FY2009 Popular Annual Financial ReportKodiak Island Borough
Popular Annual Financial Report
As of June 30, 2009
Award for
Outstanding
Achievement in
Popular Annual
Financial Reporting
PRESENTED TO
Kodiak Island Borough
Alaska
for the Fiscal Year Ended
June 30, 2008
(,EOFF/e,
muEs �,
cuua President
Executive Director
Kodiak Island Borough Popular Annual Financial Report
Table of Contents...
GFOAAward....................................................................................2
Term
Mayor and Assembly.......................................................................3
2010
Financial Information................................................................
5-15
Construction Projects.............................................................
16-18
AssessedValues...........................................................................19
2009
PropertyTaxes...............................................................................20
2011
SeveranceTaxes...........................................................................21
2011
Education.......................................................................................22
2011
Childcare........................................................................................23
2009
Road Service Maintenance and Repair.......................................23
2011
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
Mayor and Assembly (as of June 30, 2009)
Mayor
Term
Jerome Selby
2010
Assembly Members
- Ms. Pat Branson
2010
Mr. Jerrol Friend
2009
Ms. Judy Fulp
2011
Ms. Sue Jeffrey
2011
Mr. Dave Kaplan
2011
Ms. Chris Lynch
2009
Ms. Louise Stutes
2011
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 sec-
ond largest in the United States.
About two-thirds of the Borough lies
in the Kodiak archipelago with the
remaining third on the Alaska Penin-
sula, across the Shelikof Strait from
Kodiak Island. The Shelikof Strait is
only 20 miles wide in places. The Bor-
ough encompasses 7,130 square
miles, making it slightly smaller than
the State of Massachusetts, and
serves a population of 13,811.
The main industries of the Borough
are commercial fishing, tourism, gov-
ernment, aerospace, and community
support services.
The seafood industry is by far the
largest industry in the Kodiak Island
Borough. Kodiak is home to the larg-
est port in the state, housing over 700
commercial vessels and consistently
ranks 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 sea-
food value. www.oceaneconomics.ore
Tourism continues to grow in Kodiak
with an increasing number of visitors
each year. There have been a num-
ber of cruise ships visiting Kodiak in
recent years as cruise ship companies
have expanded their tours of Alaska's
coastal communities.
The Kodiak Launch Complex includes
a launch control center, payload proc-
essing 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 U.S.
Coast Guard base in the country, em-
ploying nearly 1,400 people and pro-
viding vital services to the marine
industries that are an integral part of
Kodiak's make-up 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 and
first -response emergency medical
services, road and other infrastruc-
ture construction and maintenance,
community and economic develop-
ment, health and sanitation, culture
and recreation, and solid waste col-
lection and disposal. The Borough is
also financially accountable for a le-
gally separate school district, which is
reported separately within the Bor-
ough's financial statements. Addi-
tional information on this legally
separate entity can be found in the
basic financial statements.
Kodiak Island Borough Popular Annual Financial Report
Financial Information...
Financially, FY2009 was a very good year for the Kodiak Island Borough.
The Borough's total net assets increased by $8,045,404. At June 30, 2009,
the assets of the Kodiak Island Borough exceeded its liabilities by
$154,871,211. Of this amount, $59,335,314 (unrestricted net assets) may
be used to meet the Borough's ongoing obligations to citizens and creditors.
The Kodiak Island Borough has two types of funds. These are 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 ac-
counting. 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. Busi-
nesses use the proprietary form of accounting.
Governmental Funds
Governmental funds include the General Fund, Special Revenue Funds,
Debt Service Funds, and Capital Project Funds.
Governmental Funds had total assets of $154,908,146. $60,424,187 was in
cash and investments, $1,348,264 in receivables, and $93,135,695 was in
capital assets. $7,791,790 was in loans to K.F.R.C. (Kodiak Fisheries Re-
search Center), the Hospital, and Trinity Acres Paving District. At year end
the total fund balance of all governmental funds was $59,146,415.
Asset Types
C�
■ Cash and investments ■ Due from other funds
Due from State of Alaska ■ Other
Kodiak Island Borough Popular Annual Financial Report
Total fund balance of all governmental funds decreased 13,306,479 in
FY2009 and increased $5,162,941 in FY2008. The total fund balances will
continue to decrease as the bond projects are completed.
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 $46,637,246. This includes $9,006,752 in cash and invest-
ments. Capital assets (land, buildings and equipment) make up $36,718,028
of total assets.
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Current Assets
Only the Solid Waste Fund and the Hospital Fund had positive unrestricted
net equity. If capital assets are included then all proprietary funds have
positive equity.
Unrestricted Net Equity
3,000,000 -"
2,000,000 -
1,000,000
Solid Hospital KFRC 911
Waste
6
Kodiak Island Borough Popular Annual Financial Report
The Solid Waste fund closed the year with a net loss of $460,897, the Hos-
pital had a loss of $516,151, K.F.R.C. had a loss of $248,507, and 911 had a
loss of $50,611. 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.
Revenuesys Expenditures
6,000,000
4,000,000
2,000,000
Solid Hospital KFRC 911
Waste
■ Revenues 0 Expenditures
Looking Ahead
The Borough has completed a Solid Waste Management Plan. One of main
features of the plan is a "pay as you throw" collection system. The Borough
is currently negotiating a collection services contract that will begin to im-
plement the plan. The contract will go into effect on July 1, 2010.
Interest rates have fallen significantly since June 30, 2007 (75 basis points
on January 22, 2008 alone). If this trend continues, the Borough will have
to look at other forms of revenue if we are to continue providing the same
level of service to our residents.
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,
2009. 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.
W �. )�4t
Rick L. Gifford Karleton G. Short
Borough Manager Finance Director 7
Kodiak Island Borough Popular Annual Financial Report
Kodiak Island Borough Popular Annual Financial Report
Balance Sheet
Governmental Funds
Changes in Fund Balances of Governmental
Funds
June 30, 2009
Last Two Fiscal Years
(With summarized financial information
for June 30, 2008)
(modified accrual basis of accounting)
Assets
2008
2009
2008
2009
Assets:
Revenues
Cash and investments $
69,743,583 $
60,424,187
Receivables:
Taxes $
10,254,477 $
10,565,685
State of Alaska
775,826
510,588
Intergovernmental
Federal Government
373,520
62,034
- State sources
4,428,472
5,710,190
Property taxes, net of
Federal sources
2,553,990
3,378,934
allowance of $15,828
112,109
140,730
Land sale proceeds
19,458
30,561
Severance taxes
352,927
280,334
Severance taxes
1,436,210
1,311,188
Land sales contracts
54,137
41,598
Licenses, permits, fees, and other local revenues
658,381
742,527
Accounts and other
Other revenues
353,850
418,741
receivables, net
41,037
39,151
Investment earnings
3,918,008
2,088,915
Due from other funds
1,103,459
1,584,884
Total revenues
23,622,846
24,246,741
Notes recievable, due after one year
Land sales contracts, due after one year
176,641
172,449
Expenditures
Advances to other funds
6,679,890
6,206,906
Total $
79,413,129 $
69,462,861
General government
3,818,544
4,067,024
Liabilities and Fund Balances
Fire services
385,529
460,826
Liabilities:
Emergency preparedness
5,713
12,488
Accounts payable
2,049,439
1,946,855
Community and economic development
923,203
908,501
Retainages payable
208,818
530,153
Health and sanitation department
387,053
333,747
Accrued compensation
Education, culture and recreation
183,747
248,571
and related liabilities
176,620
167,764
Service district maintenance
374,320
398,219
Customer deposits
800
700
Primary and secondary education
9,123,412
9,956,618
Due to component unit
3,386,090
5,766,156
Capital outlay
Due to other funds
714,349
1,154,316
Schools
7,029,628
14,857,064
Unearned revenues
424,119
750,502
General
887,189
1,277,106
Total liabilities
6,960,235
10,316,446
Debt service
3,468,617
4,142,099
Fund balances:
Total expenditures
26,586,955
36,662,263
Reserved:
Excess of revenues over (under) expenditures
(2,964,109)
(12,415,522)
Long-term interfund
borrowings
6,969,951
6,206,906
- Other Financing Sources (Uses)
Unreserved:
Net proceeds from sales of bonds
8,000,000
(125,467)
General fund:
3,230,479
3,124,289
Transfers in/out
2,966,610
6,144,301
Special revenue funds:
36,286,898
37,292,771
Transfers out
(2,839,560)
(6,909,791)
Debt service funds:
159,788
5,938
Total other financing sources(uses)
8,127,050
(890,957)
Capital projects funds:
25,805,778
12,516,511
Total fund balances
72,452,894
59,146,415
Net change in fund balances
5,162,941
(13,306,479)
Total $
79,413,129 $
69,462,861
Ford Balance (deficit) at beginning of year
67,289,953
72,452,894
Fun Balance at end of year $
72,452,894 $
59,146,415
8
M
Kodiak Island Borough Popular Annual Financial Report
Balance Sheets
Enterprise Funds
June 30, 2009
Kodiak Island Borough Popular Annual Financial Report
Changes in Fund Equity
Enterprise Funds
Year ended June 30, 2009
10 11
Municipal
Kodiak
Other
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonmajur
Solid Waste
Fisheries
Nonmajor
Collection and
Hospital
Research
Enterprise
Collection and
Hospital
Research
Enterprise
Assets
Disposal
Facilities
Center
Fund
Disposal
Facilities
Center
Fund
Current assets:
Operating revenues:
Equity in central treasury
$ 5,397,764
12,466
3,331,845
30,989
Solid waste collection
$ 2,559,903
-
-
Accrued interest receivable
8,632
Solid waste disposal
1,044,092
-
Customer receivables
259,065
117,939
66
-
Charges for services/customer charges
-
-
-
52,654
Due from other funds
Lease income
-
720,000
1,598,260
-
Accountsreceivable- State of Alaska
100,000
Other
-
-
50
-
Due from other fonds
400,000
-
-
Total operating revenues
1603,995
720,000
1,598,310
52,654
Total current assets
6,156,829
130,405
3,331911
39,621
Operating expenses:
Inventories
-
277,007
Personnel services
726,967
5,386
298,613
3,000
Capital assets:
Solid waste collection
1,534,673
-
-
-
Non -depreciable
2,275,656
5,654,637
Refuse disposal
276,878
-
-
-
Depreciable, net
3,327,363
16,078,154
12,664,033
-
Contracted services
187,969
-
-
-
Totaleapitalassets
5,603,019
21,732,791
12,664,033
-
Maintenance and repays
34,483
-
Tota1 noncurrent assets
5,603,019
22,009,798
12,664,033
Landfill closure and postclosure costs
348,634
-
-
-
Total
$ 11,759,848
22,140,203
15,995,944
39,621
Depreciation
270,153
929,555
713,144
Liabilities and Fund Equities
General and administration
227,757
842
479,706
422
Current liabilities:
Miscellaneous
91.641
-
Accounts payable
$ 344,941
271,737
28,218
39,621
Telephone services
-
39,621
Deferred revenue
-
202,747
Recycling services
233,768
-
Accrued compensation and
Contributions
10,876
-
related liabilities
50,083
-
28,003
-
Total operating expenses
3,852,158
935,783
1,583,104
43,043
Other accrued liabilities
214,560
-
-
Operating income (loss)
(248,163)
(215,783)
15206
9,611
Current portion of capital
Nonoperathrg revenues (expenses):
lease obligations
267,325
-
Contribution to Providence Hospital
-
(108,000)
-
-
Current portion of advances
CHC reimbursements
-
2,855,835
-
from other funds
-
67,861
385,000
-
Interest expense
-
(51,752)
(377,300)
-
Due to other funds
-
400,000
92,750
-
Investment income
178,651
10,413
84,871
38
Total current liabilities
876,909
739,598
736,718
39,621
Extraordinary item
336,458
-
96,230
-
Noncurrent liabilities:
Income (loss) before transfers
266,946
2,490,713
(180,993)
9,649
Notes payable
1,864,503
-
-
-
Advances from other funds
-
1,176,864
4,915,000
-
Transfers in
6,450
759,040
Net pension and OPEB obligation
-
Transfers out
Accrual for landfill closure
and pustek sure
_
Net other financing sources (uses)
6,450
759,040
costs
4,390,364
_
Net change in fund equity
273,396
3,249,753
(180993)
9,649
Total noncurrent liabilities
6254,867
1,176,864
4,915,000
-
Total liabilities
7,131,776
1,916,462
5,651,718
39,621
Fund equity at beginning of year
4,354,676
16,973988
10,525219
(9,649)
Fund equities:
Fund equity at end of year
$ 4,628,072
20,223,741
10,344,226
-
Invested in capital assets,
net of related debt
3,471,191
20,488,066
12,664,033
-
Unrestricted
1,156,881
(264,325)
(2,319,807)
(9,649)
Total food equities
4,628,072
20,223,741
10,344,226
(9,649)
-
Total
$ 11,759,848
22,140203
15,995,944
29,972
10 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. Gen-
eral Fund departments are the ones that register you to vote, appraise your
house, and collect your property tax. They also zone your property and
build the schools that your children attend.
The General Fund of the Borough finished FY2009 in a very strong financial
position. The Fund Balance decreased $106,190 to $3,124,289. This is still
21% of FY2009's expenditures.
Revenues
40
■PropertyTax ■Severance Tax
11 Intergovernmental ■other
■ Investment income
The General Administra-
tion expenditures were
$111,704 under budget,
and the Management
Information Systems
expenditures were
$94,378 under budget.
A strong fishing year and
more government grants
helped the Borough maintain
its financial strength through
FY 2009.
Property values continue to
rise in the Borough.
Expenditures
■ General government ■ Community development
■ Emergency preparedness ■ Health and sanitation
■ Cultureand recreation a Education
Kodiak Island Borough Popular Annual Financial Report
Balance Sheet
General Fund
June 30, 2009
(With summarized financial information forJune 30, 2008)
Assets
Assets:
Cash and investments
Receivables:
State of Alaska
Property taxes, net of
allowance of $15,828
Severance taxes
Accounts and other
receivables, net
Due from other funds
Total
Liabilities and FLnd Balances
Liabilities:
Accounts payable
Accrued compensation
and related liabilities
Due to component unit
Unearned revenues
Total liabilities
Fund balances:
Designated for subsequent
year expenditures
Undesignated
Total fund balances
Total
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
2009
2008
$ 8,406,409 $
6,091,074
- 80,121
84,694
127,858
100,339
280,334
352,927
6,069
2,365
600,150
509,926
$ 9,500,941 $
7,141,325
319,265
251,242
167,764
176,620
5,766,156
3,386,090
123,467
96,894
6,376,652
3,910,846
1,261,581
1,341,798
1,862,708
1,888,681
3,124,289
3,230,479
$ 9,500,941 $
7,141,325
Fund Balance Last Ten Years
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
12 13
Kodiak Island Borough Popular Annual Financial Report
246,765
50,835
212,466
Budgetary Comparison
Schedule
25,312
155,597
362,970
General Fund
(44,798)
284,585
442,744
464,767
Year ended June 30,
2009
130,000
66,585
(With financial information for the year ended June 30,
2008)
704,960
692,596
12,364
2009
601,740
487,354
114,386
467,042
449,200
Variance with
(37,125)
423,104
165,193
181,046
Final Budget -
106,920
3,340,847
3,194,334
146,513
Positive
2008
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes:
Real
$ 8,051,980
8,029,453
(22,527)
7,846,642
Personal
1,097,520
1,092,850
(4,670)
1,053,918
Boat
51,000
24,017
(26,983)
25,079
Motor vehicle
250,000
274,462
24,462
252,811
Penalty and interest
200,000
132,471
(67,529)
178,081
Total property taxes
9,650,500
9,553,253
(97,247)
9,356,531
Intergovernmental:
State sources:
State Revenue Sharing
777,477
777,571
94
591,286
Tax Payer Relief
-
-
-
411,747
Its, fish lax
1,297,000
1,288,926
(8,074)
1,059,161
Fish revitalization
50,000
55,382
5,382
-
Commercial Pasmnger Vessel Tax
-
24,778
24,778
-
Electric Co-op tax
26,000
27,524
1,524
41,811
On behalf PERSpaymenl
-
247,007
247,007
27,668
Total state sources
2,150,477
2,421,188
270,711
2,131,673
Federal sources:
Payments in lieu oftaxes
1,300,000
1,775,015
475,015
805,001
Fish end Wildlife revenue sharing
350,075
265,421
(84,654)
340,067
Total federal sources
1,650,075
2,040,436
390,361
1,145,068
Total intergovernmental
revenue
3,800,552
4,461,624
661,072
3,276,741
Severance taxes:
Fish
1,456,613
1,289,695
(166,918)
1,409,253
Mining
11,610
14,001
2,391
12,567
Logging
19,990
7,492
(12,498)
14,390
Total severance taxes
1,488,213
1,311,188
(177,025)
1,436,210
Licenses, permits, fees, and other local
revenues:
Building and trailer permits
70,000
52,002
(17,998)
46,097
Subdivision and zoning fees
4,500
6,075
1,575
4,900
Sale of copies
8,000
7,340
(660)
8,308
Miscellaneous
89,750
131,944
42,194
40,951
Total licenses, permits, fees,
and other local revenues
172,250
197,361
25,111
100,256
Investment income
300,000
292,825
(7,175)
544,926
Total revenues
15,411,515
15,816,251
404,736
14,714,664
Kodiak Island Borough Popular Annual Financial Report
Budgetary Comparison Schedule
General Fund
Year ended lane 30, 2009
(With financial information for the year ended lane 30, 2008)
Expenditures:
General government:
General and administration
Borough assembly
Borough manager
Borough clerk
Borough attorney
Finance department
Management information systems
Assessing department
Engineering[facilities 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
Kodiak College and city libraries
Primary and secondary education
Total expenditures
Excess of revenues
over expenditures
Other financing uses:
Transfers out
Net change in fund balance
Fund balance at beginning of year
Fund balance at end of the year
2009
Final Budget -
Positive 2008
Budget Actual (Negative) Actual
297,600
246,765
50,835
212,466
186,440
161,128
25,312
155,597
362,970
407,768
(44,798)
284,585
442,744
464,767
(22,023)
372,932
130,000
66,585
63,415
155,352
704,960
692,596
12,364
671,824
601,740
487,354
114,386
467,042
449,200
486,325
(37,125)
423,104
165,193
181,046
(15,853)
106,920
3,340,847
3,194,334
146,513
2,849,822
84,125 84,125 - 72,380
758,864 691,604 67,260 699,567
153,778 90,016 63,762 118,209
75,000 43,500 31,500 46,289
987,642 825,120 162,522 864,065
8,800
12,488
(3,688)
5,713
233,000
232,699
301
232,699
229,600
161,571
68,029
183,747
93,000
87,000
6,000
-
9,936,184
9,956,618
(20,434)
9,123,412
14,913,198
14,553,955
359,243
13,331,838
498,317 1,262,296 1,033,251 1,926,372
(1,368,486) (1,368,486) - (945,660)
$ (870,169) (106,190) 763,979 980,712
3,230,479 2,793,313
$ 3,124,289 3,774,025
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 ap-
proved 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 iden-
tified 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.
Ouzinkie School
Recently completed projects:
• The Kodiak Middle School Seismic upgrade was accomplished in a three year phased
project started in 2007 and completed in 2009.
• KHS Library Seismic Upgrade was completed in 2008.
• The Peterson Elementary School seismic retrofit was completed in 2008.
• The Ouzinkie Gym Addition and Seismic upgrade was completed in 2009.
• East Elementary Window Seismic and HVAC upgrade was completed in 2009.
• Non-structural upgrades including bracing and strapping of mechanical and electrical
equipment; plumbing and fire protection systems and other miscellaneous hazards
throughout the district were completed in 2009.
Kodiak Island Borough Popular Annual Financial Report
• The two main entrances into the KHS Parking Lot and an area behind the Middle School Gym
were repaved in August 2009.
• The Old Pool roofing project and replacement of the air handler was completed in October,
2009.
The Community Health Center Addition adjacent to PKIMC was completed and opened in June
2009.
The new pool was completed and opened in September 2009.
16 17
Kodiak Island Borough Popular Annual Financial Report
Future Projects:
Master planning and conceptual design for the New High School Addition and Renovation
Dr i.lt hoc hoop 1n 1n t.fi
The selection process for Architectural and Engineering Design Services is underway. De-
sign is expected to take approximately a year with construction of the new facility sched-
uled 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 in progress.
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%.
1,000,000,000
800,000,000
600,000,000
400,000,000
200,000,000
0
Assessed Values
�OOO �OOti �OO�' X003 �OOa �OOy �OOrO �OO� BOOR' TOO°
• Real Property 0 Personal Property
Most of this increase has come from changes in value of real property. In FY2001,
the total assessed value of taxable property within the Borough was
$715,749,035. By FY2010, it had risen to $870,770,562.
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0
BOO,' �OO'1' �OO� �OOa �OOy ToOO IV 1P
Property Tax Exemptions
• Senior Citizens • Disabled Veterans • Agriculture
....... _...
Property tax exemptions for agriculture have been very stable while exemptions for
senior citizens and disabled veterans are rising.
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 FY2009 the Borough realized revenues of $9,553,253 from general fund
property taxes, which was 60% 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 9.25 mills for
many years but was increased to 10.25 mills in FY2005. It was raised to 11 in
FY2006 but then decreased to 10.5 in FY2007.
Historical Mill (propertytax)
Rate
15.00
10.00��-�V�
5.00
0.00 i 1 1 , i 1 1 1 ,... i
F)
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
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
■ Fish Timber ■ Mining
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
was down from FY2008
but still remarkably
high.
Logging is decreasing in
Kodiak. Most of the
easily recoverable tim-
ber is gone and prices
in Asia have been very
bad.
20
21
Assessed Assessed
Taxpayer
Value
Ocean Beauty Seafoods Inc
$ 16,237,441
Westward Seafoods, Inc
11,852,090
It is interesting to note that
Alaska Communications Systems
11,645,093
the ten largest taxpayers
International Seafoods of AK
10,879,502
paid 12% of the total prop -
Wal -Mart Beal Est Bus Trust
9,987,787
erty tax levy. Three of the
Brechan Enterprises Inc
9,569,530
Trident Seafoods Corp
9028842
top four companies are sea -
Mi IIBay PlazaAssoc LTD
8,648,400
food processing 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
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
■ Fish Timber ■ Mining
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
was down from FY2008
but still remarkably
high.
Logging is decreasing in
Kodiak. Most of the
easily recoverable tim-
ber is gone and prices
in Asia have been very
bad.
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 68% of the General Fund budget. The Borough spent
and transferred $11,056,379 from the General Fund and Building and
Grounds Fund supporting the School District in FY2009.
By far the majority of all General Fund revenues go to fund the School District.
In fact, more funds were spent on education than the Borough collected in
property taxes.
Number of Students The number of
students has been
3,000 steadily decreasing
2,800 since FY2002. This
2,600 I' has been mainly
2,400 - due to the chang-
ing demographics
0 0 0 0 0 0 0 0 0. o
0 0 0 0 0 0 0 0 0 0 . of Kodiak.
The cost of
education has
continued to
rise.
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
Borough's Cost of Education
2000 2001 2002 2003 2004 2005 2006 2007 2009 2009
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 Assis-
tance. The program has been a part of this division since 2005. There are 35 ap-
proved providers in Kodiak.
140
120 I— - -- -
100
80
60
40
20
0
j 2006 2007 2008 2009
■ Participating famlies ■ Eligible children
Road Service Maintenance and Repair...
All four Road Service Areas have continued ongoing road maintenance - grading, snow
plowing, sanding, and in some areas, ditch cleaning and pothole repairs.
Bay View Road Service Area has added additional gravelling and compaction and di-
rected proper crowns be maintained for better runoff on their roads.
Monashka Bay Road Service Area, in addition to ongoing road maintenance activities,
has accomplished new ditching, culvert installation, new guardrail installation and
added signage noting lower speed limits and alerts for "Children Playing'.
Service Area No. 1 has continued the usual road maintenance activities along with
ditch cleaning and dust control. Womens Bay Service Area continues regular road
maintenance, grading ,and snow plowing.
Womens Bay Service Area
Service Area No. 1
Monashka Bay Road Service Area
Bay View Road Service Area
Miles of
FY2009
Cost per
Road
Expenditures
Mile
12
$162,191
13,516
10
170,946
17,095
2
53,164
26,582
1
10,970
10,970
22 23
Kodiak Island Borough Popular Annual Financial Report
Healthcare...
One of the Kodiak Island Borough's powers is health care. To this end, the Kodiak Is-
land Borough has constructed and helped to maintain the hospital and health care
facilities down through the years. The Borough leases the hospital and the mental
health center to Providence Health & Services. This organization has a multi -state
presence and is considered one of the premier health care providers in the nation.
In 2009 Providence constructed new education, office and meeting rooms at Provi-
dence Kodiak Island Medical Center, in addition to renovating the acute care nurses'
station and replacing the hospital's interior paint and flooring. PKIMC also expanded
its services last year to include a new sleep studies program, new pulmonary testing
procedures, and acquisition of an elCU—a technology that will electronically link ICU
patients and bedside physicians with critical care specialists.
Providence Kodiak Island Medical Center received state and national accolades in
2009, including Press Ganey's Best Place to Practice award for outstanding physician
partnership, the laboratory's accreditation by The Joint Commission, and the Care
Centers ranking as the number one nursing home in the state of Alaska. 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 ortho-
pedic surgery, in addition to a number of specialty clinics. PKIMC features 25 acute-
care beds, including 4 birthing suites and 2 intensive care beds. An on-site extended
care facility, the Care Center, also provides 19 long-term care beds. The hospital offers
a significant range of inpatient and outpatient services including emergency depart-
ment, surgery, maternity, general medicine, physical therapy, diagnostics, pharmacy,
respiratory therapy and home health care.
In calendar year 2009, PKIMC performed a wide variety of health care procedures. 194
people were born at the hospital. There were 4,161 emergency room visits and 955
surgeries. The lab performed 39,431 in-patient and 79,153 out-patient procedures.
Radiology completed 6,249 x-rays, 2,029 CT scans, and 651 MRI's. Women's health
procedures included 959 mammograms, and 2,097 ultrasounds.
There were 12,966 physical therapy procedures and 5,745 occupational therapy proce-
dures.
The mental health center, Providence Kodiak Island Counseling Center, offers counsel-
ing for all age groups, families 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 a director,
two associate planners 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 plan-
ning, 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 2009 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:
5 Variances
7 Conditional Uses
7 Rezones
30 Subdivisions & Other
226 Zoning Compliance Permits
CDD involvement in other projects
H1N1 (swine flu) Staff is part of the Incident Command "General Staff'
State Emergency Management preparation
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 2010 in-
clude:
Updated Hazard Mitigation Plans (all villages and the City of Kodiak)
Draft Energy Plan
Kodiak Road System Trails Master Plan
Purchase and installation of 4 warning sirens for villages and Pasagshak
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 emer-
gency 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 fire-
fighters. The Bayside Fire Station has seven pieces of fire apparatus. The Bayside Fire Sta-
tion responded to 105 calls for assistance and completed over 3,000 man hours of training
in 2009.
The Womens Bay Fire Station is located in the Womens Bay Service Area and provides fire
and emergency medical services to the 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.
Bayside Fire Station expansion
The Womens Bay Fire Station is
staffed with a volunteer fire
chief and 12 volunteer firefight-
ers. The Womens Bay Fire Sta-
tion has five pieces of fire appa-
ratus. The Womens Bay Fire
Station responded to 32 calls for
assistance and completed over
1,200 man hours of training in
2008.
The Bayside Community Training Center (CTC) is part of the Bayside Fire Station and pro-
vides fire and emergency medical training to the local emergency responders. The 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 the 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 communi-
cations and logistical support for area emergency services agencies.
26
Kodiak Island Borough Popular Annual Financial Report
Emergency Preparedness...
Kodiak 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 off-
shore 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: the 1912 Mount Katmai ash fall blan-
keted 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 are working together in
a coordinated fashion to prepare, respond, and recover from these disasters. Remember:
IT IS NOT A
MATTER OF
"IF„
IT IS A MAT-
TER OF
"WHEN".
Be prepared!
In 1912 the Katmai Volcano eruption covered Kodiak Island with 2 to 5 feet of ash
The Kodiak Island Borough, the City of Kodiak,and the Alaska Division of Homeland Secu-
rity/Emergency Management have published the Kodiak Area Emergency Preparedness
Guide that identifies hazards, discusses the warning system that is in place (Tsunami Si-
rens), and discusses how you can be proactive in preventing loss of life and property. It also
discusses 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 be-
fore 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 office of the Community Develop-
ment Department. It is free. Take what you need, but need what you take. Call 1-907-486-
9363.
27
Kodiak Island Borough Popular Annual Financial Report
Geographic Information Systems (GIS)...
Geographic Information Systems or GIS is the science and application of information that is re-
lated to spatial placement on the earth. This includes many data types. Most commonly that
data is portrayed as positions on the ground, routes between two places and geographic areas.
The Borough has been maintaining their GIS for several years. In the fall of 2008, the Borough
hosted a GIS Day event that several organizations from around the community participated in.
As a result of that event, the Kodiak GIS Users Group was formed. The Borough, in concert with
the users group, has worked to build GIS capacity for the residents.
Within the last year, the Borough has been working with a GIS contractor to migrate all of the
legacy CAD drawings to GIS. That contract has been completed and this effort has created a
seamless ownership layer across the entire Borough.
The Borough released an updated GIS website in the fall of 2009. There are several new im-
provements. Some of them include Borough -wide coverage for ownership information and high
-resolution aerial photography.
Kodiak Island Borough's GIS Website, http://gis.kodiakak.us
Mill Bay Beach
Kodiak Island Borough Popular Annual Financial Report
Statistical Information...
17,025,000
2,823,480
19,848,480
5.32%
1,419
Demographic and Economic Statistics
17,690,000
2,531,150
20,221,150
5.29%
Deposits in
Personal
Per Capita
School
Unemployment
4.86%
Population
Local Banks
Income
Income
Enrollment
Rate
2000
13,989
111,670,000
373,164,000
26,695
2,810
13.4
2001
13,913
117,503,000
382,227,000
27,794
2,774
10.9
2002
14,167
123,221,000
381,413,000
27,873
2,821
18.2
2003
13,874
120,352,000
393,604,000
29,479
2,750
10.3
2004
13,811
130,325,000
408,069,000
30,874
2,677
10.6
2005
13,466
133,370,000
430,051,000
32,896
2,678
9.5
2006
13,638
141,434,000
469,161,000
36,807
2,718
6.7
2007
13,506
140,915,000
492,637,000
37,951
2,635
6.2
2008
13,568
139,416,000
n/a
n/a
2,671
9.3
2009
13,373
175,141,000
n/a
n/a
2,598
8.2
Ratios of Outstanding Debt by Type
General Total Percent of
Fiscal Obligation Notes Primary Personal Per
vear Bonds Pavable Government Income Ca oita
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%
2,542
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%
2,273
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
28 29
Kodiak Island Borough Popular Annual Financial Report
General Administration...
The Borough has several administrative functions that have to take place. These include man-
agement of the Borough, financial services, information services, clerical support of the Assem-
bly, etc.
In FY2009, the Borough Assembly held 16 regular meetings and 5 special meetings. 25 ordi-
nances were passed along with 33 resolutions. 27 contracts were approved.
The Clerk's office provided administrative support to all of the Assembly meetings. They took
approximately 129 pages of minutes. They added 98 cubic feet of archival records into our re-
cords system and destroyed 94.5 cubic feet of records. 204 passports were processed by the
clerk's office in FY2008.
The Finance Department collected $10,565,685 of FY2009 property taxes which was 99% of the
tax roll. Severance taxes came in at $1,311,188 and the Borough received $8,848,711in grants.
The Borough also earned $2,349,994 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, 2009 several important events took place.
The voters approval for the sale of $76,310,000 General Obligation Bonds. While
the exact amount is still unknown the State will reimburse the Borough at least
60% of the debt service costs. These bonds are to finance improvements and
renovations to the high school.
The debt service on these bonds will be approximately 2.8 mills. This equates to
$700 in property taxes per year on a $250,000 house for 20 years.
On October 9, 2009 6.2 inches of rain fell on Kodiak Island leading to debris flows
and severe flooding in several areas of the island. On November 5, 2009 Gover-
nor Parnell signed a Declaration of Disaster making state funds available for the
damages to State and Borough Roads as well as roads associated with the Terror
Lake Hydroelectric Power station. On December 18, 2009 President Obama de-
clared the event a Federal Disaster. FEMA emergency managers will be traveling
to Kodiak in early January to review the extent of the damage.
'Zi]
Kodiak Island Borough Popular Annual Financial Report
Our Website...
The Kodiak Island Borough
maintains a website for con-
venient public access to local
government.
Nee4e a E^. e:a"'.5 e
The homepage provides navi-
gational links to information
that is often requested by the
public as well as News and
Announcements and a Calen-
Visitors can find information ^ T"„ ^°.• ._ ...
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, ordi-
nances, resolutions, and newsletters.
Many documents and reports are posted on the site. Copies of the Com-
prehensive 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 seis-
mic assessments on school buildings and the recent solid waste manage-
ment study can also be viewed.
Our site includes information on a variety of topics, such as:
Boards, Committees and Commissions
Elections, Passports, and Job openings
Planning and Zoning
Landfill Operations, Road and Fire Services
The Kodiak Fisheries Research Center
Facility projects such as the new pool and 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 Informa-
tion System (GIS).
To access this information and so much more, please visit our site at
www.kodiakak.us
31
+••-"t�'�-a�M� "�--�
d
:,.„.,..........,_....
,„,,;„;,,;•,pm;„:�:,°,,;,,.
dar for current events.
� °•—•
Many documents and reports are posted on the site. Copies of the Com-
prehensive 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 seis-
mic assessments on school buildings and the recent solid waste manage-
ment study can also be viewed.
Our site includes information on a variety of topics, such as:
Boards, Committees and Commissions
Elections, Passports, and Job openings
Planning and Zoning
Landfill Operations, Road and Fire Services
The Kodiak Fisheries Research Center
Facility projects such as the new pool and 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 Informa-
tion System (GIS).
To access this information and so much more, please visit our site at
www.kodiakak.us
31
Kodiak Island Borough PHSRTSTG
US POSTAGE
Finance Department PANG
PERMIT 95
710 Mill Bay Road ANCHORAGE?AK
Kodiak, AK 99615