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FY2000 Popular Annual Financial ReportKodiak Island Borough Annual Report for Fiscal Year 2000 (July 1, 1999 through June 30, 2000) Kodiak Island Borough To the residents of the Kodiak Island Borough: Finance Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone(907)486-9323 Fax(907)486-9392 I am pleased to present the fiscal year (F.Y.) 2000 Annual Popular Report. This report is compiled to inform you about your Borough's financial condition as of June 30, 2000 and some of our F.Y. 2000 accomplishments. The mission of the Kodiak Island Borough is to provide cost-effective services for the residents of the Kodiak Island Borough that will ensure a stable economy; an opportunity for a quality education; a healthy, safe, and diversified lifestyle; and to promote maximum citizen participation in local government. To this end, the Assembly formulates goals and objectives each fiscal year for the mandated powers, adopted powers, and service districts. The Kodiak Island Borough has worked with the various City Councils, the Kodiak Island Borough School District, and the US Coast Guard to establish positive relationships and to work together on common issues. The economic condition of the Kodiak Island Borough remains healthy. Based on current Chamber of Commerce projections, the Kodiak Island Borough will continue to grow. This growth will positively impact the island. The main industries of the Borough are commercial fishing, logging, government and tourism, with commercial fishing being the largest. Government entities include the largest Coast Guard base in the United States, the Kodiak Fisheries Research Center, the Fisheries Industrial Technology Center, and the Kodiak National Wildlife Refuge, as well as the Borough and City governments. The Kodiak Island Borough continues to promote fisheries development and will participate in fisheries issues as they arise, including the protection of stocks and encouraging research on issues that have long-term impacts on our local fishing industry. The newest industry in Kodiak involves the Kodiak Rocket Launch Facility, a privately run satellite launch complex. Providence Health Systems continues to successfully operate our hospital and mental health services. The Kodiak Fisheries Research Center, in operation since the fall of 1998, allows the Kodiak Island Borough to promote regional scientific research programs in a world-class facility that houses staff for the National Marine Fisheries Service among others. The Kodiak Island Borough promotes education programs that provide a skilled work force for existing and emerging industries. As the cost of educating our children increases, our greatest challenge in the fixture is to secure funding to ensure that each child is afforded a high quality education. The Borough continues to work on the top twelve priority projects for FY 2002 - FY 2006. During FY 2000, the Borough completed the Exxon Valdez Oil Spill Trustee Council (EVOSTC) project, the Fire Service study, and the High School freezer relocation projects. At year-end, the Borough had appropriated $6,040,490 for ongoing capital projects. It is the goal of the Kodiak Island Borough to maintain a General Fund balance of at least one million dollars. The fund balance as of June 30, 2000 was $1,142,515. This was $359,056 more than the June 30,1999 balance of $783,459. Sincerely, Karleton G. Short, Finance Director INTRODUCTION This report is prepared annually by the Finance Director of the Kodiak Island Borough. Its purpose is to inform Bor- ough residents and to pro- vide a better understanding of local government. The report outlines services and functions performed by the Borough and presents fi- nancial information for Fis- cal Year 2000 (July 1, 1999 - June 30, 2000). Com- parisons to previous years and projections for future expenditures are included to provide a complete sum- mary of the Borough's past accomplishments. A com- plete copy of the audited Kodiak Island Borough Comprehensive Annual Financial Report for Fis- cal Year 2000 is available for review at the A. Holmes Johnson library. The Kodiak Island Borough encompasses the entire geological formation known as the Kodiak Archipelago. It includes all land within the Kodiak Island group from the Trinity Islands on the south to the Barren Islands on the north. The estimated size of the Kodiak Island Borough is 15,265 square miles of water and 7,130 square miles of land. The annexation in 1989 of the watershed draining into Shelikof Strait on the Alaska Peninsula into the Kodiak Island Borough added an abundance of historic, geo- graphic, social, cultural and economic assets fortheben- efit of the residents of the Kodiak Island Borough. The Borough was incorpo- rated on September 24, 1963 as a second-class borough. The Borough op- erates under a mayor/man- ager form of government. The manager is hired and authorized by the Kodiak Island Borough Assembly to manage Borough affairs, in- cluding operations, person- nel, and financial manage- ment. The Borough voters elect a mayor as the cer- emonial head of the Bor- ough. The mayor presides at assembly meetings and votes in the case of a tie vote of the assembly. The assembly is comprised of seven members who are elected at large. By Alaska State Statute, the Kodiak Island Borough is responsible for four area - wide powers encompassing all of the Kodiak Island Borough: 1) Planning and Zoning, 2) Assessment and Taxation, 3) Education, and 4) Health. Additionally, the Borough is responsible for non area -wide powers out- side the Kodiak city limits, which include: 1) Solid Waste Collection and Dis- posal, 2) Animal Control, 3) Parks and Recreation, 4) Economic Development, and 5) Service Districts for roads, water, sewer, fire protection and street light- ing. BARREN ISLANDS Xdc a lb ✓:). CAPE DOUGLAS Q,P Q $ DUZI OR I N ODIA 0� oho KARL UK EN B ��jv HINI 14DE BAY LO HA 60R AKHI o SITKINOK ISDN UGI K ND� b EMIDI ISLANDS d• CHIRIKOr ISLAND t -J -- 4 I wn.a.aN oeveam+ndrecoe I PYn na Ra¢ BOROUGH DEPARTMENTS Kodiak Island Borough Organizational Chart Focal Year 2000 EbcwaNe Bav j�MNor aomWh AuemEh Botouaa Aho q---hMeregaa AOnYrhValive Asl¢bN Baytiao Aw'swelFln CM1tl r M¢Gouvl B4etlw L ErMimenmTacoiuea d�mor Aaemmr rea Eoaear MarbrerwWOlm PegMy Appwlwr I I I KFW Re nY I Assemwr Basr( Wn The Borough is divided into eight functional areas or departments including Legislative, Legal, Manager, Clerk, Finance, Assessing, Community Devel- opment, and Engineering/ Facilities. Following is a description of each Borough department: LEGISLATIVE This department includes the activities of the Kodiak Island Borough Assembly, and includes the stipends and expenses for the elected assembly persons, as well as membership of the Borough in various organizations such as the Alaska Municipal League and Southwest Alaska Municipal Conference. This department also includes the expense of retaining legislative lobbyists whose efforts help to secure funding for public projects. LEGAL Legal services are currently provided to the Borough on a contractual basis from local attorneys. MANAGER The Borough Manager is appointed by the Assembly. He is the chief administra- tive officer for the Borough and is responsible for Borough affairs and employees. As such, he is charged with the preparation and administration of the Borough budget, capital improvement program, and personnel administration. The Manager reports to the Assembly on operations and finances of the Borough. In fiscal year 2000 the Manager's office consisted of the Manager and Adminis- trative Assistant. The Assistant Fire Chief serving Bayside Fire Protection Area No. 1 and the Arts Council Director also report to the Manager. CLERK The Borough Clerk is appointed by the Assembly and maintains records and minutes of all official Borough meetings as well as conducting borough elections, voter registration, and registrar training. The Clerk's Office maintains and makes available for public inspection all records, files, ordinances, resolutions, rules and other related Borough information. The Clerk's office is also responsible as the local passport acceptance facility. FINANCE The Finance Department is responsible for all aspects of financial management of the Kodiak Island Borough. This includes administration and collection of all property taxes within the Borough, annual budget preparation and monitor- ing of the budget process, coordination of all bond and investment activities, accounting for capital projects and grant reporting activity. The Finance Depart- Bomuf LtM AviLerl Cbk Fav®drttb� cerewlAmo�.raM s.:arsnlam Am m vig Tetlaitim CLralva5uavlw aY*a mubg Talrvaan IAN Menb4Ya 4 vASPrya[b ie9 oreAlNlahaor Pc Taclntlanl ieVP11M AL�'O✓t81r Saeary ment also operates as a central treasurer for all Borough funds and incorporates receipts and disbursements for the Kodiak Island Borough School District. Along with the regular internal operating activities such as accounts receivable, accounts payable and payroll, the Finance Department also performs the accounting and collection activities for garbage collection services within the Borough and landfill disposal fees. Management Information Systems and the Child Care Assistance office are also components of the Finance Department. Management Information Systems (MIS) is responsible for managing computer information systems for the Borough and the school district. MIS is organized around an IBM AS/400 mainframe computer with all borough departments linked by local area networks. This information system helps departments with similar data base needs to access the same information, thereby enhancing services and streamlining interdepart- mental procedures and reports. The local Child Care Assistance Office has been serving Kodiak families since 1975. Program subsidy and administra- tive costs are provided by grant funds from the State of Alaska Department of Education and Early Development, Child Care Programs. These programs are designed to provide assistance for low to moderate -income parents who are working or attending school. Quality, affordable childcare is a critical issue in a parent's ability to obtain and maintain stable employment and income. Eligible parents may select the day care home or center that best meets their needs. The FY 00 program served an average of 68 Kodiak families with 125 children each month. Program funds of $479,806 were distributed to local childcare providers for their services to families enrolled in the Child Care Assistance programs. The local Child Care Assistance Office is located in the Borough building. The Program Director can be reached by phone for appointments at 486-9375. ASSESSING The Assessing Department is the property appraisal division of the Borough and is responsible for maintain- ing current and comprehensive data files on every parcel of real property in the borough. This department maintains assessments (appraisals) of all personal property (equipment, boats, and office furniture) and real property (land and structures). The Assessing Department stays abreast of up-to-date market and economic trends that are reflected in the assessment valuation process, thus maintaining equity in the ad valorem tax program (ad valorem tax: tax based on current value of property). This depart- ment assists the Board of Equalization in appeal hearings where any taxpayer may appeal an increase in property tax valuation. The department also assists the Resource Management Office in the management of Borough lands by tendering property appraisal and consulting land management, sales and development services. COMMUNITYDEVELOPMENT The Community Development Depart- ment is responsible for maintaining the Borough's comprehensive plan (an area - wide function) including the KIB Coastal Management Program (KIBCMP). The KIB Local Emergency Planning Commit- tee (LEPC) is a responsibility that is traditionally shared by the Community Development Department in conjunction with the City of Kodiak. The department has historically been responsible for supporting the KIB Parks and Recreation Committee, as well as other ad hoc committees formed by the Assembly (e.g. garbage task force). The Community Development Depart- ment is responsible for reviewing subdivision requests and maintaining the Borough's computerized mapping program. The department maps address changes and notifies a dozen organiza- tions and agencies as part of the En- hanced 911 system, which is operated by the City of Kodiak Police Department. The department provides full-color zoning maps, address maps, and other graphic products for the public and other Borough departments. The department serves as staff support for the Planning and Zoning Commission, and, by extension, the Borough Adminis- tration and Assembly, on a wide range of land use and planning issues. The department also serves as the primary liaison between the villages and the Borough government for planning, zoning, and coastal district matters. The department administers zoning and land use planning ordinances, along with other related ordinances requiring code enforcement and administrative over- sight. A number of personal service contracts approved in the last three (plus) years have been funded with grant monies managed by the Community Develop- ment Department. Other contracts managed by the department on a regular basis include the animal control and building inspection contracts with the City of Kodiak; management of the KIB's junk removal program contract; and coordination of KIB emergency services program(s). Building Inspection Services are also provided through the Community Development Department by way of an agreement between the Borough and the City of Kodiak. ENGINEERING AND FACILITIES The Engineering and Facilities Depart- ment is responsible for solid waste disposal in the KIB, which includes: recycling, landfill operations, metal recycling, waste hauling, and hazardous waste disposal. This department is responsible for direct operation, mainte- nance and repair of all borough facilities, which includes: the Borough Building, the Kodiak Fisheries Research Center, the Chimak Library and tsunami shelter, the Red Cross building, and the Spruce Cape heliport, but does not include the Kodiak Island Borough School District (KIBSD) facilities orhospital facilities. The Engineering and Facilities Department is responsible for direct operation, mainte- nance and repair of all KIB owned parks and recreation facilities. Engineering and Facilities is also responsible for design and construction of all capital and repair projects in the borough, which include: major maintenance and construction of all KIB owned facilities including KIBSD and hospital facilities. The Engineering and Facilities Depart- ment administers Borough codes related to construction, utility and subdivision improvements. The staff is responsible for grant generation and management, fiscal management of capital and mainte- nance projects, and facilities inspections of KIB owned facilities. Engineering and Facilities staff manages service district contracts and acts as liaison for the service districts and the Kodiak Island Borough. Additionally, the Kodiak Fisheries Research Center is managed, operated, maintained and repaired by the Engineer- ing and Facilities department. This facility houses a multi -agency research team committed to the preservation, enhancement and management of the North Pacific marine ecosystem and resources; as well as an interpretive center that provides an educational and interactive overview of Kodiak Island wildlife, marine life and fisheries research programs. FINANCIAL DATA FINANCIAL MANAGEMENT The financial accounts of the Borough are orga- nized as individual funds, each of which is consid- ered a separate accounting entity. The resources of the Borough are allocated to these funds based upon the purpose for which they are to be spent. The general fund, or current fund, is used for the ordinary operation of the Borough government and is financed by taxes and other general revenues. Other specific funds include special revenue funds which are used to account for the proceeds of spe- cific revenue sources that are legally restricted to expenditure for specific purposes: debt service, which is established for principal and interest re- payment on general obligation debt; capital projects fund, which is used for the acquisition and con- struction of designated fixed assets; and enterprise funds, which are established as self-supporting user charges and include solid waste collection and dis- posal. FY 2000 Budget Summary General Fund 10,093,015 Special Revenue Funds 7,149,244 TOTAL BOROUGH - ALL FUNDS, except Capital Projects REVENUE (1,328) 1,328 Budget 479,803 Budget Actual less 177,529 FY00 FY00 Actual General Fund $ 10,093,015 $ 10,186,538 $ (93,523) Community Mental Health - 2,592 (2,592) Child Care Assistance 540,048 483,834 56,214 Welfare to Work 339,310 161,781 177,529 Land Sales 205,630 377,015 (171,385) Building 8 Grounds 508,760 445,697 63,063 Coastal Management 25,670 25,670 - Local Emergency Planning Committee 30,600 30,600 - Womens Bay Road Service Area 107,700 112,563 (4,863) Service Area No.1 155,650 71;330 84,321 Service Area No.2 200 199 1 Monashka Bay Road Service Area 23,400 25,489 (2,089) Bay View Road Service Area 5,470 5,725 (255) Fire Protection Area No.1 264,000 307,149 (43,149) Womens Bay Fire Department 61,495 69,157 (7,662) KIB Airport Fire District 30,640 29,610 1,030 Woodland Acres Street Light Service Area 10,470 2,456 8,014 Kodiak Arts Council 69,380 53,518 15,862 Facilities 4,727,921 4,925,970 (198,049) Tourism Development 42,900 37,888 5,012 Debt Service 2,808,590 2,736,208 72,382 Solid Waste Disposal Enterprise Fund 2,446,740 2,761,986 (315,246) Hospital Enterprise Fund 935,150 1,719,347 (784,197) Kodiak Fisheries Research Enterprise Fund 2,070,280 1,937,017 133,263 911 Service Enterprise Fund 80,000 63,694 16,306 TOTAL REVENUE ALL FUNDS EXPENDITURES Debt Service Funds 2,808,590 General Fund Community Mental Health Enterprise Funds 5,532,170 Child Care Assistance Total 25,583,019 Welfare to Work Debt sen,iee Fun, 11% san'+ai Reye, 28% FY 2000 Budget summary EeWpnee Funds 126 Land Sales Building 8 Grounds Coastal Management Local Emergency Planning Committee Womens Bay Road Service Area Service Area No.1 Service Area No.2 Monashka Bay Road Service Area Bay View Road Service Area Fire Protection Area No.1 Womens Bay Fire Department KIB Airport Fire District Woodland Acres Street Light Service Area Kodiak Arts Council Facilities Tourism Development Feed Debt Service Solid Waste Disposal Enterprise Fund Hospital Enterprise Fund Kodiak Fisheries Research Enterprise Fund 911 Service Enterprise Fund TOTAL EXPENSE ALL FUNDS REVENUE LESS EXPENSE 25,583,019 26,573,033 (990,014) $ 10,093,015 $ 9,827,479 $ 265,536 - (1,328) 1,328 540,048 479,803 60,245 339,310 161,781 177,529 205,630 167,405 38,225 508,760 478,956 29,804 25,670 25,670 - 30,600 30,600 - 107,700 79,995 27,705 155,650 105,247 50,403 200 1 199 23,400 23,837 (437) 5,470 - 5,007 463 264,000 144,298 119,702 61,495 31,975 29,520 30,640 15,228 15,412 10,470 5,098 5,372 69,380 53,401 15,979 4,727,921 579,201 4,148,720 42,900 37,924 4,976 2,808,590 2,793,853 14,737 2,446,740 2,641,836 (195,096) 935,150 1,541,758 (606,608) 2,070,280 1,807,968 262,312 80,000 35,909 44,091 25,583,019 21,072,903 4,510,116 GENERAL FUND REVENUE Taxes Real and Personal Severance Penalties and Interest Total Budget Budget Actual less FY00 FY00 Actual $ 6,784,230 $ 6,512,216 $ 272,014 1,044,250 1,175,649 (131,399) 140,000 111,593 28,407 7,968,480 7,799,458 169,022 General Fund Revenues Fiscal Year 2000 Intergovernmental Revenue 68,597 (8,597) 22,950 National Wildlife & Forest Fund 211,980 211,827 153 Payment in Lieu of Taxes 509,470 469,470 40,000 AK Municipal Assistance Fund 131,920 122,097 9,823 Interest Earnings Miscellaneous Revenues State Shared Revenue 119,820 119,821 1 ( ) Intergovernmental Revenues 3% 1Y Raw Fish Tax 828,560 833,980 (5,420) ta% Miscellaneous 14,000 - 14,000 Lleeases ai Permits Telephone & Electric 8,000 12,843 (4,843) 1% Emergency Medical Services 33,000 - 33,000 Total 1,856,750 1,770,038 severance raxIti�- 86,712 anc Licenses and Permits Building Community Development Total Investment Earnings & Others Sale of maps Investment Earnings Other Total Use of Fund Balance Transfers Sale of fixed assets 60,000 68,597 (8,597) 22,950 24,407 (1,457) 82,950 93,004 (10,054) 600 612 (12) 250,000 358,351 (108,351) 17,775 29,245 (11,470) 268,375 388,208 (119,833) (187,220) - (187,220) 101,680 129,829 (28,149) 2,000 6,000 (4,000) TOTAL GENERAL FUND REVENUES 10,093,015 10,186,538 (93,523) EXPENDITURES General Government Support Borough Assembly $ 146,520 $ 140,394 $ 6,126 Legal 192,170 187,040 5,130 Management 267,270 226,623 40,647 Clerk 202,000 197,866 4,134 Finance 387,540 369,645 17,895 MIS 343,836 329,257 14,579 Assessing 283,720 279,312 4,408 Community Development 359,060 304,701 54,359 School District Support 6,481,035 6,500,341 (19,306) Health & Sanitation 764,847 730,888 33,959 Education, Culture & Recreation 173,330 166,630 6,700 Economic Development 49,000 37,755 11,246 General Administration 241,587 177,861 63,726 Building Inspection 144,600 120,472 24,128 Emergency Preparedness 5,500 2,790 2,710 Transfers 51,000 55,905 (4,905) TOTAL GENERAL FUND EXPENSES 10,093,015 9,827,479 265,536 REVENUE LESS EXPENSE $ - $ 359,059 $ (359,059) General Fund Expenditures Fiscal Year 2000 Education 64% Puab Safety 1x General Government 9% cwnmunitY Deq 4% Nsa3% g Tax _'C _cunure and Recreation HealM and welfare g% 7% PUBLIC EDUCATION The Borough has delegated the operating responsibility for education to the Kodiak Island Borough School Dis- trict. In accordance with state statutes, the Borough retains ownership of all school facilities and incurs the debt from the acquisi- tion and construction of any new facilities. The Borough and School District maintain separate accounting records of financial activity but utilize a central treasury for the management and in- vesting of funds. The Kodiak Island Borough School District offers qual- ity education programs for students within the Borough. All curricula are aligned with the Content and Perfor- mance Standards for Alaska Students. Student perfor- mance in reading, writing and math is assessed by state and district requirements. BOROUGH CONTRIBUTIONS TO THE SCHOOL DISTRICT Fiscal Assessed Amount of Millage Year Value Contribution Equivalent 1991 $479,942,347 $ 2,838,397 5.91 1992 516,304,869 3,620,202 7.01 1993 559,359,084 3,864,691 6.91 1994 591,436,473 3,990,847 6.75 1995 614,570,795 3,770,399 6.14 1996 640,462,576 4,574,068 7.14 1997 654,134,651 4,839,887 7.40 1998 681,342,892 5,715,361 8.39 1999 686,856,392 6,492,876 9.45 2000 715,699,035 6,678,652 9.33 Source: Borough ordinance and assessment I California Achievement Tests indicate that Kodiak students score at the national average. Benchmark Ex- aminations and the Alaska High School Graduation Qualifying Examination were added in the year 2000. The District has a Strategic Plan in effect which focuses on student achievement, staff success, family involve- ment, alternative education, health and safety initiatives, facilities and budget. Vari- ous committees meet throughout the year to de- velop and implement effec- tive ways to continue the pursuit of academic excel- lence. The Mission State- ment, developed in 1991, con- tinues to guide District deci- sions: The Kodiak Island Bor- ough School District, in close cooperation with our diverse island community, exists to provide an educa- tional program of the high- est standard that empow- ers all students to achieve personal and academic ex- cellence while developing their full potential as re- sponsible, productive citi- zens. KODIAK ISLAND BOROUGH SCHOOL DISTRICT Student activity programs reflect the interests of the individual communities and facilities available. The arts, athletics, student leadership, and other approved clubs and organizations are offered. Students are recognized for their academic and athletic achievement through pro- grams sponsored by various local organizations and advi- sory groups. Number of students 2,486 2,602 2,632 2,802 2,773 2,793 2,809 2,897 2,815 2,798 (a) The majority of Village Schools are grades K- 12 (b) Based on Poll time equivalents. 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Number of schools: Elementary Schools 3 3 3 3 3 4 4 4 4 4 Middle School 1 1 1 1 - 1 1 I 1 1 1 High School I 1 1 I 1 1 I 1 1 I Village Schools (a) 9 9 9 9 9 9 9 9 9 9 Number of personnel: (b) Administration 7.0 6.0 5.0 5.0 5.0 6.0 6.0 5.2 5.2 5.2 Principals 9.5 9.5 9.5 9.5 11.0 12.0 11.7 11.4 11.4 11.4 Teachers 165.5 166.3 172.4 180.0 185.3 183.8 188.5 179.6 178.1 178.1 Technical 6.5 6.5 6.5 6.5 6.5 3.0 3.5 9.0 9.0 9.0 Clerical and Aides 70.1 64.1 75.3 81.3 73.3 61.7 63.7 72.7 75.2 75.2 Maintenance/Warehouse 18.8 19.2 19.1 19.1 19.7 12.0 9.0 10.0 8.0 8.0 Custodial 23.4 21.2 21.2 21.7 21.6 22.5 26.3 27.6 30.6 30.6 Food Service 8.8 8.4 8.3 8.3 8.5 3.7 4.2 6.3 6.7 6.7 Total number of personnel 309.6 301.2 317.3 331.4 330.9 304.7 312.9 321.8 324.2 324.2 Number of students 2,486 2,602 2,632 2,802 2,773 2,793 2,809 2,897 2,815 2,798 (a) The majority of Village Schools are grades K- 12 (b) Based on Poll time equivalents. In addition to areawide and non-areawide powers, the Borough also supports a number of direct services provided at the request of the affected voters. These services include road maintenance, water and sewer, and fire protection. They are administered by the following service areas: Womens Bay Service Area This service area was initially formed in 1980 to provide road maintenance in the Bells Flats -Russian Creek area. The service area was amended in 1981 by voter approval to include fire protection. The Womens Bay Volunteer Fire Station was placed into service in 1983. The Womens Bay Service Area had a mill levy of 1.25 for fire protection and 2 mills for road maintenance in FY 00. Expenditures for fire service totaled $31,975 and $79,394 for road maintenance in FY 00. Service Area No. 1 Consisting of Mill Bay, Island Lake, and Spruce Cape, this service area was formed in 1978 and provides road services. This service area assessed a 1.00 mill levy in FY 00. Expenditures totaled $105,246 for road maintenance in FY 00. Service Area No. 2 This service area was formed by a vote of local area voters in 1991 to provide future water and sewer service within its boundaries, which encompasses a geographic area in Monashka Bay beyond Service Area No. I boundaries. This service area had no expenditures in FY 00. SERVICE AREAS Monashka Bay Road Service Area This service area was formed in Decem- ber 1982 for road maintenance. The service area assessed a mill levy of 1.5 mills for service in FY 00. Expenditures totaled $23,837 for road maintenance in FY 00. Bay View Road Service Area This area was formed by a vote in October, 1986, A levy of one mill for road maintenance was assessed in fiscal year 2000. Expenditures for this service area totaled $5,008 for road maintenance in FY 00. Fire Protection Area No. I Consisting of Service Area No. 1 and the Monashka Bay Area, this service area was established in 1968. The Borough completed construction and equipped the Bayside Fire Station in 1983 to serve this area. The service area assessed a 1.50 mill levy in fiscal year 2000. Expendi- tures totaled $142,682 for fire service in FY 00. Kodiak Island Borough Airport Fire Protection Service Area This fire district was formed by ordinance of the Kodiak Island Borough Assembly. This service area encompasses the property surrounding the state airport. The mill levy was 1.00 and expenditures for this service area totaled $15,218 in FY 00. Woodland Acres Street Light Service Area This service area was formed by a vote of the Woodland Acres area voters in 1989 to provide construction, operation and maintenance of street lights on public streets within this service area. The service area did not assess a mill levy in FY 00. Expenditures totaled $5,098 for street lighting in FY 00. FOR QUESTIONS OR CONCERNS REGARDING YOUR SERVICE DISTRICT AREA, PLEASE CONTACT YOUR SERVICE DISTRICT BOARD MEMBER: Current Service District Contacts Womens Bay Service Area Mike Wilchek 487-4540 Monashka Bay Road Service Area Dave Sundberg 486-5327 Service Area No. One Robert Greene 486-5803 Fire Protection Area No. 1 Scott Arndt 486-3745 Bay View Road Service Area Reed Oswalt 486-4180 Woodland Arcres Street Light Service Area Phil Cline 486-5968 SOLID WASTE MANAGEMENT The Kodiak Island Borough has a program to effectively manage solid waste in the Borough in an environmentally sound manner through source reduction/reuse and recycling, followed by treat- ment and disposal of the residual solid waste. Source reduction/ reuse simply means making an effort to produce less waste. For example, used fishing gear is segregated at the landfill and made available to Borough residents. Used lumber and other wood products (pallets, cabinets, etc.) are also segregated for public reuse. Paints collected under the household hazardous waste program are also available to the public. The Borough utilizes used oil in a special heating unit for the baler building to save on utility bills for the building. Recycling is even more effective than reuse because the waste is reprocessed to make new products. Office paper, cardboard, newspapers and magazines are collected in the Borough by Threshold Services, Inc. and shipped to Seattle to be turned into pulp and then new paper products. Metals, such as alu- minum cans, junk vehicles and scrap steel, are melted down and made into new cans, cars, and other metal prod- ucts. Treatment is the process of modify- ing waste to make it smaller, less hazard- ous or easier to dis- pose of. The Bor- ough operates a small incinerator to reduce medical waste and dead ani- mals to ash. The wastes are less dan- SOLID WASTE COLLECTION AND DISPOSAL Solid waste collection for the Kodiak Island Borough road sys- tem is contracted to Kodiak Sanitation. The U.S. Coast Guard provides collection services for the USCG base. Curbside pickup and dumpster service is provided inside the city limits and neigh- borhood dumpsters are provided outside city limits. In addition to regular garbage collection service, Kodiak Sanitation provides separate monthly pickup (except in winter) for large, bulky items, such as water heaters, refrigerators, freezers, stoves, bed frames, mattresses and furniture. Call Kodiak Sanitation at 486-5308 to request pick up of the large items. LANDFILL AND BALER FACILITY gerous and the quantity is greatly reduced through incineration. Household and commercial trash is compacted into bales before being placed in the landfill. The bales take up much less room than normal landfilling methods. Wood materials that are not scavenged are burned at the landfill to reduce the volume to ashes. Disposal refers to the final placement of the waste. For Kodiak Island Borough, the landfill becomes the final place for most of the waste not reused or recycled. Household hazardous waste is shipped off the island to regulated disposal facilities. The Bor- ough maintains a separate landfill area for asbestos disposal and another area for construction and demolition debris. Kodiak Island Borough Baler Facility charge. HOUSEHOLD HAZARDOUS WASTE Residential custom- ers are strongly en- couraged to sepa- rate household haz- ardous waste from their household garbage and deliver these items to the landfill. Household hazardous waste includes items such as lead -acid batteries, old paint, paint thin- ner, pesticides, cleaning products, used oil and wood preserva- tives. If you are unsure about a particular product being a house- hold hazardous waste, call the landfill or bring it to the landfill. There is no charge for taking household hazardous waste to the landfill/baler facility. Each year, a special Household Hazardous Waste Collection Day is held in the high school parking lot on Kodiak Spring Cleanup Day, the first Saturday in May. QUESTIONS ON SOLID WASTE? If you have any questions about disposal of solid waste, or are unsure of the proper disposal of any items, please call the landfill/baler facility (486-9345). CAPITAL IMPROVEMENT PROGRAM The Capital Improvement Program is a major policy statement of the Kodiak Island Borough Assembly. It identifies the foresee- able capital project needs of the Borough and area communities for the next five years and establishes a plan of action to accomplish those needs. The Borough, under its area -wide powers, coordinated and prepared the FY 2002-2006 Capital Improvement Program consisting of over 100 projects proposed by the various local government units in the Kodiak Island Borough. The compiled documents comprise a five-year Capital Improvement Program that is submitted to the Governor in November of each year for consideration in the capital budget, which he presents to "the legislature in January. The Capital Improvement Program, combined with the annual operating budget, provides the primary direction toward accomplishing the capital improvements required to meet the demands of growth and continue to support the economic well being of the community. Top 12 Priority Projects for FY 2002 — 2006 Listed below are the top twelve priority projects for the five- year Capital Improvement Program for FY 2002 — 2006 as established by Resolution 2000-28 adopted on September 21, 19'1 I. Resurfacing Rezanof Drive from Mill Bay Road to the Landfill and from the Coast Guard base gates to Womens Bay 2. Kodiak School Upgrades 3. Kodiak Career Technology Addition 4. North Star Elementary School Addition 5. Peterson Elementary School Addition 6. Kodiak State Airport Terminal Feasibility and Preliminary Engineering and Design 7. Ouzinkie School Gym Expansion 8. Kodiak Hospital Improvements 9. Anton Larson Bay Road Extension and Boat Launch Facility (ice free water) 10. Monashka Bay Public Boat Launch 11. Anton Larson Bay Road Switchback Realignment 12. Chiniak-Pasagshak Highways - Paving Each fiscal year, the Kodiak Island Borough Assembly funds capital projects, which are vital to the community. Many of these construction projects are improvements to our schools. Others are important for preventive maintenance, for the overall benefit of the community, or for economic development purposes. Many of these projects receive funding from federal or state grants. The following major capital construction projects were completed in fiscal year 2000: Major School Construction Projects Completed in FY 2000 Project Amount School Freezer Relocation $40,000 Major General Capital Construction Projects Completed in FY 2000 Project Amount EVOST Project $250,000 Fire Service Study $31,055 In addition to those projects completed in fiscal year 2000, the Borough had many projects ongoing as of June 30, 2000. Listed below is a summary of ongoing projects listed by the type of project along with the total budgeted funds to date. Summary of ongoing Capital Projects as of June 30, 2000 TOTAL APPROPRIATIONS Health $ 24,000 Education $ 1,728,190 Utility Projects $ 47,000 General $ 4.578.607 Total $ 6,377,797 THE BUDGET PROCESS Direct Services The Kodiak Island Borough delivers both direct and indi- rect services to the public. These services are either re- quired of municipal government by its political authority, or desired by its citizens. Examples of direct services pro- vided by the Kodiak Island Borough are: Hospital and Health Services School Construction Fire Protection Road Maintenance Solid Waste Collection and Disposal Parks and Recreation Animal Control Removal of Abandoned Vehicles In most budget decisions, the Assembly must determine the level of direct service desired by the citizens. The level of service determines the cost of that service. For example, if the desired level of service for rural road maintenance is raised from grading twice a year to once a month, the cost to the affected residents in that road service area will be higher. Indirect Services Indirect services are those provided by the Borough which are not directly evident to the public. They are either nec- essary to support the daily operation of the Borough, such as accounting services, or mandated by state or local laws, such as planning and zoning. The level of indirect, or supportive -administrative services, is determined by an analysis of the time and resource re- quirements to complete a specific task, such as the devel- opment of a comprehensive plan or management of a new construction project. Examples of indirect services are: Accounting and Finance Tax Assessment and Collection Information Systems Management Planning and Zoning Land Management Economic Development Engineering and Construction Inspection Human Resource Administration Legal Administration Input into Policymaking at the State and Federal Levels Citizens are encouraged to take an active role in determin- ing the level of direct services that should be provided by the Borough. Although the budgeting of indirect services is more complex, citizens are encouraged to share their ideas. The official Kodiak Island Borough Budget is adopted in June of each year and implemented for the fiscal year pe- riod of July 1 through June 30th of the following year. For example, the Fiscal Year 2000 Budget (FY 00) was adopted in June of 1999 to be in effect from July 1, 1999 through June 30, 2000. Preparation of the budget begins January 1 of each year, six months prior to implementation, in the following manner: The Assembly formulates goals and objectives, and presents general guidelines for budget priorities for the coming fiscal year, based upon the need for specific services and projects. 2.. The Manager requests department heads to draft departmental budgets based upon direct service re- quirements, and the indirect costs ofproviding those services. 3. The Manager assesses the total needs and resources of the Borough and prepares the draft budget based upon his judgment, departmental input, and the di- rection given by the Assembly. 4. The Assembly meets during work sessions to dis- cuss each departmental budget, and reviews the Manager's budget recommendations. At this time, the Assembly also considers the budgets prepared by the hospital board, the school board, and various service districts. While the Assembly does not con- trol the manner in which the school district budget is expended, they must decide how much will be allocated from local revenue. Budget review meet- ings usually occur during the months of April and May and are open to the public. 5. After many decisions and a final public hearing, the Assembly formally adopts the budget by ordinance in early June. The important decision made each year is how to provide quality service to the public without making taxes undesirably high to pay for those services. MILL RATE WHAT IS A MILL? A mill is a type of measurement. It is equivalent to one-tenth of one percent (.001) of a dollar. WHAT IS A MILL RATE? A mill rate is the number of mills each individual taxpayer will be assessed or charged per dollar value of prop- erty owned. For example, if your mill rate were 20 mills (.020), you would pay two cents on the dollar value of your property for taxes. WHO DECIDES WHAT THE MILL RATE WILL BE? The Borough Assembly decides the mill rate for the Borough and the City Council and Service District Advisory Boards determine the mill rates for their re- spective areas. These mill rates are added together to get a total mill rate for each geographic area. HOW DO THEY DECIDE? The governing bodies determine how much money will be needed to run their respective governments. Given this information, the Assembly then proposes a budget. The approximate expected revenues from sources such as severance taxes, sales taxes, business licenses, grants, and state and federal sources is factored into the amount needed to run the government and provide services. The additional money needed to balance the budget is then figured and raised by collecting a property tax. This additional money, divided by the tax base is the mill rate for that budget year. MILL RATE = The amount necessary to balance the budget Tax Base (assessed value of taxable property) HOW IS THE VALUE OF THE TAX BASE DETERMINED? The value of the tax base is found by adding up the assessed value of all taxable real and personal property within the boundary of the taxing area (Borough, City, Service Area). HOW IS THE PROPERTY TAX DETERMINED? Individual prop- erty taxes are determined by multiplying the assessed value of the prop- erty by the mill rate. In other words, your property taxes equal the assessed value of your property multiplied by the mill rate or rates for your tax collection area. Example: If your home is located within the city limits of Kodiak and is valued at $100,000, the taxes for FY 99 would be $1125. This is based upon a mill rate of 9.25 levied by the Borough in addition to a mill rate of 2.00 by the City for a total of 11.25 mills ($100,000 x .01125 = $1125.) Example: If you live in the Monashka Bay Road Service Area, and your house is valued at $100,000, your taxes would be $1225, based upon a Borough mill levy of 9.25, plus a mill levy of 1.50 by Fire Protection Area No. 1, and a Monashka Bay Road Service Area levy of 1.50 for a total of 12.25 mills ($100,000 x.01225 = $1225.) WHEN ARE PROPERTY TAXES DUE? Property tax assessment notices are mailed on April 1 for the calendar year tax role. Property owners have until April 30 to appeal an assessment. The mill rate is established with the fiscal year budget adoption in June, and tax bills are mailed to property owners on July 1. The full payment is due by October 15", or half payments are due by August 15th and November 15". Penalties and daily interest charges are added to late payments. MCN. YFAR 2000 )411.1. RA I LS FY 99 Hmr gh Gly of Rnad Etre QirzVl Total Aren TAX COLikTTiON AREA Fund Kodiak Fund Fund lighting %11111ate !oxideIA,IKfid k II' § ?.Z' hen Ni'1 1 _=<I l 75 Monxshka fi,, �- Road Sen 1.,r Amv Fire Protection Area No.1 "➢isnid 915 2(XJ 11.25 "25 Service Area No -1 Road Service Area Fire Protection Area N. 1 1 -' vu he iW 1.25 tz so ,. Woodland Aces vis Service Area Nn 1 - Fire Protection Area No. l 1.50 Woodland Acres Street Lights 000 11.25 SEVERANCE TAX Beginning July 1, 1991, the Assembly levied a severance tax within the boundaries of the Kodiak Island Borough. This is a tax on the extraction of natural resources and was levied on all fish, timber, minerals, rock, sand and gravel. The tax rate is equivalent to the mill rate and the estimated revenues from this source help to keep the Borough property tax levy as low as possible to balance the budget. The assembly, mayor, and staff continue to work on developing methodologies to expand the tax base instead of relying exclusively on property tax increases to meet the demand for additional revenue as state funding continues to shrink. SEVERANCE TAX COLLECTIONS PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Percent of Delinquent total tax Fiscal Total Current tax tax Total tax collections year tax levy collections collections collections to tax levy 1991 $ 2,237,629 $ 2,189,270 $ 17,254 $ 2,206,524 98.6 1992 3,736,674 3,654,535 22,178 3,676,713 98.4 1993 4,045,235 3,907,612 60,633 3,968,245 98.1 1994 4,353,371 4,176,676 21,295 4,197,971 96.4 1995 5,141,728 4,955,108 56,140 5,011,248 97.5 1996 5,466,066 5,249,168 56,531 5,305,699 97.1 1997 5,576,773 5,478,939 96,490 5,575,429 100.0 1998 7,384,490 7,121,678 77,576 7,199,254 97.5 1999 7,704,172 7,575,491 314,367 7,889,858 102.4 2000 71743,649 7,507,018 175,066 7,682,084 99.2 Source: Borough general ledger E7 FY 99 FY 00 Fish 900,331 i,051,378 Mining 10,269 11,450 Logging 95,690 112.822 TOTAL $1,006,290 $1,175,650 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Percent of Delinquent total tax Fiscal Total Current tax tax Total tax collections year tax levy collections collections collections to tax levy 1991 $ 2,237,629 $ 2,189,270 $ 17,254 $ 2,206,524 98.6 1992 3,736,674 3,654,535 22,178 3,676,713 98.4 1993 4,045,235 3,907,612 60,633 3,968,245 98.1 1994 4,353,371 4,176,676 21,295 4,197,971 96.4 1995 5,141,728 4,955,108 56,140 5,011,248 97.5 1996 5,466,066 5,249,168 56,531 5,305,699 97.1 1997 5,576,773 5,478,939 96,490 5,575,429 100.0 1998 7,384,490 7,121,678 77,576 7,199,254 97.5 1999 7,704,172 7,575,491 314,367 7,889,858 102.4 2000 71743,649 7,507,018 175,066 7,682,084 99.2 Source: Borough general ledger E7 DEBT SERVICE The current indebtedness of the Kodiak Island Borough is made up of the 1989, 1993, 1994 and 1998 General Obligation bonds, which were issued for school and hospital construction and improve- ments. The balances outstand- ing on these bonds are $1,155,000, $5,295,000, $1,030,000 and $9,545,000 respectively, for a total current indebtedness of 17,025,000. $1,800 i $1,600 - $1,400 $1,200 $1,000 $800 $600 410 $400 $200 $0 — Debt per Capita 1,5601 515 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 The Kodiak Island Hospital and the Mental Health Center are owned by the Kodiak Island Borough and are operating under leases with Providence Health Systems of Alaska. Proceeds from the hospital lease will pay off a $4 million hospital remodel energy loan and build a reserve for future building maintenance costs. Annual excess earnings are split equally between Providence and the Borough. Any annual operating losses are the responsibility ofProvidence Health System. FACILITIES FUND In fiscal year 1996, the Borough sold Shuyak Island to the State of Alaska via the Exxon Valdez Oil Spill Trustee Council. Proceeds from this sale were used to establish the Facilities Fund and to build the Kodiak Fisheries Research Center. Interest earned in the Facilities Fund can be used to pay for capital projects, debt service and building insurance. $20,000.000 $18,000.000 $16,000,000 $14,000.000 $12,000,000 $10,000,000 $8.000.000 $6.000,000 $4,000.000 $2,000,000 $0 Increases in Fund Balance Facilties Fund (created by the sale of Shuyak Island) FY1996 FY 1997 FY 1998 FY1999 FY2000 STATISTICS KODIAK, ALASKA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Fiscal 2.3% School Unemployment year Population (a) enrollment (b) rate (c) 1991 15,679 2,486 8.2 1992 15,535 2,602 5.1 1993 15,535 2,632 6.0 1994 15,245 2,802 9.4 1995 15,575 2,773 11.2 1996 15,400 2,793 13.7 1997 14,058 2,809 7.7 1998 14,181 2,897 8.2 1999 13,848 2,815 6.8 2000 13,989 2,798 7.2 Sources: (a) Per Borough Community Development Department, except 1992 and 1993. 1996, 1997, and 1998 data per State of Alaska, DCRA certified population. (b) Kodiak Island Borough School District. (c) Department of Labor, Anchorage. TEN LARGEST PROPERTY TAXPAYERS YEAR ENDED JUNE 30, 2000 Percentage of total 1999 assessed Assessed value valuation International Seafoods 2.3% $ 16,796,047 Western Alaska Fisheries 1.9% 13,548,984 Trident Seafood Corp 1.6% 11,747,515 T.U. of the Northland 1.6% 11,728,531 Alaska Pacific Seafoods 1.6% 11,121,991 King Crab /Ocean Beauty 1.4% 10,270,641 CSX Lines LLC 1.3% 9,059,159 Safeway/MBPA 1.3% 9,034,762 Kodiak Fishmeal Co. 1.2% 8,898,859 Walmart 0.8% 5,486,700 Totals 15.0% $ 107,693,189 Source: Borough tax records Percentage Net of total taxes taxes levied levied $ 173,885 2.3% 130,265 1.7% 118,299 1.5% 118,232 1.5% 111,230 1.4% 106,212 1.4% 98,307 1.3% 97,914 1.3% 87,433 1.1% 61,725 0.8% $ 1,103,502 14.3% 1999-2000 KODIAK ISLAND BOROUGH BOARDS AND COMMITTEES .................................................................. Gary Stevens '01 ScottAmdta00 GregSpalinger`00 Patricia Branson '0 1 Robin Heinrichs `01 Tom Abell `02 Tuck Bonney (Deputy Mayor) `02 Darlene Tumer `02 Sd ool Board • Clarence W. Selig Jody Spivey Winners Bay Service Area Advise, Board ' PatJacobson Walter Stewam Ellen Cloudy, KIB staff ' Mike Wilchek Alice Knowles Linda Freed, KIB Staff Fred Waltman, II Noun Wooten Data Proceasine Steerina Committee David Conrad Jack McFarland Woodland Acres Street Unhtine Service Area Ad- Dave Jensen Linda Estes Jeff Stephan yBory Board Gary Stevens Edward Gondek Dan Canavam USCG Rep. Phillip Cline Karleton Short Linda Hinson Greg Spahmena— Assembly Rep. Kevin Arndt Betty Walters Tom Tmsvig Tuck Bonney — Assembly Rep. David Jones Dale L. Rire, ex -officio Scott Amdt— Assembly Rep. Citizens Board of Ecualizai on Jim Nagen Sheila Robert - Staff Jim Carmichael Joey Kay Hutcherson, Student Rep, Wayne Stevens Hoso tat & Health Facilities Adv sory Board • Mark Buckley Gil Bane Fred Bugarin Michael Machulsky Mary Monroe Gretchen Saupe Wayne Stevens Pat Branson, Assembly Rep Phil Cline, Administrator, ex -officio Welby Jensen, Chief of Staff Robyn Holloway, KID Staff Mental Health Center Adv sory Board Jody Burnham This Falcone David Davis Patricia Smkley Crowe Steven Honnold Jeff Knatuf Cecil Barney Pam Foreman Darlene Turner, Assembly Rep. Lt. Tish Palmer, USCG Rep, ex -officio Robin Gardner, MHC Staff Karen Perkins, KAMI Rep., ex-officuo Welby Jensen, MD, Providence Rep, ex-offi cio Karen Berrien, support staff Planning and Zan a, Commiscinn Donna Bell Robert Himes Robert Lindsey Greg Raze Robbie Scheidler Koreans Hackett Than Hurley Cheryl McNeil Kelcy LaGasse, Alternate Pat Carlson, KID staff Patti Kirkpatrick, KIB staff Parks and Recreation Committee • David Odell Steven Honnold Kenneth Hansen Vincent Walser Walter Stewart, P&Z Rep, Kate Wynne Tom Abell, Assembly Rep. Ian Fulp, City Rep., ex -officio Clasen Holland, State Rep., ex-ofido Joe Floyd, School Board Rep Linda Freed, KIB Rep Beildine Crile Board of Anneals/ fArcKteduml Review Btrardl Gerald Cloudy Gregg Hacker Jay Johnston Dale Soughers Robin Heimichs, Assembly Rep. Bob Tucker, KIBSD Rep., ex -officio Jack McFarland, School Board Rep., ex offi cio Dave Jensen, KIB Rep., ex -officio Personnel Advis ry Board Paul Alexander Bill King Chris Nielsen Warren Russell Fire Protection Area No_ I Advisory Board ScoR Arndt Jeff Holcomb Kevin Arndt Eric McTinhn Eileen Preussen Robes Humes, ex-officuo Bay View Road Service Area Advisory Beard Fred Robert Dawn Black Marcia Oswalt Reed Oswalt James Schauff Monashka Bay Road Service Area Adv sory Board Dave Smudge, Alayne Larsen Jeff Hamer Comae Estelle Fore Jack McFarland Emergency Services Orrati ran on Carolyn Floyd Dave Jensen Bill Jones, City Manager, City of Kodiak. Gary Stevens John Miller, Capt. USCG Service Area No I Advisory Boats • Kevin Arndt Robes Greene Scan Arndt Robert Casey Ed Mahoney Jennifer Spencer Kaye McClain Kodiak Area Transit System Committee Pat Branson Wanetta Ayers Marie Burnt Tim Blon Steven Honnold Don Roberts Tom Abell, Assembly Rep., ex -officio IoM Miller, USCG, ex -officio Mary Monroe, City Rep, ex -officio Linda Free, KIB Staff Armour Adv sory Committee ' Stash Anderson Charles Barber Dean Andrew Bill King Ruth Lovejoy Arlene Mauldin Donald Rossiter Wayne Stevens John Chya, ex -officio CDR Jim Payer, USCG ex -officio Borough Clerk's Once, KIB staff Service Area No 2 Commitment Connie Estelle Ferre Noonan Mullan Amon Fire Protection Diarist Adviaory Board Fred Ball Michael Machulsky Rene Sy ' Indicates chair