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2019 Annual Operating Budget BookKodiak Island Borough, Alaska 2018-2019 Annual Operating Budget Photo by Carl Royall i KODIAK ISLAND BOROUGH, ALASKA ANNUAL ADOPTED BUDGET FISCAL YEAR ENDING JUNE 30, 2019 AS SUBMITTED BY Michael Powers BOROUGH MANAGER March 29, 2018 AND ADOPTED BY THE BOROUGH ASSEMBLY May 15, 2018 BOROUGH ASSEMBLY Mayor Dan Rohrer Assembly Members Kyle Crow Julie Kavanaugh Andy Schroeder Rebecca Skinner Scott Smiley Dennis Symmons Matthew Van Daele ii This page is intentionally left blank. Table of Contents iii Contact information for meetings, elected officials, service areas and list of boards….… v 10 Common Budget Questions .................. ix Introduction ................................................. 1 Budget Award ............................................ 1 Mission Statement, Vision Statement and Strategic Plan …………………………………………. 2 Organizational Chart .................................. 4 Community Profile and Demographics. ….. 7 Budget Overview ....................................... 11 Budget Message ........................................ 11 Budget Calendar ........................................ 22 Budget Process Overview .......................... 23 Financial Summaries .................................... 25 Fund Structure ........................................... 25 Fund Matrix ............................................... 26 Fund Summary ........................................... 31 Mill Rates ................................................... 35 General Fund ................................................ 37 General Fund Revenue Sources and General Fund Estimates ........................................... 38 General Fund Revenue ............................... 46 Summary of General Fund Expenditures by Department ................................................ 48 Summary of General Fund Expenditures by Function ...................................................... 49 Borough Assembly ...................................... 50 Manager’s Office ........................................ 52 Clerk’s Office .............................................. 54 Legal Services ............................................. 57 Finance ....................................................... 58 Information Technology Services ............... 60 Assessing .................................................... 62 Engineering and Facilities .......................... 64 Community Development .......................... 66 Building Inspection ..................................... 70 Economic Development ............................. 72 General Administration .............................. 73 Parks and Recreation .................................. 74 Emergency Preparedness ........................... 75 Animal Control............................................ 76 Education, Culture and Recreation ............ 78 Contributions to Kodiak College and Libraries .................................................................... 79 Non-Profit Funding ..................................... 80 Transfers ..................................................... 82 Special Revenue Funds ................................. 83 Special Revenue Sources and Special Revenue Fund Estimates ............................................ 84 Special Revenue Funds Recap ..................... 86 Education Support....................................... 88 Land Sales Fund – Resource Management ............................................... 90 Buildings and Grounds Summary ................ 92 Buildings and Grounds – Borough Building ......................................... 93 Buildings and Grounds – Mental Health Center ................................. 94 Buildings and Grounds – Closed Schools ............................................. 95 Buildings and Grounds – School Building Major Repairs .................... 96 Buildings and Grounds – Various Borough Buildings .......................... 97 Buildings and Grounds – Projects Office ............................................. 98 Local Emergency Planning Committee ....... 100 Womens Bay Road Service Area ................. 102 Service Area No. 1 ....................................... 104 Service Area No. 2 ....................................... 105 Monashka Bay Road Service Area ............... 108 Bay View Road Service Area ........................ 110 Fire Protection Area No. 1 (Bayside Fire Department) .......................... 111 Womens Bay Fire Department .................... 114 Kodiak Island Borough Airport Fire Protection District ....................................... 116 Woodland Acres Streetlight Service Area ................................................ 117 Trinity Islands Streetlight Service Area ................................................ 118 Mission Lake Tide Gate Service Area ................................................ 119 Facilities Fund .............................................. 120 Tourism Development................................. 122 Fern Fuller Trust .......................................... 124 Debt Service Fund ......................................... 125 Capital Projects Funds ................................... 141 Enterprise Funds ........................................... 181 Municipal Solid Waste Collection and Disposal ............................... 183 Hospital Facilities ........................................ 186 Long-Term Care Center ............................... 188 Kodiak Fisheries Research Center ............... 190 911 Services ................................................ 192 Table of Contents iv Appendix ....................................................... 193 Acronyms ……………………………………………… 193 Glossary ……………………………………………… 194 Location of Assembly Work Sessions Map ................................... 200 v Kodiak Island Borough Fiscal Year 2019 Contact Information Assembly Meetings Assembly meetings are held on the second and fourth Thursdays of each month at 6:30 p.m. Regular meetings can be viewed live via internet streaming or viewed as a recording which is accessible through the Borough website. Assembly work sessions have voice recordings which can be accessed through the borough website. Meeting agendas can be heard by listening to a recorded message or can be viewed on the Borough website. Meeting locations: Regular meetings – held in the Assembly Chambers*, 710 Mill Bay Road Work Session meetings – held in the school district conference room*, 722 Mill Bay Road * Map of meeting locations can be found in the Appendix Meeting information: Phone agenda recordings: 907.486.3231 Borough Website is: http://www.kodiakak.us Elected Officials Name Office Term Ends Email Phone Dan Rohrer Mayor 2019 dan.rohrer@kibassembly.org 907-539-5838 Kyle Crow Assembly Member 2018 kyle.crow@kibassembly.org 907-738-9283 Julie Kavanaugh Assembly Member 2020 julie.kavanaugh@kibassembly.org 907-942-0058 Andy Schroeder Assembly Member 2020 andy.schroeder@kibassembly.org 907-539-1979 Rebecca Skinner Assembly Member 2020 rebecca.skinner@kibassembly.org 907-512-0467 Scott Smiley Assembly Member 2019 scott.smiley@kibassembly.org 907-942-0184 Dennis Symmons Assembly Member 2018 dennis.symmons@kibassembly.org 907-654-1045 Matthew Van Daele Assembly Member 2019 matthew.vandaele@kibassembly.org 907-942-5155 Borough Departments De pa rtme nt Director Email Phone Borough Manager Michael Powers mpowers@kodiakak.us 907-486-9302 Borough Clerk Nova Javier njavier@kodiakak.us 907-486-9310 Assessing Bill Roberts broberts@kodiakak.us 907-486-9353 Finance / IT Dora Cross dcross@kodiakak.us 907-486-9323 Engineering/Facilities Phil Kovacs pkovacs@kodiakak.us 907-486-9343 Community Development Sara Fraser smason@kodiakak.us 907-486-9363 Bayside Fire Dept. Howard Rue, III hrue@kodiakak.us 907-486-4536 vi Kodiak Island Borough Fiscal Year 2019 Contact Information Service Areas with Active Boards Board Chair Service Area Em a il Phone Reed Oswalt Bay View Road Service mroswalt@alaskan.com 907-486-4486 Paul VanDyke Fire Protection Area #1 kodpvd@gmail.com 907-942-2904 Andrew Dano Monashka Bay Road Service trashfish@gci.net 907-486-6823 Scott Arndt Service Area #1 n/a 414-791-3745 George Lee Womens Bay Service niifauto74@yahoo.com 907-539-7500 Craig Johnson Mission Lake Tide Gate craig.johnson@edwardjones.com 907-654-7712 Service Areas with Inactive Boards Airport Fire Protection Service Area Service Area #2 Trinity Islands Street Light Service Area Woodland Acres Street Light Service Area Advisory Boards Architectural/Engineering Review Board / Building Code Board of Appeals (as needed) Citizens Board of Equalization (BOE) Joint Building Code Review Committee (as needed) Kodiak Fisheries Advisory Committee Kodiak Fisheries Work Group Lands Committee Marijuana Task Force Parks & Recreation Committee Planning & Zoning Commission (P&Z) Solid Waste Advisory Board (SWAB) vii WHO CAN I CONTACT FOR THESE FREQUENTLY ASKED QUESTIONS? Assessing Department 907-486-9353 What is the assessed value of a property? What if I disagree about the assessed value of my property? What if I need specific information on a property, like lot size or property lines? What kinds of exemptions on property taxes are available? Where can I apply for an exemption on my property taxes? Where do I change my address for my tax statement? Who do I notify of a property sale? What documents are required to change the ownership of a property? How is the assessed value of my property determined? Clerk’s Office 907-486-9310 Where can I put in a public information request? Where do I go to contact the Assembly? Where do I go to register to vote? Where do I go to run for a Borough elected office? Where do I vote in municipal elections? Where do I find public meeting information? Where can I find a list of boards and commissions? Community Development Department 907-486-9363 Who do I contact about planning and zoning regulations? How do I get a zoning compliance permit? How do I report a code violation? Who do I contact about the animal control program? How do I contact the Planning & Zoning Commission? Who do I contact about the GIS program? Who do I contact about maps? Engineering and Facilities Department 907-486-9343 Who do I contact about the landfill or leachate treatment plant? Who do I contact about my garbage pickup service? Who do I contact about ongoing or upcoming capital improvement projects? Who do I contact about Borough maintained roads? Who do I contact about Borough maintained buildings? Finance Department 907-486-9323 When are my property taxes due? Where do I go to pay for my property taxes, severance, transient accommodations or excise taxes? How can I pay for my property taxes, severance, transient accommodations or excise taxes? Where can I get more information about severance, transient accommodations or excise taxes? Where can I get a copy of the annual budget, annual popular report or annual financial report? viii WHO CAN I CONTACT FOR THESE FREQUENTLY ASKED QUESTIONS? – CON’T Manager’s Office 907-486-9301 Who do I contact about employment? Who do I contact about the Borough’s website? How do I contact the Borough manager? Burn Permits Bayside Fire Department – 907-486-4536 Women’s Bay Volunteer Fire Department – 907-487-4312 Other Miscellaneous Questions Who do I contact about City sales tax? – City of Kodiak 907-486-8650 Who do I contact about City water/sewer service? – City of Kodiak 907-486-8650 Who do I contact about any building, electrical or plumbing permits? – City of Kodiak 907-486-8070 (The Borough contracts with the City for permit and inspection services) ix Common Questions About the Budget What is the Borough’s tax rate? – Page 45 What’s the total budget of the Borough? – Page 24 How much revenue comes from property taxes? – Page 57 What are other sources of revenue for the Borough? – Page 57 What percentage of the budget is spent on education? – Page 100 How much will road service/fire service spend in my district? – Pages 114-129 What are the reserves (or fund balances) of the Borough? – Page 41 How many employees work for the Borough and in which department? – Page 13 Does the Borough have a financial policy that guides how funds are reported, invested and audited? – Page 34 Where can I find definitions and acronyms? – Pages Where can I find population and other demographic information about the Kodiak Island Borough? – Page 25 x This page is intentionally left blank. 1 Government Finance Officers Distinguished Budget Presentation Award The Kodiak Island Borough has been a participant in the Distinguished Budget Presentation Award program since FY1990. The Borough has received the Distinguished Budget Presentation Award for all of our budgets from FY1991 through FY2018 and will be submitting the FY2019 budget to the GFOA for evaluation 2 Kodiak Island Borough Mission Statement Our mission is to provide quality service to the public in a fiscally responsible manner while fulfilling Borough responsibilities and exercising powers required by Alaska Statute Title 29 and the Kodiak Island Borough Code of Ordinances. Vision Statement Our vision is that the Kodiak Island Borough government is trusted and respected as a leader in providing the highest quality of services to the public in a cost effective, efficient manner that is open, dynamic, and focused. Strategic Plan (Fiscal Years 2018-2023) Purpose The Kodiak Island Borough government exists to provide effective and efficient government services within our powers and duties that will improve the quality of life in our community. Envisioned Future 2030 Citizens have entrusted the Kodiak Island Borough government with powers that promote a vibrant, diverse, and healthy economy and community centered on Kodiak’s unique assets like our natural resources, people, and history. This includes a focus on a reasonable cost of living and a great quality of life where diverse cultures and viewpoints come together, and an engaged community of citizens who are working, living, and thriving together. Strategic Direction 1. Encourage land and natural resources management for maximum benefit of Borough citizens. a. Review Comprehensive Plan to ensure it is current and accurate, then develop land plan consistent with the Comprehensive Plan to maximize potential for our community’s economic growth and quality of life. b. Create a long range natural resource development plan. 2. Optimize the effective use of community resources and assets through partnerships for the benefit of Borough citizens. a. Explore ways to collaborate with local governments to capitalize on community partnerships through fostering positive relationships with cities, school district, service areas, tribes and rural communities within the borough. b. Work in partnership with State and Federal Agencies. c. Promote a culture of public trust of elected officials, appointed officials, and staff through involvement of all citizens, and strive to ensure all citizens feel comfortable, empowered and desirous of participating in local government. 3 3. Foster responsible economic growth throughout the Borough. a. Promote economic development policies that enhance a diverse economy and business development. b. Advocate for a healthy and vibrant fisheries industry. c. Advocate for enhancement of local resources such as Kodiak based seafood and marine science and education opportunities, tourism, agriculture, energy, Pacific Space Port, mineral extraction, etc. d. Encourage options to meet the local need for housing affordable for citizens with financial capacities. 4. Promote fiscal policies that ensure stability and responsible government. a. The Borough Assembly will be prudent in deliberations on revenue required to fund Borough operations. b. Balance expenditures to revenues on an annual basis to ensure the health of our community. c. Foster public understanding of borough finances and operations. d. Periodically review the long-term solid waste plan and revise as necessary. 5. Promote efficient, effective and responsive processes reflective of a high-performing government. a. Evaluate opportunities for restructuring local government (e.g., consolidation or other options available under Alaska law). b. Understand the service area boards activities and borough’s responsibility in regards to service area boards. c. Seek ways to integrate committees in borough and city that maximize participation and capacity. d. Provide clear and concise direction to committees on an annual basis. 2018 Priorities (Not in Priority Order) 1. Focus on staffing structure and ensure a smooth transition for new key leaders. 2. Establish expectations and accountability for each committee, and ensure codes and roles are clear and understood by members. 3. Explore ways to collaborate with local governments to capitalize on community partnerships through fostering positive relationships with cities, school district, service areas, tribes and rural communities within the borough, seek opportunities for restructuring or consolidation with expectations to have a report at year’s end on opportunities for restructuring or consolidation and progress made on joint committees, shared staffing. 4. Identify potential policies for adoption to enhance economic development. 5. Develop a catalog of all available land to begin the process of developing a comprehensive land plan. 6. Look into cost of securing specialist(s) to forecast and recommend the most viable economic strategies. 4 5 Kodiak Island Borough Fiscal Year 2019 Personnel Summary Department FTE Assessing 5.0 Clerks 3.0 Community Development 6.0 Engineering & Facilities 16.0 Finance 7.5 Information Technology 2.5 Managers 6.0 46 Assessing 11% Clerks 7% Community Development 13% Engineering & Facilities 35% Finance 16% Information Technology 5% Managers 13% 6 This page is intentionally left blank. 7 COMMUNITY PROFILE AND DEMOGRAPHICS Location Kodiak is the largest island in the State of Alaska and the second largest in the United States; second only to the Big Island of Hawaii. The island lies at the western border of the Gulf of Alaska, about 40 miles south of the Kenai Peninsula and approximately 240 miles south of Anchorage. Nearly two-thirds of the Borough lies in the Kodiak Archipelago, which includes Kodiak Island and several smaller outlying islands. One-third of the Borough is on the Alaska Peninsula, across the Shelikof Strait from Kodiak Island. The Borough encompasses a total of 7,130 square miles, making it slightly smaller than the state of Massachusetts. Accessible only by boat or plane, the Kodiak Island Borough faces unique challenges in providing services to its residents. 8 Form of Government The Kodiak Island Borough is a second-class borough and currently operates under a manger form of government. The Manager is hired by the Assembly and oversees the day-to-day affairs of the Borough. The Assembly is comprised of seven members elected by the public to govern the Borough. The Borough Mayor, also elected by the people, presides over the Assembly, votes only in the case of a tie and serves as a ceremonial figure for certain Borough affairs. The term of office for both assembly members and the Mayor is three years. The day-to-day business of the Borough is conducted within six departments: Manager’s Office, Clerk’s Office, Finance (including IT), Assessing, Community Development, and Engineering/Facilities. The Borough was incorporated in September 1963, as a Second-Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended. Per AS 29.35.210, the powers of a second-class borough include providing transportation systems; regulating the sales and use of fireworks; licensing, impounding, and disposing of animals; providing garbage, solid waste, and septic waste collection and disposal; providing water and air pollution control; participating in federal or state loan programs for housing rehabilitation and improvement for energy conservation; providing for economic development; providing for the acquisition and construction of local service roads and trails; establishing an emergency services communications center; and regulating the licensing and operation of motor vehicles and operators. A second-class borough may also issue bonds to finance or make loans to finance the acquisition, construction, rehabilitation or development of public improvements. The Kodiak Island Borough has also adopted health care powers under rules outlined in AS 29.35.300. Population The general population of the Kodiak Island Borough has fluctuated between 13,000 and 14,000 with most of the population located in and around the City of Kodiak. Five other villages are located throughout the archipelago, all accessible only by small commuter aircraft or boat. Economic Condition and Outlook The economic condition of the Kodiak Island Borough remains resilient. The main industries within the Borough are commercial fishing, tourism, government and community support services. The backbone of the Kodiak economy is, and has been, the seafood industry. This industry includes commercial fishing, fisheries research, management and enforcement, seafood processing, and maintenance and support services. While some segments of the commercial fishing industry have declined over time such as crab fisheries, others, like kelp harvesting have grown. The Port of Kodiak has room for over 600 vessels and consistently has ranked in the top ten ports in the country, according to the National Ocean Economics Program data. Tourism continues to remain stable in Kodiak with a steady number of visitors. Cruise ships have become a growing presence, bringing many visitors each summer. An interesting niche within the Kodiak Island Borough is the Pacific Spaceport Complex, which was constructed twenty years ago. Located at Narrow Cape, the complex occupies 3,700 acres and is owned by Alaska Aerospace Development Corporation (AADC). It is also the first not owned by the Federal Government, as the AADC is a public corporation of the State of Alaska. The Pacific Spaceport Complex is the first complete launch facility built in the United States since the 1960’s. Its purpose is to support 9 the launches of small to medium-sized rocket-launched low earth orbit satellites, as well as military and scientific research missions. Kodiak is also home to the largest United States Coast Guard Base(USCG) in the United States, employing around 1,200 people and providing vital services to the marine industries that are an integral part of Kodiak’s make-up. The unemployment rate on June 30, 2018, is 5.6% compared to 5.4% on June 30, 2017. Hiring of seasonal cannery and other fisheries-related workers traditionally peaks around July and is virtually nil in December. This generally accounts for seasonal highs and lows in the local unemployment rate. This rate has fluctuated from 5.4% to 6.3% over the last five years, but the overall average is 5.6%. Kodiak’s general real estate market has been increasing since the late 1980’s. The demand for affordable housing increased with the 2016 closure of a major mobile home park within the Borough. From about 2000 until the general crash of the real estate market in the Lower 48 in 2007, Kodiak’s market was increasing around 6-12% annually. While the real estate economy and the general economy of this country fell drastically in 2007, the Kodiak real estate market generally continued to grow 2-4% annually through the year 2012. The market leveled out in 2013 and 2014 for the most part, but sales in 2017 show a continued value increase of about 2% annually. Kodiak Island Borough Demographics State of Alaska, Department of Labor, Workforce Development Kodiak Island Borough State of Alaska Annual Unemployment Rate (2017) 5.1%7.2% Kodiak Island Borough Specific Information (from Borough records) Kodiak Island Borough Public Education Number of Schools 13 Number of Staff Teachers 206 Support Personnel 210 Elections Number of Registered Voters 9,357 Votes Cast in Last Election 1,692 Voter Turnout 18% 10 Kodiak Island Borough Demographics, cont. Kodiak Island Borough State of Alaska United States Population 13,606 710,249 308,758,105 Age Under 5 years, percent 7.9%7.3%6.1% Under 18 years, percent 25.9%25.0%22.6% 65 Years & Over, percent 10.2%11.2%15.6% Unspecified in above groups, percent 56.0%56.5%55.7% Sex Male, percent 53.2%52.3%49.2% Female, percent 46.8%47.7%50.8% Housing Housing Units 5,410 316,952 137,403,460 Owner-occupied housing, percent 60.7%63.7%63.6% Median value of owner-occupied housing 266,700$ 257,100$ 184,700$ Median gross rent 1,254$ 1,173$ 949$ Families & Living Arrangements Households 4,585 250,235 117,716,237 Persons per household 2.96 2.83 2.64 Living in same house 1 year ago, percent of persons age 1 year+83.5%81.2%85.2% Lanuage other than English spoken at home, percentage of persons age 5years+24.0%16.2%21.1% Education High school graduate or higher, percentage of persons age 25years+90.7%92.3%87.0% Bachelor's degree of higher, percentage of persons age 25 years+24.8%28.8%30.3% Geography Population per square mile 2.1 1.2 87.4 Income & Poverty Median household income 73,068$ 74,444$ 55,322$ Per capita income in past 12 months 32,066$ 34,191$ 29,829$ Persons in poverty, percent 7.3%9.9%12.7% United States Census Bureau - Quick Facts Estimate for 7/1/2017 11 Dear Mayor, Assembly Members and Residents: Enclosed is the fiscal year 2019 budget document for the Kodiak Island Borough (KIB). This budget is submitted according to Borough Code Section 3.08.030 and State Statutes and includes the goals and objectives for fiscal year 2019, revenue sources, projected revenues, and the operating plan for all departments including capital expenditures. Budget Development Considerations During the budget development process, staff considers many issues and challenges. These issues include, but are not limited to, the economic outlook for the Borough, changes in federal and state policies, controlling operational costs, and providing the current level of services to the community. In response to these challenges, staff developed a budget that included conservative revenue estimates based on a stable, local economic outlook. Staff also developed the budget to control operations costs, where possible, and include provisions to allow for the same level of services offered to the community. In addition, staff considered federal and state policies, including current direction and key issues noted by these governing bodies. This is to ensure that any direct or indirect impacts are taken into consideration while developing the Borough’s budget. These considerations are comparable to those addressed in the fiscal year 2018 budget. The Kodiak Island Borough faces these challenges each year and will continue to face these in upcoming years. Budget Message Kodiak Island Borough Fiscal Year 2019 12 Federal Federal budget reductions over the last several years have impacted the Borough. These reductions have affected the revenue sharing we receive from the National Wildlife Refuge Sharing. Regulatory changes in the commercial fishing industry influence state fisheries revenue sharing and local severance tax collections. Federal PILT (Payment in Lieu of Taxes), which was 89% of our federal revenue in FY2018, has remained fairly stable over the last two years. State The State of Alaska’s budget reductions also influence the Borough’s budget. The Borough receives revenues from the State’s Community Assistance Program (CAP), formally known as Community Revenue Sharing Program, Shared Business Fisheries Tax, Fisheries Business Landing Tax, and shared Telephone & Electric taxes. From those sources, the Borough received a total of $2.396 million in 2015 and only $1.601 million in 2018; a $795,000 reduction, or 33%, over the last four years. 13 In fiscal year 2008, the State of Alaska legislature established one uniform contribution rate of 22% for PERS (Public Employees Retirement Systems) employers. Prior to this legislation, separate contributions rates were used for each employer. Although the Alaska Retirement Management Board approved the actuarially determined rate for fiscal year 2019 of 27.58%, which is an increase of 2.57% from Fiscal year 2018, the Borough will not see a budget impact in its PERS contribution which will remain at 22%. Due to the fiscal policies of the State of Alaska, Standard & Poor’s bond rating agency had dropped the State of Alaska’s bond rating to a Negative Outlook. However, on June 13, 2018, with the passage of Senate Bill 26, the Permanent Fund Protection Act, the rating agency upgraded the State’s rating to a Stable Outlook. This credit rating affects the interest rates related to Alaska bonds and capital project funding. Local Major local policies are summarized in the Assembly’s Strategic Plan. The long-term goals are to develop balanced budgets while maintaining existing levels of service, to reduce reliance on Federal and State revenues by encouraging and developing our local economy and not reducing current fund balances. The Borough uses assessed value on property, severance tax revenues, and City of Kodiak sales tax figures to evaluate the strength of the local economy. Other non-financial events that effect the local economy are: The March 2018 announcement by the USCG (United States Coast Guard) of the upgrade of five of its Kodiak based multipurpose airplanes over the next two years. The April 2018 announcement by the USCG of the addition of two new Kodiak based cutters for search and rescue, fisheries enforcement and security. The June 2018 announcement by the USCG to add an additional 100 service members over the next six years to the Kodiak Coast Guard Base. 14 Federal appropriations of up to $32 million to study and create housing over the next six years for new personnel being assigned to the Kodiak base. The Alaska Aerospace Corporation scheduled its first commercial launch at its Kodiak facility since a failed military test launch led to an explosion and damaged the facility in 2014. Personnel Cost The Borough’s budget goal for fiscal year 2019 was to maintain a consistent level of staffing. This budget includes estimated costs for vacant positions and expects that vacancies due to retirements will be filled with more junior staff reducing personnel and employee benefit costs from prior years. Other expenses such as specialty training, certifications and licensures will increase personnel costs and these anticipated costs have been included in department budgets. Based on allocated and filled positions, the fiscal year 2019 budget reflects a 4.73% increase in salaries and related benefits due to increases in cost of living adjustments, increased health insurance premiums, changing worker’s compensation. Overview of the FY2019 Budget The Borough has five different fund types. They are: 1. General. This fund is the nucleus of the Borough; the day-to-day operations are located in this fund. 2. Special Revenue. These funds include revenue and expenditures for a specified purpose, such as education support, road service districts, etc. 3. Debt Service. This fund is for the revenue and expenditures associated with the Borough’s bonded debt. 4. Capital Projects. These funds are for the various projects to upgrade, renovate, build, and repair facilities owned by the Borough. 5. Enterprise. These funds are for the business-type activities of the Borough, within which user fees or services generate the revenue to cover the expenditures. A more in-depth description of each fund type will follow. General Fund The General fund is the Borough’s main operating fund and is where the day-to-day business of the government is accounted for. Twenty separate departments fall into this fund. General, basic, and day- to-day functions of Borough business are accounted for in this fund. Revenues and expenses not pledged for any specific purpose or use reside here. In FY2018, the levied mill rate was 0.62 which, along with other State and Federal revenue, assist in funding General Fund expenditures. Due in part to the decline in the State and Federal revenues, the FY2019 mill rate was increased to 1.10 mills. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Filled 43 43 43 45 46 47 45 43 45 43 Vacant 1 0 3 1 2 1 4 6 4 3 Budgeted 44 43 46 46 48 48 49 49 49 46 Personnel Totals 15 The fund balance of the General Fund at June 30, 2018 is estimated to be $3,238,187 which is an increase of $921,063 from the FY2017 ending fund balance of $2,317,125. The FY2019 General Fund balance is expected to remain at $3,238,187 because the budget is balanced without a use of fund balance. The FY2018 budget was also adopted as a balanced budget, i.e. revenues would be the same as expenditures and there was no planned “use of fund balance” to balance this budget. The following is a list of major variances between budget and actual revenues and department expenses. The net of these major variances, along with non-major changes, helped to contribute to the increase in fund balance in FY2018. Federal Payment-In-Lieu-of-Tax (PILT) payment was $278,030 over the budgeted amount. Fish severance tax revenues came in $249,852 over budget. The Finance department expenses came in $103,193 under budget due to a position vacancy and reduced costs. The Engineering and Facilities department expenses came in $77,060 over budget. The Information Technology department expenses came in $83,630 under budget. The Emergency Preparedness department expenses came in $75,649 under budget. General Fund revenues are budgeted at $6,614,768, which includes $2,875,149 (43%) from property taxes and PILT, $1,650,000 (25%) from severance and excise taxes, $54,550 (1%) from licenses and permits, $1,787,096 (27%) from intergovernmental sources, $155,000 (2%) from interest earnings, $90,008 (1.5%) from transfers in and $2,965 (0.05%) from miscellaneous revenue. General Fund expenditures are expected to increase from an estimated $6,089,761 in FY2018 to a budgeted $6,614,768 in FY2019, an increase of $525,097. The largest part of these increases is due to the FY2018 audit not yet being complete and a steady service level. General Fund expenditures are budgeted at $6,614,768; $1,856,663 (28%) for General Government, $70,489 for Education (1%), $778,060 (12%) for Assessing, $332,983 (5%) for Public Safety, $2,054,819 (31%) for Finance/IT, $393,596 (6%) for Engineering/Facilities, $98,319 (1%) for Health and Welfare, $848,839 (13%) for Community Development, and $184,000 (3%) for Non-Profit funding. Special Revenue Funds Special revenue funds are created when a revenue source is dedicated solely to a specific activity. Examples would be a property tax dedicated to a road service district or for education support, or a transient accommodation tax to be used only to promote tourism. In total, the Borough has twenty-six separate special revenue funds. The largest two are the Education Support Fund and the Facilities Fund. Education Support Fund: This fund was created by the Borough in FY2012. Prior to this, the funds were part of the General Fund. The revenues for this fund come from property taxes and taxes on motor vehicles. For FY2019 the budgeted school district support is $9,890,244 and is funded by a 7.05 mill rate and estimated motor vehicle taxes receipts of $234,000. This is an increase of $512,744 from FY2018 funding. Support funding includes a direct appropriation of $9,460,244 and in-kind services of $430,000. In-kind services are payments that the Borough makes on behalf of the Kodiak Island Borough School District for expenses such as snow removal, audit services and property and liability insurance. 16 Facilities Fund: The Borough established this fund to account for the sale of Shuyak Island to the federal government in FY1996. As of June 30, 2018, the Facilities Fund had a fund balance of $39,371,219. Since inception in FY1996 the Facilities fund has earned approximately $20,248,285 in interest. Eighty-five percent of the interest earnings from the previous year can be used for insurance, debt reimbursement (capped at 50%), and capital projects; the remaining fifteen percent must be kept in the fund for inflation proofing. In FY2019, the Facilities Fund is budgeted to transfer $5,000 to Buildings and Grounds and $444,000 to the Renewal and Replacement Fund. Highlights of other special revenue funds are listed below. FY2018 total snow removal costs in all service districts were budgeted at $293,550 but came in at $124,311. This was $169,239 under budget and $72,784 more than FY2017 expenses. For FY2019, $280,052 is budgeted for snow removal costs. Bayside Fire Department’s expenses increased from $493,434 in FY2017 to an estimated $1,582,832 in FY2018. Most of this increase is due to the purchase of a new fire tanker and fire engine for the department. The Tourism Development Fund transient accommodation tax revenues decreased slightly from $108,050 in FY2017 to $105,230 in FY2018. This is just a 3% decrease, showing that Kodiak still has a healthy tourism economy with expectations that revenues should remain stable. Debt Service Funds The Borough paid $7,774,845 in debt service payments and related costs in FY2018; $7,278,309 for bond payments, $3,600 for arbitrage fees and $492,936 to the General Fund in repayment of the loan needed to cover the FY2017 cut to school debt reimbursements by the State of Alaska. The State of Alaska reimbursed the Borough for $4,985,040 (64%), a transfer from the Facilities Fund paid $65,105 (>1%) and the remaining $2,711,114 (35%) was paid with a 2.03 mill rate levy. For FY2019, the Borough is budgeting to spend $7,670,934 on debt service payments and $107,307 on related costs. This is a decrease of $9,063 or 0.007 mills. For FY2019, the mill rate on debt service was decreased to 1.87 mills. Capital Project Funds The Borough is currently managing $133,707,214 in capital projects and is budgeting to expend $8,372,794 of these funds in FY2019. The majority ($94,409,009 (71%)) of these projects are being funded by bond issues. The State of Alaska reimburses the Borough for up to 60% of debt service payments for repairs and maintenance and up to 70% of the costs of new construction for school buildings. The Borough has $9,777,000 in capital projects funded by state grants. This has been a major source of construction funds over the years. Other funding sources are $2,100,000 in federal grants, and $20,463,548 in loans from the Alaska Clean Water Fund. As the projects that have been funded from the proceeds of general obligation bonds are completed, the Borough will have far less construction going on. The Borough also has set a mill rate for property taxes to help fund some renewal and replacement of Borough owned buildings; for FY2019 this mill rate is set at 0.73 mills. 17 Enterprise Funds The Borough has five enterprise funds: Solid Waste Collection and Disposal, Hospital Facility, Long-Term Care Center, Kodiak Fisheries Research Center (KFRC), and 911 Services. Highlights of these funds are below. The Borough has been closing sections of the landfill. As a result, our liability for closure post/post closure costs have gone from $5,204,000 to $5,535,000, an increase of $331,000 (6%). Closure/post closure expenses will remain as one of the biggest issues facing the Borough. The Borough leases the hospital and long-term care center to Providence Health Care and the KFRC Building to the federal and state governments. As such, the Borough has little impact on the day to day operation of these entities. The Borough collects a tax on phone lines and retains an administration fee to recover the cost of maintaining the mapping and addressing systems and remits the remainder to the City of Kodiak to support their communications system. The Assembly recently changed the ordinance for this tax, raising the rate by $1.25 and adding provisions to tax cellular phones. The Borough’s total budget for FY2019 is $46,688,788. The above chart enumerates the dollar value and percentages of each fund’s share of the total budgeted amount. Major Policy Issues As always, one of the highest priorities of the Borough is to provide quality services to the Kodiak residents at the lowest possible costs. The major policy issues for FY2019 are maintaining the same level of service to the residents, funding the School District to provide a quality education while maintaining a stable tax rate. This year the area-wide mill rate, which includes the General Fund (1.10), Education Support Fund (7.05), Debt Service Fund (1.87), and the Renewal and Replacement Capital Projects Fund (.73), totaling 10.75 mills. Although the distribution amounts in each fund may change from one year to the next, the total 10.75 mill rate has remained unchanged since FY2012. 18 Since 83% of the total area-wide mill rate provides funding for schools with Education Support at 66% and Debt Service for school construction at 17%, many of the budget discussions center on school funding. As a Second-Class Borough, the Borough must provide education area-wide in accordance with AS14. State school funding limits for the Borough, prescribed by the State of Alaska using a formula based on assessed property values within the Borough, contain a minimum and a maximum amount of allowable funding. For FY2018, the minimum amount of required Educational Support was $4,193,230 and the maximum was $11,558,738; the Borough provided $9,377,500 which was 81% of allowable maximum. In FY2019, the maximum allowable funding is $11,220,339 and the Borough is funding Educational Support at $9,890,244 or 88% of the maximum amount. Future budget discussions will again focus on the amount of Education Support funding provided to the school district and whether the Borough should change the mill rate to pay for the increasing school debt bond payments coming due. Alternatives to raising the mill rate may include: reducing the annual school district appropriation, reduce other programs or services, or a combination thereof. Currently, the area-wide mill rate is 10.75 mills. The General Fund mill rate is 1.10 mills and the Renewal and Maintenance mill rate is .73 leaving 8.92 mills or eighty-three percent (83%) of area-wide taxes go to the school district and school debt service payments. As the Borough continues to face financial issues of increasing debt service payments and fewer streams of revenue, it is possible the area-wide mill rate will have to increase in future years. Interest rates are low and potential earnings are difficult to predict. Where the Borough earned $2,356,109 in interest in FY2009 the Borough earned only $281,018 in FY2018; an 88% reduction. It should be noted that this is a decrease of $223,958 or 44% below FY2017 earnings. Indicators show that interest earnings will remain low in FY2019. This year the Borough budgeted non-profit contributions from the General Fund at $234,000; $50,000 to the Kodiak College and $184,000 to other non-profit organizations. This is equal to approximately 0.17 mills of property tax. Every year the Assembly reviews applications for funding of non-profit organizations. Traditionally the Borough has allocated a considerable amount of money towards non- profit agencies within the Kodiak Island Borough, however due to the overall budget constraints reductions were made in the FY2019 budget compared to the FY2018 budget and this trend is expected to continue. The Borough is responsible for solid waste collection and disposal ‘on the road system’ and manages the municipal landfill and leachate treatment plant in Kodiak. Currently, the Borough contracts out for dumpster and roll-cart collection services. The Borough is in the process of evaluating and preparing an RFP (Request for Proposal) which is planned for release in FY2019. Landfill fees are set annually beginning July 1st. Along with cuts in State and Federal funding are the increasing costs of complying with State and Federal regulations such as the Clean Water Act, wetland regulations, senior exemption allowances and others. Tax Rate and Financial Analysis This budget keeps the combined mill rate for the General Fund, Debt Service Fund, Education Support Fund and the Renewal and Replacement Fund at 10.75 mills. These are the funds in the Borough that are funded with the area-wide property tax. The voters of the Kodiak Island Borough initiated and 19 passed a property tax revenue cap in October of 1998, limiting the amount of any potential increases to the mill rate. The tax cap does allow an increase for new debt service and inflation. State debt reimbursement is budgeted at $5,220,834. The State has generally paid for 60 - 70% of our debt for school construction. Various service districts within the Borough levy a property tax to provide service within the Borough. These levies range from 0.10 mills up to 2.5 mills. A complete schedule of these rates can be found in the Financial Summaries section. This year the Borough’s Education Support budget is $9,890,244 and the debt service budget for education facilities is $7,778,239 for a total of $17,668,483. This contribution is equal to approximately 12.90 mills of property tax; however, State debt service reimbursements and other revenue sources have reduced this to 8.92 mills. Property assessments have increased from last year largely due to new construction and reappraisals of existing property. A consistent pattern of reappraisals, standardization, and increased quality of both the real and personal property rolls has continued. The taxable value of real and personal property for FY2019 is $1,369,680,377 an increase of $26,856,478 (2%) over the FY2018 value of $1,342,823,899. The Kodiak Island Borough School District (KIBSD) is a component unit of the Borough. As such, their budget is not included in this document for three reasons: 1) the School District is still formulating their budget, 2) their budget is submitted to and approved by the State of Alaska, and 3) the school board is a governing board and the Borough Assembly has no control over their budget except for the amount of local support funding made. The economy of the Borough is resilient, even with the recent downturn in fisheries. Kodiak Island has a diversified economic base including fishing, timber harvesting, tourism, a rocket launch facility, a Fisheries Research Center, and a large contingent of Federal and State government employees including a Coast Guard base. It is imperative that the borough continue to be financially responsible and seek cost-effective improvements throughout Borough operations. Objectives for FY2019 As this document describes, every department has unique goals and objectives. ‘Goals’ represent the long-term purpose of the respective department and ‘objectives’ encompass the measurable steps required to accomplish department goals. The Borough performs some of its functions on an area wide-basis and some on a service-area basis. Tasks such as property assessment, tax collection, planning and zoning, and administrative functions are performed on an area-wide basis. State law mandates that the Borough is procure funds to pay for school district operations. Fire protection, road maintenance, building inspections, and other functions are performed on a service area basis. The revenues from these areas fund these services. 20 The High School Renovation and Renewal Project is the largest capital project that the Borough has ever funded. The construction is completed and is in use by students and school personnel. The Borough is working on many long-term projects. Most of these are described in the Capital Projects funds. That section enumerates projects scheduled for completion in FY2019 versus the years to come. Looking past Fiscal Year 2019 The Borough will have to raise the area-wide mill rate, find other sources of revenues, or cut expenditures in the coming years to pay for school education support, school bond debt payments and deferred maintenance of Borough owned buildings (including schools). Since indications are that interest rates will not rise much in the next two to three years, there is renewed interest in changing some of our investment policies and/or contracting with an investment firm to manage all or part of the Borough’s Facility Fund. Despite the national trend, the Borough believes that the assessed value of Kodiak Island property will continue to rise, although the recent announcements of the Federal government’s plans to evaluate, and potentially create new housing, for the increased staffing occurring at the Coast Guard base may affect the expected rise in property values Concerns over the age and deferred maintenance on Borough buildings and infrastructure continue, especially as maintenance costs rise and the cost of asbestos abatement is discussed. Following the completion of the High School Renovation project, the Borough does not anticipate much major school construction for the near future. Presently, infrastructure is not adequate to handle the needs of our senior citizens or those with physical, mental health or addiction disabilities. The Borough operates the baler facility, landfill and leachate treatment plant. The Borough is currently working on a major project to expand the landfill and extend the life cycle of the landfill by approximately 20 years. The total cost of this project is expected to be $32,000,000. This project is near completion, and recently KIB has started projects to replace the siding and roofing of the baler facility building. The leachate treatment plant is functioning; however, technicians are still working to configure the chemicals and process for optimum performance. Acknowledgment Particular appreciation is directed to all members of the Kodiak Island Borough staff for their cooperative, efficient, and dedicated service during the past year. Special appreciation is also given to the finance department for their assistance in the preparation of this document. Also, we would like to give thanks to each member of the Assembly for their interest and support in adopting legislation, goals, and policy guidance that allows staff to conduct the financial affairs of the Kodiak Island Borough in a progressive and responsible manner. 21 Conclusion The requested appropriations have been made with careful consideration and much conversation between staff, the assembly and the public. The Assembly’s strategic plan containing their goals and objectives helped staff build their budgets. Staff encourages participation and comments from the residents of the Kodiak Island Borough on the budgeting process. Respectfully submitted, KODIAK ISLAND BOROUGH Michael Powers Dora Cross Administrative Official Finance Director 22 BUDGET CALENDAR KODIAK ISLAND BOROUGH FISCAL YEAR 2019 The following activity is outlined as essential for the orderly formulation of the Fiscal Year 2019 Borough budget (July 1, 2018 through June 30, 2019). Proposed Date Specific Date Budget Action Item Participants February February 3, 2018 Assembly Reviews Budgets for General Fund. Also reviews Special Revenue Funds and Enterprise Funds with inactive boards Manager, Finance Director & Assembly April March 6, 2018 Assembly Reviews Budgets for Special Revenue Funds and Enterprise Funds with active boards Manager, Finance Director, Boardchairs & Assembly By April 30th March 29, 2018 Manager's Budget presentation to Assembly Manager & Assembly By April 30th April 18, 2018 School District Funding Request to Manager School District & Manager May May 15, 2018 Resolution Identifying minimum funding to the School District (within 30 days of receipt of School District Budget Request) Manager, Finance Director & Assembly May April 5, 2018 First Reading of Budget Ordinance Manager, Finance Director & Assembly May April 19, 2018 Additional Budget review and discussion Manager, Finance Director & Assembly May April 26, 2018 Additional Budget review and discussion Manager, Finance Director & Assembly May May 10, 2018 Additional Budget review and discussion Manager, Finance Director & Assembly By June 10th May 15, 2018 Second Reading of Budget Ordinance & adoption of Budget Ordinance Assembly 23 Budget Process Overview Budget Preparation Budget preparation allows departments, service areas and enterprise fund directors to assess their goals and objectives in order to create a financial plan for accomplishing them. The assembly must adopt a final budget by June however the process begins as much as six months earlier. During those six months, staff meetings and service board meetings are held to discuss potential changes in external (public) services, internal services, expected revenues and requested expenditures. These meetings set the ‘groundwork’ for the Manager’s Budget submission to the Assembly which must occur prior to May 1st each year. Budget meetings with the Assembly are usually divided into three types: All General Fund departments and those Special Revenue, and Enterprise funds that do not have active boards. o For these departments and funds, Borough staff prepares the budget information for inclusion in the Manager’s Budget. Special Revenue and Enterprise funds that do have active boards. o For these funds, board members meet and prepare budgets that must be submitted to the Clerk’s office by April 1st for inclusion in the Manager’s Budget. School Board Funding Request o The local school board submits a funding request to the assembly before May 1st. The assembly has 30 days from the boards submission date to pass a resolution identifying the minimum amount of funding appropriated to the district. During the period of February through May, the Assembly reviews the budget with the Manager and Finance director, department directors and board chairs. To approve the budget, there must be two public readings of the budget with final approval by June 10th of each year. The Borough Clerk is responsible for posting notices of the public hearing. The budget shall be adopted by a favorable vote of a majority of all members of the Assembly through the adoption of an ordinance setting forth the appropriation levels and the mill rate. The Borough Mayor may veto the ordinance, but his veto may be overridden by two-thirds of all the votes to which the Assembly is entitled on the question. If the Assembly does not adopt a budget by June 10, the Manager’s budget shall be deemed to have been finally adopted, per Section 3.08.060 of borough code. Upon adoption of the budget through Assembly passage of the budget ordinance, the budget is in effect for the budget year (July 1-June 30). The assembly is currently considering changes to the dates listed in Borough code for budget submissions by staff, service area boards and the local school district. Budget Amendments Amendments to the budget can occur anytime during the fiscal year. Generally, the following actions are required: By ordinance o All new appropriations that amends the annual budget ordinance, o Grant funds which are unlimited as to use or subject to only general limitations By resolution o To move (appropriate) amounts between departments and projects, o Grant funds which are limited by the grantor to a specific use or category of use 24 Balanced Budget All funds of the Borough must have a balanced budget. For the Borough, this means that revenues, plus a use of unrestricted fund balance, must equal expenditures. Basis of Accounting for Budget The term “basis of accounting” is used to describe the timing in which transactions or events are recognized. The Borough uses this same basis for our budgeting. Fund Type Accounting Basis Budgeting Basis General Fund Modified Accrual Modified Accrual Special Revenue Funds Modified Accrual Modified Accrual Debt Service Fund Modified Accrual Modified Accrual Capital Projects Modified Accrual Modified Accrual Enterprise Funds Full Accrual Full Accrual The Borough budgets government-type funds (General Fund, Special Revenue Funds, and Debt Service Fund) and Capital Projects funds on a modified accrual basis. Revenues are recognized only when they are both measurable and available. Revenues are considered available if they are received within 60 days of year end. Expenditures are recognized when they are incurred, but an exception to this general rule is principal and interest on general long-term debt, which is recognized when due. Prepayment of insurance and similar services extending over more than one year is allocated to the years benefited. The Enterprise Funds (Municipal Solid Waste and Collection, Hospital, Long-Term Care Center, Kodiak Fisheries Research Center, and E911 Services) also budget obligations when incurred as expenditures. Revenues are recognized when they are obligated to the Borough (for example, user fees are recognized as revenues when services are provided). Date Appropriations Shall Lapse Funds appropriated by the assembly shall lapse for further use as follows: For encumbrance (obligation): o All single-year funds shall lapse for the purpose of encumbrance on the last day of the fiscal year. o All multi-year appropriations (usually capital projects) shall normally lapse upon completion of the project. For Expenditure (payments): o All single-year funds shall lapse upon payment of those encumbrances outstanding at fiscal year-end. o All multi-year funds shall normally lapse at project completion. In other words, in all funds except capital projects, when goods and services are not received by the end of the year, the encumbrances lapse. 25 FINANCIAL SUMMARIES FUND STRUCTURE The Borough accounts are organized on the basis of fund and account groups, each of which is considered a separate accounting entity. Operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses as appropriate. Borough resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds in this report are grouped into five generic fund types within two broad fund categories. Government Fund Types General Fund: The General Fund is the operating fund of the Borough and is used to account for all financial resources, except those that are required to be accounted for in another fund. Special Revenue Funds: Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for special purposes. We include neighborhood service districts such as road, fire, and street lighting, as well as maintenance of our buildings and grounds, in this fund type. Debt Service Funds: The Debt Service Funds are used to account for the accumulation of, resources for, and the payment of general long-term debt principal, interest, and related costs. The bulk of our debt is in the form of general obligation bonds which are accounted for primarily in one large debt service fund. Capital Project Funds: Capital Project Funds are used to account for financial resources to be used for acquisition or construction of major capital facilities and equipment. We use these funds to track projects funded by bond revenue, grants, and other large maintenance projects. Proprietary Fund Types Enterprise Funds: Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges, or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The Borough has five Enterprise Funds: Municipal Solid Waste Collection and Disposal, Hospital Facility, Long-Term Care Center, Kodiak Fisheries Research Center, and 911 Emergency Telephone Services. 26 Governmental Funds Kodiak Island Borough Budgeting Funds Special Revenue Funds Fund 263 - Trinity Island Paving Fund 276 -Facilities Fund Fund 262 - Mission Lake Tide Gate Fund 261 - Trinity Islands Street Light Area Fund 260 - Woodland Acres Street Light Area Fund 254 - KIB Airport Fire Protection District Fund 252 - Womens Bay Fire Department Fund 250 - Fire Protection Area No. 1 Fund 246 - Bayview Service Area Fund 244 - Monashka Bay Service Area Fund 243 - Service Area No. 2 Fund 242 - Service Area No. 1 Fund 240 - Womens Bay Service Area Fund 234 - LEPC Fund 220 - Buildings & Grounds Fund 210 - Land Sales Fund 201 - Education Support Fund 277 - Tourism Development Fund 290 - Fern Fuller Trust Capital Projects Funds Enterprise Funds Fund 142 - Building Official Fund 135 - Engineering/Facilities Fund 125 - Information Technology Fund 110 - Borough Clerk Fund 130 - Assessing Fund 120 - Finance Fund 105 - Borough Mangement Fund 100 - Legislative Fund 115 - Borough Attorney Fund 140 - Community Development Fund 160 - Economic Development Fund 165 - General Administration Fund 172 - Parks and Recreation Fund 175 - Emergency Preparedness Fund 185 – Health & Social Services Fund 186 – Animal Control Fund 190 – Education, Culture & Recreation Fund 191 – Kodiak College & Libraries Fund 192 – Non-Profit Funding Fund 195 – Transfers Out Fund 560 -911 Fund 555 - KFRC Fund 540 - Hospital Fund 530 - Municipal Solid Waste Fund 545 - Long Term Care Center General Fund (Major Fund) Debt Service Fund Fund 300 - Education Fund 490 – Landfill Projects Fund 470 – Bonded R&R Projects Fund 469 – R&R Projects Fund 460 – High School R&R Project Fund 450 – Borough Projects Fund 430 – State Grants Projects Fund 426 – Borough Projects Fund 420 – Bonded Projects Fund 410 – Borough Projects Fund 495 – Hospital & Long-Term Care Projects 27 FISCAL POLICY This fiscal policy, adopted March 15, 1990, is a statement of the guidelines and goals that will influence and guide the financial management practices of the Kodiak Island Borough. A fiscal policy that is adopted, adhered to, and regularly reviewed is recognized as the cornerstone of sound financial management. Effective fiscal policy: contributes significantly to the Borough’s ability to insulate itself from having a financial crisis; enhances long-term financial credibility by helping to achieve the highest bond and credit ratings possible; promotes long-term financial stability by establishing clear and consistent guidelines; directs attention to the total financial picture of the Borough rather than single-issue areas; promotes the view of linking long-run financial planning with day-to-day operations; and provides the Assembly and the citizens of the Borough with a framework for measuring the fiscal impact of government services against established fiscal parameters. To these ends, the following policy statements are provided: Operating Budget Policies (Adopted FY1990) The budget is a plan for allocating resources. The objective is to enable service delivery with allocated resources. Services must be delivered to the citizens at a level that will meet real needs as efficiently and effectively as possible. The Borough’s goal is to pay for all recurring expenditures with recurring revenues and to use non-recurring revenues for non-recurring expenditures. It is important that a positive undesignated fund balance and a positive cash balance be shown in all governmental funds at the end of each fiscal year. When deficits appear to be forthcoming within a fiscal year, spending during the fiscal year must be reduced sufficiently to create a positive undesignated fund balance and a positive cash balance. When possible, the Borough will integrate performance measurement and productivity indicators within the budget. This should be done in an effort to improve the productivity of Borough programs and employees. Productivity analysis should become a dynamic part of the Borough administration. The budget must be structured so that the Assembly and the general public can readily establish the relationship between expenditures and the achievement of service objectives. The individual department and agency budget submissions must be prepared with the basic assumption that the Assembly will always attempt to maintain the current tax rates. Budgetary review by the Assembly will focus on the following basic concepts: Staff Economy The size and distribution of staff will be a prime concern. The Assembly will seek to limit staff increases to areas where approved program growth and support absolutely requires additional staff and to reduce staff where this can be done without adversely affecting approved service levels. Capital Construction Emphasis will be placed upon continued reliance on a viable level of pay-down capital construction to fulfill needs in an Assembly approved comprehensive capital improvements program. 28 Program Expansions Proposed expansion to existing programs and services must be submitted as budgetary increments requiring detailed justification. Every proposed program or service expansion will be scrutinized on the basis of its relationship to the health, safety, and welfare of the community. New Programs New programs or services must also be submitted as budgetary increments requiring detailed justification. New programs or services will be evaluated on the same basis as program expansion plus an analysis of long term fiscal impacts. Existing Service Costs The justification for base budget program costs will be a major factor during budget review. Administrative Costs In all program areas, administrative overhead costs should be kept to an absolute minimum. Functions of all departments and agencies should be reviewed in an effort toward reducing duplicate activities within the Borough government and the autonomous and semi-autonomous agencies, which receive appropriations from the Borough. The budget will provide for adequate maintenance of capitalized assets and for their orderly replacement. The administration will maintain budgetary controls at the character level within each organizational unit. (Characters are broad classifications of expenditures: fringe benefits, contractual services.) The preparation and distribution of budget status reports, interim financial statements, and annual financial reports is required. The Borough will remain current in payments to the retirement system. The Borough will develop and annually update a long-range (three to five years) financial forecasting system that will include projections of revenues, expenditures, and future costs and financing of capital improvements that are included in the capital budget. The Borough will develop and annually update a financial trend monitoring system which will examine the fiscal trends from the preceding five years- trends such as revenues and expenditures per capita and adjusted for inflation, liquidity, or operating deficits. Where possible, trend indicators will be developed and tracked for specific elements of the Borough’s fiscal policy. Debt Policies (Amended in FY2010) The Borough will not fund current operations from the proceeds of borrowed funds. The Borough will confine long-term borrowing to funding of capital improvements or projects that cannot be financed from current revenues. When the Borough finances capital projects by issuing bonds, it will repay the debt within a period not to exceed the expected useful life of the project. Target debt ratios will be annually calculated and included in the review of financial trends. Net debt, as a percentage of the estimated market value of taxable property, should not exceed two percent. The ratio of debt service expenditures as a percent of governmental fund expenditures should not exceed 15 percent. The Borough recognizes the importance of underlying and overlapping debt in analyzing financial conditions and will regularly analyze its indebtedness. 29 The Borough will maintain good communications about its financial condition with bond and credit institutions. The Borough will follow a policy of full disclosure in every annual financial statement and bond official statement. The Borough will avoid borrowing on tax anticipation and maintain adequate fund balance. Revenue Policies (Adopted in FY1990) The Borough will try to maintain a diversified and stable revenue structure to shelter it from short-run fluctuations in any single revenue source. The Borough will attempt to maintain a diversified and stable economic base by supporting policies that promote tourism, fishing, agriculture, commercial, and industrial employment. The Borough will estimate its annual revenues by an objective, analytical process. The Borough, where possible and reasonable, will institute user fees and charges for specialized programs and services. Rates will be established to recover operational, as well as capital or debt service costs. The Borough will regularly review user fee charges and related expenditures to determine if pre- established recovery goals are met. The Borough will maintain a sound, consistent, and equitable ad valorem property tax assessment program. The Borough will follow an aggressive policy of collecting tax revenues where the annual level of uncollected current property tax should not exceed two percent. The Borough should routinely identify governmental aid funding possibilities. However, before applying for and accepting intergovernmental aid, the Borough will assess the merits of a particular program as if it were funded with local tax dollars. Local tax dollars will not be used to make up for losses of intergovernmental aid without first reviewing the program and its merits as a budgetary increment. Investment Policies (Adopted in FY1990) The Borough will maintain an investment policy based on the Government Finance Officers Association (GFOA) model investment policy. The Borough will conduct an analysis of cash flow needs on an ongoing basis. Disbursements, collections, and deposits of all funds will be scheduled to ensure maximum cash availability and investment potential. When permitted by law, the Borough will pool its various funds for investment purposes. The Borough will obtain the best possible return on all investments consistent with the underlying criteria of liquidity and safety of principal. The Borough will regularly review contractual opportunities for consolidated banking services. Accounting, Auditing, and Reporting Policies (Adopted in FY1990) The Borough will establish and maintain a high standard of accounting practices in conformance with Generally Accepted Accounting Principles (GAAP). The accounting system will maintain records on a basis consistent with accepted standards for government accounting according to the Government Accounting Standards Board (GASB). Regular monthly financial statements and annual financial reports will present a summary of financial activity by departments and agencies within all funds. Where possible, the reporting system will also provide monthly information on the total cost of specific services by type of expenditure and revenue by fund. An independent firm of certified public accountants will perform an annual financial and compliance audit and will publicly issue an opinion, which will be incorporated into the Comprehensive Annual Financial Report (CAFR). The Borough will annually strive for the GFOA Certificate of Achievement for Excellence in Financial Reporting and the GFOA Distinguished Budget Presentation Award. Capital Budget Policies (Adopted in FY1990) The Borough will make all capital improvements in accordance with an adopted capital improvements program. 30 The Borough will develop a multi-year plan for capital improvements that considers development policies and links the development process with the capital plan. The Borough will enact an annual capital budget based on the multi-year capital improvement program. The Borough will coordinate development of the capital improvement budget with development of the operating budget. Future operating costs associated with new capital projects will be projected and included in operating budget forecasts. The Borough will maintain all its assets at a level adequate to protect its capital investments and to minimize future maintenance and replacement costs. The Borough will identify “full-life” estimated cost and potential funding sources for each capital project proposal before it is submitted to the Assembly for approval. The Borough will determine the total cost for each potential financing method for capital project proposals. The Borough will identify the cash flow needs for all new projects and determine which financing method best meets the cash flow needs of the project. Reserve Policies (Adopted FY1990) The Borough will maintain a fund balance designation for fiscal cash liquidity purposes; i.e. fiscal reserve that will provide sufficient cash flow to minimize the potential of short-term tax anticipation borrowing. The Borough will maintain appropriated contingencies to provide for unanticipated expenditures. The three contingencies and their recommended minimum funding levels are: Emergency Contingency 1.00% of General Fund Personnel Contingency 0.50% of General Fund Litigation Contingency 0.25% of General Fund The Borough will maintain sufficient self-insurance reserves, as established by professional judgment, based on the funding techniques utilized and the recorded losses. For fiscal year 2018 these are the levels of funding required to meet these needs. Basically, this is unencumbered fund balance in the General Fund: General Fund Balance Percent Applied for Fund Contingency Balance Emergency $3,238,187 1% 32,382 Personnel $3,238,187 ½% 16,191 Litigation $3,238,187 ¼% 8,095 Total N/A N/A $56,668 The $3,238,187 in unreserved fund balance in the General Fund easily covers these amounts. 31 Special Debt Capital General Revenue Service Projects Enterprise Fund Funds Funds Funds Funds Total Revenues Property Taxes 1,506,649 11,055,643 2,557,405 - - 14,090,249 Transient Accomodation Tax - 98,000 - - - 94,000 Non Ad Valorem Taxes 26,500 234,000 - - - 279,500 Payment in Lieu of Taxes 1,342,000 - - - - 1,331,000 Severence Taxes 1,300,000 - - - - 1,435,000 Excise Tax 350,000 - - - - 200,000 Penalties & Interest Fees 150,000 - - - 5,000 153,500 Rents & Royalties - 840,115 - - 1,798,282 2,952,492 User Fees - - - - 4,273,753 3,913,925 Land Sales Activities - 50,264 - - - 200,000 Licenses & Permits 54,550 34,350 - - - 95,500 Federal Revenues 150,000 - - 253,086 - 112,500 State Revenues 1,637,096 62,101 5,220,834 319,296 58,270 7,100,800 Fines - - - - - - Interest Earnings 5,000 214,865 - 50,000 180,869 879,058 Sale of Bonds/Loans - - - 1,788,011 27,211 5,737,058 Miscellaneous 2,965 593,756 - - 2,286,266 2,863,712 Total Revenue 6,524,760 13,183,094 7,778,239 2,410,393 8,629,651 41,438,294 Transfers In 90,008 55,000 - 200,000 45,000 734,346 Total Sources of Funds 6,614,768 13,238,094 7,778,239 2,610,393 8,674,651 42,172,640 Expenditures General Government 4,269,978 - - - - 4,200,180 Education 50,000 9,890,244 7,778,239 2,412,853 1,760,793 24,830,272 Health & Welfare 98,319 - - - 2,528,614 2,911,792 Assessing 778,060 - - - - 739,669 Community Development 848,839 - - - - 894,786 Resource Management - 339,553 - - - 465,603 KIB Buildings - 832,522 - 735,965 - 1,004,741 LEPC - 15,500 - - - 15,812 Road Maintenance - 698,938 - - - 771,118 Public Safety 332,983 880,337 - 778,764 250,000 1,822,113 Culture and Recreation 20,489 - - - - 321,320 Economic Development 32,100 132,000 - - - 119,100 Non Profit Funding 184,000 - - - - 207,500 Solid Waste - - - 4,460,633 4,135,244 8,169,782 Other - - - - - - Transfers Out - 449,000 - - - 215,000 Total Use of Funds 6,614,768 13,238,094 7,778,239 8,388,215 8,674,651 46,688,788 Estimated Beginning Balance 3,238,187 43,539,551 207,204 9,098,888 4,251,858 60,335,689 Estimated Funds Available 06/30/19 3,238,187 43,539,551 207,204 3,321,066 4,251,858 55,819,541 FY2019 Budget Summary, All Funds 32 This page left intentionally blank. 33 Three Year Budget Overview General Fund Special Revenue Funds Debt Service Funds FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 Actual Estimated Budgeted Actual Estimated Budgeted Actual Estimated Budgeted REVENUES Property Taxes 181,304$ 828,027$ 1,506,649$ 11,373,018$ 10,483,198$ 11,055,643$ 2,503,590$ 2,711,114$ 2,557,405$ Transient Accomodation Tax - - - 108,050 105,750 98,000 - - - Non Ad Valorem Taxes 26,436 30,000 26,500 235,177 211,742 234,000 - - - Payment in Lieu of Taxes 1,592,112 1,605,632 1,342,000 - - - - - - Severance Taxes 1,306,507 1,790,080 1,300,000 - - - - - - Excise Tax - 190,262 350,000 - - - - - - Penalties & Interest on Taxes 213,373 219,116 150,000 2 1 - 17 - - Rents & Royalties - - - 790,882 876,635 840,115 - - - User Fees - - - - - - - - - Land Sales Activites - - - 147,171 226,363 50,264 - - - Licenses & Permits 83,546 62,349 54,550 33,400 34,800 34,350 - - - Federal Revenues 230,082 191,973 150,000 - 7,315 - - - - State Revenues 1,915,963 1,717,484 1,637,096 63,284 49,865 62,101 3,840,763 4,985,040 5,220,834 Fines 491 441 - - - - - - - Interest Earnings 11,059 9,529 5,000 217,330 208,380 214,865 (608) (1,760) - Miscellaneous 3,225 6,273 2,965 2,111,069 25,457 14,000 - - - Use of Fund Balance - - - - - 579,756 - - - Sale of Bonds - - - - - - 806,205 - - Sale of Fixed Assets - 1,240 - - - - - - - TRANSFERS IN - 492,936 90,008 75,830 - 55,000 1,059,380 - - TOTAL SOURCE OF FUNDS 5,564,098 7,145,342 6,614,768 15,155,212 12,229,507 13,238,094 8,209,347 7,694,394 7,778,239 EXPENDITURES General Government 3,320,407 3,666,970 4,269,978 - - - - - - Education 96,000 72,000 50,000 10,277,548 9,377,500 9,890,244 13,032,860 7,278,309 7,670,932 Health & Welfare 30,172 78,604 98,319 134,372 - - - - - Assessing 743,480 801,010 778,060 - - - - - - Community Development 860,160 902,457 848,839 - - - - - - Resource Management - - - 1,202,656 347,704 339,553 - - - KIB Buildings - - - 877,620 575,885 832,522 - - - Road Maintenance - - - 474,780 612,083 698,938 - - - Fire Districts - - - 575,946 1,762,171 871,117 - - - Public Safety 242,255 323,166 332,983 20,832 22,942 24,720 - - - Culture and Recreation 17,562 4,665 20,489 - - - - - - Economic Development 30,268 33,936 32,100 154,521 132,069 132,000 - - - Solid Waste - - - - - - - - - Capital Outlay - - - - - - - - - Non-Profit Funding 233,999 207,500 184,000 - - - - - - Other - - - - - - 64,324 16,057 17,299 TRANSFERS OUT 958,451 403,958 - 438,313 - 449,000 - 492,936 90,008 TOTAL USE OF FUNDS 6,532,754 6,494,266 6,614,768 14,156,589 12,830,352 13,238,094 13,097,184 7,787,302 7,778,239 34 Three Year Budget Overview Continued Capital Projects Funds Enterprise Funds TOTAL FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 Actual Estimated Budgeted Actual Estimated Budgeted Actual Estimated Budgeted REVENUES Property Taxes 598,217$ 1,736,075$ -$ -$ -$ -$ 14,656,129$ 15,758,414$ 15,119,697$ Transient Accomodation Tax - - - - - - 108,050 105,750 98,000 Non Ad Valorem Taxes - - - - - - 261,613 241,742 260,500 Payment in Lieu of Taxes - - - - - - 1,592,112 1,605,632 1,342,000 Severance Taxes - - - - - - 1,306,507 1,790,080 1,300,000 Excise Tax - - - - - - - 190,262 350,000 Penalties & Interest on Taxes - - - 5,790 525 5,000 219,182 219,642 155,000 Rents & Royalties - - - 1,967,571 1,966,856 1,798,282 2,758,453 2,843,491 2,638,397 User Fees - - - 3,098,155 3,994,972 4,273,753 3,098,155 3,994,972 4,273,753 Land Sales Activites - - - - - 147,171 226,363 50,264 Licenses & Permits - - - - - - 116,946 97,149 88,900 Federal Revenues 1,216,909 97,761 253,086 - - - 1,446,991 297,049 403,086 State Revenues 12,066,400 - 319,910 27,799 21,411 58,270 17,914,209 6,773,801 7,298,211 Fines - - - - - - 491 441 - Interest Earnings 53,066 31,262 50,000 236,986 64,869 180,869 517,833 312,280 450,734 Miscellaneous 309 284,361 - 701,413 1,557,257 1,394,572 2,816,015 1,873,348 1,411,537 Use of Fund Balance - - - - - 891,694 - - 1,471,450 Sale of Bonds 17,000,000 - 1,788,011 101,638 27,211 27,211 17,907,843 27,211 1,815,222 Sale of Fixed Assets - - - - - - - 1,240 TRANSFERS IN 691,979 2,469,951 612,993 5,682,708 45,000 45,000 7,509,898 3,007,887 803,001 TOTAL SOURCE OF FUNDS 31,626,880 4,619,410 3,024,000 11,822,061 7,678,101 8,674,651 72,377,598 39,366,754 39,329,752 EXPENDITURES General Government - - - - - - 3,320,407 3,666,970 4,269,978 Education - - - 1,532,011 1,760,793 1,760,793 24,938,419 18,488,602 19,371,969 Health & Welfare - - - 7,042,125 1,568,642 2,528,614 7,206,669 1,647,246 2,626,933 Assessing - - - - - - 743,480 801,010 778,060 Community Development - - - - - - 860,160 902,457 848,839 Resource Management - - - - - - 1,202,656 347,704 339,553 KIB Buildings - - - - - - 877,620 575,885 832,522 Road Maintenance - - - - - - 474,780 612,083 698,938 Fire Districts - - - - - - 575,946 1,762,171 871,117 Public Safety - - - 28,409 91,478 250,000 291,496 437,586 607,703 Culture and Recreation - - - - - - 17,562 4,665 20,489 Economic Development - - - - - - 184,789 166,005 164,100 Solid Waste - - - 3,324,030 2,937,089 4,135,244 3,324,030 2,937,089 4,135,244 Capital Outlay 50,562,635 5,458,169 8,372,794 - - - 50,562,635 5,458,169 8,372,794 Non-Profit Funding - - - - - - 233,999 207,500 184,000 Other - - - - - - 64,324 16,057 17,299 TRANSFERS OUT - - - - - - 1,396,764 896,894 539,008 TOTAL USE OF FUNDS 50,562,635 5,458,169 8,372,794 11,926,574 6,358,002 8,674,651 96,275,737 38,928,091 44,678,546 35 36 Fiscal Real Property Personal Property Total Mill Total Year Assessed Value Assessed Value Assessed Value Rate Tax Levy 2004 659,695,261 110,941,504 770,636,765 9.25 7,128,390 2005 678,427,713 105,481,537 783,909,250 10.25 8,035,070 2006 692,709,445 106,206,504 798,915,949 11.00 8,788,075 2007 710,848,299 94,833,515 805,681,814 10.50 8,459,659 2008 734,527,929 100,997,608 835,525,537 10.50 8,773,018 2009 765,152,958 105,617,604 870,770,562 10.50 9,143,091 2010 788,107,547 108,786,132 896,893,679 10.50 9,417,384 2011 875,787,940 113,091,185 988,879,125 10.50 10,383,231 2012 947,611,296 91,612,537 1,039,223,833 10.50 10,911,850 2013 984,146,580 101,821,700 1,085,968,280 10.75 11,674,159 2014 1,013,670,977 104,876,351 1,118,547,328 10.75 12,024,384 2015 1,044,081,107 108,022,642 1,152,103,749 10.75 12,385,115 2016 1,084,317,572 118,559,600 1,202,877,172 10.75 12,930,930 2017 1,169,223,198 143,116,200 1,312,339,398 10.75 14,107,649 2018 1,205,698,799 137,125,100 1,342,823,899 10.75 14,435,357 2019 1,250,528,925 139,440,700 1,389,969,625 10.75 14,942,173 Historical Assesed Values, Mill Rates and Tax Levies 37 GENERAL FUND General Fund Description The General Fund is used to account for all assets and liabilities of the Kodiak Island Borough except those particularly assigned for other purposes in another, more specialized fund. The General Fund is the primary operating fund of our government. Much of the usual activities of a municipality are supported by the general fund. Examples are the purchase of supplies and meeting operating expenditures. Examples of specialized funds would be special revenue funds like Education Support or a service district, or a Capital Projects fund which account for financial resources used for the acquisition or construction of major capital facilities. The General Fund reports information on a modified accrual basis of accounting and uses the current financial resources measurement focus. In other words, with a couple of exceptions, the balance sheet reports cash and other financial resources (such as receivables) as assets and amounts owed that are expected to be paid off within a short time period as liabilities. Departments included in the General Fund are: Legislative (Borough Assembly) Borough Manager’s Office Borough Clerk’s Office Legal Services Finance Information Technology (IT) Assessing Engineering & Facilities Community Development Building Inspection Economic Development General Administration Parks & Recreation Emergency Preparedness Animal Control Education, Culture, & Recreation Kodiak College & Libraries Non-Profits Transfers Out Revenue Sources and General Fund Estimates In FY2012, a special revenue fund, called Education Support, was created to account for property tax revenues collected from the public which was to be paid to the Kodiak Island Borough School District. The creation of that special revenue fund now accounts for that revenue instead of the General Fund. After that change, the largest source of revenue for the General Fund from FY2013-FY2017 was intergovernmental revenue. Due to decreasing revenue from the federal and state governments, and a General Fund mill rate increase from 0.15 to 0.62, FY2018 was the first time since FY2013 that property tax revenues will exceed intergovernmental revenue. 38 See following pages for definitions of revenues. GENERAL FUND REVENUE SUMMARY Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2016 Actual 2017 Actual 2018 Budget 2018 Actual 2019 Budget Property Tax (includes PILT)1,747,230$ 1,799,852$ 2,186,266$ 2,458,389$ 2,875,149$ Severance Tax 1,491,089 1,306,507 1,435,000 1,815,923 1,300,000 Excise Tax - - 200,000 310,482 350,000 Licenses & Permits 66,151 83,546 61,750 62,349 54,550 Intergovernmental Revenues 2,461,523 2,146,045 1,893,266 1,876,625 1,787,096 Interest Earnings 199,277 224,432 161,500 229,916 155,000 Miscellaneous Revenues 441,430 3,716 11,875 7,954 2,965 Transfers In - - 896,894 492,936 90,008 Total 6,406,702$ 5,564,098$ 6,846,551$ 7,254,576$ 6,614,768$ 39 PROPERTY TAXES Local Real and Personal Property Taxes. Alaska Statutes (AS) 29.45.010-29.45.500 gives municipalities the authority to levy a property tax. The Kodiak Island Borough’s property tax revenue for fiscal year 2019 is based on the net taxable assessed valuation as of January 1, 2018. That value is estimated at $1,369,680,377. The Borough has set the tax levy on real and personal property for the General Fund at 1.10 mills, which will generate estimated property tax revenues of $1,506,649. Approximately 90% of this revenue is from real property and 10% from personal property. The current delinquency rate is 0.2% (two tenths of one percent). For budget purposes, the amount of tax generated by one (1) mill is $1,369,680. Payment in Lieu of Tax (PILT). Payments in Lieu of Taxes (PILT) are federal payments to local governments that help offset losses in property taxes due to nontaxable federal lands within their boundaries. PILT payments are made annually for tax-exempt Federal lands administered by the Bureau of Land Management (BLM), the National Park Service, the U.S. Fish and Wildlife Service (all agencies of the Interior Department), the U.S. Forest Service (part of the U.S. Department of Agriculture), and for Federal water projects and some military installations. Congress appropriates PILT payments each year. The BLM allocates payments according to a formula in the PILT Act that includes population, receipt-sharing payments, and the amount of Federal land within an affected borough. The estimated amount for FY2019 PILT revenue, $1,300,000 is $278,030 less than last year’s actual amount received, based on reductions. Penalty and interest on Taxes Receivable. AS 29.45.650 and KIB Code of Ordinances section 3.35.140 establish the authority to apply penalties and interest on delinquent property taxes. The penalty rates are 10% for late payments, and the interest rate on delinquent accounts is 12% per annum. The Borough does not recognize the receivable at the time penalties and interest are applied to the accounts; rather, it is recognized when the payment is made. Based on past collections, we estimate revenues at $150,000. - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 2012 2013 2014 2015 2016 2017 2018 2019 Local Taxes, PILT and Penalties & Interest (FY2019 Budgeted) Local Tax PILT P&I 40 SEVERANCE TAXES The Kodiak Island Borough levies a tax on certain natural resources that are severed or harvested within the boundaries of the Borough. The tax rate is the Borough-wide mill levy, which is currently 10.75 mills (1.075%). Taxable resources are grouped into three categories: 1) fish, 2) rock, sand and gravel (mining), and 3) timber (logging). Fish Severance Tax. Budgeting for fish severance tax involves many factors. How many fish will be available for harvesting? What countries will be buying our fish? What will the price per pound be? What will the environmental issues be? Does the market prefer wild fish to farmed fish? Many of these variables are very difficult to predict. With these issues in mind, the Borough is budgeting fish severance tax revenues for 2019 at $1,200,000. Rock, Sand and Gravel Severance Tax. To estimate the value for rock and gravel, KIB looked at the construction industry. The main source of extraction for this category is rock. The rock is sold to construction companies for their building lots and road construction. Based on the revenues generated in the fiscal years 2017 and 2018, the estimated revenue for fiscal year 2019 is $50,000. Timber Severance Tax. Logging severance tax revenues remained fairly constant between FY2012 and FY2016. There was a decline in revenue starting in FY2017, and with the major logging operations complete on Kodiak Island, further reductions of revenue are expected. Therefore, the Borough is budgeting revenues for this tax source at $50,000 for FY2019. Overall, the FY2019 severance tax is estimated at $1,300,000. - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Local Severance Taxes (FY2019 Budgeted) Fish Mining Timber 41 EXCISE TAX The Borough added two new excise tax revenue sources in FY2018 for Marijuana and Tobacco, both of which did not take effect until mid-year. Revenue collection for this partial year was $0 for marijuana and $310,482 for tobacco. Since this is a new revenue source, no multi-year trend data is available. The revenues for FY2019 is budgeted at $0 for marijuana and $350,000 for tobacco. LICENSES AND PERMITS Licenses and permits are revenues from building, marijuana, and tobacco industries. The largest portion of revenue in this category is building permits, which can be attributed to the low interest rates on home mortgages in rural areas through the State of Alaska. Per the Community Development Department, revenues from all industries are budgeted at $54,550, based on FY2018 revenues. INTERGOVERNMENTAL REVENUES FEDERAL SHARED REVENUES National Wildlife Refuge. The Revenue Sharing Act authorizes payments to local governments whose jurisdiction includes land being administered by the Fish and Wildlife Service (FWS). The payments are based on the percentage of the fair market value of Borough lands that the FWS has acquired, the number of acres they hold, and a percentage of net receipts the FWS collected in their previous fiscal year. This payment is a form of PILT, but the land owned by the FWS is not the same land owned by FWS that generates a portion of the PILT federal payment. The difference is the land under the National Wildlife Refuge was previously owned by private individuals and was previously taxable. From FY2013-FY2018 these revenues varied from $173,848 to $230,082. For FY2019, the budgeted revenues are $150,000. 42 STATE SHARED REVENUES Community Assistance Program (AS 29.60.010-29.60.030). This payment from the State of Alaska is an equalization entitlement. The computation is based on population, the relative ability to generate revenue, and the local tax burden of the taxing unit. The Borough received $461,512 in FY2017 and $465,942 in FY2018. Based on State legislation, the Borough is budgeting $408,076 for FY2019. Fish Tax Revenue Sharing (AS 43.75 and 43.77) authorizes the State of Alaska to levy taxes on fisheries businesses. A portion of the tax is refunded to municipalities and boroughs. There are two types of fishery tax: Fisheries Business Tax (AS 43.75) levies the tax on businesses and persons who process or export fisheries resources from Alaska. The tax is based on the value paid to commercial fishers. The rate of the tax is based on the processing activity of the business. The processing activity is classified as either “established” or “developing” by the Alaska Department of Fish and Game. The rates are as follows: Established Developing Floating 5.0% Floating 3.0% Salmon Cannery 4.5% Shore-based 1.0% Shore-based 3.0% Fisheries businesses file with the State on a calendar-year basis. Their tax returns are due by March 31 of the following year. From the taxes collected, the Department of Revenue distributes the taxes based on the location of the business. Municipalities will receive 50% of the tax collected from businesses from within their jurisdiction. If the tax collected is from a business within a city as well as a borough, the payment will be split equally between the borough and the city. For those businesses that operate outside a municipality or organized borough, 50% of those funds collected are shared through an allocation program administered by the Alaska Department of Commerce, Community and Economic Development. Fishery Resource Landing Tax (AS 43.77) levies the tax on processed fishery resources first landed in Alaska. The tax amount is based on the unprocessed value of the resource. This value is determined by multiplying a statewide average price per pound (based on Alaska Department of Fish and Game data) by the unprocessed 43 weight. This tax is primarily collected from factory trawlers and floating processors which process fishery resources outside of the state’s 3-mile limit and bring their products to Alaska for transshipment. This tax is based on a calendar year and must be filed by March 31. The rate is based on classification. The Alaska Department of Fish and Game determines whether a resource is “established” or “developing.” The rates are 3% for established resources and 1% for developing resources. The tax collected in this category is distributed in the same manner as the Fisheries Business Tax. Budgeting for this revenue is difficult. As with the severance tax on raw fish, there are many factors to consider. Some of the factors to be considered are: the number of fish available for harvesting, the market price of fish at the time of purchase, environmental and market issues and federal and state regulatory factors. The Borough does not know all of the businesses filing with the State or the statistics of the tax collected outside of municipalities and unorganized boroughs. For budgeting purposes, the Borough looks at the prior year’s revenues as well as the factors that are known and budgets accordingly. Using this method, it is estimated that FY2019 fish tax revenue will be $1,062,000. Utility Revenue Sharing (AS 10.25.570). The State of Alaska collects electric and telephone cooperative taxes and shares the proceeds, less the amount expended by the state in their collections to organized boroughs or a city of any class. With the increased use of cell phones and the decreased use of land lines, revenue from this source is expected to continue to decline. For budgeting purposes, the Borough looks at prior year’s average decreases and budgets accordingly. Using this method, it is estimated that the FY2019 revenue will be $15,500. INTEREST EARNINGS Interest Earned on Investments. KIB Code of Ordinances sections 3.04.01 through 3.04.030 establishes the guidelines and responsibilities of the Finance Director in investment and treasury management matters. For 44 efficiency, KIB has established a central treasury of pooled resources. In fiscal year 2019 the General Fund is expected to earn $5,000. This decline is due to both declining interest rates and fewer funds to invest. MISCELLANEOUS REVENUE Miscellaneous Revenue. This category includes revenues generated from animal control fines, sale of copies, sale of computer data and other miscellaneous revenue. For fiscal year 2019, total miscellaneous revenue is budgeted at $2,965. TRANSFERS IN Transfers In. This category includes revenues transferred from other funds into the General Fund. In FY2017 a loan was made to the Debt Service Fund to cover the bond expenses the State of Alaska did not reimburse the Borough for due to the Governor’s Veto in July 2016. In FY2018, $492,936 was repaid and the remaining $90,008 is scheduled to be repaid in FY2019. FUND BALANCE General Fund Balance. Fund balance is revenue that is left over at year end after all expenditures have been accounted for. It increases as the years go on, if revenues are greater than expenditures. It is the Borough’s goal to maintain a General Fund balance of $1 to $2 million. The following chart shows the fund balances for the last 10 years and the changes that took place. We estimate the General Fund will have a fund balance of $3,238,187 at the end of FY2018. The FY2019 General Fund budget has been balanced without any use of fund balance. 45 This page is left intentionally blank 46 GENERAL FUND REVENUE FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2018 Actual FY 2019 Budget Property Tax Real Property 20,175 159,796 744,135 722,096 1,355,811 Personal Property 11,865 21,508 84,631 84,827 150,838 TOTAL PROPERTY TAXES 32,039 181,304 828,766 806,923 1,506,649 Non Ad Valorem Taxes Boat Tax - Over 5 tons 22,451 (64) - - - Aircraft Tax 22,200 26,500 26,500 30,000 26,500 TOTAL NON AD VALOREM TAXES 44,651 26,436 26,500 30,000 26,500 Payment in Lieu of Taxes PILT - Federal 1,630,517 1,546,288 1,300,000 1,578,030 1,300,000 PILT - Kodiak Island Housing 25,586 31,579 31,000 27,602 28,000 PILT - Alaska Housing 14,437 14,245 - 15,834 14,000 TOTAL PAYMENT IN LIEU OF TAXES 1,670,540 1,592,112 1,331,000 1,621,466 1,342,000 Severance Taxes Fish 1,395,610 1,182,924 1,395,000 1,660,842 1,200,000 Mining 3,064 73,496 20,000 53,618 50,000 Logging 92,416 50,088 20,000 101,463 50,000 TOTAL SEVERANCE TAXES 1,491,089 1,306,507 1,435,000 1,815,923 1,300,000 Excise Taxes Tobacco Tax - - 200,000 310,482 350,000 TOTAL EXCISE TAXES - - 200,000 310,482 350,000 Penalties and Interest on Taxes Penalties and Interest 145,067 213,373 148,500 219,086 150,000 TOTAL PENALTIES AND INTEREST TAX 145,067 213,373 148,500 219,086 150,000 Licenses and Permits Annual Use Permit - - - - - Building Permits 38,177 57,928 40,000 42,466 33,000 Subdivision 5,710 6,490 5,500 4,200 6,000 Conditional Use Permits 2,750 1,000 1,000 250 1,500 Zoning Compliance Permit 6,475 6,840 5,000 6,180 6,000 Variance Fee 1,250 2,455 750 650 750 Zoning Change Fee 1,100 - - - - Electric Permit 3,709 3,451 3,700 3,873 3,500 Plumbing Permit 2,704 2,254 2,700 2,514 2,200 Planning & Zoning Review Fee 2,800 450 1,000 600 - Special Land Use - 1,050 - - - Dog License 1,477 1,628 500 1,467 1,600 Business License - Marijuana - - 1,600 - - Site Plan Review - - - 150 - TOTAL LICENSES AND PERMITS 66,151 83,546 61,750 62,349 54,550 47 INTERGOVERNMENTAL REVENUES FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2018 Actual FY 2019 Budget Federal Shared Revenues National Wildlife Refuge 203,084 230,082 191,973 191,973 150,000 TOTAL FEDERAL SHARED REVENUE 203,084 230,082 191,973 191,973 150,000 State Shared Revenues State Community Assistance 692,624 461,512 465,942 465,942 408,076 Fisheries Business Tax 1,382,320 1,270,403 1,103,101 1,103,101 1,050,000 Fisheries Resource Landing Tax 20,370 60,422 14,868 14,868 12,000 Telephone and Electric 16,987 16,481 15,500 17,321 15,500 Liquor License 53 - - - - Marijuana Licenses - - 2,500 500 500 PERS on Behalf Payment 146,085 107,145 99,382 82,920 151,020 TOTAL STATE SHARED REVENUES 2,258,439 1,915,963 1,701,293 1,684,652 1,637,096 TOTAL INTERGOVERNMENTAL 2,461,523 2,146,045 1,893,266 1,876,625 1,787,096 Fines Animal Control 55 491 - 441 - Zoning Violations - - - - - TOTAL FINES 55 491 - 441 - Interest Interest Earnings 72,077 30,078 13,000 60,668 5,000 Change in Market Value (17,866) (19,019) - (49,838) - TOTAL INTEREST 54,211 11,059 13,000 10,830 5,000 Miscellaneous Jury Duty 125 175 125 250 150 Sale of Copies 96 67 - 95 65 Sale of Maps 1,436 837 1,500 1,969 1,000 Fees - Dishonored Checks 181 361 250 219 250 Local Electric/Reimbursement - - - - - Other 434,765 1,784 10,000 3,740 1,500 Legal Fee Reimbursement 4,772 - - - - IBEW Reimbursement - - - - - TOTAL MISCELLANEOUS 441,375 3,225 11,875 6,273 2,965 Use of Fund Balance - - 403,958 - - Transfers In - - 492,936 492,936 90,008 Sale of Fixed Assets - - - 1,240 - TOTAL REVENUES 6,406,702 5,564,098 6,846,551 7,254,576 6,614,768 48 SUMMARY OF GENERAL FUND EXPENDITURES BY DEPARTMENT FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2018 Actual FY 2019 Budget Borough Assembly 149,658 149,570 157,593 147,431 173,700 Manager's Office 605,245 516,460 640,931 584,182 654,301 Clerk's Office 556,743 519,422 564,427 536,454 546,427 Legal Services 129,864 107,487 140,500 104,847 163,000 Finance 943,633 719,954 880,938 758,166 935,480 Information-Technology 930,200 810,500 898,269 806,484 1,119,339 Assessing 677,938 743,480 739,669 790,718 778,060 Engineering & Facilities 230,699 319,031 331,047 465,177 393,596 Community Development 777,637 860,160 894,786 880,241 848,839 Building Inspector 161,221 96,979 169,130 166,451 159,090 Economic Development 45,781 30,268 32,100 33,936 32,100 General Administration 175,696 177,983 341,384 194,859 284,135 Parks & Recreation 87,456 30,172 139,470 77,187 98,319 Emergency Preparedness 30,849 35,861 118,349 43,038 59,878 Animal Control 109,415 109,415 110,000 114,015 114,015 Education Culture & Recreation 23,949 17,562 4,500 4,665 20,489 Kodiak College & Libraries 195,000 96,000 72,000 72,000 50,000 Non-Profit Funding 389,000 233,999 207,500 207,500 184,000 Transfers Out 356,166 958,451 403,958 403,958 - TOTAL 6,576,153$ 6,532,754$ 6,846,551$ 6,391,308$ 6,614,768$ 49 SUMMARY OF GENERAL FUND EXPENDITURES BY FUNCTION FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2018 Actual FY 2019 Budget General Government 1,847,907$ 1,789,953$ 2,175,882$ 2,032,950$ 2,215,159$ Public Safety 301,485 242,255 397,479 323,504 332,983 Assessing 677,938 743,480 739,669 790,718 778,060 Finance/IT 1,873,833 1,530,453 1,779,207 1,564,650 2,054,819 Community Development 777,637 860,160 894,786 880,241 848,839 Other 741,186 408,002 455,570 395,288 384,908 Transfers Out 356,166 958,451 403,958 403,958 - TOTAL 6,576,153$ 6,532,754$ 6,846,551$ 6,391,308$ 6,614,768$ 50 LEGISLATIVE FY2019 PROGRAM DESCRIPTION: The Kodiak Island Borough government exists to provide effective and efficient government services within the powers and duties that will improve the quality of life in the community. The executive duties of the Borough are vested in the Borough Mayor. The mayor is elected at-large by the qualified voters of the Borough. The legislative power of the Borough is vested in the Borough Assembly which is also known as the governing body. The assembly consists of seven members elected at large. The Assembly formally establishes borough policy by ordinance or resolution. GOALS AND OBJECTIVES: ANALYSIS: Citizens have entrusted the Kodiak Island Borough government with powers that promote a vibrant, diverse, and healthy economy and community centered on Kodiak’s unique assets like our natural resources, people, and history. This includes a focus on a reasonable cost of living and a great quality of life where diverse cultures and viewpoints come together, and an engaged community of citizens who are working, living, and thriving together. Goals Department Objectives Indicators FY2017 Outcome FY2018 Outcome FY2019 Goal Update the strategic plan annually Done annually No Yes Yes # of Regular Assembly Meetings 22 21 20 # of Special Meetings 13 10 10 # of Work Sessions 27 21 25 SWAMC Conference attendees 2 1 2 AML Conference attendees 4 5 2 Borough Popular Report mailed to register voters 9,453 9,357 9,300 Develop a Borough-KIBSD multi- year fiscal plan Fiscal plan developed Develop economic development policies that promote a diverse economy and business Number of policies developedFoster Responsible economic development throughout the Borough Optimize the effective use of community resources and assets for the benefit of the borough citizens Provide efficient, effective, and consistent government processes Promote fiscal policies that ensure stability, growth and responsible government Hold Borough Assembly meetings to establish Borough policy by ordinance or resolution Foster public understanding of Borough Finances and operations Assembly attends Conferences for government training Goals, Objectives, and Performance Indicators: Facilitate involvement of all citizens and multi-cultural engagement in civic activities Number of civic activities involved in YesBorough Budget books available to the public Yes Yes 51 LEGISLATIVE (CONT.) FY2019 Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 30,000$ 31,400$ 31,000$ 31,800$ 31,000$ Fringe Benefits 4,212 4,235 4,393 3,926 4,500 Professional Services 72,346 72,000 75,000 72,931 95,000 Contributions - - - - - Legal Services - 827 - - - Support Goods & Services 43,100 41,109 47,200 38,774 43,200 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - - - - Total Expenditures 149,658$ 149,571$ 157,593$ 147,431$ 173,700$ Personnel FY2015 Actual FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Budgeted Total Number of Employees - - - - - Expenditures Personnel There is no personnel for this department. 52 BOROUGH MANAGEMENT FY2019 PROGRAM DESCRIPTION: The Manager provides administrative guidance to the governing body's policy decisions and serves as the chief administrative officer of the Kodiak Island Borough, overseeing the day-to-day business of the organization. The Manager is appointed by the Assembly. The Manager's office also includes Human Resources, a Grant Writer/Special Projects Support position, and an Administrative Assistant. GOALS AND OBJECTIVES ANALYSIS: With the addition of an Administrative Assistant in FY2018, the Manager's Office has been reorganizing. The Executive Assistant/HR Officer position was changed to focus solely on Human Resources and the Manager has broader support from a dedicated assistant. This change has increased the ability to give issues greater attention. Internal policy reviews this fiscal year included purchasing and emergency procedures. SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2019. Goals Department Objectives Indicators FY2017 Outcome FY2018 Outcome FY2019 Goal Be present for citizen comment period at Assembly meetings 100%100%100% Invite citizens to contact the Borough with questions and concerns 100%100%100% Monitor social media for citizen feedback regarding Borough operations Yes Yes Yes Attend the Kodiak Rural Regional Forums held three times per year 3 3 3 Direct staff to provide government to government communications regarding borough issues or concerns that affect other government entities. Yes Yes Yes Promote a culture of public trust of elected officials, appointed officials, and Borough Staff Review internal policies and practices and update as needed Identify a priority list for review 0 2 2 Continue to build government relationships with other local community governments such as second class cities and tribal governments Number of Reports Delivered Execute the annual budget and capital improvement Program Promote the building of a strong sense of community Yes Yes Monitor the effectiveness of Borough operations Annual budget completed before due; Provide guidance and recommendation for approval of the capital improvement program by December Goals, Objectives, and Performance Indicators: Assist the Assembly with policy implementation and administer quality cost effective services to the citizens of the Kodiak Island Borough Deliver Manager's Report at Assembly meetings; Provide introduction, summary and recommendation regarding Assembly meeting agenda items. 22 17 20 Yes 53 BOROUGH MANAGEMENT (CONT.) FY2019 Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 377,968$ 319,425$ 382,143$ 347,178$ 388,254$ Fringe Benefits 192,673 179,618 222,536 206,020 237,147 Professional Services - - - 175 - Contributions - - Legal Services - - Support Goods & Services 66,597 49,419 68,252 62,808 65,900 Capital Outlay - - - - Allocated to other funds (32,000) (32,000) (32,000) (32,000) (37,000) Operating Transfers - - - - - Total Expenditures 605,238$ 516,462$ 640,931$ 584,182$ 654,301$ Personnel FY2015 FY2016 FY2017 FY2018 FY2019 Budget Borough Manager 1 1 1 1 1 Deputy Manager 0 0 0 0 0 Human Resources Manager 0 0 0 1 1 Grant Writer/Special Projects 1 1 1 1 1 Executive Assistant 1 1 1 1 1 Total Number of Employees 3 3 3 4 4 Expenditures Personnel 54 BOROUGH CLERK FY2019 PROGRAM DESCRIPTION: The Borough Clerk’s Office provides the professional link between the citizens, the local governing bodies, and agencies of government at other levels. The Clerk’s Office Staff are public administrators who play intrinsic and essential roles in the community. The department provides administrative support to the Mayor and Assembly. Duties performed by this office are guided by KIBC 2.50.020 and Alaska Statutes 29.20.380. Some of the major and mandated duties of this office are the following: Administers all Borough Elections. The Clerk also prepares petitions and verifies signatures for initiatives, referendums, and recall elections. Manages Borough Records for active and inactive files, develops retention schedules and procedures for inventory, storage, and destruction of all Borough records as necessary. Assures that public records, including ordinances, resolutions, rules, regulations, and codes are available for public inspection as required by law. Publishes and gives notice of meetings to the Borough Assembly members and the public of the time, place, and location of the meetings. Prepares agendas and packets for the Assembly; provides for codification of ordinances; keeps a journal of all Borough Assembly meetings; and takes oaths, affirmation, and acknowledgements as necessary. Serves as parliamentarian to the Borough Assembly and advises other Borough boards on parliamentary procedures. 55 BOROUGH CLERK (CONT.) F Y2019 GOALS AND OBJECTIVES: Goals Department Objectives Indicators FY2017 Outcome FY2018 Outcome FY2019 Goal Make Borough meeting packets available to the public on the Borough website at the same time the packets are released to the Assembly % of packets made available to the Public on schedule 100%100%100% Promote online subscriptions to agendas and Assembly file activity notifications # of subscribers for various meeting instances 100 171 subscribers 180 Implement an All-Borough Department wide automated agenda management process # of agenda items entered, reviewed, and published 200 210 215 Release work session packets Tuesday at noon before Thursday's work session. Release all regular meeting packets at least 1 week before the regular meetings % of packets delivered to the Assembly on schedule 95%98%100% Make all Assembly public mail available to the public online % of Assembly mail made available to the public online 100%100%100% Electronically disseminate confidential materials submitted for Assembly consideration % of timely dissemination 100%100%100% Respond to all records request in a timely manner as required by Borough code % of timely responses as required Borough code 100%100%100% Provide an up-to-date code online within a week of an adoption of an ordinance that is codified Updated code within a week on an adoption 100%100%100% Maintain a citizen complaint rate of less than 5 per year # of complaints received 3 2 2 Assist and provide guidance to departments regarding, access, retainment, and preservation of records # of assistance 30 35 35 Conduct inventory and facilitate timely disposal of records Records Destroyed 30 cu. Feet 190.50 cu. Feet 50 cu feet Ensure the annual transfer of Records into archives Records Archived 180 cu. Feet 27 cu. Feet 50 cu feet Utilize electronic imaging and the internet to promote public access Pages of records scanned 456 520 550 Maintain a database of archived records and contracts, resolutions, ordinances, other items, and legal indexes Number of items indexed 254 260 275 Serve as filing officer by processing nominating petitions, financial disclosure reports, and lobbyist registrations and reports Number of filings 20 18 20 Effectively support the election/appointment process for board, committee, and commission members Number of appointments 49 50 50 Actively train election workers assigned to the 9 precincts in the Kodiak Island Borough Number of trainings conducted 7 7 7 Assembly meetings attended 71 60 60 # of resolutions adopted 42 40 40 # of ordinances adopted 31 30 30 Code Supplements 2 4 4 Ensure that public hearing notices are sent out as required by State law or Borough code Liquor, Marijuana, and Gaming Licenses investigated 25 27 27 Administer municipal elections and serve as filing officer for the Kodiak Island Borough Prepare agendas and maximize timely access to Borough packets, records, and information in an environmental friendly way Effectively coordinate and provide clerical support to the Assembly Provide administrative support to the Mayor, Assembly, and other boards and committees in compliance with open meeting act Effectively administer and coordinate municipal elections and provide support for State Elections Goals, Objectives, and Performance Indicators: # of contacts with the public on a fiscal year average % of elections not successfully contested or challenged 100%100%100% Maximize public access to local government by providing a safe and secure atmosphere where customers can feel comfortable bringing concerns and requests to the Borough Accurately record and carefully preserve and safeguard the legislative history of the Kodiak Island Borough. Assist customers through phone calls, emails, letters and one-on-one meetings including providing information with various departments to resolve problems and follow-up with customers 8,500 9,000 8,500 56 BOROUGH CLERK (CONT.) F Y2019 ANALYSIS: The main goal of the Clerk's Office is to provide an unparalleled support to the Mayor and Kodiak Island Borough Assembly with integrity. The Clerk's Office also helps customers regarding processes, complaints, concerns, and other issues. Although the Clerk's Office experienced some transition with staffing the past few years, it has not affected its ability to provide quality assistance and advice to the citizens regarding concerns. The Clerk's Office staff continues to review and find ways to streamline Clerk's office procedures and processes. In FY2018 there was a significant reduction in the advertising/hearings account. There are no anticipated additional or significant expenditures being requested for fiscal year 2019. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2019. Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 251,908$ 248,900$ 270,425$ 254,649$ 261,363$ Fringe Benefits 147,184 145,373 156,268 152,267 169,042 Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Support Goods & Services 157,651 125,148 137,734 129,539 116,022 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - Total Expenditures 556,743$ 519,421$ 564,427$ 536,454$ 546,427$ Personnel FY2015 FY2016 FY2017 FY2018 FY2019 Budget Borough Clerk 1 1 1 1 1 Borough Deputy Clerk 1 1 1 1 1 Assistant Clerk 1 1 1 1 1 Total Number of Employees 3 3 3 3 3 Expenditures Personnel 57 BOROUGH ATTORNEY FY2019 PROGRAM DESCRIPTION: The Borough attorneys provide legal counsel and advice to the Mayor, Assembly, the Manager, and all departments of the Borough. The attorneys are responsible for representing the Borough in lawsuits brought by or against the Borough in state or federal courts. The Kodiak Island Borough hires legal services via contract. GOALS AND OBJECTIVES: Protect the Borough from financial loss and actual or potential legal action. Ensure that all Borough operations are conducted in accordance with the law so that legal liabilities do not arise. Provide legal advice to the manager, elected officials, and staff members. Assist departments in resolving legal problems as they arise. ANALYSIS: The level of required legal support varies from year to year. In FY2018, there was an average of 11 matters per month upon which the attorney provided advice, opinion, litigation, or other legal work. SIGNIFICANT BUDGET CHANGES: In FY2019, litigation expenses were increased to accommodate some ongoing issues. Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services - - - - - Contributions - - - - - Legal Services 115,713 92,628 125,000 89,553 150,000 Support Goods & Services 14,152 14,860 15,500 15,294 13,000 Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures 129,865$ 107,488$ 140,500$ 104,847$ 163,000$ Personnel FY2015 Actual FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Budgeted Total Number of Employees - - - - - Expenditures Personnel There is no personnel for this department. 58 FINANCE DEPARTMENT FY2019 PROGRAM DESCRIPTION: The mission of the Finance Department is to provide competent and comprehensive financial services for the Kodiak Island Borough, to enable all departments to work in the best interests of the community, therefore achieving an outstanding level of service. The Finance Department has many different areas of responsibility including accounting, payroll, budgeting, cash management, issuance and refinancing of debt instruments (bond sales), submitting grant reports, customer service billing and collections (including property taxes and the landfill). The department's main function is to properly budget, account for, and report accurately and correctly all revenues and expenditures of the Kodiak Island Borough, and its subsidiary and/or affiliated government entities. The Finance Department's policy is to strictly comply with GASB, AICPA, and GAAP, to ensure the highest quality of all budgeting, accounting, and reporting to the Borough and the citizens of Kodiak Island. The Finance Department also includes the Borough's Information Technology Services Department. The Finance Director works with the Information Technology Department through weekly meetings to ensure all technology is working efficiently and correctly throughout the Borough. GOALS AND OBJECTIVES: Goals Department Objectives Indicators FY2017 Outcome FY2018 Outcome FY2019 Goal Ensure that Borough accounts receivable and payable are settled in a timely fashion Received award Received award Provide all citizens with accurate and timely financial records To provide the community with accurate financial records that uphold to GASB, AICPA, etc. Number provided Number provided Calls returned in 1 Business day % of Grant Reports Submitted timely Percent Collected per year Provide reliable and competent accounting services to all Borough departments Number provided Number provided Help Desk software report Number provided Process and mail all statements for the Landfill each Month # of help desk requests process for Information Technology Department Received the Popular Annual Financial Reporting Award 10 Years Consecutive Goals, Objectives, and Performance Indicators: Yes Yes N/A Available Yes Available 12 8 Years Consecutive 9 Years Consecutive Number provided 1212 9 Years Consecutive 10 Years Consecutive Continue a high rate of tax collections 99.60%99.10%98.50% 100% Return calls with in 1 business day to all Borough Departments Process quarterly stipend payrolls timely Process employee payroll by Friday biweekly 100% Yes Yes Yes Process all accounts payable by Friday of each week Available online and by printed copy Open.gov offered Calls returned in 1 Business day 1 12 1 1 Finance will respond to all calls with in 1 business day Offer an online option to view the Kodiak Island Borough Finances Received the GFOA Distinguished Budgetary Presentation award Provide Monthly Financials to the public and assembly Distribute the Comprehensive Annual Report (CAFR) by November 30th 100% 12 4 4 100%100%100% 4 12 8 Years Consecutive 100%100% 500 100% 541 537 59 FINANCE DEPARTMENT (CONT.) FY2019 ANALYSIS: The Finance Department will continue to maximize the use of technology to improve efficiency and accounting procedures Borough wide. To promote financial transparency to our citizens, the department has contracted with OpenGov (https://kodiakak.opengov.com/) to provide an online option which give the citizens of Kodiak Island the ability to view financial information related to the Kodiak Island Borough. The KIB is very proud to have again received GFOA’s Certificate of Achievement, the Distinguished Budget Presentation, and the Popular Annual Financial Reporting Awards. The Kodiak Island Borough was one of only two Alaskan governments to achieve all three awards. SIGNIFICANT BUDGET CHANGES: The FY2019 budget contains additional Personnel expenditures for a part-time temporary employee due to the long-standing vacant accountant position. Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 540,301$ 402,620$ 486,722$ 420,271$ 511,292$ Fringe Benefits 326,810 261,353 314,708 268,749 371,851 Professional Services 63 - - - - Contributions - - - - - Legal Services - - - - - Support Goods & Services 107,460 98,981 122,508 112,145 100,656 Capital Outlay - - - - - Allocated to other funds (31,000) (43,000) (43,000) (43,000) (48,319) Operating Transfers - - - - - Total Expenditures 943,633$ 719,954$ 880,938$ 758,166$ 935,480$ Personnel FY2015 Actual FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Budget Finance Director 1 1 1 1 1 Accountant 2 2 1 1 1 Accounting Technician 2 2 2 2 2 Clerk/Cashier 1 1 1 1 1 Secretary 1 1 1 1 1 Temporary Accounting Tech 0 0 0.5 0.5 0.5 Vacant Position (Accountant) 0 0 1 1 1 Total Number of Employees 7 7 7.5 7.5 7.5 Personnel Expenditures 60 INFORMATION TECHNOLOGY FY2019 PROGRAM DESCRIPTION: The Information Technology (IT) Department serves the Kodiak Island Borough by providing and supporting IT resources to enable business processes to be accomplished in a cost-effective and efficient manner. Examples of this include: Installing and maintaining desktop computers and software for all Borough employees. Maintaining and upgrading the Borough’s datacenter, including servers, storage, and networking assets. Executing backups of the Borough’s data and monitoring the integrity and availability of IT systems. Implementing security products and protocols to defend the Borough’s IT infrastructure against cyberattacks, viruses, and other malware. Developing and providing training for IT policies and procedures to support the Borough’s goals and objectives. Maintaining telecommunication equipment and contracts between the various locations that are served by the Borough. Maintaining current documentation on all information technology products and systems in operation. GOALS AND OBJECTIVES: ANALYSIS: The IT department continues to research and implement the industry’s best practices with information technology related to system reliability, integrity, and data security. The IT department has upgraded the Borough’s desktop computers to Windows 10 and Office 2016 to stay current with the industry’s supported software. IT is in the process of upgrading all the servers to currently supported software versions. The department is also in the process of upgrading the Borough’s telecommunication systems to current versions with hardware support. In FY2018, IT issued a telecommunication RFP for the replacement of the phone system and other telecommunication services. In FY2019, the department is expected to replace some storage infrastructure and the battery backup system in the Borough’s datacenter. Also, in FY2019, the IT department is budgeting to upgrade/replace the Borough’s tax assessment and collection software. Goals Department Objectives Indicators FY2017 Outcome FY2018 Outcome FY2019 Goal Provide current information technology resources and training to Borough Employees Number of trainings offer to employees each year 4 2 4 Continue to Improve employee awareness of cyberattacks, viruses, and other malware User Phishing Security Testing (Failures)9.9%9.8%5% Upgrade the Borough's telephone system to current telephone standards Completed throughout the Borough n/a Yes Yes Upgrade each employees desktop to the most compatible and efficent operating system Current Desktop Operating System Windows 7 Windows 10 Windows 10 # of Help Desk Tickets Opened 541 541 500 # of Help Desk Tickets Closed 533 537 500 Promote fiscal policies that ensure stability, growth and responsible government. Optimize the effective use of community resources and assets for the benefit of the borough citizens. Goals, Objectives, and Performance Indicators: Continued maintance and problem solving for all Borough employee technology needs Provide efficient, effective and consistent government processes. Maintain up-to-date documentation on all currrent IT infrastructure systems Documentation reviewed and updated Yes In Progress Proposed All IT infrastructure equipment is under warranty and/or has sufficient working backups All IT infrastructure has been evaluated and meets objective No In Progress Budgeted 61 INFORMATION TECHNOLOGY (CONT.) FY2019 SIGNIFICANT BUDGET CHANGES: The IT department will be upgrading or replacing the Borough’s tax assessment and collection software. This is a multi-year project and is budgeted at $200,000 for the first year. The Uninterruptable Power Supply (UPS) installed in the Borough’s datacenter will be replaced. The IT Department currently has $50,000 budgeted for this project. Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 365,349$ 268,003$ 285,992$ 273,862$ 291,909$ Fringe Benefits 211,634 164,240 170,980 165,684 184,173 Professional Services 17,980 3,075 15,000 6,680 15,000 Contributions - - - - - Legal Services - - - - - Support Goods & Services 328,564 306,297 357,297 347,531 355,257 Capital Outlay 32,673 94,884 75,000 18,726 273,000 Allocated to other funds (26,000) (26,000) (6,000) (6,000) - Operating Transfers - - - - - Total Expenditures 930,200$ 810,499$ 898,269$ 806,484$ 1,119,339$ Personnel FY2015 Actual FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Budget IT Director 1 1 1 1 1 IT Supervisor 1 1 1 1 1 Programmer/Analyst 1 1 0.5 0.5 0.5 PC Network Technician II 1 1 1 1 1 Total Number of Employees 4 4 3.5 3.5 3.5 Expenditures Personnel 62 ASSESSING DEPARTMENT FY2019 PROGRAM DESCRIPTION: The primary function of the Assessing Department is the annual valuation and assessment of approximately 7,800 real and 400 personal property accounts at their full and true value. The real property function requires a re-inspection program phased cyclically, the annual appraisal of new construction and additions, and includes the audit, discovery, and compliance programs. This function includes maintaining assessment standards, ownership records, property description data, and other related clerical support. The personal property function is accomplished though the filing and auditing of business personal property renditions, and related discovery and compliance activities. The personal property appraisals also include field inspections, when necessary. GOALS AND OBJECTIVES: ANALYSIS: Assessing has a periodic review process for physically inspecting all properties within the Borough as prescribed in Alaska Statute 29.454.150. In Kodiak, Assessing re-inspects all road system properties every three years, and remote properties including outlying cities every five years. The department has established a schedule with GIS to ensure that assessing has the latest GIS data for those remote areas being inspected each year. This helps to keep costs down as physical inspection of all remote properties costs tens of thousands of dollars. In 2010 the State Inspector completed an audit of all Assessing tasks and determined that the Kodiak Borough was not meeting state requirements and that it would require at least one more Appraiser position to adequately meet these requirements. In 2011 a second Appraiser Technician position was added to the Assessing staff. Besides physically inspecting a portion of the real properties, State Statute 29.45.110 requires that all properties be re- appraised to ensure that the properties meet the definition of "full and true value". Currently the Borough Assessing Department has a very viable schedule for meeting State Statutes. Over the last five years, Assessing has changed, amended, and upgraded the methods for dealing with personal properties with the overall goal of equitable assessments. Future tasks are instituting a review system for all exempt properties, better cataloguing of these properties, and tracking changes. Also, the Borough will be transitioning to a new Computer Assisted Mass Appraisal (CAMA) software as the present software provider will not be updating the current system. SIGNIFICANT BUDGET CHANGES: The Assessing budget is mostly personnel costs. As noted above, the State Assessor's Office determined in 2010 that Kodiak Island Borough was short staffed given the Borough size and parcel count. Cutting the budget by cutting personnel is not viable if Assessing is to continue to meet State Statutes. However, as of this date it is most probable that the current assessor will retire at the end of FY2018, which would in turn reduce the current budget by a significant number. Goals Department Objectives Indicators FY2017 Outcome FY2018 Outcome FY2019 Goal 500 5000 2000 1800 1200 75 25 60 Goals, Objectives, and Performance Indicators: Strive to provide a comprehensive taxation and assessment program that is fair and equitable for all citizens Re-inspect the road system properties in the following boundaries: Monashka Bay, Bells Flats, Middle Bay, Chiniak, Pasagshak Total re-inspected residential properties Total re-inspected commercial properties Total re-inspected remote properties 300 325 Administer tax exemption programs that meet local, state and federal requirements Reviewed properties GIS Re-inspection and revalue of remote properties Number of parcels processed each year Periodical update of exempt properties to ensure the properties still meet requirements for exemption 0 10 10 5000Real Property Parcels adjusted through market analysis and model updates 5000 To administer senior citizen and disabled veterans exemptions 649 649 685Total number of senior citizen and Disabled Veteran exemptions filed 63 ASSESSING (CONT.) FY2019 Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 376,211$ 422,455$ 413,577$ 460,871$ 443,569$ Fringe Benefits 252,222 269,444 268,970 272,679 281,381 Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Support Goods & Services 52,505 55,581 61,122 61,168 57,110 Capital Outlay - - - - - Allocated to other funds (3,000) (4,000) (4,000) (4,000) (4,000) Operating Transfers - - - - - Total Expenditures 677,938$ 743,480$ 739,669$ 790,718$ 778,060$ Personnel FY2015 Actual FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Budget Assessor 1 1 1 1 1 Appraiser 1 1 1 1 1 Assessment Clerk ll 0 1 1 1 1 Assessment Clerk l 1 0 0 0 0 Appraiser Technician 2 2 2 2 2 Total Number of Employees 5 5 5 5 5 Expenditures Personnel 64 ENGINEERING AND FACILITIES FY2019 PROGRAM DESCRIPTION: The Engineering and Facilities Department is responsible for the safe operation and maintenance of all Borough-owned grounds and facilities and administrates all service-area maintenance contracts. The Borough’s Capital projects are coordinated and administered by the Projects Office, which is overseen by the Engineering and Facilities Department. The department is also responsible for the operation of the KIB Landfill. The Landfill is used for the disposal of garbage, metals, construction debris, and the potential recycling of these materials to prolong the use of the existing landfill. The department also provides staff and funding for the Solid Waste Advisory Board. Engineering and Facilities also operates the Leachate Treatment Plant. This plant processes drainage liquids from the landfill and purifies the liquids to state drinking water standards. The Kodiak Fisheries Research Center is also maintained and operated by the Engineering and Facilities Department. The aquarium at KFRC is staffed and maintained for public enjoyment and education by the Borough and is also operated by Engineering and Facilities. GOALS AND OBJECTIVES: ANALYSIS: The Engineering and Facilities Department continues to seek funding sources to increase efficiencies for energy and indoor air quality for Borough-owned facilities. The Department also seeks funding to bring Borough buildings into compliance with the Americans with Disabilities Act during renovations. In FY2018, work continued in completing school bond projects. Remaining bond projects are scheduled for FY2019, including the Peterson Elementary and Kodiak Middle School Paving/Underground Storage Tank Project. The Department also plans to continue the household hazardous waste collections during Kodiak Island's Annual Spring Cleanup. This service provides the community with no disposal costs of household hazardous wastes such as paints, motor oils, chemicals, etc. on the cleanup day. SIGNIFICANT BUDGET CHANGES: A new position, Engineering and Facilities Deputy Director, was added. Maintenance Coordinator and Construction Inspector positions were removed. Goals Department Objectives Indicators FY2017 Outcome FY2018 Outcome FY2019 Goal Continue to work on deferred projects listed on the Renewal and Replacement Schedule Number of Projects completed 6 Completed Projects Perform daily maintenance and janitorial of facilities Cleaning and Maintainance Yes Yes Yes Provide support for service areas to maintain safe roads All complaints from public for road service areas are transmitted to board members Within 24 hours complaints are uploaded to complaint system on KIB website 100%100%100% Goals, Objectives, and Performance Indicators: Yes Yes Yes Yes Yes Yes Design, operate, and maintain Kodiak Island Borough facilities in a safe, healthy, and responsible manner with attractive, comfortable and efficient environments Provide quality information to various Borough Departments as needed. Staffed requested support meetings Staffed various advisory boards Provide staff support and guidance for all capital projects and staff support for various advisory boards. 65 ENGINEERING AND FACILITIES (CONT.) FY2019 Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 103,397$ 146,710$ 149,490$ 234,475$ 164,528$ Fringe Benefits 87,361 105,076 104,576 149,305 143,876 Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Support Goods & Services 39,942 67,245 76,981 81,398 85,192 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - - - - Total Expenditures 230,700$ 319,031$ 331,047$ 465,177$ 393,596$ Personnel FY2015 Actual FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Budget Construction Inspector/Engineer 1 1 1 0 0 Director 1 1 1 1 1 Deputy Director 0 0 0 1 1 Project Manager/Inspector 1 1 1 1 1 Project Assistant 1 1 1 1 1 Secretary lll 1 1 1 1 1 Solid Waste Manager/Environmental Specialist 1 1 0 0 0 Maintenance Mechanic 1 1 1 1 1 Receptionist/Interpretive Specialist 0.5 0.5 0.5 0.5 0.5 Vacant Position (Solid Waste Manager) 0 0 1 1 1 Total Number of Employees 7.5 7.5 7.5 7.5 7.5 Expenditures Personnel 66 COMMUNITY DEVELOPMENT FY2019 PROGRAM DESCRIPTION: The Community Development Department is responsible for several Borough functions. The department's four primary functions are: 1) Administer the Borough's zoning and land use regulations. Title 17 of the Kodiak Island Borough Code contains the Borough’s zoning and land use regulations, as well as its regulations governing administrative land use actions, appeals of administrative land use actions and processes for adopting changes to these regulations. The Community Development Department oversees interpreting and enforcing Title 17 to include permit issuance, site plan review, land use application processing, and customer service. The department is also responsible for initiating necessary changes to Title 17. 2) Administer the Borough's subdivision/platting regulations. Title 16 of the Kodiak Island Borough Code contains the Borough’s platting (subdivision) regulations, which include subdivision and vacation regulations, standards for physical improvements to be made during the subdivision process, and waiver and appeals processes. Community Development provides applicants and surveyors technical guidance through the platting process, conducting pre-application reviews, numerous plat reviews per application, site visits and other technical expertise needed to ensure the responsible subdivision of land in the Borough. 3) Perform short and long-term planning on both an area-wide and non-area-wide basis. Alaska Statute grants the Borough planning authority within its jurisdiction, including the cities within the Borough that have not been delegated the authority to perform their own planning functions. No cities within the Borough have planning authority, making the Borough responsible for short and long-range planning Borough wide. Community Development is responsible for updating the Borough’s area-wide comprehensive plan, which includes long-range planning specific to each community in the Borough. The department is also responsible non-area- wide planning efforts such as site-specific master plans, subdivision plans, and corridor plans. 4) Provide technical expertise and support to Borough boards and committees. Community Development provides staffing to the Planning and Zoning Commission, Parks and Recreation Committee, and Local Emergency Planning Committee. In addition, the Community Development Director represents the department as a non-voting member of the Borough Lands Committee and as staff to the Borough Manager during Borough Assembly regular meetings and work sessions. The department staff is also called upon to participate in the activities of other boards and committees when their technical expertise is needed, such as the City of Kodiak’s Downtown Revitalization Committee and the Borough’s now inactive Marijuana Task Force. The Department works with elected officials, agency staff, and community members alike to promote sound development and ensure that Borough regulations, policies and procedures related to planning, land use, and development reflect the community's vision and values as identified in the Borough's comprehensive plan. 67 COMMUNITY DEVELOPMENT (CONT.) FY2019 GOALS & OBJECTIVES: ANALYSIS: Aside from providing standard services such as zoning compliance permitting, processing land use action applications, and performing subdivision/platting reviews, staff focused on several notable standalone projects and efforts in FY2018, several of which were identified in FY2018. Residential Small Lot Subdivisions - The department worked with the Planning & Zoning Commission and the Assembly to develop a new zoning district that allows for significantly smaller residential lots than previously allowed under the Borough's zoning code. Creation of this district allows for greater variety in housing choice and overall lifestyle within the Borough. EPA Brownfield Community Assessment Grant - The Borough was awarded a total of $600,000 by the U.S. EPA for the purposes of identifying, prioritizing, and assessing contaminated sites within the Borough. This project, which kicked off in October 2017, opens the door for future funding and cleanup opportunities for the Borough, which will ultimately lead to site revitalization and economic development. Goals Department Objectives Indicator FY2017 Outcome FY2018 Outcome FY2019 Goal 100% of Preliminary Plat reviews completed no later than 6 days prior to P&Z's consideration.Yes Yes Yes 100% of (Abbreviated) Preliminary Plat reviews completed with 20 days.Yes Yes Yes 100% of Final Plat reviews completed within 20 days of receipt.Yes Yes Yes 100% of plats recorded within 7 days of receipt by the department.Yes Yes Yes 100% of administrative land use requests presented the month directly following the P&Z Regular Meeting agenda deadline.Yes Yes Yes 100% of administrative land use requests transmitted for Assembly review within 30 days of P&Z approval.No No Yes 100% of complaints investigated within 7 days.Yes Yes Yes 50% of violations resolved.Yes Yes Yes Prepare newspaper advertisements for public hearings, public meetings, and for committee meetings staffed by the department. 100% of hearings and meetings advertised at least two weeks in advance.Yes Yes Yes Issue Zoning Compliance Permits (ZCPs) in compliance with current code.100% of ZCPs issued in compliance with current code.Yes Yes Yes Periodically review zoning codes to ensure they serve the best interest of the community At least 3 zoning code chapters reviewed/changed.3 3 4 100% of land disposal requests presented the month directly following the P&Z Regular Meeting agenda deadline.Yes Yes Yes 100% of land disposal requests transmitted for Assembly review within 30 days of P&Z approval.No Yes Yes Perform periodic reviews of the adopted Comprehensive Plan (may be by plan section). Begin at least one section review of the Comprehensive Plan.No Yes Yes Complete other planning efforts as directed by P&Z and the Assembly.Begin at least one major planning effort per year as directed by P&Z and the Assembly.0 1 1 Attend 100% of P&Z meetings.24 24 24 Attend 50% of Assembly meetings.12 12 12 Attend 100% of Parks & Recreation Committee meetings.12 12 12 Attend 50% of Borough Lands Committee meetings.Yes Yes Yes Host a booth at CrabFest to promote Emergency Planning and Preparedness 5 Years 6 Years 7 Years Host a Trails Summit to promote education and awareness of local trails 1 1 0 Host outreach activities during National Planning Week 0 0 1 Post 6 news flashes on the Borough website annually.0 6 7 Post 6 updates to the department website annually.0 6 7 Post 12 Facebook posts annually.0 12 12 Hold public meetings for significant code changes and projects being administered by the department or partner agencies. Hold at least 5 public meetings per year.5 5 5 100% of P&Z public hearings attended.12 12 12 100% of land use related Assembly public hearings attended.Yes Yes Yes Participate in public radio shows and provide information to public media sources.Participate in radio shows and contribute to news articles quarterly.4 0 4 Implement land use policies, regulations, and strategic plan goals established by the Assembly. Educate and engage the public in land use regulations as well as any potential changes. Goals, Objectives, and Performance Indicators: Review Plats in an efficient/timely manner. Present proposed administrative land use changes to the Planning & Zoning Commission (P&Z) and the Assembly in an efficient/timely manner. Perform the functions assigned to the department in an efficient and effective manner. Work with Resource Manager to ensure Borough lands are made available for suitable uses that serve the public interest. Perform code enforcement functions as identified in Borough policy. Attend public hearings for all administrative land use and code changes, as required by code. Use the Borough website and social media to disseminate information to the public. Provide accurate and factual data to a wide range of residents to promote well- informed decision making. Make staff available to provide technical expertise and/or administrative support during board and committee meetings. Participate in local outreach and public education events. 68 COMMUNITY DEVELOPMENT (CONT.) FY2019 Larsen Bay 2008 Comprehensive Plan Annex Update - Community Development is working with the community of Larsen Bay to update their annex to the Borough's adopted 2008 Comprehensive Plan. This update will refresh data, review existing issues, goals, policies, and implementation actions for relevance, and make appropriate changes to the plan to reflect the community's current conditions and vision for the future. Kodiak Island Borough Hazard Mitigation Plan - This project is carried over from prior fiscal years, but has experienced renewed momentum in fiscal year 2018 with the onboarding of a consultant team who has been tasked with completion of the plan. This plan includes the Borough in its entirety and meets all state and federal requirements for hazard mitigation planning. Completion of this plan affords the Borough opportunities to apply for and receive federal funding relating to disaster mitigation and relief funding. Killarney Hills Master Plan - The group of Borough-owned parcels, collectively referred to as Killarney Hills, is a ~16- acre tract of land that was once a proposed hospital site, but is now recreational ball fields and green space. The community has long discussed options for site development. Community Development is now engaging in a master planning effort for the tract, with a focus on stakeholder engagement, to determine the highest and best use of the property. This project will continue into FY2019 and once complete, will guide development of the parcel for the foreseeable future. This planning effort provides opportunity for many types of development that promote livability in Kodiak; residential, retail, recreational, mixed business/residential, and greenspace or other public space are all options for the parcel that would enhance life for Kodiak residents. Telecommunications Tower Regulations - Community Development has worked with the Planning & Zoning Commission and the Assembly to develop sound regulations for telecommunications infrastructure in the Kodiak Island Borough. As this type of infrastructure experiences more demand, the presence of telecommunications towers begins to have impacts on the community. To be proactive and minimize unintended negative consequences of tower construction and operation, the Borough opted to develop regulations that would protect Kodiak's citizens, while still allowing telecommunications providers the opportunity to expand and enhance their local services. Parks & Recreation Comprehensive Plan Update - Community Development is working with the Planning & Zoning Commission, Assembly, and Parks & Recreation Committee in kicking off an update to the Borough's 37-year-old Parks & Recreation Plan. The update of this plan is identified as an implementation action in the Borough's adopted 2008 Comprehensive Plan. This project seeks to update information on existing conditions, perform a needs assessment, and identify issues to develop a proposed solution to meet the Borough's recreational needs and develop an action plan for implementation. As a community that spends a majority of its time outside, the goal of this plan is to encourage more community engagement and consensus building to provide a better quality of life for residents and to enhance the recreational experiences of visitors to Kodiak. SIGNIFICANT BUDGET CHANGES: No significant budget changes in FY2019. 69 COMMUNITY DEVELOPMENT (CONT.) FY2019 Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 354,797$ 413,994$ 412,619$ 438,592$ 412,484$ Fringe Benefits 235,706 271,093 260,373 285,084 273,665 Professional Services 9,719 9,567 15,000 13,217 9,000 Contributions - - - - - Legal Services 1,093 18,365 10,000 19,509 10,000 Support Goods & Services 176,822 147,641 197,294 124,339 144,190 Capital Outlay - - - - - Allocated to other funds (500) (500) (500) (500) (500) Operating Transfers - - - - - Total Expenditures 777,637$ 860,160$ 894,786$ 880,241$ 848,839$ Personnel FY2015 Actual FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Budget Community Development Director 1 1 1 1 1 Associate Planner/Enforcement 1 1 1 1 1 Associate Planner/Long Range Planning 1 1 1 1 1 Secretary lll 1 1 1 1 1 Code Enforcement Officer 1 1 1 1 1 GIS Analyst 0 0 1 1 1 Total Number of Employees 5 5 6 6 6 Expenditures Personnel 70 BUILDING OFFICIAL FY2019 PROGRAM DESCRIPTION: The Kodiak Island Borough Building Inspection Program ensures compliance with adopted building codes and related zoning codes. The Borough, by means of a Memorandum of Agreement, uses the City of Kodiak for administration of the Borough’s Building Inspection Program. Inspections performed on residential and commercial building construction include structural, mechanical, electrical, and plumbing inspections. This ensures that every new construction project in the Kodiak Island Borough complies with applicable adopted building codes and fire codes. Plan reviews for large construction projects are conducted by the City of Kodiak building inspection staff or City of Kodiak’s professional plan review service before a building permit is issued. Building height, setbacks, and parking requirements are some of the zoning requirements checked in the field by the building inspection staff. The Community Development Department administrates and operates the Building Inspection Fund. The Department also provides information to the public and contractors about the most current additions of the building, mechanical, electrical, and plumbing codes. GOALS AND OBJECTIVES: Continue a positive relationship between the City of Kodiak and the Kodiak Island Borough Building Inspection contract. Encourage and enable the continuing education of the building inspectors. Encourage and enable the maintenance of the City's delegated plan review authority from the State of Alaska and maintenance of the AHFC building inspections program approval. Encourage and enable the City to maintain and improve their Insurance Service Office (ISO) rating. ANALYSIS: The City of Kodiak provides monthly and annual reports outlining their building permitting activities, both inside and outside the City of Kodiak. The monthly/annual valuation and permit reports are then reviewed by the Community Development Department. In FY2018 the City of Kodiak provided the following report for Kodiak Island Borough boundaries: 93 Building Permits 44 Plumbing Permits 72 Electrical Permits Inspections related to these permits are performed as required by Building Department personnel. The Building Inspection Department will continue to annually review the Memorandum of Agreement between the City of Kodiak and the Kodiak Island Borough for the provision of building inspection services within the road system. The Memorandum of Agreement will then be placed on the Assembly's agenda at the beginning of each calendar year for review and consideration. SIGNIFICANT BUDGET CHANGES: The budget has decreased by $30,630 for FY2019. The FY2019 proposed budget was calculated by extrapolating FY2018 data and finding the 5-year average of actual expenditures. 71 BUILDING OFFICIAL (CONT.) FY2019 Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services 147,490 76,633 145,000 142,231 138,500 Contributions - - - - - Legal Services - - - - - Support Goods & Services 13,731 20,347 24,130 24,220 20,590 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfer - - - - - Total Expenditures 161,221$ 96,980$ 169,130$ 166,451$ 159,090$ Personnel FY2015 Actual FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Budgeted Total Number of Employees - - - - - Expenditures Personnel There is no personnel for this department. 72 ECONOMIC DEVELOPMENT FY2019 PROGRAM DESCRIPTION: The function of the Economic Development Program is to provide the Assembly with the opportunity to pursue the most feasible economic development opportunities that will be of benefit to the entire community. GOALS AND OBJECTIVES: Engage citizens in understanding the value of establishing an economic development entity. Promote the value of having community leaders at the table when effects on fish policy are up for discussion. Encourage economic development by identifying training opportunities that may be available to community members. Provide the Kodiak Chamber of Commerce with funding support to educate business owners, host local events, and promote business development. Promote economic diversification. Support different community entities in collaborating and creating partnerships to strengthen opportunities for economic development. ANALYSIS: Though the Borough does not have dedicated Economic Development personnel, the organization has worked to maximize its involvement in economic development through the execution of a joint agreement with the City of Kodiak to fund a contracted fisheries analyst. Among other things, in FY2018 the fisheries analyst has provided written monthly reports to the Fisheries Work Group and has made this information available to the Borough Assembly and City Council to make sound policy decisions on fisheries-related issues. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2019. Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services 43,899 29,168 30,000 33,336 30,000 Contributions - - 1,500 - 1,500 Legal Services - - - - - Support Goods & Services 1,882 1,100 600 600 600 Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures 45,781$ 30,268$ 32,100$ 33,936$ 32,100$ Personnel FY2015 Actual FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Budgeted Total Number of Employees - - - - - Expenditures Personnel There is no personnel for this department. 73 GENERAL ADMINISTRATION FY2019 PROGRAM DESCRIPTION: The function of the General Administration department is to provide for organization- wide needs such as basic office supplies, employee training, and recognition. GOALS AND OBJECTIVES: Provide continuing education opportunities to department staff to increase efficiency and maintain/increase knowledge with applicable state and federal laws. Maintain the Drug-Free Workplace program, including training for all employees. Maintain the Blood Borne Pathogens Training program for all employees to comply with Occupational Safety and Health Administration (OSHA) standards. Maintain the quarterly safety training program for all employees to comply with Occupational Safety and Health Administration (OSHA) Standards. Continue award programs to recognize outstanding employees. Maintain the Employee of the Quarter and Employee of the Year incentive awards programs. Maintain the service award program (service pins) for employees to promote and reward longevity. ANALYSIS: This department provides for basic needs for the entire Borough to function such as postage and stationary, as well as for items that benefit all employees such as safety training and recognition through an employee award system. New quarterly safety training modules by a third-party vendor have been added to comply with OSHA standards. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2019. Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 815$ 814$ -$ 833$ 1,000$ Fringe Benefits 2,382 2,886 - 2,880 3,433 Professional Services Audit Expenses 101,818 76,197 115,000 98,555 105,000 Contracted Services - - - - - Contributions 4,877 15,169 15,000 35,103 18,000 Legal Services - - - - - Support Goods & Services 65,804 82,918 123,700 57,488 156,702 Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures 175,696$ 177,983$ 253,700$ 194,859$ 284,135$ Personnel FY2015 Actual FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Budgeted Total Number of Employees - - - - - Expenditures Personnel There is no personnel for this department. 74 PARKS AND RECREATION FY2019 PROGRAM DESCRIPTION: The major function of this program is to operate and maintain Borough parks, trails, and trailheads and provide informational and mapping materials associated with Borough recreational activities. The Parks and Recreation Program also develops a renewal and replacement plan for all parks. Funding has been requested for additional equipment upgrades and improvements for FY2019. GOALS AND OBJECTIVES: Provide the Borough communities with safe and enjoyable parks, trails, and open space. ment and clear brush at parks. control for bike path. Increase community involvement to help develop improvements for parks and trails. ANALYSIS: Parks and Recreation completed multiple upgrades, increased code enforcement, and maintenance responsibilities throughout various parks. In FY2018 the program removed brush and overburden along edges of the bike path for improved drainage and to control ice in the winter. Parks and Recreation also requested and received a state permit for debris removal from waterways owned and operated by the Borough. SIGNIFICANT BUDGET CHANGES: The repair of park facilities and previously deferred maintenance projects has increased the personnel and fringe benefit costs for FY2019. Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 13,357$ 8,497$ 61,328$ 17,414$ 39,955$ Fringe Benefits 6,203 4,073 30,342 4,304 25,864 Professional Services 41,049 - 5,000 8,431 10,000 Contributions - - - - - Legal Services - - - - - Support Goods & Services 26,846 17,602 42,800 38,003 22,500 Capital Outlay - - - 9,035 - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures 87,455$ 30,172$ 139,470$ 77,186$ 98,319$ Personnel FY2015 Actual FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Budgeted Total Number of Employees - - - - - Expenditures Personnel There is no personnel for this department. 75 EMERGENCY PREPAREDNESS FY2019 PROGRAM DESCRIPTION: Alaska Statute 26.23.060 (b) requires Alaska political subdivisions to be responsible for disaster preparedness and coordination of response. This fund was initially intended to provide funds for electricity and maintenance associated with the Siren Alert Warning Systems (SAWS), which are also known as Tsunami sirens. Over the years this fund has evolved to include emergency expenses and staff salaries when associated with a disaster event or to provide supplemental funding when needed to support staff emergency preparedness training and participation in annual exercises conducted in conjunction with the City of Kodiak, USCG, Providence Kodiak Island Medical Center, the State of Alaska, and others. GOALS AND OBJECTIVES: Operate and maintain the community Siren Alert Warning Systems (SAWS). To provide the community with emergency prepared staff in the event of a disaster. to fill critical Incident Management Team (IMT) positions. - to-date. nities with emergency preparedness efforts. ANALYSIS: The Emergency Preparedness Fund repaired and replaced multiple tsunami sirens throughout the Borough. The department requested Assembly funding to continue repairs and replacement of remaining sirens. The department is also seeking continued funding of the Incident Management Team (IMT) Incident Commander, Logistics Section Chief, Finance Section Chief, Public Information Officer, and various other position specific unit leader position training in FY2019. This training is specifically required due to personnel changes and lack of trained personnel to fill critical IMT positions. In FY2019 the program has requested continued support for adequate non-departmental funding to pay the salaries of those Borough employees who participate in Borough emergency preparedness exercises and who perform IMT duties during any actual disasters that may occur. SIGNIFICANT BUDGET CHANGES: No significant budget changes in FY2019. Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 3,592$ 2,535$ 19,707$ 4,204$ 6,803$ Fringe Benefits 1,487 1,425 12,492 2,443 5,175 Professional Services 11,375 12,889 70,000 21,917 30,000 Contributions - - - - - Legal Services - - - - - Support Goods & Services 14,395 19,012 16,150 14,473 17,900 Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures 30,849$ 35,861$ 118,349$ 43,038$ 59,878$ Personnel FY2015 Actual FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Budgeted Total Number of Employees - - - - - Expenditures Personnel There is no personnel for this department. 76 ANIMAL CONTROL FY2019 PROGRAM DESCRIPTION: The Kodiak Island Borough contracts with the City of Kodiak to provide for Animal Control Services. The program supplies officers to patrol all neighborhoods as needed to address loose dogs and cats, investigate nuisance animals, and operate a shelter to house them. Animal Control Services also encourages compliance with Borough pet licensing program and leash requirements where and when applicable. The contract between the Borough and the City states that the City will provide the Patrol Officer(s), the vehicle(s), and the shelter (which is contracted to the Humane Society of Kodiak). The humane shelter is used to re-unite animals with the owners and is an adoption center for surrendered or abandoned animals of Kodiak. The shelter ensures that impounded animals are current on rabies vaccinations before being released back to the public. This arrangement works for the majority of animal control cases, but does not work for large animals such as horses. In the past the Borough has contracted with the Kodiak State Fair and Rodeo Association to hold large animals until any issue is resolved. The Borough’s Enforcement Officer and the City's Animal Control personnel will work closely on some cases. The Community Development Department administrates and oversees the Animal Control Fund. GOALS AND OBJECTIVES: Continue a positive relationship between the City of Kodiak and the Kodiak Island Borough for community Animal Control. of Kodiak regarding animal nuisances, dangerous animals, and animal cruelty. Kodiak for providing veterinary services as required to ensure vaccination. able and promote the continued contract between the City of Kodiak and the Humane Society of Kodiak for providing shelter services. ANALYSIS: The City of Kodiak provides reports on an annual and as-requested basis outlining their animal control activities, both inside and outside the City of Kodiak. For the last full reporting year (FY2018), the City provided the following services for Borough boundaries: 71 Impounds 78 Licenses 1 Citation 25 Aggressive Animals 22 Cruelty 25 Annoying Animals 315 Actual Calls 312 Actual Responses SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2019. The Humane Society of Kodiak is a 501C3 that is locally organized and is not affiliated with the Humane Society of the United States. 77 ANIMAL CONTROL (CONT.) FY2019 Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services 109,415 109,415 110,000 114,015 114,015 Contributions - - - - - Legal Services - - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures 109,415$ 109,415$ 110,000$ 114,015$ 114,015$ Personnel FY2015 Actual FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Budgeted Total Number of Employees - - - - - Expenditures Personnel There is no personnel for this department. 78 EDUCATION, CULTURE, AND RECREATION FY2019 PROGRAM DESCRIPTION: This program consists of contributions to non-profit agencies that provide educational, cultural, and/or recreational opportunities for the citizens of the Kodiak Island Borough. GOALS AND OBJECTIVES: Provide financial assistance to non-profit agencies to ensure their financial viability to provide educational, cultural, and recreational opportunities for the residents of the Borough. -quality wide-appeal programs for the benefit of Borough residents. ANALYSIS: This fund was established to reflect money allocated to non-profit agencies. As the local philosophy regarding the Borough's funding of these agencies has changed, the accounting for those funds has also changed. A fund titled Non-Profit Funding accounts for the discretionary funding of non-profit agencies while this account now reflects payment of actual costs for the North Star PTA provision of streetlighting near the school, and pass through monies from the State of Alaska to the Karluk IRA Council, a tribal entity. SIGNIFICANT BUDGET CHANGES: The funding for the Karluk IRA Council is pass-through Community Assistance Program funding from the State of Alaska. According to the State, they did not meet the required population minimum in FY2018 and therefore did not receive a Community Assistance payment. They did qualify for funding in FY2019. Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services - - - - - Contributions - - - - - North Star PTA 4,649 4,662 4,500 4,665 4,700 Karluk IRA Council 19,300 12,900 - - 15,789 Legal Services - - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures 23,949$ 17,562$ 4,500$ 4,665$ 20,489$ Personnel FY2015 Actual FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Budgeted Total Number of Employees - - - - - Expenditures Personnel There is no personnel for this department. 79 KODIAK COLLEGE AND LIBRARIES FY2019 PROGRAM DESCRIPTION: This department is an aspect of non-profit funding that helps support education in the Borough. GOALS AND OBJECTIVES: Provide educational opportunities through the Associate’s Degree level of schooling and provide resources for more materials in the Borough’s public libraries. ANALYSIS: The contributions within this department have historically been to the local community college and community libraries which fall within the education powers of the Borough. These contributions are not required of the Borough but have traditionally been considered equivalent to nonprofit funding. As budgeting challenges increase, the contributions in this department have decreased and are expected to be phased out. SIGNIFICANT BUDGET CHANGES: Due to anticipated decreases in general fund revenues and the challenge of balancing the general fund budget, funding to the Kodiak College will be reduced and funding to community libraries will not be provided in FY2019. Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services - - - - - Contributions Kodiak College 180,000 84,000 60,000 60,000 50,000 Libraries 15,000 12,000 12,000 12,000 - Legal Services - - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - Total Expenditures 195,000$ 96,000$ 72,000$ 72,000$ 50,000$ Personnel FY2015 Actual FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Budgeted Total Number of Employees - - - - - Expenditures Personnel There is no personnel for this department. 80 NON-PROFIT FUNDING FY2019 PROGRAM DESCRIPTION: This department has been established to account for grants awarded to non-profit entities in the community to assist them in providing their community services. GOALS AND OBJECTIVES: Provide financial assistance to non-profit agencies to ensure their financial viability to provide community services for the residents of the Borough. -quality wide-appeal programs for the benefit of Borough residents. ANALYSIS: The Borough has a long history of providing funds to nonprofit entities to assist them in providing services that are important to the community. As it has become more challenging to balance the budget without raising the tax rate, it has been equally challenging to maintain this program. Currently the funding has been reduced, but the program remains in place. SIGNIFICANT BUDGET CHANGES: Due to overall revenue decreases, non-profit reductions have been necessary. 81 NON-PROFIT FUNDING (CONT.) FY2019 Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services - - - - - Contributions Safe Harbor 25,000 21,984 17,000 17,000 - Humane Society 4,250 - 4,000 4,000 - Women's Resource & Crisis Center 60,000 52,762 47,500 47,500 - American Red Cross 7,900 - - - - Kodiak Baptist Mission 45,120 39,677 34,000 34,000 - Special Olympics 6,000 - - - - Health Care Foundation 20,000 - - - - Hospice of Kodiak 11,000 9,673 4,000 4,000 - Senior Citizen Support 35,000 30,778 26,000 26,000 - Hope Community Resources 5,050 - 4,000 4,000 - Salvation Army 8,000 7,035 - - - Brother Francis Shelter 56,180 49,403 43,000 43,000 - Kodiak Area Transit 15,000 - - - - Threshold Services 8,000 - - - - Funding/Non-Profits - - - - 144,000 Legal Services - - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Sub-Total 306,500$ 211,312$ 179,500$ 179,500$ 144,000$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services - - - - - Contributions Alutiq Museum & Archaeological Respository 10,000 - - - - KMXT Public Radio 8,100 7,123 4,000 4,000 - Historical Society 10,000 - - - - Kodiak Maritime Museum 10,000 - - - - Kodiak Arts Council 15,350 - 4,000 4,000 - Head Start 7,200 6,331 - - - Kodiak Area Mentor Program - - 4,000 4,000 - KANA Family Center 10,500 9,233 4,000 4,000 - Kodiak Soil & Water Conservation 4,250 - 4,000 4,000 - Girls Scouts 1,000 - - - - Native Village of Port Lions - - 4,000 4,000 - Kodiak Teen Court 5,100 - - - - Marion Center, Inc 1,000 - - - - Kodiak Rodeo & State Fair - - 4,000 4,000 - Funding/Non-Profits - - - - 40,000 Legal Services - - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Sub-Total 82,500$ 22,687$ 28,000$ 28,000$ 40,000$ Total Expenditures 389,000$ 233,999$ 207,500$ 207,500$ 184,000$ Non-Profit Funding - Education, Culture & Recreation 82 TRANSFERS FY2019 PROGRAM DESCRIPTION: Money is transferred from the General Fund to other funds of the Kodiak Island Borough. GOALS AND OBJECTIVES: There are no specific goals and objectives listed for this department; they are delineated in the fund receiving the transfer. ANALYSIS: There was one transfer out in FY2018 which moved insurance proceeds received in FY2016 to a capital project to rebuild an emergency shelter destroyed by fire. SIGNIFICANT BUDGET CHANGES: There are no transfers budgeted for in FY2019. Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Allocated to Other Funds - - - - Operating Transfers - Education Support Fund 345,600 - - - - Land Sales - - - - - Buildings & Grounds - - - - - LEPC - 18,338 - - - Fire District #1 - - - - - Debt Service - 635,113 - - - Transfers to Fund 270 10,566 - - - - Transfers to Capital Projects - - 403,958 403,958 - Solid Waste - - - - - Hospital - 305,000 - - - KFRC - - - - - Total Expenditures 356,166$ 958,451$ 403,958$ 403,958$ -$ Expenditures 83 SPECIAL REVENUE FUNDS Special Revenue Fund Description Special revenue funds account for revenues obtained via specific taxes or other designated revenue sources. They are usually mandated by statue, charter, or local ordinance to fund specific functions or activities. Examples are fire protection and road service districts. Unlike the general fund, which has one revenue fund and many departments within it to account for the various expenditures, each special revenue fund is a complete set of accounts, one for revenue and one for expenditures. Special Revenue funds do not include debt service, capital projects or enterprise funds. Funds included in this section are: Education Support Land Sales Fund – Resource Management Buildings and Grounds o Borough Building o Mental Health Center o Closed Schools o School Buildings Major Repairs o Various Borough Buildings o Projects Office Local Emergency Planning Committee (LEPC) Women’s Bay Road Service Area Service Area #1 Service Area #2 Monashka Bay Road Service Area Bay View Road Service Area Fire Protection Area #1 Women’s Bay Fire Department KIB Airport Fire Protection District Woodland Acres Lighting District Trinity Islands Lighting District Mission Lake Tide Gate Facilities Fund Tourism Development Fern Fuller Trust 84 REVENUE SOURCES AND SPECIAL REVENUE FUND ESTIMATES The total revenue budget for all Special Revenue Funds is $13,238,094. Property Tax: Real and Personal Property Taxes. Several service areas levy a mill rate and collect taxes on the property located within their boundaries. The following table shows these service areas, the net taxable value of the property within their boundaries, and the mill rate. The net taxable value is the total assessed value of property less any applicable exemptions. Generally, 90% of property taxes are from real property and 10% from personal property. Overall, the current Borough-wide delinquency rate is approximately .20%. Transient Accommodation Tax. The Borough assesses a tax on overnight accommodations provided within the Kodiak Island Borough’s boundaries. Cities within the Borough’s boundaries that assess their own accommodation tax on businesses within city boundaries are exempt from collecting the Borough’s tax. The FY2019 revenue budgeted for this tax is $98,000. Area-Wide (all properties within the Borough) Net Taxable Value Mill Leavy Kodiak Island Borough School District 1,369,680,377$ 7.05 Non-Area-Wide (within Service Area Boundaries only) Womens Bay Road Service Area 2.50 Road Service Area No.1 1.50 Monashka Bay Road Service Area 2.00 Bay View Road Service Area 1.50 Fire Protection Area No. 1 1.50 Womens Bay Fire Department 1.25 KIB Airport Fire Protection District 1.25 Woodland Acres Street Light Area 0.10 Trinity Lslands Street Light Area 0.15 Mission Lake Tide Gate Area 0.25 85 Motor Vehicle Tax. AS 28.10.431 allows the Division of Motor Vehicles to collect property tax on motor vehicles on behalf of municipalities and boroughs. The property tax is a flat rate based on the type of vehicle and the year of the vehicle. The tax is collected, along with the biannual registration fee, and remitted to the Borough monthly. This method of collection was created in anticipation of reducing the delinquency rate for personal property taxes and improves collection of taxes on vehicles. Based on prior year collections, the revenues from this source are budgeted at $234,000. Per KIB 3.60.020, these revenues go into the Education Support Fund. Licenses & Permits. Money received by the Borough and service districts for use of land that they own. The total revenue anticipated for all special revenue funds is $34,350. Rents and Royalties: Office Rent. The Borough charges rent for office space to Borough departments and outside agencies that have offices within Borough buildings. For fiscal year 2019, the Borough is charging an average rate of $2.20 per square foot which equates to $817,904 in rental revenues. Rents and Royalties: Gravel Sales. The Kodiak Island Borough has leased out four parcels of land for gravel extraction. The lease requires that a royalty be paid on the amount of gravel extracted. The $5,000 of revenue we expect to receive in fiscal year 2019 is based on estimates and averages of gravel extractions in prior years. The current royalty rate is $2.00 per cubic yard. Land Sales Activities. Periodically, the Borough sells land, typically by public auction. Two objectives are met by these land sales: the Borough receives revenue, and land is put into private ownership. For FY2019 the estimated revenue from land payments is $50,264. State Shared Revenues: State Grants. Money received by the Borough to be used on specified projects. This revenue funds activities in the Local Emergency Planning Committee Fund. The expected grant award for FY2019 is $15,500. State Shared Revenues: Cruise Ship Tax. Beginning in FY2014, cruise ship tax sharing revenues has been accounted for in this fund. Based on past collections, the estimated FY2019 revenue is $30,000. The Borough believes that the tourism industry will continue to grow. Other Financing Sources: These are other sources of money that are not earned revenue. These include items such as use of fund balance or transfers in from other funds. Penalties and Earnings on Investments. The majority of this revenue is from net earnings on investments in the Facilities Fund. It is estimated that these net earnings (interest income added to the increase and/or decrease of the market value of investments) will be $208,500. The estimated amount of penalties and net earnings on all special revenue funds is $214,865. The earnings budgeted are conservative and based on economic trends. Miscellaneous. Money received that does not fit in any other defined category that is generally one-time in nature. 86 SPECIAL REVENUE FUND RECAP Special Revenue Funds Budget Summary Education Support Land Sales Buildings & Grounds LEPC Womens Bay Service Area Service Area No. 1 Service Area No. 2 Monashka Bay Service Area Bay View Rd. Service Area Beginning Fund Balance (129,614)$ 1,366,459$ (784,302)$ -$ 113,929$ 693,281$ 5,923$ 172,890$ 32,801$ Revenues Property Tax 9,656,244 - - - 198,500 406,500 - 50,138 13,879 Penalties/Interest on Tax - - - - - - - - - Non Ad Valorem Tax 234,000 - - - - - - - - Sales Tax - - - - - - - - - Licenses & Permits - 6,750 - - 27,600 - - - - State Shared Revenue - 5,205 6,318 - 90 - - - - State Grants - - - 15,500 - - - - - Rents & Royalties - 5,000 817,904 - - - - - - Charges for Services - - - - - - - - - Land Sale Activity - 50,264 - - - - - - - Interest Earnings - - 3,300 - - - 25 600 110 Miscellaneous - 500 - - - - - - - Other Funding Sources - 271,834 - - - - - - 1,496 - - - - - - - - - Transfers In - - 5,000 - - - - - - Total Revenues & Transfers In 9,890,244 339,553 832,522 15,500 226,190 406,500 25 50,738 15,485 Total Available Funds 9,760,630 Expenditures Education 9,890,244 - - - - - - - - Resource Management - 339,553 - - - - - - - KIB Buildings - - 832,522 - - - - - - LEPC - - - 15,500 - - - - - Road Maintenance - - - - 226,190 406,500 25 50,738 15,485 Public Safety - - - - - - - - - Economic Development - - - - - - - - - Transfers Out - - - - - - Total Use of Funds 9,890,244 339,553 832,522 15,500 226,190 406,500 25 50,738 15,485 Est. Funds Available 6/30/19 (129,614)$ 1,366,459$ (784,302)$ -$ 113,929$ 693,281$ 5,923$ 172,890$ 32,801$ 87 SPECIAL REVENUE FUND RECAP Special Revenue Funds Budget Summary, continued Fire Protection Area No. 1 Womens Bay Fire Dept. KIB Airport Fire Protection District Woodland Acres Street Light Area Trinity Islands Street Light Area Mission Lake Tide Gate Facilities Fund Tourism Developm ent Fuller Trust TOTAL Beginning Fund Balance 185,821$ 567,509$ 39,579$ 31,224$ 28,629$ 60,166$ 39,371,219$ 215,431$ -$ 41,970,946$ Revenues Property Tax 602,012 102,939 16,741 5,268 1,874 1,548 - - - 11,055,643 Penalties/Interest on Tax - - - - - - - - - - Non Ad Valorem Tax - - - - - - - - - 234,000 Sales Tax - - - - - - - - - - Licenses & Permits - - - - - - - - - 34,350 State Shared Revenue 4,988 - - - - - - 30,000 - 46,601 State Grants - - - - - - - - - 15,500 Rents & Royalties - - - - - - - 98,000 - 920,904 Charges for Services - 17,211 - - - - - - - 17,211 Land Sale Activity - - - - - - - - - 50,264 Interest Earnings - 1,000 200 150 130 250 208,500 600 - 214,865 Miscellaneous 1,500 12,000 - - - - - - - 14,000 Other Funding Sources 12,526 50,000 - - - - 240,500 3,400 - 579,756 Transfers In 50,000 - - - - - - - - 55,000 Total Revenues & Transfers In 671,026 183,150 16,941 5,418 2,004 1,798 449,000 132,000 - 13,238,094 Total Available Funds Expenditures Education - - - - - - - - - 9,890,244 Resource Management - - - - - - - - - 339,553 KIB Buildings - - - - - - - - - 832,522 LEPC - - - - - - - - - 15,500 Road Maintenance - - - - - - - - - 698,938 Public Safety 671,026 183,150 16,941 5,418 2,004 1,798 - - - 880,337 Economic Development - - - - - - - 132,000 132,000 Transfers Out - - - - - - 449,000 - - 449,000 Total Use of Funds 671,026 183,150 16,941 5,418 2,004 1,798 449,000 132,000 - 13,238,094 Est. Funds Available 6/30/19 185,821$ 567,509$ 39,579$ 31,224$ 28,629$ 60,166$ 39,371,219$ 215,431$ -$ 41,970,946$ 88 EDUCATION SUPPORT FUND FY2019 PROGRAM DESCRIPTION: The Education Support Fund encompasses the transfer of state-required local funding to the Kodiak Island Borough School District for operational costs. This program includes the purchase of liability, workers’ compensation and property insurance, funding the annual audit, snow removal, and an annual appropriation. GOALS AND OBJECTIVES: Providing adequate funding to the Kodiak Island Borough School District to ensure that high-quality education and safety will be provided to all children. Provide snow removal and sanding to all schools within the district. Identify a school facility maintenance list. ANALYSIS: Under State law, the Borough must annually contribute a dollar amount to the School District that falls within a specific range. The top of this range is sometimes referred to as “the cap.” There is a rather complicated formula done by the State of Alaska Department of Education and Early Development which sets both the minimum and maximum contribution range that the Borough will make to the school district. For FY2019, the Borough contributed 93% of the maximum amount possible under state law to the school district. SIGNIFICANT BUDGET CHANGES: The funding for FY2019 increased $1,053,097 from the FY2018 funding. 89 EDUCATION SUPPORT FUND (CONT). FY2019 Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Real Property Tax 10,106,178$ 9,988,377$ 9,124,500$ 9,081,032$ 10,196,597$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax 253,112 235,177 253,000 237,895 234,000 Sale Tax - - - - - Licenese & Permits - - - - - State Shared Revenue - - - - - State Grants - - - - - Rent & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings - - - - - Miscellaneous - - - - - Other Funding Sources - - - - - Operating Transfer 485,600 - - - - Total Revenues 10,844,890$ 10,223,554$ 9,377,500$ 9,318,927$ 10,430,597$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services - - - - - Contracted Services 400,000 400,000 - - - Audit Services 32,788 46,922 50,000 45,840 50,000 Legal Services - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 318,622 323,989 380,000 291,639 380,000 Debt Service-Interest - - - - - Capital Outlay - - - - Operating Transfers 10,154,238 9,506,637 8,947,500 9,043,021 10,000,597 Total Expenditures 10,905,648$ 10,277,548$ 9,377,500$ 9,380,500$ 10,430,597$ Revenues Expenditures 90 LAND SALES – RESOURCE MANAGEMENT FY2019 PROGRAM DESCRIPTION: The Kodiak Island Borough holds title to approximately 47,000 acres of land within the Kodiak Archipelago valued at 70-100 million dollars. It is the mission of the Resource Management Department of the Kodiak Island Borough to balance demand for public recreation access, development, industrial use, and resource extraction to meet the needs of Kodiak’s economic, recreational, and industrial needs. Generally, the Kodiak Island Borough seeks to manage lands in such a way that minimize day-to-day tasking related to land resource management and allows maximum access and enjoyment of Borough lands by the public. Therefore, the Resource Management Department focus is to develop means and methods to balance the resource priorities and needs of the community. GOALS AND OBJECTIVES: Manage Borough lands to meet the needs of the social, economic, and industrial development of the Kodiak Island Borough. Work with the Borough Lands Committee to identify potential land acquisitions, disposals, zoning type demands, and other management issues. Inventory and develop an electronic record of all KIB-Owned Lands and Facilities. Assess anticipated needs and available resources in Kodiak Island Borough. Develop and publish a Land and Resource Management Policy for Kodiak Island Borough. Continuously examine land management practices and assess utility towards stated goals of the KIB Resource Management Office. Examine the success of Borough Land Sales towards the relief of housing shortages in the Kodiak Island Borough. Minimize operating costs of Borough-owned facilities to the KIB Tax Base. Work with the KIB Assembly to develop a long-term management strategy and spending criteria for the Kodiak Island Borough Land Sales Fund. Work with Engineering and Facilities to maintain sufficient leases to cover ownership and maintenance costs of KIB Buildings. Continue minimally demanding land management practices. ANALYSIS: The Resource Management Department is working towards a land sale, with a significant amount of the leg work to be completed in FY2019. FY2018 saw the final project costs associated with the Chiniak Area Burn Timber Harvest and replanting efforts. KIB has entered the Master Planning Process for the Killarney Hills land and the final master plan is expected in FY2019. The Resource Management Department will conduct a Title 18 Code Revision project in FY2019 with efforts to continuously revise and update the Kodiak Island Borough Code in accordance with community needs and development. SIGNIFICANT BUDGET CHANGES: Reduction in costs associated with a Land Sale including contracted services and survey costs are anticipated in FY2019. 91 LAND SALES – RESOURCE MANAGEMENT (CONT.) FY2019 Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Property Tax -$ -$ -$ -$ -$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits 1,250 5,800 6,750 7,200 6,750 State Shared Revenue 3,920 3,780 3,650 2,467 5,205 State Grants - - - - - Rents & Royalties 4,307 24,488 5,000 12,879 5,000 Charges for Services - - - - - Land Sale Activity 110,428 147,171 200,000 224,902 21,401 Interest Earnings 3,427 8,173 6,300 7,173 28,863 Miscellaneous (248) 2,092,014 500 2,580 500 Other Funding Sources - - 243,403 - 271,834 Operating Transfers - - - - - Total Revenues 123,084$ 2,281,426$ 465,603$ 257,201$ 339,553$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 98,623$ 115,924$ 84,000$ 87,486$ 90,759$ Employee Benefits 49,392 56,034 52,867 54,028 63,576 Professional Services 61,466 319,111 210,000 169,635 75,000 Legal Services - - 5,000 - 5,000 Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 69,144 61,588 113,736 32,319 105,218 Capital Outlay - - - - - Operating Transfers 27,600 650,000 - - - Total Expenditures 306,225$ 1,202,656$ 465,603$ 343,468$ 339,553$ Personnel FY2015 FY2016 FY2017 FY2018 FY2019 Budget Resource Manager 1 1 1 1 1 Total Number of Employees 1 1 1 1 1 Revenues Expenditures Personnel 92 BUILDING AND GROUNDS – ALL DEPARTMENTS FY2019 PROGRAM DESCRIPTION: This program funds the operation and maintenance of Borough-owned buildings, parking lots, parks, and public grounds. Specifically, this includes snow removal, lawn maintenance, park maintenance, and general building and grounds maintenance. It also includes rental of Borough-owned buildings. Budgeted departments within the Building and Grounds Fund are: Borough Building Mental Health Center School Buildings Major Repairs Closed Schools Various Borough Buildings Project Office GOALS AND OBJECTIVES: Provide adequate annual maintenance to Borough-owned buildings, parks, and other Borough facilities in a safe manner to prevent liability issues and ensure community safety. Review checklist annually of KIB Building and Grounds to ensure funding is available within each year’s budget. Provide funding for snow removal and parking lot maintenance around all Borough facilities, including school buildings. ANALYSIS: Budget analysis for this fund is detailed by individual departments listed above. SIGNIFICANT BUDGET CHANGES: No significant budget changes in FY2019. Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Property Tax -$ -$ -$ -$ -$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue 3,790 2,745 6,126 2,121 6,318 State Grants - - - - - Rents & Royalties 676,263 751,678 833,467 848,390 817,904 Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 4,466 3,632 3,050 4,635 3,300 Miscellaneous 120 120 - 122 - Other Funding Sources - - 137,000 - 5,000 Operating Transfers 34,272 - - 10,000 - Total Revenues 718,912 758,174 979,643 865,268 832,522 Revenues 93 BUILDING AND GROUNDS – (CONT.) FY2019 BOROUGH BUILDING PROGRAM DESCRIPTION: The Borough Building provides administrative office space for Borough Government and the City of Kodiak Government. It is also the site of the Borough Assembly Chambers. This department covers all routine maintenance and janitorial to the building. Engineering and Facilities administrates and operates the Building and Grounds Fund - Borough Building. GOALS AND OBJECTIVES: Work towards funding for the renewal and replacement (R&R) and capital projects for this facility to ensure a safe environment for all employees. Meet with the Assembly to discuss funding sources for R&R. Meet with the Assembly to discuss funding sources for capital projects. Provide routine maintenance for a safe environment and pleasant appearance. Maintain adequate level of lawn maintenance. Maintain adequate level of snow/ice removal. Provide maintenance to the air handling and boiler systems and controls. ANALYSIS: The Building and Grounds Fund - Borough Building upgraded the direct digital controls in 75% of the building to improve energy efficiency and staff comfort. The Fund also completed renovation of lighting in the Assembly Chambers. Engineering and Facilities Department is requesting Assembly funding for renewal, replacement, and renovation of the Borough Building for FY2019. SIGNIFICANT BUDGET CHANGES: As the structure and its systems continue to age, support goods and services costs will continue to increase. Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 149,052$ 161,109$ 102,179$ 73,109$ 103,434$ Employee Benefits 94,244 99,656 67,333 48,702 80,397 Professional Services 7,556 32,627 13,500 10,235 13,500 Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 179,480 224,270 550,474 226,988 453,781 Capital Outlay - 6,288 - - 15,000 Operating Transfers - 336,370 137,000 137,000 - Total Expenditures 430,332$ 860,320$ 870,486$ 496,035$ 666,112$ Expenditures 94 BUILDING AND GROUNDS – (CONT.) FY2019 MENTAL HEALTH CENTER PROGRAM DESCRIPTION: The Kodiak Island Borough leases the Mental Health Facility to Providence Kodiak Island Medical Center, which provides a variety of services including rehabilitation housing, therapy programs, and administration offices for the Providence Kodiak Island Counseling Center. The Borough is responsible for staffing for lease negotiations and provides some funding for maintenance. Engineering and Facilities administrates and operates the Building and Grounds Fund - Mental Health Center. GOALS AND OBJECTIVES: Continue a positive relationship between Providence Kodiak Island Medical Center and the Kodiak Island Borough. Provide annual maintenance funding to ensure safe usable facilities. Provide support staff for any procurement needs. ANALYSIS: In past years the Borough has provided minimal funding for maintenance requests. As per the 2018 lease negotiation the Borough is required to provide up to $25,000 in funding for maintenance needs. The Engineering and Facilities Department will continue to search for new funding sources to either move or rehabilitate these facilities. SIGNIFICANT BUDGET CHANGES: Per the 2018 lease negotiation the Borough is required to provide up to $25,000 in funding for maintenance needs. Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 1,299$ 85$ 6,428$ 123$ 1,434$ Employee Benefits 857 74 3,852 129 828 Professional Services - - 10,000 - 5,000 Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 3,613 6,448 22,800 24,119 24,700 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures 5,768$ 6,607$ 43,080$ 24,372$ 31,962$ Expenditures 95 BUILDING AND GROUNDS – (CONT.) FY2019 CLOSED SCHOOLS PROGRAM DESCRIPTION: This program provides funding for the maintenance, operation, and utility costs of any closed school buildings to maintain the integrity of the building for future use. Engineering and Facilities administrates and oversees the Building and Grounds Fund – Closed School. GOALS AND OBJECTIVES: Manage the closure of any school facilities. Request funding required for staffing and support services. Provide ongoing utility service to maintain facility. ANALYSIS: In FY2018 there were no closed schools, so no funds were expended. In FY2019 budget, this department was renamed to Closed Schools to encompass funding for potentially closed schools. SIGNIFICANT BUDGET CHANGES: An increase in funding for materials and staff required to prepare schools for closure, provide minimal maintenance, and utility costs is foreseen in FY2019. Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ Employee Benefits - - - - - Professional Services - - - Legal Services - - - - - Contributions - - - Service District Maint.- - - Support Goods & Services - 535 - - 70,600 Capital Outlay - - - Operating Transfers - - - Total Expenditures -$ 535$ -$ -$ 70,600$ Expenditures 96 BUILDING AND GROUNDS – (CONT.) FY2019 SCHOOL BUILDINGS MAJOR REPAIRS PROGRAM DESCRIPTION: This program provides funding for major repairs to the Borough-owned school facilities. The Kodiak Island Borough is responsible for repairs that exceed $10,000 in accordance with the current In-kind Agreement. The Engineering and Facilities Department administrates and oversees the Building and Grounds Fund - School Building Major Repair. GOALS AND OBJECTIVES: Continue maintenance as per the In-Kind Agreement. Provide financial back-up for unforeseen major maintenance repairs. ANALYSIS: In FY2018 funding was provided for professional services for maintenance of direct digital controls systems. Funding was also provided in FY2018 for support goods and services for any maintenance required over the $10,000 limit. The School Building Major Repair Fund for professional service and support goods and services requests vary from year to year. SIGNIFICANT BUDGET CHANGES: No Significant Budget Changes for FY2019. Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 123$ -$ 3,863$ -$ 2,389$ Employee Benefits 119 - 2,144 - 1,459 Professional Services 17,637 2,431 25,000 31,062 20,000 Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 26,486 3,661 20,070 80 25,000 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures 44,364$ 6,092$ 51,077$ 31,142$ 48,848$ Expenditures 97 BUILDING AND GROUNDS – (CONT.) FY2019 VARIOUS BOROUGH BUILDING PROGRAM DESCRIPTION: This program funds the operation and maintenance of various smaller Borough-owned buildings, such as the Egan Way Cottages and Borough Annex Building. In FY2019 the Borough Maintenance Facility was added to the Various Borough Buildings Fund. The Engineering and Facilities Department administrates and oversees the Building and Grounds Fund - Various Borough Buildings. GOALS AND OBJECTIVES: Provide adequate annual maintenance to these facilities to prevent liability issues. Continue to perform annual inspections. Produce an annual renewal and replacement schedule to ensure funding is available when the systems need replacement. ANALYSIS: In FY2018 the project was completed for the removal of brush surrounding the Borough Annex Building. In FY2019 the fund will continue routine maintenance of all facilities included in the Various Borough Buildings Fund. SIGNIFICANT BUDGET CHANGES: Funding was increased due to adding the Borough Maintenance Building to this Department. The building needs some maintenance upgrades such as an air compressor to run the building’s controls and air for maintenance at the facility's shop. Also, a new frame and doors were budgeted for the entrance to the boiler room in the building. Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ -$ Employee Benefits - - - - - Professional Services - - - - - Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 9,162 4,066 15,000 3,185 15,000 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures 9,162$ 4,066$ 15,000$ 3,185$ 15,000$ Expenditures 98 BUILDING AND GROUNDS – (CONT.) FY2019 PROJECTS OFFICE EXPENSES PROGRAM DESCRIPTION: The Engineering and Facilities Projects Division is responsible for managing the Borough's capital construction projects from concept through construction completion. This includes providing management for all the school bonded projects and any tsunami siren upgrades. The division works with end- users, design teams, consultants, funding agencies, and construction contractors to deliver projects in compliance with program budget, schedule, code, and legal requirements. The Projects Division provides staff support, coordination, and administration of the Architectural Review Board. The department also encourages community involvement to ensure projects meet the needs of the community by offering public held Architectural Review Committee meetings and community meetings if applicable. The project office also works on other non-capital projects funded by the Engineering and Facilities budget. Expenses for the Building and Grounds Fund Project Office are paid by ongoing projects where appropriate. GOALS AND OBJECTIVES: Provide management for school bonded and other capital projects. Work with design consultants, contractors, and user groups to complete construction projects. Provide management to complete non-capital projects. Continue to take on and complete other non-capital projects as required by the needs of the Borough. ANALYSIS: Expenses for the Projects Office are distributed proportionally through active projects. Projects completed in FY2018 include the Main Elementary Walkway, Kodiak Middle School Fire Alarm/Controls/Elevator, the East Elementary Renovation Phase 1, Kodiak Fisheries Research Center Digital Controls Upgrade, and the Flooring and Asbestos Removal Project in Ahkiok, Karluk, and Ouzinkie Schools. In FY2019 the projects office will be working to administrate and complete a new baler building roof and siding replacement project. The department will also continue with the Renovation Project Phase II at East Elementary which includes flooring replacement, cabinets, countertops/sinks, and door replacements. The Non-capital projects completed by the Projects Office include Borough-wide Safety Data Sheet updates and OSHA training. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes in FY2019. Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services Employee Benefits Professional Services Legal Services Contributions Service District Maint. Support Goods & Services Capital Outlay Operating Transfers Total Expenditures -$ -$ -$ -$ -$ Expenditures All expenses are allocated to capital projects or the Engineering/Facilities Department. 99 This page has been left intentionally blank. 100 LEPC – LOCAL EMERGENCY PLANNING COMMITTEE FY2019 PROGRAM DESCRIPTION: The Local Emergency Planning Committee (LEPC) of the Kodiak Island Borough has been established pursuant to federal and state laws. LEPC is required by federal law to perform the following duties: Establish procedures for receiving and processing requests from the public for information about hazardous materials in the region. Prepare and periodically review the local emergency operations plan. Evaluate the need for resources necessary to develop, implement, and exercise the emergency operations plan and submit recommendations to local governments. Serve as an advisory committee to local government with respect to emergency planning, training, and response. GOALS AND OBJECTIVES: Facilitate region-wide preparedness training for government officials and emergency responders. Develop and implement comprehensive training programs. Facilitate region-wide emergency preparedness outreach efforts to better prepare residents in the event of a local disaster. Facilitate Emergency Preparedness information booths at the Kodiak Crabfest and Bayside, Womens Bay, and City of Kodiak Fire Department open house events. Provide Kodiak Area Emergency Preparedness Guides in English, Tagalog, and Spanish to various businesses, government offices, and the USCG base for dispersion to Kodiak residents and visitors. Locally implement the requirements of SARA Title 3 (Federal Community Right-To-Know Program). Maintain Kodiak's library of Tier II hazardous and toxic chemical storage facility reports. Publish hazardous and toxic chemical storage facility Community Right-To-Know in local news publications annually, as required by Federal law. ANALYSIS: Aside from salaries and benefits of employees providing administrative support to the LEPC, FY2018 grant funds have also been used to develop radio broadcast Public Service Announcements (PSAs) providing information on several topics, including: 1) Earthquakes 2) Tsunamis 3) Evacuation and shelter locations 4) Creating a 7-day emergency preparedness kit for families Additionally, FY2018 funding went to the finalization and reproduction of tsunami inundation maps and road system evacuation maps for distribution to local businesses, non-profits, government agencies, and other organizations to post for the benefit of the public. SIGNIFICANT BUDGET CHANGES: No significant budget changes. The State of Alaska formulas for grant funding distribution are unchanged for this fiscal year. 101 LEPC – LOCAL EMERGENCY PLANNING COMMITTEE (CONT.) FY2019 Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Property Tax -$ -$ -$ -$ -$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - 312 - - State Grants 14,343 13,756 15,500 15,500 15,500 Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings - - - - - Miscellaneous - - - - - Other Funding Sources - 18,338 - - - Operating Transfers - - - - - Total Revenues 14,343$ 32,093$ 15,812$ 15,500$ 15,500$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 6,812$ 7,299$ 7,811$ 6,374$ 7,609$ Employee Benefits 4,551 4,795 4,916 4,474 5,219 Professional Services - - - - Legal Services - - - - - Contributions - - - - Service District Maint.- - - - Support Goods & Services 3,497 1,662 3,085 4,652 2,672 Capital Outlay - - - - Operating Transfers - - - - Total Expenditures 14,860$ 13,756$ 15,812$ 15,500$ 15,500$ Revenues Expenditures 102 WOMEN’S BAY ROAD SERVICE DISTRICT FY2019 PROGRAM DESCRIPTION: The Women's Bay Road Service Area provides maintenance to roads within the service area, including snow removal, ice control, culvert, drainage ditch repair and maintenance, as well as asphalt pavement repair. GOALS AND OBJECTIVES: Provide safe, well drained and maintained road surfaces for the community. Continue improving and maintaining drainage. Continue maintaining paved road surfaces. Identify and replace failed culverts as needed. Provide timely management of snow and ice removal. Maintain a project list. ANALYSIS: In FY2018 the Service Area Board responded to several heavy rain events. The South Russian Creek flooded and threatened the end of Leta Street and overran its course onto adjacent private property downstream from Leta Street. A large degraded section of asphalt was removed, the subgrade replaced and new asphalt placed on Middle Bay Drive approaching the Chiniak Drive intersection. In FY2019 the service board has budgeted for the replacement of the culvert on Middle Bay Drive at Chiniak Drive. The culvert has been designed by the Federal Fish & Wildlife Service to facilitate fish passage. The Service Area Board is committed to contributing funds to assist in this project. In FY2019 the Women’s Bay Service District will continue to maintain a project list for priority projects such as ditching improvement and maintenance, brushing, asphalt repair, and a culvert watch list to help maintain the roads in the Women’s Bay Service Area. In FY2019 the service area is facilitating an asphalt engineering study for the service district's paved roads to determine the unit cost per mile and the current condition of the pavement. SIGNIFICANT BUDGET CHANGES: $25,000 is budgeted for contributing to the Fish Culvert Project in FY2019. 103 WOMEN’S BAY ROAD SERVICE DISTRICT (CONT.) FY2019 Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Property Taxes 191,715$ 194,900$ 198,446$ 196,223$ 198,500$ Penalties & Interest Tax 0 1 - 0 - State Shared Revenue - - 20 - 90 Licences & Permits - 27,600 27,000 27,600 27,600 Interest Earnings 1,226 811 - 551 - Other Financing Sources - - 25,000 - - Operating Transfers In 27,600 - - - - Total Revenues 220,541$ 223,313$ 250,466$ 224,374$ 226,190$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 361$ 81$ 500$ 274$ 1,500$ Fringe Benefits 274 24 - 177 884 Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Service District Maintenance Snow Removal/Sanding 17,188 73,175 60,000 31,919 55,000 Maintenance & Repairs 150,971 164,007 90,000 89,917 90,000 Grading / Ditching 39,067 51,915 40,000 72,102 40,000 Support Goods & Services 435 288 34,966 274 38,806 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - 25,000 25,000 - Total Expenditures 208,295$ 289,489$ 250,466$ 219,663$ 226,190$ Expenditures Revenues 104 SERVICE DISTRICT NO. 1 FY2019 PROGRAM DESCRIPTION: Service Area No. 1 provides maintenance to approximately 12 miles of roads within the district. Services provided include snow removal, ice control, culvert and drainage, ditch maintenance and repair, brush clearing of right away, dust control on gravel roads, painting and whiting fog lines and yellow center lines on paved roads, as well as asphalt pavement repair and replacement. The State of Alaska Department of Transportation owns and maintains approximately 6 miles of roads in Service District No. 1. Most of these roads are paved. Property owners with access directly onto these State Roads do not pay the road Service District No. 1 mill rate tax. The approximate replacement value of the asphalt on Service District No. 1 maintained roads is $5,000,000. The board will work on a plan to deal with the replacement of this asphalt. GOALS AND OBJECTIVES: Provide safe, well drained, and maintained surfaces for the residents in the Service District. Provide timely removal of snow and sanding with D-1 on gravel roads. Provide timely removal of snow and sanding with chip and sometimes salt on paved roads. Provide new D-1 surfacing on gravel roads as needed to improve surface drainage. Provide calcium chloride on gravel roads for dust control in the summer. Paint yellow center lines and white fog lines on the side of paved roads for safety. Continue improving drainage along roads that have no ditches and maintain drainage on roads built to Borough Standards. Continue brush and tree removal on roads. Identify and replace deteriorated or failed culverts as needed. Maintain a project list. ANALYSIS: In FY2018 the Service Area District had several high wind events that caused many trees to fall onto the road surface. This necessitated the immediate removal of the trees blocking the roads, and later removal of limbs and stumps. In several cases the Service District took down additional trees for safety purposes. For FY2019 Service District Area No. 1 proposed the same mill rate of 1.5 mills as in past years to the assembly. SIGNIFICANT BUDGET CHANGES: No significant budget changes projected for FY2019. 105 SERVICE DISTRICT NO. 1 (CONT.) FY2019 Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Property Taxes 386,094$ 394,545$ 401,632$ 400,030$ 406,500$ Penalties & Interest Tax 1 0 - 0 - State Shared Revenue - - 160 - - Licences & Permits - - - - - Interest Earnings 3,447 3,218 - 3,362 - Other Financing Sources - - 67,208 7,500 - Operating Transfers In - - - - - Total Revenues 389,542$ 397,763$ 469,000$ 410,893$ 406,500$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 6,868$ 6,038$ 8,800$ 5,865$ 8,800$ Fringe Benefits 1,848 1,415 2,900 1,291 2,900 Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Service District Maintenance Snow Removal/Sanding 10,114 62,934 200,000 80,237 200,000 Maintenance & Repairs 296,876 56,312 194,700 216,608 132,200 Grading / Ditching 65,240 32,493 60,000 47,140 60,000 Support Goods & Services 1,243 685 2,600 13,428 2,600 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers 4,480 - - - - Total Expenditures 386,669$ 159,876$ 469,000$ 364,570$ 406,500$ Expenditures Revenues 106 SERVICE DISTRICT NO. 2 FY2019 PROGRAM DESCRIPTION: Service Area No. 2 is responsible for water and sewer services in the service area. GOALS AND OBJECTIVES: None at this time. ANALYSIS: This service district is currently inactive. The fund balance will be used to defray any administrative costs incurred by this fund. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2019. Special Note: If you are a service area resident and want to participate on this board, please contact the Clerk’s Office for an application. Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Property Taxes -$ -$ -$ -$ -$ Penalties & Interest Tax - - - - - State Shared Revenue - - - - - Licences & Permits - - - - - Interest Earnings 41 28 100 30 25 Other - - - - - Operating Transfers In - - - - - Total Revenues 41$ 28$ 100$ 30$ 25$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ -$ Fringe Benefits - - - - - Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Service District Maintenance Snow Removal/Sanding - - - - - Maintenance & Repairs - - - - - Grading / Ditching - - - - - Support Goods & Services 0 - 100 - 25 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - - - - Total Expenditures 0$ -$ 100$ -$ 25$ Expenditures Revenues 107 This page has been left intentionally blank. 108 MONASHKA BAY ROAD SERVICE AREA FY2019 PROGRAM DESCRIPTION: Monashka Bay Road Service Area (MBRSA) is responsible for road maintenance and snow removal in the service area; it also has some administrative responsibility for a Greenbelt separating Monashka Bay Road Service Area residents from the adjacent KIB Landfill, and a commercial storage and dump property (Lot 1) zoned "Light Industrial" as of 2016. GOALS AND OBJECTIVES: Provide well-maintained roads for the safety of the residents. As practicable and within budget, maintain/repair roads, ditches, culverts, and signs within the service area. Conduct annual road inspection/walk/tour to identify concerns and create "Priority List." Improve roads to meet all current Kodiak Island Borough code design requirements. ANALYSIS: With the past few mild winters, MBRSA snow plowing costs have been much reduced, saving significant amounts of money and restoring a positive “Unreserved Fund Balance”. Supervisors have remained conservative in road maintenance routines, which has saved additional funds. For the FY2018 and FY2019 summer season, pothole treatment, dust control, and road surface aggregate stability will be improved using measured applications of calcium chloride and compaction. Several culverts will be replaced at the highest priority locations. The Monashka Bay Service Area is also safeguarding "Lot 2" of the Greenbelt from further encroachment from the adjacent KIB Landfill. The service district encourages dialog between KIB Assembly, KIB staff, and all other Service Area Boards to explore cost and timesaving strategies relative to MBRSA responsibilities. The Service District continues to review and revise the current road service contract and return it to the Kodiak Island Borough for bids each year. This ensures the best use of the service area's budget. The Service District will pursue additional funding when necessary to address safety and road-structure concerns that do not meet KIB Code design requirements. SIGNIFICANT BUDGET CHANGES: Available revenues have been relatively constant; snow removal and sanding costs have decreased due to mild winters. With the snow removal season nearly done, the FY2018 expenses show a large surplus going into FY2019. This savings will be used to address as many items as possible on the service area’s work priority list. 109 MONASHKA BAY ROAD SERVICE AREA (CONT.) FY2019 Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Property Taxes 59,665$ 62,162$ 62,673$ 61,813$ 50,138$ Penalties & Interest Tax 1 0 - 0 - State Shared Revenue - - - - - Licences & Permits - - - - - Interest Earnings 576 649 - 807 600 Other - - - - - Operating Transfers In - - - - - Total Revenues 60,242$ 62,812$ 62,673$ 62,620$ 50,738$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 185$ 315$ 500$ 60$ 1,092$ Fringe Benefits 164 204 - 18 562 Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Service District Maintenance Snow Removal/Sanding - 11,126 28,150 10,254 19,652 Maintenance & Repairs 18,294 6,929 16,000 2,563 16,000 Grading / Ditching 7,644 1,414 13,000 10,285 13,000 Support Goods & Services 126 82 5,023 78 432 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - - - - Total Expenditures 26,413$ 20,069$ 62,673$ 23,258$ 50,738$ Expenditures Revenues 110 BAY VIEW ROAD SERVICE DISTRICT FY2019 PROGRAM DESCRIPTION: Bay View Road Service Area is responsible for the road maintenance in the service area. GOALS AND OBJECTIVES: Provide safe and adequate roads for the residents. Maintain, repair, and provide snow removal for the roads in the Bay View Road Service Area. ANALYSIS: The Bay View Road Service Area is responsible for the one mile of road in the service district. The district continues with ongoing grading of the road. Another ongoing problem is that the road is unfinished at the end of the cul-de-sac. The service district will continue to seek funding in FY2019 from Planning & Zoning and the Borough Assembly on this matter. The Bay View Service District is very fortunate to have very supportive residents. During FY2018, wind storms blew down many trees and residents cut and removed fallen trees. This eliminated the expense of paying an outside vendor to remove them. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes in FY2019 Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Property Taxes 13,605$ 14,256$ 13,879$ 13,879$ 13,879$ Penalties & Interest Tax - - - - - State Shared Revenue - - - - - Licences & Permits - - - - - Interest Earnings 91 110 - 147 110 Other Financing Sources - - - - 1,496 Operating Transfers In - - - - - Total Revenues 13,696$ 14,366$ 13,879$ 14,025$ 15,485$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 59$ 246$ -$ 48$ 1,092$ Fringe Benefits 64 151 - 14 514 Professional Services - - 5,879 - 5,879 Contributions - - - - - Legal Services - - - - - Service District Maintenance Snow Removal/Sanding 835 3,891 5,400 1,901 5,400 Maintenance & Repairs 2,625 541 1,500 721 1,500 Grading / Ditching 4,203 497 1,100 1,891 1,100 Support Goods & Services 32 20 - - - Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - - - - Total Expenditures 7,817$ 5,346$ 13,879$ 4,575$ 15,485$ Expenditures Revenues 111 FIRE PROTECTION AREA NO. 1 (BAYSIDE FIRE DEPARTMENT) FY2019 PROGRAM DESCRIPTION: Bayside Fire Station is responsible for providing fire suppression, fire and injury prevention, and first responder emergency medical services. The Fire Department also offers a car seat installation program, smoke detector supply, instruction, and installation to residents at no cost. Bayside Fire Station is also responsible for providing associated services to the residents and visitors of Fire Protection Area No. 1. GOALS AND OBJECTIVES: ANALYSIS: The Fire Protection Area No. 1 purchased a new Spartan 1,250 gpm pumper and a Spartan 3,000-gallon tender with a 1,250 gpm pump. These are expected to be delivered at the end of FY2018. The purchase of this apparatus will help us to respond to Fire and EMS calls within the 5-minute time frame. These new pieces of apparatus will help the department reach the goal of reducing the ISO Rating from a 4 to a 3. In FY2018 the department purchased a total of 8,000 feet of new 1 ¾”, 2 ½’’, and 4” fire hose. The hose will be used for the new engine and tender. This will also give the fire department spare hose on the rack to be used to replace wet that has been used for training after a fire. Also, in FY2018 the department purchased 15 sets of new “Bunker Gear” that will replace old and non-conforming turn-out gear. The 15 sets of bunker gear are in service and will protect our firefighters from exposure to high heat and other facets of firefighting. The Department has continued upgrades and improvements to the fire training site. The old school bus has been removed from the Burn Training Center. The fire station bays and storage areas are being cleaned. The Memorial Garden has again been cleaned and replanted. The Burn Training Center burn buildings and surrounding area has been cleaned of trash and old debris. The burn building is being used on a regular basis and was repainted in FY2018. In FY2019 the Bayside Fire Station is focusing on continuing a stable 1.5 mill rate through an itemized budget and reviewing spending monthly for the property owners of Fire Protection Area No. 1. SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2019. There are now more distinct line items on the budget for future expenditures that include maintenance, repairs, expected large purchases, and other projects. Goals Department Objectives Indicators FY2017 Outcome FY2018 Outcome FY2019 Goal Respond within 5 minutes or less to an alarm on 90% of all calls Reports from Aurora and I Am Responding programs 94%95%95% Successfully respond to emergencies Number of incident reports 155 167 170 Maintain a Class 4 or lower to a Class 3 Insurance rating which in return reduces the cost of of fire insurance and shows the efficiency of the Fire Protection Area No. 1. Insurance Services Organization Rating 4/4 Rating 4/4 Rating 3/3 Rating Recruit new volunteers to increase the number of trained volunteers up to 40 volunteers Number of trained volunteers 32 32 40 Provide public education on fire suppression and medical emergencies. Number of trainings offered to the public 25 20 30 Continue upgrades and improvements to the fire training site and campus Upgrades and improvements completed 59 52 20 Increase personnel's expertise in fire prevention, injury prevention, fire suppression and emergency medical services Number of trainings offered to personnel 61 Drills 70 Drills 75 Drills Provide training and safety to the volunteer responders and community. Minimize the impact on life and property from the effects of fire and medical emergencies to the community. Goals, Objectives, and Performance Indicators: 112 FIRE PROTECTION AREA NO. 1 (BAYSIDE FIRE DEPARTMENT, CONT.) FY2019 Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Property Taxes 572,732$ 588,587$ 602,013$ 597,761$ 602,012$ Penalties & Interest Tax 1 0 - 0 - State Grants - 7,497 - - - Federal Grants - - 154,752 162,077 - State Shared Revenue 2,705 4,620 - 3,522 4,988 Licenses & Permits - - - - - Interest Earnings 5,601 4,393 - 844 - Other 2,831 4,425 1,500 1,030 1,500 Use of Fund Balance - - 365,091 12,526 Operating Transfers In - 57,493 - - 50,000 Total Revenues 583,870$ 667,015$ 1,123,356$ 765,234$ 671,026$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 91,086$ 141,289$ 156,000$ 146,139$ 159,990$ Fringe Benefits 48,625 79,197 87,336 84,469 87,336 Professional Services - 1,512 - 10,502 - Contributions - - - - - Legal Services 1,821 23,146 - - - Service District Maintenance Snow Removal/Sanding - - - - - Maintenance & Repairs - - - - - Grading / Ditching - - - - - Support Goods & Services 214,581 240,132 201,500 324,382 215,500 Capital Outlay 4,380 8,159 678,520 1,123,973 208,200 Allocated to other funds - - - - - Operating Transfers - - - - - Total Expenditures 360,493$ 493,434$ 1,123,356$ 1,689,465$ 671,026$ Expenditures Revenues 113 This page has been left intentionally blank. 114 WOMEN’S BAY FIRE DEPARTMENT FY2019 PROGRAM DESCRIPTION: The Women’s Bay Fire Department is responsible for providing fire suppression services to the residents of the Women’s Bay Fire Protection District. The department provides first response to emergency medical service (EMS) calls within the service area. The department also provides structural fire suppression by contract to the Airport Fire Protection Area. GOALS AND OBJECTIVES: ANALYSIS: During the current fiscal year the department has collaborated with the Bayside Volunteer Fire Department to procure new compliant Globe Structural Turnouts and Scott Air Packs and bottles. The department has recruited and continues to train three new volunteers. The Women’s Bay Fire Department also participated in the National Fire Academy Officer Development Classes to strengthen the advancement of long term volunteers. The Department conducted a Community Open House and Fun Day for the recently completed facility expansion in cooperation with the Women's Bay Community Council. Additionally, the department collaborated with the Community Council to conduct the "Santa Drive Around," Community Tree Lighting Gathering, and the "Trunk or Treat" Halloween Event. In FY2019, the planning will continue to enter into agreements with the Red Cross and Community Council for the development and implementation of an evacuation shelter within the local service area. This will include researching funding opportunities to procure required equipment and supplies to support shelter operations. SIGNIFICANT BUDGET CHANGES: The department is requesting the transfer of $50,000.00 of fund balance for the replacement of four Automated External Defibrillators. The Department will continue to procure Personal Protective Equipment for the membership. The Fire Department will also perform work to expand and improve parking and staging for community events and emergencies adjacent to the facility. Goals Department Objectives Indicators FY2017 Outcome FY2018 Outcome FY2019 Goal Respond within 10 minutes of an alarm for 90% of all calls for assistance within the service area Incident Reports 22 Calls 33 Calls 30 Calls Maintain local area mutual aid agreements On File - KIB 3 On File 3 On File 3 On File Maintain AK Division of Forestry Annual Operating Agreement On File - KIB On File On File In Process Continue community outreach to stimulate recruitment Personnel Records Yes Yes In Planning Train volunteers in fire suppression and prevention methods and techniques. Training Records Yes Yes Published Training Schedule Train volunteers in EMS to maintain certification and ensure CEU's are available Training Records 4 Personnel 4 Personnel 5 Personnel Encourage and increase interagency training opportunities Training Records Yes Yes In Progress Monitor NFPA standards for compliance updates Review Monthly NFPA Publications Yes Yes Yes Monitor and maintain fire and EMS response vehicles Weekly and monthly check sheets 4 Apparatus 4 Apparatus 4 Apparatus Monitor and maintain fire and EMS equipment and supplies Weekly and monthly check sheets 4 Apparatus 4 Apparatus 4 Apparatus Work with KIB staff to ensure contracts are in place to provide facility maintenance, repairs and utility services KIB records and contracts Yes Yes Yes Perform monthly facility inspections Inspection forms No No Develop Program Ensure periodic and annual maintenance of systems Records on file Yes Yes Develop Program Maintain physical building and property for safety and efficiency Procure and maintain compliant fire and EMS equipment for efficient response for the community Goals, Objectives, and Performance Indicators: Minimize the impacts on life and property caused by fire for the residents of Kodiak Maintain adequate volunteer/responder membership to adequately responsed in the case of an emergency Provide First Responder Emergency Medical Response for the Community 115 WOMEN’S BAY FIRE DEPARTMENT (CONT.) F Y2019 Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Property Taxes 99,338$ 101,077$ 102,939$ 101,828$ 102,939$ Penalties & Interest Tax 0 0 - - - State Shared Revenue 2,310 - 80 Charges for Services 14,300 14,716 17,211 15,366 17,211 Licenses & Permits - - - - - Interest Earnings 4,095 2,853 1,000 2,913 1,000 Other 14,580 14,510 12,000 14,500 12,000 Use of Fund Balance - - 50,000 50,000 Operating Transfers In - - - - - Total Revenues 134,623$ 133,156$ 183,230$ 134,606$ 183,150$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 785$ 1,040$ 7,000$ 1,674$ 12,000$ Fringe Benefits 479 724 3,000 801 1,000 Professional Services 5,460 3,120 - 5,746 - Contributions - - - - - Legal Services - 1,369 - - - Support Goods & Services 67,017 61,523 113,930 79,920 120,150 Capital Outlay - - 59,300 79,050 50,000 Allocated to other funds - - - - - Operating Transfers 100,000 - - Total Expenditures 173,741$ 67,776$ 183,230$ 167,191$ 183,150$ Expenditures Revenues 116 KIB AIRPORT FIRE DISTRICT FY2019 PROGRAM DESCRIPTION: This program is responsible for providing fire suppression and prevention services to the citizens of the Kodiak Island Borough Airport Fire Protection Area. GOALS AND OBJECTIVES: Minimize the impact on life and property attributable to fire through the development and implementation of fire prevention and suppression programs. Continue contracting with Women’s Bay Fire Department to provide fire suppression and prevention service to the district. ANALYSIS: This service area does not currently have an active board. All services are contracted with the Women’s Bay Fire Department. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2019. Special Note: If you are a service area resident and want to participate on this board, please contact the Clerk’s Office for an application. Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Property Tax 14,716$ 15,366$ 16,741$ 16,701$ 16,741$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - - - - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 233 211 500 192 200 Miscellaneous - - - - Other Funding Sources - - - - Operating Transfers - - - - Total Revenues 14,949$ 15,576$ 17,241$ 16,892$ 16,941$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ -$ Employee Benefits - - - - - Professional Services 14,300 14,716 17,211 15,366 16,921 Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 30 20 30 - 20 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures 14,330$ 14,736$ 17,241$ 15,366$ 16,941$ Revenues Expenditures 117 WOODLAND ACRES STREET LIGHT SERVICE AREA FY2019 PROGRAM DESCRIPTION: The Woodland Acres Street Light Service Area provides construction, operation, and maintenance of street lights on public streets within its boundaries. GOALS AND OBJECTIVES: Provide street lighting to ensure a safer environment for all residents and visitors of Woodland Acres. Maintain and adequately fund the current street lights. ANALYSIS: This service area is currently inactive. The mill rate and fund balance will be used to defray any administrative costs incurred by this fund. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2019. Special Note: If you are a service area resident and want to participate on this board, please contact the Clerk’s Office for an application. Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Property Tax 4,932$ 5,155$ 5,269$ 5,241$ 5,268$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - - - - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 213 153 200 160 150 Miscellaneous - - - - - Other Funding Sources - - - - - Operating Transfers - - - - - Total Revenues 5,145$ 5,308$ 5,469$ 5,401$ 5,418$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ -$ Employee Benefits - - - - - Professional Services - - - - - Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 4,828 4,816 5,469 4,672 5,418 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures 4,828$ 4,816$ 5,469$ 4,672$ 5,418$ Revenues Expenditures 118 TRINITY ISLANDS STREET LIGHT SERVICE AREA FY2019 PROGRAM DESCRIPTION: The Trinity Islands Street Light Service Area provides construction, operation, and maintenance of street lights on public streets within its boundaries. GOALS AND OBJECTIVES: Provide street lighting to ensure a safer environment for all residents and visitors of Trinity Islands. Maintain and adequately fund the current street lights. ANALYSIS: This service area is currently inactive. The mill rate and fund balance will be used to defray any administrative costs incurred by this fund. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2019. Special Note: If you are a service area resident and want to participate on this board, please contact the Clerk’s Office for an application. Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Property Tax 2,334$ 2,446$ 2,498$ 2,498$ 1,874$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - - - - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 190 136 - 147 130 Miscellaneous - - - - - Other Funding Sources - - - - - Operating Transfers - - - - - Total Revenues 2,524$ 2,582$ 2,498$ 2,645$ 2,004$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ -$ Employee Benefits - - - - - Professional Services - - - - - Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 1,798 1,793 2,498 1,796 2,004 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures 1,798$ 1,793$ 2,498$ 1,796$ 2,004$ Revenues Expenditures 119 MISSION LAKE TIDE GATE FY2019 PROGRAM DESCRIPTION: This service area provides tide-gate maintenance to benefit the area residents as well as the surrounding community. The original tide-gate was established after the 1964 tsunami and remains in place with outfall onto Mission Beach GOALS AND OBJECTIVES: Provide maintenance of the tide gate for the safety of the residents of Mission Lake and adjacent Mission Beach. Remove debris and maintain the tide gate. ANALYSIS: Without a tide-gate and without proper maintenance and oversight, Mission Lake water level could rise and adversely affect lakefront properties. This location was vulnerable to filling with sand and plugging up, due to exposure to more severe surf conditions. The new tide-gate is more protected and less likely to back up due to kelp or sand blocking the outlet. In the last ten years, there has only been one incident of severe blockage that required heavy equipment to alleviate. SIGNIFICANT BUDGET CHANGES: Service district assessment history has been consistent at 1 mill, collecting about $6,000/year. The fund balance has risen to over $60,000 at this rate. Due to lower maintenance costs, less than $500 in past years, a lower assessment of .25 mills is proposed for FY2019. Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Property Tax 5,976$ 6,147$ 6,192$ 6,192$ 1,548$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - 6 - - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 332 259 - 298 250 Miscellaneous - - - - - Other Funding Sources - - - - - Operating Transfers - - - - - Total Revenues 6,308$ 6,406$ 6,198$ 6,490$ 1,798$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 757$ 255$ 150$ 383$ 133$ Employee Benefits 452 206 98 251 106 Professional Services - - 5,850 - 1,448 Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services 11 8 100 8 111 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures 1,220$ 468$ 6,198$ 641$ 1,798$ Revenues Expenditures 120 FACILITIES FUND FY2019 PROGRAM DESCRIPTION: This fund was established with the proceeds from the sale of Shuyak Island. The Borough entered into an agreement with the Exxon Valdez Oil Spill Trustee Council to sell all its rights on Shuyak Island for $42 million to the State of Alaska. The Borough received $8 million in FY1996, $2,194,266 in FY1997, $4,000,000 in FY1998 through FY2002, and the balance of $11,805,734 in FY2003. $6 million was utilized in construction of the Kodiak Fisheries Research Center, and the remaining $36 million established the Facilities Fund. The purpose of this fund is to maintain the proceeds of the sale and use excess earnings to help support Borough operations. Ordinance No. FY1996-13 states the conditions under which the Borough can use these funds and that excess income of the fund is defined as 85% of the annual investment income of the fund. The excess income of the fund may be appropriated only for the following purposes: for maintenance and repair of Borough buildings, insurance on Borough buildings, and upgrade and reconstruction of existing buildings. Additionally, up to 50% of the excess may be used for debt service on general obligation bonds issued for facilities construction Since inception, the Facilities fund has earned $20,038,565 in net investment income and has transferred $16,837,018 to capital projects, debt service, and building and grounds (for property insurance). GOALS AND OBJECTIVES: Preserve the principal of the fund. Uphold the conditions established by the fund and Ordinance No. FY1996-13. Achieve a fair rate of return on allowable investments ANALYSIS: Current investment policies mandate following GFOA’s investment recommendations which focus on the preservation of principal and the use of risk adverse investments. This short-term investment strategy is used in order to promote quick access to liquid assets which may be needed for day-to-day operational use. This policy may not be appropriate for the long-term nature of these funds. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2019. 121 FACILITIES FUND (CONT.) FY2019 Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Property Tax -$ -$ -$ -$ -$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - - - - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 515,662 191,391 170,000 203,429 208,500 Miscellaneous - - - - - Other Funding Sources - - - - 240,500 Operating Transfers - - - - Total Revenues 515,662$ 191,391$ 170,000$ 203,429$ 449,000$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ -$ Employee Benefits - - - - - Professional Services - - - - - Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services - - 39,790 - - Capital Outlay - - - - - Operating Transfers - - - - - Education Support Fund 140,000 - - - - Buildings & Grounds 18,000 - 10,000 10,000 5,000 Debt Service 150,000 151,858 65,105 65,105 - Renewal & Replacement 90,454 286,455 55,105 55,105 444,000 Total Expenditures 398,454$ 438,313$ 170,000$ 130,210$ 449,000$ Revenues Expenditures 122 TOURISM DEVELOPMENT FY2019 PROGRAM DESCRIPTION: The fund collects the transient accommodations (bed) tax revenue and cruise ship revenue sharing to promote increased development of the tourism industry and various tourism related programs within the Kodiak Island Borough. GOALS AND OBJECTIVES: Recognize tourism as a diversification of the island’s economy and promote its growth. Promote and fund tourism development activities including but not limited to museums, fishing, bear viewing, hiking, and lodging. ANALYSIS: The current tax rate for the transient accommodation tax is 5% with a 2% administrative discount if the quarterly returns is filed timely. There are no current plans to change this rate. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes. 123 TOURISM DEVELOPMENT (CONT.) FY2019 Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Property Tax -$ -$ -$ -$ -$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Transient Accomodations Tax 95,466 108,050 94,000 113,485 98,000 Licenses & Permits - - - - - State Shared Revenue 30,255 30,888 30,500 37,625 30,000 State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 1,417 948 950 976 600 Miscellaneous - - - - - Other Funding Sources - - 6,550 - 3,400 Operating Transfers - - - - - Total Revenues 127,138$ 139,885$ 132,000$ 152,086$ 132,000$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ -$ Employee Benefits - - - - - Professional Services - - - - Legal Services - - - - - Contributions 85,000 109,521 87,000 96,501 87,000 Service District Maint.- - - - Support Goods & Services - 69 - Capital Outlay - - - - Operating Transfers - 45,000 45,000 45,000 45,000 Total Expenditures 85,000$ 154,521$ 132,000$ 141,569$ 132,000$ Revenues Expenditures 124 FERN FULLER TRUST FY2019 PROGRAM DESCRIPTION: This trust was established to fund new equipment purchases at the Kodiak Island Borough hospital facility and to make payment to six beneficiaries. The funding for the trust came from the cash and assets of the Fern Fuller Charitable Unitrust. ANALYSIS: This fund has seen no activity since the final trust distribution occurred in FY2017. No further activity is anticipated. SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2019. Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Property Tax -$ -$ -$ -$ -$ Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - - - - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 840 - - - - Miscellaneous - - - - - Other Funding Sources - - - - - Operating Transfers - - - - - Total Revenues 840$ -$ -$ -$ -$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services -$ -$ -$ -$ -$ Employee Benefits - - - - - Professional Services - - - - - Legal Services - - - - - Contributions - - - - - Service District Maint.- - - - - Support Goods & Services - - - - Capital Outlay - - - - - Operating Transfers 66,500 134,372 - - - Total Expenditures 66,500$ 134,372$ -$ -$ -$ Revenues Expenditures 125 DEBT SERVICE FUND The Debt Service Fund accounts for the payment of interest and principal on long-term debt resulting from the sale of general obligation bonds. This fund does not include the accounting for special assessments and service debts of governmental enterprises. Debt Policies The Kodiak Island Borough has a written debt policy in the Kodiak Island Borough Code, Title 3 – Revenue and Finance, Chapter 3.05.030. The policy is used to analyze the existing debt position of the Borough and assess the impact of future financing requirements on the Borough’s ability to service debt. Review and analysis of the Borough’s debt provides a capital financing plan for infrastructure and other improvements. Both available resources and Borough needs drive the Borough’s debt issuance program. Long- term projected financing is linked with economic, demographic, and financial resources expected to be available to repay the debt. The use of debt ratios is only one tool of many in determining a course of action and is not used exclusively in making decisions. Decisions regarding the use of debt is based upon a number of factors including, but not limited to, the long-term needs of the Borough and the amount of resources available to repay the debt. The Kodiak Island Borough has a five-year Capital Improvement Program. Each year the Assembly updates the program to maintain the list of needed capital improvement priorities. Capital funds spent on projects will result in long-term economic growth beyond the initial capital expenditure and will in turn contribute significantly to the economy and revenue for many years. Legal Debt Margin There is no limitation on the amount of taxes the Borough can levy to pay for bonds. State Code reads: “Sec. 29.45.100. No limitations on taxes to pay bonds. The limitations provided for in AS29.45.080 - 29.45.090 do not apply to taxes levied or pledged to pay or secure the payment of the principal and interest on bonds. Taxes to pay or secure the payment of principal and interest on bonds may be levied without limitation as to rate or amount, regardless of whether the bonds are in default or in danger of default.” The voters of the Kodiak Island Borough ultimately determine the amount of debt that can be outstanding. The citizens of the Borough pass a ballot question giving the Borough the authority to issue bonds to fund projects. 126 DEBT SERVICE FY2019 PROGRAM DESCRIPTION: This fund was established to finance and account for the payment of interest and principal on general obligation debts. This fund does not include enterprise fund revenue bonds which are reported in their respected fund. GOALS AND OBJECTIVES: Promote fiscal policies that ensure stability, growth, and responsible government. eet all debt requirements when due, thus avoiding any charges for penalties of interest ANALYSIS: Due to the State of Alaska’s 25% reduction to debt reimbursements in FY2017, a transfer was made from the General Fund to cover the shortfall. This shortfall was repaid to the General Fund in FY2018 and FY2019. SIGNIFICANT BUDGET CHANGES: No significant budget changes. 127 DEBT SERVICE (CONT.) FY2019 Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Real Property Tax 1,831,724$ 2,228,918$ 2,446,067$ 2,433,591$ 2,301,371$ Personal Property Tax 201,703 274,672 278,634 277,523 256,034 Penalties & Interest - 17 - - - State Debt Reimbursement 4,304,877 3,840,763 4,985,040 4,985,040 5,220,834 Interest Earnings (149) (608) - (1,747) - Proceeds from Bond Issues 62,818 806,205 - - Use of Fund Balance - - - - Transfers In 150,000 1,059,380 65,105 65,105 - Total Revenues 6,550,973$ 8,209,347$ 7,774,846$ 7,759,512$ 7,778,239$ EDUCATION Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Consultants 3,600$ -$ 3,600$ 16,050$ 17,299$ Support Goods & Services 5,524 11 - 7 - Principal 3,170,000 9,150,000 3,870,000 3,870,000 4,425,000 Interest 3,193,523 3,882,860 3,408,310 3,408,309 3,245,932 Refunded Bond Costs 124,372 64,313 - - 90,008 Transfers Out 69,553 - 492,936 492,436 - Subtotal Education 6,566,572$ 13,097,184$ 7,774,846$ 7,786,802$ 7,778,239$ KARLUK LOANS Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Principal 31,617$ -$ -$ -$ -$ Interest 474 - - - - Subtotal Karluk Loans 32,091$ -$ -$ -$ -$ Total Expenditures 6,598,663$ 13,097,184$ 7,774,846$ 7,786,802$ 7,778,239$ 128 Per Capita Bonded Debt has increased from $2,175 to $7,005 in the last ten years this increase is from the sale of bonds to finance the construction of a new swimming pool, and the renovation and construction on the high school. It should be noted, however, that per capita bonded debt decreased from $7,475 in FY2017 to $7,096 in FY2018. Even though the assessed value of the Borough continues to rise, the net debt is increasing at a higher rate. There are currently $2 million of authorized and unsold bonds available to sell for renewal and replacement projects. 129 Debt service expenditures increased in FY2017 due to the refinancing of the 2008A bond. Debt service expenditures per capita also increased in FY2017 due to the refinancing of the 2008A bond. $- $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 Debt Service Expenditures Per Capita 130 Fiscal Year Principal Interest Total 2019 4,425,000 3,245,934 7,670,934 2020 4,605,000 3,063,034 7,668,034 2021 4,800,000 2,881,384 7,681,384 2022 5,020,000 2,661,884 7,681,884 2023 5,250,000 2,418,721 7,668,721 2024 5,505,000 2,163,709 7,668,709 2025 5,780,000 1,885,646 7,665,646 2026 4,585,000 1,651,321 6,236,321 2027 3,885,000 1,445,609 5,330,609 2028 4,075,000 1,251,628 5,326,628 2029 3,645,000 1,062,890 4,707,890 2030 3,830,000 881,178 4,711,178 2031 4,015,000 692,853 4,707,853 2032 3,590,000 501,671 4,091,671 2033 3,770,000 322,896 4,092,896 2034 2,240,000 155,056 2,395,056 2035 580,000 43,322 623,322 2036 610,000 14,713 624,713 70,210,000 26,343,447 96,553,447 SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS TO MATURITY KODIAK ISLAND BOROUGH As of June 30, 2018 Annual principal and interest requirements on General Obligation Bonds. 131 Fiscal year Interest rate Interest due September 01 Principal due April 01 Interest due March 01 Total 2019 3.45%140,700 340,000 140,700 621,400 2020 3.70%133,900 355,000 133,900 622,800 2021 3.93%126,800 370,000 126,800 623,600 2022 4.80%119,400 385,000 119,400 623,800 2023 4.80%110,256 405,000 110,256 625,513 2024 4.80%100,638 425,000 100,638 626,275 2025 5.20%90,544 445,000 90,544 626,088 2026 5.20%79,975 465,000 79,975 624,950 2027 5.20%68,931 485,000 68,931 622,863 2028 5.20%56,503 510,000 56,503 623,006 2029 5.20%43,434 535,000 43,434 621,869 2030 5.20%29,725 565,000 29,725 624,450 2031 5.20%15,247 595,000 15,247 625,494 1,116,053$ 5,880,000$ 1,116,053$ 8,112,106$ The 2011 Series A General Obligation School Bonds were issued to provide funds for school and related capital improvements in the Borough, specifically to provide a portion of the funds needed for the Kodiak High School Addition and Renovation. KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS RETIREMENT SCHEDULE As of June 30, 2018 2011 SERIES A 132 Fiscal Year Interest Rate Interest Due September 1 Principal Due September 1 Interest due March 1 Total 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 - 645,750 388,825 3,845,000 297,825 4,531,650 The 2012 Series A General Obligation School Bonds were issued to refund (refinance) the 2004 Series A General Obligation bonds that were issued to provide funds for school and related capital improvements in the Borough, specifically to fund various school facility repairs. KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS RETIREMENT SCHEDULE As of June 30, 2018 2012 Series A 133 Fiscal Year Interest Rate Interest Due September 1 Principal Due September 1 Interest due March 1 Total 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 - 789,250 474,525 4,695,000 363,400 5,532,925 KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS RETIREMENT SCHEDULE As of June 30, 2018 The 2012 Series A General Obligation School Bonds were issued to refund (refinance) the 2004 Series B General Obligation bonds that were issued to provide funds for school and related capital improvements in the Borough, specifically to fund construction of the new pool facility. 2012 Series B 134 Fiscal Year Interest Rate Interest Due August 01 Principal Due February 01 Interest due February 01 Total 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 3,741,425 17,860,000 3,741,425 25,342,850 KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS RETIREMENT SCHEDULE As of June 30, 2018 The 2013 Series Two General Obligation School Bonds were issued to provide funds for school and related capital improvements in the Borough, specifically to provide a portion of the funds needed for the Kodiak High School Addition and Renovation. 2013 Series Two 135 Fiscal Year Interest Rate Interest Due September 01 Principal Due March 01 Interest Due March 01 Total 2019 2.00%446,356 880,000 446,356 1,772,713 2020 2.00%437,556 900,000 437,556 1,775,113 2021 5.00%428,556 915,000 428,556 1,772,113 2022 5.00%405,681 965,000 405,681 1,776,363 2023 5.00%381,556 1,010,000 381,556 1,773,113 2024 5.00%356,306 1,060,000 356,306 1,772,613 2025 3.12%329,806 1,110,000 329,806 1,769,613 2026 5.00%312,463 1,150,000 312,463 1,774,925 2027 5.00%283,713 1,205,000 283,713 1,772,425 2028 5.00%253,588 1,265,000 253,588 1,772,175 2029 5.00%221,963 1,330,000 221,963 1,773,925 2030 5.00%188,713 1,395,000 188,713 1,772,425 2031 4.50%153,838 1,465,000 153,838 1,772,675 2032 5.00%120,875 1,535,000 120,875 1,776,750 2033 5.00%82,500 1,610,000 82,500 1,775,000 2034 5.00%42,250 1,690,000 42,500 1,774,750 4,445,719 19,485,000 4,445,969 28,376,688 The 2014 Series A General Obligation School Bonds were issued to provide funds for school and related capital improvements in the Borough, specifically to provide a portion of the funds needed for the Kodiak High School Addition and Renovation. KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS RETIREMENT SCHEDULE As of June 30, 2018 2014 Series A 136 Fiscal Year Interest Rate Interest Due October 01 Principal Due October 01 Interest Due April 01 Total 2019 4.00%145,206 205,000 141,106 491,313 2020 5.00%141,106 215,000 135,731 491,838 2021 5.00%135,731 225,000 130,106 490,838 2022 5.00%130,106 240,000 124,106 494,213 2023 5.00%124,106 250,000 117,856 491,963 2024 5.00%117,856 265,000 111,231 494,088 2025 5.00%111,231 275,000 104,356 490,588 2026 5.00%104,356 290,000 97,106 491,463 2027 5.00%97,106 305,000 89,481 491,588 2028 5.00%89,481 320,000 81,481 490,963 2029 5.00%81,481 335,000 73,106 489,588 2030 5.00%73,106 355,000 64,231 492,338 2031 4.00%64,231 370,000 56,831 491,063 2032 5.25%56,831 390,000 46,594 493,425 2033 5.25%46,594 410,000 35,831 492,425 2034 5.25%35,831 430,000 24,544 490,375 2035 5.25%24,544 455,000 12,600 492,144 2036 5.25%12,600 480,000 - 492,600 1,591,506 5,815,000 1,446,300 8,852,806 KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS RETIREMENT SCHEDULE As of June 30, 2018 The 2015 Series Three General Obligation School Bonds were issued to provide funds for school and related capital improvements in the Borough, specifically to provide a portion of the funds needed for the Kodiak High School Addition and Renovation. 2015 Series A 137 Fiscal Year Interest Rate Interest Due October 01 Principal Due October 01 Interest Due April 01 Total 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 - 225,500 176,350 1,485,000 140,000 1,801,350 The 2015 Series Three General Obligation School Bonds were issued to provide funds for school and related capital improvements in the Borough, specifically to provide for school facility renewal and replacement needs. KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS RETIREMENT SCHEDULE As of June 30, 2018 2015 Series Three 138 Fiscal Year Interest Rate Interest Due August 01 Principal Due August 01 Interest Due February 01 Total 2019 5.00%33,584 65,000 31,959 130,544 2020 5.00%31,959 70,000 30,209 132,169 2021 5.00%30,209 75,000 28,334 133,544 2022 5.00%28,334 80,000 26,334 134,669 2023 5.00%26,334 80,000 24,334 130,669 2024 5.00%24,334 85,000 22,209 131,544 2025 5.00%22,209 90,000 19,959 132,169 2026 5.00%19,959 95,000 17,584 132,544 2027 2.00%17,584 100,000 16,584 134,169 2028 4.00%16,584 100,000 14,584 131,169 2029 4.00%14,584 105,000 12,484 132,069 2030 2.63%12,484 110,000 11,041 133,525 2031 3.00%11,041 110,000 9,391 130,431 2032 3.00%9,391 115,000 7,666 132,056 2033 3.00%7,666 120,000 5,866 133,531 2034 3.00%5,866 120,000 4,066 129,931 2035 3.13%4,066 125,000 2,113 131,178 2036 3.25%2,113 130,000 - 132,113 318,303 1,775,000 284,719 2,378,022 The 2016 Series A General Obligation School Bonds were issued to provide funds for school and related capital improvements in the Borough, specifically to provide for the Kodiak High School Addition and Renovation. KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS 2016 Series A RETIREMENT SCHEDULE As of June 30, 2018 139 Fiscal Year Interest Rate Interest Due August 01 Principal Due August 01 Interest Due February 01 Total 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 - 676,500 531,500 4,465,000 419,875 5,416,375 The 2016 Series B General Obligation School Bonds were issued to provide funds for school and related capital improvements in the Borough, specifically to provide for school facility renewal and replacement needs. KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS 2016 Series B RETIREMENT SCHEDULE As of June 30, 2018 140 Fiscal Year Interest Rate Interest Due December 01 Principal Due December 01 Interest Due June 01 Total 2019 4.00%114,175 395,000 106,275 615,450 2020 4.00%106,275 415,000 97,975 619,250 2021 4.00%97,975 430,000 97,375 625,350 2022 4.00%97,375 450,000 80,375 627,750 2023 5.00%80,375 470,000 68,625 619,000 2024 5.00%68,625 495,000 56,250 619,875 2025 5.00%56,250 520,000 43,250 619,500 2026 5.00%43,250 550,000 29,500 622,750 2027 5.00%29,500 575,000 15,125 619,625 2028 5.00%15,125 605,000 - 620,125 708,925 4,905,000 594,750 6,208,675 The 2016 Series Three General Obligation School Bonds were issued to refund (refinance) the 2008 Series A General Obligation Bonds were issued to provide funds for school and related capital improvements in the Borough, specifically the new school pool facility. KODIAK ISLAND BOROUGH GENERAL OBLIGATION BONDS 2016 Series Three RETIREMENT SCHEDULE As of June 30, 2018 141 CAPITAL PROJECTS FUND Capital Projects Fund Description Capital Projects Funds have been set up to account for projects that are not permanently ongoing in nature, are budgeted for total cost of the project instead of annual expenditures or expenses and are related to one specific activity. If the specific activity is the building or renovation of an asset, it is moved from a project to an asset classification when complete. Capital projects funds do not include special revenue, debt service or enterprise funds. Altogether, the Borough has $133,557,214 in ongoing capital projects. This represents $9,816 in ongoing capital projects for every man, woman and child in the Borough. These projects are within nine (9) different capital project funds. They are: Fund 410 – Borough Capital Projects – No active projects at this time. Fund 426 – Borough Capital Projects - KFRC Fund 430 – State Funded Capital Projects Fund 450 – Borough Capital Projects Fund 460 – Kodiak High School Renovation and Replacement Capital Project Fund 469 – Renewal and Replacement Capital Projects Fund 470 – Bonded Renewal and Replacement Capital Projects Fund 490 – Solid Waste Capital Projects Fund 495 – Hospital and Long-Term Care Capital Projects Borough Capital Project – Fund 410 This fund contains a project to collect and remove waste metals in the villages surrounding Kodiak island. Borough Capital Project – Fund 426 This fund contains projects relating to the Kodiak Fisheries Research Center. The last completed project was upgrades of the HVAC and electrical systems. Current projects are upgrading the direct digital controls (DDC) of the building and a plan to upgrade the fire alarm system. State Capital Grants – Fund 430 The State of Alaska and the Federal Government have awarded the Kodiak Island Borough an impressive array of grants. At this time the Borough has $3,073,000 in State Capital Grants, as well as $475,000 from the U.S. Department of Housing and Urban Development. These grants include $2,000,000 for a new dock in Anton Larsen, and $1,025,000 and $475,000 for an emergency shelter in Womens Bay. Borough Capital Projects – Fund 450 The Borough has $1,290,429 in ongoing capital projects in a second miscellaneous capital projects fund. This fund includes many two grant funded projects. One is a $118,166 grant from the U.S. Fish and Wildlife Service for a culvert replacement at Lake Orbin. The other is a $600,000 grant from the Environmental Protection Agency Brownfield Assessment program for identifying, assessing and initializing clean-up and redevelopment of land. The project to rebuild the Chiniak emergency shelter is also in this fund and it is currently budgeted at $540,958. Kodiak High School Renovation and Renewal – Fund 460 On October 9, 2009, the voters approved a $76,310,000 bond issue for the High School Renovation and Addition project. Between various other funding sources, the entire project is budgeted at $80,479,009. Construction is complete and in use by students and school personnel. 142 Renewal and Replacement Capital Projects – Fund 469 This fund is for the renewal and replacement of worn out and obsolete capital assets. Bonded Renewal and Replacement Capital Projects – Fund 470 On October 7, 2014, the voters approved a $10,230,000 bond issue to fund replacement and renewal of worn and obsolete school capital assets. Projects in this fund are currently budgeted fully at the not-to-exceed amount of $10,230,000. Solid Waste Capital Projects – Fund 490 The Borough has $32,665,000 in capital projects relating to our landfill. The funding for these projects comes from the sale of bonds, grants, and loans from the Alaska Clean Water Fund. In addition, there are two new projects for the baler building: one to replace the siding and one to replace the roof. Hospital and Long-Term Care Capital Projects – Fund 495 The Borough has $726,000 in capital projects relating to our hospital facility. The funding from these projects comes from the hospital enterprise fund. These projects are to replace part of the roofing of the hospital and to upgrade and replace the fire suppression and alarm system. 143 This page is left intentionally blank. 144 Borough Capital Projects: Project Budget as 07/01/2017 Life-to-Date Usage as of 06/30/18 CompletedFY 2018 Amendments Project Budget Remaining as of 06/30/2018 Revenues: Fund 410 - Borough Capital Projects - This fund has no projects at this time -$ -$ -$ -$ Fund 426 - KFRC Capital Projects 1,327,238 1,655,231 327,993 - Fund 430 - State Grant Projects 3,748,000 3,334,167 - 419,296 Fund 450 - Borough Capital Projects 1,290,429 933,551 - 487,554 Fund 460 - High School Renewal and Replacement Project 80,479,009 80,503,119 - 225,890 Fund 469 - Borough Renewal and Replacement Projects 2,731,538 2,740,899 - - Fund 470 - Bonded Renewal and Replacement Projects 10,280,000 7,334,839 - 3,018,833 Fund 490 - Solid Waste Capital Projects 32,975,000 30,729,537 - 1,888,011 Fund 495 - Hospital and Long-Term Care Capital Projects 726,000 726,000 - - Total Revenues 133,557,214$ 127,957,343$ 327,993$ 6,039,584$ Projects: Fund 410 - Borough Capital Projects - This fund has no projects at this time -$ -$ -$ -$ Fund 426 - KFRC Capital Projects 1,327,238 1,641,324 327,993 13,907 Fund 430 - State Grant Projects 3,748,000 3,447,366 - 300,634 Fund 450 - Borough Capital Projects 1,290,429 372,941 - 917,488 Fund 460 - High School Renewal and Replacement Project 80,479,009 79,159,328 - 1,319,681 Fund 469 - Borough Renewal and Replacement Projects 2,731,538 520,434 - 1,936,104 Fund 470 - Bonded Renewal and Replacement Projects 10,280,000 2,983,588 - 1,047,935 Fund 490 - Solid Waste Capital Projects 32,975,000 28,514,368 - 4,460,632 Fund 495 - Hospital and Long-Term Care Capital Projects 726,000 3,942 - 722,058 Total Expenditures 133,557,214$ 116,643,291$ 327,993$ 10,718,439$ CURRENT FUND ACTIVITY 145 FY2019 FY2020 FY2021 FY2022 FY2023 -$ -$ -$ -$ -$ - - - - - 419,296 - - - - 253,086 253,086 - - - 50,000 - - - - - - - - - - - - - - 1,888,011 - - - - - - - - - 2,610,393$ 253,086$ -$ -$ -$ -$ -$ -$ -$ -$ 13,907 - - - - 300,634 - - - - 478,130 478,129 - - - 1,319,681 - - - - 27,922 - 1,908,182 - - 1,049,829 - - - - 4,460,633 - - - - 722,058 - - - - 8,372,794$ 478,129$ 1,908,182$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 146 Fund 410-Borough Capital Projects: Project Budget as 07/01/2017 Life-to-Date Usage as of 06/30/18 CompletedFY 2018 Amendments Project Budget Remaining as of 06/30/2018 Revenues: No active projects at this time.- - - - - - - - Total Revenues -$ -$ -$ -$ Projects: No active projects at this time.- - - - - - - - Total Expenditures -$ -$ -$ -$ CURRENT FUND ACTIVITY 147 148 Fund 426-Borough Capital Projects: Project Budget as 07/01/2017 Life-to-Date Usage as of 06/30/18 CompletedFY 2018 Amendments Project Budget Remaining as of 06/30/2018 Revenues: Transfer in from Fund 555 - KFRC 1,327,238 1,655,231 327,993 - Total Revenues 1,327,238$ 1,655,231$ 327,993$ -$ Projects: Project #12015 KFRC Energy Project 1,327,238 1,327,238 Y - (0) Project #17009 KFRC Direct Digital Controls Upgrade - 314,086 327,993 13,907 Total Expenditures 1,327,238$ 1,641,324$ 327,993$ 13,907$ CURRENT FUND ACTIVITY 149 FY2019 FY2020 FY2021 FY2022 FY2023 - - - - - -$ -$ -$ -$ -$ - - - - - 13,907 - - - - 13,907$ -$ -$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 150 Project #12015 KFRC Energy Project Fiscal Year Project Began: 2012 Project Description: This scope of this project is to upgrade the HVAC and electrical systems at KFRC to improve efficiency and reduce energy costs. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration 43,566$ 43,566$ -$ (0)$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 211,520 211,520 - 0 - - - - - Construction 1,072,152 1,072,152 - 0 - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead - - - - - - - - - Totals 1,327,238$ 1,327,238$ -$ (0)$ -$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project #17009 KFRC Direct Digital Controls (DDC) Upgrade Fiscal Year Project Began: 2018 Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration 32,799$ 3,769$ -$ 29,030$ 13,907$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - - - - - - - - - Construction 245,995 306,095 - (60,100) - - - - - Equipment 2,459 4,222 - (1,763) - - - - - Other Services - - - - - - - - - Contingency 46,740 - - 46,740 - - - - - Overhead - - - - - - - - - Totals 327,993$ 314,086$ -$ 13,907$ 13,907$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Description: The scope of this project is for the upgrade of the ventilation controls including controller, programming of logic software and associated field devices. 151 This page is left intentionally blank 152 Fund 430-State Funded Capital Projects: Project Budget as 07/01/2017 Life-to-Date Usage as of 06/30/18 CompletedFY 2018 Amendments Project Budget Remaining as of 06/30/2018 Revenues: 07003 Island Lake Trail - Grant 48,000 43,806 Y - - 10032 Women's Bay Emergency Shelter - Federal HUD Grant 1,600,000 1,500,000 - 100,000 12010 Anton Larsen Dock - Grant 2,100,000 1,780,704 - 319,296 Interest Earnings - 9,657 - - Total Revenues 3,748,000$ 3,334,167$ -$ 419,296$ Projects: Project #07003 Island Lake Trail 48,000 48,000 Y - - Project #10032 Women's Bay Emergency Shelter 1,600,000 1,597,563 - 2,437 Project #12010 Anton Larsen Dock 2,100,000 1,801,803 - 298,197 Total Expenditures 3,748,000$ 3,447,366$ -$ -$ 300,634$ CURRENT FUND ACTIVITY 153 FY2019 FY2020 FY2021 FY2022 FY2023 - - - - - 100,000 - - - - 319,296 - - - - 419,296$ -$ -$ -$ -$ - - - - - 2,437 - - - - 298,197 - - - - 300,634$ -$ -$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 154 Project #07003 Island Lake Trail Fiscal Year Project Began: 2007 Project Description: This scope of this project is to extend and enhance the trail at Island Lake. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ 39$ -$ (39)$ -$ -$ -$ -$ -$ CM In House - 1,193 - (1,193) - - - - - Land - - - - - - - - - Site Investigation 4,800 - - 4,800 - - - - - Design Services 41,280 - - 41,280 - - - - - Construction - 46,768 - (46,768) - - - - - Equipment - - - - - - - - - Other Services 1,920 - - 1,920 - - - - - Contingency - - - - - - - - - Overhead - - - - - - - - - Totals 48,000$ 48,000$ -$ -$ -$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project #10032 Women's Bay Emergency Shelter Fiscal Year Project Began: 2010 Project Description: The scope of this project is upgrade the emergency shelter for the residents of Women's Bay. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House 643 643 - - - - - - - Land - - - - - - - - - Site Investigation 2,060 2,060 - - - - - - - Design Services 224,509 228,264 - (3,755) - - - - - Construction 1,302,788 1,268,320 - 34,468 2,437 - - - - Equipment - 24,367 - (24,367) - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead 70,000 73,908 - (3,908) - - - - - Totals 1,600,000$ 1,597,563$ -$ 2,437$ 2,437$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 155 Project #12010 Anton Larsen Dock Fiscal Year Project Began: 2012 Project Description: The scope of this project is to provide upgrades and expansion of exisiting floating dock facilities at the head of Anton Larsen Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - 294,597 - (294,597) - - - - - Construction - 1,456,331 - (1,456,331) - - - - - Equipment 2,100,000 - - 2,100,000 298,197 - - - - Other Services - 520 - (520) - - - - - Contingency - - - - - - - - - Overhead - 50,355 - (50,355) - - - - - Totals 2,100,000$ 1,801,803$ -$ 298,197$ 298,197$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 156 Fund 450-Borough Capital Projects: Project Budget as 07/01/2017 Life-to-Date Usage as of 06/30/18 CompletedFY 2018 Amendments Project Budget Remaining as of 06/30/2018 Revenues: 14001 Lake Orbin Culvert Replacement 149,471 168,089 - (18,618) 16003 Chiniak Emergency Shelter Rebuild 540,958 540,958 - - 17008 EPA Brownfield Assessment Grant 600,000 93,828 - 506,172 Interest Earnings - 130,675 - - Total Revenues 1,290,429$ 933,551$ -$ 487,554$ Projects: Project #14001 Lake Orbin Culvert Replacement 149,471 188,242 - (38,771) Project #16003 Chiniak Emergency Shelter Rebuild 540,958 90,871 - 450,087 Project #17008 EPA Brownfield Assessment Grant 600,000 93,828 - 506,172 Total Expenditures 1,290,429$ 372,941$ -$ -$ 917,488$ CURRENT FUND ACTIVITY 157 FY2019 FY2020 FY2021 FY2022 FY2023 - - - - - - - - - - 253,086 253,086 - - - - - - - - 253,086$ 253,086$ -$ -$ -$ - - - - - 225,044 225,043 - - - 253,086 253,086 - - - 478,130$ 478,129$ -$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 158 Project #14001 Lake Orbin Culvert Replacement Fiscal Year Project Began: 2014 Project Description: Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House 5,000 - - 5,000 - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - 48,336 - (48,336) - - - - - Construction 116,471 130,388 - (13,917) - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 23,000 - - 23,000 - - - - - Overhead 5,000 9,518 - (4,518) - - - - - Totals 149,471$ 188,242$ -$ (38,771)$ -$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY This scope of this project is to design and construct at least one identified fish barrier culvert with fish friendly culverts within the Lake Orbin drainage Project #16003 Chiniak Emergency Shelter Rebuild Fiscal Year Project Began: 2017 Project Description: The scope of this project is to rebuild the Chiniak Emergency Shelter to replace the one that was destroyed by the Twin Creeks fire in 2015. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - 15,870 - (15,870) - - - - - Construction - 30,666 - (30,666) - - - - - Equipment - - - - - - - - - Other Services 540,958 34,619 - 506,340 225,044 225,043 - - - Contingency - - - - - - - - - Overhead - 9,717 - (9,717) - - - - - Totals 540,958$ 90,871$ -$ 450,087$ 225,044$ 225,043$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 159 Project #17008 EPA Brownfield Assessment Grant Fiscal Year Project Began: 2017 Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation 571,190 89,274 - 481,916 240,958 240,958 - - - Design Services - - - - - - - - - Construction - - - - - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead 28,810 4,554 - 24,256 12,128 12,128 - - - Totals 600,000$ 93,828$ -$ 506,172$ 253,086$ 253,086$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Description: The scope of this project is to assess up to 18 Brownfield sites in order to take initial steps toward cleaning up and redeveloping vacant & underutilized properties 160 Fund 460-Borough Capital Projects: Project Budget as 07/01/2017 Life-to-Date Usage as of 06/30/18 CompletedFY 2018 Amendments Project Budget Remaining as of 06/30/2018 Revenues: Sale of Bonds 68,243,814 68,429,814 - (186,000) State Grant 7,538,000 7,788,000 - - Transfers In 4,261,195 4,261,195 - - Interest Earnings 436,000 24,110 - 411,890 Total Revenues 80,479,009$ 80,503,119$ -$ 225,890$ Projects: Project #10021 Kodiak High School Renovation and Renewal 80,479,009 79,159,328 - 1,319,681 Total Expenditures 80,479,009$ 79,159,328$ -$ 1,319,681$ CURRENT FUND ACTIVITY 161 FY2019 FY2020 FY2021 FY2022 FY2023 - - - - - - - 50,000 - - - - 50,000$ -$ -$ -$ -$ 1,319,681 - - - - 1,319,681$ -$ -$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 162 Project #10021 Kodiak High School Renovation and Renewal Fiscal Year Project Began: 2010 Project Description: This scope of this project is to construct a new portion of the Kodiak High School and renovate existing High School facilities. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 6,739,369 6,633,031 - 106,338 - - - - - Construction 66,757,750 67,815,858 - (1,058,108) - - - - - Equipment 2,000,000 1,798,530 - 201,470 - - - - - Other Services 2,002,733 1,875,577 - 127,156 1,055,109 - - - - Contingency 1,679,157 - - 1,679,157 - - - - - Overhead 1,300,000 1,036,332 - 263,668 264,572 - - - - Totals 80,479,009$ 79,159,328$ -$ 1,319,681$ 1,319,681$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY 163 This page is left intentionally blank 164 Fund 469-Borough Renewal & Replacement Capital Projects: Project Budget as 07/01/2017 Life-to-Date Usage as of 06/30/18 CompletedFY 2018 Amendments Project Budget Remaining as of 06/30/2018 Revenues: 11003 Chiniak Remove UST 414,169 414,169 - - 13006 Borough Building Rehab 1,931,702 1,931,702 - - 16001 Wilson Auditorium Fire Alarms Replacement 110,667 110,667 - - 18001 Electric Boiler for Kodiak Middle School 275,000 284,361 - - Total Revenues 2,731,538$ 2,740,899$ -$ -$ Projects: Project #11003 Chiniak Remove UST 414,169 386,247 - 27,922 Project #13006 Borough Building Rehab 1,931,702 23,520 - 1,908,182 Project #16001 Wilson Auditorium Fire Alarms Replacement 110,667 110,667 Y - 0 Project #18001 Electric Boiler for Kodiak Middle School 275,000 259,579 - 15,421 Total Expenditures 2,731,538$ 520,434$ -$ 1,936,104$ CURRENT FUND ACTIVITY 165 FY2019 FY2020 FY2021 FY2022 FY2023 - - - - - - - - - - - - - - - - - - - - -$ -$ -$ -$ -$ 27,922 - - - - - - 1,908,182 - - - - - - - 15,421 - - - - 27,922$ -$ 1,908,182$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 166 Project #11003 Chiniak Remove UST Fiscal Year Project Began: 2011 Project Description: This scope of this project is to remove the old underground storage tank (UST) at the Chiniak School. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 58,685 98,273 - (39,588) - - - - - Construction 289,872 230,354 - 59,518 27,922 - - - - Equipment 27,233 21,702 - 5,531 - - - - - Other Services - - - - - - - - - Contingency 15,225 - - 15,225 - - - - - Overhead 23,154 35,918 - (12,764) - - - - - Totals 414,169$ 386,247$ -$ 27,922$ 27,922$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project #13006 Borough Building Rehab Fiscal Year Project Began: 2014 Project Description: The scope of this project is to rehabilitate and renovate the Borough building. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - 23,182 - (23,182) - - - - - Construction 1,931,702 - - 1,931,702 - - 1,908,182 - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - 338 - (338) - - - - - Overhead - - - - - - - - - Totals 1,931,702$ 23,520$ -$ 1,908,182$ -$ -$ 1,908,182$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 167 Project #16001 Wilson Auditorium Fire Alarm Replacement Fiscal Year Project Began: 2016 Project Description: The scope of this project is to replace the fire alarms at the Gerald C. Wilson Auditorium. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - - - - - - - - - Construction 110,667 109,323 - 1,344 - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead - 1,344 - (1,344) - - - - - Totals 110,667$ 110,667$ -$ 0$ -$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project #18001 Electric Boiler for KMS Fiscal Year Project Began: 2018 Project Description: The scope of this project is to install an electric boiler at the Kodiak Middle School. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 23,000 16,443 - 6,557 - - - - - Construction 208,000 234,495 - (26,495) - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 25,000 - - 25,000 - - - - - Overhead 19,000 8,641 - 10,359 15,421 - - - - Totals 275,000$ 259,579$ -$ 15,421$ 15,421$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 168 Fund 470-Bonded Renewal & Replacement Capital Projects: Project Budget as 07/01/2017 Life-to-Date Usage as of 06/30/18 CompletedFY 2018 Amendments Project Budget Remaining as of 06/30/2018 Revenues: Bond Proceeds (2015 GO Bond Series) 10,230,000 7,211,167 - 3,018,833 #15010 Playground Replacements State Grant 50,000 50,000 - - Interest Earning - 73,672 - - Total Revenues 10,280,000$ 7,334,839$ -$ 3,018,833$ Projects: Project #15004 East Elementary School Renovation 1,592,841 1,079,161 - 513,681 Project #15007 KMS Fire Alarms, HVAC & Elevator Controls 2,035,193 1,499,045 Y - 536,148 Project #15008 Akhiok, Karluk & Ouzinkie Schools Flooring 403,489 405,382 Y - (1,893) Project #15009 Paving and UST Replacement 1,797,829 734,064 - 1,063,765 Project #15010 Playground Replacements 879,440 852,023 Y - 27,417 Project #15011 Main, Old Harbor & Port Lions UST Replacement 552,375 164,950 - 387,425 Project #17006 Main Elementary Elevated Walkway 347,500 301,644 Y - 45,856 Project #18101 KMS Boiler Replacement 397,633 11,249 - 386,384 Previously completed projects 2,273,700 Total Expenditures 10,280,000$ 2,983,588$ -$ 1,047,935$ CURRENT FUND ACTIVITY 169 FY2019 FY2020 FY2021 FY2022 FY2023 - - - - - - - - - - - -$ -$ -$ -$ -$ 513,681 - - - - 536,148 - - - - - - - - - 1,063,765 - - - - - - - - - 387,425 - - - - - - - - - 386,384 - - - - 1,049,829$ -$ -$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 170 Project #15004 East Elementary School Renovation Fiscal Year Project Began: 2016 Project Description: This scope of this project is to renovate East Elementary. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 116,549 93,547 - 23,002 23,002 - - - - Construction 1,294,993 932,564 - 362,429 362,429 - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 64,750 - - 64,750 64,750 - - - - Overhead 116,549 53,050 - 63,499 63,500 - - - - Totals 1,592,841$ 1,079,161$ -$ 513,681$ 513,681$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project #15007 KMS Fire Alarm, HVAC and Elevator Controls Fiscal Year Project Began: 2017 Project Description: The scope of this project is to replace the fire alarms, HVAC system and elevator controls at the Kodiak Middle School. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 164,129 148,856 - 15,273 15,273 - - - - Construction 1,641,285 1,295,267 - 346,018 346,018 - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 82,063 - - 82,063 82,063 - - - - Overhead 147,716 54,922 - 92,794 92,794 - - - - Totals 2,035,193$ 1,499,045$ -$ 536,148$ 536,148$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 171 Project #15008 Akhiok, Karluk, & Ouzinkie Flooring Replacement Fiscal Year Project Began: 2016 Project Description: The scope of this project is to replace the flooring at Akhiok, Karluk, and Ouzinkie's schools. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 23,374 22,691 - 684 - - - - - Construction 339,574 361,814 - (22,240) - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 15,979 - - 15,979 - - - - - Overhead 24,562 20,878 - 3,684 - - - - - Totals 403,489$ 405,382$ -$ (1,893)$ -$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project #15009 Paving and UST Replacement Fiscal Year Project Began: 2017 Project Description: The scope of this project is to replace the UST and pavement at the Kodiak Middle School and replace pavement at Peterson. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 117,890 112,658 - 5,232 5,232 - - - - Construction 1,473,630 590,773 - 882,857 882,857 - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 73,682 - - 73,682 73,682 - - - - Overhead 132,627 30,633 - 101,994 101,994 - - - - Totals 1,797,829$ 734,064$ -$ 1,063,765$ 1,063,765$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 172 Project #15010 Playground Replacements Fiscal Year Project Began: 2016 Project Description: The scope of this project is to replace playground equipment at 6 schools. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 15,376 15,376 - - - - - - - Construction 815,962 802,700 - 13,262 - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead 48,102 33,947 - 14,155 - - - - - Totals 879,440$ 852,023$ -$ 27,417$ -$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project #15011 Main, Old Harbor, & Port Lions UST Fiscal Year Project Began: 2017 Project Description: The scope of this project is to replace USTs at the Main, Old Harbor, & Port Lions schools. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 41,709 47,322 - (5,613) - - - - - Construction 447,952 97,957 - 349,995 349,995 - - - - Equipment - - - - - - - - - Other Services - - - - 16,785 - - - - Contingency 22,398 - - 22,398 - - - - - Overhead 40,316 19,672 - 20,644 20,645 - - - - Totals 552,375$ 164,950$ -$ 387,425$ 387,425$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 173 Project #17006 Main Elementary Elevated Walkway Fiscal Year Project Began: 2017 Project Description: The scope of this project is to repair the elevated walkway at the Main Elementary Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 27,800 25,156 - 2,644 - - - - - Construction 278,000 255,701 - 22,299 - - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 27,800 - - 27,800 - - - - - Overhead 13,900 20,788 - (6,888) - - - - - Totals 347,500$ 301,644$ -$ 45,856$ -$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project #18101 KMS Boiler Replacement Fiscal Year Project Began: 2018 Project Description: The scope of this project is to install a new boiler at the Kodiak Middle School. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 32,067 10,372 - 21,695 21,695 - - - - Construction 320,672 - - 320,672 320,672 - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 16,034 - - 16,034 16,034 - - - - Overhead 28,860 877 - 27,983 27,983 - - - - Totals 397,633$ 11,249$ -$ 386,384$ 386,384$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 174 Fund 490-Landfill Capital Projects: Project Budget as 07/01/2017 Life-to-Date Usage as of 06/30/18 CompletedFY 2018 Amendments Project Budget Remaining as of 06/30/2018 Revenues: ACWF Loan 505031 3,000,000 3,000,000 - - Revenue Bonds 3,650,000 3,650,000 - - State Lgeislative Grants 7,529,000 7,529,000 - - ACWF Loan 505041 14,463,548 12,675,537 - 1,788,011 ACWF Loan 505061 3,000,000 3,000,000 - - Transfers in from Fund 530 975,000 875,000 - 100,000 Interest Earnings 357,452 - - - Total Revenues 32,975,000$ 30,729,537$ -$ 1,888,011$ Projects: Project #07013 Landfill Lateral Expansion 32,000,000 28,334,244 - 3,665,756 Project #17001 Landfill Scale Shack 100,000 39,762 - 60,238 Project #17002 Landfill Baler Building Siding & Roof 875,000 140,361 - 734,639 Total Expenditures 32,975,000$ 28,514,368$ -$ -$ 4,460,632$ CURRENT FUND ACTIVITY 175 176 Project #07013 Landfill Lateral Expansion Fiscal Year Project Began: 2007 Project Description: This scope of this project is to expand the landfill. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House 200,000 167,578 - 32,422 32,422 - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 3,750,000 3,495,730 - 254,270 254,270 - - - - Construction 25,000,000 24,165,665 - 834,335 834,335 - - - - Equipment 75,000 1,240 - 73,760 73,760 - - - - Other Services 10,000 7,670 - 2,330 2,330 - - - - Contingency 2,215,000 - - 2,215,000 2,215,000 - - - - Overhead 750,000 496,362 - 253,638 253,639 - - - - Totals 32,000,000$ 28,334,244$ -$ 3,665,756$ 3,665,756$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project #17001 Landfill Scale Shack Fiscal Year Project Began: 2017 Project Description: The scope of this project is upgrade the scale shack at the landfill. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services - - - - - - - - - Construction 75,000 38,526 - 36,474 36,474 - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency - - - - - - - - - Overhead 25,000 1,236 - 23,764 23,764 - - - - Totals 100,000$ 39,762$ -$ 60,238$ 60,238$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 177 Project #17002 Baler Building Siding & Roof Fiscal Year Project Began: 2017 Project Description: The scope of this project is to replace the siding and roof of the baler building at the landfill. Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 67,800 67,646 - 154 154 - - - - Construction 687,000 44,620 - 642,380 642,380 - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 75,000 - - 75,000 75,000 - - - - Overhead 45,200 28,095 - 17,105 17,105 - - - - Totals 875,000$ 140,361$ -$ 734,639$ 734,639$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 178 Fund 495-Hospital and Long-Term Care Capital Projects: Project Budget as 07/01/2017 Life-to-Date Usage as of 06/30/18 CompletedFY 2018 Amendments Project Budget Remaining as of 06/30/2018 Revenues: Transfers in from Fund 540 726,000 726,000 - - Total Revenues 726,000$ 726,000$ -$ -$ Projects: Project #18002 PKIMC Roof 118,000 2,808 - 115,192 Project #18003 PKIMC Fire Suppression 608,000 1,134 - 606,866 Total Expenditures 726,000$ 3,942$ -$ 722,058$ CURRENT FUND ACTIVITY 179 FY2019 FY2020 FY2021 FY2022 FY2023 - - - - - -$ -$ -$ -$ -$ 115,192 - - - - 606,866 - - - - 722,058$ -$ -$ -$ -$ ESTIMATED FUTURE FUND ACTIVITY 180 Project #18002 PKIMC Roof Fiscal Year Project Began: 2018 Project Description: This scope of this project is to replace the roof of the hospital building Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 11,800 - - 11,800 11,800 - - - - Construction 89,680 - - 89,680 89,680 - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 5,900 - - 5,900 5,900 - - - - Overhead 10,620 2,808 - 7,812 7,812 - - - - Totals 118,000$ 2,808$ -$ 115,192$ 115,192$ -$ -$ -$ -$ CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project #18003 PKIMC Fire Suppression Fiscal Year Project Began: 2018 Project Description: The scope of this project is for the upgrade and replacement of the fire suppression and alarm system at the Providence Hospital Expenditure Category Estimated Total Project Budget Project Expenditures as of 6/30/18 FY2018 Additions Project Budget Remaining as of 6/30/18 FY2019 FY2020 FY2021 FY2022 FY2023 Administration -$ -$ -$ -$ -$ -$ -$ -$ -$ CM In House - - - - - - - - - Land - - - - - - - - - Site Investigation - - - - - - - - - Design Services 60,800 59 - 60,741 60,741 - - - - Construction 474,240 - - 474,240 474,240 - - - - Equipment - - - - - - - - - Other Services - - - - - - - - - Contingency 30,400 - - 30,400 30,400 - - - - Overhead 42,560 1,075 - 41,485 41,485 - - - - Totals 608,000$ 1,134$ -$ 606,866$ 606,866$ -$ -$ -$ -$ CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY 181 ENTERPRISE FUNDS Enterprise Funds Description Enterprise funds are a different type of fund than the General or Special Revenue Funds. They are similar to business type operations in that the costs of providing goods and services are recovered through user fees. Enterprise funds do not include special revenue, debt service or capital projects funds. Funds included in this section are: Municipal Solid Waste Collection and Disposal Hospital Facility Long-Term Care Facility Kodiak Fisheries Research Facility 911 Service 182 Municipal Solid Waste Collection and Disposal Hospital Facility Long-Term Care Center Kodiak Fisheries Research Center 911 Service Total Beginning Net Assets 4,839,452$ 24,066,095$ 1,812,552$ 11,800,759$ -$ 42,518,858$ Revenues Disposal Fees 4,023,753 - - - - 4,023,753 Rents and Royalties - 1,384,272 1,043,628 754,654 - 3,182,554 PERS on Behalf Payment 49,980 - - 8,290 - 58,270 Metal Recycling 10,300 - - - - 10,300 Customer Charges - - - - 250,000 250,000 Interest Earnings 24,000 68,414 32,300 61,155 - 185,869 Proceeds of Long Term Debt 27,211 - - - - 27,211 Use of Fund Balance - - - 891,694 - 891,694 Transfers in - - - 45,000 - 45,000 Total Revenues and Transfers In 4,135,244 1,452,686 1,075,928 1,760,793 250,000 8,674,651 Total Available Funds 8,974,696 25,518,781 2,888,480 13,561,552 250,000 51,193,509 Expenses Waste Disposal - - - - - Personnel Costs 1,448,890 40,319 - 254,064 1,500 1,744,773 Contracted Services 243,000 - - - 248,400 491,400 Dorm Facility - - - 57,553 - 57,553 Depreciation 296,570 1,062,092 518,933 696,476 - 2,574,071 Debt Service Interest 330,724 - 478,075 - - 808,799 Support Goods & Services 1,029,060 350,275 78,920 320,700 Other 787,000 - - 432,000 100 1,219,100 Total Use of Funds 4,135,244 1,452,686 1,075,928 1,760,793 250,000 6,895,696 Est. Net Assets 06/30/2019 4,839,452$ 24,066,095$ 1,812,552$ 11,800,759$ -$ 44,297,813$ ENTERPRISE FUNDS BUDGET SUMMARY 183 MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL FY2019 PROGRAM DESCRIPTION: The Kodiak Island Borough manages solid waste collection services with a private contractor and provides waste disposal and limited recycling services for the residents and commercial generators located on the Kodiak road system. Residents and commercial waste generators may also deliver solid waste such as garbage, household hazardous waste, construction debris, scrap metal, asbestos, and used oil to the landfill facility for disposal. The Engineering and Facilities Department is responsible for the administration, operation, and maintenance of the solid waste baling (baler) facility, landfill area, and the newly completed Leachate Treatment Plant. The landfill is operated in compliance with federal, state, and local regulations and guidelines. GOALS AND OBJECTIVES: To provide cost-effective, environmentally safe waste collection, disposal, and recycling services for Kodiak Island. -term contract for collection. ANALYSIS: Staff has recently completed the Municipal Solid Waste Permit Renewal with consultant, Jacobs, and it has been approved by the ADEC (Alaska Department of Environmental Conservation). This permit application is required every six years by Alaska statute. The annual survey for the rock cover material stock piles, remaining permitted landfill airspace, and slope monitoring is underway with an anticipated completion date of mid-July; the next slope monitoring event is not until 2019. This survey is required for audit, MSW (Municipal Solid Waste) permit, and associated closure/post closure requirements. This construction season will see the replacement of the roof, siding, and garage doors on the baler facility building. Staff will strive to minimize the effects on residents as well as commercial use of the landfill. Scheduled required shutdowns due to construction will be advertised well in advance to minimize impacts. The Leachate Treatment Plant has recently been plagued with calcium deposits on the filter membranes in the system. Staff, SUEZ (formerly General Electric Water/Wastewater), and Jacobs have been collaborating to identify the cause and solution for this event. Dramatic improvements have been seen in the amount of treated water passing through the associated systems. Staff and consultants are also working to reduce the ammonia discharge levels to consistently meet the discharge permit requirements. ADEC is aware of the concern and has been monitoring progress and cooperatively involved in the periodic permit exceedances. Staff has met with the borough’s Solid Waste Advisory Board and has discussed increased attention for public outreach and education. Staff has also been in contact with the ADEC regarding available curriculums that may be available for review to discuss potential implementation in the local schools and community groups. 184 MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL (CONT.) FY2019 Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Penalties/Interest on Tax 10,465$ 5,790$ 5,000$ 525$ 5,000$ Licenses & Permits - - - - - PERS on Behalf Payment 39,322 24,866 36,703 18,568 49,980 Disposal Fees 2,842,968 3,069,746 3,673,925 3,751,605 4,023,753 Interest Earnings 71,983 30,576 36,500 32,435 19,000 Miscellaneous 397,784 41,413 19,000 61,738 10,300 Transfers In - - - - - Premium on Bonds 27,211 27,211 - 27,211 27,211 Use of Fund Balance - - - - - Total Revenues 3,389,733$ 3,199,602$ 3,771,128$ 3,892,081$ 4,135,244$ SOLID WASTE DISPOSAL Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 591,915$ 541,878$ 799,968$ 551,078$ 542,797$ Employee Benefits 511,297 347,125 568,354 358,044 417,971 Contracted Services 140,084 227,279 124,000 183,611 158,000 Legal Fees 27,746 30,018 5,000 14,897 5,000 Contributions 34,885 35,880 40,000 36,383 40,000 Support Goods & Services 671,140 616,949 554,081 568,470 770,600 Capital Outlay - - - 7,000 - Debt Service Interest 191,064 334,469 105,975 123,205 115,475 Closure/Post Closure 2,030,954 154,010 35,000 331,000 730,000 Other - - - 206,822 - Depreciation 302,906 294,026 439,000 279,820 296,570 Sub-Total 4,501,991$ 2,581,634$ 2,671,378$ 2,660,330$ 3,076,413$ LEACHATE TREATMENT PLANT Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel Services 56,686$ 130,278$ 154,616$ 139,894$ 305,780$ Employee Benefits 39,895 93,816 74,744 100,636 182,342 Professional Services 27,751 46,549 40,000 101,309 80,000 Support Goods & Services 138,545 204,520 191,700 221,665 258,460 Capital Outlay - 620 10,000 10,756 17,000 Debt Service Interest - 59,900 91,765 223,171 215,249 Depreciation - - 536,925 - - Sub-Total 262,877$ 535,683$ 1,099,750$ 797,430$ 1,058,831$ Total Expenditures 4,764,868$ 3,117,317$ 3,771,128$ 3,457,761$ 4,135,244$ 185 MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL (CONT.) FY2019 SIGNIFICANT BUDGET CHANGES: The Baler Building R&R Project original approved budget is $750,000. Staff has requested an additional $125,000 to replace the front garage doors on the facility. Staff has requested $40,000 be transferred to begin the planning process for the removal of the existing underground fuel storage tank. This request will fund the project design and proposal package. This project will reduce the risk of contaminating the subsoils at the facility. A transfer of funds has been requested from the Enterprise Fund Balance account of $50,000 for the increased cost of treatment chemicals and required testing to correct the calcium deposit and high ammonia discharge issues. Solid Waste Disposal Positions FY2015 FY2016 FY2017 FY2018 FY2019 Budget Environmental Specialist 1 1 0 0 1 Baler/Landfill Supervisor 1 1 1 1 1 Baler Operator II 2 1 1 1 1 Baler Operator I 3 4 4 4 4 Landfill Attendant 0 0 0 0 1 Total Number of Employees 7 7 6 6 8 Leachate Treatment Plant Positions FY2015 FY2016 FY2017 FY2018 FY2019 Budget Treatment Plant Operator Lead 0 1 1 1 1 Treatment Plant Operator 0 0 0 0 0 Treatment Plant Operator Trainee 0 0 1 1 1 Total Number of Employees 0 1 2 2 2 Personnel 186 HOSPITAL FUND FY2019 PROGRAM DESCRIPTION: The Hospital Facilities Fund collects lease revenues and other resources to be used for care and maintenance of current hospital facilities. On April 22, 1997, the Kodiak Island Borough leased the Kodiak Island Hospital to Providence Health and Services of Alaska. The hospital is now known as the Providence Kodiak Island Medical Center. In FY2017, the original 20-year lease ended and a new lease was negotiated. The new lease began July 1, 2017. GOALS AND OBJECTIVES: To continue a healthy partnership between the Borough and Providence Health and Services of Alaska for the benefit of the community. ANALYSIS: As an enterprise fund (a business type fund), the lease annual revenue should match or exceed annual expenditures. Planned exceptions to this would be the use of fund balance for capital projects. SIGNIFICANT BUDGET CHANGES: The final disbursement of a charitable trust contribution was received in FY2017, With a new lease in place, capital improvement projects will begin. These projects will be funded through operating transfers from the enterprise fund the Capital Project Fund 495. 187 HOSPITAL FUND (CONT.) FY2019 Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Interest Earnings 147,986$ 136,829$ 129,000$ 23,850$ 68,414$ LTC Lease 1,239,827 - - - - Providence Lease 720,000 660,000 1,384,272 1,384,272 1,384,272 Other - - - - - Use of Fund Balance - - 554,362 - - Operating Transfers In 66,500 1,089,372 - - - Premium on Bonds 113,821 - - - - Total Revenues 2,288,134$ 1,886,201$ 2,067,634$ 1,408,122$ 1,452,686$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Employee Salaries 30,000$ 34,000$ 34,000$ 34,000$ 40,319$ Employee Benefits - - - Support Goods & Services 49 368 871,016 22,818 350,275 Contracted Services 8,436 - - - Depreciation 842,644 1,121,711 1,162,618 1,085,223 1,062,092 Debt Service Interest 782,943 - - - - Other - - - 277,007 Operating Transfers - - - 726,000 - Contributions 108,000 108,000 - - - Total Expenditures 1,763,636$ 1,272,515$ 2,067,634$ 2,145,048$ 1,452,686$ Personnel FY2015 Actual FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Budgeted Total Number of Employees - - - - - Personnel There is no personnel for this fund. 188 LONG-TERM CENTER CARE FUND FY2019 PROGRAM DESCRIPTION: In FY2013, the Borough constructed a 22-bed long-term care facility. This long-term care center is currently under lease to Providence Health and Services of Alaska. Until GOALS AND OBJECTIVES: To continue a healthy partnership between the Borough and Providence Health and Services of Alaska for the benefit of the community. ANALYSIS: As an enterprise fund (a business type fund), the lease annual revenue should match or exceed annual expenditures. This lease revenue for this fund is based, in part, on repayment of the revenue bond used to construct the facility and the cost of insurance. Therefore, there will be some fluctuation in revenues. SIGNIFICANT BUDGET CHANGES: There are no significant budget changes. 189 LONG-TERM CENTER CARE FUND, CONT. FY2019 Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Interest Earnings -$ 75$ -$ 2,754$ 32,300$ LTC Lease - 1,119,929 1,143,322 1,093,475 1,043,628 Providence Lease - - - - - Other - 16,623 - - - Use of Fund Balance - - - - - Operating Transfers In - - - - - Premium on Bonds - 57,804 - - - Total Revenues -$ 1,194,431$ 1,143,322$ 1,096,229$ 1,075,928$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Employee Salaries -$ -$ -$ -$ -$ Employee Benefits - - - - - Legal Fees - 112 - - - Support Goods & Services - 43,536 457,334 16,042 78,920 Contracted Services - - - - - Depreciation - 518,933 - 518,933 518,933 Debt Service Interest - 611,781 685,988 530,863 478,075 Operating Transfers - 54,590 - - - Contributions - 11,500 - - - Total Expenditures -$ 1,240,452$ 1,143,322$ 1,065,838$ 1,075,928$ Personnel FY2015 Actual FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Budgeted Total Number of Employees - - - - - Personnel There is no personnel for this fund. 190 KODIAK FISHERIES RESEARCH CENTER FY2019 PROGRAM DESCRIPTION: The Kodiak Island Borough is the owner/landlord of this state-of-the-art fisheries research center. This facility is managed, operated, and maintained by the Engineering and Facilities Department of the Borough. The Kodiak Fisheries Research Center (KFRC) houses a multi-agency research team committed to the preservation, enhancement, and management of the North Pacific and Arctic Marine ecosystems. In addition, the KFRC contains a public interpretive center that provides an educational and interactive overview of marine life through graphic display panels, interactive computer programs and videos, a topographic map of Kodiak Island, a touch tank with live tide pool creatures, and a 10-foot diameter aquarium featuring local marine finfish, shellfish, and other marine organisms. Many school children, cruise ship passengers, and tourists have visited the facility. The main source of revenue from this facility is in the form of lease payments. The major tenants of the facility are the National Oceanic and Atmospheric Administration (NOAA) and its subsidiary, National Marine Fisheries Service (NMFS), State of Alaska’s Department of Fish and Game, and Kodiak Regional Aquaculture Association. GOALS AND OBJECTIVES: To provide a world-class research center for use by various tenants and for community enjoyment. -lasting landlord partnership with the tenants of KFRC. ANALYSIS: Recent upgrades to the Direct Digital Controls (DDC) for the HVAC system at the facility have been completed. Significant improvements have been verified regarding the reaction time of the system and the improved notification of critical alarms for the facility. Staff anticipates the replacement of the raw seawater pumps to be completed this summer. The next large project anticipated for this facility is the upgrade or replacement of the fire alarm system software and required hardware due to the age of the system and original hardware. Staff anticipates the sprinkler system piping in the seawater intake structure will require replacement this year due to visible corrosion and age. Estimates will be prepared and a proposal package will be developed for this work. SIGNIFICANT BUDGET CHANGES: No significant budget changes are projected at this time. Kodiak Fisheries Research Center Positions FY2015 FY2016 FY2017 FY2018 FY2019 Budget Interpretive Specialist/Receptionist 0.5 0.5 0.5 0.5 0.5 Maintenance Engineer 1 1 1 1 1 Total Number of Employees 1.5 1.5 1.5 1.5 1.5 Personnel 191 KODIAK FISHERIES RESEARCH CENTER (CONT.) FY2019 Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget PERS on Behalf Payment 13,788$ 6,912$ 6,392$ 4,859$ 8,290$ Interest Earnings 32,212 69,506 93,214 66,047 61,155 Rents & Royalties 3,353,718 847,642 903,815 826,282 754,654 Miscellaneous - Classified - - - 365 - Operating Transfers In - 64,180 45,000 45,000 45,000 Use of Fund Balance - - 575,399 - 891,694 Total Revenues 3,399,718$ 988,240$ 1,623,820$ 942,552$ 1,760,793$ RESEARCH FACILITY Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel 211,220$ 185,943$ 178,226$ 184,973$ 154,206$ Employee Benefits 179,491 187,479 107,912 108,393 99,858 Support Goods & Services 7,163 11,528 167,500 10,352 320,700 Capital Outlay - - 6,000 - - Depreciation 641,669 702,501 667,071 699,011 696,476 Debt Service - Interest 148,663 - - - - Janitorial 51,990 53,395 61,500 60,784 60,500 Heating 54,179 76,003 90,000 77,905 90,000 Electrical 139,799 142,640 146,000 132,639 146,000 Plumbing 45,018 46,972 52,000 57,594 60,500 Air Conditioning 143 42 2,000 981 1,500 Elevators 2,680 1,800 2,500 2,250 2,500 Miscellaneous 36,873 49,677 50,700 33,619 56,000 Bldg Repair/Maint 770 7,868 40,000 21,050 15,000 Other - - - - - Sub-Total 1,519,659$ 1,465,849$ 1,571,409$ 1,389,551$ 1,703,240$ DORM FACILITY Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Personnel 4,598$ 7,638$ 7,578$ 5,433$ 8,484$ Employee Benefits 2,759 4,977 4,083 3,615 6,369 Support Goods & Services - - - - - Janitorial 1,460 2,355 2,500 660 2,500 Heating 6,607 8,103 11,500 9,705 11,500 Electrical 4,380 22,530 5,800 4,219 5,800 Plumbing 5,389 12,705 11,500 6,506 12,000 Air Conditioning - - - - - Elevators - - - - - Miscellaneous 7,149 7,532 8,450 9,305 9,900 Bldg Repair/Maint 410 323 1,000 839 1,000 Sub-Total 32,753$ 66,162$ 52,411$ 40,280$ 57,553$ Total Expenditures 1,552,412$ 1,532,011$ 1,623,820$ 1,429,831$ 1,760,793$ 192 911 SERVICE FY2019 PROGRAM DESCRIPTION: This program is funded solely by a levy on individual phone lines in the area served. Although the Borough collects the revenue, this money is passed through to the City of Kodiak since they administer the operations of the service. The program provides for maintenance of an enhanced emergency response call-in system. The system hardware (located in the City of Kodiak dispatch center) displays owner and address information from the phone number calling 911. This system ensures appropriate and timely response to anyone calling, even when they are incapable of conversing with the dispatcher. The Borough’s Community Development Department is responsible for maintenance of the mapping and addressing that supports the 911 system. GOALS AND OBJECTIVES: To continue a healthy partnership between the Borough and City of Kodiak for the benefit of the community’s 911 service. ANALYSIS: None. SIGNIFICANT BUDGET CHANGES: With the rate change in FY2018 from $0.75 per land line to $2.00 for any phone service line (including cellular phone lines), the annual revenues increase by than $200,000. Revenues FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Interest Earnings -$ -$ -$ -$ -$ Customer Charges 30,417 28,409 240,000 255,617 250,000 Total Revenues 30,417$ 28,409$ 240,000$ 255,617$ 250,000$ Expenditures FY2016 Actual FY2017 Actual FY2018 Budget FY2018 Actual FY2019 Budget Allocated Salaries 1,500$ 1,500$ 1,500$ 1,500$ 1,500$ Contracted Services 28,818 26,856 238,400 253,983 248,400 Support Goods & Services 99 53 100 133 100 Total Expenditures 30,417$ 28,409$ 240,000$ 255,617$ 250,000$ Personnel FY2015 Actual FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Budgeted Total Number of Employees - - - - - Personnel There is no personnel for this fund. ACRONYMS 193 TERM STANDS FOR ADA Americans with Disabilities Act ADEC Alaska Department of Environmental Conservation ADEED Alaska Department of Education & Early Development AHFC Alaska Housing Finance Corporation AICPAS American Institute of Certified Public Accountants. A member organization representing the accounting profession. They set ethical standards, auditing standards and develop the CPA exam. AML Alaska Municipal League AS Alaska Statute BLM Bureau of Land Management. A federal department responsible for managing most vacant federally-owned land. BVFD Bayside Volunteer Fire Department CAFR Comprehensive Annual Financial Report CDD Community Development Department CIP Capital Improvement Program CPI Consumer Product Index DDC Direct Digital Control DOR Alaska Department of Revenue DHS & EM Alaska Department of Homeland Security & Emergency Management EMS Emergency Medical Services EMT Emergency Medical Technician EPA Environmental Protection Agency FWS Fish and Wildlife Service FY Fiscal Year GAAP Generally accepted accounting principles GASB Governmental Accounting Standards Board GFOA Government Finance Officers Association GIS Geographic Information System GPM Gallons per minute HVAC Heating, Ventilation and Air Conditioning TERM STANDS FOR ICS Incident Command System IMT Incident Management Team ISO Insurance Service Office IT Information Technology KFRC Kodiak Fisheries Research Center KIB Kodiak Island Borough KIBC Kodiak Island Borough Code KIBSD Kodiak Island Borough School District LEPC Local Emergency Planning Committee NFPA National Fire Protection Association NMFS National Marine Fisheries Service, a subsidiary of NOAA NOAA National Oceanic and Atmospheric Administration OSHA Occupational Safety and Health Administration PC Personal computer PERS Public Employees’ Retirement System PILT Payment In Lieu of Tax P&Z Planning and Zoning Commission RFP Request for Proposal RSA Road Service Area R&R Renewal and Replacement SARA Title III Title III of the Superfund Amendments and Reauthorization Act; commonly known as the Emergency Planning & Community Right-to- know Act SAWS Siren Alert Warning System SCBA Self-contained Breathing Apparatus SWAMC Southwest Alaska Municipal Conference SWAB Solid Waste Advisory Board TCA Tax Code Area USCG United States Coast Guard WBFD Womens’ Bay Fire Department GLOSSARY 194 ACCRUAL BASIS: The basis of accounting under which the financial effects of a transaction and other events and circumstances that have cash consequences for the governmental entity are recorded in the period of which those transactions, events and circumstances occur, rather than only in the periods in which cash is received or paid by the entity. ADOPTED BUDGET: Refers to the budget amounts as originally approved by the Kodiak Island Borough Assembly at the beginning of the year, and to the budget document which consolidates all beginning-of-the-year operating appropriations and new capital project appropriations. ANNUAL BUDGET: A budget developed and enacted to apply to a single fiscal year. APPROPRIATION: The legal authorization granted to the legislative body of a government that permits officials to incur obligations and make expenditures of governmental resources for specific purposes. Appropriations are usually limited in amounts and time that they may be expended. ASSEMBLY: The governing body of the Kodiak Island Borough. Seven members and one mayor are elected at large by the voters of the Kodiak Island Borough. ASSESSED VALUATION: The valuation set upon all real and personal property in the Borough that is used as a basis for levying taxes. Tax-exempt property is excluded from the assessable base. ASSESSED VALUE: The fair market value placed upon personal and real property owned by taxpayers. State law requires all taxable property to be assessed annually at 100% of market value. AT LARGE: An elected official who is elected to serve an entire area rather than one area or subdivision. AUDIT: A systematic collection of the sufficient, competent evidential matter to attest to the fairness of management’s assertions in the financial statements or to evaluate whether management has efficiently carried out its responsibilities. The auditor obtains this evidential matter through inspections, observations, inquiries, and confirmations with third parties. BALANCED BUDGET: A budget in which planned funds available equal planned expenditures. BASIS OF ACCOUNTING: The term referring to when revenues, expenditures, expenses, and transfers (and the related assets and liabilities) are recognized in the accounts and reported in the financial statements. Specifically, it relates to the timing of the measurements made, regardless of the nature of the measurement, on either cash or accrual method. BOARD OF EQUALIZATION: An official board of the Kodiak Island Borough that holds annual hearings for the purpose of settling disputes regarding the assessed value of property within the Borough. BOND: A written promise to pay a specified sum of money, called the face value or principal amount, at a specified date in the future, called the maturity date, together with periodic interest at a specified date. BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for a given period of time and the purposed means of financing them. Since the term budget designates the financial plan presented to the appropriating governing body for adoption, and sometimes, the plan finally approved by that body. BUDGET DOCUMENT: The official written statement prepared by the Borough’s administrative staff to present a comprehensive financial program to the Borough Assembly. The first part provides overview information, together with a message from the budget-making authority, and a summary of the proposed expenditures and the means of financing them. The second consists of schedules supporting the summary. These schedules show in detail the past year’s actual revenues, expenditures, and other data used in making the GLOSSARY 195 estimates. The third part is composed of personnel and salary schedules, the chart of accounts and a glossary. BUDGET MESSAGE: A general discussion of the proposed budget presented in writing by the budget-making authority to the Borough Assembly. A budget message contains an explanation of the principal budget items, an outline of the Borough’s experience during the past period and its financial status at the time of the message, and recommendations regarding the financial policy for the coming period. CAPITAL OUTLAY: Expenditures that result in the accumulation of items such as tools, desks, machinery, and vehicles costing more than $5,000, each having a useful life of more than one year, and that are not consumed through use are defined as capital items. CAPITAL PROJECTS FUND: Funds established to account for financial resources to be used for the acquisition or construction of major capital facilities (other than proprietary and trust funds). COMPONENT UNIT: A separate government unit, agency, or non-profit corporation that is combined with other component units to constitute the reporting entity in conformity with GAAP. COMPREHENSIVE ANNUAL FINANCIAL REPORT: The official annual report of a government including: (a) the five combined financial statements in the combined statement overview and their related notes; (b) combining statements by fund type and individual fund; and (c) account group financial statements prepared in conformity with GAAP and organized into a financial report pyramid. It also includes support schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, required supplementary information, extensive introductory material and detailed statistical sections. CONTINGENCY: Those funds included in the budget for the purpose of providing a means to cover minor unexpected costs during the budget year. CONTRACTUAL SERVICES: Items of expenditure from services that the Borough receives primarily from an outside company. DEBIT SERVICE FUNDS: Funds established to account for the accumulation of resources for and the payment of general long-term debt principal and interest that resulted from the issuance of bonds. DEFICIT: The excess of expenditures over revenues during an accounting period, or in the case of proprietary funds, the excess of expenses over revenues during an accounting period. DEPRECIATION: This occurs when the cost of an asset is spread over its useful life. ELECTORATE: All residents who are eligible to vote in an election. ENCUMBRANCES: Commitments related to unperformed contracts, in the form of purchase orders or contracts, for goods or services. Used in budgeting, encumbrances are not expenditures or liabilities, but represent the estimated amount of expenditures that will result if unperformed contracts in process are completed. ENTERPRISE FUND: A propriety fund established to account for operations that are financed and operated in a manner similar to a private business enterprise. In this case, the intent of the governing body is that the expenses, including depreciation, of providing goods and services to the general public on a continuing basis will be financed or recovered primarily through user charges. EXPENDITURE: A decrease in net financial resources. Expenditures include current operating expenses requiring the present or future use of net current assets, debt service and capital outlays, intergovernmental grants, entitlements and shared revenues. GLOSSARY 196 EXPENSE: An outflow or other consumption of assets or incurrence of liabilities (or a combination of both) from delivering or producing goods, rendering services, or carrying out other government units, and/or other funds. FISCAL YEAR: The twelve-month accounting period to which the annual operating budget applies and at the end of which a government determines the financial position and results of its operations. The Borough’s fiscal year extends from July 1 to the following June 30. FUND: A fiscal and accounting entity with a self-balancing set of accounts in which cash and/or other financial resources, all related liabilities, and residual equities or balances and changes therein are recorded and segregated to carry on specific activities or attain certain objectives in accordance with special regulations, restrictions, or limitations. FUND BALANCE: The difference between the total assets available for appropriation and the total count of current liabilities of the fund. FUND TYPE: The three broad fund categories of governmental accounting are subdivided into seven fund types. The seven types are: General, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal Service, and Trust and Agency. GENERAL FUND: A type of governmental fund used to account for regular day-to-day Borough operations revenue and expenditures, including transactions which are not accounted for in specific purpose (special revenue) funds. GENERAL OBLIGATION BONDS: Debts that are backed by the full faith and credit of a government agency. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES: Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP encompasses the conventions, rules and procedures necessary to define accepted accounting practice at a particular time. They include not only broad guidelines of general applications, but also detailed practices and procedures. GAAP provides a standard for measuring financial presentations. GOAL: The overall purpose(s) or reason(s) for a department or fund to exist which is tied to the Borough’s Strategic Plan. GOVERNMENT FINANCE OFFICERS ASSOCIATION: A professional association of state, provincial and local government finance officers. GOVERNMENT FUND TYPES: Funds used to account for the acquisition, use, and balances of expendable financial resources and the related current liabilities, except those accounted for in the proprietary funds and fiduciary funds. GOVERNMENTAL ACCOUNTING STANDARDS BOARD: The authoritative accounting and financial reporting standard-setting body for state and local governments. IN-KIND SERVICES: These are services that the Borough pays directly on behalf of the school district, these are services such as audit expenses and insurance. INTERFUND TRANSFERS: These are amounts transferred from one fund to another, including reimbursements, residual equity transfers and operating transfers. INTERGOVERNMENTAL REVENUE: Revenues from other governments; usually in the forms of grants, entitlements, shared revenues or payments in lieu of taxes. GLOSSARY 197 INVESTMENT: Securities held for the production of income in the form of interest, in compliance with the policies set out by Borough Code. LAPSE: As applied to appropriations, the automatic termination of an appropriation. Except for indeterminate appropriations and continuing appropriations, an appropriation is made for a specific period of time. When this time is reached, the appropriation will ‘lapse.’ LEVY: To impose taxes, special assessments, or service charges for the support of government activities. It is also used to denote the total amount of taxes, special assessments, or service charges imposed by a government. LIABILITY: Debt or other legal obligation arising from the present obligation of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. MAJOR FUND: Any fund where the assets, revenues or expenditures are at least 10 percent of the total of the overall fund type; and its assets, revenues or expenditures is at least five percent of the overall total of the government’s assets, revenues or expenditures; or is of major public interest. Major funds meeting these requirements are reported as a separate column in the basic financial statements of the comprehensive annual financial report (CAFR). MEASUREMENT FOCUS: This accounting convention determines (1) which assets and which liabilities are included on a government’s balance sheet and where they are reported, and (2) whether an operating statement presents information on the flow of financial resources (revenues and expenditures) or information on the flow of economic resources (revenues and expenses). MILL: The measure of the rate of property taxation, representing one one-thousandth (0.001) of a dollar of assessed value. MILLAGE RATE: The tax rate on property, based on mill(s). A rate of 1 mill applied to a taxable value of $100,000 would yield $100 in taxes. MODIFIED ACCRUAL BASIS OF ACCOUTING: A basis of accounting in which revenues and other financial resources are recognized when they become susceptible to accrual, that is, when they are both measurable and available to finance expenditures of the current period. “Available” means collectable in the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recognized when the fund liability is incurred, except for (1) inventories of materials and supplies that may be considered expenditures either when purchased or when uses, and (2) prepaid insurance and similar items that may be considered expenditures either when paid for or when consumed. All government funds, except trust funds, and agency funds are accounted for using the modified accrual basis of accounting. NON-MAJOR FUND: Any fund that does not meet the requirements for a major fund. Non-major funds are consolidated into a single column in the basic financial statements of the comprehensive annual financial report (CAFR). OBJECTIVE: An objective is a specific way or action in which a department or fund will accomplish a specific goal. OBSOLETE: A piece of equipment or a system that is out of date, of an outmoded type or model in need of replacement. OPERATING BUDGET: Plans of current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing, acquisition, spending and service delivery activities of a government are controlled. The law usually requires the use of an annual operating GLOSSARY 198 budget. Annual operating budgets are essential to sound financial management and should be adopted by every government. OPERATING TRANSFERS: All inter-fund transfers other than residual equity transfers. ORDINANCE: A formal legislative enactment by the legislative body which, if not in conflict with any highest form of law, has the full force and effect of law within the boundaries of the municipality to which it applies. The difference between an ordinance and a resolution is that the latter requires less legal formality and has a lower legal status. Revenue-raising measures, such as the imposition of taxes, special assessments and services charges usually require ordinances. OTHER FINANCING SOURCES: Government funds, general long-term debt proceeds, land lease payments, land sale payments, proceeds from the sale of fixed assets, operating transfers in, service charges and fees for government services. OVERSIGHT RESPONSIBILITY: The basic, but not the only, criterion for including a government department, agency, institution, commission, public authority, or other organization in a government unit’s reporting entity for general purpose financial reports. Oversight responsibility is derived from the government unit’s power and includes, but is not limited to, financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations and accountability for fiscal matters. PERFORMANCE INDICATOR: A measurable standard in which a department or fund can show that an objective is being accomplished. PROGRAM: An organized set of related work activities that are directed toward a common purpose or goal and represent a well-defined expenditure of Borough resources. PROGRAM BUDGET: A budget which structures budget choices and information in terms of programs and their related activities (e.g., repairing roads, treating water, etc.), provides information on what each program is committed to accomplish in the long term (goals) and in the short term (objectives) and measures the degree of achievement of program objectives (performance measures). PROGRAM DESCRIPTION: A program description describes the function of the program, the various activities involved in the program, and other pertinent information about the program. It answers the question “What does this program do?” PROGRAM GOAL: A program goal is a general statement on the intended effect or purpose of the program’s activities. It includes terms such as “provide” (a service), “supply” (a given need), “control, reduce or eliminate” (an occurrence), “maintain” (standards), or “maximize” (quality). A goal is not limited to a one- year time frame and should generally not change from year to year. A goal statement describes the essential reason(s) for the program’s existence. PROGRAM OBJECTIVE: Objectives are statements of the intended beneficial and/or tangible effects of a program’s activities. They are measurable and related to the proposed budget year. They are specified targets toward which a manager can plan, schedule work activities, and make staff assignments. Objectives should be quantifiably be addressed in terms such as “increase” (an activity), “maintain” (a service level), “reduce” (the incidence), or to “eliminate” (a problem). PROPERTY TAX: A tax levied based on the assessed value of a property. GLOSSARY 199 PROPRIETARY FUND: A type of fund that accounts for government operations that are financed and operated in a manner similar to private business enterprises. The only proprietary funds used by the Borough are the Enterprise Funds. PURCHASE ORDER: A document authorizing the delivery of specified merchandise or the rendering of certain services for a stated, estimated price. Outstanding (unfulfilled) purchase orders are called encumbrances. REGULAR MEETING: A meeting occurring on the second and third Thursday of each month in which Assembly action is taken, comments are on record and other official business is conducted. REQUEST FOR PROPOSAL: A written request asking vendors to submit bids with specifications and pricing that fits the scope of the request. This can be done for products or services. RESOLUTION: A special or temporary order of a legislative body; an order of a legislative body requiring less legal formality than an ordinance or statute. Resolutions have a lower legal status than an ordinance or statute. RETAINED EARNINGS: An equity account reflecting the accumulated earnings of an enterprise or internal service fund. REVENUE: Increases in the net current assets of a governmental type other than expenditure refunds and residual equity transfers; increases in the net total assets of a proprietary fund type other than expense refunds, capital contributions, and residual equity transfers. General long-term debt proceeds and operating transfers-in are classified as “other financing sources” rather than revenues. Operating transfers, as in governmental fund types, are classified separately from revenues. SEVERANCE TAX: A tax on the removal of natural resources from the Kodiak Island Borough. Major resources include fish, timber and gravel. The severance tax rate is the same as the mill rate. SPECIAL ASSESSMENTS: Fees levied on property owners to construct an asset that benefits the property holder. These assessments are levied until the asset is paid for. The amount of the assessment can be based on value, size, road frontage, etc. SPECIAL REVENUE FUND: A fund used to account for the proceeds of specific revenue sources (other than expendable trust or major capital projects) that are legally restricted to expenditure for specific purposes. TAX RATE: The level at which taxes are levied. For example, a property tax rate may be proposed to be $0.575 per $100 of assessed value or 5.75%. TAX LEVY: The total dollar amount of tax that optimally should be collected based on tax rates and assessed values of personal and real properties. WORK SESSION: An unofficial meeting of the Borough Assembly in which discussions take place, questions are posed for staff to answer and review of upcoming regular meeting packet material is conducted. 200 Map of location of KIB Assembly Work Sessions, KIBSD Conference Room