CAFR FY2020
KODIAK ISLAND BOROUGH
ALASKA
Comprehensive Annual Financial Report
Year Ended June 30, 2020
KODIAK ISLAND BOROUGH
ALASKA
Comprehensive Annual Financial Report
Year Ended June 30, 2020
Official Issuing Report
Dora Cross
Finance Director
KODIAK ISLAND BOROUGH
TABLE OF CONTENTS
June 30, 2020
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
Nonmajor Enterprise Funds:
Combining Statement of Net Position 118
Combining Statement of Revenues, Expenses, and Changes in Net Position 119
Combining Statement of Cash Flows 120
Enterprise Funds:
Schedule of Revenues, Expenses, and Changes in Net Position – Budget
and Actual:
Municipal Solid Waste Collection and Disposal 121
Hospital Facilities 122
Long Term Care Center 123
Kodiak Fisheries Research Center 124
911 Service Fund 125
Research Court Apartments 126
KODIAK ISLAND BOROUGH
TABLE OF CONTENTS, CONTINUED
Page
Supplementary Bond Schedules:
Summary of Bonded Debt Service Requirements to Maturity 127
General Obligation Bond, 2011 Series One – Retirement Schedule 128
General Obligation Bond, 2012 Series A – Retirement Schedule 129
General Obligation Bond, 2012 Series B – Retirement Schedule 130
General Obligation Bond, 2013 Series One – Retirement Schedule 131
General Obligation Bond, 2014 Series One – Retirement Schedule 132
General Obligation Bond, 2015 Series Three – Retirement Schedule 133
General Obligation Bond, 2015 Series Three – Retirement Schedule 134
General Obligation Bond, 2016 Series One – Retirement Schedule 135
General Obligation Bond, 2016 Series One – Retirement Schedule 136
General Obligation Bond, 2016 Series Three – Retirement Schedule 137
STATISTICAL SECTION:
Statistical Section Index
Net Position by Component – Last Ten Fiscal Years 138
Changes in Net Position – Last Ten Fiscal Years 139
Fund Balances of Governmental Funds – Last Eight Fiscal Years 140
Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 141
General Revenues by Source – Last Ten Fiscal Years 142
Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 143
Direct and Overlapping Property Tax Rates and Contributions to the School District –
Last Ten Fiscal Years 144
Property Tax Levies and Collections – Last Ten Fiscal Years 145
Principal Property Tax Payers – Current Year and Ten Years Ago 146
Ratios of Net Bonded Debt– Last Ten Fiscal Years 147
Computation of Direct Debt 148
Legal Debt Margin Information – Last Ten Fiscal Years 149
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General
Governmental Expenditures and Transfers – Last Ten Fiscal Years 150
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 151
Demographic and Economic Statistics – Last Ten Fiscal Years 152
Average Monthly Employment & Earnings – Last Ten Fiscal Years 153
Miscellaneous Statistical Data – Last Ten Fiscal Years 154
Property Value, Construction and Bank Deposits – Last Ten Fiscal Years 155
Full-Time Equivalent Borough Employees by Function/Program – Last Ten Fiscal Years 156
Operating Indicators by Function – Last Ten Fiscal Years 157
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 158
INTRODUCTORY SECTION
1
Kodiak Island Borough
Finance Department
710 Mill Bay Road Kodiak, Alaska 99615
December 28, 2020
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, 2020.
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, 2020, 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, 2020. 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 12,998 (US Census 2019
estimate).
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 $1,583,276 in FY2011 to $1,170,360 in
FY2020, 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. In
FY2019 total revenue was $76,880 and FY2020 was $62,829. The recent Coronavirus pandemic
reduced the transient accommodations tax (bed tax) revenues in the fourth quarter from an average
of $26,380 to $2,800. Cruise ships calls were increasing from 21 in 2010 to 31 in 2020; however
those calls stopped during the pandemic. Commercial Passenger Vessel tax revenues from those
calls increased from $15,762 in FY2011 to $54,220 in FY2020.
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, 2020, the unemployment rate for the
Kodiak Island Borough was 4.4% compared to the State of Alaska’s rate of 6.4%.
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, 2019. This was the
thirtieth 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
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Kodiak Island Borough
Alaska
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2019
Executive Director/CEO
5
6
Electorate
Borough Manager Borough Attorney
Engineering/
Facilities Director
Bayside Fire
Chief
Finance/MIS
Director
Borough Mayor
Borough Assembly
Community
Development
Director
Secretary III
Maintenance
Mechanic
KFRC
Maintenance
Engineer
KFRC
Interpretive
Spec/Rec.
Solid Waste Mgr/
Environ. Spec.
Solid Waste
Baler/Landfill
Supervisor
Treatment Plant
Operator Lead
Baler Operator I
Baler Operator II
Baler Operator I
Baler Operator I
Baler Operator I
HR Officer Executive
Assistant
Assessor
Associate Planner/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 2020
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, 2022 At Large, 2020
Bill Roberts, Mayor, 2022
Andrew Schroeder, Duane Dvorak,
At Large, 2020 At Large, 2022
Dennis Symmons, James Turner,
At Large, 2021 At Large, 2021
Rebecca Skinner,
Deputy Presiding Officer (DPO),
At Large, 2020
KODIAK ISLAND BOROUGH
KODIAK, ALASKA
BOROUGH OFFICIALS
YEAR ENDED JUNE 30, 2020
MAYOR
William Roberts 2022
ASSEMBLY
Scott Arndt
2022
Rebecca Skinner
2020
Duane Dvorak 2022 Dennis Symmons 2021
Julie Kavanaugh 2020 James Turner 2021
Andrew Schroeder 2020
MANAGEMENT
Michael Powers Borough Manager
Dora Cross Finance Director/Treasurer
Alise Rice Borough Clerk
Erin Welty Community Development Director
Seema Garoutte Borough Assessor
Howard Rue Fire Chief
Dave Conrad Engineering and Facilities Director
Paul Van Dyke IT Supervisor
Keene & Currall Borough Attorney (Contracted Firm)
8
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, 2020, 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, 2020, 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); Nonmajor Enterprise Funds: Combining Statement of
Net Position, Combining Statement of Revenues, Expenses, and Changes in Net Position, and Combining
Statement of Cash Flows; Enterprise Funds: Schedule of Revenues, Expenses, 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, 2019,
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, 2019 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, 2019, 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 2019 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 28,
2020, 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 28, 2020
MANAGEMENT’S DISCUSSION AND ANALYSIS
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis
June 30, 2020
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, 2020. 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 $195,704,202 (net
position). Of this amount, $66,700,496 (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 $4,964,486 (2.60%). The governmental net position
increased by $3,237,250 (2.32%) and the business-type net position increased by $1,727,236 (3.38%).
Total equity in the central treasury increased by $10,027,852 (11.63%). The governmental central
treasury increased by $8,534,584 (12.17%) and the business-type central treasury increased by
$1,493,268 (9.25%).
The Borough’s total noncurrent liabilities – due in more than one year decreased by $7,693,548
(7.09%). Compensated leave increased $61,656 (43.38%), notes/bonds payable decreased by
$7,108,486 (7.57%), net pension and OPEB liabilities decreased by $795,718 (11.19%), and landfill
closure costs increased by $149,000 (2.56%).
At the end of the current fiscal year, the Borough’s governmental funds reported combined fund
balances of $58,747,066. This was an increase of $2,501,582 (4.45%), compared to the net change
in the prior year of an increase of $3,894,785. Approximately 8.60% of the current year total amount,
or $5,050,240, 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 $986,383
Other Governmental Funds deficit, was $5,050,240. This amounts to 89.67% 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 2 6
Total of All Funds 33
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 118-126) – 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 93-126)
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 $195,704,202 at June 30, 2020, compared to $190,739,716 at June 30, 2019.
The largest portion of the Kodiak Island Borough’s net position ($129,003,706 or 65.92%) 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
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Total Net Position of Government and Business-Type
Activities (last 10 years)
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 on the previous page. The Borough has maintained a stable financial position and
the $66,700,496 of unrestricted net position may be used to meet the Borough’s ongoing obligations to
citizens and creditors.
2020 2019 2020 2019 2020 2019
Current and other assets $ 80,668 71,899 21,273 19,676 101,941 91,575
Capital assets 157,292 162,565 65,670 67,204 222,962 229,769
Total assets 237,960 234,464 86,943 86,880 324,903 321,344
Deferred outflows of resources 825 931 226 250 1,051 1,181
Total assets and deferred
outflows of resources $ 238,785 235,395 87,169 87,130 325,954 322,525
Long-term liabilities $ 67,609 73,572 31,738 33,469 99,347 107,041
Other liabilities 27,979 21,710 2,500 2,419 30,479 24,129
Total liabilities 95,588 95,282 34,238 35,888 129,826 131,170
Deferred inflows of resources 346 499 77 116 423 615
Total liabilities and deferred
inflows of resources $ 95,934 95,781 34,315 36,004 130,249 131,785
Net position:
Net investment in capital assets $ 89,443 89,376 39,561 39,406 129,004 128,782
Unrestricted 53,408 50,238 13,292 11,720 66,700 61,958
Total net position $142,851 139,614 52,853 51,126 195,704 190,740
Net Position of Governmental and Buisness-type Activities (in thousands)
For Years Ended June 30, 2020 and 2019
Governmental
Activities
Business-type
Activities
Total
Activities
Changes in Net Position
During the current fiscal year, the Borough’s total net position increased by $4,964,486 (2.60%). This
compares to an increase of $9,400,955 for the year ended June 30, 2019. Of the $4,964,486 increase, the
governmental net position increased by $3,237,250 (2.32%) and the business-type net position increased
by $1,727,236 (3.38%).
Governmental revenues increased overall by $3,665,879 (11.48%) primarily due to increased property tax
revenues for bond principal and interest payments and overall expenditures increased by $2,668,064
(11.14%) as compared to FY2019 for the same reason. The borough also received $1,632,815 from its
component unit, the Kodiak Island Borough School District, in recognition of the State of Alaska’s cut to
the School Debt Reimbursement Program. This revenue was used to pay additional bond principal and
interest payments the Borough did not budget to pay.
Business-type revenues decreased overall by $307,286 (3.52%) due to lease expirations and overall
expenses decreased by $571,945 (7.81%) as compared to FY2019 primarily due to repair and maintenance
projects not started due to vacant maintenance positions.
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 2020 and 2019 for both governmental
and business type activities.
2020 2019 2020 2019 2020 2019
Revenues:
Program revenues:
Charges for services $ 1,043 1,011 7,416 7,713 8,459 8,724
Operating grants and contributions 2,579 5,612 (20) 27 2,559 5,639
Capital grants 438 346 — — 438 346
General revenues:
Property taxes 17,228 16,660 — — 17,228 16,660
Grants and entitlements not restricted
to specific programs 3,371 4,266 — — 3,371 4,266
Land sales 12 19 — — 12 19
Excise taxes 390 425 — — 390 425
Severance taxes 1,287 1,286 — — 1,287 1,286
Other 471 117 592 376 1,063 493
Investment earnings 1,454 2,196 444 622 1,898 2,818
Total revenues 28,273 31,938 8,432 8,738 36,705 40,676
Expenses:
General government 5,495 5,210 — — 5,495 5,210
Public safety 697 936 — — 697 936
Community and economic development 792 1,133 — — 792 1,133
Emergency preparedness 4 14 — — 4 14
Health and social welfare 157 183 — — 157 183
Education, culture and recreation 21 20 — — 21 20
Parks and recreation 33 43 — — 33 43
Service district maintenance 786 646 — — 786 646
Primary and secondary education 16,293 13,270 — — 16,293 13,270
Interest on long-term debt 2,346 2,500 — — 2,346 2,500
Municipal solid waste collection and
disposal — — 2,796 3,288 2,796 3,288
Hospital facilities — — 1,303 1,202 1,303 1,202
Long Term Care Center — — 946 960 946 960
Kodiak Fisheries Research Center — — 1,335 1,571 1,335 1,571
911 services — — 295 300 295 300
Research court apartments — — 75 — 75 —
Total expenses 26,624 23,955 6,750 7,321 33,374 31,276
Change in net position
before transfers 1,649 7,983 1,682 1,417 3,331 9,400
Transfers (45) (45) 45 45 — —
Transfers - component unit 1,633 — — — 1,633 —
Change in net position 3,237 7,938 1,727 1,462 4,964 9,400
Net position, beginning of year 139,613 131,675 51,126 49,664 190,740 181,339
Net position, end of year $ 142,850 139,613 52,853 51,126 195,704 190,739
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 $3,237,250.
The largest source of revenue is Property Tax, which amounted to $17,228,428 a 3.41% increase from 2019.
Property Tax was the largest increasing revenue by $568,099 (3.41%) and Operating Grants and
Contributions was the largest decreasing revenue by $3,032,916 (54.05%). With a one-time transfer in from
the Borough’s component unit, the Kodiak Island Borough School District, overall revenues increased by
$3,665,879 (11.48%) from 2019.
The largest functional expense is Primary and Secondary Education, which amounted to $16,293,027, a
22.78% increase from 2019 due additional depreciation related to the completion of the High School
Renovation and Renewal project. General Government was the second largest expense at $5,494,888
(5.48%) increase from 2019. 40% of the $285,300 increase in General Government expenses are due to
transfers to the capital project fund for a future upgrade of taxation and collection software. All other
expenses decreased with the exception of Service Area Maintenance, which increased by $140,833
(21.82%). Overall, total expenses increased by $2,668,064 (11.14%) from 2019.
Charges for services
4%
Operating grants and
contributions
10%
Property taxes
58%
Grants and
entitlements not
restricted to specific
programs
11%
Excise taxes
1%
Severance taxes
4%
Investment earnings
5%
KIBSD - transfer in
5%Other
2%
FY2020 Governmental Activities - Revenue Sources
General government
21%Public safety
2%
Community and
economic
development
3%
Primary and
secondary education
62%
Service district
maintenance
3%
Interest on long-term
debt
9%
FY2020 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 $1,727,236.
The largest source, and only revenue increase, is from Other or Miscellaneous sources, which amounted to
$216,297, an 57.54% increase from 2019. The largest decrease in revenues was Charges for Services at
$297,079 (3.85%) due to lease expirations and moving the apartments into their own fund. Overall, total
revenues decreased by $307,286 (3.52%) from 2019.
The largest expense is from Municipal Solid Waste Collection and Disposal, which totaled $2,795,669, a
14.97% decrease from 2019 and was the largest decrease in expenses at $492,033. This decrease is
attributable to a minimum of $100,000 reductions in each of the Municipal Solid Waste and Disposal’s
personnel services, contracted services, and repair and maintenance cost accounts. The largest increase in
business activity expenses was Hospital Facilities at $100,546 (8.37%) due to increase repair and
maintenance costs. Overall, total expenses decreased by $571,945 (7.81%) from 2019.
Personnel
services
21%
Contracted
services
5%
Maintenance and
repair
3%
Depreciation
42%
General
Administration
14%
Recycling services
5%
Closure/post
closure
2%
E911 service
5%
Miscellaneous
3%
FY2020 Business-Type Activities - Expenses
Charges for Services
88%
Interest Earnings
5%
Other
7%
FY2020 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 $58,747,066, an increase of $2,501,582 (4.45%) in comparison to the beginning of the year.
$57,926 of this total amount constitutes nonspendable fund balances, $46,186,064 was committed fund
balances, $7,452,836 was assigned fund balances, and $5,050,240 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 $57,926, with an unassigned fund balance of
$6,036,623 for a total fund balance of $6,094,549. As a measure of the General Fund’s liquidity, it may be
useful to compare fund balance to total expenditures. Unassigned fund balance represents 89.67% of total
General Fund expenditures.
Major Fund Highlights
General Fund – Fund balance increased by $734,125 (13.70%) during the current fiscal year. Total
revenues were $256,675 more than anticipated due to increased tax revenues derived from
increased tax assessments and expenditures were $497,853 less than anticipated due to vacant
positions.
Education Support (Special Revenue Fund) – The previous year’s $30,842 fund balance deficit
was eliminated and the current balance is $59,394, an increase of 292.58%. The key factor leading
to this change was increased property tax revenues derived from increased assessed values.
Facilities Fund (Special Revenue Fund) – Fund balance increased by $295,711 (0.73%) during the
current fiscal year. Investment income, the sole revenue source for the fund, was $1,130,902 and
the largest use of allowed earning use in this fund was a transfer of $830,191 to the Education Debt
Service Fund to help cover required debt service payments and a $5,000 transfer to the Building
and Grounds Special Revenue Fund.
Education Debt Service Fund – Fund balance increased by $32,443 (6.08%), due to property tax
revenues and timing of bond principal and interest payments.
$6,094,549 $59,394
$40,614,042
$565,914
$11,413,167
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 $1,349,067 (13.40%) during the
current fiscal year; special revenue funds decreased $5,805 and capital projects funds increased
$1,354,872.
Fire Protection Area No. 1 (Special Revenue Fund) – Fund balance decreased by $139,891. The
key factor leading to this was payment of capital project expenses for the repair of the exterior of
the building.
Womens Bay Fire Department (Special Revenue Fund) – Fund balance increased by $50,453. The
key factor leading to this was no payments made for capital project improvements,
Building and Grounds (Special Revenue Fund) – Fund balance increased $60,435. The key factor
leading to this was fewer repair and maintenance and administrative expenses.
Tourism Development (Special Revenue Fund) – Fund balance decreased by $66,379. The key
factors leading to this was reduced revenues the last two quarters of the year due to the Coronavirus
pandemic and level funding of tourism generating expenses.
Commercial Passenger Vessel (Special Revenue Fund) – Fund balance increased by $55,754.
Renewal and Replacement Projects (Capital Project Fund) – Fund balance increased by $1,348,339
primarily due to a mill rate increase to the fund. Fund balance will continue to accumulate a balance
due to future planned projects.
School Renewal and Replacement Facilities Bond Projects (Capital Project Fund) – Fund balance
decreased by $139,521 due to the 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
$52,853,616, a $1,727,236 (3.38%) increase in comparison to the beginning of the year. Equity in central
treasury and restricted cash and equivalents increased by $1,493,268 (9.25%) in comparison to the
beginning of the year.
Major Fund Highlights
Municipal Solid Waste Collection and Disposal (Enterprise fund) – Net position increased by
$1,580,803 (9.26%) due to an increase in charges for services.
Hospital Facilities (Enterprise Fund) – Net position increased by $131,808 (0.81%).
Long-Term Care Center (Enterprise Fund) – Net position increased by $192,761 (2.92%) due to
timing differences in bond payments.
Kodiak Fisheries Research Center (Enterprise Fund) – Net position decreased by $493,799
(4.41%) due to decreasing lease revenues and increasing repair and maintenance 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 $0.
Research Court Apartments (Enterprise Fund) – This is a new enterprise fund. These apartments,
along with lab and office space at the KFRC, were part of a lease that expired in the current fiscal
year. The revenue for this fund is $49,560.
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
Other Non-
Major
Funds
2020 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 general fund revenues, the largest difference between budgeted and actual revenues was Payments
in Lieu of Taxes (PILT) receiving $313,791 more and fisheries busines taxes receiving $481,693 less than
budgeted. Overall, actual revenues were $256,675 (4.13%) more than budgeted.
Within general fund expenditures by function, the largest difference between budgeted and actual expenses
was the community development department expending $377,522 less, primarily due to vacant positions.
The general administration department expending $102,491 more than budgeted primarily due to write-offs
of uncollectible personal property accounts and an increase in the amount of donated trash expense.
Overall, actual expenditures were $497,853 (8.84%) less than budgeted.
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Property Taxes Severance
Taxes
Excise Tax State Sources Federal
Sources
Other
FY2020 Budget to Actual Comparison of Revenues
Budgeted Actual
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
5,000,000
General
Government
Public Safety Community &
Economic
Development
Emergency
Preparedness
Non-Profit -
Social Services,
Education &
Recreation
Parks and
Recreation
FY2020 Budget to Actual Comparison of
Expenditures - by function
Budgeted
Actual
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
25
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets (Note 8 on page 53-58) – The Borough’s investment in capital assets includes land,
buildings and improvements, improvements other than buildings, machinery and equipment, and
construction work-in-progress. During the year, the construction work-in-progress was decreased and
building and improvements were increased due to the completion of the High School Renovation and
Remodel project. As of June 30, 2020, the total net book value was $222,962,101, a decrease of $6,806,425
(2.96%). This net decrease is primarily due to regular depreciation.
The following table displays the capital assets (net of accumulated depreciation) at June 30, 2020 with a
comparison to 2019.
2020 2019 2020 2019 2020 2019
Artwork $ — — 16,091 16,091 16,091 16,091
Land 23,519,407 23,574,858 1,661,499 1,661,499 25,180,906 25,236,357
Construction work-in-progress 6,790,421 86,134,261 30,416,468 29,701,653 37,206,889 115,835,914
Buildings and improvements 111,695,399 36,410,739 30,355,028 32,252,753 142,050,427 68,663,492
Improvements other than
buildings 13,610,011 14,468,575 1,953,217 2,508,093 15,563,228 16,976,668
Equipment 1,335,303 1,558,773 552,667 306,664 1,887,970 1,865,437
Infrastructure 341,653 417,575 — — 341,653 417,575
Unclassified plant in service — — 714,937 756,992 714,937 756,992
$ 157,292,194 162,564,781 65,669,907 67,203,745 222,962,101 229,768,526
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 $61,180,000. 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, 2020, with a comparison to 2019.
Governmental Business-type
activities activities
2020 2019 2020 2019 2020 2019
General obligation bonds, including premium $ 67,349,686 72,639,089 — — 67,349,686 72,639,089
Compensated absences 193,433 139,441 118,731 85,019 312,164 224,460
Landfill post closure care costs — — 5,979,000 5,830,000 5,979,000 5,830,000
Loan/notes payable 500,000 550,000 13,911,774 14,780,846 14,411,774 15,330,846
Revenue Bonds Payable — — 12,196,935 13,016,950 12,196,935 13,016,950
$ 68,043,119 73,328,530 32,206,440 33,712,815 100,249,559 107,041,345
Total
Activities
KODIAK ISLAND BOROUGH
Management’s Discussion and Analysis, Continued
26
The Borough’s total debt decreased by $6,791,786 (6.35%) during the current fiscal year. This decrease
can be attributed to regularly scheduled bond payments.
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 five largest
fishing ports in the U.S. in terms of value landed. New fisheries, such as kelp farming, are being
cultivated.
For most of the fiscal year, tourism continued to increase with a steady number of cruise ships
stopping in Kodiak; however, in February the tourism industry was significantly impacted by the
global Coronavirus pandemic. Revenues from this source are expected to be severely impacted
for several years.
Housing availability has increased due to the construction of a 30-unit apartment complex last
year and another housing unit being planned.
Unemployment varies throughout the year due to the seasonal nature of the fishing industry;
however, the Borough’s 2020 unemployment rate was 4.4% compared to 6.4% Alaska-wide.
The United States Coast Guard (USCG) 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 The USCG has continued to upgrade its Kodiak based multipurpose airplanes and search
and rescue cutters over the last few years.
o The USCG has continued to upgrade its base housing units.
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 plans to sell General Obligation bonds in the amount $500,000 for the completion
of High School Renewal and Renovation project and $2.5 million for the completion of school
repair and maintenance projects. After those are sold, bond principal and interest payments are
projected to remain steady.
The Borough hopes to refund (refinance) bonds to capture savings available in the market to
reduce future bond interest payments.
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 2021.
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 2020 2019
Equity in central treasury $ 78,644,817 17,641,030 96,285,847 — 96,285,847 86,257,995
Due from primary
government — — — 16,204,948 16,204,948 14,473,811
Receivables:
State of Alaska 48,989 — 48,989 2,115,473 2,164,462 2,107,831
Federal government 104,391 — 104,391 — 104,391 251,409
Property taxes, net of
allowance of $17,700 344,724 — 344,724 — 344,724 291,880
Severance taxes 190,792 — 190,792 — 190,792 261,503
Excise taxes 113,560 — 113,560 — 113,560 100,377
Interest 371,060 — 371,060 — 371,060 392,042
Land sales contracts
receivable 113,408 — 113,408 — 113,408 130,171
Accounts and other receivables 605,702 722,416 1,328,118 — 1,328,118 597,933
Current portion of
notes receivable — 126,751 126,751 — 126,751 122,398
Inventories — 380,038 380,038 565,068 945,106 857,571
Prepaid items 57,926 — 57,926 26,130 84,056 84,488
Restricted cash and equivalents — 1,327,356 1,327,356 — 1,327,356 1,308,245
Internal balances 72,757 (72,757) — — — —
Notes receivable — 1,148,058 1,148,058 — 1,148,058 1,274,809
Net OPEB asset — — — 1,343,528 1,343,528 —
Capital assets:
Assets to be contributed — — — 198,774 198,774 —
Non-depreciable 30,309,828 32,094,058 62,403,886 — 62,403,886 141,088,362
Depreciable, net 126,982,366 33,575,849 160,558,215 903,153 161,461,368 89,441,893
Total assets 237,960,320 86,942,799 324,903,119 21,357,074 346,260,193 339,042,718
Deferred outflows of resources -
Pension and OPEB deferrals 824,560 225,735 1,050,295 3,869,526 4,919,821 6,878,374
Total assets and deferred
outflows of resources $238,784,880 87,168,534 325,953,414 25,226,600 351,180,014 345,921,092
Liabilities:
Accounts payable $373,585 407,910 781,495 2,177,557 2,959,052 2,092,788
Accrued compensation
and related liabilities 293,102 — 293,102 3,182,671 3,475,773 3,333,848
Other accrued liabilities 989,395 116,851 1,106,246 774,801 1,881,047 1,916,165
Customer deposits 2,450 9,459 11,909 — 11,909 49,340
Unearned revenues 4,645,558 219,034 4,864,592 207,882 5,072,474 499,296
Due to component unit 16,204,948 — 16,204,948 — 16,204,948 14,473,811
Noncurrent liabilities:
Due within one year:
Accrued leave 80,405 27,983 108,388 — 108,388 82,340
Notes payable 5,534,403 1,719,087 7,253,490 23,765 7,277,255 7,051,128
Due in more than one year:
Accrued leave 113,028 90,748 203,776 — 203,776 142,120
Notes payable 62,315,283 24,389,622 86,704,905 755,722 87,460,627 94,679,033
Net pension and OPEB liability 5,036,246 1,278,146 6,314,392 26,025,881 32,340,273 40,783,752
Landfill closure costs — 5,979,000 5,979,000 — 5,979,000 5,830,000
Total liabilities 95,588,403 34,237,840 129,826,243 33,148,279 162,974,522 170,933,621
Deferred inflows of resources -
Pension and OPEB deferrals 345,891 77,078 422,969 3,740,177 4,163,146 3,389,203
Net position:
Net investment in capital assets 89,442,508 39,561,198 129,003,706 854,451 129,858,157 129,472,034
Restricted — — — 198,774 198,774 —
Unrestricted 53,408,078 13,292,418 66,700,496 (12,715,081) 53,985,415 42,126,234
Total net position 142,850,586 52,853,616 195,704,202 (11,661,856) 184,042,346 171,598,268
Total liabilities, deferred inflows
of resources and net position $ 238,784,880 87,168,534 325,953,414 25,226,600 351,180,014 345,921,092
See accompanying notes to financial statements.
(With summarized financial information for June 30, 2019)
June 30, 2020
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 2020 2019
Primary government:
Governmental activities:
General government $5,494,888 1,006,601 (32,954) 438,070 (4,083,171) — (4,083,171) — (4,083,171) (3,816,569)
Public safety 696,486 8,734 30,411 — (657,341) — (657,341) — (657,341) (891,608)
Community and economic development 791,716 — 29,329 — (762,387) — (762,387) — (762,387) (1,075,486)
Emergency preparedness 4,479 — — — (4,479) — (4,479) — (4,479) (14,307)
Health and social welfare 157,500 — — — (157,500) — (157,500) — (157,500) (182,900)
Education, culture and recreation 20,447 — — — (20,447) — (20,447) — (20,447) (20,472)
Parks and recreation 32,561 — — — (32,561) — (32,561) — (32,561) (43,368)
Service district maintenance 786,366 27,600 — — (758,766) — (758,766) — (758,766) (617,933)
Primary and secondary education 16,293,027 — — — (16,293,027) — (16,293,027) — (16,293,027) (13,049,398)
Interest on long-term debt 2,346,340 — 2,552,052 — 205,712 — 205,712 — 205,712 2,725,629
Total governmental activities 26,623,810 1,042,935 2,578,838 438,070 (22,563,967) — (22,563,967) — (22,563,967) (16,986,412)
Business-type activities:
Municipal solid waste collection and
disposal 2,795,669 4,151,619 (17,212) — — 1,338,738 1,338,738 — 1,338,738 1,199,532
Hospital facilities 1,302,517 1,384,272 — — — 81,755 81,755 — 81,755 182,301
Long Term Care Center 946,018 1,043,628 — — — 97,610 97,610 — 97,610 83,620
Kodiak Fisheries Research Center 1,334,942 787,296 (3,278) — — (550,924) (550,924) — (550,924) (745,963)
911 service 295,466 — — — — (295,466) (295,466) — (295,466) —
Research court apartments 74,827 49,560 — — — (25,267) (25,267) — (25,267) (300,060)
Total business-type activities 6,749,439 7,416,375 (20,490) — — 646,446 646,446 — 646,446 419,430
Total primary government 33,373,249 8,459,310 2,558,348 438,070 (22,563,967) 646,446 (21,917,521) — (21,917,521) (16,566,982)
Component unit:
School District $ 39,398,734 160,535 4,513,115 68,932 (34,656,152) (34,656,152) (39,133,579)
General revenues:
Property taxes 17,228,428 — 17,228,428 — 17,228,428 16,660,329
Grants and entitlements not restricted to specific programs 3,371,650 — 3,371,650 33,272,564 36,644,214 36,905,560
Land sales 12,140 — 12,140 — 12,140 19,002
Severance taxes 1,286,750 — 1,286,750 — 1,286,750 1,285,669
Excise taxes 389,725 — 389,725 — 389,725 425,444
Support from primary government — — — 10,455,244 10,455,244 9,890,244
Investment earnings 1,454,149 443,602 1,897,751 — 1,897,751 2,818,425
Other 470,560 592,188 1,062,748 40,751 1,103,499 528,562
Transfers (45,000) 45,000 — — — —
Transfers - component unit 1,632,815 — 1,632,815 (1,632,815) — —
Total general revenues and transfers 25,801,217 1,080,790 26,882,007 42,135,744 69,017,751 68,533,235
Change in net position 3,237,250 1,727,236 4,964,486 7,479,592 12,444,078 12,832,674
Net position, at beginning of year 139,613,336 51,126,380 190,739,716 (19,141,448) 171,598,268 158,765,594
Net position, at end of year $142,850,586 52,853,616 195,704,202 (11,661,856) 184,042,346 171,598,268
See accompanying notes to financial statements.
KODIAK ISLAND BOROUGH
Statement of Activities
Year ended June 30, 2020
(With summarized financial information for the year ended June 30, 2019)
29
Education Other
Education Debt Service Governmental
Assets General Support Facilities Fund Funds 2020 2019
Assets:
Equity in central treasury $ 9,255,957 16,230,643 40,614,042 490,725 12,053,450 78,644,817 70,110,233
Receivables:
State of Alaska 9,544 — — 6,321 33,124 48,989 137,817
Federal government — — — — 104,391 104,391 251,409
Property taxes, net of
allowance of $17,700 49,299 197,327 — 47,952 50,146 344,724 291,880
Severance taxes 190,792 — — — — 190,792 261,503
Excise taxes 113,560 — — — — 113,560 100,377
Interest 371,060 — — — — 371,060 392,042
Land sales contracts, due within one year — — — — 17,143 17,143 16,214
Accounts and other receivables 28,980 — — 58,438 518,284 605,702 94,601
Prepaid items 57,926 — — — — 57,926 68,873
Due from other funds 1,095,825 — — — — 1,095,825 1,536,802
Land sales contracts, due after one year — — — — 96,265 96,265 113,957
Total assets $11,172,943 16,427,970 40,614,042 603,436 12,872,803 81,691,194 73,375,708
Liabilities:
Accounts payable 111,504 6,428 — — 255,653 373,585 481,535
Accrued compensation
and related liabilities 293,102 — — — — 293,102 273,732
Customer deposits — — — — 2,450 2,450 2,450
Due to component unit — 16,204,948 — — — 16,204,948 14,473,811
Due to other funds — — — — 1,023,068 1,023,068 1,476,723
Unearned revenues 4,619,394 — — — 26,164 4,645,558 37,965
Total liabilities 5,024,000 16,211,376 — — 1,307,335 22,542,711 16,746,216
Deferred inflows of resources:
Unavailable revenues 54,394 157,200 — 37,522 152,301 401,417 384,008
Total liabilities and deferred
inflows of resources 5,078,394 16,368,576 — 37,522 1,459,636 22,944,128 17,130,224
Fund balances:
Nonspendable 57,926 — — — — 57,926 68,873
Committed — — 40,614,042 565,914 5,006,108 46,186,064 45,862,404
Assigned — 59,394 — — 7,393,442 7,452,836 5,899,049
Unassigned 6,036,623 — — — (986,383) 5,050,240 4,415,158
Total fund balances 6,094,549 59,394 40,614,042 565,914 11,413,167 58,747,066 56,245,484
Total liabilities, deferred inflows
of resources and fund balances $11,172,943 16,427,970 40,614,042 603,436 12,872,803 81,691,194 73,375,708
See accompanying notes to financial statements.
Liabilities, Deferred Inflows of Resources,
and Fund Balances
KODIAK ISLAND BOROUGH
Totals
Governmental Funds
Special Revenue Funds
(With summarized financial information for June 30, 2019)
June 30, 2020
Balance Sheet
30
Amount reported as fund balances on the governmental funds balance sheet $ 58,747,066
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.157,292,194
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 $288,009
Notes receivable - land sales 113,408 401,417
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 and loan payable (61,680,000)
Bond premium (6,169,686)
Accrued interest expense (989,395)
Compensated absences (193,433) (69,032,514)
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 824,560
Pension and OPEB related liabilities in the current fiscal year are presented
as deferred inflows of resources (345,891)
Proportionate share of the collective net pension and OPEB liabilities (5,036,246)
Net position of governmental activities $ 142,850,586
See accompanying notes to financial statements.
KODIAK ISLAND BOROUGH
Reconciliation of Net Position Between the
June 30, 2020
Government-Wide Financial Statements and the Fund Financial Statements
31
Education Other
Education Debt Service Governmental
General Support Facilities Fund Funds 2020 2019
Revenues:
Property taxes and assessments $1,052,998 10,562,780 — 2,539,515 2,823,425 16,978,718 16,794,958
Transient accommodations tax — — — — 62,829 62,829 78,971
Severance taxes 1,223,921 — — — — 1,223,921 1,206,698
Excise taxes 389,725 — — — — 389,725 425,444
Intergovernmental:
State sources 1,504,734 — — 2,767,590 106,191 4,378,515 8,128,643
Federal sources 2,018,573 — — — 368,697 2,387,270 2,147,572
Charges for services 1,520 — — — 911,400 912,920 847,112
Licenses, permits and fees 96,415 — — — 33,600 130,015 164,041
Investment income 152,804 — 1,130,902 — 170,443 1,454,149 2,196,169
Rental — — — — 14,400 14,400 12,000
Other 38,340 — — — 494,899 533,239 95,463
Total revenues 6,479,030 10,562,780 1,130,902 5,307,105 4,985,884 28,465,701 32,097,071
Expenditures:
Current:
General government 4,450,375 — — 4,188 743,220 5,197,783 5,308,369
Public safety 118,700 — — — 517,165 635,865 714,826
Community and
economic development 797,843 — — — 87,336 885,179 1,183,798
Emergency preparedness 4,479 — — — — 4,479 14,307
Health and social welfare 157,500 — — — — 157,500 182,900
Education, culture
and recreation 20,447 — — — — 20,447 20,472
Parks and recreation 32,561 — — — — 32,561 57,096
Service district maintenance — — — — 786,366 786,366 569,610
Primary and secondary education 50,000 10,472,544 — — — 10,522,544 9,970,576
Capital outlay:
Schools — — — — 555,253 555,253 2,092,006
General — — — — 1,049,466 1,049,466 991,403
Debt service:
Principal — — — 4,655,000 — 4,655,000 4,425,000
Interest — — — 3,078,394 — 3,078,394 3,253,414
Debt issuance costs — — — — — — 10,000
Total expenditures 5,631,905 10,472,544 — 7,737,582 3,738,806 27,580,837 28,793,777
Excess (deficiency) of revenues
over expenditures 847,125 90,236 1,130,902 (2,430,477) 1,247,078 884,864 3,303,294
Other financing sources (uses):
Land sale proceeds — — — — 28,903 28,903 76,676
Proceeds from sale of capital assets — — — — — — 9,815
Proceeds from issuance of debt — — — — — — 550,000
Transfers in — — — 830,105 798,086 1,628,191 1,786,712
Transfers out (113,000) — (835,191) — (725,000) (1,673,191) (1,831,712)
Transfers in - component unit — — — 1,632,815 — 1,632,815 —
Net other financing
sources (uses)(113,000) — (835,191) 2,462,920 101,989 1,616,718 591,491
Change in fund balances 734,125 90,236 295,711 32,443 1,349,067 2,501,582 3,894,785
Fund balances (deficit),
at beginning of year 5,360,424 (30,842) 40,318,331 533,471 10,064,100 56,245,484 52,350,699
Fund balances, at end of year $ 6,094,549 59,394 40,614,042 565,914 11,413,167 58,747,066 56,245,484
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, 2020
(With summarized financial information for the year ended June 30, 2019)
32
KODIAK ISLAND BOROUGH
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit)
Year ended June 30, 2020
Change in fund balances – total governmental funds $ 2,501,582
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 $1,135,801
Depreciation expense (6,352,937) (5,217,136)
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. This is the net effect of transactions involving
capital assets:
Cost of assets disposed (55,451)
Accumulated depreciation of assets disposed — (55,451)
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 372,514
Land sale proceeds 28,903 401,417
Certain revenues that were earned in a prior year provide
current financial resources:
Accrued property tax (253,837)
Land sale contracts (130,171) (384,008)
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 47,651
Principal repayments 4,655,000
Bond premium amortization 684,403 5,387,054
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 (53,992)
Change in the proportionate share of the unfunded
net pension and OPEB liabilities 610,634
Changes in deferred inflows and outflows of resources are the result
of timing differences in the actuarial report and adjustments to reflect
employer and non-employer contributions based on the measurement
date of the liabilities.47,150
Change in net position of governmental activities $
3,237,250
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 Funds 2020 2019
Current assets:
Equity in central treasury $7,518,137 4,857,827 2,634,294 2,541,086 89,686 17,641,030 16,147,762
Restricted cash and equivalents 312,218 — 1,015,138 — — 1,327,356 1,308,245
Customer receivables 378,818 — — 308,031 35,567 722,416 503,332
Current portion of note receivable — — — 126,751 — 126,751 122,398
Total current assets 8,209,173 4,857,827 3,649,432 2,975,868 125,253 19,817,553 18,081,737
Inventories 380,038 — — — — 380,038 380,038
Capital assets:
Non-depreciable 31,279,475 193,981 — 620,602 — 32,094,058 31,379,243
Depreciable, net 1,928,528 11,459,714 13,449,010 6,431,998 306,599 33,575,849 35,824,502
Total capital assets 33,208,003 11,653,695 13,449,010 7,052,600 306,599 65,669,907 67,203,745
Notes receivable — — — 1,148,058 — 1,148,058 1,274,809
Total noncurrent assets 33,588,041 11,653,695 13,449,010 8,200,658 306,599 67,198,003 68,858,592
Pension and OPEB deferrals 158,949 — — 66,786 — 225,735 250,588
Total assets and deferred
outflows of resources $41,956,163 16,511,522 17,098,442 11,243,312 431,852 87,241,291 87,190,917
Current liabilities:
Accounts payable $165,546 8,621 — 118,340 115,403 407,910 334,987
Customer deposits 9,459 — — — — 9,459 46,890
Current portion of accrued
compensation and related liabilities 22,750 — — 5,233 — 27,983 18,076
Unearned revenues — 115,356 86,969 16,709 — 219,034 205,850
Interest payable 81,690 — 35,161 — — 116,851 124,463
Current portion of notes and bonds payable 1,121,283 — 597,804 — — 1,719,087 1,689,087
Due to other funds 58,339 3,286 327 10,038 767 72,757 60,079
Total current liabilities 1,459,067 127,263 720,261 150,320 116,170 2,573,081 2,479,432
Noncurrent liabilities:
Accrued compensation and
related liabilities 72,022 — — 18,726 — 90,748 66,943
Notes payable 14,795,967 — 9,593,655 — — 24,389,622 26,108,709
Accrual for landfill closure
and postclosure costs 5,979,000 — — — — 5,979,000 5,830,000
Net pension and OPEB liability 928,073 — — 350,073 — 1,278,146 1,463,230
Total noncurrent liabilities 21,775,062 — 9,593,655 368,799 — 31,737,516 33,468,882
Total liabilities 23,234,129 127,263 10,313,916 519,119 116,170 34,310,597 35,948,314
Deferred inflows of resources -
Pension and OPEB deferrals 61,713 — — 15,365 — 77,078 116,223
Net position:
Net investment in capital assets 17,290,753 11,653,695 3,257,551 7,052,600 306,599 39,561,198 39,405,949
Unrestricted 1,369,568 4,730,564 3,526,975 3,656,228 9,083 13,292,418 11,720,431
Total net position 18,660,321 16,384,259 6,784,526 10,708,828 315,682 52,853,616 51,126,380
Total liabilities, deferred inflows
of resources and net position $ 41,956,163 16,511,522 17,098,442 11,243,312 431,852 87,241,291 87,190,917
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, 2019)
June 30, 2020
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, 2020
(With summarized financial information for the year ended June 30, 2019)
Municipal Kodiak Other
Solid Waste Fisheries Nonmajor
Collection and Hospital Long Term Research Enterprise Totals
Disposal Facilities Care Center Center Funds 2020 2019
Operating revenues:
Charges for services:
Solid waste disposal $4,151,619 — — — — 4,151,619 4,465,387
Lease income — 1,384,272 1,043,628 787,296 49,560 3,264,756 3,248,067
Other 1,797 — — 247,710 295,447 544,954 324,736
Total operating revenues 4,153,416 1,384,272 1,043,628 1,035,006 345,007 7,961,329 8,038,190
Operating expenses:
Personnel services 932,704 97,013 328 237,769 11,918 1,279,732 1,395,681
Contracted services 298,685 — — — — 298,685 392,481
Maintenance and repairs 195,062 — — 3,685 249 198,996 208,200
Depreciation 280,603 1,062,320 518,933 662,409 34,067 2,558,332 2,565,950
General and administration 343,440 143,184 23,140 308,285 25,596 843,645 935,577
Miscellaneous — — — 122,794 4,804 127,598 206,776
Telephone services — — — — 293,659 293,659 298,265
Recycling services 283,176 — — — — 283,176 270,588
Closure and postclosure costs 149,000 — — — — 149,000 295,000
Contributions 37,904 — — — — 37,904 37,040
Total operating expenses 2,520,574 1,302,517 542,401 1,334,942 370,293 6,070,727 6,605,558
Operating income (loss) 1,632,842 81,755 501,227 (299,936) (25,286) 1,890,602 1,432,632
Nonoperating revenues (expense):
Intergovernmental:
State of Alaska on-behalf payment (17,840) — — (4,535) — (22,375) 27,360
Federal sources 628 — — 1,257 — 1,885 —
Investment income 240,268 50,053 95,151 58,130 — 443,602 622,256
Interest revenue — — — 46,951 283 47,234 51,155
Interest expense (275,095) — (403,617) — — (678,712) (715,826)
Total nonoperating income (expense)(52,039) 50,053 (308,466) 101,803 283 (208,366) (15,055)
Income before transfers 1,580,803 131,808 192,761 (198,133) (25,003) 1,682,236 1,417,577
Transfers in — — — 45,000 340,666 385,666 45,000
Transfers out — — — (340,666) — (340,666) —
Change in net position 1,580,803 131,808 192,761 (493,799) 315,663 1,727,236 1,462,577
Net position, at beginning of year 17,079,518 16,252,451 6,591,765 11,202,627 19 51,126,380 49,663,803
Net position, at end of year $ 18,660,321 16,384,259 6,784,526 10,708,828 315,682 52,853,616 51,126,380
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 Funds 2020 2019
Cash flows from operating activities:
Cash received from customers $4,129,280 1,384,272 1,043,703 938,116 345,025 7,840,396 8,183,491
Payments to suppliers (1,163,438) (154,936) (23,140) (348,654) (320,573) (2,010,741) (2,428,531)
Payments to employees (1,061,469) (97,013) (328) (274,668) (11,918) (1,445,396) (1,501,970)
Net cash provided by
operating activities 1,904,373 1,132,323 1,020,235 314,794 12,534 4,384,259 4,252,990
Cash flows from noncapital financing activities:
State sources - grants (17,840) — — (4,535) — (22,375) 27,360
Federal sources - grants 628 — — 1,257 — 1,885 —
Net change in interfund receivable/payable 16,265 (2,563) 327 (2,117) 767 12,679 (10,993)
Transfers in — — — 45,000 — 45,000 45,000
Net cash provided (used) by noncapital
financing activities (947) (2,563) 327 39,605 767 37,189 61,367
Cash flows from capital and related
financing activities:
Acquisition and construction of capital assets (548,459) (190,572) — (285,463) — (1,024,494) (803,994)
Interest paid on notes payable and
interfund borrowings (281,053) — (405,271) — — (686,324) (723,784)
Principal payments on notes payable
and interfund borrowings (1,111,283) — (577,804) — — (1,689,087) (1,659,088)
Net cash provided (used) by capital and
related financing activities (1,940,795) (190,572) (983,075) (285,463) — (3,399,905) (3,186,866)
Cash flows from investing activities:
Interest and dividends received 240,268 50,053 95,151 105,081 283 490,836 673,411
Net change in cash and
cash equivalents 202,899 989,241 132,638 174,017 13,584 1,512,379 1,800,902
Cash and equivalents, at beginning of year 7,627,456 3,868,586 3,516,794 2,367,069 76,102 17,456,007 15,655,105
Cash and equivalents, at end of year $ 7,830,355 4,857,827 3,649,432 2,541,086 89,686 18,968,386 17,456,007
Reconciliation of cash and cash equivalents
to the Statement of Net Position:
Equity in central treasury $ 7,518,137 4,857,827 2,634,294 2,541,086 89,686 17,641,030 16,147,762
Restricted cash and equivalents 312,218 — 1,015,138 — — 1,327,356 1,308,245
$7,830,355 4,857,827 3,649,432 2,541,086 89,686 18,968,386 17,456,007
Reconciliation of operating income (loss) to net
cash provided by operating activities:
Operating income (loss)$1,632,842 81,755 501,227 (299,936) (25,286) 1,890,602 1,432,632
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation 280,603 1,062,320 518,933 662,409 34,067 2,558,332 2,565,950
Pension expense (158,833) — — (40,543) — (199,376) (77,618)
Accrual for landfill closure and
postclosure costs 149,000 — — — — 149,000 295,000
Changes in assets and liabilities that
provided (used) cash:
(Increase) decrease in assets:
Customer receivables 8,864 — — (227,966) 18 (219,084) 37,160
Notes receivable — — — 122,398 — 122,398 118,194
Increase (decrease) in liabilities:
Accounts payable (5,171) (11,752) — 86,110 3,735 72,922 (79,604)
Customer deposits (33,000) — — (4,431) — (37,431) (13,578)
Accrued compensation 30,068 — — 3,644 — 33,712 (28,671)
Unearned revenues — — 75 13,109 — 13,184 3,525
Net cash provided (used) by
operating activities $1,904,373 1,132,323 1,020,235 314,794 12,534 4,384,259 4,252,990
Non-cash capital and related financing activities:
Transfer of capital assets between funds $— — — (340,666) 340,666 — —
See accompanying notes to financial statements.
Proprietary Funds - Business - Type Activities - Enterprise Funds
(With summarized financial information for the year ended June 30, 2019)
Year ended June 30, 2020
Statement of Cash Flows
KODIAK ISLAND BOROUGH
36
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
Year Ended June 30, 2020
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, 2020.
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 FY2020 the Borough set a mill rate of 0.56 mills for
the General Fund, 7.45 mills for the Education Support Special Revenue Fund, 1.79 mills for the
Education Debt Service Fund, and 0.95 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 FY2019.
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, the
Kodiak Fisheries Research Center Fund, and the Research Court Apartments 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 $ 102,491
Borough manager 37,273
Assessing department 46,904
Engineering/facilities department 46,751
Building official 18,073
Special Revenue Funds:
Fire and Road Service Areas – Womens Bay
Roads Service Area 11,582
Tourism Development 227
Enterprise Fund:
Hospital facilities 149,808
911 Service 45,466
These excesses were funded by available fund balance or net position.
(b) Deficit Fund Equity
The individual fund deficits at June 30, 2020, are as follows:
School Renewal and Replacement Facilities
Bond Projects Capital Projects Fund $ 986,383
The deficit in these funds will be funded by transfers from the General Fund in FY2021.
(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, 2020, 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 $ 20,192,200 8,039,560 9,120,830 3,031,810
Federal Home Loan
Mortgage Corporation 8,058,570 1,011,600 7,046,970 -
Federal Farm Credit Bank 13,043,980 - 13,043,980 -
Federal Agriculture
Mortgage Corporation 2,011,800 2,011,800 - -
Federal National Mortgage
Association 2,054,800 - 2,054,800 -
U.S. Treasury Notes 2,020,620 - 2,020,620 -
Municipal Obligations 9,341,556 - 7,101,636 2,239,920
Alaska Municipal League
Investment Pool 13,631,574 13,631,574 - -
Certificates of Deposit 1,544,593 251,030 1,293,563 -
Corporate – Foreign 1,005,250 1,005,250 - -
Total investments $ 72,904,943 25,950,814 41,682,399 5,271,730
In addition to the investments listed above, Kodiak Island Borough also had cash equivalents of $24,708,260,
which includes restricted cash of $1,327,356.
The remainder of this page left blank intentionally.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
49
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, 2020:
Total Level 1 Level 2 Level 3
Investments by fair value level:
Debt securities:
U.S. Agency Securities $ 45,361,350 45,361,350 - -
U.S. Treasuries 2,020,620 2,020,620 - -
Municipal Obligations 9,341,556 - 9,341,556 -
Corporate - Foreign 1,005,250 - 1,005,250 -
Total investments at fair value level 57,728,776 47,381,970 10,346,806 -
Investments measured at the net asset value:
Alaska Municipal League
Investment Pool 13,631,574
Investments measured at amortized cost:
Certificates of Deposit 1,544,593
Total investments $ 72,904,943
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, 2020, the Borough’s investments in municipal obligations, U.S. Government agencies or
instruments implicitly guaranteed by the U.S. Government, and corporate – foreign were rated as follows:
Moody’s
AAA 79%
AA2 4%
AA3 9%
Not Rated 8%
100%
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
50
At June 30, 2020, 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, 2020,
the Borough had 65% percent of its investments in U.S. Government Agency Securities and U.S. Treasury
Notes and 14% 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.
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, 2020.
(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.
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
51
(5) Receivables
Education Education Other Total
General Support Special Debt Governmental Governmental
Fund Revenue Fund Service Fund Funds Funds
Receivables:
Grants $9,544 — 6,321 137,515 153,380
Taxes 371,351 197,327 47,952 50,146 666,776
Interest 371,060 — — — 371,060
Customers and other 28,980 — 58,438 518,284 605,702
Notes receivable — — — 113,408 113,408
Gross receivables 780,935 197,327 112,711 819,353 1,910,326
Less: allowance
for uncollectibles (17,700) — — — (17,700)
Net total receivables $ 763,235 197,327 112,711 819,353 1,892,626
Municipal Kodiak Other
Solid Waste Fisheries Nonmajor Total Total
Collection Research Enterprise Enterprise Primary
and Disposal Center Fund Funds Government
Receivables:
Grants $— — — — 153,380
Taxes — — — — 666,776
Interest — — — — 371,060
Customers and other 378,818 308,031 35,567 722,416 1,328,118
Notes receivable — 1,274,809 — 1,274,809 1,388,217
Gross receivables 378,818 1,582,840 35,567 1,997,225 3,907,551
Less: allowance
for uncollectibles — — — — (17,700)
Net total receivables $ 378,818 1,582,840 35,567 1,997,225 3,889,851
Enterprise Funds
Governmental Funds
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
52
(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, 2020, the principal balance due is $1,274,809 and the principal amount due within one year
is $126,751. 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, 2020, 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 $ 288,009 - 288,009
Unavailable land sales receivable 113,408 - 113,408
Grant advances prior to expending all proceeds - 4,645,558 4,645,558
Total unavailable/unearned revenue
for governmental funds $ 401,417 4,645,558 5,046,975
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
53
(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, 2020 was as follows:
Beginning Increase/ Ending
Balance Transfers Decrease Balance
Governmental activities:
Capital assets, not being
depreciated
Land $ 23,574,858 - (55,451) 23,519,407
Construction
work-in-progress 86,134,261 1,135,801 (80,479,641) 6,790,421
Total 109,709,119 1,135,801 (80,535,092) 30,309,828
Capital assets, being
depreciated:
Buildings and improvements 115,822,877 79,760,819 - 195,583,696
Improvements other than
buildings 27,898,928 718,822 - 28,617,750
Equipment 4,101,671 - - 4,101,671
Infrastructure 5,762,722 - - 5,762,722
Total 153,586,198 80,479,641 - 234,065,839
Less accumulated
depreciation for:
Buildings and improvements 79,412,138 4,476,159 - 83,888,297
Improvements other than
buildings 13,430,353 1,577,386 - 15,007,739
Equipment 2,542,898 223,470 - 2,766,368
Infrastructure 5,345,147 75,922 - 5,421,069
Total 100,730,536 6,352,937 - 107,083,473
Total capital assets
being depreciated, net 52,855,662 74,126,704 - 126,982,366
Total governmental
activities, net $ 162,564,781 75,262,505 (80,535,092) 157,292,194
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
54
Beginning Increase/ Ending
Balance Transfers 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 29,361,990 266,237 - 29,628,227
Total 31,013,238 266,237 - 31,279,475
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 2,045,621 282,222 - 2,327,843
Total 7,394,025 282,222 - 7,676,247
Less accumulated
depreciation for:
Unclassified utility plant in
service 1,421,741 42,055 - 1,463,796
Improvements other than
buildings 2,273,688 176,127 - 2,449,815
Machinery and equipment 1,771,687 62,421 - 1,834,108
Total 5,467,116 280,603 - 5,747,719
Total capital assets
being depreciated, net 1,926,909 1,619 - 1,928,528
Total Municipal Solid
Waste Collection and
Disposal Fund, net $ 32,940,147 267,856 - 33,208,003
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
55
Beginning Increase/ Ending
Balance Transfers Decrease Balance
Hospital Facilities Fund:
Capital assets, not being
depreciated
Artwork $ 16,091 - - 16,091
Land 10,251 - - 10,251
Construction in progress 4,524 163,115 - 167,639
Total 30,866 163,115 - 193,981
Capital assets, being
depreciated:
Buildings 33,100,284 - - 33,100,284
Improvements other than
buildings 401,046 - - 401,046
Machinery and equipment 3,604,567 27,457 - 3,632,024
Total 37,105,897 27,457 - 37,133,354
Less accumulated
depreciation for:
Buildings 20,764,040 750,044 - 21,514,084
Improvements other than
buildings 275,445 311,021 - 586,466
Machinery and equipment 3,571,835 1,255 - 3,573,090
Total 24,611,320 1,062,320 - 25,673,640
Total capital assets
being depreciated, net 12,494,577 (1,034,863) - 11,459,714
Total Hospital Facilities
Fund, net $ 12,525,443 (871,748) - 11,653,695
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
56
Beginning Increase/ Ending
Balance Transfers Decrease Balance
Long Term Care Center Fund:
Capital assets, being
depreciated:
Buildings $ 15,567,986 - - 15,567,986
Less accumulated
depreciation for:
Buildings 1,600,043 518,933 - 2,118,976
Total Long Term Care
Fund, net $ 13,967,943 (518,933) - 13,449,010
Kodiak Fisheries Research Center Fund:
Capital assets,
not being depreciated
Construction in progress $ 335,139 285,463 - 620,602
Capital assets, being
depreciated:
Buildings 17,840,410 - - 17,840,410
Improvements other than
buildings 2,385,500 - (1,021,998) 1,363,502
Machinery and equipment 1,187,678 - - 1,187,678
Total 21,413,588 - (1,021,998) 20,391,590
Less accumulated
depreciation for:
Buildings 11,891,844 594,681 - 12,486,525
Improvements other than
buildings 898,991 67,728 (681,332) 285,387
Machinery and equipment 1,187,680 - - 1,187,680
Total 13,978,515 662,409 (681,332) 13,959,592
Total capital assets
being depreciated, net 7,435,073 (662,409) (340,666) 6,431,998
Total Kodiak Fisheries
Research Center Fund,
net $ 7,770,212 (376,946) (340,666) 7,052,600
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
57
Beginning Increase/ Ending
Balance Transfers Decrease Balance
Research Court Apartments Fund:
Capital assets being depreciated:
Buildings $ - 1,021,998 - 1,021,998
Less accumulated depreciation:
Buildings - 715,399 - 715,399
Total Research Court
Apartments Fund $ - 306,599 - 306,599
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 29,701,653 714,815 - 30,416,468
Total 31,379,243 714,815 - 32,094,058
Capital assets, being
depreciated:
Unclassified utility plant in
service 2,178,733 - - 2,178,733
Buildings 66,508,680 1,021,998 (1,021,998) 66,508,680
Improvements other than
buildings 5,956,217 - - 5,956,217
Machinery and equipment 6,837,866 309,679 - 7,147,545
Total 81,481,496 1,331,677 (1,021,998) 81,791,175
Less accumulated
depreciation for:
Unclassified utility plant in
service 1,421,741 42,055 - 1,463,796
Buildings 34,255,927 1,897,725 (681,332) 36,153,652
Improvements other than
buildings 3,448,124 1,236,208 - 4,003,000
Machinery and equipment 6,531,202 63,676 - 6,594,878
Total 45,656,994 3,239,664 (681,332) 48,215,326
Total capital assets
being depreciated, net 35,824,502 (1,907,987) (340,666) 33,575,849
Total business-type
activities, net $ 67,203,745 (1,193,172) (340,666) 65,669,907
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
58
During the year the Kodiak Fisheries Research Center Enterprise Fund transferred net capital assets
of $340,666 to the Research Court Apartments Enterprise Fund. This transfer consisted of buildings
with a book value $1,021,998 and accumulated depreciation of $681,332. An additional $34,067 of
depreciation expense was recorded during the year.
Depreciation expense was charged to the departments and functions of the primary government as
follows:
Governmental activities:
General government $ 478,576
Public safety 103,849
Education, culture, recreation 5,770,512
Total – governmental activities $ 6,352,937
Business-type activities:
Municipal solid waste collection and disposal $ 280,603
Hospital facilities 1,062,320
Long Term Care Center 518,933
Kodiak fisheries research center 662,409
Research court apartments 34,067
Total – business-type activities 2,558,332
Total primary government $ 8,911,269
(9) Interfund Receivables, Payables and Transfers
(a) Interfund Receivables and Payables
Interfund balances at June 30, 2020 consisted of the following:
Due to / from other funds:
Receivable Fund Payable Fund Amount
General Fund Other Governmental Funds $ 1,023,068
General Fund Municipal Solid Waste Collection
and Disposal Enterprise Fund 58,339
General Fund Hospital Facilities Enterprise Fund 3,286
General Fund Long Term Care Center Enterprise Fund 327
General Fund Kodiak Fisheries Research Center
Enterprise Fund 10,038
General Fund Other Nonmajor Enterprise Funds 767
Total primary government $ 1,095,825
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
59
(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, 2020 were as follows:
Transfers In
Governmental Funds
Kodiak
Fisheries
Education Other Research Center
Debt Service Governmental Enterprise
Transfers Out Fund Funds Fund Total
Major Governmental Funds:
General Fund - 113,000 - 113,000
Facilities Special Revenue Fund $ 830,105 5,086 - 835,191
Other Governmental Funds - 680,000 45,000 725,000
Total transfers $ 830,105 798,086 45,000 1,673,191
A summary of significant transfers are as follows:
The General Fund transferred $100,000 to the Borough Capital Projects Fund to upgrade
the assessing and collection software.
The General Fund transferred $13,000 to the L.E.P.C. Special Revenue Fund since the
State of Alaska is no longer funding grants to this fund.
The Facilities Special Revenue Fund transferred $830,105 to the Education Debt Service
Fund to help cover debt service payments since the State of Alaska’s elimination of debt
reimbursement payments.
The Facilities Special Revenue Fund transferred $5,000 to the Buildings and Ground
Special Revenue Fund for property insurance costs.
The Facilities Special Revenue Fund transferred $86 to the Renewal and Replacement
Projects Capital Project Fund for future projects.
The Fire and Road Service Areas – Fire Protection Are No. 1 Special Revenue Fund
transferred $355,000 to the Other Capital Projects Capital Project Fund for capital
improvements, including an exterior siding project.
The Land Sales Special Revenue Fund transferred $100,000 to the Other Capital Projects
Capital Project Fund for culvert replacement projects to promote better habitats in fish-
bearing streams.
The Buildings and Grounds Special Revenue Fund transferred $175,000 to the Other
Capital Projects Capital Project Fund for capital improvements.
The Buildings and Grounds Special Revenue Fund transferred $50,000 to the Renewal and
Replacement Projects Capital Project Fund for capital improvements.
The Tourism Development Special Revenue Fund transferred $45,000 to the Kodiak
Fisheries Research Center Enterprise Fund for tourism development activities.
The Borough’s component unit, the Kodiak Island Borough School District, transferred $1,632,815
to the Education Debt Service Fund to help cover the State of Alaksa’s elimination of debt
reimbursement payments.
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, 2019 Additions Reductions June 30, 2020 One Year
Governmental activities:
$8,000,000 2011 Series One
High School Renovation bonds,
due in semi-annual installments
of $355,000 to $595,000 plus
interest at 3.93% to 5.20% through
March 2031 $ 5,540,000 - 355,000 5,185,000 370,000
$5,230,000 2012 Series A
Capital Improvements bonds,
due in semi-annual installments
of $495,000 to $630,000 plus interest
at 4.0% to 5.0% through September 2024 3,365,000 - 495,000 2,870,000 525,000
$6,385,000 2012 Series B
Capital Improvements bonds,
due in semi-annual installments of
$610,000 to $770,000 plus interest
at 4.0% to 5.0% through September 2024 4,110,000 - 610,000 3,500,000 640,000
$21,595,000 2013 Series One
High School Renovation bonds,
due in semi-annual installments of
$895,000 to $1,630,000 plus interest
of 3.8% to 5.0% through
February 2033 17,005,000 - 895,000 16,110,000 935,000
$22,660,000 2014 Series One
High School Renovation bonds,
due in semi-annual installments of
$900,000 to $1,690,000 plus
interest of 3.12% to 5.0% through
March 2034 18,605,000 - 900,000 17,705,000 915,000
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
61
Balance Balance Due Within
July 1, 2019 Additions Reductions June 30, 2020 One Year
Governmental activities, continued:
$6,210,000 2015 Series Three
High School Renovation bonds,
due in semi-annual installments of
$215,000 to $480,000 plus interest
of 4.0% to 5.25% through
October 2035 5,610,000 - 215,000 5,395,000 225,000
$1,780,000 2015 Series Three
Renewal and Replacement bonds,
due in semi-annual installments of
$160,000 to $220,000 plus interest
of 5.0% through October 2025 1,330,000 - 160,000 1,170,000 170,000
$1,870,000 2016 Series One
High School Renovation bonds,
due in semi-annual installments of
$70,000 to $130,000 plus interest
of 2.0% to 5.0% through August 2035 1,710,000 - 70,000 1,640,000 75,000
$5,140,000 2016 Series One
Renewal and Replacement bonds,
due in semi-annual installments of
$490,000 to $660,000 plus interest
of 5.0% through August 2025 4,000,000 - 490,000 3,510,000 515,000
$4,905,000 2016 Series Three
High School Renovation bonds,
due in annual installments of
$415,000 to $605,000 plus interest of
4.0% to 5.0% through December 2027 4,510,000 - 415,000 4,095,000 430,000
$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
2028
550,000
-
50,000
500,000
50,000
$ 66,335,000 - 4,655,000 61,680,000 4,850,000
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
62
(b) Notes and Bonds Payable
As of June 30, 2020, 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, 2020, 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.
$
1,100,000
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.
$
10,843,375
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.
$
1,968,399
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, 2020 is $225,000. The bond will mature
on September 1, 2026.
$
2,005,476
As of June 30, 2020, 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, 2020 is $540,000. The bond will mature
on June 1, 2033. The unspent bond proceeds were defeased in fiscal
year 2017, see Footnote 17.
$
10,191,459
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, 2020, was as follows:
Balance Balance
June 30,June 30,Due within
2019 Additions Reductions 2020 one year
Governmental activities:
Bonds payable:
General obligation bonds $ 65,785,000 — 4,605,000 61,180,000 4,800,000
Loan payable 550,000 — 50,000 500,000 50,000
Bond premium 6,854,089 — 684,403 6,169,686 684,403
73,189,089 — 5,339,403 67,849,686 5,534,403
Compensated absences 139,441 223,136 169,144 193,433 80,405
Total $73,328,530 223,136 5,508,547 68,043,119 5,614,808
Business-type activities:
Municipal Solid Waste
Collection and Disposal:
Landfill closure and
post-closure costs $ 5,830,000 149,000 — 5,979,000 —
Compensated absences 64,704 50,638 20,570 94,772 22,750
Notes and bonds payable 16,810,846 — 1,084,072 15,726,774 1,094,072
Bond premium 217,687 — 27,211 190,476 27,211
Total $22,923,237 199,638 1,131,853 21,991,022 1,144,033
Long Term Care Center:
Bonds payable 9,960,000 — 520,000 9,440,000 540,000
Bond premium 809,263 — 57,804 751,459 57,804
Total $10,769,263 — 577,804 10,191,459 597,804
Kodiak Fisheries Research
Center:
Compensated absences $20,315 15,019 11,375 23,959 5,233
Business-type activities:
Landfill closure and post-
closure costs $ 5,830,000 149,000 — 5,979,000 —
Compensated absences 85,019 65,657 31,945 118,731 27,983
Notes and bonds payable 26,770,846 — 1,604,072 25,166,774 1,634,072
Bond premium 1,026,950 — 85,015 941,935 85,015
Total $33,712,815 214,657 1,721,032 32,206,440 1,747,070
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, 2020, are as follows:
Year ending General Obligation Bonds Loan Payable
June 30: Principal Interest Total Principal Interest Total
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 5,780,000 1,885,645 7,665,645 55,000 7,899 62,899
2026-2030 20,020,000 6,292,623 26,312,623 235,000 14,478 249,478
2031-2035 14,195,000 1,715,803 15,910,803 - - -
2036 610,000 14,713 624,713 - - -
$ 61,180,000 20,018,475 81,198,475 500,000 69,508 569,508
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
64
At June 30, 2020, there was $565,914 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, 2020, are as follows:
Year ending Bonds Payable Notes Payable
June 30: Principal Interest Total Principal Interest Total
2021 $ 765,000 518,899 1,283,899 869,073 208,677 1,077,750
2022 795,000 485,800 1,280,800 869,073 195,641 1,064,714
2023 835,000 445,801 1,280,801 869,073 182,604 1,051,677
2024 875,000 403,674 1,278,674 869,073 169,569 1,038,642
2025 920,000 349,424 1,269,424 869,073 156,532 1,025,605
2026-2029 4,340,000 1,135,622 5,475,622 4,345,361 587,119 4,932,480
2030-2034 2,725,000 257,036 2,982,036 3,945,360 270,217 4,215,577
2035-2037 - - - 1,275,688 28,703 1,304,391
$ 11,255,000 3,596,256 14,851,256 13,911,774 1,799,061 15,710,836
(11) Fund Balances
Detailed information related to amounts classified as nonspendable, committed and assigned fund
balances in governmental funds at June 30, 2020 are as follows:
Education
Support Facilities Education
Special Special Debt Other
General Revenue Revenue Service Governmental
Fund Fund Fund Fund Funds Total
Nonspendable:
Prepaid Items $ 57,926 - - - - 57,926
Committed:
Facility Upgrades - - 40,614,042 - - 40,614,042
Debt Service - - - 565,914 - 565,914
Fire and Road
Service Areas - - - - 2,042,828 2,042,828
Emergency planning - - - - 13,000 13,000
Land Sales - - - - 1,348,857 1,348,857
Buildings and Grounds - - - - 1,287,773 1,287,773
Street Lighting
Districts - - - - 51,536 51,536
Tourism Development - - - - 100,476 100,476
Commercial Passenger Vessel - - - - 99,041 99,041
Mission Lake Tide Gate - - - - 62,597 62,597
Total committed $ - - 40,614,042 565,914 5,006,108 46,186,064
Assigned:
Education support $ - 59,394 - - - 59,394
Capital Projects and
Upgrades - - - - 7,393,442 7,393,442
Total assigned $ - 59,394 - - 7,393,442 7,452,836
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 $5,979,000 as of June 30, 2020,
which is based on 39.4% usage (filled) of the landfill. The Borough recorded closure/post-closure
expenses of $149,000 of estimated future costs for closure and post-closure costs. The estimated total
current cost of the landfill closure and post closure care of $5,979,000 is based on the amount that
would be paid if the landfill were closed as of June 30, 2020. 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), 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 $1,274,809 as of June 30, 2020.
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 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.
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
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
69
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, 2020 the employer contribution rate is 0.72% for peace officers/firefighters and 0.26%
for all others.
Membership in the plan consisted of the following at June 30, 2019 (latest available report):
Membership PERS
Active plan members 22,311
Participating employers 154
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, 2019 (latest available
information) employer contributions were 4.88% of annual payroll. Membership in the plan consisted
of the following at June 30, 2019 (latest report available):
Membership PERS
Inactive plan members or beneficiaries currently receiving benefits 36,059
Inactive plan members entitled to but not yet receiving benefits 7,361
Inactive plan members not entitled to benefits 10,808
Active plan members 12,316
Total plan membership 66,544
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, 2020 employer contributions were 1.32%.
Membership in the plan consists of the following at June 30, 2019 (latest available report):
Membership PERS
Inactive plan members or beneficiaries currently receiving benefits 34
Inactive plan members entitled to but not yet receiving benefits 1,412
Inactive plan members not entitled to benefits 13,248
Active plan members 22,311
Total plan membership 37,005
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
70
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, 2019 (latest available report):
Membership PERS
Inactive plan members or beneficiaries currently receiving benefits 40
Inactive plan members entitled to but not yet receiving benefits 1,412
Inactive plan members not entitled to benefits 13,248
Active plan members 22,311
Total plan membership 37,011
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, 2019 (latest available report) for the DB Plan for PERS
is 5.88%, for the ARHCT plan is 6.03%, for the ODD Plan is 6.22%, and for the RMP is 6.21%.
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.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
71
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
Broad Domestic Equity 8.16%
Global Equity (non-U.S.) 7.51%
Intermediate Treasuries 1.58%
Opportunistic 3.96%
Real Assets 4.76%
Private Equity 11.39%
Cash Equivalents 0.83%
Discount Rate: The discount rate used to measure the total pension and OPEB liabilities and assets is
7.38%, which represents a decrease of 0.62% since the prior measurement period. 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 and assets 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 and assets. In the event
benefit payments are not covered by the plan’s fiduciary net position, a municipal bond rate would be
used to discount the benefits not covered by the plan’s fiduciary net position. The S&P Municipal Bond
20-Year High Grade Index rate was 2.79% as of June 30, 2019.
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 a 7.38% discount rate.
Employer Contribution rates for the year ended June 30, 2020 are as follows:
ARM
Employer Board State
Effective Adopted Contribution
Rate Rate Rate
PERS:
Pension 15.72% 23.73% 6.62%
OPEB 6.28% 4.89% 0%
Total PERS contribution rates 22.00% 28.62% 6.62%
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 2020 the past
service rate for PERS is 17.44%.
Actuarial Assumptions: The total pension and OPEB liabilities on June 30, 2019 (latest available) were
determined by an actuarial valuation as of June 30, 2018 which was rolled forward to the measurement
date June 30, 2019. These actuarial assumptions were based on the results of an actuarial experience
study for the period from July 1, 2013 to June 30, 2017.
Investment return / discount rate 7.38% per year (geometric), compounded annually,
net of expenses
Salary scale Inflation – 2.5% per year
Productivity – 0.25% per year
Payroll growth 2.75% per year (inflation + productivity)
Total inflation Total inflation as measured by the Consumer Price
Index for urban and clerical workers from
Anchorage is assumed to increase 2.5% annually.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
73
Mortality (Pre-termination) Based upon 2013-2017 actual mortality experience,
100% (male and female) of RP-2014 healthy
annuitant table with MP-2017 generational
improvement.
Mortality (Post-termination) Mortality rates based upon the 2013-2017 actual
experience. 91% of male and 96% of female rates
of RP-2014 health annuitant table with MP-2017
generational improvement.
Total turnover Based upon the 2013-2017 actual withdrawal
experience.
Disability Incidence rates based on 2013-2017 actual
experience. Post-disability mortality in accordance
with the RP-2014 disability table with MP-2017
generational improvement. Disabilities are
assumed to be occupational 75% of the time for
peace officers/firefighters, 40% of the time for
others.
Retirement Retirement rates based upon the 2013-2017 actual
experience. Deferred vested members are assumed
to retire at their earliest unreduced retirement date.
Marriage and age difference
Males are assumed to be three years older than their
wives. Females are assumed to be two years
younger than their 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: 7.5% grading down to 4.5%
Post-65 medical: 5.5% grading down to 4.5%
Prescription drugs: 8.5% grading down to 4.5%
EGWP: 8.5% grading down to 4.5%.
As a result of the latest experience study, the Board adopted updated actuarial assumptions for the June
30, 2018 actuarial valuation to better reflect expected future experience. In addition to the changes in
assumptions resulting from the experience study, the following assumption changes related to the
ARHCT plan have been made since the prior valuation:
1. Based on recent experience, the healthcare cost trend assumptions were updated.
2. Per capita claims costs were updated to reflect recent experience.
3. Healthcare cost trends were updated to reflect a Cadillac Tax load.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
74
The changes of assumptions from the latest experience study created substantial deferred outflows of
resources attributable to the Borough, as well as an OPEB benefit recognized by the Borough for the
State’s proportionate share of OPEB plan expense attributable to the Borough. In some instances the
reduction of revenues and expenses reported for the State’s proportionate share of OPEB plan expense
attributable to the Borough creates a net negative Pension/OPEB expense (net pension/OPEB benefit)
which results in negative operating grants and contributions for certain functions reported on the
Statement of Activities.
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 154 employers participating in PERS defined benefit plan, including the State of
Alaska and 153 political subdivisions and public organizations.
The DB Plan’s membership consisted of the following at June 30, 2019 (latest available report):
Inactive plan members or beneficiaries currently receiving benefits 36,059
Inactive plan members entitled to but not receiving benefits 7,361
Inactive members not entitled to benefits 10,808
Active plan members 12,316
Total DB plan membership 66,544
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.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
75
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.
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 7.5% of
their annual covered salary for peace officers/firefighters and 6.75% for all others.
Employer contributions for the year ended June 30, 2020, were:
Pensions
(DB)
Other Post-Employment
Benefits (DB)
Total
$ 352,817 173,586 526,403
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
76
Public Employees Retirement Plans
For the year ended June 30, 2020 the State of Alaska contributed $214,684 (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, 2019 to a total of ($96,455), to represent the
pension/OPEB expense attributable to the State under the full accrual basis of accounting.
Pension and OPEB Liabilities and Assets, Pension and OPEB Expense, and Deferred Outflows of
Resources and Deferred Inflows of Resources Related to Pensions and OPEB: At June 30, 2020, the
Borough reported liabilities and assets 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 (assets), the related State support, and the total portion of the net pension
and OPEB liabilities (assets) that were associated with the Borough were as follows:
Defined Benefit: Pension
Borough’s proportionate share of the net pension liability $ 6,144,196
State’s proportionate share of the net pension liability 2,435,789
Total $ 8,579,985
OPEB
Borough’s proportionate share of the ARHCT OPEB liability $ 166,384
State’s proportionate share of the ARHCT OPEB liability 66,122
Total $ 232,506
Borough’s proportionate share of the ODD OPEB liability (asset) $ (32,784)
Borough’s proportionate share of the RMP OPEB liability $ 36,596
Total Borough’s share of net pension and OPEB liabilities $ 6,314,392
$5,036,246 of the net pension and OPEB liabilities is reported in governemental activities and
$1,278,146 is reported in business-type activities.
The net pension and OPEB liabilities and assets were measured as of June 30, 2019, and the total
pension and OPEB liabilities used to calculate the net pension and OPEB liabilities and assets were
determined by an actuarial valuation as of that date. The Borough’s proportion of the net pension and
OPEB liabilities and assets were based on the present value of contributions for FY2021 through
FY2039, as determined by projections based on the June 30, 2019 valuation.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
77
The Borough’s proportionate share and changes in the pension and OPEB liabilities and assets were as
follows:
June 30, 2018 June 30, 2019
Measurement Measurement Change
Pension .1188% .1122% (.0066%)
OPEB:
ARHCT .1187% .1121% (.0066%)
ODD .1648% .1352% (.0296%)
RMP .1648% .1530% (.0118%)
Based on the measurement date of June 30, 2019, the Borough recognized pension and OPEB expense
of $1,104,492 and ($1,502,899), respectively, for the year ended June 30, 2020. At June 30, 2020, 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 $ - (90,958)
Changes of assumptions 163,918 -
Net difference between projected and actual
earnings on pension plan investments 88,095 -
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions - (107,483)
Borough contributions subsequent to the
measurement date 352,817 -
Total $ 604,830 (198,441)
OPEB ARHCT
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience $ - (111,807)
Changes of assumptions 220,789 -
Net difference between projected and actual
earnings on OPEB plan investments - (72,858)
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions 27,688 (20,791)
Borough contributions subsequent to the
measurement date 142,245 -
Total $ 390,722 (205,456)
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 $ - (10,222)
Changes of assumptions - (627)
Net difference between projected and actual
earnings on OPEB plan investments - (216)
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions 3,469 (3,920)
Borough contributions subsequent to the
measurement date 5,597 -
Total $ 9,066 (14,985)
OPEB RMP
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience $ - (2,711)
Changes of assumptions 17,714 -
Net difference between projected and actual
earnings on OPEB plan investments - (404)
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions 2,219 (972)
Borough contributions subsequent to the
measurement date 25,744 -
Total $ 45,677 (4,087)
$352,817 and $173,586 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 and as an increase to the net pension and OPEB assets
in the year ended June 30, 2020, 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
2020 $ 63,224 59,248 (1,840) 1,714
2021 (65,042) (56,631) (1,840) 1,714
2022 24,995 17,529 (1,540) 2,684
2023 30,395 22,875 (1,534) 2,666
2024 - - (1,635) 2,296
Thereafter - - (3,127) 4,772
Total $ 53,572 43,021 (11,516) 15,846
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
79
For the year ended June 30, 2020, the Borough recognized ($61,054) and ($27,722) of pension and
OPEB amortization of the net deferred outflows and inflows of resources, respectively.
Sensitivity of the Net Pension and OPEB Liabilities and Assets to Changes in the Discount Rate: The
following presents the net pension and OPEB liabilities and assets of the plan calculated using the
discount rate of 7.38%, as well as what the Plans’ net pension and OPEB liabilities and assets would
be if they were calculated using a discount rate that is 1-percentage-point lower (6.38%) or 1-
percentage-point higher (8.38%) than the current rate:
1% Decrease Current Rate 1% Increase
(6.38%) (7.38%) (8.38%)
Net pension liability (asset) $ 8,109,260 6,144,196 4,498,518
Net OPEB ARHCT liability (asset) $ 1,338,353 166,384 (797,688)
Net OPEB ODD liability (asset) $ (31,098) (32,784) (34,148)
Net OPEB RMP liability (asset) $ 91,918 36,596 (5,053)
Sensitivity of the Borough’s proportionate share of the Net OPEB liability and assets to changes in the
healthcare cost trend rates. The following present the Borough ’s proportionate share of the net OPEB
liability (asset), as well as what the Borough ’s proportionate share of the net OPEB liability (asset)
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 (asset) $ (910,443) 166,384 1,480,520
Net OPEB ODD liability (asset) $ NA (32,784) NA
Net OPEB RMP liability (asset) $ (11,255) 36,596 102,101
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): 1.32% 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.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
80
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 $150,350 for the year ended June 30, 2020, which included forfeitures of
$13,831 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, 2020, were $73,054.
The first plan is managed by the International City Managers Association Retirement Corporation
(ICMA). $17,823 was contributed to this plan during the year ended June 30, 2020. 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. $47,544 was contributed to this
plan during the year ended June 30, 2020. The Borough believes that the plan does not meet the
criteria for inclusion as a fiduciary fund.
(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.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
81
(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, 2020, the amount of
defeased debt still outstanding was $4,095,000.
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, 2020, the amount of defeased debt still
outstanding was $3,720,000.
(18) Subsequent Events
Management have evaluated subsequent events through December 28, 2020, the date which the financial
statements were available for issue.
(19) Construction Commitments
The Borough has outstanding commitments for construction at year end of $1,587,446.
(20) Subsequent Accounting Pronouncements
The Governmental Accounting Standards Board has passed several new accounting standards with upcoming
implementation dates covering several topics as follows:
GASB 84 Fiduciary Activities. Effective for fiscal years beginning after December 15, 2019
GASB 87 Leases. Effective for fiscal years beginning after June 15, 2021.
GASB 89 Accounting for Interest Cost Incurred before the End of a Construction Period.
Effective for fiscal years beginning after December 15, 2020.
GASB 90 Majority equity interests. Effective for fiscal years beginning after December 15, 2019.
GASB 91 Conduit Debt Obligations. Effective for fiscal years beginning after December 15,
2021.
GASB 92 Omnibus 2020. This Statement has multiple effective dates which vary by topic.
GASB 93 Replacement of Interbank Offered Rates. Effective for fiscal years beginning after June
15, 2021.
GASB 94 Public-Private and Public-Public Partnerships and Availability Payments
Arrangements. Effective for fiscal years beginning after June 15, 2022.
GASB 95 Postponement of the Effective Dates of Certain Authoritative Guidance. Effective
immediately.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
82
GASB 96 Subscription-Based Information Technology Arrangements. Effective for fiscal years
beginning after June 15, 2022.
GASB 97 Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal
Revenue Code Section 457 Deferred Compensation Plans. Effective for fiscal years
beginning after June 15, 2021.
GASB Statements No. 84, 90, 93, 94 and 97 are 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 recognized 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.
GASB Statement No. 91 provides a single method of reporting conduit debt obligations by issuers and
eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements
associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those
objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt
obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of
additional commitments and voluntary commitments extended by issuers and arrangements associated with
conduit debt obligations; and improving required note disclosures
GASB Statement No. 92, the objectives of this Statement are to enhance comparability and financial reporting
and to improve the consistency of authoritative literature by addressing practice issues that have been identified
during implementation and application of certain GASB Statements.
GASB Statement No. 95 provides temporary relief to governments in light of the COVID-19 pandemic. The
effective dates of the following pronouncement are postponed by one year: GASB Statements No. 83, No. 84,
No. 88, No. 89, No. 90, No. 91, No. 92, and No. 93. The effective date for GASB 87 has been postponed by
18 months.
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
83
GASB Statement No. 96 will improve financial reporting by establishing a definition for Subscription-based
information technology arrangements (SBITAs) and providing uniform guidance for accounting and financial
reporting for transactions that meet that definition. That definition and uniform guidance will result in greater
consistency in practice. Establishing the capitalization criteria for implementation costs also will reduce
diversity and improve comparability in financial reporting by governments. This Statement also will enhance
the relevance and reliability of a government's financial statements by requiring a government to report a
subscription asset and subscription liability for a SBITA and to disclose essential information about the
arrangement. The disclosures will allow users to understand the scale and important aspects of a government's
SBITA activities and evaluate a government's obligations and assets resulting from SBITAs.
REQUIRED SUPPLEMENTARY
INFORMATION
Budgetary Comparison Schedule
General Fund
Year ended June 30, 2020
(With financial information for the year ended June 30, 2019)
Variance with
Final Budget –
Budget Positive 2019
Original Final Actual (Negative)Actual
Revenues:
Property taxes and assessments:
Real $718,025 718,025 710,068 (7,957) 1,448,182
Personal 79,781 79,781 86,754 6,973 152,398
Aircraft 27,000 27,000 29,100 2,100 30,200
Penalty and interest 200,000 200,000 227,076 27,076 288,818
Total property taxes and assessments 1,024,806 1,024,806 1,052,998 28,192 1,919,598
Severance taxes:
Fish 1,375,000 1,375,000 1,170,360 (204,640) 1,163,238
Mining 4,000 4,000 12,564 8,564 5,183
Logging 30,000 30,000 40,997 10,997 38,277
Total severance taxes 1,409,000 1,409,000 1,223,921 (185,079) 1,206,698
Excise taxes:
Tobacco 405,000 405,000 388,276 (16,724) 423,979
Marijuana — — 1,449 1,449 1,465
Total excise taxes 405,000 405,000 389,725 (15,275) 425,444
Intergovernmental:
State sources:
State community assistance 405,124 405,124 408,022 2,898 443,211
Fisheries business tax 1,200,000 1,200,000 718,307 (481,693) 1,816,530
Fisheries resource landing tax 12,000 12,000 210,076 198,076 184,560
Electric cooperative tax 16,750 16,750 16,198 (552) 16,561
On-behalf PERS payment 105,000 105,000 151,657 46,657 137,142
Marijuana license 500 500 474 (26) 1,000
Total state sources 1,739,374 1,739,374 1,504,734 (234,640) 2,599,004
Federal sources:
Payments in lieu of taxes 1,338,000 1,338,000 1,651,791 313,791 1,582,037
Fish and Wildlife revenue sharing 180,000 180,000 193,149 13,149 222,000
Cares Act — — 173,633 173,633 —
Total federal sources 1,518,000 1,518,000 2,018,573 500,573 1,804,037
Total intergovernmental
revenue 3,257,374 3,257,374 3,523,307 265,933 4,403,041
Charges for services -
Sale of copies and maps — — 1,520 1,520 1,458
Licenses, permits and fees:
Building and trailer permits 47,700 47,700 78,274 30,574 99,553
Subdivision and zoning fees 14,900 14,900 8,190 (6,710) 15,705
Business licenses 300 300 1,300 1,000 2,600
Other permits 10,075 10,075 8,651 (1,424) 12,583
Total licenses, permits and fees 72,975 72,975 96,415 23,440 130,441
Investment income 50,000 50,000 152,804 102,804 211,630
Other 3,200 3,200 38,340 35,140 13,752
Total revenues 6,222,355 6,222,355 6,479,030 256,675 8,312,062
(continued)
2020
KODIAK ISLAND BOROUGH
84
Budgetary Comparison Schedule
General Fund, continued
Year ended June 30, 2020
(With financial information for the year ended June 30, 2019)
Variance with
Final Budget –
Budget Positive 2019
Original Final Actual (Negative)Actual
Expenditures:
General government:
General administration $210,038 210,038 312,529 (102,491) 349,619
Borough assembly 163,969 163,969 144,221 19,748 144,455
Borough manager 651,622 651,622 688,895 (37,273) 661,324
Borough clerk 500,009 500,009 454,883 45,126 552,966
Borough attorney 135,000 135,000 88,376 46,624 86,894
Finance department 932,445 932,445 811,528 120,917 755,760
Management information systems 989,937 889,937 863,789 26,148 950,741
Assessing department 608,205 608,205 655,109 (46,904) 522,375
Engineering/facilities department 384,294 384,294 431,045 (46,751) 463,007
Total general government 4,575,519 4,475,519 4,450,375 25,144 4,487,141
Public safety - animal control 118,700 118,700 118,700 — 115,800
Community and economic development:
Community development department 970,101 970,101 592,579 377,522 905,996
Building official 166,591 166,591 184,664 (18,073) 188,072
Economic development 20,600 20,600 20,600 — 600
Total community and economic
development 1,157,292 1,157,292 797,843 359,449 1,094,668
Emergency preparedness 63,043 63,043 4,479 58,564 14,307
Health and social welfare 157,500 157,500 157,500 — 182,900
Education, culture and recreation 20,800 20,800 20,447 353 20,472
Parks and recreation 86,904 86,904 32,561 54,343 57,096
Kodiak College and city libraries 50,000 50,000 50,000 — 50,000
Total expenditures 6,229,758 6,129,758 5,631,905 497,853 6,022,384
Excess (deficiency) of revenues
over expenditures (7,403) 92,597 847,125 754,528 2,289,678
Other financing sources (uses):
Proceeds from sale of assets — — — — 4,815
Transfers in — — — — 142,177
Transfers out (13,000) (113,000) (113,000) — (265,200)
Net other financing sources (uses)(13,000) (113,000) (113,000) — (118,208)
Change in fund balance $(20,403) (20,403) 734,125 754,528 2,171,470
Fund balance, at beginning of year 5,360,424 3,188,954
Fund balance, at end of the year $ 6,094,549 5,360,424
See accompanying notes to required supplementary information.
2020
KODIAK ISLAND BOROUGH
85
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Special Revenue Fund – Education Support
Year ended June 30, 2020
(With financial information for the year ended June 30, 2019)
Variance with
Final Budget –
Budget Positive 2019
Original Final Actual (Negative)Actual
Revenues:
Property taxes and assessments:
Real $9,554,612 9,554,612 9,408,641 (145,971) 8,819,223
Personal 1,035,893 1,035,893 1,154,139 118,246 976,733
Intergovernmental - state sources -
Motor vehicle tax — — — — 220,392
Total revenues 10,590,505 10,590,505 10,562,780 (27,725) 10,016,348
Expenditures:
Primary and secondary education 10,590,505 10,590,505 10,472,544 117,961 9,920,576
Excess of revenues
over expenditures $— — 90,236 90,236 95,772
Fund balance (deficit), at beginning of year (30,842) (126,614)
Fund balance (deficit), at end of year $ 59,394 (30,842)
See accompanying notes to required supplementary information.
2020
86
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Special Revenue Fund – Facilities
Year ended June 30, 2020
(With financial information for the year ended June 30, 2019)
Variance with
Final Budget –
Budget Positive 2019
Original Final Actual (Negative) Actual
Revenues -
Investment income $750,000 750,000 1,130,902 380,902 1,625,077
Expenditures 210,564 — — — —
Excess of revenues over
expenditures 539,436 750,000 1,130,902 380,902 1,625,077
Other financing (uses):
Transfers out (539,436) (835,191) (835,191) — (677,965)
Change in fund balance $— (85,191) 295,711 380,902 947,112
Fund balance, at beginning of year 40,318,331 39,371,219
Fund balance, at end of year $ 40,614,042 40,318,331
See accompanying notes to required supplementary information.
2020
87
KODIAK ISLAND BOROUGH
Notes to Required Supplementary Information – Budgetary Comparison Schedules
June 30, 2020
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 2020 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%
0.1122% $ 6,144,196 $ 2,435,789 $ 8,579,985 $ 3,249,981 189% 63.42%
Notes to Schedule:
1.
2.
2015
2016
2017
The plan measurement date is one year prior to fiscal year end for all years presented.
This schedule is intended to present 10 years of information. Additional years' information will be included as it becomes available.
2018
2019
2020
KODIAK ISLAND BOROUGH
Public Employees' Retirement System (PERS)
Schedule of the Borough's Proportionate Share of the Net Pension Liability
June 30, 2020
Year
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%
0.1121% $ 166,384 $ 66,122 $ 232,506 3,249,981 5.12% 98.13%
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%
0.1352% $ (32,784) $ - $ (32,784) $ 3,249,981 -1.01% 297.43%
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%
0.1530% $ 36,596 $ - $ 36,596 $ 665,832 5.50% 83.17%
Notes to Schedule:
1.
2.
2018
2018
2018
2019
2019
2020
2020
KODIAK ISLAND BOROUGH
Schedule of the Borough's Proportionate Share of the Net OPEB Liability (Asset)
Public Employees' Retirement System (PERS)
June 30, 2020
Year
The plan measurement date is one year prior to fiscal year end for all years presented.
This schedule is intended to present 10 years of information. Additional years' information will be included as it becomes available.
2019
2020
90
Contributions
Relative to the Contributions
Contractually Contractually Contribution District'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%
$356,123 $(352,817) $3,306 $3,076,150 11.58%
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. Asset valuation method:
7.Inflation:
8. Salary increases:
9. Investment rate of return:
10.Retirement age:
11.Mortality:
12.This schedule is intended to present 10 years of information. Additional years' information will be included as it becomes available.
contributions are reported.
2.5% per annum.
KODIAK ISLAND BOROUGH
Public Employees' Retirement System (PERS)
Schedule of the Borough's Contributions (Pensions)
June 30, 2020
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
2020
Ranges from 7.75% to 2.75% based on service for Peace Officers/Firefighters. Ranges from 6.75% to
2.75% 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.
7.38%, net of pension plan investment expenses. This is based on an average inflation rate of 2.5%
and a real rate of return of 4.88%.
Retirement rates based upon the 2013-2017 actual experience.
Mortality rates based upon the 2013-2017 actual experience.
91
Contributions
Relative to the Contributions
Contractually Contractually Contribution District'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%
$ 142,245 $ (142,245) $ - $ 3,076,150 4.62%
Occupational Death and Disability (ODD):
$ 3,283 $ (3,283) $ - $ 3,597,759 0.09%
$ 5,521 $ (5,521) $ - $ 3,249,981 0.17%
$ 5,597 $ (5,597) $ - $ 3,076,150 0.18%
Retiree Medical Plan (RMP):
$ 19,210 $ (19,210) $ - $ 669,059 2.87%
$ 17,951 $ (17,951) $ - $ 665,832 2.70%
$ 25,744 $ (25,744) $ - $ 683,409 3.77%
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. Asset valuation method:
7. Inflation:
8. Salary increases:
9. Investment rate of return:
10.Retirement age:
11.Mortality:
12.This schedule is intended to present 10 years of information. Additional years' information will be included as it becomes available.
2020
2020
KODIAK ISLAND BOROUGH
Schedule of the Borough's Contributions (OPEB)
Public Employees' Retirement System (PERS)
June 30, 2020
Year
Mortality rates based upon the 2013-2017 actual experience.
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.
2.5% per annum.
Ranges from 7.75% to 2.75% based on service for Peace Officers/Firefighters. Ranges from 6.75% to
2.75% based on age and service for all others.
7.38%, net of pension plan investment expenses. This is based on an average inflation rate of 2.5%
and a real rate of return of 4.88%.
Retirement rates based upon the 2013-2017 actual experience.
2018
2018
2019
2019
2019
2020
92
ADDITIONAL SUPPLEMENTARY INFORMATION
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Debt Service Fund - Education
Year ended June 30, 2020
(With summarized financial information for the year ended June 30, 2019)
Variance with
Final Budget –
Positive 2019
Original Final Actual (Negative)Actual
Revenues:
Property taxes and assessments $2,544,564 2,544,564 2,539,515 (5,049) 2,598,320
Intergovernmental:
State sources 5,493,053 5,493,053 2,767,590 (2,725,463) 5,226,069
Investment income (loss)— — — — 1,213
Total revenues 8,037,617 8,037,617 5,307,105 (2,730,512) 7,825,602
Expenditures:
General government 306,223 1,136,328 4,188 1,132,140 7,726
Debt service:
Principal 4,655,000 4,655,000 4,655,000 — 4,425,000
Interest 3,076,394 3,076,394 3,078,394 (2,000) 3,253,414
Debt issuance — — — — 10,000
Total expenditures 8,037,617 8,867,722 7,737,582 1,130,140 7,696,140
Excess (deficiency) of revenues
over expenditures — (830,105) (2,430,477) (1,600,372) 129,462
Other financing sources (uses):
Transfers in - Facilities Special Revenue Fund — 830,105 830,105 — 338,982
Transfers out - General Fund — — — — (142,177)
Transfers in - Component Unit — — 1,632,815 1,632,815 —
Net other financing sources (uses) — 830,105 2,462,920 1,632,815 196,805
Change in fund balance $— — 32,443 32,443 326,267
Fund balance, at beginning of year 533,471 207,204
Fund balance, at end of year $ 565,914 533,471
2020
Budget
93
KODIAK ISLAND BOROUGH
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2020
(With summarized financial information at June 30, 2019)
Special Capital
Revenue Project
Assets Funds Funds 2020 2019
Equity in central treasury $ 5,090,869 6,962,581 12,053,450 11,503,027
Receivables:
State of Alaska — 33,124 33,124 14,314
Federal government — 104,391 104,391 251,409
Property taxes, net 26,357 23,789 50,146 42,471
Land sales contracts, due within one year 17,143 — 17,143 16,214
Accounts and other receivables, net 88,888 429,396 518,284 69,224
Prepaid items — — — 1,311
Land sale contracts, due after one year 96,265 — 96,265 113,957
Total assets $ 5,319,522 7,553,281 12,872,803 12,011,927
Liabilities:
Accounts payable $126,605 129,048 255,653 269,081
Customer deposits 2,450 — 2,450 2,450
Due to other funds 34,511 988,557 1,023,068 1,476,723
Unearned revenues 16,516 9,648 26,164 37,248
Total liabilities 180,082 1,127,253 1,307,335 1,785,502
Deferred inflows of resources -
Unavailable revenues 133,332 18,969 152,301 162,325
Total liabilities and deferred
inflows of resources 313,414 1,146,222 1,459,636 1,947,827
Fund balances:
Nonspendable — — — 1,311
Committed 5,006,108 — 5,006,108 5,010,602
Assigned — 7,393,442 7,393,442 5,899,049
Unassigned — (986,383) (986,383) (846,862)
Total fund balances 5,006,108 6,407,059 11,413,167 10,064,100
Total $ 5,319,522 7,553,281 12,872,803 12,011,927
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, 2020
(With summarized financial information for year ended June 30, 2019)
Special Capital
Revenue Project
Funds Funds 2020 2019
Revenues:
Property taxes and assessments $1,477,513 1,345,912 2,823,425 2,481,084
Transient accommodations tax 62,829 — 62,829 78,971
Intergovernmental:
State sources 67,250 38,941 106,191 83,178
Federal sources 46,647 322,050 368,697 343,535
Charges for services 911,400 — 911,400 845,654
Licenses, permits and fees 33,600 — 33,600 33,600
Investment income 161,436 9,007 170,443 358,249
Rental 14,400 — 14,400 12,000
Other 4,069 490,830 494,899 81,711
Total revenues 2,779,144 2,206,740 4,985,884 4,317,982
Expenditures:
Current:
General government 629,714 113,506 743,220 813,502
Public safety 517,165 — 517,165 599,026
Community and economic development 87,336 — 87,336 89,130
Service district maintenance 786,366 — 786,366 569,610
Capital outlay:
Schools — 555,253 555,253 2,092,006
General 86,271 963,195 1,049,466 991,403
Total expenditures 2,106,852 1,631,954 3,738,806 5,154,677
Excess (deficiency) of revenues
over expenditures 672,292 574,786 1,247,078 (836,695)
Other financing sources (uses):
Land sales proceeds 28,903 — 28,903 76,676
Proceeds from sale of capital assets — — — 5,000
Proceeds from sale of bonds — — — 550,000
Transfers in 18,000 780,086 798,086 1,305,553
Transfers out (725,000) — (725,000) (746,370)
Net other financing sources (uses) (678,097) 780,086 101,989 1,190,859
Change in fund balances (5,805) 1,354,872 1,349,067 354,164
Fund balances, at beginning of year 5,011,913 5,052,187 10,064,100 9,709,936
Fund balances, at end of year $ 5,006,108 6,407,059 11,413,167 10,064,100
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 $131,042 698,372 53,394 221,843 870,169 137,298 49,974 6,345 13,000
Receivables:
State of Alaska — — — — — — — — —
Property taxes, net 7,910 2,533 3,414 906 5,983 5,067 499 — —
Land sales contracts, due within one year — — — — — — — — —
Accounts and other receivables, net — — — — — — — — —
Prepaid items — — — — — — — — —
Land sale contracts, due after one year — — — — — — — — —
Total $138,952 700,905 56,808 222,749 876,152 142,365 50,473 6,345 13,000
Liabilities:
Accounts payable 9,844 3,397 — 7,250 68,406 2,565 551 — —
Customer deposits — 1,450 — — — — — — —
Due to other funds 26,587 — — — 75 — — — —
Unearned revenues 9,497 2,417 — — — — — — —
Total liabilities 45,928 7,264 — 7,250 68,481 2,565 551 — —
Deferred inflows of resources:
Unavailable revenues 5,293 2,120 3,216 687 3,856 4,240 470 — —
Total liabilities and deferred
inflows of resources 51,221 9,384 3,216 7,937 72,337 6,805 1,021 — —
Fund balances:
Nonspendable — — — — — — — — —
Committed 87,731 691,521 53,592 214,812 803,815 135,560 49,452 6,345 13,000
Total fund balances 87,731 691,521 53,592 214,812 803,815 135,560 49,452 6,345 13,000
Total $138,952 700,905 56,808 222,749 876,152 142,365 50,473 6,345 13,000
(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, 2019)
June 30, 2020
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 2020 2019
Equity in central treasury $1,263,831 1,334,207 20,926 31,198 97,614 99,041 62,615 5,090,869 5,222,305
Receivables:
State of Alaska — — — — — — — — 13,049
Property taxes, net — — 19 26 — — — 26,357 23,847
Land sales contracts, due within one year 17,143 — — — — — — 17,143 16,214
Accounts and other receivables, net 86,026 — — — 2,862 — — 88,888 36,983
Prepaid items — — — — — — — — 1,311
Land sale contracts, due after one year 96,265 — — — — — — 96,265 113,957
Total $1,463,265 1,334,207 20,945 31,224 100,476 99,041 62,615 5,319,522 5,427,666
Liabilities:
Accounts payable — 34,001 463 128 — — — 126,605 185,231
Customer deposits 1,000 — — — — — — 2,450 2,450
Due to other funds — 7,831 — — — — 18 34,511 52,994
Unearned revenues — 4,602 — — — — — 16,516 27,600
Total liabilities 1,000 46,434 463 128 — — 18 180,082 268,275
Deferred inflows of resources:
Unavailable revenues 113,408 — 18 24 — — — 133,332 147,478
Total liabilities and deferred
inflows of resources 114,408 46,434 481 152 — — 18 313,414 415,753
Fund balances:
Nonspendable — — — — — — — — 1,311
Committed 1,348,857 1,287,773 20,464 31,072 100,476 99,041 62,597 5,006,108 5,010,602
Total fund balances 1,348,857 1,287,773 20,464 31,072 100,476 99,041 62,597 5,006,108 5,011,913
Total $1,463,265 1,334,207 20,945 31,224 100,476 99,041 62,615 5,319,522 5,427,666
Liabilities, Deferred Inflows of Resources,
and Fund Balances
June 30, 2020
(With summarized financial information at June 30, 2019)
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 $ 634,883 109,376 18,544 51,388 429,121 210,610 14,569 — —
Transient accommodations tax — — — — — — — — —
Intergovernmental:
State sources 7,943 — — — — — — — —
Federal sources 32,581 1,399 — — — — — — —
Charges for services — 8,734 — — — — — — —
Licenses, permits and fees — — — — — 27,600 — — —
Investment income 14,250 19,812 1,349 6,514 29,779 5,548 1,461 176 —
Rental — 14,400 — — — — — — —
Other 2,117 50 — — — — — — —
Total revenues 691,774 153,771 19,893 57,902 458,900 243,758 16,030 176 —
Expenditures:
Current:
General government — — — — — — — — —
Public safety 432,877 75,464 8,824 — — — — — —
Community and economic
development — — — — — — — — —
Service district maintenance — — — 46,430 486,550 244,182 8,654 — —
Capital outlay - general 43,788 27,854 — — — — — — —
Total expenditures 476,665 103,318 8,824 46,430 486,550 244,182 8,654 — —
Excess (deficiency) of revenues
over expenditures 215,109 50,453 11,069 11,472 (27,650) (424) 7,376 176 —
Other financing sources (uses):
Land sale proceeds — — — — — — — — —
Proceeds from sale of capital assets — — — — — — — — —
Transfers in — — — — — — — — 13,000
Transfers out (355,000) — — — — — — — —
Net other financing sources (uses) (355,000) — — — — — — — 13,000
Change in fund balances (139,891) 50,453 11,069 11,472 (27,650) (424) 7,376 176 13,000
Fund balances, at beginning of year 227,622 641,068 42,523 203,340 831,465 135,984 42,076 6,169 —
Fund balances, at end of year $87,731 691,521 53,592 214,812 803,815 135,560 49,452 6,345 13,000
(continued)
Fire and Road Service Areas
Road
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Year ended June 30, 2020
(With summarized financial information for the year ended June 30, 2019)
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 2020 2019
Revenues:
Property taxes and assessments $ — — 5,578 1,873 — — 1,571 1,477,513 1,466,854
Transient accommodations tax — — — — 62,829 — — 62,829 78,971
Intergovernmental:
State sources — 5,087 — — — 54,220 — 67,250 72,992
Federal sources — 12,667 — — — — — 46,647 7,294
Charges for services 85,775 816,891 — — — — — 911,400 845,654
Licenses, permits and fees 6,000 — — — — — — 33,600 33,600
Investment income 37,763 36,787 724 879 3,019 1,643 1,732 161,436 219,957
Rental — — — — — — — 14,400 12,000
Other 1,307 595 — — — — — 4,069 16,234
Total revenues 130,845 872,027 6,302 2,752 65,848 55,863 3,303 2,779,144 2,753,556
Expenditures:
Current:
General government 31,507 591,592 4,871 1,744 — — — 629,714 812,927
Public safety — — — — — — — 517,165 599,026
Community and economic
development — — — — 87,227 109 — 87,336 89,130
Service district maintenance — — — — — — 550 786,366 569,610
Capital outlay - general — — 14,629 — — — — 86,271 11,940
Total expenditures 31,507 591,592 19,500 1,744 87,227 109 550 2,106,852 2,082,633
Excess (deficiency) of revenues
over expenditures 99,338 280,435 (13,198) 1,008 (21,379) 55,754 2,753 672,292 670,923
Other financing sources (uses):
Land sales proceeds 28,903 — — — — — — 28,903 76,676
Proceeds from sale of capital assets — — — — — — — — 5,000
Transfers in — 5,000 — — — — — 18,000 291,370
Transfers out (100,000) (225,000) — — (45,000) — — (725,000) (330,000)
Net other financing sources (uses) (71,097) (220,000) — — (45,000) — — (678,097) 43,046
Change in fund balances 28,241 60,435 (13,198) 1,008 (66,379) 55,754 2,753 (5,805) 713,969
Fund balances, at beginning of year 1,320,616 1,227,338 33,662 30,064 166,855 43,287 59,844 5,011,913 4,297,944
Fund balances, at end of year $1,348,857 1,287,773 20,464 31,072 100,476 99,041 62,597 5,006,108 5,011,913
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Street Lighting Districts
Combining Statement of Revenues, Expenditures,
Year ended June 30, 2020
and Changes in Fund Balances, (continued)
(With summarized financial information for the year ended June 30, 2019)
99
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue
See Special Revenue section of this report.
Capital Projects
See Capital Projects section of this report.
NONMAJOR SPECIAL REVENUE FUNDS
The Fire Protection Area No. 1 Fund accounts for the activities related to fire suppression and fire prevention
services to the citizens of the service area.
The Womens Bay Fire Department Fund accounts for the activities related to fire suppression and fire prevention
services to the citizens of the service area.
The Kodiak Airport Fire District Fund accounts for the activities related to fire suppression and fire prevention
services to the citizens of the service area.
The Monashka Bay Road Service Area Fund accounts for the activities related to road services within the service
area.
The Service Area No. 1 Fund accounts for the activities related to maintenance service to roads within the district,
including snow removal, ditching and grading.
The Womens Bay Road Service Area Fund accounts for the activities related to maintenance service to roads
within the service area, including snow and ice removal, ditching and culvert work.
The Bay View Road Service Area Fund accounts for the activities related to road services within the service area.
The Service Area No. 2 Fund accounts for the activities related to water and sewer services in the service area.
This fund is in the design stage at present.
The Local Emergency Planning Committee (L.E.P.C.) Fund accounts for State of Alaska grants provided for
regional emergency preparation, response, and mitigation planning.
The Land Sales Fund accounts for the disposal of Borough-owned lands. The proceeds of land disposals are
generally used for the management of Borough lands.
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, 2020
(With financial information for the year ended June 30, 2019)
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 630,308 634,883 4,575 630,301
Intergovernmental:
State sources - PERS on behalf payment 2,800 7,943 5,143 6,618
Federal sources — 32,581 32,581 7,294
Investment income — 14,250 14,250 17,842
Other 1,500 2,117 617 11,514
Total revenues 634,608 691,774 57,166 673,569
Expenditures:
Public safety:
Personnel 122,920 124,737 (1,817) 116,752
Volunteers 51,200 33,158 18,042 45,735
Fringe benefits 84,500 87,604 (3,104) 82,532
Professional services 2,000 4,720 (2,720) 9,215
Support goods and services 187,462 182,658 4,804 245,594
Total public safety 448,082 432,877 15,205 499,828
Capital outlay - general 184,088 43,788 140,300 11,940
Total expenditures 632,170 476,665 155,505 511,768
Excess of revenues
over expenditures 2,438 215,109 212,671 161,801
Other financing sources (uses):
Proceeds from sale of capital assets — — — 5,000
Transfers out - Other Capital Projects
Capital Project Fund (355,000) (355,000) — (125,000)
Net other financing sources (uses) (355,000) (355,000) — (120,000)
Change in fund balance $ (352,562) (139,891) 212,671 41,801
Fund balance, at beginning of year 227,622 185,821
Fund balance, at end of year $ 87,731 227,622
2020
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, 2020
(With financial information for the year ended June 30, 2019)
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 103,000 109,376 6,376 109,332
Federal sources — 1,399 1,399 —
Charges for services 16,700 8,734 (7,966) 16,701
Investment income 1,000 19,812 18,812 26,659
Rental 10,000 14,400 4,400 12,000
Other — 50 50 200
Total revenues 130,700 153,771 23,071 164,892
Expenditures:
Public safety:
Personnel services 2,000 514 1,486 984
Fringe benefits 1,068 421 647 547
Professional services 5,000 761 4,239 10,818
Legal services 2,000 — 2,000 —
Support goods and services 120,632 73,768 46,864 53,984
Total public safety 130,700 75,464 55,236 66,333
Capital outlay - general 75,000 27,854 47,146 —
Total expenditures 205,700 103,318 102,382 66,333
Excess (deficiency) of revenues
over expenditures (75,000) 50,453 125,453 98,559
Other financing (uses):
Transfers out - Other Capital Projects
Capital Project Fund — — — (25,000)
.
Change in fund balance $(75,000) 50,453 125,453 73,559
Fund balance, at beginning of year 641,068 567,509
Fund balance, at end of year $ 691,521 641,068
2020
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, 2020
(With financial information for the year ended June 30, 2019)
2020
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 17,200 18,544 1,344 18,113
Investment income — 1,349 1,349 1,552
Total revenues 17,200 19,893 2,693 19,665
Expenditures:
Public safety:
Professional services 17,200 8,734 8,466 16,701
Support goods and services — 90 (90) 20
Total expenditures 17,200 8,824 8,376 16,721
Excess of revenues over
expenditures $— 11,069 11,069 2,944
Fund balance, at beginning of year 42,523 39,579
Fund balance, at end of year $ 53,592 42,523
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, 2020
(With financial information for the year ended June 30, 2019)
2020
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 49,805 51,388 1,583 51,672
Investment income — 6,514 6,514 8,947
Total revenues 49,805 57,902 8,097 60,619
Expenditures:
Service district maintenance:
Personnel services 600 — 600 —
Fringe benefits 205 — 205 —
Support goods and services 2,500 121 2,379 64
Snow removal/sanding 11,000 20,540 (9,540) 4,908
Road grading/ditching 23,000 1,847 21,153 3,304
Repairs and maintenance 12,500 23,922 (11,422) 21,893
Total expenditures 49,805 46,430 3,375 30,169
Excess (deficiency) of revenues over
expenditures $— 11,472 11,472 30,450
Fund balance, at beginning of year 203,340 172,890
Fund balance, at end of year $ 214,812 203,340
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, 2020
2020
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 420,500 429,121 8,621 423,103
Investment income — 29,779 29,779 39,136
Total revenues 420,500 458,900 38,400 462,239
Expenditures:
Service district maintenance:
Personnel services 8,800 5,442 3,358 5,702
Fringe benefits 2,350 1,676 674 1,105
Support goods and services 170,600 8,981 161,619 11,417
Snow removal/sanding 200,000 152,112 47,888 62,090
Road grading/ditching 60,000 40,434 19,566 49,282
Repairs and maintenance 135,750 277,905 (142,155) 194,459
Total expenditures 577,500 486,550 90,950 324,055
Excess (deficiency) of revenues over
expenditures $(157,000) (27,650) 129,350 138,184
Fund balance, at beginning of year 831,465 693,281
Fund balance, at end of year $ 803,815 831,465
(With financial information for the year ended June 30, 2019)
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, 2020
(With financial information for the year ended June 30, 2019)
2020
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $205,000 210,610 5,610 210,506
Licenses, permits and fees 27,600 27,600 — 27,600
Investment income — 5,548 5,548 7,806
Total revenues 232,600 243,758 11,158 245,912
Expenditures:
Service district maintenance:
Personnel services 1,000 20 980 —
Fringe benefits 850 13 837 —
Support goods and services 35,750 713 35,037 595
Snow removal/sanding 60,000 69,985 (9,985) 40,938
Road grading/ditching 45,000 33,851 11,149 46,345
Repairs and maintenance 90,000 139,600 (49,600) 115,979
Total expenditures 232,600 244,182 (11,582) 203,857
Excess (deficiency) of revenues
over expenditures — (424) (424) 42,055
Other financing (uses):
Transfers out -
Other Capital Projects Capital Project Fund — — — (20,000)
Change in fund balance $ — (424) (424) 22,055
Fund balance, at beginning of year 135,984 113,929
Fund balance, at end of year $ 135,560 135,984
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, 2020
(With financial information for the year ended June 30, 2019)
2020
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $13,879 14,569 690 14,738
Investment income 100 1,461 1,361 1,704
Total revenues 13,979 16,030 2,051 16,442
Expenditures:
Service district maintenance:
Personnel services 500 — 500 —
Fringe benefits 174 — 174 —
Professional services 5,305 550 4,755 —
Support goods and services — 89 (89) 23
Snow removal/sanding 5,400 7,873 (2,473) 2,343
Road grading/ditching 1,500 142 1,358 1,789
Repairs and maintenance 1,100 — 1,100 3,012
Total expenditures 13,979 8,654 5,325 7,167
Excess of revenues over
expenditures $— 7,376 7,376 9,275
Fund balance, at beginning of year 42,076 32,801
Fund balance, at end of year $ 49,452 42,076
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, 2020
(With financial information for the year ended June 30, 2019)
2020
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Revenues:
Investment income $— 176 176 246
Expenditures:
Service district maintenance:
Support goods and services — — — —
Excess of revenues over
expenditures $— 176 176 246
Fund balance, at beginning of year 6,169 5,923
Fund balance, at end of year $ 6,345 6,169
107
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2020
(With financial information for the year ended June 30, 2019)
2020
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Revenues:
Intergovernmental:
State sources – grants $— — — 16,144
Expenditures:
Public safety:
Personnel services — — — 4,661
Fringe benefits — — — 3,689
Support goods and services 13,000 — 13,000 7,794
Total expenditures 13,000 — 13,000 16,144
Excess (deficiency) of revenues
over expenditures (13,000) — 13,000 —
Other financing sources:
Transfer in - General Fund 13,000 13,000 — —
Change in fund balance $— 13,000 13,000 —
Fund balance, at beginning of year — —
Fund balance, at end of year $ 13,000 —
L.E.P.C.
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, 2020
(With financial information for the year ended June 30, 2019)
2020
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Revenues:
Intergovernmental:
State sources - PERS on behalf payment $1,256 — (1,256) 3,312
Charges for services 8,000 85,775 77,775 11,049
Licenses, permits and fees 6,000 6,000 — 6,000
Investment income 10,000 37,763 27,763 52,161
Other 80 1,307 1,227 305
Total revenues 25,336 130,845 105,509 72,827
Expenditures:
General government:
Personnel services 31,399 1,229 30,170 70,151
Fringe benefits 17,576 614 16,962 45,525
Professional services 22,000 2,905 19,095 22,503
Support goods and services 66,968 26,759 40,209 57,167
Total expenditures 137,943 31,507 106,436 195,346
Excess (deficiency) of revenues
over expenditures (112,607) 99,338 211,945 (122,519)
Other financing sources (uses):
Land sale proceeds 35,650 28,903 (6,747) 76,676
Transfer out - Other Capital Projects
Capital Projects Fund (100,000) (100,000) — —
Net other financing sources (uses)(64,350) (71,097) (6,747) 76,676
Change in fund balance $(176,957) 28,241 205,198 (45,843)
Fund balance, at beginning of year 1,320,616 1,366,459
Fund balance, at end of year $ 1,348,857 1,320,616
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, 2020
(With financial information for the year ended June 30, 2019)
2020
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Revenues:
Intergovernmental:
State sources - PERS on behalf payment $2,200 5,087 2,887 4,165
Federal sources — 12,667 12,667 —
Charges for services 797,037 816,891 19,854 817,904
Investment income 3,300 36,787 33,487 51,687
Other — 595 595 4,215
Total revenues 802,537 872,027 69,490 877,971
Expenditures:
General government:
School buildings 257,334 171,500 85,834 141,133
Borough building 636,581 409,779 226,802 433,048
Mental health center 31,857 4,546 27,311 29,216
Various borough buildings 15,000 5,767 9,233 7,908
Total expenditures 940,772 591,592 349,180 611,305
Excess (deficiency) of revenues
over expenditures (138,235) 280,435 418,670 266,666
Other financing sources (uses):
Transfers in:
Facilities Special Revenue Fund 5,000 5,000 — 5,000
Renewal and Replacement Projects
Capital Project Fund — — — 286,370
Transfers out:
Other Capital Projects Capital Project Fund (175,000) (175,000) — (115,000)
Renewal and Replacement Projects
Capital Project Fund (50,000) (50,000) — —
Net other financing sources (uses)(220,000) (220,000) — 176,370
—
Change in fund balance $ (358,235) 60,435 418,670 443,036
Fund balance, at beginning of year 1,227,338 784,302
Fund balance, at end of year $ 1,287,773 1,227,338
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, 2020
2020
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 5,356 5,578 222 5,576
Investment income — 724 724 1,407
Total revenues 5,356 6,302 946 6,983
Expenditures:
General government:
Support goods and services 5,356 4,871 485 4,545
Capital outlay - equipment 15,000 14,629 371 —
Total expenditures 20,356 19,500 856 4,545
Excess (deficiency) of revenues
over expenditures $(15,000) (13,198) 1,802 2,438
Fund balance, at beginning of year 33,662 31,224
Fund balance, at end of year $ 20,464 33,662
(With financial information for the year ended June 30, 2019)
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, 2020
(With financial information for the year ended June 30, 2019)
2020
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 2,000 1,873 (127) 1,942
Investment income — 879 879 1,224
Total revenues 2,000 2,752 752 3,166
Expenditures:
General government:
Support goods and services 2,000 1,744 256 1,731
Excess of revenues over
expenditures $— 1,008 1,008 1,435
Fund balance, at beginning of year 30,064 28,629
Fund balance, at end of year $ 31,072 30,064
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, 2020
(With financial information for the year ended June 30, 2019)
2020
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Revenues:
Transient accommodations tax $ 105,000 62,829 (42,171) 78,971
Investment income 600 3,019 2,419 6,583
Total revenues 105,600 65,848 (39,752) 85,554
Expenditures:
Community and economic development:
Contributions 87,000 87,000 — 88,890
Support goods and services — 227 (227) 240
Total expenditures 87,000 87,227 (227) 89,130
Excess (deficiency) of revenues
over expenditures 18,600 (21,379) (39,979) (3,576)
Other financing (uses):
Transfers out - Kodiak Fisheries Research
Center Enterprise Fund (45,000) (45,000) — (45,000)
Change in fund balance $(26,400) (66,379) (39,979) (48,576)
Fund balance, at beginning of year 166,855 215,431
Fund balance, at end of year $ 100,476 166,855
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, 2020
(With financial information for the year ended June 30, 2019)
2020
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Revenues:
Intergovernmental - State sources -
Commercial passenger vessel tax $ 40,000 54,220 14,220 42,753
Investment income — 1,643 1,643 534
Total revenues 40,000 55,863 15,863 43,287
Expenditures:
Community and economic development -
Support goods and services 40,000 109 39,891 —
Excess of revenues
over expenditures $— 55,754 55,754 43,287
Fund balance, at beginning of year 43,287 —
Fund balance, at end of year $ 99,041 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, 2020
(With financial information for the year ended June 30, 2019)
2020
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Revenues:
Property taxes and assessments $ 1,571 1,571 — 1,571
Investment income 250 1,732 1,482 2,469
Total revenues 1,821 3,303 1,482 4,040
Expenditures:
Service district maintenance:
Personnel services 160 276 (116) 198
Fringe benefits 106 199 (93) 146
Professional services 1,447 — 1,447 4,015
Support goods and services 108 75 33 3
Total expenditures 1,821 550 1,271 4,362
Excess (deficiency) of revenues
over expenditures $— 2,753 2,753 (322)
Fund balance, at beginning of year 59,844 60,166
Fund balance, at end of year $ 62,597 59,844
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, 2020
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 2020 2019
Equity in central treasury $448,303 36,388 436,409 331,853 3,118,196 — 2,591,432 6,962,581 6,280,722
Receivables:
State of Alaska — — 33,124 — — — — 33,124 1,265
Federal government — — — — — — 104,391 104,391 251,409
Property taxes — — — — 23,789 — — 23,789 18,624
Accounts and other receivables, net 15,644 — — — 413,752 — — 429,396 32,241
Total $ 463,947 36,388 469,533 331,853 3,555,737 — 2,695,823 7,553,281 6,584,261
Liabilities and Fund Balances
Liabilities:
Accounts payable 15,643 — 27,001 — 6,085 — 80,319 129,048 83,850
Due to other funds 365 — 211 — 494 986,383 1,104 988,557 1,423,729
Unearned revenues — — — — — — 9,648 9,648 9,648
Total liabilities 16,008 — 27,212 — 6,579 986,383 91,071 1,127,253 1,517,227
Deferred inflows of resources:
Unavailable revenues — — — — 18,969 — — 18,969 14,847
Total liabilities and deferred
inflows of resources 16,008 — 27,212 — 25,548 986,383 91,071 1,146,222 1,532,074
Fund balances (deficit):
Assigned 447,939 36,388 442,321 331,853 3,530,189 — 2,604,752 7,393,442 5,899,049
Unassigned — — — — — (986,383) — (986,383) (846,862)
Total fund balances (deficit) 447,939 36,388 442,321 331,853 3,530,189 (986,383) 2,604,752 6,407,059 5,052,187
Total $ 463,947 36,388 469,533 331,853 3,555,737 — 2,695,823 7,553,281 6,584,261
Totals
(With summarized financial information at June 30, 2019)
116
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficit)
Year ended June 30, 2020
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 2020 2019
Revenues:
Property taxes and assessments $— — — — 1,345,912 — — 1,345,912 1,014,230
Intergovernmental:
State sources — — 38,941 — — — — 38,941 10,186
Federal sources — — — — — — 322,050 322,050 336,241
Investment income — 9,007 — — — — — 9,007 138,292
Other 77,079 — — — 413,751 — — 490,830 65,477
Total revenues 77,079 9,007 38,941 — 1,759,663 — 322,050 2,206,740 1,564,426
Expenditures:
General government 113,506 — — — — — — 113,506 575
Capital outlay:
Schools — — — 5,835 409,897 139,521 — 555,253 2,092,006
General — — 42,094 — 51,513 — 869,588 963,195 979,463
Total expenditures 113,506 — 42,094 5,835 461,410 139,521 869,588 1,631,954 3,072,044
Excess (deficiency) of revenues
over expenditures (36,427) 9,007 (3,153) (5,835) 1,298,253 (139,521) (547,538) 574,786 (1,507,618)
Other financing sources (uses):
Proceeds from sales of bonds — — — — — — — — 550,000
Transfers in 100,000 — — — 50,086 — 630,000 780,086 1,014,183
Transfers out — — — — — — — — (416,370)
Net other financing sources (uses)100,000 — — — 50,086 — 630,000 780,086 1,147,813
Change in fund balances 63,573 9,007 (3,153) (5,835) 1,348,339 (139,521) 82,462 1,354,872 (359,805)
Fund balances (deficit), at beginning of year 384,366 27,381 445,474 337,688 2,181,850 (846,862) 2,522,290 5,052,187 5,411,992
Fund balances (deficit), at end of year $447,939 36,388 442,321 331,853 3,530,189 (986,383) 2,604,752 6,407,059 5,052,187
Totals
(With summarized financial information for the year ended June 30, 2019)
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.
The Research Court Apartments Fund accounts for rents on the Borough-owened
apartments on Near Island located on Research Court.
Research
911 Court Totals
Service Apartments 2020 2019
Current assets:
Equity in central treasury $73,571 16,115 89,686 76,102
Customer receivables 35,567 — 35,567 35,585
Total current assets 109,138 16,115 125,253 111,687
Capital assets:
Non-depreciable — 1,021,998 1,021,998 —
Depreciable, net — (715,399) (715,399) —
Total capital assets — 306,599 306,599 —
Total asset $109,138 322,714 431,852 111,687
Current liabilities:
Accounts payable $109,138 6,265 115,403 111,668
Due to other funds — 767 767 —
Total current liabilities 109,138 7,032 116,170 111,668
Net position:
Net investment in capital assets — 306,599 306,599 —
Unrestricted — 9,083 9,083 19
Total net position — 315,682 315,682 19
Total liabilities and net position $ 109,138 322,714 431,852 111,687
Outflows of Resources
Liabilities, Deferred Inflows
of Resources and Net Position
KODIAK ISLAND BOROUGH
Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2020
(With summarized financial information for June 30, 2019)
Assets and Deferred
118
KODIAK ISLAND BOROUGH
Year ended June 30, 2020
(With summarized financial information for the year ended June 30, 2019)
Research
911 Court Totals
Service Apartments 2020 2019
Operating revenues:
Charges for services:
Lease income $— 49,560 49,560 —
Other 295,447 — 295,447 300,079
Total operating revenues 295,447 49,560 345,007 300,079
Operating expenses:
Personnel services 1,500 10,418 11,918 1,500
Maintenance and repairs — 249 249 —
Depreciation — 34,067 34,067 —
General and administration 307 25,289 25,596 295
Miscellaneous — 4,804 4,804 —
Telephone services 293,659 — 293,659 298,265
Total operating expenses 295,466 74,827 370,293 300,060
Operating income (loss) (19) (25,267) (25,286) 19
Nonoperating revenues:
Interest revenue — 283 283 —
Income (loss) before transfers (19) (24,984) (25,003) 19
Transfers in — 340,666 340,666 —
Change in net position (19) 315,682 315,663 19
Net position, at beginning of year 19 — 19 —
Net position, at end of year $— 315,682 315,682 19
Nonmajor Enterprise Funds
Combining Statement of Revenues, Expenses, and Changes in Net Position
119
Research
911 Court Totals
Service Apartments 2020 2019
Cash flows from operating activities:
Cash received from customers $295,465 49,560 345,025 301,528
Payments to suppliers (296,496) (24,077) (320,573) (351,031)
Payments to employees (1,500) (10,418) (11,918) (1,500)
Net cash provided (used) by
operating activities (2,531) 15,065 12,534 (51,003)
Cash flows from noncapital financing activities:
Net change in interfund receivable/payable — 767 767 —
Cash flows from investing activities:
Interest and dividends received — 283 283 —
Net change in cash and
cash equivalents (2,531) 16,115 13,584 (51,003)
Cash and equivalents, at beginning of year 76,102 — 76,102 127,105
Cash and equivalents, at end of year $ 73,571 16,115 89,686 76,102
Reconciliation of operating income (loss) to net
cash provided by operating activities:
Operating income (loss)$(19) (25,267) (25,286) 19
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation — 34,067 34,067 —
Changes in assets and liabilities that
provided (used) cash:
(Increase) decrease in assets:
Customer receivables 18 — 18 1,449
Increase (decrease) in liabilities:
Accounts payable (2,530) 6,265 3,735 (52,471)
Net cash provided (used) by
operating activities $(2,531) 15,065 12,534 (51,003)
Non-cash capital and related financing activities:
Transfer of capital assets between funds $— 340,666 340,666 —
KODIAK ISLAND BOROUGH
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
Year ended June 30, 2020
(With summarized financial information for the year ended June 30, 2019)
120
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, 2020
(With financial information for the year ended June 30, 2019)
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Operating revenues:
Solid waste disposal $4,480,760 4,151,619 (329,141) 4,465,387
Other 4,000 1,797 (2,203) 4,912
Total operating revenues 4,484,760 4,153,416 (331,344) 4,470,299
Operating expenses:
Personnel services 1,372,743 932,704 440,039 1,078,751
Contracted services 289,039 298,685 (9,646) 389,331
Maintenance, repairs and equipment 685,940 195,062 490,878 164,648
Depreciation 278,188 280,603 (2,415) 288,234
General and administration 939,250 343,440 595,810 467,282
Recycling services 260,000 283,176 (23,176) 270,588
Closure and postclosure costs 730,000 149,000 581,000 295,000
Contributions 40,000 37,904 2,096 37,040
Total operating expenses 4,595,160 2,520,574 2,074,586 2,990,874
Operating income (loss)(110,400) 1,632,842 1,743,242 1,479,425
Other income (expense):
Intergovernmental:
State of Alaska on-behalf payment 36,200 (17,840) (54,040) 21,847
Federal sources — 628 628 —
Investment income 50,000 240,268 190,268 306,914
Interest expense (303,513) (275,095) 28,418 (296,828)
Total other income (expense)(217,313) (52,039) 165,274 31,933
Change in net position $ (327,713) 1,580,803 1,908,516 1,511,358
Net position, at beginning of year 17,079,518 15,568,160
Net position, at end of year $ 18,660,321 17,079,518
Enterprise Funds
2020
121
KODIAK ISLAND BOROUGH
Hospital Facilities
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2020
(With financial information for the year ended June 30, 2019)
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Operating revenues:
Lease income $1,384,272 1,384,272 — 1,384,272
Operating expenses:
Personnel services 40,319 97,013 (56,694) 46,175
Depreciation 1,062,092 1,062,320 (228) 1,062,307
General and administration 50,298 143,184 (92,886) 91,314
Miscellaneous — — — 2,175
Total operating expenses 1,152,709 1,302,517 (149,808) 1,201,971
Operating income (loss)231,563 81,755 (149,808) 182,301
Other income (expense):
Investment income 30,000 50,053 20,053 101,495
Income before transfer 261,563 131,808 (129,755) 283,796
Transfers out (450,000) — 450,000 —
Change in net position $(188,437) 131,808 320,245 283,796
Net position, at beginning of year 16,252,451 15,968,655
Net position, at end of year $ 16,384,259 16,252,451
Enterprise Funds
2020
122
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Operating revenues:
Lease income $1,043,628 1,043,628 — 1,043,628
Operating expenses:
Personnel services — 328 (328) —
Contracted services — — — 3,150
Depreciation 518,933 518,933 — 518,933
General and administration 151,424 23,140 128,284 18,927
Total operating expenses 670,357 542,401 127,956 541,010
Operating income 373,271 501,227 127,956 502,618
Other income (expense):
Investment income 32,000 95,151 63,151 124,262
Interest expense (405,271) (403,617) 1,654 (418,998)
Total other income (expense)(373,271) (308,466) 64,805 (294,736)
Change in net position $— 192,761 192,761 207,882
Net position, at beginning of year 6,591,765 6,383,883
Net position, at end of year $ 6,784,526 6,591,765
KODIAK ISLAND BOROUGH
2020
Year ended June 30, 2020
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, 2019)
123
KODIAK ISLAND BOROUGH
Kodiak Fisheries Research Center
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2020
(With financial information for the year ended June 30, 2019)
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Operating revenues:
Lease income $ 800,117 787,296 (12,821) 820,167
Other — 247,710 247,710 19,745
Total operating revenues 800,117 1,035,006 234,889 839,912
Operating expenses:
Personnel services 279,150 237,769 41,381 269,255
Maintenance and repairs 60,000 3,685 56,315 43,552
Depreciation 698,485 662,409 36,076 696,476
General and administration:
Support goods and services 24,553 13,178 11,375 15,286
Cleaning and janitorial 79,540 53,844 25,696 61,910
Heating 90,000 62,592 27,408 76,772
Electrical 146,000 128,431 17,569 152,130
Plumbing 88,500 46,049 42,451 46,548
Air conditioning 1,500 3,291 (1,791) 2,750
Elevators 2,500 900 1,600 2,363
Miscellaneous 614,672 122,794 491,878 204,601
Total operating expenses 2,084,900 1,334,942 749,958 1,571,643
Operating income (loss) (1,284,783) (299,936) (515,069) (731,731)
Other income (expense):
Intergovernmental:
State of Alaska on-behalf payment 7,342 (4,535) (11,877) 5,513
Federal sources — 1,257 1,257 —
Investment income 10,000 58,130 48,130 89,585
Interest revenue 46,951 46,951 — 51,155
Total other income (expense)64,293 101,803 37,510 146,253
Income (loss) before transfers (1,220,490) (198,133) 1,022,357 (585,478)
Transfers in 45,000 45,000 — 45,000
Transfers out — (340,666) (340,666) —
Change in net position $(1,175,490) (493,799) 681,691 (540,478)
Net position, at beginning of year 11,202,627 11,743,105
Net position, at end of year $ 10,708,828 11,202,627
Enterprise Funds
2020
124
KODIAK ISLAND BOROUGH
Enterprise Funds
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2020
(With financial information for the year ended June 30, 2019)
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Operating revenues:
Other $250,000 295,447 45,447 300,079
Operating expenses:
Personnel services 1,500 1,500 — 1,500
General and administration 150 307 (157) 295
Telephone services 248,350 293,659 (45,309) 298,265
Total operating expenses 250,000 295,466 (45,466) 300,060
Operating income $— (19) (19) 19
Net position, at beginning of year 19 —
Net position, at end of year $ — 19
2020
911 Service Fund
125
KODIAK ISLAND BOROUGH
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2020
(With financial information for the year ended June 30, 2019)
Variance with
Final Budget
Final Positive 2019
Budget Actual (Negative)Actual
Operating revenues:
Lease income $ — 49,560 49,560 —
Operating expenses:
Personnel services 12,008 10,418 1,590 —
Maintenance and repairs 350,000 249 349,751 —
Depreciation — 34,067 (34,067) —
General and administration:
Support goods and services — 394 (394) —
Contracted services — 4,037 (4,037) —
Heating 11,500 5,034 6,466 —
Electrical 5,800 4,734 1,066 —
Plumbing 12,000 11,090 910 —
Miscellaneous 4,600 4,804 (204) —
Total operating expenses 395,908 74,827 321,081 —
Operating income (loss) (395,908) (25,267) 370,641 —
Other income (expense):
Interest revenue — 283 283 —
Income (loss) before transfers (395,908) (24,984) 370,924 —
Transfers in — 340,666 340,666 —
Change in net position $(395,908) 315,682 711,590 —
Net position, at beginning of year — —
Net position, at end of year $ 315,682 —
Enterprise Funds
2020
Research Court Apartments
126
SUPPLEMENTARY SCHEDULES
Fiscal Year Principal Interest Total
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
61,180,000$ 20,018,475$ 81,198,475$
SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS TO MATURITY
KODIAK ISLAND BOROUGH
June 30, 2020
Annual principal and interest requirements on General Obligation Bonds.
127
Fiscal year Interest rate
Interest due
September 01
Principal due
April 01
Interest due
March 01 Total
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
841,453$ 5,185,000$ 841,453$ 6,867,906$
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, 2020
2011 Series One
128
Fiscal Year
Interest
Rate
Interest Due
September 1
Principal Due
September 1
Interest due
March 1 Total
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
216,425$ 2,870,000$ 147,400$ 3,233,825$
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, 2020
2012 Series A
129
Fiscal Year
Interest
Rate
Interest Due
September 1
Principal Due
September 1
Interest due
March 1 Total
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
263,975$ 3,500,000$ 179,800$ 3,943,775$
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
RETIREMENT SCHEDULE
June 30, 2020
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
130
Fiscal Year
Interest
Rate
Interest Due
August 01
Principal Due
February 01
Interest due
February 01 Total
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
2,927,460$ 16,110,000$ 2,927,460$ 21,964,920$
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
RETIREMENT SCHEDULE
June 30, 2020
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
131
Fiscal Year
Interest
Rate
Interest Due
September 01
Principal Due
March 01
Interest Due
March 01 Total
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
3,561,808$ 17,705,000$ 3,562,058$ 24,828,866$
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, 2020
2014 Series One
132
Fiscal Year
Interest
Rate
Interest Due
October 01
Principal Due
October 01
Interest Due
April 01 Total
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
1,305,191$ 5,395,000$ 1,169,460$ 7,869,651$
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
RETIREMENT SCHEDULE
June 30, 2020
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
133
Fiscal Year
Interest
Rate
Interest Due
October 01
Principal Due
October 01
Interest Due
April 01 Total
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
106,750$ 1,170,000$ 77,500$ 1,354,250$
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, 2020
2015 Series Three
134
Fiscal Year
Interest
Rate
Interest Due
August 01
Principal Due
August 01
Interest Due
February 01 Total
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
252,758$ 1,640,000$ 222,549$ 2,115,307$
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, 2020
135
Fiscal Year
Interest
Rate
Interest Due
August 01
Principal Due
August 01
Interest Due
February 01 Total
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
319,875$ 3,510,000$ 232,125$ 4,062,000$
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, 2020
136
Fiscal Year
Interest
Rate
Interest Due
December 01
Principal Due
December 01
Interest Due
June 01 Total
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
480,475$ 4,095,000$ 382,500$ 4,957,975$
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, 2020
137
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. 138-142
Revenue Capacity
These schedules contain information to help the reader assess the government’s
most significant local revenue source, the property tax. 143-146
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. 147-151
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. 152-158
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports
for the relevant year.
2011 2012 2013 2014 2015
Governmental activities:
Net investment in capital assets $ 81,789,375 $ 85,285,497 $ 72,773,598 $ 80,159,521 $ 82,616,865
Unrestricted 47,094,977 48,265,320 47,149,835 46,754,461 43,472,334
Total governmental activities net assets $128,884,352 $133,550,817 $119,923,433 $126,913,982 $126,089,199
Business-type activities:
Net investment in capital assets $ 35,170,143 $ 31,967,945 $ 21,628,143 $ 36,383,229 $ 43,884,340
Unrestricted 1,137,826 4,532,561 20,750,321 12,115,258 5,239,974
Total business-type activities net assets $36,307,969 $36,500,506 $42,378,464 $48,498,487 $49,124,314
Primary government:
Net investment in capital assets $ 116,959,518 $ 117,253,442 $ 94,401,741 $ 116,542,750 $ 126,501,205
Unrestricted 48,232,803 52,797,881 67,900,156 58,869,719 48,712,308
Total primary government net assets $165,192,321 $170,051,323 $162,301,897 $175,412,469 $175,213,513
2016 2017 2018 2019 2020
Governmental activities:
Net investment in capital assets $ 80,747,617 $ 80,857,151 $ 85,569,631 $ 89,375,692 $ 89,442,508
Unrestricted 47,678,271 48,293,582 46,105,327 50,237,644 53,408,078
Total governmental activities net assets $128,425,888 $129,150,733 $131,674,958 $139,613,336 $142,850,586
Business-type activities:
Net investment in capital assets $ 37,381,997 $ 40,098,010 $ 39,508,817 $ 39,405,949 $ 39,561,198
Unrestricted 12,436,280 9,584,434 10,154,986 11,720,431 13,292,418
Total business-type activities net assets $49,818,277 $49,682,444 $49,663,803 $51,126,380 $52,853,616
Primary government:
Net investment in capital assets $ 118,129,614 $ 120,955,161 $ 125,078,448 $ 128,781,641 $ 129,003,706
Unrestricted 60,114,551 57,878,016 56,260,313 61,958,075 66,700,496
Total primary government net assets $178,244,165 $178,833,177 $181,338,761 $190,739,716 $195,704,202
Source: Borough general ledger
Fiscal Year
Fiscal Year
KODIAK ISLAND BOROUGH
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
138
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Expenses
Governmental activities:
General government $ 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 $ 5,494,888
Public safety 664,349 622,396 644,197 751,637 663,145 798,079 1,028,240 1,256,992 936,083 696,486
Community and economic development 1,211,189 1,195,237 1,070,991 964,377 886,613 1,167,367 1,136,303 1,152,197 1,133,265 791,716
Emergency preparedness 11,705 21,423 278,480 12,487 31,628 30,849 35,861 43,038 14,307 4,479
Health and social welfare 392,011 391,996 290,800 326,700 406,093 389,000 233,999 207,500 182,900 157,500
Education, culture, and recreation 85,690 64,289 84,273 218,013 335,854 2,996,004 17,562 4,665 70,472 5,790,959
Parks and recreation 13,625 5,825 21,100 37,795 161,596 87,456 30,172 77,186 43,368 32,561
Service district maintenance 593,388 705,665 479,264 631,572 534,376 626,289 475,248 587,707 645,533 786,366
Primary and secondary education 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 10,522,515
Interest on long-term debt 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 2,346,340
Total governmental activities expenses 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 26,623,810
Business-type activities:
Municipal solid waste collection and disposal 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 2,795,669
Hospital facilities 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 1,302,517
Long Term Care Center - - - - - - 1,128,059 1,008,032 960,008 946,018
Kodiak Fisheries Research Center 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 1,369,009
911 services 53,041 2,615 87,596 39,817 33,961 30,417 28,409 255,617 300,060 336,226
Total business-type activities expenses 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 6,749,439
Total primary government expenses 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 33,373,249
Program Revenues
Governmental activities:
Charges for services:
General government $ 658,463 $ 673,050 $ 549,100 $ 577,350 $ 540,052 $ 682,664 $ 2,874,794 $ 873,043 $ 966,852 $ 1,006,601
Public safety 33,755 11,646 13,849 14,336 13,601 16,610 14,716 15,366 16,701 8,734
Service district maintenance 27,600 1 94,076 110,313 114,516 66,161 111,146 90,450 27,600 27,600
Operating grants and contributions 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 2,578,838
Capital grants 3,241,219 574,439 2,212,524 6,651,737 3,002,933 3,216,270 885,493 96,698 346,427 438,070
Total governmental activities program revenues 6,256,698 3,738,399 5,787,211 11,431,246 7,976,793 8,795,543 8,113,062 6,689,662 6,969,334 4,059,843
Business-type activities:
Charges for services:
Municipal solid waste collection and disposal 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 4,151,619
Hospital facilities 720,000 720,000 720,000 1,150,000 1,759,789 1,959,827 660,000 1,384,272 1,384,272 1,384,272
Long Term Care Center - - - - - - 1,119,929 1,093,475 1,043,628 1,043,628
Kodiak Fisheries Research Center 2,018,747 1,636,728 1,603,503 1,851,322 2,267,032 3,353,718 847,642 818,138 820,167 787,296
911 services 53,041 - - - - - - - - 49,560
Operating grants and contributions - 75,819 85,634 - 32,649 428,578 27,799 44,509 27,630 (20,490)
Capital grants - 97,534 5,984,095 5,538,038 213,753 11,326 - - - -
Total business-type activities program revenues 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 7,395,885
Total primary government program revenues $ 11,446,465 $ 8,570,237 $ 16,684,478 $ 22,236,573 $ 14,861,870 $ 17,408,428 $ 13,873,992 $ 13,843,399 $ 14,710,418 $ 11,455,728
Net (expense)/revenue:
Governmental activities $ (16,166,892) $ (16,737,602) $ (19,665,937) $ (15,134,890) $ (18,060,095) $ (19,570,123) $ (19,223,798) $ (18,700,624) $ (18,700,624) $ (22,563,967)
Business-type activities 69,552 (280,363) 5,601,568 5,263,010 1,132,802 203,791 (1,509,022) (189,925) (189,925) 646,446
Total primary government net expense $ (16,097,340) $ (17,017,965) $ (14,064,369) $ (9,871,880) $ (16,927,293) $ (19,366,332) $ (20,732,820) $ (18,890,549) $ (18,890,549) $ (21,917,521)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes:
Property taxes $ 11,945,103 $ 13,327,552 $ 12,910,512 $ 13,741,190 $ 13,741,190 $ 14,414,032 $ 15,714,593 $ 16,045,148 $ 16,660,329 $ 17,228,428
Severance taxes 1,649,275 1,970,265 1,774,700 1,843,819 1,843,819 3,985,978 1,414,557 1,929,409 1,285,669 1,286,750
Tobacco excise taxes - - - - - - - 310,482 425,444 389,725
Unrestricted grants and contributions 3,642,009 4,199,766 4,458,203 4,142,583 4,142,583 27,683 3,631,012 3,414,671 4,265,899 3,371,650
Land sales 2,383 4,540 - 864,584 864,584 1,586,555 325,793 27,955 19,002 12,140
Investment earnings 713,414 1,788,903 528,676 1,106,717 1,106,717 604,274 271,691 281,855 2,196,169 1,454,149
Other 739,113 327,540 383,877 506,546 506,546 403,958 23,306 305,983 117,278 470,560
Transfers (80,000) (80,000) (80,000) (80,000) (80,000) (50,228) (1,134,372) (45,000) (45,000) (45,000)
Transfers - Component Unit - - - - - - - - - 1,632,815
Extraordinary item - - - - - 675,246 - - - -
Total governmental activities $ 18,611,297 $ 21,538,566 $ 19,975,968 $ 22,125,439 $ 22,125,439 $ 21,647,498 $ 20,246,580 $ 22,270,503 $ 24,924,790 $ 25,801,217
Business-type activities:
Investment earnings 100,925 282,027 117,702 178,851 178,851 236,180 177,851 69,871 622,256 443,602
Other - 110,442 78,688 598,162 598,162 203,764 115,556 320,774 375,891 592,188
Transfers 80,000 80,000 80,000 80,000 80,000 50,228 1,134,372 45,000 45,000 45,000
Extraordinary item - - - - - - (54,590) - - -
Total business-type activities 180,925 472,469 276,390 857,013 857,013 490,172 1,373,189 435,645 1,043,147 1,080,790
Total primary government $ 18,792,222 $ 22,011,035 $ 20,252,358 $ 22,982,452 $ 22,982,452 $ 22,137,670 $ 21,619,769 $ 22,706,148 $ 25,967,937 $ 26,882,007
Change in Net Position
Governmental activities $ 2,444,405 $ 4,800,964 $ 310,031 $ 6,990,549 $ 4,065,344 $ 2,077,375 $ 1,022,782 $ 3,569,879 $ 7,938,378 $ 3,237,250
Business-type activities 250,477 192,106 5,877,958 6,120,023 1,989,815 693,963 (135,833) 245,720 1,462,577 1,727,236
Total primary government $2,694,882 $4,993,070 $6,187,989 $13,110,572 $6,055,159 $2,771,338 $886,949 $3,815,599 $9,400,955 $4,964,486
KODIAK ISLAND BOROUGH
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
139
2011 2012 2013 2014 2015
General Fund:
Nonspendable $6,801 $166,020 $6,324 $1,459 $14,566
Unassigned 1,952,757 3,126,037 3,340,662 3,502,489 3,181,342
Total General Fund $1,959,558 $3,292,057 $3,346,986 $3,503,948 $3,195,908
All other governmental funds
Nonspendable $21,704 $5,114,902 $4,636,976 $513,765 $287,564
Committed 57,633,409 37,288,510 37,902,356 42,355,129 42,606,097
Assigned - 11,464,575 29,981,503 28,875,499 7,610,272
Unassigned (1,179,132) (1,979,279) (51,337) (2,929,481) (2,516,222)
Total all other governmental funds $56,475,981 $51,888,708 $72,469,498 $68,814,912 $47,987,711
2016 2017 2018 2019 2020
General Fund:
Nonspendable $26,272 $32,349 $37,885 $67,562 $ 57,926
Unassigned 3,259,509 2,284,775 3,151,059 5,292,862 6,036,623
Total General Fund $3,285,781 $2,317,124 $3,188,944 $5,360,424 6,094,549
All other governmental funds
Nonspendable $181,191 $419,212 $4 $1,311 $—
Committed 43,081,680 4,502,105 43,846,363 45,862,404 46,186,064
Assigned 11,312,217 3,073,997 5,411,992 5,899,049 7,452,836
Unassigned (1,871,193) (122,678) (126,614) (877,704) (986,383)
Total all other governmental funds $52,703,895 $7,872,636 $49,131,745 $50,885,060 $52,652,517
KODIAK ISLAND BOROUGH
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
140
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Revenues:
Property taxes and assessments $ 11,909,806 13,052,598 12,936,796 13,656,771 14,091,503 14,310,687 15,700,272 16,002,138 16,794,958 16,978,718
Transient accommodations tax 96,384 87,400 96,640 75,142 104,074 95,466 108,050 113,486 78,971 62,829
Intergovernmental:
State sources 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 4,378,515
Federal sources 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 2,387,270
Severance taxes 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 1,223,921
Tobacco excise taxes — — — — — — — 310,482 425,444 389,725
Licenses, permits, fees, and other local revenues 719,818 684,697 657,025 701,999 688,719 774,225 3,014,816 992,759 1,023,153 1,057,335
Other revenues 720,659 44,304 52,516 50,556 17,747 45,422 9,146 290,343 95,463 533,239
Investment earnings 706,677 1,857,413 536,903 1,115,466 583,677 648,987 271,691 281,855 2,196,169 1,454,149
Total revenues 24,981,508 24,950,145 25,642,969 32,315,583 29,615,703 29,327,211 29,173,357 28,849,572 32,097,071 28,465,701
Expenditures:
General government 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 5,197,783
Public safety 537,623 447,479 469,280 576,720 524,169 572,839 699,118 2,001,538 714,826 635,865
Community and economic development 1,211,189 1,195,237 1,070,991 964,377 1,153,985 1,069,639 1,096,928 1,177,198 1,183,798 885,179
Emergency preparedness 11,705 18,923 18,342 9,987 29,128 30,849 35,861 43,038 14,307 4,479
Health and social welfare 392,011 391,996 290,800 326,700 406,093 389,000 233,999 207,500 182,900 157,500
Education, culture, and recreation 85,690 64,289 84,273 95,625 24,856 23,949 17,562 4,665 20,472 20,447
Parks and recreation 13,625 5,825 21,100 37,795 161,596 87,456 30,172 77,186 57,096 32,561
Service district maintenance 593,388 705,665 479,264 631,572 534,376 626,289 475,248 587,707 569,610 786,366
Primary and secondary education 10,127,350 10,337,349 10,442,350 10,845,220 11,100,714 11,100,650 10,373,548 9,449,500 9,970,576 10,522,544
Capital outlay:
Schools 1,881,069 5,255,037 5,486,672 34,872,235 21,984,655 13,240,920 3,936,147 2,958,053 2,092,006 555,253
General 4,839,652 562,007 2,041,674 1,521,996 2,907,018 3,430,975 1,086,817 826,432 991,403 1,049,466
Debt service:
Principal 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 4,655,000
Interest 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 3,078,394
Other charges - bond issuance costs 40,689 100,149 20,809 89,835 — 124,372 64,313 — 10,000 —
Total expenditures 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 27,580,837
Excess of revenues over (under) expenditures (3,614,105) (4,459,049) (4,310,451) (28,861,340) (21,312,228) (13,072,586) (1,256,914) (1,477,501) 3,303,294 884,864
Other Financing Sources (Uses):
Proceeds from the issuance of debt 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 15,021 10,735 6,787 356,284 329,344 110,428 145,820 224,902 76,676 28,903
Insurance proceeds — — — — — 403,958 — — — —
Transfers in 3,782,289 957,652 6,212,885 992,365 642,691 1,404,497 1,758,036 1,189,104 1,786,712 1,628,191
Transfers out (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) (1,673,191)
Transfer in - component unit — — — — — — — — — 1,632,815
Total other financing sources(uses)7,984,254 1,328,774 24,956,170 25,363,716 176,987 17,605,273 (1,071,648) 181,142 591,491 1,616,718
Net change in fund balances $4,370,149 (3,130,275) 20,645,719 (3,497,624) (21,135,241) 4,532,687 (2,328,562) (1,296,359) 3,894,785 2,501,582
Debt service as a percentage
of noncapital expenditures 18.53 % 27.22 % 17.62 % 22.51 % 21.71 % 23.80 % 26.84 % 28.08 % 30.20 % 29.24 %
Fiscal Year
KODIAK ISLAND BOROUGH
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
141
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
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
2020 2,666,644 96,415 3,523,307 152,804 — 39,860 6,479,030
(a) Includes General Fund only.
Source: Borough general ledger.
142
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
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
2014 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
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
2020 1,266,365,775 1,363,039,653 155,178,500 168,465,300 1,421,544,275 1,531,504,953 10.75 92.82
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
2015
2017
2016
$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Last Ten Years Assessed Values
143
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
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
2020 0.56 7.45 1.79 0.95 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)
144
KODIAK ISLAND BOROUGH
Property Tax Levies and Collections
Last Ten Fiscal Years
Collections
in Subsequent
Years Amount
2011 $ 11,536,758 $ 11,499,457 99.7 $ 35,553 $ 11,535,010 100.0
2012 (a) 13,255,665 13,038,077 98.4 214,625 13,252,702 100.0
2013 (a) 13,581,524 13,489,190 99.3 89,413 13,578,603 100.0
2014 (a) 14,424,260 14,250,305 98.8 167,809 14,418,114 100.0
2015 15,009,704 14,749,222 98.3 249,846 14,999,068 99.9
2016 15,261,029 15,032,113 98.5 207,176 15,239,289 99.9
2017 16,642,674 16,554,392 99.5 58,712 16,613,104 99.8
2018 17,069,728 16,809,461 98.5 194,957 17,004,418 99.6
2019 17,699,787 17,462,634 98.7 23,647 17,486,281 98.8
2020 $ 18,055,528 $ 17,809,122 98.6 $ — $ 17,809,122 —
Source: Borough general ledger.
(a) Due to personal property audits in subsequent years, tax collections exceeded original taxes levied.
June 30,
Ended
Fiscal Year
Collected within the
Fiscal Year of the Levy Total Collections to DateTaxes Levied
for the
Fiscal Year
Percentage
of LevyAmount of Levy
Percentage
145
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 $ 79,378,500 1 5.6% $ 5,368,500 9 0.5%
Matson Navigation (a) 45,887,500 2 3.2% — — —
Ocean Beauty Seafoods 33,335,600 3 2.3% 9,351,372 5 0.9%
North Pacific Seafoods 20,386,700 4 1.4% 16,079,334 1 1.6%
Int'l Seafoods of Alaska 15,651,800 5 1.1% 11,297,880 3 1.1%
Mill Bay Plaza Assoc Ltd 12,766,600 6 0.9% 6,841,665 8 0.7%
Wal-Mart/Sam's Club 10,905,100 7 0.8% 9,253,400 6 0.9%
GCI Communication Corp. 10,479,200 8 0.7% 5,176,396 10 0.5%
Island Holdings 9,704,900 9 0.7% — —
Kodiak Fishmeal Company 6,932,700 10 0.5% — —
Brechan Enterprises, Inc — — — 9,033,577 7 0.9%
Westward Seafoods — — — 12,834,011 2 1.3%
Alaska Communications Systems — — — 10,700,480 4 1.1%
Total $245,428,600 17.2% $95,936,615 9.7%
Source: Borough tax records.
(a) Matson Navigation purchased Horizon Lines in 2012.
2020 2011
146
Net
Total Taxable Net Debt Per
Fiscal Assessed Bonded Per Assessed
Year Population Value Debt Capita Value
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%
2014 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 (a) 1,202,877,172 86,481,657 6,271 7.19%
13,563 (b) 1,312,339,398 82,302,899 6,068 6.27%
13,287 (b) 1,342,823,899 77,748,492 5,851 5.79%
13,136 (b) 1,389,969,625 72,639,089 5,530 5.23%
2020 13,001 (b) 1,421,544,275 67,349,686 5,180 4.74%
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.
2018
2019
KODIAK ISLAND BOROUGH
Ratios of Net Bonded Debt
Last Ten Fiscal Years
2016
2017
2015
147
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 and loan $ 67,849,686 100% $ 67,849,686
City of Kodiak:
General obligation bonds 6,260,988 100% 6,260,988
Total $74,110,674 $74,110,674
(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, 2020
148
2011 2012 2013 2014 2015
Taxable Assessed value $ 988,879,125 1,039,223,833 1,085,968,080 1,131,476,611 1,181,899,002
Plus exempt property 55,543,030 59,588,100 65,600,100 71,462,869 68,377,078
Total $1,044,422,155 1,098,811,933 1,151,568,180 1,202,939,480 1,250,276,080
2016 2017 2018 2019 2020
Taxable Assessed value $ 1,202,877,172 1,312,339,398 1,342,823,899 1,389,969,625 1,424,752,775
Plus exempt property 77,488,300 87,253,178 84,804,178 94,213,878 93,464,878
Total $1,280,365,472 1,399,592,576 1,427,628,077 1,484,183,503 1,518,217,653
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
149
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
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
2014 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
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
2020 $ 4,655,000 $ 3,078,394 $ 7,733,394 $ 5,744,905 134.6
(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.
2015
2017
2016
150
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
$ 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 — 15,531,184 20,160,175 122,173,016 15.12% 8,860
82,302,899 — 16,437,616 14,576,980 113,317,495 13.84% 8,355
77,748,492 — 15,649,919 13,806,965 107,205,376 12.56% 8,068
72,639,089 550,000 13,016,950 14,780,846 100,986,885 * 7,688
$ 67,349,686 $ 500,000 $ 12,196,935 $ 13,911,774 $ 93,958,395 * 7,227
Note: Detail regarding the Borough's outstanding debt can be found in the notes to the financial statements.
* Information not available at report time.
2020
Last Ten Fiscal Years
Fiscal
Year
2019
2018
Governmental Activities Business-type Activities
2016
2017
2014
2013
2012
2011
2015
151
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)
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
2020 13,001 * * 2,315 4.4
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
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Borough Population and Student Count
Population (a)School Enrollment (b)
152
Fiscal Year 2011 Fiscal Year 2012 Fiscal Year 2013 Fiscal Year 2014
Average Average Average Average Average Average Average Average
Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly
Employment Earnings Employment Earnings Employment Earnings Employment Earnings
Total Industries 6,416 $ 3,362 6,461 $ 3,488 6,411 $ 3,459 6,472 $ 3,575
Private Ownership 4,898 3,263 4,898 3,412 4,928 3,358 5,049 3,491
Total Government 1,518 3,681 1,501 3,742 1,483 3,795 1,423 3,875
Private Goods-Producing 2,113 3,619 2,193 3,801 2,138 3,704 2,219 3,831
Private Service-Providing 2,785 2,993 2,760 3,101 2,790 3,092 2,830 3,224
Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017 Fiscal Year 2018
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 6,524 $ 3,650 6,154 $ 3,292 6,294 $ 3,540 6,037 $ 3,585
Private Ownership 5,148 3,565 4,721 3,118 4,867 3,407 4,578 3,433
Total Government 1,377 3,966 1,433 3,867 1,427 3,995 1,460 4,060
Private Goods-Producing 2,268 3,832 2,012 2,766 1,934 3,318 1,636 3,067
Private Service-Providing 2,879 3,356 2,710 3,378 2,933 3,466 2,942 3,637
Fiscal Year 2019 Fiscal Year 2020
Average Average Average Average
Monthly Monthly Monthly Monthly
Employment Earnings Employment Earnings
Total Industries 5,967 $ 3,816 5,706 $ 3,887
Private Ownership 4,511 3,714 4,118 3,758
Total Government 1,455 4,134 1,588 4,222
Private Goods-Producing 1,637 3,651 1,524 3,665
Private Service-Providing 2,875 3,748 2,594 3,812
KODIAK ISLAND BOROUGH
Average Monthly Employment & Earnings
Last Ten Fiscal Years
153
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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 26.1 26.1 26.1 26.1 26.1 26.1 26.1 26.1
Building permits:
Permits issued 204 167 219 155 193 216 143 93 94 91
Value of buildings (thousands) 30,832 10,171 91,619 36,652 36,216 10,866 11,793 7,331 19,324 14,148
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) 224 224 224 224 224 224 224 224 224 224
Facilities:
Number of playgrounds 16 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) 8 8 8 7 7 7 7 7 7 7
Number of support personnel (b) 215 215 193 181 187 200 206 206 189 192
Number of teachers (c) 201 201 207 162 166 170 177 210 193 185
Number of students (d) 2,543 2,543 2,513 2,468 2,446 2,437 2,386 2,437 2,395 2,315
Number of Municipal Employees 43 45 45 48 45 43 44.5 45 41 38
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
154
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
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
2020 18 3,854,671 73 10,294,257 260,885,000 410,473,530 887,856,139
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
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Deposits in Kodiak Banks
155
2011 2012 2013 2014 2015
Function:
General Government 29 30 30 33 30
Community and Economic Development 5 6 6 5 4
Municipal Solid Waste Collection and Disposal 7 7 7 8 9
Kodiak Fisheries Research Center 2 2 2 2 2
Total 43 45 45 48 45
2016 2017 2018 2019 2020
Function:
General Government 29 28.5 29 28 25
Community and Economic Development 5 6 6 3 2
Municipal Solid Waste Collection and Disposal 7 8 8 8 9
Kodiak Fisheries Research Center 2 2 2 2 2
Total 43 44.5 45 41 38
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
156
KODIAK ISLAND BOROUGH
Operating Indicators by Function
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Function
General Government
Elections
Number of registered voters 9,619 9,479 9,585 9,209 9,100 9,585 9,453 9,357 10,039 10,104
Number voting in last election 2,311 2,139 1,250 1,566 1,968 1,800 2,303 1,692 1,266 1,550
Percent of registered voters 24% 23% 13% 17% 22% 19% 24% 18% 13% 15%
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 149 113 160 111 183 161 177 128 142 128
Junk cars removed 218 27 22 28 37 21 10 35 79 82
Primary and secondary education
Number of students 2,543 2,517 2,513 2,468 2,446 2,437 2,386 2,437 2,395 2,315
Number of General Fund certified staff 217 211 207 186 177 183 196 206 193 185
Number of General Fund classified staff 162 166 193 161 166 173 187 210 189 192
Solid waste disposal
Total solid waste disposal in tons 14,896 16,558 14,688 11,826 12,364 12,876 11,646 11,458 12,882 10,989
Baled waste in tons 10,846 10,153 11,535 10,005 8,900 10,454 9,875 10,396 9,584 9,191
Scrap metal in tons 260 147 251 172 205 221 190 128 142 173
Asbestos, cubic yards 230 116 399 390 362 219 179 142 348 509
Source: Borough Finance Department
157
Function program 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
GOVERNMENTAL ACTIVITIES
Number of buildings (teacher housing, schools and office buildings)18 19 19 19 19 21 20 20 19 19
Vehicles 15 15 15 14 14 11 14 13 13 13
Inactive School building n/a n/a n/a n/a n/a n/a n/a n/a 1 1
Streets (miles) 25.6 26.1 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
15 13 13 12 12 10 11 13 12 12
1 1 1 1 1 1 1 — — —
BUSINESS-TYPE ACTIVITES
Number of Baler Facilities (Landfills) 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1
— — — — — 1 1 1 1 1
224 224 224 224 224 224 224 224 224 224
1 1 1 1 1 1 1 1 1 1
16 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
158