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Kodiak Island Borough
Popular Annual Financial Report
For Fiscal Year Ending June 30, 2022
Kodiak, Alaska
Government, Geographic Location & Population
The Kodiak Island Borough was incorporated in 1963 as a second
class Borough and currently operates under a manager -form of
government. The Manager is hired by the Assembly and oversees
the day-to-day business of the Borough. The seven member As-
sembly, along with the Mayor, are elected by the people. The
day-to-day business of the Borough is conducted within six de-
partments: Manager, Clerk, Finance/IT, Assessing, Community
Development and Engineering/Facilities.
Kodiak Island lies at the western border of the Gulf of Alaska and
is approximately 250 air miles southwest of Anchorage, Alaska.
The island is accessible only by boat or plane and is the second
largest island in the United States. In total, the Borough encom-
passes 6,560 square miles and currently serves an estimated
population of 12,900.
Services
The Borough has a full range of services, including: general gov-
ernment, fire protection, first -response emergency medical ser-
vices, health care facilities, road and other infrastructure con-
struction and maintenance, community and economic develop-
ment and solid waste disposal. Additionally, the Borough sup-
ports tourism development, local parks, and cultural and rec-
reational activities. The Borough is financially responsible for a
legally separate school district which is reported separately
within the Borough's financial statements. Additional infor-
mation on this legally separate entity can be found in the Annual
Comprehensive Financial Report.
Economics
Seafood processing is by far the largest industry generating reve-
nue in several categories. The Port of Kodiak has consistently
ranked among the top ten ports in the United States and, ac-
cording to the National Oceanic and Atmospheric Administra-
tion's National Marine Fisheries Service, the Port of Kodiak
ranked fifth largest in in the nation in landed weight ($299.1 mil-
lion) and eighth largest in landed value ( $121.2 million).
Tourism was strong through FY2019 with stable transient accom-
modations tax revenues and cruise ship traffic. In FY2020 &
FY2021, tourism and cruise ship traffic sharply declined due to
the COVID-19 pandemic. FY2022 saw a return to pre -pandemic
era revenues for transient accommodation revenues but not for
cruise ship revenues.
Kodiak Island is home to the largest U.S. Coast Guard Base in the
United States, employing over 1,350 people and providing vital
services to the marine industries which are integral to the com-
munity.
The Pacific Spaceport Complex -Alaska, a launch facility, is capa-
ble of handling small to medium sized rockets for launching low
earth orbiting satellites, as well as other military, scientific and
research missions.
Map of the Kodiak Island Borough
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About The Popular Annual Financial Report
The Popular Annual Financial Report is intended to brief the resi-
dents of the Kodiak Island Borough on the financial standing of
their municipal government. The information in this report was
drawn from the FY2022 Annual Comprehensive Financial Report.
The annual comprehensive financial report conforms to the gener-
ally accepted accounting principles and includes audited financial
statements, as well as more detailed information than presented
here. Although the financial numbers in this Popular Annual Report
come from an audited source, they are presented in this report in a
condensed and unaudited format.
For copies of the reports, visit the Borough's office located at 710
Mill Bay Road, Kodiak, Alaska, the Borough's Facebook page or on
our website at www.kodiakak.us.
We hope you find the report to be informative. We welcome your
comments, questions and suggestions.
David Conrad, Interim Borough Manager
Dora Cross, Finance Director
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<odiak Island Borough Popular Annual Financial Report For Fiscal Year Ending June 30, 2022
PROPRIETARY FUNDS:
(Reports the business -type activities provided by the Borough)
Proprietary Fund Name Activity or Purpose of Fund
Municipal Solid Waste Collection & Accounts for the collection and disposal of solid waste and for the operation of the leachate
Disposal treatment plant.
Hospital Facility Accounts for the Borough -owned hospital.
Long -Term Care Center Accounts for the Borough -owned long-term care center.
Kodiak Fisheries Research Center Accounts for the Borough -owned Kodiak Fisheries Research Center.
Research Court Apartments Accounts for rent collected for the Borough -owned Research Court Apartments.
911 Services Accounts for fees collected from all phone lines for a 911 emergency system. This is a pass
through to the City of Kodiak, therefore there is no fund balance at year-end.
PROPRIETARY FUNDS - NET POSITION 6/30/22
■ Municipal Solid Waste ■ Hospital ■ Long Term Care Center KFRC ■ Research Court Apartments
$19,470,253 $16,981,814 $9,784,510
\ $7,384,259
1 -- $307,589
Proprietary (Enterprise) Funds Highlights:
• Municipal Solid Waste Collection and Disposal — Net position increased by $360,711 (1.88%) 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 (Enterprise Fund) — Net position decreased by $448,745 (4.38%) due decreased investment reve-
nues and increased repair and maintenance expenses.
• Research Court Apartments (Enterprise Fund) - Net position only decreased by $959 (0.31%) due to stable tenant income and re-
pair expenses.
Statement of Revenue, Expenses and Changes in Net Position (Deficits)
Total Expenses $6,771,814
$7,681,913 1 $7,699,408
Other Financial Sources (uses) $45,000 $ - $ $
Net Position, beginning of year, $51,126,3801 $52,853,616 $53,237,017 $19,109,542
as restated
Net Position, end of year 552,853.61 1 553 237 017 1 W.928 425 519.470 253
Total for All Borough Proprietary Funds
Municipal Waste
Collection &
Disposal (Only)
FY2020
FY2021
FY2022
FY2022
Revenues
Total Operating Revenue
$7,961,329
$7,974,451
$8,390,816
$4,173,621
Total Non -Operating Revenue
492,721
90,863
-
-
Total Revenues
$8,454,050
$8,065,314
$8,390,816
$4,173,621
Expenses
Total Operating Expenses
$6,070,7271
$7,047,151
$6,587,450
$3,246,799
Total Non -Operating Expenses
701,0871
634,7621
1,111,958
566,111
Total Expenses $6,771,814
$7,681,913 1 $7,699,408
Other Financial Sources (uses) $45,000 $ - $ $
Net Position, beginning of year, $51,126,3801 $52,853,616 $53,237,017 $19,109,542
as restated
Net Position, end of year 552,853.61 1 553 237 017 1 W.928 425 519.470 253
Kodiak Island Borough Popular Annual Financial Report For Fiscal Year Ending June 30, 2022
ASSEMBLY MEETINGS
Assembly meetings can be viewed live via internet streaming through the Borough's website. Video recordings of previous regular
meetings and voice recordings of work sessions, along with meeting packet information is also available on the website:
http://www.kodiakak.us.
Meeting locations are contained in the meeting agendas:
Borough Building Assembly Chambers located at 710 Mill Bay Rd
Public Comment Call In Numbers: Toll Free 855-482-9202 or locally 907-486-3231
SUMMARY OF DEBT SERVICE REQUIREMENTS
Total Principal and
Interest Payments Due Protect Description
$ 50,793,503 High school renovation and renewal project.
$ 5,735,875 Renewal and replacement for various school buildings.
$ 3,720,875 Acquisition and construction of school improvements including a new school pool.
$ 2,274,444 Planning, design and construction for the new school pool and Kodiak High School Voc/Ed classroom.
$ 1,860,953 Planning, design and construction for the Larsen Bay, Kodiak Middle and Kodiak High schools.
$ 64,385,650
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
Summary of Total Debt Service Requirements By Year
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
PROPERTY TAXES
The Assembly sets the mill rates, or the number of mills each individual taxpayer will be assessed or charged per dollar value of
property owned. A mill is one tenth of one percent of a dollar (.001). For FY2022, the Borough -wide mill rate was 10.75 which
equates to 1.075 cents of tax to be paid for each dollar of assessed property value.
In addition to the Borough -wide mill rate, mill rates are set for taxing properties within specific boundaries for specific activities. If
the taxing area has a board or committee, they submit a budget and recommended rate to the Assembly. For those properties
within the city limits, the City of Kodiak's City Council sets the mill rate.
Mill Rate Allocation History
FY22 1.65
6.99
2.11 (Includes 23 million transfer to Debt Service)
FY21 1.55
6.45
2.75(Includes S3 million transfer to Debt Service)
0.95
FY20 1.79
7.45
IIIIIIIl 0.56
0 1 2 3 4 5 6 7 8
R&R Projects —To fund renewal and replace-
ment project need within the Borough.
Debt Service —To fund payment of principal
and interest on the Borough's long-term
debt.
■ Education Support —To fund the Kodiak Is-
land Borough School District for the State
required local minimum contribution and in -
kind costs.
General Fund —To fund the general opera-
tions of the Kodiak Island Borough.
■ R & R Projects ■ Debt service ■ Education Support ■ General Fund
is
Kodiak Island Borough
Popular Annual Financial Report For Fiscal Year Ending June 30, 202:
GENERAL FUND REVENUES — A Closer Look
Revenue Source Reason(s) for Increase or Decrease
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
Excise taxes, service and fee revenues were relatively stable, however investment earnings decreased by
$346,799, primarily due to negative market rates and continued market volatility.
Various state and federal revenues were $5,603,896 less in FY2022 as compared to FY2021. This was due
to the FY2021 CARES Act funding not occurring in FY2022.
Local Severance Tax Revenues increased by $628,165 (59%); this tax is very dependent on the fishing, tim-
ber and gravel economy in Kodiak. The fishing industry was able to return to a normal level of production
for the first time since the pandemic began.
General Fund Property Tax Revenues decreased by $845,108. Although the Borough -wide mill rate has
remained the same at 10.75 mills since FY2012, how the mill rate is distributed to the general fund chang-
es annually. The General Fund's share of the mill rate decreased from 2.75 mills in FY2021 to 2.11 mills in
FY2022. This decrease in mill rate was due to the decrease in transfer amount to the debt service fund in
FY2022 as compared to FY2021.
General Fund Revenue by Category
FY2020-0.56milis FY2021-2.75mills FY2022-1.18 mills
Category Descriptions:
Excise Taxes, Services, Fees, Investments &
Other. Local revenues from penalties and in-
terest, excise taxes, building permits, zoning
permits, interest earnings and changes in
market value on investments, map sales and
reimbursed expenses.
Intergovernmental: Federal and State reve-
nues such as Payment in Lieu of Tax (PILT),
Community Revenue Sharing, Fisheries Busi-
ness Tax Sharing, Fisheries Landing Tax, Na-
tional Wildlife Refuge and PERS on Behalf
Payments.
Severance Taxes: Local revenues from fish,
gravel and timber.
ProoertvTaxes: Local revenues from residen-
tial and commercial real and personal prop-
erties and commercial aircraft.
WHERE YOUR BOROUGH -WIDE PROPERTY TAX DOLLAR GOES
(See category descriptions under Property Taxes)
Education Support Debt Service General Fund
65 Cents
T ,# 15 Mr im
15 Cents
(Transfer to Debt
service 14 Cents)
i7a1lfYrr. _
F A.
20 Cents
:odiak Island Borough
Popular Annual Financial Report For Fiscal Year Ending June 30, 2022
CAPITAL PROJECTS
Completed in FY2022:
• PKIMC Retaining Wall
• Long Term Care Center Fuel Line Replacement
• Main Elementary Roof
• Chiniak Shelter—Library
• Bayside Fire Department Exterior Upgrades
PKIMC Retaining Wall
Main Elementary Roof Replacement
Chiniak Emergency Shelter—Library
Scheduled for Completion in FY2023 and Beyond:
• Borough Building Boiler Remodel
• Salonie Creek Culvert Replacement
• Saltery Cove Trail System Access & Improvement
• Bayside Fire Department Classroom Addition
• Kodiak Fisheries Research Center
Flooring Replacement
Exterior Improvements
Fume Hood Exhaust
Ozonator
• Providence Kodiak Island Medical Center
Fire Alarm Replacement & Upgrade
• Schools
Chiniak Water System
East Elementary Roof Replacement
North Star Elementary Siding Replacement
North Star Elementary Window Replacement
North Star Elementary Roof & Skylight Repair
Long Term Care Center Fuel Line Replacement
Bayside Fire Department Exterior Upgrades