FY2010 Popular Annual Financial ReportKodiak Island Borough
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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
4 EOFF,
aria
June 30, 2009
Presiden�
Executive Director
Kodiak Island Borough Popular Annual Financial Report
Table of Contents...
Term
GFOAAward....................................................................................2
2010
Mayorand Assembly.......................................................................3
Financial Information................................................................
5.15
Construction Projects.............................................................
16-18
Assessed Values...........................................................................19
2011
PropertyTaxes...............................................................................20
2011
SeveranceTaxes...........................................................................21
2011
Education.......................................................................................22
2012
Childcare........................................................................................23
1010
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
General Administration.................................................................30
AfterYear End................................................................................30
OurWebsite...................................................................................31
Cover photo by Jennifer Fogle
Mayor and Assembly (as of June 30, 2010)
Mayor
Term
Jerome Selby
2010
Assembly Members
Ms. Pat Branson
2010
Mr. lerrol Friend
2012
Ms. Judy Fulp
2011
Ms. Sue Jeffrey
2011
Mr. Dave Kaplan
2011
Ms. Chris Lynch
2012
Ms. Louise Stutes
1010
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 13,860.
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 2007 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
processing facility, spacecraft
assembly building, and launch pad. It
is designed 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, FY2010 was a good year for the Kodiak Island Borough. The
Borough's net assets increased by $7,626,228. At June 30, 2010 the assets
of the Kodiak Island Borough exceeded its liabilities by $162,497,439. Of
this amount $114,102,904 is invested in capital assets. Of the remaining
assets $43,915,454 is reserved and $4,479,081 is available for use.
By far the single most significant financial event in FY2010 was the voter's
approval of a $76,310,000 bond issue. The proceeds from this bond issue
are to be used renovate and remodel education facilities in the Borough.
When all of the bonds are sold we anticipate annual payments of
$2,620,000 after state reimbursement of 60 to 70%. This equates to
approximately 2.6 mills. (One mill equals a tax payment of $200 on a
$200,000 house)
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
Estimated Debt Service
O N R tD W O N a tD W O N V
0 0 0 0 0 0 0 0 0 0 0 0
N
N N N N N N N N N N N N N
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
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. Governmental funds record the purchase as an expense while
proprietary funds record depreciation as the expense. Businesses use the
proprietary form of accounting.
4 5
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 $157,446,289. The largest
component of this total was $49,222,436 in cash and investments,
$5,157,426 in receivables from the state and federal government and
$93,135,695 in capital assets.
The largest liability was outstanding bonds. At June 30, 2010 there were
$29,565,000 in outstanding general obligation bonds.
The total fund balance of all governmental funds declined by $5,081,025.
Most of this decline came from the School Bond Capital Projects Fund as work
progressed on several projects funded by the sale of bonds in previous years.
Proprietary (Enterprise) Funds
Proprietary funds include Solid Waste, Hospital, Kodiak Fisheries Research
Center (KFRC) and 911. At the end of the year, the proprietary funds had
total assets of $50,240,228. This includes 10,525,760 in cash and
investments. Capital assets (land, buildings and equipment) make up
$38,645,854 (net of depreciation) of total assets.
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Revenues vs Expenditures
Solid Waste Hospital KFRC
0 Revenues 0 Expenditures
Kodiak Island Borough Popular Annual Financial Report
The Solid Waste fund closed the year with $42,126 in net operating income,
the Hospital had a $157,903 operating loss, K.F.R.C. had operating income
of $25,892, and 911 broke even. The losses in the Hospital and K.F.R.C.
Funds were due to depreciation expense. On a cash flow basis, the Solid
Waste, K.F.R.C. and 911 Funds are all on solid footing.
Other items of interest
The Borough converted its accounting system from an AS/400 system to
a .NET platform. The new software is much more powerful and easier to use.
The Borough added two positions in FY2010, code enforcement officer and
GIS analyst. Both were filled in FY2011.
We started a multi year $250,000 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 project 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 decades of incremental code
amendments in these three titles.
Interest rates have fallen significantly since June 30, 2007 (75 basis points on
January 22, 2008 alone). On June 30, 2007 the 90 -day US Treasury Bill
earned 4.28%; by June 30, 2010 it had fallen to .17 percent. The Borough
earned $1,417,268 in interest earnings in FY2010 compared to $2,356,588 in
FY2009. The Borough did earn 2.4% on its investments in FY2010. This was
12 times more than the 90 -day Treasury Bill.
This report has been prepared to provide the reader with a general overview
of the financial condition of the Kodiak Island Borough at June 30, 2010. 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
911 report, please contact the Finance Department at (907) 486-9323.
T -1�'l. 4;�
Rick L. Gifford Karleton G. Short
Borough Manager Finance Director
Kodiak Island Borough Popular Annual Financial Report
Kodiak Island Borough Popular Annual Financial Report
KODIAK ISLAND BOROUGH
Revenue Statement
Governmental Funds
Balance Sheet
June 30, 2010
Governmental Funds
(modified accrual basis of accounting)
June 30, 2010
(With summarized financial information for lune 30, 2009)
2010
2009
Revenues
Assets
2010
2009
Taxes $
10,993,175 $
10,565,685
Assets:
Cash and investments
$ 49,222,436
$ 60,424,187
Intergovernmental
Receivables:
State sources
10,594,318
5,710,190
State of Alaska
4,677,896
510,588
Federal sources
2,320,838
3,378,934
Federal Government
379,530
62,034
- Land sale proceeds
138,867
30,561
Property taxes, net of
Severance taxes
1,336,075
1,311,188
allowance of 515,828
207,544
140,730
Licenses, permits, fees, and other local revenues
741,193
742,527
Severance taxes
355,360
280,334
Other revenues
603,958
418,741
Land sales contracts
11,077
41,598
Investment earnings
1,225,938
2,088,915
Accounts and other
Total revenues
27,954,362
24,246,741
receivables, net
96,827
39,151
Due from other funds
3,331,972
1,584,884
Expenditures
Prepaid items
15,703
Notes receivable, due after one year
General government
4,600,601
4,067,024
Land sales contracts, due after one year
34,342
172,449
Fire services
502,491
460,826
Advances to other funds
5,726,303
6,206,906
Emergency preparedness
8,011
12,488
Total
$ 64,058,990
$ 69,462,861
Community and economic development
1,034,686
908,501
Liabilities and Fund Balances
Health and sanitation department
371,321
333,747
Liabilities:
Accounts payable
1,382,775
1,946,855
Education, culture and recreation
192,182
248,571
Reminages payable
250,045
530,153
Service district maintenance
543,897
398,219
Accrued compensation
Primary and secondary education
9,980,350
9,956,618
and related liabilities
226,560
167,764
Capital outlay
Customer deposits
-
700
Schools
7,359,932
14,857,064
Due to component unit
4,956,848
5,766,156
General
4,319,438
1,277,106
Due to other funds
2,822,843
1,154,316
Debt service
4,042,478
4,142,099
Unearned revenues
354,529
750,502
Total expenditures
32,955,387
36,662,263
Total liabilities
Fund balances:
9,993,600
10,316,446
Excess of revenues over (under) expenditures
(5,001,025)
(12,415,522)
Reserved:
-
Long-term interfund
Net proceeds from sales of bonds
0
(125,467)
borrowings
5,726,303
6,206,906
Transfers in/out
3,511,195
6,144,301
Unreserved:
Transfers out
(3,591,195)
(6,909,791)
General fund:
2,382,676
3,124,289
Total other financing sources(uses)
(80,000)
(890,957)
Special revenue funds:
37,530,982
37,292,771
Debt service funds:
22,255
5,938
Net change in fund balances
(5,081,025)
(13,306,479)
Capital projects funds:
8,403,174
12,516,511
Total fund balances
54,065,390
59,146,415
Fund Balance (deficit) at beginning of year
59,146,415
72,452,894
Total
$ 64,058,990
$ 69,462,861
Fund Balance at end of year $
54,065,390 $
59,146,415
8 9
Kodiak Island Borough Popular Annual Financial Report
Kodiak Island Borough PopularAnnua/ Financial Report
10 11
Balance Sheets
Changes in Fund
Equity
Enterprise Funds
Enterprise Funds
June 30, 2010
Year ended lune 30, 2010
Municipal
Kodiak
Other
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonmajor
Solid Waste
Fisheries
Nonmajor
Collection and
Hospital
Research
Enterprise
Collection and
Hospital
Research
Enterprise
Assets
Disposal
Facilities
Center
Food
Disposal
Facilities
Center
Food
Curren[ assets:
Operating revenues:
Solid waste collection
$ 3,226,606
-
-
Equity in central treasury
$
6,284,817
807,424
3,418,819
14,700
Customer receivables
569,875
121,200
532
-
Solid waste disposal
1,098,666
-.
Charges for services/customer charges
-
-
-
42,474
Accounts receivable - State of Alaska
100,000
-
-
-
Total current assets
6,954,692
928,624
3,419,351
14,700
Lease income
-
720,000
1,602,685
-
Total operating revenues
4,325,274
720,000
1,602,685
42,474
Inventories
-
277,007
-
-
Operating expenses:
Capital assets:
Personnel services
795,050
5,000
338,361
3,000
Non -depreciable
2,417,311
5,987,885
-
-
Solid waste collection
1,640,179
Depreciable, net
3,056,875
15,205,296
11,978,487
-
Refuse disposal
358,408
Total capital assets
5,474,186
21,193,181
11,978,487
Contracted services
275,876
-
-
-
Total noncurrent assets
5,474,186
21,470,188
11,978,487
Maintenance and repairs
90,793
Total
$
12,428,878
22,398,812
15,397,838
14,700
Landfill closure and postclosure costs
367,263
-
-
-
Liabilities and Fund Equities
Depreciation
270,488
872,858
630,395
-
Current liabilities:
General and administration
204,366
45
489,931
Accounts payable
$
211,802
81,435
27,746
14,700
Miscellaneous
118,106
395
Deferred revenue
-
-
240,543
-
Telephone services
39,079
Accrued compensation and
Recycling services
267,518
related liabilities
64,488
-
26,799
-
Contributions
13,207
Other accrued liabilities
532,169
Total operating expenses
4,283,148
877,903
1,576,793
42,474
Current portion of advances
Operating income loss
p 8 (loss)
42,126
(157,903)
25,892
-
from other funds
-
70,603
410,000
-
Nonoperating revenues (expenses):
Due to other funds
39,526
600
103,442
-
Coutributiou to Providence Hospital
-
(108,000)
-
-
Total curzent liabilities
847,985
152,638
808,530
14,700
CHC reimbursements
-
1,147,762
-
Noncurrent liabilities:
Interest expense
-
(49,117)
(350,787)
-
Notes payable
1,989,995
-
Investment income
124,478
16,702
56,887
-
Advances fromother limits
-
1,106,261
4,505,000
-
State of AK on -behalf payment
25,095
228
8,090
-
Accrual for landfill closure
her. (loss) before transfers
191,699
849,672
(259,918)
-
and postclosure
costs
4,757,627
Transfers in
13,500
66,500
Total noncurrent liabilities
6,747,622
1,106,261
4,505,000
Total liabilities
7,595,607
1,258,899
5,313,530
14,700
Net other financing sources (uses)
13,500
66,500
Fund equities:
Net change in fund equity
205,199
916,172
(259,918)
Invested in capital assets,
net of related debt
3,484,191
21,193,181
11,978,487
-
Fund equity at beginning of year
4,628,072
20,223,741
10,344,226
-
Unrestricted
1,349,080
(53,268)
(1,894,179)
-
Fund equity at end of year
$ 4,833,271
21,139,913
tO,084,308
Total fund equities
4,833,271
21,139,913
10,084,308
Total
$
12,428,878
22,398,812
15,397,838
14,700
10 11
Kodiak Island Borough PopularAnnua/ 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.
General fund expenditures and transfers exceed revenues by $741,613.
There is enough in fund balance to cover these losses in FY2011 but
revenues will have to be increased (taxes) for FY2012.
Revenues
■Property Tax ■Severance Tax
IntergowmmentaW other
Lower interest rates
means the Borough will
have to rely more on
property taxes and other
forms of local revenue.
The Borough has
discussed levying a
sales tax to spread the
costs of school district.
debt service across more
revenue sources.
12
The fund balance of the
General fund went down
$741,613 in FY2010. We
have budgeted to use
another $1,423,158 of fund
balance in FY2011. This
would leave the General
Fund with a fund balance of
only $959,518.
Expenditures
CI
• General gDvemmeia • tommunitydevebinent
• Emergencypreparednes• Health and sanitation
•cultureandrecmatiu, vEducation
Kodiak Island Borough PopularAnnua/ Financial Report
Balance Sheet
General Fund
June 30, 2010
(With summarized financial information for June 30, 2009)
Assets
2010
2009
Assets:
Cash and investments
$ 6,780,243 $
8,406,109
- Receivables:
State of Alaska
75,843
80,121
Federal government
215,034
—
Property taxes, net of
allowance of $15,828
195,048
127,858
Severance taxes
355,360
280,334
Accounts and other
receivables, net
4,519
6,069
Prepaid items
15,703
—
Due from other funds
509,107
600,150
Total
$ 8,150,857 $
9,500,941
Liabilities and Fund Balances
Liabilities:
Accounts payable
402,741
319,265
Accrued compensation
and related liabilities
226,560
167,764
Due to component unit
4,956,848
5,766,156
Unearned revenues
182,032
123,467
Total liabilities
5,768,181
6,376,652
Fund balances:
Designated for subsequent
year expenditures
1,423,158
1,261,581
Undesignated
959,518
1,862,708
Total fund balances
2,382,676
3,124,289
Total
S 8,150,857 $
9,500,941
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
Fund Balance Last Ten Years
001 00'1. 00M 00h 00h p00 p0n p00 poo'p10
1\1�'L 1\1�'L 11\3, 1\1�ti 1\1�ti 1\1�b 1\1�ti 1\1�n 1\1�ti 1\1�ti
13
Kodiak Island Borough Popular Annual Financial Report
Budgetary Comparison Schedule
General Fund
Year ended June 30, 2010
(With financial information for the year ended June 30, 2009)
Revenues:
Property taxes:
Real
Personal
Boat
Motor vehicle
Penalty and interest
Total property taxes
Intergovernmental:
State spumes:
State Revenue Sharing
Raw fish tax
Fish revitalization
Commercial Passenger 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, fees, and other local
revenues:
Building and nailer permits
Subdivision and zoning fees
Sale of copies
Miscellaneous
Total licenses, permits, fees,
and other local revenues
Investment income
Total revenues
June 30, 2010
Variance with
Final Budget -
Positive 2009
Budget Actual (Negative) Actual
8 8,342,508
8,420,010
77,502
8,029,453
1,055,150
1,046,934
(8,216)
1,092,850
23,000
22,548
(452)
24,017
250,000
260,739
10,739
274,462
175,000
132,876
(42,124)
132,471
9,845,65
9,883,107
37,449
,553,253
747,706
748,189
483
777,571
1,339,575
1,339,575
-
1,288,926
17,970
68,855
50,885
55,382
25,500
25,487
(13)
24,778
26,000
26,716
716
27,524
219,000
98,214
(120,786)
247,007
277-577-51
07,036
(68,715)
2,421,188
1,200,000
1,328,052
128,052
1,775,015
252,238
454,878
202,640
265,421
1,452,238
1,782,930
330,692
2,040,4
3,827,989
4,089,966
261,977
4,461,624
1,400,000
1,287,693
(112,307)
1,289,695
12,600
19,762
7,162
14,001
20,000
28,620
8,620
7,492
1,4T2-6-00
1,336,075
(96,525)
1,311,188
65,000
64,010
(990)
52,002
4,500
4,075
(425)
6,075
8,000
3,234
(4,766)
7,340
51,750
71,893
42,194
131,944
129,250
143,212
36,013
197,361
155,000
178,567
23,567
292,825
15, 0,497
�5, ,`63027
26
I5, 1 ,251
(continued)
Kodiak Island Borough Popular Annual Financial Report
Budgetary Comparison Schedule
General Fond
Year ended June 30, 2010
( With financial information for the year ended June 30, 2009)
Expenditures:
General government:
General and administration
Borough assembly
Borough manager
Borough clerk
Borough attorney
Finance department
Management information systems
Assessing department
Engineen rg/facilities department
Total general government
June 3% 2010
ariance with
Final Budget -
Positive 2009
Budget Actual (Negative) Actual
298,800
184,460
387,587
468,174
128,000
774,940
748,430
484,788
204,668
264,451
164,856
421,554
467,653
91,867
767,100
670,731
377,787
202,879
-T,4Z8;879-
34,349
19,604
(33,967)
521
36,133
7,840
77,699
107,001
1,789
--7SU969-
246,765
161,128
407,768
464,767
66,585
692,596
487,354
486,325
181,046
Public satety- animal control
84,125
84,125
-
84,125
Community and economic development:
Community development department
856,792
632,109
224,683
691,604
Building official
153,778
157,013
(3,235)
90,016
Economic development
75,000
45,358
29,642
43,500
Total community and economic
development
1,085,570
834,480
251,090
825,120
Emergency preparedness
8,800
8,011
789
12,488
Health and sanitation department
268,000
265,626
2,374
232,699
Education, culture and recreation
111,034
105,182
5,852
161,571
Parks and recreation
36,000
-
36,000
-
Kodiak College and city libraries
93,000
87,000
6,000
87,000
Primary and secondary education
9,980,350
9,980,350
9,956,618
Total expenditures
-TTT46 �
X3793,=
-553074-
-
Excess of revenues
over expenditures
43,771
837,275
(793,504)
1,262,296
Other financing uses:
Transfers out
(1,449,769)
(1,479,174)
(29,405)
(1,368,486)
Special pmjetcs
-
(99,714)
-
-
Netchangeintund balance $
(1,405,998)
(/41,613)
664,385
(106,190)
Fund balance at beginning of year
3,124,289
3,230,479
Fund balance a[ end of the year
S
Z39=76--
--TTZTZST
14 15
Kodiak Island Borough Popular Annual Financial Report
Construction Projects...
The Borough has sold $28,000,000 worth of General Obligation Bonds since 2005 to fund
safety, renovation and new construction of educational facilities. Most of the projects
funded by these bonds have been completed or are underway. Additionally, the voters
approved a $76,000,000 bond issue for the New High School Addition and Renovation
project in October 2009.
A Seismic Vulnerability Assessment of all schools was initiated in 2005. The assessment
identified several deficiencies, both structural and non-structural, in the school facilities and
recommended they be corrected within ten years. All of the recommended upgrades to the
buildings have now been completed, with the exception of the KHS gymnasium. This project
was put on hold pending the design of the new high school. All of the upgrades have been
funded in part or whole by FEMA grants totaling $2,940,156.
Old Harbor High School
Recently completed projects:
• The Kodiak Auditorium Roofing Upgrade was completed in 2010
• KHS Old Pool Roofing & Air Handling Unit Upgrade was completed in 2010
• A portion of the KHS parking lot paving was completed in 2010
• The Old Harbor Gym Addition was completed in 2010
Kodiak Island Borough Popular Annual Financial Report
The Bayside Fire Station Addition was completed and opened in July 2010
The Kodiak High School parking lot has been repaved
16 17
Kodiak Island Borough Popular Annual Financial Report
Future Projects:
Jensen Yorba Lott was selected for architectural and engineering design services. Design is
expected to take approximately a year with construction of the new facility scheduled to
begin in 2011 and be completed over a three year period.
The design of the proposed new ADF&G Facility on Near Island is complete and the
project is ready to go out for bid.
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
800,000,00
600 000 00 M M list
400 000 00 M 1
?001000100 1 ■ ■ ■ ■ ■ ■ ■ ■ ■
tioo~ tioo� tiooP tioo� tiooy boob tioo^ tioo� ��o �otio
• Real Property Assessed Value ■ Personal Property Assessed Value
The assessing department began a major upgrade in 2010 with implementation of
a new computer system that both catalogues properties and allows for mass
updates and re -appraisals. To comply with state statutes the assessing
department has set a re -appraisal schedule that physically inspects all properties
on the road system on a three-year cycle, and remote properties on a five-year
cycle. In 2009 there were neighborhoods on the road system that had an
assessed value to market value ratio as high as 95% while other neighborhoods
were as low as 60% and at best and average in the upper 70 percentile. The first
year of reassessment concentrated on the neighborhoods with the worst
assessment ratios and as a result the Borough assessment ratio is averaging
90-92%. This translates to equity in taxation where all property owners are
paying taxes based on parity.
In 2010 the Borough saw a growth in assessed values of about $80,000,000 and
2011 is expected to show a growth of $50-60,000,000. This is despite the fact
that an ordinance passed in 2010 eliminated business property tax for the first
$20,000 of personal property assessed value. As a result, approximately three
fourths of the total business property account shave been eliminated , reducing
paperwork for both business owners and the Borough Assessing Department..
18 19
Kodiak Island Borough Popular Annual Financial Report
Property Taxes...
Property tax is the largest source of revenue for the Kodiak Island Borough.
In FY2010 the Borough realized revenues of $9,883,107 from general fund
property taxes , which was 63% 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.
12.00
10.00
8.00
6.00
4.00
2.00
0.00
Mill Rate - last ten years
ti°°� ti°°p ti°°y ti°R6 ti°°^ ti°°� ti°&
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.
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
0 Fish Mining 0 Timber
Severance taxes are collected in three categories: fish, which is seafood
harvested 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 fluctuate and consequently, the taxes collected
also vary from season to season.
Fishing accounted for
98% of the Borough's
severance taxes. It
remained at virtually
the same amount as
FY2009.
Logging is increasing
in Kodiak again. There
has been a great deal
of new logging on the
road system.
20 21
Assessed
Taxpayer
Value
Ocean Beauty Seafoods Inc $
16,237,441
It is interesting to note that
Westward Seafoods, Inc
11,852,090
the ten largest taxpayers
Alaska Communications Systems
11,645,093
International Seafoods of AK
10,879,502
paid 12% of the total
Wal-Mart Real Est Bus Trust
9,987,787
property tax levy. Three of
Brechan Enterprises Inc
9,569,530
the top four companies are
Trident Seafoods Corp
9,028,842
seafood processing
Mill Bay Plaza Assoc LTD
8,648,400
facilities.
GCI
7,563,488
Koncor
6,797,500
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.
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
0 Fish Mining 0 Timber
Severance taxes are collected in three categories: fish, which is seafood
harvested 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 fluctuate and consequently, the taxes collected
also vary from season to season.
Fishing accounted for
98% of the Borough's
severance taxes. It
remained at virtually
the same amount as
FY2009.
Logging is increasing
in Kodiak again. There
has been a great deal
of new logging on the
road system.
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 accounts for 69% of the General Fund budget. The Borough spent
and transferred $11,448,010 from the General Fund, Building and Grounds
Fund, and the Debt Service Fund supporting the School District in FY2010.
By far, the majority of all General Fund revenues fund the School District.
More funds were spent on education than the Borough collected in property
taxes.
Cost per
The number of
Number of Students
students has
Womens Bay Service Area
been steadily
2,900
13,863
2,800
decreasing since
2,700
FY2002. This has
2,00
been mainly due
2,5500
to the changing
2,400
demographics of
W ai o
0 0 0 0 0 0 0 0 0 .�
0 0 0 0 0 0 0 0 0 0
N N N N N N N N N N
Kodiak.
The cost of
education has
continued to
rise.
Borough's Cost of Education
15,000,000
10,000,000
5,000,000
0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
N N N N N N N N N N
Much of this rise in cost is due to inflation but new Federal mandates such
as the "No Child Left Behind" program have cost the School District
(Borough) an immense amount of money.
For more information you can go to http://www.kodiak.kl2.ak.us
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
parents work and/or attend school. The current funding for the program is under 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.
140
120
100
80
60
40
20
0
2007 2008 2009 2010
■ Families
■ Children
Road Service Maintenance and Repair...
Womens Bay Road Service Area is continuing on a repair program focused on gravel
road improvement and maintaining the existing asphalt surfaces.
Bay View Road Service Area has added additional gravelling and compaction and
directed proper crowns be maintained for better runoff on their roads.
Monashka Bay and Womens Bay Road Service Areas qualified for FEMA Grants totaling
approximately $225,000 associated with the October 2009 FEMA Disaster Declaration.
This funding repaired and improved various road and drainage facilities.
Additional funding is pending for other identified projects in these two areas
22 23
Miles of
FY2010
Cost per
Road
Expenditures
Mile
Womens Bay Service Area
12
$ 166,361
13,863
Service Area No. 1
10
297,325
29,733
Monashka Bay Road Service Area
2
66,606
33,303
Bay View Road Service Area
1
12,541
12,541
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. Last year Thomson
Reuters 100 Top Hospitals: Health System Benchmarks named Providence Health &
Services among the top 20 percent of best -performing systems in the country. The
study analyzed 255 U.S. health systems and showed that top systems, such as Provi-
dence which serves our community, have a lower rate of mortality and complications
and higher patient safety and quality of care.
In 2010 Kodiak's hospital, Providence Kodiak Island Medical Center (PKIMC), received
renewed accreditation from the Joint Commission—an organization that certifies
hospitals for high levels of quality and patient safety. The hospital and its home health
program had outstanding results on their triennial Joint Commission survey.
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
specialists who provide family practice, internal medicine, obstetrics, radiology,
psychiatry, 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, pharmacy, respiratory therapy and home health care.
In 2010, PKIMC performed a wide variety of health care procedures. Kodiak families
welcomed 214 babies who were born at the hospital. There were 3,837 emergency
room visits and 1,025 surgeries. The Specialty Clinic had 4,182 patient visits and
procedures. Diagnostics included 42,189 in-patient lab and 81,631 out-patient lab
procedures. Radiology completed 6,350 procedures, with 2,109 CT scans, and 647
Mills. Women's health procedures included 740 mammograms.
There were 14,810 physical therapy procedures and 7,274 occupational therapy
procedures. Home health provided 1,747 visits to patients in their homes.
An on-site extended care facility, the Care Center, also provides 19 long-term care
beds. In 2010 the Care Center won awards for quality and successfully passed a state
survey. Care Center employees and leadership continued their culture change efforts
to provide a more resident -centered and home -like environment for our elders.
The mental health center, Providence Kodiak Island Counseling Center, offers
counseling 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. CDD provides staff support to the Planning and Zoning Commission and
Parks and Recreation Committee. CDD staff also provides administrative support to the
LEPC (Local Emergency Planning Committee). Planning staff serve as part of the General
Staff under the ICS (Incident Command System). Department staff includes director,
two associate planners, code enforcement officer and a department secretary.
CDD is also charged with the enforcement and administration of the Borough's zoning
code, comprehensive planning, coastal management planning, hazard mitigation
planning, energy planning, parks and recreation planning and the removal of junk
metals and vehicles and the subdivision of land.
Answering questions from the public, agencies and other departments about the use
and regulation of private and public land is a service that is provided.
Meetings and projects completed in FY 2010 included:
14 Planning and Zoning Commission Work Sessions,
12 Regular and 2 special meetings
13 Parks and Recreation Committee meetings
5 LEPC Meetings
4 Presentations to the Rural/Regional Forum
Case load for applications for Commission review included:
4 Variances
3 Conditional Uses
6 Rezones
18 Subdivisions & Other
245 Zoning Compliance Permits
CDD involvement in other projects
Updated of Titles 16 (Subdivision) and 17 (Zoning)
Preparation of a Trails Master Plan
Rural/Regional Forum (meeting with village representatives on items of interest)
Projected projects that are on-going and are expected to be completed in FY 2011
include:
Updated Hazard Mitigation Plans (all villages and the City of Kodiak)
Kodiak Road System Trails Master Plan
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 stations on
the road system. They are Fire Protection Area No. 1, Womens 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 Bayside Fire Station is staffed with one paid full time fire chief and 32 volunteer
firefighters. The Bayside Fire Station has seven pieces of fire apparatus. The Bayside Fire
Station responded to 146 calls for assistance and completed over 3,000 man hours of
training in 2009.
The Womens Bay Fire Station,located in the Womens Bay Service Area, provides fire and
emergency medical services to residents and visitors of the Womens Bay area as well as the
Airport Fire Protection Area. The Womens Bay Fire Station has an ISO Class 9 rating.
The Womens Bay Fire Station is
staffed with a volunteer fire
chief and 15 volunteer
firefighters. The Womens Bay
Fire Station has four pieces of
fire apparatus. The Womens
Bay Fire Station responded to 26
calls for assistance and
completed over 1,500 man
hours of training in 2010.
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.
The Bayside Fire Station is also home to the Kodiak Area Radio Emergency Services (KARES).
This is a volunteer organization of HAM radio operators that provides emergency
communications and logistical support for area emergency services agencies.
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 Peninsula
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 environment prone to a
number of potential natural and man made disasters.
Past disasters that have shaped the island include: 1912 Mount Katmai ash fall blanketed
the island with over 5 feet of ash in places, 1916 influenza that killed a number of Kodiak
inhabitants, the 1964 Great Alaska Earthquake and Tidal Wave that destroyed a number of
villages and communities around the island including the downtown 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.
IT IS NOT A MATTER Kodiak School
OF "IF"
In 1912 the Katmai
Volcano eruption
covered Kodiak Island
with 2 to 5 feet of ash.
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 hazards, discusses the warning system that is in place (Tsunami Sirens), and
tells how you can be proactive in preventing loss of life and property. It also explains how
your family can be prepared for such events, what to consider, 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 Borough continued to improve the amount and quality of GIS information available to the
public in FY 2010.
Through partnerships with Native Organizations, State of Alaska, US Fish & Wildlife Service and
others, the Borough was able to acquire aerial imagery at very little cost. In one project, the
Borough and others worked with the USDA-NRCS and obtained additional imagery valued at
over $180,000 at no cost. The Borough's commitment to the Kodiak GIS User Group played a
major role in the support of these acquisitions.
The Borough sponsored the Kodiak GIS User Group's GIS Day 2009 in December. This event
displayed presentations from federal and state agencies who had done GIS work in the Kodiak
area. Subsequently, data from these projects has become available to the Borough and the
public.
The Borough continues to build new partnerships with GIS users and extend its relationships
with new entities. FY2010 provided a chance to provide strategic planning for the future
development of the Borough's GIS. This planning has outlined some of the future GIS projects
that the Borough will be working on in the next few years.
Pasagshak Bay, Kodiak Island, August 9, 2007
Imagery provided by Digital Globe ImageConnect
Kodiak Island Borough Popular Annual Financial Report
Statistical Information...
Ratios of Outstanding Debt by Type
Population
Deposits in
Local Banks
Personal
Income
Per Capita
Income
School
Enrollment
Unemployment
Rate
2000
13,309
111,670,000
373,164,000
27,328
2,810
13.4
2001
13,913
117,503,000
382,227,000
27,707
2,774
10.9
2002
13,565
123,221,000
381,413,000
28,783
2,821
18.2
2003
13,643
120,352,000
393,604,000
30,056
2,750
10.3
2004
13,817
130,325,000
408,069,000
31,791
2,677
10.6
2005
13,573
133,370,000
430,051,000
33,969
2,678
9.5
2006
13,693
141,434,000
469,161,000
35,860
2,718
6.7
2007
13,457
140,915,000
492,637,000
38,733
2,635
6.2
2008
13,568
139,416,000
n/a
41,617
2,671
9.3
2009
13,954
175,141,000
n/a
n/a
2,598
8.2
2010
13,860
192,000,000
n/a
n/a
2,567
8.8
Ratios of Outstanding Debt by Type
28 29
General
Total
Percent of
Fiscal
Obligation
Notes
Primary
Personal
Per
year
Bonds
Payable
Government
Income
Capita
2000
17,025,000
2,823,480
19,848,480
5.32%
1,419
2001
17,690,000
2,531,150
20,221,150
5.29%
1,453
2002
16,615,000
1,911,221
18,526,221
4.86%
1,308
2003
15,620,000
1,241,254
16,861,254
4.28%
1,215
2004
14,385,000
1,262,123
15,647,123
3.83%
1,133
2005
32,965,000
1,270,210
34,235,210
7.96%
21542
2006
31,155,000
1,582,188
32,737,188
6.98%
2,400
2007
29,060,000
1,636,924
30,696,924
6.23%
21273
2008
34,860,000
1,768,660
36,628,660
na
2,698
2009
32,245,000
1,864,503
34,109,503
na
2,551
2010
29,565,000
1,989,995
31,554,995
na
2,277
28 29
Kodiak Island Borough Popular Annual Financial Report
General Administration...
The Borough has several administrative functions that have to take place. These
include management of the Borough, financial services, information services, clerical
support of the Assembly, etc.
In FY2010, the Borough Assembly held 18 regular meetings and 8 special meetings.
9 ordinances were passed along with 37 resolutions. Forty contracts were approved.
The Clerk's office provided administrative support to all of the Assembly meetings.
They took approximately 118 pages of minutes. They added 90 cubic feet of archival
records into our records system and destroyed 88.5 cubic feet of records.
The Finance Department collected $10,498,662 of FY2010 property taxes which was
92.8% of the tax roll. Severance taxes came in at $1,336,075 and the Borough received
$6,295,838 in grants. The Borough also earned $1,519,327 in interest on our
investments.
The Borough received a Certificate of Achievement for our Comprehensive Annual
Financial. Report, an award for Outstanding Performance in Popular Annual Financial
Reporting and a Distinguished Budgetary Presentation Award for our budget.
After Year End...
Subsequent to year end of June 30, 2010 several important events took place.
The first $8,000,000 of the 2010 $76,310,000 bond issue are scheduled to be sold
on March 1, 2011.
The Borough entered into a new contract with Alaska Waste to collect solid waste
on the road system. Within the City of Kodiak Alaska Waste gave each resident a
cart that works with their trucks for automated solid waste collection. The
residents outside of the City must still take their refuse to a dumpster. Alaska
Waste has also taken over the billing for solid waste on the road system. For
more information you can go to WWW.Alaskawaste.net.
On November 2, 2010 the voters in the State of Alaska approved a $128,500,000
bond issue which included $20,000,000 for the Alaska Department of Fish and
Game Research Facility on Near Island.
On October 4, 2010 the new enforcement officer position was filled.
Kodiak Island Borough Popular Annual Financial Report
Our Website...
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 information—
about public meetings that - ^ •- ""
includes calendars, agendas,
packets 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,
ordinances, resolutions, and newsletters.
Many documents and reports are posted on the site. Copies of the
Comprehensive Annual Financial Report, the budget, and fee schedule are
all available on the Finance Department pages. Comprehensive plans and
maps for communities and districts throughout the Borough are available
on the Community Development Department pages. Reports such as
seismic assessments on school buildings and the recent solid waste
management study can also be viewed.
Our site includes information on a variety of topics, such as:
Boards, Committees and Commissions
Elections and Job 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
In the works is an upgrade to property information which will include access
to assessed values, property taxes and an improved Geographical
Information System (GIS).
To access this information and much more, please visit our website at
www.kodiakak.us
30
31
Kodiak Island Borough PRSRTSTD
US POSTAGE
Finance Department PAID
PERMIT 957
710 Mill Bay Road
ANCHORAGE.
AK
Kodiak, AK 99615