FY2014 Popular Annual Financial ReportAS OF JUNE 30, 2014
POPULAR
ANNUAL
FINANCIAL
REPORT
4
Kodiak Island Borough Popular Annual Financial Report
Table of Contents...
GFOA Award for 2013.....................................................................
3
Organizational Chart, Mayor and Assembly members ............4-5
Where and what is Kodiak Island Borough ..............................
6-7
Financial Information................................................................
B-13
Department Messages:
Assessing..........................................................................14
Clerk..............................................................................15-16
Community Development............................................16-17
Finance/MIS...................................................................17-19
Engineering/Facilities...................................................
20-24
Community Health Care...............................................................25
Education.....................................................................................26
Emergency Preparedness............................................................
27
Fire and Emergency Protection Services ...................................
28
Road Service Maintenance and Repair .......................................
29
Boards and Commissions rosters .........................................
3033
Statistical Information..................................................................
34
Website..........................................................................................
35
The Popular Annual Financial Report (PAFR) is intended to present a condensed
overview of the Borough's financial position. Included are messages and infor-
mation from each of our departments representing our effort to keep citizens in-
formed regarding your government's current activities.
The information in this report is prepared in accordance with the Government Fi-
nance Officers Association standards and is taken from the Comprehensive Annu-
al Financial Report (CAFR). A copy of the complete CAFR is available at the Fi-
nance Department.
We hope you find the report to be informative and we welcome your comments
and suggestions.
Charles E. Cassidy Jr.
Borough Manager
2 Cover photo by Janel Day
Karleton G. Short
Finance Director
Kodiak Island Borough Popular Annual Financial Report
Government Finance Officers Association
Award for
Outstanding
Achievement in
Popular Annual
Financial Reporting
Presented to
Kodiak Island Borough
Alaska
For its Annual
Financial Report
for the Fiscal Year Ended
June 30, 2013
Executive DinmtodCEO
Kodiak Island Borough Popular Annual Financial Report
Organizational Chart & Assembly Members...
Electorate
Borough Mayor
Borough Aaemhly
BorougM1 Manager
Borough Attorney BoiwhCl�rk HROMcei/ExeMieeA opnt
tlng/FatiliHeS Fire Chief Assessing CommunM1y Deyelopmen Finance/MI5
Director
Maintenance Coordinator
Weraenentt MCNaMc
Seaetarylll
Beer
Solid Waste W/Ern. Spec,
Baler/Landfill6Y0-1
Baler Dp II
Bake Wl
Baler Opl
Bales op I
BaU C
hoe s
rpe'VAWe Spac/Rec
.1rgefrveet.purec.
Maimenaneeen®neer
saiect
Piolece ManageBI
Cone4uction lnry./EnFng
ro,2Manages
Pralett AeSseane
Secretary 111
A rob tw Director
PmesetrR Iui an Asw--ate Planner fi aar,.
Appr Asmdrte Planner Gener IAc unlanl
Wrai— TeMni- n Code EnforamentOMcer AcmunHng Tech/AP
Assesaeenl Clerk l Seoetary IN A.pppgTech/
Payiop
Reyemre Accountant
.Wer
MIS
R SupeMsor
Pro m /Analyst
GISa
PCTecu 11
Seerph( 111
Kodiak Island Borough Popular Annual Financial Report
Organizational Chart & Assembly Members ... (conf°d)
Mayor and Assembly (As of June 30, 2014)
Mayor
Mr. Jemol Friend
(Term ends 2016)
Mr. Aaron Griffin
(Term ends 2015)
Ms. Carol Austerman
(Term ends 2016)
Mr. Dave Kaplan
(Term ends 2014)
Mr. Tuck Bonney
(Term ends 2014)
Ms. Chris Lynch
(Term ends 2015)
Mr. Mel Stephens Mr. Frank Peterson
(Term ends 2014) (Term ends 2016)
Kodiak Island Borough Popular Annual Financial Report
Where and What is the Kodiak Island Borough....
Rod'iak Island
Borough
The Borough building location is
indicated above by the red
arrow; at the intersection of Mill
Bay Road and Egan Way.
Kodiak Island Borough
710 Mill Bay Road
Business hours; Monday thru Friday,
8amto5pm.
Kodiak Island Borough Popular Annual Financial Report
Where and What is the Kodiak Island Borough ... (cont'd)
The Kodiak Island Borough lies at the western border of the Gulf of Alaska,
approximately 40 miles south of the Kenai Peninsula. Kodiak Island is the largest island
in Alaska and the second largest in the United States. The Borough boundary includes
all of the Kodiak archipelago and part of the Alaska Peninsula, across the Shelikof Strait
from Kodiak Island. The Shelikof Strait is 20 miles wide in places. The Borough encom-
passes 7,130 square miles, making it slightly smaller than the State of Massachusetts,
and serves a population of 13,797.
The Borough was incorporated on September 30, 1963 as a Second -Class Borough by
Chapter 146 Sessions, Laws of Alaska 1961, as amended. A Manager -form of govern-
ment governs the Borough. The Mayor is elected at large while the Borough Assembly
appoints the Manager. The Assembly is composed of seven members, elected at large.
The main economic rivers of the Borough are commercial fishing, logging, tourism, gov-
ernment, aerospace, and community support services. The seafood processing industry
is by far the largest industry in the Kodiak Island Borough. Kodiak is home to the largest
port in the state, with 530 commercial vessels and consistently ranked among the top ten
ports in the United States in terms of amount and value of product delivered. According
to the National Ocean Economics Program, www.00eaneconomics.org, Kodiak ranked
second as the largest port in both landed weight (393,000,000 pounds) and seafood val-
ue ($170,300,000) in 2012. Since 2002 the landed weight of seafood has been increas-
ing while the landed value has increased slightly since 2010.
Tourism in Kodiak remains strong with bed tax revenues of $87,400 to $96,583 each
year over the last five years. Kodiak is a popular cruise ship destination, although the
number of cruise ships has declined in recent years.
The Kodiak Launch Complex includes a launch control center, payload processing facili-
ty, spacecraft assembly building, and launch pad. It is designed to handle small to medi-
um-sized rockets used to launch low earth orbit satellites, as well as military, scientific,
and research missions.
Kodiak is home to the largest Coast Guard base in the U.S., employing 1,295 people and
providing vital services to the marine industries that are an integral part of Kodiak, as well
as making a significant economic contribution to the Kodiak community.
The Borough provides a full range of services, including general government, fire pro-
tection, first -response emergency medical services, road and other infrastructure con-
struction and maintenance, community and economic development, health facilities,
culture and recreation, and solid waste disposal. The Borough is also financially ac-
countable 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.
Kodiak Island Borough PopularAnnual Financial Report
Financial Information...
The Kodiak Island Borough has two types of funds, governmental funds and pro-
prietary funds. The difference between governmental and proprietary funds is the
type of accounting. Governmental funds use the modified accrual basis while
proprietary funds use the accrual basis of accounting. In layman's terms, the
biggest difference is how the purchase of capital assets is handled. Governmen-
tal funds record the purchase as an expenditure while proprietary funds amortize
the expenditure which records depreciation as the expense. Most businesses use
the accrual method of accounting.
Kodiak Island Borough financials also include a component unit which is the
Kodiak Island School District which is not presented here.
Other Items of interest
Bonds: In FY2010, the voters approved a $76,310,000 bond issue for the Kodiak
High School Addition and Renovation Project. At this time the Borough has sold
$52,255,000. We are anticipating selling the balance in FY2016.
The proceeds from these bonds are to be used to renovate and remodel the ex-
isting Kodiak High School. When all of the bonds are sold, after state reimburse-
ment of 70%, the Borough anticipates annual payments of $1,620,000 on these
bonds. This equates to approximately 1.50 mills. (One mill equals a tax payment
of $200 on a $200,000 house.)
Investments: Total interest earnings were $1,294,317. Interest Earnings were
considerably higher than they were in FY2013, which were $654,605. The earn-
ings made in FY2014 on our investments equate to more than a mill in savings to
our taxpayers.
3,000,000 -(�-
1.500.003
z,00g3w
1,500,000
1,003,033
500,000
10
Net Debt Service
Kodiak Island Borough Popular Annual Financial Report
Financial Information ... (cont'd)
Governmental Funds
Governmental funds include the General Fund, Special Revenue Funds, Debt Ser-
vice Funds, and Capital Project Funds.
STATEMENT OF REVENUE, EXPENDITURE
and CHANGES IN FUND BALANCE
Revenue
Property taxes and assessments
Transient accommodations tax
Severance tax
Intergovernmental
Services, licenses, permits & fees, other
Investments
Total revenues
Expenditures
General Government
Public safety
Comm unity and eoonom ic development
Emergency preparedness
Health and Sanitation
Education, culture and recreation
Parks and recreation
Service district maintenance
Primaryand secondary education
Capital outlay
Debt service and issuance
Total expenditures
Otherfinancing sources (uses)
Increase (decrease) in fund balance
Fund balance, beginning of year
Fund balance
FY 2014 FY2013
$ 13,656,771 $ 12,936,796
75,142
96,640
1,843,819
1,774,700
14,871,830
9,588,389
752,555
709,541
1,115,466
536,903
$ 32,315,583 $ 25,106,066
$ 5,449,505 $ 5,307,199
576,720
469,280
964,377
1,070,991
9,987
18,342
326,700
290,800
95,625
84,273
37,795
21,100
631,572
479,264
10,845,220
10,442,350
36,394,231
7,528,346
5,845,191
4,241,475
$ 61,176,923 $ 29,953,420
25,363,716 24,956,170
(3,497,624) 20,645,719
75,816,484 55,170,765
$ 72,318,860 $ 75,816,484
The Borough sold Shuyak Island to the State of Alaska for $42,000,000. $6,000,000
was used for construction of the Kodiak Fisheries Center and the remaining
$36,000,000 was used to establish the Facilities Fund. The State made its final pay-
ment of $11,805,734 in FY2003.
Since inception this fund has earned $18,828,986 in interest. This fund has paid
$2,993,500 for building insurance, $7,678,333 for debt service, and $4,608,179 for
capital projects. Currently, it has a fund balance of $39,548,944.
Kodiak Island Borough Popular Annual Financial Report
Financial Information ... (conrd)
Proprietary (Enterprise) Funds
Proprietary funds include Solid Waste, Hospital, Kodiak Fisheries Research
Center (KFRC), and 911.
STATEMENT OF REVENUE, EXPENSE and
CHANGES
Revenue
Municipal solid waste collection
Hospital facilities
Kodiak Fisheries Research Center
Other non -major enterprise funds
Total revenues
E)penses
Municipal solid waste collection
Hospital facilities
Kodiak Fisheries Research Center
Other non -major enterprise funds
Total e)yenses
FY2014 FY2013
$ 2,305,370 $ 2,515,743
1,150,000 720,000
1,851,761 1,603,503
39,817 39,769
$ 5,346,948 $ 4,879,015
$ 1,942,064 $ 2,172,396
883,804 855,191
1,455,710 1,515,187
39,817 87,596
$ 4,321,395 $ 4,630,370
Other income (e)Wense)
Municipal solid waste collection $ 5,669,514 $ 5,201,572
Hospital facilites (388,193) 636,753
Kodiak Fisheries Research Center (186,851) (209,012)
Other non -major enterprise funds
Total other income (e)pense)
Change in net position
Net position, beginning ofthe year
Net position, end of year
10
5,097,470 5,629,313
6,032,820 5,877,958
42,378,464 36,500,506
$48,498,487 $42,378,464
Kodiak Island Borough Popular Annual Financial Report
Financial Information ... (cont'd)
General Funds
The General Fund of the Borough is the nucleus around which all of the other
funds radiate. When people think of the Borough, most people are thinking of
General Fund activities.
Most of the Borough's employees are in General Fund departments. Gen-
eral Fund departments are the ones that register you to vote, appraise your
house, and collect your property tax. They also zone your property and build
the schools your children attend.
GENERAL FUND - FUND BALANCE
Assets
2014
2013
Current assets
$
3,484,048
$
3,366,911
Other assets
'937,342
2,584,109
Total assets
$
4,421,390
$
5,591,020
Liabilities
Current liabilities
$
364,037
$
425,370
Other liabilities
553,405
2,178,664
Total liabilities
917,442
2,604,034
Fund balance
$
3,503,948
$
3,346,986
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
Fund Balance
2005 2006 2007 2006 2009 2010 2011 2012 2013 2014
11
Kodiak Island Borough Popular Annual Financial Report
Financial Information ... (cont'd)
General Fund (cont'd)
STATEMENT OF REVENUE, EXPENDITURE
and CHANGES
Revenue
Property taxes and assessments
Severance tax
Intergovernmental
Services, licenses, permits & fees, other
Investments
Total revenues
Expenditures
General Government
Public safety
Community and economic development
Health and Sanitation
Education, culture, parks and recreation
Primary and secondary education
Total expenditures
Other financing (uses)
Change in fund balance
Fund balance, beginning of year
Fund balance, end of year
12
FY 2014 FY 2013
$ 207,975
$ 261,271
1,843,819
1,774,700
4,605,916
4,787,308
97,041
72,615
23,804
39,078
$ 6,778,555 $ 6,950,002
$ 4,519,794 $ 4,401,817
82,928
46,342
880,251
986,041
326,700
290,800
133,420
105,373
195,000
192,000
$ 6,138,093 $ 6,022,413
$ (483,500) $ (872,660)
156,962 54,929
3,346,986 3,292,057
$ 3,503,948 $ 3,346,986
Photo by Kirsten Gallaher
Kodiak Island Borough Popular Annual Financial Report
Financial Information ... (conrd)
FY2014 General Fund Revenues
0 Property Tax
m Severance Tax
9 Intergove mmental
■ other
FY2014 General Fund Expenditures
■ Total general government
■ Public safety - animal
control
9 Community and economic
development
■ Primary and secondary
education
■ Other
13
Kodiak Island Borough PopularAnnual Financial Report
Kodiak Island Borough Departments...
Assessing
The Assessor's office strives to provide fair and equitable assessments of all taxa-
ble real and personal property within the Kodiak Island Borough. The assessment
is an estimate of the fair market value of your property as determined by the as-
sessing staff.
In accordance with Alaska Statute 29.45.110(a):
the assessment shall be at full and true value, which is defined in the statute as
the "estimated price that the property would bring in an open market and under the
then prevailing market conditions in a sale between a willing seller and a willing
buyer both conversant with the property and with prevailing general price levels."
the assessment shall be as of January 1 of the assessment year. This means the
assessments are to be reviewed annually for full and true value.
Alaska Statute 29.45.150 requires a "systematic reevaluation of taxable real and
personal property over the shortest period of time practicable." Each property is to
be re -inspected on a regular schedule. The schedule set by Kodiak Island Bor-
ough Resolution is every three years for properties on the road system and five
years for remote properties and properties within the remote cities and villages.
The purpose of the assessment is to determine the value of the property for calcu-
lating the borough real estate (property) tax. The rate of taxation is set by the As-
sembly annually based on the estimated annual expenditures for that year. The
task of the Assessors office is to strive to bring equity to all assessments. The
benchmark set by the state is 100% of market value. The assessing department
attempts to get as close to that standard as possible and also assure that the devi-
ations from the standard are in a narrow range so that all property owners are pay-
ing taxes on an equal basis.
The assessing department has approximately 7,900 real property parcels and
1,200 personal property parcels on record. In a typical year each borough apprais-
er inspects about 850 real property parcels and all personal property is reviewed
annually.
The overall goal of the —�
assessing department is Taxable Values
to provide a reliable
value estimate for $1,500,000,000
taxable property and to _
ensure that all $1,000,000,000
assessments are fair
and equitable. $500,000,000
2009 2010 2011 2012 2013 2014
■Real Property ■Personal Property
14
Kodiak Island Borough Popular Annual Financial Report
Kodiak Island Borough Departments ... (cont'd)
Clerk's Office
The Borough Clerk's Office is responsible for several aspects of Municipal Govern-
ment. The Clerk is appointed by the Assembly and serves at its pleasure.
In Fiscal Year 2014, the Clerk's Office:
• Organized the Borough's 50th Anni-
versary Celebration Event. The As-
sembly members, Boards and Com-
missions members, Borough staff
and the public attended the event on
Saturday, September 28, 2013.
Mayor Jerome Selby retired after
serving as the Borough Mayor for 25
years.
• Implemented Agenda Management
Software for the automation of creat-
ing agendas and packets for the Bor-
ough Assembly and other Boards
and Commissions. This has provided staff with the efficiency of compiling and
managing paperless meeting agenda packets. The software has also stream-
lined making the meetings packets available in a user-friendly manner on the
web and other mobile devices such as iPads.
• Successfully revised the Borough Retention Schedule for five departments and
will continue to work on the remaining departments that need updating during
fiscal year 2015.
• Conducted the October 2013 Local Municipal Election. There was a 17% voter
turnout which has led staff to research the option and process to implement by -
mail voting in future years.
• Facilitated training to approximately 60 election workers for the Kodiak Island
Borough, Port Lions, Ouzinkie, Old Harbor, Larsen Bay, and Chiniak polling
precincts.
• Carried out the Clerk's Office and Legislative Office budgets satisfactorily and
controlled expenses within the levels set.
• In FY2014, the Borough Assembly held 51 meetings which included regular
meetings, special meetings, work sessions, and joint work sessions. The follow-
ing were adopted and/or processed:
20 ordinances
33 resolutions
38 contracts
84 "other actions" of the Assembly
152 pages of minutes
• Deputy Clerk/Records Administrator handled 33 in-depth/extensive records
requests.
• Participated in the Tsunami Operations Workshop in Kodiak and attended a two
-day Public Information Officer's training conducted by the Division of
15
Kodiak Island Borough Popular Annual Financial Report
Kodiak Island Borough Departments ... (cont'd)
Homeland Security and Emergency Management. The Clerk and Deputy
Clerk are serving as PIOs in case of a public emergency.
Participated in the Alaska Shield 2014 Exercise. Clerk and Deputy Clerk
served as Public Information Officers.
Participated in the planning of the social media implementation of the Face -
book and Twitter platforms. Deputy Clerk is a member of the Borough Social
Media Planning Committee. The three staff members of the Clerk's Office
serve on various committees of the Alaska Association of Municipal Clerks
(AAMC); the Deputy Clerk serves as the Secretary of the Association's execu-
tive board. The Borough Clerk has attained the designation of a Master Mu-
nicipal Clerk (MMC) and the Deputy Clerk has attained the Certified Municipal
Clerk (CMC) designation and is currently working on her MMC designation
criteria and the Assistant Clerk, hired in August 2013 is working towards at-
taining the designation of CMC.
Communitv Develooment
The Community Development Department (CDD) plays a key role in economic
growth throughout the Borough. CDD is responsible for comprehensive (long-
range) planning, zoning compliance, and development services for the Borough.
One of the important responsibilities of the CDD is to provide guidance to the pub-
lic regarding zoning and land subdivision regulations. CDD also provides support
and professional and technical expertise to the Planning and Zoning Commission,
the Borough Assembly, and the Parks and Recreation Committee.
Additional responsibilities of the CDD include administrative support to the Local
Emergency Planning Committee (LEPC) and participation in the Incident Com-
mand System (ICS) for responses to natural and man-made disasters. The CDD is
responsible for land use Code Enforcement in the Borough and coordinates with
the Facilities Department to enforce solid waste disposal requirements.
The CDD is engaged in several major projects this year, including:
Complete update and rewrite of Title 16, the KIB Subdivision Code
Complete update and rewrite of Title 17, the KIB Zoning Code, including all zon-
ing maps
Complete update and rewrite of Title 18, the KIB Real Property Code
Completion of the comprehensive update of the Kodiak Area Emergency Opera-
tions Plan
Periodic update of the Hazard Mitigation Plan
Local Emergency Planning Committee (LEPC) coordination
Implementation of the Uniform Citation process for minor violations of Borough
Code, primarily animal control and solid waste
The CDD case load for the past Fiscal Year (FY14) included:
8 Planning and Zoning Commission work sessions
29 Planning and Zoning Commission special work sessions for the Code up
date project
16
Kodiak Island Borough Popular Annual Financial Report
Kodiak Island Borough Departments ... (coned)
11 Planning and Zoning Commission public hearings
8 Parks and Recreation Committee meetings
3 LEPC meetings
3 Presentation to the Rural/Regional Forum
119 Zoning Compliance Permits and reviews
5 Conditional Use Permits
3 Variances
2 Comprehensive Plan amendments
5 Rezone
17 Subdivisions (all types)
20 Code enforcement cases
2 Land disposal requests
4 Administrative Reviews
The departments administrative initiatives planned for the upcoming year include:
Completion of the code update project by Planning and Zoning and transmittal to
the Borough Assembly for final legislative action
Completion of the periodic update of the Hazard Mitigation Plan
Awaiting a contract for improvements related to reducing water quality impacts to
the Saltery Cove trail (grant funded)
Digitizing the historical property files and permit information
For more information about the KIB Comprehensive Plan, the CDD work program,
or the ongoing code update project, please visit our website at http:H
www.kodiakak.us/. The CDD department can also be reached at (907) 486-9396.
Finance
In FY2014 the Borough received a Certificate of Achievement for our Comprehen-
sive Annual Financial Report, an award for Outstanding Performance in Popular
Annual Financial Reporting, and a Distinguished Budgetary Presentation Award for
the budget. The Borough remains the only government in the State of Alaska that
has won all three awards.
Property Taxes
Property taxes are the
largest source of reve-
nues for the Kodiak Is-
land Borough. Property
taxes are calculated by
multiplying the assessed
value of a parcel by the
mill rate. A mill is 1/100
of 1 percent (.001) of a
dollar. The Borough As-
sembly decides the mill ra
Boards determine the mill
diak Island Borough is cur
Property Tax Mill Rate
v.00
m.a0
10.60
z0.eo
zo.zo
0 00
9.80
A"
zoos zoos zam zoos zoos zOzo zoss zou M. zoza
e for the Borough and the City Council and Service Area
rates for their respective areas. The mill rate of the Ko-
ently 10.75 mills.
17
Kodiak Island Borough Popular Annual Financial Report
Kodiak Island Borough Departments ... (conrd)
Severance Taxes
Severance taxes are levied on resources harvested or "severed" from within the
Borough. These taxes are determined by multiplying the mill rate (tax rate) by the
gross value of product harvested.
Severance taxes are collected in three categories of activities within the Kodiak
Island Borough: fish, which is seafood harvested and delivered to processors;
mining, which is primarily gravel but may include gold and other ore; and timber,
which includes all logging operations. Because the value of these resources
depends on the market for these goods, prices tend to fluctuate and consequent-
ly, the taxes collected also vary from season to season.
Interesting to note:
♦ Fishing accounted for 93% of severance taxes; the same as last year.
♦" Severance tax on timber is fairly level.
♦ Severance tax on mining has increased $22,877.
♦ Severance taxes accounted for 27% of FY2014 revenues.
2,500,000
2,000,000
1,500,000
1,OOQ000
500,000
18
Photo by Sheila Roberts
Severence Tax Collections
0 0 0 0 0 0 0 0 0 0
■ Timber
■ Mining
• Fish
Kodiak Island Borough Popular Annual Financial Report
Kodiak Island Borough Departments ... (cont'd)
MIS
In FY2014, the Kodiak Island Borough's GIS System continued to expand the
amount of data provided. The IT/GIS Department launched a five-year imagery
acquisition plan for refreshing imagery and collecting elevation data. The plan rec-
ommends collecting high resolution imagery for the Kodiak Road System and the
remote communities. The other areas of the Borough will be collected with medi-
um resolution imagery on a revolving basis. This plan will allow us to continue to
update the imagery that is used internally and provide to the public on our website.
We created a web map that shows all the Master Title Plats within the Kodiak Is-
land Borough (shown below). These documents and the information con-
tained on them is useful when researching land records. The Master Title Plats
show the original subdivisions of land. These do include original US surveys and
ANSCA/ANILCA land conveyances.
Kodiak Island Borough Master Title Plats
19
a1R
_
.� ur
FW
aw'
�
111
�NNE
19
Kodiak Island Borough Popular Annual Financial Report
Kodiak Island Borough Departments ... (conrd)
Engineering and Facilities
Engineering/Facilities has two types of projects: capital and non -capital. The cur-
rent capital projects that have been awarded and are in progress are six (6), with a
total value of $116,183,748.34. These projects are the Kodiak High School Addition
and Renovation, Landfill Lateral Expansion, Four School Generators, Anton Larsen
Bay Dock Replacement, Panamaroff Park Playground Upgrade, and Womens Bay
Emergency Shelter.
Kodiak High School Addition and Renovation
The Kodiak High School Addition and Renovation continues to progress. Watterson
Construction of Anchorage has completed five phases of the nine phase project.
The new multi -story educational building is in final stages of construction. When
returning from winter break, staff and students will occupy their new modern class-
rooms. Construction has commenced on Phase 6, which is the schools Main En-
trance, Front Office and houses the new Cafeteria. This Phase is scheduled to be
completed October 2015. Overall completion of the project remains on time.
Four School Generators
Alaska Legislative Grant—$2,182,000.00
Karluk and Old Harbor generators are scheduled to be completed by January
2015: Port Lions and North Star Elementary generators are scheduled to be com-
pleted by July 2015. Kodiak High School and East Elementary generator replace-
ments were also funded with this grant and work has already been completed.
Landfill Lateral Expansion
Landfill Lateral Expansion Phase II — Brechan Enterprises has received their Sub-
stantial Completion Certificate. Remaining Phase II work to be completed in
Spring 2015, which is associated with the Phase III Leachate Treatment Facility
completion schedule.
Kodiak Island Borough Popular Annual Financial Report
Kodiak Island Borough Departments ... (conrd)
Landfill Lateral Expansion Phase III — ASRC SKW Eskimos has completed the
concrete water holding structure and is completing the building foundation in prep-
aration for the erection of the prefabricated metal building, and is scheduled to
start in November, 2014. Phase III is currently scheduled to be completed by
June 1, 2015. Completion for the entire project is scheduled for 2015 for
$32,000,000.
Anton Larsen Bay Dock Replacement
Alaska Legislative and Denali Commission Grants—$2,080,000.00
The design is complete and calls for two new forty foot long dock sections. The
project is scheduled to be put out for bid this fall, with construction scheduled for
Spring 2015.
21
Kodiak Island Borough Popular Annual Financial Report
Kodiak Island Borough Departments ... (cont°d)
Panamaroff Park Playground Upgrade
Alaska Legislative Grant—$100,000.00
Playground upgrades began with Panamaroff Parkin Womens Bay. The equip-
ment arrived on Kodiak in late September and installation should be completed by
the end of October.
Womens Bay Emergency Shelter
Alaska Legislative, and US Department of Housing and Urban Development Grants
— $1,500,000.00
The design has been completed for a
3,500 sq. ft. addition including a 1,000
square foot day room for community
events and activities, double -wide
apparatus bay to serve two fire en-
gines, toilet room, and storage rooms.
The project was put out to bid in Octo-
ber 2014 with construction scheduled
for Spring 2015.
22
Kodiak Island Borough Popular Annual Financial Report
Kodiak Island Borough Departments ... (eoned)
Bond Renewal and Replacement Projects
Project Name
Kodiak Middle School Underground Storage Tank Replacement
East Elementary School Flooring Replacement
Peterson Elementary School Flooring Replacement
Port Lions School Underground Storage Tank Replacement
Main Elementary School Underground Storage Tank Replacement
Kodiak Middle School New Elevator Controls
Kodiak Middle School School New HVAC (Heating) Controls
Peterson Elementary School New HVAC (Heating) Controls
Kodiak Middle School Rear Parking Lot Paving
East Elementary School Cafeteria Roof Replacement
Ouankie School Old Wing Flooring Replacement
Ouzinkie School New Wing Flooring Replacement
Al School Flooring Replacement
Kodiak Middle School Fire Alarm Replacement
East Elementary School Partial Interior Renovation
Peterson Elementary School Parking Lot Paving
Kodiak Middle School Bus Ramp Roof Replacement
Peterson Elementary School Replacementof Boilers
rylfY'flFj+`+ f+r'
Main Elementary School Gym Floor Replacement
Karluk School Flooring Replacement
Chimak School Playground, Equipment Replacement
Karluk School Playground Equipment Replacement
Akhiok School Playground Equipment Replacement
East Elementary School Replacement of Plumbing Fixtures
Old Harbor School Playground Equipment Replacement
Ouankie School Playground Equipment Replacement
Port Lions School Playground Equipment Replacement
Old Harbor School Underground Storage Tank Replacement
Project Totals
Project Cost
$ 150,000
649,000
363,500
200,000
150,000
54,000
1,576,200
694,900
675,800
1,248,500
160,300
41,000
95,500
405,000
687,200
972,000
118,800
324,600
450,000
86,700
101,200
101,200
101,200
256,500
121,500
121,500
121,500
202,400
10,230,000
23
Kodiak Island Borough Popular Annual Financial Report
Kodiak Island Borough Departments ... (conrd)
Completed Renewal and Replacement Projects:
• Port Lions School (exterior painting)
• Chiniak School Underground Storage Tank
• Kodiak Middle School Concrete Repairs
24
Kodiak Island Borough Popular Annual Financial Report
Community Health Care...
One of the Kodiak Island Borough's powers is health care. To
this end, the Kodiak Island Borough constructed and helps
maintain the hospital and health care facilities. Providence
Health & Services operates the hospital and mental health cen-
ter and leases these facilities from the Borough.
� Kodiak's hospital, Providence Kodiak Island Medical Center
(PKIMC), features 25 acute-care beds, which includes four birthing suites and
two intensive care beds. The hospital is staffed by a mix of primary care physi-
cians, surgeons and specialists who provide family practice, internal medicine,
obstetrics, radiology, psychiatry, general and orthopedic surgery and a number
of specialty clinics. The hospital offers a significant range of inpatient and outpa-
tient services including emergency department, surgery, laboratory services,
eICU (electronic Intensive Care Unit), maternity, general medicine, physical
therapy, occupational therapy, respiratory therapy, sleep studies, palliative care,
specialty clinics and diagnostic imaging services.
During 2014 PKIMC continued to receive recognition for providing high quality
care and is recognized throughout the Providence system for its high inpatient
and emergency department patient satisfaction.
In February 2014, Providence Chiniak Bay Elder House opened, a new 22 bed
long term care facility, replacing the aging 19 bed Care Center. The Elder House
changes the care model from institutional to a resident -centered, home -like envi-
ronment. This new model provides each resident with a private bedroom and
bathroom.
The mental health center, Providence Kodiak Island Counseling Center, offers
counseling for all age groups, family and couples' therapy, mental health clini-
cians in the schools, case management for chronically mentally ill, medication
management and outpatient chemical dependency treatment. In 2014 PKICC
served 57 Substance Abuse and 262 Mental Health clients, providing 7,901
services to Kodiak Island Borough residents, including 132 on-call psychiatric
emergency visits.
In addition to services provided at the counseling center and in the emergency
room, PKICC has participated in community outreach by providing over 300
hours of clinical time to Kodiak agencies such as KWRCC and the Brother Fran-
cis Shelter. During 2014 PKICC continued to provide professional support to
the Kodiak Island Borough School District through the Clinicians in the School
Program. In June 2014, the facility underwent a successful site review by the
Joint Commission on Accreditation and is now fully accredited Behavioral Health
facility. This accreditation helps to ensure Kodiak residents receive the highest
level of care possible.
25
Kodiak Island Borough Popular Annual Financial Report
Education...
The Kodiak Island Borough Assembly has statutory responsibility to provide
financial resources for the school district. The Kodiak Island Borough School
Board has budgetary authority with respect to use of local funding and establish-
ing educational programs and staffing. Ownership of facilities is retained by the
Borough, as is the responsibility to maintain the facilities.
KIBSD Enrollment History The Borough is also responsible for debt service
Fiscal Number of related to construction of new schools and renova-
tion of existing schools. Debt service on school
bonds falls out of the local contribution maximum
2005 2,678 amount. In FY2014 the Borough spent $5,098,782
2006 2,718 on debt service for school faculties; $3,347,517 was
2007 2,636 reimbursed by the State of Alaska.
2008 2,671
2009 2,598 A major factor in the number of students is the Coast
2010 2,567 Guard base population. Current enrollments are
2011 2,543 stable at the 2,500 range. This includes students in
the 8 rural sites as well.
2012 2,535
2013 2,518 The school district's general operational budget is
2014 2,529 1 funded through a combination of federal, state and
local sources. The Kodiak Island Borough is commit-
ted to adequately funding education. The local contribution maximum allowable
comes from a calculation defined by State statute (AS 14.17.510). The maxi-
mum allowable local contribution increases each year, based on both the full
taxable value of Kodiak Island Borough, as well as basic need determined in the
Foundation Formula — both factors have seen increases over the past deo-
ade. However, the past three years have provided a fairly stable local funding
support level.
The FY2014 area wide mill rate was 10.75 mills. 8.75 mills went to school dis-
trict support and .71 mills went to school debt service.
12,000,000 -
■ Local Support
8,000,000
4,000,000flm
111 Max Allowable
0-
lb
26
Kodiak Island Borough Popular Annual Financial Report
Emergency Preparedness...
Kodiak Island is located between a
string of volcanoes to the west and a
major earthquake generation zone
(subduction zone) to the east. This
location provides a dynamic environ-
ment that is prone to a multitude of
natural and man-made disasters.
In the past 105 years, Kodiak has ex-
perienced being buried under more
than 5 feet of volcanic ash, a deadly
Influenza outbreak, a major earthquake
and tsunami that destroyed the City of
Kodiak's downtown area and many of the remote villages, major rock slides, and
a massive oil spill that covered numerous shorelines with oil and devastated the
local fishing economy. Kodiak's history has proven it's not a matter of "if the
area will experience another major disaster: it's a matter of "when." Preparing
for that next disaster is a priority for the Kodiak Island Borough.
The Kodiak Island Borough, City of Kodiak, US Coast Guard, and Alaska Divi-
sion of Homeland Security and Emergency Management (DHS&EM) continu-
ously work together to improve preparedness for response and recovery from
potential local disasters. This synergistic group utilizes an "all -hazard' approach
to increase Kodiak's resiliency to the various natural and man-made hazards
that could affect the area. Recent efforts to increase local emergency prepared-
ness include:
An active DHS&EM grant funded Local Emergency Planning Committee
(LEPC).
Regular Incident Command System Training for Borough, City, and USCG
Personnel.
Participation in regular Emergency Operation Center disaster preparedness
tabletop exercises.
Planning for the state-wide Alaska Shield 2016 disaster preparedness exer-
cise.
Key personnel attendance at DHS&EM biannual Emergency Preparedness
and State Emergency Response Commission conferences.
Annual LEPC sponsored multi -agency Emergency Preparedness Fair at Bay-
side Fire Station.
Annual LEPC sponsored multi -agency Emergency Preparedness Booth at Ko-
diak Crabfest.
Providing free Kodiak Emergency Preparedness Guides and State emergency
preparedness materials to residents and visitors.
The Kodiak Island Borough is committed to increasing emergency preparedness
at all levels within its communities. For further information on emergency pre-
paredness in Kodiak, please call (907) 486-9362 or visit the LEPC & Emergency
Service Council page of the Borough website.
27
Kodiak Island Borough Popular Annual Financial Report
Fire Protection and Emergency Services...
The Kodiak Island Borough has three fire protection areas which include Fire
Protection Area No. 1, Womens Bay Service Area, and the Airport Fire Pro-
tection Service; as well as two fire stations on the road system.
Fire Protection Area No. 1 houses the Bayside Fire Station and provides fire
and emergency medical services (first responder EMS) to the residents and
visitors north of the city of Kodiak limits and in the Monashka Bay Area.
The Womens Bay Service Area houses the Womens Bay Fire Station and
provides fire protection and first responder EMS to the residents and guests
within the service area boundaries. The Womens Bay Fire Station also
provides fire protection to the Airport Fire Protection Service Area.
The departments conduct mutual training, public education, fire and injury
prevention, and strive to ensure cooperative interaction of the departments to
strengthen training, skill development and improvement of service to their
respective service areas. This joint cooperation benefits the public in a variety
of ways from ensuring consistency of service delivery and seamless
interactivity between cooperative fire and EMS agencies.
Bayside Fire Department is evaluating proposals for the installation of a
facility emergency generator. A generator will enhance the ability of the
department to provide emergency services. This project will be funded
through a legislative appropriation and the fire department budget.
The Womens Bay Fire Department Emergency Shelter design has been
completed for a 3,500 sq ft addition including a 1,000 square foot day room
for community events and activities, double -wide apparatus bay to serve two
fire engines, toilet room, and storage rooms. The project was put out to bid in
October 2014 with construction scheduled for Spring 2015.
Both departments always invite interested residents to become a volunteer.
We have a variety of positions in firefighting, emergency medical responder
as well as support roles for these disciplines. We are always looking for new
members that enjoy community involvement. Please consider volunteering.
28
V? I�
'j
Both departments always invite interested residents to become a volunteer.
We have a variety of positions in firefighting, emergency medical responder
as well as support roles for these disciplines. We are always looking for new
members that enjoy community involvement. Please consider volunteering.
28
Kodiak Island Borough Popular Annual Financial Report
Road Service and Maintenance Repair...
Service Area 1:
This service area has many projects that are being worked on including ditch-
ing and new culvert work on Mallard Way and in the Woodland Acres area,
drainage problems in Shahafka Acres, and plans to survey and do design work
to address the major issues that have been causing reoccurring problems.
This work is scheduled to begin in the Spring of 2015. Road signs have been
ordered to replace missing or damaged signs in the Spring.
This service area has focused on and will continue to improve upon drainage
through ditch line cleaning, maintenance, road safety issues, and culvert re-
placement as required. Targeted areas currently are the Mallard Way, Shahaf-
ka Acres and Woodland Drive sections of the service area. Brush removal and
control in the ditch lines is ongoing. Gravel topping of specific defined areas
will continue as required. The board will continue to pursue funding opportuni-
ties for paving projects as well.
Monashka Bay Road Service Area:
This service area had the Borough's engineering firm do some long range
estimating for all the projects throughout the service area. With this infor-
mation the service district produced good estimates for a Capital improvement
plan so that funding can be sought out for the issues.
This service area's goal is to reduce long term maintenance costs while ensur-
ing safe travel lane surfaces throughout the service area. The board will con-
tinue to pursue possible funding sources and methods to carry out the devel-
oped improvement and upgrade list prepared and updated annually by the
board.
Bay View Road Service Area:
This service area continually strives to maintain the road surfaces, drainage
ditches and culverts to ensure serviceable roadways.
Womens Bay Road Service Area:
This service area plans to continue the gravel road topping project that has
been ongoing for several years. Ditching, brushing, sign replacement are be-
ing accomplished by planned area until completed. The board is discussing
options to preserve the existing asphalt surfaces to minimize the overall repair
and maintenance costs for the residents.
Miles of FY2014 Cost Per
29
Road
Expenditures
Mile
Women's Bay Service District
12
145,294
12,108
Service Area No. 1
11.12
425,158
38,234
Monashka Bay Service District
2
55,292
27,646
Bayview Road Service District
1
5,566
5,566
29
Kodiak Island Borough Popular Annual Financial Report
Kodiak Island Borough Boards and Commissions...
Architectural/Engineering Review Board; Building Code Board of Appeals
Scott Arndt, term ends 2016
Bill Barton, term ends 2015
Cliff Ford, term ends 2015
Gregg Hacker, term ends 2016
Rick Ryser, term ends 2017
Non -Voting Ex-Officios
Jerrol Friend, KIB Assembly Representative
Norm Wooten, K/B School Board Representative
Bay View Road Service Area Board
Jim Carmichael, term ends 2016
Peter Ivanoff, term ends 2016
Reed Oswalt, term ends 2017
Fred Roberts, term ends 2015
Jim Schauff, term ends 2015
Citizens Board of Equalization
Mark Anderson, term ends 2015
Paula Laird, term ends 2017
Ed Mahoney, term ends 2015
Came Morton, term ends 2016
John Parker, term ends 2017
Cheryl McNeil (Alternate), term ends 2016
Grant Shields (Alternate), term ends 2017
Fire Protection Area No. 1 Board
Scott Arndt, term ends 2017
Richard Carstens, term ends 2017
Rebecca Nelson, term ends 2015
Jim Pickett, term ends 2016
Kiela Pickett, term ends 2015
Non -Voting Ex -Officio
Bayside Fire Chief, Robert Himes
Fisheries and Oceanic Research Board
Jerrol Friend, Borough Mayor
Pat Branson, City of Kodiak Mayor
Vacant, Village Mayor (Rotating Seat)
Brian Himelbloom, UAF, Kodiak Seafood and Marine Science Center
Robert Foy, NOAA Fisheries/AFSC Kodiak Laboratory
Steve Honnold, Alaska Department of Fish and Game Region IV
Anne Marie LaRosa, US Fish and Wildlife Service
Vacant, USCG Support Center Kodiak
Alisha Drabek, Alutiiq Museum and Archaeological Repository
Stewart McDonald, KIBSD
Alan Fugleberg, University of Alaska Kodiak College
S
Kodiak Island Borough Popular Annual Financial Report
Kodiak Island Borough Boards and Commissions... (cont'd)
Non -Voting Ex-Officios
Bud Cassidy, Borough Manager
Aimee Kniasiowski, City Manager
Kodiak Fisheries Advisory Committee Liaison
Matt Moir
Kodiak Fisheries Advisory Committee
Jeffrey Stephen
Chris Holland
Alexus Kwachka
Steve Branson
Julie Bonney
Theresa Peterson
Oliver Holm
Chris Fiala
Lee Robbins
Rebecca Skinner, KIS Assembly Representative
Terry Haines, City of Kodiak Representative
Kodiak Fisheries Development Association Board of Directors
Mike Woodruff, term ends 2016
Jeff Stephan, term ends 2017
Stosh Anderson, term ends 2016
Linda Freed, term ends 2017
Albert Tyler Schmeil, term ends 2017
Tuck Bonney, term ends 2015
Jerry Bongen, term ends 2015
Kodiak Fisheries Work Group
Larry LeDoux
Chris Lynch
Carol Austerman
Bud Cassidy
Pat Branson
Terry Haines
John Whiddon
Aimee Kniaziowski
Fisheries Consultant
Heather McCarty
31
Kodiak Island Borough Popular Annual Financial Report
Kodiak Island Borough Boards and Commissions... (cont'd)
Kodiak Workforce Regional Advisory Council
Carol Austennan, KIB Assembly Member
Aimee Kniaziowski, City of Kodiak Manager
Lorraine Stewart, LAA Kodiak College
Rick Kniaziowski, KIBSD Board Member
Brian Himelbloom, UAF Kodiak Seafood and Marine Science Center
Jacqueline Madsen, Koniag, Inc.
Trevor Brown, Kodiak Chamber of Commerce
Alma Canete-Hall, Department of Labor Kodiak Job Center
Dan C. Jones, LCDR, USCG
Robert Banks, Business Management and IT (Family Chiropractic Center)
Brenda Zawacki, Human Resource Services (PKIMC)
Jared Griffin, Arts and Communication (Kodiak College)
Alisha Drabek, Citizen At Large
Ex -Officio Staff
KIBSD Superintendent, Stewart McDonald
Mission Lake Tide Gate
Al Burch, term ends 2015
Marian Johnson, term ends 2016
Monashka Bay Road Service Area Board
Andrew Dano, term ends 2017
Thomas Lance, term ends 2016
Steve Steffensen, term ends 2015
Randy Spivey, term ends 2016
Louise Stutes, term ends 2015
Parks and Recreation Committee
Helm Johnson, term ends 2015
Patrick Saltonstall, term ends 2015
Sharon Wolkoff, term ends 2015
Non -Voting Ex-Offcios
Aaron Griffin, KIB Assembly Representative
Corey Gronn, City Parks & Recreation Representative
Ron Bryant, KIBSD Representative
Alan Schmitt, Planning and Zoning Commission Representative
Personnel Advisory Board
Veralynn'Lynn' Bash, term ends 2016
Lindsey Howell, term ends 2017
Tom Lacey, term ends 2016
Curt Law, term ends 2015
Brenda Zawacki, term ends 2017
32
Kodiak Island Borough Popular Annual Financial Report
Kodiak Island Borough Boards and Commissions... (cont'd)
Planning and Zoning Commission
Scott Arndt, term ends 2015
Kathy Drabek, term ends 2015
Patricia Olsen, term ends 2016
Maria Painter, term ends 2015
Jennifer Richcreek, term ends 2017
Alan Schmitt, term ends 2017
Jay Baldwin, term ends 2016
Service Area No. 1 Board
Scott Arndt, term ends 2017
Paul Hansen, term ends 2015
Natasha Hayden, term ends 2016
Curtis Howell, term ends 2015
Bill Mann, term ends 2017
Mike Sirofchuk, term ends 2017
Dennis Symmons, term ends 2016
Solid Waste Advisory Board
Steven Neff, term ends 2016
Nick Szabo, term ends 2015
Scott Arndt, Construction Business Representative, term ends 2015
Non -Voting Ex-Officios
Dan Rohrer, KIB Assembly Representative
Joe Lipka, KIB Staff Representative
Robert Gray, USCG Representative
Mark Kozak, City of Kodiak Representative
Womens Bay Service Area Board
David Conrad, term ends 2015
Billy Ecret, term ends 2015
Greg Egle, term ends 2016
David Heuman, term ends 2017
Jessica Horn, term ends 2016
John Isadore, term ends 2017
George Lee, term ends 2017
Non -Voting Ex -Officio
Womens Bay Fire Chief, Dale Rice
33
Kodiak Island Borough Popular Annual Financial Report
Statistical Information...
KODIAK ISLAND BOROUGH
Property Value, Comtsoctimi, and Bari, Deposes
Inst Ten Fiscal Years
Fiscal
year
Construction
Commercial Residential
No. of No. of
permits Was ernsits Value
Deposits in
local honks
Property
Commercial
Value
Residential
2005
47
2,097,983
158
10,59,!84
133,3],000
210,328,700
482,7A4,145
2006
30
1,555,718
192
10372.416
141,434,000
213,258,488
497,589,811
2007
42
3,1]],292
148
8,]801900
19,915,000
227,514,405
507,013524
2008
53
25,269361
129
7,875,188
139,416,000
275,369,008
5422]2,300
2009
50
Uwi,B8]
147
7,84$428
175,141,000
312,122,205
595,391,145
2010
52
4,756,124
I%
11,689,178
192,00,000
327,248,533
66163,592
2011
96
24,165,884
158
6,666,400
194,289,000
317,950,418
721,273,415
2012
48
5,693295
119
4,477,641
227,392,000
345,59,161
738,505,519
2013
59
85,969,566
160
5,649,717
M0,391,000
364353,810
767,122,801
2014
44
33,062,171
111
3$89,833
252,999,000
386,4W,100
788,418,800
KODIAK ISLAND BOROUGH
Ratios of Net Bonded Debt
Last Ten Fiscal Years
34
Net
Total Taxable
Net
Debt Per
Fiscal
Assessed
Bonded
Per
Assessed
Year
Population
Value
Debt
Capita
Value
2005
13,693
(b)
783,907,451
33,080,509
2,416
4.22%
2006
13,457
(c)
783,907,451
31264,429
2,323
3.990/6
2007
13,664
(a)
805,681,814
29,163,349
2,134
3.620/6
2008
13,954
(a)
835,525,537
34,957,269
2,505
4.18%
2009
13,860
(a)
870,472,985
32,534,424
2,347
3.740%
2010
13,592
(a)
913,014,985
29,838,432
2,195
3.27°/0
2011
13,870
(a)
988,879,125
35,124,211
2,532
3.55%
2012
14,041
(a)
1,039,223,833
33,510,913
2,387
3.220%
2013
13,824
(a)
1,085,968,280
55,236,114
3,996
5.090/.
2014
13,797
(a)
1,131,476,611
76,227,556
5,525
6.740/.
34
Kodiak Island Borough Popular Annual Financial Report
www.kodiakak.us
The Kodiak Island Borough maintains a website for convenient public access to
local government.
The homepage provides navigational links to information often requested by the
public as well as News and Announcements and a Calendar of current events.
The site also provides a means for public engagement through the Questions &
Comments option.
Links and interior pages include information on a variety of topics, such as:
Borough Mayor and Assembly Members
Boards, Committees, and Commissions
Borough Operations
Fee Schedule
Elections
Job Openings
Tax Filing Forms
Historical Records
Planning and Zoning
Landfill Operations
Requests for Bids & Proposals
Road and Fire Services
The Kodiak Fisheries Research Center Facility
Projects such as the Kodiak High School Addition & Renovation
A Geographic Information System (in Map Services)
To access this information and much more, please visit our website at
www.kodiakak.us
35
Kodiak Island Borough
9 0 Finance Department
710 Mill Bay Road
Kodiak, AK 99615
CURRENT OCCUPANT
«ADDRESS 1 v
«CITY». «STATE» aZIP»
PRESORTED STD
U.S. POSTAGE PAID
KODIAK, AK
PERMIT NO. 36