FY2022 ACFRKODIAK ISLAND BOROUGH
ALASKA
Annual Comprehensive Financial Report
Year Ended June 30, 2022
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KODIAK ISLAND BOROUGH
ALASKA
Annual Comprehensive Financial Report
Year Ended June 30, 2022
Official Issuing Report
Dora Cross
Finance Director
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KODIAK ISLAND BOROUGH
TABLE OF CONTENTS
June 30, 2022
INTRODUCTORY SECTION:
Letter of Transmittal
GFOA Certificate of Achievement
Organizational Chart
Elected Officials (Photographs)
Borough Officials
Map of Kodiak Island Borough
FINANCIAL SECTION:
Independent Auditor's Report
Management's Discussion and Analysis
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position
Statement of Activities
Fund Financial Statements:
Balance Sheet — Governmental Funds
Reconciliation of Net Position Between the Government -Wide and the Fund Financial
Statements
Statement of Revenues, Expenditures, and Changes in Fund Balances —
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities
Statement of Net Position — Proprietary Funds — Business -Type Activities — Enterprise
Funds
Statement of Revenues, Expenses, and Changes in Net Position — Proprietary Funds —
Business -Type Activities — Enterprise Funds
Statement of Cash Flows — Proprietary Funds — Business -Type Activities — Enterprise
Funds
Notes to Basic Financial Statements
Required Supplementary Information:
Budgetary Comparison Schedule — General Fund
Budgetary Comparison Schedule — Special Revenue Fund — Education Support
Budgetary Comparison Schedule — Special Revenue Fund — Facilities
Public Employees' Retirement System:
Schedule of Borough's Proportionate Share of the Net Pension Liability
Schedule of Borough's Proportionate Share of the Net OPEB Liability (Asset)
Schedule of Borough's Contributions (Pension)
Schedule of Borough's Contributions (OPEB)
Notes to Required Supplementary Information — Budgetary Comparison Schedules
Page
1-4
10-13
14-28
29
30
31
32
33
34
35
36
37
38-84
85-86
87
88
89
90
91
92
93-94
KODIAK ISLAND BOROUGH
TABLE OF CONTENTS, CONTINUED
Page
Additional Supplementary Information:
Budgetary Comparison Schedule — Debt Service Fund — Education
95
Nonmajor Governmental Funds:
Combining Balance Sheet
96
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
97
Nonmajor Special Revenue Funds:
Combining Balance Sheet
98-99
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
100-101
Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and
Actual:
Fire and Road Service Areas:
Fire:
Fire Protection Area No. 1
102
Womens Bay Fire Department
103
Kodiak Airport Fire District
104
Road:
Monashka Bay Road Service Area
105
Service Area No. 1
106
Womens Bay Road Service Area
107
Bay View Road Service Area
108
Service Area No. 2
109
L.E.P.C.
110
Land Sales
1 I 1
Buildings and Grounds
112
Woodland Acres Street Light Service Area
113
Trinity Islands Street Light Service Area
114
Tourism Development
115
Commercial Passenger Vessel
116
Mission Lake Tide Gate
117
Opiod Class Action Settlement
118
Nonmajor Capital Project Funds
Combining Balance Sheet 119
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 120
Nonmajor Enterprise Funds:
Combining Statement of Net Position 121
Combining Statement of Revenues, Expenses, and Changes in Net Position 122
Combining Statement of Cash Flows 123
Enterprise Funds:
Schedule of Revenues, Expenses, and Changes in Net Position — Budget
and Actual:
Municipal Solid Waste Collection and Disposal 124
Hospital Facilities 125
Long Tenn Care Center 126
Kodiak Fisheries Research Center 127
911 Service Fund 128
Research Court Apartments 129
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KODIAK ISLAND BOROUGH
TABLE OF CONTENTS, CONTINUED
STATISTICAL SECTION:
Page
Supplementary Bond Schedules:
Summary of Bonded Debt Service Requirements to Maturity
130
General Obligation Bond, 2021 Series One — Retirement Schedule
131
General Obligation Bond, 2021 Series Two — Retirement Schedule
132
General Obligation Bond, 2013 Series One / 2021 Series Three — Retirement Schedule
133
General Obligation Bond, 2014 Series One / 2021 Series Four — Retirement Schedule
134
General Obligation Bond, 2015 Series Three — Retirement Schedule
135
General Obligation Bond, 2015 Series Three — Retirement Schedule
136
General Obligation Bond, 2016 Series One — Retirement Schedule
137
General Obligation Bond, 2016 Series One — Retirement Schedule
138
General Obligation Bond, 2016 Series Three — Retirement Schedule
139
General Obligation Bond, 2018 Series A — Retirement Schedule
140
General Obligation Bond, 2020 Series One A — Retirement Schedule
141
General Obligation Bond, 2020 Series One B — Retirement Schedule
142
STATISTICAL SECTION:
Statistical Section Index
Net Position by Component — Last Ten Fiscal Years
143
Changes in Net Position — Last Ten Fiscal Years
144
Fund Balances of Governmental Funds — Last Ten Fiscal Years
145
Changes in Fund Balances of Governmental Funds — Last Ten Fiscal Years
146
General Revenues by Source — Last Ten Fiscal Years
147
Assessed and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years
148
Direct and Overlapping Property Tax Rates and Contributions to the School District —
Last Ten Fiscal Years
149
Property Tax Levies and Collections — Last Ten Fiscal Years
150
Principal Property Tax Payers — Current Year and Ten Years Ago
151
Ratios of Net Bonded Debt— Last Ten Fiscal Years
152
Computation of Direct Debt
153
Legal Debt Margin Information — Last Ten Fiscal Years
154
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General
Governmental Expenditures and Transfers — Last Ten Fiscal Years
155
Ratios of Outstanding Debt by Type — Last Ten Fiscal Years
156
Demographic and Economic Statistics — Last Ten Fiscal Years
157
Miscellaneous Statistical Data — Last Ten Fiscal Years
158
Average Monthly Employment & Earnings — Last Ten Fiscal Years
159
Property Value, Construction and Bank Deposits — Last Ten Fiscal Years
160
Full -Time Equivalent Borough Employees by Function/Program — Last Ten Fiscal Years
161
Operating Indicators by Function — Last Ten Fiscal Years
162
Capital Asset Statistics by Function/Program — Last Ten Fiscal Years
163
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INTRODUCTORY SECTION
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Kodiak Island Borough
Finance Department
710 Mill Bay Road. Kodiak, Alaska 99615
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December 28, 2022
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 (GAAP) in the United States of America 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 annual comprehensive
financial report of the Kodiak Island Borough (Borough) for the fiscal year ended June 30, 2022.
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
I certified public accountants. The goal of the independent audit was to form an opinion on whether
L the financial statements of the Borough, for the fiscal year ended June 30, 2022, 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, 2022. The independent auditor's report is
r presented as the first component of the financial section of this report.
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 and approximately 250 miles south of Anchorage. 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 6,560 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 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 is also 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 I Oth. The appropriated budget is prepared by fund and department.
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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 budget. The State of Alaska has experienced budget shortfalls for several years 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. For the last few years, the State has not approved their budget until after the
Borough's June 10`h budget adoption deadline, meaning we have had to guess at what the State
revenues we will receive for our largest revenue receipt from the State, the School Construction Bond
Debt Reimbursement Program. Due to improved revenues, the State approved appropriations at the
end of the fiscal year for not only fully funding the School Construction Bond Debt Reimbursement
Program, but to fully fund prior years where reimbursements were less than 100%. Continued
improved State revenues has the State's initial FY24 budget funding reimbursements at 100% and
maintaining the local contribution to the State Public Employees Retirement System (PERS) at 22%.
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 600
commercial vessels and consistently ranks among the top ten ports in the United States in terms of
amount and value of product delivered. Severance tax revenues on sea products are volatile and can
be affected by many variables including quota caps, environmental restrictions, fisheries health, labor
availability and supply chain issues. Sea product revenues have seen highs of $1,892,754 in FY2012
to a low of $996,833 in FY2021. Although unemployment rates are low, labor shortages remain an
ongoing concern for all local businesses.
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
FY2018 total revenue was $109,598 and since then the revenues have seen a slow and steady decrease
to $50,383 in FY2021. FY2022 saw revenues of $101,445 indicating a substantial recovery of visitors
to our area. Cruise ship booking have dropped to zero and the only revenue to the Commercial
Passenger Vessel Tax (Cruise ship tax) was from COVID revenue replacement money of $54,220.
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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, 2022, the unemployment rate for the Kodiak
Island Borough was 4.3% compared to the State of Alaska's rate of 4.6%.
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 Annual
Comprehensive Financial Report (Annual Report) for the fiscal year ended June 30, 2021. This was
the thirty-second consecutive year that the Borough has received this prestigious award. To be
awarded a Certificate of Achievement, a government must publish an easily readable and efficiently
organized annual comprehensive 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
Annual Report 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,
Dave Conrad
Interim Borough Manager
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Dora Cross
Director of Finance
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Kodiak Island Borough
Alaska
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
5
Borough Attorney
Kodiak Island Borough
Fiscal Year 2022
Electorate
Borough Mayor
Borough Assembly
Borough Manager
HR Officer Executive
Bayside Fire Assistant
Chief
Engineering/ Community
Facilities Director Development Assessor
Borough Clerk
II
Assistant Clerk Deputy Clerk
Grant Writer/
Spec Proj Support
Finance/MIS
Director
Property Appraiser
General
Director
KFRC
Solid Waste Mgr/
a
Maintenance
Environ. Spec.
Associate Planner/ENF
Engineer
Appraiser
Accounting Tech
Maintenance
Treatment Plant
Associate Planner/LRP
Mechanic
Operator Lead
Clerk I
a
Code Enforcement
Treatment Plant
Officer
Operator
GIS Analyst
Treatment Plant
Operator Trainee
Assistant
Secretary III
Director
Solid Waste
Baler/Landfill
Supervisor
Projects
Inspector
Projects
Baler Operator II
Assistant
KFRC
Baler Operator I
Interpretive
SpeURec.
Baler Operator I
KFRC
Interpretive
Baler Operator)
Spec/Rec.
Baler Operator I
Secretary III
Landfill Attendant
6
Borough Clerk
II
Assistant Clerk Deputy Clerk
Grant Writer/
Spec Proj Support
Finance/MIS
Director
Property Appraiser
General
Lead
Accountant
a
Appraiser
Accounting Tech
Technician
Accounts Payable
Appraiser
Accounting Tech
Payroll
Technician
Assessment
Clerk I
a
Revenue
Accountant
Cashier
Secretary III
IT Supervisor a
PC Network
Tech II
Programmer/
Analyst
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Officer Mgt Offic
Mgt Oer
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IT Supervisor a
PC Network
Tech II
Programmer/
Analyst
MAYOR AND ASSEMBLY MEMBERS
Bill Roberts, Mayor, 2022
Aimee Williams,
Deputy Presiding Officer (DPO),
At Large, 2023
Scott Arndt,
At Large, 2022
Jared Griffin,
At Large, 2022
At Large, 2024
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Joseph Delgado,
At Large, 2022
Geoffrey Smith,
At Large, 2023
James Turner,
At Large, 2024
KODIAK ISLAND BOROUGH
KODIAK, ALASKA
BOROUGH OFFICIALS
YEAR ENDED JUNE 30, 2022
MAYOR
William Roberts 2022
ASSEMBLY
Scott Arndt
2022
Scott Smiley 2024
Joseph Delgado
2022
James Turner 2024
Jared Griffm
2022
Aimee Williams 2023
Geoffrey Smith
2023
Fire Chief
MANAGEMENT
Vacant (Dave Conrad, Interim)-------------------
............................. Borough Manager
Dora Cross --- ------------------------------
-------Finance Director/Treasurer
NovaJavier------------------ —------------------------------------------
................... ----------Borough Clerk
Vacant (Seema Garonne, Interim)------
----------------- Community Development Director
Seema Garoutte--------------------------------------------------------------------------------------
Borough Assessor
LeeFinalyson----------------------------------------------------------------------------------------------------
Fire Chief
Dave Conrad---------------------------------------------------------------------Engineering
and Facilities Director
Paul Van Dyke --------- --------- ---------
--------- ------------------- ------IT Supervisor
Keene & Currall..............................................................
Borough Attorney (Contracted Firm)
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FINANCIAL SECTION
Altman, Rogers
Co CERTIFIED
(�70 • PUBLIC
ACCOUNTANTS
Independent Auditor's Report
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
Kodiak, Alaska
Report on the Audit of the Financial Statements
Opinions
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
F information of the Kodiak Island Borough (the Borough), as of and for the year ended June 30, 2022, and
Ithe related notes to the financial statements, which collectively comprise the Borough's basic financial
statements as listed in the table of contents.
' In our opinion, the accompany financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business -type activities, the
aggregate discretely presented component unit, each major fund, and the aggregate remaining fund
information of the Borough, as of June 30, 2022, 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.
Basis for Opinions
_ We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States (Government Auditing Standards).
Our responsibilities under those standards are further described in the Auditor's Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the Borough
and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating
to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinions.
Emphasis of Matter
Change in Accounting Principle
�• As discussed in Note 18 to the financial statements, in 2022, the Borough implemented GASB Statement
No. 87, Leases, which established standards of accounting and financial reporting for leases by lessees and
lessors. The requirements of this Statement apply to financial statements of all state and local
t governments.
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L 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
The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
The new standard requires the Borough to recognize certain lease assets and liabilities for leases. It establishes
a single model for lease accounting based on the underlying principle that leases are financings of the right to
use an underlying asset for a period of time. Under this Statement, a lessee is required to recognize a 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 the Borough's
leasing activities. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the Borough's ability to continue as
a going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is
not a guarantee that an audit conducted in accordance with generally accepted auditing standards and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control. Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
• Obtain an understanding of internal control relevant to the audit 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 Borough's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Borough's ability to continue as a going concern for a
reasonable period of time.
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rThe Honorable Mayor and Members of the Assembly
Kodiak Island Borough
r
We are required to communicate with those charged with governance regarding, among other matters, the
F planned scope and timing of the audit, significant audit findings, and certain internal control -related matters
that we identified during the audit.
rRequired Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis, Budgetary Comparison Schedules, Schedules of Borough's Proportionate Share
of the Net Pension and OPEB Liabilities (Assets) and Contributions for the Public Employees's Retirement
System, and Notes to Required Supplementary Information on pages 14-28, 85-88, 89-92, and 93-94,
r respectively, be presented to supplement the basic financial statements. Such information is the
responsibility of management and, 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
r 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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Borough's basic financial statements. The accompanying supplementary information, which
includes the combining and individual major and nonmajor fund financial statements, is 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 basic financial statements. The 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
L statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in
all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory section, supplementary bond schedules, and statistical section but does not
include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial
statements do not cover the other information, and we do not express an opinion or any form of assurance
thereon.
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The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
We also have previously audited, in accordance with auditing standards generally accepted in the United
States of America, Kodiak Island Borough's basic financial statements for the year ended June 30, 2021,
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
aggregate 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, 2021, 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 related directly to the underlying accounting and other records
used to prepare the 2021 basic financial statements. The information was subjected to the audit 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 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 2021 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,
2022, on our consideration of the 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 the 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 Borough's
internal control over financial reporting and compliance.
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Anchorage, Alaska
December 28, 2022
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MANAGEMENT'S DISCUSSION AND ANALYSIS
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! KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30, 2022
f 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, 2022. We encourage readers to consider the information presented herein in conjunction with
additional information that we have furnished in our letter of transmittal, which can be found on pages 1 -
F4 of this report.
! FINANCIAL HIGHLIGHTS
• The Borough's total net position increased 6.6% or $13.03 million. $12.3 million of this increase was
to governmental funds and is a result of the State of Alaska reimbursing the Borough for four years
of unreimbursed school bond construction debt payments. The remaining $.7 million increase is
1 within the business -type funds, most of this amount is the result of the Governmental Accounting
1 Standards Board (GASB) Statement 87 and the new lease recognition requirements.
• The unrestricted amount of the Borough's total net position, or the amount that may be used to meet
the Borough's ongoing obligations to citizens and creditors, increased by $7.8 million, which is due
in large part to the State of Alaska's reimbursement of prior years' unreimbursed school bond
( construction debt payments.
• Total equity in the central treasury increased by $1.9 million (2%). The governmental central treasury
increased by $3.7 million (4.8%) and can be attributed to the receipt of ARPA (American Rescue
Plan Act) grant funding. The business -type equity in central treasury decreased by $1.8 million
(9.8%) split fairly evenly between the Hospital fund and the Solid Waste Collection and Disposal
funds due to capital project expenditures.
L • The Borough's total noncurrent liabilities (obligations due in more than one year) decreased by $8.9
million (9.6%), and $8.6 million of this decrease is due to note and bond payments. Other noncurrent
liabilities that decreased were accrued leave, and net pension and OPEB (Other Postemployment
Benefits). The Solid Waste Collection and Disposal noncurrent liability increased by $630,000
(9.6%) which is similar to the prior year increase.
• At the end of the current fiscal year, the Borough's governmental funds (which excludes business
type funds) reported combined fund balances of $71.3 million. This was an increase of $10.5 million
L (17.3%) and can be attributed to school bond debt reimbursements and grant funding. Approximately
11.2% of the current year's ending fund balance, or $8 million of unassigned fund balance, is
available for spending at government's discretion.
• At the end of the current fiscal year, the $8 million of unassigned fund balance for the General Fund
amounts to 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
Linformation and 5) other supplementary information in addition to the basic financial statements.
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KODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
1) Government -wide Financial Statements (pages 29-30)
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 property leases for various Borough -owned buildings including a hospital,
long-term care center, a fisheries research center and an apartment building.
• 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's 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).
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.
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rKODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
2) Fund Financial Statements (pages 31-37)
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 Maio r Non -Major Total Funds
Governmental Funds:
General Fund 1 1
Debt Service Fund 1 1
Special Revenue 2 17 19
Capital Projects 1 6 7
Total Governmental Funds 5 23 28
Proprietary Funds:
Enterprise Funds 4 2 6
Total of All Funds 9 25 34
a) Governmental Funds (pages 85-88 and 95-120) — 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 35-37 and 121-129) — 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
Lstatements have been provided for the funds to demonstrate compliance with the budget.
3) Notes to the Basic Financial Statements (pages 38-84)
The notes provide additional information that is essential to a full understanding of the data provided in the
government -wide and fund financial statements.
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KODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
4) Required Supplementary Information (pages 85-94)
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 95-129)
The basic financial statements are followed by additional supplementary information on individual fund
activity.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Statement of Net Position (page 29)
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 $209 million at June 30, 2022, compared to $196 million at June 30, 2021.
Total Net Position of Government and Business -Type
Activities (last 10 years)
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
■ Business Type Activities ■ Governmental Activites
The largest portion of the Kodiak Island Borough's net position ($132 million or 63%) 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.
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KODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
The 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 $77 million of the unrestricted net position may be used to meet the Borough's ongoing obligations to
citizens and creditors.
Net Position of Governmental and Buisness-type Activities (in thousands)
For Years Ended June 30, 2022 and 2021
Net position
Net investment in capital assets
Governmental
Business -type
Total
126,309
Restricted
Activities
Activities
Activities
154
2022
2021
2022
2021
2022
2021
Current and other assets $
96,039
78,316
42,515
45,305
138,554
123,621
Capital assets
146,044
151,600
64,521
64,366
210,565
215,966
Total assets
242,083
229,916
107,036
109,671
349,119
339,587
Deferred outflows of resources
936
1,292
137
353
1,073
1,645
Total assets and deferred
outflows of resources $
243,019
231,208
107,173
110,024
350,192
341,232
Long-term liabilities $
55,112
62,806
28,782
30,059
83,894
92,865
Other liabilities
29,589
24,075
2,611
3,255
32,200
27,330
Total liabilities
84,701
86,881
31,393
33,314
116,094
120,195
Deferred inflows of resources
2,605
950
21,852
23,473
24,457
24,423
Total liabilities and deferred
inflows of resources
87,306
87,831
53,245
56,787
140,551
144,618
Net position
Net investment in capital assets
88,558
86,460
43,543 39,849 132,101
126,309
Restricted
47
154
47
154
Unrestricted
67,108
56,763
10,385 13,388 77,493
70,151
Total net position $
155,713
143,377
53,928 53,237 209,641
196,614
Changes in Net Position
During the current fiscal year, the Borough's total net position increased by $13 million (6.63%). This
compares to an increase of $0.4 million for the year ended June 30, 2021. Of the $13 million increase, the
governmental net position increased by $12.3 million (8.6%) and is a result of the State of Alaska
reimbursing the Borough for four years of unreimbursed school bond construction debt payments. The
remaining $0.7 million (1.3%) increase is within the business -type funds, of which most of this amount is
the result of the Governmental Accounting Standards Board (GASB) Statement 87 and the new lease
recognition requirements.
Governmental: Revenues increased overall by $6,954,626 (23.06%) primarily due to the State of Alaska
reimbursing the Borough for found year of unreimbursed school bond construction debt payments and
overall expenditures decreased by $4,855,235 (16.39%) as compared to FY2021 due to a decrease in
COVID-19 related spending.
Business -type: Revenues decreased overall by $61,364 (.81%) due to less lease income and depressed
interest earnings, overall expenses decreased by $856,651 (11.15%) as compared to FY2021 primarily due
to repair and maintenance projects postponed.
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KODIAK ISLAND BOROUGH 4
Management's Discussion and Analysis, Continued
Statement of Activities (page 30)
The following table shows the changes in net position for fiscal years 2022 and 2021 for both governmental
and business -type activities.
Changes in Net Position (in thousands)
Gmernmental activities Business -type activities Total activities
2022 2021 2022 2021 2022 2021
Revenues:
Program revenues:
Charges for scry ices
Operating grants and contributions
Capital grants
General revenues:
Property tants
Grants and entitlements not restricted
to specific programs
Land sales
Excise tams
Severance tams
Other
Investment earnings
Total revenues
Fxpenses:
General government
Public safety
Community and economic development
Emergency preparedness
Health and social welfare
Education, culture and recreation
Parks and recreation
Service district maintenance
Primary and secondary education
Interest on long-term debt
Municipal solid waste collection and
disposal
Hospital facilities
Long Tenn Care Center
Kodiak Fisheries Research Center
911 services
Research Court Apartments
Total expenses
Change in net position
Net position, beginning ofyear
Net position, end of year
$ 945 989 8,074 7,059
14,585 479 (38) 52
626 138
9,019 8.048
14,547 531
626 138
17,607
17,449
17,607
17.449
3,168
8,747
3,168
8,747
5
10
5
10
684
702
684
702
1,779
1,100
1,779
1,100
534
354
316
428
850
782
(2,821)
189
(836)
39
(3,657)
228
37,112
30,157
7,516
7,578
44,628
37,735
5,349
5,366
5,349
5,368
710
691
710
691
877
779
877
779
II
5
II
5
170
5,257
170
5,257
20
20
20
20
22
20
22
20
857
648
857
648
16,008
15,138
16,008
15,138
752
1,705
752
1,705
3,373
3,741
3,373
3,741
1,116
1,078
1,116
1,078
671
1,247
671
1,247
1,282
1,237
1,282
1,237
301
301
301
301
82
78
82
78
24,776
29,631
6,825
7,682
31,601
37,313
12,336
526
691
(104)
13,027
422
143,377
142,851
53,237
53,341
196,614
196,192
$ 155,713
143,377
53,928
53,237
209,641
196,614
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KODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
Governmental Activities — increased the Borough's net position by $12.3 million.
Revenues: The two largest sources are Operating and Capital Grants and Property Taxes at $15.2 million
and $17.6 million, respectively. Operating and Grants was the largest increasing revenue by $14.1 million
(2,944.2%) and Investment Earnings was the largest decreasing revenue by $3 million (1,593%). Overall
revenues increased by $6.9 million (23%) from 2021.
Excise taxes
2%
Grants
entitlemer
restricted to
progra
8%
Propertt
44`,
FY2022 Governmental Activities - Revenue Sources
Investment earnings Other
n% .a rharvpc for CPrvirp4
Operating grants and
contributions
38%
Expenses: The largest functional expense is Primary and Secondary Education, which amounted to $16
million, a 5.7% increase from 2021 due to increased funding to the school district. General Government
was the second largest expense at $5.3 million a 0.3% decrease from 2021 due to vacant positions. All other
function categories increased with the exception of health and social welfare which decreased by $5 million
due to the one-time distribution of Coronavirus federal grant money in 2021 and interest on long-term debt
which decreased $1 million. Overall, total expenses decreased by $4.9 million (16.4%) from 2021.
FY2022 Governmental Activities - Functional Expenses
Interest on long-term
3%
Service district
Primary and
secondary educa
65%
20
General government
22%
Public safety
3%
Community and
economic
development
3%
Health and social
services
1%
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
Business Activities - increased the Kodiak Island Borough's net position by $.7 million (1.2%).
Revenues: The largest source is Charges for Services at $8 million which increased by $1 million (14.3%)
which is primarily due to the new lease revenue recognition rules. Interest earnings were the largest
decrease in revenues by $0.8 million as compared to 2021, due to depressed interest rates. Overall, total
revenues decreased by $62 thousand (0.8%) from 2021
FY2022
Business -Type Activities - Revenue
Other
4%
Expenses: The largest source is from the Municipal Solid Waste Collection and Disposal fund, which
totaled $3.3 million, a 9.8% decrease from 2021. The largest decrease in expenses at $576,634 (46.23%)
was from the Long -Term Care Center due to a reduction in repair and maintenance costs as compared to
2021. Overall, total expenses decreased by $856,651 (11.15%) from 2021.
FY2022 Business -Type Activities - Expenses
E911 service __ Contributions
5% 3%
Closure/post closurePersoi.
10% -' s ._
Contracted services
Recycling services 4%
5% General*
Administration Maintenance and
13% repair
Depreciation 2%
38%
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1 KODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
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.
[L 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 $71,376,044, an increase of $10,546,000 (17.34%) in comparison to the beginning of the year.
Of this total amount, $51,838 constitutes nonspendable, $47,010 was restricted, $54,580,464 was
committed, $8,650,120 was assigned, and $8,046,612 was unassigned fund balance.
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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 $45,790, with an unassigned fund balance of
$8,205,029 for a total fund balance of $8,250,819. As a measure of the General Fund's liquidity, it may be
useful to compare fund balance to total expenditures. Unassigned fund balance represents 150.15% of total
General Fund expenditures, an increase of 80.27% from 2021.
GOVERNMENTAL FUNDS - FUND BALANCE
40,000,000
$37,272,517
30,000,000
20,000,000
10,000,000
0
_
(10,000,000)
$(157,433)
General
Education Facilities
Debt Service
22
$443,227 W
State Capital Non -Major Funds
Grants
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
Major Fund Highlights
General Fund — Fund balance increased by $763,599 (10.2%) during the current fiscal year. Total
revenues were $676,830 more than anticipated due to higher than expected sea products severance
tax receipts and additional PILT revenues from the federal government. Expenditures were
$386,769 less due largely to not using the money put into contingencies in case the State of Alaska
did not fully fund the school construction bond debt reimbursement program. Since the program
was fully funded, use of the contingency amount was not needed. Total fund balance is $8,250,819
and meets the minimum required reserve balance of $2,955,687.
Education Support (Special Revenue Fund) — Fund balance decreased by $213,164 (382.49%) and
has a negative balance of $157,433 at year-end. A correction of a five-year assessment clerical
error resulted in a loss of nearly $200,000 of tax revenues for this fund, which was the key factor
of the deficit.
• Facilities Fund (Special Revenue Fund) — Fund balance decreased by $2,652,781 (6.64%) during
the current fiscal year. Investment income, the sole revenue source for the fund, was $2,251,964
less than the previous year. Since the fund is required to be valued at market rates as of June 30th,
and market treasury values decrease in an increasing interest rate environment, the change in
market value for the investments was value loss of $2.6 million. Provided the borough does not
sell securities prior to maturity, which it has not done, the change in market values will not be
realized. The largest expense of the fund was a $539,389 transfer to the Renewal and Replacement
fund which funds major construction and repair projects for borough and school buildings.
• Education Debt Service Fund (Debt Service Fund) — Fund balance increased by $11,821,775
(1,843%), due to the reimbursement of $11.6 million from the State of Alaska of several years'
worth of unreimbursed school bond construction debt payments. Property tax revenues were
$50,956 less than anticipated due to the correction of a five-year assessment clerical error. The
fund balance is $12,463,176 and meets the minimum required reserve balance of $275,000.
Other Governmental Funds (Non -Major Funds) Highlights
Other Governmental funds — Aggregate fund balance increased by $825,665 (6.72%) during the current
fiscal year; special revenue funds decreased $1,050,949 and capital projects funds increased
$1,876,614.
• Building and Grounds (Special Revenue Fund) — Fund balance decreased by $981,178. The key
factor leading to this was $1.1 million dollar transfer to capital projects for a borough building
boiler room abatement and repair project
• Commercial Passenger Vessel (Special Revenue Fund) — Fund balance decreased by $106,525 due
to the payment of $153,000 to the City of Kodiak for the installation of a public toilet at the city
ferry dock.
• Borough Capital Projects Fund (Capital Projects Fund) — Fund increased by $294,527 primarily
due to a $300,000 transfer in from the General Fund toward a project to purchase a new property
tax assessment and taxation software.
• Renewal and Replacement Projects (Capital Project Fund) —Fund balance increased by $1,473,227
primarily due the $1.1 million transfer in for a borough building boiler room abatement and repair
project and a $539,389 transfer in from the Facilities Special Revenue Fund.
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rKODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
Proprietary Funds — The Borough's proprietary funds provide the same type of information found in the
government -wide financial statements, but in more detail. The only proprietary funds the Borough has is
Enterprise funds.
As of the end of the current fiscal year, the Borough's proprietary funds reported combined net position of
$53,928,425, an increase of $691,408 (0.13%) compared to the beginning of the year. Equity in central
treasury and restricted cash and equivalents decreased by $1,808,937 (9.8%) in comparison to the beginning
of the year due to payments for capital projects.
2022 Proprietary Funds - Operating Revenue versus
Operating Expenses
5oo,o00
M 4,000,000
3,500,000
3,000,000 ■ Operating Revenues
2,500,000
2,000,000 ■ Operating Expenses
1,500,000
1,000,000
. o
500,000
Municipal Hospital Long -Term Kodiak Other Non -
Solid Facilities Care Fisheries Major
Waste Center Research Funds
Center
Major Fund Highlights
• Municipal Solid Waste Collection and Disposal —Net position increased by $360,711 (1.89%)
due to decreased depreciation and pension and OPEB liabilities.
• Hospital Facilities — Net position increased by $242,033 (1.45%) due to decreased repair and
maintenance expenses.
• Long -Term Care Center — Net position increased by $538,368 (7.86%) due to decreased repair
` and maintenance expenses.
• Kodiak Fisheries Research Center—Net position decreased by $448,745 (4.39%) due to decreased
investment revenues and increasing repair and maintenance expenses.
Other Nonmajor Fund Highlights
• 911 Services — Since the revenues to this fund are passed through to the City of Kodiak, the net
position at year-end is $53.
` • Research Court Apartments —Net position only decreased by $1,012 (0.33%) due to stable tenant
L income and repair expenses.
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KODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
GENERAL FUND BUDGETARY HIGHLIGHTS (uaees 85-86)
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 sea
products severance tax receiving $541,429 more than budgeted and payments in lieu of taxes (PILT)
receiving $337,213 more than budgeted. Overall, actual revenues were $676,830 (8.3%) more than
budgeted.
FY2022 Budget to Actual Comparison of Revenues
4,000,000
'1
3,000,000
Excise Tax
State Sources
Federal
2,000,000
Sources
1,000,000
0
1,000,000 Property Taxes
Severance
Taxes
ME
'1
1'
Excise Tax
State Sources
Federal
Sources
■Budgeted ■Actual
Other
Within general fund expenditures by function, the largest difference between budgeted and actual expenses
was the general administration department expending $206,501 less than what was budgeted. There was no
use of the $148,000 of contingencies which were budgeted in case it was needed for debt service payments.
The assessing department expended $66,043 more than budgeted primarily due to legal costs related to
defending property exemptions. Overall, actual expenditures were $386,769 (6.6%) less than budgeted.
FY2022 Budget to Actual Comparison of
5,000,000 Expenditures - By Function
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0 — ` —
General Public Safety Community& Emergency Non -Profit Parks and
Government Economic Preparedness Recreation
Development
25
■ Budgeted
■ Actual
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KODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets (Note 8 on page 53-57) — The Borough's investment in capital assets includes land,
buildings and improvements, improvements other than buildings, machinery and equipment, and
construction work -in -progress. During the year, the construction work -in -progress decreased by $588,659
due to the completion of construction projects. All other categories decreased due to depreciation expenses.
As of June 30, 2022, the total net book value was $210,564,905, a decrease of $5,400,482 (2.5%).
The following table displays the capital assets (net of accumulated depreciation) at June 30, 2022, with a
comparison to 2021.
Artwork !
Land
Construction work -in -progress
Buildings and improvements
Improvements other than
buildings
Equipment
Infrastructure
Unclassified plant in service
Governmental Business -type Total
2022 activities activities activities
Turf— 2022
792T-- 2022
16,091 16,091 16,091 16,091
22,752,807 22,752,807 1,661,499 1,661,499 24,414,306 24,414,306
5,297,991 6,954,036 32,321,442 31,254,056 37,619,433 38,208,092
103,123,951 107,409,675 26,011,107 28,786,910 129,135,058 136,196,585
13,729,240
13,085,924
3,134,511
1,125,738
16,863,751
14,211,662
950,229
1,131,566
745,403
848,473
1,695,632
1,980,039
189,807
265,730
2021
General obligation bonds, including premium
189,807
265,730
—
58,575,062
630,827
672,882
630,827
672,882
$ 146,044,025
151,599,738
64,520,880
64,365,649
210,564,905
215,965,387
Long -Term Debt (Note 10, pages 59-64)—At the end of the current fiscal year, the Borough's total General
Obligation outstanding bonded debt of $55,890,000 (not including premiums). This amount is backed by
the full faith and credit of the Borough. The remainder of the Borough's debt represents loans, revenue
notes payable, compensated absences, and landfill closure/post-closure costs.
The following table displays the long-term debt at June 30, 2022, with a comparison to 2021.
The Borough's total debt decreased by $8,299,678 (8.9%) 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.
0
Governmental
Business -type
Total
activities
activities
Activities
2022 2021
2022
2021
2022
2021
General obligation bonds, including premium
$ 58,575,062 65,140,020
—
—
58,575,062
65,140,020
Compensated absences
152,113 175,359
152,136
142,684
304,249
318,043
Landfill post closure care costs
7,189,000
6,559,000
7,189,000
6,559,000
Loans/notes payable
12,173,628
13,042,701
12,173,628
13,042,701
Revenue Bonds Payable
— —
9,991,972
11,473,825
9,991,972
11,473,825
$ 58,727,175 65,315,379
29,506,736
31,218,210
88,233,911
96,533,589
The Borough's total debt decreased by $8,299,678 (8.9%) 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.
0
KODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET 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 and oyster farming,
are being cultivated.
• Although commercial fishing activities (excluding tourist -based fishing) were relatively
unaffected by COVID restrictions, processing activities saw operation interruptions related to
both staffing and supply chain disruptions and increased costs due to plant safety modifications
and personal protective equipment purchases.
• Tourism continues to increase; however, the number of cruise ships stopping in Kodiak has not
returned. Revenues from this source are expected to be severely impacted for several years.
• Kodiak's general real estate market has been increasing since the late 1980s. The demand for
affordable housing increased with the 2016 closure of a major mobile home park within the
Borough and despite the recent construction of several affordable housing developments, housing
is still a concern. The biggest constraint to the construction of housing is land availability. The
Coast Guard has recently started to build new and renovate current housing in anticipation of
their increased personnel needs. Although Kodiak has begun to see an increase in both sales and
sale prices, the average home cost of $326,000 is about 5% lower than the state average of
$345,000.
• The unemployment rate for the Kodiak Island Borough on June 30, 2022, was 4.3% compared to
6.5% on June 30, 2021. The hiring of seasonal cannery and other fisheries -related workers
traditionally peaks around July and is virtually nothing in December which generally accounts
for seasonal highs and lows in the local unemployment rate. The lower unemployment percentage
in June 2022 reflects the easing of COVID related restrictions and the decrease in supply line
disruptions. The unemployment rate for the State of Alaska on June 30, 2022 was 4.6%.
• Kodiak is home to the largest United States Coast Guard Base (USCG) in the United States
employing around 1,200 people and providing vital services to the marine industries that are an
integral part of Kodiak's make-up. Base Kodiak supports both cutters and aircraft and is
homeport to three ships and contains three hangers that house 15 various aircraft. Future growth
is expected over the next few years and could include four new ships and two new aircraft along
with the necessary increase in personnel and support staff.
27
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KODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
Next Year's Budgets and Rates:
• No change to the Area -wide mill rate.
• Although assessed valuations continue to increase, general fund property tax revenue increases
are limited to new property, property improvements, and changes to the Kodiak area Consumer
Price Index.
• Local contribution funding to the Kodiak Island Borough School District will increase to around
98% of State allowed funding by the borough. With the revenue limitations in place for property
taxes, the increase in school funding will mean a decrease to other areas funded by property tax
revenues.
• Fish revenues from the State and from local sources are projected to stabilize however some
fisheries, such as crab, will 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 does not currently have any plans to issue new bonds and the next opportunity to
refund our existing series will not occur until 2025.
• Landfill user fees are not expected to increase next year even with the expansion of the leachate
treatment plant.
All of these factors were considered in preparing the Borough's budget for the fiscal year 2023.
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.
28
(This page was left blank intentionally.)
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BASIC FINANCIAL STATEMENTS
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KODIAK ISLAND BOROUGH
Statement of Net Position
June 30, 2022
(With summarized financial information for June 30, 2021)
See accompanying notes to financial statements.
29
Component
Prima ry government
unit
Total reporting
entity
Assets and Deferred
Governmental
Business -type
School
Outflows or Resources
activities
activities
Total
District
2022
2021
Equity in central treasury
S 80,095,433
16,488,380
96,583,813
-
96,583,813
94,689,659
Due from primary
government
-
-
-
18,261872
18,261,872
16,281,981
Receivables:
Leases
-
21,776,383
21,776,383
21,776,383
23,769,152
State of Alaska
12,547,411
-
12,547,411
2,368,709
14,916,120
2,557,700
Federal goverment
5,437
-
5,437
-
5,437
92,440
Property taxes, net of
allowance of$ 18,431
229,455
-
229,455
-
229,455
301,076
Severance taxes
365,105
-
365,105
-
365,105
252,855
Excise taxes
268,549
-
268,549
-
268,549
348,643
Interest
264,769
-
264,769
-
264,769
262,717
Land sales contracts
receivable
50,072
-
50,072
-
50,072
60,721
Accounts and other receivables
96,014
480,658
576,672
-
576,672
602,055
Current motion of
notes receivable
-
135,928
135,928
-
135,928
131,260
Inventories
313,444
98,147
411,591
612,369
1,023,960
836,973
Prepaid items
51,838
-
51,838
4,700
56,538
148,478
Restricted cash and equivalents
-
1,329,430
1,329,430
-
1,329,430
1,327,877
Notes receivable
-
880,870
880,870
-
880,870
1,016,798
Capital assets:
Assets to be contributed
-
-
-
-
-
-
Non -depreciable
28,050,798
33,999,032
62,049,830
-
62,049,830
62,638,489
Depreciable, ntt
117,993,227
30,521848
148,515,075
731,632
149,246,707
154,110,013
Net OPEB assets
1751,243
1,325,804
3,077,047
20,667,059
23,744,106
4,124,002
Total assets
242,082,795
107,036,480
349,119,275
42,646,341
391,765,616
363,552,889
Deferred usu lows of resources:
Related to bond refunding
349,985
-
349,985
-
349,985
709,380
Pension said OPEB deferrals
586,495
136,549
723,044
4,378,523
5,101,567
5,794,918
Tote] deferred outflows
ofresources
936,480
136,549
1,073,029
4,378,523
5,451,552
6,504,298
Total assets and defend
outflows ofresources
$2432430275
107 173029
350192304
470248`
397.217.168
370,057,187
Liabilities, Deferred Inflows
of Resources and Net Position
Liabilities:
Accounts payable
8 763,966
332,299
1,096,265
956,420
2,052,685
2,743,408
Accrued compensation
and related liabilities
156,813
-
156,813
2,952,774
3,109,587
3,128,218
Other accrued liabilities
284,137
63,990
348,127
-
348,127
614,734
Customer deposits
1,450
76,267
77,717
-
77,717
109,971
Unearned revenues
3,453,794
217,595
3,671,389
666,239
4,337,628
525,709
Due to component wit
18,261,872
-
18,261,872
-
18,261,872
16,281,981
Noncurrent liabilities:
Due within one year.
Accrued leave
57,750
26,732
84,482
-
84,482
88,118
Notes payable
6,608,955
1,893,715
8,502,670
-
8,502,670
8,806,928
Due in more than one year:
Accrued leave
94,363
125,404
219,767
599,499
819,266
229,924
Notes payable
51,966,107
20,271,885
72,237,992
-
72,237,992
81,579,564
Net pension and OPEB liability
3,051,717
1,195,627
4,247,344
18,843,177
23,090,521
31,191,351
Landfill closure costs
-
7,189,000
7,189'"
-
7,189,000
6,559,000
Total liabilities
84,700,924
31,392,514
116,093,438
24,018,109
140,111,547
151,858,906
Deferred inflows ofresources:
Leases
-
20,815,825
20,815,825
-
20,815,825
23,281,872
Related to bond refunding
150,664
141,542
292,206
-
292,206
481,460
Pension and OPEB deferrals
2,454,394
894,723
3,349,117
22,943,969
26,293,086
3,193,476
Total deferred inflows
of resources
2,605,058
21,852,090
24,457,148
22,943,969
47,401,117
26,956,808
Net position:
Net investment to capital assets
88,558,336
43,543,168
132,101,504
731,632
132,833,136
127,067,019
Restricted
Commerical passenger vessel
47,010
-
47,010
-
47,010
153,535
Student activities
-
-
-
849,364
849,364
738,164
Unrestricted
67,107,947
10,385,257
77,493,204
(1,518,210)
75,974,994
63,282,755
Total net position
155,713,293
53,928,425
209,641,718
62,786
209,704,504
191,241,473
Total liabilities, deferred Inflows
ofresources and net position
S 243,019,275
107.173.029
350,192,304
47,024,864
397,217,168
370.057,187
See accompanying notes to financial statements.
29
Functions/Programs
Primary government
Governmental activities:
General government
Public safety
Community and economic development
Emergency preparedness
Health and social welfare
Education, culture and recreation
Parks and recreation
Service distuct maintenance
Primary and secondary education
Interest on long-term debt
Total governmental activities
Business -type activities:
Municipal solid waste collection and
disposal
Hospital facilities
Long Term Care Center
Kodiak Fisheries Research Center
911 service
Research court apartments
Total business -type activities
Total primary government
Component unit:
School District
KODIAK ISLAND BOROUGH
Statement of Activities
Year ended lune 30, 2022
( With summarized financial information for the year ended Join, 30,202 1)
General revenues.
Property taxes
Grants aad entitlements not restricted to specific programs
Land sales
Severance taxes
Excise taxes
Support from primary government
Investment earnings (loss)
Odmer
Total general revenues
Change in net position
Net position, at beginning ofyear
Net position, at end of year
See accompanying notes to financial statements.
30
17.607,487
-
17,607,487
Program revenues
3,167,723
Net (expense)
revenue and
changes in net position
4,791
-
4,791
-
1,779,042
Operating
1,779,042
Primary government
Component unit
-
683,971
-
Charges for
grants and
Capital
Governmental
Business -type
School
Total reporting entity
Expenses
services
contributions
grants
activities
activities
Total Manatee
2022
2021
12,336,284
691,408
13,027,692
5.435,339
143,377,009
53,237,017
$ 5,348,834
901,717
S 155,713,293
(65,388)
82,810
(4,429,695)
-
(4,429,695) -
(4,429,695)
(4,134,582)
710,205
16,420
11,301
-
(682,484)
-
(682,484) -
(682,484)
(646,674)
877,503
-
(29,641)
543.115
(364,029)
-
(364,029) -
(364,029)
(708,950)
10,983
-
-
-
(10,983)
-
(10,983) -
(10,983)
(5,257)
169,647
-
-
-
(169,647)
-
(169,647) -
(169,647)
(5,257,005)
20,3%
-
-
-
(20.396)
-
(20,396) -
(20,396)
(20,397)
22.125
-
-
-
(22,125)
-
(22,125) -
(22,125)
(19,560)
856,657
27,600
-
-
(829,057)
-
(829,057) -
(829,057)
(620,376)
16,007,893
-
-
-
(16,007,893)
-
(16,007,893) -
(16,007,893)
(15,137,962)
751,860
14,669,216
13,917,356
13,917,356
13,917,356
(1.474,575)
24,776,103
945,737
14,585,488
625,925
(8,618,953)
(8,618,953) -
(8,618,953)
(28,025,338)
3,373,120
4.161,775
(30.724)
-
-
757,931
757.931 -
757,931
495,616
1,115,737
L505,101
-
-
-
389,364
389,366 -
389,364
478,170
670,592
1,370,840
-
-
-
700,248
700,248 -
700,248
(26,048)
1,281,996
950.570
(7,180)
-
-
(338,606)
(338,606) -
(338,606)
(722,909)
301,236
-
-
-
-
(301,236)
(301 236) -
(301,236)
(301,032)
82,581
85,518
1937
2,937
2,937
(7,222)
6,825,262
8,073,804
(37,904)
1,210,638
1,210,638
1,210,638
(83,425)
31,601,365
9.O 1%541
14,547.584
625,925
(8,618,953)
1,210,638
(7,408,315)
(7,408,315)
(28,108,763)
S 44,357,898
37,217
5,915,682
(38,404,999)
(38,404,999)
(37,756,815)
General revenues.
Property taxes
Grants aad entitlements not restricted to specific programs
Land sales
Severance taxes
Excise taxes
Support from primary government
Investment earnings (loss)
Odmer
Total general revenues
Change in net position
Net position, at beginning ofyear
Net position, at end of year
See accompanying notes to financial statements.
30
17.607,487
-
17,607,487
-
3,167,723
-
3,167,723
33,338,907
4,791
-
4,791
-
1,779,042
-
1,779,042
-
683.971
-
683,971
-
-
-
-
10,456,142
(2,822,026)
(836,242)
(3,658,268)
-
534,249
317,012
851,261
45,289
20,955,237
(519,230)
20,436,007
43,840,338
12,336,284
691,408
13,027,692
5.435,339
143,377,009
53,237,017
196614026
(5,372,553)
S 155,713,293
53,928,425
209,641 718
62,786
17,607,487
17,449,358
36,506,630
42,492,340
4,791
10,118
L77%042
1,100.413
683,971
702,142
10.456,142
9,390,089
(3,658,268)
227,394
896,550
920,978
64,276,345
72,292,832
18.463.031
6.427.254
�i2RzncrJr�Erlaurw
209.704,504 191,241,473
KODIAK ISLAND BOROUGH I
Balance Sheet
Governmental Funds
June 30, 2022
(With summarized financial information for June 30, 202 1)
See accompanying notes to financial statements.
State Capital
Special Revenue Funds
Education
Grants
Other
Education
Debt Service
Capital Project
Governmental
Totals
Assem
General
Support
Facilities
Fund
Fund
Funds
2022
2021
Assets:
Equity in central treasury $
7,588.264
18.303,949
37,272,517
-
3,611,892
13,318,811
80,095,433
76.392,342
Receivables:
State of Alaska
19,246
-
-
12,528,165
-
-
12,547,411
145,811
Federal government
-
-
-
-
5,437
-
5,437
92,440
Property taxes, net of
allowance of$] 8.431
57,011
122,328
-
29,114
-
21,002
229,455
301,076
Severance taxes
365,105
-
-
-
-
-
365,105
252,855
Excise tones
268,549
-
-
-
-
-
268,549
348,643
Interest
264,769
-
-
-
-
-
264,769
262,717
Land sales contracts, due within one year
-
-
-
-
-
11,015
11,015
9,897
Accounts and other receivables
59,193
-
-
-
-
36.821
96,014
104,034
Prepaid items
45,790
-
-
-
-
6,048
51,838
33,149
Due from KIBSD
-
-
-
-
-
313,444
313,444
-
Due from other funds
23,189
-
-
-
-
-
23,189
6,778
Land sales contracts, due after one year
39,057
39,057
50,824
Total assets S
8.691,116
18,426,277
37,272,517
12,557,279
3,617.329
13,746,198
94,310.716
78.000,566
Liabilities. Deferred Inflows of Resources,
and Fund Balances
Liabilities.
Accounts payable
171,691
35,047
-
-
3,720
553,508
763,966
334,491
Accrued compensation
and related liabilities
156,813
-
-
-
-
-
156,813
165,213
Customer deposits
-
-
-
-
-
1,450
1,450
1,000
Due to component unit
-
18,261,872
-
-
-
-
18,261,872
16,281,981
Due to other funds
-
-
-
23,189
-
-
23,189
6,778
Unearned revenues
54,777
168,915
43,212
3,170,382
16,508
3,453,794
48,872
Total liabilities
383,281
18,465,834
66,401
3,174,102
571,466
22,661,084
16,838,335
Deferred inflows of resources -
Unavailable revenues
57,016
117,876
27,702
70,994
273,588
332.187
Total liabilities and deferred
inflows ofresources
440,297
18,583,710
94,103
3,174,102
642,460
22.934,672
17,170,522
Fund balances:
Nonspendable
45,790
-
-
-
-
6,048
51,838
33,149
ResMcted
-
-
-
-
-
47,010
47,010
153,535
Committed
-
-
37,272,517
12.463,176
-
4,844,771
54,580,464
46,360,958
Assigned
-
-
-
-
443,227
8,206,893
8,650,120
6,828,331
Unassi6med
8,205,029
(157,433)
-
-
-
(984)
8,046,612
7,454,071
Total fund balances
8,250.819
(157,433)
37,272,517
12,463,176
443,227
13,103,738
71,376,044
60,830,044
Total liabilities, deferred inflows
ofresomces and fond balances $
8.691,116
18,426,277
37,272,517
12.557,279
3,617,329
13,746,198
94,310,716
78,000.566
See accompanying notes to financial statements.
KODIAK ISLAND BOROUGH
Reconciliation of Net Position Between the
Government -Wide Financial Statements and the Fund Financial Statements
June 30, 2022
Amount reported as fund balances on the governmental funds balance sheet $ 71,376,044
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. 146,044,025
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 $ 223,516
Notes receivable - land sales 50,072 273,588
Long-term liabilities, including bonds payable, are not due and
payable in the current period and therefore are not reported
in the funds:
General obligation bonds payable
(55,890,000)
Bond premium
(2,685,062)
Deferred outflow - bond premium
349,985
Deferred inflow - bond premium
(150,664)
Accrued interest expense
(284,137)
Compensated absences
(152,113)
(58,811,991)
Deferred outflows of resources represent costs applicable to future
periods, and therefore are not reported in the governmental funds:
Deferred outflows related to pension and OPEB assets
586,495
Deferred inflows of resources represent resources or benefits
applicable to future periods, and therefore are not reported in the
governmental funds:
Deferred inflows related to pension and OPEB liabilities
(2,454,394)
Proportionate share of the collective OPEB assets
1,751,243
Proportionate share of the collective net pension liabilities
(3,051,717)
Net position of governmental activities $ 155,713,293
See accompanying notes to financial statements.
32
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KODIAK ISLAND BOROUGH
Statement of Revenues, Expenditures and Changes
in Fond Balances
Governmental Funds
Year ended June 30, 2022
(With summarized financial information for the year ended June 30, 2021)
See accompanying notes to financial statements.
L
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L 33
State Capital
Special Revenue
Funds
Education
Grants
Other
Education
Debt Service
Capital Projeel
Governmental
Tmols
General
Support
Facilities
Fund
Fund
Funds
2022
2021
Revenues
Property taxes and assessments
E 3,448,574
10,244,935
-
2,415,377
-
1,546,551
17,655,437
17,445,434
Transient accommodations tax
-
-
-
-
-
101,447
101,447
50,983
Severance taxes
1,677,595
-
-
-
-
-
1,677,595
1,049,430
Excise taxes
683,971
-
-
-
-
-
683,971
702,142
Intergovernmental.
State sources
1,474,878
-
-
14,669,216
-
7,899
16,151,993
1912,028
Federal sources
1,853,087
-
-
-
549,843
89,103
2,492,033
7,524,840
Charges for services
775
-
-
-
-
839,987
840,762
878,368
Licenses, permits and fees
62,975
-
-
-
-
33,600
96,575
110,590
Investment memo (loss)
(371,295)
-
(2,108,392)
-
-
(342,339)
(2,822,026)
188,577
Rental
-
-
-
-
-
8,400
8,400
13,450
Other
841
2,577
530,831
534,249
361,066
Total revenues
8,831401
10,24,935
(2,108,392)
17,084,593
552,420
2,815,479
37,420,436
30,236,908
Expenditures.
Current
General government
4,322,408
-
-
6,990
-
687,676
5,017,074
4,995,157
Public safety
121,000
-
-
-
-
422,862
543,862
546,055
Community and
economic development
734,635
-
-
-
551,514
228,300
1,514,449
907,656
Emergency preparedness
10,983
-
-
-
-
-
10,983
5,257
Health and social welfare
169,647
-
-
-
-
-
169,647
5,257,005
Education, culture
andrecreation
20,396
-
-
-
-
-
20,396
20,397
Parks and recreation
22,125
-
-
-
-
-
22,125
19,560
Service distract maintenance
-
-
-
-
-
856,657
856,657
647,976
Pommy and secondary education
63,412
10,458,099
-
-
-
-
10,521,511
9,443,364
Capital outlay:
Sehools
-
-
-
-
-
137,568
137,568
367,008
General
-
-
-
-
-
516,580
516,580
803,272
Community development
-
-
-
-
-
-
-
25,540
Debt service.
Principal
-
-
-
5,840,000
-
-
5,840,000
4,850,000
Interest
-
-
-
1,719,024
-
-
1,719,024
2,986,372
Debt issuance casts
251,851
Total expenditures
5,464,606
10458,099
7,566,014
551,514
2,849,643
26,889,876
31,126,470
Excess (deficiency) of revenues
over expendibme
3,366,795
(213,164)
(2,108,392)
9,518,579
906
(34,164)
10,530,560
(889,562)
Other financing sources (uses).
Land sale proceeds
-
-
-
-
-
15,440
15,410
62,805
Proceeds from issuance ofrefundmg debt
-
-
-
-
-
-
-
37,350,000
Premium on refunding debt
-
-
-
-
-
-
-
857,176
Payment to bond refunding escrow agent
-
-
-
-
-
-
-
(37,981,510)
Proceeds from issuance of debt
-
-
-
-
-
-
-
2,684,069
Transfers in
-
-
-
2,303,196
-
1,987,389
4,290,585
5,700,165
Transfers out
(2,603,196)
(544,389)
(1,143,000)
(4,290,585)
(5,700,165)
Net other financing
sources (uses)
(2,603,196)
(54,389)
2,303,196
859,829
15,440
2,972,540
Change in fwd balances
763,599
(213,164)
(2,652,781)
11,821,775
906
825,665
10,546,000
2,082,978
Fund balances, at beginning ofyear
7,487,220
55,731
39,925,298
641,401
442,321
12,278,073
60,830,044
58,747,066
Fwd balances (deficit), at end ofyear
E 8,250,819
(157,433)
37,272517
12,463,176
413,227
13103,738
71376,044
6(1830,044
See accompanying notes to financial statements.
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L 33
KODIAK ISLAND BOROUGH
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
of Governmental Funds to the Statement of Activities
Year ended June 30, 2022
Change in fund balances — total governmental funds $ 10,546,000
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
23,246
is allocated over their estimated useful lives and reported as
depreciation expense:
1,156,236
Capital outlay
$ 657,041
Depreciation expense
(6,212,754) (5,555,713)
Certain revenues in the statement of activities do not provide
277,582
current financial resources and are reported as unearned or
(153,084)
unavailable revenues in the funds:
(1,932,844) 597,432
Property tax
223,516
Land sale proceeds
50,072 273,588
Certain revenues that were earned in a prior year provide
current financial resources:
Accrued property tax
(271,466)
Land sale contracts
(60,721) (332,187)
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 242,206
Principal repayments 5,840,000
Bond premium amortization 724,958 6,807,164
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
23,246
Change in the proportionate share of the collective
net pension liabilities
1,156,236
Change in the proportionate share of the collective OPEB assets
1,428,780
Change in deferred outflows related to bond refunding
(202,484)
Change in deferred inflows related to bond refunding
277,582
Change in deferred outflows related to pension and OPEB
(153,084)
Change in deferred inflows related to pension and OPEB
(1,932,844) 597,432
Change in net position of governmental activities
$ 12,336,284
See accompanying notes to financial statements.
34
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KODIAK ISLAND BOROUGH
Statement of Net Position
Proprietary Fonds - Business -Type Activities - Enterprise Fonds
lune 30, 2022
(With summarized financial information for Jure 30, 2021)
See accompanying notes to financial statements.
35
Municipal
Kodiak
Other
Solid Waste
Fisheries
Noamajor
Assets and Deferred
Collection end
Hospital
Long Term
Research
Enterprise
Totals
Outflows of Be sources
Disposal
Facilities
Care Center
Center
Funds
2022
2021
Current assets:
Equity in central treasury
S 6,664,108
4,646,054
2,390,821
2,629,887
157,510
16,488,380
18,297,317
Receivables.
Customers
387,456
-
-
55,429
37,773
480,658
498,021
Leases
-
6,112,796
8,965,827
6,697,760
-
21,776,383
23,769,152
Current portion ofnote receivable
135,928
135,928
131,260
Total current as sets
7,051564
10,758650
11,356,648
9,519,004
195,283
38,881,349
42,695,750
Restricted cash and equivalents
312,849
-
1016,581
-
-
1329,430
1327,877
Inventories
98,147
-
-
-
-
98,147
154,265
Capitol assets:
Non -depreciable
30,885,755
2,856,252
66,388
190,637
-
33,999,032
32931646
Depreciable, net
2,629,838
9,336,283
1241/144
5,906,117
238,466
30,521848
31434,003
Total capital assets
33,515,593
12,192535
12,477,532
6,096,754
238,466
64,520,880
64,365649
Notes receivable
-
-
-
880,870
-
880,870
1,016,798
Net pension and OPEB assets
438,328
887,476
1,325,804
110,839
Total noncurrent assets
34,364917
12,192,535
13,494,113
7,865,100
238,466
68,155,131
66,975,428
Deferred ou0lows of.a.unces
Related to bond refunding
-
-
-
-
-
-
156,911
Pension and OPEB deferrals
86,771
49,778
136,549
196,525
Total deferred outflows of resources
86,771
49,778
136,549
353,436
Total assets and deferred
outflows of resources
$ 41503,252
22,951385
24,850,761
17,433,882
433,749
107,173,029
IIO,O24,614
Liabilities, Deferred Inflows
of Resources and Net Position
Current liabilities
Accounts payable
S 172,668
175
-
40,949
118,507
332,299
685,944
Customer deposi¢
1,959
-
-
66,655
7,653
76,267
108,971
Current portion of accrued
-
compensation and related liabilities
23,480
-
-
3,252
-
26,732
26,914
Unearned revenues
-
115,356
96,969
15,270
-
217,595
220,097
Interest Payable
52,169
-
11 ,821
-
-
63,990
88,391
Current portion of notes and bonds payable
1120,905
-
]]2,810
-
-
1893,715
2,125,926
Total current liabilities
1,371,181
115,531
871,600
126,126
126,160
2,610598
3,256,243
Noncurrent liabilities:
Accrued compensation and
related liabilities
95,259
-
-
30,145
-
125404
115,769
Notes and bonds payable
12,426,885
-
7,845,"
-
-
20,271885
22,390,600
Accrual for landfill closure
and posrclosure costs
7,189,000
-
-
-
-
7,189,000
6,559,000
Net pension and OPEB liability
226,383
969,244
1,195,627
993,442
Total noncurrent liabilities
19,937,527
-],845,000
999,389
28,]81 916
30,058,811
Total liabilities
21 308,708
115,531
8,716,600
1,125,515
126,160
31 392,514
33315,054
Deferred inflows of resources.
Leases
-
5,854,040
8,608360
6,353,425
-
20,815,825
23,281,872
Related to bond refunding
-
-
141,542
-
-
141,542
53,214
Pension and OPEB deferrals
724,291
-
-
170,432
-
894,723
137,457
Total deferred inflows ofresources
724,291
5,854,040
8,749,902
6,523,857
21,852,090
23472,543
Net position:
Net investment in capital assets
20,280,652
12,192,535
4,734,761
6,096,754
238,466
43,543,168
39,849,123
Unrestricted
(810,399)
4,789,279
2649498
3,687756
69,123
10,385,257
13,387,894
Total net position
19,470,253
16,981,814
7,384,259
9,784,510
307,589
53,928,425
53,237,017
Total liabilities, deferred inflows
ofresmaces and net position
S 41,503,252
22,951,385
24850761
17433882
433,749
107,173,029
110,024,614
See accompanying notes to financial statements.
35
KODIAK ISLAND BOROUGH
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds - Business - Type Activities -Enterprise Funds
Year ended lune 30, 2022
( With summarized financial information for the year ended Jane 30, 202 1)
See accompanying notes to financial statements.
36
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonmalor
Collection and
Hospital
Long Term
Research
Enterprise
Totals
Disposal
Facilities
Care Center
Center
Funds
2022
2021
Operating revenues:
Charges for services:
Solid waste disposal
S 4,161,775
4,161,775
4,061,604
Lease income
-
1,170,808
765,187
566,410
85,518
2,587,923
2,328,257
Interest revenue
-
334,293
605,653
384,160
-
1,324,106
1,199,267
Other
11,846
3,677
301,489
317,012
385,323
Total operating revenues
4,173,621
1,505,101
1,370,840
954,247
387,007
8,390,816
7,974,451
Operating expenses:
Personnel services
1,076,559
54,890
3,303
172,034
9,335
1,316,121
1,262,233
Contracted services
291,090
120
3,848
-
-
295,058
419,958
Maintenance and repairs
121,024
634
362
7,486
-
129,506
195,374
Depreciation
171,026
1,060,093
518,933
695,985
34,067
2,480,104
2,579,675
General and administration
406,311
-
32,655
352,961
34,747
826,674
894,011
Miscellaneous
-
-
-
53,530
6,209
59,739
83,504
Telephone services
-
-
-
-
299,459
299,459
299,204
Recycling services
310,560
310,560
297,335
Closure and postclosure costs
687,590
-
-
-
-
687,590
805,773
Contributions
182,639
182,639
210,084
Total operating expenses
3,246,799
1,115,737
559,101
1,281 996
383,817
6,587,450
7,047,151
Operating income (loss)
926,822
389,364
811,739
(327,749)
3,190
1,803,366
927,300
Nonoperaling revenues(expensest
Intergovernmental:
State of Alaska
(30,724)
-
-
(7,180)
-
(37,904)
45,918
Federal sources
-
-
-
-
-
-
6,040
Investment inceme
(409,066)
(147,331)
(161,880)
(113,816)
(4,149)
(836,242)
38,817
Bond issuance costs
-
-
-
-
-
-
(73,875)
Interest revenue
-
-
-
-
-
-
88
In rest expense
(126,321)
(111,491)
(237,812)
(560,887)
Total nonopem6ng(expenses)
(566,111)
(147331)
(273,371)
(120,996)
(4,149)
(1,111 958)
(543,899)
Income (loss) before transfers
360,711
242,033
538,368
(448,745)
(959)
691,408
383,401
Transfers in
-
-
-
-
-
-
85,000
Transfers out
(85,000)
Change in net position
360,711
242,033
538,368
(448,745)
(959)
691,408
383,401
Net position, at beginning ofyear
19,109,542
16,739,781
6,845,891
10,233,255
308,548
53,237,017
52,853,616
Net position, mend ofyear
S 19,470,253
16,981814
7,384,259
9,784,510
307,589
53928,425
53,237,017
See accompanying notes to financial statements.
36
rKODIAK
ISLAND
BOROUGH
Statement of Cash Flows
Proprietary Funds
- Business - Type
Activities - Enterprise Funds
Year ended June
30, 2022
( With summarized financial information
for the year ended June
30, 2021)
Municipal
Solid Waste
Kodiak
Other
Collection
Long Term
Fisheries
Nonmajor
and
Hospital
Can
Research
Enterprise
Totals
Disposal
Facilities
Center
Center
Funds
2022
2021
Cash flows from operating activities:
f
Cash received from customers
S 4,187,814
1,384,271
1,950,361
1,412,417
391,331
9,326,194
7,896,294
Payments to suppliers
(1,385,734)
(319,583)
(523,515)
(934,629)
(345,291)
(3,508,752)
(2,278,347)
Payments to employees
(1,255,911)
(54,890)
(3,303)
(216,671)
(9,335)
(1,540,110)
(1,445,103)
Net cash provided by operating activities
1,546,169
1,009,798
1,423,543
261,117
36,705
4,277,332
4,172,844
Cash flows from noncapital financing activities:
Federal sources -grants
-
-
-
-
-
-
6,040
Net change in interfund receivable/payable
(72,757)
Net cash (used) by noncapital
financing activities
(66,717)
Cash flows from capital and related
financing activities:
Acquisition and construction ofcapital assets
(666,859)
(1,834,538)
(24,992)
(108,946)
-
(2,635,335)
(1,275,417)
Interest paid on notes and bonds payable=
(114,736)
(114,736)
(589,347)
Issuance of refunding bond payable
(147,477)
_
_
_
(147,477)
9,505,994
Refunding band issuance costs
(73,875)
Refunding of revenue bonds
(9,243,035)
Principal payments on notes and bonds payable
(1,163,116)
-
(1,187,810)
-
-
(2,350,926)
(1,855,142)
Net cash (used) by capital and
related financing activities
(1,977,452)
(1,834,538)
(1,327,538)
(108,946)
-
(5,248,474)
(3,530,822)
Cash flows Joan investing activities:
Interest and dividends received
(409,066)
(147,331)
(161,880)
(113,816)
(4,149)
(836,242)
81,503
Net change in cash and
cash equivalents
(840,349)
(972,071)
(65,875)
38,355
32,556
(1,807,384)
656,808
Cash and equivalents, at beginning of year
7,817,306
5,618,125
3,473,277
2,591,532
124,954
19,625,194
18,968,386
Cash and equivalents, at end of year
$ 6,976,957
4,646,054
3,407,402
2,629,887
157,510
17,817,810
19,625,194
Reconciliation of cash and cash equivalents
to the Statement of Net Position:
Equity in central treasury
$ 6,664,108
4,646,054
2,390,821
2,629.887
157,510
16,488,380
18,297,317
Restricted cash and equivalents
312,849
1016,581
1,329,430
1,327,877
S 6,976,957
4,646,054
3,407,402
2,629,887
157,510
17,817,810
19,625,194
Reconciliation of operating income(loss)to net
cash provided by operating activities:
Operating income (loss)
$ 926,822
389,364
811,739
(327,749)
3,190
1,803,366
927,300
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation
171,026
1,060,093
518,933
695,985
34,067
2,480,104
2,579,675
Noncash State PERS on -behalf payments
(30,724)
-
-
(7,180)
-
(37,904)
45,918
Closure and postclosure costs
630,000
630,000
580,000
Changes in assets and liabilities that
provided (used) cash:
(Increase) decrease in assets and deferred
outflows of resources:
Customer receivables
18,193
(2)
6,825
25,016
224,395
Lease receivable
-
1,049,978
579,521
363,269
-
1,992,768
25,482,941
L
Inventories
56,118
56,118
225,773
Notes receivable
131,260
131,260
126,751
Net pension and OPEB assets
(348,937)
-
-
(866,028)
-
(1,214,965)
(110,839)
Deferred outflow of resources:
Related to bond refundings
-
-
156,911-
156,911
(156,911)
Pension and OPEB
48,620
11,356
=
59,976
29,210
Increase (decrease) in liabilities and
deferred inflows of resources
Accounts payable
(19,424)
(318,829)
(19,917)
9,401
(4,876)
(353,645)
278,034
Customer deposits
(4,000)
(36,357)
(40,357)
99,512
Accrued compensation
9,886
_
_
(433)
_
9,453
23,952
Unearned revenues
(2,501)
(2,501)
1,063
Net pension and COPED liabilities
(472,080)
-
-
674,265
-
202,185
(284,704)
Deferred inflow of resources:
Related to bond refundings
(53,214)
-
141,542
-
-
88,328
53,214
LPension
and OPEB
613,883
143,383
757,266
60,379
Leases
-
(1,170,808)
(765,186)
(530,053)
-
(2,466,047)
(26012,819)
Net cash provided by operating activities
S 1,546,169
1,009,798
1,423,543
261,117
36,705
4,277,332
4,172,844
LSee
accompanying notes to financial statements
L 37
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements
Year Ended June 30, 2022
(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, 2021.
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.
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.
38
CKODIAK ISLAND BOROUGH
rNotes to Basic Financial Statements, Continued
t
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
r separate columns in the fund financial statements.
Deferred inflows of resources are the acquisition of fund balance / net assets by the Borough that are
applicable to a future reporting period. Deferred outflows of resources are the consumption of fund
balance / net assets 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
t 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.
�- The government reports the following major governmental funds:
L 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 State Capital Grants Capital Project Fund accounts for capital improvement projects relating
to grants received from the State of Alaska.
L 39
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
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.
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.
40
I
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G
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II
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I
rKODIAK ISLAND BOROUGH
Ir Notes to Basic Financial Statements, Continued
0
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.
1 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
lr 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.
Leases
` The Borough is a lessor for non -cancellable leases and recognizes a lease receivable and a deferred
inflow of resources in the financial statements. At the commencement of a lease, the Borough initially
measures the lease receivable at the present value of payments expected to be received during the lease
term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received.
The deferred inflow of resources is initially measured as the initial amount of the lease receivable,
adjusted for lease payments received at or before the lease commencement date. Subsequently, the
deferred inflow of resources is recognized as revenue over the life of the lease term.
L 41
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
Key estimates and judgments include how the Borough determines (1) the discount rate it uses to
discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
a. The Borough uses its current borrowing rate as the discount rate for leases.
b. The lease term includes the non -cancellable period of the lease; the term of the lease contract,
including options to extend, must be more than 12 months. Lease receipts included in the
measurement of the lease receivable is composed of fixed payments from the lessee.
The Borough monitors changes in circumstances that would require a remeasurement of its leases and
will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are
expected to significantly affect the amount of the lease receivable.
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.
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
42
t
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
r
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
r
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.
rLong-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
Cpremium 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
r while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
i1 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.
Pension and Other Postemployment Benefits (OPEB)
For purposes of measuring the net pension and OPEB assets and 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
E 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.
L43
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
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.
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.
44
1 KODIAK ISLAND BOROUGH
F
Notes to Basic Financial Statements, Continued
1
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.
r (e) Revenues, Expenditures, and Expenses
t 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 1 st.
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.
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 FY2022 the Borough set a mill rate of 2.11 mills for
the General Fund, 6.99 mills for the Education Support Special Revenue Fund, and 1.65 mills for the
Education Debt Service Fund, for a total area wide mill rate of 10.75. This was the same total area
wide mill rate as FY2021.
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.
L45
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
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.
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 Tenn Care Center Fund, Kodiak
Fisheries Research Center Fund, and 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.
46
r
r
r
r
r
r
r
I
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
Other local revenues are recorded on a basis consistent with their nature in relation to measurement
and availability standards.
(n 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.
(2) Stewardship, Compliance, and Accountability
(a) Excess of Expenditures over Appropriations
The following fund expenditures or operating expenses exceeded their budget:
Fund
Special Revenue Funds:
Education Support $
Fire and Road Service Areas — Womens Bay
Roads Service Area
Land Sales
Woodland Acres Street Light Service Area
Enterprise Fund:
Hospital Facilities
Kodiak Fisheries Research Center
911 Service
Research Court Apartments
These excesses were funded by available fund balance or net position.
47
Excess
2,855
32,430
2,024
83
13,097
283,196
6,236
2,947
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
(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.
As of June 30, 2022, the Borough had the following investments:
Investments measured at amortized cost:
Alaska Municipal League
Investment Pool
Certificates of Deposit
Money Market Funds
Total investments
3,535,524
707,340
2,172,084
6,414,948
$ 92,271,830
In addition to the investments listed above, Kodiak Island Borough also had cash equivalents of $5,641,413
which includes restricted cash of $1,329,430.
48
Investment Maturities (in
years)
Fair
Less
Investment Type
Value
than 1
1 to 5
6+
U.S. Agency Securities:
Federal Home Loan Bank
$ 41,528,103
2,967,580
38,560,523
-
Federal Home Loan
Mortgage Corporation
6,657,520
977,590
5,679,930
-
Federal Farm Credit Bank
22,576,472
4,942,500
16,709,962
924,010
Federal Agriculture
Mortgage Corporation
4,287,545
499,035
3,788,510
-
Federal National Mortgage
Association
999,530
999,530
-
Corporate Obligations
937,010
-
937,010
-
Municipal Obligations
8,870,702
2,260,503
4,262,311
2,347,888
$ 85,856,882
12,646,738
69,938,246
3,271,898
Investments measured at amortized cost:
Alaska Municipal League
Investment Pool
Certificates of Deposit
Money Market Funds
Total investments
3,535,524
707,340
2,172,084
6,414,948
$ 92,271,830
In addition to the investments listed above, Kodiak Island Borough also had cash equivalents of $5,641,413
which includes restricted cash of $1,329,430.
48
1 KODIAK ISLAND BOROUGH
rNotes to Basic Financial Statements, Continued
I
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, 2022:
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, 2022, the Borough's investments in municipal obligations, U.S. Government agencies or
instruments implicitly guaranteed by the U.S. Government, and corporate obligations were rated as follows:
Moody's
AAA 72%
AA2 1 %
AA3 5%
AA+ 5%
S&P — AAA 4%
S&P — AAAm 4%
Not Rated 9%
100%
L49
Investments by fair value level:
Total Level
Level Level
Debt securities:
U.S. Agency Securities
$ 76,049,170 76,049,170
- -
Corporate Obligation
937,010
937,010
Municipal Obligations
8,870,702 -
8,870,702 -
Total investments at fair
value level
$ 85,856,882 76,049,170
9,807,712
Investments measured at amortized cost:
Alaska Municipal League
Investment Pool
3,535,524
Money Market
2,172,084
1
1
Certificates of Deposit
707,340
Total investments
$ 92,271,830
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, 2022, the Borough's investments in municipal obligations, U.S. Government agencies or
instruments implicitly guaranteed by the U.S. Government, and corporate obligations were rated as follows:
Moody's
AAA 72%
AA2 1 %
AA3 5%
AA+ 5%
S&P — AAA 4%
S&P — AAAm 4%
Not Rated 9%
100%
L49
(4)
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
At June 30, 2022, 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, 2022,
the Borough had 82% percent of its investments in U.S. Government Agency Securities and U.S. Treasury
Notes and 10% 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, 2022.
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.
The remainder of this page left blank intentionally.
50
r
IC
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements,
Continued
(5) Receivables
�"
Governmental Funds
IR
Education
Education
State Capital
Other
General
Support Special
Debt
Grants Capital
Governmental
Fund
Revenue Fund
Service Fund
Project Fund
Funds
Receivables:
Leases
$
Grants
Taxes
19,246
709,096
—
122,328
12,528,165
29,114
5,437
—
21,002
Interest
264,769
—
—
—
—
Customers and other
59,193—
36,821
Notes receivable
—
—
50,072
Gross receivables
1,052,304
122,328
12,557,279
5,437
107,895
Less: allowance
for uncollectibles
(18,431)
Net total receivables
$
1,033,873
122.328
12,557,279
5,437
107,895
Governmental
Funds
Enterprise Funds
Municipal
Kodiak
Total
Solid Waste
Fisheries
Governmental
Collection
Hospital
Long Term
Research
Funds
and Disposal
Facilities
Care Center
Center
Receivables:
Leases
$
—
—
6.112.796
8,965,827
6,697,760
Grants
12,552,848
—
—
—
—
Taxes
881,540
Interest
264,769
Customers and other
96,014
387,456
—
55,429
Notes receivable
50,072
1,016,798
Y
Gross receivables
13,845,243
387,456
6,112,796
8,965,827
7,769,987
Less: allowance
for uncollectibles
(18,431)
Net total receivables
$
13,826,812
387,456
6,112,796
8,965,827
7,769,987
Enterprise Funds
Other
Nonmajor
Total
Total
Enterprise
Enterprise
Primary
Fund
Funds
Government
Receivables:
Leases
$
21,776,383
21,776,383
Grants
12,552,848
Taxes
Interest
—
—
881,540
264,769
Customers and other
37,773
480,658
576,672
Notes receivable
—
1,016,798
1,066,870
Gross receivables
37,773
23,273,839
37,119,082
Less: allowance
for uncollectibles
(18,431)
Net total receivables
$
37,77323,273,839
37,100,651
51
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
(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, 2022, the principal balance due is $1,016,798 and the principal amount due within one year
is $135,928. 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, 2022, 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 $ 223,516 223,516
Unavailable land sales receivable 50,072 - 50,072
Grant advances prior to expending all proceeds - 3,453,794 3,453,794
Total unavailable/unearned revenue
for governmental funds $ 2U,5_8 3.453.794 3 73 7. 27.382
The remainder of this page left blank intentionally.
52
r
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
(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, 2022 was as follows:
Beginning Increase/ Ending
Balance Transfers Decrease Balance
Governmental activities:
Capital assets, not being depreciated
Land $ 22,752,807 - 22,752,807
( Construction work -in -progress 6,954,036 657,041 (2,313,086) 5,297,991
l Total 29,706,843 657,041 (2,313,086) 28,050,798
r
Capital assets, being depreciated:
Buildings and improvements
Improvements other than
buildings
Equipment
Infrastructure
Total
Less accumulated depreciation for:
Buildings and improvements
Improvements other than
buildings
Equipment
Infrastructure
Total
Total capital assets
being depreciated, net
Total governmental
activities, net
195,583,696
195,583,696
29,704,008 2,313,086
32,017,094
4,081,875 -
(24,997) 4,056,878
5,762,722
5,762,722
235,132,301 2,313,086
(24,997) 237,420,390
88,174,021 4,285,724
16,618,084
1,669,770
2,950,309
181,337
5,496,992
75,923
113,239,406
6,212,754
121,892,895 (3,899,668)
92,459,745
18,287,854
(24,997) 3,106,649
5,572,915
(24,997) 119,427,163
117,993,227
$ 151,599,738 (3,242,627) (2,313,086) 146,044,025
L53
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
Business -type activities:
Municipal Solid Waste Collection
and Disposal Fund capital assets,
not being depreciated
Land
Construction work -in -progress
Total
Capital assets, being depreciated:
Unclassified utility plant in
service
Improvements other than
buildings
Machinery and equipment
Total
Less accumulated depreciation for:
Unclassified utility plant in
service
Improvements other than
buildings
Machinery and equipment
Total
Total capital assets
being depreciated, net
Total Municipal Solid
Waste Collection and
Disposal Fund, net
Beginning Increase/
Balance Transfers Decrease
Ending
Balance
C
1,505,851 42,055 1,547,906 Q
2,626,187 61,081 2,687,268
1,828,953 67,890 (14,912) 1,881,931
5,960,991 171,026 (14,912) 6,117,105
1,753,959 875,879 2,629,838
$ 33,019,760 1,542,738 (1,046,905) 33,515,593
T
C'
It
F
1
54 0
0
$ 1,651,248
-
1,651,248
29,614,553
666,859
(1,046,905)
29,234,507
31,265,801
666,859
(1,046,905)
30,885,755
a
2,178,733
-
2,178,733
n
3,225,420
1,046,905
4,272,325
U
2,310,797
-
(14,912)
2,295,885
7,714,950
1,046,905
(14,912)
8,746,943
1,505,851 42,055 1,547,906 Q
2,626,187 61,081 2,687,268
1,828,953 67,890 (14,912) 1,881,931
5,960,991 171,026 (14,912) 6,117,105
1,753,959 875,879 2,629,838
$ 33,019,760 1,542,738 (1,046,905) 33,515,593
T
C'
It
F
1
54 0
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
995,372
1,834,538 -
2,829,910
Total
1,021,714
1,834,538 -
2,856,252
Capital assets, being depreciated:
Buildings
33,100,284
- -
33,100,284
Improvements other than
buildings
401,046
- -
401,046
Machinery and equipment
3,632,024
-
3,632,024
Total
37,133,354
- -
37,133,354
Less accumulated depreciation for:
Buildings
22,859,551
1,043,761 -
23,903,312
Improvements other than
buildings
300,566
12,560 -
313,126
Machinery and equipment
3,576,861
3,772 -
3,580,633
Total
26,736,978
1,060,093 -
27,797,071
Total capital assets
being depreciated, net
10,396,376
(1,060,093)
9,336,283
Total Hospital Facilities
Fund, net
$
11,418,090
774,445 -
12,192,535
Long Term Care Center Fund:
Capital assets, not being depreciated
Construction in progress
$
41,396
24,992 -
66,388
Capital assets, being depreciated:
Buildings
15,567,986
- -
15,567,986
Less accumulated depreciation for:
Buildings
2,637,909
518,933 -
3,156,842
Total capital assets
being depreciated
12,930,077
(518,933) -
12,411,144
Total Long Term Care
Fund, net
$
12,971,473
(493,941) -
12,477,532
55
KODIAK ISLAND BOROUGH
C
Notes to Basic Financial Statements, Continued
Beginning Increase/ Ending
Balance Transfers Decrease Balance
Kodiak Fisheries Research Center Fund:
Capital assets, not being depreciated
Construction in progress $ 602,735 108,946 (521,044) 190,637 n
Li
Capital assets, being depreciated:
Buildings
Improvements other than
buildings
Machinery and equipment
Total
Less accumulated depreciation for:
Buildings
Improvements other than
buildings
Machinery and equipment
Total
Total capital assets
being depreciated, net
Total Kodiak Fisheries
Research Center Fund,
net
Research Court Apartments Fund:
Capital assets being depreciated:
Buildings
Less accumulated depreciation:
Buildings
Total Research Court
Apartments Fund
17,840,410
1,363,502 521,044
1,501,764 -
20,705,676 521,044
- 17,840,410
- 1,884,546
- 1,50L764fl
- 21,226,720
13,081,206 594,679 13,675,885 a
353,115
69,897
1,190,297
31,409
14,624,618
695,985
6,081,058 (174,941)
- 423,012
- 1,221,706
- 15,320,603
5,906 117
$ 6,683,793 (65.995) (521.044) 6,096,754 a
a
$ 1,021,998 1,021,998
a
749,465 34,067 783,532
U
$ 272,533 (34,067) 238,466 a
I
I
I
56 0
Ir
Ir
V1
I
r
C
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
Total business -type activities:
Capital assets, not being depreciated:
Artwork
Land
Construction work -in -progress
Total
Capital assets, being depreciated:
Unclassified utility plant in service
Buildings
Improvements other than buildings
Machinery and equipment
Total
Less accumulated depreciation for:
Unclassified utility plant in service
Buildings
Improvements other than buildings
Machinery and equipment
Total
Total capital assets
being depreciated, net
Total business -type
activities, net
Beginning
Increase/
Ending
Balance
Transfers
Decrease
Balance
$ 16,091
16,091
1,661,499
-
1,661,495
31,254,056
2,635,335
(1,567,949)
32,321,44:
32,931,646
2,635,335
(1,567,949)
33,999,03:
2,178,733
-
2,178,73-
67,530,678
-
67,530,671
4,989,968
1,567,949
6,557,91'
7,444,585
(14,912)
7,429,67:
82,143,964
1,567,949
(14,912)
83,697,009
1,505,851
42,055
1,547,901
39,328,131
2,191,440
41,519,57
3,279,868
143,538
3,423,401
6,596,111
103,071
(14,912)
6,684,271
50,709,961
2,480,104
(14,912)
53,175,15:
31,434,003
(912,155)
30,521,841
$ 64,365,649
1,723,180
(1,567,949)
64,520,881
Depreciation expense was charged to the departments and functions of the primary government as
follows:
Governmental activities
General government $ 474,209
Public safety 177,065
Education, culture, recreation 5,561,480
Total — governmental activities $ 6,212,754
Business -type activities
Municipal solid waste collection and disposal $ 171,026
Hospital facilities 1,060,093
Longterm care center 518,933
Kodiak fisheries research center 695,985
Research court apartments 34,067
Total — business -type activities 2,480,104
Total primary government $ 8,692,858
57
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
60
Due
Balance
Balance
Within
July 1, 2021 Additions
Reductions
June 30, 2022
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
5,170,000 -
240,000
4,930,000
250,000
$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
1,000,000 -
180,000
820.000
190,000
$1,870,000 2016 Series One A
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
1,565,000 -
80,000
1,485,000
80,000
$5,140,000 2016 Series One B
Renewal and Replacement Bonds.
due in semi-annual installments of
$490,000 to $660,000 plus interest
of 5.0% through August 2025
2,995,000 -
540,000
2,455,000
570,000
$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%to5.0% through December 2027
3,665,000 -
450,000
3,215,000
470,000
$550,000 2018 Series A Bonds,
due in annual installments of $50,000
to $60,000 plus interest of 2.67%
to 3.05% through December 2028
450.000 -
50,000
400.000
55,000
60
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
Governmental activities, continued:
$345,000 2020 Series A High School
Renovation Bond, due in annual
installments of $25,000 to $45,000
plus interest of 5.0% through
December 2030
$1,855,000 2020 Series B Bonds
due in annual installments of
$145,000 to $230,000 plus interest of
5% through December 2030
$4,070,000 2021 Series 1 Bonds issued to
partially refund the 2011 Series One
Bonds due in annual installments of
$330,000 to $505,000 plus interest of
5% through December 2030
$4,225,000 2021 Series 2 Bonds issued to
partially refund the 2012 Series A and B
Bonds due in annual installments of
$125,000 to $1,375,000 plus interest
of .243% to .698% through December
2024
$14,535,000 2021 Series 3 Bonds issued to
partially refund the 2013 Series One
Bonds due in annual installments of
$275,000 to $1,515,000 plus interest of
.243% to 2.22% through December 2032
$14,520,000 2021 Series 4 Bonds issued to
partially refund the 2014 Series One
Bonds due in annual installments of
$255,000 to $1,625,000 plus interest of
.243% to 2.352% through December
2033
Balance Balance Due Within
July 1, 2021 Additions Reductions lune 30, 2022 One Year
345,000 - 25,000 320,000 30,000
1,855,000 - 145,000 1,710,000 155,000
4,070,000 - 330,000 3,740,000 340,000
4,225,000 - 125,000 4,100,000 1,360,000
14,535,000 - 275,000 14,260,000 270,000
14,520,000 - 255,000 14,265,000 245,000
$ 61,730,000 - 5,840,000 55,890,000 6,035,000
61
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
(b) Notes and Bonds Payable
As of June 30, 2022, 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, 2022, 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. $ 900,000
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. $ 9,567,684
Note payable (ACWF #505061) 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
March 1, 2016, with principal payments of $131,227 being due on
March 1 in each successive year. $ 1,705,944
On May 26, 2021, the Borough refunded the 2011 Series Three
revenue bond by issuing a $1,215,000 revenue bond, with a premium
of $190,994. The bond was marketed by the Alaska Municipal Bond
Bank. Interest accrues at rate of 5.0% with payments due on June 1
and December 1 of each year. The Borough only made interest
payments on the bond in FY22, with the first principal payment due
December 1, 2022. The bond will mature on December 1, 2027. $ 1,215,000
As of June 30, 2022, 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 I of each year. The bond
will mature on June 1, 2023. This bond was partially refunded by the
revenue bond below. $ 590,000
On May 26, 2021, the Borough refunded a portion of the 20113 Series
revenue bond by issuing a $8,100,000 revenue bond.The bond was
marketed by the Alaska Municipal Bond Bank. Interest accrues at
rates between of .243% and 2.222% with payments due on June 1 and
December 1 of each year. The current portion as of June 30, 2022 is
$125,000. The bond will mature on December 1, 2032. $ 7,970,000
5
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
(c) Changes in Long-term Liabilities
Long-term liability activity for the year ended June
30, 2022, was as follows:
Balance
Balance
June 30,
June 30,
Due within
2021
Additions
Reductions
2022
one year
Governmental activities:
Bonds payable:
General obligation bonds
$
61,730,000
—
5,840,000
55,890,000
6,035,000
Bond premium
3,410,020
—
724,958
2,685,062
573,955
65,140,020
—
6,564,958
58,575,062
6,608,955
Compensated absences
175,359
185,265
208,511
152,113
57,750
Total
$
65.315.379
185.265
6.773.469
58.727.175
6.666,705
Business -type activities:
Municipal Solid waste
Collection and Disposal:
Landfill closure and
post -closure costs
$
6,559,000
630,000
—
7,189,000
—
Compensated absences
108,853
85,956
76,070
118,739
23,480
Notes and bonds payable
14,492,701
1,104,073
13,388,628
1,089,073
Bond premium
218,205
59.043
159,162
31,832
Total
$
21,378,759
715.956
1.239.186
20.855.529
1.144.385
Long Term Care Center:
Bonds payable
9,690,000
—
1,130,000
8,560,000
715,000
Bond premium
115.620
57.810
57.810
57.810
Total
$
9.805.620
1.187.810
8.617.810
772.810
Kodiak Fisheries Research
Center:
Compensated absences
$
33.830
24.874
25.307
33.397
3252
Business -type activities:
Landfill closure and post -
closure costs
$
6,559,000
630,000
—
7,189,000
—
Compensated absences
142,683
110,830
101,377
152,136
26,732
Notes and bonds payable
24,182,701
—
2,234,073
21,948,628
1,804,073
Bond premium
333.825
—
116.853
216.972
89.642
Total
$
31218.209
740.830
2.452.303
29.506.736
1.920.447
For governmental activities, compensated absences are generally liquidated by the General Fund.
63
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
Annual debt service requirements to maturity for all the Governmental Activities general obligation
bonds outstanding as of June 30, 2022, are as follows:
Year ending
June 30:
Principal
Interest
Total
2023
$ 6,035,000
1,531,316
7,566,316
2024
6,240,000
1,322,359
7,562,359
2025
6,420,000
1,138,811
7,558,811
2026
5,230,000
959,870
6,189,870
2027
4,450,000
828,058
5,278,058
2028-2032
20,515,000
2,399,097
22,914,097
2033-2036
7,000,000
316,127
7,316,127
2033
$ 55,890,000
8,495,638
64,385,638
At June 30, 2022, there was $12,463,176 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, 2022, are as follows:
Year ending
Interest
Bonds Payable
869,073
June 30:
Principal
Interest
Total
2023
$ 935,000
215,484
1,150,484
2024
970,000
161,631
1,131,631
2025
990,000
145,624
1,135,624
2026
1,005,000
126,761
1,131,761
2027
1,030,000
105,275
1,135,275
2028-2032
3,995,000
296,841
4,291,841
2033
850,000
9,444
859,444
$ 9,775,000
1,061,060
10,836,060
Notes Pavable
Principal
Interest
Total
869,073
182,604
1,051,677
869,073
169,569
1,038,642
869,073
156,532
1,025, 605
869,073
143,496
1,012,569
869,073
130,460
999,533
4,245,361
456,759
4,702,120
3,582,902
155,326
3,738,228
12,173,628
1,394,746
13,568,374
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64
1
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
(11) Fund Balances
I
Detailed information related to amounts classified as nonspendable, committed and assigned fund
balances in governmental funds at June 30, 2022 are as follows:
Education State Capital
Support Facilities Education Grants
Special Special Debt Capital Other
General Revenue Revenue Service Project Governmental
Fund Fund Fund Fund Fund Funds
Total
Nonspendable:
CPrepaid
items 45,790 6,048
51,838
Restricted:
Commercial Passenger Vessel $ - - - - - 47,010
47,010
Committed:
Facility Upgrades - 37,272,517 - - 37,272,517
Debt Service - 12,463,176 - 12,463,176
Fire and Road
Service Areas - - 2,647,256
2,647,256
Emergency planning - 22,824
22,824
r
Land Sales - 1,320,975
1,320,975
1
Buildings and Grounds 640,506
640,506
Street Lighting
Districts - - _ 49,634
49,634
Tourism Development 98,141
98,141
Mission Lake Tide Gate - - - 58,779
58,779
Opioid Class Action Settlement - - - 6,656
6,656
Total committed $ 37,272,517 12,463,176 4,844,771 54,580,464
Assigned:
Capital Projects and
Upgrades $ 443,227 8,206,893
8,650,120
(12) Solid Waste Landfill Closure and Post Closure Care Costs
rState
and federal laws and regulations require that the Kodiak Island Borough place a final cover on
l
its landfill when closed and perforin 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 arc 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 $7,189,000 as of June 30, 2022,
which is based on 41.5% usage (filled) of the landfill. The Borough recorded closure/post-closure
expenses of $687,590 of estimated future costs for closure and post -closure costs. The estimated total
current cost of the landfill closure and post closure care of $7,189,000 is based on the amount that
would be paid if the landfill were closed as of June 30, 2022. However, the actual cost of closure and
E
post closure care may be higher due to inflation, changes in technology, or changes in landfill laws
Land
regulations.
L65
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
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 $4,500,000.
(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.
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.
I KODIAK ISLAND BOROUGH
f Notes to Basic Financial Statements, Continued
(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.
1 • 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) Leases
(a) Hospital Facilities Enterprise Fund
The Kodiak Island Borough 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. The Borough
received $1,170,808 in lease payments for the year ended June 30, 2022. The lease receivable
at June 30, 2022 was $6,112,796. The Borough has deferred inflows of resources associated
with the lease that will be recognized as revenue over the lease term. At June 30, 2022 the
deferred inflow of resources was $5,854,040.
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.
The future principal and interest lease payments to be received as of June 30, 2022, were as
follows:
Principal Interest Total
2023 $ 1,103,697 280,575 1,384,272
2024 1,160,165 224,107 1,384,272
2025 1,219,521 164,751 1,384,272
2026 1,281,914 102,358 1,384,272
2027 1,347,499 36,773 1,384,272
Total $ 6,112,796 808,564 6,921,360
67
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
(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 $86,969. The Borough received $765,187 in lease payments
for the year ended June 30, 2022. The lease receivable at June 30, 2022 was $8,965,827. The
Borough has deferred inflows of resources associated with the lease that will be recognized as
revenue over the lease term. At June 30, 2022 the deferred inflow of resources was $8,608,360.
The future principal and interest lease payments to be received as of June 30, 2022, were as
follows:
Total
1,043,628
1,043,628
1,043,628
1,043,628
1,043,628
5,218,140
1,304,535
11,740,815
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
$61,628.
IN
Principal
Interest
2023 $
609,171
434,457
2024
640,337
403,291
2025
673,098
370,530
2026
707,535
336,093
2027
743,734
299,894
2028-2032
4,329,893
888,247
2033-2034
1,262,059
42,476
Total $
8,965,827
2,774,988
(c) Kodiak Fisheries Research Center
Total
1,043,628
1,043,628
1,043,628
1,043,628
1,043,628
5,218,140
1,304,535
11,740,815
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
$61,628.
IN
I KODIAK ISLAND BOROUGH
rNotes to Basic Financial Statements, Continued
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 and ends on March 2029. 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 $880,870 as of June 30, 2022.
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 $26,311 is effective through
February 29, 2024.
The lease with Kodiak Regional Aquaculture Association was amended to include more space.
The new lease term is from March 2020 through June 30, 2023. Annual rent is $18,853.
The Borough received $566,410 in lease payments for the year ended June 30, 2022. The lease
receivable at June 30, 2022 was $6,697,760. The Borough has deferred inflows of resources
associated with the leases that will be recognized as revenue over the lease terms. At June 30,
2022 the deferred inflow of resources was $6,353,425.
The future principal and interest lease payments to be received as of June 30, 2022, were as
follows:
Principal Interest Total
2023 $ 382,340 327,550 709,890
2024 330,095 308,455 638,550
2025 376,450 290,717 667,167
2026 395,710 271,457 667,167
2027 416,686 251,207 667,893
2028-2032 2,439,967 912,235 3,352,202
2033-2037 2,331,887 241,976 2,573,863
2038 24,625 465 25,090
Total $ 6,697,760 2,604,062 9,301,822
(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.
69
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
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
Defined Benefit Pension Plan (DB)
Defined Contribution Pension Plan (DC)
Defined Benefit Other Postemployment
Benefits (OPEB):
Occupational Death and Disability Plan
Alaska Retiree Healthcare Trust Plan
Retiree Medical Plan
Defined Contribution Other Postemployment
Benefits (DC):
Healthcare Reimbursement Arrangement Plan
Other Postemployment Benefit Plans (OPEB)
Occupational Death and Disability Plan (ODD)
Type of Plan
Cost-sharing, Defined Benefit Pension
Defined Contribution Pension
Cost-sharing, Defined Benefit OPEB
Cost-sharing, Defined Benefit OPEB
Cost-sharing, Defined Benefit OPEB
Defined Contribution OPEB
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, 2022 the employer contribution rate is 0.31%.
Membership in the plan consisted of the following at June 30, 2021 (latest available report):
Membership
PERS
Active plan members
24,481
Participating employers
151
70
rKODIAK ISLAND BOROUGH
rNotes to Basic Financial Statements, Continued
Alaska Retiree Healthcare Trust Plan (ARHCT)
rBeginning 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
r 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, 2021 (latest available
r information) employer contributions were 7.43% of annual payroll. Membership in the plan consisted
of the following at June 30, 2021 (latest report available):
LThe 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.
L
71
Membership
PERS
rInactive
plan members or beneficiaries currently receiving benefits
36,704
Inactive plan members entitled to but not yet receiving benefits
5,112
I
Inactive plan members not entitled to benefits
10,366
IActive
plan members
10,066
Total plan membership
62,248
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, 2022 employer contributions were 1.07%.
r
Membership in the plan consists of the following at June 30, 2021 (latest available
report):
Membership
PERS
Inactive plan members or beneficiaries currently receiving benefits
67
Inactive plan members entitled to but not yet receiving benefits
2,082
Inactive plan members not entitled to benefits
16,249
Active plan members
24,481
Total plan membership
42,879
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, 2021 (latest available report):
Membership
PERS
L
Inactive plan members or beneficiaries currently receiving benefits
113
Inactive plan members entitled to but not yet receiving benefits
2,082
L
Inactive plan members not entitled to benefits
16,249
Active plan members
24,481
Total plan membership
42,925
LInvestments
LThe 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.
L
71
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
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, 2021 (latest available report) for the DB Plan for PERS
is 29.77°/x, for the ARHCT plan is 30.00%, for the ODD Plan is 29.55%, and for the RMP is 29.54%.
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 Qov/armb/Reports-and-Policies/Annual-Audited-Financial-Scliedules.aspx.
The long-term expected rate of return on pension and OPEB plan investments was determined using
the building-block method in which best -estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for each major
asset class. These ranges are combined to produce the long-term expected rate of return by weighting
the expected future real rates of return by the target asset allocation percentage and adding expected
inflation. The best estimates of arithmetic real rates of return for each major asset class are summarized
below for the PERS plan:
Asset Class
Broad Domestic Equity
Global Equity (non -U.S.)
Aggregate Bonds
Opportunistic
Real Assets
Private Equity
Cash Equivalents
Long -Term Expected
Real Rate of Return
6.63%
5.41%
0.76%
4.39%
3.16%
9.29%
0.13%
Discount Rate: The discount rate used to measure the total pension and OPEB liabilities and assets is
7.38%, which represents a decrease of 0.00% 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 2.18% as of June 30, 2021.
72
11
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I
L
I
L
L
L
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
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.
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, 2022 are as follows:
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 2022 the past
service rate for PERS is 18.31 %.
73
ARM
Employer
Board
State
Effective
Adopted
Contribution
Rate
Rate
Rate
PERS:
Pension
15.54%
21.27%
8.11%
OPEB
6.46%
8.84%
0%
Total PERS contribution rates
22.00%
30.11%
8.11%
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 2022 the past
service rate for PERS is 18.31 %.
73
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
Actuarial Assumptions: The total pension and OPEB liabilities on June 30, 2021 (latest available) were
determined by an actuarial valuation as of June 30, 2019 which was rolled forward to the measurement
date June 30, 2021. 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.
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. a
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: 6.5% grading down to 4.5%
Post -65 medical: 5.4% grading down to 4.5%
Prescription drugs: 7.5% grading down to 4.5%
EGWP: 7.5% grading down to 4.5%
74
rKODIAK ISLAND BOROUGH
FNotes to Basic Financial Statements, Continued
As a result of the latest experience study, the Board adopted updated actuarial assumptions for the June
F 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:
r 1. Per capita claims costs were updated to reflect recent experience.
2. Normal cost for administrative expenses were updated to reflect recent experience.
r3. Healthcare cost trends were updated to reflect the repeal of the Cadillac Tax.
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
r 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)
rwhich 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.
L 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.
L Currently there are 150 employers participating in PERS defined benefit plan and 151 participating in
PERS defined contribution and OPEB plans.
LThe DB Plan's membership consisted of the following at June 30, 2021 (latest available report):
Inactive plan members or beneficiaries currently receiving benefits 36,704
Inactive plan members entitled to but not receiving benefits 5,112
L
Inactive members not entitled to benefits 10,366
Active plan members 10,066
LTotal DB plan membership 62.248
L 75
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
Retirement benefits are calculated by multiplying the average monthly compensation (AMC) times
credited PERS service times the percentage multiplier. The AMC is determined by averaging the
salaries earned during the five highest (three highest for peace officers/firefighters members or
members hired prior to July 1, 1996) consecutive payroll years. Members must earn at least 115 days
of credit in the last year worked to include it in the AMC calculation. The PERS pays a minimum
benefit of $25 per month for each year of service when the calculated benefit is less.
The percentage multipliers for peace officers/firefighters are 2% for the first ten years of service and
2.5% for all service over 10 years. The percentage multipliers for all other participants are 2% for the
first ten years, 2.25% for the next ten years, and 2.5% for all remaining service earned on or after July
1, 1986. All service before that date is calculated at 2%.
Post -employment healthcare benefits are provided without cost to all members first enrolled before July
1, 1986. Members first enrolled after June 30, 1986, but before July 1, 2006, and who have not reached
age 60 may elect to pay for major medical benefits.
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(x)(2). The salary floor is the total base salaries paid by an
employer to active employees of the system as of the fiscal year ending June 30, 2008. The statute
requires the Division of Retirement and Benefits (Division) to collect employer contributions at a
minimum based on FY 2008 base salaries.
Employee Contribution Rate. The Borough's PERS active members are required to contribute 6.75%.
Employer contributions for the year ended June 30, 2022, were:
Pensions Other Post -Employment
(DB) Benefits (DB) Total
$ 386,986 86,123 473,109
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KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
Public Employees Retirement Plans
For the year ended June 30, 2022 the State of Alaska contributed $234,018 (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, 2021 to a total of ($134,651), 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, 2022, 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:
Borough's proportionate share of the net pension liability
State's proportionate share of the net pension liability
Total
Borough's proportionate share of the ARHCT OPEB (asset)
State's proportionate share of the ARHCT OPEB (asset)
Total
Borough's proportionate share of the ODD OPEB (asset)
Borough's proportionate share of the RMP OPEB (asset)
Total Borough's share of net pension and OPEB liabilities
and assets
Pension
$ 4,247,344
573,256
$ 4,820,600
OPEB
$ (2,984,594)
(390,455)
$ (3,375,049)
$ (54,780)
$ (37,673)
$ 1,170,297
The net pension and OPEB liabilities and assets were measured as of June 30, 2021, 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 FY2023 through
FY2039, as determined by projections based on the June 30, 2021 valuation.
The Borough's proportionate share and changes in the pension and OPEB liabilities and assets were as
follows:
June 30, 2020
June 30, 2021
Measurement
Measurement
Change
Pension
.0880%
.1158%
.0278%
OPEB:
ARHCT
.0880%
.1163%
.0283%
ODD
.1276%
.1243%
(.0033%)
RMP
.1443%
.1404%
(.0039%)
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
Based on the measurement date of June 30, 2021, the Borough recognized pension and OPEB expense
of $853,286 and ($1,206,542), respectively, for the year ended June 30, 2022. At June 30, 2022, the
Borough reported deferred outflows of resources and deferred inflows of resources related to pensions
and OPEB from the following sources:
Defined Benefit:
Differences between expected and actual
experience
Changes of assumptions
Net difference between projected and actual
earnings on pension plan investments
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions
Borough contributions subsequent to the
measurement date
Total
Pension
Deferred Outflows Deferred Inflows
of Resources of Resources
(18,817)
(1,674,929)
229,901
386,986
$ 616,887 (1,693,746)
OPEB ARHCT
Deferred Outflows
Deferred Inflows
of Resources
of Resources
Differences between expected and actual
experience
$ -
(31,343)
Changes of assumptions
-
(112,789)
Net difference between projected and actual
earnings on OPEB plan investments
-
(1,396,630)
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions
-
(27,686)
Borough contributions subsequent to the
measurement date
59,046
Total
$ 59,046
(1,568,448)
OPEB
ODD
Deferred Outflows
Deferred Inflows
of Resources
of Resources
Differences between expected and actual
experience
$
(14,962)
Changes of assumptions
(416)
Net difference between projected and actual
earnings on OPEB plan investments
-
(8,784)
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions
3,973
(2,745)
Borough contributions subsequent to the
measurement date
6,187
Total
$ 10,160
(26,907)
78
l KODIAK ISLAND BOROUGH
I
Notes to Basic Financial Statements, Continued
OPEB RMP
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience $ 2,801 (1,791)
Changes of assumptions 11,709 (22,389)
Net difference between projected and actual
earnings on OPEB plan investments - (33,704)
Changes in proportion and differences between
Borough contributions and proportionate
share of contributions 1,551 (2,132)
Borough contributions subsequent to the
measurement date 20,890
Total $ 36,951 (60,016)
$386,986 and $86,123 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, 2022, 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 OPEB OPEB OPEB
June 30, Pension ARHCT ODD RMP
2022 $ (178,147) (499,004) (4,563) (9,293)
2023 (383,661) (321,639) (4,557) (9,308)
2024 (415,015) (345,374) (4,650) (9,649)
2025 (487,022) (402,431) (4,943) (10,722)
2026 (2,199) (1,450)
_
Thereafter (2,022) (3,533)
Total $ (1,463,845) (1,568,448) (22,934) (43,955)
(
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For the year ended June 30, 2022, the Borough recognized $846,374 and ($47,126) of pension and
OPEB amortization of the net deferred outflows and inflows of resources, respectively.
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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 ]-
percentage -point higher (8.38%) than the current rate:
Net pension liability
Net OPEB ARHCT (asset)
Net OPEB ODD (asset)
Net OPEB RMP liability (asset)
1% Decrease
(6.38%)
$ 6,290,909
$ (1,951,880)
$ (52,454)
$ 24,588
L79
Current Rate
(7.38%)
4,247,344
(2,984,594)
(54,780)
(37,673)
I% Increase
(8.38%)
2,530,488
(3,842,186)
(56,632)
(84,699)
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
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 ]-
percentage -point higher than the current healthcare cost trend rates:
Net OPEB ARHCT (asset)
Net OPEB ODD liability (asset)
Net OPEB RMP liability (asset)
I% Decrease
$ (3,942,578)
$ N/A
$ (91,430)
Current Rate 1 % Increase
(2,984,594)
(54,780)
(37,673)
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(1,828,557)
N/A Q
35,575
Alaska Public Employee Retirement System (PERS) — Defined Contribution Plan (DC)
Plan Description and Funding Requirements. Cities and Public Employers in the State of Alaska have
a defined contribution retirement plan (PERS Tier N) 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): 1.07% for the retiree medical plan (DB), 0.31 % and 0.68%
(peace officers) for occupational and death and disability benefits (DB) and 3% of employers' average
annual employee compensation to the health reimbursement arrangement (HRA DC). The effective
employer contribution is 22%. Additionally, there is a defined benefit unfunded liability (DBUL)
amount levied against the DC plan and allocated to the DB Plan's pension and OPEB contribution.
Plan members are 100% vested with their contributions.
Members become vested in employers' contributions as follows:
2 years of service — 25%
3 years of service — 50%
4 years of service — 75%
5 years of service — 100%
The Borough contributed $157,753 for the year ended June 30, 2022, which included forfeitures of $0
which have been applied as employer contributions.
Deferred Compensation Plan
The Kodiak Island Borough has three 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,
2022, were $86,011.
80
l KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
rThe first plan is managed by Mission Square, formally International City Managers Association
Retirement Corporation (ICMA). $19,800 was contributed to this plan during the year ended June 30,
2022. The Borough believes that the plan does not meet the criteria for inclusion as a fiduciary fund.
The second plan is managed by Empower, formally MassMutual Financial Group. $13,000 was
contributed to this plan during the year ended June 30, 2022 The Borough believes that the plan does
not meet the criteria for inclusion as a fiduciary fund.
The third plan is managed by Empower and accepts both tax contributions. $53,211 was contributed
to this plan during the year ended June 30, 2022 The Borough believes that the plan does not meet the
criteria for inclusion as a fiduciary fund.
(16) Contingencies
(a) Genera!
The Borough, in the normal course of its activities, is involved in various claims and pending
litigation. After consultation with legal counsel, management estimates that these matters will be
resolved without material adverse effect on the Borough's future financial position or results of
operations.
(b) Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment by the
grantor agencies. Any disallowed claims, including amounts already collected, would become a
liability of the General or other applicable funds. In management's opinion, disallowances, if any,
will not be material.
(17) Advance Refunding of Debt
In November 2016, the Borough'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, 2022, the amount of defeased debt still
outstanding was $3,300,000.
In May 2021, the Borough issued $4,070,000 of 2021 Series One general obligation bonds with an interest
L rate of 5.0% to advance refund $4,815,000 of outstanding 2011 Series One general obligation bonds with
interest rates ranging from 4.750% to 5.125%. The net proceeds of $4,894,601 (after payment of $32,575 of
issuance costs) were used to purchase U.S. government securities. Those securities were deposited in an
L irrevocable trust with an escrow agent to provide for all future debt service payments on the 2011 Series One
bonds. As a result, the 2011 Series One bonds are considered to be defeased and the liability for those bonds
has been removed from the financial statements. As of June 30, 2022, the amount of defeased debt still
Loutstanding was $4,430,000.
L 81
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
In May 2021, the Borough issued $4,225,000 of 2021 Series Two general obligation bonds with interest rates
ranging from 0.243% to 0.698% to advance refund $3,995,000 of outstanding 2012 Series A and Series B
general obligation bonds with interest rates ranging from 4.00% to 5.00%. The net proceeds of $4,194,173
(after payment of $30,827 of issuance costs) were used to purchase U.S. government securities. Those
securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service
payments on the 2012 Series One bonds. As a result, the 2011 Series One bonds are considered to be defeased
and the liability for those bonds has been removed from the financial statements. As of June 30, 2022, the
amount of defeased debt still outstanding was $3,425,000.
In May 2021, the Borough issued $14,535,000 of 2021 Series Three general obligation bonds with interest
rates ranging from 0.243% to 2.222% to advance refund $13,195,000 of outstanding 2013 Series One general
obligation bonds with interest rates ranging from 3.80% to 5.00%. The net proceeds of $14,455,418 (after
payment of $79,582 of issuance costs) were used to purchase U.S. government securities. Those securities
were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on
the 2013 Series One bonds. As a result, the 2013 Series One bonds are considered to be defeased and the
liability for those bonds has been removed from the financial statements. As of June 30, 2022, the amount of
defeased debt still outstanding was $12,145,000.
In May 2021, the Borough issued $14,520,000 of 2021 Series Four general obligation bonds with interest rates
ranging from 0.243% to 2.352% to advance refund $12,645,000 of outstanding 2014 Series One general
obligation bonds with interest rates ranging from 3.80% to 5.00%. The net proceeds of $14,437,316 (after
payment of $82,684 of issuance costs) were used to purchase U.S. government securities. Those securities
were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on
the 2014 Series One bonds. As a result, the 2014 Series One bonds are considered to be defeased and the
liability for those bonds has been removed from the financial statements. As of June 30, 2022, the amount of
defeased debt still outstanding was $12,645,000.
In May 2021, the Borough's Municipal Solid Waste Collection and Disposal Enterprise Fund issued
$1,215,000 of revenue bonds with interest rates of 5.00% to advance refund $1,355,000 of outstanding 2012
revenue bonds with interest rates ranging from 4.00% to 5.00%. The net proceeds of $1,384,665 (after
payment of $21,368 of issuance costs) were used to purchase U.S. government securities. Those securities
were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on
the 2012 revenue bonds. As a result, the 2012 revenue bonds are considered to be defeased and the liability
for those bonds has been removed from the financial statements. As of June 30, 2022, the amount of defeased
debt still outstanding was $1,110,000.
In May 2021, the Borough's Long Term Care Center Enterprise Fund issued $8,100,000 of revenue bonds
with interest rates ranging from .243% to 2.222% to advance refund $7,750,000 of outstanding 2013 revenue
bonds with interest rates ranging from 3.00% to 5.00%. The net proceeds of $8,047,454 (after payment of
$52,546 of issuance costs) were used to purchase U.S. government securities. Those securities were deposited
in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 2013 revenue
bonds. As a result, the 2013 revenue bonds are considered to be defeased and the liability for those bonds has
been removed from the financial statements. As of June 30, 2022, the amount of defeased debt still outstanding
was $7,750,000.
82
I KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
(18) Change in Accounting Principle
In 2022, the Borough implemented GASB Statement No. 87, Leases, which established standards of accounting
and financial reporting for leases by lessees and lessors. The requirements of this Statement apply to financial
statements of all state and local governments.
The new standard requires the Borough to recognize certain lease assets and liabilities for leases. It establishes
a single model for lease accounting based on the underlying principle that leases are financings of the right to use
an underlying asset for a period of time. Under this Statement, a lessee is required to recognize a 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 the Borough's leasing
activities.
The Borough has applied this Statement retroactively and as a result the balances in the financial statements
for the fiscal year ended June 30, 2021 have been restated. Beginning net position in the Enterprise Funds and
Business -type Activities were increased by $487,280 as of June 30, 2021.
(19) Subsequent Events
Management have evaluated subsequent events through December 28, 2022, the date which the financial
f statements were available for issue.
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(20) Construction Commitments
The Borough has outstanding commitments for construction at year end of $2,029,654.
(21) Subsequent Accounting Pronouncements
The Governmental Accounting Standards Board has passed several new accounting standards with
upcoming implementation dates covering several topics as follows:
• GASB 94 Public -Private and Public -Public Partnerships and Availability Payments
Arrangements. Effective for fiscal years beginning after June 15, 2022.
• GASB 96 Subscription -Based Information Technology Arrangements. Effective for fiscal years
beginning after June 15, 2022.
• GASB 99 Omnibus 2022. Multiple effective dates.
• GASB 100 Accounting Changes and Error Corrections—an amendment of GASB Statement No.
62. Effective for fiscal years beginning after June 15, 2023. Multiple effective dates.
• GASB 101 Compensated Absences. Effective for fiscal years beginning after December 15, 2023.
Statement 94 is not expected to have any significant impact on the financial statements of the Borough.
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.
83
KODIAK ISLAND BOROUGH
Notes to Basic Financial Statements, Continued
GASB Statement No. 99 will enhance comparability in the application of accounting and financial
reporting requirements and will improve the consistency of authoritative literature. Consistent
authoritative literature enables governments and other stakeholders to more easily locate and apply the
correct accounting and financial reporting provisions, which improves the consistency with which such
provisions are applied. The comparability of financial statements also will improve as a result of this
Statement. Better consistency and comparability improve the usefulness of information for users of state
and local government financial statements.
Effective Date: The requirements of this Statement are effective as follows:
The requirements related to extension of the use of LIBOR, accounting for SNAP distributions,
disclosures of nonmonetary transactions, pledges of future revenues by pledging governments,
clarification of certain provisions in Statement 34, as amended, and terminology updates related to
Statement 53 and Statement 63 are effective upon issuance.
The requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June
15, 2022, and all reporting periods thereafter.
The requirements related to financial guarantees and the classification and reporting of derivative
instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023,
and all reporting periods thereafter.
GASB Statement No. 100 will improve the clarity of the accounting and financial reporting requirements
for accounting changes and error corrections, which will result in greater consistency in application in
practice. In turn, more understandable, reliable, relevant, consistent, and comparable information will be
provided to financial statement users for making decisions or assessing accountability. In addition, the
display and note disclosure requirements will result in more consistent, decision useful, understandable,
and comprehensive information for users about accounting changes and error corrections.
GASB Statement No. 101 unified recognition and measurement model in this Statement will result in a
liability for compensated absences that more appropriately reflects when a government incurs an
obligation. In addition, the model can be applied consistently to any type of compensated absence and
will eliminate potential comparability issues between governments that offer different types of leave.
The model also will result in a more robust estimate of the amount of compensated absences that a
government will pay or settle, which will enhance the relevance and reliability of information about the
liability for compensated absences.
84
REQUIRED SUPPLEMENTARY INFORMATION
r
rKODIAK ISLAND BOROUGH
L 85
Budgetary Comparison Schedule
Fund
rGeneral
Year ended June
30, 2022
(With financial
information for the
year ended June 30,
2021)
r
2022
anance wit
Final Budget-
Budget
Positive
2021
Original
Final
Actual
(Negative)
Actual
Revenues:
Properly taxes and assessments:
Real
$ 2,830,766
2,830,766
2,799,824
(30,942)
3,539,828
Personal
323,151
323,151
322,420
(731)
432,922
Aircraft
23,100
23,100
22,700
(400)
23,100
Penalty and interest
210,000
210,000
303,630
93,630
297,832
Total property taxes and assessments
3,387,017
3,387,017
3,448,574
61,557
4,293,682
Severance taxes:
Fish
1,100,000
1,100,000
1,641,429
541,429
996,833
Mining
4,000
4,000
2,893
(1,107)
5,302
Logging
20,000
20,000
33,273
13,273
47,295
Total severance taxes
1,124,000
1,124,000
1,677,595
553,595
1,049,430
Excise taxes:
Tobacco
350,000
350,000
683,019
333,019
700,675
Marijuana
1,000
1,000
952
(48)
1,467
Total excise taxes
351,000
351,000
683,971
332,971
702,142
Intergovenunental:
State sources:
State community assistance
344,454
344,454
343,543
(911)
317,746
Fisheries business tax
1,000,000
1,000,000
854,209
(145,791)
1,049,475
Fisheries resource landing tax
100,000
100,000
95,843
(4,157)
41,645
Electric cooperative tax
16,000
16,000
20,441
4,441
17,424
PERS on -behalf payment
194,400
194,400
160,242
(34,158)
184,756
Marijuana license
300
300
600
300
723
Total state sources
1,655,154
1,655,154
1,474,878
(180,276)
1,611,769
r
Federal sources:
1L
Payments in lieu of taxes
1,335,000
1,335,000
1,672,213
337,213
1,635,859
Fish and Wildlife revenue sharing
180,000
180,000
180,874
874
180,733
CARES Act
5,503,500
Total federal sources
1,515,000
1,515,000
1,853,087
338,087
7,320,092
Total intergovernmental
revenue
3,170,154
3,170,154
3,327,965
157,811
8,931,861
Charges for services -
Sale of copies and maps
775
775
215
Licenses, permits and fees:
Building and trailer permits
52,000
52,000
46,066
(5,934)
50,613
Subdivision and zoning fees
10,500
10,500
11,435
935
14,710
L
Business licenses
1,300
1,300
200
(1,100)
1,500
Other permits
8,400
8,400
5,274
(3,126)
8,967
Total licenses, permits and fees
72,200
72,200
62,975
(9,225)
75,790
L
Investment income (loss)
50,000
50,000
(371,295)
(421,295)
24,496
Other
200
200
841
641
8,528
Total revenues
8,154,571
8,154,571
8,831,401
676,830
15,086,144
1
(continued)
L 85
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
General Fund, continued
Year ended June 30, 2022
( With financial information for the year ended Jane 30, 202 1)
Expenditures:
General government:
General administration
Borough assembly
Borough manager
Borough clerk
Borough attorney
Finance department
Management information systems
Assessing department
Engineering/facilities department
Total general government
Public safety - animal control
Community and economic development:
Community development department
Building official
Economic development
Total community and economic
development
Emergency preparedness
Health and social welfare
Education, culture and recreation
Parks and recreation
Kodiak College and city libraries
Total expenditures
Excess of revenues
over expenditures
Other financing sources (uses):
Transfers out
Change in fund balance
Fund balance, at beginning of year
Fund balance, at end of the year
2,303,196 2,303,196 3,366,795 1,063,599
(2,303,196) (2,603,196) (2,603,196)
$ - (300,000) 763,599
See accompanying notes to required supplementary infortnation.
86
7,487,220
$ 8.250.819
1,063,599
4,418,819
(3,026,148)
1,392,671
6,094,549
7.487.220
2012
Variance with
Final Budget -
Budget
Positive
2021
)final
Final
Actual
(Negative)
Actual
$ 397,119
397,119
190,618
206,501
247,076
140,000
140,000
129,231
10,769
157,978
530,000
530,000
558,883
(28,883)
598,403
521,470
521,470
519,616
1,854
436,557
109,500
109,500
81,136
28,364
78,203
824,037
824,037
791,816
32,221
811,539
849,620
849,620
788,745
60,875
821,329
790,000
790,000
856,043
(66,043)
709,225
426,554
426,554
406,320
20,234
503,660
--T,3$$7TO-
4,588,300
121,000
121,000
121,000
118,700
590,000
590,000
556,073
33,927
654,501
160,491
160,491
177,962
(17,471)
172,085
20,000
20,000
600
19,400
5,850
770,491
770,491
734,635
35,856
832,436
48,995
48,995
10,983
38,012
5,257
170,000
170,000
169,647
353
5,257,005
20,589
20,589
20,396
193
20,397
32,000
32,000
22,125
9,875
19,560
100,000
100,000
63,412
36,588
50,000
5,851,375
5,851,375
5,464,606
386,769
10,667,325
2,303,196 2,303,196 3,366,795 1,063,599
(2,303,196) (2,603,196) (2,603,196)
$ - (300,000) 763,599
See accompanying notes to required supplementary infortnation.
86
7,487,220
$ 8.250.819
1,063,599
4,418,819
(3,026,148)
1,392,671
6,094,549
7.487.220
r
r KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Special Revenue Fund — Education Support
rYear ended June 30, 2022
(With financial information for the year ended June 30, 2021)
r
r
Revenues:
Property taxes and assessments:
Real
Personal
Total revenues
Expenditures:
Primary and secondary education
Excess (deficiency) of revenues
over expenditures
Fund balance, at beginning of year
Fund balance (deficit), at end of year
2022
Variance with
Final Budget—
Bud et Positive 2021
riginal Final Actual (Negative) Actual
$ 9,409,720 9,409,720 9,176,894 (232,826) 8,374,357
1,045,524 1,045, 524 1,068,041 22,517 1,015,344
10,455,244 10,455,244 10,244,935 (210,309) 9,389,701
10,455,244 10,455,244 10,458,099 (2.855) 9,393,364
$ (213,164) (207.454) (3,663)
55,731 59,394
$ (157,433) 55,731
See accompanying notes to required supplementary information.
L
L
L
L 87
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Special Revenue Fund – Facilities
Year ended June 30, 2022
( With financial information for the year ended June 30, 2021)
Revenues -
Investment income (loss)
Expenditures
Excess (deficiency) of revenues
over expenditures
Other financing (uses):
Transfers out:
Building and Grounds
Special Revenue Fund
Education Debt Service Fund
Net other financing (uses)
Change in fund balance
Fund balance, at beginning of year
Fund balance, at end of year
2022
Variance with
Final Budget –
Budget Positive 2021
Original Final Actual (Negative) Actual
$ 340,000 340,000 (2,108,392) (2,448,392) 143,572
340,000 340,000 (2,108,392) (2,448,392)
(5,000)
(5,000)
(5,000) —
(539,389)
(539,389)
(539,389) —
(544,389)
(544,389)
(544,389) —
$ (204,389)
(204,389)
(2,652,781) (2,448,392)
39,925,298
$ 37,272.517
See accompanying notes to required supplementary information.
88
143,572
(5,000)
(827,316)
(832,316)
(688,744)
40,614,042
39,925,298
KODIAK ISLAND BOROUGH
Schedule of the Borough's Proportionate Share of the Net Pension Liability
Public Employees' Retirement System (PERS)
June 30, 2022
See accompanying notes to Required Supplementary Information.
89
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
Year
Liability
Liability
Liability
Liability
Payroll
Payroll
Liability
2015
0.0813%
$
3,790,363
$
3,187,850
$
6,978,213
$
2,929,492
129%
62.37%
2016
0.1143%
$
5,545,660
$
1,488,931
$
7,034,591
$
3,204,521
173%
63.96%
2017
0.1330%
$
7,434,494
$
939,394
$
8,373,888
$
3,129,406
238%
59.55%
2018
0.1100%
$
5,687,130
$
2,118,453
$
7,805,583
$
3,055,486
186%
63.37%
2019
0.1188%
$
5,902,812
$
1,709,426
$
7,612,238
$
3,597,759
164%
65.19%
2020
0.1122%
$
6,144,196
$
2,435,789
$
8,579,985
$
3,249,981
189%
63.42%
2021
0.0880%
$
5,191,159
$
2,144,483
$
7,335,642
$
3,076,150
169%
61.61%
2022
0.1158%
$
4,247,344
$
573,256
$
4,820,600
$
3,066,295
139%
74.46%
See accompanying notes to Required Supplementary Information.
89
KODIAK ISLAND BOROUGH
Schedule of the Borough's Proportionate Share of the Net OPEB Liability (Asset)
Public Employees' Retirement System (PERS)
June 30, 2022
See accompanying notes to Required Supplementary Information.
90
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
Year
(Asset)
(Asset)
(Asset)
(Asset)
Payroll
Payroll
(Asset)
Alaska Retiree
Healthcare Trust Plan (ARHCT):
2018
0.1101%
$
929,853
$
347,255
$
1,277,108
$
3,055,486
30.43%
89.68%
2019
0.1187%
$
1,218,333
$
353,630
$
1,571,963
$
3,597,759
33.86%
88.12%
2020
0.1121%
$
166,384
$
66,122
$
232,506
$
3,249,981
5.12%
98.13%
2021
0.0880%
$
(398,510)
$
(165,197)
$
(563,707)
$
3,076,150
-12.95%
106.15%
2022
0.1163%
$
(2,984,594)
$
(390,455)
$
(3,375,049)
$
3,066,295
-97.34%
135.54%
Occupational Death and Disability
(ODD):
2018
0.1438%
$
(20,405)
$
-
$
(20,405)
$
3,055,486
-0.67%
212.97%
2019
0.1648%
$
(32,004)
$
-
$
(32,004)
$
3,597,759
-0.89%
270.62%
2020
0.1352%
$
(32,784)
$
-
$
(32,784)
$
3,249,981
-1.01%
297.43%
2021
0.1276%
$
(34,792)
$
-
$
(34,792)
$
3,076,150
-1.13%
283.800%
2022
0.1243%
$
(54,780)
$
-
$
(54,780)
$
3,066,295
-1.79%
374.22%
Retiree Medical Plan (RMP):
2018
0.1438%
$
7,500
$
-
$
7,500
$
616,628
1.22%
93.98%
2019
0.1648%
$
20,969
$
-
$
20,969
$
669,059
3.13%
88.71%
2020
0.1530%
$
36,596
$
-
$
36,596
$
665,832
5.5001.
83.17%
2021
0.1443%
$
10,236
$
-
$
10,236
$
683,409
1.50%
92.23%
2022
0.1404%
$
(37,673)
$
-
$
(37,673)
$
729,168
-5.17%
115.10%
See accompanying notes to Required Supplementary Information.
90
r-- r- r- r r r- r- r� r--' r.,,.1 -" --" �" � �7 --t --1 -i
KODIAK ISLAND BOROUGH
Schedule of the Borough's Contributions (Pension)
Public Employees' Retirement System (PERS)
June 30, 2022
See accompanying notes to Required Supplementary Information.
91
Borough's
Covered
Payroll
3,204,521
3,129,406
3,055,486
3,597,759
3,249,981
3,076,150
3,066,295
2,867,555
Contributions
as a Percentage
of Covered
Payroll
11.56%
12.06%
13.29%
13.45%
12.25%
11.58%
13.30%
13.50%
Contributions
Relative to the
Contractually
Contractually
Contribution
Required
Required
Deficiency
Year
Contribution
Contribution
(Excess)
2015
$
370,432
$
(370,432)
$
- $
2016
$
377,365
$
(377,365)
$
- $
2017
$
406,215
$
(406,215)
$
- $
2018
$
483,892
$
(483,892)
$
- $
2019
$
397,978
$
(401,284)
$
(3,306) $
2020
$
356,123
$
(352,817)
$
3,306 $
2021
$
407,818
$
(407,818)
$
- $
2022
$
386,986
$
(386,986)
$
$
See accompanying notes to Required Supplementary Information.
91
Borough's
Covered
Payroll
3,204,521
3,129,406
3,055,486
3,597,759
3,249,981
3,076,150
3,066,295
2,867,555
Contributions
as a Percentage
of Covered
Payroll
11.56%
12.06%
13.29%
13.45%
12.25%
11.58%
13.30%
13.50%
KODIAK ISLAND BOROUGH
Schedule of the Borough's Contributions (OPEB)
Public Employees' Retirement System (PERS)
June 30, 2022
92
Contributions
Relative to the
Contributions
Contractually
Contractually
Contribution
Borough's
as a Percentage
Required
Required
Deficiency
Covered
of Covered
Year Contribution
Contribution
(Excess)
Payroll
Payroll
Alaska Retiree Healthcare Trust Plan (ARHCT):
2018 $ 137,930
$ (137,930)
$
-
$
3,597,759
3.83%
2019 $ 143,757
$ (143,757)
$
-
$
3,249,981
4.42%
2020 $ 142,245
$ (142,245)
$
-
$
3,076,150
4.62%
2021 $ 73,672
$ (73,672)
$
-
$
3,066,295
2.40%
2022 $ 59,046
$ (59,046)
$
-
$
2,867,555
2.06%
Occupational Death and Disability (ODD):
2018 $ 3,283
$ (3,283)
$
$
3,597,759
0.09%
2019 $ 5,521
$ (5,521)
$
-
$
3,249,981
0.17%
2020 $ 5,597
$ (5,597)
$
-
$
3,076,150
0.18%
2021 $ 6,630
$ (6,630)
$
-
$
3,066,295
0.22%
2022 $ 6,187
$ (6,187)
$
-
$
2,867,555
0.22%
Retiree Medical Plan (RMP):
2018 $ 19,210
$ (19,210)
$
-
$
669,059
2.87%
2019 $ 17,951
$ (17,951)
$
-
$
665,832
2.70%
2020 $ 25,744
$ (25,744)
$
-
$
683,409
3.77%
2021 $ 26,048
$ (26,048)
$
-
$
729,168
3.57%
2022 $ 20,890
$ (20,890)
$
-
$
717,059
2.91%
See accompanying notes to Required Supplementary Information.
92
FKODIAK ISLAND BOROUGH
Notes to Required Supplementary Information
Year Ended June 30, 2022
C1. Budgets and Budgetary Accounting
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
r becomes the adopted budget.
I• 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 2022 budget document. That document may be obtained from the
Kodiak Island Borough, Finance Director, 710 Mill Bay Road, Kodiak, Alaska 99615.
LExcess of Expenditures over Appropriations
The Assembly approves operating budgets and appropriations of direct costs at the function and department
level for the General Fund, and at the function level for all other funds. For the year ended June 30, 2022,
expenditures exceeded appropriations in the following funds:
L General Fund:
General government — borough manager $ 28,833
General government — assessing department 66,043
Community and economic development — building official 17,471
LEducation Support Special Revenue Fund —
Primary and secondary education 2,855
L 93
2.
KODIAK ISLAND BOROUGH
Notes to Required Supplementary Information, Continued
Public Employees' Retirement System
Schedule of Borough's Proportionate Share of Net Pension and OPEB Liability (Asset)
The table is presented based on the Plan measurement date which is one year prior to fiscal year end for all
years presented.
Changes in Methods Since the Prior Valuation — June 30, 2020 to June 30, 2021:
There were no changes in actuarial methods since the prior valuation.
Changes in Assumptions Since the Prior Valuation — June 30, 2020 to June 30, 2021:
• Pension - Healthcare claim costs are updated annually. Retired member contributions were updated to
reflect the 5% decrease from CY20 to CY21. The amounts included in the normal cost for administrative
expenses were changed from $7,223,000 to $7,625,000 for pension, and from $4,934,000 to $5,531,000
for healthcare (based on the most recent two years of actual administrative expenses paid from plan
assets). There were no other changes in actuarial assumptions since the prior valuation.
OPEB ODD and RMP- Healthcare claim costs are updated annually. The amounts included in the normal
cost for administrative expenses were changed from $1,000 to $16,000 for occupational death and
disability, and from $20,000 to $24,000 for retiree medical (based on the most recent two years of actual
administrative expenses paid from plan assets). There were no other changes in actuarial assumptions
since the prior valuation.
Changes in Benefit Provisions Since the Prior Valuation — June 30, 2020 to June 30, 2021:
There were no changes in benefit provisions since the prior valuation.
GASB requires ten years of information be presented. However, until a full ten years of information is
available, the Borough will present only those years for which information is available.
Schedule of Borough Contributions (Pension) and (OPEB)
The table valuation date is June 30, 2020 which was rolled forward to June 30, 2021. Actuarially determined
contribution rates are calculated as of June 30'x, two years prior to the fiscal year in which contributions are
reported.
94
ADDITIONAL SUPPLEMENTARY INFORMATION
r
r
r
F
I
I
L
I
L
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Debt Service Fund - Education
Year ended June 30, 2022
(With summarized financial information for the year ended June 30, 2021)
Revenues:
Properly taxes and assessments
Intergovernmental:
State sources
Total revenues
Expenditures:
General government
Debt service:
Principal
Interest
Debt issuance costs
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Proceeds from issuance of refunding debt
Premium on refunding debt
Payment to bond refunding escrow agent
Proceeds from issuance of debt
Transfers in - General Fund
Transfers in - Facilities Special Revenue Fund
Transfers in - Renewal and Replacement
Projects Capital Project Fund
Net other financing sources
Change in fund balance
Fund balance, at beginning of year
Fund balance, at end of year
2,303,196 2,303,196 2,303,196 —
2,303,196 2,303,196 2,303,196
$ (28,984) (28,984) 11,821,775
641,401
$ 12,463,176
` 95
37,350,000
857,176
(37,981,510)
43,647
3,016,076
827,316
1.574.487
11,850,759 75,487
565,914
641,401
2022
Variance with
Final Budget —
Bud et
Positive
2021
riginal
Final
Actual
(Negative)
Actual
$ 2,466,333
2,466,333
2,415,377
(50,956)
2,256,514
2,773,113
2,773,113
14,669,216
11,896,103
230,218
5,239,446
5,239,446
17,084,593
11,845,147
2,486,732
12,600
12,600
6,990
5,610
10,214
5,840,000
5,840,000
5,840,000
—
4,850,000
1,719,026
1,719,026
1,719,024
2
2,986372
251,851
7,571,626
7,571,626
7,566,014
5,612
8,098,437
(2,332,180)
(2,332,180)
9,518,579
11,850,759
(5,611,705)
2,303,196 2,303,196 2,303,196 —
2,303,196 2,303,196 2,303,196
$ (28,984) (28,984) 11,821,775
641,401
$ 12,463,176
` 95
37,350,000
857,176
(37,981,510)
43,647
3,016,076
827,316
1.574.487
11,850,759 75,487
565,914
641,401
(This page was left blank intentionally.)
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue
See Special Revenue section of this report.
Capital Projects
See Capital Projects section of this report.
r
I
r
r
I
r
I
L
L
L
L
L
KODIAK ISLAND BOROUGH
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
(With summarized financial information at June 30, 2021)
96
Special
Capital
Revenue
Project
Totals
Assets
Funds
Funds
2022
2021
Equity in central treasury
$
5,117,589
8,201,222
13,318,811
12,709,663
Receivables:
State of Alaska
54,545
Federal government
92,440
Property taxes, net
15,553
5,449
21,002
32,264
Land sales contracts, due within one year
11,015
-
11,015
9,897
Accounts and other receivables, net
36,821
-
36,821
78,416
Prepaid items
6,048
-
6,048
-
Due from KIBSD
-
313,444
313,444
-
Land sale contracts, due after one year
39,057
-
39,057
50,824
Total assets
$
5,226,083
8,520,115
13,746,198
13,028,049
Liabilities, Deferred Inflows of
Resources and Fund Balances
Liabilities:
Accounts payable
$
260,243
293,265
553,508
191,302
Customer deposits
1,450
1,450
1,000
Due to other funds
6,778
Unearned revenues
2,000
14,508
16,508
20,096
Total liabilities
263,693
307,773
571,466
219,176
Deferred inflows of resources -
Unavailable revenues
65,545
5,449
70,994
88,479
Total liabilities and deferred
inflows of resources
329,238
313,222
642,460
307,655
Fund balances:
Nonspendable
6,048
-
6,048
-
Restricted
47,010
-
47,010
153,535
Committed
4,844,771
-
4,844,771
5,794,259
Assigned
-
8,206,893
8,206,893
6,772,600
Unassigned
(984)
-
(984)
-
Total fund balances
4,896,845
8,206,893
13,103,738
12,720,394
Total
$
5,226,083
8,520,115
13,746,198
13,028,049
96
I
KODIAK ISLAND BOROUGH
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances p
Nonmajor Governmental Funds
Year ended June 30, 2022
( With summarized financial information for year ended June 30, 202 1) a
Special Capital
Revenue Project Totals
Funds Funds 2022 2021
Revenues:
Properly taxes and assessments
Transient accommodations tax
Intergovernmental:
State sources
Federal sources
Charges for services
Licenses, permits and fees
Investment income (loss)
Rental
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Community and economic development
Service district maintenance
Capital outlay:
Schools
General
Community development
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Land sales proceeds
Proceeds from sale of bonds
Transfers in
Transfers out
Net other financing sources (uses)
Change in fund balances
Fund balances, at beginning of year
Fund balances, at end of year
$ 1,546,551
1,546,551
1,505,537
101,447
-
101,447
50,983
7,899
-
7,899
70,041
13,021
76,082
89,103
204,748
839,987
-
839,987
878,153
33,600
-
33,600
34,800
(343,519)
1,180
(342,339)
20,509
8,400
-
8,400
13,450
63,643
467,188
530,831
352,538
2,271,029
544,450
2,815,479
3,130,759
687,676
-
687,676
620,973
422,862
-
422,862
427,355
228,300
228,300
75,220
856,657
-
856,657
647,976
-
137,568
137,568
367,008
6,500
510,080
516,580
803,272
25,540
2,201,995
647,648
2,849,643
2,967,344
69,034
(103,198)
(34,164)
163,415
15,440
-
15,440
62,805
-
-
-
2,640,422
5,000
1,982,389
1,987,389
282,286
(1,140,423)
(2,577)
(1,143,000)
(1,841,701)
(1,119,983)
1,979,812
859,829
1,143,812
(1,050,949)
1,876,614
825,665
1,307,227
5,947,794
6,330,279
12,278,073
11,413,167
$ 4,896,845
8,206,893
13,103,738
12,720,394
97
NONMAJOR SPECIAL REVENUE FUNDS
The Fire Protection Area No. 1 Fund accounts for the activities related to fire suppression and fire prevention
services to the citizens of the service area.
The Womens Bay Fire Department Fund accounts for the activities related to fire suppression and fire prevention
services to the citizens of the service area.
The Kodiak Airport Fire District Fund accounts for the activities related to fire suppression and fire prevention
services to the citizens of the service area.
The Monashka Bay Road Service Area Fund accounts for the activities related to road services within the service
area.
The Service Area No. 1 Fund accounts for the activities related to maintenance service to roads within the district,
including snow removal, ditching and grading.
The Womens Bay Road Service Area Fund accounts for the activities related to maintenance service to roads
within the service area, including snow and ice removal, ditching and culvert work.
The Bay View Road Service Area Fund accounts for the activities related to road services within the service area.
The Service Area No. 2 Fund accounts for the activities related to water and sewer services in the service area.
This fund is in the design stage at present.
The Local Emergency Planning Committee (L.E.P.C.) Fund accounts for State of Alaska grants provided for
regional emergency preparation, response, and mitigation planning.
The Land Sales Fund accounts for the disposal of Borough -owned lands. The proceeds of land disposals are
generally used for the management of Borough lands and the repairs and maintenance of Borough school buildings.
The Buildings and Grounds Fund accounts for the operations and maintenance of certain buildings and grounds
owned by the Borough which are jointly shared with the City of Kodiak, the Kodiak Island Borough School
District, and certain nonprofit community organizations.
The Woodland Acres Street Light Service Area Fund accounts for activities related to the provision of street
lighting within the service area.
The Trinity Islands Street Light Service Area Fund accounts for activities related to the provision of street
lighting within the service area.
The Tourism Development Fund accounts for the collection of the Borough Transient Accommodation Tax (Bed
Tax) and its subsequent transfer to the Kodiak Island Convention and Visitor Bureau.
The Mission Lake Tide Gate Fund accounts for activities related to maintaining the tide gate for the residents of
the service area.
The Fern Fuller Trust Fund accounts for the distribution of funds to the beneficiaries of the trust.
The Trinity Islands Paving Fund accounts for activities related to the provision of paving within the service area.
The Oil Spill Disaster Fund accounts for activities related to the grounding of the drilling vessel Kulluk.
KODIAK ISLAND BOROUGH
Nonmejor Special Revenue Fonds
Combining Balance Shed
lune 30, 2022
( With summaneed financial information at June 30, 202 1)
Liabilities:
erre ants nova
crmvice meas
State Grant
12,690
6,066
Fire
38,621
107,251
32,125
Road
Customer deposits
Pragram
1,450
Fire
Womens
Kodiak
Monashka
-
Worsens
Due to other funds
-
-
-
Protection
Buy Fire
Airport Fire
Bay Road
Service
Bay Road
Bay View Road
Service Area
Assets
Area No. 1
Department
District
Service Area
Area No. 1
Service Area
Service Area
No. 2
LE.P.C.
Equity in central treasury
$ 650.370
816,308
52045
239,809
996,947
31.141
52,865
6,003
22,824
Receivables:
Unavailable revenues
5,598
413
3,162
693
4,770
825
State of Alaska
-
-
-
-
-
-
-
-
-
Properry taxes, net
5,598
413
3,242
693
4,770
825
-
-
-
Land sales contracts. due within one year
-
-
-
-
-
-
-
-
-
Accounts and other receivables. net
-
-
-
-
-
-
-
-
-
Prepaid items
2,807
3,241
-
-
-
-
-
637,680
-
Land sale contracts, due after one year
201,188
889,696
-
52,772
6,003 22,824
-
-
-
-
Total
S 658,775
819,962
55,287
240,502
1,001 717
31,966
52,865
fi 003
22,824
Liabilities, Deferred Inflows of Resources,
(984)
52,772
6,003 22,824
Total
$ 658,775
819,962
55,287
240,502
1,001,717
and Fund Balances
52,865
6,003 22,824
Liabilities:
Accows payable
12,690
6,066
-
38,621
107,251
32,125
93
Customer deposits
-
1,450
-
-
-
-
-
Due to other funds
-
-
-
-
-
-
- -
Unearned revenues
1,000
Total liabilities
12,690
8,516
38,621
107,251
32,125
93
Deferred inflows ofresources:
Unavailable revenues
5,598
413
3,162
693
4,770
825
Total liabilities and deferred
inflows ofmsources
18,288
8,929
3,162
39,314
112,021
32,950
93
Fund balances.
Nonspendable
2.807
3,241
-
-
-
-
-
- -
R uftwwd
-
-
-
-
-
-
-
- -
Committed
637,680
807.792
52,125
201,188
889,696
-
52,772
6,003 22,824
Unassigned
(984)
-
- -
Totalfundbalances
640,487
811,033
52,125
201,188
889,696
(984)
52,772
6,003 22,824
Total
$ 658,775
819,962
55,287
240,502
1,001,717
31,966
52,865
6,003 22,824
(continued)
98
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Combining Balance Sheer, (continued)
June 30.2022
(With summarized financial information at lune 30,202 1)
�99at�
Street Lighting
Districts
Woodland
Buildings
Acres Street
Trinity Islands
Commercial
Opioiod
and
Light Service
Street Light
Tourism
Passenger
Mission Lake
Class Action
Tomb
Assets
Land Sales
Grounds
Area
Service Area
Development
Vessel
Tide Gam
Settlement
2022
2021
Equity in central treasury
$
1,316.128
703.321
20,039
30,177
67.167
47,010
58,779
6,656
5,117,589
5,985,014
Receivables:
State of Alaska
-
-
-
-
-
-
-
-
-
54,220
Property taxes, net
-
-
12
-
-
-
-
-
15,553
24.120
Land sales causes. due within one year
11,015
-
-
-
-
-
-
-
11,015
9,897
Accounts and other receivables, net
5,847
-
-
-
30,974
-
-
-
36,821
78,416
Prepaid items
-
-
-
-
-
-
-
-
6,048
-
Land sale contracts, due after one year
39,057
-
-
-
-
-
-
-
39,057
50,824
Total
$
1372,047
703,321
20,051
30,177
98,141
47,010
58,]79
6,656
5,226.083
6,202.491
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:
Accounts payable
-
62,815
470
112
-
-
-
-
260,243
155,005
Customer deposits
-
-
-
-
-
-
-
-
1,450
1,000
Due to other funds
-
-
-
-
-
-
-
-
-
6.778
Unearned revenues
1,000
-
-
2,000
10,448
Total liabilities
1,000
62,815
470
112
-
-
263,693
173,231
Deferred inflows of resources:
Unavailable revenues
50,072
12
-
-
-
65,545
81,466
Total liabilities and deferred
inflows ofresources
51,072
62,815
482
112
-
-
-
329,238
254,697
Fond balances:
Nonspendable
-
-
-
-
-
-
-
-
6,048
-
Restricted
-
-
-
-
-
47,010
-
-
47,010
153,535
Committed
1.320,975
640.506
19,569
30,065
98,141
-
58,779
6,656
4,844,771
5,794.259
Unassigned
-
-
-
-
-
-
-
(984)
-
Total fund balances
1,320,975
640,506
19,569
30,065
98,141
47,010
58,779
6,656
4,896,845
5,947,794
Total
S
1372,047
703,321
20,051
30,177
98,141
47,010
58,779
6.656
5,226,083
6.202,491
�99at�
r r- r- r r = r" -aa "- -7 --1 °-" --1 7 - , 1
Revenues.
Property taxes and assessments
Transient accommodations tax
Intergovernmental:
State sources
Federal sources
Charges for services
Licenses, permits and fees
Investment income
Rental
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Community and economic
development
Service district maintenance
Capital outlay - general
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Land sale proceeds
Transfers in
Transfers out
Net other financing sources (uses)
Change in fund balances
Fund balances, at beginning ofycar
Fund balances (deficit), at end of year
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances (Deficit)
Year ended June 30, 2022
( With Summarized financial information for the year ended lune 30, 202 1)
2,999 - - - - - - - -
4,500 8,521 - - - - - - -
- 16,420 - - - - - - -
- - - - 27,600 - - -
(46,900) (50,689) (2,998) (15,151) (66,350) (6,391) (3,382) (364) -
- 8,400 - - - - - - -
1,847 300 365
634,170 94,067 17,007 38,430 386,011 235,330 11,171 (364)
358,335 48,021 16,506 - - - - - -
- - - 92,9% 447,158 303,030 10,591 - -
6,500
364,835 48,021 16,506 92,9% 447,158 303,030 10,591
269,335 46,046 501 (54,566) (61,147) (67,700) 580 (364)
2,577 - - - - - - - -
2,577 - - - - - - - -
271,912 46,046 501 (54,566) (61,147) (67,700) 580 (364) -
368,575 764,987 51,624 255,754 950,843 66,716 52,192 6,367 22,824
$ 640,487 811,033 52,125 201,188 889,696 (984) 52,772 6,003 22,824
(continued)
100
Fire and Road Service Areas
State Grant
Fire
Road
Program
Fire
Womens
Kodiak
Monashka
Womens
Protection
Bay Fire
Airport Fire
Bay Road Service
Bay Road
Bay View Road Service
Area No. 1
Department
District
Service Area Area No. 1
Service Aro
Service Area Ares No.2
L.E.P.C.
$ 671,724
111,115
20,005
53,581 451,996
214,121
14,553 -
-
2,999 - - - - - - - -
4,500 8,521 - - - - - - -
- 16,420 - - - - - - -
- - - - 27,600 - - -
(46,900) (50,689) (2,998) (15,151) (66,350) (6,391) (3,382) (364) -
- 8,400 - - - - - - -
1,847 300 365
634,170 94,067 17,007 38,430 386,011 235,330 11,171 (364)
358,335 48,021 16,506 - - - - - -
- - - 92,9% 447,158 303,030 10,591 - -
6,500
364,835 48,021 16,506 92,9% 447,158 303,030 10,591
269,335 46,046 501 (54,566) (61,147) (67,700) 580 (364)
2,577 - - - - - - - -
2,577 - - - - - - - -
271,912 46,046 501 (54,566) (61,147) (67,700) 580 (364) -
368,575 764,987 51,624 255,754 950,843 66,716 52,192 6,367 22,824
$ 640,487 811,033 52,125 201,188 889,696 (984) 52,772 6,003 22,824
(continued)
100
KODIAK ISLAND 130ROUGH
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances (Deficit), (continued)
Year ended June 30, 2022
( With summarized financial information for the year ended June 30, 202 1)
�1.0.1q.
Street Lighting Districts
Buildings
Woodland Acres
Trinity Islands
Commercial
Opioid
and
Sheet Light
Street Light
Tourism
Passenger
Mission Lake
Class Action
Totals
Land Sales
Grounds
Service Area
Service Area
Development
Vessel
Tide Gale
Settlement
2022
2021
Revenues:
Property taxes and assessments
S -
-
5,899
1,922
-
-
1,635
-
1,546,551
1,494,301
Transient accommodations tax
-
-
-
-
101,447
-
-
-
101,447
50,983
Intergovernmental'.
State sources
-
4,900
-
-
-
-
-
-
7,899
67,077
Federal sources
-
-
-
-
-
-
-
-
13,021
69,794
Charges for services
5,585
817,982
-
-
-
-
-
-
839987
878,153
Licenses, permits and fees
6,000
-
-
-
-
-
-
-
33,600
34,800
Investment income
(82.725)
(49,337)
(1,310)
(1,854)
(4,725)
(7,673)
(3,615)
(55)
(343,519)
20,338
Rental
-
-
-
-
-
-
-
-
8,400
13,450
Other
80
120
54,220
6,711
63,643
51,431
Total revenues
(71,060)
773,665
4,589
68
96,722
46,547
(1,980)
6,656
2,271,029
2,680,327
Expenditures:
Current:
General govemment
63,704
616,843
5,623
1,506
-
-
-
-
687,676
620,973
Public safety
-
-
-
-
-
-
-
-
422,862
427,355
Community and economic
development
-
-
-
-
75,228
153,072
-
-
228,300
75,220
Service district maintenance
-
-
-
-
-
-
2,882
-
856,657
647,976
Capital outlay- general
-
-
-
-
-
-
-
6,500
7,780
Total expenditures
63,704
616,843
5,623
1,506
75,228
153,072
2,882
-
2,201,995
1,779,304
Excess (deficiency) ofrevenues
over expenditures
(134,764)
156,822
(1,034)
(1,438)
21,494
(106,525)
(4,862)
6,656
69,034
901,023
Other financing sources (uses):
Land sales proceeds
15,440
-
-
-
-
-
-
-
15,440
62,805
Transfers in
-
5,000
-
-
-
-
-
-
5,000
130,072
Transfers out
(1,143,000)
-
-
(1,140,423)
(152,214)
Net other financing sources (uses)
15,440
(1,138,000)
-
-
-
-
-
-
(1,119,983)
40,663
Change in fund balances
(119324)
(981,178)
(1,034)
(1,438)
21,494
(106,525)
(4,862)
6,656
(1,050,949)
941,686
Fund balances, at beginning ofyesr
1,440,299
1,621,684
20,603
31,503
76,647
153,535
63,641
-
5,947,794
5,006,108
Fund balances, at end ofycar
S 1,320,975
640,506
19,569
30,065
98,141
47,010
58,779
6,656
4,896,845
5,947,794
�1.0.1q.
F
I
I
I
I
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 lune 30, 2022
(With financial information for the year ended June 30, 202 1)
Revenues:
Property taxes and assessments
Intergovernmental:
F- State sources - PERS on -behalf payment
I Federal sources
Investment income (loss)
Other
I
I
I
Total revenues
Expenditures:
Public safety:
Personnel
Volunteers
Fringe benefits
Professional services
Support goods and services
Repairs and maintenance
Total public safety
Capital outlay - general
Total expenditures
Excess of revenues
over expenditures
Other financing sources (uses):
Transfers in - Other Capital Projects
Capital Project Fund
Change in fund balance
Fund balance, at beginning of year
Fund balance, at end of year
2022
Variance with
Final Budget
Final Positive 2021
Budget Actual (Negative) Actual
$ 642,147
671,724
29,577
642,725
5,000
2,999
(2,001)
6,432
100,000
4,500
(95,500)
17,464
500
(46,900)
(47,400)
1,003
2,000
1,847
(153)
4,791
749,647
634,170
(115,477)
672,415
127,000
65,846
61,154
96,646
51,200
55,483
(4,283)
30,180
92,100
43,571
48,529
65,311
9,000
14,857
(5,857)
9,034
247,250
159,061
88,189
116,298
18,000
19,517
(1,517)
14,108
544,550
358,335
186,215
331,577
210,000
6,500
203,500
7,780
754,550
364,835
389,715
339,357
(4,903)
269,335
274,238
333,058
-
2,577
2,577
(52,214)
$ (4,903)
271,912
276,815
280,844
368,575
87,731
$
640,487
368,575
102
L
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, 2022
(With financial information for the year ended June 30, 2021)
103
2022
Variance with
Final Budget
Final
Positive
2021
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes and assessments
$ 108,500
111,115
2,615
110,445
Intergovernmental - federal sources
-
8,521
8,521
1,217
Charges for services
16,700
16,420
(280)
18,657
Investment income (loss)
2,000
(50,689)
(52,689)
2,601
Rental
12,000
8,400
(3,600)
13,450
Other
-
300
300
1,205
Total revenues
139,200
94,067
(45,133)
147,575
Expenditures:
Public safety:
Personnel services
2,000
546
1,454
789
Fringe benefits
875
76
799
2,007
Professional services
11,000
2,229
8,771
5,396
Support goods and services
110,325
44,267
66,058
49,143
Repairs and maintenance
15,000
903
14,097
16,774
Total public safety
139,200
48,021
91,179
74,109
Capital outlay - general
-
-
-
Total expenditures
139,200
48,021
91,179
74,109
Excess of revenues
over expenditures
-
46,046
46,046
73,466
Other financing (uses):
Transfers out - Other Capital Projects
Capital Project Fund
(75,000)
-
75,000
-
Change in fund balance
$ (75,000)
46,046
121,046
73,466
Fund balance, at beginning of year
764,987
691,521
Fund balance, at end of year
$
811,033
764,987
103
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, 2022
( With financial information for the year ended June 30, 202 1)
Revenues:
Property taxes and assessments
Investment income (loss)
Total revenues
Expenditures:
Public safety:
Professional services
Support goods and services
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balance, at beginning of year
Fund balance, at end of year
2022
18,700 16,420 2,280 18,657
$ — 501 501 (1,968)
104
51,624
$ 52,125
53,592
51,624
Variance with
Final Budget
Final
Positive
2021
Budget
Actual
(Negative)
Actual
$ 18,670
20,005
1,335
16,578
280
(2,998)
(3,278)
209
18,950
17,007
(1,943)
16,787
18,700 16,420 2,280 18,657
$ — 501 501 (1,968)
104
51,624
$ 52,125
53,592
51,624
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, 2022
( With financial information for the year ended June 30, 2021)
Revenues:
Property taxes and assessments
Investment income (loss)
Total revenues
Expenditures:
Service district maintenance:
Personnel services
Fringe benefits
Support goods and services
Snow removal/sanding
Road grading/ditching
Repairs and maintenance
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balance, at beginning of year
Fund balance, at end of year
$ (65,000) (54,566) 10,434
255,754
$ 201,188
105
40,942
214.812
255.754
2022
Variance with
Final Budget
Final
Positive
2021
Budget
Actual
(Negative)
Actual
$ 52,116
53,581
1,465
53,172
—
(15,151)
(15,151)
861
52,116
38,430
(13,686)
54,033
600
56
544
49
—
57
(57)
28
1,600
109
1,491
120
23,000
22,431
569
6,983
23,000
1,136
21,864
5,911
68,916
69,207
(291)
—
117,116
92.996
24.120
13,091
$ (65,000) (54,566) 10,434
255,754
$ 201,188
105
40,942
214.812
255.754
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KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas - Service Area No. I
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2022
(With financial information for the year ended June 30, 202 1)
106
2022
Variance with
Final Budget
Final
Positive
2021
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes and assessments
$ 433,000
451,996
18,996
434,096
Investment income (loss)
-
(66,350)
(66,350)
3,664
Other
-
365
365
20,481
Total revenues
433,000
386,011
(46,989)
458,241
Expenditures:
Service district maintenance:
Personnel services
8,800
5,595
3,205
4,998
Fringe benefits
2,350
1,303
1,047
760
Support goods and services
13,600
5,744
7,856
3,046
Snow removal/sanding
200,000
213,159
(13,159)
106,454
Road grading/ditching
60,000
35,580
24,420
41,356
Repairs and maintenance
193,250
185,777
7,473
154,599
Total expenditures
478,000
447,158
30,842
311,213
Excess (deficiency) of revenues
over expenditures
$ (45,000)
(61,147)
(16.147)
147,028
Fund balance, at beginning of year
950,843
803,815
Fund balance, at end of year
$
889,696
950,843
106
L
KODIAK ISLAND BOROUGH
214,121
Nonmajor Special Revenue Funds
212,809
Fire and Road Service Areas— Warrens Bay Road Service Area
27,600
Schedule of Revenues, Expenditures, and Changes in Fund Balance (Deficit)
27,600
Budget and Actual
(6,391)
Year ended June 30, 2022
p
( With financial information for the year ended June 30, 2021)
235,330
(4,270)
a
2022
Variance with
0
Final Budget
-
Final Positive 2021
669
Budget Actual (Negative) Actual
—
18,750
Irl
Revenues:
Property taxes and assessments
Licenses, permits and fees
Investment income (loss)
Total revenues
Expenditures:
Service district maintenance:
Personnel services
Fringe benefits
Support goods and services
Snow removal/sanding
Road grading/ditching
Repairs and maintenance
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balance, at beginning of year
Fund balance (deficit), at end of year
$ 212,000
214,121
2,121
212,809
27,600
27,600
—
27,600
—
(6,391)
(6,391)
845
239,600
235,330
(4,270)
241,254
850
60
790
-
-
669
(669)
—
18,750
—
18,750
389
101,000
112,431
(11,431)
54,998
50,000
21,950
28,050
59,639
100,000
167,920
(67,920)
195,072
270,600
303,030
(32,430)
310,098
$ (31,000)
(67,700)
(36,700)
(68,844)
107
66,716
$ (984)
135,560
66,716
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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, 2022
(With financial information for the year ended June 30, 2021)
108
2022
Variance with
Final Budget
Final
Positive
2021
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes and assessments
$ 14,500
14,553
53
15,445
Investment income (loss)
—
(3,382)
(3,382)
193
Total revenues
14,500
11,171
(3,329)
15,638
Expenditures:
Service district maintenance:
Personnel services
500
130
370
49
Fringe benefits
175
77
98
42
Professional services
5,305
—
5,305
—
Support goods and services
120
84
36
88
Snow removal/sanding
30,400
6,403
23,997
1,697
Road grading/ditching
1,100
142
958
4,104
Repairs and maintenance
1,900
3,755
(1,855)
6,918
Total expenditures
39,500
10,591
28,909
12,898
Excess (deficiency) of revenues
over expenditures
$ (25.000)
580
25.580
2,740
Fund balance, at beginning of year
52,192
49,452
Fund balance, at end of year
$
52,772
52,192
108
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, 2022
(With financial information for the year ended June 30, 2021)
Revenues:
Investment income (loss)
Expenditures:
Service district maintenance -
Support goods and services
Excess (deficiency) of revenues
over expenditures
Fund balance, at beginning of year
Fund balance, at end of year
2022
Variance with
Final Budget
Final Positive 2021
Budget Actual (Negative) Actual
$ (364) (364) 22
$ — (364) (364) 22
6,367 6,345
S 6,003 6,367
109
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
L.E.P.C.
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2022
(With financial information for the year ended June 30, 2021)
Revenues:
Intergovernmental:
Federal sources
Expenditures:
Public safety:
Personnel services
Fringe benefits
Support goods and services
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources:
Transfer in - General Fund
Change in fund balance
Fund balance, at beginning of year
Fund balance, at end of year
Final
Budget
3,000
3,000
(3,000)
$ (3,000)
2022
Variance with
Final Budget
Positive 2021
Actual (Negative) Actual
22,824
$ 22,824
2,666
2,409
— 256
3,000 249
3,000 2,914
3,000 (248)
3,000
10,072
9,824
13,000
22,824
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, 2022
( With financial information for the year ended June 30, 2021)
Revenues:
Charges for services
Licenses, permits and fees
Investment income (loss)
Other
Total revenues
Expenditures:
General government:
Personnel services
Support goods and services
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources:
Land sale proceeds
Change in fund balance
Fund balance, at beginning of year
Fund balance, at end of year
1,000 1,000 1,000
60,680 63,704 (3,024) 20,757
61,680 - 63,704 (2,024) 21,757
(29,600) (134,764) (105,164) 28,637
29,600 15,440 (14,160) 62,805
$ — (119,324) (119.324) 91,442
1,440,299 1.348,857
$ 1,320,975 1.440.299
111
2022
Variance with
Final Budget
Final
Positive
2021
Budget
Actual
(Negative)
Actual
$ 8,000
5,585
(2,415)
38,202
6,000
6,000
—
7,200
18,000
(82,725)
(100,725)
4,892
1,000 1,000 1,000
60,680 63,704 (3,024) 20,757
61,680 - 63,704 (2,024) 21,757
(29,600) (134,764) (105,164) 28,637
29,600 15,440 (14,160) 62,805
$ — (119,324) (119.324) 91,442
1,440,299 1.348,857
$ 1,320,975 1.440.299
111
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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, 2022
( With financial information for the year ended June 30, 2021)
Revenues:
Intergovernmental:
State sources - PERS on -behalf payment
Federal sources
Charges for services
Investment income (loss)
Other
Total revenues
L
L
L
L
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Transfers in:
Facilities Special Revenue Fund
Renewal and Replacement Projects
Capital Project Fund
Transfers out:
Other Capital Projects Capital Project Fund
Borough Capital Projects
Capital Project Fund
Renewal and Replacement Projects
Capital Project Fund
Net other financing sources (uses)
Change in fund balance
Fund balance, at beginning of year
Fund balance, at end of year
2022
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
2021
$ 6,266
Expenditures:
(1,366)
General government:
525,243
School buildings
172,107
Borough building
830,531
Mental health center
Various borough buildings
(12,549)
Total expenditures
L
L
L
L
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Transfers in:
Facilities Special Revenue Fund
Renewal and Replacement Projects
Capital Project Fund
Transfers out:
Other Capital Projects Capital Project Fund
Borough Capital Projects
Capital Project Fund
Renewal and Replacement Projects
Capital Project Fund
Net other financing sources (uses)
Change in fund balance
Fund balance, at beginning of year
Fund balance, at end of year
2022
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
2021
$ 6,266
4,900
(1,366)
6,425
525,243
353,136
172,107
48,447
830,531
817,982
(12,549)
821,294
5,000
(49,337)
(54,337)
4,949
1,193,393
120
120
24,854
841,797
773,665
(68,132)
905,969
589,200
222,267
366,933
180,890
525,243
353,136
172,107
390,825
43,850
29,587
14,263
4,778
35,100
11,853
23,247
15,565
1,193,393
616,843
576,550
592,058
(351,596)
156,822
508,418
313,911
5,000
5,000
-
5,000
115,000
(500,000)
-
500,000
-
(28,000)
(28,000)
-
(25,000)
(1,100,000)
(1,115,000)
(15,000)
(75,000)
(1,623,000)
(1,138,000)
485,000
20,000
$ (1,974.596)
(981,178)
993,418
333,911
1,621,684
1,287,773
$
640.506
1.621.684
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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, 2022
(With financial information for the year ended June 30, 2021)
113
2022
Variance with
Final Budget
Final
Positive
2021
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes and assessments
$ 5,540
5,899
359
5,636
Investment income (loss)
—
(1,310)
(1,310)
80
Total revenues
5,540
4,589
(951)
5,716
Expenditures:
General government -
Support goods and services
5,540
5,623
(83)
5,577
Excess (deficiency) of revenues
over expenditures
$
(1,034)
(1,034)
139
Fund balance, at beginning of year
20,603
20,464
Fund balance, at end of year
$
19,569
20,603
113
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, 2022
( With financial information for the year ended June 30, 2021)
Revenues:
Property taxes and assessments
Investment income (loss)
Total revenues
Expenditures:
General government -
Support goods and services
Excess (deficiency) of revenues
over expenditures
Fund balance, at beginning of year
Fund balance, at end of year
114
2022
Variance with
Final Budget
Final
Positive
2021
Budget
Actual
(Negative)
Actual
$ 1,875
1,922
47
1,899
—
(1,854)
(1,854)
113
1,875
68
(1,807)
2,012
1,875
1,506
369
1,581
$ —
(1,438)
(1,438)
431
31,503
31,072
$
30,065
31.503
114
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, 2022
(With financial information for the year ended June 30, 2021)
115
2022
Variance with
Final Budget
Final
Positive
2021
Budget
Actual
(Negative)
Actual
Revenues:
Transient accommodations tax
$ 15.200
101,447
86,247
50,983
Investment income (loss)
(4,725)
(4,725)
331
Total revenues
15,200
96,722
81,522
51,314
Expenditures:
Community and economic development:
Contributions
75,000
75,000
—
75,000
Support goods and services
400
228
172
143
Total expenditures
75,400
75,228
172
75,143
Excess (deficiency) of revenues
over expenditures
$ (60,200)
21,494
81,694
(23,829)
I and balance, at beginning of year
76.647
100,476
Fund balance, at end of year
$ 98.141
76.647
115
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Commercial Passenger Vessel
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended lune 30, 2022
( With financial information for the year ended June 30, 202 1)
116
2022
Variance with
Final Budget
Final
Positive
2021
Budget
Actual
(Negative)
Actual
Revenues:
Intergovernmental - State sources -
Commercial passenger vessel tax
$
54,220
Investment income (loss)
(7,673)
(7,673)
351
Other
54,220
54,220
—
Total revenues
—
46,547
46,547
54,571
Expenditures:
Community and economic development -
Support goods and services
155,000
153,072
1.928
77
Excess (deficiency) of revenues
over expenditures
$ (155,000)
(106,525)
48.475
54.494
Fund balance, at beginning of year
153,535
99.041
Fund balance, at end of year
$
47.010
153.535
116
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, 2022
( With financial information for the year ended June 30, 2021)
Revenues:
Property taxes and assessments
Investment income (loss)
Total revenues
Expenditures:
Service district maintenance:
Personnel services
Fringe benefits
Support goods and services
Repairs and maintenance
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balance, at beginning of year
Fund balance, at end of year
2022
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
I
I
1'
It
If
C
2021
1,635
Actual
1,496
$ 1,572
1,635
63
1,496
557
(3,615)
(4,172)
224
2,129
(1,980)
(4,109)
1,720
200
669
(469)
358
145
276
(131)
241
115
74
41
77
3,169
1,863
1,306
—
3,629
2,882
747
676
$ (1,500)
(4,862)
(3,362)
1,044
a
63,641
62,597
$
58,779
63,641
n
117
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Opioid Class Action Settlement
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2022
(With financial information for the year ended June 30, 2021)
Revenues:
Investment income (loss)
Other income
Total revenues
Expenditures:
General government:
Support goods and services
Excess of revenues
over expenditures
Fund balance, at beginning of year
Fund balance, at end of year
2022
Variance with
Final Budget
Final
Positive 2021
Budget Actual
(Negative) Actual
$ (55)
(55)
6,711
6,711 —
6,656
6,656 —
6,656 6,656 —
J V,VJV
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NONMAJOR CAPITAL PROJECT FUNDS
The Borough Capital Projects Fund accounts for capital improvement projects
related to various financing sources.
The School Bond Capital Projects Fund accounts for educational related capital
projects funded by general obligation bonds which will be paid for with property taxes
and State of Alaska grants.
The State Capital Grants Fund accounts for capital improvement projects relating
to grants received from the State of Alaska.
The School Renewal and Replacement Facilities Bond Projects accounts for bond
funded renewal and replacement projects for the Borough's schools.
The Other Capital Projects Fund accounts for capital improvement projects related
to various financing sources.
Assets
Equity in central treasury
Receivables:
State of Alaska
Federal government
Property taxes
Due from KIBSD
Total
Liabilities and Fund Balances
Liabilities:
Accounts payable
Uneamed revenues
Total liabilities
Deferred inflows of resources:
Unavailable revenues
Total liabilities and deferred
inflows of resources
Fund balances:
Assigned
Total
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Funds
Combining Balance Sheet
June 30, 2022
( With summarized financial information at lune 30, 2021)
11,772
280,448
972
73
School Renewal
36,297
14,508
Borough
School Bond
Kodiak High
Renewal and
and Replacement
Other
972
73
Capital
Capital
School
Replacement
Facilities Bond
Capital
Totals
Projects
Projects
Renovation
Projects
Projects
Projects
2022
2021
$ 938,770
37,719
742,275
3,462,213
890,052
2,130,193
8,201,222
6,724,649
-
-
-
-
-
-
-
325
-
-
-
-
-
-
-
92,440
-
-
-
5,449
5,449
8,144
210,736
102,708
313,444
$ 938,770
37,719
742,275
3,678,398
992,760
2,130,193
8,520,115
6,825,558
11,772
280,448
972
73
293,265
36,297
14,508
14,508
9,648
11,772
- - 294,956
972
73
307,773
45,945
5,449
5,449
7,013
11,772
300,405
972
73
313,222
52,958
926,998
37,719 742,275 3,377,993
991,788
2,130,120
8,206,893
6,772,600
S 938,770
37,719 742,275 3,678,398
992,760
2,130,193
8,520,115
6,825.558
119
Revenues:
Property lazes and assessments
Intergovernmental:
State sources
Federal sources
Investment income
Other
Total revenues
Expenditures:
Capital outlay:
Schools
General
Community development
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Proceeds from issuance of debt
Transfers in
Transfers out
Net other financing sources (uses)
Change in fund balances
Fund balances, at beginning of year
Fund balances, at end of year
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Year ended June 30, 2022
(With summarized financial information for the year ended June 30, 2021)
(33,473)
1,180
(181,162) (17,649) 127,906 (103,198) (737,608)
-
- - -
- -
School Renewal
2,640,422
328,000
- - 1,654,389
Borough
School Bond
Kodiak High Renewal and
and Replacement
Other
(2,577)
(2,577)
Capital
Capital
School Replacement
Facilities Bond
Capital
Totals
294,527
Projects
Projects
Renovation Projects
Projects
Projects
2022
2021
$ -
-
- -
-
-
-
11,236
-
-
- -
-
-
-
2,964
-
-
- -
-
76,082
76,082
134,954
-
1,180
- -
-
-
1,180
171
197,665
119,919
149,604
467,188
301,107
1,180
197,665
119,919
225,686
544,450
450,432
-
-
137,568
-
137,568
367,008
33,473
-
- 378,827
-
97,780
510,080
795,492
25,540
33,473
378,827
137,568
97,780
647,648
1,188,040
(33,473)
1,180
(181,162) (17,649) 127,906 (103,198) (737,608)
-
- - -
- -
-
2,640,422
328,000
- - 1,654,389
- -
1,982,389
152,214
(2,577)
(2,577)
(1,689,487)
328000
1,654,389
(2,577)
1,979,812
1,103,149
294,527
1.180 - 1,473,227
(17,649) 125,329
1,876,614
365,541
632,471
36,539 742,275 1,904,766
1,009,437 2,004,791
6330,279
6,407,059
$ 926,998
37,719 742,275 3,377,993
991,788 2,130,120
8,206,893
6,772,600
120
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ENTERPRISE FUNDS
The Municipal Solid Waste Collection and Disposal Fund accounts for the
collection and disposal of solid waste and recycling services for the Kodiak Island
Borough.
The Hospital Facilities Fund accounts for rents on the Borough -owned hospital,
hospital related state revenue sharing, and other hospital related revenue. In turn, it
purchases hospital equipment and makes debt service payments on hospital related
debt.
The Kodiak Fisheries Research Center Fund accounts for rents and expenses on the
Borough -owned Kodiak Fisheries Research Center. The three tenants: NOAA, Alaska
Department of Fish & Game and University of Alaska, Fairbanks pay lease funds to
participate in this multi -agency research facility committed to the preservation of the
North Pacific marine ecosystem and resources.
The 911 Service Fund accounts for funds collected from phone charges and pays for
1 a 911 emergency system.
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KODIAK ISLAND BOROUGH
Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2022
(With summarized financial information for June 30, 2021)
Assets
Current assets:
Equity in central treasury
Customer receivables
Total current assets
Capital assets:
Non -depreciable
Depreciable, net
Total capital assets
Total asset
Liabilities and Net Position
Current liabilities:
Accounts payable
Customer deposits
Unearned revenues
Total current liabilities
Net position:
Net investment in capital assets
Unrestricted
Total net position
Total liabilities and net position
L 121
Research
911
Court
Totals
Service
Apartments
2022
2021
$ 78,828
78,682
157,510
124,954
37,773
37,773
36,945
116,601
78,682
195,283
161,899
-
1,021,998
-
238,466
238,466
(749,465)
-
238,466
238,466
272,533
$ 116,601
317,148
433,749
434,432
$ 116,548
1,959
118,507
123,383
7,653
7,653
-
2,501
116,548
9,612
126,160
125,884
238,466
238,466
272,533
53
69,070
69,123
36,015
53
307,536
307,589
308,548
$ 116,601
317,148
433,749
434,432
L 121
KODIAK ISLAND BOROUGH
Combining Statement of Revenues, Expenses, and Changes in Net Position
Nonmajor Enterprise Funds
Year ended June 30, 2022
(With summarized financial information for the year ended June 30, 202 1)
Operating revenues:
Charges for services:
Lease income
Other
Total operating revenues
Operating expenses:
Personnel services
Depreciation
General and administration
Miscellaneous
Telephone services
Total operating expenses
Operating income (loss)
Nonoperating revenues:
Investment income (loss)
Change in net position
Net position, at beginning of year
Net position, at end of year
122
Research
911
Court
Totals
Service
Apartments
2021
$ -
85,518
85,518
70,261
301,289
200
301,489
301,032
301,289
85,718
387,007
371,293
1,500
7,835
9,335
12,909
34,067
34,067
34,066
277
34,470
34,747
28,050
-
6,209
6,209
4,286
299,459
-
299,459
299,204
301,236
82,581
383,817
378,515
53
3,137
3,190
(7,222)
-
(4,149)
(4,149)
88
53
(1,012)
(959)
(7,134)
-
308,548
308,548
315,682
$ 53
307,536
307,589
308,548
122
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KODIAK ISLAND BOROUGH
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
Year ended June 30, 2022
(With summarized financial information for the year ended June 30, 202 1)
Cash flows from operating activities:
Cash received from customers
rPayments to suppliers
Payments to employees
Net cash provided by
roperating activities
1 Cash flows from noncapital financing activities:
Net change in interfund receivable/payable
Cash flows from investing activities:
Interest and dividends received
Net change in cash and
cash equivalents
Cash and equivalents, at beginning of year
Cash and equivalents, at end of year
Reconciliation of operating income (loss) to net
cash provided by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation
Changes in assets and liabilities that
provided (used) cash:
(Increase) decrease in assets:
Customer receivables
Increase (decrease) in liabilities:
Accounts payable
Unearned revenues
Net cash provided by
operating activities
LNon-cash capital and related financing activities:
Transfer of capital assets between funds
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Research
911
Court
Totals
Service
Apartments
2022
2021
$ 300,461
90,870
391,331
372,416
(297,661)
(47,630)
(345,291)
(323,560)
(1,500)
(7,835)
(9,335)
(12,909)
1,300
35,405
36,705
35,947
(767)
-
(4,149)
(4,149)
88
1,300
31,256
32,556
35,268
77,528
47,426
124,954
89,686
$ 78,828
78,682
157,510
124,954
$ 53
3,137
3,190
(7,222)
-
34,067
34,067
34,066
(828)
7,653
6,825
(1,378)
2,075
(6,951)
(4,876)
7,980
-
(2,501)
(2,501)
2,501
$ 1,300
35,405
36,705
35,947
123
KODIAK ISLAND BOROUGH
Enterprise Funds
Municipal Solid Waste Collection and Disposal
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2022
(With financial information for the year ended June 30, 2021)
124
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Variance with
Final Budget
Final
Positive
2021
Budget
Actual
(Negative)
Actual
Operating revenues:
Solid waste disposal
$ 4,233,000
4,161,775
(71,225)
4,061,604
Other
2,000
11,846
9,846
63,993
Total operating revenues
4,235,000
4,173,621
(61,379)
4,125,597
Operating expenses:
Personnel services
1,395,709
1,076,559
319,150
983,913
Contracted services
497,000
291,090
205,910
314,783
Maintenance, repairs and equipment
1,335,500
121,024
1,214,476
75,667
Depreciation
280,484
171,026
109,458
298,312
General and administration
637,150
406,311
230,839
537,372
Recycling services
300,000
310,560
(10,560)
297,335
Closure and postclosure casts
-
687,590
(687,590)
805,773
Contributions
180,000
182,639
(2,639)
210,084
Total operating expenses
4,625,843
3,246,799
1,379,044
3,523,239
Operating income (loss)
(390,843)
926,822
1,317,665
602,358
Other income (expense):
Intergovernmental:
State of Alaska - PERS on -behalf payment
64,400
(30,724)
(95,124)
36,977
Federal sources
188
Investment income (loss)
100,000
(409,066)
(509,066)
27,539
Bond issuance costs
(21,329)
Interest expense
(236.555)
(126,321)
110,234
(196,512)
Total other income (expense)
(72.155)
(566,111)
(493.956)
(153,137)
Change in net position
$ (462.998)
360,711
823.709
449,221
Net position, at beginning of year
19,109,542
18,660,321
Net position, at end of year
$ 19.470.253
19,109,542
124
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KODIAK ISLAND BOROUGH
Enterprise Funds
Hospital Facilities
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2022
(With financial information for the year ended June 30, 2021)
Operating revenues:
Lease income
Interest revenue
Total operating revenue
Operating expenses:
Personnel services
Contracted services
Maintenance and repairs
Depreciation
Total operating expenses
Operating income
Other income:
Investment income (loss)
Income before transfer
Transfers out
Change in net position
Net position, at beginning of year
Net position, at end of year
L 125
2022
Variance with
Final Budget
Final
Positive
2021
Budget
Actual
(Negative)
Actual
$ 1,384,272
1,170,808
(213,464)
1,170,808
—
334,293
334,293
351,391
1,384,272
1,505,101
120,829
1,522,199
40,319
54,890
(14,571)
14,567
—
120
(120)
-
-
634
(634)
—
1,062,321
1,060,093
2,228
1,063,338
1,102,640
1,115,737
(13,097)
1,077,905
281,632
389,364
107,732
444,294
—
(147,331)
(147,331)
(3,772)
281,632
242,033
(39,599)
440,522
(85,000)
$ 281,632
242,033
(39,599)
355,522
16,739,781
16,384,259
$
16,981,814
16,739,781
L 125
KODIAK ISLAND BOROUGH
Enterprise Funds
Long Tenn Care Center
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2022
(With financial information for the year ended June 30, 2021)
Operating revenues:
Lease income
Interest revenue
Total operating revenues
Operating expenses:
Personnel services
Contracted services
Maintenance and repairs
Depreciation
General and administration
Total operating expenses
Operating income
Other income (expense):
Investment income (loss)
Bond issuance costs
Interest expense
Total other income (expense)
Income (loss) before transfers
Transfers in
Change in net position
Net position, at beginning of year
Net position, at end of year
2022
Variance with
Final Budget
Final
Positive
2021
Budget
Actual
(Negative)
Actual
$ 1,043,628
765,187
(278,441)
765,187
-
605,653
605,653
450,243
1,043,628
1,370,840
327,212
1,215,430
-
3,303
(3,303)
58,138
75,000
3,848
71,152
105,175
-
362
(362)
119,466
518,933
518,933
-
518,933
86,824
32,655
54,169
28,593
680,757
559,101
121,656
830,305
362,871
811,739
448,868
385,125
-
(161,880)
(161,880)
8,161
(52,546)
(362,871)
(111,491)
251,380
(364,375)
(362,871)
(273,371)
89,500
(408,760)
-
538,368
538,368
(23,635)
85,000
$
538,368
538,368
61,365
6,845,891
6,784,526
$
7,384,259
6,845,891
126
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Enterprise Funds
Kodiak Fisheries Research Center
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2022
( With financial information for the year ended June 30, 2021)
127
2022
Variance with
Final Budget
Final
Positive
2021
Budget
Actual
(Negative)
Actual
Operating revenues:
Lease income
$ 709,338
566,410
(142,928)
322,001
Interest revenue
38,090
384,160
346,070
397,633
Other
-
3,677
3,677
20,298
Total operating revenues
747,428
954,247
206,819
739,932
Operating expenses:
Personnel services
270,192
172,034
(98,158)
192,706
Maintenance and repairs
65,000
7,486
(57,514)
241
Depreciation
697,000
695,985
(1,015)
665,026
General and administration:
Support goods and services
36,000
11,773
(24,227)
26,303
Cleaning and janitorial
76,500
45,900
(30,600)
59,815
Heating
35,000
21,140
(13,860)
9,678
Electrical
185,000
211,004
26,004
160,041
Plumbing
118,000
56,867
(61,133)
26,977
Air conditioning
14,000
4,372
(9,628)
233
Elevators
20,000
1,905
(18,095)
16,949
Miscellaneous
48,500
53,530
5,030
79,218
Total operating expenses
1,565,192
1,281,996
(283,196)
1,237,187
Operating income (loss)
(817,764)
(327,749)
490,015
(497,255)
Other income (expense):
Intergovernmental:
State of Alaska - PERS on -behalf payment
10,838
(7,180)
(18,018)
8,941
Federal sources
5,852
Investment income (loss)
-
(113,816)
(113,816)
6,889
Total other income (expense)
10,838
(120,996)
(131,834)
21,682
Income (loss) before transfers
(806,926)
(448,745)
358,181
(475,573)
Transfers out
(2,500,000)
-
2,500,000
-
Change in net position
$ (3,306.926)
(448,745)
2,858,181
(475,573)
Net position, at beginning of year
10,233,255
10,708,828
Net position, at end of year
$
9,784.510
10,233.255
127
KODIAK ISLAND BOROUGH
Enterprise Funds
911 Service Fund
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2022
(With financial information for the year ended June 30, 202 1)
128
2022
Variance with
Final Budget
Final
Positive
2021
Budget
Actual
(Negative)
Actual
Operating revenues:
Other
$ 295,000
301,289
6,289
301,032
Operating expenses:
Personnel services
1,500
1,500
—
1,500
General and administration
300
277
23
328
Telephone services
293,200
299,459
(6,259)
299,204
Total operating expenses
295,000
301,236
(6,236)
301,032
Operating income
$ —
53
53
—
Net position, at beginning of year
—
Net position, at end of year
$
53
—
128
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KODIAK ISLAND BOROUGH
Enterprise Funds
Research Court Apartments
Schedule of Revenues, Expenses, and
Changes in Net Position
Budget and Actual
Year ended June 30, 2022
(With financial information for the year ended June 30, 2021)
Operating revenues:
Lease income
Other
Total operating revenues
Operating expenses:
Personnel services
Depreciation
General and administration:
Support goods and services
Contracted services
Heating
Electrical
Plumbing
Miscellaneous
Total operating expenses
Operating income (loss)
Other income (expense):
Intergovernmental:
State of Alaska on -behalf payment
Investment income (loss)
Total other income (expense)
Change in net position
Net position, at beginning of year
Net position, at end of year
L 129
2022
Variance with
Final Budget
Final
Positive
2021
Budget
Actual
(Negative)
Actual
$ 73,800
85,518
11,718
70,261
-
200
200
-
73,800
85,718
11,918
70,261
15,334
7,835
7,499
11,409
-
34,067
(34,067)
34,066
-
4,020
(4,020)
1,378
5,000
3,726
1,274
8,072
11,500
12,579
(1,079)
5,467
10,500
5,709
4,791
5,693
15,500
8,436
7,064
7,112
21,800
6,209
15,591
4,286
79,634
82,581
(2,947)
77,483
(5,834)
3,137
8,971
(7,222)
684
-
(684)
(4,149)
(4,149)
88
684
(4,149)
(4,833)
88
$ (5,150)
(1,012)
4,138
(7,134)
308,548
315,682
$
307,536
308,548
L 129
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KODIAK ISLAND BOROUGH
SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS
TO MATURITY
June 30, 2022
Annual principal and interest requirements on General Obligation Bonds.
Fiscal Year
Principal Interest
Total
2023
6,035,000
1,531,316
7,566,316
2024
6,240,000
1,322,359
1,138,811
7,562,359
7,558,811
2025
6,420,000
2026
5,230,000
959,870
6,189,870
2027
4,450,000
828,058
5,278,058
2028
4,565,000
707,672
5,272,672
2029
4,060,000
589,902
4,649,902
2030
4,115,000
478,830
4,593,830
2031
4,230,000
362,743
4,592,743
2032
3,545,000
259,950
3,804,950
2033
3,635,000
168,674
3,803,674
2034
2,175,000
89,417
2,264,417
2035
580,000
43,323
623,323
2036
610,000
14,713
624,713
$ 55,890,000 $
8,495,638
$ 64,385,638
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KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2021 Series One
RETIREMENT SCHEDULE
June 30, 2022
The 2021 Series One General Obligation School Bonds were issued to refund (refinance) the 2011 Series One General
Obligation School Bonds that 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.
131
Total
$ 518,500
516,125
517,875
518,625
513,500
512,500
510,500
517,250
517,625
$ 4,642,500
Interest due
Principal due
Interest due
Fiscal year
Interest rate
December 0
December Ol
June Ol
2023
5.00%
$ 93,500
$ 340,000
$ 85,000
2024
5.00%
85,000
355,000
76,125
2025
5.00%
76,125
375,000
66,750
2026
5.00%
66,750
395,000
56,875
2027
5.00%
56,875
410,000
46,625
2028
5.00%
46,625
430,000
35,875
2029
5.00%
35,875
450,000
24,625
2030
5.00%
24,625
480,000
12,625
2031
5.00%
12,625
505,000
-
S 498,000
$ 3,740,000
$ 404,500
131
Total
$ 518,500
516,125
517,875
518,625
513,500
512,500
510,500
517,250
517,625
$ 4,642,500
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2021 Series Two
RETIREMENT SCHEDULE
June 30, 2022
The 2021 Series Two General Obligation School Bonds were issued to refund (refinance) the 2012 Series A and B General
Obligation School Bonds that were issued to refund (refinance) the 2004 Series C and D 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.
Refunding bond - 2021 Series Two
132
Principal Due
Interest due
Interest Due
Fiscal Year
Interest Rate
December 01
2023
0.34%
$ 10,155
2024
0.44%
7,822
2025
0.70%
4,799
$ 4,100,000
$ 12,621
$ 22,776
132
Principal Due
Interest due
December 01
June 01
Total
$ 1,360,000
$ 7,822
$ 1,377,977
1,365,000
4,799
1,377,621
1,375,000
1,379,799
$ 4,100,000
$ 12,621
$ 4,135,397
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2013 Series One / 2021 Series Three
RETIREMENT SCHEDULE
June 30, 2022
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. These bonds were refunded (refinanced) in 2021 and are reported as the 2021 Series Three Bonds.
Unrefunded portion - 2013 Series One
Interest Due
Principal Due
Interest due
Principal Due
Fiscal Year Interest Rate August 01
February 01
February 01
Total
2023 4.00% $ 20,200
$ 1,010,000
$ 20,200
$ 1,050,400
Refunding bond - 2021 Series Three
Interest Due
Principal Due
Interest due
Fiscal Year
Interest Rate
December 01
December 01
June 01
Total
2023
0.34%
$ 106,800
$ 270,000
$ 106,337
$ 483,137
2024
0.44%
106,337
1,325,000
103,402
1,534,739
2025
0.70%
103,402
1,330,000
98,760
1,532,162
2026
1.03%
98,760
1,340,000
91,846
1,530,606
2027
1.18%
91,846
1,355,000
83,838
1,530,684
2028
1.53%
83,838
1,375,000
73,312
1,532,150
2029
1.73%
73,312
1,400,000
61,195
1,534,507
2030
1.97%
61,195
1,420,000
47,194
1,528,389
2031
2.02%
47,194
1,450,000
32,534
1,529,728
2032
2.12%
32,534
1,480,000
16,832
1,529,366
2033
2.22%
16,832
1,515,000
-
1,531,832
$ 822,050
$ 14,260,000
$ 715,250
$ 15,797,300
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KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2014 Series One / 2021 Series Four
RETIREMENT SCHEDULE
June 30, 2022
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. These bonds were refunded (refinanced) in 2021 and are reported as the 2021 Series Four Bonds.
Unrefunded portion - 2014 Series One
Refunding bond - 2021 Series Four
Interest Interest Due
Fiscal Year Rate December 01
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
0.34%
0.44%
0.70%
1.03%
1.18%
1.53%
1.73%
1.97%
2.02%
2.12%
2.22%
2.35%
$ 124,602
124,182
123,628
122,756
115,480
107,088
96,065
83,385
68,694
53,327
36,775
19,110
$ 1,075,092
Principal Due
March 01
$ 1,010,000
1,060,000
1,110,000
$ 3,180,000
Principal Due
December 01
$ 245,000
250,000
250,000
1,410,000
1,420,000
1,440,000
1,465,000
1,490,000
1,520,000
1,560,000
1,590,000
1,625,000
$ 14,265,000
F 134
Interest Due
March 01
$ 69,094
43,844
17,344
$ 130,282
Interest Due
June 01
$ 124,182
123,628
122,756
115,480
107,088
96,065
83,385
68,694
53,327
36,775
19,110
$ 950,490
Total
$ 1,148,188
1,147,688
1,144,688
$ 3,440,564
Total
$ 493,784
497,810
496,384
1,648,236
1,642,568
1,643,153
1,644,450
1,642,079
1,642,021
1,650,102
1,645,885
1,644,110
$ 16,290,582
Interest
Interest Due
Fiscal Year
Rate
September 01
2023
5.00%
$ 69,094
2024
5.00%
43,844
2025
3.13%
17,344
$ 130,282
Refunding bond - 2021 Series Four
Interest Interest Due
Fiscal Year Rate December 01
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
0.34%
0.44%
0.70%
1.03%
1.18%
1.53%
1.73%
1.97%
2.02%
2.12%
2.22%
2.35%
$ 124,602
124,182
123,628
122,756
115,480
107,088
96,065
83,385
68,694
53,327
36,775
19,110
$ 1,075,092
Principal Due
March 01
$ 1,010,000
1,060,000
1,110,000
$ 3,180,000
Principal Due
December 01
$ 245,000
250,000
250,000
1,410,000
1,420,000
1,440,000
1,465,000
1,490,000
1,520,000
1,560,000
1,590,000
1,625,000
$ 14,265,000
F 134
Interest Due
March 01
$ 69,094
43,844
17,344
$ 130,282
Interest Due
June 01
$ 124,182
123,628
122,756
115,480
107,088
96,065
83,385
68,694
53,327
36,775
19,110
$ 950,490
Total
$ 1,148,188
1,147,688
1,144,688
$ 3,440,564
Total
$ 493,784
497,810
496,384
1,648,236
1,642,568
1,643,153
1,644,450
1,642,079
1,642,021
1,650,102
1,645,885
1,644,110
$ 16,290,582
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2015 Series Three
RETIREMENT SCHEDULE
June 30, 2022
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.
Fiscal Year
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
Interest
Rate
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
4.00%
5.25%
5.25%
5.25%
5.25%
5.25%
Interest Due
October 0l
$ 124,106
117,856
111,231
104,356
97,106
89,481
81,481
73,106
64,231
56,831
46,594
35,831
24,544
12,600
$ 1,039,354
Principal Due
October 01
$ 250,000
265,000
275,000
290,000
305,000
320,000
335,000
355,000
370,000
390,000
410,000
430,000
455,000
480,000
$ 4,930,000
135
Interest Due
April 01
$ 117,856
111,231
104,356
97,106
89,481
81,481
73,106
64,231
56,831
46,594
35,831
24,544
12,600
$ 915,248
Total
$ 491,962
494,087
490,587
491,462
491,587
490,962
489,587
492,337
491,062
493,425
492,425
490,375
492,144
492,600
$ 6,884,602
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2015 Series Three
RETIREMENT SCHEDULE
June 30, 2022
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.
Principal Due
October 0l
$ 190,000
200,000
210,000
220,000
$ 820,000
136
Interest Due
Aoril 01
$ 15,750
10,750
5,500
$ 32,000
Total
$ 226,250
226,500
226,250
225,500
$ 904,500
Interest
Interest Due
Fiscal Year
Rate
October 01
2023
5.00%
$ 20,500
2024
5.00%
15,750
2025
5.00%
10,750
2026
5.00%
5,500
$ 52,500
Principal Due
October 0l
$ 190,000
200,000
210,000
220,000
$ 820,000
136
Interest Due
Aoril 01
$ 15,750
10,750
5,500
$ 32,000
Total
$ 226,250
226,500
226,250
225,500
$ 904,500
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2016 Series One
RETIREMENT SCHEDULE
June 30, 2022
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.
Interest
Interest Due
Principal Due
Interest Due
Fiscal Year
Rate
August 01
August 01
February 01
Total
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
$ 194,215
$ 1,485,000
$ 167,881 $
1,847,096
137
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2016 Series One
RETIREMENT SCHEDULE
June 30, 2022
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.
Principal Due
Aueust 01
$ 570,000
595,000
630,000
660,000
$ 2.455.000
138
Interest Due
February 01
$ 47,125
32,250
16,500
$ 95,875
Total
$ 678,500
674,375
678,750
676,500
$ 2,708,125
Interest
Interest Due
Fiscal Year
Rate
August 01
2023
5.00%
$ 61,375
2024
5.00%
47,125
2025
5.00%
32,250
2026
5.00%
16,500
$ 157,250
Principal Due
Aueust 01
$ 570,000
595,000
630,000
660,000
$ 2.455.000
138
Interest Due
February 01
$ 47,125
32,250
16,500
$ 95,875
Total
$ 678,500
674,375
678,750
676,500
$ 2,708,125
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2016 Series Three
RETIREMENT SCHEDULE
June 30, 2022
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.
Interest Interest Due Principal Due Interest Due
2023
5.00%
$ 80,375
2024
5.00%
68,625
2025
5.00%
56,250
2026
5.00%
43,250
2027
5.00%
29,500
2028
5.00%
15,125
$ 293,125
$ 470,000
495,000
520,000
550,000
575,000
605,000
$ 3,215,000
139
$ 68,625
56,250
43,250
29,500
15,125
Total
$ 619,000
619,875
619,500
622,750
619,625
620,125
$ 3,720,875
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2018 Series A
RETIREMENT SCHEDULE
June 30, 2022
The 2018 Series A General Obligation School Bonds were issued to provide funds for school and related capital
improvements in the Borough, specifically to provide a portion of the funds needed for the Kodiak High School Addition and
Renovation.
$ 24,439
Principal Due
December 01
$ 55,000
55,000
55,000
55,000
60,000
60,000
60,000
$ 400,000
140
Interest Due
June 01
$ 5,144
4,352
3,546
2,727
1,824
915
$ 18,508
Total
$ 66,075
64,496
62,898
61,273
64,551
62,739
60,915
$ 442,947
Interest
Interest Due
Fiscal Year
Rate
December 01
2023
5.00%
$ 5,931
2024
5.00%
5,144
2025
5.00%
4,352
2026
5.00%
3,546
2027
5.00%
2,727
2028
5.00%
1,824
2029
5.00%
915
$ 24,439
Principal Due
December 01
$ 55,000
55,000
55,000
55,000
60,000
60,000
60,000
$ 400,000
140
Interest Due
June 01
$ 5,144
4,352
3,546
2,727
1,824
915
$ 18,508
Total
$ 66,075
64,496
62,898
61,273
64,551
62,739
60,915
$ 442,947
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2020 Series One A
RETIREMENT SCHEDULE
June 30, 2022
The 2020 Series One A General Obligation School Bonds were issued to provide funds for school and related capital
improvements in the Borough, specifically to provide for the Kodiak High School Addition and Renovation.
141
Interest Due
Interest
Interest Due
Principal Due
Fiscal Year
Rate
December 01
December 01
2023
5.00%
$ 8,000
$ 30,000
2024
5.00%
7,250
30,000
2025
5.00%
6,500
30,000
2026
5.00%
5,750
35,000
2027
5.00%
4,875
35,000
2028
5.00%
4,000
35,000
2029
5.00%
3,125
40,000
2030
5.00%
2,125
40,000
2031
5.00%
1,125
45,000
$ 42,750
$ 320,000
141
Interest Due
June 01
Total
$ 7,250
$ 45,250
6,500
43,750
5,750
42,250
4,875
45,625
4,000
43,875
3,125
42,125
2,125
45,250
1,125
43,250
-
46,125
$ 34,750
$ 397,500
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BONDS
2020 Series One B
RETIREMENT SCHEDULE
June 30, 2022
The 2020 Series One B 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.
Interest
Interest Due
Principal Due
Interest Due
Fiscal Year
Rate
December 01
December 01
June 01
Total
2023
5.00%
$ 42,750
$ 155,000
$ 38,875
$ 236,625
2024
5.00%
38,875
160,000
34,875
233,750
2025
5.00%
34,875
170,000
30,625
235,500
2026
5.00%
30,625
180,000
26,125
236,750
2027
5.00%
26,125
190,000
21,375
237,500
2028
5.00%
21,375
200,000
16,375
237,750
2029
5.00%
16,375
205,000
11,250
232,625
2030
5.00%
11,250
220,000
5,750
237,000
2031
5.00%
5,750
230,000
-
235,750
$ 228,000
$ 1,710,000
$ 185,250
$ 2,123,250
142
I
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I
CIJ
I
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m
M
LJ
T
I
.a
F1 ►
IT
I
STATISTICAL SECTION
r
r
r
r STATISTICAL SECTION
rThis part of the Kodiak Island Borough's annual comprehensive 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. 143-147
Revenue Capacity
These schedules contain information to help the reader assess the government's
most significant local revenue source, the property tax. 148-151
Debt Capacity
E 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. 152-156
L 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. 157-163
L
Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports
for the relevant year.
L
L
r" r^ r- r_ r" = r w- r. r'^ r" _' _._." ""1 ' n M" l "„'1 .....,y ""
KODIAK ISLAND BOROUGH
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Business -type activities
Net investment in capital assets
$
21,628,143
Fiscal Year
36.383,229
$
43,884,340
2013
2014
2015
2016
2017
Governmental activities:
20,750,321
12,115,258
5,239,974
Net investment in capital assets
$ 72,773,598
$ 80,159,521
$ 82,616,865
$ 80,747,617
$ 80,857,151
Restricted
-
-
-
-
-
Unrestricted
47,149,835
46,754,461
43,472,334
47,678,271
48,293,582
Total governmental activities net assets
$ 119,923,433
$ 126.913982
$ 126,089,199
$ 128.425.888
$ 129,150,733
Business -type activities
Net investment in capital assets
$
21,628,143
$
36.383,229
$
43,884,340
$
37,381,997
$
40,098,010
Unrestricted
20,750,321
12,115,258
5,239,974
12,436,280
9,584,434
Total business -type activities net assets
$
42,378,464
$
48,498,487
$
49,124,314
$
49,818,277
$
49,682,444
Primary government:
Net investment in capital assets
$
94,401,741
$
116,542,750
$
126,501,205
$
118,129,614
$
120,955,161
Restricted
-
-
-
-
-
Unrestricted
67,900,156
58,869,719
48,712,308
60,114,551
57,878,016
Total primary government net assets
$
162,301,897
$
175 412,469
$
175,213,513
$
178,244,165
$
178,833,177
Fiscal Year
2018
2019
2020
2021
2022
Governmental activities:
Net investment in capital assets
$
85,569,631
$
89,375,692
$
89,442,508
$
86,459,744
$
88,558,336
Restricted
-
-
-
153,535
47,010
Unrestricted
46,105,327
50,237,644
53408,078
56,917,265
67,107,947
Total governmental activities net assets
$
131,674,958
$
139,613,336
$
142,850.586
$
143,530,544
$
155.713.293
Business -type activities:
Net investment in capital assets
$
39.508,817
$
39,405,949
$
39,561,198
$
39,849,123
$
43,543,168
Unrestricted
10,154,986
11,720,431
13,292,418
12,900,614
10,385,257
Total business -type activities net assets
$
49,663,803
$
51,126,380
$
52,853,616
$
52,749,737
$
53,928,425
Primary government:
Net investment in capital assets
$
125.078,448
$
128,781,641
$
129,003,706
$
126,308,867
$
132,101,504
Restricted
-
-
-
153,535
47,010
Unrestricted
56,260,313
61,958,075
66,700,496
69,664,370
77,493,204
Total primary government net assets
$
181,338,761
$
190,739,716
$
195,704,202
$
196,126,772
$
209,641,718
Source: Borough general ledger
143
Espense
Gmemmemil mvizi6.
Gmmil gmmrmml
Public safes
Commwih aM wonomic dcclopmwl
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eillb and -U il . \\xld
Edm and ..u.Perls and re
h.
SmaN...
Service Chi lmm[C
Primas aM
lsl-L. Wurntian
Inveal mrlang-Ierm 4861
Tdal govamMnlil azOvities <sp[ns6
Busima
hlmoclPil ci,A d[ll\'1116
solid n -6m wllwlim a1M disposal
H6pimlfxC.
Img Term Care Censer
Kodiak FisM1ui6 Rcscxh Crnur
911-.. e
Re searcth Coon Apamnmu
Tma1 s'
p.ii,s-ripe amifilies capmses
Tdal Prima64x---1 ap[mes
N,rim. Revenue
6.1.mlal azL.1 ill.
Charg6 rd xn'ic6
PuGmmelmkt, cnl
blic f s
Sm'iw dizvia maatenanss
Gp[Ieling Manu aW wnlnbuumn
1
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Total 1gavmnmcnW az3vnia prognmsn'mu6
Bus MSs-IglC adn'ili¢:
Charges fm novices:
Municipal .lid \\azm wl ldl im and disposal
H g T laulities
long mn Care Censer
Kodiak Fisheries Research Cwter
911 se h C
Reeareh Cd Aparunmu
O.,, .t, aM wnuibu0am
Capital Menu
Tdal business -nye azli\ilies Program sumac
Tdil primas B..nt Problem,i,,
Nn16pc6cllrcvmuc:
Gmrnunml41 a0ivilies
Business -spasm
rout nrlmar, eoe<mm<nlnl nes <.peme
Cenertl Re,tri.. and OIM1es Changes m Net A.ues
Go\xmmmtal aeeeib6
T.
Pmp[m races
Ecv races
Tobago. m lazes
Um<smcled genu aM wn3ibmioms
f and sil6
Mesunmseamings
OIMr
T -fm
Erh-ids-C.1. Uill
ExOaordman nem
Tddgov w l.; xOritio
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t
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ramings
tr
Transfers
EzOmrdwn item
Tail oremmml bwiars-- itch,I
Ta�iman il pg
Change in No Prim.
G.,-nW ac4oi06
Business-h'pe ac.uLimi
Total pitman Bo\xIMN'nl
Ii
Chm86 N Nn Positim
Iml Ten Fixal Years
(awmil basis ft.1.1)
Im 2014 2015 2016 2017 2018 "19 1020 2011 5022
S 7,398,899 S 6.990.640 S 5.637.239 3 7.850988 $ ].15608) f 6.692,530 S 5.209,588 I 5.494.888 S 5.36].)]5 S 5,348.834
644,197 751.637 663.105 )98.0]9 1.028.240 1,256.992 936.083 696486 690,853 710.205
1,070.991 9643)) 886.613 1.16],36] 1136,303 1.152197 1,133,265 )91.]16 7)9.)58 872503
278.480 12.497 31.628 30.849 35861 43038 14307 4.479 5.257 10.983
290800 326.700 406,093 389.000 233.999 207.500 182.900 152500 5252.-5 169,647
84273 218.013 335.854 2.994004 1].562 4,665 ]04]2 5.790.959 20.397 203%
21.100 3].)95 161.5% 87.456 30.172 72186 4330 32,561 19.560 22.125
091" 631572 534.376 626.289 475148 582]0] 645.533 786.366 641).9)6 856,657
13,930919 14.573,509 14316695 11.225.022 14162.868 12.695.233 13,219.7% 10.523515 15.137.964 16002891
1.254.225 2.109406 3.063."9 3.194612 3.060,520 2,673,238 2.500.440 2.346,340 1204293 751860
25.453.148 26.566136 26.036.888 29.363,666 27,336.860 25,390,286 23.955.746 26.623810 29.631,338 24,])6,103
2.342.006 2.080.8" 2.468.058 4.764.871 3296817 3245,526 3,287.702 219560 3341080 33)3,120
1091.035 1.740.525 1.763,636 2056.690 1284,657 1.412,150 1201,971 1,302317 1.077.905 1.115,]3]
- - - - 1.128059 1008,032 960008 946.018 1.247226 670,592 a
1775062 1.681111 1486,620 1555.116 1532.010 1,02337 1.571,"3 1.169009 U37J7 1281,996
87.596 39.817 33.961 30417 28409 255,617 300.060 336.226 301032 301.236
- - - - - - )]483 82581
5.295.699 554231) 5,]52,2)5 8409094 7269952 2343662 ].321.364 6.]49.439 7.681913 6.825.262
30.]4884) 32.108453 31299.163 34]]4760 34606812 32 33.948 31.2]].130 33.373.249 37.313251 31.601.365
O
$ 549.109 E 5])350 $ 540,052 $ 682.610 E 2.8]4]94 E 8]).093 S 966852 f 1.006.434 $ 942701 S 901]17
13849 14,336 13,601 16.610 11.146 15.366 16201 8.734 18,657 16.420
946)4 110313 114514 66.161 226,91fi 90.450 1L754 22600 2].600 27.600
2912062 40)2510 4305,691 4,813838 4.226913 5614.195 5611.754 2578838 479,124 11585.488
2212524 6651 737 3.002933 3.216.270 885.493 96.698 346427 438,940 137.918 625.925
5782211 11431.246 ].9]6]93 8.]95.543 8.1Rm2 6489.662 6969,334 4,059,841 1.604.000 16.15).150
2.504.035 2265.967 2.611.854 2.859.436 3.105.560 3.813341 4465387 4,152619 4061.6" 4.161]]5 a
7XOW 1.150000 1.759.ffi9 1959.827 660.000 1384272 2384,272 1.384372 1384272 1505.141
- - - - 1.119.929 1093,475 2043,628 1,041.628 100.628 1.370.814
1603.503 1.851.322 2.267.032 3353718 847.642 818,138 820.167 ]8],296 499.485 950,570
- 49.569
70,261 85.518 a
85034 - 32,649 428.5782].]99 44,509 27.630 (24.490) 51,958 (37(37.904)].90
5.987095 55 11326
38,038 213,]53 11.324 - - - - - -
10892262 10.805327 6.885,0)) 8612.885 5.260.930 7.153337 ).)41084 7.395885 7,111208 8015.900
S 14.684478 E 22236,573 S 14,861,870 S 12408.)28 S 13873.992 S 13843.399 S 14710418 5 11455,728 S 8712208 S 24.193.050
$ 119-6659371 $ (15.134.8%) f (8.00095) S (19570,123) S (19.223.798) S (18.700,624) $ (18200624) S (22563.96)1 $ (28 025 S (8618953)
5.601568 5,263,010 1.132.802 203.791 (1.509.022) (189.925) (189.925) "6446 (5703115) 1.210.638
$ 1140"3691 $ (9,871.880) f (16.92].293) I (19.366.332) S (20.]32.820) S (18.890.549) $ (18890549) $ (21917.520 S (28.596043) S (7.408.315)
S 12910.512 S 13.741.190 S 13.741.190 S 14.414.032 S 15.214593 S WW5.148 $ 16660.329 $ 17128A28 E 17.449.358 S 17.60).48)
13243- 1.843.819 1843.819 3.995.978 1414557 1.929409 1285.669 2286.750 1.100413 1229.042
- - - 310,482 425.403 389.725 202.142 683921
4458.203 4.142583 4.142.583 27.683 3,631,012 3.410.671 4.265.899 3371.650 8.10,105 3.16].)23
- 8".584 864.584 1584.555 325.793 22.955 19.002 12.140 10.118 4791
528.676 1.106.217 1.106.212 603274 271691 281.855 2.196169 1.454,149 188527 (2822.026)
383877 506,546 546346 403.958 233% 305.983 112278 470.560 354.048 534.249
(80.000) (80.000) (86mo) (50.228) (1.134.372) (45.000) (45.003) (45000) - -
- - - - 1.632.915 - -
625 246
S 19.975968 E 22.125.09 E 22.125.09 $ 21,647,498 S -.246580 $ 22270,503 $ 24924790 S 25.801.217 S 28.551361 $ 20.955237
11].]02
178851
178.851
236.180
1)].851
69.821
622.256
443.602
38.817
(834,242)
78688
598.162
598.162
2033"
115.556
320324
3)5,891
592.188
428.-9
32012
BO.mo
WON
80.000
SUMS
L134372
45.-0
45.000
450-
-
-
54,590)
276.390
857.013
837.013
490.172
1.373.189
435,645
1,043.147
1.080.790
466.826
(519.230)
S 20.252,358 E
22.982.452 S
2,982452 E
22.137.070
S 21.619369 $
22,706,149 $
25.967.937 S
26.882.-2 $
29.018.587
5 23436.-2
S 310.031 S 6.990.549 S 4065.344 S 2.077375 $ 1022382 $ 3.569.879 S ],938.3]8 $ 3.237250 S 526.423 S 12.336.284
5.73.958 6.120.023 1.989.815 693.963 (135.833) 245,720 1462577 1727.236 (101879) 691AU8
$ 6,187,989 $ 13,110,572 $ 6.055.159 $ 2.]]1.338 S 886.949 S 3815.599 S 9400955 $ 4944484 S 422.544 S 13.027.692
144
r
r
KODIAK ISLAND BOROUGH
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
r2013
General Fund:
2014
2015
2016
2017
Nonspendable
$
6,324
$
1,459
S
14,566
$
26,272
S
32.349
Unassigned
3,340.662
3,502,489
3.181.342
3,259,509
2,284.775
Total General Fund
S
3,346.986
s
3.503,948
$
3.195.908
$
3,285,781
$
2,317,124
All other governmental funds
Nonspendable
$
4,636,973
$
513,765
$
287,564
$
181,191
$
419,212
Committed
37,902,356
42,355,129
42,606,097
43,081,680
4,502,105
Assigned
29,981,503
28,875,499
7,610,272
11,312,217
3,073,997
Unassigned
(51,337)
(2,929,481)
(2,516,222)
(1,871,193)
(122,678)
Total all other governmental funds
$
72,469,495
$
68,814,912
$
47.987,711
$
52.703,895
S
7,872,636
2018
2019
2020
2021
2022
General Fund:
Nonspendable
$
37,885
$
37,885
$
57,926
$
33,149
$
45,790
Unassigned
3,151,059
3,151,069
6,120,644
7,454,071
8,205,029
Total General Fund
$
3,188,944
$
3,188,954
$
6,178,570
$
7,487,220
$
8,250,819
All other governmental funds
Nonspendable
$
4
$
1,311
$_
$
-
$
6,048
Restricted
153,535
47,010
Committed
43,846,363
45,862,404
46,186,064
46,360,958
54,580,464
Assigned
5,411,992
5,899,049
7,393,442
6,828,331
8,650,120
Unassigned
(126,614)
(877,704)
(926,989)
-
(158,417)
Total all other governmental funds
$
49,131,745
$
50,885,060
$
52,652,517
$
53,342,824
$
63,125,225
L
L
I
L
M
145
L
KODIAK ISLAND BOROUGH
Changes in Fund Balances ofGovemmental Funds
Last Ten Fiscal Years
(mudifed accrual basis ofacc9unting)
Debt servicessa percentage ofnoncapital expenditure 1762% 22.51% 2171 % 23.80 % 2684% 28.08 ser 3020% 2924 % 26.23% 28.82%
146
o 0 0 0 0 0 0 0 0 0 0 0
Fiacal Year
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Revenues:
Property taxes and maussments
S 12.936,796
13.656.771
14,091,503
14,310,687
15,700272
16,002,138
16,794,958
16,978,718
17,465,902
17,655,437
Transienucwmmodram., ex
96.640
73.142
104.074
95.466
108.050
113,486
78,971
62,829
50,983
101.447
Inge
tiovemmenml'.
Federal
12938,158
10,332.739
8,870,802
6,134,338
6,975,473
8.128,643
4,378,515
16,191993
Federal sours
1.929,017
1.659,3]2
1933,6]2
2,703,987
3090,533
2,628.537
2,147,572
2.387,270
7.914,694
],522,1]4
2492,033
$.Caseose Wes
1.]]4]00
1.843819
1]03,25]
1491089
1,106507
I'S15,1U
1,815,923
1,206698
1.223921
1702,430
16,595
Excise axes
-
-
-
-
-
110,482
425,444
389,725
]02.142
68]83,971
Licenses.Permits . feesand other local revenues
657,025
701,999
688,719
774,225
3,014,816
992,759
1023,153
1,057,335
1,002.408
945,737
Other revenues
52,516
50.556
17,747
45,422
9,146
290,343
95.463
533,239
340,598
534,249
Investment earrings
536.903
1.115,466
583,677
648.987
271,691
281,855
2,196,169
1454,149
188,577
(2,822,026)
Toul revenues
25,642969
32,315,583
29,615,703
29.327.211
29.173,357
28,849,572
32,097,071
28465.701
30.236.908
37,420,436
Expenditure:
General government
5.307.199
5.449,505
6,333,724
5.307,245
5,281,999
5,715,946
5.308,369
5,197,783
4995,157
5.017,074
Public safety
469.280
576.720
524.169
572,839
699,118
2,001,538
714,826
635,865
546,055
543,862
Community and economic development
1,070.991
964,377
L153,995
1069,639
1,096928
1.177,198
1,183.798
88&179
907,656
1,514,449
Emergency preparedness
18,342
9,987
29,128
30.849
35,861
43,038
14.307
4,479
5,257
10,983
Health and social welfare
290,800
326,700
406,093
389,000
233,999
207,500
182,900
157,500
5,257,005
169,647
Education, culture, and recreation
84,273
95,625
24,856
23,949
17.562
4,665
20,472
20,447
20,397
20,3%
Part and recreation
21,100
37,795
161,596
87.456
30,172
77,186
57.0%
32,561
19,560
22,125
Service dismo maintenance
479,264
631,572
534,376
626,289
475,248
587,707
569,610
786,366
647,976
856,657
Primary and secondary education
10,442,350
10,845,220
11,100,714
11,100,650
10,373,548
9,449,500
9,970,576
10,522,544
9,443,364
10.521,511
Capital outlay'.
Schools
5.486,672
34,872.235
21984,655
13,240,920
3,936,147
2,958,053
2,092,006
555,253
367,008
137,568
General
2.041,674
1,521,996
2.907,018
3,430.975
1,086,817
826,432
991,403
1.049,466
803.272
516,580
Community Development
-
-
-
-
-
-
-
-
25,540
-
Debt service
Principal
2,966,441
3,645,950
2,646.040
3,201,002
3,530,000
3,870,000
4,425,000
4,655.000
4,850,000
5,840,000
Interest
1,254,225
2,109,406
3,121,577
3,194,612
3.568,559
3,408,310
3,253,414
3,078,394
2986,372
3,719,024
Other charges- bond issuance costs
20,809
89,835
124,372
64,313
-
10,000
-
251,851
Tom] expenditures
29,933,420
61,176.923
50,927,931
42,399.797
30,4302]1
30327073
28,793.777
27.580,837
31,126.470
26,889,876
Excess ofrevenues over (under) expenditures
(4,310,451)
(28,861,340)
(21,312,228)
(13,072.586)
(1,256.914)
(1.477,501)
3,303,294
884,864
(889,562)
10,530,560
Other Finaneint Sources (Uses):
Proceeds from sales of bonds
21.595.000
22,660,000
-
15.000000
4.905,000
-
350,000
-
2.684.069
-
Bond premium
3,424,819
2,427,432
-
2.141,115
806205
-
-
-
857,176
-
Refunding bonds issued
-
-
-
-
-
-
-
-
37,350,OW
-
Payment orefunded bond eacrowagent
-
-
-
-
(5.934,301)
-
-
-
(37.981,510)
-
Bond chanting issuanceeost
-
-
-
-
-
-
-
-
-
-
Proceeds from sale of assets
9,564
-
-
-
140,000
1,240
9,815
-
-
-
Land seleproceeds
6,787
356,284
329,344
110.428
145,820
224,902
76,676
28,903
62,805
15,440
Insurance proceeds
-
-
-
403.958
-
-
-
-
-
-
Transfersin
6,212,885
992,365
642,691
1404497
1,758,036
1,189,104
1786.712
1,628,191
5,700165
4290.585
Transfers out
(6,292.885)
(1,072,365)
(795.708)
(1.454,725)
(2.892.408)
(1.234,104)
(1,831712)
(1673,191)
(5,700165)
(4,290585)
Transfers in - Component unit
-
-
-
-
1,632,815
-
-
Tonalotherdamningscurcas(uses)
24,956,170
25.363.716
176,987
17,605,273
(1.071,648)
181.142
591,491
1,616,718
2,972,540
15440
Na change in fund balances
8 20,645,719
(3497,624)2L�1®5.2411
assa4532.687
(2,328,362)
(1,296,3591
3.894,785
2,501,582
2,082,978
10.546.000
Debt servicessa percentage ofnoncapital expenditure 1762% 22.51% 2171 % 23.80 % 2684% 28.08 ser 3020% 2924 % 26.23% 28.82%
146
o 0 0 0 0 0 0 0 0 0 0 0
r
I■
r
L
L
L
I
L
KODIAK ISLAND BOROUGH
General Revenues by SourceW
Last Ten Fiscal Years
(a) Includes General Fund only.
Source: Borough general ledger.
L 147
Licenses,
Inter -
Fiscal
Permits
Governmental
Investment
Operating
Miscellaneous
Year
Taxes
and Fees
Revenue
Income
Transfers
Revenue
Total
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
2021
6,045,254
75,790
8,931,861
24,496
—
8,743
15,086,144
2022
5,810,140
62,975
3,327,965
(371,295)
—
1,616
8,831,401
(a) Includes General Fund only.
Source: Borough general ledger.
L 147
KODIAK ISLAND BOROUGH
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Sources. Borough assessment and tax records
Nolen: Property in Kodiak Island Borough is reassessed once every three years.
Property is assessed at acme] value, therefore, the assessed values are equal to actual value,
Tax rates are per 51,000 of assessed value.
51,600,0eg000
51,400,u66,600
$1,200,600,000
51,006,606,600
$860,006,000
%01,000,006
$400,000,000
5200,000,000
$0
Last Ten Years Assessed Values
2013 2014 2015 2016 2617 2018 2019 N20 2021
148
Radnor
Total Taxable
Total
Assessed to
Fiscal
Real Property
Personal Property
Total
Direct
Total
Year Ended
Net Taxable
Full Value
Net Taxable
Full Value
Net Taxable
Full Value
Tax
Fall Value
June 30,
Assessed Value
Determination
Assessed Value
Determination
Assessed Value
Determination
Rate
Determination
2013
984,146,580
1,049,746,680
108,821,700
137,074,800
1,092,968,280
1,186,821,480
1075
9209
2014
1,029,239,311
1,100,702,180
102,237,300
286,425,000
1,131,476,611
1,387,127,180
1075
81.57
2015
1,068,647,102
1,137,024,180
113,251900
361886,700
1,181,899,002
1498,910,880
1075
78.85
2016
1084,317,572
1,161,805,872
118,559,600
348,158,100
1202,877,172
1,509,963,972
1075
7966
2017
1,169,223,198
1256,477,176
143,116,200
154,899,290
1312,339,398
1,411,376,466
10.75
9298
2018
1,205,698,799
1,290,502,977
137,125,100
149,533,000
1,342,823,899
1,440,035,977
1075
93.25
2019
1220,528,925
1344,742,803
139,440,700
152,390,588
1,359,969,625
1,497,133,391
1075
90.84
2020
1,266,365,775
1363039,653
155,178,500
168,465,300
1,421544,275
1,531,504,953
10.75
9282
2021
1,298,329,669
1,39,457,647
157,498,073
168,586,400
1,455,827,742
1,559,044,047
10.75
9338
2022
1356,823,091
1,463,573,169
159,819,657
172,562,100
1,516,642,748
1,636,135,269
1075
9270
Sources. Borough assessment and tax records
Nolen: Property in Kodiak Island Borough is reassessed once every three years.
Property is assessed at acme] value, therefore, the assessed values are equal to actual value,
Tax rates are per 51,000 of assessed value.
51,600,0eg000
51,400,u66,600
$1,200,600,000
51,006,606,600
$860,006,000
%01,000,006
$400,000,000
5200,000,000
$0
Last Ten Years Assessed Values
2013 2014 2015 2016 2617 2018 2019 N20 2021
148
r P"-' r- r. = = E"^ n.-++ ra P"""1 -++ ` "7 `1 `1 "1 = 1
KODIAK ISLAND BOROUGH
Direct and Overlapping Properly Tax Rates and
Contributions to the School District
(per SI,000 of Assessed Value)
Last Ten Fiscal Years
Note: With the exception of a mill rate to cover Debt Service, the maximum mill rate allowed by State code is 30 mills
' Overlapping rates are those of local governments that apply to property, owners within the City of Kodiak.
' Overlapping 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.
149
Direct
Rafe
Overlapping
Rates
Woodland'
Trinity'
Mission'
Fiscal
Acres
bland,
Lake
Fire Areas'
Year
Borough
Education
Renewal
City'
Street
Suer,
Tide
Road Services
Areas'
Fire
Ended
Basic
Support
Debt
and
of
Lighdng
Lighting
Cate
Mcmuhka
Service
Bay View
Women,
Protection
Womem
June 30,
Rate
Fund
Service
Replacement
Kodiak
Arca
Area
Area
Bay
District 1
Road
Bay
Area No. 1
Bay
Airport
2013
0.03
903
1.61
0.08
2.00
0.25
0.50
1.00
2.50
0.50
175
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
1.75
2.50
1.50
1.25
1.25
2015
0.06
9.16
0.99
0.54
2.00
0.25
0.50
100
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
2.50
1.50
1.50
2.50
1.50
1.25
1.25
2020
0.56
745
1.79
0.95
200
0.10
0.15
0.25
2.00
1.50
1.50
2.50
1.50
1.25
1.25
2021
2.75
6.45
1.55
-
2.00
0.10
0.15
0.25
1.99
1.50
1 47
2.50
1.50
1.25
1.22
2022
2.11
6.99
165
-
200
0.10
0.15
0.25
1.99
1,50
1.47
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
' Overlapping rates are those of local governments that apply to property, owners within the City of Kodiak.
' Overlapping 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.
149
KODIAK ISLAND BOROUGH
Property Tax Levies and Collections
Last Ten Fiscal Years
Source: Borough general ledger
150
Collected within the
Fiscal Year
Taxes Levied
Fiscal Year of the Levy
Collections
Total Collections
to Date
Ended
for the
Percentage
in Subsequent
Percentage
June 30,
Fiscal Year
Amount
of Levy
Years
Amount
of Levy
2013
$ 13,581,524
$ 13,489,190
99.3 $
90,034
$ 13,579,224
100.0
2014
14,424,260
14,250,305
98.8
169,082
14,419,387
100.0
2015
15,009,704
14,749,222
98.3
254,119
15,003,341
100.0
2016
15,261,029
15,032,113
98.5
215,199
15,247,312
99.9
2017
16,642,674
16,554,392
99.5
72,975
16,627,367
99.9
2018
17,069,728
16,809,461
98.5
240,759
17,050,220
99.9
2019
17,699,787
17,462,634
98.7
210,299
17,672,933
99.8
2020
18,055,528
17,809,122
98.6
203,623
18,012,745
99.8
2021
18,431,128
18,243,706
99.0
75,100
18,318,806
99.4
2022
$ 18,850,866
$ 18,915,116
100.3 $
—
$ —
—
Source: Borough general ledger
150
F
Source: Borough tax records.
I
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L
KODIAK ISLAND BOROUGH
Principal Property Tax Payers
Current Year and Ten Years Ago
2022
Taxpayer
Percentage
Trident Seafoods Corp
Matson Navigation
Assessed
Ocean Beauty Seafoods
Assessed
North Pacific Seafoods
Rank
Infl Seafoods of Alaska
$ 78,630,900
Oceanfront Kodiak LLC
5.3%
Mill Bay Plaza Assoc Lid
2
Kodiak Area Native Association
39,404,399
GCI Communication Corp
2.6%
Wal-Mart / Sam's Club
4
Kodiak Fishmeal Company
15,331,700
Brechan Enterprises, Inc
1.0%
Westward Seafoods
6
Alaska Communications Systems
12,766,600
Afognak Native Corp
0.9%
Total
Source: Borough tax records.
I
I
L
L
L
L
KODIAK ISLAND BOROUGH
Principal Property Tax Payers
Current Year and Ten Years Ago
2022
151
Percentage
Taxable
of Total Borough
Assessed
Assessed
Value
Rank
Value
$ 78,630,900
1
5.3%
47,173,000
2
3.2%
39,404,399
3
2.6%
24,542,000
4
1.6%
15,331,700
5
1.0%
13,923,800
6
0.9%
12,766,600
7
0.9%
12,163,187
8
0.8%
11,974,300
9
0.8%
10,235,300
10
0.7%
$ 266,145,186
178%
151
Percentage
Taxable
of Total Borough
Assessed
Assessed
Value
Rank
Value
$ 21,075,400
2
1.8%
7,316,800
10
0.6%
25,591,900
1
2.2%
14,113,600
5
1.2%
16,459,000
3
11.4%
8,952,200
8
0.8%
7,641,000
9
0.7%
9,609,000
7
0.8%
11,442,200
6
0.9%
14,762,500
4
11.3%
$ 136.963.600
11.7%
Fiscal
Year Population
2013
13,824
(a)
2014
13,797
(a)
2015
13,819
(a)
2016
13,790
(a)
2017
13,563
(b)
2018
13,287
(b)
2019
13,136
(b)
2020
13,001
(b)
2021
12,611
(b)
2022
12,900
(b)
KODIAK ISLAND BOROUGH
Ratios of Net Bonded Debt
Last Ten Fiscal Years
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.
152
Net
Total Taxable
Net
Debt Per
Assessed
Bonded
Per
Assessed
Value
Debt
Capita
Value
1,085,968,280
55,236,114
3,996
5.09%
1,131,476,611
76,227,556
5,525
6.74%
1,181,899,002
73,131,566
5,292
6.19%
1,202,877,172
86,481,657
6,271
7.19%
1,312,339,398
82,302,899
6,068
6.27%
1,342,823,899
77,748,492
5,851
5.79%
1,389,969,625
73,189,089
5,572
5.27%
1,421,544,275
67,849,686
5,219
4.77%
1,455,827,742
65,140,020
5,165
4.47%
1,516,642,748
58,575,062
4,541
3.86%
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.
152
I
r
r
r
I
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L
L
L
L
KODIAK ISLAND BOROUGH
Computation of Direct Debt
June 30, 2022
(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.
153
Percentage
Kodiak Island
Net Debt
Applicable to this
Borough
Outstanding
Governmental
Share of
(a)
Unit (b)
Debt (c)
Kodiak Island Borough:
General obligation bonds
$ 58,575,062
100% $
58,575,062
City of Kodiak:
General obligation bonds
5,767,048
100%
5,767,048
Total
$ 64,342,110
$
64,342,110
(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.
153
KODIAK ISLAND BOROUGH
Legal Debt Margin Information
Last Ten Fiscal Years
2013
2014
2015
2016
2017
Taxable Assessed value $ 1,085,968,080
1,131,476,611
1,181,899,002
1,202,877,172
1,312,339,398
Plus exempt property 65,600,100
71,462,869
68,377,078
77,488,300
87,253,178
Total $ 1,151,568,180
1,202,939,480
1,250,276,080
1,280,365,472
1,399,592,576
2018
2019
2020
2021
2022
Taxable Assessed value $ 1,342,823,899
1,389,969,625
1,424,752,775
1,455,827,742
1,516,642,748
Plus exempt property 84,804,178
94,213,878
93,464,878
92,127,978
119,492,521
Total $ 1,427,628,077
1,484,183,503
1,518,217,653
1,547,955,720
1,636,135,269
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).
154
KODIAK ISLAND BOROUGH
Ratio of Annual Debt Service Expenditures
for General Bonded Debt to Total
General Governmental Expenditures and Transfers
Last Ten Fiscal Years
(a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of
tern bonds.
Sources: Borough general ledger and debt documents.
155
Total General
Ratio of
Fund
debt service
Fiscal
Interest
Total debt
expenditures
to general
year
Principal (a)
and fees
service
and transfers
expenditures
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
2015
2,646,040
3,120,449
5,766,489
7,497,680
76.9
2016
3,201,002
3,194,612
6,395,614
6,576,153
97.3
2017
3,530,000
3,632,872
7,162,872
6,532,754
109.6
2018
3,870,000
3,408,310
7,278,310
6,402,256
113.7
2019
4,425,000
3,263,414
7,688,414
6,287,584
122.3
2020
4,655,000
3,078,394
7,733,394
5,744,905
134.6
2021
4,850,000
2,986,372
7,836,372
13,693,473
57.2
2022
$ 5,840,000 $
1,719,024 $
7,559,024
$ 8,067,802
93.7
(a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of
tern bonds.
Sources: Borough general ledger and debt documents.
155
KODIAK ISLAND BOROUGH
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Note: Detail regarding the Borough's outstanding debt can be found in the notes to the financial statements
* Information not available at report time.
156
Governmental Activities
Business -type
Activities
General
Total
Percent of
Fiscal
Obligation
Notes
Revenue
Notes
Primary
Personal
Per
Year
Bonds
Payable
Bonds
Payable
Government
Income
Capita
2013
$ 55,236,114
$ 42,992 $
18,817,320
$ 7,346,324 $
81,442,750
12.10%
5,891
2014
76,227,556
37,042
18,703,498
10,206,895
105,174,991
13.98%
7,623
2015
73,131,566
31,002
17,984,677
9,908,184
101,055,429
12.51%
7,313
2016
76,481,657
—
15,531,184
20,160,175
112,173,016
13.88%
8,134
2017
82,302,899
—
16,437,616
14,576,980
113,317,495
13.84%
8,355
2018
77,748,492
—
15,649,919
13,806,965
107,205,376
12.560/6
8,068
2019
73,189,089
—
13,016,950
14,780,846
100,986,885
11.70%
7,688
2020
67,849,686
—
12,196,935
13,911,774
93,958,395
10.76%
7,227
2021
65,140,020
—
11,473,825
13,042,701
89,656,546
10.08%
7,109
2022
$ 58,575,062
$ — $
9,991,972
$ 12,173,628 $
80,740,662
*
6,259
Note: Detail regarding the Borough's outstanding debt can be found in the notes to the financial statements
* Information not available at report time.
156
t
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)
2013 13,824
$ 673,348,788 $
48,709
2,513
6.2
2014 13,797
2015 13,819
752,337,000
807,817,000
54,529
58,457
2,468
2,446
5.7
4.9
2016 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
862,827,000
66,382
2,395
4.2
2020 13,001
872,896,000
66,988
2,315
4.4
2021 12,611
889,288,000
69,546
2,297
3.9
2022 12,900
$ * $
*
2,275
3.9
Sources:
(a)
State of Alaska, DCRA certified population.
(b)
Alaska Dept. of Education, Average Daily
Membership by Fiscal Year at w%%Nx xed.mate.akuS/stats
(c)
Bureau of Economic Analysis https://%%%%N%.bea.eov
*
Information not available at report time.
C
L
L
L
L
15,000
10,000
5,000
Borough Population and Student Count
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
■ Population (a) ■ School Enrollment (b)
f 157
KODIAK ISLAND BOROUGH
MISCELLANEOUS STATISTICAL DATA
Last Ten Fiscal Years
Building permits
Permits issued
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
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
26.1
26.1
26.1
26.1
26.1
26.1
26.1
26.1
26.1
26.1
Building permits
Permits issued
219
155
193
Value of buildings (thousands)
91,619
36,652
36,216
Fire Protection:
16
16
16
Number of fire stations
2
2
2
Number of employees
I
I
I
Police Protection: none
4
4
4
(provided by the City of Kodiak within the city limits
and by the State of Alaska outside the city boundaries.)
Recreation:
4
1
1
Parks (number of acres)
224
224
224
Facilities:
1
1
1
Number of playgrounds
16
16
16
Number of swimming pools
I
I
I
Public Education:
7
7
200
Number of schools:
206
189
192
Kodiak Area Elementary
4
4
4
Kodiak Area Middle School
I
I
1
Kodiak Area High School
I
I
I
Village Schools (a)
8
7
7
Number of support personnel (b)
193
181
187
Number of teachers (c)
207
162
166
Number of students (d)
2,513
2,468
2,446
Number of Municipal Employees
45
48
45
216 143 93 94 91 85 68
10,866 11,793 7,331 19,324 14,148 7,736 7,938
2 2 2 2 2 2 2
1 1 1 1 1 1 I
224
224
224
224
224
224
224
16
16
16
16
16
16
16
1
1
1
I
1
1
1
4
4
4
4
4
4
4
1
1
1
1
1
1
1
1
1
1
1
1
1
1
7
7
7
7
7
7
7
200
206
206
189
192
196
214
170
177
210
193
185
190
217
2,437
2,386
2,437
2,395
2,315
2,297
2,275
43
44.5
45
41
38
37
43
Sources: Borough Departments, Kodiak Island Borough School District and City of Kodiak
(a) The majority of Village Schools are grades K-12. (c) School disMcd personnel figures include stalling ham Me General Fund and Granas.
(b) All non -teaching employees. (d) Alaska Dept. of Education & Early Development, Average Distad Enrollment www.ead inate.ak.uslstats
158
Total Industries
Private Ownership
Total Government
Private Goods -Producing
Private Service -Providing
Total Industries
Private Ownership
Total Government
Private Goods -Producing
Private Service -Providing
Total Industries
Private Ownership
Total Government
Private Goods -Producing
Private Service -Providing
Fiscal Year 2013
Average
Average
Monthly
Monthly
Employment
Earnings
6,411
$ 3,459
4.928
3,358
1,483
3.795
2,138
3.704
2,790
3.092
Fiscal Year 2017
Average
Average
Monthly
Monthly
Employment
Earnings
6.294 $
3.540
4.867
3.407
1.427
3,995
1.934
3.318
1933
3.466
Fiscal Year 2021
Average
Average
Monthly
Monthly
Employment
Earnings
5,369
$ 3.951
3,834
3,837
1,535
4,236
1,384
3,633
2,449
3,954
KODIAK ISLAND BOROUGH
Average Monthly Employment & Earnings
Last Ten Fiscal Years
Fiscal Year 2014
Average
Average
Monthly
Monthly
Employment
Earnings
6,472
$ 3,575
5,049
3,491
1,423
3,875
2,219
3.831
2,830
3,224
Fiscal Year 2015
Average
Average
Monthly
Monthly
Employment
Earnings
6,524
$ 3,650
5.148
3,565
1,377
3,966
2,268
3,832
2.879
3,356
Fiscal Year 2018
Fiscal Year 2019
Average
Average
Average
Average
Monthly
Monthly
Monthly
Monthly
Employment
Earnings
Employment
Earnings
6,037 $
1585
5,967
$ 3,816
4,578
3,433
4,511
3.714
1.460
4,060
1,455
4,134
1.636
3.067
1,637
3,651
2,942
3,637
2,875
3,748
Fiscal Year 2022
Average
Average
Monthly
Monthly
Employment
Earnings
5.548 $
4,303
4,019
4,226
1,530
4,504
1.440
4.328
2,578
4,171
159
Fiscal Year 2016
Average
Monthly
Employment
6,154
4,721
1,433
2,012
2,710
Average
Monthly
Earnings
3,292
3.118
3,867
2,766
3,378
Fiscal Year 2020
Average
Average
Monthly
Monthly
Employment
Earnings
5,706
$ 3,887
4,118
3,758
1,588
4,222
1,524
3,665
2,594
3,812
KODIAK ISLAND BOROUGH
Property Value, Construction, and Bank Deposits
Last Ten Fiscal Years
400,000,000
350,000,000
300,000,000
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
2013 2014 2015 2016 2017 2013 2019 2020 2021 2022
160
Construction
Property
Value*
Commercial
Residential
Fiscal
No. of
No. of
Deposits in
year
permits
Value
permits
Value
local banks
Commercial
Residential
2013
59
85,969,566
160
5,649,717
230,391,000
364,353,810
767,122,801
2014
44
33,062,171
III
3,589,833
252,999,000
386,480,100
788,418,800
2015
61
31,146,134
141
5.644,907
239,000,000
402,319,200
800,640,400
2016
56
4,882,606
160
5,983,768
245,354,000
452,535,972
750,341,200
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
2021
23
3,600,009
61
4,136397
389,000,000
456,707,528
884,887,604
2022
12
2,220,683
56
5,717,888
398,847,000
582,874,991
935,153,787
Sources: Borough assessing records and City of Kodiak building department and FDIC.
Deposits in Kodiak Banks-
j
400,000,000
350,000,000
300,000,000
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
2013 2014 2015 2016 2017 2013 2019 2020 2021 2022
160
KODIAK ISLAND BOROUGH
Full -Time Equivalent Borough Employees by Function/Program
Last Ten Fiscal Years
Function:
General Government
29
Full-time Equivalent Employees
25
25
26
Community and Economic Development
as of June 30:
3
2
2
2013
2014
2015
2016
2017
Function:
8
Kodiak Fisheries Research Center
2
2
2
General Government
30
33
30
29
28.5
Community and Economic Development
6
5
4
5
6
Municipal Solid Waste Collection and Disposal
7
8
9
7
8
Kodiak Fisheries Research Center
2
2
2
2
2
Total
45
48
45
43
44.5
Function:
General Government
29
28
25
25
26
Community and Economic Development
6
3
2
2
3
Municipal Solid Waste Collection and Disposal
8
8
9
8
8
Kodiak Fisheries Research Center
2
2
2
2
2
Total
45
41
38
37
39
Source: Borough Finance Department
161
KODIAK ISLAND BOROUGH
Operating Indicators by Function
Last Ten Fiscal Years
Source: Borough Finance Department
162
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Function
General Government
Elections
Number of registered voters
9,585
9,209
9,100
9,585
9,453
9,357
10,039
10,104
10,258
10,163
Number voting in last election
1,230
1,566
1,968
1,800
2,303
1,692
1,266
1,550
2,084
1,393
Percent of registered voters
13%
17%
22%
190/6
24%
18%
13%
15%
20%
14%
Public Safety
Number of fire stations
2
2
2
2
2
2
2
2
2
2
Number of employees
I
I
I
I
1
I
1
I
1
I
Community and economic development
Zoning compliance permits issued
160
111
183
161
177
128
142
128
110
118
Junk cars removed
22
28
37
21
10
35
79
82
72
43
Primary and secondary education
Number of students
2,513
2,468
2,446
2,437
2,386
2,437
2,395
2,315
2,297
2,275
Number of General Fund certified staff
207
186
177
183
196
206
193
185
190
234
Number of General Fund classified staff
193
161
166
173
187
210
189
192
196
214
Solid waste disposal
Total solid waste disposal in tons
14,688
11,826
12,364
12,876
11,646
11,458
12,882
10,989
10,896
11,036
Baled waste in tons
11,535
10,005
8,900
10,454
9,875
10,396
9,584
9,191
9,821
10,017
Scrap metal in tons
251
172
205
221
190
128
142
173
108
160
Asbestos, cubic yards
399
390
362
219
179
142
348
509
161
66
Source: Borough Finance Department
162
KODIAK ISLAND BOROUGH
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Function program
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
GOVERNMENTAL ACTIVITIES
1
I
I
I
I
I
I
I
I
I
Number of buildings (teacher housing, schools and office buildings)
19
19
19
21
20
20
19
19
19
19
Vehicles
15
14
14
11
14
13
13
13
12
12
Inactive School building
n/a
n/a
n/a
n/a
n/a
n/a
I
1
1
1
Roads
16
16
16
16
1
1
1
1
1
1
Streets (miles)
26.1
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
Police: none
(provided "a Cary of Kodiak within the city limits and by the State of Alaska outside
the city boundaries)
Fire and Emergency Services
Number of fire stations
2
2
2
2
2
2
2
2
2
2
Number of Emergency response vehicles
13
12
12
10
11
13
12
12
12
12
Emergency Tsunami Shelters
I
1
1
I
1
0
0
0
0
0
BUSINESS -TYPE ACTIVITES
Municipal Solid Waste
Number of Baler Facilities (Landfills)
Community Health & Public Services
Mental Health Facilities
Hospital
Long Term Care Center
Culture. Parks and Recreation
Parks (number of acres)
Facilities:
Number of Swimming Pools
Number of playgrounds
Kodiak Island Research Facilities (marine research)
Dorm facility (6 apartments)
I
I
1
I
I
1
1
I
1
I
I
I
1
I
I
I
I
I
I
I
I
I
I
1
I
1
I
I
I
I
224
224
224
224
224
224
224
224
224
224
1
1
1
1
I
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
163