FY2011 Popular Annual Financial Reportndiak
Island
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Kodiak Island Borough Popular Annual Financial Report
Award for
Outstanding
Achievement in
Popular Annual
Financial Reporting
PRESENTED TO
Kodiak Island Borough
Alaska
for the Fiscal Year Ended
June 30, 2010
OE OFF/�
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Executive Director
Kodiak Island Borough Popular Annual Financial Report
Table of Contents...
GFOAAward....................................................................................2
Mayorand Assembly.......................................................................3
Financial Information................................................................ 5-15
Construction Projects.............................................................16-17
BoroughClerk................................................................................18
AssessedValues...........................................................................19
PropertyTaxes...............................................................................20
Severance Taxes...........................................................................21
Education .................................................... 99
Childcare
Road Service Maintenance and Repair.......................................23
HealthCare.....................................................................................24
Community Development.............................................................25
Fire Protection and Emergency Services....................................26
Emergency Preparedness............................................................27
Geographic Information Systems................................................28
Statistical Information...................................................................29
Finance Department......................................................................30
AfterYear End................................................................................30
Mayor and Assembly (as of June 30, 2011)
Mayor Term
Mr. Jerome Selby 2013
Assembly Members
Ms. Carol Austermon
2013
Mr. Tuck Bonney
2014
Mr. lerrol Friend
2012
Mr. David Kaplan
2014
Ms. Chris Lynch
2012
Mr. Mel Stephens
2014
Ms. Louise Stutes
2013
2 3
Kodiak Island Borough Popular Annual Financial Report
Profile of the Kodiak Island Borough...
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.
About two-thirds of the Borough lies
in the Kodiak archipelago with the
remaining third on the Alaska
Peninsula, across the Shelikof Strait
from Kodiak Island. The Shelikof Strait
is only 20 miles wide in places. The
Borough encompasses 7,130 square
miles, making it slightly smaller than
the State of Massachusetts, and
serves a population of 13,592.
The main industries of the Borough
are commercial fishing, tourism,
government, aerospace, and
community support services.
The seafood industry is by far the
largest industry in the Kodiak Island
Borough. Kodiak is home to the
largest port in the state, housing over
700 commercial vessels and
consistently ranking among the top
ten ports in the United States in terms
of amount and value of product
delivered. In 2010 Kodiak ranked
third largest in seafood value.
www.oceaneconomics.org
Tourism continues to grow in Kodiak
with an increasing number of visitors
each year. A number of cruise ships
have visited Kodiak in recent years as
cruise ship companies expand their
tours of Alaska's coastal communities.
The Kodiak Launch Complex includes
a launch control center, payload pro-
cessing facility, spacecraft assembly
building, and launch pad. It is de-
signed to handle small- to -medium
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
nearly 1,400 people and providing
vital services to the marine industries
that are an integral part of Kodiak,
as well as making a significant
contribution to the Kodiak
community.
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 government governs
the Borough. The Mayor is elected at
large while the Borough Assembly
appoints the Manager. The Assembly
is composed of seven members, all
elected at large.
The Borough provides a full range of
services, including fire protection,
first -response emergency medical
services, road and other
infrastructure construction and
maintenance, community and
economic development, health and
sanitation, culture and recreation,
and solid waste disposal. The Borough
is also financially accountable for a
legally separate school district, which
is reported separately within the
Borough's financial statements.
Additional information on this legally
separate entity can be found in the
basic financial statements.
Kodiak Island Borough Popular Annual Financial Report
Financial Information...
Financially, FY2011 was a good year for the Kodiak Island Borough. The Bor-
ough's net assets increased by $2,694,882. This increase was across all Bor-
ough funds, many of which have restricted fund balances. At June 30, 2011
the assets of the Kodiak Island Borough exceeded its liabilities by
$165,192,321. Of this amount $116,959,518 is invested in capital assets. Of
the remaining assets $218,030, is restricted and $4,479,081 is unrestricted.
Estimated Debt Service
4,000,000 -
3,500,000 --_- --
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
201220142( 24 2026 2028 2030 2032 2034
In FY2010 the voter's approved a $76,310,000 bond issue. During FY2011
the Borough sold the first $8,000,000 of these bonds. The proceeds from this
bond issue are to be used to renovate and remodel existing education facili-
ties and add some new facilities in the Borough. When all of the bonds are
sold we anticipate annual payments of $1,745,000 on these bonds net of
state reimbursement of 70%. This equates to approximately 1.70 mills.
(One mill equals a tax payment of $200 on a $200,000 house).
The Kodiak Island Borough has two types of funds, governmental funds and
proprietary funds. The difference between governmental and proprietary
funds is the type of accounting. Governmental funds use the modified accru-
al basis while proprietary funds use the accrual basis of accounting. In lay-
man's terms, the biggest difference is how the purchase of capital assets is
handled. Governmental funds record the purchase as an expense while pro-
prietary funds record depreciation as the expense. Businesses use the accru-
al method of accounting.
Kodiak Island Borough Popular Annual Financial Report
Governmental Funds
Governmental funds include the General Fund, Special Revenue Funds, Debt
Service Funds, and Capital Project Funds.
Governmental Funds had total assets of $164,989,223. The largest compo-
nents of this total were $56,894,725 in cash and investments, $1,767,457 in
account receivables and $105,968,795 in capital assets.
The largest liability was outstanding bonds. At June 30, 2011 there was
$35,179,420 in outstanding general obligation bonds.
The total fund balance of all governmental funds increased by $4,370,149.
Most of this increase was due to a decrease in capital outlay of $5,478,863 in
the School Bond Capital Projects Fund as work was completed on several pro-
jects funded by the sale of bonds in previous years. This increase in fund bal-
ance would have been higher if not for a reduction from state revenues of
$3,580,547, mostly related to capital projects.
Proprietary (Enterprise) Funds
Proprietary funds include Solid Waste, Hospital, Kodiak Fisheries Research
Center (KFRC) and 911. At the end of FY2011, the proprietary funds had
total assets of $50,763,465. This includes 11,497,584 in cash and
investments. Capital assets (land, buildings and equipment) make up
$37,905,921 (net of depreciation) of total assets.
Revenues vs Expenditures
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Solid Waste Hospital KFRC 911
■Revenues ■Expenditures
Kodiak Island Borough Popular Annual Financial Report
At June 30, 2011 the Solid Waste fund had an increase in net fixed assets of
$277,068, the Hospital had decrease of $225,612, K.F.R.C. had an increase
of $199,021, and 911 broke even. The loss in the Hospital Fund was due to
depreciation expense. On a cash flow basis, the Solid Waste, Hospital,
K.F.R.C. and 911 Funds are all on solid footing.
Other items of interest
One position, Administrative Assistant, in the Managers office, was deleted
in the FY2011 budget. At June 30, 2011 there were four vacant positions in
the Borough. Since June 30, 2011 twelve positions have become vacant.
Some, but not all, of these positions have been filled as of January 31, 2012.
The Borough has finished the first year of a multiyear $322,372 Borough
code revision project. This project will develop substantial revisions to KIBC
Title 16 (Subdivision), Title 17 (Zoning) and Title 18 (Borough Real Property).
This project, undertaken by the community development department, is of
significant interest to all residents of the Kodiak Island Borough. This pro-
ject will provide new regulatory tools with which to implement recently
updated comprehensive plans. In addition, this project will also eliminate
out-of-date codes and inconsistencies that have built up over several dec-
ades of incremental code amendments in these three titles.
Interest rates have remained very low. On June 30, 2007 the 90 -day US
Treasury Bill earned 4.28%; on June 30, 2011 it had fallen to .09 percent.
The Borough had $814,399 in interest earning in FY2011 compared to
$1,417,268 in interest earnings in FY2010 and $2,356,588 in FY2009. At this
time we do not anticipate an increase in interest rates for at least a couple
of years.
This report has been prepared to provide the reader with a general over-
view of the financial condition of the Kodiak Island Borough at June 30,
2011. This information has been derived from our CAFR (Comprehensive
Annual Financial Report). This presentation is consistent with GAAP.
The CAFR is available at the Finance Department or online at
www.kodiakak.us/. If you have any questions about the contents of this
report, please contact the Finance Department at (907) 486-9323.
Rick L. Gifford
Borough Manager
�M
Karleton G. Short
Finance Director
Kodiak Island Borough Popular Annual Financial Report
Balance Sheet
Governmental Funds
June 30, 2011
(With summarized financial information for Ju ne 30, 2030)
Assets
Assets:
Cash and investments
Receivables:
State of Alaska
Federal Government
Property taxes, net of
allowance of $15,828
Severance taxes
Land sales contracts
Accounts and other
receivables, net
Due from other funds
Prepaid items
Notes receivable, due after one year
Land sales contracts, due after one year
Advances to other funds
Total
liabilities and Fund Balances
Liabilities:
Accounts payable
Retalnages payable
Accrued compensation
and related liabilities
Customer deposits
Due to component unit
Due to other funds
Unearned revenues
Total liabilities
Fund balances:
Nonspendable
Committed
Unassigned
Total fund balances
Total
Kodiak Island Borough Popular Annual Financial Report
Revenue Statement
Governmental Funds
June 30, 2011
(modified accrual basis of accounting)
2011
2010
2011
2010
Revenues
$ 56,894,725
$ 49,222,436
Taxes $
11,909,806 $
10,993,175
Intergovernmental
1,027,084
4,677,896 _
State sources
7,029,684
10,610,231
251,230
379,530
Federal sources
2,149,205
2,338,468
Severance taxes
1,649,275
1,336,075
136,115
207,544
Licenses, permits, fees, and other local revenues
719,818
766,193
453,028
355,360
Investment earnings
706,677
1,225,938
12,671
11,077
Other revenues
817,043
545,415
Total revenues
24,981,508
27,815,495
80,521
96,827
Expenditures
1,950,188
3,331,972
7,680
15,703
General government
4,818,287
4,600,601
Fire services
537,623
502,491
21,704
34,342
Emergency preparedness
11,705
8,011
5,097,806
5,726,303
Community and economic development
1,224,814
1,034,686
$ -6-5737775-7-
$
Health and sanitation department
392,011
371,321
Education, culture and recreation
85,690
192,182
Service district maintenance
593,388
543,897
1,723,821
1,382,775
Primary and secondary education
10,127,350
9,980,350
-
250,045
Capital outlay
Schools
1,881,069
7,359,932
220,229
226,560
General
4,839,652
4,319,438
Debt service
4,084,024
4,042,478
150
-
Total expenditures
3,919,549
4,956,848
1,359,801
2,822,843
Excess of revenues over (under) expenditures
(3,614,105)
(5,139,892)
273,663
354,529
7,497,213
9,993,600
Net proceeds from sales of bonds
8,049,233
0
Land sale proceeds
15,021
138,867
28,505
50,045
Transfers in/out
3,511,195
3,511,195
Transfers out
(3,591,195)
(3,591,195)
57,633,409
52,453,871
Total other financing sources(uses)
7,984,254
58,867
773,625
1,561,474
58,435,539
54,065,390
Net change in fund balances
4,370,149
(5,081,025)
$ 65,932,752
$ 64,058,990
Fund Balance (deficit) at beginning of year
54,065,390
59,146,415
Fund Balance at end of year $
58,435,539 $
54,065,390
8 9
Kodiak Island Borough Popular Annual Financial Report
Balance Sheets
Enterprise Funds
June 30, 2011
10
Kodiak Island Borough Popular Annual Financial Report
Municipal
Kodiak
Changes in Fund Equity
Solid Waste
Fisheries
Collection and
Hospital
Research
30, 2011
Assets
Disposal
Facilities
Center
E-911
Cancer assets:
Other
Solid Waste
Equity in central treasury
$ 6,364,799
1,494,282
3,592,896
45,607
Customer receivables
232,129
-
686
4,355
Accounts receivable - State of Alaska
845,783
-
-
-
Due from other funds
-
2,580
-
-
Totalcorrertassets
7,442,711
1,496,862
3593,582
49,962
Inventories
-
277,007
-
-
Capdal assets:
53,041
Lease income
-
720,000
Non -depreciable
3,177,300
6,017,637
-
720,000
Depreciable, net
3,027,368
14,337,056
11,346,560
Total capital assets
6,204,668
20,354,693
11,346,560
5,000
Total noncurrent assets
6,204,668
20,631,70D
11,346,560
Total
$ 13,647,379
22,128,562
14,940,142
49,962
Liabilities and Fund Equities
Commend services
111,446
-
Current liabilities:
-
Maintenance and repairs
21,743
-
Accounts payable
$ 121,197
108,000
46,177
49,962
Deferred revenue
-
Depreciation
280516
868,210
Accrued compensation and
-
Generalandadministration
245,468
-
related liabilities
64,488
-
26,799
-
Other accrued liabilities
482,559
Telephone services
-
-
Current portion of advances
49,962
`
235,339
-
from other funds
-
73,455
440,000
-
Due to other funds
675
-
78,837
-
Totalcurrervliabilities
668,919
181,455
591,813
49,%2
Noncurrent liabilities:
-
Nonoperatmgrevenues (expenses):
Notes payable
2,735,778
Contributxm to Providence Hospital
-
(108,000)
Advances from other funds
-
1,032,806
4,065,000
-
Accord for landfill closure
-
Investment income
57,721
15,503
and postcbsure
-
State ofAKon-behalf payment
14,704
costs
5,132,343
Income (loss) before transfers
263.568
(292,112)
Total noncurrent liabilities
7,868,121
1,032,606
4,065,00D
66,501)
Total liabilities
8537,040
1,214,261
4,656,813
49,962
Fund equities:
_
Net change in fund equity
277,068
(225,612)
Invested in capital assets,
-
Fwd equity at begmnmg of year
L833,271
21,139,913
net of related debt
3,468,890
20,354,693
11,346,560
-
Unrestrcted
1,641,449
559,608
(1,063,231)
Total fond equities
5,110339
20,914,301
10,283,329
Total
$ 13,647,379
22,128562
14,940,142
49,962
10
Kodiak Island Borough Popular Annual Financial Report
Changes in Fund Equity
Enterprise Funds
Year ended Jane
30, 2011
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonmajor
Collection and
Hospital
Research
Enterprise
Disposal
Facilities
Center
Fund
Operating revenues:
Solid waste collection
$ 8,414
-
-
-
Sohd waste disposal
2,374,861
Charges for services/customer charges
-
-
-
53,041
Lease income
-
720,000
2,012,864
Total operating revenues
2,383275
720,000
2,012,864
53,041
Operating expenses:
Personnel services
703,876
5,000
341,216
3,000
Solid waste collection
-
Refuse disposal
29,119
-
-
Commend services
111,446
-
-
-
Maintenance and repairs
21,743
-
4
-
Landfill closure and postclosure costs
374,716
-
-
-
Depreciation
280516
868,210
631,927
-
Generalandadministration
245,468
-
477,805
-
Miscellaneous
-
-
73,950
79
Telephone services
-
-
-
49,962
Recycling services
235,339
-
_
-
Coanbudons
5,688
_
Total operating expenses
2,007,911
873,240
1524,902
53,041
Operating income (loss)
375,364
(153,740)
487,962
-
Nonoperatmgrevenues (expenses):
Contributxm to Providence Hospital
-
(108,000)
-
-
Interest expense
(184221)
(46,375)
(322,525)
-
Investment income
57,721
15,503
27,701
-
State ofAKon-behalf payment
14,704
5,883
Income (loss) before transfers
263.568
(292,112)
199,021
-
Transfers in
13,500
66,501)
Net other financing sources (uses)
13,5M
66,500
_
Net change in fund equity
277,068
(225,612)
199,021
-
Fwd equity at begmnmg of year
L833,271
21,139,913
1Q084,308
Fond equity at end of year
$ 5,I1039
20,914,301
10283,329
11
Kodiak Island Borough Popular Annual Financial Report
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 think
of General Fund activities.
Most of the Borough's employees are in General Fund departments.
General 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 that your children attend.
On the balance sheet you will notice a significant drop in cash and invest-
ments. The Borough operates a central treasury for all of the Borough funds
and the school district. Most of this can be attributed to a reduction of over
$1,000,000 in the school districts equity in the central treasury.
General fund expenditures and transfers exceeded revenues by $166,204.
We had a budgeted a use of fund balance of $1,177,083. There were several
reasons that we did not use that much fund balance.
Revenues came in
$196,611 over
budget. $91,557
of this increase was
in property taxes
and the State paid
an extra $96,222 of
our retirement costs. Interest earnings were $523,299 less than in FY2008.
This was due to declining interest rates. We do not anticipate interest earn-
ings going up in the next couple of years.
There was a significant reduction in delinquent property taxes compared to
FY2010.
Expenditures came in $771,507 under budget. A significant portion of this
savings was due to vacant positions. The Managers Office and the Manage-
ment information Systems Department both had vacant positions for most
or all of FY2011. The building Inspectors department was $45,248 under
budget because of less construction in the Borough. We had also budgeted
$50,000 for contracted services in the Emergency Preparedness Depart-
ment which was not spent.
Kodiak Island Borough Popular Annual Financial Report
Balance Sheet
General Fund
Assets
Assets:
Cash and investments
Receivables:
State of Alaska
Federal government
Property taxes, net of
allowance of $15,828
Severance taxes
Accounts and other
receivables, net
Prepaid items
Due from other foods
Total
Liabilities and Fund Balances
Liabilities:
Accounts payable
Accrued compensation
and related liabilities
Due to component unit
Due to other funds
Deferred revenue
Total liabilities
Food balances:
Nonspendable
Unassigned
Total food balances
Total
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
June 30, 2011 June 30, 2010
$ 5,313,288 $ 6,780,243
77,290 75,843
- 215,034
126,338 195,048
453,028 355,360
2,782 4,519
6,801 15,703
738,277 509,107
$ 6,717,804 $ 8,150,857
492,109 402,741
220,229
226,560
3,919,549
4,956,848
2,582
123,777
182,032
4,758,246
5,768,181
6,801
15,703
1,952,757
2,366,973
1,959,558
2,382,676
$ 6,717,804 $
8,150,857
Fund Balance Last Ten Years
o°•, ooti o°� 3'° ooy d'o o°� o°e cPe o'°
12
13
Kodiak Island Borough Popular Annual Financial Report
Revenues:
Property lazes:
Real
Personal
Boat
Motor vehicle
Penalty and interest
Total property tams
Intergivemmental:
State sources:
State Revenue Sharing
Raw fish tax
Fish revita0zation
Commercial Passangr Vessel Tax
Electric Co-op tax
On behalf PERS payment
Total state sources
Federal sources:
Payments in lieu of taxes
Federal grants
Total federal sources
Total intergovernmental
revenue
Severance taxes:
Fish
Mining
Logging
Total severance taxes
Licenses, permits, foss, and other local
revenues:
Building and trailer permits
Subdivision and zoning fees
Sale of copies
Miscellaneous
Total licenses, permits, fees,
and other local revenues
Investment income
Total revenues
Budgetary Comparison Schedule
General Fund
June 30,2011
Variance with 2010
Budget Actual Final Budget Actual
$ 9,169,000
9,193,188
77,502
8,420,010
1,079,000
1,078,469
(531)
1,046,934
24,000
40,747
16,747
22,548
250,000
263,466
13,466
260,739
150,000
_717
187,687
37,687
132,876
M-
-7773337- ---7dd,$7r-
96,222
--7nT,=
736,900
732,242
(4,659)
748,189
1,026,385
1,026,385
-
1,339,575
50,000
88,859
38,859
68,855
25,000
15,762
(9,238)
25,487
26,000
26,952
952
26,716
120,420
--7,4847bi
216,642
96,222
98,214
�36b,25f--
--7,TM$4T- ---7Zf77-
W-
�2'93$6T8�
-7,36fb36 ---
1,320,000 1,359,938 39,938 1,328,052
252,000 175,229 (76,771) 454,878
--7,37£,W---Tn3,T67-- -736737-7,7n-,93F-
3,556,705 3,642,009 85,304 4,089,966
1,550,000
1,583,276
33276
1,287,693
20,000
6,865
(13,135)
19,762
20,000
59,134
39,134
28,620
�9566ir
�27�
�9',Z75-
71,893
60,000
39,680 39,680
(20,320)
64,010
17,250
22,926
5,676
4,075
8,300
9,788
1,488
3,234
541,976
537,235
42,194
71,893
627,526
609,629
29,038
143,212
-
770,669
32,671
-17177=
�36b,25f--
T
�6,Z,d£,Sd�
W-
�2'93$6T8�
670,731
General Fund Revenues
-Property Tax
•Severance Tax
• Intergovernmental
Bother
Kodiak Island Borough Popular Annual Financial Report
Budgetary Comparison Schedule
General Fund
June 30,2011
ar mos vdth 2010
Budget Actual Final Budget Actual
Expenditures:
General government
General and administration
Borough assembly
Borough manager
Borough clerk
Borough attorney
Finance department
Management information systems
Assessingdepartmeat
Engjneednlyfacitities department
Total general government
Public safety - animal control
Community and economic development
Community development department
Building official
Economic development
Total community and economic
development
Emergency preparedness
Health and sanitation department
Education, culture and recreation
Parks and recreation
Kodiak College and city libraries
Primary and secondary education
Total expenditures
Excess of revenues
over expenditures
Other financing uses:
Transfers out
375,300
276,693
98,607
264,451
188,220
179,091
9,129
164,856
492,103
412,347
79,756
421,554
501,534
497,520
4,014
467,653
148,000
146,265
1,735
91,867
803,340
770,669
32,671
767,100
825,680
776,475
49,205
670,731
574,858
554,212
20,646
377,787
260,939
182,264
78,675
202,879
--T,TWM- --T,7953M-
-37d339-
--TT8,97r-
85,000 84,125 875 84,125
741,740 681,077 60,663 632,109
153,778 108,530 45,248 157,013
67,000 63,593 3,407 45,358
962,518 853,200 109,318 834,480
68,600
11,705
56,895
8,011
286,315
286,315
-
265,626
96,685
85,690
10,995
105,182
36,000
13,625
36,000
-
87,000
87,000
-
87,000
10,040,350
10,040,350
-
9,980,350
613,789 1,385,296 871,756 837,275
(1,790,872) (1,551,500) 239,372 (1,479,174)
Special projects - (256,914) (99,714)
Net change in fond balance $ (1,177,083) (166,204) 1,010,879 (641,899)
Fwd balance at beginning of year 2,382,676 3,124,289
Fund balance at end of the year $ 1,959,558 2,382,676
General Fund Expenditures
■ Total general government
■ Public safety- animal
control
■ Community and economic
development:
■ Primary and secondary
education
■ Other
14 1s
Kodiak Island Borough Popular Annual Financial Report
Construction Projects...
The voters approved a $76,000,000 bond issue for the New High School Addi-
tion and Renovation project in October 2009. Jensen Yorba Lott is the archi-
tect for the project and is currently nearing completion of the design docu-
ments. Construction on the multi -phased project is scheduled to begin in sum-
mer of 2012 and be complete in fall of 2014.
The Kodiak Landfill is expected to reach its capacity in 2014. A lateral expan-
sion of the existing landfill is under construction and is scheduled for comple-
tion in the fall of 2013. CH2MHill is providing design services. Anderson Con-
struction is completing initial clearing, grubbing and site preparation. The
next phase of construction will be bid soon and awarded for construction this
summer. This overall project consists of two cells and is expected to add up
to 40 years of additional life to the landfill. Project costs for the initial cell and
water treatment facility are estimated at $15 million and will add an estimat-
ed 20 years of capacity.
Kodiak Island Borough Popular Annual Financial Report
Architects Alaska is providing preliminary design services for a proposed
Long Term Care Center on the hill behind the existing hospital site. The fa-
cility is expected to feature 24 beds in a quasi -residential setting to replace
the aging institutional style care center in the old hospital wing. The new
facility is scheduled for completion in December of 2013. Estimated project
costs are currently being evaluated but are expected to be in the range of
$15 to $20 million.
Recently completed projects:
• The Borough Building Roof and Insulation Replacement
• Main Elementary Roof Replacement
• KHS Old Pool Reclamation Project
• East Elementary Emergency Generator and Boiler Replacement
• ADF&G Building Design was completed by ECI / Hyer and has been
turned over to the State. Construction is currently underway.
KODIAK LANDFILL
LATERAL EXPANSION
16 17
Kodiak Island Borough Popular Annual Financial Report
Borough Clerk...
The Municipal Clerk's Office is responsible for several aspects of Municipal
Government. The Clerk is appointed by the Assembly and serves at its pleas-
ure. The following are the duties of the Clerk per KIBC 2.50 and AS 29.20.380:
A. Give notice of the time and place of meetings;
B. Attend regular and special meetings of the assembly and record and main-
tain the minutes of these meetings;
C. Arrange publication of notices and all other items in accordance with this
code and state statues;
D. Ensure proper management of municipal records as provided in Chapter
2.40 KIBC;
E. Attest deeds, the mayor's signature and the manager's signature on all con-
tracts to which the borough is a party, and other documents as needed. For
purposes of this section, "contract" shall mean any contract, agreement,
memorandum of understanding, or letter of intent which sets out the rights,
duties and obligations of the parties thereto;
F. Administer borough elections and have full responsibility for all phases of
borough elections up to and including preparation of the final results to be
submitted to the as-
sembly for election cer-
tification; and
G. Perform other duties
as specified in other
sections of this code
and AS title 29 or as
prescribed by the as-
sembly.
In FY2011, the Borough Assembly held 51 meetings
which included regular meetings, special meetings,
work sessions, and joint work sessions. The following
were adopted and/or processed:
• 17 ordinances
• 30 resolutions
• 36 contracts
• 134 pages of minutes
Kodiak Island Borough Popular Annual Financial Report
Assessed Values...
The assessed value of the Borough has been steadily increasing over the last
ten years. In fact, it has increased by 23%.
Assessed Values
last ten years
1,000,000,000 —
800,000,000
600,000,000
400,000,000
200,000,000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
■ Real Property Assessed Value ■ Personal Property Assessed Value
In 2011 the Assessing Department completed the re -assessment of all
residential property on the Kodiak Road System and also completed all
commercial property with the exception of the industrial waterfront. The
True Automation Software, known as PACS, which was purchased in 2009
and installed for the 2010 assessment year, has had a huge impact on the
department's ability to track, classify and re -appraise all properties within
the borough in a timely manner. The result has been to bring considera-
bly more equity to the assessment process. That is, all taxpayers are
taxed on a standard that more closely resembles the State Statute for
assessments at 100% of market value. There is still a need to fine tune the
assessment process, but with the work of the last two years, the parity of
assessments has been vastly improved.
Starting in 2010 the Assessing Department began a program to inspect all
remote properties as required by State Statutes. In spring 2010 the north
end of Kodiak Island, Raspberry Island and Whale Island were inspected.
In spring 2011 Uyak Bay, Spiridon Bay, Zachar Bay, Uganik Bay and
Viekoda Bay were inspected. Planned for spring 2012 is the east side of
the island from Uyak Bay to Sitkalidak Island. By 2013 all remote proper-
ties should be inspected.
is 19
Kodiak Island Borough Popular Annual Financial Report
Property Taxes...
Property tax is the largest source of revenue for the Kodiak Island Borough. In
FY2012 the Borough General Fund realized revenues of $10,763,557 from
property. In FY2011 property taxes were 65% of all General Fund revenue
collected.
Property taxes are calculated by multiplying the assessed value of a parcel by
the mill rate. A mill is''/,o of 1 percent (or .001).
The mill rate of the Kodiak Island Borough remained level at 10.5 mills since
FY2007 when it was reduced by''/: mill. The mill rate would have had to have
been almost one mill higher to have balanced the budget.
Kodiak Island Borough Popular Annual Financial Report
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: fish, which is seafood har-
vested and delivered to processors within the Kodiak Island Borough; mining,
which may include gold and other ore (but is primarily gravel); and timber,
which includes all logging operations within the Borough. Because the value
of these resources depends on the market for these goods, prices tend to fluc-
tuate and consequently, the taxes collected also vary from season to season.
Fishing accounted for 96% of
the Borough's severance tax-
es. It was 22% higher than in
FY2010.
Logging is increasing in Kodiak
again. There has been a great
deal of new logging on the
road system. Severance tax
on timber was twice as high as
in FY2030.
20 21
wssessea
Taxpayer
Value
Brechan Enterprises Inc $
16,309,900
Ocean Beauty Seafoods Inc
15,808,800
It is interesting to note
Westward Seafoods Inc
13,005,300
that the ten largest tax -
International Seafoods of AK
12,360,600
payers paid 11% of the
Wal-Mart Real Est Bus Trust
11,206,400
total property tax levy.
Alaska Communications Systems
10,671,800
Three of the top four
Alaska Pacific Seafoods
9,389,200
companies are seafood
Trident Seafoods Corp
8,789,400
Safeway/MBPA
7,789,300
processing facilities.
Horizon Lines of Alaska LLC
6,637,000
Kodiak Island Borough Popular Annual Financial Report
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: fish, which is seafood har-
vested and delivered to processors within the Kodiak Island Borough; mining,
which may include gold and other ore (but is primarily gravel); and timber,
which includes all logging operations within the Borough. Because the value
of these resources depends on the market for these goods, prices tend to fluc-
tuate and consequently, the taxes collected also vary from season to season.
Fishing accounted for 96% of
the Borough's severance tax-
es. It was 22% higher than in
FY2010.
Logging is increasing in Kodiak
again. There has been a great
deal of new logging on the
road system. Severance tax
on timber was twice as high as
in FY2030.
20 21
Kodiak Island Borough Popular Annual Financial Report
Education...
Education is one of the mandated powers of the Borough. The Borough has
given the School Board the authority and responsibility to operate the School
District.
Education accounted for 59% of the General Fund FY2011 expenditures and
transfers. The Borough spent and transferred $11,436,501 from the General
Fund, Building and Grounds Fund, and the Debt Service Fund supporting the
School District in FY2011.
The majority of all General Fund revenues fund the School District. More
funds were spent on education than the Borough collected in property taxes.
The number of
students has been
steadily decreasing
since FY2002. This
has been mainly
due to the chang-
ing demographics
of Kodiak.
The cost of education has been fairly stable for the last three years.
Kodiak Island Borough Popular Annual Financial Report
Childcare...
The Kodiak Island Borough administers a state financial assistance program
which subsidizes the cost of child care for eligible low to moderate income
families while par-
ents work and/or
attend school. The
current funding for
the program is un-
der the State of
Alaska, Department
of Health and Social
Services, Division of
Public Assistance.
The program has
been a part of this
division since 2005.
There are 43 approved providers in Kodiak.
Road Service Maintenance and Repair...
Women's Bay Road Service Area is continuing on a repair program focused on
gravel road improvement and maintaining the existing asphalt surfaces.
The Woodland Acres Paving was completed at a cost of $2,655,719. Part of
Selief Lane was repaved as part of this project.
Most of the damage done by the 2010 rainstorm was completed in FY2011.
Most of these repairs were funded by FEMA Grants.
Miles of FY2011 Cost Per
Road Expenditures Mile
W o me ns Ba y Se rvi ce Area 12 175,548 14,629
Service Area No. 1
Monashka Bay Road Service Area
10 355,710 35,571
2 53,889 26,945
22 23
Kodiak Island Borough Popular Annual Financial Report
Health care...
One of the Kodiak Island Borough's powers is health care. To this end, the Kodiak
Island Borough has constructed and helped maintain the hospital and health care
facilities through the years. Providence Health & Services operates the hospital and
mental health center and leases these facilities from the Borough.
In 2011 Kodiak's hospital, Providence Kodiak Island Medical Center (PKIMC), received
renewed accreditation forthe laboratory from The Joint Commission. PKIMC moved
Diabetes Services and Home Health to an offsite location. This new space allows for
expanded programs and includes an office area for Kodiak Hospice. Equipment up-
grades in 2011 included a portable ultrasound device to provide improved pain man-
agement pre- and post-surgery and the purchase of a nerve conduction diagnostics
tool, which allows on -island testing for conditions such as carpel tunnel syndrome.
PKIMC provided equipment to improve the hospital training classroom at Kodiak
College.
PKIMC features 25 acute-care beds, including 4 birthing suites and 2 intensive care
beds. The hospital is staffed by a mix of primary care physicians, surgeons and spe-
cialists who provide family practice, internal medicine, obstetrics, radiology, psychia-
try, general and orthopedic surgery, in addition to a number of specialty clinics. The
hospital offers a significant range of inpatient and outpatient services including
emergency department, surgery, maternity, general medicine, physical therapy,
diagnostics, imaging services, pharmacy, respiratory therapy, home health care and
diabetes education.
Since the implementation of eICU technology in 2010, PKIMC has used it to monitor
and treat 76 patients. Because of PKIMC's participation in the eICU program, 17
patients were able to remain on -island for treatment.
In 2011, PKIMC performed a wide variety of health care procedures. Kodiak families
welcomed 163 babies who were born at the hospital. There were 4,178 emergency
room visits and 1,014 surgeries. The Specialty Clinic had 3,532 patient visits and
procedures. Diagnostics included 42,976 in-patient lab and 67,652 out-patient lab
procedures. Radiology completed 6,989 procedures, with 2,286 CT scans, and 824
Mills. Women's health procedures included 1,896 mammograms. There were
11,679 physical therapy procedures and 7,016 occupational therapy procedures.
Home health provided 1,077 visits to patients in their homes.
An on-site extended care facility, the Care Center, provides 19 long-term care beds.
In 2011, the Care Center passed its annual state licensure survey, receiving even
higher marks than in previous years, including no deficiencies for nursing. The Care
Center also received a 5 -star rating from Medicare, the highest rating in their system.
The Care Center team continues to provide a resident -centered, home -like environ-
ment for our elders.
The mental health center, Providence Kodiak Island Counseling Center, offers coun-
seling for all age groups, family and couples' therapy, mental health clinicians in the
schools, case management for chronically mentally ill, medication management and
outpatient chemical dependency treatment.
Kodiak Island Borough Popular Annual Financial Report
Community Development...
The Community Development Department (CDD) is the Planning and Zoning Agency of
the Borough. Our main role is responding to public inquiries about zoning regulations,
the subdivision of land as well as issuing zoning compliance permits for private and
public construction. CDD staff supports the Planning and Zoning Commission and
Parks and Recreation Committee and currently is working with a citizens committee on
updating the Borough Zoning, Subdivision and Real Property code. This effort involves
coordinating the public involvement process for cases or hearings before these bodies.
CDD staff provides administrative support to the LEPC (Local Emergency Planning Com-
mittee). Planning staff are involved in various planning efforts in the community that
lead to land use policies or emergency management policies adopted by the Borough
Assembly. Department staff serves as part of the General Staff under ICS (Incident
Command System) that will coordinate responses to natural and man-made disasters.
Department employees include the department director, two associate planners, a
code enforcement officer and the department secretary.
CDD is where the Code Compliance Officer position is managed. Though the main
function of this position is to have a field presence to enforce various regulations of
the Borough, his primary role is to educate and enforce the Borough's zoning code, but
while in the field, this position enforces many of the other regulations found in the
code (trespass, solid waste, tax foreclosure, distance campaign signs can be located
from voting polling place, building permits etc.).
Meetings and projects completed in FY 2011 included:
12 Planning and Zoning Commission Work Sessions,
11 Regular meetings +2 Consultant selection Meetings
13 Parks and Recreation Committee meetings
4 LEPC Meetings
4 Presentations to the Rural/Regional Forum
Case load for applications for Commission review included:
12 Variances
6 Conditional Uses
9 Rezones
15 Subdivisions
5 Other (Screening Reviews, Zoning Map, CIP)
149 Zoning Compliance Permits issued
Projected projects that are on going and are expected to be completed in FY 2012
include: updated Hazard Mitigation Plans (identify vulnerable community buildings
and infrastructure); Kodiak Road System Trails Master Plan; and Point of Dispensing
Plan (Inoculation of large amounts of the population due to pandemic).
24 25
Kodiak Island Borough Popular Annual Financial Report
Fire Protection and Emergency Services...
The Kodiak Island Borough has three fire protection service areas and two fire sta-
tions on the road system. They are Fire Protection Area No. 1, Women's Bay Service
Area, and the Airport Fire Protection Service Area.
The Bayside Fire Station is located in Fire Protection Area No.1 and provides fire and
emergency medical services to the residents and visitors in the Monashka Bay area.
The Bayside Fire Station has an ISO Class 4 rating.
The Women's Bay Fire Station, located in the Women's Bay Service Area, provides
fire and emergency medical services to residents and visitors of the Women's Bay
area as well as the Airport Fire Protection Area. The Fire Station is staffed with one
volunteer fire chief and 15 volunteer firefighters; four pieces of fire apparatus; re-
sponded to 26 calls for assistance and completed over 1,500 man hours of training in
2010; and an ISO Class 9 rating.
The Bayside Fire Station is staffed with one paid full time fire chief and 65 volunteers,
this is broken down into 35 firefighters and emergency medical responders, 15
Search and Rescue volunteers, 10, amat
teers. The Bayside Fire Station has
seven pieces of fire apparatus and also
houses two Regional Hazardous Mate-
rials Team emergency decontamina-
tion trailers, one emergency hospital
surge/shelter trailer, and one Salva-
tion Army Disaster Services response
trailer. The Bayside Fire Station re-
sponded to 178 calls for assistance
and completed over 4,000 man hours
of training in 2011.
Volunteers from the Bayside Fire Sta- .
tion installed over 900 smoke alarms and carbon monoxide alarms in homes through-
out the community in 2011. Bayside volunteers also spent over 350 man hours in fire
prevention classes and activities in the community and area schools. As part of our
prevention program Bayside also became a certified Safe Kids Child Safety Seat In-
spection Station and have completed over 50 child safety seat inspections in 2011.
Bayside volunteers distributed over 300 flashing LED safety lights to children at the
North Star and Kodiak Christian Schools.
The Bayside Community Training Center (CTC) is part of the Bayside Fire Station and
provides fire and emergency medical training to the local emergency responders.
Bayside CTC is also an authorized Training Center for the American Safety and Health
Institute and conducts several Basic First Aid and CPR classes and other community
based emergency training classes. Together with the training sites at PKIMC and
KANA, Bayside CTC trains over 500 people a year in Basic First Aid, CPR, and other
courses.
Kodiak Island Borough Popular Annual Financial Report
Emergency Preparedness...
Kodiak Island is located on the ring of fire with a string of volcanoes on the Alaska Pen-
insula just west of the island and a subduction zone (major earthquake generation
zone) running offshore on the island's east side. We truly live in a dynamic environ-
ment prone to a number of potential natural and man-made disasters.
Past disasters that have shaped the island include: 1912 Mount Katmai ash fall that
blanketed the island with over 5 feet of ash in places, 1915 influenza that killed a num-
ber of Kodiak inhabitants, the 1964 Great Alaska Earthquake and Tidal Wave that de-
stroyed a number of villages and communities around the island including the down-
town area of the City of Kodiak, the 1972 Pillar Mountain rock slide that stopped the
construction of the St. Herman Boat Harbor for decades and the 1989 Exxon Valdez Oil
spill that impacted the fishing economy of the community and covered many shores
on the island with thick heavy oil.
The City of Kodiak, Kodiak Island Borough, and the US Coast Guard work together in a
coordinated fashion to prepare, respond, and recover from these disasters.
The 1964 Great Alas-
ka Earthquake and
Tsunami destroyed
much of Kodiak.
Be Prepared!
The Kodiak Island Borough, City of Kodiak, and Alaska Division of Homeland Security/
Emergency Management have published the Kodiak Area Emergency Preparedness
Guide that describes the various hazards that beset the island, discusses the warning
system that is in place and informs residents how to be proactive in preventing loss of
life and property. This document explains how to prepare for such events, what items
to have stored in place in your home, and who to contact. Take some time to look this
document over. Ask questions, and be prepared before the next event happens. Build a
survival kit for your family complete with water, food, first aid etc. You could be relying
on your wits for a number of days before help comes. This emergency preparedness
guide can be acquired from the Community Development Department. It is free. Take
what you need, but need what you take. Call 1-907-486-9363.
26 27
Kodiak Island Borough Popular Annual Financial Report
Geographic Information Systems (GIS)...
The Kodiak Island Borough continued to partner with multiple agencies in the
Kodiak Archipelago and beyond to bring improved GIS data and imagery to the
residents of the Kodiak Island Borough. FY2011 marked the launch of our new
GIS website, currently in beta, that features the ESRI ArcGIS Explorer Online
tool. This interface provides a rich user experience and enables viewing and
interacting with GIS data on multiple platforms, including the iOS, Android and
Windows Mobile platforms.
The Borough again played a key role in assisting the organization of the Kodiak
GIS User Group's GIS Day 2010 event in December 2010. This event brought
to the island a number of vendors and presentations on how GIS can be used
to support the local community. Some of the presentations included Accu -
point, ESRI, Imersive 31), State of Alaska and the Kodiak Island Borough.
The Borough's GIS started development of map book series for the Kodiak
Urban Area. The project is expected to be completed in FY2012 and includes
the inhabited area in the City of Kodiak and immediate surrounding area. The
target for this project is mainly for emergency services. However, once com-
plete, this product will fill other uses for the community.
2008 Akhiok Community Map created by State of Alaska, Department o/ Economic and
Community Development, George Plumbley
Kodiak Island Borough Popular Annual Financial Report
Statistical Information...
Fiscal
Year
Population
Deposits in
Local Banks
Personal
Income
Per Capita
Income
School
Enrollment
Unemployment
Rate
2002
13,565
123,221,000
392,277,000
28,783
2,821
8.8
2003
13,643
120,352,000
399,836,000
30,056
2,750
9.6
2004
13,817
130,325,000
418,937,000
31,791
2,677
8.7
2005
13,573
133,370,000
443,300,000
33,969
2,678
8.3
2006
13,693
141,434,000
469,512,000
35,860
2,718
7.4
2007
13,457
140,915,000
506,398,000
38,733
2,635
6.1
2008
13,568
139,416,000
548,099,000
40,396
2,671
6.6
2009
13,954
175,141,000
577,818,419
41,409
2,598
7.3
2010
13,860
192,000,000
n/a
n/a
2,567
6.7
2011
13,592
194,289,000
n/a
n/a
2,543
8.6
Ratios of Outstanding Debt by Type
Fiscal
year
General
Obligation
Bonds
Notes
Payable
Total.
Primary
Government
Percentof
Personal
Income
Per
Capita
2002
16,615,000
1,911,221
18,526,221
4.86%
1,366
2003
15,620,000
1,241,254
16,861,254
4.28%
1,236
2004
14,385,000
1,262,123
15,647,123
3.83%
1,132
2005
32,965,000
1,270,210
34,235,210
7.96%
2,522
2006
31,155,000
1,582,188
32,737,188
6.98%
2,391
2007
29,060,000
1,636,924
30,696,924
5.31%
2,281
2008
34,860,000
1,768,660
36,628,660
6.68%
2,681
2009
32,245,000
1,864,503
34,109,503
5.90%
2,444
2010
29,565,000
1,989,995
31,554,995
n/a
2,277
2011
34,820,000
2,735,778
37,555,778
n/a
2,763
28 29
Kodiak Island Borough Popular Annual Financial Report
Finance Department...
In FY2011 the Borough received a Certificate of Achievement for our Compre-
hensive Annual Financial Report, an award for Outstanding Performance in
Popular Annual Financial Reporting and a Distinguished Budgetary Presenta-
tion Award for our budget.
The Borough is the only government in the State of Alaska that has won all
three awards.
In FY2011 the Finance Department collected 99.7 % of the current years tax
roll. In FY2011 the Borough levied $11,536,758 in property taxes.
The Borough had interest earnings of $814,339. This was $602,929 less than
in FY2009. This reflects the current market on investments.
The Borough sold $8,000,000 in general obligation (GO) bonds to finance the
Kodiak High School replacement, renewal, and additions project. The Borough
is planning on issuing another $68,310,000 in GO bonds to finance these high
school projects.
After Year End...
Subsequent to year end of June 30, 2011 several important events took place.
There have been record snowfalls and cold weather in the winter of
2011/2012. This is leading towards record setting snow removal costs.
At the current time the school district is anticipating a budget shortfall of over
$3,000,000 for FY2013. If outside sources of funds are not found the school
district will have to make significant cuts to their budget or
the Borough Assembly will have to raise the property tax
rate by over 3 mills.
On December 16, 2011 the Borough in conjunction with the
City of Kodiak entered into a contract with Alaska Resource
Consultancy to monitor, analyze and report on fisheries
issues. Denby Lloyd is the Principal of this corporation.
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 for current,`
events.
Visitors can find infor-
mation about public
meetings that includes
calendars, agendas, pack-
ets and minutes. Visitors
can also research minutes
from historical meetings
such as the first Assembly
meeting on October 12,
1963, Borough Code, and
other permanent records,
such as contracts, ordi-
nances, resolutions, and
newsletters.
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Our site includes information on a variety of topics, such as:
Boards, Committees and Commissions
Elections and lob openings
Planning and Zoning
Landfill Operations,
Road and Fire Services
The Kodiak Fisheries Research Center Facility projects such as the school
building upgrades Property and Severance Taxes
To access this information and much more, please visit our website at
www.kodiakak.us
30 31