FY2016 Popular Annual Financial ReportKodiak Island Borough
Popular Annual Financial Report
For Fiscal Year Ending June 30, 2016
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Kodiak, Alaska
Government. Geoeraohic Location & Population
The Kodiak Island Borough was incorporated on September
30, 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 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/MIS, Assessing, Community Development and
Engineering/Facilities.
Kodiak Island lies at the western border of the Gulf of Alaska
and is approximately 250 air miles south of Anchorage, Alas-
ka. The island is accessible only by boat or plane and is the
second largest island in the United States. In total, the Bor-
ough encompasses 7,130 square miles and currently serves a
population of 13,819.
Services
The Borough has a full range of services, including: general
government, fire protection, first -response emergency medi-
cal services, health facilities, road and other infrastructure
construction and maintenance, community and economic
development and solid waste disposal. Additionally, the
Borough supports tourism development, local parks, and
cultural and recreational activities. The Borough is financially
responsible for a legally separate school district which is
reported separately within the Borough's financial state-
ments. Additional information on this legally separate entity
can be found in the Comprehensive Annual Financial Report
(CAFR).
Economics
Seafood processing is by far the largest industry generating
revenue in several categories. The Port of Kodiak has been
consistently ranked among the top ten ports in the United
States in terms of amount and value of product delivered. In
2015, according to the National Ocean Economics Program,
the Port of Kodiak ranked second largest in landed weight
(513,900,000 pounds) and third largest in landed value
($137,500,000).
Tourism remains strong with stable bed tax revenues and
cruise ship traffic which is expected to increase in the coming
years.
Kodiak Island is home to the largest U.S. Coast Guard Base in
the United States employing over 1,200 people and providing
vital services to the marine industries which are integral to
the community.
The Pacific Spaceport Complex -Alaska, a launch facility, is
capable of handling small to medium sized rockets for launch-
ing low earth orbiting satellites, as well as other military, sci-
entific and research missions.
Map of the
Kodiak Island Borough
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KODIAK ISLAND
BOROUGH
About The Popular Annual Financial Report
The Popular Annual Financial Report (PAFR) 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 FY2016 Comprehensive Annual Financial Report
(CAFR). The CAFR conforms to the generally accepted accounting
principles (GAAP) and includes audited financial statements.
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 more detailed information and copies of the CAFR and PAFR,
visit the Borough's office located at 710 Mill Bay Road, Kodiak,
Alaska, or on our website at www.kodiakak.us.
We hope you find the report to be informative. We welcome your
comments, questions and suggestions.
Michael Powers Dora Cross
Borough Manager Finance Director
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odiak Island Borough
Popular Annual Financial Report For Fiscal Year Ending June 30, 2016
Financial Structure
The Borough maintains 29 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 interests most residents : General, Educational, and Municipal Waste Collection.
Governmental Funds
(Reports the basic service activities provided by the Borough)
Governmental Fund Name Activitv or Purpose of Fund
General Fund
Operating fund for the Borough. Departments within the fund are: Assessing, Clerks, Com-
munity Development, Engineering & Facilities, Finance, 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
Operating fund for the payment of general long-term debt principal, interest and other relat-
ed costs. Currently, the fund services General Obligation Bonds.
Capital Project Funds
Operating fund for the acquisition or construction of major capital facilities and equipment.
Statement of Revenue, Expenditures and Changes in Fund Balance (Deficits)
®,
All Governmental Funds General
Revenues
Property Taxes
Severance Taxes
Intergovernmental
Services, Fees, Investments, & Other
Total Revenues
Expenditures
General Government
Public Safety
Community & Economic Development
Emergency Preparedness
Health & Social Services
Parks, Culture and Recreation
Service District Maintenance
Primary & Secondary Education
Capital Outlay
Debt Service
Total Expenditures
Otherfinancing sources (uses)
Increase (decrease) in fund balance
Fund Balance, beginning of year, as restated
Fund Balance
(includes General and Educational Funds)
3
Fund
Educational Fund
(Special Revenue)
FY 2015
FY 2016
FY 2016
FY 2016
$14,091,503
$14,310,687
$221,757
$10,106,177
1,807,331
1,586,555
1,491,089
-
12,426,726
11,961,335
4,132,063
253,112
1,290,143
1,468,634
157,835
$29,615,703
$29,327,21
$6,002,744
$10,359,289
$6,333,724
$5,307,249'
$4,399,679
524,169
572,839
109,415
-
1,153,985
1,069,639
984,639
-
29,128
30,849
30,849
-
406,093
389,000
389,000
-
186,452
111,405
111,405
-
534,376
626,289
-
-
11,100,714
11,100,650
195,000
10,905,650
24,891,673
16,671,895
-
-
5,767,617
6,519,986
$50,927,931
$42,399,797
$6,219,987
$10,905,650
176,987
17,605,273
47,792
485,600
(21,135,241)
4,532,687
(169,451)
(60,761)
72,318,860
51,442,943
3,455,232
46715
S51 183 619
$i 975 630
53.285.781
Sf14.0461
4
Kodiak Island Borough
Popular Annual Financial Report For Fiscal Year Ending June 30, 2016
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 Treatment plant.
Hospital and Care Facilities Accounts for the Borough -owned hospital and long term care facility.
Kodiak Fisheries Research Center Accounts for the Borough -owned Kodiak Fisheries Research Center.
911 Services Accounts for fees collected from land line phones for a 911 emergency system.
Statement of Revenue, Expenditures and Changes in Fund Balance (Deficits)
All Borough Proprietary Funds Municipal Waste
(Includes Municipal Waste Collection) Collection
Revenues
Total Operating Revenue
Total Non -Operating Revenue
Total Revenues
FY 2015
$6,683,971
254,506
$6,938,477
FY 2016
$8,219,712
821,791
$9,041,503
Expenditures
Total Operating Expenditures $4,474,621 $7,107,229
Total Non -Operating Expenditures 1,277,654 1,301,865
Total Expenditures $5 752 275 8 409 094
General Fund Revenues — A Closer Look
7,000,000
■ Services, Fees,
6,000,000
Investments & Other
5,000,000
■ Intergovernmental
4,000,000
■ Severance Taxes
3,000,000
■ Property Taxes
2,000,000
1,000,000
Category descriptions:
FY 2016
$2,875,750
199,320
$3,075,070
$4,450,207
314,664
4'764.87
Services, Fees, Investments & Other: Local revenues from
penalties and interest, building permits, zoning permits, in-
terest earnings and changes in market value on investments,
map sales and reimbursed expenses.
Intergovernmental: Federal and State revenues such as Pay-
ment in Lieu of Tax (PILT), Community Revenue Sharing, Fish-
eries Business Tax Sharing, Fisheries Landing Tax, National
Wildlife Refuge and PIERS on Behalf Payments.
Severance Taxes: Local revenues from fish, gravel and timber.
Property Taxes: Local revenues from residential and commer-
cial real and personal properties and commercial aircraft.
<odiak Island Borough
Popular Annual Financial Report For Fiscal Year Ending June 30, 2016
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 FY2016, 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 activi-
ties. 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.
Where Your Borough -Wide Property Tax Dollar Goes
Education Support
71 cents
V10111 M"M
L I11.802
'A....w. ,...
Debt Service Renewal & Replacement General Fund
18 cents 10 cents 1 cent
712-
11 ��
Bonded Debt
(Balances Include Bond Premiums and Discounts)
General Obligation Bonds — bonds issued by a state or municipality which is secured by the Borough's pledge to use any or all
available resources — generally tax revenues — to repay holders of the bond.
Revenue Bonds — bonds issued by a state or municipality which finance income -producing projects and are secured by a spec-
ified revenue source — generally fee income — to repay holders of the bond.
Bond Premium/Discount — A bond trades at a premium when it's stated coupon rate (rate of interest) is higher than prevail-
ing interest rates. It trades at a discount when it's stated coupon rate (rate of interest) is lower than prevailing interest rates.
Balance July 1, 2015
New Issues (Additions)
Payments (Reductions)
Balance June 30, 2016
Governmental Funds
General Obligation Bonds
(School & Facility Improvements)
$73,131,566
17,141,115
3,791,024
�M
Propri
Revenue Bonds
Proprietary Funds
Revenue Bonds
Lone -Term Care Center
$17,984,677
738,822
17.245.855
6