CAFR FY2016
KODIAK ISLAND BOROUGH
Comprehensive Annual Financial Report
Year Ended June 30, 2016
Official Issuing Report
Dora Cross
Finance Director
KODIAK ISLAND BOROUGH
TABLE OF CONTENTS
June 30, 2016
Page
INTRODUCTORY SECTION:
Letter of Transmittal 1-4
GFOA Certificate of Achievement 5
Organizational Chart 6
Elected Officials (Photographs) 7
Borough Officials 8
Map of Kodiak Island Borough 9
FINANCIAL SECTION:
Independent Auditor’s Report 10-12
Management’s Discussion and Analysis 13-22
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 23
Statement of Activities 24
Fund Financial Statements:
Balance Sheet – Governmental Funds 25
Reconciliation of Net Position Between the Government-Wide and the Fund Financial
Statements 26
Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficits) –
Governmental Funds 27
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances (Deficits) of Governmental Funds to the Statement of Activities 28
Statement of Net Position – Proprietary Funds – Business-Type Activities – Enterprise
Funds 29
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds –
Business-Type Activities – Enterprise Funds 30
Statement of Cash Flows – Proprietary Funds – Business-Type Activities – Enterprise
Funds 31-32
Notes to Basic Financial Statements 33-77
Required Supplementary Information:
Budgetary Comparison Schedule – General Fund 78-79
Budgetary Comparison Schedule – Special Revenue Fund – Education Support 80
Budgetary Comparison Schedule – Special Revenue Fund – Facilities 81
Notes to Required Supplementary Information – Budgetary Comparison Schedules 82
Schedule of Borough’s Proportionate Share of the Net Pension Liability –
Public Employees’ Retirement System 83
Schedule of Borough’s Contributions –
Public Employees’ Retirement System 84
KODIAK ISLAND BOROUGH
TABLE OF CONTENTS, CONTINUED
Page
Additional Supplementary Information:
Budgetary Comparison Schedule – Debt Service Fund – Education and Health 85
Nonmajor Governmental Funds:
Combining Balance Sheet 86
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 87
Nonmajor Special Revenue Funds:
Combining Balance Sheet 88-89
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
(Deficits) 90-91
Schedule of Revenues, Expenditures, and Changes in Fund Balance (Deficit) – Budget
and Actual:
Fire and Road Service Areas:
Fire:
Fire Protection Area No. 1 92
Womens Bay Fire Department 93
Kodiak Airport Fire District 94
Road:
Monashka Bay Road Service Area 95
Service Area No. 1 96
Womens Bay Road Service Area 97
Bay View Road Service Area 98
Service Area No. 2 99
L.E.P.C. 100
Land Sales 101
Buildings and Grounds 102
Woodland Acres Street Light Service Area 103
Trinity Islands Street Light Service Area 104
Tourism Development 105
Mission Lake Tide Gate 106
Fern Fuller Trust 107
Trinity Islands Paving 108
Oil Spill Disaster 109
Nonmajor Capital Project Funds:
Combining Balance Sheet 110
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 111
Enterprise Funds:
Schedule of Revenues, Expenses, and Changes in Net Position – Budget
and Actual:
Municipal Solid Waste Collection and Disposal 112
Hospital Facilities 113
Kodiak Fisheries Research Center 114
911 Services Fund 115
(continued)
KODIAK ISLAND BOROUGH
TABLE OF CONTENTS, CONTINUED
Supplementary Bond Schedules:
Summary of Bonded Debt Service Requirements to Maturity 116
General Obligation Bond, 2008 Series A – Retirement Schedule 117
General Obligation Bond, 2011 Series One – Retirement Schedule 118
General Obligation Bond, 2012 Series A – Retirement Schedule 119
General Obligation Bond, 2012 Series B – Retirement Schedule 120
General Obligation Bond, 2013 Series One – Retirement Schedule 121
General Obligation Bond, 2014 Series One – Retirement Schedule 122
General Obligation Bond, 2015 Series Three – Retirement Schedule 123
General Obligation Bond, 2015 Series Three – Retirement Schedule 124
General Obligation Bond, 2016 Series One – Retirement Schedule 125
General Obligation Bond, 2016 Series One – Retirement Schedule 126
STATISTICAL SECTION:
Statistical Section Index
Net Position by Component – Last Ten Fiscal Years 127
Changes in Net Position – Last Ten Fiscal Years 128
Fund Balances of Governmental Funds – Last Seven Fiscal Years 129
Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 130
General Revenues by Source – Last Ten Fiscal Years 131
Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 132
Direct and Overlapping Property Tax Rates and Contributions to the School District –
Last Ten Fiscal Years 133
Property Tax Levies and Collections – Last Ten Fiscal Years 134
Principal Property Tax Payers – Current Year and Ten Years Ago 135
Ratios of Net Bonded Debt– Last Ten Fiscal Years 136
Computation of Direct and Overlapping Debt 137
Legal Debt Margin Information – Last Ten Fiscal Years 138
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General
Governmental Expenditures and Transfers – Last Ten Fiscal Years 139
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 140
Demographic and Economic Statistics – Last Ten Fiscal Years 141
Average Monthly Employment & Earnings – Last Ten Fiscal Years 142
Miscellaneous Statistical Data – Last Ten Fiscal Years 143
Property Value, Construction and Bank Deposits – Last Ten Fiscal Years 144
Full-Time Equivalent Borough Employees by Function/Program – Last Ten Fiscal Years 145
Operating Indicators by Function – Last Ten Fiscal Years 146
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 147
INTRODUCTORY SECTION
Kodiak Island Borough
Finance Department
710 Mill Bay Road
Kodiak, Alaska 99615
Phone (907) 486-9323 Fax (907) 486-9392
1
December 29, 2016
Members of the Assembly
Kodiak Island Borough, Alaska
State of Alaska statutes and local charter provisions require that all general-purpose local
governments publish a complete set of financial statements presented in conformity with
generally accepted accounting principles in the United States of America (GAAP) and audited in
accordance with auditing standards generally accepted in the United States of America by a firm
of licensed certified public accountants. Pursuant to that requirement, we hereby issue the
comprehensive annual financial report of the Kodiak Island Borough (Borough) for the fiscal
year ended June 30, 2016.
This report consists of management’s representations concerning the finances of the Borough.
Consequently, management assumes full responsibility for the completeness and reliability of all
of the information presented in this report. To provide a reasonable basis for making these
representations, management of the Borough has established a comprehensive internal control
framework that is designed both to protect the government’s assets from loss, theft, or misuse
and to compile sufficient reliable information for the preparation of the Borough’s financial
statements in conformity with GAAP. Because the cost of internal controls should not outweigh
their benefits, the Borough’s comprehensive framework of internal controls has been designed to
provide reasonable rather than absolute assurance that the financial statements will be free from
material misstatement. As management, we assert that, to the best of our knowledge and belief,
this financial report is complete and reliable in all material respects.
The Borough’s financial statements have been audited by Altman, Rogers & Co., a firm of
licensed certified public accountants. The goal of the independent audit was to form an opinion
on whether the financial statements of the Borough, for the fiscal year ended June 30, 2016, are
presented fairly, in all material respects, in accordance with generally accepted accounting
principles in the United States of America. The independent audit involved examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements; assessing the
accounting principles used and significant estimates made by management; and evaluating the
overall financial statement presentation. The independent auditor issued an unqualified opinion
on the Borough’s financial statements for the fiscal year ended June 30, 2016. The independent
auditor’s report is presented as the first component of the financial section of this report.
2
The independent audit of the financial statements of the Borough was part of broader, State and
federally mandated “Single Audits” designed to meet the special needs of State and federal
grantor agencies. The standards governing Single Audit engagements require the independent
auditor to report not only on the fair presentation of the financial statements, but also on the
audited government’s internal controls and compliance with legal requirements, with special
emphasis on internal controls and legal requirements involving the administration of State and
federal awards. These reports are available in the Borough’s separately issued Single Audit
Report.
GAAP require that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management’s Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The Borough’s MD&A can be found immediately following the report of the
independent auditors.
Profile of the Government
The Kodiak Island Borough lies at the western border of the Gulf of Alaska, approximately 40
miles south of the Kenai Peninsula. Kodiak Island is the largest island in Alaska and the second
largest in the United States. About two-thirds of the Borough lies in the Kodiak archipelago with
the remaining third on the Alaska Peninsula, across the Shelikof Strait from Kodiak Island. The
Shelikof Strait is only 20 miles wide in places. The Borough encompasses 7,130 square miles,
making it slightly smaller than the State of Massachusetts and serves a population of 13,824.
The Borough was incorporated September 30, 1963, as a Second Class Borough by Chapter 146
Sessions, Laws of Alaska 1961, as amended. The powers granted to the Borough include area-
wide powers and non area-wide powers. Area-wide powers are health, education, planning and
zoning, emergency services planning, and assessment and collection of taxes for both the
Borough and cities within the Borough. Non area-wide powers include parks and recreation,
economic development, solid waste disposal, animal control, fire protection, street lighting and
road maintenance and construction. A Manager form of government governs the Borough. The
Mayor is elected at large while the Borough Assembly appoints the Manager. The Assembly is
composed of seven members who are elected at-large.
The Borough provides a full range of services including fire protection, the construction and
maintenance of roads and other infrastructure, community and economic development, health,
culture and recreation and solid waste collection and disposal. The Borough also is financially
accountable for a legally separate school district which is reported separately within the
Borough’s financial statements. Additional information on this legally separate entity can be
found in the basic financial statements.
The annual budget serves as the foundation for the Borough’s financial planning and control. All
departments of the Borough are required to submit requests for appropriation to the Borough
Manager. The Borough Manager uses these requests as the starting point for developing a
proposed budget. The Borough Manager then presents this proposed budget to the Assembly for
review by April 30. The assembly is required to hold public hearings on the proposed budget and
to adopt a final budget by no later than June 10. The appropriated budget is prepared by fund and
department. The Assembly makes appropriation transfers between funds and/or departments only
3
after the adoption of an ordinance. Borough staff may execute transfers between line items
within a department. Amendments to the budget can occur anytime during the fiscal year through
the Borough Assembly or administrative action. Expenditures may not legally exceed
appropriations at the following levels: Capital Project Funds – project level, all other funds –
department level. All funds, except Capital Project Funds, are budgeted on an annual basis
encompassing a fiscal year. Budgets of Capital Project Funds generally encompass the period
from start-up to project completion, which is generally greater than one year. Budget-to-actual
comparisons are provided in this report for each individual governmental and proprietary fund
for which an appropriated annual budget has been adopted. For the General Fund, the Education
Support Special Revenue Fund and the Facilities Special Revenue Fund, this comparison is
presented on pages 78-81 as part of required supplementary information. For governmental
funds, other than the General Fund, the Education Support Special Revenue Fund and the
Facilities Special Revenue Fund, this comparison is presented in the additional supplementary
information subsection of this report, which starts on page 85. Also included in the additional
supplementary information subsection are the Education and Health Debt Service Fund budget to
actual. For proprietary funds, this comparison is presented in the proprietary funds subsection of
this report, which starts on page 112.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the Borough
operates.
Local economy. The economic condition of the Kodiak Island Borough remains healthy. The
main industries of the Borough are commercial fishing, logging, and tourism. The commercial
fishing industry in Kodiak has been fairly stable. Severance taxes on seafood increased from
$1,285,298 in FY2007 to $1,395,610 in FY2016, an 8% increase. Logging has increased over the
last ten years from $19,990 to $92,416 but it is not a material revenue source. Tourism continues
to be strong in Kodiak. Bed tax revenues have increased from $68,867 in FY2007 to $95,466 in
FY2016, an increase of 39%. Considering today’s economy, this is very good. To accommodate
this demand, construction of fishing lodges, bed and breakfast accommodations and recreational
facilities has increased along with an increase in charter boat and guide operations. Cruise ships
continue to visit Kodiak.
The Kodiak Island Borough is also home to the aerospace industry, which began with
construction of the Kodiak Launch Complex in 1998. Owned by the Alaska Aerospace
Development Corporation (AADC), a public corporation of the State of Alaska, the Kodiak
Launch complex is the first complete launch facility built in the United States since the 1960’s
and the first not owned by the Federal Government. The state-of-the-art facility includes a launch
control center, payload processing facility, spacecraft assembly building and launch pad. It is
designed to handle small to medium sized rockets used to launch low earth orbit satellites, as
well as military, scientific and research missions.
Kodiak is home to the largest U.S. Coast Guard base in the country, employing nearly 1,350
people and providing vital services to the marine industries that are an integral part of Kodiak’s
make-up as well as making a significant contribution to the Kodiak community.
4
The seafood industry is by far the largest industry in the Kodiak Island Borough. This industry
includes commercial fishing, fisheries research, management and enforcement, seafood
processing, and maintenance and support services. Kodiak is home to the largest port in the
State, housing over 500 commercial vessels and consistently ranks among the top ten ports in the
United States in terms of amount and value of product delivered. In 2014, 477,100,000 pounds
of sea food was landed with a value of $129,619,565.
Employment varies throughout the year with July, August, and September being the peak months
due to the increased activity in the fisheries and related businesses, and then declines in
November and December when fishing quotas are reached. At June 30, 2016, the unemployment
rate for the Kodiak Island Borough was 5.3%, which which is the same rate as last year. The
average unemployment rate for the last 10 years has been 6.74%.
Long-term financial planning. Every year the Borough adopts a strategic plan. In this plan the
Borough decides what its goals and objectives are for the next year. The Borough breaks these
goals out based on our Mandatory and Adopted powers. To view the complete Strategic plan you
can visit our web site at www.kodiakak.us.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the Borough for
its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2015. This
was the twenty-sixth consecutive year that the Borough has received this prestigious award. In
order to be awarded a Certificate of Achievement, a government must publish an easily readable
and efficiently organized comprehensive annual financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
CAFR continues to meet the Certificate of Achievement Program’s requirements and we are
submitting it to the GFOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and dedicated
services of the entire staff of the administration and finance department. We would like to
express our appreciation to all members of the department who assisted and contributed to the
preparation of this report. Credit must be given to the mayor and the assembly for their unfailing
support for maintaining the highest standards of professionalism in the management of the
Borough’s finances.
Respectfully submitted,
Michael Powers Dora Cross
Borough Manager Director of Finance
5
6
Electorate
Borough Manager Borough Attorney
Engineering/
Facilities Director
Bayside Fire
Chief
Finance/MIS
Director
Borough Mayor
Borough Assembly
Community
Development
Director
Secretary III
Maintenance
Mechanic
KFRC
Maintenance
Engineer
KFRC
Interpretive
Spec/Rec.
Solid Waste Mgr/
Environ. Spec.
Solid Waste
Baler/Landfill
Supervisor
Treatment Plant
Operator Lead
Baler Operator I
Baler Operator II
Baler Operator I
Baler Operator I
Baler Operator I
HR Officer/
Executive Assistant
Assessor
Associate Planner
Assistant Planner
Code Enforcement
Officer
Secretary III
Property Appraiser
Lead
Appraiser
Technician
Appraiser
Technician
Assessment
Clerk II
General
Accountant
Accounting Tech
Accounts Payable
Accounting Tech
Payroll
Revenue
Accountant
Secretary III
IT Supervisor
Programmer/
Analyst
GIS
Analyst
Cashier
Borough Clerk
Assistant Clerk Deputy Clerk
Kodiak Island Borough
Fiscal Year 2016
Project Manager
/Inspector
Construction
Insp/Engr.
Maintenance
Coordinator
Projects
Assistant
KFRC
Interpretive
Spec/Rec.
Grant Writer/
Spec Proj Support Resource
Mgt Officer
PC Tech II
MAYOR AND ASSEMBLY MEMBERS
7
Kyle Crow, Larry LeDoux,
At Large, 2018 At Large, 2017
Jerrol Friend, Mayor, 2016
Frank Peterson, Jr., Dan Rohrer,
At Large, 2016 At Large, 2017
Scott Smiley, Dennis Symmons,
At Large, 2017 At Large, 2017
Rebecca Skinner,
Deputy Presiding Officer (DPO),
At Large, 2017
8
KODIAK ISLAND BOROUGH
KODIAK, ALASKA
BOROUGH OFFICIALS
YEAR ENDED JUNE 30, 2016
MAYOR
Jerrol Friend ‘16
ASSEMBLY
Kyle Crow ‘18 Rebecca Skinner ‘17
Larry LeDoux ‘17 Scott Smiley ‘17
Frank R. Peterson, Jr. ‘16 Dennis Symmons ‘17
Dan Rohrer ‘17
MANAGEMENT
Michael Powers ......................................................................................................Borough Manager
Dora Cross ............................................................................................... Finance Director/Treasurer
Robert Tucker .............................................................................. Engineering and Facilities Director
Nova Javier, CMC ....................................................................................................... Borough Clerk
Bill Roberts ............................................................................................................Borough Assessor
Howard Rue ....................................................................................................................... Fire Chief
Levesque Law Group, LLC ...................................................... Borough Attorney (Contracted Firm)
Stuart McDonald ............................................................................... Superintendent, School District
Dria Bray-Holloway ............................................................................................ General Accountant
Vacant ............................................................................................................... Revenue Accountant
Paul Van Dyke .............................................................................................................. IT Supervisor
Lauri Whiddon ................................................................................. HR Officer/Executive Assistant
9
FINANCIAL SECTION
10
425 G Street Suite 800 Anchorage, Alaska 99501 Phone 907-274-2992 Fax 907-274-2993
Offices in Juneau and Soldotna A Professional Corporation
Independent Auditor’s Report
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
Kodiak, Alaska
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the Kodiak Island Borough, as of and for the year ended June 30, 2016, and the related
notes to the financial statements, which collectively comprise the Borough’s basic financial statements as
listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
11
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the discretely
presented component unit, each major fund, and the aggregate remaining fund information of the Kodiak
Island Borough, as of June 30, 2016, and the respective changes in financial position and, where applicable,
cash flows thereof for the year then ended in accordance with accounting principles generally accepted in
the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis, Budgetary Comparison Schedules and notes to RSI, and Schedules of Borough’s
Proportionate Share the of Net Pension Liabilities and Contributions for the Public Employees’ Retirement
System on pages 13-22, 78-82, and 83-84, respectively, be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context. We
have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for consistency
with management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Kodiak Island Borough’s basic financial statements. The information listed in the table of
contents as “Additional Supplementary Information”, which includes Budgetary Comparison Schedule –
Debt Service Fund – Education and Health; Nonmajor Governmental Funds: Combining Balance Sheet and
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances, Nonmajor Special
Revenue Funds: Combining Balance Sheet, Combining Statement of Revenues, Expenditures and Changes
in Fund Balances (Deficits), and Schedules of Revenues, Expenditures, and Changes in Fund Balance
(Deficit) – Budget and Actual; Nonmajor Capital Project Funds: Combining Balance Sheet and Combining
Statement of Revenues, Expenses and Changes in Fund Balances; Enterprise Funds: Schedule of Revenues,
Expenditures, and Changes in Net Position – Budget and Actual, is presented for purposes of additional
analysis and is not a required part of the basic financial statements.
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
12
The Additional Supplementary Information listed above is the responsibility of management and was
derived from and relate directly to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures applied in the audit of
the basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the Additional
Supplementary Information listed above are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
We also have previously audited, in accordance with auditing standards generally accepted in the United
States of America, the basic financial statements of Kodiak Island Borough as of and for the year ended
June 30, 2015 (not presented herein), and have issued our report thereon dated January 29, 2016, which
contained unmodified opinions on the respective financial statements of the governmental activities, the
business-type activities, the discretely presented component unit, each major fund, and the aggregate
remaining fund information. The individual fund financial statements and schedules for the year ended
June 30, 2015, are presented for purposes of additional analysis and are not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the June 30, 2015 financial
statements. The information has been subjected to the auditing procedures applied in the audit of June 30,
2015 basic financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the individual fund
financial statements and scheduleare are fairly stated in all material respects in relation to the basic financial
statements as a whole for the year ended June 30, 2015.
The Introductory Section, the Supplementary Bond Schedules, and the Statistical Section, as identified in
the table of contents, have not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 29,
2016 on our consideration of the Kodiak Island Borough's internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering Kodiak Island Borough’s internal control
over financial reporting and compliance.
Anchorage, Alaska
December 29, 2016
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis
June 30, 2016
13
As management of the Kodiak Island Borough, we offer readers of these financial statements this narrative
overview and analysis of the financial activities of the Kodiak Island Borough for the fiscal year ended June 30,
2016. We encourage readers to consider the information presented here in conjunction with additional information
that we have furnished in our letter of transmittal, which can be found on pages 1 - 4 of this report.
Financial Highlights
The assets and deferred outflows of resources of the Kodiak Island Borough exceeded its liabilities and
deferred inflows of resources at the close of FY2016 by $177,946,228. Of this amount, $63,816,614
(unrestricted net position) may be used to meet the Borough’s ongoing obligations to citizens and creditors.
In FY2016 the Borough’s total net position increased by $2,473,391.
Equity in our central treasury increased $8,628,260. This increase was mainly due to current year bond
issuances.
At the end of the current fiscal year, the Borough’s governmental funds reported combined fund balances of
$55,975,630. This was an increase of $4,532,687, compared to the net change in the prior year of a decrease
of $21,135,241. At the end of FY2016, unassigned fund balance for the general fund was $3,259,509. This
amounts to 52% of total general fund expenditures.
The Borough’s bonds payable increased by $13,350,091. This was due to the issuance of $15,000,000 of
general obligation bonds with a premimum of $2,141,115, less payments of $3,791,024 in bond principal
and premimum amortization.
Overview of the Financial Statements
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the Kodiak
Island Borough’s finances, in a manner similar to a private sector business.
The statement of net position presents information on all of the Kodiak Island Borough’s assets, deferred outflows
of resources, liabilities and deferred inflows of resources, with the difference between them reported as net position.
Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position
of the Kodiak Island Borough is improving or deteriorating.
The statement of activities presents information showing how the government’s net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will result in cash flows in future fiscal periods.
Both of the government-wide financial statements distinguish functions of the Kodiak Island Borough that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that
are intended to recover all or a significant portion of their costs through user fees and charges (business-type
activities). The governmental activities of the Kodiak Island Borough include general government, public safety,
community and economic development, emergency preparedness, health and sanitation, education, culture and
recreation, parks and recreation, service district maintenance, and primary and secondary education. The business-
type activities of the Kodiak Island Borough include a solid waste collection and disposal facility, Borough-owned
hospital and long-term care facility, the Kodiak Fisheries Research Center, and a 911 emergency system.
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
14
The government-wide financial statements include not only the Kodiak Island Borough itself (known as the
primary government), but also the legally separate school district for which the Kodiak Island Borough is
financially accountable. Financial information for this component unit is reported separately from the financial
information presented for the primary government itself.
The government-wide financial statements can be found on pages 23-24 of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities or objectives. The Kodiak Island Borough, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance related legal requirements. All of the funds of the
Kodiak Island Borough can be divided into two categories: governmental funds and proprietary funds.
Governmental Funds – Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
statements, governmental fund financial statements focus on near-term inflows and outflows of spendable
resources as well as on balances of spendable resources available at the end of the fiscal year. Such information
may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand
the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet
and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation
to facilitate this comparison between governmental funds and governmental activities.
The Kodiak Island Borough maintains 29 individual governmental funds. Information is presented separately in
the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and
changes in fund balances for the General Fund, the Education Support Special Revenue Fund, the Facilities Special
Revenue Fund, the Education and Health Debt Service Fund, the Kodiak High School Renovation Capital Project
Fund, and the Renewal and Replacement Projects Capital Project Fund, which are all considered to be major funds.
Data from the other nonmajor funds are combined into a single, aggregated presentation. Individual fund data for
each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in the
supplementary information section of this report.
The Kodiak Island Borough adopts an annual appropriated budget for its General Fund, Special Revenue Funds
and Debt Service Fund. Budgetary comparison statements have been provided for the funds to demonstrate
compliance with this budget.
The basic governmental financial statements can be found on pages 23-32 of this report.
Proprietary Funds – The only Proprietary Fund type that the Kodiak Island Borough uses is enterprise funds.
Enterprise funds are used to report the same functions presented as business-type activities in the government-wide
financial statements. Proprietary Funds provide the same type of information as government-wide financial
statements, only in more detail. The Kodiak Island Borough uses enterprise funds to account for a solid waste
collection and disposal facility, a Borough owned hospital leased to the Sisters of Providence d.b.a. Providence
Kodiak Island Medical Center, the Borough owned Kodiak Fisheries Research Center leased to various tenants,
and 911 phone charges and expenses.
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
15
The Kodiak Island Borough adopts an annual appropriated budget for its proprietary funds. Budgetary comparison
statements have been provided for the funds to demonstrate compliance with the budget.
The basic Proprietary Fund financial statements can be found on pages 29-32 of this report.
Notes to the Basic Financial Statements – The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to the basic
financial statements can be found on pages 33-77 of this report.
Other Information – In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information including budgetary comparison schedules for the General
Fund, the Education Support Special Revenue Fund and the Facilities Special Revenue Fund; Schedule of
Borough’s Proportionate Share of the Net Pension Liability and Schedule of Borough’s Contributions for the Public
Employees’ Retirement System. Required supplementary information can be found on pages 78-84 of this report.
Government-wide Financial Analysis
Statement of Net Position
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the
case of the Kodiak Island Borough, assets and deferred outflows of resources exceeded liabilities and deferred
inflows of resources by $177,946,228 at the close of FY2016, the most recent fiscal year. The net position of the
component unit was a deficit of $12,549,368 at the close of FY2016.
The largest portion of the Kodiak Island Borough’s net position ($114,129,614 or 64%) reflects its investment in
capital assets (e.g. land, buildings, equipment and infrastructure) net of related debt. The Kodiak Island Borough
uses these capital assets to provide services to citizens; consequently, these capital assets are not available for
future spending. Although the Borough’s investment in capital assets is reported net of debt, it should be noted that
the resources needed to repay this debt must be provided from other sources, since the capital assets themselves
cannot be used to liquidate these liabilities.
Governmental Business-type
Activities Activities Total
2016 2015 2016 2015 2016 2015
Current and other assets $ 69,229,188 66,266,832 16,455,887 10,415,212 85,685,075 76,682,044
Capital assets 163,229,274 151,779,433 73,073,356 71,777,201 236,302,630 223,556,634
Deferred outflows of resources 860,249 254,498 215,062 63,624 1,075,311 318,122
Total assets and deferred $ 233,318,711 218,300,763 89,744,305 82,256,037 323,063,016 300,556,800
outflows of resources
Long-term liabilities $ 86,397,161 72,290,176 40,806,089 30,939,440 127,203,250 103,229,616
Other liabilities 18,715,054 19,641,122 (899,697) 2,122,216 17,815,357 21,763,338
Deferred inflows of resources 78,545 280,266 19,636 70,067 98,181 350,333
Total liabilities and deferred $ 105,190,760 92,211,564 39,926,028 33,131,723 145,116,788 125,343,287
inflows of resources
Net position:
Net investment in capital assets $ 76,747,617 82,616,865 37,381,997 43,884,340 114,129,614 126,501,205
Unrestricted 51,380,334 43,472,334 12,436,280 5,239,974 63,816,614 48,712,308
Total net position $128,127,951 126,089,199 49,818,277 49,124,314 177,946,228 175,213,513
For more detailed information see the Statement of Net Position on page 23.
The remaining balance of unrestricted net position, $63,816,614, may be used to meet the Borough’s ongoing
obligations to citizens and creditors.
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
16
Statement of Activities
The following condensed table of changes in net position displays the revenues and expenses for the current and
prior year.
2016 2015 2016 2015 2016 2015
Revenues:
Program revenues:
Charges for services $ 765,425 668,169 8,172,981 6,638,675 8,938,406 7,306,844
Operating grants and contributions 4,813,838 4,305,691 428,578 32,649 5,242,416 4,338,340
Capital grants 3,216,270 3,002,933 11,326 213,753 3,227,596 3,216,686
General revenues:
Property taxes 14,414,032 14,228,505 — — 14,414,032 14,228,505
Grants and entitlements not restricted
to specific programs 3,985,978 3,990,192 — — 3,985,978 3,990,192
Land sales 27,683 103,143 — — 27,683 103,143
Severance taxes 1,586,555 1,703,257 — — 1,586,555 1,703,257
Other 675,246 494,287 203,764 186,328 879,010 680,615
Insurance proceeds 403,958 — — — 403,958 —
Investment earnings 604,274 574,227 236,180 80,825 840,454 655,052
Total revenues 30,493,259 29,070,404 9,052,829 7,152,230 39,546,088 36,222,634
Expenses:
General government 7,850,988 5,637,239 — — 7,850,988 5,637,239
Public safety 798,079 663,145 — — 798,079 663,145
Community and economic development 1,167,367 886,613 — — 1,167,367 886,613
Emergency preparedness 30,849 31,628 — — 30,849 31,628
Health and social services 389,000 406,093 — — 389,000 406,093
Education, culture and recreation 23,949 335,854 — — 23,949 335,854
Parks and recreation 87,456 161,596 — — 87,456 161,596
Service district maintenance 626,289 534,376 — — 626,289 534,376
Primary and secondary education 14,197,077 14,316,695 — — 14,197,077 14,316,695
Interest on long-term debt 3,492,549 3,063,649 — — 3,492,549 3,063,649
Municipal solid waste collection and
disposal — — 4,764,871 2,468,058 4,764,871 2,468,058
Hospital facilities — — 2,058,690 1,763,636 2,058,690 1,763,636
Kodiak Fisheries Research Center — — 1,555,116 1,486,620 1,555,116 1,486,620
911 services — — 30,417 33,961 30,417 33,961
Total expenses 28,663,603 26,036,888 8,409,094 5,752,275 37,072,697 31,789,163
Change in net position
before transfers 1,829,656 3,033,516 643,735 1,399,955 2,473,391 4,433,471
Transfers (50,228) (152,357) 50,228 152,357 — —
Change in net position 1,779,428 2,881,159 693,963 1,552,312 2,473,391 4,433,471
Net position, beginning of year,
as previously stated 126,089,199 126,913,982 49,124,314 48,498,487 175,213,513 175,412,469
Cummulative effect of a change in
accounting principle — (3,705,942) — (926,485) — (4,632,427)
Prior period adjustment 259,324 — — — 259,324 —
Net position, beginning of year,
as restated 126,348,523 123,208,040 49,124,314 47,572,002 175,472,837 170,780,042
Net position, end of year $ 128,127,951 126,089,199 49,818,277 49,124,314 177,946,228 175,213,513
Governmental activities Business-type activities Total
Governmental activities increased the Kodiak Island Borough’s net position by $1,779,428, excluding the prior
period adjustment, due to a combination of successful grant applications which offset a decrease in severance tax
collections. The major differences in revenues were an increase of $721,484 in operating and capital grants, an
increase of $185,527 in property taxes due to increased assessed values and an increase in investment earnings of
$30,047 due to slightly improved market conditions. There were some major changes in expenses including an
increase of $2,213,749 in general government due to GASB 68 pension adjustments, an increase of $428,900 in
interest on long term debt due to issuance of general obligation bonds, a decrease of $74,140 in parks and recreation
due to the unavailability of contractors and staff to supervise projects. Business type activities increased the Kodiak
Island Borough’s net position by $693,963. This includes an increase of $1,534,306 in charges for services which
includes new lease income from the long-term care facility.
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
17
Current Year versus Prior Year Prior Year Expenses
Governmental Activities
For more detailed information see the Statement of Activities on page 24.
Financial Analysis of the Government’s Funds
As noted earlier, the Kodiak Island Borough uses fund accounting to ensure and demonstrate compliance with
finance related legal requirements.
Governmental Funds – The focus of the Kodiak Island Borough’s governmental funds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
Kodiak Island Borough’s financing requirements. In particular, unreserved fund balance may serve as a useful
measure of a government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the Kodiak Island Borough’s governmental funds reported combined ending
fund balances of $55,975,630, an increase of $4,792,011 in comparison to the beginning of the year. $207,463 of
this total amount constitutes nonspendable fund balances, $43,081,680 is committed fund balances, $11,312,217
is assigned fund balances and $1,374,270 is unassigned fund balances.
The main reasons for this increase was a decrease in liabilities related to accounts payable. $17,141,115 was
realized from the sale of general obligation bonds and $11,961,335 was received from state and federal sources.
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
General
government
Public safety Community and
economic
development
Emergency
preparedness
Health and social
services
Education, culture
and recreation
Parks and
recreation
Service district
maintenance
Primary and
secondary
education
Interest on long
term debt
FY2016
FY2015
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
18
The General Fund is the main operating fund of the Kodiak Island Borough. At the end of the current fiscal year,
nonspendable fund balance of the General Fund was $26,272, with an unassigned fund balance of $3,259,509 for
a total fund balance of $3,285,781. As a measure of the General Fund’s liquidity, it may be useful to compare fund
balance to total expenditures. Unassigned fund balance represents 52% of total General Fund expenditures.
The fund balance of the Kodiak Island Borough’s General Fund decreased by $169,451, excluding the prior period
adjustment, during the current fiscal year. While overall there was no significant change it is worth noting an
increase of $269,453 in federal payments in lieu of taxes, a decrease of $212,168 in severance taxes, a decrease of
$1,027,023 in State on-behalf PERS payment, a decrease of $162,765 in assessing and a decrease of $141,666 in
community development.
The fund balance of the Education Support Special Revenue Fund decreased by $60,761 during the current fiscal
year. The key factor leading to this change was less property and motor vehicle tax revenues.
The fund balance of the Kodiak Island Borough’s Facilities Special Revenue Fund increased by $117,208 during
the current fiscal year. The key factor leading to this increase was decreased use of previous earnings compared to
the prior year.
The fund balance of the Kodiak Island Borough’s Kodiak High School Renovation Capital Project Fund decreased
by $3,807,326 during the current fiscal year. The key factor leading to this decrease was a budgeted use of assigned
fund balance.
The fund balance of the Kodiak Island Borough’s Renewal and Replacement Projects Capital Project Fund
increased by $401,388 during the current fiscal year. The key factor leading to this was decreased construction
costs.
The fund balance of the Fire Protection Area No. 1 Special Revenue Fund increased by $223,377. The key factors
leading to this increase was not spending monies budgeted for personnel and capital outlay.
The fund balance of the Womens Bay Fire Department Special Revenue Fund decreased by $39,118. The key
factor leading to this decrease was increased expenditures related to the expansion of the building.
The fund balance of the Monashka Bay Road Service Area Special Revenue Fund increased by $33,829. The key
factors leading to this increase were lower snow removal and repair and maintenance costs.
The fund balance of Service Area No. 1 Special Revenue Fund increased by $2,873. The key factor leading to this
increase was lower snow removal costs.
The fund balance of Womens Bay Road Service Area Special Revenue Fund increased by $12,245. The key factor
leading to this increase was lower snow removal costs.
The fund balance of Land Sales Special Revenue Fund decreased $183,141. The key factors leading to this
decrease were increased expenditures due to identification of land for possible sale and the Twin Creeks wildfire.
The fund balance of Tourism Development Special Revenue Fund increased $42,138. The key factors leading to
this increase were additional cruise ship tax revenues and a decrease in expenditures.
The fund balance of the Fern Fuller Trust Special Revenue Fund decreased $65,660. Prior to contribution
payments, the investment income decreased $471 over the prior year.
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
19
Proprietary Funds – The Kodiak Island Borough’s proprietary funds provide the same type of information found
in the government-wide financial statements, but in more detail.
Net position of the Municipal Solid Waste Collection and Disposal Enterprise fund amounted to $15,271,728, the
Hospital Facilities Enterprise Fund amounted to $21,712,849, the Kodiak Fisheries Research Center Enterprise
Fund amounted to $12,833,700 and the 911 Services Enterprise Fund amounted to $0.
The total decrease in net position for the Municipal Solid Waste Collection and Disposal Enterprise Fund was
$1,375,137. The total increase in net position for the Hospital Facilities Enterprise Fund was $224,498. The total
increase in net position for the Kodiak Fisheries Research Center Enterprise Fund was $1,844,602. The total
change in net position in the 911 Service Enterprise Fund was $0. Other factors concerning the finances of these
four funds have already been addressed in the discussion of the Kodiak Island Borough’s business-type activities.
2016 Program Revenues versus Expenses
General Fund Budgetary Highlights
Differences between the original budget and final amended budget can be briefly summarized as follows:
The revenue budget for State revenue sharing was increased $10,566.
The expenditure budget for the management information systems department decreased by $93,000.
The expenditure budget for the community development department increased by $93,000.
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
Municipal
Solid
Waste
Hospital
Facilites
Kodiak
Fisheries
Research
Center
911
Service
Revenues
Expenses
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
20
Differences between the final amended budget and actual can be summarized as follows:
Real property taxes were $87,826 less than budgeted. This was due to a change in tax exemptions not
reflected in the budget.
Severance taxes for fish were $354,390 less than budgeted. This was due to an estimation error in the harvest
of wild fish.
Severance taxes for mining were $21,937 less than budgeted. This was due to an estimation error when the
budget was developed.
Penalties and interest on taxes were $29,933 less than budgeted. This was due to fewer late tax payments.
On-behalf PERS payment was $61,915 less than budgeted. This was due to an estimation error when the
budget was amended.
Federal payments in lieu of taxes were $336,540 more than budgeted. This was due to an estimation error
when the budget was developed.
Federal fish and wildlife revenue sharing were $50,684 more than budgeted. This was due to an estimation
error when the budget was developed.
Investment income was $24,211 more than budgeted. This was due to an overall increase in the market in
the current year.
The General Administration department came in $46,401 under budget. This was due to audit, insurance
and other costs under budget.
The Borough Assembly department came in $45,896 under budget. This was due to travel and per diem
costs under budget.
The Borough Manager department came in $245,059 under budget. This was due to vacant positions.
The Borough Attorney department came in $54,136 under budget. This was due to attorney and filing fees
under the budgeted amount.
The Finance department was $73,834 under budget. This was due to vacant positions.
The Management Information Systems department came in $24,544 under budget. This was due to not
purchasing all budgeted equipment.
The Engineering and Facilities department came in $67,126 over budget. This was due to salary costs over
the budget.
The Community Development Department came in $30,625 under budget. This was due to overall
expenditures coming in under budget and vacant positions.
The Economic Development department came in $71,319 under budget. This was mainly due to vacant
positions.
The Parks and Recreation department came in $65,544 under budget. This was due to unavailability of
contractors and staff to supervise projects.
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
21
Capital Assets and Debt Administration
Capital Assets – The Kodiak Island Borough’s investment in capital assets for its governmental and business -
type activities as of June 30, 2016, amounted to $236,302,630 (net of accumulated depreciation). This investment
in capital assets includes, land, buildings and improvements, improvements other than buildings, machinery and
equipment, and construction work-in-progress. The total net increase in the Kodiak Island Borough’s investments
in capital assets for the current fiscal year was $12,745,996, which was mostly due to increases in construction
work-in-progress.
The following table displays the capital assets (net of accumulated depreciation) for the current and prior year.
2016 2015 2016 2015 2016 2015
Artwork $ — — 16,091 16,091 16,091 16,091
Land 23,444,818 23,439,318 1,661,499 1,661,499 25,106,317 25,100,817
Construction work-in-progress 86,597,475 71,863,168 27,833,039 41,689,117 114,430,514 113,552,285
Buildings and improvements 39,454,078 42,038,730 38,787,026 24,987,023 78,241,104 67,025,753
Improvements other than 12,331,305 12,854,392 3,379,354 2,117,100 15,710,659 14,971,492
buildings
Equipment 756,255 862,559 513,190 381,159 1,269,445 1,243,718
Infrastructure 645,343 721,266 — — 645,343 721,266
Unclassified plant in service — — 883,157 925,212 883,157 925,212
$ 163,229,274 151,779,433 73,073,356 71,777,201 236,302,630 223,556,634
Governmental
activities
Business-type
activities Total
Additional information on the Kodiak Island Borough’s capital assets can be found in note 8 on pages 48-52 of
this report.
Long-Term Debt – At the end of the current fiscal year, the Kodiak Island Borough had total bonded debt
outstanding of $78,325,000. This entire amount is backed by the full faith and credit of the Borough. The remainder
of the Kodiak Island Borough’s debt represents loans and notes payable, compensated absences and landfill closure
and post-closure costs.
The following table displays the long-term debt for the current year.
Governmental Business-type
activities activities Total
2016 2015 2016 2015 2016 2015
General obligation bonds, including premium $ 86,481,657 73,131,566 — — 86,481,657 73,131,566
ADEC loans — 31,002 — — — 31,002
Compensated absences 237,727 272,562 — — 237,727 272,562
Landfill post closure care costs — — 5,094,036 3,188,507 5,094,036 3,188,507
Long term interfund borrowings — — — 2,555,000 — 2,555,000
Notes payable — — 35,691,359 27,892,861 35,691,359 27,892,861
$ 86,719,384 73,435,130 40,785,395 33,636,368 127,504,779 107,071,498
The Kodiak Island Borough’s total debt increased by $20,433,281 during the current fiscal year. This increase was
due to the sale of general obligation bonds during the current fiscal year. Total general obligation bond principal
payments during the year were $3,170,000.
There is no general obligation debt limit imposed on the Kodiak Island Borough by the State Constitution, state
statutes or the Borough’s charter or code.
Additional information on the Kodiak Island Borough’s long-term debt can be found in note 10 on pages 57-61 of
this report.
BASIC FINANCIAL STATEMENTS
Component
Primary government unit Total reporting entity
Governmental Business-type School
activities activities Total District 2016 2015
Equity in central treasury $ 67,125,284 11,841,010 78,966,294 534,702 79,500,996 70,372,853
Due from primary
government — — — 8,258,650 8,258,650 11,238,882
Receivables:
State of Alaska 205,596 2,567 208,163 1,463,472 1,671,635 4,950,152
Federal government 651,839 — 651,839 — 651,839 319,459
Property taxes, net of
allowance of $15,789 308,115 — 308,115 — 308,115 243,038
Severance taxes 376,393 — 376,393 — 376,393 372,151
Interest 273,218 — 273,218 — 273,218 202,051
Land sales contracts
receivable 204,819 — 204,819 — 204,819 287,564
Accounts and other
receivables, net 57,615 529,622 587,237 2,839,739 3,426,976 1,096,191
Current portion of
notes receivable — 110,215 110,215 — 110,215 —
Inventories — 693,747 693,747 560,621 1,254,368 1,397,134
Prepaid items 26,309 — 26,309 — 26,309 14,566
Restricted cash and equivalents — 1,649,190 1,649,190 — 1,649,190 1,019,094
Notes receivable — 1,629,536 1,629,536 — 1,629,536 —
Capital assets:
Non-depreciable 110,042,293 29,510,629 139,552,922 — 139,552,922 138,669,193
Depreciable, net 53,186,981 43,562,727 96,749,708 954,650 97,704,358 85,861,545
Total assets 232,458,462 89,529,243 321,987,705 14,611,834 336,599,539 316,043,873
Deferred outflows of resources -
Pension deferrals 860,249 215,062 1,075,311 5,588,204 6,663,515 1,359,517
Total assets and deferred
outflows of resources $233,318,711 89,744,305 323,063,016 20,200,038 343,263,054 317,403,390
Liabilities:
Accounts payable $1,553,476 216,713 1,770,189 1,554,036 3,324,225 5,190,423
Accrued compensation
and related liabilities 476,829 120,174 597,003 3,830,831 4,427,834 3,855,051
Other accrued liabilities 1,238,659 240,546 1,479,205 — 1,479,205 1,025,386
Customer deposits 27,450 42,468 69,918 — 69,918 37,609
Unearned revenues 30,930 — 30,930 200,696 231,626 168,810
Due to component unit 8,258,650 — 8,258,650 — 8,258,650 11,238,882
Internal balances 2,608,036 (2,608,036) — — — —
Noncurrent liabilities:
Due within one year 4,521,024 1,088,438 5,609,462 752,272 6,361,734 5,557,726
Due in more than
one year 81,960,633 34,602,921 116,563,554 33,700 116,597,254 96,316,564
Net pension liability 4,436,528 1,109,132 5,545,660 25,770,458 31,316,118 19,136,104
Landfill closure costs — 5,094,036 5,094,036 — 5,094,036 3,188,507
Total liabilities 105,112,215 39,906,392 145,018,607 32,141,993 177,160,600 145,715,062
Deferred inflows of resources -
Pension deferrals 78,545 19,636 98,181 607,413 705,594 2,163,591
Net position:
Net investment in capital assets 76,747,617 37,381,997 114,129,614 888,833 115,018,447 127,378,905
Unrestricted 51,380,334 12,436,280 63,816,614 (13,438,201) 50,378,413 42,145,832
Total net position 128,127,951 49,818,277 177,946,228 (12,549,368) 165,396,860 169,524,737
Total liabilities, deferred inflows
of resources and net position $ 233,318,711 89,744,305 323,063,016 20,200,038 343,263,054 317,403,390
See accompanying notes to financial statements.
(With summarized financial information for June 30, 2015)
June 30, 2016
Statement of Net Position
KODIAK ISLAND BOROUGH
of Resources and Net Position
Liabilities, Deferred Inflows
Outflows of Resources
Assets and Deferred
23
Program revenues Net (expense) revenue and changes in net position
Operating Primary government Component unit
Charges for grants and Capital Governmental Business-type School Total reporting entity
Functions/Programs Expenses services contributions grants activities activities Total District 2016 2015
Primary government:
Governmental activities:
General government $7,850,988 682,664 175,116 2,181,571 (4,811,637) — (4,811,637) — (4,811,637) (4,799,373)
Public safety 798,079 16,610 3,800 6,519 (771,150) — (771,150) — (771,150) (632,912)
Community and economic development 1,167,367 — 62,590 — (1,104,777) — (1,104,777) — (1,104,777) (168,768)
Emergency preparedness 30,849 — 14,343 903,140 886,634 — 886,634 — 886,634 1,564,968
Health and sanitation department 389,000 — — — (389,000) — (389,000) — (389,000) (406,093)
Education, culture and recreation 23,949 — — — (23,949) — (23,949) — (23,949) (335,854)
Parks and recreation 87,456 — — 125,040 37,584 — 37,584 — 37,584 (34,411)
Service district maintenance 626,289 66,151 — — (560,138) — (560,138) — (560,138) (419,860)
Primary and secondary education 14,197,077 — 253,112 — (13,943,965) — (13,943,965) — (13,943,965) (13,649,223)
Interest on long-term debt 3,492,549 — 4,304,877 — 812,328 — 812,328 — 812,328 821,431
Total governmental activities 28,663,603 765,425 4,813,838 3,216,270 (19,868,070) — (19,868,070) — (19,868,070) (18,060,095)
Business-type activities:
Municipal solid waste collection and
disposal 4,764,871 2,859,436 414,790 — — (1,490,645) (1,490,645) — (1,490,645) 368,283
Hospital facilities 2,058,690 1,959,827 — 11,326 — (87,537) (87,537) — (87,537) 9,906
Kodiak Fisheries Research Center 1,555,116 3,353,718 13,788 — — 1,812,390 1,812,390 — 1,812,390 788,574
911 service 30,417 — — — — (30,417) (30,417) — (30,417) (33,961)
Total business-type activities 8,409,094 8,172,981 428,578 11,326 — 203,791 203,791 — 203,791 1,132,802
Total primary government 37,072,697 8,938,406 5,242,416 3,227,596 (19,868,070) 203,791 (19,664,279) — (19,664,279) (16,927,293)
Component unit:
School District $59,474,476 238,028 9,159,479 4,828 (50,072,141) (50,072,141) (37,033,337)
General revenues:
Property taxes 14,414,032 — 14,414,032 — 14,414,032 14,228,505
Grants and entitlements not restricted to specific programs 3,985,978 — 3,985,978 32,244,297 36,230,275 37,534,752
Land sales 27,683 — 27,683 — 27,683 103,143
Severance taxes 1,586,555 — 1,586,555 — 1,586,555 1,703,257
Support from primary government — — — 10,905,600 10,905,600 10,905,600
Investment earnings 604,274 236,180 840,454 — 840,454 655,052
Insurance proceeds 403,958 — 403,958 — 403,958 —
Other 675,246 203,764 879,010 61,652 940,662 726,201
Transfers (50,228) 50,228 — — — —
Total general revenues and transfers 21,647,498 490,172 22,137,670 43,211,549 65,349,219 65,856,510
Change in net position 1,779,428 693,963 2,473,391 (6,860,592) (4,387,201) 11,895,880
Net position, at beginning of year, as previously stated 126,089,199 49,124,314 175,213,513 (5,688,776) 169,524,737 182,897,497
Prior period adjustment 259,324 — 259,324 — 259,324 (25,268,640)
Net position, at beginning of year, as restated 126,348,523 49,124,314 175,472,837 (5,688,776) 169,784,061 157,628,857
Net position, at end of year $128,127,951 49,818,277 177,946,228 (12,549,368) 165,396,860 169,524,737
See accompanying notes to financial statements.
KODIAK ISLAND BOROUGH
Statement of Activities
Year ended June 30, 2016
(With summarized financial information for the year ended June 30, 2015)
24
Education
and Health Kodiak High Renewal and Other
Education Debt Service School Replacement Governmental
Assets General Support Facilities Fund Renovation Projects Funds 2016 2015
Assets:
Equity in central treasury $ 2,984,106 7,987,780 39,544,921 137,143 1,095,650 858,367 14,517,317 67,125,284 62,739,385
Receivables:
State of Alaska 28,672 50,241 — 43,046 — — 83,637 205,596 2,037,225
Federal government — — — — — — 651,839 651,839 319,459
Property taxes, net of
allowance of $15,789 26,548 206,583 — 37,654 — 11,056 26,274 308,115 243,038
Severance taxes 376,393 — — — — — — 376,393 372,151
Interest 273,218 — — — — — — 273,218 202,051
Land sales contracts — — — — — — 23,628 23,628 25,464
Accounts and other
receivables, net 24,131 — — — — — 33,484 57,615 51,393
Prepaid items 26,272 — — — — — 37 26,309 14,566
Due from other funds 414,830 — — — — — — 414,830 806,024
Land sales contracts, due after one year — — — — — — 181,191 181,191 262,100
Advances to other funds — — — — — — — — 2,555,000
Total assets $ 4,154,170 8,244,604 39,544,921 217,843 1,095,650 869,423 15,517,407 69,644,018 69,627,856
Liabilities:
Accounts payable 298,192 — — 10 441,897 109,323 704,054 1,553,476 2,891,025
Accrued compensation
and related liabilities 239,072 — — — — — — 239,072 157,398
Customer deposits — — — — — — 27,450 27,450 1,100
Due to component unit — 8,258,650 — — — — — 8,258,650 11,238,882
Due to other funds — — — — — 138,017 409,911 547,928 855,415
Advances from other funds — — — — — 2,474,938 — 2,474,938 2,645,631
Unearned revenues — — — — — — 30,930 30,930 94,729
Total liabilities 537,264 8,258,650 — 10 441,897 2,722,278 1,172,345 13,132,444 17,884,180
Deferred inflows of resources:
Unavailable revenues 331,125 — — — — — 204,819 535,944 560,057
Total liabilities and deferred
inflows of resources 868,389 8,258,650 — 10 441,897 2,722,278 1,377,164 13,668,388 18,444,237
Fund balances (deficits):
Nonspendable 26,272 — — — — — 181,191 207,463 276,666
Committed — — 39,544,921 217,833 — — 3,318,926 43,081,680 42,631,561
Assigned — — — — 653,753 — 10,658,464 11,312,217 7,610,272
Unassigned 3,259,509 (14,046) — — — (1,852,855) (18,338) 1,374,270 665,120
Total fund balances (deficits) 3,285,781 (14,046) 39,544,921 217,833 653,753 (1,852,855) 14,140,243 55,975,630 51,183,619
Total liabilities, deferred inflows
of resources and fund
balances (deficits) $ 4,154,170 8,244,604 39,544,921 217,843 1,095,650 869,423 15,517,407 69,644,018 69,627,856
See accompanying notes to financial statements.
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficits)
KODIAK ISLAND BOROUGH
Totals
Governmental Funds
Special Revenue Funds
(With summarized financial information for June 30, 2015)
June 30, 2016
Balance Sheet
Capital Project Funds
25
Amount reported as fund balances on the governmental funds balance sheet $ 55,975,630
Amounts reported for governmental activities in the statement of net
position are different because:
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds.163,229,274
Long-term receivables, delinquent property taxes and loans are
not available to pay for current-period expenditures and,
therefore, are unavailable in the funds:
Property taxes $331,125
Notes receivable - land sales 204,819 535,944
Long-term liabilities, including bonds payable, are not due and
payable in the current period and therefore are not reported
in the funds:
General obligation bonds payable (78,325,000)
Bond premium (8,156,657)
Accrued interest expense (1,238,659)
Compensated absences (237,757) (87,958,073)
Changes in deferred inflows and outflows of resources are the results
of timing differences in the acturial report:
Pension related assets in the current fiscal year are presented
as deferred outflows of resources 860,249
Pension related liabilities in the current fiscal year are presented
as deferred inflows of resources (78,545)
Proportionate share of the collective net pension liability (4,436,528)
Net position of governmental activities $ 128,127,951
See accompanying notes to financial statements.
KODIAK ISLAND BOROUGH
Reconciliation of Net Position Between the
June 30, 2016
Government-Wide Financial Statements and the Fund Financial Statements
26
Education
and Health Kodiak High Renewal and Other
Education Debt Service School Replacement Governmental
General Support Facilities Fund Renovation Projects Funds 2016 2015
Revenues:
Property taxes and assessments $221,757 10,106,177 — 2,033,427 — 598,217 1,351,109 14,310,687 14,091,503
Transient accomodations tax — — — — — — 95,466 95,466 104,074
Severance taxes 1,491,089 — — — — — — 1,491,089 1,703,257
Intergovernmental:
State sources 2,258,439 253,112 — 4,304,877 — — 2,054,374 8,870,802 10,332,739
Federal sources 1,873,624 — — — — — 1,216,909 3,090,533 2,093,987
Charges for services 1,532 — — — — — 696,492 698,024 552,653
Licenses, permits and fees 66,151 — — — — — 1,250 67,401 115,516
Investment income 54,211 — 515,662 (149) 5,348 — 73,915 648,987 583,677
Rental — — — — — — 8,800 8,800 20,550
Other 35,941 — — — — — 9,481 45,422 17,747
Total revenues 6,002,744 10,359,289 515,662 6,338,155 5,348 598,217 5,507,796 29,327,211 29,615,703
Expenditures:
Current:
General government 4,399,679 — — 9,125 — 123,526 774,915 5,307,245 6,333,724
Public safety 109,415 — — — — — 463,424 572,839 524,169
Community and
economic development 984,639 — — — — — 85,000 1,069,639 1,153,985
Emergency preparedness 30,849 — — — — — — 30,849 29,128
Health and social services 389,000 — — — — — — 389,000 406,093
Education, culture
and recreation 23,949 — — — — — — 23,949 24,856
Parks and recreation 87,456 — — — — — — 87,456 161,596
Service district maintenance — — — — — — 626,289 626,289 534,376
Primary and secondary education 195,000 10,905,650 — — — — — 11,100,650 11,100,714
Capital outlay:
Schools — — — — 12,812,674 — 428,246 13,240,920 21,984,655
General — — — — — 111,365 3,319,610 3,430,975 2,907,018
Debt service:
Principal — — — 3,201,002 — — — 3,201,002 2,646,040
Interest — — — 3,194,612 — — — 3,194,612 3,121,577
Debt issuance costs — — — 124,372 — — — 124,372 —
Total expenditures 6,219,987 10,905,650 — 6,529,111 12,812,674 234,891 5,697,484 42,399,797 50,927,931
Excess (deficiency) of revenues
over (under) expenditures (217,243) (546,361) 515,662 (190,956) (12,807,326) 363,326 (189,688) (13,072,586) (21,312,228)
Other financing sources (uses):
Bond issuance — — — — 7,990,000 — 7,010,000 15,000,000 —
Premium on bonds issued — — — 141,115 1,010,000 — 990,000 2,141,115 —
Land sale proceeds — — — — — — 110,428 110,428 329,344
Insurance proceeds 403,958 — — — — — — 403,958 —
Transfers in — 485,600 — 150,000 — 90,454 678,443 1,404,497 642,691
Transfers out (356,166) — (398,454) (69,553) — (52,392) (578,160) (1,454,725) (795,048)
Net other financing
sources (uses)47,792 485,600 (398,454) 221,562 9,000,000 38,062 8,210,711 17,605,273 176,987
Change in fund balances (169,451) (60,761) 117,208 30,606 (3,807,326) 401,388 8,021,023 4,532,687 (21,135,241)
Fund balances (deficit),
at beginning of year, as previously stated 3,195,908 46,715 39,427,713 187,227 4,461,079 (2,254,243) 6,119,220 51,183,619 72,318,860
Prior period adjustment 259,324 — — — — — — 259,324 —
Fund balances (deficit),
at beginning of year, as restated 3,455,232 46,715 39,427,713 187,227 4,461,079 (2,254,243) 6,119,220 51,442,943 72,318,860
Fund balances (deficits), at end of year $ 3,285,781 (14,046) 39,544,921 217,833 653,753 (1,852,855) 14,140,243 55,975,630 51,183,619
See accompanying notes to financial statements.
Totals
Special Revenue Funds
KODIAK ISLAND BOROUGH
Statement of Revenues, Expenditures and Changes
in Fund Balances (Deficits)
Governmental Funds
Year ended June 30, 2016
(With summarized financial information for the year ended June 30, 2015)
Capital Project Funds
27
KODIAK ISLAND BOROUGH
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits)
Year ended June 30, 2016
Change in fund balances – total governmental funds $ 4,532,687
Amounts reported for governmental activities in the statement of
activities are different because:
Governmental funds report capital outlays as expenditures.
However, in the Statement of Activities the cost of those assets
is allocated over their estimated useful lives and reported as
depreciation expense:
Capital outlay $15,522,612
Depreciation expense (3,947,784) 11,574,828
Governmental funds only report the revenue from the sale of
assets to the extent proceeds are received from the sale. In
the Statement of Activities, a gain or loss is reported for each
sale or disposal. The net effect of transactions involving capital
assets is to decrease net position.
Cost of assets disposed (339,358)
Accumulated depreciation of assets disposed 214,371 (124,987)
Certain revenues in the statement of activities do not provide
current financial resources and are reported as unearned or
unavailable revenues in the funds:
Property tax 331,125
Land sale proceeds 204,819 535,944
Certain revenues that were earned in a prior year provide
current financial resources:
Accrued property tax (227,780)
Accrued interest income (44,713)
Land sale contracts (287,564) (560,057)
The issuance of long-term debt provides current financial
resources to governmental funds, while the repayment of the
principal of long-term debt consumes the current financial
resources of governmental funds. Neither transaction, however,
has any effect on net position. Also, governmental funds do not
report the accrual of interest expense on debt when it is not
payable from currently available resources:
Interest expenditures applied to accrued interest (297,937)
Issuance of long term debt (17,141,115)
Principal repayments 3,201,002
Bond premium amortization 621,024 (13,617,026)
Some expenses reported in the Statement of Activities do not
require the use of current financial resources and; therefore,
are not reported as expenditures in governmental funds:
Compensated absences, net change 34,805
Increase in the proportionate share of the unfunded pension liability (1,404,238)
Changes in deferred inflows and outflows of resources are the result
of timing difference in the actuarial report and adjustments to reflect
employer and non-employer contributions based on the measurement
date of the liability.807,472
Change in net position of governmental activities $
1,779,428
See accompanying notes to financial statements.
of Governmental Funds to the Statement of Activities
28
Municipal Kodiak Other
Solid Waste Fisheries Nonmajor
Collection and Hospital Research Enterprise Totals
Disposal Facilities Center Fund 2016 2015
Current assets:
Equity in central treasury $6,633,581 3,404,619 1,802,810 — 11,841,010 7,598,649
Restricted cash and equivalents 302,501 1,346,689 — — 1,649,190 1,019,094
Customer receivables 419,597 — 105,106 4,919 529,622 993,616
Accounts receivable -
State of Alaska — 2,567 — — 2,567 5,921
Current portion of note receivable 110,215 110,215 —
Due from other funds — 138,017 — — 138,017 99,398
Total current assets 7,355,679 4,891,892 2,018,131 4,919 14,270,621 9,716,678
Inventories 416,740 277,007 — — 693,747 797,932
Capital assets:
Non-depreciable 29,484,287 26,342 — — 29,510,629 43,366,707
Depreciable, net 2,741,635 31,288,560 9,532,532 — 43,562,727 28,410,494
Total capital assets 32,225,922 31,314,902 9,532,532 — 73,073,356 71,777,201
Note receivable — — 1,629,536 — 1,629,536 —
Advances to other funds — 2,474,938 — — 2,474,938 2,645,631
Total noncurrent assets 32,642,662 34,066,847 11,162,068 — 77,871,577 75,220,764
Pension deferrals 159,146 — 55,916 — 215,062 63,624
Total assets and deferred
outflows of resources $40,157,487 38,958,739 13,236,115 4,919 92,357,260 85,001,066
Current liabilities:
Accounts payable $138,581 35 78,097 — 216,713 1,141,209
Customer deposits 42,468 — — — 42,468 36,509
Accrued compensation and
related liabilities 89,335 — 30,839 — 120,174 99,856
Interest payable 240,546 — — — 240,546 84,664
Current portion of advances
from other funds — — — — 575,000
Current portion of notes payable 443,438 645,000 — — 1,088,438 900,000
Due to other funds — — — 4,919 4,919 50,007
Total current liabilities 954,368 645,035 108,936 4,919 1,713,258 2,887,245
Noncurrent liabilities:
Notes payable 18,002,066 16,600,855 — — 34,602,921 26,992,861
Advances from other funds — — — — — 1,980,000
Accrual for landfill closure
and postclosure costs 5,094,036 — — — 5,094,036 3,188,507
Net pension liability 820,758 — 288,374 — 1,109,132 758,072
Total noncurrent liabilities 23,916,860 16,600,855 288,374 — 40,806,089 32,919,440
Total liabilities 24,871,228 17,245,890 397,310 4,919 42,519,347 35,806,685
Deferred inflows of resources -
Pension deferrals 14,531 — 5,105 — 19,636 70,067
Net position:
Net investment in capital assets 13,780,418 14,069,047 9,532,532 — 37,381,997 43,884,340
Unrestricted 1,491,310 7,643,802 3,301,168 — 12,436,280 5,239,974
Total net position 15,271,728 21,712,849 12,833,700 — 49,818,277 49,124,314
Total liabilities, deferred inflows
of resources and net position $ 40,157,487 38,958,739 13,236,115 4,919 92,357,260 85,001,066
See accompanying notes to financial statements.
KODIAK ISLAND BOROUGH
Deferred outflows of resources -
of Resources and Net Position
Proprietary Funds - Business - Type Activities - Enterprise Funds
Statement of Net Position
(With summarized financial information for June 30, 2015)
June 30, 2016
Outflows of Resources
Assets and Deferred
Liabilities, Deferred Inflows
29
KODIAK ISLAND BOROUGH
Statement of Revenues, Expenses, and Changes in Net Position
Year ended June 30, 2016
(With summarized financial information for the year ended June 30, 2015)
Municipal Kodiak Other
Solid Waste Fisheries Nonmajor
Collection and Hospital Research Enterprise Totals
Disposal Facilities Center Fund 2016 2015
Operating revenues:
Charges for services:
Solid waste disposal $2,859,436 — — — 2,859,436 2,611,854
Lease income — 1,959,827 3,353,718 — 5,313,545 4,026,821
Other 16,314 — — 30,417 46,731 45,296
Total operating revenues 2,875,750 1,959,827 3,353,718 30,417 8,219,712 6,683,971
Operating expenses:
Personnel services 1,199,794 22,000 399,528 1,500 1,622,822 1,131,787
Contracted services 195,581 — — — 195,581 139,005
Maintenance and repairs 57,629 — 1,228 — 58,857 111,342
Depreciation 302,905 1,176,745 641,669 — 2,121,319 1,748,059
General and administration 380,215 21,373 310,189 — 711,777 586,275
Miscellaneous — 34 53,839 98 53,971 43,903
Telephone services — — — 28,819 28,819 30,869
Recycling services 248,244 — — — 248,244 222,456
Closure and postclosure costs 2,030,954 — — — 2,030,954 422,016
Contributions 34,885 — — — 34,885 38,909
Total operating expenses 4,450,207 1,220,152 1,406,453 30,417 7,107,229 4,474,621
Operating income (1,574,457) 739,675 1,947,265 — 1,112,483 2,209,350
Nonoperating revenues (expense):
Intergovernmental:
Federal sources 375,468 — — — 375,468 —
State of Alaska on-behalf payment 39,322 — 13,788 — 53,110 32,649
Contribution to Providence Hospital — (108,000) — — (108,000) (108,000)
Investment income 55,983 147,985 32,212 — 236,180 80,825
Bond premium amortization 27,211 113,822 — — 141,033 141,032
Gain on sale of assets 16,000 — — — 16,000 —
Interest expense (314,664) (730,538) (148,663) — (1,193,865) (1,169,654)
Total nonoperating income (expense)199,320 (576,731) (102,663) — (480,074) (1,023,148)
Income before capital
contributions and transfers (1,375,137) 162,944 1,844,602 — 632,409 1,186,202
Capital contributions — 11,326 — — 11,326 213,753
Transfers in — 66,500 — — 66,500 152,357
Transfers out — (16,272) — — (16,272) —
Change in net position (1,375,137) 224,498 1,844,602 — 693,963 1,552,312
Net position, at beginning of year,
as previously stated 16,646,865 21,488,351 10,989,098 — 49,124,314 48,498,487
Cumulative effect of a change in accounting
principle — — — — — (926,485)
Net position, at beginning of year,
as restated 16,646,865 21,488,351 10,989,098 — 49,124,314 47,572,002
Net position, at end of year $15,271,728 21,712,849 12,833,700 — 49,818,277 49,124,314
See accompanying notes to financial statements.
Proprietary Funds - Business - Type Activities - Enterprise Funds
30
Municipal Kodiak Other
Solid Waste Fisheries Nonmajor
Collection and Hospital Research Enterprise Totals
Disposal Facilities Center Fund 2016 2015
Cash flows from operating activities:
Cash received from customers $2,783,594 2,593,276 1,545,606 30,792 6,953,268 10,087,054
Payments to suppliers (1,857,074) (61,013) (331,586) (28,917) (2,278,590) (3,270,143)
Payments to employees (1,082,649) (22,000) (347,164) (1,500) (1,453,313) (1,232,264)
Net cash provided (used) by
operating activities (156,129) 2,510,263 866,856 375 3,221,365 5,584,647
Cash flows from noncapital financing activities:
State sources - grants 39,322 — 13,788 — 53,110 213,753
Federal sources - grants 375,468 — — — 375,468 —
Contribution to Providence Hospital — (108,000) — — (108,000) (108,000)
Net change in interfund receivable/payable — 132,074 (44,713) (375) 86,986 (2,749,185)
Transfers in — 66,500 — — 66,500 152,357
Transfers out — (16,272) — — (16,272) —
Net cash provided (used) by noncapital
financing activities 414,790 74,302 (30,925) (375) 457,792 (2,491,075)
Cash flows from capital and related
financing activities:
Acquisition and construction of capital assets (3,389,392) (14,162) (13,920) — (3,417,474) (8,231,638)
Capital contributions — 11,326 — — 11,326 —
Interest paid on notes payable and
interfund borrowings (130,851) (616,716) (148,663) — (896,230) (914,801)
Principal payments on notes payable
and interfund borrowings (808,906) (738,822) (2,555,000) — (4,102,728) (1,715,584)
Proceeds from sale of assets 16,000 — — — 16,000 —
Proceeds from issuance of notes payable 9,346,226 — — — 9,346,226 (832,642)
Net cash provided (used) by capital and
related financing activities 5,033,077 (1,358,374) (2,717,583) — 957,120 (11,694,665)
Cash flows from investing activities:
Interest and dividends received 55,983 147,985 32,212 — 236,180 80,825
Net change in cash and
cash equivalents 5,347,721 1,374,176 (1,849,440) — 4,872,457 (8,520,268)
Cash and equivalents, at beginning of year 1,588,361 3,377,132 3,652,250 — 8,617,743 17,138,011
Cash and equivalents, at end of year $ 6,936,082 4,751,308 1,802,810 — 13,490,200 8,617,743
Reconciliation of cash and cash equivalents
to the Statement of Net Position:
Equity in central treasury $ 6,633,581 3,404,619 1,802,810 — 11,841,010 7,598,649
Restricted cash and equivalents 302,501 1,346,689 — — 1,649,190 1,019,094
$6,936,082 4,751,308 1,802,810 — 13,490,200 8,617,743
(continued)
Proprietary Funds - Business - Type Activities - Enterprise Funds
(With summarized financial information for the year ended June 30, 2015)
Year ended June 30, 2016
Statement of Cash Flows
KODIAK ISLAND BOROUGH
31
KODIAK ISLAND BOROUGH
Statement of Cash Flows
Municipal Kodiak Other
Solid Waste Fisheries Nonmajor
Collection and Hospital Research Enterprise Totals
Disposal Facilities Center Fund 2016 2015
Reconciliation of operating income (loss) to net
cash provided by operating activities:
Operating income (loss)$(1,574,457) 739,675 1,947,265 — 1,112,483 2,631,366
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation 302,905 1,176,745 641,669 — 2,121,319 1,748,059
Pension expense 102,757 — 46,434 — 149,191 (129,321)
Accrual for landfill closure and
postclosure costs 1,905,529 — — — 1,905,529 (1,201,632)
Changes in assets and liabilities that
provided (used) cash:
(Increase) decrease in assets:
Customer receivables (98,115) 630,095 (68,361) 375 463,994 (686,563)
Accounts receivable - State of Alaska — 3,354 — — 3,354 4,080,137
Prepaids — — — — — 2,679
Inventories 104,185 — — — 104,185 (200,000)
Notes receivable — — (1,739,751) (1,739,751) —
Increase (decrease) in liabilities:
Accounts payable (919,280) (39,606) 34,390 — (924,496) (711,149)
Customer deposits 5,959 — — — 5,959 9,509
Accrued compensation 14,388 — 5,930 — 20,318 28,844
Other accrued liabilities — — (720) — (720) 12,718
Net cash provided (used) by
operating activities $(156,129) 2,510,263 866,856 375 3,221,365 5,584,647
See accompanying notes to financial statements.
Proprietary Funds - Business - Type Activities - Enterprise Funds, (Continued)
Year ended June 30, 2016
(With summarized financial information for the year ended June 30, 2015)
32
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
Year Ended June 30, 2016
33
(1) Summary of Significant Accounting Policies
(a) Reporting Entity
The Kodiak Island Borough (the Borough), Alaska, was organized to perform the municipal duties
allowed by Alaska Statutes and as directed by its residents. As required by accounting principles
generally accepted in the United States of America, these financial statements present the government
and its component unit, an entity for which the government is considered to be financially accountable.
The discretely presented component unit is reported in a separate column in basic financial statements
to emphasize it is legally separate from the government. The Borough reviewed its relationship with
other organizations and determined that the following organization is a component unit.
Discretely Presented Component Unit
The Borough has delegated the operating responsibility for public education to the Kodiak Island
Borough Borough ( Borough). In accordance with statutes, the Borough retains ownership of the
education related capital assets and incurs the debt, if necessary, to finance the acquisition and
construction of facilities. The Borough Assembly approves the total annual budget of the Borough
and may, during the year, increase the total appropriation.
Complete financial statements for the component unit may be obtained at the entity’s administrative
offices for the Kodiak Island Borough School District.
Kodiak Island Borough School District
722 Mill Bay Road
Kodiak, Alaska 99615
(b) Government-Wide and Fund Financial Statements
The government wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the activities of the primary government and its component unit.
For the most part, the effect of inter-fund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business type activities, which rely to a significant extent on fees and charges
for support. Likewise, the primary government is reported separately from the legally separate
component unit for which the primary government is financially accountable.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
34
The statement of activities demonstrates the degree to which the direct expenses of a given function
or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with
a specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds, if applicable, are reported as
separate columns in the fund financial statements.
Deferred inflows of resources are the acquisition of fund balance / net position by the Borough that
are applicable to a future reporting period. Deferred outflows of resources are the consumption of
fund balance / net position that are applicable to to a future reporting period.
(c) Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have
been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as
they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the government considers revenues to be available if they are collected within 60 days
of the end of the current fiscal period except for grant revenues which are recognized when the related
expenditure is incurred irrespective of when the cash is received. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well
as expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property taxes and interest associated with the current fiscal period are all considered to be susceptible
to accrual and have been recognized as revenues of the current fiscal period. All other revenue items
are considered to be measurable and available only when cash is received by the government.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
35
The government reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another fund.
The Education Support Special Revenue Fund accounts for property taxes and assessments
dedicated to Borough support activity.
The Facilities Special Revenue Fund accounts for the proceeds from the sale of Shuyak Island.
The single most important goal is to preserve the principal of the fund. Interest earnings, after
inflation proofing, can be used for debt service, building insurance and capital projects.
The Education and Health Debt Service Fund was established to finance and account for the
payment of interest and principal on all general obligation debts, serial and term, other than that
payable exclusively from special assessments and revenue debt issued for and serviced by a
government enterprise fund.
The Kodiak High School Renovation Capital Project Fund accounts for the construction and major
maintenance activities for the Borough’s educational facilities funded by bonds.
The Renewal and Replacement Projects Capital Project Fund accounts for the construction and
maintenance of various Borough facilities.
The government reports the following major proprietary funds:
The Municipal Solid Waste Collection and Disposal Fund accounts for the collection and disposal
of solid waste and recycling services for the Kodiak Island Borough.
The Hospital Facilities Fund accounts for rents on the Borough owned hospital; hospital related
state revenue sharing; and other hospital related revenue. In turn, it purchases hospital equipment
and makes debt service payments on hospital related debt.
The Kodiak Fisheries Research Center Fund accounts for rents and expenses on the Borough
owned Kodiak Fisheries Research Center. Multiple tenants, which include NOAA, Alaska
Department of Fish & Game and University of Alaska, Fairbanks, pay lease funds to participate
in this multi-agency research facility committed to the preservation of the North Pacific marine
ecosystem and resources.
As a general rule the effect of inter-fund activity has been eliminated from the government wide
financial statements. Exceptions to this general rule are charges between various functions of the
government. Elimination of these charges would distort the direct costs and program revenues reported
for the various functions concerned.
Amounts reported as program revenues include (1) charges to customers or applicants for goods,
services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and
contributions. Internally dedicated resources are reported as general revenues rather than as program
revenues. Likewise, general revenues include all taxes.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
36
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues
of the enterprise funds are charges to customers for sales and services and lease revenues. Operating
expenses for enterprise funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
(d) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Fund
Balance/Net Position
Cash and Investments
Cash and temporary investments of Borough funds are pooled in a central treasury. Each fund’s portion
of this pool is displayed on the Balance Sheet and Statement of Net Position as “Equity in Central
Treasury”.
The Borough participates in the Alaska Municipal League Investment Pool (AMLIP). AMLIP is not
SEC registered and is unrated. Alaska Statute 37.23 establishes regulatory oversight of the pool. The
law sets forth numerous requirements regarding authorized investments and reporting. The pool is
incorporated in the State of Alaska as a nonprofit corporation and reports to its Board of Directors.
Alaska Statute 37.23.050 requires the retention of an investment manager.
The AMLIP manager is required to produce monthly disclosure statements to the pool. The pool has
also retained an investment advisor to monitor the performance of the investment manager and to
ensure compliance with investment policies. All participation in the pool is voluntary. The pool must
maintain a dollar weighted average maturity of 90 days or less, and only purchase instruments having
remaining maturities of 397 days or less. On a monthly basis, the investments in the pool are reviewed
for fair value by an independent pricing service.
All highly liquid investments, excluding restricted assets, with original maturities of ninety days or
less are considered to be cash equivalents. For purposes of the Statements of Cash Flows, equity in
central treasury held by enterprise funds are treated as cash equivalents.
Investments for the government, as well as the component unit, are reported at fair value, as determined
by quoted market prices. The reported value of the pool is the same as the fair value of the pool shares.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
37
Fair Value of Financial Instruments
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The following financial instruments
are recorded at fair value or at amounts that approximate fair value: (1) cash and cash equivalents, (2)
receivables, net, (3) certain other current assets, (4) accounts payable, and (5) other current liabilities.
The carrying amounts reported in the balance sheet and Statement of Net Position for the above
financial instruments closely approximates their fair value due to the short-term nature of these assets
and liabilities, except for the Borough’s investments. The carrying amount of the Borough’s
investments are determined based on quoted market prices.
The carrying amount of notes receivable and notes payable approximates fair value for those financial
instruments with interest at variable rates, as those rates approximate current market rates for notes
with similar maturities and credit quality.
Receivables and Payables
Activity between funds that are representative of lending /borrowing arrangements outstanding at the
end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of
inter-fund loans) or “advances to/from other funds” (i.e., the noncurrent portion of inter-fund loans).
Any residual balances outstanding between the governmental activities and business type activities are
reported in the government wide financial statements as “internal balances.”
Advances between funds, as reported in the fund financial statements, are offset by a fund balance
reserve account in applicable governmental funds to indicate that they are not available for
appropriation and are not expendable available financial resources.
Inventories and Prepaid Items/Expenses
Expendable operating supplies of the Borough are accounted for using the purchases method. There
are no significant amounts of such inventories on hand at year end. The entire Hospital Enterprise
Fund inventory is assigned to Providence as of April 21, 1997. According to the terms of the lease
agreement for the hospital facilities [see note 14(a)], those items are required to be returned to the
Borough at the termination of the lease in at least equal value.
Payments made to vendors for services that are applicable to future accounting periods are recorded
as prepaid items. The prepaid assets do not reflect current available resources and, thus, an equivalent
portion of fund balance is classified as nonspendable in the fund financial statements. Prepaid items
and expenses are based on the consumption method.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
38
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, street
lights, and similar items including those acquired prior to fiscal years ended after June 30, 1980), are
reported in the applicable governmental or business type activities columns in the government-wide
financial statements. Capital assets are defined by the Borough as assets with an initial, individual cost
of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such
assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated
capital assets are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business type activities is included as part
of the capitalized value of the assets constructed. There was no interest capitalized during the year.
Property, plant, and equipment of the primary government is depreciated using the straight line method
over the following estimated useful lives:
Buildings and improvements 10-40 years
Improvements other than buildings 10-15 years
Equipment 5-10 years
Infrastructure 40 years
Compensated Absences
It is the Borough’s policy to permit employees to accumulate earned but unused annual leave benefits.
All annual leave pay is accrued when incurred in the government wide and proprietary fund financial
statements. A liability for these amounts is reported in governmental funds only if they have matured,
for example, as a result of employee resignations and retirements.
Long-term Obligations
In the government wide financial statements, long-term debt and other long-term obligations are
reported as liabilities in the applicable governmental activities, business type activities, or proprietary
fund Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life
of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond
premium or discount. Bond issuance costs are expensed in the year incurred.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
39
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures. Interest on
long-term obligations is recorded as an expenditure when due.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary net
position of the Public Employees’ Retirement System (PERS) and additions to/from PERS’s fiduciary
net position have been determined on the same basis as they are reported by PERS. For this purpose,
benefit payments (including refunds of employee contributions) are recognized when due and payable
in accordance with the benefit terms, investments are reported at fair value.
Net Position
In the government wide financial statements, net position is reported in three categories; net investment
in capital assets, restricted net position and unrestricted net position.
Net position is reported as restricted when constraints placed on net asset use are either externally
imposed by creditors (such as through debt covenants), grantors, contributors provisions or laws or
regulations of other governments or imposed by law through constitutional provisions or enabling
legislation.
Fund Balance
In the Fund Financial Statements, fund balance includes five classifications as follows:
Nonspendable Fund Balance – amounts that are legally or contractually required to be maintained intact
(such as the corpus of an endowment fund) or amounts that are not in a spendable form (such as
inventory, prepaid expenses, supplies, and long-term receivables). Such constraint is binding until the
legal or contractual requirement is repealed or the amounts become spendable.
Restricted Fund Balance – amounts constrained to specific purposes by their providers (such as grantors
and higher levels of government), through constitutional provisions, or by enabling legislation. Such
constraint is binding unless modified or rescinded by external body, laws, or regulation.
Committed Fund Balance – amounts that can be used only for the specific purposes determined by a
formal action of the Borough Assembly, the Borough’s highest level of decision-making authority.
Commitments may be changed or lifted by the Assembly taking the same formal action that imposed the
constraint originally. The formal action that is required to be taken to establish, modify or rescind a fund
balance commitment is for the Assembly to pass a resolution.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
40
Assigned Fund Balance – amounts that are constrained by the Borough for specific purposes. In
governmental funds other than the General Fund, assigned fund balance represents the amount that is not
restricted or committed, but constrained for a specific purpose. Assignment of fund balance is made by
the Borough Assembly or its designee, the Finance Director. Such constraint is binding unless modified
or eliminated by the Borough Assembly or Finance Director. Assignment of fund balance is made during
the budget process and reviewed at the end of the fiscal year. Assigned fund balance for FY2016
represents amounts constrained for capital project funds and was assigned by the Finance Director.
Unassigned Fund Balance – amounts not contained in the other classifications and available for any
purpose. Positive unassigned amounts will be reported only in the General Fund. If another
governmental fund, other than the General Fund, has a fund balance deficit, then it will be reported as a
negative amount in the unassigned classification in that fund.
The order of spending, regarding the restricted and unrestricted fund balance when an expenditure is
incurred for which both restricted and unrestricted fund balance is available should first reduce restricted
fund balance and then unrestricted fund balance. The order of spending regarding unrestricted fund
balance is that committed amounts should be reduced first, followed by the assigned amounts, and then
the unassigned amounts when expenditures are incurred for purposes for which amounts in any of those
unrestricted fund balance classifications could be used.
Compliance with the provisions of the Fund Balance Classification Policy are reviewed as part of the
annual budget adoption process. The Finance Director reports to the Assembly as close to the end of the
year as possible the anticipated year-end fund balance or deficit. The Assembly takes appropriate action
to commit or assign, or otherwise allocate prior year fund balances as a part of the budget planning
process.
The Borough’s Special Revenue Funds are used to account for Borough support, fire and road service
areas, federal and state grant programs, street lighting Boroughs, and operations and maintenance
programs that are restricted or committed.
(e) Revenues, Expenditures, and Expenses
Property Taxes
Property taxes are based on the assessed value of taxable property as of January 1. Pursuant to Alaska
Statute 29.45.240, the Borough establishes the mill rate on or before June 15th. Tax bills are then
mailed on or before July 1st.
Taxes are due when billed and generally become delinquent on or after October 16th. The Borough
code also provides for split payments. If a taxpayer avails himself of this provision, one-half must be
paid on or before August 15th and the remainder becomes due on or before November 15th (in lieu of
October 15th). Borough property tax revenues are recognized in the fiscal year in which they become
measurable and available, which is generally the year following the year the tax bills are mailed.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
41
All taxes are delinquent on November 16th, and a tax foreclosure process may commence as outlined
in Alaska Statutes Title 29. Briefly, this entails the petition for Judgment of Foreclosure signed by the
Borough Court Judge and the publication of all delinquent taxes in the local newspaper for four
consecutive weeks.
Real property tax liens are enforced by one general foreclosure proceeding against the delinquent
properties.
Prior to FY2012 all area wide property taxes were deposited into the General Fund and then transferred
to the other area wide funds. As of FY2012 the Borough has set a separate mill rate for each area wide
function that was funded by property taxes. For FY2016 the Borough set a mill rate of 0.1 mills for
the General Fund, 8.45 mills for the Education Support Special Revenue Fund, 1.7 mills for the Debt
Service Fund and 0.5 mills for the Renewal and Replacement Projects Capital Project Fund for a total
area wide mill rate of 10.75. This was the same mill rate as FY2015.
Severance Taxes
Severance taxes are based on the amount and value of natural resources severed from the environment.
Types of resources taxed include seafood, gravel and mineral resources, and timber. Severance tax
returns are sent to appropriate companies (as determined by the Borough Assessor) and are returned
to the Borough Finance Department. The returns are filed quarterly, and are due by the end of the
month following the quarter’s end. Borough severance tax revenues are recognized in the fiscal year
in which they become measurable and available.
Intergovernmental Revenue
State shared revenues, safe communities, State education related entitlement programs and State levied
taxes, the proceeds of which are distributed to local governments, are recorded in the fiscal year to
which they relate, including accrual at year end if final payments due are measurable and received
within approximately two months after year end.
State of Alaska and Federal government cost reimbursable grants and contracts are recorded to the
extent of allowable expenditures in the period in which the expenditures were incurred.
When both restricted and unrestricted resources are available for use for governmental activities, it is the
Borough’s policy to use restricted resources first, then unrestricted resources as they are needed.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
42
Operating and Nonoperating Revenue and Expenses
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues
of the Municipal Solid Waste Collection and Disposal Fund and 911 Service Fund are charges to
customers for services. The principal operating revenues of the Hospital Facilities Fund and the Kodiak
Fisheries Research Center Fund are rents from customers. Operating expenses for proprietary funds
include costs of services, administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and expenses.
Revenue from Investments and Property
Amounts earned on investment of available cash balances and the rental of building facilities are
recorded in the period to which they relate, including accrual at year end of the balance due, and
unrealized gains and losses on investments held at fiscal year end.
Land Sales Proceeds and Other Local Revenues
Amounts received pursuant to land sale contracts are recorded on the modified accrual basis in the
fund financial statements and the accrual basis in the government-wide financial statements.
Other local revenues are recorded on a basis consistent with their nature in relation to measurement
and availability standards.
(f) Cash Flows
All highly liquid investments, excluding restricted assets, with original maturities of three months or
less are considered cash equivalents for purposes of the statement of cash flows.
(g) Use of Estimates
Preparation of financial statements in accordance with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the
amounts reported in these financial statements. Actual results may differ from the estimates.
Significant estimates include the allowance for doubtful accounts, the useful lives of assets and related
accumulated depreciation, and accrued landfill closure and post-closure care costs.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
43
(2) Stewardship, Compliance, and Accountability
(a) Excess of Expenditures over Appropriations
The following fund expenditures exceeded their budget:
Fund Excess
Special Revenue Funds:
Education Support
Kodiak Airport Fire District
$ 50
30
L.E.P.C.
Land Sales
2,860
33,903
Total expenditures exceeding budgets $ 36,843
(b) Deficit Fund Equity
The individual fund deficits at June 30, 2016, are as follows:
Special Revenue Funds:
Education Support $ 14,046
L.E.P.C. 18,338
Captial Project Fund:
Renewal and Replacement Projects 1,852,855
Total fund deficits $ 1,885,239
The deficit in the Education Support Fund and L.E.P.C. Fund will be funded by transfers in from the General
Fund in FY2017.
The deficit in the Renewal and Replacement Projects Capital Projects Fund is covered by a loan from the
Hospital Facilities Enterprise Fund, which will then be repaid by a mill rate increase.
(3) Cash and Investments
A portion of the Borough’s investments are in the Alaska Municipal League Investment Pool (AMLIP). The
investment in AMLIP represents the Borough’s share of ownership in the pool rather than ownership of
specific securities. The fair values of the investments in the pool approximates amortized cost and is equal
to the value of pool shares. To obtain a copy of AMLIP’s financial statements contact Key Trust of Alaska
at 101 West Benson Blvd., Room 302, Anchorage, Alaska 99503.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
44
As of June 30, 2016, the Borough had the following investments:
Invesment Maturities
Fair Less
Investment Type Value than 1 1 to 5 6 to 10
U.S. Agency Securities:
Federal Home Loan Bank $ 24,534,272 20,294,352 4,239,920 -
Federal Home Loan
Mortgage Corporation 14,481,962 14,481,962 - -
Federal Agricultural Mortgage
Corporation Discount Note 1,727,164 1,727,164 - -
U.S. Treasury Note
Federal National Mortgage
4,004,320 4,004,320 - -
Association 5,545,618 5,545,618 - -
Municipal Obligations 12,413,657 150,975 2,942,917 9,319,765
Alaska Municipal League
Investment Pool 9,670,382 9,670,382 - -
Certificates of Deposit 1,694,815 - 1,694,815 -
$ 74,072,190 55,874,773 8,877,652 9,319,765
In addition to the investments listed above, Kodiak Island Borough also had cash equivalents of $6,543,294,
which includes restricted cash of $1,649,190.
The Borough categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are
significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Borough has
the following recurring fair value measurements as of June 30, 2016:
Total Level 1 Level 2 Level 3
Investments by fair value level:
Debt securities:
U.S. Agency Securities $ 50,293,336 50,293,336 - -
Municipal Obligations 12,413,657 - 12,413,657 -
Total debt securities 62,706,993 50,293,336 12,413,657 -
Other Investements:
Alaska Municpal League
Investment Pool 9,670,382 - 9,670,382 -
Certificates of Deposit 1,694,815 - 1,694,815 -
Total other investments 11,365,197 - 11,365,197 -
Total investments $ 74,072,190 50,293,336 23,778,854 -
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
45
Interest Rate Risk
The Borough’s investment policy does not limit investment maturities as a means of managing its exposure
to fair value losses arising from increasing interest rates.
Credit Risk
Statutes authorize the Borough to invest in obligations of the United States, the State of Alaska and its
political subdivisions, savings accounts, certificates of deposit, banker’s acceptances, repurchase
agreements, and such other legal security instruments. The Borough does not have a formal investment
policy that restricts investments based on credit risk.
At June 30, 2016, the Borough’s investments in municipal obligations and U.S. Government agencies or
instruments implicitly guaranteed by the U.S. Government were rated as follows:
Moody’s / S&P
AAA 80%
AA 19%
A 1%
100%
At June 30, 2016, the Borough’s investment in the Alaska Municipal League Investment Pool and
Certificates of Deposit were unrated.
Concentration of Credit Risk
The Borough places no limit on the amount the Borough may invest in any one issuer. At June 30, 2016,
the Borough had 68% percent of its investments in U.S. Government agency securities.
Custodial Credit Risk – Deposits
The Borough maintains a cash pool that is available for use by all funds. Each fund’s portion of this pool is
reported on the Balance Sheet and Statements of Net Position as “Equity in Central Treasury” or amounts
“due to/from other funds.”
The Borough bank accounts are insured by the Federal Depository Insurance Corporation (FDIC) to a
maximum of $250,000. U.S. Treasury obligations collateralize the remaining bank balance, which is held
by Bank of New York in a Tri-party collateral agreement with Wells Fargo, the pledging financial
institution’s agent, in the Borough’s name.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
46
Custodial Credit Risk – Investments
For an investment, this is a risk that, in the event of the failure of the counterparty, the Borough will not be
able to recover the value of its investments or collateral securities that are in the possession of an outside
party. The Borough manages its custodial credit risk in investments by requiring collateralization
agreements. The Borough had no debt securities exposed to custodial credit risk at June 30, 2016.
(4) Annual Appropriation to the School District
An annual appropriation is made to the School District. In addition to the annual appropriation, the Borough
provides the School District general liability and property insurance, data processing services, the annual
independent audit, mental health services, and grounds maintenance services.
(5) Receivables
Renewal and
Replacement
Education Education and Projects Other Total
General Support Special Health Debt Capital Project Governmental Governmental
Fund Revenue Fund Service Fund Fund Funds Funds
Receivables:
Grants $ 28,672 50,241 43,046 — 735,476 857,435
Taxes 418,730 206,583 37,654 11,056 26,274 700,297
Interest 273,218 — — — — 273,218
Customers and other 24,131 — — — 238,303 262,434
Notes receivable — — — — — —
Gross receivables 744,751 256,824 80,700 11,056 1,000,053 2,093,384
Less: allowance
for uncollectibles (15,789) — — — — (15,789)
Net total receivables $ 728,962 256,824 80,700 11,056 1,000,053 2,077,595
Municipal Kodiak Other
Solid Waste Fisheries Nonmajor Total Total Total
Collection Hospital Research Enterprise Enterprise Governmental Primary
and Disposal Facilities Center Fund Funds Funds Government
Receivables:
Grants $ — 2,567 — — 2,567 857,435 860,002
Taxes — — — — — 700,297 700,297
Interest — — — — — 273,218 273,218
Customers and other 419,597 — 105,106 4,919 529,622 262,434 792,056
Notes receivable — — 1,739,751 — 1,739,751 — 1,739,751
Gross receivables 419,597 2,567 1,844,857 4,919 2,271,940 2,093,384 4,365,324
Less: allowance
for uncollectibles — — — — — (15,789) (15,789)
Net total receivables $ 419,597 2,567 1,844,857 4,919 2,271,940 2,077,595 4,349,535
Enterprise Funds
Governmental Funds
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
47
(6) Note Receivable - General Services Administration (GSA) on-behalf of National Oceanic and
Atmospheric Administration (NOAA)
In April 2016 a new lease was executed between the Kodiak Island Borough and GSA which included a debt
repayment portion designed to recoup costs incurred by the Borough to finance construction of the facility.
Monthly payments to the Borough in the amount of $14,112 include interest of 3.5% and will continue
through March 2029. As of June 30, 2016 the principal balance due is $1,739,751 and the principal amount
due within one year is $110,215. This note recievable is recorded in the Kodiak Fisheries Research Center
Enterprise Fund.
(7) Deferred Inflows of Resources and Unearned Revenues
Governmental funds report deferred inflows of resources in connection with receivables for revenues that
are not considered to be available to liquidate liabilities of the current period. Governmental funds also
report unearned revenues in connection with resources that have been received, but not yet earned. At June
30, 2016, the various components of deferred inflows of resources and unearned revenue reported in the
governmental funds were as follows:
Unavailable Unearned Total
Unavailable property taxes receivable $ 331,125 - 331,125
Unavailable land sales receivable 204,819 - 204,819
Grant advances prior to expending all proceeds - 30,930 30,930
Total unavailable/unearned revenue
for governmental funds $ 535,944 30,930 566,874
The remainder of this page left blank intentionally.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
48
(8) Capital Assets
As noted in Footnote (14), the Borough leases the Kodiak Island Hospital and Care Center to Sisters of
Providence. The value of the leased assets and associated depreciation are reflected in the Hospital Facilities
Fund following.
Capital asset activity for the year ended June 30, 2016 was as follows:
Beginning Ending
Balance Increase Decrease Balance
Governmental activities:
Capital assets, not being
depreciated
Land $ 23,439,318 5,500 - 23,444,818
Construction
work-in-progress 71,863,168 15,460,165 (725,858) 86,597,475
Total 95,302,486 15,465,665 (725,858) 110,042,293
Capital assets, being
depreciated:
Buildings and improvements 111,827,781 - (100,000) 111,727,781
Improvements other than
buildings 21,334,288 638,163 - 21,972,451
Equipment 3,222,755 56,947 (151,663) 3,128,039
Infrastructure 5,762,722 - - 5,762,722
Total 142,147,546 695,110 (251,663) 142,590,993
Less accumulated
depreciation for:
Buildings and improvements 69,789,051 2,547,360 (62,708) 72,273,703
Improvements other than
buildings 8,479,896 1,161,250 - 9,641,146
Equipment 2,360,196 163,251 (151,663) 2,371,784
Infrastructure 5,041,456 75,923 - 5,117,379
Total 85,670,599 3,947,784 (214,371) 89,404,012
Total capital assets
being depreciated, net 56,476,947 (3,252,674) (37,292) 53,186,981
Total governmental
activities, net $ 151,779,433 12,212,991 (763,150) 163,229,274
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
49
Beginning Ending
Balance Increase Decrease Balance
Business-type activities:
Municipal Solid Waste Collection
and Disposal Fund capital assets,
not being depreciated
Land $ 1,651,248 - - 1,651,248
Construction work-in-progress 24,821,975 3,011,064 - 27,833,039
Total 26,473,223 3,011,064 - 29,484,287
Capital assets, being
depreciated:
Unclassified utility plant in
service 2,178,733 - - 2,178,733
Improvements other than
buildings 3,058,740 110,931 - 3,169,671
Machinery and equipment 1,920,548 267,397 (190,968) 1,996,977
Total 7,158,021 378,328 (190,968) 7,345,381
Less accumulated
depreciation for:
Unclassified utility plant in
service 1,253,521 42,055 - 1,295,576
Improvements other than
buildings 1,566,541 178,948 - 1,745,489
Machinery and equipment 1,671,747 81,902 (190,968) 1,562,681
Total 4,491,809 302,905 (190,968) 4,603,746
Total capital assets
being depreciated, net 2,666,212 75,423 - 2,741,635
Total Municipal Solid
Waste Collection and
Disposal Fund, net $ 29,139,435 3,086,487 - 32,225,922
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
50
Beginning Ending
Balance Increase Decrease Balance
Hospital Facilities Fund:
Capital assets, not being
depreciated
Artwork $ 16,091 - - 16,091
Land 10,251 - - 10,251
Construction
work-in-progress 15,553,824 14,162 (15,567,986) -
Total 15,580,166 14,162 (15,567,986) 26,342
Capital assets, being
depreciated:
Buildings 33,100,284 15,567,986 - 48,668,270
Improvements other than
buildings 401,046 - - 401,046
Machinery and equipment 3,627,068 - - 3,627,068
Total 37,128,398 15,567,986 - 52,696,384
Less accumulated
depreciation for:
Buildings 16,497,115 1,116,735 - 17,613,850
Improvements other than
buildings 225,190 12,575 - 237,765
Machinery and equipment 3,508,774 47,435 - 3,556,209
Total 20,231,079 1,176,745 - 21,407,824
Total capital assets
being depreciated, net 16,897,319 14,391,241 - 31,288,560
Total Hospital Facilities
Fund, net $ 32,477,485 14,405,403 (15,567,986) 31,314,902
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
51
Beginning Ending
Balance Increase Decrease Balance
Kodiak Fisheries Research Center Fund:
Capital assets, not being
depreciated
Construction
work-in-progress $ 1,313,318 13,920 (1,327,238) -
Capital assets, being
depreciated:
Buildings 17,840,410 - - 17,840,410
Improvements other than
buildings 1,058,262 1,327,238 - 2,385,500
Machinery and equipment 1,187,678 - - 1,187,678
Total 20,086,350 1,327,238 - 21,413,588
Less accumulated
depreciation for:
Buildings 9,513,124 594,680 - 10,107,804
Improvements other than
buildings 552,648 40,961 - 593,609
Machinery and equipment 1,173,615 6,028 - 1,179,643
Total 11,239,387 641,669 - 11,881,056
Total capital assets
being depreciated, net 8,846,963 685,569 - 9,532,532
Total Kodiak Fisheries
Research Center Fund, net $ 10,160,281 699,489 (1,327,238) 9,532,532
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
52
Beginning Ending
Balance Increase Decrease Balance
Total business-type activities:
Capital assets, not being
depreciated
Artwork $ 16,091 - - 16,091
Land 1,661,499 - - 1,661,499
Construction
work-in-progress 41,689,117 3,039,146 (16,895,224) 27,833,039
Total 43,366,707 3,039,146 (16,895,224) 29,510,629
Capital assets, being
depreciated:
Unclassified utility plant in
service 2,178,733 - - 2,178,733
Buildings 50,940,694 15,567,986 - 66,508,680
Improvements other than
buildings 4,518,048 1,438,169 - 5,956,217
Machinery and equipment 6,735,294 267,397 (190,968) 6,811,723
Total 64,372,769 17,273,552 (190,968) 81,455,353
Less accumulated
depreciation for:
Unclassified utility plant in
service 1,253,521 42,055 - 1,295,576
Buildings 26,010,239 1,711,415 - 27,721,654
Improvements other than
buildings 2,344,379 232,484 - 2,576,863
Machinery and equipment 6,354,136 135,365 (190,968) 6,298,533
Total 35,962,275 2,121,319 (190,968) 37,892,626
Total capital assets
being depreciated, net 28,410,494 15,152,233 - 43,562,727
Total business-type
activities, net $ 71,777,201 18,191,379 (16,895,224) 73,073,356
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
53
Depreciation expense was charged to the departments and functions of the primary government as follows:
Governmental activities:
General government $ 548,117
Public safety 174,917
Primary and secondary education 3,224,750
Total – governmental activities $ 3,947,784
Business-type activities:
Municipal solid waste collection and
disposal $ 302,905
Hospital facilities 1,176,745
Kodiak fisheries research center 641,669
Total – business-type activities 2,121,319
Total primary government $ 6,069,103
(9) Interfund Receivables, Payables and Transfers
(a) Interfund Receivables and Payables
Interfund balances at June 30, 2016 consisted of the following:
Due to / from other funds:
Receivable Fund Payable Fund Amount
Major governmental funds:
General Fund Other Governmental Funds $ 409,911
General Fund Other Nonmajor Enterprise Fund 4,919
Hospital Facilities Enterprise Fund Renewal and Replacement Capital
Project Fund 138,017
Total primary government $ 552,847
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
54
Advances to / from other funds and Long-Term Interfund Borrowings
Receivable Fund Payable Fund Amount
Major enterprise fund –
Hospital Facilities Enterprise Fund Renewal and Replacement Capital
Project Fund $ 2,612,955
In 2015, the Hospital Facilities Enterprise Fund loaned $2,905,105 to the Renewal and Replacement
Capital Projects Fund in order to help fund ongoing projects. The loan from the Hospital Facilities
Enterprise Fund is accounted for as a long-term interfund advance, while the liability in the Renewal
and Replacement Capital Projects Fund is accounted for as a long-term interfund borrowing. The
advance bears interest at 4.5%, and the scheduled payments for the next five fiscal years and thereafter
are as follows:
Principal Interest Total
Year ending June 30:
2017 $ 138,017 117,583 255,600
2018 144,228 111,372 255,600
2019 150,718 104,882 255,600
2020 157,500 98,100 255,600
2021 164,588 91,012 255,600
2022-2026 940,932 337,068 1,278,000
2027-2030 916,972 105,428 1,022,400
$ 2,612,955 965,445 3,578,400
The current portion of $138,017 is recorded as due from other funds in the Renewal and Replacement
Projects Fund. $2,474,938 is not scheduled to be paid in FY2017 and is recorded as advances from
other funds.
All remaining interfund balances were short term loans to cover negative cash balances at year end.
The outstanding short term balances between funds result from the time lag between the dates that (1)
inter-fund goods and services are provided or reimbursable expenditures or expenses occur,
(2) transactions are recorded in the accounting system, and (3) payments between funds are made.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
55
(b) Transfers
Interfund transfers have been made in accordance with budget ordinances. Funds are transferred from
one fund to support expenditures of other funds in accordance with the authority established for the
individual fund. Transfers between funds during the year ended June 30, 2016 were as follows:
Transfers In
Governmental Funds
Education Renewal and
and Health Replacement Hospital
Education Debt Projects Other Facilities
Support Service Capital Project Governmental Enterprise
Fund Fund Fund Funds Fund Total
Transfers Out
Major Governmental Funds:
General Fund $ 345,600 - - 10,566 - 356,166
Facilities Special Revenue Fund 140,000 150,000 90,454 18,000 - 398,454
Education and Health Debt Service Fund - - - 69,553 - 69,553
Renewal and Replacement Projects Fund - - - 52,392 - 52,392
Other Governmental Funds - - - 511,660 66,500 578,160
Hospital Facilities Enterprise Fund - - - 16,272 - 16,272
Total transfers $ 485,600 150,000 90,454 678,443 66,500 1,470,997
A summary of significant transfers are as follows:
The General Fund transferred $345,600 to the Education Support Special Revenue Fund to
pay for primary and secondary education costs.
The General Fund transferred $10,566 to the Oil Spill Disaster Special Revenue Fund to close
the fund.
The Facilities Special Revenue Fund transferred $140,000 to the Education Support Special
Revenue Fund for debt service on Borough bonds.
The Facilities Special Revenue Fund transferred $150,000 to the Education and Health Debt
Service Fund for debt service on Borough bonds.
The Facilities Special Revenue Fund transferred $90,454 to the Renewal and Replacement
Projects Capital Project Fund to pay for capital improvements.
The Facilities Special Revenue Fund transferred $18,000 to the Building and Grounds Special
Revenue Fund to pay for building insurances.
The Education and Health Debt Service Fund transferred $69,553 to the School Bond Capital
Projects Capital Project Fund to pay additional project costs for the Kodiak Middle School.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
56
The Borough Capital Projects Capital Project Fund transferred $379,580 to the School Bond
Capital Projects Capital Project Fund to consolidate available fund balance to repay the State
of Alaska unused project funds.
The Renewal and Replacement Projects Capital Project Fund transferred $52,392 to the
School Bond Capital Projects Capital Project Fund to consolidate available fund balance to
repay the State of Alaska unused project funds.
The Womens Bay Fire Department Special Revenue Fund transferred $100,000 to the State
Capital Grants Capital Project Fund to pay for construction of the Womens Bay Emergencey
Shelter.
The Land Sales Special Revenue Fund transferred $27,600 to the Womens Bay Road Service
Area Special Revenue Fund to correct a prior year posting error.
The Service Area No. 1 Special Revenue Fund transferred $4,480 to the Trinity Islands Paving
Special Revenue Fund to close the fund.
The Fern Fuller Trust Special Revenue Fund transferred $66,500 to the Hospital Facilities
Enterprise Fund for the purchase of new equipment.
The Hospital Facilities Enterprise Fund transferred $16,272 to the Building and Grounds
Special Revenue Fund to pay for building insurances.
(The remainder of this page left blank intentionally.)
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
57
(10) Long Term Debt
(a) General Obligation Bonds and other Debt
The Borough issues general obligation bonds and other debt to provide funds for the acquisition and
construction of major capital facilities. General obligation bonds are direct obligations and pledge the
full faith and credit of the Borough. General obligation bonds and other debt currently outstanding are
as follows:
Balance Balance Due Within
July 1, 2015 Additions Reductions June 30, 2016 One Year
General obligation bonds:
$8,000,000 2008 Series A
High School Improvement bonds,
due in semi-annual installments
of $350,000 to $595,000 plus
interest at 4.0% to 5.0% through
April 2028 5,970,000 - 350,000 5,620,000 370,000
$8,000,000 2011 Series One
High School Renovation bonds,
due in semi-annual installments
of $310,000 to $595,000 plus
interest at 2.75% to 5.20% through
March 2031 6,840,000 - 310,000 6,530,000 320,000
$5,230,000 2012 Series A
Capital Improvements bonds
due in semi-annual installments
of $455,000 to $630,000 plus interest
at 2.0% to 5.0% through September 2024 5,195,000 - 435,000 4,760,000 455,000
$6,385,000 2012 Series B
Capital Imrovements bonds
due in semi-annnual installments of
$550,000 to $770,000 plus interest
at 2.0% to 5.0% through September 2024 6,340,000 - 530,000 5,810,000 550,000
$21,595,000 2013 Series One
High School Renovation bonds,
due in semi-annual installments of
$790,000 to $1,630,000 plus interest
of 3.8% to 5.0% through
February 2033 20,230,000 - 760,000 19,470,000 790,000
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
58
Balance Balance Due Within
July 1, 2015 Additions Reductions June 30, 2016 One Year
General obligation bonds, continued:
$22,660,000 2014 Series One
High School Renovation bonds,
due in semi-annual installments of
$785,000 to $1,690,000 plus
interest of 2.0% to 5.0% through
March 2034 21,920,000 - 785,000 21,135,000 810,000
$6,210,000 2015 Series Three
High School Renovation bonds,
due in semi-annual installments of
$195,000 to $480,000 plus interest
of 2.0% to 5.25% through
October 2035 - 6,210,000 - 6,210,000 195,000
$1,780,000 2015 Series Three
Renewal and Replacement bonds,
due in semi-annual installments of
$145,000 to $220,000 plus interest
of 2.0% to 5.0% through October 2025 - 1,780,000 - 1,780,000 145,000
$1,870,000 2016 Series One
High School Renovation bonds,
due in semi-annual installments of
$30,000 to $130,000 plus interest
of 2.0% to 5.0% through August 2035 - 1,870,000 - 1,870,000 30,000
$5,140,000 2016 Series One
Renewal and Replacement bonds,
due in semi-annual installments of
$235,000 to $660,000 plus interest
of 5.0% through August 2025 - 5,140,000 - 5,140,000 235,000
$97,019 Clean Water Loan - Karluk
due in annual installments of
$5,000 to $6,000 plus interest of
3.92% to 4.05% through June 2020 31,002 - 31,002 - -
$ 66,526,002 15,000,000 3,201,002 78,325,000 3,900,000
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
59
The annual requirements to amortize all general obligation bonded debt outstanding as of June 30, 2016, are as
follows:
Principal Interest Total
Year ending June 30:
2017 $ 3,900,000 3,564,104 7,464,104
2018 4,250,000 3,420,117 7,670,117
2019 4,430,000 3,250,442 7,680,442
2020 4,605,000 3,067,742 7,672,742
2021 4,800,000 2,877,356 7,677,356
2022-2026 26,120,000 10,809,663 36,929,663
2027-2031 19,430,000 5,362,160 24,792,160
2032-2036 10,790,000 1,037,664 11,827,664
$ 78,325,000 33,389,248 111,714,248
At June 30, 2016, there was $217,833 available in the Education and Health Debt Service Fund to service general
obligation bonds. There are a number of limitations and restrictions contained in the various bond indentures.
The Borough is in compliance with all significant limitations and restrictions.
(The remainder of this page left blank intentionally.)
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
60
(b) Notes Payable
As of June 30, 2016, the Borough had the following notes payable outstanding in the Municipal Solid
Waste Collection and Disposal Enterprise Fund:
Note payable (ACWF #505031) to Alaska Department of Enviromental
Conservation (ADEC), to be paid within 20 years. From June 2, 1999
until April 28, 2005 interest accrued at 2.5%. From April 29, 2005 to
June 30, 2015 interest accrued at 1.5%. The first loan payment was
made on April 1, 2012, with payments of $100,000 being due on April
1 in each successive year.
$
1,500,000
Note payable (ACWF #505041) to Alaska Department of Environmental
Conservation (ADEC), to be paid within 20 years. Interest accrued at
1.5% over the life of the loan. The first loan payment was made on
June 30, 2016, with payments of varying amounts being due on June
30 in each successive year.
$
11,537,879
Note payable (ACWF #505061) to Alaska Department of Environmental
Conservation (ADEC), to be paid within 20 years. Interest started
being accrued at 1.5% in November 2015 and will be accrued over
the life of the loan. The first loan payment was made on March 1,
2016 with payments of varying amounts being due on March 1 in each
successive year.
$
2,493,305
On September 15, 2011 the Borough issued a $3,275,000 revenue bond,
with a premium of $384,379. The bond was marketed by the Alaska
Municipal Bond Bank. Interest accrues at rates between 3.0 and 5.0%
with payments due on September 1 and March 1 of each year. The
bond will mature on September 1, 2026.
$
2,914,320
As of June 30, 2016, the Borough had the following bond payable outstanding in the Hospital Facilities
Enterprise Fund:
On September 15, 2011 the Borough issued a $17,110,000 revenue bond,
with a premium of $1,707,320. The bond was marketed by the Alaska
Municipal Bond Bank. Interest accrues at rates between 2.0 and 5.0%
with payments due on June 1 and December 1 of each year. The bond
will mature on June 1, 2033.
$
17,245,855
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
61
(c) Changes in Long-term Liabilities
Long-term liability activity for the year ended June 30, 2016, was as follows:
Balance Balance
June 30,June 30,Due within
2015 Additions Reductions 2016 one year
Governmental activities:
Bonds payable:
General obligation bonds $66,495,000 15,000,000 3,170,000 78,325,000 3,900,000
Bond premium 6,636,566 2,141,115 621,024 8,156,657 621,024
73,131,566 17,141,115 3,791,024 86,481,657 4,521,024
ADEC loans 31,002 — 31,002 — —
Compensated absences 272,562 237,757 272,562 237,757 237,757
Total $ 73,435,130 17,378,872 4,094,588 86,719,414 4,758,781
Business-type activities:
Municipal Solid Waste
Collection and Disposal:
Landfill closure and
post-closure costs $3,188,507 1,905,529 — 5,094,036 —
Notes payable 9,908,184 9,346,226 808,906 18,445,504 443,438
Total $ 13,096,691 11,251,755 808,906 23,539,540 443,438
Hospital Facilities:
Bonds payable $17,984,677 — 738,822 17,245,855 645,000
Kodiak Fisheries Research
Center:
Long term interfund
borrowings $ 2,555,000 — 2,555,000 — —
Total $ 2,555,000 — 2,555,000 — —
Business-type activities:
Landfill closure and post-
closure costs $3,188,507 1,905,529 — 5,094,036 —
Long term interfund
borrowings 2,555,000 — 2,555,000 — —
Notes/bonds payable 27,892,861 9,346,226 1,547,728 35,691,359 1,088,438
Total $ 33,636,368 11,251,755 4,102,728 40,785,395 1,088,438
For governmental activities, compensated absences are generally liquidated by the General Fund.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
62
(11) Fund Balances
Detailed information related to amounts classified as nonspendable, committed and assigned fund balances in
governmental funds at June 30, 2016 are as follows:
Kodiak
Education High
and School
Facilities Health Renovation
Special Debt Capital Other
General Revenue Service Project Governmental
Fund Fund Fund Fund Funds Total
Nonspendable:
Prepaid Items $ 26,272 - - - - 26,272
Long Term Receivables - - - - 181,191 181,191
Total Nonspendable 26,272 - - - 181,191 207,463
Committed:
Facility Upgrades - 39,544,921 - - - 39,544,921
Debt Service - - 217,833 - - 217,833
Fire and Road
Service Areas - - - - 2,066,073 2,066,073
Land Sales - - - - 200,709 200,709
Buildings and Grounds - - - - 593,215 593,215
Street Lighting
Districts - - - - 56,993 56,993
Tourism Development - - - - 219,550 219,550
Mission Lake Tide Gate - - - - 48,379 48,379
Fern Fuller Trust - - - - 134,007 134,007
Total Committed $ - 39,544,921 217,833 - 3,318,926 43,081,680
Assigned:
Capital Projects and
Upgrades $ - - - 653,753 10,658,464 11,312,217
(12) Solid Waste Landfill Closure and Post Closure Care Costs
State and federal laws and regulations require that the Kodiak Island Borough place a final cover on its landfill
when closed and perform certain maintenance for a number of years after closure. In addition to operating
expenses related to current activities of the landfill, an expense provision and related liability are recognized
based on the future closure and post closure care costs that will be incurred based on the date the landfill no
longer accepts waste. The recognition of these landfill closure and post closure care costs is based on the amount
of the landfill used during the year. The estimated liability of landfill closure and post closure care costs is
$5,094,036 as of June 30, 2016, which is based on 35% usage (filled) of the landfill.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
63
During the year ended June 30, 2016, the Borough completed closure activities on the original landfill and
opened new cells in Phase III as part of the Borough’s landfill expansion project. This resulted in a significant
increase in the estimated closure and post-closure costs as Phase III was not included in previous cost
estimates before utilization of the new cells began. The Borough recorded closure/post-closure expenses of
$2,030,954 resulting from actual cost outlays of $125,425 to close remaining cells in Phase II and estimated
future costs of $1,905,529 for closure and post-closure costs. The estimated total current cost of the landfill
closure and post closure care of $5,094,036 is based on the amount that would be paid if the landfill were
closed as of June 30, 2016. However, the actual cost of closure and post closure care may be higher due to
inflation, changes in technology, or changes in landfill laws and regulations.
The Kodiak Island Borough is required by state and federal laws and regulations to make annual
contributions to finance closure and post closure care. The Kodiak Island Borough complies with these
requirements by annually recording the liability based on the estimates provided by the Kodiak Island
Borough’s Engineering/Facilities Director. It is anticipated that future inflation costs and additional costs
that might arise from changes in post closure requirements, due to changes in technology or more rigorous
environmental regulations, for example, will be financed primarily by charges to future landfill users and
secondarily by taxpayers.
In the fiscal year ended June 30, 1999 the Borough began initial planning for lateral expansion of the landfill
(Phase 3). In May of 2012 bidding on the project was begun and work is ongoing and expected to continue
through 2016. The lateral expansion has an estimated forty year capacity. Capital costs to complete is
estimated at $3,000,000.
(13) Insurance and Risk Retention
The Kodiak Island Borough is exposed to numerous risks of loss associated with the operations of a
government. These potential losses include, but are not limited to, employee relations and injuries, contracts,
theft, loss or damage of property and general liability. The Borough manages its risks from these potential
losses by participating in the Alaska Municipal League Joint Insurance Association, as well as purchasing
commercial insurance coverage. This insurance has provided the Borough with adequate coverage in the
past. There were no significant changes in insurance coverage obtained and there were no claims or
settlements that exceeded insurance coverage in any of the past three fiscal years.
The Borough is a member in good standing of the Alaska Municipal League Joint Insurance Association
(JIA), a governmental insurance pool established by the Alaska Municipal League. Claims are covered on
an occurrence basis. JIA provides risk management services, appraisal services and there is also a separate
pool for policy liability.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
64
The responsibilities of both JIA and the participants are as follows:
(a) Responsibilities of JIA
JIA shall perform the following instructions in discharging its responsibilities:
Provide insurance coverage as necessary for property, including building and contents,
automobile, mobile equipment and data processing equipment, casualty, including general
liability, public officials’ and employees’ liability, auto liability and employee benefit liability;
workers’ compensation, including employers’ liability; commercial blanket bond; and time
element.
Assist each participant’s assigned risk manager with the implementation of that function.
Provide loss prevention and safety and consulting services to participants as required.
Provide claims adjusting and subrogation services for claims covered by the association’s joint
insurance arrangement.
(b) Responsibilities of the Participants
The Participants shall have the following responsibilities:
The Borough Assembly or appointing official of each participant shall appoint a representative
as provided in Article 5, Section 2 of the bylaws and at least one alternate representative to
attend member meetings.
Each participant shall appoint an employee of the participant to be responsible for the risk
management function within that entity and to serve as a liaison between the participant and JIA
with respect to risk management.
Each participant shall maintain an active safety officer and/or committee, and shall comply with
all recommendations of JIA concerning the development and implementation of a loss control
policy to prevent unsafe practices.
Each participant shall maintain its own set of records as a loss log, in all categories of loss to
insure accuracy of JIA’s loss reporting system.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
65
(14) Rental Revenues
(a) Hospital Facilities Enterprise Fund
The Kodiak Island Borough Assembly leases the Kodiak Island Hospital and Long Term Care Center
premise and equipment to Sisters of Providence d.b.a. Providence Kodiak Island Medical Center who
assumed responsibility for the hospital’s operations as of April 21, 1997. The lease agreement is
effective for a term of twenty years from that date. The lease is cancelable by either party with a one
year notice. The hospital capital assets, the lease income, and all other costs relating to the agreement
are accounted for by the Borough in the Hospital Facilities Enterprise Fund.
The agreement with Providence specifies that the Borough will contribute at least $108,000 per year
for the purchase of new and replacement equipment for the hospital. The Borough is also required to
fund any major maintenance and repairs projects exceeding $25,000 in cost. The Borough receives
$60,000 per month in rental revenue. In August 2003 the lease was amended and required Providence
to pay an additional lease payment of $1,300,000 in 2004. In October 2005 the lease was amended to
remove the requirement that Providence had to pay 50% of the net revenues of the hospital, up to
$600,000, in rental revenues. Providence now has to spend 50% or more of their net profit, up to
$200,000, on equipment. The lease was also amended to have the $108,000 of equipment which the
Borough was required to purchase annually to become Providence property rather than Borough
property.
The Kodiak Island Borough Assembly leases the Kodiak Long Term Care Center to Sisters of
Providence, d.b.a. Providence Kodiak Island Medical Center who assumed responsibility for the Long
Term Care Center’s operations as of February 1, 2015. The lease agreement is effective for a term of
twenty years from that date.
The lease is cancelable by either party with a one year notice. The Center’s capital assets, the lease
income, and all other costs relating to the agreement are accounted for by the Borough in the Hospital
Facilities Enterprise Fund.
The agreement with Providence specifies that Providence will pay monthly lease payments to the
Borough in an amount no less than required to fully fund all debt service requirments plus an amount
sufficient to cover the Borough’s expenses in maintaining insurance for fire and other risks (including
earthquakes).
Over the term of the lease it is estimated that the average monthly lease payment will be $95,000.
(b) Kodiak Fisheries Research Center
The Kodiak Fisheries Research Center (KFRC) leases its premise to the Alaska Department of Fish
and Game (ADF&G), the General Services Administration (GSA) on behalf of National Oceanic and
Atmospheric Administration (NOAA), and the University of Alaska Fairbanks (UAF).
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
66
The lease with ADF&G is from October 1, 1998 through September 30, 2018, with an option to extend
for up to two additional five year periods. Annual rent is $57,680. The annual rent from 2012 through
2018 will be adjusted for the tenant’s proportionate share of building expenses and utilization of the
seawater system.
The lease with NOAA was amended in April 2016 and expires in March 2036. Annual rent is $868,777
which is comprised of $185,867 base rent plus operational and maintenance expenses of $513,561 and
debt repayment of $169,349. The debt repayment element was negotiated in the new lease to recover
a portion of the original debt incurred by the Borough for construction of the facility. The original
bond issue was fully paid by the Borough; however, the new lease is designed to recoup a costs aleady
incurred and this portion of the lease is recorded as a long-term receivable in the amount of $1,739,751
as of June 30, 2016.
The lease with UAF was originally from October 1, 1998 through September 30, 2018, cancelable
with 30 days notice, with an option to extend for up to two additional five year periods. The State of
Alaska cancelled the lease for laboratory space effective September 1, 2012, but has continued leasing
the dorm space. The State has not given notice to cancel this section of the lease. In 2016 UAF paid
$32,708 to lease dorm space at the research facility.
The lease with the Kodiak Island School District is from March 2015 through June 30, 2018 with an
option to extend for one additional two year period. Annual rent is $37,260.
The lease with Kodiak Regional Aquaculture Association is from March 2014 through June 30, 2017.
Annual rent is $8,640.
(15) Employee Retirement System Plans
The Borough follows Governmental Accounting Standards Board (GASB) Codification P20, Accounting for
Pensions by State and Local Governmental Employees and GASB Codification P50, Accounting and
Financial Reporting by Employers for Post-employment Benefits Other than Pensions. GASB Codification
P20 and GASB Codification P50 establish uniform standards for the measurement, recognition and display
of pension and other post-employment benefits other than pensions (healthcare) expenditures/expense and
related liabilities, assets, note disclosure and applicable required supplementary information in the financial
reports of state and local governmental employers.
All full-time employees and certain permanent part-time employees of the Borough participate the State of
Alaska Public Employees’ Retirement System (PERS). In addition to the pension plan the system also
administers other post-employment benefit plans.
The system is governed by the Alaska Retirement Management Board. The benefit and contribution
provisions are established by State law and may be amended only by the State legislature.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
67
Summary of Significant Accounting Policies. The financial statements for PERS are prepared using the
accrual basis of accounting. Plan member contributions are recognized in the period in which the
contributions are due. The Borough’s contributions are recognized when due and a formal commitment to
provide the contributions has been made. Benefits and refunds are recognized when due and payable in
accordance with the terms of the plan. All plan investments are reported at fair value.
PERS acts as the common investment and administrative agencies for the following multiple-employer plans:
Plan Name Type of Plan
Defined Benefit Pension Plan (DB) Cost-sharing, Defined Benefit Pension
Defined Contribution Pension Plan (DC) Defined Contribution Pension
Defined Benefit Other Postemployment Benefits (DB)
Occupational Death and Disability Plan Cost-sharing, Defined Benefits OPEB
Alaska Retiree Healthcare Trust Plan Cost-sharing, Defined Benefits OPEB
Retiree Medical Plan Cost-sharing, Defined Benefits OPEB
Defined Contribution Other Postemployment
Benefits (DC)
Healthcare Reimbursement Arrangement Plan Defined Contribution OPEB
Other Postemployment Benefit Plans (OPBP)
Occupational Death and Disability Plan (DB)
The Occupational Death and Disability Plan provides death benefits for beneficiaries of plan participants and
long-term disability benefits to all active members within the System.
Alaska Retiree Healthcare Trust Plan (DB)
Beginning July 1, 2007, the Alaska Retiree Healthcare Trust Plan (ARHCT), a Healthcare Trust Fund of the
State, was established. The ARHCT is self-funded and provides major medical coverage to retirees of the
System. The System retains the risk of loss of allowable claims for eligible members. The ARHCT began
paying member healthcare claims on March 1, 2008. Prior to that, healthcare claims were paid for by the
Retiree Health Fund (RHF).
Healthcare Reimbursement Arrangement Plan (DC)
The Healthcare Reimbursement Arrangement Plan was established to allow medical expenses to be reimbursed
from individual savings accounts established for eligible participants.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
68
Alaska Public Employee Retirement System (PERS) – Defined Benefit Plan (DB)
Plan Description. The Borough participates in the Alaska Public Employees’ Retirement System (PERS), a
cost sharing multiple employer defined benefit pension plan. PERS provides retirement benefits, disability
and death benefits, and post-employment healthcare to plan members and beneficiaries. The Plan was
established and is administered by the State of Alaska, Department of Administration. The Public Employee’s
Retirement System issues a publicly available financial report that includes financial statements and required
supplementary information for PERS. This report may be obtained from the system at Pouch C, Juneau, Alaska
99811 or online at http://doa.alaska.gov/drb/pers.
Pension Benefits. All tier employee benefits vest with five years of credited service. There are three tiers of
employees based on entry date. Tier I employees enrolled prior to July 1, 1986 with five or more years of
credited service are entitled to annual pension benefits beginning at normal retirement age 55 or early
retirement age 50. For tier II and III employees enrolled after June 30, 1986, but before July 1, 2006, the
normal and early retirement ages are 60 and 55, respectively. All tier employees with 30 or more years of
credited service may retire at any age and receive a normal benefit.
The PERS defined benefit is closed to new hires enrolled on or after July 1, 2006. New hires after this date
participate in the PERS defined contribution plan (DC) described later in these notes.
Currently there are 159 employers participating in PERS, including the State of Alaska and 158 political
subdivisions and public organizations.
Retirement benefits are calculated by multiplying the average monthly compensation (AMC) times credited
PERS service times the percentage multiplier. The AMC is determined by averaging the salaries earned during
the five highest (three highest for Police/Fire members or members hired prior to July 1, 1996) consecutive
payroll years. Members must earn at least 115 days of credit in the last year worked to include it in the AMC
calculation. The PERS pays a minimum benefit of $25 per month for each year of service when the calculated
benefit is less.
The percentage multipliers for police/fire personnel are 2% for the first ten years of service and 2.5% for all
service over 10 years. The percentage multipliers for all other participants are 2% for the first ten years, 2.25%
for the next ten years, and 2.5% for all remaining service earned on or after July 1, 1986. All service before
that date is calculated at 2%.
Post-employment healthcare benefits are provided without cost to all members first enrolled before July 1,
1986. Members first enrolled after June 30, 1986, but before July 1, 2006 and who have not reached age 60
may elect to pay for major medical benefits.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
69
Post Retirement Pension Adjustments. Post retirement pension adjustments (PRPAs) are granted annually to
eligible benefit recipients when the consumer price index (CPI) increases during the preceding calendar year.
PRPAs are calculated by multiplying the recipient’s base benefit, including past PRPAs, times:
(a) 75% of the CPI increase in the preceding calendar year or 9%, whichever is less, if the recipient is at
least 65 or on PERS disability; or
(b) 50% of the CPI increase in the preceding calendar year or 6%, whichever is less, if the recipient is at
least 60, or has been receiving benefits for at least five years.
Ad hoc PRPAs, up to a maximum of 4%, may be granted to eligible recipients who first entered the PERS
before July 1, 1986, if the CPI increases and the financial condition of the fund will permit an increase. In a
year where an ad hoc PRPA is granted, eligible recipients will receive the higher of the two calculations.
Funding Policy. In April 2008 the Alaska Legislature passed legislation which statutorily capped the employer
contribution, established a state funded “on-behalf” contribution, and required that employer contributions be
calculated against all PERS eligible wages, including wages paid to participants of the PERS Tier IV defined
contribution plan (DC) described later in these footnotes. The state legislature capped the rate at 22%, with
the State contributing an on-behalf payment for the difference between the actuarial contribution and the cap.
Salary Floor. During the 25th legislation session, Senate Bill 125 passed, which established a June 30, 2008
salary floor under AS 39.35.255(a)(2). The salary floor is the total base salaries paid by an employer to active
employees of the system as of the fiscal year ending June 30, 2008. The statute requires the Division of
Retirement and Benefits (Division) to collect employer contributions at a minimum based on FY 2008 base
salaries.
Termination Costs. If the Borough decides to terminate coverage for a department, group, or other
classification of members, even if that termination results from the decision to divest of a particular Borough
function, all affected employees in that department, group or other classification of members become
immediately vested in the plan. The Borough must pay to have a termination study completed. The purpose
of the study is to calculate the Borough’s one-time termination costs. The costs represent the amount necessary
to fully fund the costs of plan members who become vested through this process and for other changes in
actuarial assumptions, such as, earlier than expected retirement, that arise from the act of termination of
coverage. The Borough must pay a lump sum within 60 days of termination or arrange a payment plan that is
acceptable to the PERS Administrator. For fiscal year 2016 the past service rate is 16.53%.
Employee Contribution Rate. The Borough PERS active members are required to contribute 6.75% (4.12%
pension costs and 2.63% OPEB) and non-teacher Borough employees are required to contribute 9.60% (5.86%
pension and 3.74% OPEB) of their annual covered salary.
Employer and Other Contribution Rates. There are several contribution rates associated with the pension and
healthcare contributions and related liabilities. These amounts are calculated on an annual basis.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
70
Employer Effective Rate: This is the actual employer pay-in rate. Under current legislation, this rate is
statutorily capped at 22% (13.25% pension costs and 8.75% OPEB) of eligible wages, subject to the salary
floor, and other termination costs as described above. This 22% rate is calculated on all PERS participating
wages, including those wages attributable to employees in the defined benefit plan.
ARM Board Adopted Rate: This is the rate formally adopted by the Alaska Retirement Management Board.
This rate is actuarially determined and used to calculate annual Plan funding requirements, without regard to
the statutory rate cap or the GASB accounting rate. This rate is 27.19% (16.59% pension and 10.60% OPEB).
Prior to July 1, 2015, there were no constraints or restrictions on the actuarial cost method or other assumptions
used in the ARM Board valuation. Effective July 1, 2015, the Legislature requires the ARM Board to adopt
employer contribution rates for past service liabilities using a level percent of pay method over a closed 25
year term which ends in 2039. This will result in lower ARM Board Rates in future years.
On-behalf Contribution Rate: This is the rate paid in by the State as an on-behalf payment as mandated under
current statute. Under state law, subject to annual appropriation, the state will contribute an on-behalf payment
into the plan in an amount equal to the difference between the ARM Board Rate and the Employer Effective
Rate. As a result, the On-behalf Contribution Rate for 2016 is 5.19% (3.63% pension and 1.56% OPEB). On-
behalf contribution amounts have been recognized in these financial statements as both revenue and
expenditures.
GASB Rate: This is the rate used to determine the long-term pension and healthcare liability for plan
accounting purposes. Certain actuarial methods and assumptions for this rate calculation are mandated by the
Governmental Accounting Standards Board (GASB). Medicare Part D subsidies are not reflected in this rate.
The rate uses an 8% pension discount rate and a 4.55% healthcare discount rate. The current rate is 96.52%
(37.79% pension and 58.73% OPEB).
Employer contributions for the years ended June 30, 2016, 2015 and 2014 are as follows:
Pensions
(DB)
Other Post-Employment
Benefits (DB)
Total
2016 $ 286,137 188,964 475,101
2015 297,177 224,247 521,424
2014 249,276 266,153 515,429
The defined benefit unfunded liability (DBUL) presented under the defined contribution plan includes
employer contributions of $91,228 (pension) and $60,249 (OPEB).
For the year ended June 30, 2016 the State of Alaska contributed $195,922 (70% pension cost, 30% OPEB)
on-behalf of the Borough, which has been recorded in the fund financial statement under the modified-accrual
basis of accounting. In the government-wide financial statements the on-behalf contribution has been adjusted
as of the measurement date June 30, 2015 to a total of $205,617, to represent the pension expense attributable
to the State under the full accrual basis of accounting.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
71
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions: At June 30, 2016, the Borough reported a liability that reflected a reduction for State
pension support provided to the Borough. The amount recognized by the Borough as its proportionate share
of net pension liability, the related State support, and the total portion of the net pension liability that was
associated with the Borough were as follows:
Borough’s proportionate share of the net pension liability $ 5,545,660
State’s proportionate share of the net pension liability 1,488,931
Total $ 7,034,591
$4,436,528 of the net pension liability is reported in the governmental activities and $1,109,132 is reported in
the business-type activities.
The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the
net pension liability was determined by an actuarial valuation as of that date. The Borough’s proportion of the
net pension liability was based on the present value of contributions for FY2017 through FY2039, as
determined by projections based on the June 30, 2014 valuation. At June 30, 2016, the Borough’s proportion
was 0.1143%, which is an increase of 0.033% from its proportion measured as of June 30, 2015.
Based on the measurement date of June 30, 2015, the Borough recognized pension expense of $1,320,060 for
the year ended June 30, 2016. At June 30, 2016, the Borough reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience $ 6,464 -
Changes of assumptions 324,260 -
Net difference between projected and actual
earnings on pension plan investments - (98,181)
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions 367,222 -
Borough contributions subsequent to the
measurement date 377,365 -
Total $ 1,075,311 (98,181)
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
72
$377,365 reported as deferred outflows of resources related to pensions resulting from Borough contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year
ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Year Ended
June 30,
2017 $ 571,995
2018 (159)
2019 (63,055)
2020 90,984
Total $ 599,765
For the year ended June 30, 2016, the Borough recognized $348,605, of amortization of the net deferred
outflows and inflows of resources.
Actuarial Assumptions: The total pension liability in the June 30, 2015 (latest available) actuarial valuation
was determined using the following actuarial assumptions, applied to all periods included in the measurement.
The actuarial assumptions were based upon the results of an actuarial experience study performed as of June
30, 2013.
Investment return / discount rate 8% per year (geometric), compounded annually, net
of expenses
Salary scale Inflation – 3.12% per year
Productivity – 0.50% per year
Payroll growth 3.62% per year (inflation + productivity)
Total inflation Total inflation as measured by the Consumer Price
Index for urban and clerical workers from
Anchorage is assumed to increase 3.12% annually.
Mortality (Pre-termination) Based upon 2010-2013 actual mortality experience.
60% of male rates and 65% of female rates of post
termination mortality rates. Deaths are assumed to
be occupational 70% of the time for peace officers,
and firefighters, 50% of the time for others.
Mortality (Post-termination) 96% of all rates of the RP-2000 combined mortality
table, 2000 base year projected to 2018.
Total turnover Based upon the 2010-2013 actual withdrawal
experience.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
73
Disability Incidence rates based on 2010-2013 actual
experience. Post-disability mortality in accordance
with the RP-2000 Disabled Retiree Mortality Table.
Disabilities are assumed to be occupational 70% of
the time for peace officers / firefighters, 50% of the
time for others.
Retirement Retirement rates based upon the 2010-2013 actual
experience. Deferred vested members are assumed
to retire at their earliest unreduced retirement date
for others. For peace officers/firefighters, Tier 1
deferred vested members are assumed to retire at
age 55 and Tiers 2 and 3 deferred vested members
are assumed to retire at age 60.
Marriage and age difference Wives are assumed to be three years younger than
husbands. For others, 75% of male members and
70% of female members are assumed to be married.
For peace officers/firefighters, 85% of male
members and 60% female members are assumed to
be married.
The long-term expected rate of return on pension plan investments was determined using the building-block
method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension
plan investment expense and inflation) are developed for each major asset class. These ranges are combined
to produce the long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and adding expected inflation. The best estimates of arithmetic real rates of
return for each major asset class are summarized below:
Long-Term Expected
Asset Class Real Rate of Return
Domestic Equity 6.77%
International Equity 7.50%
Private Equity 10.86%
Fixed Income 2.05%
Real Estate 3.63%
Absolute Return 4.80%
Discount Rate: The discount rate used to measure the total pension liability was 8.00%. The projection of the
cash flows used to determine the discount rate assumed that Employer and State contributions will continue to
follow the current funding policy, which meets State statutes. Based on those assumptions, the pension plan’s
fiduciary net pension was projected to be available to make all projected future benefit payments of current
plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to
all periods of projected benefit payments to determine the total pension liability.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
74
Sensitivity of the Net Pension Liability to Changes in the Discount Rate: The following presents the net pension
liability of the plan calculated using the discount rate of 8%, as well as what the Plans’ net pension liability
would be if it were calculated using a discount rate that is 1-percentage-point lower (7%) or 1-percentage-point
higher (9%) than the current rate:
1% Decrease Current Rate 1% Increase
(7%) (8%) (9%)
Net pension liability $ 7,372,485 5,545,660 4,007,662
Alaska Public Employee Retirement System (PERS) – Defined Contribution Plan (DC)
Plan Description and Funding Requirements. Boroughs and Public Employers in the State of Alaska have a
defined contribution retirement plan (PERS Tier IV) for new hires first enrolled on or after July 1, 2006. This
Plan is administered by the State of Alaska, Department of Administration in conjunction with the defined
benefit plan noted above. Plan members make mandatory contributions of 8% of gross eligible compensation.
This amount goes directly to the individual’s account. State statutes require the employer to contribute 5% of
employees’ eligible compensation. Additionally, employers are required to contribute to OPEB (DB): 1.68%
for the retiree medical plan (DB), 0.22% for occupational and death and disability benefits (DB) and 3% of
employers’ average annual employee compensation to the health reimbursement arrangement (HRA DC). The
effective employer contribution is 22%. Plan members are 100% vested with their contributions.
Members become vested in employers’ contributions as follows:
2 years of service – 25%
3 years of service – 50%
4 years of service – 75%
5 years of service – 100%
Plan provisions and contribution requirements and amendments are established by the Alaska Retirement
Management Board (ARMB). Total contributions for the year ended June 30, 2016 are as follows:
Employer Employee
Defined contribution (DC) $ 61,901 99,041
Other post-employment benefits (DB):
Retiree medical plan 20,799 -
Occupational death and disability benefits 3,134 -
Other post-employment benefits (DC) –
Health reimbursement agreement (HRA) 35,002 -
Defined benefit unfunded liability (DBUL) 151,477 -
$ 272,313 99,041
Actual contributions were equal to the annual required contributions. The Defined Benefit Unfunded Liability
(DBUL) is computed as the difference between the statutory employer contribution rate less employer
contributions for the defined contribution, major medical, occupational death and disability and the health
reimbursement arrangement. The DBUL calculation is allocated 60% pension and 40% OPEB.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
75
Employer contributions for the years ended June 30, 2016, 2015 and 2014 are as follows:
Contributions / Other Post-Employment
Pensions Benefits Total
2016 $ 153,129 119,184 272,313
2015 125,778 105,385 231,163
2014 104,322 80,077 184,399
Deferred Compensation Plan
The Kodiak Island Borough has two deferred compensation plans created and amended in accordance with
Internal Revenue Code Section 457. The plans are available to all regular Borough employees. The deferred
compensation is not available to employees until termination, retirement, death, or unforeseeable emergency.
All amounts deferred under these plans are held in trusts that were established for the exclusive benefit of
plan participants. Amounts contributed to the plans by participants during the year ended June 30, 2016,
were $182,961.
The first plan is managed by the International City Managers Association Retirement Corporation. $59,216
was contributed to this plan during the year ended June 30, 2016. The Borough believes that the plan does
not meet the criteria for inclusion as a fiduciary fund.
The second plan is managed by the MassMutual Financial Group. $123,745 was contributed to this plan
during the year ended June 30, 2016. The Borough believes that the plan does not meet the criteria for
inclusion as a fiduciary fund.
(16) Prior Period Adjustment
During 2016 Borough management determined that the accounts payable module contained balances
imported during an accounting software conversion that were unsupportable and were written off as of June
30, 2015, resulting in a prior period adjustment in the amount of $259,324 in the General Fund and the
governmental activities section of the Statement of Activities.
Governmental Activities:
Opening net position, as previously stated $ 126,089,199
Prior period adjustment 259,324
Opening net position, as restated $ 126,348,523
(17) Contingencies
(a) General
The Borough, in the normal course of its activities, is involved in various claims and pending litigation.
After consultation with legal counsel, management estimates that these matters will be resolved
without material adverse effect on the Borough’s future financial position or results of operations.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
76
(b) Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment by the
grantor agencies. Any disallowed claims, including amounts already collected, would become a
liability of the General or other applicable funds. In management’s opinion, disallowances, if any, will
not be material.
(18) Subsequent Events
Management have evaluated subsequent events through December 29, 2016, the date which the financial
statements were available for issue.
(19) Construction Commitments
The Borough has outstanding commitments for construction at year end of $2,616,054.
(20) Subsequent Accounting Pronouncements
The Governmental Accounting Standards Board has passed several new accounting standards with
upcoming implementation dates covering several topics as follows:
GASB 74 – Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans.
Effective for fiscal years beginning after June 15, 2016.
GASB 75 – Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions. Effective for fiscal years beginning after June 15, 2017.
GASB 77 – Tax Abatement Disclosures. Effective for fiscal years beginning after December
15, 2015.
GASB 78 – Pension Provided through Certain Multiple – Employer Defined Benefit Pension
Plans. Effective for fiscal years beginning after December 15, 2015.
GASB 80 – Blending Requirements for Certain Component Units – an Amendment of GASB
Statement No. 14. Effective for fiscal years beginning after June 15, 2016.
GASB 81 – Irrevocable Split –Interest Agreements. Effective for fiscal years beginning after
December 15, 2016.
GASB 82 – Pension Issues – an Amendment of GASB Statement No. 67, No. 68, and No. 73
Statements, 77, 78, and 81 are not expected to have any significant impact on the financial statements
of the Borough.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
77
GASB Statements No. 74 and 75, the objective of these Statements is to improve the usefulness of
information about postemployment benefits other than pensions (other postemployment benefits or
OPEB) included in the general purpose external financial reports of state and local governmental
OPEB plans for making decisions and assessing accountability. For defined benefit OPEB plans that
are administered through trusts that meet the specified criteria, this Statement requires two financial
statements—a statement of fiduciary net position and a statement of changes in fiduciary net position.
Note disclosures and required supplemental information are addressed in these statements. GASB
Statement 75 establishes standards for measuring liabilities, deferred inflow and outflows of
resources, and expenses/expenditures.
GASB Statement No. 80 – This statement amends the blending requirements for the financial
statements presentation of component units of all State and local governments. The additional
criterion requires blending of a component unit incorporated as a not-for-profit corporation when the
primary government is the sole corporate member.
GASB Statement No. 82 – The objective of this statement is to address certain pension issues. This
statement defines covered payroll in required supplementary information as “the payroll on which
contributions to a pension plan are based, and the ratios that use that measure”. This statement also
addresses classification of employer paid member contributions as being member contributions.
Finally this statement addresses selection of assumptions and clarifies that a deviation is not
considered in conformity with the requirements of GASB Statements No. 67, No. 68, or No. 73.
REQUIRED SUPPLEMENTARY
INFORMATION
Budgetary Comparison Schedule
General Fund
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
Variance with
Final Budget –
Budget Positive 2015
Original Final Actual (Negative)Actual
Revenues:
Property taxes and assessments:
Real $108,000 108,000 20,174 (87,826)24,977
Personal 12,000 12,000 11,865 (135)6,939
Boat 25,000 25,000 22,451 (2,549)22,985
Aircraft 25,000 25,000 22,200 (2,800)23,600
Penalty and interest 175,000 175,000 145,067 (29,933)156,528
Total property taxes and assessments 345,000 345,000 221,757 (123,243) 235,029
Severance taxes:
Fish 1,750,000 1,750,000 1,395,610 (354,390)1,550,706
Mining 25,000 25,000 3,063 (21,937)49,440
Logging 75,000 75,000 92,416 17,416 103,111
Total severance taxes 1,850,000 1,850,000 1,491,089 (358,911) 1,703,257
Intergovernmental:
State sources:
State revenue sharing 667,277 677,843 692,624 14,781 724,731
Fisheries business tax 1,550,000 1,550,000 1,382,320 (167,680)1,561,675
Fisheries resource landing tax 50,000 50,000 20,370 (29,630)92,730
Telephone and electric tax 20,000 20,000 16,987 (3,013)17,206
On-behalf PERS payment 208,000 208,000 146,085 (61,915)1,173,108
Liquor license — — 53 53 322
Total state sources 2,495,277 2,505,843 2,258,439 (247,404) 3,569,772
Federal sources:
Payments in lieu of taxes 1,334,000 1,334,000 1,670,540 336,540 1,401,087
Fish and Wildlife revenue sharing 152,400 152,400 203,084 50,684 192,376
Schools and Roads - Grants to States — — — — 65
Total federal sources 1,486,400 1,486,400 1,873,624 387,224 1,593,528
Total intergovernmental
revenue 3,981,677 3,992,243 4,132,063 139,820 5,163,300
Charges for services -
Sale of copies and maps — 4,000 1,532 (2,468)2,647
Licenses, permits and fees:
Building and trailer permits 40,000 40,000 38,177 (1,823)52,355
Subdivision and zoning fees 17,500 17,500 17,285 (215)21,135
Other permits 8,500 8,500 10,689 2,189 13,426
Total licenses, permits and fees 66,000 66,000 66,151 151 86,916
Investment income 30,000 30,000 54,211 24,211 (18,330)
Other 20,500 16,500 35,941 19,441 16,821
Total revenues 6,293,177 6,303,743 6,002,744 (300,999) 7,189,640
(continued)
2016
KODIAK ISLAND BOROUGH
78
Budgetary Comparison Schedule
General Fund, continued
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
Variance with
Final Budget –
Budget Positive 2015
Original Final Actual (Negative)Actual
Expenditures:
General government:
General and administration $222,100 222,100 175,699 46,401 187,199
Borough assembly 195,554 195,554 149,658 45,896 159,142
Borough manager 850,304 850,304 605,245 245,059 697,995
Borough clerk 570,376 570,376 556,743 13,633 682,444
Borough attorney 184,000 184,000 129,864 54,136 203,520
Finance department 1,017,467 1,017,467 943,633 73,834 1,087,354
Management information systems 1,047,744 954,744 930,200 24,544 1,164,224
Assessing department 706,463 706,463 677,938 28,525 840,703
Engineering/facilities department 163,573 163,573 230,699 (67,126)331,478
Total general government 4,957,581 4,864,581 4,399,679 464,902 5,354,059
Public safety - animal control 109,415 109,415 109,415 — 109,415
Community and economic development:
Community development department 715,262 808,262 777,637 30,625 919,303
Building official 158,650 158,650 161,221 (2,571)125,412
Economic development 117,100 117,100 45,781 71,319 33,100
Total community and economic
development 991,012 1,084,012 984,639 99,373 1,077,815
Emergency preparedness 47,000 47,000 30,849 16,151 29,128
Health and social services 390,000 390,000 389,000 1,000 406,093
Education, culture, and recreation 20,200 20,200 23,949 (3,749)24,856
Parks and recreation 153,000 153,000 87,456 65,544 161,596
Kodiak College and city libraries 195,000 195,000 195,000 — 195,000
Total expenditures 6,863,208 6,863,208 6,219,987 643,221 7,357,962
Excess of revenues
over expenditures (570,031)(559,465)(217,243)342,222 (168,322)
Other financing sources (uses):
Insurance proceeds — — 403,958 403,958 —
Transfers out (351,600)(362,166)(356,166)6,000 (167,740)
Net other financing sources (uses)(351,600)(362,166)47,792 409,958 (167,740)
Change in fund balance $(921,631)(921,631)(169,451)752,180 (336,062)
Fund balance, at beginning of year,
as previously stated 3,195,908 3,531,970
Prior period adjustment 259,324 —
Fund balance, at beginning of year, as restated 3,455,232 3,531,970
Fund balance, at end of the year $ 3,285,781 3,195,908
See accompanying notes to required supplementary information.
2016
KODIAK ISLAND BOROUGH
79
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Special Revenue Fund – Education Support
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
Variance with
Final Budget –
Budget Positive 2015
Original Final Actual (Negative)Actual
Revenues:
Property taxes and assessments:
Real $9,126,000 9,126,000 9,103,596 (22,404) 9,707,963
Personal 1,014,000 1,014,000 1,002,581 (11,419) 1,013,965
Intergovernmental - state sources
Motor vehicle tax 280,000 280,000 253,112 (26,888) 262,175
Total revenues 10,420,000 10,420,000 10,359,289 (60,711) 10,984,103
Expenditures:
Primary and secondary education 10,905,600 10,905,600 10,905,650 (50) 10,905,714
Excess (deficiency) of revenues
over (under) expenditures (485,600) (485,600) (546,361) (60,761) 78,389
Other financing sources:
Transfers in 485,600 485,600 485,600 — —
Change in fund balance $— — (60,761) (60,761) 78,389
Fund balance (deficit), at beginning of year 46,715 (31,674)
Fund balance (deficit), at end of year $ (14,046) 46,715
See accompanying notes to required supplementary information.
2016
80
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Special Revenue Fund – Facilities
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
Variance with
Final Budget –
Budget Positive 2015
Original Final Actual (Negative) Actual
Revenues -
Investment income $700,000 700,000 515,662 (184,338) 468,769
Expenditures 301,546 301,546 — 301,546 —
Excess of revenues over
expenditures 398,454 398,454 515,662 117,208 468,769
Other financing sources (uses):
Transfers out (398,454) (398,454) (398,454) — (590,000)
Change in fund balance $— — 117,208 117,208 (121,231)
Fund balance, at beginning of year 39,427,713 39,548,944
Fund balance, at end of year $ 39,544,921 39,427,713
See accompanying notes to required supplementary information.
2016
81
KODIAK ISLAND BOROUGH
Notes to Required Supplementary Information – Budgetary Comparison Schedules
June 30, 2016
82
The Borough follows these procedures in establishing the budgetary data reflected in the fund financial statements:
The Borough Manager must submit to the Borough Assembly by April 30 a proposed operating budget for
the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and
the means of financing them.
Public hearings are conducted by the Borough Assembly to obtain citizen comments.
By June 10, the budget is legally enacted through passage of an ordinance by Borough Assembly action. If
the Borough Assembly fails to pass an ordinance, the budget submitted by the Borough Manager becomes
the adopted budget.
Amendments to the budget can occur anytime during the fiscal year through the Borough Assembly or
administrative action. Generally, the following actions are required at the level of the particular change:
– All new appropriations are authorized by an appropriation ordinance that amends the annual budget
ordinance.
– A resolution of the Borough Assembly is required to move (appropriate) amounts between
departments and projects.
– The administration is authorized and directed by the Borough Assembly to effect the necessary line
item changes within the limits established by Items (1) and (2) above by project or department to
properly monitor, account, and report receipts and expenditures.
Expenditures may not legally exceed appropriations at the following levels: Capital Projects Funds – project
level, all other funds – department level.
All funds, except Capital Projects Funds, are budgeted on an annual basis encompassing a fiscal year.
Budgets of Capital Projects Funds generally encompass the period from start-up to project completion, which
is generally greater than one year.
Appropriations lapse at year end to the extent that they have not been expended for all funds, except Capital
Projects Funds, which lapse at project completion.
Budgets adopted by the Borough Assembly are in accordance with accounting principles generally accepted
in the United States of America.
The Borough published a separate 2016 budget document. That document may be obtained from the Kodiak
Island Borough, Finance Director, 710 Mill Bay Road, Kodiak, Alaska 99615.
2016 2015
Borough's proportion of the net pension
liability 0.1143% 0.0813%
Borough's proportionate share of net
pension liability $ 5,545,660 3,790,363
State's proportionate share of the net
pension liability associated with
the Borough 1,488,931 3,187,850
Total $ 7,034,591 6,978,213
Borough's covered employee payroll $ 2,954,003 2,929,492
Borough's proportionate share of the net
pension liability as a percentage
of its covered-employee payroll 188% 129%
Plan fiduciary net position as a
percentage of the total pension
liability 63.96% 62.37%
Notes to schedule
1. Information presented for 2016 is based upon Plan measurement date June 30, 2015.
2. This schedule is intended to present 10 years of information. Additional years will be included
as it becomes available.
Kodiak Island Borough
Schedule of Borough's Proportionate Share of the Net Pension Liability
Public Employees' Retirement System
June 30, 2016 and 2015
83
2016 2015
Contractually required contribution $ 377,365 370,432
Contributions in relation to the contractually required contribution (377,365) (370,432)
Contribution deficiency - -
Borough's covered-employee payroll $ 2,848,038 2,954,003
Contributions as a percentage of covered employee payroll 13.25% 12.54%
Notes to schedule
1. Valuation date: June 30, 2014
2. Actuarially determined contribution rates are calculated as of June 30th, two years prior to the fiscal year in which
contributions are reported.
Methods and assumptions used to determine contribution rates:
3. Actuarial cost method: Entry Age Normal.
4. Amortization method: Level dollar, closed.
5. Amortization period: 25 years, layered.
6.Equivalent single amortization period:17 years.
7. Asset valuation method:Actuarial value that smooths investment gains and losses over 5 years,
constrained to a range of 80% - 120% of fair value.
8. Inflation: 3.12% per annum.
9. Salary increases: Ranges from 6.36% to 4.12% based on service for Peace
Officer/Firefighter. Ranges from 9.60% to 3.62% based on age and service
for All Others.
10. Investment rate of return:
8%, net of pension plan investment expenses. This is based on an average
inflation rate of 3.12% and a real rate of return of 4.88%.
11. Retirement age: An age-related assumption is used for participants not yet receiving payments.
12. Mortality: 1994 Group Annuity Mortality (GAM) Table, sex distinct, 1994 Base Year
without margin projected to 2013 using projection Scale AA, 80% of the
male table for males and 60% of the female table for females for pre-
termination mortality for Peace Officer/Firefighter, 1994 Base Year without
margin projected to 2013 using Projection Scale AA, 75% of the male table
for males and 55% of the female table for females for pre-termination
mortality for All Others and the 1994 GAM Table, sex-distinct, 1994 Base
Year without margin projected to 2013 using Projection Scale AA for males
and with a 1-year set-forward for females for post-termination mortality.
13. This schedule is intended to present 10 years of information. Additional years will be included as it becomes available.
Kodiak Island Borough
Schedule of Borough's Contributions
Public Employees' Retirement System
June 30, 2016 and 2015
84
ADDITIONAL SUPPLEMENTARY INFORMATION
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Debt Service Fund - Education and Health
Year ended June 30, 2016
(With summarized financial information for the year ended June 30, 2015)
Variance with
Original Final Budget –
and Final Positive 2015
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $2,040,000 2,033,427 (6,573) 1,158,728
Intergovernmental:
State sources 4,528,506 4,304,877 (223,629) 3,885,080
Investment income (loss)2,000 (149) (2,149) 509
Total revenues 6,570,506 6,338,155 (232,351) 5,044,317
Expenditures:
General government 93,729 9,125 84,604 6,312
Debt service:
Principal 3,201,585 3,201,002 583 2,646,040
Interest 3,418,457 3,194,612 223,845 3,120,449
Debt issuance — 124,372 (124,372) —
Total expenditures 6,713,771 6,529,111 184,660 5,772,801
Excess (deficiency) of revenues
over (under) expenditures (143,265) (190,956) (47,691) (728,484)
Other financing sources (uses):
Premium on bonds issued 62,818 141,115 (78,297) —
Transfers in 150,000 150,000 — 250,000
Transfers out (69,553) (69,553) — —
Net other financing sources (uses) 143,265 221,562 (78,297) 250,000
Change in fund balance $— 30,606 (125,988) (478,484)
Fund balance, at beginning of year 187,227 665,711
Fund balance, at end of year $ 217,833 187,227
2016
85
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue
See Special Revenue section of this report.
Capital Projects
See Capital Projects section of this report.
NONMAJOR SPECIAL REVENUE FUNDS
The Fire Protection Area No. 1 Fund accounts for the activities related to fire suppression and fire prevention
services to the citizens of the service area.
The Womens Bay Fire Department Fund accounts for the activities related to fire suppression and fire prevention
services to the citizens of the service area.
The Kodiak Airport Fire District Fund accounts for the activities related to fire suppression and fire prevention
services to the citizens of the service area.
The Monashka Bay Road Service Area Fund accounts for the activities related to road services within the service
area.
The Service Area No. 1 Fund accounts for the activities related to maintenance service to roads within the district,
including snow removal, ditching and grading.
The Womens Bay Road Service Area Fund accounts for the activities related to maintenance service to roads
within the service area, including snow and ice removal, ditching and culvert work.
The Bay View Road Service Area Fund accounts for the activities related to road services within the service area.
The Service Area No. 2 Fund accounts for the activities related to water and sewer services in the service area.
This fund is in the design stage at present.
The Local Emergency Planning Committee (L.E.P.C.) Fund accounts for State of Alaska grants provided for
regional emergency preparation, response, and mitigation planning.
The Land Sales Fund accounts for the disposal of Borough-owned lands. The proceeds of land disposals are
generally used for the management of Borough lands and the repairs and maintenance of Borough school buildings.
The Buildings and Grounds Fund accounts for the operations and maintenance of certain buildings and grounds
owned by the Borough which are jointly shared with the City of Kodiak, the Kodiak Island Borough School
District, and certain nonprofit community organizations.
The Woodland Acres Street Light Service Area Fund accounts for activities related to the provision of street
lighting within the service area.
The Trinity Islands Street Light Service Area Fund accounts for activities related to the provision of street
lighting within the service area.
The Tourism Development Fund accounts for the collection of the Borough Transient Accommodation Tax (Bed
Tax) and its subsequent transfer to the Kodiak Island Convention and Visitor Bureau.
The Mission Lake Tide Gate Fund accounts for activities related to maintaining the tide gate for the residents of
the service area.
The Fern Fuller Trust Fund accounts for the distribution of funds to the beneficiaries of the trust.
The Trinity Islands Paving Fund accounts for activities related to the provision of paving within the service area.
The Oil Spill Disaster Fund accounts for activities related to the grounding of the drilling vessel Kulluk.
KODIAK ISLAND BOROUGH
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2016
(With summarized financial information at June 30, 2015)
Special Capital
Revenue Project
Assets Funds Funds 2016 2015
Equity in central treasury $ 3,626,787 10,890,530 14,517,317 5,184,299
Receivables:
State of Alaska 10,199 73,438 83,637 1,626,996
Federal government — 651,839 651,839 319,459
Property taxes 26,274 — 26,274 20,493
Land sales contracts, due within one year 23,628 — 23,628 25,464
Other 30,331 3,153 33,484 34,164
Prepaid items 37 — 37 —
Land sale contracts, due after one year 181,191 — 181,191 262,100
Total assets $ 3,898,447 11,618,960 15,517,407 7,472,975
Liabilities:
Accounts payable $155,862 548,192 704,054 214,345
Customer deposits 27,450 — 27,450 1,100
Due to other funds 28,537 381,374 409,911 756,017
Unearned revenues — 30,930 30,930 94,729
Total liabilities 211,849 960,496 1,172,345 1,066,191
Deferred inflows of resources -
Unavailable revenues 204,819 — 204,819 287,564
Total liabilities and deferred
inflows of resources 416,668 960,496 1,377,164 1,353,755
Fund balances:
Nonspendable 181,191 — 181,191 262,100
Committed 3,318,926 — 3,318,926 2,969,906
Assigned — 10,658,464 10,658,464 3,149,193
Unassigned (18,338) — (18,338) (261,979)
Total fund balances 3,481,779 10,658,464 14,140,243 6,119,220
Total $ 3,898,447 11,618,960 15,517,407 7,472,975
Totals
Resources and Fund Balances
Liabilities, Deferred Inflows of
86
KODIAK ISLAND BOROUGH
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
Year ended June 30, 2016
(With summarized financial information for year ended June 30, 2015)
Special Capital
Revenue Project
Funds Funds 2016 2015
Revenues:
Property taxes and assessments $1,351,109 — 1,351,109 1,343,783
Transient accommodations tax 95,466 — 95,466 104,074
Intergovernmental:
State sources 55,013 1,999,361 2,054,374 2,210,415
Federal sources — 1,216,909 1,216,909 500,459
Charges for services 696,492 — 696,492 550,006
Licenses, permits and fees 1,250 — 1,250 28,600
Investment income 26,197 47,718 73,915 29,493
Rental 8,800 — 8,800 20,550
Other 9,172 309 9,481 926
Total revenues 2,243,499 3,264,297 5,507,796 4,788,306
Expenditures:
Current:
General government 774,915 — 774,915 846,606
Public safety 463,424 — 463,424 414,754
Community and economic development 85,000 — 85,000 75,000
Service district maintenance 626,289 — 626,289 534,376
Capital outlay:
Schools — 428,246 428,246 310,999
General — 3,319,610 3,319,610 2,629,896
Debt service - interest — — — 1,128
Total expenditures 1,949,628 3,747,856 5,697,484 4,812,759
Excess (deficiency) of revenues
over (under) expenditures 293,871 (483,559) (189,688) (24,453)
Other financing sources (uses):
Land sales proceeds 110,428 — 110,428 329,344
Bond issuance — 7,010,000 7,010,000 —
Premium on bonds issued — 990,000 990,000 —
Transfers in 76,918 601,525 678,443 70,691
Transfers out (198,580) (379,580) (578,160) (66,500)
Net other financing sources (uses) (11,234) 8,221,945 8,210,711 333,535
Change in fund balances 282,637 7,738,386 8,021,023 309,082
Fund balances, at beginning of year 3,199,142 2,920,078 6,119,220 5,810,138
Fund balances, at end of year $ 3,481,779 10,658,464 14,140,243 6,119,220
Totals
87
Fire and Road Service Areas Fire and Road Service Areas
Fire Road
Fire Womens Kodiak Monashka Womens
Protection Bay Fire Airport Fire Bay Road Service Bay Road Bay View Road Service Area
Area No. 1 Department District Service Area Area No. 1 Service Area Service Area No. 2 L.E.P.C.Land Sales
Equity in central treasury $808,490 536,675 36,738 97,443 426,087 216,570 15,719 5,864 — 421,050
Receivables:
State of Alaska — — — — — — — — 10,199 —
Property taxes 12,229 1,062 474 511 8,639 2,123 1,236 — — —
Land sales contracts, due within one year — — — — — — — — — 23,628
Other 15 — — — — — — — — 6,044
Prepaid items — — — — — — — — — 37
Land sale contracts, due after one year — — — — — — — — — 181,191
Total $820,734 537,737 37,212 97,954 434,726 218,693 16,955 5,864 10,199 631,950
Liabilities:
Accounts payable 22,032 1,573 — 7,169 25,654 43,299 2,625 — — 19,231
Customer deposits — 1,450 — — — — — — — 26,000
Due to other funds — — — — — — — — 28,537 —
Unearned revenues — — — — — — — — — —
Total liabilities 22,032 3,023 — 7,169 25,654 43,299 2,625 — 28,537 45,231
Deferred inflows of resources:
Unavailable revenues — — — — — — — — — 204,819
Total liabilities and deferred
inflows of resources 22,032 3,023 — 7,169 25,654 43,299 2,625 — 28,537 250,050
Fund balances (deficit):
Nonspendable — — — — — — — — — 181,191
Committed 798,702 534,714 37,212 90,785 409,072 175,394 14,330 5,864 — 200,709
Unassigned — — — — — — — — (18,338) —
Total fund balances (deficit) 798,702 534,714 37,212 90,785 409,072 175,394 14,330 5,864 (18,338) 381,900
Total $820,734 537,737 37,212 97,954 434,726 218,693 16,955 5,864 10,199 631,950
Road
KODIAK ISLAND BOROUGH
Combining Balance Sheet
Nonmajor Special Revenue Funds
(With summarized financial information at June 30, 2015)
June 30, 2016
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficit)
State Grant
Program
Assets
88
Woodland
Buildings Acres Street Trinity Islands
and Light Service Street Light Tourism Mission Lake Fern Fuller Totals
Assets Grounds Area Service Area Development Tide Gate Trust 2016 2015
Equity in central treasury $625,294 30,407 27,141 196,923 48,379 134,007 3,626,787 3,267,960
Receivables:
State of Alaska — — — — — — 10,199 8,023
Property taxes — — — — — — 26,274 20,493
Land sales contracts, due within one year — — — — — — 23,628 25,464
Other — — — 24,272 — — 30,331 26,546
Prepaid items — — — — — — 37 —
Land sale contracts, due after one year — — — — — — 181,191 262,100
Total $625,294 30,407 27,141 221,195 48,379 134,007 3,898,447 3,610,586
Liabilities:
Accounts payable 32,079 404 151 1,645 — — 155,862 80,893
Customer deposits — — — — — — 27,450 1,100
Due to other funds — — — — — — 28,537 40,887
Unearned revenues — — — — — — — 1,000
Total liabilities 32,079 404 151 1,645 — — 211,849 123,880
Deferred inflows of resources:
Unavailable revenues — — — — — — 204,819 287,564
Total liabilities and deferred
inflows of resources 32,079 404 151 1,645 — — 416,668 411,444
Fund balances (deficit):
Nonspendable — — — — — — 181,191 262,100
Committed 593,215 30,003 26,990 219,550 48,379 134,007 3,318,926 2,969,906
Unassigned — — — — — — (18,338) (32,864)
Total fund balances (deficit) 593,215 30,003 26,990 219,550 48,379 134,007 3,481,779 3,199,142
Total $625,294 30,407 27,141 221,195 48,379 134,007 3,898,447 3,610,586
June 30, 2016
(With summarized financial information at June 30, 2015)
Street Lighting Districts
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Combining Balance Sheet, (continued)
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficit)
89
State Grant
Fire Road Program
Fire Womens Kodiak Monashka Womens
Protection Bay Fire Airport Fire Bay Road Service Bay Road Bay View Road Service
Area No. 1 Department District Service Area Area No. 1 Service Area Service Area Area No. 2 L.E.P.C.
Revenues:
Property taxes and assessments $ 572,733 99,338 14,716 59,665 386,095 191,715 13,605 — —
Transient accommodations tax — — — — — — — — —
Intergovernmental -
State sources 2,705 — — — — — — — 14,343
Charges for services — 16,610 — — — — — — —
Licenses, permits and fees — — — — — — — — —
Investment income 5,601 4,095 233 576 3,448 1,226 91 41 —
Rental — 8,800 — — — — — — —
Other 2,831 5,780 — — — — — — —
Total revenues 583,870 134,623 14,949 60,241 389,543 192,941 13,696 41 14,343
Expenditures:
Current:
General government — — — — — — — — —
Public safety 360,493 73,741 14,330 — — — — — 14,860
Community and economic
development — — — — — — — — —
Service district maintenance — — — 26,413 382,190 208,296 8,167 — —
Debt service - interest — — — — — — — — —
Total expenditures 360,493 73,741 14,330 26,413 382,190 208,296 8,167 — 14,860
Excess (deficiency) of revenues
over (under) expenditures 223,377 60,882 619 33,828 7,353 (15,355) 5,529 41 (517)
Other financing sources (uses):
Land sale proceeds — — — — — — — — —
Transfers in — — — — — 27,600 — — —
Transfers out — (100,000) — — (4,480) — — — —
Net other financing sources (uses) — (100,000) — — (4,480) 27,600 — — —
Change in fund balances 223,377 (39,118) 619 33,828 2,873 12,245 5,529 41 (517)
Fund balances (deficits), at beginning of year 575,325 573,832 36,593 56,957 406,199 163,149 8,801 5,823 (17,821)
Fund balances (deficit), at end of year $798,702 534,714 37,212 90,785 409,072 175,394 14,330 5,864 (18,338)
(continued)
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances (Deficits)
Year ended June 30, 2016
(With summarized financial information for the year ended June 30, 2015)
Fire and Road Service Areas
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Road
Fire and Road Service Areas
90
Woodland Acres Trinity Islands
Buildings and Street Light Street Light Tourism Mission Lake Fern Fuller Trinity Islands Oil Spill Totals
Land Sales Grounds Service Area Service Area Development Tide Gate Trust Paving Disaster 2016 2015
Revenues:
Property taxes and assessments $ — — 4,932 2,334 — 5,976 — — — 1,351,109 1,343,783
Transient accommodations tax — — — — 95,466 — — — — 95,466 104,074
Intergovernmental - —
State sources 3,920 3,790 — — 30,255 — — — — 55,013 113,238
Charges for services 3,619 676,263 — — — — — — — 696,492 550,006
Licenses, permits and fees 1,250 — — — — — — — — 1,250 28,600
Investment income 3,427 4,466 214 190 1,417 332 840 — — 26,197 15,275
Rental — — — — — — — — — 8,800 20,550
Other 440 121 — — — — — — — 9,172 926
Total revenues 12,656 684,640 5,146 2,524 127,138 6,308 840 — — 2,243,499 2,176,452
Expenditures:
Current:
General government 278,625 489,664 4,828 1,798 — — — — — 774,915 846,606
Public safety — — — — — — — — — 463,424 414,754
Community and economic
development — — — — 85,000 — — — — 85,000 75,000
Service district maintenance — — — — — 1,220 — 3 — 626,289 534,376
Debt service - interest — — — — — — — — — — 1,128
Total expenditures 278,625 489,664 4,828 1,798 85,000 1,220 — 3 — 1,949,628 1,871,864
Excess (deficiency) of revenues
over (under) expenditures (265,969) 194,976 318 726 42,138 5,088 840 (3) — 293,871 304,588
Other financing sources (uses):
Land sales proceeds 110,428 — — — — — — — — 110,428 329,344
Transfers in — 34,272 — — — — — 4,480 10,566 76,918 70,691
Transfers out (27,600) — — — — — (66,500) — — (198,580) (66,500)
Net other financing sources (uses) 82,828 34,272 — — — — (66,500) 4,480 10,566 (11,234) 333,535
Change in fund balances (183,141) 229,248 318 726 42,138 5,088 (65,660) 4,477 10,566 282,637 638,123
Fund balances (deficits), at beginning of year 565,041 363,967 29,685 26,264 177,412 43,291 199,667 (4,477) (10,566) 3,199,142 2,561,019
Fund balances (deficit), at end of year $381,900 593,215 30,003 26,990 219,550 48,379 134,007 — — 3,481,779 3,199,142
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Street Lighting Districts
Combining Statement of Revenues, Expenditures,
Year ended June 30, 2016
and Changes in Fund Balances (Deficits), (continued)
(With summarized financial information for the year ended June 30, 2015)
91
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Fire Protection Area No. 1
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 557,500 572,733 15,233 558,021
Intergovernmental -
State sources - PERS on behalf payment — 2,705 2,705 26,205
Investment income — 5,601 5,601 2,425
Rental — — — 7,350
Other 8,700 2,831 (5,869) 380
Total revenues 566,200 583,870 17,670 594,381
Expenditures:
Public safety:
Personnel 86,000 61,161 24,839 85,526
Volunteers 20,000 29,925 (9,925) 28,980
Fringe benefits 84,505 48,625 35,880 66,238
Professional services 2,000 1,821 179 —
Support goods and services 243,500 214,581 28,919 127,886
Capital outlay 340,000 4,380 335,620 18,085
Total expenditures 776,005 360,493 415,512 326,715
Excess (deficiency) of revenues
over (under) expenditures (209,805) 223,377 433,182 267,666
Other financing sources -
Transfers in — — — 16,040
Change in fund balance $(209,805) 223,377 433,182 283,706
Fund balance, at beginning of year 575,325 291,619
Fund balance, at end of year $ 798,702 575,325
2016
92
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Womens Bay Fire Department
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 99,000 99,338 338 98,693
Charges for services 13,000 16,610 3,610 13,601
Investment income 1,000 4,095 3,095 2,747
Rental 12,000 8,800 (3,200) 13,200
Other — 5,780 5,780 250
Total revenues 125,000 134,623 9,623 128,491
Expenditures:
Public safety:
Personnel services 7,000 785 6,215 —
Fringe benefits 3,000 480 2,520 —
Professional services — 5,460 (5,460) —
Support goods and services 98,650 67,016 31,634 42,313
Capital outlay 116,350 — 116,350 18,190
Total expenditures 225,000 73,741 151,259 60,503
Excess (deficiency) of revenues
over (under) expenditures (100,000) 60,882 160,882 67,988
Other financing uses -
Transfers out -
State Capital Grants Capital Project Fund (100,000) (100,000) — —
Change in fund balance $(200,000) (39,118) 160,882 67,988
Fund balance, at beginning of year 573,832 505,844
Fund balance, at end of year $ 534,714 573,832
2016
93
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Kodiak Airport Fire District
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
2016
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 13,800 14,716 916 14,301
Investment income 500 233 (267) 156
Total revenues 14,300 14,949 649 14,457
Expenditures:
Public safety:
Support goods and services 14,300 14,330 (30) 13,623
Excess of revenues over
expenditures $— 619 619 834
Fund balance, at beginning of year 36,593 35,759
Fund balance, at end of year $ 37,212 36,593
94
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Monashka Bay Road Service Area
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
2016
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 60,000 59,665 (335) 60,701
Investment income — 576 576 171
Total revenues 60,000 60,241 241 60,872
Expenditures:
Service district maintenance:
Personnel services 300 185 115 274
Fringe benefits 200 163 37 202
Support goods and services 2,350 127 2,223 135
Snow removal/sanding 28,150 — 28,150 3,158
Road grading/ditching 13,000 7,644 5,356 3,099
Repairs and maintenance 16,000 18,294 (2,294) 586
Total expenditures 60,000 26,413 33,587 7,454
Excess of revenues over
expenditures $— 33,828 33,828 53,418
Fund balance, at beginning of year 56,957 3,539
Fund balance, at end of year $ 90,785 56,957
95
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Service Area No. 1
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2016
2016
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 377,000 386,095 9,095 375,650
Investment income — 3,448 3,448 2,321
Total revenues 377,000 389,543 12,543 377,971
Expenditures:
Service district maintenance:
Personnel services 8,800 6,868 1,932 5,619
Fringe benefits 2,900 1,848 1,052 971
Support goods and services 3,100 1,244 1,856 1,026
Snow removal/sanding 195,521 10,114 185,407 29,198
Road grading/ditching 60,000 65,240 (5,240) 45,647
Repairs and maintenance 202,200 296,876 (94,676) 237,899
Total expenditures 472,521 382,190 90,331 320,360
Excess (deficiency) of revenues
over (under) expenditures (95,521) 7,353 102,874 57,611
Other financing uses -
Transfers out -
Trinity Islands Paving Special Revenue Fund (4,479) (4,480) (1) —
Change in fund balance $(100,000) 2,873 102,873 57,611
Fund balance, at beginning of year 406,199 348,588
Fund balance, at end of year $ 409,072 406,199
(With financial information for the year ended June 30, 2015)
96
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Womens Bay Road Service Area
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
2016
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $183,500 191,715 8,215 189,927
Licenses, permits and fees 25,000 — (25,000) 27,600
Investment income — 1,226 1,226 873
Total revenues 208,500 192,941 (15,559) 218,400
Expenditures:
Service district maintenance:
Personnel services 1,000 361 639 505
Fringe benefits 1,200 275 925 357
Support goods and services 58,900 435 58,465 452
Snow removal/sanding 60,000 17,187 42,813 18,190
Road grading/ditching 35,000 39,067 (4,067) 25,824
Repairs and maintenance 80,000 150,971 (70,971) 149,289
Total expenditures 236,100 208,296 27,804 194,617
Excess (deficiency) of revenues
over (under) expenditures (27,600) (15,355) 12,245 23,783
Other financing sources:
Transfers in -
Land Sales Special Revenue Fund 27,600 27,600 — —
Change in fund balance $ — 12,245 12,245 23,783
Fund balance, at beginning of year 163,149 139,366
Fund balance, at end of year $ 175,394 163,149
97
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Bay View Road Service Area
Schedule of Revenues, Expenditures, and Changes in Fund
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
2016
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $15,257 13,605 (1,652) 13,743
Investment income — 91 91 36
Total revenues 15,257 13,696 (1,561) 13,779
Expenditures:
Service district maintenance:
Personnel services — 59 (59) 215
Fringe benefits — 63 (63) 135
Professional services 7,257 — 7,257 —
Support goods and services — 382 (382) 24
Snow removal/sanding 5,400 835 4,565 981
Road grading/ditching 1,100 4,203 (3,103) 9,539
Repairs and maintenance 1,500 2,625 (1,125) 514
Total expenditures 15,257 8,167 7,090 11,408
Excess of revenues over
expenditures $— 5,529 5,529 2,371
Fund balance, at beginning of year 8,801 6,430
Fund balance, at end of year $ 14,330 8,801
98
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Service Area No. 2
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
2016
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Revenues:
Investment income $100 41 (59) 28
Expenditures:
Service district maintenance -
Support services 100 — 100 —
Excess of revenues over
expenditures $— 41 41 28
Fund balance, at beginning of year 5,823 5,795
Fund balance, at end of year $ 5,864 5,823
99
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
L.E.P.C.
Schedule of Revenues, Expenditures, and Changes in Fund (Deficit)
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
2016
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Revenues:
Intergovernmental:
State sources – grants $12,000 14,343 2,343 13,913
Expenditures:
Public safety:
Personnel services 11,000 6,812 4,188 6,768
Fringe benefits — 4,551 (4,551) 3,229
Support goods and services 1,000 3,497 (2,497) 3,916
Total expenditures 12,000 14,860 (2,860) 13,913
Excess (deficiency) of revenues
over (under) expenditures $— (517) (517) —
Fund (deficit), at beginning of year (17,821) (17,821)
Fund (deficit), at end of year $ (18,338) (17,821)
100
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Land Sales
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
2016
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Revenues:
Intergovernmental:
State sources - PERS on behalf payment $4,093 3,920 (173) 28,536
Charges for services 7,000 3,619 (3,381) 4,307
Licenses, permits and fees 1,000 1,250 250 1,000
Investment income — 3,427 3,427 2,365
Other 100 440 340 174
Total revenues 12,193 12,656 463 36,382
Expenditures:
General government:
Personnel services 101,858 98,623 3,235 153,602
Fringe benefits 52,114 49,392 2,722 65,037
Professional services — 61,466 (61,466) 11,200
Support goods and services 90,750 69,144 21,606 46,724
Total expenditures 244,722 278,625 (33,903) 276,563
Excess (deficiency) of revenues
over (under) expenditures (232,529) (265,969) (33,440) (240,181)
Other financing sources (uses):
Land sale proceeds 54,050 110,428 56,378 329,344
Transfers out -
Womens Bay Road Service Area
Special Revenue Fund (27,600) (27,600) — 14,961
Net other financing sources (uses) 26,450 82,828 56,378 344,305
Change in fund balance $(206,079) (183,141) 22,938 104,124
Fund balance, at beginning of year 565,041 460,917
Fund balance, at end of year $ 381,900 565,041
101
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Buildings and Grounds
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
2016
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Revenues:
Intergovernmental:
State sources - PERS on behalf payment $7,416 3,790 (3,626) 30,659
Charges for services 444,320 676,263 231,943 532,098
Investment income — 4,466 4,466 1,558
Other — 121 121 122
Total revenues 451,736 684,640 232,904 564,437
Expenditures:
General government:
School buildings 137,436 44,364 93,072 25,011
Borough building 574,857 430,331 144,526 496,230
Mental health center 25,000 5,767 19,233 19,394
Various borough buildings 10,000 9,163 837 6,321
Project office 7,700 39 7,661 213
Long-term care facility — — — 16,272
Total expenditures 754,993 489,664 265,329 563,441
Excess (deficiency) of revenues
over (under) expenditures (303,257) 194,976 498,233 996
Other financing sources:
Transfers in 216,124 34,272 (181,852) 39,690
Change in fund balance $ (87,133) 229,248 316,381 40,686
Fund balance, at beginning of year 363,967 323,281
Fund balance, at end of year $ 593,215 363,967
102
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Woodland Acres Street Light Service Area
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2016
2016
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 4,940 4,932 (8) 12,164
Investment income 200 214 14 140
Total revenues 5,140 5,146 6 12,304
Expenditures:
General government:
Support goods and services 5,140 4,828 312 4,810
Excess of revenues over
expenditures $— 318 318 7,494
Fund balance, at beginning of year 29,685 22,191
Fund balance, at end of year $ 30,003 29,685
(With financial information for the year ended June 30, 2015)
103
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Trinity Islands Street Light Service Area
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
2016
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 2,330 2,334 4 5,824
Investment income — 190 190 125
Total revenues 2,330 2,524 194 5,949
Expenditures:
General government:
Support goods and services 2,330 1,798 532 1,792
Excess of revenues over
expenditures $— 726 726 4,157
Fund balance, at beginning of year 26,264 22,107
Fund balance, at end of year $ 26,990 26,264
104
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Tourism Development
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
2016
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Revenues:
Transient accommodations tax $ 89,500 95,466 5,966 104,074
Intergovernmental - State sources -
Commerical passenger vessel tax 8,000 30,255 22,255 13,925
Investment income 500 1,417 917 731
Total revenues 98,000 127,138 29,138 118,730
Expenditures:
Community and economic development:
Contributions 90,000 85,000 5,000 75,000
Support goods and services 8,000 — 8,000 —
Total expenditures 98,000 85,000 13,000 75,000
Excess of revenues
over expenditures $— 42,138 42,138 43,730
Fund balance, at beginning of year 177,412 133,682
Fund balance, at end of year $ 219,550 177,412
105
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Mission Lake Tide Gate
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
2016
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 5,400 5,976 576 5,953
Investment income — 332 332 201
Total revenues 5,400 6,308 908 6,154
Expenditures:
Service district maintenance:
Personnel services — 757 (757) 195
Fringe benefits — 451 (451) 77
Contracted services 3,000 — 3,000 —
Support goods and services 2,400 12 2,388 8
Total expenditures 5,400 1,220 4,180 280
Excess of revenues
over expenditures $— 5,088 5,088 5,874
Fund balance, at beginning of year 43,291 37,417
Fund balance, at end of year $ 48,379 43,291
106
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fern Fuller Trust
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
2016
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Revenues:
Investment income $ 3,500 840 (2,660) 1,311
Expenditures — — — —
Excess of revenues
over expenditures 3,500 840 (2,660) 1,311
Other financing (uses):
Transfers out -
Hospital Facilities Enterprise Fund (66,500) (66,500) — (66,500)
Change in fund balances $ (63,000) (65,660) (2,660) (65,189)
Fund balance, at beginning of year 199,667 264,856
Fund balance, at end of year $ 134,007 199,667
107
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Trinity Islands Paving
Schedule of Revenues, Expenditures, and Changes in Fund (Deficit)
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
2016
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ — — — 8,806
Investment income — — — 87
Total revenues — — — 8,893
Expenditures:
Service district maintenance -
Support goods and services 4,479 3 4,476 257
Debt service -
Interest — — — 1,128
Total expenditures 4,479 3 4,476 1,385
Excess of revenues over
expenditures (4,479) (3) 4,476 7,508
Other financing sources -
Transfers in -
Service Area No.1 Special Revenue Fund 4,479 4,480 1 —
Change in fund balances $— 4,477 7,508
Fund (deficit), at beginning of year (4,477) (11,985)
Fund (deficit), at end of year $ — (4,477)
108
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Oil Spill Disaster
Schedule of Revenues, Expenditures, and Changes in Fund (Deficit)
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
2016
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Revenues $ — — — —
Expenditures 10,566 — 10,566 —
Excess of revenues
over expenditures (10,566) — 10,566 —
Other financing sources -
Transfers in - General Fund 10,566 10,566 — —
Change in fund balances $— 10,566 10,566
Fund (deficit), at beginning of year (10,566) (10,566)
Fund (deficit), at end of year $ — (10,566)
109
NONMAJOR CAPITAL PROJECT FUNDS
The Borough Capital Projects Fund accounts for capital improvement projects
related to various financing sources.
The School Bond Capital Projects Fund accounts for educational related capital
projects funded by general obligation bonds which will be paid for with property taxes
and State of Alaska grants.
The State Capital Grants Fund accounts for capital improvement projects relating
to grants received from the State of Alaska.
The School Renewal and Replacement Facilities Bond Projects accounts for bond
funded renewal and replacement projects for the Borough’s schools.
The Other Capital Projects Fund accounts for capital improvement projects related
to various financing sources.
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Funds
Combining Balance Sheet
June 30, 2016
School Renewal
Borough School Bond State and Replacement Other
Capital Capital Capital Facilities Bond Capital
Assets Projects Projects Grants Projects Projects 2016 2015
Equity in central treasury $112,469 654,514 398,886 7,838,926 1,885,735 10,890,530 1,916,339
Receivables:
State of Alaska — — 73,130 — 308 73,438 1,618,973
Federal government — — — — 651,839 651,839 319,459
Accounts and other receivables, net — — 3,153 — — 3,153 7,618
Total $ 112,469 654,514 475,169 7,838,926 2,537,882 11,618,960 3,862,389
Liabilities and Fund Balances
Liabilities:
Accounts payable — — 320 214,732 333,140 548,192 133,452
Due to other funds — 381,374 — — — 381,374 715,130
Unearned revenues — — — — 30,930 30,930 93,729
Total liabilities — 381,374 320 214,732 364,070 960,496 942,311
Fund balances:
Assigned 112,469 273,140 474,849 7,624,194 2,173,812 10,658,464 3,149,193
Unassigned — — — — — — (229,115)
Total fund balances 112,469 273,140 474,849 7,624,194 2,173,812 10,658,464 2,920,078
Total $ 112,469 654,514 475,169 7,838,926 2,537,882 11,618,960 3,862,389
Totals
(With summarized financial information at June 30, 2015)
110
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficit)
Year ended June 30, 2016
School Renewal
Borough School Bond State and Replacement Other
Capital Capital Capital Facilities Bond Capital
Projects Projects Grants Projects Projects 2016 2015
Revenues:
Intergovernmental:$
State sources — — 1,711,733 — 287,628 1,999,361 2,097,177
Federal sources — — 126,585 — 1,090,324 1,216,909 500,459
Investment income 2,620 730 979 31,766 11,623 47,718 14,218
Other — — — — 309 309 —
Total revenues 2,620 730 1,839,297 31,766 1,389,884 3,264,297 2,611,854
Expenditures:
Capital outlay:
Schools 20,674 — — 407,572 — 428,246 310,999
General 10,695 — 1,881,659 — 1,427,256 3,319,610 2,629,896
Total expenditures 31,369 — 1,881,659 407,572 1,427,256 3,747,856 2,940,895
Excess (deficiency) of revenues
over (under) expenditures (28,749) 730 (42,362) (375,806) (37,372) (483,559) (329,041)
Other financing sources (uses):
Bond issuance — — — 7,010,000 — 7,010,000 —
Premium on bonds issued — — — 990,000 — 990,000 —
Transfers in — 501,525 100,000 — — 601,525 —
Transfers out (379,580) — — — — (379,580) —
Net other financing sources (uses)(379,580) 501,525 100,000 8,000,000 — 8,221,945 —
Change in fund balance (408,329) 502,255 57,638 7,624,194 (37,372) 7,738,386 (329,041)
Fund balances (deficit), at beginning of year 520,798 (229,115) 417,211 — 2,211,184 2,920,078 3,249,119
Fund balances, at end of year $112,469 273,140 474,849 7,624,194 2,173,812 10,658,464 2,920,078
Totals
(With summarized financial information for the year ended June 30, 2015)
111
ENTERPRISE FUNDS
The Municipal Solid Waste Collection and Disposal Fund accounts for the
collection and disposal of solid waste and recycling services for the Kodiak Island
Borough.
The Hospital Facilities Fund accounts for rents on the Borough-owned hospital,
hospital related state revenue sharing, and other hospital related revenue. In turn, it
purchases hospital equipment and makes debt service payments on hospital related
debt.
The Kodiak Fisheries Research Center Fund accounts for rents and expenses on the
Borough-owned Kodiak Fisheries Research Center. The three tenants: NOAA, Alaska
Department of Fish & Game and University of Alaska, Fairbanks pay lease funds to
participate in this multi-agency research facility committed to the preservation of the
North Pacific marine ecosystem and resources.
The 911 Service Fund accounts for funds collected from phone charges and pays for
a 911 emergency system.
KODIAK ISLAND BOROUGH
Municipal Solid Waste Collection and Disposal
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Operating revenues:
Solid waste disposal $2,878,000 2,859,436 (18,564) 2,611,854
Other 3,617 16,314 12,697 11,335
Total operating revenues 2,881,617 2,875,750 (5,867) 2,623,189
Operating expenses:
Personnel services 1,273,233 1,199,794 73,439 824,689
Contracted services 258,000 195,581 62,419 139,005
Maintenance and repairs 365,000 57,629 307,371 105,439
Depreciation 859,544 302,905 556,639 269,276
General and administration 560,000 380,215 179,785 247,857
Recycling services 250,000 248,244 1,756 222,456
Closure and postclosure costs — 2,030,954 2,030,954 422,016
Contributions 46,000 34,885 11,115 38,909
Total operating expenses 3,611,777 4,450,207 (838,430) 2,269,647
Operating income (loss)(730,160) (1,574,457) (844,297) 353,542
Other income (expense):
Intergovernmental:
Federal sources - debt forgiveness — 375,468 375,468 200,000
State of Alaska on-behalf payment 38,357 39,322 965 24,487
Investment income 30,000 55,983 25,983 23,929
Bond premium amortization — 27,211 27,211 27,211
Gain on sale of assets — 16,000 16,000 —
Interest expense (157,000) (314,664) (157,664) (198,411)
Total other income (expense)(88,643) 199,320 287,963 77,216
Income (loss) before transfers (818,803) (1,375,137) (556,334) 430,758
Transfers in 6,000 — (6,000) 64,383
Change in net position $ (812,803) (1,375,137) (562,334) 495,141
Net position, at beginning of year, as previously stated 16,646,865 16,846,588
Cumulative effect of a change in accounting
principle — (694,864)
Net position, at beginning of year, as restated 16,646,865 16,151,724
Net position, at end of year $ 15,271,728 16,646,865
Enterprise Funds
2016
112
KODIAK ISLAND BOROUGH
Hospital Facilities
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Operating revenues:
Lease income $1,761,360 1,959,827 198,467 1,759,789
Operating expenses:
Personnel services 10,000 22,000 (12,000) 30,049
General and administration — 21,373 (21,373) —
Miscellaneous — 34 (34) —
Depreciation 1,222,500 1,176,745 45,755 842,644
Total operating expenses 1,232,500 1,220,152 12,348 872,693
Operating income 528,860 739,675 210,815 887,096
Other income (expense):
Intergovernmental:
State sources - grants — 11,326 11,326 13,753
Investment income 40,000 147,985 107,985 34,411
Bond premium amortization 85,360 113,822 28,462 113,821
Contribution to Providence Hospital (108,000) (108,000) — (108,000)
Interest expense (730,538) (730,538) — (782,943)
Total other income (expense)(713,178) (565,405) 147,773 (728,958)
Income (loss) before transfers (184,318) 174,270 358,588 158,138
Transfers in 66,500 66,500 — 66,500
Transfers out — (16,272) (16,272) —
Change in net position $(117,818) 224,498 342,316 224,638
Net position, at beginning of year 21,488,351 21,263,713
Net position, at end of year $ 21,712,849 21,488,351
Enterprise Funds
2016
113
KODIAK ISLAND BOROUGH
Kodiak Fisheries Research Center
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Operating revenues:
Lease income $ 1,642,417 3,353,718 1,711,301 2,267,032
Other 6,780 — (6,780) —
Total operating revenues 1,649,197 3,353,718 1,704,521 2,267,032
Operating expenses:
Personnel services 372,183 399,528 (27,345) 274,049
Maintenance and repairs 64,300 1,228 63,072 5,903
Depreciation 750,111 641,669 108,442 636,139
General and administration:
Cleaning and janitorial 62,450 51,990 10,460 51,403
Heating 171,000 60,787 110,213 93,295
Electrical 156,500 144,181 12,319 151,921
Plumbing 135,000 50,408 84,592 34,011
Air conditioning 2,500 143 2,357 5,988
Elevators 3,500 2,680 820 1,800
Miscellaneous 89,200 53,839 35,361 43,811
Total operating expenses 1,806,744 1,406,453 400,291 1,298,320
Operating income (loss) (157,547) 1,947,265 2,111,592 968,712
Other income (expense):
State of Alaska on-behalf payment 10,600 13,788 3,188 8,162
Investment income 20,000 32,212 12,212 22,485
Interest expense — (148,663) (148,663) (188,300)
Total other income (expense)30,600 (102,663) (133,263) (157,653)
Income (loss) before transfers (126,947) 1,844,602 1,971,549 811,059
Transfers in 126,947 — (126,947) 21,474
Change in net position $— 1,844,602 1,844,602 832,533
Net position, at beginning of year, as previously stated 10,989,098 10,388,186
Cumulative effect of a change in accounting
principle — (231,621)
Net position, at beginning of year, as restated 10,989,098 10,156,565
Net position, at end of year $ 12,833,700 10,989,098
Enterprise Funds
2016
114
KODIAK ISLAND BOROUGH
Enterprise Funds
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2016
(With financial information for the year ended June 30, 2015)
Variance with
Final Budget
Final Positive 2015
Budget Actual (Negative)Actual
Operating revenues:
Customer charges $40,000 30,417 (9,583) 33,961
Operating expenses:
Personnel services 1,500 1,500 — 3,000
Miscellaneous 100 98 2 92
Telephone services 38,400 28,819 9,581 30,869
Total operating expenses 40,000 30,417 9,583 33,961
Operating income $— — — —
Net position, at beginning of year — —
Net position, at end of year $ — —
2016
911 Service Fund
115
SUPPLEMENTARY SCHEDULES
Fiscal Year Principal Interest Total
2017 3,900,000 3,564,104 7,464,104
2018 4,250,000 3,420,117 7,670,117
2019 4,430,000 3,250,442 7,680,442
2020 4,605,000 3,067,742 7,672,742
2021 4,800,000 2,877,356 7,677,356
2022 5,020,000 2,657,182 7,677,182
2023 5,250,000 2,423,080 7,673,080
2024 5,500,000 2,171,043 7,671,043
2025 5,775,000 1,895,327 7,670,327
2026 4,575,000 1,663,031 6,238,031
2027 3,875,000 1,458,984 5,333,984
2028 4,065,000 1,266,254 5,331,254
2029 3,645,000 1,062,889 4,707,889
2030 3,830,000 881,179 4,711,179
2031 4,015,000 692,854 4,707,854
2032 3,590,000 501,672 4,091,672
2033 3,770,000 322,898 4,092,898
2034 2,240,000 155,058 2,395,058
2035 580,000 43,323 623,323
2036 610,000 14,713 624,713
78,325,000$ 33,389,248$ 111,714,248$
KODIAK ISLAND BOROUGH
SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS TO MATURITY
June 30, 2016
Annual principal and interest requirements on General Obligation Refunding and
Construction Bonds.
116
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$
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2008 SERIES A
This issue, dated April 15, 2008, was issued under a book entry system registered in the name of Cede & Company, as
Nominee of the Depository Trust Company, New York, New York, the securities depository for the 2008 Series A
Bond. This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond council,
Birch, Horton, Bittner and Cherot of Anchorage, Alaska. This bond was issued to fund the acquisition and
construction of school capital improvements in the Borough, including a new school pool.
June 30, 2016
RETIREMENT SCHEDULE
1998 Bond Issue2008 A BOND ISSUE
117
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%110,256 405,000 110,256 625,512
2024 4.80%100,638 425,000 100,638 626,276
2025 5.20%90,544 445,000 90,544 626,088
2026 5.20%79,975 465,000 79,975 624,950
2027 5.20%68,931 485,000 68,931 622,862
2028 5.20%56,503 510,000 56,503 623,006
2029 5.20%43,434 535,000 43,434 621,868
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$ 6,530,000$ 1,413,803$ 9,357,606$
This issue, dated March 1, 2011, was issued under a book entry system registered in the name of Cede & Company, as
Nominee of the Depository Trust Company, New York, New York, the securities depository for the 2011 Series One Bond.
This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond council, Birch,
Horton, Bittner and Cherot of Anchorage, Alaska. This bond was issued to fund the High School Renovation and Renewal
project.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2011 SERIES ONE
RETIREMENT SCHEDULE
June 30, 2016
1998 Bond Issue2011 SERIES ONE BOND ISSUE
118
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$
This issue, dated May 24, 2012 was issued under a book entry system registered in the name of Cede & Company, as
Nominee of the Depository Trust Company, New York, New York, the securities depository for the 2012 Series A Bond.
This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond council, Wohlforth,
Vassar, Johnson & Brecht of Anchorage, Alaska. This bond was issued to refund part of the 2004C Bond which was issued
to fund planning, design, and construction of capital improvements to the Larsen Bay School, Kodiak Middle School and
Kodiak High School.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2012 SERIES A
RETIREMENT SCHEDULE
June 30, 2016
2012 A BOND ISSUE
119
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$
This issue, dated May 24, 2012 was issued under a book entry system registered in the name of Cede & Company, as
Nominee of the Depository Trust Company, New York, New York, the securities depository for the 2012 Series B Bond.
This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond council, Wohlforth,
Vassar, Johnson & Brecht of Anchorage, Alaska. This bond was issued to refund part of the 2004D bond issue, which was
used to fund the acquisition and construction of school capital improvements in the Borough, including a new school pool
and the Kodiak High School Voc/Ed Classroom reclamation.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2012 SERIES B
RETIREMENT SCHEDULE
June 30, 2016
2012 B BOND ISSUE
120
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 BOND, 2013 SERIES ONE
RETIREMENT SCHEDULE
June 30, 2016
2013 SERIES ONE BOND ISSUE
This issue, dated March 1, 2013, was issued under a book entry system registered in the name of Cede & Company, as
Nominee of the Depository Trust Company, New York, New York, the securities depository for the 2013 Series One
Bond. This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond council,
Birch, Horton, Bittner and Cherot of Anchorage, Alaska. This bond was issued to fund the High School Renovation and
Renewal project.
121
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 1,777,112
2018 5.00% 467,356 840,000 467,356 1,774,712
2019 2.00% 446,356 880,000 446,356 1,772,712
2020 2.00% 437,556 900,000 437,556 1,775,112
2021 5.00% 428,556 915,000 428,556 1,772,112
2022 5.00% 405,681 965,000 405,681 1,776,362
2023 5.00% 381,556 1,010,000 381,556 1,773,112
2024 5.00% 356,306 1,060,000 356,306 1,772,612
2025 3.12% 329,806 1,110,000 329,806 1,769,612
2026 5.00% 312,463 1,150,000 312,463 1,774,926
2027 5.00% 283,713 1,205,000 283,713 1,772,426
2028 5.00% 253,588 1,265,000 253,588 1,772,176
2029 5.00% 221,963 1,330,000 221,963 1,773,926
2030 5.00% 188,713 1,395,000 188,713 1,772,426
2031 4.50% 153,838 1,465,000 153,838 1,772,676
2032 5.00% 120,875 1,535,000 120,875 1,776,750
2033 5.00% 82,500 1,610,000 82,500 1,775,000
2034 5.00% 42,250 1,690,000 42,500 1,774,750
5,396,632$ 21,135,000$ 5,396,882$ 31,928,514$
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2014 SERIES ONE
RETIREMENT SCHEDULE
June 30, 2016
2014 SERIES ONE BOND ISSUE
This issue, dated March 12, 2013, was issued under a book entry system registered in the name of Cede & Company, as
Nominee of the Depository Trust Company, New York, New York, the securities depository for the 2013Series One Bond.
This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond council, Birch, Horton,
Bittner and Cherot of Anchorage, Alaska. This bond was issued to fund the High School Renovation and Renewal project.
122
Fiscal Year
Interest
Rate
Interest Due
October 01
Principal Due
October 01
Interest Due
April 01 Total
2017 2.00% 149,156 195,000 147,206 491,362
2018 2.00% 147,206 200,000 145,206 492,412
2019 4.00% 145,206 205,000 141,106 491,312
2020 5.00% 141,106 215,000 135,731 491,837
2021 5.00% 135,732 225,000 130,106 490,838
2022 5.00% 130,106 240,000 124,106 494,212
2023 5.00% 124,106 250,000 117,856 491,962
2024 5.00% 117,856 265,000 111,231 494,087
2025 5.00% 111,232 275,000 104,356 490,588
2026 5.00% 104,356 290,000 97,106 491,462
2027 5.00% 97,106 305,000 89,482 491,588
2028 5.00% 89,482 320,000 81,482 490,964
2029 5.00% 81,481 335,000 73,106 489,587
2030 5.00% 73,106 355,000 64,232 492,338
2031 4.00% 64,231 370,000 56,831 491,062
2032 5.25% 56,831 390,000 46,594 493,425
2033 5.25% 46,594 410,000 35,832 492,426
2034 5.25% 35,832 430,000 24,544 490,376
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$ 9,836,582$
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2015 SERIES THREE
RETIREMENT SCHEDULE
June 30, 2016
2015 SERIES THREE BOND ISSUE
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.
123
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$
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2015 SERIES THREE
RETIREMENT SCHEDULE
June 30, 2016
2015 SERIES THREE BOND ISSUE
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.
124
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 33,584 133,793
2019 5.00% 33,584 65,000 31,959 130,543
2020 5.00% 31,959 70,000 30,209 132,168
2021 5.00% 30,209 75,000 28,335 133,544
2022 5.00% 28,335 80,000 26,335 134,670
2023 5.00% 26,335 80,000 24,334 130,669
2024 5.00% 24,334 85,000 22,209 131,543
2025 5.00% 22,209 90,000 19,960 132,169
2026 5.00% 19,959 95,000 17,584 132,543
2027 2.00% 17,584 100,000 16,584 134,168
2028 4.00% 16,584 100,000 14,584 131,168
2029 4.00% 14,584 105,000 12,484 132,068
2030 2.63% 12,484 110,000 11,041 133,525
2031 3.00% 11,041 110,000 9,391 130,432
2032 3.00% 9,391 115,000 7,666 132,057
2033 3.00% 7,666 120,000 5,866 133,532
2034 3.00% 5,866 120,000 4,066 129,932
2035 3.13% 4,066 125,000 2,113 131,179
2036 3.25% 2,113 130,000 - 132,113
389,272$ 1,870,000$ 353,513$ 2,612,785$
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2016 SERIES ONE
RETIREMENT SCHEDULE
June 30, 2016
2016 SERIES ONE BOND ISSUE
The 2016 Series One General Obligation School Bonds were issued to provide funds for school and related capital
improvements in the Borough, specifically to provide a portion of the funds needed for the Kodiak High School Addition
and Renovation.
125
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$
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2016 SERIES ONE
RETIREMENT SCHEDULE
June 30, 2016
2016 SERIES ONE BOND ISSUE
The 2016 Series One General Obligation School Bonds were issued to provide funds for school and related capital
improvements in the Borough, specifically to provide for school facility renewal and replacement needs.
126
STATISTICAL SECTION
STATISTICAL SECTION
This part of the Kodiak Island Borough’s comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the governments’ overall financial
health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand
how the government’s financial performance and well-being have changed
over time. 127-130
Revenue Capacity
These schedules contain information to help the reader assess the govern-
ment’s most significant local revenue source, the property tax. 131-135
Debt Capacity
These schedules present information to help the reader assess the afforda-
bility of the government’s current levels of outstanding debt and the gov-
ernment’s ability to issue additional debt in the future. 136-140
Demographic and Economic Information
These schedules offer demographic and economc indicators to help the
reader understand the environment within which the government’s finan-
cial activities take place. 141-147
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports
for the revelant year.
2007 2008 2009 2010 2011
Governmental activities:
Net investment in capital assets $ 73,425,394 $ 25,127,779 $ 71,534,766 $ 77,447,045 $ 81,789,375
Unrestricted 37,640,716 89,853,794 48,140,406 48,992,902 47,094,977
Total governmental activities net assets $111,066,110 $114,981,573 $119,675,172 $126,439,947 $128,884,352
Business-type activities:
Net investment in capital assets $ 38,623,762 $ 34,706,597 $ 38,135,340 $ 36,655,859 $ 35,170,143
Unrestricted (5,503,362) (2,862,363) (2,939,301) (598,367) 1,137,826
Total business-type activities net assets $33,120,400 $31,844,234 $35,196,039 $36,057,492 $36,307,969
Primary government:
Net investment in capital assets $ 63,751,541 $ 106,241,363 $ 115,582,385 $ 118,445,234 $ 116,959,518
Unrestricted 84,350,432 45,278,043 46,053,601 46,496,610 48,232,803
Total primary government net assets $144,186,510 $146,825,807 $154,871,211 $162,497,439 $165,192,321
2012 2013 2014 2015 2016
Governmental activities:
Net investment in capital assets $ 85,285,497 $ 72,773,598 $ 80,159,521 $ 82,616,865 $ 76,747,617
Unrestricted 48,265,320 47,149,835 46,754,461 43,472,334 51,380,334
Total governmental activities net assets $133,550,817 $119,923,433 $126,913,982 $126,089,199 $128,127,951
Business-type activities:
Net investment in capital assets $ 31,967,945 $ 21,628,143 $ 36,383,229 $ 43,884,340 $ 37,381,997
Unrestricted 4,532,561 20,750,321 12,115,258 5,239,974 12,436,280
Total business-type activities net assets $36,500,506 $42,378,464 $48,498,487 $49,124,314 $49,818,277
Primary government:
Net investment in capital assets $ 117,253,442 $ 94,401,741 $ 116,542,750 $ 126,501,205 $ 114,129,614
Unrestricted 52,797,881 67,900,156 58,869,719 48,712,308 63,816,614
Total primary government net assets $170,051,323 $162,301,897 $175,412,469 $175,213,513 $177,946,228
Source: Borough general ledger
Fiscal Year
Fiscal Year
KODIAK ISLAND BOROUGH
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
127
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Expenses
Governmental activities:
General government $4,755,754 $4,226,759 $3,723,964 $4,479,415 $5,109,232 $ 4,281,383 $ 7,398,899 $ 6,990,640 $ 5,637,239 $ 7,850,988
Public safety - 509,697 579,710 612,763 664,349 622,396 644,197 751,637 663,145 798,079
Community and economic development 786,614 1,105,156 908,501 1,034,686 1,211,189 1,195,237 1,070,991 964,377 886,613 1,167,367
Emergency preparedness 10,384 13,841 14,988 10,511 11,705 21,423 278,480 12,487 31,628 30,849
Health and sanitation 414,144 449,792 371,673 406,087 392,011 391,996 290,800 326,700 406,093 389,000
Education, culture, and recreation 161,247 183,747 248,571 192,182 85,690 64,289 84,273 218,013 335,854 23,949
Parks and recreation - - - - 13,625 5,825 21,100 37,795 161,596 87,456
Service district maintenance 362,189 378,661 398,219 543,897 593,388 705,665 479,264 631,572 534,376 626,289
Primary and secondary education 10,788,188 11,524,160 12,354,129 12,423,691 12,834,349 11,998,842 13,930,919 14,523,509 14,316,695 14,197,077
Interest on long-term debt 1,290,216 1,270,423 1,408,045 1,336,068 1,508,052 1,188,945 1,254,225 2,109,406 3,063,649 3,492,549
Total governmental activities expenses 18,568,736 19,662,236 20,007,800 21,039,300 22,423,590 20,476,001 25,453,148 26,566,136 26,036,888 28,663,603
Business-type activities:
Municipal solid waste collection and disposal 2,888,821 4,628,826 3,852,158 4,283,148 2,192,132 2,345,752 2,342,006 2,080,864 2,468,058 4,764,871
Hospital facilities 1,297,419 1,124,650 1,095,535 1,035,020 1,027,615 1,016,882 1,091,035 1,740,525 1,763,636 2,058,690
Kodiak Fisheries Research Center 1,889,750 2,027,432 1,960,404 1,927,580 1,847,427 1,746,952 1,775,062 1,681,111 1,486,620 1,555,116
911 services 64,140 107,980 43,043 42,474 53,041 2,615 87,596 39,817 33,961 30,417
Total business-type activities expenses 6,140,130 7,888,888 6,951,140 7,288,222 5,120,215 5,112,201 5,295,699 5,542,317 5,752,275 8,409,094
Total primary government expenses $24,708,866 $27,551,124 $26,958,940 $28,327,522 $27,543,805 25,588,202 30,748,847 32,108,453 31,789,163 37,072,697
Program Revenues
Governmental activities:
Charges for services:
General government $1,058,330 $436,284 $705,166 $703,431 $658,463 $ 673,050 $ 549,100 $ 577,350 $ 540,052 $ 682,664
Public safety - - 12,361 12,762 33,755 11,646 13,849 14,336 13,601 16,610
Community and economic development 68,867 148,682 - - - - - - - -
Health and sanitation - 7,370 - - - - - - - -
Education, culture, and recreation - - - - - - - - - -
Service district maintenance 20,015 28,345 25,000 25,000 27,600 1 94,076 110,313 114,516 66,151
Primary and secondary education - - - - - - - - - -
Operating grants and contributions 1,935,687 1,911,246 2,543,254 2,306,394 2,295,661 2,479,263 2,917,662 4,077,510 4,305,691 4,813,838
Capital grants 184,922 1,926,465 2,331,253 6,518,798 3,241,219 574,439 2,212,524 6,651,737 3,002,933 3,216,270
Total governmental activities program revenues 3,267,821 4,458,392 5,617,034 9,566,385 6,256,698 3,738,399 5,787,211 11,431,246 7,976,793 8,795,533
Business-type activities:
Charges for services:
Municipal solid waste collection and disposal 3,932,985 3,911,771 3,603,995 4,350,369 2,397,979 2,301,757 2,504,035 2,265,967 2,611,854 2,859,436
Hospital facilities 1,081,110 720,000 3,575,835 1,867,990 720,000 720,000 720,000 1,150,000 1,759,789 1,959,827
Kodiak Fisheries Research Center 1,581,850 1,614,532 1,598,260 1,610,775 2,018,747 1,636,728 1,603,503 1,851,322 2,267,032 3,353,718
911 services 62,698 54,925 52,654 42,474 53,041 - - - - -
Operating grants and contributions - - - - - 75,819 85,634 - 32,649 428,578
Capital grants - - - - - 97,534 5,984,095 5,538,038 213,753 11,326
Total business-type activities program revenues 6,658,643 6,301,228 8,830,744 7,871,608 5,189,767 4,831,838 10,897,267 10,805,327 6,885,077 8,612,885
Total primary government program revenues $9,926,464 $10,759,620 $14,447,778 $17,437,993 $11,446,465 $ 8,570,237 $ 16,684,478 $ 22,236,573 $ 14,861,870 $ 17,408,418
Net (expense)/revenue:
Governmental activities $(15,300,915) $(15,203,844) $(14,390,766) $(11,472,915) $(16,166,892) $ (16,737,602) $ (19,665,937) $ (15,134,890) $ (18,060,095) $ (19,868,070)
Business-type activities 518,513 (1,587,660) 1,879,604 583,386 69,552 (280,363) 5,601,568 5,263,010 1,132,802 203,791
Total primary government net expense $(14,782,402) $(16,791,504) $(12,511,162) $(10,889,529) $(16,097,340) $ (17,017,965) $ (14,064,369) $ (9,871,880) $ (16,927,293) $ (19,664,279)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes:
Property taxes $9,754,916 $10,118,602 $10,592,258 $11,051,740 $11,945,103 $ 13,327,552 $ 12,910,512 $ 13,741,190 $ 14,228,505 $ 14,414,032
Severance taxes 1,316,689 1,436,210 1,311,188 1,336,075 1,649,275 1,970,265 1,774,700 1,843,819 1,703,257 1,586,555
Unrestricted grants and contributions 3,242,740 3,144,750 4,214,617 4,089,966 3,642,009 4,199,766 4,458,203 4,142,583 3,990,192 3,985,978
Land sales - - 26,369 760 2,383 4,540 - 864,584 103,143 27,683
Investment earnings 3,745,990 3,912,145 2,082,615 1,219,201 713,414 1,788,903 528,676 1,106,717 574,227 604,274
Other (225,636) 380,550 226,586 619,948 739,113 327,540 383,877 506,546 494,287 1,079,204
Transfers 162,643 127,050 (765,490) (80,000) (80,000) (80,000) (80,000) (80,000) (152,357) (50,228)
Extraordinary item - - 1,396,222 - - - - - - -
Total governmental activities $17,997,342 $19,119,307 $19,084,365 $18,237,690 $18,611,297 $ 21,538,566 $ 19,975,968 $ 22,125,439 $ 20,941,254 $ 21,647,498
Business-type activities:
Investment earnings 274,126 434,164 273,973 198,067 100,925 282,027 117,702 178,851 80,825 236,180
Other 35,747 4,380 50 - - 110,442 78,688 598,162 186,328 203,764
Transfers (162,643) (127,050) 765,490 80,000 80,000 80,000 80,000 80,000 152,357 50,228
Extraordinary item - - 432,688 - - - - - - -
Total business-type activities 147,230 311,494 1,472,201 278,067 180,925 472,469 276,390 857,013 419,510 490,172
Total primary government $18,144,572 $19,430,801 $20,556,566 $18,515,757 $18,792,222 $ 22,011,035 $ 20,252,358 $ 22,982,452 $ 21,360,764 $ 22,137,670
Change in Net Position
Governmental activities $2,696,427 $3,915,463 $4,693,599 $6,764,775 $2,444,405 $ 4,800,964 $ 310,031 $ 6,990,549 $ 2,881,159 $ 1,779,428
Business-type activities 665,743 (1,276,166) 3,351,805 861,453 250,477 192,106 5,877,958 6,120,023 1,552,312 693,963
Total primary government $3,362,170 $2,639,297 $8,045,404 $7,626,228 $2,694,882 $4,993,070 $6,187,989 $13,110,572 $4,433,471 $2,473,391
KODIAK ISLAND BOROUGH
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
128
2010 2011 2012 2013 2014
General Fund:
Nonspendable $6,801 $6,801 $166,020 $6,324 $1,459
Committed - - - - -
Unassigned 1,952,757 1,952,757 3,126,037 3,340,662 3,502,489
Total General Fund $1,959,558 $1,959,558 $3,292,057 $3,346,986 $3,503,948
All other governmental funds
Nonspendable $21,704 $21,704 $5,114,902 $4,636,976 $513,765
Committed 57,633,409 57,633,409 37,288,510 37,902,356 42,355,129
Assigned - - 11,464,575 29,981,503 28,875,499
Unassigned (1,179,132) (1,179,132) (1,989,279) (51,337) (2,929,481)
Total all other governmental funds $56,475,981 $56,475,981 $51,878,708 $72,469,498 $68,814,912
2015 2016
General Fund:
Nonspendable $14,566 $26,272
Committed - -
Unassigned 3,181,342 3,259,509
Total General Fund $3,195,908 $3,285,781
All other governmental funds
Nonspendable $287,564 $181,191
Committed 42,606,097 43,081,680
Assigned 7,610,272 11,312,217
Unassigned (2,516,222) (1,885,239)
Total all other governmental funds $47,987,711 $52,689,849
The Kodiak Island Borough implemented GASB 54 in Fiscal Year 2011. That is why there is only seven years of data.
KODIAK ISLAND BOROUGH
Fund Balances of Governmental Funds
Last Seven Fiscal Years
(modified accrual basis of accounting)
129
Fiscal Year
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Revenues:
Property taxes and assessments $ 9,681,815 10,175,295 10,477,347 10,993,175 11,909,806 13,052,598 12,936,796 13,656,771 14,091,503 14,310,687
Transient accommodations tax 68,867 79,182 88,338 86,003 96,384 87,400 96,640 75,142 104,074 95,466
Intergovernmental:
State sources 4,012,647 4,428,472 5,966,808 10,610,231 7,029,684 5,313,092 7,929,017 12,938,158 10,332,739 8,870,802
Federal sources 1,417,403 2,553,990 3,122,316 2,338,468 2,149,205 1,940,376 1,659,372 1,933,672 2,093,987 3,090,533
Severance taxes 1,316,689 1,436,210 1,311,188 1,336,075 1,649,275 1,970,265 1,774,700 1,843,819 1,703,257 1,491,089
Licenses, permits, fees, and other local revenues 690,962 658,381 742,527 766,193 719,818 684,697 657,025 701,999 688,719 774,225
Other revenues 633,925 353,850 418,741 459,412 720,659 44,304 52,516 50,556 17,747 45,422
Investment earnings 3,751,609 3,918,008 2,088,915 1,225,938 706,677 1,857,413 536,903 1,115,466 583,677 648,987
Total revenues 21,573,917 23,603,388 24,216,180 27,815,495 24,981,508 24,950,145 25,642,969 32,315,583 29,615,703 29,327,211
Expenditures:
General government 4,504,052 3,818,544 4,067,024 4,600,601 4,818,287 4,848,805 5,307,199 5,449,505 6,333,724 5,307,245
Public safety — 385,529 460,826 502,491 537,623 447,479 469,280 576,720 524,169 572,839
Community and economic development 786,614 923,203 908,501 1,034,686 1,211,189 1,195,237 1,070,991 964,377 1,153,985 1,069,639
Emergency preparedness 7,884 5,713 12,488 8,011 11,705 18,923 18,342 9,987 29,128 30,849
Health and sanitation department 373,132 387,053 333,747 371,321 392,011 391,996 290,800 326,700 406,093 389,000
Education, culture, and recreation 158,161 183,747 248,571 192,182 85,690 64,289 84,273 95,625 24,856 23,949
Parks and recreation — — — — 13,625 5,825 21,100 37,795 161,596 87,456
Service district maintenance 498,539 374,320 398,219 543,897 593,388 705,665 479,264 631,572 534,376 626,289
Primary and secondary education 8,387,440 9,123,412 9,956,618 9,980,350 10,127,350 10,337,349 10,442,350 10,845,220 11,100,714 11,100,650
Capital outlay:
Schools 1,436,639 7,029,628 14,857,064 7,359,932 1,881,069 5,255,037 5,486,672 34,872,235 21,984,655 13,240,920
General 373,038 887,189 1,277,106 4,319,438 4,839,652 562,007 2,041,674 1,521,996 2,907,018 3,430,975
Debt service:
Principal 2,100,361 2,205,441 2,495,056 2,685,606 2,750,690 2,780,776 2,966,441 3,645,950 2,646,040 3,201,002
Interest 1,336,349 1,263,176 1,578,408 1,356,872 1,292,645 2,695,657 1,254,225 2,109,406 3,121,577 3,194,612
Other charges - bond issuance costs — — 68,635 — 40,689 100,149 20,809 89,835 — 124,372
Total expenditures 19,962,209 26,586,955 36,662,263 32,955,387 28,595,613 29,409,194 29,953,420 61,176,923 50,927,931 42,399,797
Excess of revenues over (under) expenditures 1,611,708 (2,983,567) (12,446,083) (5,139,892) (3,614,105) (4,459,049) (4,310,451) (28,861,340) (21,312,228) (13,072,586)
Other Financing Sources (Uses):
Proceeds from the sales of bonds — 8,000,000 — — 8,049,233 — 21,595,000 22,660,000 — 15,000,000
Premium on bonds issued — — — — — — 3,424,819 2,427,432 — 2,141,115
Refunding bonds issued — — 6,740,000 — — 13,578,039 — — — —
Payment to refunded bond escrow agent — — (6,865,467) — — (12,180,000) — — — —
Proceeds from sale of assets — — — — — — 9,564 — — —
Land sale proceeds 47,087 19,458 30,561 138,867 15,021 10,735 6,787 356,284 329,344 110,428
Insurance proceeds — — — — — — — — — 403,958
Transfers in 2,626,853 2,966,610 6,144,301 3,211,195 3,782,289 957,652 6,212,885 992,365 642,691 1,404,497
Transfers out (2,464,210) (2,839,560) (6,909,791) (3,291,195) (3,862,289) (1,037,652) (6,292,885) (1,072,365) (795,048) (1,454,725)
Total other financing sources(uses) 209,730 8,146,508 (860,396) 58,867 7,984,254 1,328,774 24,956,170 25,363,716 176,987 17,605,273
Net change in fund balances $ 1,821,438 5,162,941 (13,306,479) (5,081,025) 4,370,149 (3,130,275) 20,645,719 (3,497,624) (21,135,241) 4,532,687
Debt service as a percentage of noncapital expenditures 19.20 % 19.45 % 20.56 % 19.41 % 18.53 % 27.22 % 17.62 % 22.51 % 21.71 % 23.80 %
KODIAK ISLAND BOROUGH
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
130
KODIAK ISLAND BOROUGH
General Revenues by Source(a)
Last Ten Fiscal Years
Licenses, Inter-
Fiscal Permits Governmental Investment Operating Miscellaneous
Year Taxes and Fees Revenue Income Transfers Revenue Total
2007 10,218,016 78,720 3,325,899 399,149 — 82,604 14,104,388
2008 10,792,741 100,256 3,276,741 544,926 — — 14,714,664
2009 10,864,441 65,417 4,461,624 292,825 — 131,944 15,816,251
2010 11,219,182 71,319 4,123,507 178,567 — 38,352 15,630,927
2011 12,412,832 72,394 3,642,009 (21,628) — 537,235 16,642,842
2012 2,291,625 65,421 4,425,447 281,792 — 16,177 7,080,462
2013 2,035,971 66,476 4,787,308 39,078 29,335 30,733 6,988,901
2014 2,051,794 82,713 4,605,916 23,804 — 14,328 6,778,555
2015 1,938,286 86,916 5,163,300 (18,330) — 19,468 7,189,640
2016 1,712,846 66,151 4,132,063 54,211 — 37,473 6,002,744
(a) Includes General Fund only.
Source: Borough general ledger.
131
KODIAK ISLAND BOROUGH
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Ratio of
Total Taxable
Total Assessed to
Real Property Personal Property Total Direct Total
Year Ended Net Taxable Full Value Net Taxable Full Value Net Taxable Full Value Tax Full Value
June 30,Assessed Value Determination Assessed Value Determination Assessed Value Determination Rate Determination
2007 710,848,299 836,778,900 94,833,515 297,380,200 805,681,814 1,134,159,100 10.50 71.04
2008 734,527,929 941,403,800 100,997,608 298,543,700 835,525,537 1,239,947,500 10.50 67.38
2009 765,152,958 817,641,308 105,320,027 233,623,664 870,472,985 1,051,264,972 10.50 82.80
2010 805,000,744 855,452,864 108,014,241 227,294,006 913,014,985 1,082,746,870 10.50 84.32
2011 875,787,940 931,330,970 113,091,185 250,671,059 988,879,125 1,182,002,029 10.50 83.66
2012 947,611,296 1,007,199,396 91,612,537 236,610,137 1,039,223,833 1,243,809,533 10.75 83.55
984,146,580 1,049,746,680 101,821,700 237,074,800 1,085,968,280 1,286,821,480 10.75 84.39
1,029,239,311 1,100,702,180 102,237,300 286,425,000 1,131,476,611 1,387,127,180 10.75 81.57
1,068,647,102 1,137,024,180 113,251,900 361,886,700 1,181,899,002 1,498,910,880 10.75 78.85
2016 1,084,317,572 1,161,805,872 118,559,600 348,158,100 1,202,877,172 1,509,963,972 10.75 79.66
Sources: Borough assessment and tax records
Notes: Property in Kodiak Island Borough is reassessed once every three years.
Property is assessed at actual value; therefore, the assessed values are equal to actual value,
Tax rates are per $1,000 of assessed value.
Fiscal
2013
2015
2014
$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Last Ten Years Assessed Values
132
KODIAK ISLAND BOROUGH
Direct and Overlapping Property Tax Rates and
Contributions to the School District
Last Ten Fiscal Years
Overlapping Rates
Woodland²Trinity²Mission²
Fiscal Acres Islands Lake Fire Areas²
Year Borough Education Renewal City¹Street Street Tide Road Services Areas²Fire
Ended Basic Support Debt and of Lighting Lighting Gate Monashka Service Bay View Womens Protection Womens
June 30, Rate Fund Service Replacement Kodiak Area Area Area Bay District 1 Road Bay Area No. 1 Bay Airport
2007 10.50 — — — 2.00 — 0.50 1.00 2.50 1.25 1.00 2.00 1.50 1.25 1.25
2008 10.50 — — — 2.00 — 0.50 1.00 2.50 1.25 1.00 2.00 1.50 1.25 1.25
2009 10.50 — — — 2.00 0.25 0.50 1.00 2.50 1.50 1.00 2.00 1.50 1.25 1.25
2010 10.50 — — — 2.00 0.25 0.50 1.00 2.50 1.50 1.00 2.00 1.50 1.25 1.25
2011 10.50 — — — 2.00 0.25 0.50 1.00 2.50 1.50 1.00 2.50 1.50 1.25 1.25
2012 0.03 9.09 1.55 0.08 2.00 0.25 0.50 1.00 2.50 1.50 1.00 2.50 1.50 1.25 1.25
2013 0.03 9.03 1.61 0.08 2.00 0.25 0.50 1.00 2.50 0.50 1.75 2.50 1.50 1.25 1.25
2014 0.03 8.75 1.81 0.16 2.00 0.25 0.50 1.00 2.50 1.50 1.50 2.50 1.50 1.25 1.25
2015 0.06 9.16 0.99 0.54 2.00 0.25 0.50 1.00 2.50 1.50 1.50 2.50 1.50 1.25 1.25
2016 0.15 7.62 1.91 1.07 2.00 0.10 0.20 1.00 2.50 1.50 1.50 2.50 1.50 1.25 1.25
Note: With the excection of a mill rate to cover Debt Service, the maximum mill rate allowed by State code is 30 mills
¹Overlapping rates are those of local governments that apply to property owners within the City of Kodiak.
²Overlapping rates are those which apply to property owners located within special taxing districts in the borough. They do not apply to every property owner in the Borough.
Direct
Rate
(per $1,000 of Assessed Value)
133
KODIAK ISLAND BOROUGH
Property Tax Levies and Collections
Last Ten Fiscal Years
Collections
in Subsequent
Years Amount
2007 $ 9,298,329 $ 9,169,456 98.6 $ 126,255 $ 9,295,711 100.0
2008 9,979,775 9,615,784 96.4 361,432 9,977,216 100.0
2009 10,231,461 10,201,209 99.7 25,003 10,226,212 99.9
2010 10,879,276 10,487,467 96.4 383,986 10,871,453 99.9
2011 (a) 11,536,758 11,499,457 99.7 97,223 11,596,680 100.5
2012 (a) 13,255,665 13,038,077 98.4 278,623 13,316,700 100.5
2013 (a) 13,581,524 13,489,190 99.3 142,083 13,631,273 100.4
2014 14,424,260 14,250,305 98.8 113,549 14,363,854 99.6
2015 15,009,704 14,749,222 98.3 126,394 14,875,616 99.1
2016 $ 15,261,029 $ 15,032,113 98.5 $ — $ 15,032,113 98.5
Source: Borough general ledger.
(a) Due to personal property audits in subsequent years, tax collections exceeded original taxes levied.
Total Collections to DateTaxes Levied
for the
Fiscal Year (a)
Percentage
of LevyAmount of Levy
Percentage
June 30,
Ended
Fiscal Year
Collected within the
Fiscal Year of the Levy
134
KODIAK ISLAND BOROUGH
Principal Property Tax Payers
Current Year and Ten Years Ago
Percentage Percentage
Taxable of Total Borough Taxable of Total Borough
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Trident Seafoods Corp $ 73,267,600 1 6.1% $ 8,188,476 8 1%
Matson Navigation (b) 41,599,900 2 3.5% 7,408,186 9 0.9%
Ocean Beauty Seafoods 35,626,000 3 3.0% 16,699,020 1 2.1%
North Pacific Seafoods (a) 21,024,700 4 1.7% 9,546,064 6 1.2%
Int'l Seafoods of Alaska 20,862,000 5 1.7% 10,795,728 5 1.3%
Mill Bay Plaza Assoc Ltd 11,641,800 6 1.0% 7,138,400 10 0.9%
Wal-Mart/Sams Club 9,750,200 7 0.8% 9,127,913 7 1.1%
GCI Communications Corp 9,144,400 8 0.8% — —
Island Fish Co LLC 6,779,100 9 0.6% — —
Koncor Forest Products 6,151,700 10 0.5% — —
Brechan Enterprises, Inc — — — 13,887,896 2 1.7%
Westward Seafoods, Inc. — — — 11,394,029 4 1.4%
Alaska Communications Systems — — — 12,044,445 3 1.5%
Total $235,847,400 19.6% $106,230,157 13.2%
Source: Borough tax records.
(a) North Pacific Seafoods and Alaska Pacific Seafoods were combined in 2006.
(b) Matson Navigation purchased Horizon Lines in 2012
2016 2007
135
Net
Total Taxable Net Debt Per
Fiscal Assessed Bonded Per Assessed
Year Population Value Debt Capita Value
2007 13,664 (a) 805,681,814 29,163,349 2,134 3.62%
2008 13,954 (a) 835,525,537 34,957,269 2,505 4.18%
2009 13,860 (a) 870,472,985 32,534,424 2,347 3.74%
2010 13,592 (a) 913,014,985 29,838,432 2,195 3.27%
2011 13,870 (a) 988,879,125 35,124,211 2,532 3.55%
2012 14,041 (a) 1,039,223,833 33,510,913 2,387 3.22%
13,824 (a) 1,085,968,280 55,236,114 3,996 5.09%
13,797 (a) 1,131,476,611 76,227,556 5,525 6.74%
13,819 (b) 1,181,899,002 73,131,566 5,292 6.19%
2016 13,819 (b) 1,202,877,172 86,481,657 6,258 7.19%
Sources: Information obtained from assessment records and Borough general ledger except as otherwise noted.
(a) Information obtained from State of Alaska, Division of Community and Regional Affairs,
Community Database, Certified Population for Revenue Sharing Program.
(b) Information obtained from State of Alaska, Department of Labor, Economic Information.
Note: Detail regarding the borough's outstanding debt can be found in the notes to the financial statements.
KODIAK ISLAND BOROUGH
Ratios of Net Bonded Debt
Last Ten Fiscal Years
2013
2015
2014
136
KODIAK ISLAND BOROUGH
Computation of Direct Debt
Percentage Kodiak Island
Net Debt Applicable to this Borough
Outstanding Governmental Share of
(a) Unit (b) Debt (c)
Kodiak Island Borough:
General obligation bonds $ 86,481,657 100% $ 86,481,657
City of Kodiak:
General obligation bonds 6,695,000 100% 6,695,000
Total $93,176,657 $93,176,657
(a) Gross debt outstanding less applicable amounts in the Debt Service Funds.
(b) Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to
valuation of property subject to taxation in reporting unit.
(c) Per Alaska Statute 29.45.090 there is a limit of 30 mills for ad valorem taxes.
Per Alaska Statute 29.45.100 the limitation on maximum mill rate does not apply to taxes levied to
pay bonds.
Sources: Borough general ledger and City of Kodiak records.
June 30, 2016
137
2007 2008 2009 2010 2011
Taxable Assessed value $ 805,681,814 835,525,537 870,472,985 913,014,985 988,879,125
Plus exempt property 49,539,000 50,194,170 45,188,050 50,452,120 55,543,030
Total $855,220,814 885,719,707 915,661,035 963,467,105 1,044,422,155
2012 2013 2014 2015 2016
Taxable Assessed value 1,039,223,833 1,085,968,080 1,131,476,611 1,181,899,002 1,202,877,172
Plus exempt property 59,588,100 65,600,100 71,462,869 68,377,078 77,488,300
Total 1,098,811,933 1,151,568,180 1,202,939,480 1,250,276,080 1,280,365,472
The State of Alaska does not mandate a debt limit to its municipalities and political subdivisions.
Debt capacity is ultimately determined by the voters and the marketplace.
Source: Borough assessment records (certified tax rolls).
KODIAK ISLAND BOROUGH
Legal Debt Margin Information
Last Ten Fiscal Years
138
KODIAK ISLAND BOROUGH
Ratio of Annual Debt Service Expenditures
for General Bonded Debt to Total
General Governmental Expenditures and Transfers
Last Ten Fiscal Years
Total General Ratio of
Fund debt service
Fiscal Interest Total debt expenditures to general
year Principal (a) and fees service and transfers expenditures
2007 2,100,361 1,329,456 3,429,817 13,337,188 25.7
2008 2,205,441 1,255,313 3,460,754 14,277,498 24.2
2009 2,495,056 1,571,295 4,066,351 15,922,441 25.5
2010 2,685,606 1,350,620 4,036,226 16,372,540 24.7
2011 2,750,690 1,287,822 4,038,512 17,065,960 23.7
2012 2,780,776 2,691,426 5,472,202 5,747,963 95.2
2,966,441 1,244,233 4,210,674 6,933,972 60.7
3,645,950 2,107,198 5,753,148 6,621,593 86.9
2,646,040 3,120,449 5,766,489 7,497,680 76.9
2016 3,201,002 3,194,612 6,395,614 6,576,153 97.3
(a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of
term bonds.
Sources: Borough general ledger and debt documents.
2013
2015
2014
139
KODIAK ISLAND BOROUGH
Ratios of Outstanding Debt by Type
General Total Percent of
Obligation Notes Revenue Notes Primary Personal Per
Bonds Payable Bonds Payable Government Income Capita
29,163,349 77,470 — 1,636,924 30,877,743 6.57% 2,260
34,957,269 72,028 — 1,768,660 36,797,957 7.47% 2,637
32,534,424 66,505 — 1,864,503 34,465,432 6.29% 2,487
29,838,432 60,899 — 1,989,995 31,889,326 5.52% 2,346
35,124,211 55,209 — 2,735,778 37,915,198 6.13% 2,734
33,510,913 49,433 — 7,603,249 41,163,595 6.25% 2,932
55,236,114 42,992 18,817,320 7,346,324 81,442,750 12.07% 5,891
76,227,556 37,042 18,703,498 10,206,895 105,174,991 13.98% 7,623
73,131,566 31,002 17,984,677 9,908,184 101,055,429 12.51% 7,313
86,481,657 — 17,245,855 18,445,504 122,173,016 * 8,841
Note: Detail regarding the Borough's outstanding debt can be found in the notes to the financial statements.
* Information not available at report time.
Governmental Activities Business-type Activities
2015
Last Ten Fiscal Years
Fiscal
Year
2009
2016
2013
2007
2008
2012
2011
2010
2014
140
KODIAK ISLAND BOROUGH
Demographic and Economic Statistics
Last Ten Years
Per Capita Percentage
Calendar Personal Personal School Unemployment
Year Population (a) Income (c) Income (c) Enrollment (b) Rate (c)
2007 13,664 506,398,000 37,061 2,636 6.0
2008 13,954 548,099,000 39,279 2,671 6.6
2009 13,860 577,818,419 41,690 2,598 7.1
2010 13,592 578,018,380 42,526 2,567 7.4
2011 13,870 646,461,681 46,609 2,543 7.4
2012 14,041 671,556,096 47,828 2,517 6.7
13,824 673,348,788 48,709 2,513 6.2
13,797 752,337,000 54,529 2,468 5.7
13,819 807,817,000 58,457 2,446 4.9
2016 13,819 * * 2,437 *
Sources:
(a) State of Alaska, DCRA certified population.
(b)Alaska Dept of Education, Average Daily Membership by Fiscal Year at www.eed.state.ak.us/stats
(c)Bureau of Economic Analysis https://www.bea.gov
* Information not available at report time.
2015
2013
2014
—
5,000
10,000
15,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Borough Population and Student Count
Population (a)School Enrollment (b)
141
Fiscal Year 2007 Fiscal Year 2008 Fiscal Year 2009 Fiscal Year 2010
Average Average Average Average Average Average Average Average
Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly
Employment Earnings Employment Earnings Employment Earnings Employment Earnings
Total Industries 5,616 $ 3,060 5,803 $ 3,111 5,961 $ 3,100 5,961 $ 3,100
Private Ownership 4,160 2,979 4,340 3,006 4,485 2,956 4,485 2,956
Total Government 1,456 3,291 1,483 3,424 1,475 3,538 1,475 3,538
Private Goods-Producing 1,631 3,555 1,778 3,484 1,814 3,290 1,814 3,290
Private Service-Providing 2,529 2,608 2,562 3,006 2,671 2,730 2,671 2,730
Fiscal Year 2011 Fiscal Year 2012 Fiscal Year 2013 Fiscal Year 2014
Average Average Average Average Average Average Average Average
Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly
Employment Earnings Employment Earnings Employment Earnings Employment Earnings
Total Industries 6,416 $ 3,362 6,461 $ 3,488 6,411 $ 3,459 6,472 $ 3,575
Private Ownership 4,898 3,263 4,952 3,412 4,928 3,358 5,049 3,491
Total Government 1,518 3,681 1,501 3,742 1,483 3,795 1,423 3,875
Private Goods-Producing 2,113 3,619 2,193 3,801 2,138 3,704 2,219 3,831
Private Service-Providing 2,785 2,993 2,760 3,101 2,790 3,092 2,830 3,224
Fiscal Year 2015 Fiscal Year 2016
Average Average Average Average
Monthly Monthly Monthly Monthly
Employment Earnings Employment Earnings
Total Industries 6,524 $ 3,650 6,154 $ 3,292
Private Ownership 5,148 3,565 4,721 3,118
Total Government 1,377 3,966 1,433 3,867
Private Goods-Producing 2,268 3,832 2,012 2,766
Private Service-Providing 2,879 3,356 2,710 3,378
KODIAK ISLAND BOROUGH
Average Monthly Employment & Earnings
Last Ten Fiscal Years
142
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Land area - square miles 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130
Miles of improved street 25.6 25.6 25.6 25.6 25.6 26.1 26.1 26.1 26.1 26.1
Building permits:
Permits issued 190 190 192 208 204 167 219 155 193 216
Value of buildings (thousands) 12,058 33,145 15,007 16,445 30,832 10,171 91,619 36,652 36,216 10,866
Fire Protection:
Number of fire stations 2 2 2 2 2 2 2 2 2 2
Number of employees 1 1 1 1 1 1 1 1 1 1
Police Protection: none
(provided by the City of Kodiak within the city limits and by the State of Alaska outside the city boundaries.)
Recreation:
Parks (number of acres) 223 223 223 223 224 224 224 224 224 224
Facilities:
Number of playgrounds 15 15 15 15 16 16 16 16 16 16
Number of swimming pools 1 1 1 1 1 1 1 1 1 1
Public Education:
Number of schools:
Kodiak Area Elementary 4 4 4 4 4 4 4 4 4 4
Kodiak Area Middle School 1 1 1 1 1 1 1 1 1 1
Kodiak Area High School 1 1 1 1 1 1 1 1 1 1
Village Schools (a) 7 6 7 7 8 8 8 7 7 7
Number of support personnel (b) 202 205 217 217 215 215 193 181 187 200
Number of teachers (c) 209 218 203 218 201 201 207 162 166 170
Number of students (d) 2,636 2,671 2,598 2,567 2,543 2,543 2,513 2,468 2,446 2,437
Number of Municipal Employees 43 43 43 43 43 45 45 48 45 43
Sources: Borough Departments, Kodiak Island Borough School District and City of Kodiak
(a) The majority of Village Schools are grades K-12. (c) School district personnel figures include staffing from the General Fund and Grants.
(b) All non-teaching employees. (d) Alaska Dept of Education & Early Development, Average District Enrollment www.eed.state.ak.us/stats
KODIAK ISLAND BOROUGH
Miscellaneous Statistical Data
Last Ten Fiscal Years
143
KODIAK ISLAND BOROUGH
Property Value, Construction, and Bank Deposits
Last Ten Fiscal Years
Construction Property Value*
Commercial Residential
Fiscal No. of No. of
year permits Value permits Value Commercial Residential
2007 42 3,277,292 148 8,780,900 140,915,000 227,514,405 507,013,524
2008 53 25,269,361 129 7,875,188 139,416,000 275,369,008 542,272,300
2009 50 34,081,887 147 7,848,428 175,141,000 312,122,205 595,391,145
2010 52 4,756,124 156 11,689,178 192,000,000 327,248,533 661,630,592
2011 46 24,165,884 158 6,666,400 194,289,000 317,950,418 721,273,415
2012 48 5,693,295 119 4,477,641 227,392,000 345,529,161 738,505,519
59 85,969,566 160 5,649,717 230,391,000 364,353,810 767,122,801
44 33,062,171 111 3,589,833 252,999,000 386,480,100 788,418,800
61 31,146,134 141 5,644,907 239,000,000 402,319,200 800,640,400
2016 56 4,882,606 160 5,983,768 245,354,000 452,535,972 750,341,200
*Assessed value.
Sources: Borough assessing records and City of Kodiak building department and FDIC.
Deposits in
local banks
2015
2013
2014
—
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Deposits in Kodiak Banks
144
2007 2008 2009 2010 2011
Function:
General Government 24 27 31 29 29
Community and Economic Development 5 5 5 5 5
Municipal Solid Waste Collection and Disposal 7 7 7 7 7
Kodiak Fisheries Research Center 2 2 2 2 2
Total 38 41 45 43 43
2012 2013 2014 2015 2016
Function:
General Government 30 30 33 30 29
Community and Economic Development 6 6 5 4 5
Municipal Solid Waste Collection and Disposal 7 7 8 9 7
Kodiak Fisheries Research Center 2 2 2 2 2
Total 45 45 48 45 43
Source: Borough Finance Department
Full-time Equivalent Employees
as of June 30:
KODIAK ISLAND BOROUGH
Full-Time Equivalent Borough Employees by Function/Program
Last Ten Fiscal Years
145
KODIAK ISLAND BOROUGH
Operating Indicators by Function
Last Ten Fiscal Years
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Function
General Government
Elections
Number of registered voters 9,417 9,587 9,599 9,649 9,619 9,479 9,585 9,209 9,100 9,585
Number voting in last election 2,407 2,105 2,477 2,477 2,311 2,139 1,250 1,566 1,968 1,800
Percent of registered voters 26% 22% 26% 26% 24% 23% 13% 17% 22% 19%
Public Safety
Number of fire stations 2 2 2 2 2 2 2 2 2 2
Number of employees 1 1 1 1 1 1 1 1 1 1
Community and economic development
Zoning compliance permits issued 212 214 203 245 149 113 160 111 183 161
Junk cars removed 58 261 83 89 218 27 22 28 37 21
Primary and secondary education
Number of students 2,636 2,671 2,598 2,567 2,543 2,517 2,513 2,468 2,446 2,437
Number of General Fund certified staff 209 218 225 224 217 211 207 186 177 183
Number of General Fund classified staff 143 137 135 135 162 166 193 161 166 173
Solid waste disposal
Total solid waste disposal in tons 16,997 14,730 14,429 14,580 14,896 16,558 14,688 11,826 12,364 12,876
Baled waste in tons 10,831 10,843 10,212 10,527 10,846 10,153 11,535 10,005 8,900 10,454
Scrap metal in tons 282 360 205 282 260 147 251 172 205 221
Asbestos, cubic yards 166 112 324 218 230 116 399 390 362 219
Source: Borough Finance Department
146
Function program 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
GOVERNMENTAL ACTIVITIES
Number of buildings (teachery housing, schools and office buildings)19 18 18 18 18 19 19 19 19 21
Vehicles 9 10 13 13 15 15 15 14 14 11
Streets (miles) 25.6 25.6 25.6 25.6 25.6 26.1 26.1 26.1 26.1 26.1
Land area - square miles 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130
(provided by the City of Kodiak within the city limits and by the State of Alaska outside the city boundaries)
2 2 2 2 2 2 2 2 2 2
11 12 11 8 15 13 13 12 12 10
1 1 1 1 1 1 1 1 1 1
BUSINESS-TYPE ACTIVITES
Number of Baler Facilities (Landfills) 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1
- - - - - - - - - 1
223 223 223 223 224 224 224 224 224 224
1 1 1 1 1 1 1 1 1 1
15 15 15 15 16 16 16 16 16 16
1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1
Sources : Supplied by Kodiak Island Borough Department Heads
Notes : No capital asset indicators are available for the library function
A description of the Kodiak Island Borough's Capitalization and Depreciation policy
is included in the Notes To The Basic Financial Statements
Number of playgrounds
Number of Emergency response vehicles
Emergency Tsunami Shelters
Municipal Solid Waste
Community Health & Public Services
Mental Health Facilities
Long Term Care Center
Kodiak Island Research Facilities (marine research)
Dorm facility (6 apartments)
KODIAK ISLAND BOROUGH
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Parks (number of acres)
Facilities:
Hospital
Culture, Parks and Recreation
Roads
Police: none
Fire and Emergency Services
Number of fire stations
Number of Swimming Pools
147