings 150,000 - - 150,000 Transfers in: General Fund 85,000 - - 85,000 Total Revenues/ Transfers In 19,865,000$ -$ -$ 19,865,000$ Projects: 09010 Hospital Care Center Design 19,865,000 - - 19,865,000 Total State Grant Projects 19,865,000$ -$ -$ 19,865,000$ 213 Project To Date Activity FY 2017 Activity FY 2018 Activity FY 2019 Activity FY 2020 Activity FY 2021 1,105,758 - - - - - 18,524,242 - - - - - 152,740 - - - - - 85,000 - - - - - 19,685,000$ -$ -$ -$ -$ -$ 15,567,986 - - - - - 15,567,986$ -$ -$ -$ -$ -$ 214 Project Title:Hospital Care Center Design Project Number: 09010 Project Description:Conceptual planning and design for a new care center Expenditure Category Estimated Total Cost Prior Years Expenditures Project Balance 2016-17 2017-18 2018-19 2019-20 2020-21 Construction Mgt in House 9,174$ 9,307$ (133)$ -$ -$ -$ -$ -$ Const. Mgt by Consultant 7,865 7,865 - - - - - - Site Investigation 15,350 15,377 (27) - - - - - Design Services 1,237,148 948,054 289,094 - - - - - Construction 15,464,346 14,406,997 1,057,349 - - - - - Equipment - - - - - - - - Indirect Administration 607,599 180,386 427,213 - - - - - Project Contingency 2,523,518 - 2,523,518 - - - - - Totals 19,865,000$ 15,567,986$ 4,297,014$ -$ -$ -$ -$ -$ Cost Beyond 5-year program:None Source of Funding:General Fund Operating Budget Effect:None 215 ENTERPRISE FUNDS Enterprise Funds Description Enterprise funds are a different type of fund than the General or Special Revenue Funds. They are similar to business operations in that they facilitate their expenses based on the revenues they generate from the charges on the services they provide. The Borough has four enterprise funds, they are: Municipal Solid Waste, Hospital Facility, the Kodiak Fisheries Research Center and 911 Emergency Telephone Services. 216 ENTERPRISE FUNDS Included in the Enterprise Funds of the Kodiak Island Borough are solid waste management, the hospital, the Kodiak Fisheries Research Center and 911 Services. Enterprise Funds Recap Solid Waste Enterprise Fund Hospital Enterprise Fund Kodiak Fisheries Research Center 911 Service Total Beginning Net Assets 4,073,212$ 30,570,925$ 11,138,928$ -$ 45,783,065$ Revenues Disposal Fees 3,142,634 - - - 3,142,634 Rents and Royalties - 1,947,800 1,010,797 - 2,958,597 PERS on Behalf Payment 123,336 - 34,939 - 158,275 Metal Recylcing 6,800 - - - 6,800 Customer Charges - - - 35,000 35,000 Interest Earnings 30,000 142,583 40,000 - 212,583 Use of Fund Balance 465,732 96,958 552,447 - 1,115,137 Transfers in - 66,500 45,000 - 111,500 Total Revenues and Transfers In 3,768,502 2,253,841 1,683,183 35,000 7,740,526 Total Available Funds 7,841,714 32,824,766 12,822,111 35,000 53,523,591 Expenses Waste Disposal - - - - Personnel Costs 1,481,302 34,000 422,802 1,500 1,939,604 Contracted Services 230,000 - - 33,400 263,400 Dorm Facility - - 38,300 - 38,300 Depreciation 950,925 1,390,679 637,381 - 2,978,985 Debt Service Interest - 721,162 - - 721,162 Other 1,106,275 108,000 584,700 100 1,799,075 Total Use of Funds 3,768,502 2,253,841 1,683,183 35,000 7,740,526 Est. Net Assets 06/30/2017 4,073,212$ 30,570,925$ 11,138,928$ -$ 45,783,065$ 217 This page intentionally left blank 218 PROGRAM BUDGET SUMMARY MUNICIPAL SOLID WASTE Program Description The Kodiak Island Borough manages the solid waste collection services with a private contractor and provides waste disposal and limited recycling services for the residents and commercial generators located on the Kodiak road system. Residents and commercial waste generators may also deliver solid waste such as garbage, household hazardous waste, construction debris, scrap metal, asbestos, and used oil to the baler facility for disposal. The Engineering/Facilities Department is responsible for the administration, operation, and maintenance of the baler facility, landfill area, and the newly completed Leachate Treatment Plant. The landfill is operated in compliance with federal, state, and local regulations and guidelines. Goals  To provide cost effective, environmentally safe waste collection, disposal, and recycling services for the generators located on the Kodiak road system. To strengthen the Integrated Solid Waste Management Policy, required by the State, by following the hierarchy of: (1) Waste Source Reduction (2) Recycling (3) Treatment of all leachate. (4) Disposal wherever economically feasible. (5) Focus on the startup of the new Leachate Treatment Plant and associated supporting infrastructure.  Achieve solid waste diversion goals of 50% by 2020 in accordance with the Borough’s Strategic Plan.  Establish improvements to solid waste collection system in accordance with the Borough’s Solid Waste Management Plan. Objectives for 2016-2017  Manage the long-term contract for collection.  Establish and manage a plan for next steps in progression toward Solid Waste Management Plan goals.  Complete construction of the Leachate Treatment Plant.  Search for funding sources to augment local funds needed for closure/post closure and expansion expenses.  Compile and fund a long term major maintenance plan for the Baler Building Facility and the soon to be completed Leachate Treatment Plant. Significant Budget Changes There is an increase in the budget to keep pace with landfill operating costs. A 15% budget increase is proposed to fund the following:  Operation of the new Leachate Treatment Plant  Repair and replacement of the Landfill Baler floor and roof  Replace the Landfill Scale Shack  Replace Landfill heavy equipment scheduled for this year  Begin installment payments for landfill construction bonds 219 MUNICIPAL SOLID WASTE REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Penalties & Interest Tax 8,153$ 5,791$ 2,000$ 9,267$ 2,000$ Licenses & Permits - - - - - PERS on Behalf Payment - 24,487 38,357 29,193 123,336 Disposal Fees 2,207,846 2,569,261 2,808,000 2,373,383 3,140,634 Interest Earnings 67,093 23,929 30,000 71,983 30,000 Miscellanous 89,372 48,137 71,617 19,988 6,800 Transfers In 13,500 64,383 6,000 713 - Premium on Bonds 27,211 27,211 - - - Use of Fund Balance - - 812,803 - 465,732 TOTAL REVENUES 2,413,175$ 2,763,199$ 3,768,777$ 2,504,526$ 3,768,502$ Expenditures WASTE DISPOSAL: Personnel Services 487,641$ 348,122$ 639,233$ 591,915$ 697,711$ Employee Benefits 388,712 488,913 421,266 398,412 540,590 Contracted Services 174,455 133,047 181,000 140,084 143,000 Legal Fees 10,829 5,958 8,000 27,746 4,000 Contributions 39,106 38,909 46,000 34,885 46,000 Support Goods & Services 701,779 769,317 1,080,300 671,140 546,400 Capital Outlay - 4,848 - - - Debt Service Interest - - - 10,462 - Closure/Post Closure (377,471) 422,016 - 1,926,769 25,000 Other - (12,345) - - - Depreciation 278,342 269,275 322,619 302,906 414,000 Subtotal 1,703,392$ 2,468,060$ 2,698,418$ 4,104,319$ 2,416,701$ LEACHATE PLANT: Personnel Services - - 127,827 56,686 136,525 Employee Beneftis - - 84,907 39,895 106,476 Professional Services - - 69,000 27,751 87,000 Supprt Goods & Services - - 251,700 138,545 464,875 Capital Outlay - - - - 20,000 Depreciation - - 536,925 - 536,925 Subtotal - - 1,070,359 262,877 1,351,801 TOTAL EXPENDITURES 1,703,392$ 2,468,060$ 3,768,777$ 4,367,196$ 3,768,502$ PERSONNEL Position:FY 2014 FY 2015 FY 2016 FY 2017 Enviromental Specialist 1 1 1 1 Baler/Landfill Supervisor 1 1 1 1 Baler Operator II 2 1 1 1 Baler Operator I 3 4 4 4 Landfill Attendant 0 0 0 1 TOTAL 7 7 7 8 Position: Treatment Plant Operator Lead 0 0 1 1 Treatment Plant Operator 0 0 0 1 Treatment Plant Operator Trainee 0 0 0 1 TOTAL - - 1 3 220 PROGRAM BUDGET SUMMARY HOSPITAL ENTERPRISE FUND Program Description On April 22, 1997, the Kodiak Island Borough leased the Kodiak Island Hospital to Providence Health System in Alaska. The hospital is now known as the Providence Kodiak Island Medical Center to reflect the partnership. The lease payment made to the Kodiak Island Borough is $60,000 per month. More recently, the Borough has constructed a 22 bed long-term care facility. The construction project will be complete in fall 2016, however construction is substantially complete and people have already moved into the facility. This long term care center is leased to Providence Health and Services in Alaska; lease payments made by Providence will cover all the Borough’s expenses related to this facility. The Fern Fuller Trust also provides revenue to this fund annually for the purchase of new equipment. For FY2017 we are budgeting $66,500 from this source. Goal  This fund collects lease and other resources to be used for maintenance of current facilities and construction of new facilities. Objectives for 2016-2017  To purchase replacement equipment.  To maintain a healthy fund balance.  To work towards completing the R&R schedules as they come due. Significant Budget Changes There are no significant budget changes for FY2017. 221 HOSPITAL ENTERPRISE FUND REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Interest Earnings 73,207$ 34,410$ 40,000$ 147,986$ 142,583$ LTC Lease 430,000 1,039,789 1,041,360 1,239,827 1,227,800 Providence Lease 720,000 720,000 720,000 720,000 720,000 Other - - - - - Use of Fund Balance - - 117,818 - 96,958 Operating Transfers In 66,500 66,500 66,500 66,500 66,500 Premium on Bonds 113,821 113,821 85,360 113,822 - TOTAL REVENUES 1,403,528$ 1,974,521$ 2,071,038$ 2,288,134$ 2,253,841$ Expenditures Employee Salaries 10,000$ 30,000$ 10,000$ 22,000$ 34,000$ Employee Benefits - - - - - Support Goods & Services 5,791 49 - 75 - Contracted Services 100 - - - - Depreciation 867,914 842,644 1,222,500 1,133,501 1,390,679 Debt Service Interest 748,721 782,943 730,538 - 721,162 Operating Transfers - - - - - Contributions 108,000 108,000 108,000 108,000 108,000 TOTAL EXPENDITURES 1,740,525$ 1,763,637$ 2,071,038$ 1,263,576$ 2,253,841$ 222 PROGRAM BUDGET SUMMARY KODIAK FISHERIES RESEARCH CENTER Program Description The Kodiak Island Borough is the owner/landlord of this state of the art fisheries research center. This facility is managed, operated and maintained by the Engineering and Facilities department of the Borough. The Kodiak Fisheries Research Center (KFRC) houses a multi-agency research team committed to the preservation, enhancement and management of the North Pacific and Arctic marine ecosystems. In addition, the KFRC contains a public interpretive center that provides an educational and interactive overview of marine life through graphic display panels, interactive computer programs and videos, a topographic map of Kodiak Island, a touch tank with live tide pool creatures and a 10 foot diameter aquarium featuring local marine finfish, shellfish and other marine organisms. The Center also leases office space the Kodiak Island Borough School District and the State of Alaska Department of Fish and Game. The main source of revenue from this facility is in the form of lease payments. The major tenant of the facility is the National Oceanic and Atmospheric Administration (NOAA) and its subsidiary, National Marine Fisheries Service (NMFS), as well as the State of Alaska’s Department of Fish and Game and the Kodiak Island Borough School District. Goals  To provide a world-class research center for use by the National Marine Fisheries Service (a division of NOAA), the Alaska Department of Fish and Game, and the University of Alaska School of Fisheries and Marine Science.  Provide an interpretive center to enhance the public’s knowledge, understanding and appreciation of the rich diverse ecosystem surrounding the Kodiak Archipelago. Objectives for 2016-2017 • To minimize the vacancy rate of leasable space in the facility. • Work with tenants to create flexible space for future research grants. • Clean (pig) the intake lines on a Bi-annual basis. • Working with NOAA on a funding source for their chiller needs. This will reduce the electrical load on the building, supply supplemental heat to the facility and supply t he critically needed chilled seawater to the labs. • Renewal and Replacement of vertical turbine pumps columns and shafts. Significant Budget Changes There are no significant budget changes for FY2017. 223 KODIAK FISHERIES RESEARCH FACILITY REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues PERS on Behalf Payment $ - $ 8,162 $ 10,600 $ 10,229 $ 34,939 Interest Earnings 38,550 22,485 20,000 32,212 40,000 Rents and Royalties 1,848,802 2,258,392 1,642,417 1,605,327 1,004,677 Miscellanous - Classified 2,959 8,640 6,780 8,640 6,120 Operating Transfers In - 21,474 - - 45,000 Use of Fund Balance - - 126,947 - 552,447 TOTAL REVENUES 1,890,310$ 2,319,153$ 1,806,744$ 1,656,407$ 1,683,183$ Expenditures RESEARCH FACILITY Personnel 216,571$ 124,910$ 231,276$ 211,220$ 242,898$ Employee Benefits 137,039 144,667 140,907 129,497 179,904 Support Goods & Services 4,734 3,039 11,800 7,163 164,500 Depreciation 636,142 636,139 750,111 641,669 637,381 Debt Service-Interest 225,401 188,300 - 148,663 - Janitorial 50,114 51,403 61,250 51,990 60,200 Heating 143,228 83,362 155,000 54,179 110,000 Electrical 148,287 147,060 150,000 139,799 144,000 Plumbing 40,120 28,023 127,000 45,018 37,000 Air Conditioning - 5,988 2,500 143 2,000 Elevators 2,150 1,800 3,000 2,680 2,500 Miscellaneous 36,732 33,725 78,000 36,873 59,500 Building Repair and Maint 630 5,489 50,000 770 5,000 Other - (4,115) - - - Subtotal 1,641,147$ 1,449,790$ 1,760,844$ 1,469,665$ 1,644,883$ DORM FACILITY Personnel 3,524$ 3,754$ -$ 4,598$ 400$ Employee Benefits 2,224 1,963 - 2,759 - Support Goods & Services - (318) - - - Janitorial 424 2,867 1,200 1,460 1,500 Heating 12,062 9,932 16,000 6,607 13,500 Electrical 4,697 4,861 6,500 4,380 5,700 Plumbing 10,264 5,988 8,000 5,389 8,000 Air Conditioning 628 - - - - Elevator - - 500 - - Miscellaneous 6,136 6,872 11,200 7,149 8,200 Bldg Repair/Maint 4 908 2,500 410 1,000 Subtotal 39,962$ 36,829$ 45,900$ 32,753$ 38,300$ TOTAL EXPENDITURES 1,681,109$ 1,486,619$ 1,806,744$ 1,502,418$ 1,683,183$ PERSONNEL Position:FY 2014 FY 2015 FY 2016 FY 2017 Maintenance Engineer 1 1 1 1 Receptionist/Interpretive Specialist 1 1 1 1 Maintenance Coordinator 0.2 0.2 0.2 0.2 Receptionist 0.5 0.5 0.5 0.5 TOTAL 2.7 2.7 2.7 2.7 224 PROGRAM BUDGET SUMMARY 911 SERVICE Program Description This program is funded solely by a levy on individual phone lines in the area served. This levy generates approximately $2,900 in revenue each month. The program provides for maintenance of an enhanced emergency response call-in system. The system hardware (located in the City of Kodiak dispatch center) instantly displays owner and address information from the phone number calling 911. This system ensures appropriate and timely response to anyone calling, even when they are incapable of conversing with the dispatcher. The Community Development department is responsible for maintenance of the mapping that supports the E911 system. Goal  Provide quick and efficient emergency service to all service subscribers. Objectives for 2016-2017  To maintain an enhanced 911 telephone system that provides emergency response to callers.  To ensure that local street addressing supports enhanced 911 system operations.  To explore expansion of the system to additional geographic areas in the region; and additional emergency notification options. Significant Budget Changes There are no significant budget changes in FY201 7. 225 911 SERVICE REVENUES AND EXPENDITURES FY 2014 Actual FY 2015 Actual FY 2016 Budget FY 2016 Actual FY 2017 Budget Revenues Interest Earnings -$ -$ -$ -$ -$ Customer Charges 39,817 33,961 40,000 30,417 35,000 TOTAL REVENUES 39,817$ 33,961$ 40,000$ 30,417$ 35,000$ Expenditures Allocated Salaries 3,000$ 3,000$ 1,500$ 1,500$ 1,500$ Contracted Services 36,719 30,869 38,400 28,818 33,400 Support Goods & Services 98 92 100 98 100 TOTAL EXPENDITURES 39,817$ 33,961$ 40,000$ 30,417$ 35,000$ 226 This page intentionally left blank 227 APPENDIX STATISTICAL INFORMATION GENERAL INFORMATION The Kodiak Island Borough lies at the western border of the Gulf of Alaska, about 40 miles south of the Kenai Peninsula and approximately 200 miles south of Anchorage. Nearly two-thirds of the Borough lies in the Kodiak Archipelago. One-third of the Borough is on the Alaska Peninsula across the Shelikof Strait from Kodiak Island. The Borough encompasses 7,130 square miles, making it slightly smaller than the State of Massachusetts. The Borough was incorporated September 30, 1963 as a Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended. The general population of the Kodiak Island Borough fluctuates between 14-15,000 with most of the population located in and around the largest City on the island, Kodiak. There are also five other cities/communities located throughout the archipelago, all accessible only by small commuter aircraft or boat. A large portion of the borough encompasses the National Kodiak Wildlife Refuge (approximately 1.9 million acres) which is managed by the U. S. Fish and Wildlife Service. ECONOMIC CONDITION AND OUTLOOK The economic condition of the Kodiak Island Borough remains healthy. The main industries of the Borough are commercial fishing, tourism, government, and community support services. While some segments of the commercial fishing industry have declined, others have grown. Tourism continues to grow in Kodiak with an increased number of visitors each year. To accommodate this demand, construction of fishing lodges, bed and breakfast accommodations and recreational facilities have increased along with an increase in charter boat and guide operations. There have also been a number of cruise ships visiting Kodiak in recent years as the cruise ship companies have expanded their tours of Alaska’s coastal communities. Relatively new to the Kodiak Island Borough is 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 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 1,400 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. 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 700 commercial vessels and consistently ranks among the top ten ports in the United States in terms of amount and value of product delivered. The preliminary unemployment rate at June 30, 2016 is 6.7%, compared 6.9% at June 30, 2015. Hiring of seasonal cannery workers traditionally peaks around July and is virtually nil in December, which generally accounts for seasonal lows and highs in unemployment. The local unemployment rate has fluctuated from 4.9% to 7.4% over the last five years, but the overall average has remained around 6.2%. Kodiak’s general real estate market has been increasing since the late 1980’s. From about the year 2000 until the general crash of the lower forty-eight real estate market in 2007 Kodiak’s market was increasing by 6-12% annually. When the real estate economy and the general economy of this country fell drastically in 2007, the Kodiak real estate market generally continued to grow 2-4% annually through 2012. The market leveled out in 2013 and 2014, for the most part, but sales in 2016 show a continued value increase of about 2%. The assessed value of real and personal property in the Kodiak Island Borough rose from $835,525,537 in fiscal 228 year 2008 to $1,312,339,398 in fiscal year 2017, an increase of approximately 57% over ten years. In 2014 we saw a drastic change in the price per barrel of oil. Oil royalties and taxes are the main source of revenue for the State. This impacts all communities in Alaska as the State’s revenue sharing will be adversely impacted as well as State contributions to education and State funded projects that add employment and cash flow to many communities will be drastically reduced. For Kodiak, the affect is less dramatic as Kodiak’s economy is mainly centered on the fishing and fish processing industries. Overall catch levels and landings have remained fairly constant over the last few years and 2017 projections point to a continuation of this trend. Prices and various species landings vary, but overall this is a very stabilizing element of the local economy in providing employment, demand for subsidiary industries and businesses, and strengthening the tax base with both severance and raw fish taxes. We believe the Kodiak Island Borough will continue to grow economically through the next decade. Our deposits in local banks (up 73 % in last ten years) point in this direction. At the same time there is a real possibility that our population will decrease. 229 KODIAK ISLAND BOROUGH MAYOR AND ASSEMBLY Term Expires MAYOR Jerrol Friend 2016 PO Box 175 Kodiak, AK 99615 ASSEMBLY MEMBERS Kyle Crow 2018 410 W. Rezanof Dr. Kodiak, AK 99615 Larry LeDoux 2017 P.O. Box 1042 Kodiak, AK 99615 Frank Peterson, Jr. 2016 P.O Box 8868 Kodiak, AK 99615 Dan Rohrer 2017 PO Box 786 Kodiak, AK 99615 Rebecca Skinner 2017 326 Center Ave., Ste 204 Kodiak, AK 99615 Mel Stephens 2016 PO Box 1129 Kodiak , AK 99615 Dennis Symmons 20 18 PO Box 8957 Kodiak, AK 99615 BOROUGH MANAGER Michael Powers 710 Mill Bay Road Kodiak, AK 99615 Phone: (907) 486-9300 Fax: (907) 486-9374 BOROUGH CLERK Nova Javier, CMC 710 Mill Bay Road Kodiak , AK 99615 Phone: (907) 486-9310 Fax: (907) 486-9374 BOROUGH ATTORNEY Levesque Law Group 3380 C Street Suite 202 Anchorage, AK 99503 Phone: (907) 261-8931 222 Borough Offices Mailing Address Kodiak Island Borough 710 Mill Bay Road Kodiak,AK 99615 Web Address www.kodiakak.us Departments Assessing Department 907 486 9353 Clerk’s Office 907 486 9310 Engineering/Facilities Department 907 486 9343 Baler Facility 907 486 9345 Kodiak Fisheries Research Center 907 481 1800 Finance Department 907 486 9323 Cashier 907 486 9324 Management Information Services 907 486 9333 Manager's Office 907 486 9300 Other Borough Contacts Bayside Fire Station 907 486 4536 Women’s Bay Volunteer Fire Department 907 487 4312 Contact Information 223 This page left intentionally blank 224 2010 2011 2012 2013 2014 2015 2016 Borough Clerk 3333333 Manager 3443455 Assessor 4 5 5 5 5 5 5 Engineering/Facilities 4.25 4.2 4.2 5.3 5.3 5.5 5.5 Community Development 5 4.2 4.2 4.6 4.6 5 5 Finance 7 6.75 6.75 7 7 7 7 Finance/Informational Technology 3 4 4.25 3.5 3.5 4 4 Subtotal General Fund 29.25 31.15 31.4 31.4 32.4 34.5 34.5 Land Sales 1 2 2 1.1 1.1 1 1 Building and Grounds 2 1.2 1.2 2 2 2 2 Bayside Fire Department 1111111 Municipal Solid Waste 77.87.87777 Kodiak Fisheries Research 22.62.63333 Total 42.25 45.75 46 45.5 46.5 48.5 48.5 FY2010 FY2016 Personnel Count 225 Step ASSESSING Director E82 $84,656 $126,683 Property Appraiser 19.0 $57,930 $77,909 Appraiser Technician 14.0 $45,255 $60,862 Assessment Clerk II 12.0 $40,988 $55,138 Assessment Clerk I 10.0 $37,142 $49,953 CLERK'S OFFICE Director E81 $80,624 $120,651 Administrative Support Specialist B23 $47,139 $70,544 Administrative Support Specialist B21 $42,757 $63,987 COMMUNITY DEVELOPMENT Director E82 $84,656 $126,683 Assistant Planner 16.0 $49,953 $67,180 Associate Planner/LRP 20.5 $62,384 $83,899 Associate Planner/ENF 20.5 $62,384 $83,899 Code Enforcement Officer 18.5 $56,517 $76,009 GIS Analyst 19.0 $57,930 $77,909 Secretary Ill 11.0 $39,023 $52,482 ENGINEERING &FACILITIES Director E83 $88,888 $133,017 Solid Waste Manager/Environmental Specialist 23.0 $70,581 $94,925 Projects Manager C42 $57,298 $85,746 Maintenance Administrator C42 $57,298 $85,746 Solid Waste Baler/Landfill Supervisor 19.5 $59,378 $79,857 Projects Inspector B24 $49,496 $74,070 Maintenance Engineer KFRC 19.0 $57,930 $77,909 Projects Manager 20.0 $60,862 $81,853 Projects Assistant 17.5 $53,793 $72,346 Baler Operator II 17.5 $53,793 $72,346 Maintenance Mechanic 17.0 $52,482 $70,581 Baler Operator I 16.0 $49,953 $67,180 Secretary Ill 11.0 $39,023 $52,482 Interpretive Specialist/Receptionist KFRC 10.5 $38,071 $51,201 FINANCE DEPARTMENT Director E83 $88,888 $133,017 General/Revenue Accountant 20.5 $62,384 $83,899 Accounting Technician AP /Payroll 15.0 $47,545 $63,944 Cashier 11.0 $39,023 $52,482 Secretary Ill 11.0 $39,023 $52,482 PAY RANGE CLASS TITLES AND PAY RANGES DEPARTMENT 226 DEPARTMENT Step MANAGEMENT INFORMATION SYSTEMS IT Supervisor 20.5 $62,384 $83,899 Programmer/Analyst 19.0 $57,930 $77,909 PC Tech II 17.0 $52,482 $70,581 PC Tech I 14.5 $46,386 $62,384 MANAGER'S OFFICE Borough Manager Contract Resource Management Officer 21.5 $65,542 $88,147 Management Analyst C42 $57,298 $85,746 Management Analyst C41 $54,570 $81,664 SERVICE DISTRICTS Manager D61 $69,646 $104,223 NOTES * * *Union employees are paid under the old pay scale (denoted by numeric steps) Non union employees are paid under the new pay scale adopted June 2014 (denoted by alpha numeric steps) CLASS TITLES AND PAY RANGES (cont'd) PAY RANGE Employees hired on or before July 7,1983 receive a longevity bonus of 5,I 0,or 15%. Employees hired between July 8,1983 and September 30,1994 receive a longevity bonus of 5 or 10%.Employees hired after October 1,1994 receive a longevity bonus of 5%.The amount of the bonus is determined by years of service. 227 Fiscal School Unemployment Year Population (a) Enrollment (b) Rate (c) 2006 13,457 2,718 7.3% 2007 13,664 2,636 6.0% 2008 13,954 2,671 6.6% 2009 13,860 2,598 7.1% 2010 13,592 2,567 7.2% 2011 13,870 2,543 7.1% 2012 13,870 2,517 6.3% 2013 13,824 2,513 5.6% 2014 13,797 2,483 5.8% 2015 13,819 2,444 4.9% 2016 Not available 2,437 5.3% Sources:(a)State Department of Labor (b)State of Alaska Department of Education (c)State of Alaska,Department of Labor and Workforce Development DEMOGRAPHIC STATISTICS KODIAK,ALASKA Last Ten Fiscal Years 2300 2350 2400 2450 2500 2550 2600 2650 2700 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 School Enrollment Source: State of Alaska Department of Education 228 13,100 13,200 13,300 13,400 13,500 13,600 13,700 13,800 13,900 14,000 14,100 Actual and Projected Population FY2005 2015 Actual,FY2016 FY2019 Projected Source: Kodiak Island Borough records Deposits in Local Banks Fiscal No.of No.of Year Permits Value Permits Value Commercial Residential 2006 30 1,555,718 192 10,372,416 141,434,000 213,258,488 497,589,811 2007 42 3,277,292 148 8,780,900 140,915,000 227,514,405 507,013,524 2008 53 25,269,361 129 7,875,188 139,416,000 275,369,008 528,138,324 2009 50 34,081,887 147 7,848,428 175,141,000 312,122,205 610,877,819 2010 52 4,756,120 156 11,687,178 192,242,000 327,248,533 665,668,816 2011 46 24,165,884 158 6,666,400 194,289,000 317,950,418 725,191,600 2012 48 5,693,295 119 4,477,641 227,392,000 345,529,161 741,503,300 2013 59 85,969,566 160 5,649,717 230,391,000 364,353,810 767,122,801 2014 44 33,062,171 111 3,589,833 252,999,000 386,480,100 788,418,800 2015 56 30,619,135 142 4,991,907 239,129,000 452,535,972 750,341,200 2016 56 4,882,606 160 5,983,768 245,354,000 557,583,376 754,756,022 *Estimated value of real property Source:Borough Assessing records and City of Kodiak building department. CONSTRUCTION PROPERTY VALUE* Commercial Residential PROPERTY VALUE,CONSTRUCTION AND BANK DEPOSITS KODIAK,ALASKA Last Ten Fiscal Years 229 0 200,000,000 400,000,000 600,000,000 800,000,000 1,000,000,000 1,200,000,000 1,400,000,000 1,600,000,000 200620072008200920102011201220132014201520162017201820192020Projected Assessed Values 2006 2016 actual,2017 2020 projected Source: Kodiak Island Borough Certified Roll 0 1000 2000 3000 4000 5000 6000 Bristol Bay Borough Haines Borough Lake &Peninsula Borough Kenai Peninsula Borough Denali Borough Aleutians East Borough Matanuska Susitna Borough Ketchikan Gateway Borough Fairbanks North Star Borough Kodiak Island Borough Per Capita Tax Comparison Boroughs Only 230 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 20062007200820092010201120122013201420152016201720182019Severance Taxes Years 2006 2016 are actuals,2017 2019 are projections Mining (gravel) Timber Fish Source: Kodiak Island financial records 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 20062007200820092010201120122013201420152016201720182019Raw Fish Tax 2006 2016 are actuals,2017 2019 are projections Source: Kodiak Island financial records 231 MISCELLANEOUS STATISTICAL DATA Last Ten Fiscal Years 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 Borough: Land area square miles 7,130 7,130 7,130 7,130 7,130 Miles of improved street 25.6 25.6 25.6 25.6 25.6 Building Permits: Permits issued 190 182 197 208 204 Value of buildings (thousands) 12,058 7,874 41,930 16,443 30,832 Fire Protection : Number of fire stations 22222 Number of employees 1 1 1 1 1 Police Protection:none Recreation: Parks (number of acres) 223 223 223 223 223 Facilities: Number of playgrounds 1515151515 Number of swimming pools 11111 Public Education Number of schools Kodiak Area Elementary School 44444 Kodiak Area Middle School 11111 Kodiak Area High School 11111 Village Schools (a) 76777 Number of staff support personnel (b) 202.4 204.8 217.3 teachers (c) 208.52 217.78 202.62 students 2,636 2,671 2,598 2,567 2,543 Number of Municipal Employees 4343434747 Elections: Number of registered voters 9,417 9,587 9,599 9,649 9,649 Number voting in last election 2,407 2,105 2,477 2,480 2,480 Percent of registered voters 26% 22% 26% 26% 26% (a)the majority of Village Schools are grades K 12 (b)all non teaching employees (Provided by the City of Kodiak within the city limits and by the State of Alaska outside the city boundaries.) (c)School district personnel figures including staffing from the General fund and Grants.Grant staffing varies from year to year depending on the number of grants received. 232 MISCELLANEOUS STATISTICAL DATA (cont'd) Last Ten Fiscal Years 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 Borough: Land area square miles 7,130 7,130 7,130 7,130 7,130 Miles of improved street 25.6 25.6 25.6 25.6 25.6 Building Permits: Permits issued 167 219 155 198 216 Value of buildings (thousands) 6,141 91,619 36,652 35,611 10,856 Fire Protection : Number of fire stations 22222 Number of employees 11111 Police Protection:none Recreation: Parks (number of acres) 223 223 223 223 223 Facilities: Number of playgrounds 15 15 15 15 15 Number of swimming pools 11111 Public Education Number of schools Kodiak Area Elementary School 44444 Kodiak Area Middle School 11111 Kodiak Area High School 11111 Village Schools (a) 77777 Number of staff support personnel (b) teachers (c) students 2,517 2,513 2,483 2,444 2,437 Number of Municipal Employees 454445 4444 Elections: Number of registered voters 9,479 9,585 9,100 9,585 9,585 Number voting in last election 2,139 1,250 1,968 1,800 1,800 Percent of registered voters 23% 13% 22% 19% 19% (a)the majority of Village Schools are grades K 12 (b)all non teaching employees (c)School district personnel figures including staffing from the General fund and Grants.Grant staffing varies from year to year depending on the number of grants received. (Provided by the City of Kodiak within the city limits and by the State of Alaska outside the city boundaries.) 233 GLOSSARY ACCRUAL BASIS: The basis of accounting under which the financial effects of a transaction and other events and circumstances that have cash consequences for the governmental entity are recorded in the period of which those transactions, events and circumstances occur, rather than only in the periods in which cash is received or paid by the entity. ADOPTED BUDGET: Refers to the budget amounts as originally approved by the Kodiak Island Borough Assembly at the beginning of the year, and also to the budget document which consolidates all beginning-of-the-year operating appropriations and new capital project appropriations. AMERICAN INSTITUTE OF CPAS: Member organization representing the accounting profession. They set ethical standards, auditing standards and develop the CPA (certified public accountant) exam. AML: Alaska Municipal League. ANNUAL BUDGET: A budget developed and enacted to apply to a single fiscal year. APPROPRIATION: The legal authorization granted to the legislative body of a government that permits officials to incur obligations and make expenditures of governmental resources for specific purposes. Appropriations are usually limited in amounts and time that may be expended. AS: Alaska Statute. ASSESSED VALUATION: The valuation set upon all real and personal property in the Borough that is used as a basis for levying taxes. Tax-exempt property is excluded from the assessable base. ASSESSED VALUE: The fair market value placed on personal and real property owned by taxpayers. State law requires all taxable property to be assessed annually at 100% of market value. AUDIT: A systematic collection of the sufficient, competent evidential matter to attest to the fairness of management’s assertions in the financial statements or to evaluate whether management has efficiently carried out its responsibilities. The auditor obtains this evidential matter through inspections, observations, inquiries, and confirmations with third parties. BALANCED BUDGET: A budget in which planned funds available equal planned expenditures. BASIS OF ACCOUNTING: The term referring to when revenues, expenditures, expenses, and transfers (and the related assets and liabilities) are recognized in the accounts and reported in the financial statements. Specifically, it relates to the timing of the measurements made, regardless of the nature of the measurement, on either the cash or accrual method. BLM: Bureau of Land Management. A federal department responsible for managing most vacant federally -owned land. BOARD OF EQUALIZATION: An official board of the Kodiak Island Borough that holds annual hearings for the purpose of settling disputes regarding the assessed value of property within the Borough. BOND: A written promise to pay a specified sum of money, called the face value or principal amount, at a specified date in the future, called the maturity date, together with periodic interest at a specified date. BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for a given peri od of time and the proposed means of financing them. Sometimes the term “budget” designates the financial plan presented to the appropriating governing body for adoption, and sometimes, the plan finally approved by that body. 234 BUDGET DOCUMENT: The official written statement prepared by the Borough’s administrative staff to present a comprehensive financial program to the Borough Assembly. The first part provides overview information, together with a message from the budget-making authority, and a summary of the proposed expenditures and the means of financing them. The second consists of schedules supporting the summary. These schedules show in detail the past year’s actual revenues, expenditures, and other data used in making the estimates. The third p art is composed of personnel and salary schedules, the chart of accounts, and a glossary. BUDGET MESSAGE: A general discussion of the proposed budget presented in writing by the budget -making authority to the Borough Assembly. A budget message contains an explanation of the principal budget items, an outline of the Borough’s experience during the past period and its financial status at the time of the message, and recommendations regarding the financial policy for the coming period. CAFR: Comprehensive Annual Financial Report. CAPITAL OUTLAY: Expenditures that result in the accumulation of items such as tools, desks, machinery, and vehicles costing more than $5,000, each having a useful life of more than one year, and that are not consumed through use are defined as capital items. CAPITAL PROJECTS FUND: Funds established to account for financial resources to be used for the acquisition or construction of major capital facilities (other than propriety and trust funds). CDD: Community Development Department. CIP: Capital Improvement Plan. COMPONENT UNIT: A separate government unit, agency, or non-profit corporation that is combined with other component units to constitute the reporting entity in conformity with GAAP. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report of a government including: (a) the five combined financial statements in the combined statement overview and their related notes; (b) combining statements by fund type and individual fund: and (c) account group financial statements prepared in conformity with GAAP and organized into a financial report pyramid. It also includes support schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, required supplementary information, extensive introductory material, and detailed statistical sections. CONTINGENCY: Those funds included in the budget for the purpose of providing a means to cover minor unexpected costs during the budget year. CONTRACTUAL SERVICES: Items of expenditure from service that the Borough receives primarily from an outside company. CPI: Consumer Price Index. DEBT SERVICE FUNDS: Funds established to account for the accumulation of resources for and the payment of general long-term debt principal and interest that resulted from the issuance of bonds. DEFICIT: The excess of expenditures over revenues during an accounting period, or in the case of proprietary funds, the excess of expenses over revenues during an account ing period. DEPRECIATION: Occurs when the cost of an asset is spread over its useful life. ENCUMBRANCES: Commitments related to unperformed contracts, in the form of purchase orders or contracts, for goods or services. Used in budgeting, encumbrances are not expenditures or liabilities, but represent the estimated amount of expenditures that will result if unperformed contracts in process are completed. 235 ENTERPRISE FUND: A proprietary fund established to account for operations that are financed and opera ted in a manner similar to private business enterprise. In this case, the intent of the governing body is that the expenses, including depreciation, of providing goods and services to the general public on a continuing basis will be financed or recovered primarily through user charges. EXPENDITURE: Decrease in net financial resources. Expenditures include current operating expenses requiring the present or future use of net current assets, debt service and capital outlays, intergovernmental grants, entitlements, and shared revenues. EXPENSES: Outflows or other consumption of assets or incurrence of liabilities (or a combination of both) from delivering or producing goods, rendering services, or carrying out other government units, and/or other funds. FIDUCIARY FUND TYPES: The trust and agency funds used to account for assets held by a government unit in a trustee capacity or an agent for individual, private organizations, other government units, and/or other funds. FISCAL YEAR: The twelve-month period to which the annual operating budget applies and at the end of which a government determines the financial position and results of its operations. The Borough’s fiscal year extends from July 1 to the following June 30. FUND: A fiscal and accounting entity with a self-balancing set of accounts in which cash and/or other financial resources, all related liabilities, and residual equities or balances and changes therein are recorded and segregated to carry on specific activities or attain certain objectives in accordance with special regulations, restrictions, or limitations. FUND BALANCE: The difference between the total assets available for appropriation and the total of current liabilities of the fund. FUND TYPE: The three broad fund categories of governmental accounting are subdivided into seven fund types. The seven types are: General; Special Revenue; Debt Services; Capital Projects: Enterprises; Internal Service; and Trust and Agency. FWS: Fish and Wildlife Service. FY: Fiscal Year. GENERAL FUND: A type of governmental fund used to account for regular day-to-day Borough operations revenues and expenditures, including school district transactions, which are not accounted for in specific purpose funds. The primary sources of revenue for this fund are local taxes and federal and state revenues. GENERAL OBLIGATION BONDS: Debts backed by the full faith and credit of a government agency. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP): Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP encompasses the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time. They include not only broad guidelines of general applications, but also detailed practices and procedures. GAAP provides a standard for measuring financial presentations. GFOA: Government Finance Officers Association. GIS: Geographic Information Services. GOVERNMENT FUND TYPES: Funds used to account for the acquisition, use, and balances of expendable financial resources and the related current liabilities, except those accounted for in the proprietary funds and fiduciary funds. Under current GAAP, there are four government fund types: General; Special Revenue; Debt Service; and Capital projects. 236 GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB): Authoritative accounting and financial reporting standard-setting body for state and local governments. HVAC: Heating, ventilation and air conditioning. This is the technology of indoor environmental management. IN-KIND SERVICES: The Borough pays for some school district expenditures directly, including such items as audit fees and insurance. INTERFUND TRANSFERS: Amounts transferred from one fund to another fund, including reimbursements, residual equity transfers, and operating transfers. INTERGOVERNMENTAL REVENUES: Revenues from other governments in the form of grants, entitlements, shared revenues, or payments in lieu of taxes. INVESTMENT: Securities held for the production of income in the form of interest in compliance with the policies set out by the Borough’s Code of Ordinances. KIB: Kodiak Island Borough. KIBC: Kodiak Island Borough Code. KIBSD: Kodiak Island Borough School District LAPSE: As applied to appropriations, the automatic termination of an appropriation. Except for indeterminate appropriations and continuing appropriations, an appropriation is made for a specific period of time. LEPC: Local Emergency Planning Committee. LEVY: To impose taxes, special assessments, or service charges for the support of government activities. Also used to denote the total amount of taxes, special assessments, or service charges imposed by a government . LIABILITIES: Debts or other legal obligations arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. MEASUREMENT FOCUS: The accounting convention that determines (1) which assets and which liabilities are included on a government’s balance sheet and where they are reported, and (2) whether an operating statement presents information on the flow of financial resources (revenues and expenditures) or information on the flow of economic resources (revenue and expenses). MILL: The measure of the rate of property taxation, representing one-thousandth (0.001) of a dollar of assessed value. MILLAGE RATE: The tax rate on property, based on mill(s). A rate of 1 mill applied to a taxable value of $100,000 would yield $100 in taxes. MIS: Management Information Services. MODIFIED ACCRUAL BASIS OF ACCOUNTING: A basis of accounting in which revenues and other financial resources are recognized when they become susceptible to accrual, that is, when they are both measurable and available to finance expenditures of the current period. “Available” means collectable in the current period or soon enough thereafter to be used to pay liabilities of the curren t period. Expenditures are recognized when the fund liability is incurred, except for (1) inventories of materials and supplies that may be considered expenditures either when purchased or when used, and (2) prepaid insurance and similar items that may be considered expenditures either when paid for or when consumed. All government funds, expendable trust funds, and agency funds are accounted for using the modified accrual basis of accounting. 237 OBSOLETE: A piece of equipment or system that is out of date, of an outmoded type or model in need of replacement. OPERATING BUDGET: Plans of current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing, acquisition, spending, and ser vice delivery activities of a government are controlled. The law usually requires the use of an annual operating budget. Annual operating budgets are essential to sound financial management and should be adopted by every government. OPERATING TRANSFERS: All interfund transfers other than residual equity transfers. ORDINANCE: A formal legislative enactment by the legislative body which, if not in conflict with any highest form of law, has the full force and effect of law within the boundaries of the municipality to which it applies. The difference between an ordinance and a resolution is that the latter requires less legal formality and has a lower legal status. Revenue-raising measures, such as the imposition of taxes, special assessments, and service charges, universally require ordinances. OSHA: Occupational Safety and Health Administration. OTHER FINANCING SOURCES: Government funds, general long-term debt proceeds, land lease payments, land sale payments, proceeds from the sale of fixed assets, operating transfers-in, service charges and fees for government services. OVERSIGHT RESPONSIBILTY: The basic, but not the only, criterion for including a government department, agency, institution, commission, public authority, or other organization in a government unit’s reporting entity for general purpose financial reports. Oversight responsibility is derived from the government unit’s power and includes, but is not limited to, financial interdependency, selection of governing authority, designation o f management, ability to significantly influence operations and accountability for fiscal matters. PERS: Public Employees’ Retirement System. PILT: Payment In Lieu of Tax. PROGRAM: An organized set of related work activities that are directed toward a common purpose or goal and represent a well-defined expenditure of Borough resources. PROGRAM BUDGET: A budget which structures budget choices and information in terms of programs and their related activities (e.g., repairing roads, treating water, etc.), provides information on what each program is committed to accomplish in the long run (goals) and in the short run (objectives) and measures the degree of achievement of program objectives (performance measures). PROGRAM DESCRIPTION: A program description describes the function of the program, the various activities involved in the program, and other pertinent information about the program. It answers the question, “What does this program do?” PROGRAM GOAL: A program goal is a general statement on the intended effect or purpose of the program’s activities. It includes terms such as “provide” (a service), “supply” (a given need), “control, reduce or eliminate” (an occurrence), “maintain” (standards), or “maximize” (quality). A goal is not limited to a one-year time frame and should generally not change from year to year. A goal statement describes the essential reason for the program’s existence. PROGRAM OBJECTIVE: Objectives are statements of the intended beneficial and/or tangible effects of a program’s activities. They are measurable and related to the proposed budget year. They are specific targets toward which a manager can plan, schedule work activities, and make staff assignments. Objectives should quantifiably be addressed in terms such as “increase” (an activity), “maintain” (a service level), “reduce” (the incidence), or to “eliminate” (a problem). 238 PROPERTY TAX: A tax levied on the assessed value of property. PROPRIETARY FUND: A type of fund that accounts for government operations that are financed and operated in a manner similar to private business enterprises. The only proprietary fund used by the Borough is the Enterprise Fund. PURCHASE ORDER: A document authorizing the delivery of specified merchandise or the rendering of certain services for a stated, estimated price. Outstanding purchase orders at the end of a fiscal year are called encumbrances. P&Z: Planning and Zoning. RESOLUTION: A special or temporary order of a legislative body; an order of a legislative body requiring less legal formality than an ordinance or statute. RETAINED EARNINGS: An equity account reflecting the accumulated earnings of an enterprise or internal service fund. REVENUE: Increases in the net current assets of a governmental type other than expenditure refunds and residual equity transfers; increases in the net total assets of a proprietary fund type other than expense refunds, capital contributions, and residual equity transfers. General long-term debt proceeds and operating transfers-in are classified as “other financing sources” rather than revenues. Operating transfers, as in governmental fund types, are classified separately from revenues. RSA: Road Service Area. R&R: Renewal and Replacement. SEVERANCE TAX: A tax on the removal of natural resources from the Kodiak Island Borough. Major resources include fish, timber, and gravel. The severance tax rate is the same as the mill rate. SPECIAL ASSESSMENTS: Fees levied on property owners to construct an asset that benefits the property holder. These assessments are levied until the asset is paid for. The amount of the assessment can be based on value, size, road frontage, etc. SPECIAL REVENUE FUND: A fund used to account for the proceeds of specific revenue sources (other than expendable trust or major capital projects) that are legally restricted to expenditure for specific purposes. SWAMC: Southwest Alaska Municipal Conference. TAX RATE: The level at which taxes are levied. For example, a property tax rate may be proposed to be $0.575 per $100 of assessed value, or 5.75%. TAX LEVY: The total dollar amount of tax that optimally should be collected based on tax rates and assessed values of personal and real properties. TCA: Tax Code Area. USCG: United States Coast Guard.