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\ Kodiak Island Borough
Popular Annual Financial Report
k
For Fiscal Year Ending June 30, 2023
Kodiak, Alaska
Government, Geographic Location & Population
The Kodiak Island Borough was incorporated in 1963 as a sec-
ond 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 Assembly, along with the Mayor, are elected by the
people. The day-to-day business of the Borough is conducted
within six departments: 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
encompasses 6,560 square miles and currently serves an esti-
mated 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-
structiionand mainteria7lce, eeomnlui...Y . ,,. ec riorwc ueveiup-
ment and solid waste disposal. Additionally, the Borough sup-
ports tourism development, local parks, and cultural and recre-
ational 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 Annu-
al Comprehensive Financial Report.
Economics
Kodiak's number one economic driver is the commercial fishing
industry. Seafood processing generates the most revenue in the
form of severance tax, property tax, and employment. The Port
of Kodiak has consistently ranked among the top ten ports in
both landed value and landed weight. In 2022, the National
Oceanic and Atmospheric Administration's National Marine
Fisheries Service ranked Kodiak as sixth in the nation, with 285
million pounds of landed weight and $139 million dollars of
landed value.
In addition to fishing, tourism was a solid revenue stream that
provided both transient accommodations tax and a commercial
passenger vessel tax collected from cruise lines. Despite taking
a strong downturn to do COVID-19, tourism numbers returned
to pre -pandemic levels for transient accommodation revenues,
but commercial passenger vessel taxes are still in recovery.
Kodiak Island is home to the largest US Coast Guard Base in the
United States, employing over 1,350 people and providing vital
monitoring and search & rescue operations to the fishing indus-
tries that are integral to the community.
Map of the Kodiak Island Borough
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BOROUGH
About The Popular Annual Financial Report
The Popular Annual Financial Report is intended to brief the
residents of the Kodiak Island Borough on the financial
standing of their municipal government. The information in
this report was drawn from the FY2023 Annual Comprehen-
sive Financial Report. The annual comprehensive financial
report conforms to the generally accepted accounting prin-
ciples 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 Face -
book page or on our website at www.kodiakak.us.
We hope you find the report to be informative. We wel-
come your comments, questions and suggestions.
Aimee Williams, Borough Manager
Dora Cross, Finance Director
Kodiak Island Borough, Kodiak Alaska Popular Annual Financial Report For Fiscal Year Ending June 30, 2023
BOROUGH POPULATION AND STATISTICAL INFORMATION
FY2021 FY2022 FY2023
Borough Population
12,611
12,900
12,832
Annual Unemployment Rate in the Borough
3.9%
3.9%
3.0%
Percentage of Owner -Occupied Housing in the Borough*
55%
53.8%
56.6%
Median Gross Rent within the Borough*
$1,458
$1,483
$1,646
Median Household Income within the Borough*
$85,839
$83,765
$91,138
Percent of Persons Living in Poverty within the Borough*
7.5%
8.5%
8.5%
KIBSD Student Enrollment
2,297
2,275
2,254
KIBSD Employees (Teachers and Support Personnel)
386
431
464
Number of Schools in the Borough
13
13
13
Number of Borough Employees
37
39
38
* United States Census Bureau
FINANCIAL STRUCTURE
The Borough maintains 34 separate funds to account for governmental services. They are generally established based upon their legal
basis and objectives. These funds are grouped into two separate categories: Governmental Funds and Proprietary Funds. This report
focuses on the funds which interest most residents : General, Education Support and Municipal Solid Waste Collection & Disposal.
GOVERNMENTAL FUNDS
(Reports the basic service activities provided by the Borough)
Governmental Fund Name Activity or Purpose of Fund
Operating fund for the Borough. Departments within the fund are: the Assembly, Assessing, Clerks, Com-
munity Development, Engineering & Facilities, Finance/IT (Information Technology) and the Manager.
Special Revenue Funds = Operating funds for specific revenue sources. These include: education, facilities, tourism, emergency
planning and neighborhood service districts such as road, fire and street lighting, as well as maintenance
of Borough building and grounds.
Debt Service Fund "011111111M Operating fund for the payment of general long-term debt principal, interest and other related costs.
Currently the fund services general obligation bonds for school related projects.
Capital Project Funds I Operating fund for the acquisition, construction, or major repairs of capital facilities and equipment.
GOVERNMENTAL FUNDS - FUND BALANCE 6/30/23
■General Fund ■Special Revenue Funds Debt Service Fund Capital Funds
$17,550,830' $45,104,259 $687,206 $12,966,368
Kodiak Island Borough, Kodiak Alaska Popular Annual Financial Report For Fiscal Year Ending June 30, 202?
GOVERNMENTAL FUNDS
(Reports the basic service activities provided by the Borough)
Governmental Fund Highlights:
• General Fund - Fund balance increased by $9.3 million. There were three main contributors to the overall increase in the fund. 1)
The fund received a $5.8 million reimbursement from the State of Alaska for prior year school bond debt payments, 2) the fund is
holding $2.4 million of unexpended ARPA project funds., and 3) PILT revenue was $350,000 greater than expected.
• Education Support (Special Revenue Fund) - This fund collects property tax revenue which is then paid to the School District for
education services within the Borough. There was a $1,497,195 increase in expenditures for this fund in FY2023 compared to
FY2022, however the fund ended the year at a $185,907 deficit primarily due to a correction of a five-year assessment clerical er-
ror in FY2022 that effected the tax revenues of the fund.
Statement of Revenue, Expenditures and Changes in Fund Balance (Deficits)
Total of All Governmental Funds
General Education
Fund Support Fund
(Only) (Only)
FY2021 FY2022 FY2023 FY2023 FY2023
Revenues
Property Taxes $17,445,434
$17,655,437
$18,121,497 $2,051,768
$11,926,820
Severance Taxes 1,049,430
1,677,595
1,597,327 1,597,327
-
Excise Taxes 702,142
683,971
829,274 829,274
-
Intergovernmental 9,436,868
18,644,026
9,967,172 3,943,757
-
Services, Fees, Investments & 1,603,034
Other Miscellaneous Revenue
(1,240,593)
2,772,206 510,140
-
Total Revenues $30,236,908
$37,420,436
$33,287,476 $8,932,266
$11,926,820
Expenditures
General Government $4,995,157
$5,017,074
$5,062,574 $4,381,980
$ -
Public Safety 546,055
543,862
725,305 150,430
-
Community & Economic Devel- 907,656
opment
1,514,449
944,084 699,370
-
Emergency Preparedness 5,257
10,983
16,460 16,460
-
Health & Social Services 5,257,005
169,647
150,000 150,000
-
Parks,Culture & Recreation 39,957
42,521
33,322 33,322
-
Service District Maintenance 647,976
856,657
700,146 -
-
Primary & Secondary Education 9,443,364
10,521,511
12,035,259 79,965
11,955,294
Capital Outlay 1,195,820
654,148
1,148,088 -
-
Debt Service 8,088,223
7,559,024
7,566,316
Total Expenditures $31,126,470
$26,889,876
$28,381,554 $5,511,527
$11,955,294
Other financing sources (uses)
Increase (decrease) in fund bal-
ance
$2,792,540
I
$15,4401
$26,697
$5,879,272 1$
-
$2,082,978 I
$10,546,000 1
$4,932,619
$9,300,0111 $(28,474)
Fund Balance, beginning of 58,747,066 60,830,044 71,376,044 8,250,8191 (157,433)
year, as restated
Fund Balance, at end of year 60.830.044 I 71.376.044
4
Kodiak Island Borough, Kodiak Alaska Popular Annual Financial Report For Fiscal Year Ending June 30, 2023
PROPRIETARY FUNDS:
(Reports the business -type activities provided by the Borough)
Proprietary Fund Name
Hospital Facili71—
Research
Long-Term Ca
Kodiak FisheriCourt Apartments
911 Services
Activity or Purpose of Fund
Accounts for the collection and disposal of solid waste and for the operation of the leachate
treatment plant.
Accounts for the Borough -owned hospital.
Accounts for the Borough -owned long-term care center.
Accounts for the Borough -owned Kodiak Fisheries Research Center.
Accounts for the Borough -owned Research Court Apartments.
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 6/30/23
■ Municipal Solid Waste ■Hospital ■ Long Term Care Center Kodiak Fisheries Research Center ■ Research Court Apartments
$20,726,277 $17,119,561 _ $8,141,549 ----_ $9,373,095 $325,427
NA
Proprietary (Enterprise) Funds Highlights:
• Municipal Solid Waste Collection and Disposal — Net position increased by $1.2 million due to decreased close/post closure ex-
penses and increased market value on investments.
• Hospital Facilities— Net position increased by $137,747 due to decreased repair and maintenance expenses.
• Long -Term Care Center — Net position increased by $756,290 due to decreased repair and maintenance expenses.
• Kodiak Fisheries Research Center (Enterprise Fund) — Net position decreased by $411,415 due increased depreciation and repair
and maintenance expenses.
• Research Court Apartments (Enterprise Fund) - Net position only increased by $17,838 due to stable tenant income and repair
expenses.
Statement of Revenue, Expenses and Changes in Net Position (Deficits)
Total Expenses $7,681,9131 $7,699,408
Other Financial Sources (uses) $ $ $ $
Net Position, beginning of year, $52,853,6161 $53,237,0171 $53,928,425 $19,470,253
as restated
Net Position, end of year 53.237.017 553 928.425
Total for All Borough Proprietary Funds
Municipal Waste
Collection &
Disposal (only)
FY2021
FY2022
FY2023
FY2023
Revenues
Total Operating Revenue
$7,974,451
$8,390,816
$8,133,203
$4,134,152
Total Non -Operating Revenue
90,863
-
-
Total Revenues
$8,065,314
$8,390,816
$8,133,203
$4,134,152
Expenses
Total Operating Expenses
$7,047,1511
$6,587,4501
$6,352,186
$2,656,258
Total Non -Operating Expenses
634,7621
1,111,9581
23,533
221,870
Total Expenses $7,681,9131 $7,699,408
Other Financial Sources (uses) $ $ $ $
Net Position, beginning of year, $52,853,6161 $53,237,0171 $53,928,425 $19,470,253
as restated
Net Position, end of year 53.237.017 553 928.425
Kodiak Island Borough, Kodiak Alaska Popular Annual Financial Report For Fiscal Year Ending June 30, 2023
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 Project Description
$ 46,365,537 High school renovation and renewal project.
4,594,500 Renewal and replacement for various school buildings.
3,101,875 Acquisition and construction of school improvements including anew school pool.
1,514,567 Planning, design and construction for the new school pool and Kodiak High School Voc/Ed classroom.
$ 1,242,853 Planning, design and construction for the Larsen Bay, Kodiak Middle and Kodiak High schools.
$ 56,819,332
$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
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 FY2023, the assembly reduced the Borough -wide mill rate
to 10.25 which equates to 1.025 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 (such as a road or fire service area), 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
0.33
FY23 1.36
7.88
1.18 (Includes $118,335 tra nsfer to Debt Servi ce)
0.00
FY22 1.65
6.99
2.11 (I n d udes $2.3 million tra nsfer to Debt Service )
0.00
FY21 ` 1.55
6.45
2.75 (Includes $3 million tra nsfer to Debt Service)
■R&R Projects ■Debt Service 0 Education Support ■General Fund
■ R&R Projects—To fund renewal and replacement
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 Island
Borough School District for the State required
local minimum contribution and in-kind costs.
■ General Fund—To fund the general operations of
the Kodiak Island Borough.
Kodiak Island Borough, Kodiak Alaska 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
$-
GeneralFundMillRate FY2021-2.75 mills
Excise taxes, service and fee revenues were relatively stable, however investment earnings increased by
$794,078, primarily due to an improved investment market.
Various state and federal revenues increased, primarily due to a $493,154 increase in shared business tax
revenues from the State.
Local Severance Tax Revenues includes taxes from timber, rock and mineral and sea products. The overall
decrease of $80,268 is primarily due to reduced sea products revenues.
General Fund Property Tax Revenues decreased by $1,396,806. 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 10.75 mill rate decreased from 2.11 mills in FY2022 to 1.18
mills in FY2023. This decrease was due to a decrease in the amount transferred to the debt service fund
in FY2023 as compared to FY2022.
General Fund Revenue by Category
$811,171
FY2022 - 2.11 mills FY2023 - 1.18 mills
Category Descriptions:
■ Excise Taxes, Services, Fees, Investments &
Other., Local revenues from penalties and
interest, 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 ARPA, Payment in Lieu of Tax
(PILI), Community Revenue Sharing, Fisher-
ies Business Tax Sharing, Fisheries Landing
Tax, National Wildlife Refuge and PERS on
Behalf Payments.
■ Severance Taxes: Local revenues from fish,
gravel and timber.
■ Property Taxes: Local revenues from resi-
dential and commercial real and personal
properties and commercial aircraft.
WHERE YOUR BOROUGH -WIDE PROPERTY TAX DOLLAR GOES
(See category descriptions under Property Taxes)
Education Support
73 Cents
!,). ',: %4 iiii't�.'
Debt Service
13 Cents
General Fund
11 Cents
? WAM I
11118091 GG
9�
M
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-- 12
Renewal &
Replacement
3 cents
7
Codiak Island Borough, Kodiak Alaska Popular Annual Financial Report For Fiscal Year Ending June 30, 2023
CAPITAL PROJECTS
Completed in FY2023:
• Schools
0 East Elementary Emergency Ceiling Repair
0 High School Roof Repair
• Long Term Care Center Day Tank Replacement
• Kodiak Fisheries Research Center (KFRC)
0 Carpet Replacement
0 Fume Hood Exhaust Replacement
• Fuel Tank Replacements
0 Providence Kodiak Island Medical Center
0 Baler Facility
KFRC Carpet Replacement
East Elementary Emergency. Ceiling Repair
Scheduled for Completion in FY2024 and Beyond:
• Schools:
0
North Star Siding and Window Replacement
0
North Star Roof & Skylight Replacement
0
East Elementary Roof Replacement
0
Peterson Roof Replacement
0
ChiniakWater System
0
Middle School Elevator Modernization
• Providence Kodiak Island Medical Center (PKIMC):
0
PKIMC & Kodiak Community Health Center Space
Analysis
0
Elevator Modernization
• Sargent Creek Park Upgrades
• Kodiak Fisheries Research Center Ozonator
• Leachate Treatment Plant Pretreatment Facility
KFRC Fume Hood Exhaust
Providence Kodiak Island Medical Center Fuel Tank Replacement
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