CAFR FY2019
KODIAK ISLAND BOROUGH
Comprehensive Annual Financial Report
Year Ended June 30, 2019
KODIAK ISLAND BOROUGH
Comprehensive Annual Financial Report
Year Ended June 30, 2019
Official Issuing Report
Dora Cross
Finance Director
KODIAK ISLAND BOROUGH
TABLE OF CONTENTS
June 30, 2019
Page
INTRODUCTORY SECTION:
Letter of Transmittal 1-4
GFOA Certificate of Achievement 5
Organizational Chart 6
Elected Officials (Photographs) 7
Borough Officials 8
Map of Kodiak Island Borough 9
FINANCIAL SECTION:
Independent Auditor’s Report 10-12
Management’s Discussion and Analysis 13-27
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 28
Statement of Activities 29
Fund Financial Statements:
Balance Sheet – Governmental Funds 30
Reconciliation of Net Position Between the Government-Wide and the Fund Financial
Statements 31
Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficit) –
Governmental Funds 32
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances (Deficit) of Governmental Funds to the Statement of Activities 33
Statement of Net Position – Proprietary Funds – Business-Type Activities – Enterprise
Funds 34
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds –
Business-Type Activities – Enterprise Funds 35
Statement of Cash Flows – Proprietary Funds – Business-Type Activities – Enterprise
Funds 36
Notes to Basic Financial Statements 37-83
Required Supplementary Information:
Budgetary Comparison Schedule – General Fund 84-85
Budgetary Comparison Schedule – Special Revenue Fund – Education Support 86
Budgetary Comparison Schedule – Special Revenue Fund – Facilities 87
Notes to Required Supplementary Information – Budgetary Comparison Schedules 88
Schedule of Borough’s Proportionate Share of the Net Pension Liability –
Public Employees’ Retirement System 89
Schedule of Borough’s Proportionate Share of the Net OPEB Liability –
Public Employees’ Retirement System 90
Schedule of Borough’s Contributions (Pensions) –
Public Employees’ Retirement System 91
Schedule of Borough’s Contributions (OPEB) –
Public Employees’ Retirement System 92
KODIAK ISLAND BOROUGH
TABLE OF CONTENTS, CONTINUED
Page
Additional Supplementary Information:
Budgetary Comparison Schedule – Debt Service Fund – Education 93
Nonmajor Governmental Funds:
Combining Balance Sheet 94
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 95
Nonmajor Special Revenue Funds:
Combining Balance Sheet 96-97
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 98-99
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and
Actual:
Fire and Road Service Areas:
Fire:
Fire Protection Area No. 1 100
Womens Bay Fire Department 101
Kodiak Airport Fire District 102
Road:
Monashka Bay Road Service Area 103
Service Area No. 1 104
Womens Bay Road Service Area 105
Bay View Road Service Area 106
Service Area No. 2 107
L.E.P.C. 108
Land Sales 109
Buildings and Grounds 110
Woodland Acres Street Light Service Area 111
Trinity Islands Street Light Service Area 112
Tourism Development 113
Commercial Passenger Vessel 114
Mission Lake Tide Gate 115
Nonmajor Capital Project Funds:
Combining Balance Sheet 116
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit) 117
Enterprise Funds:
Schedule of Revenues, Expenses, and Changes in Net Position – Budget
and Actual:
Municipal Solid Waste Collection and Disposal 118
Hospital Facilities 119
Long Term Care Center 120
Kodiak Fisheries Research Center 121
911 Service Fund 122
(continued)
KODIAK ISLAND BOROUGH
TABLE OF CONTENTS, CONTINUED
Supplementary Bond Schedules:
Summary of Bonded Debt Service Requirements to Maturity 123
General Obligation Bond, 2011 Series One – Retirement Schedule 124
General Obligation Bond, 2012 Series A – Retirement Schedule 125
General Obligation Bond, 2012 Series B – Retirement Schedule 126
General Obligation Bond, 2013 Series One – Retirement Schedule 127
General Obligation Bond, 2014 Series One – Retirement Schedule 128
General Obligation Bond, 2015 Series Three – Retirement Schedule 129
General Obligation Bond, 2015 Series Three – Retirement Schedule 130
General Obligation Bond, 2016 Series One – Retirement Schedule 131
General Obligation Bond, 2016 Series One – Retirement Schedule 132
General Obligation Bond, 2016 Series Three – Retirement Schedule 133
STATISTICAL SECTION:
Statistical Section Index
Net Position by Component – Last Ten Fiscal Years 134
Changes in Net Position – Last Ten Fiscal Years 135
Fund Balances of Governmental Funds – Last Eight Fiscal Years 136
Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 137
General Revenues by Source – Last Ten Fiscal Years 138
Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 139
Direct and Overlapping Property Tax Rates and Contributions to the School District –
Last Ten Fiscal Years 140
Property Tax Levies and Collections – Last Ten Fiscal Years 141
Principal Property Tax Payers – Current Year and Ten Years Ago 142
Ratios of Net Bonded Debt– Last Ten Fiscal Years 143
Computation of Direct Debt 144
Legal Debt Margin Information – Last Ten Fiscal Years 145
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General
Governmental Expenditures and Transfers – Last Ten Fiscal Years 146
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 147
Demographic and Economic Statistics – Last Ten Fiscal Years 148
Average Monthly Employment & Earnings – Last Ten Fiscal Years 149
Miscellaneous Statistical Data – Last Ten Fiscal Years 150
Property Value, Construction and Bank Deposits – Last Ten Fiscal Years 151
Full-Time Equivalent Borough Employees by Function/Program – Last Ten Fiscal Years 152
Operating Indicators by Function – Last Ten Fiscal Years 153
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 154
INTRODUCTORY SECTION
1
Kodiak Island Borough
Finance Department
710 Mill Bay Road Kodiak, Alaska 99615
December 26, 2019
Members of the Assembly
Kodiak Island Borough, Alaska
State of Alaska statutes and local charter provisions require that all general-purpose local
governments publish a complete set of financial statements presented in conformity with generally
accepted accounting principles in the United States of America (GAAP) and audited in accordance
with auditing standards generally accepted in the United States of America by a firm of licensed
certified public accountants. Pursuant to that requirement, we hereby issue the comprehensive annual
financial report of the Kodiak Island Borough (Borough) for the fiscal year ended June 30, 2019.
This report consists of management’s representations concerning the finances of the Borough.
Consequently, management assumes full responsibility for the completeness and reliability of all
information presented in this report. To provide a reasonable basis for making these representations,
management of the Borough has established a comprehensive internal control framework that is
designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient
reliable information for the preparation of the Borough’s financial statements in conformity with
GAAP. Because the cost of internal controls should not outweigh their benefits, the Borough’s
comprehensive framework of internal controls has been designed to provide reasonable rather than
absolute assurance that the financial statements will be free from material misstatement. As
management, we assert that, to the best of our knowledge and belief, this financial report is complete
and reliable in all material respects.
The Borough’s financial statements have been audited by Altman, Rogers & Co., a firm of licensed
certified public accountants. The goal of the independent audit was to form an opinion on whether
the financial statements of the Borough, for the fiscal year ended June 30, 2019, are presented fairly,
in all material respects, in accordance with generally accepted accounting principles in the United
States of America. The independent audit involved examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements; assessing the accounting principles used and
significant estimates made by management; and evaluating the overall financial statement
presentation. The independent auditor issued an unmodified (“clean”) opinion on the Borough’s
financial statements for the fiscal year ended June 30, 2019. The independent auditor’s report is
presented as the first component of the financial section of this report.
2
The independent audit of the financial statements of the Borough was part of broader, State and
federally mandated “Single Audits” designed to meet the special needs of State and federal grantor
agencies. The standards governing Single Audit engagements require the independent auditor to
report not only on the fair presentation of the financial statements, but also on the audited
government’s internal controls and compliance with legal requirements, with special emphasis on
internal controls and legal requirements involving the administration of State and federal awards.
These reports are available in the Borough’s separately issued Single Audit Report.
GAAP require that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management’s Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it. The Borough’s MD&A can be found immediately following the report of the
independent auditors.
Profile of the Government
The Kodiak Island Borough lies at the western border of the Gulf of Alaska, approximately 40 miles
south of the Kenai Peninsula. Kodiak Island is the largest island in Alaska and the second largest in
the United States. About two-thirds of the Borough lies in the Kodiak archipelago with the remaining
third on the Alaska Peninsula, across the Shelikof Strait from Kodiak Island. The Shelikof Strait is
only 20 miles wide in places. The Borough encompasses 7,130 square miles, making it slightly
smaller than the State of Massachusetts and serves a population of 13,136.
The Borough was incorporated September 30, 1963, as a Second Class Borough by Chapter 146
Sessions, Laws of Alaska 1961, as amended. The powers granted to the Borough include area-wide
powers and non area-wide powers. Area-wide powers are health, education, planning and zoning,
emergency services planning, and assessment and collection of taxes for both the Borough and cities
within the Borough. Non area-wide powers include parks and recreation, economic development,
solid waste disposal, animal control, fire protection, street lighting and road maintenance and
construction. A Manager form of government governs the Borough. The Mayor is elected at large
while the Borough Assembly appoints the Manager. The Assembly is composed of seven members
who are elected at-large.
The Borough provides a full range of services including fire protection, the construction and
maintenance of roads and other infrastructure, community and economic development, health,
culture and recreation and solid waste collection and disposal. The Borough also is financially
accountable for a legally separate school district which is reported separately within the Borough’s
financial statements. Additional information on this legally separate entity can be found in the basic
financial statements.
Budgetary Accounting and Internal Controls
The annual budget serves as the foundation for the Borough’s financial planning and control. All
departments of the Borough are required to submit requests for appropriation to the Borough
Manager. The Borough Manager uses these requests as the starting point for developing a proposed
budget. The Borough Manager then presents this proposed budget to the Assembly for review by
April 30th. The assembly is required to hold public hearings on the proposed budget and to adopt a
final budget by no later than June 10th. The appropriated budget is prepared by fund and department.
3
The Assembly makes appropriation transfers between funds and/or departments only after the
adoption of an ordinance. Borough staff may execute transfers between line items within a
department. Amendments to the budget can occur anytime during the fiscal year through the
Borough Assembly or administrative action. Expenditures may not legally exceed appropriations at
the following levels: Capital Project Funds – project level, all other funds – department level. All
funds, except Capital Project Funds, are budgeted on an annual basis encompassing a fiscal year.
Budgets of Capital Project Funds generally encompass the period from start-up to project
completion, which is generally greater than one year.
Budget-to-actual comparisons are provided in this report for each individual governmental and
proprietary fund for which an appropriated annual budget has been adopted.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the Borough
operates.
State economy. The State of Alaska has experienced budget shortfalls in the most recent periods
and these factors are impacting the communities within the state due to decreased state grant funding,
decreased revenue sharing and decreases in program payments such as School Construction Debt
Reimbursements.
Local economy. The economic condition of the Kodiak Island Borough remains guarded. The
seafood industry is by far the largest industry in the Kodiak Island Borough. This industry includes
commercial fishing, fisheries research, management and enforcement, seafood processing, and
maintenance and support services. Kodiak is home to the largest port in the State, housing over 500
commercial vessels and consistently ranks among the top ten ports in the United States in terms of
amount and value of product delivered. While the commercial fishing industry in Kodiak has been
stable with severance taxes on seafood ranging from $1,287,693 in FY2010 to $1,163,238 in
FY2019, there have been new federal and state environmental and quota restrictions that may reduce
future revenues.
Tourism also has a strong presence in Kodiak, however the recent trends of online bookings and the
construction of a new hotel within the city limits, coupled with remote locations which cannot be
readily monitored, may make the transient tax revenues an unreliable indicator of the economy.
Transient accommodations tax (bed tax) revenues have decreased from $104,074 in FY2015 to
$78,971 in FY2019, a decrease of 26.3%. Cruise ships calls continue to increase from 21 in 2010 to
31 in 2019, and the Commercial Passenger Vessel tax revenues have increased from $25,488 in
FY2010 to $42,753 in FY2019.
The Kodiak Island Borough is also home to the aerospace industry, which began with construction
of the Kodiak Launch Complex in 1998. Owned by the Alaska Aerospace Development Corporation
(AADC), a public corporation of the State of Alaska, the Kodiak Launch complex is the first
complete launch facility built in the United States since the 1960’s and the first not owned by the
Federal Government. The state-of-the-art facility includes a launch control center, payload
processing facility, spacecraft assembly building and launch pad. It is designed to handle small to
medium sized rockets used to launch low earth orbit satellites, as well as military, scientific and
research missions.
4
Kodiak is home to the largest U.S. Coast Guard base in the country, employing nearly 1,350 people
and providing vital services to the marine industries that are an integral part of Kodiak’s make-up as
well as making a significant contribution to the Kodiak community.
Employment varies throughout the year with July, August, and September being the peak months
due to the increased activity in the fisheries and related businesses, and then declines in November
and December when fishing quotas are reached. At June 30, 2019, the unemployment rate for the
Kodiak Island Borough was 4.2% compared to the State of Alaska’s rate of 6.2%.
Long-term financial planning. The Borough adopts a strategic plan. In this plan, the Borough
decides what its goals and objectives are for the next 3-5 years. To view the complete Strategic plan,
you can visit our web site at www.kodiakak.us. The basis of the strategic plan is:
Essential governmental services are to be provided at a level equal to or better than the level
previously provided. Plan for revenues and expenses to create a government that is more
efficient, less costly and more accountable to ensure a financially sustainable borough for
future generations.
All services are to be constantly examined to ensure that they are provided in an efficient and
effective manner and that unnecessary program costs are eliminated.
Each department’s progress in achieving their objectives is reviewed and monitored
throughout the budget year.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the Borough for its
comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2018. This was the
twenty-ninth consecutive year that the Borough has received this prestigious award. In order to be
awarded a Certificate of Achievement, a government must publish an easily readable and efficiently
organized comprehensive annual financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
CAFR continues to meet the Certificate of Achievement Program’s requirements and we are
submitting it to the GFOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and dedicated
services of the entire staff of the administration and finance department. We would like to express
our appreciation to all members of the department who assisted and contributed to the preparation
of this report. Credit must be given to the mayor and the assembly for their unfailing support for
maintaining the highest standards of professionalism in the management of the Borough’s finances.
Respectfully submitted,
Michael Powers Dora Cross
Borough Manager Director of Finance
6
Electorate
Borough Manager Borough Attorney
Engineering/
Facilities Director
Bayside Fire
Chief
Finance/MIS
Director
Borough Mayor
Borough Assembly
Community
Development
Director
Secretary III
Maintenance
Mechanic
KFRC
Maintenance
Engineer
KFRC
Interpretive
Spec/Rec.
Solid Waste Mgr/
Environ. Spec.
Solid Waste
Baler/Landfill
Supervisor
Treatment Plant
Operator Lead
Baler Operator I
Baler Operator II
Baler Operator I
Baler Operator I
Baler Operator I
HR Officer Executive
Assistant
Assessor
Associate Planner/ENF
Associate Planner/LRP
Code Enforcement
Officer
Secretary III
Property Appraiser
Lead
Appraiser
Technician
Appraiser
Technician
Assessment
Clerk I
General
Accountant
Accounting Tech
Accounts Payable
Accounting Tech
Payroll
Revenue
Accountant
Secretary III
IT Supervisor
Programmer/
Analyst
GIS Analyst
Cashier
Borough Clerk
Assistant Clerk Deputy Clerk
Kodiak Island Borough
Fiscal Year 2019
Assistant
Director
Projects
Inspector
Projects
Assistant
KFRC
Interpretive
Spec/Rec.
Grant Writer/
Spec Proj Support Resource
Mgt Officer
Landfill Attendant
Treatment Plant
Operator
Treatment Plant
Operator Trainee
PC Network
Tech II
MAYOR AND ASSEMBLY MEMBERS
7
Scott Arndt, Julie Kavanaugh,
At Large, 2019 At Large, 2020
Dan Rohrer, Mayor, 2019
Andrew Schroeder, Scott Smiley,
At Large, 2020 At Large, 2019
Dennis Symmons, James Turner,
At Large, 2021 At Large, 2021
Rebecca Skinner,
Deputy Presiding Officer (DPO),
At Large, 2020
8
KODIAK ISLAND BOROUGH
KODIAK, ALASKA
BOROUGH OFFICIALS
YEAR ENDED JUNE 30, 2019
MAYOR
Dan Rohrer ‘19
ASSEMBLY
Rebecca Skinner ’20 Scott Arndt ‘19
Julie Kavanaugh ’20 Andrew Schroeder ‘20
Scott Smiley ’19 Dennis Symmons ‘21
James Turner ‘21
MANAGEMENT
Michael Powers .................................................................................................. Borough Manager
Dora Cross ............................................................................................... Finance Director/Treasurer
Tara Welinksy ............................................................................................................. Borough Clerk
Erin Welty ................................................................................... Community Development Director
Vacant ....................................................................................................................Borough Assessor
Howard Rue ....................................................................................................................... Fire Chief
Dave Conrad ................................................................................ Engineering and Facilities Director
Paul Van Dyke .............................................................................................................. IT Supervisor
Keene & Currall ....................................................................... Borough Attorney (Contracted Firm)
9
FINANCIAL SECTION
10
3000 C Street N. Suite 201 Anchorage, Alaska 99503 Phone 907-274-2992 Fax 907-274-2993
Offices in Juneau and Soldotna A Professional Corporation
Independent Auditor’s Report
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
Kodiak, Alaska
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the Kodiak Island Borough, as of and for the year ended June 30, 2019, and the related
notes to the financial statements, which collectively comprise the Borough’s basic financial statements as
listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
11
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the discretely
presented component unit, each major fund, and the aggregate remaining fund information of the Kodiak
Island Borough, as of June 30, 2019, and the respective changes in financial position and, where applicable,
cash flows thereof for the year then ended in accordance with accounting principles generally accepted in
the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis, Budgetary Comparison Schedules and notes to RSI, and Schedules of Borough’s
Proportionate Share the of Net Pension and OPEB Liabilities and Contributions for the Public Employees’
Retirement System on pages 13-27, 84-88, and 89-92, respectively, be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context. We
have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for consistency
with management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Kodiak Island Borough’s basic financial statements. The information listed in the table of
contents as “Additional Supplementary Information”, which includes Budgetary Comparison Schedule –
Debt Service Fund – Education; Nonmajor Governmental Funds: Combining Balance Sheet and Combining
Statement of Revenues, Expenditures, and Changes in Fund Balances; Nonmajor Special Revenue Funds:
Combining Balance Sheet, Combining Statement of Revenues, Expenditures and Changes in Fund
Balances, and Schedules of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual;
Nonmajor Capital Project Funds: Combining Balance Sheet and Combining Statement of Revenues,
Expenses and Changes in Fund Balances (Deficit); Enterprise Funds: Schedule of Revenues, Expenditures,
and Changes in Net Position – Budget and Actual, is presented for purposes of additional analysis and is
not a required part of the basic financial statements.
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
12
The Additional Supplementary Information listed on the previous page is the responsibility of management
and was derived from and relates directly to the underlying accounting and other records used to prepare
the basic financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional procedures
in accordance with auditing standards generally accepted in the United States of America. In our opinion,
the Additional Supplementary Information listed on the previous page is fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
The Introductory Section, the Supplementary Bond Schedules, and the Statistical Section, as identified in
the table of contents, have not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
We also have previously audited, in accordance with auditing standards generally accepted in the United
States of America, the Kodiak Island Borough’s basic financial statements for the year ended June 30, 2018,
which are not presented with the accompanying financial statements and we expressed unmodified opinions
on the respective financial statements of the governmental activities, the business-type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund information. That
audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise Kodiak Island Borough’s basic financial statements as a whole. The individual fund financial
statements and schedules for the year ended June 30, 2018, are presented for purposes of additional analysis
and are not a required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records used
to prepare the June 30, 2018, basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of those basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the financial statements or to the financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the 2018 individual fund financial statements and schedules are fairly stated in all
material respects in relation to the basic financial statements from which they have been derived.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 26,
2019, on our consideration of the Kodiak Island Borough's internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of Kodiak Island Borough’s internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering Kodiak Island Borough’s internal control over financial reporting and compliance.
Anchorage, Alaska
December 26, 2019
MANAGEMENT’S DISCUSSION AND ANALYSIS
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis
June 30, 2019
13
As management of the Kodiak Island Borough, we offer readers of these financial statements this narrative
overview and analysis of the financial activities of the Kodiak Island Borough for the fiscal year ended
June 30, 2019. We encourage readers to consider the information presented here in conjunction with
additional information that we have furnished in our letter of transmittal, which can be found on pages 1 -
4 of this report.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the Kodiak Island Borough exceeded its liabilities
and deferred inflows of resources at the close of the most recent fiscal year by $190,739,716 (net
position). Of this amount, $61,958,075 (unrestricted net position) may be used to meet the Borough’s
ongoing obligations to citizens and creditors.
The Borough’s total net position increased by $9,400,955 (5.18%). The governmental net position
increased by $7,938,378 (6.03%) and the business-type net position increased by $1,462,577 (2.94%).
Total equity in the central treasury increased by $9,225,245 (11.98%). The governmental central
treasury increased by $7,447,013 (11.88%) and the business-type central treasury increased by
$1,778,232 (12.38%).
The Borough’s total noncurrent liabilities decreased by $5,758,479 (5.11%). Compensated leave
decreased $81,020 (36.31%), notes/bonds payable decreased by $6,478,491 (6.45%), net pension and
OPEB liabilities increased by $506,032 (7.66%), and landfill closure costs increased by $295,000
(5.33%).
At the end of the current fiscal year, the Borough’s governmental funds reported combined fund
balances of $56,245,484. This was an increase of $3,894,785 (7.44%), compared to the net change
in the prior year of a decrease of $1,296,369. Approximately 7.85% of the current year total amount,
or $4,415,158, is available for spending at the government’s discretion (unassigned fund balance).
At the end of the current fiscal year, unassigned fund balance for the General Fund, less a $30,842
Education Fund deficit and an $846,862 Other Governmental Funds deficit, was $4,415,158. This
amounts to 73.31% of total General Fund expenditures.
OVERVIEW OF THE FINANCIAL STATEMENTS
The management discussion and analysis serve as an introduction to the Borough’s basic financial
statements, which contain the following: 1) government-wide financial statements, 2) fund financial
statements, and 3) notes to the financial statements. This report also contains 4) required supplementary
information and 5) other supplementary information in addition to the basic financial statements.
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
14
1) Government-wide Financial Statements (pages 28-29)
The government-wide financial statements are designed to provide readers with a broad overview of the
Borough’s finances in a manner similar to a private-sector business. These statements combine and
consolidate short-term, spendable resources with capital assets and long-term obligations. The government-
wide financial statements are divided into the following three categories:
Governmental activities – These are functions of the Borough that are financed primarily by taxes,
intergovernmental revenues, and charges for services. The Borough’s governmental activities
include general government, public safety, community and economic development, emergency
preparedness, non-profit contributions for health and social services and education, culture and
recreation, service district maintenance, primary and secondary education, and debt service.
Business-type activities – These are functions of the Borough in which customer user fees and
charges are used to help cover all or most of the cost of services they provide. The Borough’s
business-type activities include solid waste collections and disposal (landfill) facility, E911
emergency system, and long-term property leases for various Borough owned buildings including
a hospital, long-term care center and a fisheries research center.
Component unit – The Borough also includes the Kodiak Island Borough School District in its
report as it is financially accountable for this “component unit”. Financial information for the
school district is reported separately from the financial information presented for the primary
government itself.
The Statement of Net Position is designed to be a bottom line for the Borough and its governmental activities
and component unit. This statement combines and consolidates governmental funds’ current financial
resources (short-term spendable resources) with capital assets, including infrastructure and long-term
obligations. Net positions are the difference between the Borough’s assets and deferred outflows of
resources and its liabilities and deferred inflows of resources. Increases or decreases in net position may
serve as a useful indicator of whether the financial position of the Borough is improving.
The Statement of Activities reflects the expenses of a given function, which are offset by program revenues.
All changes in net position are reported as soon as the underlying event given rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement
for some items that will result in cash flows in future fiscal periods. Program revenues are defined as charges
for services, operating grants and contributions, and capital grants and contributions directly associated
with a given function.
Both of the government-wide financial statements distinguish functions of the Borough that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business-type
activities).
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
15
The government-wide financial statements include not only the Borough itself (known as the primary
government), but also the legally separate school district for which the Borough is financially accountable.
Financial information for this component unit is reported separately from the financial information
presented for the primary government itself.
2) Fund Financial Statements (pages 30-36)
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The Borough, like other state and local governments, uses
fund accounting to ensure and demonstrate fiscal accountability. All the funds of the Borough can be
divided into two categories: a) governmental funds and b) proprietary funds.
Number of Funds
Fund Type Major Non-Major Total Funds
Governmental Funds:
General Fund 1 - 1
Debt Service Fund 1 - 1
Special Revenue 2 16 18
Capital Projects - 7 7
Total Governmental Funds 4 23 27
Proprietary Funds:
Enterprise Funds 4 1 5
Total of All Funds 32
a) Governmental Funds (pages 84-88 and 93-117) – Governmental funds are used to account for
essentially the same functions reported as governmental activities in the government-wide financial
statements. However, unlike the government-wide statements, governmental fund financial statements
focus on the short-term view of the Borough’s operations. Because the focus of governmental funds is
narrower than that of the government-wide financial statements, it is useful to compare the information
presented for the governmental funds with similar information presented for governmental activities in the
government-wide financial statements. Both the governmental fund balance sheet and the governmental
fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate
this comparison between governmental funds and governmental activities.
The Borough adopts an annual appropriated budget for its General Fund, Special Revenue Funds and Debt
Service Fund. Budgetary comparison statements have been provided for the funds to demonstrate
compliance with the budget.
b) Proprietary Funds (pages 34-36 and 118-122) – The only Proprietary Fund type that the Borough uses
is enterprise funds. Proprietary fund statements provide the same type of information as the government-
wide financial statements, only in more detail. Enterprise funds are used to account for activities for which
a fee is charged to external users for goods and services.
The Borough adopts an annual appropriated budget for its proprietary funds. Budgetary comparison
statements have been provided for the funds to demonstrate compliance with the budget.
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
16
3) Notes to the Basic Financial Statements (pages 37-83)
The notes provide additional information that is essential to a full understanding of the data provided in the
government-wide and fund financial statements.
4) Required Supplementary Information (pages 84-92)
The required supplementary information (RSI) includes required budgetary supplementary information and
the schedules of the proportionate share of the net pension and OPEB liabilities and pension/OPEB
contributions.
5) Additional Supplementary Information (page 93-122)
The basic financial statements are followed by additional supplementary information on individual fund
activity.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position (page 28)
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position.
In the case of the Borough, assets and deferred outflows of resources exceeded liabilities and deferred
inflows of resources by $190,739,716 at June 30, 2019, compared to $181,338,761 at June 30, 2018.
The largest portion of the Kodiak Island Borough’s net position ($128,781,641 or 67.52%) reflects its
investment in capital assets (e.g. land, buildings, equipment and infrastructure) net of any related debt used
to acquire those assets. The Borough uses these capital assets to provide services to citizens; consequently,
these capital assets are not available for future spending. Although the Borough’s investment in capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Total Net Position of Government and Business-Type
Activities
Business Type Activities Governmental Activites
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
17
Total net position has increased over the past 10 years indicating an improving financial position as
illustrated by the graph above. The Borough has maintained a stable financial position and the $61,958,075
of unrestricted net position may be used to meet the Borough’s ongoing obligations to citizens and creditors.
Governmental Business-type Total
Activities Activities Activities
2019 2018 2019 2018 2019 2018
Current and other assets $ 71,899 64,518 19,676 18,092 91,575 82,610
Capital assets 162,565 163,318 67,204 68,965 229,769 232,283
Total assets 234,464 227,836 86,880 87,057 321,344 314,893
Deferred outflows of resources 931 661 250 176 1,181 837
Total assets and deferred
outflows of resources $ 235,395 228,497 87,130 87,233 322,525 315,730
Long-term liabilities $ 73,572 78,023 33,469 34,777 107,041 112,800
Other liabilities 21,710 17,892 2,419 2,563 24,129 20,455
Total liabilities 95,282 95,915 35,888 37,340 131,170 133,255
Deferred inflows of resources 499 907 116 229 615 1,136
Total liabilities and deferred
inflows of resources $ 95,781 96,822 36,004 37,569 131,785 134,391
Net position:
Net investment in capital assets $ 89,376 85,570 39,406 39,509 128,782 125,079
Unrestricted 50,238 46,105 11,720 10,155 61,958 56,260
Total net position $139,614 131,675 51,126 49,664 190,740 181,339
Net Position of Governmental and Buisness-type Activities (in thousands)
For Years Ended June 30, 2019 and 2018
Changes in Net Position
During the current fiscal year, the Borough’s total net position increased by $9,400,955 (5.18%). This
compares to an increase of $2,505,584 for the year ended June 30, 2018. Of the $9,400,955 increase, the
governmental net position increased by $7,938,378 (6.03%) and the business-type net position increased
by $1,462,577 (2.94%).
Revenues increased overall by $4,128,538 (8.03%). The largest increase was $3,270,298 (14.41%) from
General Revenues (Investment Earnings increased by $2,466,699) and Capital Grants increased by
$249,729 and the largest revenue decrease was Severance Taxes at $643,740 (33.36%).
Expenses decreased overall by $1,456,818 (4.45%) The largest increase was Primary and Secondary
Education at $574,557 (4.53%) and the largest decrease is General Government at $1,786,036 (25.53%).
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
18
Statement of Activities (page 29)
The following table shows the changes in net position for fiscal years 2019 and 2018 for both governmental
and business type activities.
2019 2018 2019 2018 2019 2018
Revenues:
Program revenues:
Charges for services $ 1,011 979 7,713 7,118 8,724 8,097
Operating grants and contributions 5,612 5,614 27 45 5,639 5,659
Capital grants 346 97 — — 346 97
General revenues:
Property taxes 16,660 16,045 — — 16,660 16,045
Grants and entitlements not restricted
to specific programs 4,266 3,415 — — 4,266 3,415
Land sales 19 28 — — 19 28
Excise taxes 425 310 — — 425 310
Severance taxes 1,286 1,929 — — 1,286 1,929
Other 117 306 376 312 493 618
Investment earnings 2,196 282 622 70 2,818 352
Total revenues 31,938 29,005 8,738 7,545 40,676 36,550
Expenses:
General government 5,210 6,995 — — 5,210 6,995
Public safety 936 954 — — 936 954
Community and economic development 1,133 1,152 — — 1,133 1,152
Emergency preparedness 14 43 — — 14 43
Health and social welfare 183 208 — — 183 208
Education, culture and recreation 20 5 — — 20 5
Parks and recreation 43 77 — — 43 77
Service district maintenance 646 588 — — 646 588
Primary and secondary education 13,270 12,695 — — 13,270 12,695
Interest on long-term debt 2,500 2,673 — — 2,500 2,673
Municipal solid waste collection and
disposal — — 3,288 3,246 3,288 3,246
Hospital facilities — — 1,202 1,412 1,202 1,412
Long Term Care Center — — 960 1,008 960 1,008
Kodiak Fisheries Research Center — — 1,571 1,422 1,571 1,422
911 services — — 300 256 300 256
Total expenses 23,955 25,390 7,321 7,344 31,276 32,734
Change in net position
before transfers 7,983 3,615 1,417 201 9,400 3,816
Transfers (45) (45) 45 45 — —
Change in net position 7,938 3,570 1,462 246 9,400 3,816
Net position, beginning of year,
as previously stated 131,675 129,151 49,664 49,682 181,339 178,833
Cummulative effect of a change in
accounting principle — (1,046) — (264) — (1,310)
Net position, beginning of year,
as restated 131,675 128,105 49,664 49,418 181,339 177,523
Net position, end of year $ 139,613 131,675 51,126 49,664 190,739 181,339
Governmental activities Business-type activities Total activities
Changes in Net Position (in thousands)
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
19
Governmental Activities – increased the Borough’s net position by $7,938,378.
The largest source of revenue from governmental activities is property taxes, which amounted to
$16,660,329, a 3.83% increase from 2018. Investment Earnings was the largest increasing revenue by
$1,914,314 (679.18%) and Severance Taxes was the largest decreasing revenue by $643,740 (33.36%).
Overall, total revenues increased by $2,933,959 (10.12%) from 2018.
The largest expense from governmental activities is from Primary and Secondary Education, which
amounted to $13,269,790, a 4.53% increase from 2018. General Government was the second largest
expense, decreasing by $1,786,036 (25.53%). All other expenses decreased with the exception of Service
District Maintenance and Education, Culture and Recreation which increased by $57,826 (9.84%) and
$15,807 (338.84%), respectively. Overall, total expenses decreased by $1,434,540 (5.65%) from 2018.
Charges for services
3%
Operating grants and
contributions
19%
Property taxes
52%
Grants and
entitlements not
restricted to specific
programs
13%
Excise taxes
1%
Severance taxes
4%
Investment earnings
7%
Other
1%
FY2019 Governmental Activities - Revenue Sources
General government
22%
Public safety
4%
Community and
economic
development
5%
Health and social
services
1%
Service district
maintenance
3%
Primary and
secondary education
55%
Interest on long-term
debt
10%
FY2019 Governmental Activities - Functional Expenses
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
20
Business Activities - increased the Kodiak Island Borough’s net position by $1,462,577.
The largest source, and increase, in revenue from business-type activities was charges for services, which
amounted to $7,713,454, an 8.37% increase from 2018. The largest decrease in revenues was Operating
Grants and Contributions at $17,149 (38.53%). Overall, total revenues increased by $1,194,579 (15.83%)
from 2018.
The largest expense from business-type activities is from Municipal Solid Waste Collection and Disposal,
which totaled $3,287,702, a 1.30% increase from 2018. The largest increase in expenses was Kodiak
Fisheries Research Center at $149,306 (10.50%) and the largest decrease in expenses was the Hospital
Facilities at $210,179 (14.88%). Overall, total expenses decreased by $22,278 (0.30%) from 2018.
Personnel
services
21%
Contracted
services
6%
Maintenance and
repair
3%
Depreciation
39%
General
Administration
14%
Recycling services
4%
Closure/post
closure
4%
E911 service
5%
Miscellaneous
4%
FY2019 Business-Type Activities - Expenses
Charges for
Services
88%
Operating grants
and contributions
1%
Interest Earnings
7%
Other
4%
FY2019 Business-Type Activities - Revenue
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
21
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As noted earlier, the Borough uses fund accounting to ensure and demonstrate compliance with finance
related legal requirements. These funds are accounted for using the modified accrual basis of accounting.
Governmental Funds – The focus of the Borough’s governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the Borough’s financing requirements. Unassigned fund balance may serve as a useful measure of a
government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the Borough’s governmental funds reported combined ending fund
balances of $56,245,484, an increase of $3,894,785 (7.44%) in comparison to the beginning of the year.
$68,873 of this total amount constitutes nonspendable fund balances, $45,862,404 was committed fund
balances, $5,899,049 was assigned fund balances, and $4,415,158 was unassigned fund balances.
The General Fund is the main operating fund of the Borough. At the end of the current fiscal year,
nonspendable fund balance of the General Fund was $67,562, with an unassigned fund balance of
$5,292,862 for a total fund balance of $5,360,424. As a measure of the General Fund’s liquidity, it may be
useful to compare fund balance to total expenditures. Unassigned fund balance represents 87.89% of total
General Fund expenditures.
Major Fund Highlights
General Fund – Fund balance increased by $2,171,470 (68.09%) during the current fiscal year.
There were three main contributors to the overall increase in the fund. 1) $961,970 more in various
state revenues than anticipated, 2) $314,393 more in Federal PILT revenues than anticipated and
3) a $465,085 reduction in General Fund expenditure, which was more than anticipated.
Education Support (Special Revenue Fund) – Fund balance deficit decreased by $95,772 (75.64%)
to $30,842 during the current fiscal year. The key factor leading to this change was increased
property tax revenues.
Facilities Fund (Special Revenue Fund) – Fund balance increased by $947,112 (2.41%) during the
current fiscal year. The largest use of allowed earning use in this fund was a transfer of $338,982
to the Education Debt Service Fund to help cover required debt service payments and a $333,983
transfer to the Renewal & Replacement Project Fund.
Education Debt Service Fund – Fund balance increased by $326,267 (157.46%), largely due to a
$338,982 transfer to the fund from the Facilities fund.
$5,360,424
$(30,842)
$40,318,331
533,471
$10,064,100
(20,000,000)
0
20,000,000
40,000,000
60,000,000
General Education Facilities Debt Service Non-Major Funds
GOVERNMENTAL FUNDS - FUND BALANCE
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
22
Other Governmental Funds (Non-Major Funds) Highlights
Other Governmental funds – Aggregate fund balance increased by $354,164 (3.65%) during the
current fiscal year; special revenue funds increased $713,969 and capital projects funds decreased
$359,805.
Service Area No. 1 (Special Revenue Fund) – Fund balance increased by $138,184. The key factors
leading to this was an increase in investment income and a decrease in repair and maintenance
expenses.
Land Sales (Special Revenue Fund) – Fund balance decreased $45,843. The Borough did not sell
property or timber this year. Although this fund’s regular annual revenue streams are not enough
to fund regular annual expenses, the infrequent sales of land and timber resources provide a fund
balance for these non-revenue years.
Building and Grounds (Special Revenue Fund) – Fund balance increased $443,036. The key factor
leading to this was an increase in transfers in to repay a school maintenance project expensed from
this fund in FY2018.
Tourism Development (Special Revenue Fund) – Fund balance decreased by $48,576. For FY2019,
the commercial passenger vessel tax revenues are now accounted for in a new fund, which was the
primary factor for the decreased fund balance.
Commercial Passenger Vessel (Special Revenue Fund) – This is a new fund beginning FY2019.
Revenues for this fund were included in the Tourism Development Fund in prior years.
Renewal and Replacement Projects (Capital Project Fund) – Fund balance increased by $859,885
primarily due to a mill rate increase to the fund. Fund balance will continue to increase due to future
planned projects.
School Renewal and Replacement Facilities Bond Projects (Capital Project Fund) – Fund balance
decreased by $1,988,424 use of existing fund balance to complete projects.
(The remainder of this page left blank intentionally.)
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
23
Proprietary Funds – The Borough’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
As of the end of the current fiscal year, the Borough’s proprietary funds reported combined net position of
$51,126,380, a $1,462,577 (2.94%) increase in comparison to the beginning of the year. Equity in central
treasury and restricted cash and equivalents increased by $1,800,902 (11.50%) in comparison to the
beginning of the year.
Major Fund Highlights
Municipal Solid Waste Collection and Disposal (Enterprise fund) – Net position increased by
$1,511,358 (9.70%) due to an increase in charges for services and an increase in investment
income.
Hospital Facilities (Enterprise Fund) – Net position increased by $283,796 (1.77%).
Long-Term Care Center (Enterprise Fund) – Net position increased by $207,882 (3.26%) due to
timing differences in revenues and bond payments and an increase in investment income.
Kodiak Fisheries Research Center (Enterprise Fund) – Net position decreased by $540,478
(4.60%) due to decreasing lease revenues and an increase in utility expenses.
Other Nonmajor Fund Highlights
911 Services (Enterprise Fund) – Since the revenues to this fund are passed through to the City of
Kodiak, the net position at year end is $19. However, it should be noted that the City increased
the per line fee from $0.75 per land line to $2.00 for land lines and cellular phones in FY2018.
The revenue from this fund increased by $44,462 (17.39%).
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
Municipal
Solid
Waste
Hospital
Facilities
Long-Term
Care
Center
Kodiak
Fisheries
Research
Center
911
Service
2019 Proprietary Funds - Operating Revenue versus
Operating Expenses
Operating Revenues
Operating Expenses
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
24
GENERAL FUND BUDGETARY HIGHLIGHTS (pages 84-85)
The Borough’s budget is prepared, according to Alaska law, using a basis of accounting that is consistent
with accounting principles generally accepted in the United States of America. The most significant budget
areas are in the General Fund.
Within the General Fund revenues, the largest difference between budgeted and actual revenues was State
Fisheries Taxes receiving $939,090 more and local severance taxes receiving $93,302 less than budgeted.
Overall, actual revenues were $1,787,302 (27.39%) more than budgeted.
Within the General Fund expenditures, the largest difference between budgeted and actual expenses was
the assessing department expending $255,685 less and the engineering/facilities department expending
$69,411 more than budgeted. Overall, actual expenditures were $730,284 (10.81%) less than budgeted.
0
1,000,000
2,000,000
3,000,000
Property Taxes Severance
Taxes
Excise Tax State Sources Federal
Sources
Other
FY2019 Budget to Actual Comparison of Revenues
Budgeted Actual
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
General
Government
Public Safety Community &
Economic
Development
Emergency
Preparedness
Non-Profit -
Social
Services,
Education &
Recreation
Parks and
Recreation
FY2019 Budget to Actual Comparison of Expenditures
Budgeted
Actual
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
25
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets (Note 8 on page 52-57) – The Borough’s investment in capital assets includes land,
buildings and improvements, improvements other than buildings, machinery and equipment, and
construction work-in-progress. As of June 30, 2019, the total net book value was $229,768,526. The
$2,515,298 net decrease was mostly due to regular depreciation.
The following table displays the capital assets (net of accumulated depreciation) at June 30, 2019 with a
comparison to 2018.
2019 2018 2019 2018 2019 2018
Artwork $ — — 16,091 16,091 16,091 16,091
Land 23,574,858 23,495,458 1,661,499 1,661,499 25,236,357 25,156,957
Construction work-in-progress 86,134,261 86,335,806 29,701,653 28,897,659 115,835,914 115,233,465
Buildings and improvements 36,410,739 38,853,891 32,252,753 34,414,872 68,663,492 73,268,763
Improvements other than
buildings 14,468,575 12,428,055 2,508,093 2,798,575 16,976,668 15,226,630
Equipment 1,558,773 1,711,415 306,664 377,958 1,865,437 2,089,373
Infrastructure 417,575 493,498 — — 417,575 493,498
Unclassified plant in service — — 756,992 799,047 756,992 799,047
$ 162,564,781 163,318,123 67,203,745 68,965,701 229,768,526 232,283,824
Governmental
activities
Business-type
activities activities
Total
Long-Term Debt (Note 10, pages 60-64) – At the end of the current fiscal year, the Borough had total
bonded debt outstanding of $65,785,000. This entire amount is backed by the full faith and credit of the
Borough. The remainder of the Borough’s debt represents loans and notes payable, compensated absences,
landfill closure and post-closure costs, and revenue bonds payable.
The following table displays the long-term debt at June 30, 2019, with a comparison to 2018.
Governmental Business-type
activities activities
2019 2018 2019 2018 2019 2018
General obligation bonds, including premium $ 72,639,089 77,748,492 — — 72,639,089 77,748,492
Compensated absences 139,441 219,481 85,019 113,690 224,460 333,171
Landfill post closure care costs — — 5,830,000 5,535,000 5,830,000 5,535,000
Loan/notes payable 550,000 — 17,028,533 18,129,817 17,578,533 18,129,817
Revenue Bonds Payable — — 10,769,263 11,327,067 10,769,263 11,327,067
$ 73,328,530 77,967,973 33,712,815 35,105,574 107,041,345 113,073,547
Total
Activities
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
26
The Borough’s total debt decreased by $6,003,531 (5.30%) during the current fiscal year. This decrease
can be attributed to regularly scheduled bond payments. During 2018, the Borough refunded one of the
general obligation bonds which will result in interest expense savings over the life of the bond.
There is no general obligation debt limit imposed on the Borough by the State Constitution, state statutes,
or the Borough’s charter or code.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
Economic Factors:
Kodiak continues to be one of the nation’s largest producers of seafood. The Borough has the
largest and most diversified fishing port in Alaska and is consistently ranked in the top three
largest fishing ports in the U.S. in terms of value landed. New fisheries, such as kelp farming, are
being cultivated.
Tourism continues to increase with a steady number of cruise ships stopping in Kodiak; however,
since the opening of a newly constructed hotel in the City in FY2018, transient accommodations
taxes for the borough have decreased.
Housing availability has increased due to the construction of a 30-unit apartment complex.
Unemployment varies throughout the year due to the seasonal nature of the fishing industry;
however, the Borough’s 2019 unemployment rate was 4.2% compared to 6.2% Alaska-wide.
The United States Coast Guard continues to maintain their largest base on Kodiak Island. Their
area of responsibility covers the Gulf of Alaska, Bristol Bay, the Bering Sea and Alaska’s Pacific
coast.
o March 2018, the USCG (United States Coast Guard) announced the upgrade of five of its
Kodiak based multipurpose airplanes over the next two years.
o April 2018, the USCG announced the addition of two new Kodiak based cutters for search
and rescue, fisheries enforcement and security.
o June 2018, the USCG announced the addition of 100 service members to the Kodiak
Coast Guard Base over the next six years.
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
27
Next Year’s Budgets and Rates:
No change to the Area-wide mill rate.
Property tax revenues are projected to increase in future years as the Borough’s assessed valuation
continues to increase.
Fish revenues from the State and from local sources are projected to decrease due to quota and
catch limit restrictions.
No increase to the State of Alaska’s ceiling of 22% for political subdivision contributions to PERS
(Public Employees Retirement System).
The Borough will need to sell $2 - $3 million of General Obligation bonds in FY20 for the
completion of school bonded projects. After those are sold, bond principal and interest payments
are projected to remain steady.
Landfill user fees are expected in increase due to the landfill expansion and the new leachate
treatment plant.
All of these factors were considered in preparing the Borough’s budget for fiscal year 2020.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Borough’s finances for all those with
an interest. Questions concerning any of the information provided in this report or requests for additional
information should be addressed to the Kodiak Island Borough, Director of Finance, 710 Mill Bay, Kodiak,
Alaska 99615.
BASIC FINANCIAL STATEMENTS
Component
Primary government unit Total reporting entity
Governmental Business-type School
activities activities Total District 2019 2018
Equity in central treasury $ 70,110,233 16,147,762 86,257,995 — 86,257,995 77,032,750
Due from primary
government — — — 14,473,811 14,473,811 9,397,741
Receivables:
State of Alaska 137,817 — 137,817 1,970,014 2,107,831 3,272,743
Federal government 251,409 — 251,409 — 251,409 231,570
Property taxes, net of
allowance of $17,070 291,880 — 291,880 — 291,880 427,086
Severance taxes 261,503 — 261,503 — 261,503 288,482
Excise taxes 100,377 — 100,377 — 100,377 122,130
Interest 392,042 — 392,042 — 392,042 300,209
Land sales contracts
receivable 130,171 — 130,171 — 130,171 187,845
Accounts and other
receivables, net 94,601 503,332 597,933 — 597,933 672,509
Current portion of
notes receivable — 122,398 122,398 — 122,398 118,194
Inventories — 380,038 380,038 477,533 857,571 847,132
Prepaid items 68,873 — 68,873 15,615 84,488 37,889
Restricted cash and equivalents — 1,308,245 1,308,245 — 1,308,245 1,285,575
Internal balances 60,079 (60,079) — — — —
Notes receivable — 1,274,809 1,274,809 — 1,274,809 1,397,207
Capital assets:
Non-depreciable 109,709,119 31,379,243 141,088,362 — 141,088,362 140,406,513
Depreciable, net 52,855,662 35,824,502 88,680,164 761,729 89,441,893 92,759,740
Total assets 234,463,766 86,880,250 321,344,016 17,698,702 339,042,718 328,785,315
Deferred outflows of resources -
Pension and OPEB deferrals 930,748 250,588 1,181,336 5,697,038 6,878,374 4,118,420
Total assets and deferred
outflows of resources $235,394,514 87,130,838 322,525,352 23,395,740 345,921,092 332,903,735
Liabilities:
Accounts payable $481,535 334,987 816,522 1,276,266 2,092,788 3,315,512
Accrued compensation
and related liabilities 273,732 — 273,732 3,060,116 3,333,848 3,358,168
Other accrued liabilities 1,037,046 124,463 1,161,509 754,656 1,916,165 1,929,719
Customer deposits 2,450 46,890 49,340 — 49,340 62,918
Unearned revenues 37,965 205,850 243,815 255,481 499,296 514,659
Due to component unit 14,473,811 — 14,473,811 — 14,473,811 9,397,741
Noncurrent liabilities:
Due within one year:
Accrued leave 64,264 18,076 82,340 — 82,340 110,031
Notes payable 5,339,407 1,689,087 7,028,494 22,634 7,051,128 6,790,049
Due in more than one year:
Accrued leave 75,177 66,943 142,120 142,120 223,140
Notes payable 67,849,682 26,108,709 93,958,391 720,642 94,679,033 101,234,898
Net pension and OPEB liability 5,646,880 1,463,230 7,110,110 33,673,642 40,783,752 36,128,126
Landfill closure costs — 5,830,000 5,830,000 — 5,830,000 5,535,000
Total liabilities 95,281,949 35,888,235 131,170,184 39,763,437 170,933,621 168,599,961
Deferred inflows of resources -
Pension and OPEB deferrals 499,229 116,223 615,452 2,773,751 3,389,203 5,538,180
Net position:
Net investment in capital assets 89,375,692 39,405,949 128,781,641 690,393 129,472,034 125,867,987
Unrestricted 50,237,644 11,720,431 61,958,075 (19,831,841) 42,126,234 32,897,607
Total net position 139,613,336 51,126,380 190,739,716 (19,141,448) 171,598,268 158,765,594
Total liabilities, deferred inflows
of resources and net position $ 235,394,514 87,130,838 322,525,352 23,395,740 345,921,092 332,903,735
See accompanying notes to financial statements.
(With summarized financial information for June 30, 2018)
June 30, 2019
Statement of Net Position
KODIAK ISLAND BOROUGH
of Resources and Net Position
Liabilities, Deferred Inflows
Outflows of Resources
Assets and Deferred
28
Program revenues Net (expense) revenue and changes in net position
Operating Primary government Component unit
Charges for grants and Capital Governmental Business-type School Total reporting entity
Functions/Programs Expenses services contributions grants activities activities Total District 2019 2018
Primary government:
Governmental activities:
General government $5,209,588 966,852 79,740 346,427 (3,816,569) — (3,816,569) — (3,816,569) (5,884,020)
Public safety 936,083 16,701 27,774 — (891,608) — (891,608) — (891,608) (756,457)
Community and economic development 1,133,265 — 57,779 — (1,075,486) — (1,075,486) — (1,075,486) (1,084,965)
Emergency preparedness 14,307 — — — (14,307) — (14,307) — (14,307) (43,038)
Health and social welfare 182,900 — — — (182,900) — (182,900) — (182,900) (207,500)
Education, culture and recreation 20,472 — — — (20,472) — (20,472) — (20,472) (4,665)
Parks and recreation 43,368 — — — (43,368) — (43,368) — (43,368) (77,186)
Service district maintenance 645,533 27,600 — — (617,933) — (617,933) — (617,933) (497,257)
Primary and secondary education 13,269,790 — 220,392 — (13,049,398) — (13,049,398) — (13,049,398) (12,457,338)
Interest on long-term debt 2,500,440 — 5,226,069 — 2,725,629 — 2,725,629 — 2,725,629 2,311,802
Total governmental activities 23,955,746 1,011,153 5,611,754 346,427 (16,986,412) — (16,986,412) — (16,986,412) (18,700,624)
Business-type activities:
Municipal solid waste collection and
disposal 3,287,702 4,465,387 21,847 — — 1,199,532 1,199,532 — 1,199,532 603,320
Hospital facilities 1,201,971 1,384,272 — — — 182,301 182,301 — 182,301 (27,878)
Long Term Care Center 960,008 1,043,628 — — — 83,620 83,620 — 83,620 85,443
Kodiak Fisheries Research Center 1,571,643 820,167 5,513 — — (745,963) (745,963) — (745,963) (586,684)
911 service 300,060 — — — — (300,060) (300,060) — (300,060) (255,617)
Total business-type activities 7,321,384 7,713,454 27,360 — — 419,430 419,430 — 419,430 (181,416)
Total primary government 31,277,130 8,724,607 5,639,114 346,427 (16,986,412) 419,430 (16,566,982) — (16,566,982) (18,882,040)
Component unit:
School District $ 48,146,693 222,479 8,709,821 80,814 (39,133,579) (39,133,579) (39,832,692)
General revenues:
Property taxes 16,660,329 — 16,660,329 — 16,660,329 16,045,148
Grants and entitlements not restricted to specific programs 4,265,899 — 4,265,899 32,639,661 36,905,560 36,660,645
Land sales 19,002 — 19,002 — 19,002 27,955
Severance taxes 1,285,669 — 1,285,669 — 1,285,669 310,482
Excise taxes 425,444 — 425,444 — 425,444 1,929,409
Support from primary government — — — 9,890,244 9,890,244 9,377,500
Investment earnings 2,196,169 622,256 2,818,425 — 2,818,425 351,726
Other 117,278 375,891 493,169 35,393 528,562 772,899
Transfers (45,000) 45,000 — — — —
Total general revenues and transfers 24,924,790 1,043,147 25,967,937 42,565,298 68,533,235 65,475,764
Change in net position 7,938,378 1,462,577 9,400,955 3,431,719 12,832,674 6,761,032
Net position, at beginning of year 131,674,958 49,663,803 181,338,761 (22,573,167) 158,765,594 152,004,562
Net position, at end of year $139,613,336 51,126,380 190,739,716 (19,141,448) 171,598,268 158,765,594
See accompanying notes to financial statements.
KODIAK ISLAND BOROUGH
Statement of Activities
Year ended June 30, 2019
(With summarized financial information for the year ended June 30, 2018)
29
Education Other
Education Debt Service Governmental
Assets General Support Facilities Fund Funds 2019 2018
Assets:
Equity in central treasury $ 3,472,694 14,343,474 40,318,331 472,707 11,503,027 70,110,233 62,663,220
Receivables:
State of Alaska — 71,242 — 52,261 14,314 137,817 128,089
Federal government — — — — 251,409 251,409 231,570
Property taxes, net of
allowance of $17,070 46,384 161,211 — 41,814 42,471 291,880 427,086
Severance taxes 261,503 — — — — 261,503 288,482
Excise taxes 100,377 — — — — 100,377 122,130
Interest 392,042 — — — — 392,042 300,209
Land sales contracts, due within one year — — — — 16,214 16,214 17,970
Accounts and other
receivables, net 25,377 — — — 69,224 94,601 132,017
Prepaid items 67,562 — — — 1,311 68,873 37,889
Due from other funds 1,536,802 — — — — 1,536,802 780,305
Land sales contracts, due after one year — — — — 113,957 113,957 169,875
Total assets $5,902,741 14,575,927 40,318,331 566,782 12,011,927 73,375,708 65,298,842
Liabilities:
Accounts payable 212,454 — — — 269,081 481,535 1,862,275
Accrued compensation
and related liabilities 273,732 — — — — 273,732 366,972
Customer deposits — — — — 2,450 2,450 2,450
Due to component unit — 14,473,811 — — — 14,473,811 9,397,741
Due to other funds — — — — 1,476,723 1,476,723 709,233
Unearned revenues 717 — — — 37,248 37,965 33,161
Total liabilities 486,903 14,473,811 — — 1,785,502 16,746,216 12,371,832
Deferred inflows of resources:
Unavailable revenues 55,414 132,958 — 33,311 162,325 384,008 576,311
Total liabilities and deferred
inflows of resources 542,317 14,606,769 — 33,311 1,947,827 17,130,224 12,948,143
Fund balances (deficit):
Nonspendable 67,562 — — — 1,311 68,873 37,889
Committed — — 40,318,331 533,471 5,010,602 45,862,404 43,876,363
Assigned — — — — 5,899,049 5,899,049 5,588,158
Unassigned 5,292,862 (30,842) — — (846,862) 4,415,158 2,848,289
Total fund balances (deficit) 5,360,424 (30,842) 40,318,331 533,471 10,064,100 56,245,484 52,350,699
Total liabilities, deferred inflows
of resources and fund balances $5,902,741 14,575,927 40,318,331 566,782 12,011,927 73,375,708 65,298,842
See accompanying notes to financial statements.
Liabilities, Deferred Inflows of Resources,
and Fund Balances (Deficit)
KODIAK ISLAND BOROUGH
Totals
Governmental Funds
Special Revenue Funds
(With summarized financial information for June 30, 2018)
June 30, 2019
Balance Sheet
30
Amount reported as fund balances on the governmental funds balance sheet $ 56,245,484
Amounts reported for governmental activities in the statement of net
position are different because:
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds.162,564,781
Long-term receivables, delinquent property taxes and loans are
not available to pay for current-period expenditures and,
therefore, are unavailable in the funds:
Property taxes $253,837
Notes receivable - land sales 130,171 384,008
Long-term liabilities, including bonds payable, are not due and
payable in the current period and therefore are not reported
in the funds:
General obligation bonds payable (66,335,000)
Bond premium (6,854,089)
Accrued interest expense (1,037,046)
Compensated absences (139,441) (74,365,576)
Changes in deferred inflows and outflows of resources are the results
of timing differences in the actuarial report:
Pension and OPEB related assets in the current fiscal year are presented
as deferred outflows of resources 930,748
Pension and OPEB related liabilities in the current fiscal year are presented
as deferred inflows of resources (499,229)
Proportionate share of the collective net pension and OPEB liabilities (5,646,880)
Net position of governmental activities $ 139,613,336
See accompanying notes to financial statements.
KODIAK ISLAND BOROUGH
Reconciliation of Net Position Between the
June 30, 2019
Government-Wide Financial Statements and the Fund Financial Statements
31
Education Other
Education Debt Service Governmental
General Support Facilities Fund Funds 2019 2018
Revenues:
Property taxes and assessments $1,919,598 9,795,956 — 2,598,320 2,481,084 16,794,958 16,002,128
Transient accommodations tax — — — — 78,971 78,971 113,486
Severance taxes 1,206,698 — — — — 1,206,698 1,815,923
Excise taxes 425,444 — — — — 425,444 310,482
Intergovernmental:
State sources 2,599,004 220,392 — 5,226,069 83,178 8,128,643 6,975,473
Federal sources 1,804,037 — — — 343,535 2,147,572 2,067,113
Charges for services 1,458 — — — 845,654 847,112 878,699
Licenses, permits and fees 130,441 — — — 33,600 164,041 99,660
Investment income 211,630 — 1,625,077 1,213 358,249 2,196,169 281,855
Rental — — — — 12,000 12,000 14,400
Other 13,752 — — — 81,711 95,463 290,343
Total revenues 8,312,062 10,016,348 1,625,077 7,825,602 4,317,982 32,097,071 28,849,562
Expenditures:
Current:
General government 4,487,141 — — 7,726 813,502 5,308,369 5,715,946
Public safety 115,800 — — — 599,026 714,826 798,514
Community and
economic development 1,094,668 — — — 89,130 1,183,798 1,177,198
Emergency preparedness 14,307 — — — — 14,307 43,038
Health and social welfare 182,900 — — — — 182,900 207,500
Education, culture
and recreation 20,472 — — — — 20,472 4,665
Parks and recreation 57,096 — — — — 57,096 77,186
Service district maintenance — — — — 569,610 569,610 587,707
Primary and secondary education 50,000 9,920,576 — — — 9,970,576 9,449,500
Capital outlay:
Schools — — — — 2,092,006 2,092,006 2,958,053
General — — — — 991,403 991,403 2,029,456
Debt service:
Principal — — — 4,425,000 — 4,425,000 3,870,000
Interest — — — 3,253,414 — 3,253,414 3,408,310
Debt issuance costs — — — 10,000 — 10,000 —
Total expenditures 6,022,384 9,920,576 — 7,696,140 5,154,677 28,793,777 30,327,073
Excess (deficiency) of revenues
over expenditures 2,289,678 95,772 1,625,077 129,462 (836,695) 3,303,294 (1,477,511)
Other financing sources (uses):
Land sale proceeds — — — — 76,676 76,676 224,902
Proceeds from sale of capital assets 4,815 — — — 5,000 9,815 1,240
Proceeds from sale of bonds — — — — 550,000 550,000 —
Transfers in 142,177 — — 338,982 1,305,553 1,786,712 1,189,104
Transfers out (265,200) — (677,965) (142,177) (746,370) (1,831,712) (1,234,104)
Net other financing
sources (uses)(118,208) — (677,965) 196,805 1,190,859 591,491 181,142
Change in fund balances 2,171,470 95,772 947,112 326,267 354,164 3,894,785 (1,296,369)
Fund balances (deficit),
at beginning of year 3,188,954 (126,614) 39,371,219 207,204 9,709,936 52,350,699 53,647,068
Fund balances (deficit), at end of year $ 5,360,424 (30,842) 40,318,331 533,471 10,064,100 56,245,484 52,350,699
See accompanying notes to financial statements.
Totals
Special Revenue Funds
KODIAK ISLAND BOROUGH
Statement of Revenues, Expenditures and Changes
in Fund Balances (Deficit)
Governmental Funds
Year ended June 30, 2019
(With summarized financial information for the year ended June 30, 2018)
32
KODIAK ISLAND BOROUGH
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit)
Year ended June 30, 2019
Change in fund balances – total governmental funds $ 3,894,785
Amounts reported for governmental activities in the statement of
activities are different because:
Governmental funds report capital outlays as expenditures.
However, in the Statement of Activities the cost of those assets
is allocated over their estimated useful lives and reported as
depreciation expense:
Capital outlay $3,365,360
Depreciation expense (4,118,702) (753,342)
Governmental funds only report the revenue from the sale of
assets to the extent proceeds are received from the sale. In
the Statement of Activities, a gain or loss is reported for each
sale or disposal. The net effect of transactions involving capital
assets is to decrease net position.
Cost of assets disposed (100,000)
Accumulated depreciation of assets disposed 100,000 —
Certain revenues in the statement of activities do not provide
current financial resources and are reported as unearned or
unavailable revenues in the funds:
Property tax 253,837
Land sale proceeds 130,171 384,008
Certain revenues that were earned in a prior year provide
current financial resources:
Accrued property tax (388,466)
Land sale contracts (187,845) (576,311)
The issuance of long-term debt provides current financial
resources to governmental funds, while the repayment of the
principal of long-term debt consumes the current financial
resources of governmental funds. Neither transaction, however,
has any effect on net position. Also, governmental funds do not
report the accrual of interest expense on debt when it is not
payable from currently available resources:
Interest expenditures applied to accrued interest 68,571
Issuance of long term debt (550,000)
Principal repayments 4,425,000
Bond premium amortization 684,403 4,627,974
Some expenses reported in the Statement of Activities do not
require the use of current financial resources and; therefore,
are not reported as expenditures in governmental funds:
Change in compensated absences 80,040
Change in the proportionate share of the unfunded
net pension and OPEB liabilities (396,577)
Changes in deferred inflows and outflows of resources are the result
of timing difference in the actuarial report and adjustments to reflect
employer and non-employer contributions based on the measurement
date of the liabilities.677,801
Change in net position of governmental activities $
7,938,378
See accompanying notes to financial statements.
of Governmental Funds to the Statement of Activities
33
Municipal Kodiak Other
Solid Waste Fisheries Nonmajor
Collection and Hospital Long Term Research Enterprise Totals
Disposal Facilities Care Center Center Fund 2019 2018
Current assets:
Equity in central treasury $7,319,653 3,868,586 2,516,352 2,367,069 76,102 16,147,762 14,369,530
Restricted cash and equivalents 307,803 — 1,000,442 — — 1,308,245 1,285,575
Customer receivables 387,682 — — 80,065 35,585 503,332 540,492
Current portion of note receivable — — — 122,398 — 122,398 118,194
Total current assets 8,015,138 3,868,586 3,516,794 2,569,532 111,687 18,081,737 16,313,791
Inventories 380,038 — — — — 380,038 380,038
Capital assets:
Non-depreciable 31,013,238 30,866 — 335,139 — 31,379,243 30,575,249
Depreciable, net 1,926,909 12,494,577 13,967,943 7,435,073 — 35,824,502 38,390,452
Total capital assets 32,940,147 12,525,443 13,967,943 7,770,212 — 67,203,745 68,965,701
Notes receivable — — — 1,274,809 — 1,274,809 1,397,207
Total noncurrent assets 33,320,185 12,525,443 13,967,943 9,045,021 — 68,858,592 70,742,946
Pension and OPEB deferrals 178,748 — — 71,840 — 250,588 176,079
Total assets and deferred
outflows of resources $41,514,071 16,394,029 17,484,737 11,686,393 111,687 87,190,917 87,232,816
Current liabilities:
Accounts payable $170,717 20,372 — 32,230 111,668 334,987 414,591
Customer deposits 42,459 — — 4,431 — 46,890 60,468
Current portion of accrued
compensation and related liabilities 13,356 — — 4,720 — 18,076 23,990
Unearned revenues — 115,356 86,894 3,600 — 205,850 202,325
Interest payable 87,648 — 36,815 — — 124,463 132,421
Current portion of notes and bonds payable 1,111,283 — 577,804 — — 1,689,087 1,659,087
Due to other funds 42,074 5,850 — 12,155 — 60,079 71,072
Total current liabilities 1,467,537 141,578 701,513 57,136 111,668 2,479,432 2,563,954
Noncurrent liabilities:
Accrued compensation and
related liabilities 51,348 — — 15,595 — 66,943 89,700
Notes payable 15,917,250 — 10,191,459 — — 26,108,709 27,797,797
Accrual for landfill closure
and postclosure costs 5,830,000 — — — — 5,830,000 5,535,000
Net pension and OPEB liability 1,075,520 — — 387,710 — 1,463,230 1,353,775
Total noncurrent liabilities 22,874,118 — 10,191,459 403,305 — 33,468,882 34,776,272
Total liabilities 24,341,655 141,578 10,892,972 460,441 111,668 35,948,314 37,340,226
Deferred inflows of resources -
Pension and OPEB deferrals 92,898 — — 23,325 — 116,223 228,787
Net position:
Net investment in capital assets 15,911,614 12,525,443 3,198,680 7,770,212 — 39,405,949 39,508,817
Unrestricted 1,167,904 3,727,008 3,393,085 3,432,415 19 11,720,431 10,154,986
Total net position 17,079,518 16,252,451 6,591,765 11,202,627 19 51,126,380 49,663,803
Total liabilities, deferred inflows
of resources and net position $ 41,514,071 16,394,029 17,484,737 11,686,393 111,687 87,190,917 87,232,816
See accompanying notes to financial statements.
KODIAK ISLAND BOROUGH
Deferred outflows of resources -
of Resources and Net Position
Proprietary Funds - Business - Type Activities - Enterprise Funds
Statement of Net Position
(With summarized financial information for June 30, 2018)
June 30, 2019
Outflows of Resources
Assets and Deferred
Liabilities, Deferred Inflows
34
KODIAK ISLAND BOROUGH
Statement of Revenues, Expenses, and Changes in Net Position
Year ended June 30, 2019
(With summarized financial information for the year ended June 30, 2018)
Municipal Kodiak Other
Solid Waste Fisheries Nonmajor
Collection and Hospital Long Term Research Enterprise Totals
Disposal Facilities Care Center Center Fund 2019 2018
Operating revenues:
Charges for services:
Solid waste disposal $4,465,387 — — — — 4,465,387 3,813,343
Lease income — 1,384,272 1,043,628 820,167 — 3,248,067 3,304,394
Other 4,912 — — 19,745 300,079 324,736 257,051
Total operating revenues 4,470,299 1,384,272 1,043,628 839,912 300,079 8,038,190 7,374,788
Operating expenses:
Personnel services 1,078,751 46,175 — 269,255 1,500 1,395,681 1,447,827
Contracted services 389,331 — 3,150 — — 392,481 299,815
Maintenance and repairs 164,648 — — 43,552 — 208,200 157,466
Depreciation 288,234 1,062,307 518,933 696,476 — 2,565,950 2,596,387
General and administration 467,282 91,314 18,927 357,759 295 935,577 852,502
Miscellaneous — 2,175 — 204,601 — 206,776 279,548
Telephone services — — — — 298,265 298,265 253,984
Recycling services 270,588 — — — — 270,588 259,824
Closure and postclosure costs 295,000 — — — — 295,000 367,702
Contributions 37,040 — — — — 37,040 36,383
Total operating expenses 2,990,874 1,201,971 541,010 1,571,643 300,060 6,605,558 6,551,438
Operating income 1,479,425 182,301 502,618 (731,731) 19 1,432,632 823,350
Nonoperating revenues (expense):
Intergovernmental:
State of Alaska on-behalf payment 21,847 — — 5,513 — 27,360 44,509
Investment income 306,914 101,495 124,262 89,585 — 622,256 69,871
Interest revenue — — — 51,155 51,155 55,214
Interest expense (296,828) — (418,998) — — (715,826) (792,224)
Total nonoperating income (expense)31,933 101,495 (294,736) 146,253 — (15,055) (622,630)
Income before transfers 1,511,358 283,796 207,882 (585,478) 19 1,417,577 200,720
Transfers in — — — 45,000 — 45,000 45,000
Change in net position 1,511,358 283,796 207,882 (540,478) 19 1,462,577 245,720
Net position, at beginning of year 15,568,160 15,968,655 6,383,883 11,743,105 — 49,663,803 49,418,083
Net position, at end of year $ 17,079,518 16,252,451 6,591,765 11,202,627 19 51,126,380 49,663,803
See accompanying notes to financial statements.
Proprietary Funds - Business - Type Activities - Enterprise Funds
35
Municipal
Solid Waste Kodiak Other
Collection Long Term Fisheries Nonmajor
and Hospital Care Research Enterprise Totals
Disposal Facilities Center Center Fund 2019 2018
Cash flows from operating activities:
Cash received from customers $4,467,874 1,384,272 1,043,553 986,264 301,528 8,183,491 7,427,328
Payments to suppliers (1,353,548) (95,994) (22,077) (605,881) (351,031) (2,428,531) (1,720,593)
Payments to employees (1,172,139) (46,175) — (282,156) (1,500) (1,501,970) (1,493,090)
Net cash provided (used) by
operating activities 1,942,187 1,242,103 1,021,476 98,227 (51,003) 4,252,990 4,213,645
Cash flows from noncapital financing activities:
State sources - grants 21,847 — — 5,513 — 27,360 44,509
Net change in interfund receivable/payable (14,011) 4,881 — (1,863) — (10,993) 71,072
Transfers in — — — 45,000 — 45,000 45,000
Net cash provided (used) by noncapital
financing activities 7,836 4,881 — 48,650 — 61,367 160,581
Cash flows from capital and related
financing activities:
Acquisition and construction of capital assets (782,359) (582) — (21,053) — (803,994) (449,482)
Interest paid on notes payable and
interfund borrowings (303,513) — (420,271) — — (723,784) (1,119,343)
Principal payments on notes payable
and interfund borrowings (1,101,284) — (557,804) — — (1,659,088) (1,639,088)
Proceeds from issuance of notes payable — — — — — — 81,376
Net cash provided (used) by capital and
related financing activities (2,187,156) (582) (978,075) (21,053) — (3,186,866) (3,126,537)
Cash flows from investing activities:
Interest and dividends received 306,914 101,495 124,262 140,740 — 673,411 125,085
Net change in cash and
cash equivalents 69,781 1,347,897 167,663 266,564 (51,003) 1,800,902 1,372,774
Cash and equivalents, at beginning of year 7,557,675 2,520,689 3,349,131 2,100,505 127,105 15,655,105 14,282,331
Cash and equivalents, at end of year $ 7,627,456 3,868,586 3,516,794 2,367,069 76,102 17,456,007 15,655,105
Reconciliation of cash and cash equivalents
to the Statement of Net Position:
Equity in central treasury $ 7,319,653 3,868,586 2,516,352 2,367,069 76,102 16,147,762 14,369,530
Restricted cash and equivalents 307,803 — 1,000,442 — — 1,308,245 1,285,575
$7,627,456 3,868,586 3,516,794 2,367,069 76,102 17,456,007 15,655,105
Reconciliation of operating income (loss) to net
cash provided by operating activities:
Operating income (loss)$1,479,425 182,301 502,618 (731,731) 19 1,432,632 823,350
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation 288,234 1,062,307 518,933 696,476 — 2,565,950 2,596,387
Pension expense (61,972) — — (15,646) — (77,618) (59,187)
Accrual for landfill closure and
postclosure costs 295,000 — — — — 295,000 331,000
Changes in assets and liabilities that
provided (used) cash:
(Increase) decrease in assets:
Customer receivables 15,584 — — 20,127 1,449 37,160 (119,143)
Inventories — — — — — — 313,709
Notes receivable — — — 118,194 118,194 114,135
Increase (decrease) in liabilities:
Accounts payable (24,659) (2,505) — 31 (52,471) (79,604) 141,922
Customer deposits (18,009) — — 4,431 — (13,578) 10,500
Accrued compensation (31,416) — — 2,745 — (28,671) 13,924
Unearned revenues — — (75) 3,600 — 3,525 47,048
Net cash provided (used) by
operating activities $1,942,187 1,242,103 1,021,476 98,227 (51,003) 4,252,990 4,213,645
See accompanying notes to financial statements.
Proprietary Funds - Business - Type Activities - Enterprise Funds
(With summarized financial information for the year ended June 30, 2018)
Year ended June 30, 2019
Statement of Cash Flows
KODIAK ISLAND BOROUGH
36
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
Year Ended June 30, 2019
37
(1) Summary of Significant Accounting Policies
(a) Reporting Entity
The Kodiak Island Borough (the Borough), Alaska, was organized to perform the municipal duties
allowed by Alaska Statutes and as directed by its residents. As required by accounting principles
generally accepted in the United States of America, these financial statements present the government
and its component unit, an entity for which the government is considered to be financially accountable.
The discretely presented component unit is reported in a separate column in basic financial statements
to emphasize it is legally separate from the government. The Borough reviewed its relationship with
other organizations and determined that the following organization is a component unit.
Discretely Presented Component Unit
The Kodiak Island Borough School District (KIBSD) is a legally separate governmental entity, which
is responsible for public education within the Borough. Members of the School Board are elected by
the voters; however, the Borough imposes its will over KIBSD because the Borough Assembly has
the authority to approve and/or alter the total budget of KIBSD. The Borough also must levy the
necessary taxes, and issue bonds for KIBSD. KIBSD has a June 30 fiscal year end, therefore, the
financial information presented in these financial statements is as of and for the fiscal year ended June
30, 2019.
Complete financial statements for the component unit may be obtained at the entity’s administrative
offices for the Kodiak Island Borough School District.
Kodiak Island Borough School District
722 Mill Bay Road
Kodiak, Alaska 99615
(b) Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the activities of the primary government and its component unit.
For the most part, the effect of inter-fund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business type activities, which rely to a significant extent on fees and charges
for support. Likewise, the primary government is reported separately from the legally separate
component unit for which the primary government is financially accountable.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
38
The statement of activities demonstrates the degree to which the direct expenses of a given function
or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with
a specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds, if applicable, are reported as
separate columns in the fund financial statements.
Deferred inflows of resources are the acquisition of fund balance / net position by the Borough that
are applicable to a future reporting period. Deferred outflows of resources are the consumption of
fund balance / net position that are applicable to a future reporting period.
(c) Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have
been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as
they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the government considers revenues to be available if they are collected within 60 days
of the end of the current fiscal period except for grant revenues which are recognized when the related
expenditure is incurred irrespective of when the cash is received. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well
as expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property taxes and interest associated with the current fiscal period are all considered to be susceptible
to accrual and have been recognized as revenues of the current fiscal period. All other revenue items
are considered to be measurable and available only when cash is received by the government.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
39
The government reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another fund.
The Education Support Special Revenue Fund accounts for property taxes and assessments
dedicated to the Kodiak Island Borough School District in support of primary and secondary
education services.
The Facilities Special Revenue Fund accounts for the proceeds from the sale of Shuyak Island.
The single most important goal is to preserve the principal of the fund. Interest earnings, after
inflation proofing, can be used for debt service, building insurance and capital projects.
The Education Debt Service Fund was established to finance and account for the payment of
interest and principal on all general obligation debts, serial and term, other than that payable
exclusively from special assessments and revenue debt issued for and serviced by a government
enterprise fund.
The government reports the following major proprietary funds:
The Municipal Solid Waste Collection and Disposal Fund accounts for the collection and disposal
of solid waste and metal recycling services for the Kodiak Island Borough and debt service
payments on related debt.
The Hospital Facilities Fund accounts for rents on the Borough owned hospital and other hospital
related revenue.
The Long Term Care Center Fund was created in fiscal year 2017 to account for the rents on the
Borough owned Long Term Care Center and debt service payments on related debt. These
activities were accounted for in the Hospital Facilities Fund until completion of the Long Term
Care Center.
The Kodiak Fisheries Research Center Fund accounts for rents and expenses on the Borough
owned Kodiak Fisheries Research Center. Multiple tenants pay lease funds to participate in this
multi-agency research facility committed to the preservation of the North Pacific marine
ecosystem and resources.
As a general rule the effect of inter-fund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are charges between various functions of the
government. Elimination of these charges would distort the direct costs and program revenues reported
for the various functions concerned.
Amounts reported as program revenues include (1) charges to customers or applicants for goods,
services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and
contributions. Internally dedicated resources are reported as general revenues rather than as program
revenues. Likewise, general revenues include all taxes.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
40
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues
of the enterprise funds are charges to customers for sales and services and lease revenues. Operating
expenses for enterprise funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
(d) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Fund
Balance/Net Position
Cash and Investments
Cash and temporary investments of Borough funds are pooled in a central treasury. Each fund’s portion
of this pool is displayed on the Balance Sheet and Statement of Net Position as “Equity in Central
Treasury”.
The Borough participates in the Alaska Municipal League Investment Pool (AMLIP). AMLIP is not
SEC registered and is unrated. Alaska Statute 37.23 establishes regulatory oversight of the pool. The
law sets forth numerous requirements regarding authorized investments and reporting. The pool is
incorporated in the State of Alaska as a nonprofit corporation and reports to its Board of Directors.
Alaska Statute 37.23.050 requires the retention of an investment manager.
The AMLIP manager is required to produce monthly disclosure statements to the pool. The pool has
also retained an investment advisor to monitor the performance of the investment manager and to
ensure compliance with investment policies. All participation in the pool is voluntary. The pool must
maintain a dollar weighted average maturity of 90 days or less, and only purchase instruments having
remaining maturities of 397 days or less. On a monthly basis, the investments in the pool are reviewed
for fair value by an independent pricing service.
All highly liquid investments, excluding restricted assets, with original maturities of ninety days or
less are considered to be cash equivalents. For purposes of the Statements of Cash Flows, equity in
central treasury held by enterprise funds are treated as cash equivalents.
Investments for the government, as well as the component unit, are reported at fair value, as determined
by quoted market prices. The reported value of the pool is the same as the fair value of the pool shares.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
41
Fair Value of Financial Instruments
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The following financial instruments
are recorded at fair value or at amounts that approximate fair value: (1) cash and cash equivalents, (2)
receivables, net, (3) certain other current assets, (4) accounts payable, and (5) other current liabilities.
The carrying amounts reported in the Balance Sheet and Statement of Net Position for the above
financial instruments closely approximates their fair value due to the short-term nature of these assets
and liabilities, except for the Borough’s investments. The carrying amount of the Borough’s
investments are determined based on quoted market prices.
The carrying amount of notes receivable and notes payable approximates fair value for those financial
instruments with interest at variable rates, as those rates approximate current market rates for notes
with similar maturities and credit quality.
Receivables and Payables
Activity between funds that are representative of lending /borrowing arrangements outstanding at the
end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of
inter-fund loans) or “advances to/from other funds” (i.e., the noncurrent portion of inter-fund loans).
Any residual balances outstanding between the governmental activities and business type activities are
reported in the government wide financial statements as “internal balances.”
Advances between funds, as reported in the fund financial statements, are offset by a fund balance
reserve account in applicable governmental funds to indicate that they are not available for
appropriation and are not expendable available financial resources.
Inventories and Prepaid Items/Expenses
Enterprise Fund inventories consist of cover rock that will be used to close cells at the Municipal Solid
Waste Landfill. Inventories are stated at cost (first-in, first-out) and are recorded as expenses when
used (consumption method).
Payments made to vendors for services that are applicable to future accounting periods are recorded
as prepaid items. The prepaid assets do not reflect current available resources and, thus, an equivalent
portion of fund balance is classified as nonspendable in the fund financial statements. Prepaid items
and expenses are based on the consumption method.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
42
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, street
lights, and similar items including those acquired prior to fiscal years ended after June 30, 1980), are
reported in the applicable governmental or business-type activities columns in the government-wide
financial statements. Capital assets are defined by the Borough as assets with an initial, individual cost
of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such
assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated
capital assets are recorded at acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business type activities is included as part
of the capitalized value of the assets constructed. There was no interest capitalized during the year.
Property, plant, and equipment of the primary government is depreciated using the straight line method
over the following estimated useful lives:
Buildings and improvements 10-40 years
Improvements other than buildings 10-15 years
Equipment 5-10 years
Infrastructure 40 years
Compensated Absences
It is the Borough’s policy to permit employees to accumulate earned but unused annual leave benefits.
All annual leave pay is accrued when incurred in the government wide and proprietary fund financial
statements. A liability for these amounts is reported in governmental funds only if they have matured,
for example, as a result of employee resignations and retirements.
Long-term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are
reported as liabilities in the applicable governmental activities, business type activities, or proprietary
fund Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life
of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond
premium or discount. Bond issuance costs are expensed in the year incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures. Interest on
long-term obligations is recorded as an expenditure when due.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
43
Pension and Other Postemployment Benefits (OPEB)
For purposes of measuring the net pension and OPEB liabilities, deferred outflows of resources and
deferred inflows of resources related to pension and OPEB plans, and pension and OPEB expense,
information about the fiduciary net position of the Public Employees’ Retirement System (PERS) and
additions to/from PERS’s fiduciary net position have been determined on the same basis as they are
reported by PERS. For this purpose, benefit payments (including refunds of employee contributions)
are recognized when due and payable in accordance with the benefit terms, investments are reported
at fair value.
Net Position
Government-wide net position is divided into three components:
Net investment in capital assets – consists of the historical cost of capital assets less
accumulated depreciation and less any debt that remains outstanding that was used to finance
those assets plus deferred outflows of resources less deferred inflows of resources related to
those assets.
Restricted net position – consists of assets that are restricted by the Borough’s creditors (for
example, through debt covenants), by the state enabling legislation (through restrictions on
shared revenues), by grantors (both federal and state), and by other contributors.
Unrestricted – all other net position is reported in this category.
Fund Balance
In the Fund Financial Statements, fund balance includes five classifications as follows:
Nonspendable Fund Balance – amounts that are legally or contractually required to be maintained
intact (such as the corpus of an endowment fund) or amounts that are not in a spendable form (such as
inventory, prepaid expenses, supplies, and long-term receivables). Such constraint is binding until the
legal or contractual requirement is repealed or the amounts become spendable.
Restricted Fund Balance – amounts constrained to specific purposes by their providers (such as
grantors and higher levels of government), through constitutional provisions, or by enabling
legislation. Such constraint is binding unless modified or rescinded by external body, laws, or
regulation.
Committed Fund Balance – amounts that can be used only for the specific purposes determined by a
formal action of the Borough Assembly, the Borough’s highest level of decision-making authority.
Commitments may be changed or lifted by the Assembly taking the same formal action that imposed
the constraint originally. The formal action that is required to be taken to establish, modify or rescind
a fund balance commitment is for the Assembly to pass a resolution.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
44
Assigned Fund Balance – amounts that are constrained by the Borough for specific purposes. In
governmental funds other than the General Fund, assigned fund balance represents the amount that is
not restricted or committed, but constrained for a specific purpose. Assignment of fund balance is
made by the Borough Assembly or its designee, the Finance Director. Such constraint is binding
unless modified or eliminated by the Borough Assembly or Finance Director. Assignment of fund
balance is made during the budget process and reviewed at the end of the fiscal year. Assigned fund
balance represents amounts constrained for capital project funds and was assigned by the Finance
Director.
Unassigned Fund Balance – amounts not contained in the other classifications and available for any
purpose. Positive unassigned amounts will be reported only in the General Fund. If another
governmental fund, other than the General Fund, has a fund balance deficit, then it will be reported as
a negative amount in the unassigned classification in that fund.
The order of spending, regarding the restricted and unrestricted fund balance when an expenditure is
incurred for which both restricted and unrestricted fund balance is available should first reduce
restricted fund balance and then unrestricted fund balance. The order of spending regarding
unrestricted fund balance is that committed amounts should be reduced first, followed by the assigned
amounts, and then the unassigned amounts when expenditures are incurred for purposes for which
amounts in any of those unrestricted fund balance classifications could be used.
Compliance with the provisions of the Fund Balance Classification Policy are reviewed as part of the
annual budget adoption process. The Finance Director reports to the Assembly as close to the end of
the year as possible the anticipated year-end fund balance or deficit. The Assembly takes appropriate
action to commit or assign, or otherwise allocate prior year fund balances as a part of the budget
planning process.
The Borough’s Special Revenue Funds are used to account for Borough support, fire and road service
areas, federal and state grant programs, street lighting, and operations and maintenance programs that
are restricted or committed.
(e) Revenues, Expenditures, and Expenses
Property Taxes
Property taxes are based on the assessed value of taxable property as of January 1. Pursuant to Alaska
Statute 29.45.240, the Borough establishes the mill rate on or before June 15th. Tax bills are then
mailed on or before July 1st.
Taxes are due when billed and generally become delinquent on or after October 16th. The Borough
code also provides for split payments. If a taxpayer avails himself of this provision, one-half must be
paid on or before August 15th and the remainder becomes due on or before November 15th (in lieu of
October 15th). Borough property tax revenues are recognized in the fiscal year in which they are
levied.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
45
All taxes are delinquent on November 16th, and a tax foreclosure process may commence as outlined
in Alaska Statutes Title 29. Briefly, this entails the petition for Judgment of Foreclosure signed by the
Borough Court Judge and the publication of all delinquent taxes in the local newspaper for four
consecutive weeks.
Real property tax liens are enforced by one general foreclosure proceeding against the delinquent
properties.
Prior to FY2012 all area wide property taxes were deposited into the General Fund and then transferred
to the other area wide funds. As of FY2012 the Borough has set a separate mill rate for each area wide
function that was funded by property taxes. For FY2019 the Borough set a mill rate of 1.10 mills for
the General Fund, 7.05 mills for the Education Support Special Revenue Fund, 1.87 mills for the
Education Debt Service Fund, and 0.73 mills for the Renewal and Replacement Projects Capital
Project Fund for a total area wide mill rate of 10.75. This was the same mill rate as FY2018.
Severance Taxes
Severance taxes are based on the amount and value of natural resources severed from the environment.
Types of resources taxed include seafood, gravel and mineral resources, and timber. Severance tax
returns are sent to appropriate companies (as determined by the Borough Assessor) and are returned
to the Borough Finance Department. The returns are filed quarterly, and are due by the end of the
month following the quarter’s end. Borough severance tax revenues are recognized in the fiscal year
in which they become measurable and available.
Excise Taxes
Excise taxes are based on the quantity of tobacco brought into the Borough and the quantity of
marijuana cultivated for sale. Quarterly excise tax returns for tobacco are due by the end of the month
following the quarter’s end and monthly excise reports for marijuana are due by the end of the month
for the previous month. Borough excise tax revenues are recognized in the fiscal year in which they
become measurable and available.
Intergovernmental Revenue
State shared revenues, safe communities, State education related entitlement programs and State levied
taxes, the proceeds of which are distributed to local governments, are recorded in the fiscal year to
which they relate, including accrual at year end if final payments due are measurable and received
within approximately two months after year end.
State of Alaska and Federal government cost reimbursable grants and contracts are recorded to the
extent of allowable expenditures in the period in which the expenditures were incurred.
When both restricted and unrestricted resources are available for use for governmental activities, it is
the Borough’s policy to use restricted resources first, then unrestricted resources as they are needed.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
46
Operating and Nonoperating Revenue and Expenses
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues
of the Municipal Solid Waste Collection and Disposal Fund are charges to customers for services. The
principal operating revenues of the Hospital Facilities Fund, Long Term Care Center Fund, and the
Kodiak Fisheries Research Center Fund are rents from customers. The principal operating revenues
for the 911 Service Fund are surcharges collected on phone lines. Operating expenses for proprietary
funds include costs of services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
Revenue from Investments and Property
Amounts earned on investment of available cash balances and the rental of building facilities are
recorded in the period to which they relate, including accrual at year end of the balance due, and
unrealized gains and losses on investments held at fiscal year end.
Land Sales Proceeds and Other Local Revenues
Amounts received pursuant to land sale contracts are recorded on the modified accrual basis in the
fund financial statements and the accrual basis in the government-wide financial statements.
Other local revenues are recorded on a basis consistent with their nature in relation to measurement
and availability standards.
(f) Cash Flows
All highly liquid investments, excluding restricted assets, with original maturities of three months or
less are considered cash equivalents for purposes of the statement of cash flows.
(g) Use of Estimates
Preparation of financial statements in accordance with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the
amounts reported in these financial statements. Actual results may differ from the estimates.
Significant estimates include the allowance for doubtful accounts, the useful lives of assets and related
accumulated depreciation, accrued landfill closure and post-closure care costs, and the net pension and
OPEB liabilities and related deferred outflows and inflows of resources.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
47
(2) Stewardship, Compliance, and Accountability
(a) Excess of Expenditures over Appropriations
The following fund expenditures or operating expenses exceeded their budget:
Fund Excess
General Fund:
General administration $ 42,484
Borough manager 7,023
Borough clerk 6,539
Engineering/facilities department 69,411
Special Revenue Funds:
Education Support 30,332
L.E.P.C. 644
Tourism Development 1,630
Enterprise Fund:
911 Service Fund 50,060
(b) Deficit Fund Equity
The individual fund deficits at June 30, 2019, are as follows:
Education Support Special Revenue Fund $ 30,842
School Renewal and Replacement Facilities
Bond Projects Capital Projects Fund $ 846,862
The deficit in these funds will be funded by transfers from the General Fund in FY2020.
(3) Cash and Investments
A portion of the Borough’s investments are in the Alaska Municipal League Investment Pool (AMLIP). The
investment in AMLIP represents the Borough’s share of ownership in the pool rather than ownership of
specific securities. The share value of investments in the AMLIP is approximately equal to fair value. To
obtain a copy of AMLIP’s financial statements contact Key Trust of Alaska at 101 West Benson Blvd.,
Room 412, Anchorage, Alaska 99503.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
48
As of June 30, 2019, the Borough had the following investments:
Investment Maturities (in years)
Fair Less
Investment Type Value than 1 1 to 5 6 +
U.S. Agency Securities:
Federal Home Loan Bank $ 13,071,030 - 12,071,030 1,000,000
Federal Home Loan
Mortgage Corporation 21,881,466 3,844,236 18,037,230 -
Federal Farm Credit Bank
Federal Agriculture
18,002,110 4,989,300 13,012,810 -
Mortgage Corporation 3,004,530 - 3,004,530 -
Federal National Mortgage
Association 6,983,520 6,983,520 - -
U.S. Treasury Notes 1,974,220 - 1,974,220 -
Municipal Obligations 2,297,783 - 62,793 2,234,990
Alaska Municipal League
Investment Pool 8,518,100 8,518,100 - -
Certificates of Deposit 1,510,155 250,305 1,259,850 -
Total investments $ 77,242,914 24,585,461 49,422,463 3,234,990
In addition to the investments listed above, Kodiak Island Borough also had cash equivalents of $10,323,326,
which includes restricted cash of $1,308,245.
The Borough categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value
of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are
significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Borough’s
investments that are classified as Level 2 are valued using third party pricing models provided by investment
brokerages. The Borough has the following recurring fair value measurements as of June 30, 2019:
Total Level 1 Level 2 Level 3
Investments by fair value level:
Debt securities:
U.S. Agency Securities $ 62,942,656 62,942,656 - -
U.S. Treasuries 1,974,220 1,974,220 -
Municipal Obligations 2,297,783 - 2,297,783 -
Total investments at fair value level 67,214,659 64,916,876 2,297,783 -
Investments measured at the net asset value:
Alaska Municipal League
Investment Pool 8,518,100
Investments measured at amortized cost:
Certificates of Deposit 1,510,155
Total investments $ 77,242,914
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
49
Interest Rate Risk
The Borough’s investment policy does not limit investment maturities as a means of managing its exposure
to fair value losses arising from increasing interest rates.
Credit Risk
Statutes authorize the Borough to invest in obligations of the United States, the State of Alaska and its
political subdivisions, savings accounts, certificates of deposit, banker’s acceptances, repurchase
agreements, and such other legal security instruments. The Borough does not have a formal investment
policy that restricts investments based on credit risk.
At June 30, 2019, the Borough’s investments in municipal obligations and U.S. Government agencies or
instruments implicitly guaranteed by the U.S. Government were rated as follows:
Moody’s
AAA 92%
AA3 3%
Not Rated 5%
100%
At June 30, 2019, the Borough’s investments in the Alaska Municipal League Investment Pool were rated
AAAm by Standard & Poor’s and the Borough’s Certificates of Deposit were unrated.
Concentration of Credit Risk
The Borough places no limit on the amount the Borough may invest in any one issuer. At June 30, 2019,
the Borough had 84% percent of its investments in U.S. Government Agency Securities and U.S. Treasury
Notes and 3% in Municipal Obligations.
Custodial Credit Risk – Deposits
The Borough maintains a cash pool that is available for use by all funds. Each fund’s portion of this pool is
reported on the Balance Sheet and Statements of Net Position as “Equity in Central Treasury” or amounts
“due to/from other funds.”
The Borough bank accounts are insured by the Federal Depository Insurance Corporation (FDIC) to a
maximum of $250,000. U.S. Treasury obligations, which are held by Bank of New York in a Tri-party
collateral agreement with Wells Fargo, the pledging financial institution’s agent, in the Borough’s name,
collateralize the remaining bank balance.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
50
Custodial Credit Risk – Investments
For an investment, this is a risk that, in the event of the failure of the counterparty, the Borough will not be
able to recover the value of its investments or collateral securities that are in the possession of an outside
party. The Borough manages its custodial credit risk in investments by requiring collateralization
agreements. The Borough had no debt securities exposed to custodial credit risk at June 30, 2019.
(4) Annual Appropriation to the School District
An annual appropriation is made to the School District. In addition to the annual appropriation, the Borough
provides the School District general liability and property insurance, the annual independent audit, and
grounds maintenance services.
(5) Receivables
Education Education Other Total
General Support Special Debt Governmental Governmental
Fund Revenue Fund Service Fund Funds Funds
Receivables:
Grants $— 71,242 52,261 265,723 389,226
Taxes 425,334 161,211 41,814 42,471 670,830
Interest 392,042 — — — 392,042
Customers and other 25,377 — — 69,224 94,601
Notes receivable — — — 130,171 130,171
Gross receivables 842,753 232,453 94,075 507,589 1,676,870
Less: allowance
for uncollectibles (17,070) — — — (17,070)
Net total receivables $ 825,683 232,453 94,075 507,589 1,659,800
Municipal Kodiak Other
Solid Waste Fisheries Nonmajor Total Total
Collection Research Enterprise Enterprise Primary
and Disposal Center Fund Funds Government
Receivables:
Grants $— — — — 389,226
Taxes — — — — 670,830
Interest — — — — 392,042
Customers and other 387,682 80,065 35,585 503,332 597,933
Notes receivable — 1,397,207 — 1,397,207 1,527,378
Gross receivables 387,682 1,477,272 35,585 1,900,539 3,577,409
Less: allowance
for uncollectibles — — — — (17,070)
Net total receivables $ 387,682 1,477,272 35,585 1,900,539 3,560,339
Enterprise Funds
Governmental Funds
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
51
(6) Note Receivable - General Services Administration (GSA) on-behalf of National Oceanic and
Atmospheric Administration (NOAA)
In April 2016 a lease was executed between the Kodiak Island Borough and GSA which included a debt
repayment portion designed to recoup costs incurred by the Borough to finance construction of the facility.
Monthly payments to the Borough are $14,112 including interest of 3.5%, continuing through March 2029.
As of June 30, 2019, the principal balance due is $1,397,207 and the principal amount due within one year
is $122,398. This note receivable is recorded in the Kodiak Fisheries Research Center Enterprise Fund.
(7) Deferred Inflows of Resources and Unearned Revenues
Governmental funds report deferred inflows of resources in connection with receivables for revenues that
are not considered to be available to liquidate liabilities of the current period. Governmental funds also
report unearned revenues in connection with resources that have been received, but not yet earned. At June
30, 2019, the various components of deferred inflows of resources and unearned revenue reported in the
governmental funds were as follows:
Unavailable Unearned Total
Unavailable taxes receivable $ 253,837 - 253,837
Unavailable land sales receivable 130,171 - 130,171
Grant advances prior to expending all proceeds - 37,965 37,965
Total unavailable/unearned revenue
for governmental funds $ 384,008 37,965 421,973
The remainder of this page left blank intentionally.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
52
(8) Capital Assets
As noted in Footnote (14), the Borough leases the Kodiak Island Hospital and Long Term Care Center to
Sisters of Providence. The value of the leased assets and associated depreciation are reflected in the Hospital
Facilities Fund and Long Term Care Center Fund following.
Capital asset activity for the year ended June 30, 2019 was as follows:
Beginning Ending
Balance Increase Decrease Balance
Governmental activities:
Capital assets, not being
depreciated
Land $ 23,495,458 79,400 - 23,574,858
Construction
work-in-progress 86,335,806 3,218,197 (3,419,742) 86,134,261
Total 109,831,264 3,297,597 (3,419,742) 109,709,119
Capital assets, being
depreciated:
Buildings and improvements 115,822,877 - - 115,822,877
Improvements other than
buildings 24,479,186 3,419,742 - 27,898,928
Equipment 4,133,908 67,763 (100,000) 4,101,671
Infrastructure 5,762,722 - - 5,762,722
Total 150,198,693 3,487,505 (100,000) 153,586,198
Less accumulated
depreciation for:
Buildings and improvements 76,968,986 2,443,152 - 79,412,138
Improvements other than
buildings 12,051,131 1,379,222 - 13,430,353
Equipment 2,422,493 220,405 (100,000) 2,542,898
Infrastructure 5,269,224 75,923 - 5,345,147
Total 96,711,834 4,118,702 (100,000) 100,730,536
Total capital assets
being depreciated, net 53,486,859 (631,197) - 52,855,662
Total governmental
activities, net $ 163,318,123 2,666,400 (3,419,742) 162,564,781
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
53
Beginning Ending
Balance Increase Decrease Balance
Business-type activities:
Municipal Solid Waste Collection
and Disposal Fund capital assets,
not being depreciated
Land $ 1,651,248 - - 1,651,248
Construction work-in-progress 28,579,631 782,359 - 29,361,990
Total 30,230,879 782,359 - 31,013,238
Capital assets, being
depreciated:
Unclassified utility plant in
service 2,178,733 - - 2,178,733
Improvements other than
buildings 3,169,671 - - 3,169,671
Machinery and equipment 2,045,621 - - 2,045,621
Total 7,394,025 - - 7,394,025
Less accumulated
depreciation for:
Unclassified utility plant in
service 1,379,686 42,055 - 1,421,741
Improvements other than
buildings 2,097,562 176,126 - 2,273,688
Machinery and equipment 1,701,634 70,053 - 1,771,687
Total 5,178,882 288,234 - 5,467,116
Total capital assets
being depreciated, net 2,215,143 (288,234) - 1,926,909
Total Municipal Solid
Waste Collection and
Disposal Fund, net $ 32,446,022 494,125 - 32,940,147
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
54
Beginning Ending
Balance Increase Decrease Balance
Hospital Facilities Fund:
Capital assets, not being
depreciated
Artwork $ 16,091 - - 16,091
Land 10,251 - - 10,251
Construction in progress 3,942 582 - 4,524
Total 30,284 582 - 30,866
Capital assets, being
depreciated:
Buildings 33,100,284 - - 33,100,284
Improvements other than
buildings 401,046 - - 401,046
Machinery and equipment 3,627,068 - (22,501) 3,604,567
Total 37,128,398 - (22,501) 37,105,897
Less accumulated
depreciation for:
Buildings 19,715,534 1,048,506 - 20,764,040
Improvements other than
buildings 262,885 12,560 - 275,445
Machinery and equipment 3,593,095 1,241 (22,501) 3,571,835
Total 23,571,514 1,062,307 (22,501) 24,611,320
Total capital assets
being depreciated, net 13,556,884 (1,062,307) - 12,494,577
Total Hospital Facilities
Fund, net $ 13,587,168 (1,061,725) - 12,525,443
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
55
Beginning Ending
Balance Increase Decrease Balance
Long Term Care Center Fund:
Capital assets, being
depreciated:
Buildings $ 15,567,986 - - 15,567,986
Less accumulated
depreciation for:
Buildings 1,081,110 518,933 - 1,600,043
Total capital assets
being depreciated, net 14,486,876 (518,933) - 13,967,943
Total Long Term Care
Fund, net $ 14,486,876 (518,933) - 13,967,943
Kodiak Fisheries Research Center Fund:
Capital assets,
not being depreciated
Construction in progress $ 314,086 21,053 - 335,139
Capital assets, being
depreciated:
Buildings 17,840,410 - - 17,840,410
Improvements other than
buildings 2,385,500 - - 2,385,500
Machinery and equipment 1,187,678 - - 1,187,678
Total 21,413,588 - - 21,413,588
Less accumulated
depreciation for:
Buildings 11,297,164 594,680 - 11,891,844
Improvements other than
buildings 797,195 101,796 - 898,991
Machinery and equipment 1,187,680 - - 1,187,680
Total 13,282,039 696,476 - 13,978,515
Total capital assets
being depreciated, net 8,131,549 (696,476) - 7,435,073
Total Kodiak Fisheries
Research Center Fund,
net $ 8,445,635 (675,423) - 7,770,212
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
56
Beginning Ending
Balance Increase Decrease Balance
Total business-type activities:
Capital assets, not being
depreciated
Artwork $ 16,091 - - 16,091
Land 1,661,499 - - 1,661,499
Construction
work-in-progress 28,897,659 803,994 - 29,701,653
Total 30,575,249 803,994 - 31,379,243
Capital assets, being
depreciated:
Unclassified utility plant in
service 2,178,733 - - 2,178,733
Buildings 66,508,680 - - 66,508,680
Improvements other than
buildings 5,956,217 - - 5,956,217
Machinery and equipment 6,860,367 - (22,501) 6,837,866
Total 81,503,997 - - 81,481,496
Less accumulated
depreciation for:
Unclassified utility plant in
service 1,379,686 42,055 - 1,421,741
Buildings 32,093,808 2,162,119 - 34,255,927
Improvements other than
buildings 3,157,642 290,482 - 3,448,124
Machinery and equipment 6,482,409 71,294 (22,501) 6,531,202
Total 43,113,545 2,565,950 - 45,656,994
Total capital assets
being depreciated, net 38,390,452 (2,565,950) - 35,824,502
Total business-type
activities, net $ 68,965,701 (1,761,956) - 67,203,745
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
57
Depreciation expense was charged to the departments and functions of the primary government as follows :
Governmental activities:
General government $ 513,968
Public safety 240,847
Service district maintenance 75,923
Primary and secondary education 3,287,964
Total – governmental activities $ 4,118,702
Business-type activities:
Municipal solid waste collection and disposal $ 288,234
Hospital facilities 1,062,307
Long Term Care Center 518,933
Kodiak fisheries research center 696,476
Total – business-type activities 2,565,950
Total primary government $ 6,684,652
(9) Interfund Receivables, Payables and Transfers
(a) Interfund Receivables and Payables
Interfund balances at June 30, 2019 consisted of the following:
Due to / from other funds:
Receivable Fund Payable Fund Amount
General Fund Other Governmental Funds $ 1,476,723
General Fund Municipal Solid Waste Collection
and Disposal Enterprise Fund 42,074
General Fund Hospital Facilities Enterprise Fund 5,850
General Fund Kodiak Fisheries Research Center
Enterprise Fund 12,155
Total primary government $ 1,536,802
All interfund balances were short term loans to cover negative cash balances at year end. The
outstanding short term balances between funds result from the time lag between the dates that (1) inter-
fund goods and services are provided or reimbursable expenditures or expenses occur, (2) transactions
are recorded in the accounting system, and (3) payments between funds are made.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
58
(b) Transfers
Interfund transfers have been made in accordance with budget ordinances. Funds are transferred from
one fund to support expenditures of other funds in accordance with the authority established for the
individual fund. Transfers between funds during the year ended June 30, 2019 were as follows:
Transfers In
Governmental Funds
Kodiak
Fisheries
Education Other Research Center
General Debt Service Governmental Enterprise
Transfers Out Fund Fund Funds Fund Total
Major Governmental Funds:
General Fund $ - - 265,200 - 265,200
Facilities Special Revenue Fund - 338,982 338,983 - 677,965
Education Debt Service Fund 142,177 - - - 142,177
Other Governmental Funds - - 701,370 45,000 746,370
Total transfers $ 142,177 338,982 1,305,553 45,000 1,831,712
(The remainder of this page left blank intentionally.)
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
59
A summary of significant transfers are as follows:
The General Fund transferred $265,200 to Borough Capital Projects Fund to fund the re-
construction of the Chiniak Emergency Center.
The Facilities Special Revenue Fund transferred $338,982 to the Education Debt Service Fund
for debt service on Borough bonds.
The Facilities Special Revenue Fund transferred $333,983 to the Renewal and Replacement
Projects Capital Project Fund for future projects.
The Facilities Special Revenue Fund transferred $5,000 to the Building and Grounds Special
Revenue Fund for property insurance costs.
The Education Debt Service Fund transferred $142,177 to the General Fund to repay costs
incurred by the General Fund in previous years as a result of the State of Alaska reducing
School Bond Reimbursements.
The Fire Protection Area No. 1 Fire Service Area Special Revenue Fund transferred $125,000
to the Other Capital Projects Capital Project Fund for capital improvements.
The Women’s Bay Fire Department Service Area Special Revenue Fund transferred $25,000
to the Other Capital Projects Fund for capital improvements.
The Women’s Bay Road Service Area Special Revenue Fund transferred $20,000 to the Other
Capital Projects Fund for the Lake Orbin culvert replacement capital improvement project.
The Building and Grounds Special Revenue Fund transferred $115,000 to Other Capital
Projects Fund to fund the re-construction of the Chiniak Emergency Center.
The Tourism Development Special Revenue Fund transferred $45,000 to the Kodiak Fisheries
Research Center Enterprise Fund for tourism development activities.
The Renewal and Replacement Projects Capital Project Fund transferred $286,370 to the
Buildings and Grounds Special Revenue Fund for the replacement of emergency funds needed
for school repairs.
The Renewal and Replacement Projects Capital Project Fund transferred $130,000 to the
Other Capital Projects Capital Project Fund for the Chiniak emergency shelter re-build.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
60
(10) Long Term Debt
(a) General Obligation Bonds and Other Debt
The Borough issues general obligation bonds and other debt to provide funds for the acquisition
and construction of major capital facilities. General obligation bonds are direct obligations and
pledge the full faith and credit of the Borough. General obligation bonds and other debt
currently outstanding are as follows:
Balance Balance Due Within
July 1, 2018 Additions Reductions June 30, 2019 One Year
Governmental activities:
$8,000,000 2011 Series One
High School Renovation bonds,
due in semi-annual installments
of $330,000 to $595,000 plus
interest at 3.12% to 5.20% through
March 2031 $ 5,880,000 - 340,000 5,540,000 355,000
$5,230,000 2012 Series A
Capital Improvements bonds,
due in semi-annual installments
of $460,000 to $630,000 plus interest
at 2.0% to 5.0% through September 2024 3,845,000 - 480,000 3,365,000 495,000
$6,385,000 2012 Series B
Capital Improvements bonds,
due in semi-annual installments of
$565,000 to $770,000 plus interest
at 2.0% to 5.0% through September 2024 4,695,000 - 585,000 4,110,000 610,000
$21,595,000 2013 Series One
High School Renovation bonds,
due in semi-annual installments of
$820,000 to $1,630,000 plus interest
of 3.8% to 5.0% through
February 2033 17,860,000 - 855,000 17,005,000 895,000
$22,660,000 2014 Series One
High School Renovation bonds,
due in semi-annual installments of
$840,000 to $1,690,000 plus
interest of 2.0% to 5.0% through
March 2034 19,485,000 - 880,000 18,605,000 900,000
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
61
Balance Balance Due Within
July 1, 2018 Additions Reductions June 30, 2019 One Year
Governmental activities, continued:
$6,210,000 2015 Series Three
High School Renovation bonds,
due in semi-annual installments of
$200,000 to $480,000 plus interest
of 2.0% to 5.25% through
October 2035 5,815,000 - 205,000 5,610,000 215,000
$1,780,000 2015 Series Three
Renewal and Replacement bonds,
due in semi-annual installments of
$150,000 to $220,000 plus interest
of 2.0% to 5.0% through October 2025 1,485,000 - 155,000 1,330,000 160,000
$1,870,000 2016 Series One
High School Renovation bonds,
due in semi-annual installments of
$65,000 to $130,000 plus interest
of 2.0% to 5.0% through August 2035 1,775,000 - 65,000 1,710,000 70,000
$5,140,000 2016 Series One
Renewal and Replacement bonds,
due in semi-annual installments of
$440,000 to $660,000 plus interest
of 5.0% through August 2025 4,465,000 - 465,000 4,000,000 490,000
$4,905,000 2016 Series Three
High School Renovation bonds,
due in annual installments of
$345,000 to $605,000 plus interest of
4.0% to 5.0% through December 2027 4,905,000 - 395,000 4,510,000 415,000
$550,000 2018 Direct Loan,
due in annual installments of
$50,000 to $60,000 plus interest of
2.67% to 3.05% through December
2029
-
550,000
-
550,000
50,000
$ 70,210,000 550,000 4,425,000 66,335,000 4,655,000
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
62
(b) Notes and Bonds Payable
As of June 30, 2019, the Borough had the following notes and bonds payable outstanding in
the Municipal Solid Waste Collection and Disposal Enterprise Fund:
Note payable (ACWF #505031) to Alaska Department of Environmental
Conservation (ADEC), to be paid within 20 years. From June 2, 1999,
until April 28, 2005, interest accrued at 2.5%. From April 29, 2005,
to June 30, 2018, interest accrued at 1.5%. The first loan payment
was made on April 1, 2012, with principal payments of $100,000 due
on April 1 in each successive year.
$
1,200,000
Note payable (ACWF #505041) to Alaska Department of Environmental
Conservation (ADEC), to be paid within 20 years. Interest accrues at
1.5% over the life of the loan. The first loan payment was made on
April 1, 2018, with principal payments of $637,846 due on April 1 in
each successive year.
$
11,481,221
Note payable (ACWF #505061) to Alaska Department of Environmental
Conservation (ADEC), to be paid within 20 years. Interest started
being accrued at 1.5% in November 2015 and will be accrued over the
life of the loan. The first loan payment was made on March 1, 2016,
with principal payments of $131,227 being due on March 1 in each
successive year.
$
2,099,625
On September 15, 2011, the Borough issued a $3,275,000 revenue bond,
with a premium of $384,379. The bond was marketed by the Alaska
Municipal Bond Bank. Interest accrues at rates between 3.0 and 5.0%
with payments due on September 1 and March 1 of each year. The
current portion as of June 30, 2019 is $215,000. The bond will mature
on September 1, 2026.
$
2,247,687
As of June 30, 2019, the Borough had the following bond payable outstanding in the Long
Term Care Center Enterprise Fund:
On June 19, 2013, the Borough issued a $17,110,000 revenue bond, with
a premium of $1,707,320. The bond was marketed by the Alaska
Municipal Bond Bank. Interest accrues at rates between 3.0 and 5.0%
with payments due on June 1 and December 1 of each year. The
current portion as of June 30, 2019 is $520,000. The bond will mature
on June 1, 2033. The unspent bond proceeds were defeased in fiscal
year 2017, see Footnote 17.
$
10,769,263
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
63
(c) Changes in Long-term Liabilities
Long-term liability activity for the year ended June 30, 2019, was as follows:
Balance Balance
June 30,June 30,Due within
2018 Additions Reductions 2019 one year
Governmental activities:
Bonds payable:
General obligation bonds $ 70,210,000 — 4,425,000 65,785,000 4,605,000
Loan payable — 550,000 — 550,000 50,000
Bond premium 7,538,492 — 684,403 6,854,089 684,407
77,748,492 550,000 5,109,403 73,189,089 5,339,407
Compensated absences 219,481 188,657 268,697 139,441 64,264
Total $77,967,973 738,657 5,378,100 73,328,530 5,403,671
Business-type activities:
Municipal Solid Waste
Collection and Disposal:
Landfill closure and
post-closure costs $ 5,535,000 295,000 — 5,830,000 —
Compensated absences 96,120 34,260 65,676 64,704 13,356
Notes and bonds payable 17,884,919 — 1,074,073 16,810,846 1,084,072
Bond premium 244,898 — 27,211 217,687 27,211
Total $23,760,937 329,260 1,166,960 22,923,237 1,124,639
Long Term Care Center:
Bonds payable 10,460,000 — 500,000 9,960,000 520,000
Bond premium 867,067 — 57,804 809,263 57,804
Total $11,327,067 — 557,804 10,769,263 577,804
Kodiak Fisheries Research
Center:
Compensated absences $17,570 11,550 8,805 20,315 4,720
Business-type activities:
Landfill closure and post-
closure costs $ 5,535,000 295,000 — 5,830,000 —
Compensated absences 113,690 45,810 74,481 85,019 18,076
Notes and bonds payable 28,344,919 — 1,574,073 26,770,846 1,604,072
Bond premium 1,111,965 — 85,015 1,026,950 85,015
Total $35,105,574 340,810 1,733,569 33,712,815 1,707,163
For governmental activities, compensated absences are generally liquidated by the General
Fund.
Annual debt service requirements to maturity for all the Governmental Activities general obligation
bonds and loan payable outstanding as of June 30, 2019, are as follows:
Year ending General Obligation Bonds Loan Payable
June 30: Principal Interest Total Principal Interest Total
2020 $ 4,605,000 3,063,032 7,668,032 50,000 15,359 65,359
2021 4,800,000 2,873,382 7,673,382 50,000 13,987 63,987
2022 5,020,000 2,653,882 7,673,882 50,000 12,572 62,572
2023 5,250,000 2,418,719 7,668,719 55,000 11,075 66,075
2024 5,505,000 2,163,708 7,668,708 55,000 9,497 64,497
2025-2029 21,970,000 7,297,090 29,267,090 290,000 22,377 312,377
2030-2034 17,445,000 2,553,658 19,998,658 - - -
2035-2036 1,190,000 58,036 1,248,036 - - -
$ 65,785,000 23,081,507 88,866,507 550,000 84,867 634,867
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
64
At June 30, 2019, there was $533,471 available in the Education Debt Service Fund to service general
obligation bonds. There are a number of limitations and restrictions contained in the various bond
indentures. The Borough is in compliance with all significant limitations and restrictions.
Annual debt service requirements to maturity for all of the Business-type Activities revenue bonds and
notes payable obligations outstanding as of June 30, 2019, are as follows:
Year ending Bonds Payable Notes Payable
June 30: Principal Interest Total Principal Interest Total
2020 $ 735,000 549,624 1,284,624 869,072 221,712 1,090,784
2021 765,000 518,899 1,283,899 869,072 208,677 1,077,748
2022 795,000 485,800 1,280,800 869,072 195,641 1,064,713
2023 835,000 445,801 1,280,801 869,072 182,604 1,051,676
2024 875,000 403,674 1,278,674 869,072 169,569 1,038,640
2025-2029 4,435,000 1,373,122 5,808,122 4,345,358 652,301 4,997,659
2030-2034 3,550,000 368,960 3,918,960 4,045,358 330,899 4,376,257
2035-2039 - - 2,044,772 59,374 2,104,146
$ 11,990,000 4,145,880 16,135,880 14,780,846 2,020,776 16,801,622
(11) Fund Balances
Detailed information related to amounts classified as nonspendable, committed and assigned fund
balances in governmental funds at June 30, 2019 are as follows:
Facilities Education
Special Debt Other
General Revenue Service Governmental
Fund Fund Fund Funds Total
Nonspendable:
Prepaid Items $ 67,562 - - 1,311 68,873
Committed:
Facility Upgrades - 40,318,331 - - 40,318,331
Debt Service - - 533,471 - 533,471
Fire and Road
Service Areas - - - 2,128,936 2,128,936
Land Sales - - - 1,320,616 1,320,616
Buildings and Grounds - - - 1,227,338 1,227,338
Street Lighting
Districts - - - 63,726 63,726
Tourism Development - - - 166,855 166,855
Commercial Passenger Vessel - - - 43,287 43,287
Mission Lake Tide Gate - - - 59,844 59,844
Total Committed $ - 40,318,331 533,471 5,010,602 45,862,404
Assigned:
Capital Projects and
Upgrades $ - - - 5,899,049 5,899,049
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
65
(12) Solid Waste Landfill Closure and Post Closure Care Costs
State and federal laws and regulations require that the Kodiak Island Borough place a final cover on
its landfill when closed and perform certain maintenance for a number of years after closure. In
addition to operating expenses related to current activities of the landfill, an expense provision and
related liability are recognized based on the future closure and post closure care costs that will be
incurred based on the date the landfill no longer accepts waste. The recognition of these landfill
closure and post closure care costs is based on the amount of the landfill used during the year. The
estimated liability of landfill closure and post closure care costs is $5,830,000 as of June 30, 2019,
which is based on 38.5% usage (filled) of the landfill. The Borough recorded closure/post-closure
expenses of $295,000 of estimated future costs for closure and post-closure costs. The estimated total
current cost of the landfill closure and post closure care of $5,830,000 is based on the amount that
would be paid if the landfill were closed as of June 30, 2019. However, the actual cost of closure and
post closure care may be higher due to inflation, changes in technology, or changes in landfill laws
and regulations.
The Borough is required by state and federal laws and regulations to make annual contributions to
finance closure and post closure care. The Kodiak Island Borough complies with these requirements
by annually recording the liability based on the estimates provided by the Kodiak Island Borough’s
Engineering/Facilities Director. It is anticipated that future inflation costs and additional costs that
might arise from changes in post closure requirements, due to changes in technology or more rigorous
environmental regulations, for example, will be financed primarily by charges to future landfill users
and secondarily by taxpayers.
In the fiscal year ended June 30, 1999, the Borough began initial planning for lateral expansion of
the landfill (Phase 3). In May of 2012 bidding on the project was begun and work is ongoing and
expected to continue through 2021. The lateral expansion has an estimated forty year capacity.
Capital costs to complete are estimated at $3,100,000.
(13) Insurance and Risk Retention
The Kodiak Island Borough is exposed to numerous risks of loss associated with the operations of a
government. These potential losses include, but are not limited to, employee relations and injuries,
contracts, theft, loss or damage of property and general liability. The Borough manages its risks from
these potential losses by participating in the Alaska Municipal League Joint Insurance Association,
as well as purchasing commercial insurance coverage. This insurance has provided the Borough with
adequate coverage in the past. There were no significant changes in insurance coverage obtained and
there were no claims or settlements that exceeded insurance coverage in any of the past three fiscal
years.
The Borough is a member in good standing of the Alaska Municipal League Joint Insurance
Association (JIA), a governmental insurance pool established by the Alaska Municipal League.
Claims are covered on an occurrence basis. JIA provides risk management services, appraisal services
and there is also a separate pool for policy liability.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
66
The responsibilities of both JIA and the participants are as follows:
(a) Responsibilities of JIA
JIA shall perform the following instructions in discharging its responsibilities:
Provide insurance coverage as necessary for property, including building and contents,
automobile, mobile equipment and data processing equipment, casualty, including
general liability, public officials’ and employees’ liability, auto liability and employee
benefit liability; workers’ compensation, including employers’ liability; commercial
blanket bond; and time element.
Assist each participant’s assigned risk manager with the implementation of that function.
Provide loss prevention and safety and consulting services to participants as required.
Provide claims adjusting and subrogation services for claims covered by the
association’s joint insurance arrangement.
(b) Responsibilities of the Participants
The Participants shall have the following responsibilities:
The Borough Assembly or appointing official of each participant shall appoint a
representative as provided in Article 5, Section 2 of the bylaws and at least one alternate
representative to attend member meetings.
Each participant shall appoint an employee of the participant to be responsible for the
risk management function within that entity and to serve as a liaison between the
participant and JIA with respect to risk management.
Each participant shall maintain an active safety officer and/or committee, and shall
comply with all recommendations of JIA concerning the development and
implementation of a loss control policy to prevent unsafe practices.
Each participant shall maintain its own set of records as a loss log, in all categories of
loss to insure accuracy of JIA’s loss reporting system.
(14) Rental Revenues
(a) Hospital Facilities Enterprise Fund
The Kodiak Island Borough Assembly leases the Kodiak Island Hospital premise and
equipment to Sisters of Providence d.b.a. Providence Kodiak Island Medical Center who
assumed responsibility for the hospital’s operations as of April 21, 1997. The lease agreement
was renegotiated in 2017 and is effective through fiscal year 2027. The lease is cancelable by
either party with a one year notice. The hospital capital assets, the lease income, and all other
costs relating to the agreement are accounted for by the Borough in the Hospital Facilities
Enterprise Fund.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
67
The agreement with Providence established a 20 year renewal and replacement schedule,
provided for a 3% administrative fee to be paid to the Borough, as well as $100,000 annual
payment to replenish the Borough’s Hospital Enterprise Fund Net Position. If renewal and
replacement costs are 25% greater than the budgeted costs, the lease payment may be amended
to incorporate these cost overruns. If projects greater than $50,000 are necessary to meet federal
or state facility audits, the lease payment may be amended to incorporate these cost overruns.
(b) Long Term Care Center Enterprise Fund
The Kodiak Island Borough Assembly leases the Kodiak Island Long Term Care Center to
Sisters of Providence, d.b.a. Providence Kodiak Island Medical Center who assumed
responsibility for the Long Term Care Center’s operations as of February 1, 2015. The lease
agreement is effective for a term of twenty years from that date.
The lease is cancelable by either party with a one year notice. The Center’s capital assets, the
lease income, and all other costs relating to the agreement are accounted for by the Borough in
the Long Term Care Center Enterprise Fund.
The agreement with Providence specifies that Providence will pay monthly lease payments to
the Borough in an amount no less than required to fully fund all debt service requirements plus
an amount sufficient to cover the Borough’s expenses in maintaining insurance for fire and
other risks (including earthquakes).
The monthly lease payment will be adjusted on January 1, each year and is based on the
Borough’s required debt service payments and costs to insure the facility. The current lease
payment through June 30, 2033, is $86,968.
(c) Kodiak Fisheries Research Center
The Kodiak Fisheries Research Center (KFRC) leases its premise to the Alaska Department of
Fish and Game (ADF&G), the General Services Administration (GSA) on behalf of both the
National Oceanic and Atmospheric Administration (NOAA) and the Natural Resources
Commission (NRC), the University of Alaska Fairbanks (UAF), and Kodiak Regional
Aquaculture Association (KRAA).
The lease with ADF&G is from October 1, 1998 through September 30, 2018. In September
2018, one of two options to extend for an additional five-year period was executed, extending
the term of the lease through September 2023. Annual rent escalates each year and is currently
$59,978.
The lease with NOAA was amended in April 2016 and expires in March 2036. Annual rent is
$868,777 which is comprised of $185,867 base rent plus operational and maintenance expenses
of $513,561 and debt repayment of $169,349. The debt repayment element was negotiated in
the new lease to recover a portion of the original debt incurred by the Borough for construction
of the facility. The original bond issue was fully paid by the Borough; however, the new lease
is designed to recoup costs already incurred and this portion of the lease is recorded as a long-
term receivable in the amount of $1,397,207 as of June 30, 2019.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
68
The lease with NRC commenced on March 1, 2018, and extends through February 28, 2038,
with rents escalating every three years. The current annual rate of $24,433 is effective through
February 28, 2021.
The lease with UAF was originally from October 1, 1998 through September 30, 2018,
cancelable with 30 days’ notice, with an option to extend for up to two additional five year
periods. The State of Alaska cancelled the lease for laboratory space effective September 1,
2012, and in September 2018 failed to renew the lease for dorm space. In 2019, UAF paid
$8,082 to lease the dorm space and vacated in October 2018.
The lease with Kodiak Regional Aquaculture Association was amended to include more space.
The new lease term is from March 2017 through March 2020. Annual rent is $18,925.
(15) Employee Retirement System Plans
The Borough follows Governmental Accounting Standards Board (GASB) Codification P20 ,
Accounting for Pensions by State and Local Governmental Employees and GASB Codification P50,
Accounting and Financial Reporting by Employers for Post-employment Benefits Other than Pensions.
GASB Codification P20 and GASB Codification P50 establish uniform standards for the measurement,
recognition, and display of pension and other post-employment benefits other than pensions
(healthcare) expenditures/expense and related liabilities, assets, note disclosure and applicable required
supplementary information in the financial reports of state and local governmental employers.
All full-time employees and certain permanent part-time employees of the Borough participate in the
State of Alaska Public Employees’ Retirement System (PERS). In addition to the pension plan, PERS
also administers other post-employment benefit (OPEB) plans.
The system is governed by the Alaska Retirement Management Board. The benefit and contribution
provisions are established by State law and may be amended only by the State legislature. The
Administrator of the Plan is the Commissioner of Administration or the Commissioner’s designee.
Summary of Significant Accounting Policies. The financial statements for PERS are prepared using the
accrual basis of accounting. Plan member contributions are recognized in the period in which the
contributions are due. The Borough’s contributions are recognized when due and a formal commitment
to provide the contributions has been made. Benefits and refunds are recognized when due and payable
in accordance with the terms of the plan. All plan investments are reported at fair value.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
69
PERS acts as the common investment and administrative agencies for the following multiple-employer
plans:
Plan Name Type of Plan
Defined Benefit Pension Plan (DB) Cost-sharing, Defined Benefit Pension
Defined Contribution Pension Plan (DC) Defined Contribution Pension
Defined Benefit Other Postemployment
Benefits (OPEB):
Occupational Death and Disability Plan Defined Benefit OPEB
Alaska Retiree Healthcare Trust Plan Defined Benefit OPEB
Retiree Medical Plan Defined Benefit OPEB
Defined Contribution Other Postemployment
Benefits (DC):
Healthcare Reimbursement Arrangement Plan Cost-sharing, Defined Contribution
OPEB
Other Postemployment Benefit Plans (OPEB)
Occupational Death and Disability Plan (ODD)
The Occupational Death and Disability Plan provides death benefits for beneficiaries of plan
participants and long-term disability benefits to all active members within the System. For the year
ended June 30, 2019 the employer contribution rate is 0.26%.
Membership in the plan consisted of the following at June 30, 2018 (latest available report):
Membership PERS
Active plan members 20,811
Participating employers 157
Alaska Retiree Healthcare Trust Plan (ARHCT)
Beginning July 1, 2007, the Alaska Retiree Healthcare Trust Plan (ARHCT), a Healthcare Trust Fund
of the State, was established. The ARHCT is self-funded and provides major medical coverage to
retirees of the System. The System retains the risk of loss of allowable claims for eligible members.
The ARHCT began paying member healthcare claims on March 1, 2008. Prior to that, healthcare claims
were paid for by the Retiree Health Fund (RHF). For the year ended June 30, 2018 (latest available
information) employer contributions were 4.88% of annual payroll. Membership in the plan consisted
of the following at June 30, 2018 (latest report available):
Membership PERS
Inactive plan members or beneficiaries currently receiving benefits 35,139
Inactive plan members entitled to but not yet receiving benefits 5,606
Inactive plan members not entitled to benefits 11,128
Active plan members 13,611
Total plan membership 65,484
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
70
Retiree Medical Plan (RMP)
The retiree medical plan provides major medical coverage to retirees of the DC plan. The plan is self-
insured. Members are not eligible to use this plan until they have at least 10 years of service and are
Medicare age eligible. For the year ended June 30, 2019 employer contributions were 0.94%.
Membership in the plan consists of the following at June 30, 2018 (latest available report):
Membership PERS
Inactive plan members or beneficiaries currently receiving benefits 11
Inactive plan members entitled to but not yet receiving benefits 1,183
Inactive plan members not entitled to benefits 11,896
Active plan members 20,811
Total plan membership 33,901
Healthcare Reimbursement Arrangement Plan
The Healthcare Reimbursement Arrangement Plan was established to allow medical expenses to be
reimbursed from individual savings accounts established for eligible participants. Employer
contributions are 3% of the average annual compensation of all employees in the plan. Membership in
the plan consists of the following at June 30, 2018 (latest available report):
Membership PERS
Inactive plan members or beneficiaries currently receiving benefits 19
Inactive plan members entitled to but not yet receiving benefits 1,175
Inactive plan members not entitled to benefits 11,896
Active plan members 20,811
Total plan membership 33,901
Investments
The Board is the investment oversight authority of the system’s investments. As the fiduciary, the
Board has the statutory authority to invest the assets under the Prudent Investor Rule. Fiduciary
responsibility for the Board’s invested assets is pursuant to AS 37.10.210.390.
State of Alaska Department of Treasury provides staff for the Board. Treasury has created a pooled
environment by which it manages investments of the Board. Additionally, Treasury manages a mix of
Pooled Investment Funds and Collective Investment Funds for the DC Participant-directed Pension
plans under the Board’s fiduciary responsibility.
Rate of Return
The money-weighted rate of return expresses investment performance, net of investment expense,
adjusted for the changing amounts actually invested. The annual weighted rate of return, net of
investment expense, for the year ended June 30, 2018 (latest available report) for the DB Plan for PERS
is 8.26%, for the ARHCT is 8.35%, for the Occupational Death and Disability Plan is 8.06%, and for
the Retiree Medical Plan is 7.89%.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
71
For additional information on securities lending, interest rates, credit risks, foreign exchange,
derivatives, fair value, and counterparty credit risks, see the separately issued report on the Invested
Assets of the State of Alaska Retirement and Benefits Plans at:
http://treasury.dor.alaska.gov/armb/Reports-and-Policies/Annual-Audited-Financial-Schedules.aspx.
The long-term expected rate of return on pension and OPEB plan investments was determined using
the building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for each major
asset class. These ranges are combined to produce the long-term expected rate of return by weighting
the expected future real rates of return by the target asset allocation percentage and adding expected
inflation. The best estimates of arithmetic real rates of return for each major asset class are summarized
below for the PERS plan:
Long-Term Expected
Asset Class Real Rate of Return
Domestic Equity 8.90%
Global Ex- U.S. Equity 7.85%
Fixed Income 1.25%
Opportunistic 4.76%
Real Assets 6.20%
Absolute Return 4.76%
Private Equity 12.08%
Cash Equivalents 0.66%
Discount Rate: The discount rate used to measure the total pension and OPEB liabilities is 8.00%. The
projection of the cash flows used to determine the discount rate assumes that Employer and State
contributions will continue to follow the current funding policy, which meets State statutes. Based on
those assumptions, the net pension and OPEB plans fiduciary net pension and OPEB liabilities were
projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension and OPEB plan investments were applied
to all periods of projected benefit payments to determine the total pension and OPEB liabilities.
Employer and Other Contribution Rates. There are several contribution rates associated with the
pension and healthcare contributions and related liabilities. These amounts are calculated on an annual
basis.
Employer Effective Rate: This is the actual employer pay-in rate. Under current legislation, this rate
is statutorily capped at 22% of eligible wages, subject to the salary floor, and other termination costs
as described below. This rate is calculated on all PERS participating wages, including those wages
attributable to employees in the defined benefit plan.
ARM Board Adopted Rate: This is the rate formally adopted by the Alaska Retirement Management
Board. This rate is actuarially determined and used to calculate annual Plan funding requirements,
without regard to the statutory rate cap or the GASB accounting rate. Prior to July 1, 2015, there were
no constraints or restrictions on the actuarial cost method or other assumptions used in the ARM Board
valuation. Effective July 1, 2015, the Legislature requires the ARM Board to adopt employer
contribution rates for past service liabilities using a level percent of pay method over a closed 25 year
term which ends in 2039. This will result in lower ARM Board Rates in future years.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
72
On-behalf Contribution Rate: This is the rate paid in by the State as an on-behalf payment as mandated
under current statute. Under state law, subject to annual appropriation, the state will contribute an on-
behalf payment into the plan in an amount equal to the difference between the ARM Board Rate and
the Employer Effective Rate. On-behalf contribution amounts have been recognized in these financial
statements as both revenue and expenditures.
GASB Rate: This is the rate used to determine the long-term pension and healthcare liability for plan
accounting purposes. Certain actuarial methods and assumptions for this rate calculation are mandated
by the Governmental Accounting Standards Board (GASB). Medicare Part D subsidies are not
reflected in this rate. The rate uses an 8% discount rate.
Employer Contribution rates for the year ended June 30 2018 (latest available actuarial report) are as
follows:
ARM
Employer Board State
Effective Adopted Contribution GASB
Rate Rate Rate Rate
PERS:
Pension 16.17% 20.28% 5.58% 32.11%
OPEB 5.83% 7.30% 0% 87.90%
Total PERS contribution rates 22% 27.58% 5.58% 120.01%
Termination Costs. If the Borough decides to terminate coverage for a department, group, or other
classification of members, even if that termination results from the decision to divest of a particular
Borough function, all affected employees in that department, group, or other classification of members
become immediately vested in the plan. The Borough must pay to have a termination study completed.
The purpose of the study is to calculate the Borough’s one-time termination costs. The costs represent
the amount necessary to fully fund the costs of plan members who become vested through this process
and for other changes in actuarial assumptions, such as, earlier than expected retirement, that arise from
the act of termination of coverage. The Borough must pay a lump sum within 60 days of termination
or arrange a payment plan that is acceptable to the PERS Administrator. For fiscal year 2019 the past
service rate for PERS is 16.53%.
Actuarial Assumptions: The total pension and OPEB liabilities in the June 30, 2018 (latest available)
actuarial valuation was determined by an actuarial valuation as of June 30, 2017, which was rolled
forward to June 30, 2018. These assumptions were the result of an experience study performed as of
June 30, 2013.
Investment return / discount rate 8% per year (geometric), compounded annually, net
of expenses
Salary scale Inflation – 3.12% per year
Productivity – 0.50% per year
Payroll growth 3.62% per year (inflation + productivity)
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
73
Total inflation Total inflation as measured by the Consumer Price
Index for urban and clerical workers from
Anchorage is assumed to increase 3.12% annually.
Mortality (Pre-termination) Based upon 2010-2013 actual mortality experience,
60% of male rates and 65% of female rates of post
termination mortality rates. Deaths are assumed to
be occupational 70% of the time for peace
officers/firefighters, 50% of the time for others.
Mortality (Post-termination) 96% of all rates of the RP-2000 combined mortality
table, 2000 base year projected to 2018.
Total turnover Based upon the 2010-2013 actual withdrawal
experience.
Disability Incidence rates based on 2010-2013 actual
experience. Post-disability mortality in accordance
with the RP-2000 Disabled Retiree Mortality Table.
Disabilities are assumed to be occupational 70% of
the time for peace officers/firefighters, 50% of the
time for others.
Retirement Retirement rates based upon the 2010-2013 actual
experience. Deferred vested members are assumed
to retire at their earliest unreduced retirement date
for others. For peace officers/firefighters, Tier 1
deferred vested members are assumed to retire at
age 55 and Tiers II and III deferred vested members
are assumed to retire at age 60.
Marriage and age difference
Wives are assumed to be three years younger than
husbands. For others, 75% of male members and
70% of female members are assumed to be married.
For peace officers/firefighters, 85% of male
members and 60% female members are assumed to
be married.
Healthcare cost trend rates Pre-65 medical: 8.0% grading down to 4.0%
Post-65 medical: 5.5% grading down to 4.0%
Prescription drugs: 9.0% grading down to 4.0%
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
74
Alaska Public Employee Retirement System (PERS) – Defined Benefit Plan (DB)
Plan Description. The Borough participates in the Alaska Public Employees’ Retirement System
(PERS), a cost sharing multiple employer defined benefit pension plan. PERS provides retirement
benefits, disability and death benefits, and post-employment healthcare to plan members and
beneficiaries. The Plan was established and is administered by the State of Alaska, Department of
Administration. The Public Employee’s Retirement System issues a publicly available financial report
that includes financial statements and required supplementary information for PERS. This report may
be obtained from the system at Pouch C, Juneau, Alaska 99811 or online at:
http://doa.alaska.gov/drb/pers.
Pension Benefits. All tier employee benefits vest with five years of credited service. There are three
tiers of employees based on entry date. Tier I employees enrolled prior to July 1, 1986, with five or
more years of credited service are entitled to annual pension benefits beginning at normal retirement
age 55 or early retirement age 50. For Tier II and III employees enrolled after June 30, 1986, but before
July 1, 2006, the normal and early retirement ages are 60 and 55, respectively. All tier employees with
30 or more years of credited service may retire at any age and receive a normal benefit.
The PERS defined benefit is closed to new hires enrolled on or after July 1, 2006. New hires after this
date participate in the PERS defined contribution plan (DC) described later in these notes.
Currently there are 155 employers participating in PERS defined benefit plan, including the State of
Alaska and 154 political subdivisions and public organizations.
The DB Plan’s membership consisted of the following at June 30, 2018 (latest available report):
Inactive plan members or beneficiaries currently receiving benefits 35,139
Inactive plan members entitled to but not receiving benefits 5,606
Inactive members not entitled to benefits 11,128
Active plan members 13,611
Total DB plan membership 65,484
Retirement benefits are calculated by multiplying the average monthly compensation (AMC) times
credited PERS service times the percentage multiplier. The AMC is determined by averaging the
salaries earned during the five highest (three highest for peace officers/firefighters members or
members hired prior to July 1, 1996) consecutive payroll years. Members must earn at least 115 days
of credit in the last year worked to include it in the AMC calculation. The PERS pays a minimum
benefit of $25 per month for each year of service when the calculated benefit is less.
The percentage multipliers for peace officers/firefighters are 2% for the first ten years of service and
2.5% for all service over 10 years. The percentage multipliers for all other participants are 2% for the
first ten years, 2.25% for the next ten years, and 2.5% for all remaining service earned on or after July
1, 1986. All service before that date is calculated at 2%.
Post-employment healthcare benefits are provided without cost to all members first enrolled before July
1, 1986. Members first enrolled after June 30, 1986, but before July 1, 2006, and who have not reached
age 60 may elect to pay for major medical benefits.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
75
Post Retirement Pension Adjustments. Post retirement pension adjustments (PRPAs) are granted
annually to eligible benefit recipients when the consumer price index (CPI) increases during the
preceding calendar year. PRPAs are calculated by multiplying the recipient’s base benefit, including
past PRPAs, times:
(a) 75% of the CPI increase in the preceding calendar year or 9%, whichever is less, if the
recipient is at least 65 or on PERS disability; or
(b) 50% of the CPI increase in the preceding calendar year or 6%, whichever is less, if the
recipient is at least 60, or has been receiving benefits for at least five years.
Ad hoc PRPAs, up to a maximum of 4%, may be granted to eligible recipients who first entered the
PERS before July 1, 1986, if the CPI increases and the financial condition of the fund will permit an
increase. In a year where an ad hoc PRPA is granted, eligible recipients will receive the higher of the
two calculations.
Funding Policy. In April 2008 the Alaska Legislature passed legislation which statutorily capped the
employer contribution, established a state funded “on-behalf” contribution, and required that employer
contributions be calculated against all PERS eligible wages, including wages paid to participants of the
PERS Tier IV defined contribution plan (DC) described later in these footnotes. The state legislature
capped the rate at 22%, with the State contributing an on-behalf payment for the difference between
the actuarial contribution and the cap.
Salary Floor. During the 25th legislation session, Senate Bill 125 passed, which established a June 30,
2008 salary floor under AS 39.35.255(a)(2). The salary floor is the total base salaries paid by an
employer to active employees of the system as of the fiscal year ending June 30, 2008. The statute
requires the Division of Retirement and Benefits (Division) to collect employer contributions at a
minimum based on FY 2008 base salaries.
Employee Contribution Rate. The Borough’s PERS active members are required to contribute 6.75%
(4.97% pension costs and 1.78% OPEB) of their annual covered salary.
Employer contributions for the year ended June 30, 2019, were:
Pensions
(DB)
Other Post-Employment
Benefits (DB)
Total
$ 401,284 167,229 568,513
Public Employees Retirement Plans
For the year ended June 30, 2019 the State of Alaska contributed $192,986 (100% pension cost) on-
behalf of the Borough, which has been recorded in the fund financial statements under the modified-
accrual basis of accounting. In the government-wide financial statements the on-behalf contribution
has been adjusted as of the measurement date June 30, 2018 to a total of $126,462 to represent the
pension/OPEB expense attributable to the State under the full accrual basis of accounting.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
76
Pension and OPEB Liabilities, Pension and OPEB Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to Pensions and OPEB: At June 30, 2019, the Borough reported
liabilities that reflected a reduction for State pension and OPEB support provided to the Borough. The
amount recognized by the Borough as its proportionate share of net pension and OPEB liabilities, the
related State support, and the total portion of the net pension and OPEB liabilities that was associated
with the Borough were as follows:
Defined Benefit: Pension
Borough’s proportionate share of the net pension liability $ 5,902,812
State’s proportionate share of the net pension liability 1,709,426
Total $ 7,612,238
OPEB
Borough’s proportionate share of the ARHCT OPEB liability $ 1,218,333
State’s proportionate share of the ARHCT OPEB liability 353,630
Total $ 1,571,963
Borough’s proportionate share of the ODD OPEB liability $ (32,004)
Borough’s proportionate share of the RMP OPEB liability $ 20,969
Total Borough’s share of net pension and OPEB liabilities $ 7,110,110
$5,646,880 of the net pension and OPEB liabilities is reported in governmental activities and
$1,463,230 is reported in business-type activities.
The net pension and OPEB liabilities were measured as of June 30, 2018, and the total pension and
OPEB liabilities used to calculate the net pension and OPEB liabilities were determined by an actuarial
valuation as of that date. The Borough’s proportion of the net pension and OPEB liabilities were based
on the present value of contributions for FY2020 through FY2039, as determined by projections based
on the June 30, 2018 valuation.
The Borough’s proportionate share and changes in the pension and OPEB liabilities were as follows:
June 30, 2017 June 30, 2018
Measurement Measurement Change
Pension 0.1100% 0.1188% 0.0088%
OPEB:
ARHCT 0.1101% 0.1187% 0.0086%
ODD 0.1438% 0.1648% 0.0210%
RMP 0.1438% 0.1648% 0.0210%
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
77
Based on the measurement date of June 30, 2018, the Borough recognized pension and OPEB expense
of $134,694 and $211,036, respectively, for the year ended June 30, 2019. At June 30, 2019, the
Borough reported deferred outflows of resources and deferred inflows of resources related to pensions
and OPEB from the following sources:
Pension
Deferred Outflows Deferred Inflows
Defined Benefit: of Resources of Resources
Differences between expected and actual
experience $ - (148,149)
Changes of assumptions - -
Net difference between projected and actual
earnings on pension plan investments 130,366 -
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions 202,290 -
Borough contributions subsequent to the
measurement date 401,284 -
Total $ 733,940 (148,149)
OPEB ARHCT
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience $ - (130,369)
Changes of assumptions 184,833 -
Net difference between projected and actual
earnings on OPEB plan investments - (258,175)
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions 83,066 (60,093)
Borough contributions subsequent to the
measurement date 143,757 -
Total $ 411,656 (448,637)
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
78
OPEB ODD
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience $ - (8,855)
Changes of assumptions - -
Net difference between projected and actual
earnings on OPEB plan investments - (1,126)
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions - (4,506)
Borough contributions subsequent to the
measurement date 5,521 -
Total $ 5,521 (14,487)
OPEB RMP
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience $ - (1,121)
Changes of assumptions 9,714 -
Net difference between projected and actual
earnings on OPEB plan investments - (3,058)
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions 2,554 -
Borough contributions subsequent to the
measurement date 17,951 -
Total $ 30,219 (4,179)
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
79
$401,284 and $167,229 are reported as deferred outflows of resources related to pension and OPEB
resulting from Borough contributions subsequent to the measurement date and will be recognized as a
reduction of the net pension and OPEB liabilities in the year ended June 30, 2019 (actuarial),
respectively. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pension and OPEB will be recognized in pension and OPEB expense as follows:
Year Ended
June 30,
Pension
OPEB
ARHCT
OPEB
ODD
OPEB
RMP
2019 $ 219,949 (60,589) (2,064) 369
2020 71,284 (30,316) (2,064) 369
2021 (101,010) (84,172) (2,064) 369
2022 (5,716) (5,661) (1,699) 1,413
2023 - - (1,691) 1,394
Thereafter - - (4,905) 4,175
Total $ 184,507 (180,738) (14,487) 8,089
For the year ended June 30, 2019, the Borough recognized ($221,725) and ($19,991) of pension and
OPEB amortization of the net deferred outflows and inflows of resources, respectively.
Sensitivity of the Net Pension and OPEB Liabilities to Changes in the Discount Rate: The following
presents the net pension and OPEB liabilities of the plan calculated using the discount rate of 8%, as
well as what the Plans’ net pension and OPEB liabilities would be if they were calculated using a
discount rate that is 1-percentage-point lower (7%) or 1-percentage-point higher (9%) than the current
rate:
1% Decrease Current Rate 1% Increase
(7%) (8%) (9%)
Net pension liability $ 7,816,812 5,902,812 4,283,799
Net OPEB ARHCT liability $ 2,466,515 1,218,333 172,102
Net OPEB ODD liability $ (30,053) (32,004) (33,609)
Net OPEB RMP liability $ 62,617 20,969 (11,517)
Sensitivity of the Borough’s proportionate share of the Net OPEB liability to changes in the healthcare
cost trend rates. The following present the Borough’s proportionate share of the net OPEB liability, as
well as what the Borough’s proportionate share of the net OPEB liability would be if it were calculated
using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than
the current healthcare cost trend rates:
1% Decrease Current Rate 1% Increase
Net OPEB ARHCT liability $ 23,650 1,218,333 2,657,446
Net OPEB ODD liability N/A (32,004) N/A
Net OPEB RMP liability (17,828) 20,969 72,890
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
80
Alaska Public Employee Retirement System (PERS) – Defined Contribution Plan (DC)
Plan Description and Funding Requirements. Borough’s and Public Employers in the State of Alaska
have a defined contribution retirement plan (PERS Tier IV) for new hires first enrolled on or after
July 1, 2006. This Plan is administered by the State of Alaska, Department of Administration in
conjunction with the defined benefit plan noted above. The Administrator of the Plan is the
Commissioner of Administration or the Commissioner’s designee. Plan members make mandatory
contributions of 8% of gross eligible compensation. This amount goes directly to the individual’s
account. State statutes require the employer to contribute 5% of employees’ eligible compensation.
Additionally, employers are required to contribute to OPEB (DB): 0.94% for the retiree medical plan
(DB), 0.26% for occupational and death and disability benefits (DB) and 3% of employers’ average
annual employee compensation to the health reimbursement arrangement (HRA DC). The effective
employer contribution is 22%. Additionally, there is a defined benefit unfunded liability (DBUL)
amount levied against the DC plan and allocated to the DB Plan’s pension and OPEB contribution.
Plan members are 100% vested with their contributions.
Members become vested in employers’ contributions as follows:
2 years of service – 25%
3 years of service – 50%
4 years of service – 75%
5 years of service – 100%
The Borough contributed $146,483 for the year ended June 30, 2019, which included forfeitures of
$63,905 which have been applied as employer contributions.
Deferred Compensation Plan
The Kodiak Island Borough has two deferred compensation plans created and amended in accordance
with Internal Revenue Code Section 457. The plans are available to all regular Borough employees.
The deferred compensation is not available to employees until termination, retirement, death, or
unforeseeable emergency.
All amounts deferred under these plans are held in trusts that were established for the exclusive
benefit of plan participants. Amounts contributed to the plans by participants during the year ended
June 30, 2019, were $92,941.
The first plan is managed by the International City Managers Association Retirement Corporation
(ICMA). $37,710 was contributed to this plan during the year ended June 30, 2019. The Borough
believes that the plan does not meet the criteria for inclusion as a fiduciary fund.
The second plan is managed by the MassMutual Financial Group. $55,231 was contributed to this
plan during the year ended June 30, 2019. The Borough believes that the plan does not meet the
criteria for inclusion as a fiduciary fund.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
81
(16) Contingencies
(a) General
The Borough, in the normal course of its activities, is involved in various claims and pending
litigation. After consultation with legal counsel, management estimates that these matters will be
resolved without material adverse effect on the Borough’s future financial position or results of
operations.
(b) Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment by the
grantor agencies. Any disallowed claims, including amounts already collected, would become a
liability of the General or other applicable funds. In management’s opinion, disallowances, if any,
will not be material.
(17) Advance Refunding of Debt
In November 2016, the Borough issued $4,905,000 of 2016 Series Three general obligation bonds with an
average interest rate of 4.82% to advance refund $5,620,000 of outstanding 2008 Series A bonds with an
average interest rate of 4.73%. As a result, the 2008 Series A bonds are considered to be defeased and the
liability for those bonds has been removed from the financial statements. As of June 30, 2019, the amount of
defeased debt still outstanding was $4,470,000.
In November 2016, the Borough’s Long Term Care Center Enterprise Fund advance refunded $4,455,000 of
the 2013 Series Two revenue bonds with an average interest rate of 4.43%, using $4,529,157 in available
resources and $363,612 released from the Debt Service Reserve Fund for the 2013 Series Two revenue bonds.
As a result, a portion of the 2013 Series Two bonds are considered to be defeased and the liability for those
bonds has been removed from the financial statements. As of June 30, 2019, the amount of defeased debt still
outstanding was $3,915,000.
(18) Change in Estimate
In FY18 the Borough received notice from the State of Alaska, Department of Administration, Division of
Retirement and Benefits, that forfeitures from the defined contribution plan for the Public Employees’
Retirement System (PERS) can be offset against future contributions effective July 1, 2018. The change in
estimate decreased current year expenditures related to payroll benefits and liabilities by $63,905 .
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
82
(20) Subsequent Events
Management have evaluated subsequent events through December 26, 2019, the date which the financial
statements were available for issue.
(21) Construction Commitments
The Borough has outstanding commitments for construction at year end of $2,452,318.
(22) Subsequent Accounting Pronouncements
The Governmental Accounting Standards Board has passed several new accounting standards with upcoming
implementation dates covering several topics as follows:
GASB 84 – Fiduciary Activities. Effective for fiscal years beginning after December 15, 2018.
GASB 87 – Leases. Effective for fiscal years beginning after December 15, 2019.
GASB 89 – Accounting for Interest Cost Incurred before the End of a Construction Period.
Effective for fiscal years beginning after December 15, 2019.
GASB 90 – Majority Equity Interests. Effective for fiscal years beginning after December 15, 2018.
Statement 84 is not expected to have any significant impact on the financial statements of the Borough.
GASB Statement No. 87, the objective of this Statement is to better meet the information needs of financial
statement users by improving accounting and financial reporting for leases by governments. This Statement
increases the usefulness of governments' financial statements by requiring recognition of certain lease assets
and liabilities for leases that previously were classified as operating leases and recognize as inflows of
resources or outflows of resources based on the payment provisions of the contract. It establishes a single
model for lease accounting based on the foundational principle that leases are financings of the right to use an
underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible
right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of
resources, thereby enhancing the relevance and consistency of information about governments' leasing
activities.
GASB Statement No. 89 requires interest costs incurred before the end of a construction period to be
recognized as an expenditure or expense in the period in which the cost is incurred for financial statements
prepared under the current financial resources measurement focus or the economic resource measurement
focus.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
83
GASB Statement No. 90 requires a majority equity interest in a legally separate entity should be reported as
an investment if a government’s holding of the equity interest meets the definition of an investment. A
majority equity interest that meets the definition of an investment should be measured using the equity method,
unless it is held by a special purpose government engaged only in fiduciary activities, a fiduciary fund, or an
endowment or permanent fund. Those governments and funds should measure the majority interests at fair
value. For all other holdings of majority interests in a legally separate entity, a government should report the
legal separate entity as a component unit.
REQUIRED SUPPLEMENTARY
INFORMATION
Budgetary Comparison Schedule
General Fund
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
Variance with
Final Budget –
Budget Positive 2018
Original Final Actual (Negative)Actual
Revenues:
Property taxes and assessments:
Real $1,355,811 1,355,811 1,448,182 92,371 737,826
Personal 150,838 150,838 152,398 1,560 84,827
Aircraft 26,500 26,500 30,200 3,700 30,000
Penalty and interest 150,000 150,000 288,818 138,818 219,086
Total property taxes and assessments 1,683,149 1,683,149 1,919,598 236,449 1,071,739
Severance taxes:
Fish 1,200,000 1,200,000 1,163,238 (36,762)1,660,842
Mining 50,000 50,000 5,183 (44,817)53,618
Logging 50,000 50,000 38,277 (11,723)101,463
Total severance taxes 1,300,000 1,300,000 1,206,698 (93,302) 1,815,923
Excise taxes:
Tobacco 350,000 350,000 423,979 73,979 310,482
Marijuana — — 1,465 1,465 —
Total excise taxes 350,000 350,000 425,444 75,444 310,482
Intergovernmental:
State sources:
State community assistance 408,076 408,076 443,211 35,135 465,942
Fisheries business tax 1,050,000 1,050,000 1,816,530 766,530 1,103,101
Fisheries resource landing tax 12,000 12,000 184,560 172,560 14,868
Telephone and electric tax 15,500 15,500 16,561 1,061 17,321
On-behalf PERS payment 151,020 151,020 137,142 (13,878)86,701
Marijuana license 500 500 1,000 500 500
Total state sources 1,637,096 1,637,096 2,599,004 961,908 1,688,433
Federal sources:
Payments in lieu of taxes 1,342,000 1,342,000 1,582,037 240,037 1,621,466
Fish and Wildlife revenue sharing 150,000 150,000 222,000 72,000 191,973
Total federal sources 1,492,000 1,492,000 1,804,037 312,037 1,813,439
Total intergovernmental
revenue 3,129,096 3,129,096 4,403,041 1,273,945 3,501,872
Charges for services -
Sale of copies and maps 1,065 1,065 1,458 393 2,064
Licenses, permits and fees:
Building and trailer permits 33,000 33,000 99,553 66,553 42,466
Subdivision and zoning fees 14,250 14,250 15,705 1,455 11,280
Business licenses — — 2,600 2,600 —
Other permits 7,300 7,300 12,583 5,283 8,604
Total licenses, permits and fees 54,550 54,550 130,441 75,891 62,350
Investment income 5,000 5,000 211,630 206,630 10,830
Other 1,900 1,900 13,752 11,852 4,650
Total revenues 6,524,760 6,524,760 8,312,062 1,787,302 6,779,910
(continued)
2019
KODIAK ISLAND BOROUGH
84
Budgetary Comparison Schedule
General Fund, continued
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
Variance with
Final Budget –
Budget Positive 2018
Original Final Actual (Negative)Actual
Expenditures:
General government:
General administration $284,135 307,135 349,619 (42,484)194,859
Borough assembly 173,700 173,700 144,455 29,245 147,431
Borough manager 654,301 654,301 661,324 (7,023)596,369
Borough clerk 546,427 546,427 552,966 (6,539)536,455
Borough attorney 163,000 102,000 86,894 15,106 104,848
Finance department 935,480 935,480 755,760 179,720 758,166
Management information systems 1,119,339 1,125,339 950,741 174,598 806,485
Assessing department 778,060 778,060 522,375 255,685 789,476
Engineering/facilities department 393,596 393,596 463,007 (69,411)465,177
Total general government 5,048,038 5,016,038 4,487,141 528,897 4,399,266
Public safety - animal control 114,015 116,015 115,800 215 114,015
Community and economic development:
Community development department 848,839 986,739 905,996 80,743 880,241
Building official 159,090 189,090 188,072 1,018 166,451
Economic development 32,100 32,100 600 31,500 33,936
Total community and economic
development 1,040,029 1,207,929 1,094,668 113,261 1,080,628
Emergency preparedness 59,878 59,878 14,307 45,571 43,038
Health and social welfare 184,000 184,000 182,900 1,100 207,500
Education, culture and recreation 20,489 20,489 20,472 17 4,665
Parks and recreation 98,319 98,319 57,096 41,223 77,186
Kodiak College and city libraries 50,000 50,000 50,000 — 72,000
Total expenditures 6,614,768 6,752,668 6,022,384 730,284 5,998,298
Excess (deficiency) of revenues
over expenditures (90,008)(227,908)2,289,678 2,517,586 781,612
Other financing sources (uses):
Proceeds from sale of assets — — 4,815 4,815 1,240
Transfers in 90,008 90,008 142,177 52,169 492,936
Transfers out — — (265,200)(265,200)(403,958)
Net other financing sources (uses)90,008 90,008 (118,208)(208,216)90,218
Change in fund balance $— (137,900)2,171,470 2,309,370 871,830
Fund balance, at beginning of year 3,188,954 2,317,124
Fund balance, at end of the year $ 5,360,424 3,188,954
See accompanying notes to required supplementary information.
2019
KODIAK ISLAND BOROUGH
85
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Special Revenue Fund – Education
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
Variance with
Final Budget –
Budget Positive 2018
Original Final Actual (Negative)Actual
Revenues:
Property taxes and assessments:
Real $8,689,512 8,689,512 8,819,223 129,711 8,152,772
Personal 966,732 966,732 976,733 10,001 928,259
Intergovernmental - state sources -
Motor vehicle tax 234,000 234,000 220,392 (13,608) 237,895
Total revenues 9,890,244 9,890,244 10,016,348 126,104 9,318,926
Expenditures:
Primary and secondary education 9,890,244 9,890,244 9,920,576 (30,332) 9,377,500
Excess (deficiency) of revenues
over expenditures $— — 95,772 95,772 (58,574)
Fund balance (deficit), at beginning of year (126,614) (68,040)
Fund balance (deficit), at end of year $ (30,842) (126,614)
See accompanying notes to required supplementary information.
2019
86
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Special Revenue Fund – Facilities
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
Variance with
Final Budget –
Budget Positive 2018
Original Final Actual (Negative) Actual
Revenues -
Investment income $208,500 208,500 1,625,077 1,416,577 203,430
Expenditures — 11,130 — 11,130 —
Excess of revenues over
expenditures 208,500 197,370 1,625,077 1,427,707 203,430
Other financing sources (uses) :
Transfers in — 11,130 — (11,130) —
Transfers out (449,000) (689,095) (677,965) 11,130 (130,210)
Net other financing sources (uses) (449,000) (677,965) (677,965) — (130,210)
Change in fund balance $(240,500) (480,595) 947,112 1,427,707 73,220
Fund balance, at beginning of year 39,371,219 39,297,999
Fund balance, at end of year $ 40,318,331 39,371,219
See accompanying notes to required supplementary information.
2019
87
KODIAK ISLAND BOROUGH
Notes to Required Supplementary Information – Budgetary Comparison Schedules
June 30, 2019
88
The Borough follows these procedures in establishing the budgetary data reflected in the fund financial statements:
The Borough Manager must submit to the Borough Assembly by April 30 a proposed operating budget for
the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and
the means of financing them.
Public hearings are conducted by the Borough Assembly to obtain citizen comments.
By June 10, the budget is legally enacted through passage of an ordinance by Borough Assembly action. If
the Borough Assembly fails to pass an ordinance, the budget submitted by the Borough Manager becomes
the adopted budget.
Amendments to the budget can occur anytime during the fiscal year through the Borough Assembly or
administrative action. Generally, the following actions are required at the level of the particular change:
– All new appropriations are authorized by an appropriation ordinance that amends the annual budget
ordinance.
– A resolution of the Borough Assembly is required to move (appropriate) amounts between
departments and projects.
– The administration is authorized and directed by the Borough Assembly to effect the necessary line
item changes within the limits established by Items (1) and (2) above by project or department to
properly monitor, account, and report receipts and expenditures.
Expenditures may not legally exceed appropriations at the following levels: Capital Projects Funds – project
level, all other funds – department level.
All funds, except Capital Projects Funds, are budgeted on an annual basis encompassing a fiscal year.
Budgets of Capital Projects Funds generally encompass the period from start-up to project completion, which
is generally greater than one year.
Appropriations lapse at year end to the extent that they have not been expended for all funds, except Capital
Projects Funds, which lapse at project completion.
Budgets adopted by the Borough Assembly are in accordance with accounting principles generally accepted
in the United States of America.
The Borough published a separate 2019 budget document. That document may be obtained from the Kodiak
Island Borough, Finance Director, 710 Mill Bay Road, Kodiak, Alaska 99615.
Borough's
Proportionate
Share of the Plan Fiduciary
Borough's Borough's State of Alaska Net Pension Net Position as
Proportion Proportionate Proportionate Liability as a a Percentage
of the Net Share of the Share of the Total Borough's Percentage of of the Total
Pension Net Pension Net Pension Net Pension Covered Covered Pension
Liability Liability Liability Liability Payroll Payroll Liability
0.0813%$3,790,363 $3,187,850 $6,978,213 $2,929,492 129%62.37%
0.1143%$5,545,660 $1,488,931 $7,034,591 $3,204,521 173%63.96%
0.1330%$7,434,494 $939,394 $8,373,888 $3,129,406 238%59.55%
0.1100%$5,687,130 $2,118,453 $7,805,583 $3,055,486 186%63.37%
0.1188% $ 5,902,812 $ 1,709,426 $ 7,612,238 $ 3,597,759 164% 65.19%
Notes to Schedule:
1.
2. Measurement is one year prior to fiscal year end for all years presented.
3. In fiscal year 2017 the District implemented GASB 82, which required a retroactive change in covered payroll.
4.
KODIAK ISLAND BOROUGH
Public Employees' Retirement System (PERS)
Schedule of Borough's Proportionate Share of the Net Pension Liability
June 30, 2019
Year
2015
2016
2017
Information presented for 2019 is based upon Plan measurement date June 30, 2018.
This schedule is intended to present 10 years of information. Additional years' information will be included as it becomes available.
2018
2019
89
Borough's
Proportionate Plan Fiduciary
Borough's Borough's State of Alaska Share of the Net Position as
Proportion Proportionate Proportionate Net OPEB a Percentage
of the Net Share of the Share of the Total Liability as a of the Total
OPEB Net OPEB Net OPEB Net OPEB Borough's Percentage of OPEB
Liability Liability Liability Liability Covered Covered Liability
(Asset) (Asset) (Asset) (Asset) Payroll Payroll (Asset)
Alaska Retiree Healthcare Trust Plan (ARHCT):
0.1101% $ 929,853 $ 347,255 $ 1,277,108 $ 3,055,486 30.43% 89.68%
0.1187% $ 1,218,333 $ 353,630 $ 1,571,963 3,597,759 33.86% 88.12%
Occupational Death and Disability (ODD):
0.1438% $ (20,405) $ - $ (20,405) $ 3,055,486 -0.67% 212.97%
0.1648% $ (32,004) $ - $ (32,004) $ 3,597,759 -0.89% 270.62%
Retiree Medical Plan (RMP):
0.1438% $ 7,500 $ - $ 7,500 $ 536,123 1.40% 93.98%
0.1648% $ 20,969 $ - $ 20,969 $ 669,059 3.13% 88.71%
Notes to Schedule:
1.
2. Measurement is one year prior to fiscal year end for all years presented.
3.
Information presented for 2019 is based upon Plan measurement date June 30, 2018.
This schedule is intended to present 10 years of information. Additional years' information will be included as it becomes available.
KODIAK ISLAND BOROUGH
Schedule of Borough's Proportionate Share of the Net OPEB Liability
Public Employees' Retirement System (PERS)
June 30, 2019
Year
2018
2018
2018
2019
2019
2019
90
Contributions
Relative to the Contributions
Contractually Contractually Contribution Borough's as a Percentage
Required Required Deficiency Covered of Covered
Contribution Contribution (Excess) Payroll Payroll
$370,432 $(370,432) $- $3,204,521 11.56%
$377,365 $(377,365) $- $3,129,406 12.06%
$406,215 $(406,215) $- $3,055,486 13.29%
$483,892 $(483,892) $- $3,597,759 13.45%
$ 397,978 $ (401,284) $ (3,306) $ 3,249,981 12.25%
Notes to schedule
1. Valuation date:
2.
Methods and assumptions used to determine contribution rates:
3. Actuarial cost method: Entry Age Normal - level percentage of payroll.
4. Amortization method: Level dollar, closed.
5. Amortization period: 25 years, as a level of percentage of payroll.
6. Equivalent single amortization period: 17 years.
7. Asset valuation method:
8. Inflation:
9. Salary increases:
10.Investment rate of return:
11.Retirement age:
12.Mortality:
13.In fiscal year 2017 the District implemented GASB 82, which required a retroactive change in covered payroll.
14.This schedule is intended to present 10 years of information. Additional years' information will be included as it becomes available.
15.In fiscal year 2018 the District included pension DBUL into the contractually required contribution. This will be a prospective change.
Ranges from 9.66% to 4.92% based on service for Peace Officer/Firefighter. Ranges from 8.55% to
4.34% based on age and service for All Others.
The actuarial asset value was reinitialized to equal fair value of assets as of June 30, 2014. Beginning
in FY2015, the assets value method recognizes 20% of the gain or loss each year, for a period of 5
years, all assets are valued at fair value.
8%, net of pension plan investment expenses. This is based on an average inflation rate of 3.12% and
a real rate of return of 4.88%.
An age-related assumption is used for participants not yet receiving payments.
Pre-termination mortality rates were based upon the 2010-2013 actual mortality experience, 60% of
male and 65% of female post-termination rates. Deaths are assumed to be occupational 50% of the
time. 96% of all rates of the RP - 2000 Table Base Year projected to 2018.
contributions are reported.
3.12% per annum.
KODIAK ISLAND BOROUGH
Public Employees' Retirement System (PERS)
Schedule of Borough's Contributions (Pensions)
June 30, 2019
Actuarially determined contribution rates are calculated as of June 30th, two years prior to the fiscal year in which
Year
2015
2016
2017
June 30, 2018, which was rolled forward to June 30, 2019.
2018
2019
91
Contributions
Relative to the Contributions
Contractually Contractually Contribution Borough's as a Percentage
Required Required Deficiency Covered of Covered
Contribution Contribution (Excess) Payroll Payroll
Alaska Retiree Healthcare Trust Plan (ARHCT):
$ 137,930 $ (137,930) $ - $ 3,597,759 3.83%
$ 143,757 $ (143,757) $ - $ 3,249,981 4.42%
Occupational Death and Disability (ODD):
$ 3,283 $ (3,283) $ - $ 3,597,759 0.09%
$ 5,521 $ (5,521) $ - $ 3,249,981 0.17%
Retiree Medical Plan (RMP):
$ 19,210 $ (19,210) $ - $ 669,059 2.87%
$ 17,951 $ (17,951) $ - $ 665,832 2.70%
Notes to schedule
1. Valuation date:
2.
Methods and assumptions used to determine contribution rates:
3. Actuarial cost method: Entry Age Normal - level percentage of payroll.
4. Amortization method: Level dollar, closed.
5. Amortization period: 25 years, as a level of percentage of payroll.
6. Equivalent single amortization period: 17 years.
7. Asset valuation method:
8. Inflation:
9. Salary increases:
10.Investment rate of return:
11.Retirement age:
12.Mortality:
13.This schedule is intended to present 10 years of information. Additional years' information will be included as it becomes available.
Pre-termination mortality rates were based upon the 2010-2013 actual mortality experience, 60% of
male and 65% of female post-termination rates. Deaths are assumed to be occupational 50% of the
time. 96% of all rates of the RP - 2000 Table Base Year projected to 2018.
2018
June 30, 2018, which was rolled forward to June 30, 2019.
Actuarially determined contribution rates are calculated as of June 30th, two years prior to the fiscal year in which
contributions are reported.
The actuarial asset value was reinitialized to equal fair value of assets as of June 30, 2014. Beginning
in FY2015, the assets value method recognizes 20% of the gain or loss each year, for a period of 5
years, all assets are valued at fair value.
3.12% per annum.
Ranges from 9.66% to 4.92% based on service for Peace Officer/Firefighter. Ranges from 8.55% to
4.34% based on age and service for All Others.
8%, net of OPEB plan investment expenses. This is based on an average inflation rate of 3.12% and a
real rate of return of 4.88%.
An age-related assumption is used for participants not yet receiving payments.
2018
2018
2019
2019
2019
KODIAK ISLAND BOROUGH
Schedule of Borough's Contributions (OPEB)
Public Employees' Retirement System (PERS)
June 30, 2019
Year
92
ADDITIONAL SUPPLEMENTARY INFORMATION
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Debt Service Fund - Education
Year ended June 30, 2019
(With summarized financial information for the year ended June 30, 2018)
Variance with
Final Budget –
Positive 2018
Original Final Actual (Negative)Actual
Revenues:
Property taxes and assessments $2,557,405 2,557,405 2,598,320 40,915 2,711,114
Intergovernmental:
State sources 5,220,834 5,220,834 5,226,069 5,235 4,985,040
Investment income (loss)— — 1,213 1,213 (1,746)
Total revenues 7,778,239 7,778,239 7,825,602 47,363 7,694,408
Expenditures:
General government 17,299 356,281 7,726 348,555 16,059
Debt service:
Principal 4,425,000 4,425,000 4,425,000 — 3,870,000
Interest 3,245,932 3,253,411 3,253,414 (3) 3,408,310
Debt issuance — — 10,000 (10,000) —
Total expenditures 7,688,231 8,034,692 7,696,140 338,552 7,294,369
Excess (deficiency) of revenues
over expenditures 90,008 (256,453) 129,462 385,915 400,039
Other financing sources (uses):
Transfers in — 338,982 338,982 — 65,105
Transfers out (90,008) (90,008) (142,177) (52,169) (492,936)
Net other financing sources (uses) (90,008) 248,974 196,805 (52,169) (427,831)
Change in fund balance $— (7,479) 326,267 333,746 (27,792)
Fund balance, at beginning of year 207,204 234,996
Fund balance, at end of year $ 533,471 207,204
2019
Budget
93
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue
See Special Revenue section of this report.
Capital Projects
See Capital Projects section of this report.
KODIAK ISLAND BOROUGH
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2019
(With summarized financial information at June 30, 2018)
Special Capital
Revenue Project
Assets Funds Funds 2019 2018
Equity in central treasury $ 5,222,305 6,280,722 11,503,027 11,753,134
Receivables:
State of Alaska 13,049 1,265 14,314 11,276
Federal government — 251,409 251,409 231,570
Property taxes, net 23,847 18,624 42,471 70,858
Land sales contracts, due within one year 16,214 — 16,214 17,970
Accounts and other receivables, net 36,983 32,241 69,224 101,647
Prepaid items 1,311 — 1,311 4
Land sale contracts, due after one year 113,957 — 113,957 169,875
Total assets $ 5,427,666 6,584,261 12,011,927 12,356,334
Liabilities:
Accounts payable $185,231 83,850 269,081 1,713,709
Customer deposits 2,450 — 2,450 2,450
Due to other funds 52,994 1,423,729 1,476,723 709,233
Unearned revenues 27,600 9,648 37,248 33,161
Total liabilities 268,275 1,517,227 1,785,502 2,458,553
Deferred inflows of resources -
Unavailable revenues 147,478 14,847 162,325 187,845
Total liabilities and deferred
inflows of resources 415,753 1,532,074 1,947,827 2,646,398
Fund balances:
Nonspendable 1,311 — 1,311 4
Committed 5,010,602 — 5,010,602 4,297,940
Assigned — 5,899,049 5,899,049 5,588,158
Unassigned — (846,862) (846,862) (176,166)
Total fund balances 5,011,913 5,052,187 10,064,100 9,709,936
Total $ 5,427,666 6,584,261 12,011,927 12,356,334
Totals
Resources and Fund Balances
Liabilities, Deferred Inflows of
94
KODIAK ISLAND BOROUGH
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
Year ended June 30, 2019
(With summarized financial information for year ended June 30, 2018)
Special Capital
Revenue Project
Funds Funds 2019 2018
Revenues:
Property taxes and assessments $1,466,854 1,014,230 2,481,084 3,138,244
Transient accommodations tax 78,971 — 78,971 113,486
Intergovernmental:
State sources 72,992 10,186 83,178 64,105
Federal sources 7,294 336,241 343,535 253,674
Charges for services 845,654 — 845,654 876,635
Licenses, permits and fees 33,600 — 33,600 37,310
Investment income 219,957 138,292 358,249 69,341
Rental 12,000 — 12,000 14,400
Other 16,234 65,477 81,711 285,693
Total revenues 2,753,556 1,564,426 4,317,982 4,852,888
Expenditures:
Current:
General government 812,927 575 813,502 1,300,621
Public safety 599,026 — 599,026 684,499
Community and economic development 89,130 — 89,130 96,570
Service district maintenance 569,610 — 569,610 587,707
Capital outlay:
Schools — 2,092,006 2,092,006 2,958,053
General 11,940 979,463 991,403 2,029,456
Total expenditures 2,082,633 3,072,044 5,154,677 7,656,906
Excess (deficiency) of revenues
over expenditures 670,923 (1,507,618) (836,695) (2,804,018)
Other financing sources (uses):
Land sales proceeds 76,676 — 76,676 224,902
Proceeds from sale of capital assets 5,000 — 5,000 —
Proceeds from sale of bonds — 550,000 550,000 —
Transfers in 291,370 1,014,183 1,305,553 631,063
Transfers out (330,000) (416,370) (746,370) (207,000)
Net other financing sources (uses) 43,046 1,147,813 1,190,859 648,965
Change in fund balances 713,969 (359,805) 354,164 (2,155,053)
Fund balances, at beginning of year 4,297,944 5,411,992 9,709,936 11,864,989
Fund balances, at end of year $ 5,011,913 5,052,187 10,064,100 9,709,936
Totals
95
Fire
Fire Womens Kodiak Monashka Womens
Protection Bay Fire Airport Fire Bay Road Service Bay Road Bay View Road Service Area
Area No. 1 Department District Service Area Area No. 1 Service Area Service Area No. 2 L.E.P.C.
Equity in central treasury $ 270,686 642,514 42,301 225,212 849,162 161,242 41,926 6,169 —
Receivables:
State of Alaska — — — — — — — — 13,049
Federal government — — — — — — — — —
Property taxes, net 6,358 2,710 3,552 273 5,246 5,441 257 — —
Land sales contracts, due within one year — — — — — — — — —
Accounts and other receivables, net — — — — — — — — —
Prepaid items 1,311 — — — — — — — —
Land sale contracts, due after one year — — — — — — — — —
Total $ 278,355 645,224 45,853 225,485 854,408 166,683 42,183 6,169 13,049
Liabilities:
Accounts payable 16,859 1,157 — 21,889 18,881 — — — 1,100
Customer deposits — 1,450 — — — — — — —
Due to other funds 28,971 — — — — — — — 11,949
Unearned revenues — — — — — 27,600 — — —
Total liabilities 45,830 2,607 — 21,889 18,881 27,600 — — 13,049
Deferred inflows of resources:
Unavailable revenues 4,903 1,549 3,330 256 4,062 3,099 107 — —
Total liabilities and deferred
inflows of resources 50,733 4,156 3,330 22,145 22,943 30,699 107 — 13,049
Fund balances:
Nonspendable 1,311 — — — — — — — —
Committed 226,311 641,068 42,523 203,340 831,465 135,984 42,076 6,169 —
Total fund balances 227,622 641,068 42,523 203,340 831,465 135,984 42,076 6,169 —
Total $ 278,355 645,224 45,853 225,485 854,408 166,683 42,183 6,169 13,049
(continued)
Liabilities, Deferred Inflows of Resources,
and Fund Balances
State Grant
Program
Assets
Fire and Road Service Areas
Road
KODIAK ISLAND BOROUGH
Combining Balance Sheet
Nonmajor Special Revenue Funds
(With summarized financial information at June 30, 2018)
June 30, 2019
96
Woodland
Buildings Acres Street Trinity Islands Commercial
and Light Service Street Light Tourism Passenger Mission Lake Totals
Assets Land Sales Grounds Area Service Area Development Vessel Tide Gate 2019 2018
Equity in central treasury $ 1,333,245 1,335,317 34,029 30,207 147,148 43,287 59,860 5,222,305 4,243,187
Receivables:
State of Alaska — — — — — — — 13,049 10,663
Federal government — — — — — — — — 154,762
Property taxes, net — — 10 — — — — 23,847 35,144
Land sales contracts, due within one year 16,214 — — — — — — 16,214 17,970
Accounts and other receivables, net 11,300 4,095 — — 21,588 — — 36,983 47,460
Prepaid items — — — — — — — 1,311 4
Land sale contracts, due after one year 113,957 — — — — — — 113,957 169,875
Total $ 1,474,716 1,339,412 34,039 30,207 168,736 43,287 59,860 5,427,666 4,679,065
Liabilities:
Accounts payable 22,504 100,441 376 143 1,881 — — 185,231 138,611
Customer deposits 1,000 — — — — — — 2,450 2,450
Due to other funds 425 11,633 — — — — 16 52,994 49,984
Unearned revenues — — — — — — — 27,600 2,231
Total liabilities 23,929 112,074 376 143 1,881 — 16 268,275 193,276
Deferred inflows of resources:
Unavailable revenues 130,171 — 1 — — — — 147,478 187,845
Total liabilities and deferred
inflows of resources 154,100 112,074 377 143 1,881 — 16 415,753 381,121
Fund balances:
Nonspendable — — — — — — — 1,311 4
Committed 1,320,616 1,227,338 33,662 30,064 166,855 43,287 59,844 5,010,602 4,297,940
Total fund balances 1,320,616 1,227,338 33,662 30,064 166,855 43,287 59,844 5,011,913 4,297,944
Total $ 1,474,716 1,339,412 34,039 30,207 168,736 43,287 59,860 5,427,666 4,679,065
Liabilities, Deferred Inflows of Resources,
and Fund Balances
June 30, 2019
(With summarized financial information at June 30, 2018)
Street Lighting Districts
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Combining Balance Sheet, (continued)
97
State Grant
Fire Program
Fire Womens Kodiak Monashka Womens
Protection Bay Fire Airport Fire Bay Road Service Bay Road Bay View Road Service
Area No. 1 Department District Service Area Area No. 1 Service Area Service Area Area No. 2 L.E.P.C.
Revenues:
Property taxes and assessments $ 630,301 109,332 18,113 51,672 423,103 210,506 14,738 — —
Transient accommodations tax — — — — — — — — —
Intergovernmental -
State sources 6,618 — — — — — — — 16,144
Federal sources 7,294 — — — — — — — —
Charges for services — 16,701 — — — — — — —
Licenses, permits and fees — — — — — 27,600 — — —
Investment income 17,842 26,659 1,552 8,947 39,136 7,806 1,704 246 —
Rental — 12,000 — — — — — — —
Other 11,514 200 — — — — — — —
Total revenues 673,569 164,892 19,665 60,619 462,239 245,912 16,442 246 16,144
Expenditures:
Current:
General government — — — — — — — — —
Public safety 499,828 66,333 16,721 — — — — — 16,144
Community and economic
development — — — — — — — — —
Service district maintenance — — — 30,169 324,055 203,857 7,167 — —
Capital outlay - general 11,940 — — — — — — — —
Total expenditures 511,768 66,333 16,721 30,169 324,055 203,857 7,167 — 16,144
Excess (deficiency) of revenues
over expenditures 161,801 98,559 2,944 30,450 138,184 42,055 9,275 246 —
Other financing sources (uses):
Land sale proceeds — — — — — — — — —
Proceeds from sale of capital assets 5,000 — — — — — — — —
Transfers in — — — — — — — — —
Transfers out (125,000) (25,000) — — — (20,000) — — —
Net other financing sources (uses) (120,000) (25,000) — — — (20,000) — — —
Change in fund balances 41,801 73,559 2,944 30,450 138,184 22,055 9,275 246 —
Fund balances, at beginning of year 185,821 567,509 39,579 172,890 693,281 113,929 32,801 5,923 —
Fund balances, at end of year $227,622 641,068 42,523 203,340 831,465 135,984 42,076 6,169 —
(continued)
Fire and Road Service Areas
Road
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Year ended June 30, 2019
(With summarized financial information for the year ended June 30, 2018)
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
98
Buildings Woodland Acres Trinity Islands Commercial
and Street Light Street Light Tourism Passenger Mission Lake Totals
Land Sales Grounds Service Area Service Area Development Vessel Tide Gate 2019 2018
Revenues:
Property taxes and assessments $ — — 5,576 1,942 — — 1,571 1,466,854 1,402,168
Transient accommodations tax — — — — 78,971 — — 78,971 113,486
Intergovernmental - —
State sources 3,312 4,165 — — — 42,753 — 72,992 61,235
Federal sources — — — — — — — 7,294 159,846
Charges for services 11,049 817,904 — — — — — 845,654 876,635
Licenses, permits and fees 6,000 — — — — — — 33,600 37,310
Investment income 52,161 51,687 1,407 1,224 6,583 534 2,469 219,957 29,734
Rental — — — — — — — 12,000 14,400
Other 305 4,215 — — — — — 16,234 1,332
Total revenues 72,827 877,971 6,983 3,166 85,554 43,287 4,040 2,753,556 2,696,146
Expenditures:
Current:
General government 195,346 611,305 4,545 1,731 — — — 812,927 775,621
Public safety — — — — — — — 599,026 684,499
Community and economic
development — — — — 89,130 — — 89,130 96,570
Service district maintenance — — — — — — 4,362 569,610 587,707
Capital outlay - general — — — — — — — 11,940 1,203,024
Total expenditures 195,346 611,305 4,545 1,731 89,130 — 4,362 2,082,633 3,347,421
Excess (deficiency) of revenues
over expenditures (122,519) 266,666 2,438 1,435 (3,576) 43,287 (322) 670,923 (651,275)
Other financing sources (uses):
Land sales proceeds 76,676 — — — — — — 76,676 224,902
Proceeds from sale of capital assets — — — — — — — 5,000 —
Transfers in — 291,370 — — — — — 291,370 10,000
Transfers out — (115,000) — — (45,000) — — (330,000) (207,000)
Net other financing sources (uses) 76,676 176,370 — — (45,000) — — 43,046 27,902
Change in fund balances (45,843) 443,036 2,438 1,435 (48,576) 43,287 (322) 713,969 (623,373)
Fund balances, at beginning of year 1,366,459 784,302 31,224 28,629 215,431 — 60,166 4,297,944 4,921,317
Fund balances, at end of year $1,320,616 1,227,338 33,662 30,064 166,855 43,287 59,844 5,011,913 4,297,944
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Street Lighting Districts
Combining Statement of Revenues, Expenditures,
Year ended June 30, 2019
and Changes in Fund Balances, (continued)
(With summarized financial information for the year ended June 30, 2018)
99
NONMAJOR SPECIAL REVENUE FUNDS
The Fire Protection Area No. 1 Fund accounts for the activities related to fire suppression and fire prevention
services to the citizens of the service area.
The Womens Bay Fire Department Fund accounts for the activities related to fire suppression and fire prevention
services to the citizens of the service area.
The Kodiak Airport Fire District Fund accounts for the activities related to fire suppression and fire prevention
services to the citizens of the service area.
The Monashka Bay Road Service Area Fund accounts for the activities related to road services within the service
area.
The Service Area No. 1 Fund accounts for the activities related to maintenance service to roads within the district,
including snow removal, ditching and grading.
The Womens Bay Road Service Area Fund accounts for the activities related to maintenance service to roads
within the service area, including snow and ice removal, ditching and culvert work.
The Bay View Road Service Area Fund accounts for the activities related to road services within the service area.
The Service Area No. 2 Fund accounts for the activities related to water and sewer services in the service area.
This fund is in the design stage at present.
The Local Emergency Planning Committee (L.E.P.C.) Fund accounts for State of Alaska grants provided for
regional emergency preparation, response, and mitigation planning.
The Land Sales Fund accounts for the disposal of Borough-owned lands. The proceeds of land disposals are
generally used for the management of Borough lands.
The Buildings and Grounds Fund accounts for the operations and maintenance of certain buildings and grounds
owned by the Borough which are jointly shared with the City of Kodiak, the Kodiak Island Borough School
District, and certain nonprofit community organizations.
The Woodland Acres Street Light Service Area Fund accounts for activities related to the provision of street
lighting within the service area.
The Trinity Islands Street Light Service Area Fund accounts for activities related to the provision of street
lighting within the service area.
The Tourism Development Fund accounts for the collection of the Borough Transient Accommodation Tax (Bed
Tax) and Commercial Passenger Vessel tax revenues.
The Commercial Passenger Vessel Fund accounts for the collection of the Commercial Passenger Vessel Tax
revenue.
The Mission Lake Tide Gate Fund accounts for activities related to maintaining the tide gate for the residents of
the service area.
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Fire Protection Area No. 1
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 602,012 630,301 28,289 597,762
Intergovernmental:
State sources - PERS on behalf payment 4,988 6,618 1,630 3,522
Federal sources — 7,294 7,294 159,846
Investment income — 17,842 17,842 843
Other 1,500 11,514 10,014 1,030
Total revenues 608,500 673,569 65,069 763,003
Expenditures:
Public safety:
Personnel 119,990 116,752 3,238 117,880
Volunteers 40,000 45,735 (5,735) 28,260
Fringe benefits 87,336 82,532 4,804 84,469
Professional services — 9,215 (9,215) 10,502
Support goods and services 210,834 245,594 (34,760) 324,380
Total public safety 458,160 499,828 (41,668) 565,491
Capital outlay - general 93,200 11,940 81,260 1,123,974
Total expenditures 551,360 511,768 39,592 1,689,465
Excess (deficiency) of revenues
over expenditures 57,140 161,801 104,661 (926,462)
Other financing sources:
Proceeds from sale of capital assets — 5,000 5,000 —
Transfers in - General Fund 50,000 — (50,000) —
Transfers out - Other Capital Projects
Capital Project Fund — (125,000) (125,000) —
Net other financing sources (uses) 50,000 (120,000) (170,000) —
Change in fund balance $107,140 41,801 (65,339) (926,462)
Fund balance, at beginning of year 185,821 1,112,283
Fund balance, at end of year $ 227,622 185,821
2019
100
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Womens Bay Fire Department
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 102,939 109,332 6,393 101,828
Charges for services 17,211 16,701 (510) 15,366
Investment income 1,000 26,659 25,659 2,913
Rental 12,000 12,000 — 14,400
Other — 200 200 100
Total revenues 133,150 164,892 31,742 134,607
Expenditures:
Public safety:
Personnel services 7,000 984 6,016 1,674
Fringe benefits 3,255 547 2,708 801
Professional services 3,000 10,818 (7,818) 5,746
Support goods and services 120,150 53,984 66,166 79,921
Total public safety 133,405 66,333 67,072 88,142
Capital outlay - general 49,745 — 49,745 79,050
Total expenditures 183,150 66,333 116,817 167,192
Excess (deficiency) of revenues
over expenditures (50,000) 98,559 148,559 (32,585)
Other financing sources:
Transfers out - Other Capital Projects
Capital Project Fund — (25,000) 25,000 —
.
Change in fund balance $(50,000) 73,559 173,559 (32,585)
Fund balance, at beginning of year 567,509 600,094
Fund balance, at end of year $ 641,068 567,509
2019
101
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Kodiak Airport Fire District
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
2019
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 16,741 18,113 1,372 16,701
Investment income 200 1,552 1,352 192
Total revenues 16,941 19,665 2,724 16,893
Expenditures:
Public safety:
Professional services 16,921 16,701 220 15,366
Support goods and services 20 20 — —
Total expenditures 16,941 16,721 220 15,366
Excess of revenues over
expenditures $— 2,944 2,944 1,527
Fund balance, at beginning of year 39,579 38,052
Fund balance, at end of year $ 42,523 39,579
102
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Monashka Bay Road Service Area
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
2019
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 50,138 51,672 1,534 61,814
Investment income 600 8,947 8,347 807
Total revenues 50,738 60,619 9,881 62,621
Expenditures:
Service district maintenance:
Personnel services 1,092 — 1,092 60
Fringe benefits 562 — 562 17
Support goods and services 432 64 368 80
Snow removal/sanding 19,652 4,908 14,744 10,254
Road grading/ditching 13,000 3,304 9,696 10,285
Repairs and maintenance 16,000 21,893 (5,893) 2,563
Total expenditures 50,738 30,169 20,569 23,259
Excess of revenues over
expenditures $— 30,450 30,450 39,362
Fund balance, at beginning of year 172,890 133,528
Fund balance, at end of year $ 203,340 172,890
103
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Service Area No. 1
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2019
2019
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 406,500 423,103 16,603 400,031
Investment income — 39,136 39,136 10,862
Total revenues 406,500 462,239 55,739 410,893
Expenditures:
Service district maintenance:
Personnel services 8,800 5,702 3,098 5,865
Fringe benefits 2,900 1,105 1,795 1,291
Support goods and services 2,600 11,417 (8,817) 13,429
Snow removal/sanding 200,000 62,090 137,910 80,237
Road grading/ditching 60,000 49,282 10,718 47,140
Repairs and maintenance 132,200 194,459 (62,259) 216,608
Total expenditures 406,500 324,055 82,445 364,570
Excess of revenues over
expenditures $— 138,184 138,184 46,323
Fund balance, at beginning of year 693,281 646,958
Fund balance, at end of year $ 831,465 693,281
(With financial information for the year ended June 30, 2018)
104
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Womens Bay Road Service Area
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
2019
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Revenues:
Intergovernmental:
State sources - PERS on behalf payment $ 90 — (90) —
Property taxes and assessments 198,500 210,506 12,006 196,222
Licenses, permits and fees 27,600 27,600 — 27,600
Investment income — 7,806 7,806 551
Total revenues 226,190 245,912 19,722 224,373
Expenditures:
Service district maintenance:
Personnel services 1,500 — 1,500 274
Fringe benefits 884 — 884 177
Support goods and services 38,806 595 38,211 273
Snow removal/sanding 55,000 40,938 14,062 31,919
Road grading/ditching 40,000 46,345 (6,345) 72,102
Repairs and maintenance 90,000 115,979 (25,979) 89,917
Total expenditures 226,190 203,857 22,333 194,662
Excess of revenues over
expenditures — 42,055 42,055 29,711
Other financing sources (uses):
Transfers out -
Other Capital Projects Capital Project Fund (20,000) (20,000) — (25,000)
Change in fund balance $ (20,000) 22,055 42,055 4,711
Fund balance, at beginning of year 113,929 109,218
Fund balance, at end of year $ 135,984 113,929
105
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Bay View Road Service Area
Schedule of Revenues, Expenditures, and Changes in Fund
Budget and Actual
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
2019
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $13,879 14,738 859 13,879
Investment income 110 1,704 1,594 147
Total revenues 13,989 16,442 2,453 14,026
Expenditures:
Service district maintenance:
Personnel services 1,092 — 1,092 48
Fringe benefits 514 — 514 14
Professional services 5,879 — 5,879 —
Support goods and services — 23 (23) —
Snow removal/sanding 5,400 2,343 3,057 1,901
Road grading/ditching 1,100 1,789 (689) 1,891
Repairs and maintenance 1,500 3,012 (1,512) 721
Total expenditures 15,485 7,167 8,318 4,575
Excess (deficiency) of revenues
over expenditures $(1,496) 9,275 10,771 9,451
Fund balance, at beginning of year 32,801 23,350
Fund balance, at end of year $ 42,076 32,801
106
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas – Service Area No. 2
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
2019
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Revenues:
Investment income $25 246 221 30
Expenditures:
Service district maintenance:
Support goods and services 25 — 25 —
Excess of revenues over
expenditures $— 246 246 30
Fund balance, at beginning of year 5,923 5,893
Fund balance, at end of year $ 6,169 5,923
107
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
L.E.P.C.
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
2019
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Revenues:
Intergovernmental:
State sources – grants $15,500 16,144 644 15,500
Expenditures:
Public safety:
Personnel services 7,609 4,661 2,948 6,374
Fringe benefits 5,219 3,689 1,530 4,474
Support goods and services 2,672 7,794 (5,122) 4,652
Total expenditures 15,500 16,144 (644) 15,500
Excess of revenues
over expenditures $— — — —
Fund balance, at beginning of year — —
Fund balance, at end of year $ — —
108
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Land Sales
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
2019
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Revenues:
Intergovernmental:
State sources - PERS on behalf payment $5,205 3,312 (1,893) 2,467
Charges for services 5,000 11,049 6,049 12,879
Licenses, permits and fees 6,750 6,000 (750) 9,710
Investment income — 52,161 52,161 7,173
Other 500 305 (195) 80
Total revenues 17,455 72,827 55,372 32,309
Expenditures:
General government:
Personnel services 90,759 70,151 20,608 87,486
Fringe benefits 63,576 45,525 18,051 54,028
Professional services 80,000 22,503 57,497 176,656
Support goods and services 108,716 57,167 51,549 33,251
Total expenditures 343,051 195,346 147,705 351,421
Excess (deficiency) of revenues
over expenditures (325,596) (122,519) 203,077 (319,112)
Other financing sources -
Land sale proceeds 50,264 76,676 26,412 224,902
Change in fund balance $(275,332) (45,843) 229,489 (94,210)
Fund balance, at beginning of year 1,366,459 1,460,669
Fund balance, at end of year $ 1,320,616 1,366,459
109
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Buildings and Grounds
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
2019
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Revenues:
Intergovernmental:
State sources - PERS on behalf payment $6,318 4,165 (2,153) 2,121
Charges for services 817,904 817,904 — 848,390
Investment income 3,300 51,687 48,387 4,635
Other — 4,215 4,215 122
Total revenues 827,522 877,971 50,449 855,268
Expenditures:
General government:
School buildings 269,413 141,133 128,280 31,142
Borough building 896,111 433,048 463,063 359,036
Mental health center 31,962 29,216 2,746 24,371
Various borough buildings 15,000 7,908 7,092 3,185
Total expenditures 1,212,486 611,305 601,181 417,734
Excess of revenues over expenditures (384,964) 266,666 651,630 437,534
Other financing sources (uses):
Transfers in:
Facilities Special Revenue Fund 5,000 5,000 — 10,000
Renewal and Replacement Projects
Capital Project Fund 336,370 286,370 (50,000) —
Transfers out:
Other Capital Projects Capital Project Fund (100,000) (115,000) (15,000) —
Renewal and Replacement Projects
Capital Project Fund — — — (137,000)
Net other financing sources (uses)241,370 176,370 (65,000) (127,000)
Change in fund balance $ (143,594) 443,036 586,630 310,534
Fund balance, at beginning of year 784,302 473,768
Fund balance, at end of year $ 1,227,338 784,302
110
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Woodland Acres Street Light Service Area
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2019
2019
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 5,268 5,576 308 5,241
Investment income 150 1,407 1,257 160
Total revenues 5,418 6,983 1,565 5,401
Expenditures:
General government:
Support goods and services 5,418 4,545 873 4,671
Excess of revenues over
expenditures $— 2,438 2,438 730
Fund balance, at beginning of year 31,224 30,494
Fund balance, at end of year $ 33,662 31,224
(With financial information for the year ended June 30, 2018)
111
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Trinity Islands Street Light Service Area
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
2019
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 1,874 1,942 68 2,498
Investment income 130 1,224 1,094 147
Total revenues 2,004 3,166 1,162 2,645
Expenditures:
General government:
Support goods and services 2,004 1,731 273 1,795
Excess of revenues over
expenditures $— 1,435 1,435 850
Fund balance, at beginning of year 28,629 27,779
Fund balance, at end of year $ 30,064 28,629
112
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Tourism Development
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
2019
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Revenues:
Transient accommodations tax $ 98,000 78,971 (19,029) 113,486
Intergovernmental - State sources -
Commercial passenger vessel tax — — — 37,625
Investment income 600 6,583 5,983 976
Total revenues 98,600 85,554 (13,046) 152,087
Expenditures:
Community and economic development:
Contributions 87,000 88,890 (1,890) 96,501
Support goods and services 500 240 260 69
Total expenditures 87,500 89,130 (1,630) 96,570
Excess (deficiency) of revenues
over expenditures 11,100 (3,576) (14,676) 55,517
Other financing sources (uses) -
Transfers out - Kodiak Fisheries Research
Center Enterprise Fund (45,000) (45,000) — (45,000)
Change in fund balance $(33,900) (48,576) (14,676) 10,517
Fund balance, at beginning of year 215,431 204,914
Fund balance, at end of year $ 166,855 215,431
113
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Commercial Passenger Vessel
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
2019
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Revenues:
Intergovernmental - State sources -
Commercial passenger vessel tax $ 42,753 42,753 — —
Investment income — 534 534 —
Total revenues 42,753 43,287 534 —
Expenditures:
Community and economic development -
Support goods and services 42,753 — 42,753 —
Excess of revenues
over expenditures $— 43,287 43,287 —
Fund balance, at beginning of year — —
Fund balance, at end of year $ 43,287 —
114
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Mission Lake Tide Gate
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
2019
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 1,548 1,571 23 6,192
Investment income 250 2,469 2,219 298
Total revenues 1,798 4,040 2,242 6,490
Expenditures:
Service district maintenance:
Personnel services 133 198 (65) 383
Fringe benefits 106 146 (40) 251
Professional services 4,048 4,015 33 —
Support goods and services 111 3 108 7
Total expenditures 4,398 4,362 36 641
Excess (deficiency) of revenues
over expenditures $(2,600) (322) 2,278 5,849
Fund balance, at beginning of year 60,166 54,317
Fund balance, at end of year $ 59,844 60,166
115
NONMAJOR CAPITAL PROJECT FUNDS
NONMAJOR CAPITAL PROJECT FUNDS
The Borough Capital Projects Fund accounts for capital improvement projects
related to various financing sources.
The School Bond Capital Projects Fund accounts for educational related capital
projects funded by general obligation bonds which will be paid for with property taxes
and State of Alaska grants.
The State Capital Grants Fund accounts for capital improvement projects relating
to grants received from the State of Alaska.
The Kodiak High School Renovation Fund accounts for the construction and major
maintenance activities for the Borough’s educational facilities funded by bonds, which
will be paid for with property taxes and various grants.
The Renewal and Replacement Projects Fund accounts for renewal and replacement
projects which will be paid for with property taxes and other various financing sources.
The School Renewal and Replacement Facilities Bond Projects Fund accounts for
construction and maintenance for the Borough’s educational facilities funded by
bonds, which will be paid for with property taxes and various grants.
The Other Capital Projects Fund accounts for capital improvement projects related
to various financing sources.
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Funds
Combining Balance Sheet
June 30, 2019
School Renewal
Borough School Bond State Kodiak High Renewal and and Replacement Other
Capital Capital Capital School Replacement Facilities Bond Capital
Assets Projects Projects Grants Renovation Projects Projects Projects 2019 2018
Equity in central treasury $384,941 681,164 441,317 337,688 2,149,417 — 2,286,195 6,280,722 7,509,947
Receivables:
State of Alaska — — 1,265 — — — — 1,265 613
Federal government — — — — — — 251,409 251,409 76,808
Property taxes — — — — 18,624 — — 18,624 35,714
Accounts and other receivables, net — — 3,152 — 29,089 — — 32,241 54,187
Total $ 384,941 681,164 445,734 337,688 2,197,130 — 2,537,604 6,584,261 7,677,269
Liabilities and Fund Balances
Liabilities:
Accounts payable 575 — — — — 78,518 4,757 83,850 1,575,098
Due to other funds — 653,783 260 — 433 768,344 909 1,423,729 659,249
Unearned revenues — — — — — — 9,648 9,648 30,930
Total liabilities 575 653,783 260 — 433 846,862 15,314 1,517,227 2,265,277
Deferred inflows of resources:
Unavailable revenues — — — — 14,847 — — 14,847 —
Total liabilities and deferred
inflows of resources 575 653,783 260 — 15,280 846,862 15,314 1,532,074 2,265,277
Fund balances (deficit):
Assigned 384,366 27,381 445,474 337,688 2,181,850 — 2,522,290 5,899,049 5,588,158
Unassigned — — — — — (846,862) — (846,862) (176,166)
Total fund balances (deficit) 384,366 27,381 445,474 337,688 2,181,850 (846,862) 2,522,290 5,052,187 5,411,992
Total $ 384,941 681,164 445,734 337,688 2,197,130 — 2,537,604 6,584,261 7,677,269
Totals
(With summarized financial information at June 30, 2018)
116
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficit)
Year ended June 30, 2019
School Renewal
Borough School Bond State Kodiak High Renewal and and Replacement Other
Capital Capital Capital School Replacement Facilities Bond Capital
Projects Projects Grants Renovation Projects Projects Projects 2019 2018
Revenues:
Property taxes and assessments $— — — — 1,014,230 — — 1,014,230 1,736,076
Intergovernmental:
State sources — — 4,866 — — — 5,320 10,186 2,870
Federal sources — — — — — — 336,241 336,241 93,828
Investment income (loss)7,030 14,530 17,617 4,512 — (46) 94,649 138,292 39,607
Other — — — 30,000 35,477 — — 65,477 284,361
Total revenues 7,030 14,530 22,483 34,512 1,049,707 (46) 436,210 1,564,426 2,156,742
Expenditures:
General government 575 — — — — — — 575 525,000
Capital outlay:
Schools — — — 70,658 32,970 1,988,378 — 2,092,006 2,958,053
General — — 4,866 — 74,465 — 900,132 979,463 826,432
Total expenditures 575 — 4,866 70,658 107,435 1,988,378 900,132 3,072,044 4,309,485
Excess (deficiency) of revenues
over expenditures 6,455 14,530 17,617 (36,146) 942,272 (1,988,424) (463,922) (1,507,618) (2,152,743)
Other financing sources (uses):
Proceeds from sales of bonds — — — 550,000 — — — 550,000 —
Transfers in 265,200 — — — 333,983 — 415,000 1,014,183 621,063
Transfers out — — — — (416,370) — — (416,370) —
Net other financing sources (uses)265,200 — — 550,000 (82,387) — 415,000 1,147,813 621,063
Change in fund balances 271,655 14,530 17,617 513,854 859,885 (1,988,424) (48,922) (359,805) (1,531,680)
Fund balances (deficit), at beginning of year 112,711 12,851 427,857 (176,166) 1,321,965 1,141,562 2,571,212 5,411,992 6,943,672
Fund balances (deficit), at end of year $384,366 27,381 445,474 337,688 2,181,850 (846,862) 2,522,290 5,052,187 5,411,992
Totals
(With summarized financial information for the year ended June 30, 2018)
117
ENTERPRISE FUNDS
ENTERPRISE FUNDS
The Municipal Solid Waste Collection and Disposal Fund accounts for the
collection and disposal of solid waste and recycling services for the Kodiak Island
Borough.
The Hospital Facilities Fund accounts for rents on the Borough-owned hospital and
makes debt service payment on hospital related debt.
The Long Term Care Center Fund accounts for rents on the Borough-owned long
term care center and other related revenue. In turn, it makes debt service payments on
the long term care center related debt.
The Kodiak Fisheries Research Center Fund accounts for rents and expenses on the
Borough-owned Kodiak Fisheries Research Center. This facility, which contains salt-
water lab facilities, and its tenants are committed to the preservation of the North
Pacific marine ecosystem and resources.
The 911 Service Fund accounts for the collection and payment of a surcharge on
phone lines which is passed through to the City of Kodiak for a 911 emergency system.
KODIAK ISLAND BOROUGH
Municipal Solid Waste Collection and Disposal
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Operating revenues:
Solid waste disposal $4,034,053 4,465,387 431,334 3,813,343
Other 5,000 4,912 (88) 1,434
Total operating revenues 4,039,053 4,470,299 431,246 3,814,777
Operating expenses:
Personnel services 1,448,890 1,078,751 370,139 1,117,408
Contracted services 218,408 389,331 (170,923) 299,815
Maintenance and repairs 119,260 164,648 (45,388) 101,429
Depreciation 296,570 288,234 8,336 293,749
General and administration 671,060 467,282 203,778 450,051
Recycling services 250,000 270,588 (20,588) 259,824
Closure and postclosure costs 730,000 295,000 435,000 367,702
Contributions 40,000 37,040 2,960 36,383
Total operating expenses 3,774,188 2,990,874 783,314 2,926,361
Operating income (loss)264,865 1,479,425 1,214,560 888,416
Other income (expense):
Intergovernmental:
State of Alaska on-behalf payment 49,980 21,847 (28,133) 35,503
Investment income 19,000 306,914 287,914 32,435
Interest expense (303,513) (296,828) 6,685 (319,165)
Total other income (expense)(234,533) 31,933 266,466 (251,227)
Change in net position $ 30,332 1,511,358 1,481,026 637,189
Net position, at beginning of year 15,568,160 14,930,971
Net position, at end of year $ 17,079,518 15,568,160
Enterprise Funds
2019
118
KODIAK ISLAND BOROUGH
Hospital Facilities
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Operating revenues:
Lease income $1,384,272 1,384,272 — 1,384,272
Operating expenses:
Personnel services 40,319 46,175 (5,856) 34,000
Depreciation 1,062,092 1,062,307 (215) 1,085,223
General and administration 347,861 91,314 256,547 22,818
Miscellaneous — 2,175 (2,175) 270,109
Total operating expenses 1,450,272 1,201,971 248,301 1,412,150
Operating income (loss)(66,000) 182,301 248,301 (27,878)
Other income (expense):
Investment income 68,414 101,495 33,081 23,850
Change in net position $2,414 283,796 281,382 (4,028)
Net position, at beginning of year 15,968,655 15,972,683
Net position, at end of year $ 16,252,451 15,968,655
Enterprise Funds
2019
119
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Operating revenues:
Lease income $1,043,628 1,043,628 — 1,093,475
Operating expenses:
Contracted services 50,420 3,150 47,270 —
Depreciation 518,933 518,933 — 518,933
General and administration 28,500 18,927 9,573 16,040
Total operating expenses 597,853 541,010 56,843 534,973
Operating income 445,775 502,618 56,843 558,502
Other income (expense):
Investment income 32,300 124,262 91,962 2,753
Interest expense (478,075) (418,998) 59,077 (473,059)
Total other income (expense)(445,775) (294,736) 151,039 (470,306)
Change in net position $— 207,882 207,882 88,196
Net position, at beginning of year 6,383,883 6,295,687
Net position, at end of year $ 6,591,765 6,383,883
KODIAK ISLAND BOROUGH
2019
Year ended June 30, 2019
Budget and Actual
Changes in Net Position
Schedule of Revenues, Expenses, and
Long Term Care Center
Enterprise Funds
(With financial information for the year ended June 30, 2018)
120
KODIAK ISLAND BOROUGH
Kodiak Fisheries Research Center
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Operating revenues:
Lease income $ 754,654 820,167 65,513 826,647
Other — 19,745 19,745 —
Total operating revenues 754,654 839,912 85,258 826,647
Operating expenses:
Personnel services 268,917 269,255 (338) 294,919
Maintenance and repairs 16,000 43,552 (27,552) 56,037
Depreciation 696,476 696,476 — 698,482
General and administration:
Support goods and services 293,437 15,286 278,151 10,351
Cleaning and janitorial 42,351 61,910 (19,559) 61,444
Heating 101,500 76,772 24,728 87,610
Electrical 151,800 152,130 (330) 136,858
Plumbing 72,500 46,548 25,952 64,099
Air conditioning 1,500 2,750 (1,250) 981
Elevators 2,500 2,363 137 2,250
Miscellaneous 189,728 204,601 (14,873) 9,306
Total operating expenses 1,836,709 1,571,643 265,066 1,422,337
Operating income (loss) (1,082,055) (731,731) 330,579 (595,690)
Other income (expense):
Intergovernmental:
State of Alaska on-behalf payment 8,290 5,513 (2,777) 9,006
Investment income 10,000 89,585 79,585 10,833
Interest revenue 51,155 51,155 — 55,214
Total other income (expense)69,445 146,253 76,808 75,053
Income (loss) before transfers (1,012,610) (585,478) 427,132 (520,637)
Transfers in 45,000 45,000 — 45,000
Change in net position $(967,610) (540,478) 427,132 (475,637)
Net position, at beginning of year 11,743,105 12,218,742
Net position, at end of year $ 11,202,627 11,743,105
Enterprise Funds
2019
121
KODIAK ISLAND BOROUGH
Enterprise Funds
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2019
(With financial information for the year ended June 30, 2018)
Variance with
Final Budget
Final Positive 2018
Budget Actual (Negative)Actual
Operating revenues:
Other $250,000 300,079 50,079 255,617
Operating expenses:
Personnel services 1,500 1,500 — 1,500
General and administration 100 295 (195) 133
Telephone services 248,400 298,265 (49,865) 253,984
Total operating expenses 250,000 300,060 (50,060) 255,617
Operating income $— 19 19 —
Net position, at beginning of year — —
Net position, at end of year $ 19 —
2019
911 Service Fund
122
SUPPLEMENTARY SCHEDULES
Fiscal Year Principal Interest Total
2020 4,605,000$ 3,063,032$ 7,668,032$
2021 4,800,000 2,873,382 7,673,382
2022 5,020,000 2,653,882 7,673,882
2023 5,250,000 2,418,719 7,668,719
2024 5,505,000 2,163,708 7,668,708
2025 5,780,000 1,885,645 7,665,645
2026 4,585,000 1,651,321 6,236,321
2027 3,885,000 1,445,608 5,330,608
2028 4,075,000 1,251,627 5,326,627
2029 3,645,000 1,062,889 4,707,889
2030 3,830,000 881,178 4,711,178
2031 4,015,000 692,854 4,707,854
2032 3,590,000 501,672 4,091,672
2033 3,770,000 322,897 4,092,897
2034 2,240,000 155,057 2,395,057
2035 580,000 43,323 623,323
2036 610,000 14,713 624,713
65,785,000$ 23,081,507$ 88,866,507$
SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS TO MATURITY
KODIAK ISLAND BOROUGH
June 30, 2019
Annual principal and interest requirements on General Obligation Bonds.
123
Fiscal year Interest rate
Interest due
September 01
Principal due
April 01
Interest due
March 01 Total
2020 3.70%133,900$ 355,000$ 133,900$ 622,800$
2021 3.93%126,800 370,000 126,800 623,600
2022 4.80%119,400 385,000 119,400 623,800
2023 4.80%110,256 405,000 110,256 625,512
2024 4.80%100,638 425,000 100,638 626,276
2025 5.20%90,544 445,000 90,544 626,088
2026 5.20%79,975 465,000 79,975 624,950
2027 5.20%68,931 485,000 68,931 622,862
2028 5.20%56,503 510,000 56,503 623,006
2029 5.20%43,434 535,000 43,434 621,868
2030 5.20%29,725 565,000 29,725 624,450
2031 5.20%15,247 595,000 15,247 625,494
975,353$ 5,540,000$ 975,353$ 7,490,706$
The 2011 Series One General Obligation School Bonds were issued to provide funds for school and related capital
improvements in the Borough, specifically to provide a portion of the funds needed for the Kodiak High School
Addition and Renovation.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
RETIREMENT SCHEDULE
June 30, 2019
2011 Series One
124
Fiscal Year
Interest
Rate
Interest Due
September 1
Principal Due
September 1
Interest due
March 1 Total
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
297,825$ 3,365,000$ 216,425$ 3,879,250$
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
June 30, 2019
2012 Series A
125
Fiscal Year
Interest
Rate
Interest Due
September 1
Principal Due
September 1
Interest due
March 1 Total
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
363,400$ 4,110,000$ 263,975$ 4,737,375$
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
RETIREMENT SCHEDULE
June 30, 2019
The 2012 Series B 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
126
Fiscal Year
Interest
Rate
Interest Due
August 01
Principal Due
February 01
Interest due
February 01 Total
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
3,323,755$ 17,005,000$ 3,323,755$ 23,652,510$
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
RETIREMENT SCHEDULE
June 30, 2019
The 2013 Series One General Obligation School Bonds were issued to provide funds for school and related capital
improvements in the Borough, specifically to provide a portion of the funds needed for the Kodiak High School Addition
and Renovation.
2013 Series One
127
Fiscal Year
Interest
Rate
Interest Due
September 01
Principal Due
March 01
Interest Due
March 01 Total
2020 2.00%437,556$ 900,000$ 437,556$ 1,775,112$
2021 5.00%428,556 915,000 428,556 1,772,112
2022 5.00%405,681 965,000 405,681 1,776,362
2023 5.00%381,556 1,010,000 381,556 1,773,112
2024 5.00%356,306 1,060,000 356,306 1,772,612
2025 3.12%329,806 1,110,000 329,806 1,769,612
2026 5.00%312,463 1,150,000 312,463 1,774,926
2027 5.00%283,713 1,205,000 283,713 1,772,426
2028 5.00%253,588 1,265,000 253,588 1,772,176
2029 5.00%221,963 1,330,000 221,963 1,773,926
2030 5.00%188,713 1,395,000 188,713 1,772,426
2031 4.50%153,838 1,465,000 153,838 1,772,676
2032 5.00%120,875 1,535,000 120,875 1,776,750
2033 5.00%82,500 1,610,000 82,500 1,775,000
2034 5.00%42,250 1,690,000 42,500 1,774,750
3,999,364$ 18,605,000$ 3,999,614$ 26,603,978$
The 2014 Series One General Obligation School Bonds were issued to provide funds for school and related capital
improvements in the Borough, specifically to provide a portion of the funds needed for the Kodiak High School Addition
and Renovation.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
RETIREMENT SCHEDULE
June 30, 2019
2014 Series One
128
Fiscal Year
Interest
Rate
Interest Due
October 01
Principal Due
October 01
Interest Due
April 01 Total
2020 5.00%141,106$ 215,000$ 135,731$ 491,837$
2021 5.00%135,731 225,000 130,106 490,837
2022 5.00%130,106 240,000 124,106 494,212
2023 5.00%124,106 250,000 117,856 491,962
2024 5.00%117,856 265,000 111,231 494,087
2025 5.00%111,231 275,000 104,356 490,587
2026 5.00%104,356 290,000 97,106 491,462
2027 5.00%97,106 305,000 89,481 491,587
2028 5.00%89,481 320,000 81,481 490,962
2029 5.00%81,481 335,000 73,106 489,587
2030 5.00%73,106 355,000 64,231 492,337
2031 4.00%64,231 370,000 56,831 491,062
2032 5.25%56,831 390,000 46,594 493,425
2033 5.25%46,594 410,000 35,831 492,425
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
1,446,297$ 5,610,000$ 1,305,191$ 8,361,488$
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
RETIREMENT SCHEDULE
June 30, 2019
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 Three
129
Fiscal Year
Interest
Rate
Interest Due
October 01
Principal Due
October 01
Interest Due
April 01 Total
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
140,000$ 1,330,000$ 106,750$ 1,576,750$
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
June 30, 2019
2015 Series Three
130
Fiscal Year
Interest
Rate
Interest Due
August 01
Principal Due
August 01
Interest Due
February 01 Total
2020 5.00%31,959$ 70,000$ 30,209$ 132,168$
2021 5.00%30,209 75,000 28,334 133,543
2022 5.00%28,334 80,000 26,334 134,668
2023 5.00%26,334 80,000 24,334 130,668
2024 5.00%24,334 85,000 22,209 131,543
2025 5.00%22,209 90,000 19,959 132,168
2026 5.00%19,959 95,000 17,584 132,543
2027 2.00%17,584 100,000 16,584 134,168
2028 4.00%16,584 100,000 14,584 131,168
2029 4.00%14,584 105,000 12,484 132,068
2030 2.63%12,484 110,000 11,041 133,525
2031 3.00%11,041 110,000 9,391 130,432
2032 3.00%9,391 115,000 7,666 132,057
2033 3.00%7,666 120,000 5,866 133,532
2034 3.00%5,866 120,000 4,066 129,932
2035 3.13%4,066 125,000 2,113 131,179
2036 3.25%2,113 130,000 - 132,113
284,717$ 1,710,000$ 252,758$ 2,247,475$
The 2016 Series One General Obligation School Bonds were issued to provide funds for school and related capital
improvements in the Borough, specifically to provide for the Kodiak High School Addition and Renovation.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2016 Series One
RETIREMENT SCHEDULE
June 30, 2019
131
Fiscal Year
Interest
Rate
Interest Due
August 01
Principal Due
August 01
Interest Due
February 01 Total
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
419,875$ 4,000,000$ 319,875$ 4,739,750$
The 2016 Series One General Obligation School Bonds were issued to provide funds for school and related capital
improvements in the Borough, specifically to provide for school facility renewal and replacement needs.
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2016 Series One
RETIREMENT SCHEDULE
June 30, 2019
132
Fiscal Year
Interest
Rate
Interest Due
December 01
Principal Due
December 01
Interest Due
June 01 Total
2020 4.00%106,275$ 415,000$ 97,975$ 619,250$
2021 4.00%97,975 430,000 89,375 617,350
2022 4.00%89,375 450,000 80,375 619,750
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
586,750$ 4,510,000$ 480,475$ 5,577,225$
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
June 30, 2019
133
STATISTICAL SECTION
STATISTICAL SECTION
This part of the Kodiak Island Borough’s comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the government’s overall financial
health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand
how the government’s financial performance and well-being have changed
over time. 134-138
Revenue Capacity
These schedules contain information to help the reader assess the government’s
most significant local revenue source, the property tax. 139-142
Debt Capacity
These schedules present information to help the reader assess the afford ability
of the government’s current levels of outstanding debt and the gov ernment’s
ability to issue additional debt in the future. 143-147
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the government’s financial
activities take place. 148-154
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports
for the relevant year.
2010 2011 2012 2013 2014
Governmental activities:
Net investment in capital assets $ 77,447,045 $ 81,789,375 $ 85,285,497 $ 72,773,598 $ 80,159,521
Unrestricted 48,992,902 47,094,977 48,265,320 47,149,835 46,754,461
Total governmental activities net assets $126,439,947 $128,884,352 $133,550,817 $119,923,433 $126,913,982
Business-type activities:
Net investment in capital assets $ 36,655,859 $ 35,170,143 $ 31,967,945 $ 21,628,143 $ 36,383,229
Unrestricted (598,367) 1,137,826 4,532,561 20,750,321 12,115,258
Total business-type activities net assets $36,057,492 $36,307,969 $36,500,506 $42,378,464 $48,498,487
Primary government:
Net investment in capital assets $ 118,445,234 $ 116,959,518 $ 117,253,442 $ 94,401,741 $ 116,542,750
Unrestricted 46,496,610 48,232,803 52,797,881 67,900,156 58,869,719
Total primary government net assets $162,497,439 $165,192,321 $170,051,323 $162,301,897 $175,412,469
2015 2016 2017 2018 2019
Governmental activities:
Net investment in capital assets $ 82,616,865 $ 80,747,617 $ 80,857,151 $ 85,569,631 89,375,692
Unrestricted 43,472,334 47,678,271 48,293,582 46,105,327 50,237,644
Total governmental activities net assets $126,089,199 $128,425,888 $129,150,733 $131,674,958 139,613,336
Business-type activities:
Net investment in capital assets $ 43,884,340 $ 37,381,997 $ 40,098,010 $ 39,508,817 39,405,949
Unrestricted 5,239,974 12,436,280 9,584,434 10,154,986 11,720,431
Total business-type activities net assets $49,124,314 $49,818,277 $49,682,444 $49,663,803 51,126,380
Primary government:
Net investment in capital assets $ 126,501,205 $ 118,129,614 $ 120,955,161 $ 125,078,448 128,781,641
Unrestricted 48,712,308 60,114,551 57,878,016 56,260,313 61,958,075
Total primary government net assets $175,213,513 $178,244,165 $178,833,177 $181,338,761 190,739,716
Source: Borough general ledger
Fiscal Year
Fiscal Year
KODIAK ISLAND BOROUGH
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
134
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Expenses
Governmental activities:
General government $ 4,479,415 $ 5,109,232 $ 4,281,383 $ 7,398,899 $ 6,990,640 $ 5,637,239 $ 7,850,988 $ 7,156,087 $ 6,692,530 5,209,588
Public safety 612,763 664,349 622,396 644,197 751,637 663,145 798,079 1,028,240 1,256,992 936,083
Community and economic development 1,034,686 1,211,189 1,195,237 1,070,991 964,377 886,613 1,167,367 1,136,303 1,152,197 1,133,265
Emergency preparedness 10,511 11,705 21,423 278,480 12,487 31,628 30,849 35,861 43,038 14,307
Health and sanitation 406,087 392,011 391,996 290,800 326,700 406,093 389,000 233,999 207,500 182,900
Education, culture, and recreation 192,182 85,690 64,289 84,273 218,013 335,854 2,996,004 17,562 4,665 70,472
Parks and recreation - 13,625 5,825 21,100 37,795 161,596 87,456 30,172 77,186 43,368
Service district maintenance 543,897 593,388 705,665 479,264 631,572 534,376 626,289 475,248 587,707 645,533
Primary and secondary education 12,423,691 12,834,349 11,998,842 13,930,919 14,523,509 14,316,695 11,225,022 14,162,868 12,695,233 13,219,790
Interest on long-term debt 1,336,068 1,508,052 1,188,945 1,254,225 2,109,406 3,063,649 3,194,612 3,060,520 2,673,238 2,500,440
Total governmental activities expenses 21,039,300 22,423,590 20,476,001 25,453,148 26,566,136 26,036,888 28,365,666 27,336,860 25,390,286 23,955,746
Business-type activities:
Municipal solid waste collection and disposal 4,283,148 2,192,132 2,345,752 2,342,006 2,080,864 2,468,058 4,764,871 3,296,817 3,245,526 3,287,702
Hospital facilities 1,035,020 1,027,615 1,016,882 1,091,035 1,740,525 1,763,636 2,058,690 1,284,657 1,412,150 1,201,971
Long Term Care Center - - - - - - - 1,128,059 1,008,032 960,008
Kodiak Fisheries Research Center 1,927,580 1,847,427 1,746,952 1,775,062 1,681,111 1,486,620 1,555,116 1,532,010 1,422,337 1,571,643
911 services 42,474 53,041 2,615 87,596 39,817 33,961 30,417 28,409 255,617 300,060
Total business-type activities expenses 7,288,222 5,120,215 5,112,201 5,295,699 5,542,317 5,752,275 8,409,094 7,269,952 7,343,662 7,321,384
Total primary government expenses 28,327,522 27,543,805 25,588,202 30,748,847 32,108,453 31,789,163 36,774,760 34,606,812 32,733,948 31,277,130
Program Revenues
Governmental activities:
Charges for services:
General government $ 703,431 $ 658,463 $ 673,050 $ 549,100 $ 577,350 $ 540,052 $ 682,664 $ 2,874,794 $ 873,043 966,852
Public safety 12,762 33,755 11,646 13,849 14,336 13,601 16,610 14,716 15,366 16,701
Community and economic development - - - - - - - - - -
Health and sanitation - - - - - - - - - -
Education, culture, and recreation - - - - - - - - - -
Service district maintenance 25,000 27,600 1 94,076 110,313 114,516 66,151 111,146 90,450 27,600
Primary and secondary education - - - - - - - - - -
Operating grants and contributions 2,306,394 2,295,661 2,479,263 2,917,662 4,077,510 4,305,691 4,813,838 4,226,913 5,614,105 5,611,754
Capital grants 6,518,798 3,241,219 574,439 2,212,524 6,651,737 3,002,933 3,216,270 885,493 96,698 346,427
Total governmental activities program revenues 9,566,385 6,256,698 3,738,399 5,787,211 11,431,246 7,976,793 8,795,533 8,113,062 6,689,662 6,969,334
Business-type activities:
Charges for services:
Municipal solid waste collection and disposal 4,350,369 2,397,979 2,301,757 2,504,035 2,265,967 2,611,854 2,859,436 3,105,560 3,813,343 4,465,387
Hospital facilities 1,867,990 720,000 720,000 720,000 1,150,000 1,759,789 1,959,827 660,000 1,384,272 1,384,272
Long Term Care Center - - - - - - - 1,119,929 1,093,475 1,043,628
Kodiak Fisheries Research Center 1,610,775 2,018,747 1,636,728 1,603,503 1,851,322 2,267,032 3,353,718 847,642 818,138 820,167
911 services 42,474 53,041 - - - - - - - -
Operating grants and contributions - - 75,819 85,634 - 32,649 428,578 27,799 44,509 27,630
Capital grants - - 97,534 5,984,095 5,538,038 213,753 11,326 - - -
Total business-type activities program revenues 7,871,608 5,189,767 4,831,838 10,897,267 10,805,327 6,885,077 8,612,885 5,760,930 7,153,737 7,741,084
Total primary government program revenues $ 17,437,993 $ 11,446,465 $ 8,570,237 $ 16,684,478 $ 22,236,573 $ 14,861,870 $ 17,408,418 $ 13,873,992 $ 13,843,399 14,710,418
Net(expense)/revenue:
Governmental activities $ (11,472,915) $ (16,166,892) $ (16,737,602) $ (19,665,937) $ (15,134,890) $ (18,060,095) $ (19,570,133) $ (19,223,798) $ (18,700,624) (16,986,412)
Business-type activities 583,386 69,552 (280,363) 5,601,568 5,263,010 1,132,802 203,791 (1,509,022) (189,925) 419,430
Total primary government net expense $ (10,889,529) $ (16,097,340) $ (17,017,965) $ (14,064,369) $ (9,871,880) $ (16,927,293) $ (19,366,342) $ (20,732,820) $ (18,890,549) (16,566,982)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes:
Property taxes $ 11,051,740 $ 11,945,103 $ 13,327,552 $ 12,910,512 $ 13,741,190 $ 14,228,505 $ 14,414,032 $ 15,714,593 $ 16,045,148 16,660,329
Severance taxes 1,336,075 1,649,275 1,970,265 1,774,700 1,843,819 1,703,257 3,985,978 1,414,557 1,929,409 1,285,669
Tobacco excise taxes - - - - - - - - 310,482 425,444
Unrestricted grants and contributions 4,089,966 3,642,009 4,199,766 4,458,203 4,142,583 3,990,192 27,683 3,631,012 3,414,671 4,265,899
Land sales 760 2,383 4,540 - 864,584 103,143 1,586,555 325,793 27,955 19,002
Investment earnings 1,219,201 713,414 1,788,903 528,676 1,106,717 574,227 604,274 271,691 281,855 2,196,169
Other 619,948 739,113 327,540 383,877 506,546 494,287 403,958 23,306 305,983 117,278
Transfers (80,000) (80,000) (80,000) (80,000) (80,000) (152,357) (50,228) (1,134,372) (45,000) (45,000)
Extraordinary item - - - - - - 675,246 - --
Total governmental activities $ 18,237,690 $ 18,611,297 $ 21,538,566 $ 19,975,968 $ 22,125,439 $ 20,941,254 $ 21,647,498 $ 20,246,580 $ 22,270,503 24,924,790
Business-type activities:
Investment earnings 198,067 100,925 282,027 117,702 178,851 80,825 236,180 177,851 69,871 622,256
Other - - 110,442 78,688 598,162 186,328 203,764 115,556 320,774 375,891
Transfers 80,000 80,000 80,000 80,000 80,000 152,357 50,228 1,134,372 45,000 45,000
Extraordinary item - - - - - - - (54,590) --
Total business-type activities 278,067 180,925 472,469 276,390 857,013 419,510 490,172 1,373,189 435,645 1,043,147
Total primary government $ 18,515,757 $ 18,792,222 $ 22,011,035 $ 20,252,358 $ 22,982,452 $ 21,360,764 $ 22,137,670 $ 21,619,769 $ 22,706,148 25,967,937
Change in Net Position
Governmental activities $ 6,764,775 $ 2,444,405 $ 4,800,964 $ 310,031 $ 6,990,549 $ 2,881,159 $ 2,077,365 $ 1,022,782 $ 3,569,879 7,938,378
Business-type activities 861,453 250,477 192,106 5,877,958 6,120,023 1,552,312 693,963 (135,833) 245,720 1,462,577
Total primary government $7,626,228 $2,694,882 $4,993,070 $6,187,989 $13,110,572 $4,433,471 $2,771,328 $886,949 $3,815,599 9,400,955
KODIAK ISLAND BOROUGH
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
135
2010 2011 2012 2013 2014
General Fund:
Nonspendable $6,801 $6,801 $166,020 $6,324 $1,459
Unassigned 1,952,757 1,952,757 3,126,037 3,340,662 3,502,489
Total General Fund $1,959,558 $1,959,558 $3,292,057 $3,346,986 $3,503,948
All other governmental funds
Nonspendable $21,704 $21,704 $5,114,902 $4,636,976 $513,765
Committed 57,633,409 57,633,409 37,288,510 37,902,356 42,355,129
Assigned - - 11,464,575 29,981,503 28,875,499
Unassigned (1,179,132) (1,179,132) (1,989,279) (51,337) (2,929,481)
Total all other governmental funds $56,475,981 $56,475,981 $51,878,708 $72,469,498 $68,814,912
2015 2016 2017 2018 2019
General Fund:
Nonspendable $14,566 $26,272 $32,349 $37,885 67,562
Unassigned 3,181,342 3,259,509 2,284,775 3,151,069 5,292,862
Total General Fund $3,195,908 $3,285,781 $2,317,124 $3,188,954 5,360,424
All other governmental funds
Nonspendable $287,564 $181,191 $419,212 $4 $1,311
Committed 42,606,097 43,081,680 4,502,105 43,876,363 45,862,404
Assigned 7,610,272 11,312,217 3,073,997 5,411,992 5,899,049
Unassigned (2,516,222) (1,871,193) (122,678) (126,614) (877,704)
Total all other governmental funds $47,987,711 $52,703,895 $7,872,636 $49,161,745 $50,885,060
KODIAK ISLAND BOROUGH
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
136
Fiscal Year
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Revenues:
Property taxes and assessments $ 10,993,175 11,909,806 13,052,598 12,936,796 13,656,771 14,091,503 14,310,687 15,700,272 16,002,128 16,794,958
Transient accommodations tax 86,003 96,384 87,400 96,640 75,142 104,074 95,466 108,050 113,486 78,971
Intergovernmental:
State sources 10,610,231 7,029,684 5,313,092 7,929,017 12,938,158 10,332,739 8,870,802 6,134,338 6,975,473 8,128,643
Federal sources 2,338,468 2,149,205 1,940,376 1,659,372 1,933,672 2,093,987 3,090,533 2,628,537 2,067,113 2,147,572
Severance taxes 1,336,075 1,649,275 1,970,265 1,774,700 1,843,819 1,703,257 1,491,089 1,306,507 1,815,923 1,206,698
Tobacco excise taxes — — — — — — — — 310,482 425,444
Licenses, permits, fees, and other local revenues 766,193 719,818 684,697 657,025 701,999 688,719 774,225 3,014,816 992,759 1,023,153
Other revenues 459,412 720,659 44,304 52,516 50,556 17,747 45,422 9,146 290,343 95,463
Investment earnings 1,225,938 706,677 1,857,413 536,903 1,115,466 583,677 648,987 271,691 281,855 2,196,169
Total revenues 27,815,495 24,981,508 24,950,145 25,642,969 32,315,583 29,615,703 29,327,211 29,173,357 28,849,562 32,097,071
Expenditures:
General government 4,600,601 4,818,287 4,848,805 5,307,199 5,449,505 6,333,724 5,307,245 5,281,999 5,715,946 5,308,369
Public safety 502,491 537,623 447,479 469,280 576,720 524,169 572,839 699,118 2,001,538 714,826
Community and economic development 1,034,686 1,211,189 1,195,237 1,070,991 964,377 1,153,985 1,069,639 1,096,928 1,177,198 1,183,798
Emergency preparedness 8,011 11,705 18,923 18,342 9,987 29,128 30,849 35,861 43,038 14,307
Health and sanitation department 371,321 392,011 391,996 290,800 326,700 406,093 389,000 233,999 207,500 182,900
Education, culture, and recreation 192,182 85,690 64,289 84,273 95,625 24,856 23,949 17,562 4,665 70,472
Parks and recreation — 13,625 5,825 21,100 37,795 161,596 87,456 30,172 77,186 57,096
Service district maintenance 543,897 593,388 705,665 479,264 631,572 534,376 626,289 475,248 587,707 569,610
Primary and secondary education 9,980,350 10,127,350 10,337,349 10,442,350 10,845,220 11,100,714 11,100,650 10,373,548 9,449,500 9,920,576
Capital outlay:
Schools 7,359,932 1,881,069 5,255,037 5,486,672 34,872,235 21,984,655 13,240,920 3,936,147 2,958,053 2,092,006
General 4,319,438 4,839,652 562,007 2,041,674 1,521,996 2,907,018 3,430,975 1,086,817 826,432 991,403
Debt service:
Principal 2,685,606 2,750,690 2,780,776 2,966,441 3,645,950 2,646,040 3,201,002 3,530,000 3,870,000 4,425,000
Interest 1,356,872 1,292,645 2,695,657 1,254,225 2,109,406 3,121,577 3,194,612 3,568,559 3,408,310 3,253,414
Other charges - bond issuance costs — 40,689 100,149 20,809 89,835 — 124,372 64,313 — 10,000
Total expenditures 32,955,387 28,595,613 29,409,194 29,953,420 61,176,923 50,927,931 42,399,797 30,430,271 30,327,073 28,793,777
Excess of revenues over (under) expenditures (5,139,892) (3,614,105) (4,459,049) (4,310,451) (28,861,340) (21,312,228) (13,072,586) (1,256,914) (1,477,511) 3,303,294
Other Financing Sources (Uses):
Proceeds from sales of bonds — 8,049,233 — 21,595,000 22,660,000 — 15,000,000 4,905,000 — 550,000
Bond premium — — — 3,424,819 2,427,432 — 2,141,115 806,205 — —
Refunding bonds issued — — 13,578,039 — — — — — — —
Payment to refunded bond escrow agent — — (12,180,000) — — — — (5,934,301)— —
Proceeds from sale of assets — — — 9,564 — — — 140,000 1,240 9,815
Land sale proceeds 138,867 15,021 10,735 6,787 356,284 329,344 110,428 145,820 224,902 76,676
Insurance proceeds — — — — — — 403,958 — — —
Transfers in 3,211,195 3,782,289 957,652 6,212,885 992,365 642,691 1,404,497 1,758,036 1,189,104 1,786,712
Transfers out (3,291,195) (3,862,289) (1,037,652) (6,292,885) (1,072,365) (795,048) (1,454,725) (2,892,408) (1,234,104) (1,831,712)
Total other financing sources(uses)58,867 7,984,254 1,328,774 24,956,170 25,363,716 176,987 17,605,273 (1,071,648)181,142 591,491
Net change in fund balances $(5,081,025)4,370,149 (3,130,275)20,645,719 (3,497,624)(21,135,241)4,532,687 (2,328,562)(1,296,369)3,894,785
Debt service as a percentage of noncapital expenditures % 19.41 % 18.53 %27.22 %17.62 %22.51 %21.71 %23.80 %26.84 %28.08 % 30.20 %
KODIAK ISLAND BOROUGH
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
137
KODIAK ISLAND BOROUGH
General Revenues by Source(a)
Last Ten Fiscal Years
Licenses, Inter-
Fiscal Permits Governmental Investment Operating Miscellaneous
Year Taxes and Fees Revenue Income Transfers Revenue Total
2010 11,219,182 71,319 4,123,507 178,567 — 38,352 15,630,927
2011 12,412,832 72,394 3,642,009 (21,628) — 537,235 16,642,842
2012 2,291,625 65,421 4,425,447 281,792 — 16,177 7,080,462
2013 2,035,971 66,476 4,787,308 39,078 29,335 30,733 6,988,901
2014 2,051,794 82,713 4,605,916 23,804 — 14,328 6,778,555
2015 1,938,286 86,916 5,163,300 (18,330) — 19,468 7,189,640
2016 1,712,846 66,151 4,132,063 54,211 — 37,473 6,002,744
2017 1,727,620 83,546 3,738,157 11,059 — 3,715 5,564,097
2018 3,198,144 62,350 3,501,872 10,830 — 6,714 6,779,910
2019 3,551,740 130,441 4,403,041 211,630 — 15,210 8,312,062
(a) Includes General Fund only.
Source: Borough general ledger.
138
KODIAK ISLAND BOROUGH
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Ratio of
Total Taxable
Total Assessed to
Real Property Personal Property Total Direct Total
Year Ended Net Taxable Full Value Net Taxable Full Value Net Taxable Full Value Tax Full Value
June 30,Assessed Value Determination Assessed Value Determination Assessed Value Determination Rate Determination
2010 805,000,744 855,452,864 108,014,241 227,294,006 870,472,985 1,082,746,870 10.50 80.39
2011 875,787,940 931,330,970 113,091,185 250,671,059 913,014,985 1,182,002,029 10.50 77.24
2012 947,611,296 1,007,199,396 91,612,537 236,610,137 1,039,223,833 1,243,809,533 10.50 83.55
2013 984,146,580 1,049,746,680 108,821,700 137,074,800 1,092,968,280 1,186,821,480 10.75 92.09
1,029,239,311 1,100,702,180 102,237,300 286,425,000 1,131,476,611 1,387,127,180 10.75 81.57
1,068,647,102 1,137,024,180 113,251,900 361,886,700 1,181,899,002 1,498,910,880 10.75 78.85
1,084,317,572 1,161,805,872 118,559,600 348,158,100 1,202,877,172 1,509,963,972 10.75 79.66
2017 1,169,223,198 1,256,477,176 143,116,200 154,899,290 1,312,339,398 1,411,376,466 10.75 92.98
2018 1,205,698,799 1,290,502,977 137,125,100 149,553,000 1,342,823,899 1,440,055,977 10.75 93.25
2019 1,220,528,925 1,344,742,803 139,440,700 152,390,588 1,359,969,625 1,497,133,391 10.75 90.84
Sources: Borough assessment and tax records
Notes: Property in Kodiak Island Borough is reassessed once every three years.
Property is assessed at actual value; therefore, the assessed values are equal to actual value,
Tax rates are per $1,000 of assessed value.
Fiscal
2014
2016
2015
$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Last Ten Years Assessed Values
139
KODIAK ISLAND BOROUGH
Direct and Overlapping Property Tax Rates and
Contributions to the School District
Last Ten Fiscal Years
Overlapping Rates
Woodland²Trinity²Mission²
Fiscal Acres Islands Lake Fire Areas²
Year Borough Education Renewal City¹Street Street Tide Road Services Areas²Fire
Ended Basic Support Debt and of Lighting Lighting Gate Monashka Service Bay View Womens Protection Womens
June 30, Rate Fund Service Replacement Kodiak Area Area Area Bay District 1 Road Bay Area No. 1 Bay Airport
2010 10.50 — — — 2.00 0.25 0.50 1.00 2.50 1.50 1.00 2.00 1.50 1.25 1.25
2011 10.50 — — — 2.00 0.25 0.50 1.00 2.50 1.50 1.00 2.50 1.50 1.25 1.25
2012 0.03 9.09 1.55 0.08 2.00 0.25 0.50 1.00 2.50 1.50 1.00 2.50 1.50 1.25 1.25
2013 0.03 9.03 1.61 0.08 2.00 0.25 0.50 1.00 2.50 0.50 1.75 2.50 1.50 1.25 1.25
2014 0.03 8.75 1.81 0.16 2.00 0.25 0.50 1.00 2.50 1.50 1.50 2.50 1.50 1.25 1.25
2015 0.06 9.16 0.99 0.54 2.00 0.25 0.50 1.00 2.50 1.50 1.50 2.50 1.50 1.25 1.25
2016 0.10 8.45 1.70 0.50 2.00 0.10 0.20 1.00 2.50 1.50 1.50 2.50 1.50 1.25 1.25
2017 0.15 7.62 1.91 1.07 2.00 0.10 0.20 1.00 2.50 1.50 1.50 2.50 1.50 1.25 1.25
2018 0.62 6.80 2.03 1.30 2.00 0.10 0.20 1.00 2.50 1.50 1.50 2.50 1.50 1.25 1.25
2019 1.10 7.05 1.87 0.73 2.00 0.10 0.15 0.25 2.00 1.50 1.50 2.50 1.50 1.25 1.25
Note: With the exception of a mill rate to cover Debt Service, the maximum mill rate allowed by State code is 30 mills
¹Overlapping rates are those of local governments that apply to property owners within the City of Kodiak.
²Overlapping rates are those which apply to property owners located within special taxing districts in the borough. They do not apply to every property owner in the Borough.
Direct
Rate
(per $1,000 of Assessed Value)
140
KODIAK ISLAND BOROUGH
Property Tax Levies and Collections
Last Ten Fiscal Years
Collections
in Subsequent
Years Amount
2010 $ 10,879,276 10,487,467 96.4 $ 391,172 $ 10,878,639 100.0
2011 11,536,758 11,499,457 99.7 33,908 11,533,365 100.0
2012 (a) 13,255,665 13,038,077 98.4 215,299 13,253,376 100.0
2013 (a) 13,581,524 13,489,190 99.3 88,259 13,577,449 100.0
2014 (a) 14,424,260 14,250,305 98.8 169,116 14,419,421 100.0
2015 15,009,704 14,749,222 98.3 252,365 15,001,587 99.9
2016 15,261,029 15,032,113 98.5 215,870 15,247,983 99.9
2017 16,642,674 16,554,392 99.5 60,995 16,615,387 99.8
2018 17,069,728 16,809,461 98.5 191,846 17,001,307 99.6
2019 $ 17,699,787 17,462,634 98.7 $ — $ 17,462,634 98.7
Source: Borough general ledger.
(a) Due to personal property audits in subsequent years, tax collections exceeded original taxes levied.
Total Collections to DateTaxes Levied
for the
Fiscal Year
Percentage
of LevyAmount of Levy
Percentage
June 30,
Ended
Fiscal Year
Collected within the
Fiscal Year of the Levy
141
KODIAK ISLAND BOROUGH
Principal Property Tax Payers
Current Year and Ten Years Ago
Percentage Percentage
Taxable of Total Borough Taxable of Total Borough
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Trident Seafoods Corp $ 81,210,200 1 5.8% $ 8,865,179 6 1.0%
Matson Navigation (a)45,105,600 2 3.2% — — —
Ocean Beauty Seafoods 36,741,000 3 2.6% 15,963,774 1 1.7%
North Pacific Seafoods 20,690,000 4 1.5% — — —
Int'l Seafoods of Alaska 16,160,600 5 1.2% 10,028,365 4 1.1%
Mill Bay Plaza Assoc Ltd 12,766,600 6 0.9% 8,648,400 7 0.9%
Wal-Mart/Sam's Club 11,359,000 7 0.8% 9,926,522 5 1.1%
GCI Communication Corp.10,291,000 8 0.7% — — —
Kodiak Fishmeal Company 6,932,700 9 0.5% — — —
Island Holdings 6,932,700 10 0.5% — — —
Brechan Enterprises, Inc — — — 8,331,857 8 0.9%
Westward Seafoods — — — 11,430,705 2 1.3%
Alaska Communications Systems — — — 11,053,885 3 1.2%
Horizon Lines of Alaska LLC — — — 6,823,954 9 0.7%
Afognak Native Corp — — — 5,973,346 10 0.7%
Total $248,189,400 17.9% $97,045,987 10.6%
Source: Borough tax records.
(a) Matson Navigation purchased Horizon Lines in 2012.
2019 2010
142
Net
Total Taxable Net Debt Per
Fiscal Assessed Bonded Per Assessed
Year Population Value Debt Capita Value
2010 13,592 (a) 913,014,985 29,838,432 2,195 3.27%
2011 13,870 (a) 988,879,125 35,124,211 2,532 3.55%
2012 14,041 (a) 1,039,223,833 33,510,913 2,387 3.22%
2013 13,824 (a) 1,085,968,280 55,236,114 3,996 5.09%
13,797 (a) 1,131,476,611 76,227,556 5,525 6.74%
13,819 (a) 1,181,899,002 73,131,566 5,292 6.19%
13,790 (b) 1,202,877,172 86,481,657 6,271 7.19%
2017 13,563 (b) 1,312,339,398 82,302,899 6,068 6.27%
2018 13,287 (b) 1,342,823,899 77,748,492 5,851 5.79%
2019 13,136 (b) 1,389,969,625 73,189,089 5,572 5.27%
Sources: Information obtained from assessment records and Borough general ledger except as otherwise noted.
(a) Information obtained from State of Alaska, Division of Community and Regional Affairs,
Community Database, Certified Population for Revenue Sharing Program.
(b) Information obtained from State of Alaska, Department of Labor, Economic Information.
Note: Detail regarding the Borough's outstanding debt can be found in the notes to the financial statements.
KODIAK ISLAND BOROUGH
Ratios of Net Bonded Debt
Last Ten Fiscal Years
2014
2016
2015
143
KODIAK ISLAND BOROUGH
Computation of Direct Debt
Percentage Kodiak Island
Net Debt Applicable to this Borough
Outstanding Governmental Share of
(a)Unit (b) Debt (c)
Kodiak Island Borough:
General obligation bonds $ 73,189,089 100% $ 73,189,089
City of Kodiak:
General obligation bonds 6,495,458 100% 6,495,458
Total $79,684,547 $79,684,547
(a) Gross debt outstanding less applicable amounts in the Debt Service Funds.
(b) Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to
valuation of property subject to taxation in reporting unit.
(c) Per Alaska Statute 29.45.090 there is a limit of 30 mills for ad valorem taxes.
Per Alaska Statute 29.45.100 the limitation on maximum mill rate does not apply to taxes levied to
pay bonds.
Sources: Borough general ledger and City of Kodiak records.
June 30, 2019
144
2010 2011 2012 2013 2014
Taxable Assessed value $ 913,014,985 988,879,125 1,039,223,833 1,085,968,080 1,131,476,611
Plus exempt property 50,452,120 55,543,030 59,588,100 65,600,100 71,462,869
Total $963,467,105 1,044,422,155 1,098,811,933 1,151,568,180 1,202,939,480
2015 2016 2017 2018 2019
Taxable Assessed value $ 1,181,899,002 1,202,877,172 1,312,339,398 1,342,823,899 1,389,969,625
Plus exempt property 68,377,078 77,488,300 87,253,178 84,804,178 94,213,878
Total $1,250,276,080 1,280,365,472 1,399,592,576 1,427,628,077 1,484,183,503
The State of Alaska does not mandate a debt limit to its municipalities and political subdivisions.
Debt capacity is ultimately determined by the voters and the marketplace.
Source: Borough assessment records (certified tax rolls).
KODIAK ISLAND BOROUGH
Legal Debt Margin Information
Last Ten Fiscal Years
145
KODIAK ISLAND BOROUGH
Ratio of Annual Debt Service Expenditures
for General Bonded Debt to Total
General Governmental Expenditures and Transfers
Last Ten Fiscal Years
Total General Ratio of
Fund debt service
Fiscal Interest Total debt expenditures to general
year Principal (a) and fees service and transfers expenditures
2010 2,685,606 1,350,620 4,036,226 16,372,540 24.7
2011 2,750,690 1,287,822 4,038,512 17,065,960 23.7
2012 2,780,776 2,691,426 5,472,202 5,747,963 95.2
2013 2,966,441 1,244,233 4,210,674 6,933,972 60.7
3,645,950 2,107,198 5,753,148 6,621,593 86.9
2,646,040 3,120,449 5,766,489 7,497,680 76.9
3,201,002 3,194,612 6,395,614 6,576,153 97.3
2017 3,530,000 3,632,872 7,162,872 6,532,754 109.6
2018 3,870,000 3,408,310 7,278,310 6,402,256 113.7
2019 4,425,000 3,263,414 7,688,414 6,287,584 122.3
(a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of
term bonds.
Sources: Borough general ledger and debt documents.
2014
2016
2015
146
KODIAK ISLAND BOROUGH
Ratios of Outstanding Debt by Type
General Total Percent of
Obligation Notes Revenue Notes Primary Personal Per
Bonds Payable Bonds Payable Government Income Capita
29,838,432 60,899 — 1,989,995 31,889,326 5.52% 2,346
35,124,211 55,209 — 2,735,778 37,915,198 5.87% 2,734
33,510,913 49,433 — 7,603,249 41,163,595 6.13% 2,932
55,236,114 42,992 18,817,320 7,346,324 81,442,750 12.10% 5,891
76,227,556 37,042 18,703,498 10,206,895 105,174,991 13.98% 7,623
73,131,566 31,002 17,984,677 9,908,184 101,055,429 12.51% 7,313
86,481,657 — 17,245,855 18,445,504 122,173,016 15.12% 8,860
82,302,899 — 11,874,871 19,139,725 113,317,495 13.84% 8,355
77,748,492 — 11,327,067 18,129,817 107,205,376 12.56% 8,068
73,189,089 — 10,769,263 17,028,533 100,986,885 * 7,688
Note: Detail regarding the Borough's outstanding debt can be found in the notes to the financial statements.
* Information not available at report time.
Last Ten Fiscal Years
Fiscal
Year
2010
2019
2018
Governmental Activities Business-type Activities
2016
2017
2014
2013
2012
2011
2015
147
KODIAK ISLAND BOROUGH
Demographic and Economic Statistics
Last Ten Years
Per Capita Percentage
Calendar Personal Personal School Unemployment
Year Population (a) Income (c) Income (c) Enrollment (b) Rate (c)
2010 13,592 578,018,380 42,526 2,567 7.4
2011 13,870 646,461,681 46,609 2,543 7.4
2012 14,041 671,556,096 47,828 2,517 6.7
2013 13,824 673,348,788 48,709 2,513 6.2
13,797 752,337,000 54,529 2,468 5.7
13,819 807,817,000 58,457 2,446 4.9
13,790 808,036,000 58,843 2,437 5.0
2017 13,563 818,860,000 60,891 2,386 4.6
2018 13,287 853,258,000 63,938 2,437 4.8
2019 13,136 * *2,395 4.2
Sources:
(a) State of Alaska, DCRA certified population.
(b)Alaska Dept. of Education, Average Daily Membership by Fiscal Year at www.eed.state.ak.us/stats
(c)Bureau of Economic Analysis https://www.bea.gov
* Information not available at report time.
2016
2014
2015
—
5,000
10,000
15,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Borough Population and Student Count
Population (a)School Enrollment (b)
148
Fiscal Year 2010 Fiscal Year 2011 Fiscal Year 2012 Fiscal Year 2013
Average Average Average Average Average Average Average Average
Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly
Employment Earnings Employment Earnings Employment Earnings Employment Earnings
Total Industries 5,961 $ 3,100 6,416 $ 3,362 6,461 $ 3,488 6,411 $ 3,459
Private Ownership 4,485 2,956 4,898 3,263 4,898 3,412 4,928 3,358
Total Government 1,475 3,538 1,518 3,681 1,501 3,742 1,483 3,795
Private Goods-Producing 1,814 3,290 2,113 3,619 2,193 3,801 2,138 3,704
Private Service-Providing 2,671 2,730 2,785 2,993 2,760 3,101 2,790 3,092
Fiscal Year 2014 Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017
Average Average Average Average Average Average Average Average
Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly
Employment Earnings Employment Earnings Employment Earnings Employment Earnings
Total Industries 6,472 $ 3,575 6,524 $ 3,650 6,154 $ 3,292 6,294 $ 3,540
Private Ownership 5,049 3,491 5,148 3,565 4,721 3,118 4,867 3,407
Total Government 1,423 3,875 1,377 3,966 1,433 3,867 1,427 3,995
Private Goods-Producing 2,219 3,831 2,268 3,832 2,012 2,766 1,934 3,318
Private Service-Providing 2,830 3,224 2,879 3,356 2,710 3,378 2,933 3,466
Fiscal Year 2018 Fiscal Year 2019
Average Average Average Average
Monthly Monthly Monthly Monthly
Employment Earnings Employment Earnings
Total Industries 6,037 $ 3,585 5,967 $ 3,816
Private Ownership 4,578 3,433 4,511 3,714
Total Government 1,460 4,060 1,455 4,134
Private Goods-Producing 1,636 3,067 1,637 3,651
Private Service-Providing 2,942 3,637 2,875 3,748
KODIAK ISLAND BOROUGH
Average Monthly Employment & Earnings
Last Ten Fiscal Years
149
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Land area - square miles 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130
Miles of improved street 25.6 25.6 25.6 26.1 26.1 26.1 26.1 26.1 26.1 26.1
Building permits:
Permits issued 208 204 167 219 155 193 216 143 93 94
Value of buildings (thousands)16,445 30,832 10,171 91,619 36,652 36,216 10,866 11,793 7,331 19,324
Fire Protection:
Number of fire stations 2 2 2 2 2 2 2 2 2 2
Number of employees 1 1 1 1 1 1 1 1 1 1
Police Protection: none
(provided by the City of Kodiak within the city limits and by the State of Alaska outside the city boundaries.)
Recreation:
Parks (number of acres)223 224 224 224 224 224 224 224 224 224
Facilities:
Number of playgrounds 15 16 16 16 16 16 16 16 16 16
Number of swimming pools 1 1 1 1 1 1 1 1 1 1
Public Education:
Number of schools:
Kodiak Area Elementary 4 4 4 4 4 4 4 4 4 4
Kodiak Area Middle School 1 1 1 1 1 1 1 1 1 1
Kodiak Area High School 1 1 1 1 1 1 1 1 1 1
Village Schools (a)7 8 8 8 7 7 7 7 7 7
Number of support personnel (b)217 215 215 193 181 187 200 206 206 189
Number of teachers (c)218 201 201 207 162 166 170 177 210 193
Number of students (d)2,567 2,543 2,543 2,513 2,468 2,446 2,437 2,386 2,437 2,395
Number of Municipal Employees 43 43 45 45 48 45 43 44.5 45 41
Sources: Borough Departments, Kodiak Island Borough School District and City of Kodiak
(a) The majority of Village Schools are grades K-12.(c) School district personnel figures include staffing from the General Fund and Grants.
(b) All non-teaching employees.(d) Alaska Dept. of Education & Early Development, Average District Enrollment www.eed.state.ak.us/stats
KODIAK ISLAND BOROUGH
MISCELLANEOUS STATISTICAL DATA
Last Ten Fiscal Years
150
KODIAK ISLAND BOROUGH
Property Value, Construction, and Bank Deposits
Last Ten Fiscal Years
Construction Property Value*
Commercial Residential
Fiscal No. of No. of
year permits Value permits Value Commercial Residential
2010 52 4,756,124 156 11,689,178 192,000,000 327,248,533 661,630,592
2011 46 24,165,884 158 6,666,400 194,289,000 317,950,418 721,273,415
2012 48 5,693,295 119 4,477,641 227,392,000 345,529,161 738,505,519
2013 59 85,969,566 160 5,649,717 230,391,000 364,353,810 767,122,801
44 33,062,171 111 3,589,833 252,999,000 386,480,100 788,418,800
61 31,146,134 141 5,644,907 239,000,000 402,319,200 800,640,400
56 4,882,606 160 5,983,768 245,354,000 452,535,972 750,341,200
2017 13 4,599,616 130 7,193,534 243,973,000 384,902,202 820,796,597
2018 23 3,515,430 70 3,815,114 233,000,000 390,922,837 859,606,088
2019 20 7,270,037 73 12,082,486 229,000,000 401,383,960 864,185,415
*Assessed value.
Sources: Borough assessing records and City of Kodiak building department and FDIC.
Deposits in
local banks
2016
2014
2015
—
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Deposits in Kodiak Banks
151
2010 2011 2012 2013 2014
Function:
General Government 29 29 30 30 33
Community and Economic Development 5 5 6 6 5
Municipal Solid Waste Collection and Disposal 7 7 7 7 8
Kodiak Fisheries Research Center 2 2 2 2 2
Total 43 43 45 45 48
2015 2016 2017 2018 2019
Function:
General Government 30 29 28.5 29 28
Community and Economic Development 4 5 6 6 3
Municipal Solid Waste Collection and Disposal 9 7 8 8 8
Kodiak Fisheries Research Center 2 2 2 2 2
Total 45 43 44.5 45 41
Source: Borough Finance Department
Full-time Equivalent Employees
as of June 30:
KODIAK ISLAND BOROUGH
Full-Time Equivalent Borough Employees by Function/Program
Last Ten Fiscal Years
152
KODIAK ISLAND BOROUGH
Operating Indicators by Function
Last Ten Fiscal Years
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Function
General Government
Elections
Number of registered voters 9,649 9,619 9,479 9,585 9,209 9,100 9,585 9,453 9,357 10,039
Number voting in last election 2,477 2,311 2,139 1,250 1,566 1,968 1,800 2,303 1,692 1,266
Percent of registered voters 26% 24% 23% 13% 17% 22% 19% 24% 18% 13%
Public Safety
Number of fire stations 2 2 2 2 2 2 2 2 2 2
Number of employees 1 1 1 1 1 1 1 1 1 1
Community and economic development
Zoning compliance permits issued 245 149 113 160 111 183 161 177 128 142
Junk cars removed 89 218 27 22 28 37 21 10 35 79
Primary and secondary education
Number of students 2,567 2,543 2,517 2,513 2,468 2,446 2,437 2,386 2,437 2,395
Number of General Fund certified staff 224 217 211 207 186 177 183 196 206 193
Number of General Fund classified staff 135 162 166 193 161 166 173 187 210 189
Solid waste disposal
Total solid waste disposal in tons 14,580 14,896 16,558 14,688 11,826 12,364 12,876 11,646 11,458 12,882
Baled waste in tons 10,527 10,846 10,153 11,535 10,005 8,900 10,454 9,875 10,396 9,584
Scrap metal in tons 282 260 147 251 172 205 221 190 128 142
Asbestos, cubic yards 218 230 116 399 390 362 219 179 142 348
Source: Borough Finance Department
153
Function program 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
GOVERNMENTAL ACTIVITIES
Number of buildings (teacher housing, schools and office buildings)18 18 19 19 19 19 21 20 20 19
Vehicles 13 15 15 15 14 14 11 14 13 13
Inactive School building n/a n/a n/a n/a n/a n/a n/a n/a n/a 1
Streets (miles)25.6 25.6 26.1 26.1 26.1 26.1 26.1 26.1 26.1 26.1
Land area - square miles 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130 7,130
(provided by the City of Kodiak within the city limits and by the State of Alaska outside the city boundaries)
2 2 2 2 2 2 2 2 2 2
8 15 13 13 12 12 10 11 13 12
1 1 1 1 1 1 1 1 0 0
BUSINESS-TYPE ACTIVITES
Number of Baler Facilities (Landfills)1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1
------1 1 1 1
223 224 224 224 224 224 224 224 224 224
1 1 1 1 1 1 1 1 1 1
15 16 16 16 16 16 16 16 16 16
1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1
Sources : Supplied by Kodiak Island Borough Department Heads
Notes : No capital asset indicators are available for the library function
A description of the Kodiak Island Borough's Capitalization and Depreciation policy
is included in the Notes To The Basic Financial Statements
Number of playgrounds
Number of Emergency response vehicles
Emergency Tsunami Shelters
Municipal Solid Waste
Community Health & Public Services
Mental Health Facilities
Long Term Care Center
Kodiak Island Research Facilities (marine research)
Dorm facility (6 apartments)
KODIAK ISLAND BOROUGH
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Parks (number of acres)
Facilities:
Hospital
Culture, Parks and Recreation
Roads
Police: none
Fire and Emergency Services
Number of fire stations
Number of Swimming Pools
154