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2019-03-11
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2019-03-11
AGENDA ITEM #2.c.
KODIAK ISLAND BOROUGH
STAFF REPORT
APRIL 4, 2019
ASSEMBLY REGULAR MEETING
SUBJECT:
ORIGINATOR:
RECOMMENDATION:
DISCUSSION:
ALTERNATIVES:
FISCAL IMPACT:
OTHER INFORMATION:
AGENDA ITEM #2.c.
1
2
3
4
5
6
7 KODIAK ISLAND BOROUGH
8 ORDINANCENO. FY2019-14
9
10 AN ORDINANCEOF THE ASSEMBLY OF THE KODIAK ISLANDBOROUGHAMENDING
11 KODIAK ISLAND BOROUGH CODE OF ORDINANCES TITLE 3 REVENUE AND FINANCE
12 CHAPTER 3.45 SEVERANCE TAXSECTION 3.45.020 RESOURCES SUBJECT TO TAX
13 SETTING AN EXCISE TAX RATE
14
15 WHEREAS,
16
17
18 WHEREAS,
19
20 WHEREAS,
21
22
23 WHEREAS,
24
25
26 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
27 BOROUGH THAT:
28
29 Section 1:
30
31
32 Section 2:
33
34
35 3.45.020Resources subject to tax.
36
37
38 0.01075
39
40
41
42
43
44
AGENDA ITEM #2.c.
45
46
47
48
49
50 Effective Date: midnight on June 30, 2019
51
52 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
53 THIS __________ DAY OF _______________, 2019.
54
55
56
57
58
59
60
61 VOTES:
62
63
AGENDA ITEM #2.d.
KODIAK ISLAND BOROUGH
STAFF REPORT
APRIL 4, 2019
ASSEMBLY REGULAR MEETING
SUBJECT:
ORIGINATOR:
RECOMMENDATION:
DISCUSSION:
ALTERNATIVES:
FISCAL IMPACT:
OTHER INFORMATION:
AGENDA ITEM #2.d.
1
2
3
4
5
6 KODIAK ISLAND BOROUGH
7 ORDINANCENO.FY2019-17
8
9 AN ORDINANCEOF THE ASSEMBLY OF THE KODIAK ISLANDBOROUGHESTABLISHING
10 AN ENTERPRISE FUND FOR THE RESEARCH COURT APARTMENTS (FORMERLY KNOWN
11 AS KODIAK FISHERIES RESEARCH CENTER (KFRC)DORMS)
12
13 WHEREAS,
14
15
16 WHEREAS,
17
18 WHEREAS,
19
20
21 WHEREAS,
22
23
24 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
25 BOROUGH THAT:
26
27 Section 1:
28
29
30 Section 2:
31
32
33
34 Effective Date:
35
36 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
37 THIS __________ DAY OF _______________, 2019.
38
39
40
41
42
43
44 VOTES:
45
46
• Kodiak Island Borough )S W V V 10.r F�J-`
01
�I►q
Maximum Local Tax Revenue Computation ss IICCJJ--�� sys
FY20 Budget)1ul 2019 -Jun 2020) '102
Area -Wide Non -Exempt W'�y--`- Area -Wide Exempt vy Nan Area -Wide
3 funds Man 100, Educ 201. R l 4691 1 fund (debt service 3001 30 funds (see attachedl
TY2018 Real&personal pmpertytaxes lamed befa re Ma ndalory Exemptions ,5 35263,173 .5...7424227 51,758,1
Less: Exemption for Owner Non-Profit/Native IFedcral&State mandate) 6 22.OD.353 5 4.638.643 5156.980
INab 11
12,342,952
Plus: Estimated FY2019 Tax revenues for
Excise - Tobacco
...........
Debt Service in FY2020
..... . ---- - - --- ----- -----
Debt Service Prinupal Interest g Service Payments $ 7..734,543
..... ..... ..... ....... .....- . ......-...--.. ._-.. .. .... .... .... ......
Debt Service Reimbursements Received
1.I'll.. .. ............ ................. _ ....._... ......... ...-- .... .. _,.... .... .. .... - ......
Ad ustments (Note 31 $ $ 7,734,543
Adjusted oiler year taxes levied, plus all other tax revenues
$ 14,253,452
$ 98,000
1,467,7]3
$ 98,000
$ 1,565,773
D. Plus: Adjustment for inflation (2018 Inflation Rate using the Anchorage
Consumer Price index - Urban =30%) 3.00% $ 42],604 $ 46,973
............ ................. ........... ......... _. _.. _. ...........-............. .....-..............
E. 2019 Maximum local Tax Revenue Allowed, Belpre Exclusions $ 14,681,056 $ 1,612,746
2020 Debt Service, Before Exclusions $ 7,734,543
F. Plus Exclusions for:
1 Taxes on New Construction/Improvements
.......... ..... ..... __ _.__ .. _-.
2 FY2019 Debt Service less reimbursements pdjmt for Fy17 vet.)
3 Velar Approved Services
G. 2019 Maximum Local Tax Revenue Allowed (for FY2020 Budget)
2019 Debt Service Allowed (for FY2020 Budget)
Estimated FY2020 Budgeted Taxes
S 14,681,056
Severance -Timber $ 30,000
...........-..._..... .................... .-- .-........ ,............ .. -. .- .....
Severance -Mineral (gravel) . 4,000
Sales -Transient Accommodations (Excluding City of Larsen Say)
2019 Maximum Local Tax Revenue Allowed (for FY2020 Budget)
M019 Estimated Taxable Assessed Value at 3/06/19
Estimated Mill Rate
$ 1,406,767,134
S 14,681,056
10A4
Estimated Combined Area -Wide Mill Rate 15.93
5 7,734,543
5.50
$ 1,612,746
$ 100,000
$ 1,612,746
Note l: Fortax levy purposes, exemptions are estimated. Due to these estimations, deficient or excess taxes may be unintentionally levied. Any deficiencies or excesses levied in a tax year will be adjusted for In the
following year.
Note 2: For budgeting purposes, revenues are estimated. Due to these estimations, deficient or excess taxes may be unintentionally budgeted. Any deficiencies or excesses budgeted In a tax year wll be adjusted for in the
following year.
Note 3: For budgeting purposes, principal and Interest payments follow the currentrepaymentschedules. Any changes in the schedule due to defeasem.mo,refunding, new Issues or State cutswlll be adjusted far In the
followingyear.
KODIAK ISLAND BOROUGH
INITIATIVE ORDINANCE NO. FY2018-01
This Initiative Proposes A Ballot Measure Which, If Passed By The Voters, Would Enact
Section 3.25.030 Of The Kodiak Island Borough Code Of Ordinances. The Section Will
Provide For Limitations On The Maximum Allowable Tax Revenues For The Kodiak Island
Borough. The Borough Will Be Able To Levy Or Impose Only The Same Amount Of Taxes
For One Fiscal Year As The Borough Levied Or Imposed For The Preceding Year, Except
That The Borough Can Increase The Amount Of Taxes Levied Or Imposed
(a) To Adjust For Inflation
(b) To Take Into Account New Buildings And Land Coming Onto The Tax Rolls
(c) Make New Payments On Bonds
(d) Pay For Services Approved By Voters
(e) Pay For New Legal Judgments Entered Against The Borough; and
(f) Pay For Expenses In Emergencies
Be it ordained that, if adopted by the voters of the Kodiak Island Borough, this initiative ordinance
shall enact Title 3 Revenue and Finance, Section 3.25.030 Maximum allowable tax revenues as
follows:
3.25.030 Maximum allowable tax revenues.
A. Except as provided in this section, the total amount of taxes that can be levied or imposed
during a fiscal year shall not exceed the total amount approved by the borough assembly for
the preceding year by more than a percentage determined by adding the percentage increase
in the Consumer Price Index for Kodiak (or the Federal Consumer Price Index for Anchorage
if there is none available for Kodiak) from the preceding fiscal year.
B. The limitations set forth in subsection (A) of this section do not apply to the following:
1. Tax on new construction or property improvements which occur during the current
fiscal year;
2. Any appropriation made to pay or secure payment of principal and/or interest on
bonds:
3. Taxes required to fund services authorized by voter -approved ballot issues,
4. Funding of new judgments entered against the Kodiak Island Borough;
5. Special appropriations necessary on an emergency basis to fund unavoidable
expenses ensuring the public peace, health or safety.
C. The borough assembly shall use the formula and definitions for computation of the total
amount of borough tax that can be levied or imposed by applying the provisions in this section
and shall, by May 31 st of each fiscal year, publish its calculations showing these computations
for each taxing jurisdiction.
D. The maximum tax revenue allowed under this section is computed for the next fiscal year as
follows:
Formula. The formula for the computation of maximum allowable tax revenue is:
(A-B)+D+F=G
where:
"A"equals the amount of tax revenue derived from actual taxes levied on taxable real and
personal property in each taxing jurisdiction in the current fiscal year and all other tax
revenues;
"B" equals the amount of the actual payment of principal and interest on bonds made in
the current fiscal year, less actual state reimbursement for school construction debt;
"D" is product of the percentage change in the Consumer Price Index for All Urban
Consumers (CPI -U) for Kodiak, Alaska, (or for Anchorage, Alaska, if not available for
Kodiak) during the prior fiscal year (CPI) and the net taxes levied (A- B) in the current
fiscal year;
7" equals the total amount of all exclusions under subsection (8), and is the sum of all
the following:
F.1. The taxes on new construction or property improvements equal the projected
tax revenue from the value of that new construction or property
improvements, computed by multiplying the tax rate applied to properties in
that taxing jurisdiction during the current fiscal year by the assessed value of
the new construction and property improvements;
F.2. The principal and interest due in the next fiscal year on bonds, less state
reimbursement for school construction debt, plus any over -adjustment or
under -adjustment to actual reimbursement from the current year;
F.3. Taxes to provide voter -approved services;
F.4. Taxes for new judgments;
F.5. Special appropriations necessary on an emergency basis;
"G" equals the maximum allowable tax revenue for the next fiscal year.
E. The point in time to use for the proper calculation of allowable property tax mill rates, for all
taxing jurisdictions, shall be the next tax rolls as certified by the borough assessor on July 1 st
of each year. This specific point in time shall be utilized for both the figures in the prior year
and the current year.
F. As used in this section, the following definitions apply:
"Current fiscal year" is the fiscal year during which the next fiscal year budget is prepared.
"Emergency" is the imminent threat of or the occurrence of widespread damage, injury, or loss of
life resulting from any natural or manmade cause, including, but not limited to, fire, explosion,
flood, earthquake, landslide, mud slide, volcanic activity, avalanche, weather conditions,
epidemic, blight, infestation, riot, loss of public utilities, shortage of food, water, fuel or clothing,
or the accidental release or discharge of toxic substances or hazardous substances.
"Emergency" does not include appropriations for the normal operations of a service area or the
Department of Health and Safety.
"Fiscal year" means the fiscal year (July 1st through June 30th) for the Kodiak Island Borough.
"New construction or property improvements" means any improvement which generates a
Taxable value not on the tax roll for the current assessment year, including but not limited to:
1. Construction which increases the value of the property;
2. Any change in the status of land.
"New judgment" means the judgment reserved sufficient to cover the total cost of all judgments
and arbitration awards during the next fiscal year, including:
1. Principal, interests, fees and costs;
2. Additional services which may be required by a court order.
"Next fiscal year" is the fiscal year following the current fiscal year and for which the new budget
is being prepared.
"Prior fiscal year" is the fiscal year immediately preceding the current fiscal year.
"Taxing jurisdiction" means a taxing unit of the Kodiak Island Borough. A service area is a taxing
jurisdiction.
"Voter -approved services" includes but is not limited to:
1. A service specifically authorized by the voters of a taxing jurisdiction in any ballot
issue;
2. Programs directly related to voter -approved capital projects which are in addition
to services in the current fiscal year budget;
3. Services added by the creation or alteration of the boundaries of a taxing
jurisdiction if the creation or alteration of the boundaries of said taxing jurisdiction
were approved by the voters of said taxing jurisdiction. Taxes required to provide
a "voter -approved service" are the estimated first full -year costs of voter -approved
services less revenue other than taxes projected to be generated from the voter -
approved services, for the number of months in the next fiscal year for which the
voter -approved service will be provided.
Kodiak Island Borough
General Obligation Bonded Debt
2020 Projected School Debt Service
updated 2 8 19
Arbitrage Reporting $ 3,150 Arbitrage Reporting $ 3,150
Gross bond payments $ 7,734,543
Adjusted net bond payments $ 2,471,490
Payoff
Gross
Rate of
Net
Bond
Date
principal
Interest
Bond Pmts
Reimbursement
Reimbursements
Bond Pmts
2011
2031
$
355,000
$
267,800
$
622,800
70%
$
435,960
$
186,840
2012A
2025
$
495,000
$
150,425
$
645,425
blended
$
444,161
$
201,264
2012B
2025
$
610,000
$
183,600
$
793,600
60%
$
476,160
$
317,440
2013
2033
$
895,000
$
792,590
$
1,687,590
70%
$
1,181,313
$
506,277
2014
2034
$
900,000
$
875,113
$
1,775,113
70%
$
1,242,579
$
532,534
2015A
2036
$
215,000
$
276,838
$
491,838
70%
$
344,286
$
147,551
2015B
2026
$
160,000
$
62,500
$
222,500
70%
$
155,750
$
66,750
2016A
2036
$
70,000
$
62,169
$
132,169
70%
$
92,518
$
39,651
2016B
2026
$
490,000
$
187,750
$
677,750
70%
$
474,425
$
203,325
2016C
2028
$
415,000
$
204,250
$
619,250
60%
$
371,550
$
247,700
AMBBA 2018
2029
$
50,000
$
13,359
$
63,359
70%
$
44,351
$
19,008
$
4,655,000
$
3,076,393
$
7,731,393
$
5,263,053
$
2,468,340
Arbitrage Reporting $ 3,150 Arbitrage Reporting $ 3,150
Gross bond payments $ 7,734,543
Adjusted net bond payments $ 2,471,490
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consumer race moex
[Department of Labor / Research and Analysis Section]
Consumer Price Index (CPI)
Consumer Price Index for Urban Alaska (formerly Municipality of Anchorage) and the U.S.
Not Seasonally Adjusted - All Items - Urban Consumers
1960 -Present
Note: the percent change is from the same period of the previous year.
hffn Ulive lohnrclofc alae4e nnv/rnilinrlev rfm �l•
Urban Alaska
U.S.
Year
1st Half
Percent
Change
2nd Half
Percent
Change
Annual
Percent
Change
1st Half
Percent
Change
2nd Half
Percent
Change
Annual
Percent
Change
2018
223.099
2.1
227.992
4.0
225.545
3.0
250.089
2.5
252.125
2.4
251.107
2.4
2017
218.616
0.7
219.131
0.2
218.873
0.5
244.076
2.2
246.163
2.0
245.120
2.1
2016
216.999
-0.1
218.660
0.9
217.830
0.4
238.778
1.1
241.237
1.5
240.007
1.3
2015
217.111
1.1
216.706
-0.1
216.909
0.5
236.265
-0.1
237.769
0.3
237.017
0.1
2014
214.777
1.9
216.833
1.4
215.805
1 1.6
236.384
1 1.7
237.088
1.5
1 236.736
1.6
2013
210.853
2.7
213.910
3.5
212.381
3.1
232.366
1.5
233.548
1 1.4
232.957
1.5
2012
205.215
2.5
206.617
2.0
205.916
2.2
228.850
2.3
230.338
1.8
229.594
2.1
2011
200.278
2.8
202.576
3.6
201.427
3.2
223.598
2.8
226.280
3.5
224.939
3.2
2010
194.834
2.5
195.455
1.0
195.144
1.8
217.535
2.1
218.576
1.2
218056
1.6
2009
190.032
1.3
193.456
1.1
191.744
1.2
213.139
-0.6
215.935
-0.1
214.537
-0.4
2008
187.659
4.6
191.335
4.5
189.497
4.6
214.429
4.2
216.177
3.4
215.303
3.8
2007
179.394
1.5
183.080
2.9
181.237
2.2
205.709
2.5
208.976
3.1
207.342
2.8
2006
176.700
4.2
177.900
2.2
177.300
3.2
200.600
3.8
202.600
2.6
201.600
3.2
2005
169.600
2.4
174.100
3.8
171.800
3.1
193.200
3.0
197.400
3.8
195.300
3.4
2004
165.600
2.8
167,800
2.4
166,700
2.6
187.600
2.3
190.200
3.0
188.900
2.7
2003
161.100
2.3
163.900
3.1
162.500
2.7
183.300
2.5
184.600
2.0
184.000
2.3
2002
157.500
2.0
159.000
1.9
158.200
1.9
178.900
1.3
180.900
1.9
179.900
1.6
2001
154.400
2.9
156.000
2.7
155.200
2.8
176.600
3.4
177.500
2.2
177.100
2.8
2000
150.000
0.9
151.900
2.4
150.900
1.7
170.800
3.3
173.600
3.5
172.200
3.4
1999
148.600
1.3
148.300
0.9
148.400
1.0
165.400
1.9
167.800
2.5
166.600
2.2
1998
146.700
1.8
147.000
1.1
146.900
1.5
162.300
1.5
163.700
1.6
163.000
1.6
1997
144.100
1.6
145.400
1.2
144.800
1.5
159.900
2.6
161.200
2.1
160.500
2.3
1996
141.800
2.6
143.700
3.0
142.700
2.7
155.800
2.8
157.900
3.1
156.900
3.0
1995
138.200
2.9
139.500
2.7
138.900
2.9
151.500
2.9
153.200
2.6
152.400
2.8
1994
134.300
2.1
135.800
2.3
135.000
2.1
147.200
2.4
149.300
2.8
148.200
2.6
1993
131.500
3.3
132.800
2.9
132.200
3.1
143.700
3.2
145.300
2.8
144.500
3.0
1992
127.300
3.2
129.100
3.5
128.200
3.4
139.200
3.0
141.400
3.1
140.300
3.0
1991
123.300
5.5
124.700
3.6
124.000
4.6
135.200
5.1
137.200
3.5
136.200
4.2
1990
116.900
5.4
120.400
7.0
118.600
6.2
128.700
4.9
132.600
5.8
130.700
5.4
1989
110,900
2.3
112.500
3.3
111.700
2.9
122.700
5.1
125.300
4.7
124.000
4.8
1988
108.400
0.1
108.900
0.7
108.600
0.4
116.800
3.9
119.700
4.2
118.300
4.1
1987
108.300
0.0
108.100
0.7
108.200
0.4
112.400
3.0
114.900
4.4
113.600
3.6
1986
108.300
3.4
107.400
0.5
107.800
1.9
109.100
2.3
110.100
1.5
109.600
1.9
1985
104.700
1.9
106.900
2.9
105.800
2.4
106.600
3.6
108.500
3.4
107.600
3.6
1984
102.700
103.900
103.300
4.1
102.900
104.900
103.900
4.3
1983
99.200
1.8
99.600
3.2
1982
97.400
5.4
96.500
6.2
1981
92.400
8.1
90.900
10.3
1980
85.500
10.2
82.400
13.5
1979
77.600
10.5
72.600
11.3
hffn Ulive lohnrclofc alae4e nnv/rnilinrlev rfm �l•
KODIAK ISLAND BOROUGH
Meeting Type: Lsembly IAIDYK S-esooo Date: 03 IyI"zp/5
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