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FY2007 Popular Annual Financial Reportp;. Kodiak Island Borough Popular Annual Financial Report As of June 30, 2007 rt Jennifer Fogle Kodiak Island Borough Popular Annual Financial Report Table of Contents... Mayor and Assembly......................................................2 Profile of the Kodiak Island Borough ............................3 Financial Information.................................................4-15 Assessed Values...........................................................16 Property Taxes..............................................................17 Severance Taxes...........................................................18 Education......................................................................19 BondIssues..................................................................20 Healthcare.....................................................................21 Statistical Information..................................................22 OurWebsite...................................................................23 Mayor and Assembly (at June 30, 2007)... Mayor Jerome Selby Assembly Members Mr. Tom Abell Ms. Pat Branson Mr. Jerrol Friend Ms. Sue Jeffrey Ms. Chris Lynch Mr. Reed Oswalt Ms. Barbara Williams Term 2007 2008 2007 2009 2008 2009 2008 2007 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. Tourism continues to grow in Kodiak with an increased number of visitors each year. There have been a num- ber of cruise ships visiting Kodiak in recent years as the cruise ship compa- nies 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 Sep- tember 30, 1963, as a Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended. A Mayor/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 mem- bers, all elected at -large. The Borough provides a full range of services including fire protection and first responder emergency medical services, the construction and mainte- nance of roads and other infrastruc- ture, community and economic devel- opment, health and sanitation, cul- ture and recreation and solid waste collection and disposal. The Borough also is financially accountable for a legally 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. 2 3 Kodiak Island Borough Popular Annual Financial Report Financial Information... Financially, FY2007 was a very good year for the Kodiak Island Borough. The Borough's total net assets increased by $3,362,170. At June 30, 2007 the assets of the Kodiak Island Borough exceeded its liabilities by $144,186,510. Of this amount, $32,137,354 (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 $72,927,050. $62,790,419 was in cash and investments. $7,367,644 was in loans to KFRC and the Hospital. Asset Types ■ Cash and investments ■ Due from other funds Kodiak Island Borough Popular Annual Financial Report At year end the total fund balance of all governmental funds was $67,289,953. Revenues C� • Property Tax • Severance Taxes IS Intergovernmental ■ Interest Earnings ■ Other FY2007 expenditures totaled $19,962,209. Major expenditures were Education in the amount of $8,387,440; General Government, $4,504,052; Debt ser- vice, $3,436,710; and Capital Outlay, $1,809,677. FY 2007 revenues were $21,621,004. Property Taxes were $9,750,682, Severance Taxes were $1,316,689, interest earnings were $3,751,609, Intergov- ernmental revenues were $5,430,050, and other of $1,371,974. Expenditures • General government ■ Emergency Services • Community Dev Education ■ Service Districts 0 Debt Service • Non -Profits Capital expenditures will increase over the next five years as the proceeds of the FY2004 and FY2008 bond issues are spent. The largest project is the new swimming pool with a budget of $14,210,000. This project is sched- Other uled to be completed in August 2009. 4 5 Kodiak Island Borough Popular Annual Financial Report Total fund balance of all governmental funds increased $1,821,438 in FY2007 and $2,100,146 in FY2006. The total fund balances will decrease by over $20,000,000 as the bond projects are completed. Proprietary (Enterprise) Funds Proprietary funds include the Landfill, Hospital, Kodiak Fisheries Research Center (KFRC) and 911. At the end of the year, the proprietary funds had total assets of $46,578,340. This includes $7,664,499 in cash and invest- ments. Capital assets (land, buildings and equipment) make up $38,053,625 of total assets. CurrentAssets 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 t I_ — Solid Waste Hospital KFRC 911 Only the Solid Waste fund and the 911 Fund had positive unrestricted net equity. If capital assets are included then all proprietary funds have positive equity. Unrestricted Net Equity 1,000,000 500,000 j' ..__..__. (500,000) (1,000,000) (1,500,000) (2,000,000) (2,500,000) (3,000,000) (3,500,000) Solid Waste Hospital KFRC 911 Kodiak Island Borough Popular Annual Financial Report The Solid Waste fund closed the year with a net gain of $1,208,766, the Hospital had a loss of $378,357, KFRC had a loss of $164,564, and 911 had a loss of $102. The losses in the Hospital and KFRC Funds were due to depre- ciation expense. On a cash flow basis the Solid Waste, KFRC and 911 Funds are all on solid footing. Revenuesys Expenditures 5,000,000 4,000,000 3,000,000 2,000.000 1,000,000 j - --- Solid Waste Hospital KFRC 911 ■Revenues ■Expenditures Looking Ahead The Borough is planning to sell an $8,000,000 bond issue in April of 2008. These funds will be used to construct the new swimming pool. Bell and Associates, Inc. is doing a study on the solid waste collection and disposal system currently in place. The Borough is purchasing new assessing software and will be putting a great deal of effort into its implementation in FY2008 and FY2009. 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, 2007. If you have any questions about the contents of this report, please contact the Finance Department at (907) 486-9323. Rick L. Gifford Karleton G. Short Borough Manager Finance Director Kodiak Island Borough Popular Annual Financial Report Kodiak Island Borough Popular Annual Financial Report Balance Sheet Governmental Funds June 30, 2007 Changes in Fund Balances of Governmental Funds (With summarized financial i nformation for J one 30, 2005 and 2006) Last Three Fiscal years (modified accrual basis of accounting) Fiscal Year Assets 2005 2006 2007 Fiscal Year Assets: 2005 2006 2007 Cash and investments $ 58,457241 $ 59,809,103 $ 62,790,419 Revenues Receivables: State of Alaska 463,204 957,693 604,827 Taxes $ 9,063,729 $ 9,833,846 $ 9,750,682 Federal Government 6,355 6,355 11,093 Intergovernmental Property taxes, net of' State sources 2,169,803 3,368,491 4,012,647 allowance of $15,828 352,850 355,780 216,121 Federal sources 3,853,348 1,766,926 1,417,403 Severance taxes 273,391 295,309 350,619 Land sales contracts 8,000 1,538 38,308 Land sale proceeds 22,738 177,164 47,087 Notes receivable 53,374 501,889 448,533 Severance taxes 1,005,539 1,186,908 1,316,689 Accounts and other Licences, permits, fees, and other local revenues 692,540 820,286 690,962 receivables, net 324,523 391,175 33,856 Otherrevenues 75,841 125,040 633,925 Due from other funds 2,681,559 3,427,042 872,475 Investment earnings 1,772,893 2,803,466 3,751,609 Notes recievable, due after one year 487,271 Total revenues 18,656,431 20,082,127 21,621,004 Land sales contracts, due after one year 34,272 228,496 193,155 Advances to other funds 8,090,822 7,742,903 7,367,644 Expenditures Total $ 71,232,862 $ 73,717,283 $ 72,927,050 Liabilities and Fund Balances General government 3,434,299 3,413,652 3,426,871 Liabilities: Fire services 425,506 537,275 1,077,181 Accounts payable 486,228 467,332 642,679 Emergency preparedness 23,521 6,098 7,884 Retainages payable 22,270 22,270 11,904 Community and economic development 509,680 784,002 786,614 Accrued compensation I Health and sanitation department 329,738 363,520 373,132 and related habtlrties 22,610 89,881 165,935 Education, culture, and recreation 185,993 161,633 158,161 Customer deposits 1,203 678 828 Due to component unit 3,758,892 3,493,790 3,450,419 Service district maintenance 347,934 336,385 498,539 Due to other funds 2,566,059 3,086,617 767,562 Primary and secondary education 7,973,035 8,430,840 8,387,440 Unearned revenues 1,007231 1,088200 597,770 Capital outlay Total liabilities 7,864,493 8,248,768 5,637,097 Schools 68,109 464,142 1,436,639 Fund balances: General 2,972,174 332,398 373,038 Reserved: Debt service Long-term interfund Principal 1,784,859 1,814,553 2,100,361 borrowings 8,090,822 7,742,903 7,367,644 Interest 984,766 1,584,763 1,336,349 Unreserved: Other charges -bond issuance costs 43,661 - - General food: Total expenditures 19,083,275 18,229,261 19,962,209 Designated for subsequent year expenditures 606,323 154,296 554,975 Excess of revenues over (under) expenditures (426,844) 1,852,866 1,658,795 Undesignated 1,206,690 1,871,817 2,238338 Special revenue fonds: Other Financing Sources (Uses) Designated for subsequent year expenditures 143,676 420,400 171,800 Undesignated 32,098,426 33,454,865 35,144,521 Proceeds from sales of bonds 20,350,000 - - Debt service funds: Bond premium 121,590 - - Undesignated (189,824) 76,898 101,090 Transfersin 1,800,212 1,751,182 2,626,853 Capital projects fonds: Transfers out (1,629,610) (1,503,902) (2,464,210) Undesignated 21,412256 21,747,336 21,711,585 Total other financing sources(uses) 20,642,192 247,280 162,643 Total fond balances 63,368,369 65,468,515 67189,953 Total $ 71132,862 S 73,717183 S 72,927,050 Net change in fund balances $ 20,215,348 $ 2,100,146 $ 1,821,438 8 9 Kodiak Island Borough Popular Annual Financial Report Municipal Solid Waste Collection and Assets Disposal Current assets: 285,584 Equity in central treasury $ 4,166,043 Accrued interest receivable - Customer receivables 473,889 Due from other funds Kodiak Accounts receivable -State of Alaska 100,000 Total current assets 4,739,932 Inventories - Capital assets: Non -depreciable Depreciable, net Total capital assets Total noncurrent assets Total Liabilities and Fund Equities Current liabilities: Accounts payable Deferred revenue Accrued compensation and related liabilities Other accrued liabilities Current portion ofcapilal lease obligations Current portion of advances from other fonds Due b other fonds Total current liabilities Noncurrent liabilities: Notes payable Advances from other funds Net pension and OPEB obligation Accrual for landfill closure and pos closure costs Total noncurrent liabilities Total liabilities Fond equities: Invested in capital assets, net of related debt Unrestricted Total fond equities Total Balance Sheet 285,584 - - Enterprise Fonds 17,975,758 June 30, 2007 5,770,274 18,261,342 14,022,009 Kodiak 18,538,349 14,022,009 Fisheries 18,863,831 Hospital Research 911 Facilities Center Fund 325,482 3,083,332 89,642 4,815573 17,490,139 9,320 325,482 3,083,332 98,962 277,007 - - 2,135,500 285,584 - - 3,634,774 17,975,758 14,022,009 5,770,274 18,261,342 14,022,009 5,770,274 18,538,349 14,022,009 $ 10,510206 18,863,831 17,105341 98,962 $ 327,895 25,947 168,021 218,150 740,013 1,048 34,054 - 155,426 15,020 62,693 335,000 104,913 63,741 644,413 1,636924 - 1,309951 5,660,000 95,109 - 27,202 58,000 58,000 3,222,587 Statement of Revenues, Expenses, 4954,620 1309,951 5,687202 5,694,633 1373,692 6,331,615 58,000 Year ended June 30, 2007 4,133,350 20,468,403 14,022,009 - 682223 (2978264) (3248283) 40,962 4,815573 17,490,139 10,773,726 40,962 $ 10,510206 18,863,831 17,105341 98,962 Kodiak Island Borough Popular Annual Financial Report 10 11 Statement of Revenues, Expenses, and Changes in Fond Equity Enterprise Fonds Year ended June 30, 2007 Municipal Kodiak Solid Waste Fisheries Collection and Hospital Research 911 Disposal Facilities Center Fund Operating revenues: Solid waste collection $ 2,748,563 - Solid waste disposal 1,184,422 Charges for services/customer charges 62,698 Lease income - 1,081,110 1,579,600 - Other 27,771 Total operating revenues 3,960,756 1,081,110 1,579,600 62,698 Operating expenses: Personnel services 672,140 5,000 227,139 3,000 Solid waste collection 1,123231 Refuse disposal 265,315 - - - Contracted services 176,045 Maintenance and repairs 29,535 12,425 - - Landfdlclosureandpostclosurecosts (36,350) - Deprecation 271,947 1,073275 742,613 - General and administration 198236 - 420,542 - Miscellaneous - - 72,043 178 Telephone services 60,962 Recycling services 168,963 - - - Contnbutions 11,783 - Totaloperatingexpenses 2,880,845 1,090,700 1,462,337 64,140 Operating income (loss) 1,079911 (91590) 117,263 (1,442) Nonopera ing revenues (expenses): Loss on disposal of capital assets - - Contrbution to Providence Hospital - (150,000) Investment income 122,405 7,045 143,336 1,340 Interest expense (56,719) (425,163) - Income (loss) before transfers 1,202316 (209264) (164,564) (102) Transfers in . _ 6,450 66,500 - - Transfers out - (235,593) Net other financing sources (uses) 6,450 (169,093) - Net change in fund equity 1208,766 (378,357) (164,564) (102) Fond equity at beginning of year, as restated 3,606,807 17,868,496 10,938,290 41,064 Fond equity at end of year $ 4,815,573 17,490,139 10,773,726 40,962 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 FY2007 in a very strong financial position. The Fund Balance increased by $767,200 to $2,793,313. This is 21% of FY2007's expenditures. Revenues 40 ■Property -rax ■Severance Tax ■ Intergovernmental ■ other ■ Investment income Expenditures came in $342,174 under budget. These savings were from several departments, mostly Management Information Systems and Community Develop- ment. The largest factor in this in- crease was the resumption of State Revenue Sharing. Titled Tax Payer Relief, the State gave the Borough $1,039,873 in State aid. Another reason was that the severance taxes on fish ex- ceeded the budgeted amount by $335,338. Expenditures ■ General government ■ Community development ■ Emergency preparedness ■ Health and sanitation ■ Culture and recreation ■ Education Kodiak Island Borough Popular Annual Financial Report Balance Sheet General Fund June 30,2007 (With summarized financial information fortune 30, 2006) 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 Fund Balances Liabilities: Accounts payable Accrued compensation and related liabilities Due to component unit Due to other funds Uneamed revenues Total liabilities Fund balances: Designated for subsequent year expenditures Undesignated Total fund balances Total 2007 2006 $ 5,666,479 $ 4,948,760 45,895 174,997 551,732 327,271 — 295,309 8,271 62,760 573,780 300,000 $ 6,846,157 $ 6,109,097 203,706 217,327 165,935 89,881 3,450,419 3,493,790 14 35,710 232,770 246,276 4,052,844 4,082,984 554,975 154,296 2,238,338 1,871,817 2,793,313 2,026,113 $ 6,846,157 $ 6,109,097 12 13 Kodiak Island Borough Popular Annual Financial Report Budgetary Comparison Schedule General Fund Year ended Jane 30, 2007 ( With financial information for the year ended June 30, 2006) Revenues: Property taxes: Real Personal Boat Motor vehicle Penalty and interest Total property taxes Intergovernmental: State sources: Tax Payer Relief Raw fish tax Fish revitalization Electric Co-op tax On behalf PERS payment Total state sources Federal sources: Payments in lieu of taxes Fish and Wildlife revenue sharing Total federal sources Total intergovernmental revenue Severance taxes: Fish Mining Logging Total severance taxes Licenses, permits, fees, and other local revenues: Budding and trailer permits Subdivision and zoning fees Sale of copies Miscellaneous Total licenses, permits, fees, and other local revenues Investment income Total revenues 2007 Variance with Final Budget - Positive 2006 Budget Actual (Negative) Actual $ 7,464,057 7,445,150 (18,907) 7,790,275 974,925 990,141 15,216 1,107,316 26,700 26,217 (483) 7,546 250,000 225,046 (24954) 181,632 154,000 214,773 60,773 164,978 8,869,682 8901,327 31,645 9251,747 1,039,870 1,039,873 3 - 958,960 958,965 5 802,313 2,000 66235 64,235 62,877 26,000 27,474 1,474 26,680 130,000 83,159 83,159 113,667 2,026,830 2,175,706 148,876 1,005,537 750,000 800,081 50,081 803,246 350,075 350,112 37 378,770 1,100,075 1,150,193 50,118 1,182,016 3,126905 3,325,899 198,994 2,187,553 949,960 1,285,298 335,338 1,108,742 9,555 11,401 1,846 15,426 57,278 19,990 (37,288) 62,740 1,016,793 1,316,689 299,896 1,186,908 80,000 58,630 (21,370) 69,670 7,000 4,600 (2,400) 6,525 15,000 15,490 490 13,470 77,700 82,604 4,904 82,297 179,700 161,324 (18976) 171,962 400,000 399,149 (851) 469,913 13593,080 14,104,388 511,308 13268,083 (continued) Kodiak Island Borough Popular Annual Financial Report Budgetary Comparison Schedule General Fund Year ended June 30, 2007 (With financial information for the year ended June 30, 2006) Expenditures: j% General government: General and administration Borough assembly Borough manager Borough clerk Borough attorney Finance department Management information systems Assessing department Engmeermg/facildies department Total general government Community and economic development 2007 Variance with Final Budget - Positive 2006 Budget Actual (Negative) Actual $ 297,370 253,610 43,760 421,057 161,790 135,986 25,804 139,053 189,081 194,030 (4,949) 252,118 365,490 382,675 (17,185) 354,798 130,000 128,087 1,913 74,638 667,023 678,307 (11,284) 602,111 475,838 346,259 129,579 423,751 399,150 400,617 (1,467) 354,595 152,102 112,556 39,546 108,214 2,837,844 2,632,127 205,717 2,730,335 Community development department 613,420 488,529 124,891 497,036 Building official 132,640 141,556 (8,916) 163,829 Economic development 70,000 72,816 (2,816) 75,018 Total community and economic 12,520,190 12,178,016 342,174 12,351,083 development 816,060 702,901 113,159 735,883 Emergency preparedness Health and sanitation department Education, culture and recreation Primary and secondary education Total expenditures Excess of revenues over expenditures Other financing uses: Transfers out 8,800 7,884 916 6,098 302,260 289,503 12,757 286294 167,786 158,161 9,625 161,633 8,387,440 8,387,440 - 8,430,840 12,520,190 12,178,016 342,174 12,351,083 1,072,890 1926372 853,482 917,000 (1,159,172) (1,159,172) - (703,900) Net change in fwd balance $ (86282) 767200 853,482 213,100 Fwd balance at beginning of year 2,026,113 1,813,013 Fwd balance at end of the year $ 2,793,313 2,026,113 14 15 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 Assessed Values 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 ■ Personal Property ■ Real Property ■ Total Most of this increase has come from changes in value of real property. In FY1998, the total assessed value of taxable property within the Borough was $681,345,890. By FY2007, it had risen to $835,525,537. The value of tax exemptions has also increased over the last 8 years. $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Property Tax Exemptions 2000 2001 2002 2003 2004 2005 2006 2007 ■Senior Citizen ■ Disabled Veteran V Agriculture Property tax exemptions for agriculture have been very stable while exemp- tions for senior citizens and disabled veterans are rising. 16 Kodiak Island Borough Popular Annual Financial Report Property Taxes... Property tax is the largest source of revenue for the Kodiak Island Borough. In FY2007 the Borough realized revenues of $9,750,682 from property tax, which was 45% of all Borough 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). y 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. 1888 1998 2000 2001 2002 2003 2000 2005 2006 2007 Top ten larget taxpayers Taxpayer It is interesting to note that the 10larg- ocean Beauty Seafoods Inc est taxpayers paid Brechan Enterprises Inc 13% of the total Alaska Communications Systems property tax levy. westward Seafoods, Inc International Seafoods of AK 5 of the top 10 Corp- North Pacific Seafoods panies are seafood Wal-Mart real Est Bus Trust processing facilities. Trident Seafoods Corp Kodiak Is truly a fish- Horizon Lines of Alaska LLC ing community. Mill Bay Plaza Assoc LTD Assessed Value $ 16,699,020 13,887,896 12,044,445 11,394,029 10,795,728 9,546,064 9,127,913 8,188,476 7,408,186 7,138,400 17 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. Timber Mining Fish Severance taxes are collected in three categories: Fish, which is seafood har- vested and delivered to processors within the Kodiak Island Borough; Min- ing 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 mar- ket for these goods, prices tend to fluc- tuate and consequently, the taxes col- lected also vary from season to season. 2007 severance Taxes Collected '.. 0 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 $9,425,565 supporting the School District in FY2007. This includes both the General Fund and Building and Grounds. By far the majority of all property tax 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 2,900 2,850 2,800 2,250 2,700 2,650 2,600 2,550 2,500 -- 1998 1999 2000 2001 2002 2003 2009 2005 2006 2007 The number of students has been steadily decreasing since FY1998. This has been mainly due to the chang- ing demographics of Kodiak. Borough's Cost of Education 1998 1999 2000 2001 2002 2003 2004 2005 2006 Much of this is due to inflation but new Federal mandates such as the "No Child Left Behind" program have cost the School District an immense amount of money. For more information you can go to http://www.kodiak.kl2.ak.us 18 iq 9,000,000 8,000,000 The cost of education 7,000,000 has continued to rise. 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 The number of students has been steadily decreasing since FY1998. This has been mainly due to the chang- ing demographics of Kodiak. Borough's Cost of Education 1998 1999 2000 2001 2002 2003 2004 2005 2006 Much of this is due to inflation but new Federal mandates such as the "No Child Left Behind" program have cost the School District an immense amount of money. For more information you can go to http://www.kodiak.kl2.ak.us 18 iq Kodiak Island Borough Popular Annual Financial Report Healthcare... One of the Kodiak Island Borough's powers is healthcare. To this end the Ko- diak Island Borough has constructed and maintained hospitals and health care facilities down through the years. The Borough finished a major addition and remodel of the Hospital in 1997. The Borough leases the Hospital and the Mental Health Center to Providence Health & Services. This organization has a multi -state presence and is consid- ered one of the premier health care providers in the nation. Providence Kodiak Island Medical Center (PKIMC) is staffed by a mix of pri- mary care physicians, surgeons and specialists who provide family practice, internal medicine, obstetrics, radiology, general and orthopedic surgery and psychiatry in addition to a number of visiting specialists from Anchorage. The Hospital features 25 acute care beds which include 4 birthing suites and 2 intensive care beds. PKIMC offers a significant range of inpatient and outpatient services includ- ing emergency department, surgery, maternity, general medicine, physical therapy, specialty clinics, diagnostics, pharmacy and home health care. Providence Kodiak Island Counseling Center offers counseling for all age groups, families and couples, Mental Health Clinicians in the schools, case management for chronically mentally ill, medication management and out- patient chemical dependency treatment. Kodiak Island Borough Popular Annual Financial Report Bond Issues... The Borough sold $20,350,000 worth of General Obligation Bonds in 2005. The projects to be funded by these bonds were all educational in nature. $14,140,000 of this amount was earmarked for safety and renovation pro- jects including a Seismic Vulnerability Assessment of all schools and $6,210,000 for a new swimming pool. After some preliminary work it was apparent that $6,210,000 was not nearly enough for a new swimming pool. On October 3, 2006 the voters authorized the Borough to issue another $8,000,000 in bonds for the new pool, bringing the total amount of the pool project up to $14,210,000. De- sign is complete and construction of the new 6 lane pool will begin in the spring of 2008. The new pool is scheduled to be completed by August 2009. The Seismic Vulnerability Assessment, completed in February 2006, identi- fied five buildings in the District having moderate to severe structural defi- ciencies. The Borough put a very high priority on addressing the seismic upgrades, the first being the Kodiak Middle School followed by Ouzinkie School, Peterson Elementary, KHS Library Wing and the KHS Gym. FEMA grants totaling $2,145,105 have been secured to help fund the seismic up- grades, all of which are scheduled to be completed by end of 2009. The remaining bond projects are scheduled to be completed by 2011. As of June 30, 2007, the Borough had spent only $1,748,102 of these funds. 20 21 Kodiak Island Borough Popular Annual Financial Report Statistical Information... Demographic and Economic Statistics Last Ten Fiscal Years sources: (a) Stale of Alaska, DCRA cmificd population out Bente of Alaska Depunmmt of education usaigstaver, / /0'kF /AIM df (c) DeFmment of labor using www almis.labor,ilne.A.us Note: Per Capita Personal Income and Personal income figures are not yet available for 2005 to 2007, Average Monthly Employment & Earnings 2006 Total Industries Private Ownership Total Government Private Goods -Producing Private Service -Providing Business Size 250 to 499 employees 100 to 249 employees 50 to 99 employees 20 to 49 employees 10 to 19 employees 'Data fromM /I to abor alkali Fiscal Year 2005 Fiscal Year 2006 Average Per Capita Average Percentage Fiscal Monthly Personal Personal School Unemployment year Population (a) Income (c) Income (c) Enrollment (b) Rate (c) 1997 14,058 336,233,000 23,725 2,862 9.1 1998 14,181 337,634,000 24,378 2,851 5.0 1999 13,848 347,630,000 25,264 2,798 5.1 2000 13,989 373,164,000 26,695 2,810 13.4 2001 13,913 382227,000 27,794 2,774 10.9 2002 14,167 381,413,000 27,873 2,821 18.2 2003 13,874 393,604,000 29,479 2,750 10.3 2004 13,811 408,069,000 30,874 2,677 10.6 2005 13,466 430,051,000 32,896 2,678 9.5 2006 13,638 NA NA 2,718 6.7 2007 13,506 NA NA 2,661 6.2 sources: (a) Stale of Alaska, DCRA cmificd population out Bente of Alaska Depunmmt of education usaigstaver, / /0'kF /AIM df (c) DeFmment of labor using www almis.labor,ilne.A.us Note: Per Capita Personal Income and Personal income figures are not yet available for 2005 to 2007, Average Monthly Employment & Earnings 2006 Total Industries Private Ownership Total Government Private Goods -Producing Private Service -Providing Business Size 250 to 499 employees 100 to 249 employees 50 to 99 employees 20 to 49 employees 10 to 19 employees 'Data fromM /I to abor alkali Fiscal Year 2005 Fiscal Year 2006 Average Average Average Average Monthly Monthly Monthly Monthly Employment Earnings Employment Earnings 5,381 $ 2,871 5,553 $ 2,926 4,042 2,757 4,191 2,803 039 3214 1,361 3,306 1,659 3,489 1,691 3,382 2,384 2,245 2,500 2,412 Number of Businesses by Company Sive 2005 2006 Number Number of Businesses of Businesses 2 4 10 8 9 9 27 27 59 58 Note: No principal employer data available from department of labor No data available before 2005 22 Kodiak Island Borough Popular Annual Financial Report Our Website... The Borough unveiled a new webpage this year. Each Borough department participated in its creation with the goal of serving the public in many different ways. One of the first items a viewer will notice is the calendar. This provides details of all important dates and Borough meetings, including service areas and advi- sory boards. Most meeting agenda and packets can also be viewed and/or downloaded through the calendar. Meeting minutes, including minutes from the first Assembly meeting on October 12, 1963, and other permanent records, such as contracts, ordi- nances, resolutions, and newsletters are also accessible. A variety of forms can be downloaded: you can print out forms to apply for a board or committee seat, apply for a passport, request a burn permit, pay a bill, apply for a job and many other activities. Information regarding real property is available including zoning, owner- ship, and assessed values. A Geographic Information System (GIS) provides a mapping interface. Many documents and reports are also posted on the site. Interested in the Borough's finances? Copies of the Comprehensive Annual Financial Report, the budget, and fee schedule are all available on the Finance Department pages. How about community planning? Comprehensive plans for commu- nities and districts throughout the Borough are all available via the Commu- nity Development Department pages. Bids and RFPs, including specifications, supplementary information such as drawings, and updates are also now available on line. We are very excited about our new web site and hope you will visit at www.kodiakak.us 23 Kodiak Island Borough Finance Department 710 Mill Bay Road Kodiak, AK 99615 PRSRT STD US POSTAGE PAID PERMIT950 ANCHORAGE, AK