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FY1999 Popular Annual Financial ReportKodiak Island Borough Annual Report for Fiscal Year 1999 (July 1, 1998 through June 30, 1999) Dear Fellow Kodiak Island Resident, I am pleased to present the Fiscal Year 1999 Annual Report that is compiled to inform you about your Borough's accomplishments. The Kodiak Island Borough Assembly and I have worked with the various City Councils, the Kodiak Island Borough School Board, and the U.S. Coast Guard to establish a positive relationship. This has greatly contributed to the Assembly's goal to provide cost-effective services for the residents of Kodiak that will ensure a stable economy; quality education; a healthy, safe, and diversified lifestyle; and promote maximum citizen participation. 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 commer- cial fishing, logging and tourism, with commercial fishing being the largest. The Kodiak Island Borough Assembly 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. 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. Our schools continue to provide the highest level of academic studies despite reductions in state revenues. The Kodiak Island Borough Assembly 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 future is to secure funding to ensure that each child is afforded a high quality education. The Borough continues to work on the 15 priority projects for FY 2001 — FY 2005. In addition to the completion of the Hospital facility and the Kodiak Fisheries Research Center, there are other general capital construction projects completed as well as major school construction projects. It is the goal of the Kodiak Island Borough to maintain a General Fund balance of at least 1 million dollars. The fund balance as of June 30, 1999 was $783,459. This was less than the June 30, 1998 balance of $1,569,205. It is the goal of the assembly to increase the fund balance again to 1 million dollars and maintain this amount in the next three years. The mission statement of the assembly is to provide cost-effective services for the residents of the Kodiak Island Borough that will ensure a stable economy, education, and a healthy, safe, and diversified lifestyle; and promote maximum citizen participation. The assembly formulates goals and objectives each fiscal year for the mandated powers, adopted powers, and service districts. I appreciate the Borough staff and their dedication to provide the best service possible to the residents of our community. I sincerely appreciate the many residents who participate on committees and advisory boards. Your active participation in our government has enabled us to provide one of the best local governments in the country. Representing you as Mayor of the Kodiak Island Borough has been a privilege and I wish you and the community a prosperous future. Sincerely, Dr. Gary L. Stevens, Borough Mayor I INTRODUCTION This report is prepared annually by the Mayor of the Kodiak Island Borough. Its pur- pose is to inform Borough residents and to provide a better understanding of lo- cal government. The report outlines services and func- tions performed by the Bor- ough and presents financial information for Fiscal Year 1999 (July 1, 1998 - June 30, 1999). Comparisons to previous years and projec- tions for future expendi- tures are included to pro- vide a complete summary of the Borough's past ac- complishments. A com- plete copy of the audited Kodiak Island Borough Comprehensive Annual Fi- nancial Report for Fiscal Year 1999 is available for review at the A. Holmes Johbson library. The Kodiak Island Bor- ough encompasses the en- tire geological formation known as the Kodiak Ar- chipelago. It includes all land within the Kodiak Is-' land group from the Trin- ity Islands on the south to the Barren Islands on the north. The estimated size of the Kodiak Island Bor- ough is 15,265 square miles of water and 7,130 square miles of land. The annex- ation in 1989 of the the watershed draining into Shelikof Strait on the Alaska Peninsula into the Kodiak Island Borough added an abundance of his- toric, geographic, social, cultural and economic as- sets for the benefit of the residents of the Kodiak Is- land Borough. The Borough was incorpo- rated on September 24, 1963 as a second class bor- ough. In October, 1997, Kodiak Island Borough voters accepted a proposed change from a Strong Mayor to a Manager plan of government. This change took place on Oc- tober 19, 1998, requiring numerous Borough code changes to grant adminis- trative authority to a bor- ough manager. The man- ager is hired and authorized by the Kodiak Island Bor- ough Assembly to manage Borough affairs, including operations, personnel, and financial management. The Borough voters will con- tinue to elect a Mayor as a ceremonial figure for certain Borough affairs. The Mayor will also be the presiding officer of the Assembly and will vote on items before the Assembly in the event of a tie vote. By Alaska State Statute, the Kodiak Island Borough is responsible for four areawide powers encom- passing all of the Kodiak Is- land Borough: 1) Planning and Zoning, 2) Assessment and Taxation, 3) Education, and 4) Health. Additionally, the Borough is responsible for nonareawide powers out- side city limits, which in- clude: 1) Solid waste collec- tion and disposal, 2) Animal Control, 3) Parks and recre- ation, 4) Economic develop- ment, and 5) Special service districts for roads, water, sewer, and fire protection. 0 FINANCIAL DATA FY 1999 Overal Budget Summary General Fund 11,055,210 Special Revenue Funds 7,485,014 Debt Service Funds 2,864,170 Capital Project Funds 40,479,962 Enterprise Funds 6,559,940 Internal Service Funds 703,840 Total 69,148,136 Fy 1999 Overall Budget Caplan P gecl Funds net 41k Special Revenue Funds 11% TOTAL BOROUGH -ALL FUNDS REVENUE General Fund Community Mental Health Child Care Assistance Welfare to Work Budget FY99 $ 11,055,210 Land Sales Kodiak Area Transit System Building & Grounds Coastal Management Local Emergency Planning Committee Women's Bay Road Service District Service District N0.1 Service District No.2 Monashka Bay Road District Bayview Road Service District Fire Protection Area No.1 Women's Bay Fire Department KIB Airport Fire District Woodland Acres Street Lights Kodiak Arts Council Facilities Tourism Development Debt Service Capital Projects Solid Waste Disposal Enterprise Fund Hospital Enterprise Fund Kodiak Fisheries Research Enterprise Fun 911 Service Enterprise Fund hformation Management Systems F ter,. Finds 9% emzi se,vm Funds 1% TOTAL REVENUE ALL FUNDS EXPENDITURES General Fund Community Mental Health Child Care Assistance Welfare to Work Land Sales Kodiak Area Transit System Building & Grounds Coastal Management Local Emergency Planning Committee Women's Bay Road Service District Service District No.1 Service District No.2 Monashka Bay Road District Bayview Road Service District Fire Protection Area No.1 Women's Bay Fire Department KB Airport Fre District Woodland Acres Street Lights Kodiak Arts Council Facilities Tourism Development 518,234 114,400 195,930 370,000 552,440 36,090 50,000 121,170 190,590 200 73,850 5,470 329,420 56,900 30,640 10,470 69,610 4,726,000 33,600 2,864,170 40,479,962 2,580,020 1,457,620 2,454,500 67,800 703,840 227,132 137,389 604,122 36,090 32,204 110,417 96,021 159 24,170 5,674 308,669 68,300 29,764 2,234 44,696 4,681,413 39,609 12,441,928 40,479,962 2,557,006 1,318,305 1,782,733 75,951 632,381 (31,202) 232,611 (51,682) 17,796 10,753 94,569 41 49,680 (204) 20,751 (11,400) 876 8,236 24,914 44,587 (6,009) (9,577,758) 23,014 139,315 671,767 (8,151) 71,459 69,148,136 76,502,405 (7,354,269) $ 11,055,210 Debt Service Capital Projects Solid Waste Disposal Enterprise Fund Hospital Enterprise Fund Kodiak Fisheries Research Enterprise Fun 911 Service Enterprise Fund mormation Management Systems TOTAL EXPENSE ALL FUNDS 518,234 114,400 195,930 370,000 552,440 36,090 50,000 121,170 190,590 200 73,850 5,470 329,420 56,900 30,640 10,470 69,610 4,726,000 33,600 2,864,170 40,479,962 2,580,020 1,457,620 2,454,500 67,800 M3,84U 10,957,892 250,000 497,027 93,729 191,663 360,813 522,297 36,090 32,204 95,220 142,394 1 57,785 8,397 152,474 39,307 14,234 5,065 42,337 476,000 38,596 12,574,290 36,290,670 2,533,365 874,324 931,711 31,379 68b,2Ub 691148,138 6/,934AIU 97,318 (250,000) 21,207 20,671 4,267 9,187 30,143 17,796 25,950 48,196 199 16,065 (2,927) 176,946 17,593 16,406 5,405 27,273 4,250,000 (4,996) (9,710,120) 4,189,292 46,655 583,296 1,522,789 36,421 18,63b 1,21J,bbb REVENUE LESS EXPENSE - 8 567 935 (8 567 9351 Budget Actual less FY99 Actual $ 10,172,146 $ 883,064 2,678 (2,678) 497,522 20,712 93,729 20,671 227,132 137,389 604,122 36,090 32,204 110,417 96,021 159 24,170 5,674 308,669 68,300 29,764 2,234 44,696 4,681,413 39,609 12,441,928 40,479,962 2,557,006 1,318,305 1,782,733 75,951 632,381 (31,202) 232,611 (51,682) 17,796 10,753 94,569 41 49,680 (204) 20,751 (11,400) 876 8,236 24,914 44,587 (6,009) (9,577,758) 23,014 139,315 671,767 (8,151) 71,459 69,148,136 76,502,405 (7,354,269) $ 11,055,210 Debt Service Capital Projects Solid Waste Disposal Enterprise Fund Hospital Enterprise Fund Kodiak Fisheries Research Enterprise Fun 911 Service Enterprise Fund mormation Management Systems TOTAL EXPENSE ALL FUNDS 518,234 114,400 195,930 370,000 552,440 36,090 50,000 121,170 190,590 200 73,850 5,470 329,420 56,900 30,640 10,470 69,610 4,726,000 33,600 2,864,170 40,479,962 2,580,020 1,457,620 2,454,500 67,800 M3,84U 10,957,892 250,000 497,027 93,729 191,663 360,813 522,297 36,090 32,204 95,220 142,394 1 57,785 8,397 152,474 39,307 14,234 5,065 42,337 476,000 38,596 12,574,290 36,290,670 2,533,365 874,324 931,711 31,379 68b,2Ub 691148,138 6/,934AIU 97,318 (250,000) 21,207 20,671 4,267 9,187 30,143 17,796 25,950 48,196 199 16,065 (2,927) 176,946 17,593 16,406 5,405 27,273 4,250,000 (4,996) (9,710,120) 4,189,292 46,655 583,296 1,522,789 36,421 18,63b 1,21J,bbb REVENUE LESS EXPENSE - 8 567 935 (8 567 9351 GENERALFUND REVENUE 155,800 (15,800) Budget 254,593 Budget Actual less 850 FY99 FY99 Actual Taxes 318,896 304 443,590 Real and Personal $6,601,050 $6,512,697 $ 88,353 Severance 917,000 1,006,291 (89,291) Penalties and Interest 180,000 175,399 4,601 Total 7,698,050 7,694,387 3,663 Intergovernmental Revenue 94,670 92,273 2,397 National Wildlife & Forest Fund 177,899 177,960 (61) Payment in Lieu of Taxes 474,000 459,956 14,044 imp AK Municipal Assistance Fund 197,000 197,785 (785) State Shared Revenue 290,060 290,063 (3) Raw Fish Tax 911,130 918,009 (6,879) Miscellaneous 300 - 300 Telephone & Electric 8,000 12,029 (4,029) Emergency Medical Services 33,000 30,665 s.a T..a 2,335 ,e% Total 2,091,389 2,086,468 4,921 Licenses and Permits Building 50,000 60,708 (10,708) Community Development 23,300 25,815 (2,515) Total 73,300 86,523 (13,223) Investment Earnings & Others Sale of maps 2,000 567 1,433 Investment Earnings 251,833 238,515 13,318 Other 16,350 33,054 (16,704) Total 270,183 272,136 (1,953) Use of Fund Balance 922,288 - 922,288 Transfers - 32,632 (32,632) TOTAL GENERAL FUND REVENUES 11,055,210 10,172,146 883,064 EXPENDITURES General Government SuDDort Borough Assembly Legal Management Clerk Finance Assessing Community Development School District Support Health & Sanitation Education, Culture & Recreation Economic Development General Administration Building Inspection Emergency Preparedness $ 131,000 $ 136,417 $ (5,417) 140,000 155,800 (15,800) 232,200 254,593 (22,393) 288,570 287,720 850 587,200 562,370 24,830 319,200 318,896 304 443,590 417,268 26,322 7,044,320 7,044,970 (650) 1,189,300 1,179,420 9,880 218,930 208,930 10,000 77,000 72,225 4,775 274,730 224,626 50,104 94,670 92,273 2,397 5,500 2,384 3,116 Transfers 9,000 - 9,000 TOTAL GENERAL FUND EXPENSES 11,055,210 10,957,892 97,318 REVENUE LESS EXPENSE $ - $ 1785,7461 jZaL746 64% Fiscal Year 1999 General Fund Revenues Umm ,Pe itsFess as an in glaaa Beam Fiscal Year 1999 General Fund Expenditures "aecrearen 2% anmurvry oel 10"a t T-- ca eel cow.anan 19% 9% BOROUGH DEPARTMENTS Kodiak Island Borough Organiutbnal Chart Fiscal Year 1999 EM W Baagh Mrya Bo hA--" B.*Aft ' 9vaghaaA oroeYaar. naa'cuvcbn Mn.aVaGe Asmba FsswreAWre9emen Ofisr ea„ee kislarl Gre Clid NhO llmnin Oaxb Cvmaairy De�ebpint Rretla Bpenirgfa3tiutinb Nwn Aaotl<FamM1UB mage Mn9 gPCMailemu 69rca MaYlvama WaVtt RopalYMpaett I AtimYntPlvar I I KfHCFmylual I I mark Tru I I raiwa Ispa®Ib I I smt"III I I rm 4. 1 aeln Olaan 11 Bab gpaAal gab Opaaal Bin Opnela l he Borough is divided into eleven functional areas or departments including Legislative, Legal, Mayor, Clerk, Finance, Assessing, Com- munity Development, Engineering and Fa- cilities, Management Information Ser- vices, General Administration, and Build- ing Inspection. 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 mem- bership of the Borough in various organi- zations such as the Alaska Municipal League and Southwest Alaska Municipal Conference. This department also includes 5 Smelyylll 4 Aussirem Gakl the expense of retaining legislative lobby- ists 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 administrative 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 person- nel administration. The Manager reports to the Assembly on operations and finances Pram O'etla Crtda AlidanetiulSaw.ss GnealA®alaiA Sdar9htarte NaAs1 A.."T.*.m aAN g,e —siPersa A="Tnh[eN P** l_ Sys_o-I )ayvre AtssN'm PmaianMiibhab IFNNfisrma BeimeO¢wlert Txh®nl aevetrylll of the Borough. In Fiscal Year 1999, the Manager's office consisted of the Man- ager an Administrative Assistant and the Resource Management Officer, who managed and developed utilization plans for Borough land and resources. The Assistant Fire Chief serving Fire Protec- tion Area No. 1 (Bayside Fire Station) also reports 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. Re- cently, the Clerk's office also assumed the responsibilities as the local passport facil- ity. FINANCE The Finance Department is responsible for all aspects of financial management of the Kodiak Island Borough. This includes ad- ministration and collection of all property taxes within the Borough, annual budget preparation and monitoring of the budget process, coordination of all bond and in- vestment activities, accounting for capital projects and grant reporting activity. The Finance Department also operates as a cen- tral treasurer for all Borough funds and in- corporates receipts and disbursements for the Kodiak Island Borough School District. Along with the regular internal operating activities such as accounts receivable, pay- able and payroll, the Finance Department also performs the accounting and collec- tion activities for garbage collection ser- vices within the Borough and landfill dis- posal fees. The Child Care Assistance of- fice (described below) is also under the auspices of the Finance Department. ASSESSING The Assessing Department is the property appraisal division of the Borough and is responsible for maintaining current and comprehensive data files on every parcel of real property in the borough. This de- partment maintains assessments (apprais- als) of all personal (equipment, boats, and office furniture) and real property (land and structures). The tax roll for FY 1999 included 4,993 parcels of real property. The Assessing Department stays abreast of up-to-date market and economic trends that are reflected in the assessment valua- tion process, thus maintaining equity in the ad valorem tax program (ad valorem tax: tax based on current value of property.) This department assists the Board of Equal- ization in appeal hearings where any tax- payer may appeal an increase in property tax valuation. The department also assists the Resource Management Officer in the management of Borough lands by tender- ing property appraisal and consulting land management services. COMMUNITYDEVELOPMENT The Community Development Department is the Borough's land use planning depart- ment. The department serves as staff sup- port for the Planning and Zoning Commis- sion, Outer Continental Shelf Advisory Council, and other special task forces as needed. The department also serves as the primary liaison between the villages and the Borough government in planning and zoning matters. The department adminis- ters the zoning and land use planning or- dinances along with other related ordi- nances requiring enforcement and over- sight. The department also administers the Coastal Management Program and con- tinually seeks other grant opportunities re- lated to Community Development pro- grams. ENGINEERING AND FACILITIES This department coordinates, implements and monitors capital construction projects and the maintenance of Borough facilities. The staff manages service district contracts and acts as a liaison for the service dis- tricts with the public and elected officials. The Engineering & Facilities Department is responsible for the Municipal Solid Waste Collection and Disposal Program, which includes the operation and mainte- nance of the baler facility and landfill. Maintenance and upkeep of Borough owned vehicles is also the responsibility of this department. The Environmental Engineer is responsible for required Safety Programs for the Borough. Additionally, the maintenance and upkeep of the recently completed Kodiak Fisher- ies Research Center falls within the Engi- neering/Facilities Department. The ten- ants: NOAA, Alaska Department of Fish and Game, and the University of Alaska pay lease funds to participate in a multi - agency research facility committed to the preservation of the North Pacific marine ecosystem and resources. MANAGEMENT INFORMATION SER- VICES The Management Information Services Department is a service department respon- sible for managing the computer informa- tion systems in the borough and the school district. This department is organized around an IBM AS/400 mainframe com- puter 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 streamlin- ing inter -departmental procedures and re- ports. GENERAL ADMINISTRATION The General Administration Department produces a wide range of administrative services for the Borough, including per- sonnel record-keeping. Included in this budget category are such costs as audit expenses, insurance, and staff training. BUILDING INSPECTION Borough building inspection services are provided by the City of Kodiak Building Inspection Office through a contract be- tween the Borough and the City. During the past fiscal year, 148 building permits were issued for projects in the Borough (outside city limits) amounting to $7,822,377 worth of construction. The de- partment is staffed by two building inspec- tors who are employees of the City of Kodiak. CHILD CARE ASSISTANCE PROGRAM The local Child Care Assistance Office has been serving Kodiak families since 1975. Program subsidy and administrative 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 child care is a critical issue in a parent's ability to obtain and maintain stable employment and in- come. Eligible parents may select the day care home or center that best meets their needs. The FY 99 program served an av- erage of 65 Kodiak families with 118 chil- dren each month. Program funds of $445,947 were distributed to local child care providers for their services to fami- lies enrolled in the Child Care Assistance programs. The local Child Care Assistance Office is located in the Borough building. Program Director, Mary Lynn McFarland, can be reached by phone for appointments at 486-9375. 1/n PUBLIC EDUCATION The Borough has delegated the operating responsibility for education to the Kodiak Island Borough School District. In accordance with state statutes, the Bor- ough retains ownership of all school facilities and in- curs the debt from the ac- quisition and construction of any new facilities. The Borough and School Dis- trict maintain separate ac- counting records of finan- cial activity but utilize a central treasury for the management and investing of funds. Fiscal Year Assessed Value 1990 436,800,264 1991 479,942,347 1992 516,304,869 1993 559,359,084 1994 591,436,473 1995 614,570,795 1996 640,462,576 1997 654,134,651 1998 681,342,892 1999 686,856,392 Number of schools: City of Kodiak Elementary City of Kodiak Junior High City of Kodiak High School Village Schools (a) Number of personnel (b) Administration Principals Teachers Technical Clerical and Aides Maintenance/Warehouse Custodial Food Service Total number of personnel Number of students The Kodiak Island Borough School District offers qual- ity education programs for students within the Bor- ough. All curricula are aligned with the Content and Performance Standards for Alaska Students. Student performance in reading, writing and math is assessed by state and District require- ments. California Achieve- ment Tests indicate that Amount of Millage Contribution Equivalent 2,715,080 6.22 2,838,397 5.91 3,620,202 7.01 3,864,691 6.91 3,990,847 6.75 3,770,399 6.14 4,574,068 7.14 4,839,887 7.40 5,715,361 8.39 6,492,876 9.45 Kodiak students score at the national average. Bench- mark Examinations and the Alaska High School Gradu- ation Qualifying Examina- tion were added in the year 2000. The District has a Strategic Plan in effect which focuses on student achievement, staff success, family in- volvement, alternative edu- cation, health and safety ini- tiatives, facilities and bud- get. Various committees meet throughout the year to develop and implement ef- fective ways to continue the pursuit of academic excel- lence. The Mission State- ment, developed in 1991, continues to guide District decisions: The Kodiak Island Bor- ough school District, in close cooperation with our diverse island connnunity, exists to provide an educa- tionalprograrn ofthe high- eststatmiradd"enpou ers all students to achieveper- sonal andacademic excel- lence while developing theirfull potential as re- sponsr7rle, productive cidZem - 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 of- fered. Students are recog- nized for their academic and athletic achievement through programs sponsored by various local organiza- tions and advisory groups. KODIAK ISLAND BOROUGH SCHOOL DISTRICT 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 3 3 3 3 3 3 4 4 4 4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 8 9 9 9 9 9 9 9 9 9 6.9 7 6 5 5 5 6 6 5.2 5.2 8.3 9.5 9.5 9.5 9.5 11 12 11.65 11.41 11.41 157.85 165.5 166.3 172.4 180 185.3 183.8 188.48 179.6 178.1 6.25 6.5 6.5 6.5 6.5 6.5 3 3.48 8.99 9 70.72 70.1 64.1 75.3 81.3 73.3 61.7 63.68 72.68 75.2 19.9 18.8 19.2 19.1 19.1 19.7 12 9 10 8 23.16 23.4 21.2 21.2 21.7 21.6 22.5 26.27 27.62 30.6 8.4 8.8 8.4 8.3 8.3 8.5 3.7 4.19 6.29 6.7 301.48 309.6 301.2 317.3 331.4 330.9 304.7 312.75 321.79 324.21 2,321 2,404 2,525 2,598 2,748 2,711 2,872 2,862 2,851 2,798 SERVICE DISTRICTS In addition to areawide and non-areawide powers, the Borough also supports a num- ber of direct services provided at the re- quest of the affected voters. These ser- vices include road maintenance, street lighting, and fire protection and are admin- istered by the following service areas: Womens Bay Service Area This service district was initially formed in 1980 to provide road maintenance in the Bells Flats -Russian Creek area. The ser- vice district 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 District had a mill levy of 1.25 for fire protection and 2 mills for road maintenance in FY 99. Expenditures for the fire service district totaled $39,306 and $95,221 for road maintenance in FY 99. Service District No. 1 Consisting of Mill Bay, Island Lake, and Spruce Cape, this service district was formed in 1978 and provides road services. This service district assessed a.75 mill levy in FY 99. Expenditures for this service district totaled $142,393 for maintenance in FY 99. Service Area No. 2 This service district was formed by a vote of local area voters in 1991 to provide fu- ture water and sewer service within its boundaries, which encompasses a geo- graphic area in Monashka Bay beyond Service District No. 1 boundaries. This district had expenditures of $0 in FY99. Monashka Bay Road Service Area This service district was formed in De- cember 1982 for road maintenance. The service district assessed a mill levy of 1.5 mills for service in FY 99. Expenditures for this service district totaled $57,786 for road maintenance in FY 99. Bay View Road Service Area This district was formed by a vote in October, 1986. The district assessed a levy of one mill for road maintenance in fiscal year 1999. Expenditures for this district totaled $8,397 for road mainte- nance in FY 99. Fire Protection Area No. 1 Consisting of Service District No. 1 and the Monashka Bay Area, this service dis- trict was established in 1968. The Bor- ough completed construction and equipped the Bayside Fire Station in 1983 to serve this area. The service district assessed a 1.50 mill levy in fiscal year 1999. Expenditures for this service dis- trict totaled $151,483 for fire service in FY 99. Kodiak Island Borough Airport Fire Protection District This fire district was formed by ordinance of the Kodiak Island Borough Assembly. This service district encompasses the property surrounding the state airport. The mill levy was 2 mills and expendi- tures for the district were $14,234 in FY 99. Woodland Acres Street Lighting This service district was formed by a vote of the Woodland Acres area voters in 1989 to provide construction, operation and maintenance of street lights on pub- lic streets within this service area. The service district assessed a mill levy of .00 mills in FY 99. Expenditures for this dis- trict totaled $5,066 for street lighting in FY 99. Bayside Fire Station FOR QUESTIONS OR CONCERNS REGARDING YOUR SERVICE DISTRICT AREA, PLEASE CONTACT YOUR SERVICE DISTRICT BOARD CHAIRMAN: Current Service District Chairmen Womens Bay Service Area Mike Wilcheck 487-4540 Monashka Bay Road Service Area Dave Sundberg 486-5327 Service District No. One Kevin Arndt 486-3755 Bay View Road Service Area Reed Oswalt 486-4486 Fire Protection Area No. 1 Scott Arndt 486-3745 IN SOLID WASTE MANAGEMENT The Kodiak Island Borough has a progressive program to effec- tively manage the solid wastes in the Borough in an environ- mentally sound manner through source reduction/reuse and re- cycling, followed by treatment and disposal of the residual solid waste. Source Reduction/reuse simply, making an effort to pro- duce less waste. For example, used fishing gear is segregated at the landfill and is available to Borough residents. Used lumber and other wood products (pallets, cabinets, etc.) are also segre- gated 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 wastes are reprocessed to make new products. Office paper, cardboard, newspapers and magazines are collected in the Borough by Threshold Services and shipped to Seattle to be turned into pulp and then new paper products. Metals, such as aluminum cans, junked ve- hicles and scrap steel, are melted down and made into new cans, cars, and other metal prod- ucts. Treatment is the process of modify- ing wastes to make them smaller, less hazardous or easier to dispose of The Borough operates a small incinerator to reduce medical wastes and dead animals to ash. The 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 wastes are less dan- 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 wastes. For Kodiak Island Borough, the landfill becomes the final place for most of the waste not reused or recycled. Household hazardous wastes are shipped off the island to regulated disposal facilities. The Borough maintains a separate landfill area for asbestos disposal and another area for construction and demolition debris. 9 waste to the landfill free of charge. HOUSEHOLD HAZARDOUS WASTES Residential cus- tomers are strongly encouraged to separate household hazardous waste from their house- hold garbage and deliver these items to the landfill. Household hazard - Kodiak Island Borough Baler Fuility ous waste includes items such as lead -acid batteries, old paint, paint thinner, pesti- cides, cleaning products, used oil and wood preservatives. If you are unsure about a particular product being a household haz- ardous waste, call the landfill or bring it to the landfill. There is no charge for taking household hazardous wastes 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 WASTES? If you have any questions about disposal of solid wastes, 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 fore- seeable capital project needs of the Borough and area communi- ties for the next five years and establishes a plan of action to accomplish those needs. The Borough, under its areawide powers, coordinated and pre- pared the FY 2001-2005 Capital Improvement Program consist- ing of over 100 projects proposed by the various local govern- ment units in the Kodiak Island Borough. The compiled docu- ments comprise a five-year Capital Improvement Program that is submitted to the Governor in November of each year for con- sideration in the capital budget, which he presents to the Legis- lature in January. The Capital Improvement Program, combined with the annual operating budget, provides the primary direction toward accom- plishing the capital improvements required to meet the demands of growth and continue to support the economic well being of the community. The Top 15 Priority Projects for FY 2001— 2005 Listed below are the top fifteen priority projects for the five-year Capital Improvement Program for FY 2001— 2005 as established by Resolu- tion 99-24 adopted on October 21, 1999 1. Resurfacing Rezanof Drive from Mill Bay Road to the landfill and from the Coast Guard base to Women's Bay 2. Kodiak School Upgrades 3. Kodiak School Career Technical Addition 4. Monashka Bay Public Boat Launch 5. Spruce Cape Road Water/Sewer Line Replace- ment 6. North Star Elementary School Addition 7. Kodiak Air Terminal/Feasibility and Prelimi- nary Engineering Design of Air Terminal 8. Anton Larson Airstrip 9. Anton Larson Bay Small Boat Ramp/Road Extension 10. Anton Larson Bay Road Switchback Improve- ments 11. Peterson Elementary School Gym Expansion 12. Ouzinkie School Gym Expansion 13. Chiniak/Pasagshak Road Paving 14. KIB Solid Waste Disposal/Site Expansion 15. Karluk Landfill and Sewer Upgrade COMPLETED CAPITAL IMPROVEMENT PROJECTS FISCAL YEAR 1999 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 1999: Major School Construction Projects Completed in FY1999 Project Amount Middle School Gym Roof $ 9,980 Chiniak School Exit Roof $ 2,551 Port Lions Basketball Court $ 33,276 Major General Capital Construction Projects Completed in FY1999 Project Amount Hospital Remodel $ 13,884,547 Hospital Renovation $ 4,136,449 Kodiak Fisheries Research Center $ 11,920,535 Women's Bay Tank Removal $ 40,667 Anton Larsen Bay Trail $ 2,629 Island Lake Trail Exit $ 23,565 School Freezer Relocation $ 30,419 Ah A MILL? A mill is a type of measurement. It is equivalent of one percent (.001) of a dollar. AT IS A MILL RATE? A mill rate is the number of mills eac iidual taxpayer will be assessed or charged per dollar value of prof owned. For example, if your mill rate were 20 mills (.020), yc Id pay two cents of every dollar value of your property for taxes. D DECIDES WHAT THE MILL RATE WILL BE? The Borough =bly decides the mill rate for the Borough and the City Council Service District Advisory Boards determine the mill rates for their ective areas. These mill rates are added together to get a total mill for each geographic area. 1W DO THEY DECIDE? The governing bodies determine how much ney will be needed to run their respective governments. Given this armation, the Assembly then proposes a budget. The approximate )ected revenues from sources such as severance taxes, sales taxes, ;iness licenses, grants, and state and federal sources is factored into amount needed to ran the government and provide services. The litional money needed to balance the budget is then figured and raised collecting a property tax. This additional money, divided by the tax ;e is the mill rate for that budget year. RATE = The extra money needed to balance the buds! Tax Base (assessed value of taxable property) V IS THE VALUE OF THE TAX BASE DETERMINED? I of the tax base is found by adding up the assessed value of 9e real and personal property within the boundary of the tax (Borough, City, Service District). N IS THE PROPERTY TAX DETERMINED? Individual pr taxes are determined by multiplying the assessed value of the In by the mill rate. In other words, your property taxes equal ssed value of your property multiplied by the mill rate or rates 'tax collection area (see Mill Rates chart on page 13.) ;ample: If your home is located within the city limits of Kodiak and is lued at $100,000, the taxes for FY 99 would be $1125. This is based ,on a mill rate of 9.25 levied by the Borough in addition to a mill rate 2.00 by the City Council for a total of 11.25 mills ($100,000 x.0 1125 $1125.) xample: If you live in the Monashka Bay Road Service District area, ad your house is valued at $100,000, your taxes would be $1225, based pon a Borough mill levy of 9.25, plus a mill levy of 1.50 by Fire Pro- fction Area No. 1, and a Monashka Bay Road Service District levy of .50 for a total of 12.25 mills ($100,000 x .01225 = $1225.) [EN ARE PROPERTY TAXES DUE? Property tax assessment no- s are mailed on April 1 for the calendar year tax role. Property iers have until April 30 to appeal an assessment. The mill rate is .blished with the fiscal year budget adoption in June, and tax bills mailed to property owners on July 1. The full payment is due by ober 1511, or half payments are due by August 15th and November . Penalties and daily interest charges are added to late payments 11 THE BUDGET PROCESS Direct Services The Kodiak Island Borough delivers both direct and indirect ser- vices to the public. These services are either required of munici- pal government by its political authority, or desired by its citi- zens. Examples of direct services provided by the Kodiak Island Borough are: Hospital and Health Services School Construction Fire Protection Water and Sewer Service 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 necessary 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 requirements to complete a specific task, such as the development of a com- prehensive 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 Personnel Administration Legal Administration Input into Policymaking at the State and Federal Levels Citizens are encouraged to take an active role in determining 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 period of July I through June 30th of the following year. For example, the Fiscal Year 1999 Budget (FY 99) was adopted in June of 1998 and ends on June 30th, 1999. Preparation of the budget begins January 1 of each year, six months prior to implementation, in the following manner: 1. The Assembly formulates goals and objectives, and pre- sents 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 depart- mental budgets based upon direct service requirements, and the indirect costs of providing those services. 3. The Manager assesses the total needs and resources of the Borough and prepares the Mayor's draft budget based upon his judgment, departmental input, and the direction given by the Assembly. 4. The Assembly meets during work sessions to discuss each departmental budget, and reviews the Mayor'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 control the manner in which the school district budget is expended, they must decide how much will be allocated from local revenue. Budget review meetings 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. FISCAL YEAR 1999 MILL RATES Total Tax Lew C7ment Tax Collections Tax Collections Total Tax Collections Levy Collected 1990 2,034,500 a insid, C ity of Kodiak 9.25 2.00 99.8 11.25 2,237,629 �am�i 17,254 2,206,524 98.6 0w M eee a 3,736,674 3,654,535 MonasAka Bay 9.25 98.4 1993 Road Servrte Area iso 60,633 3,968,245 Fire Protection Area No One 1.50 4,353,371 12.25 21,295 X9.25 96.4 1995 Service District No. O ne 4,955,108 56,140 5,011,248 Road Service Area 0.50 5,466,066 5,249,168 Fire Pv t t Areallo One 150 97.1 11.25 „P ��: 1"ro Y m N 5,478,939 96,490 5,575,429 Woodland Arrca v9.25 7,384,490 7,121,678 Service Distract No. One 0 50 97.5 1999 Pire Pro[ea,o t Area No. One 150 314,367 7,889,858 ............ W oodland Acres Street L, is Source: 000 1135 FINANCIAL MANAGEMENT The financial accounts of the borough are organized as individual funds, each of which is considered 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 opera- tion of the Borough government and is financed by taxes and other general revenues. Other specific funds include special rev- enue funds, which are used to account for the proceeds of spe- cific revenue sources that are legally restricted to expenditure for specified purposes; debt service, which is established for princi- pal and interest repayment on general obligation debt; capital projects fund, used for the acquisition and construction of desig- nated fixed assets; and enterprise funds, which are established as self-supporting user charges and include solid waste collection and disposal. 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 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. FY 99 SEVERANCE TAX COLLECTIONS Fish $ 900,331 Mining 10,269 Logging 95.600 Total $1.006.290 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Delinquent Percent of Fiscal Year Total Tax Lew C7ment Tax Collections Tax Collections Total Tax Collections Levy Collected 1990 2,034,500 2,017,190 12,351 2,029,541 99.8 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 Source: Borough general ledger 49 Debt Service The current indebted- ness of the Kodiak Is- land Borough is made up of the 1989, 1993 1,600 and 1994 General Obli- 1,400 gation bonds, which were issued for school 1,200 and hospital construc- 1,000 tion and improvements. The balances outstand- ing on these bonds are, 600 respectively, $2,23 5,000, 400 $6,055,000, and 200 $9,985,000 for a total current indebtedness of 0 $18,275,000. HEALTH The Kodiak Island Hospital and the Mental Health Cen- ter are owned by the Kodiak Island Bor- ough and are operat- ing under leases with Providence Health System 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 earn- ings are split equally between Providence and the Borough. Any annual operat- ing losses are the re- sponsibility of Providence Health System. 13 Debt per Capita 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 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 estab- lish 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. 14.000,009 12,000,000 10,009,000 8.000.900 6,000.000 4,000,000 2,009,000 Facilities Fund -Created by sale of Shuyak Island Increase In Fund Balance FY1996 FY1997 FY1998 FY1999 STATISTICS DEMOGRAPHIC STATISTICS KODIAK, ALASKA Last Ten Fiscal Years Fiscal Percentage School Unemployment Year Population (a) Enrollment (b) Rate (c) 1990 15,558 2,442 5.3% 1991 15,679 2,524 9.5% 1992 15,535 2,661 5.1% 1993 15,535 2,686 5.6% 1994 15,245 2,873 9.8% 1995 15,575 2,830 11.7% 1996 15,400 2,889 14.9% 1997 14,058 2,902 9.4% 1998 14,181 2,852 5.1% 1999 13,848 2,798 4.9% Sources: (a) 1990 per U.S. Bureau of Census; other years per State of Alaska Certified Population (b) Kodiak Island Borough School District, October count. (c) Department of Labor, Anchorage TEN LARGEST PROPERTY TAXPAYERS YEAR ENDED NNE 30. 1999 $ 1.012.015 13.1%- W Percentage Net of Total of Total 1998 Levied $ 150,535 Assessed Assessed International Seafoods Value 2.1% Vahwtion $ 14,532,437 Western Alaska Fisheries 1.6% 11,306,393 T.U. of the Northland 1.6% 10,922,176 Alaska Pacific Seafoods 1.6% 10,647,201 King Crab�Ocean Beauty 1.5% 10,165,318 Kodiak Fishmeal Co. 1.3% 9,052,176 Sea-Land Services 1.3% 8,760,943 Tysons 1.1% 7,896,431 Safeway/MBPA 1.0% 7,171,400 Leisnoi 10% 6.801.735 Totals 14.2% $ 97256210 Source: Borough tax records. $ 1.012.015 13.1%- W Percentage Net of Total Taxes Taxes Levied $ 150,535 Levied 2.0% 115,143 1.5% 106,053 1.4% 106,838 1.4% 105,238 1.4% 88,851 1.2% 95,549 1.2% 82,676 1.1% 98,184 62.949 1.3% 0.8% $ 1.012.015 13.1%- W 1998-1999 KODIAK ISLAND BOROUGH BOARDS AND COMMITTEES •.•••••.•.•.•.•.•.•.•.•.•••.••••••••..•••••••••..•••.•••.•.••.•••• BOROUGH MAYOR BOROUGH ASSEMBLY Wayne Stevens `99 Robin Heinrichs (Deputy Mayor) `01 Gary Stevens `01 Patricia Branson '01 Greg Spalinger `00 `00 Tom Abell `02 Scott Arndt Tuck Bonney `02 •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• School Board Walter Stewart Chris Nielsen Robert Casey * Norm Wooten Darlene Turner Linda Moore, KIB staff Brian Mayberry Alice Knowles Jack McFarland Woodland Acres Street Lighting Ser- Data Processing Stegnaa Committee Womenc Bay Service Area Advisory Jeff Stephan vice Area Advisory Board * Thomas Manninen Board Pat Jacobson Phillip Cline Jim Nagan * David Conrad Dan Canavan, USCG Rep. * Bob Hatcher, Chair Perry Page Linda Estes Greg Spalinger— Assembly Rep. Kevin Arndt - Kadeton Short Edward Gondek Tuck Bonney — Assembly Rep. Betty Walters Tom Trosvig Scott Arndt — Assembly Rep. Citizen Board of Eauglization David Jones Bob Tarrant Sheila Roberts - Staff Jim Carmichael Gary Stevens Tom Schwantes Clara Fulp Student Rep. * Karenia Hackett, Chair Mike Wilcheek Hospital Advisory Board * Wayne Stevens — Assembly Rep. Gil Bane Mark K. Buckley Linda Duthie Michael Machulsky Mary A. Monroe Gretchen Saupe Phil Cline, Administrator, ex-offi- cioRobyn Holloway, KIH Staff Welby Jensen, Chief of Staff Mental Health Center Ad 'sort' Board * Jody Burcham This Falcone David Davis Barbara Lynn Form Steven G. Honnold Cecil RItmey Roger Nagarkar Tuck Bonney, Assembly Rep. Lt. Tish Palmer, CG Rep, ex-offi- cioRobin Gardner, MHC Staff Karen Perkins, KAMI Rep., exof- ficio Welby Jensen, MD, Providence Rep, cx-officio Planning and Zoning Commission * Donna Bell TiHurle In y Cheryl McNeil, Alternate Pat Carlson, KIB staff Donna Smith, KIB staff Parks and R eation Committee * David Odell S. Forrest Blau Susan Byersdorfer Steven Honnold Walter Stewart, P&Z Rep. Vincent Walser Kate Wynne Joe Floyd, School Bd. Rep., ex - officio Linda Freed, KIB staff Ian Fulp, City Rep., ex -officio Claire Holland, State Rep., ex -of- ficio Tom Abell, Assembly Rep. R it ine Code Board fAppeals/(A - cbitectural Revigw Boardl * Gerald Cloudy Gregg Hacker Jay Johnston Dale Soughers Tom Templeton Robin Heinrichs, Assembly Rep. Bob Tucker, KIBSD Rep. Jack McFarland, School Board Rep. Chris Lynch, KIB Rep. Fire Protection Area No I Advisory Board * Eileen Probasco Scott Arndt Jeff Halcomb Kevin Arndt Roy Aquirre Robert Himes, ex -officio Bay View Road Service Area Advi- Be r * Fred Roberts Dawn Black Marcia Oswalt Reed Oswalt James R. Sebauff Monashka B y Road Service Area Advisory Board * Jack McFarland Jeff Hamer Dave Sandberg Corrine Estelle Ferre Emergency Services Council Carolyn Floyd Tom Manninen Bill Jones, Manager, City of Kodiak Gary Stevens John Miller, Capt. USCG Service District No IAdvisory Board * Kevin Arndt Marty Shumvloff Robert Greene * Indicates chair Robert Himes Personnel Adviseoard Scott Arndt Robbie Scheidler Warren Russell Ed Mahoney Clarence W. Selig Christine Jamin Jennifer Spencer Dale L. Rice, ex -officio Kodak Area Transit System Steering Committee * Pat Branson Wancua Ayers Marie Banal Tim Blott Woody Konig Steven G. Honnold Don Roberts Wayne Stevens, Assembly Rep. Linda Freed, KIB Staff Aimort Advisory Committee * Stosh Anderson Charles Barber Dean Andrew Robert Himes Ruth Lovejoy Arlene Mauldin Donald Rossiter John Chya, exofficio CDR Drew Dilkes, CG ex -officio Patti Kirkpatrick, KIB staff Service Area No 2 Commission Rebecca Bean Miller Corinne Estelle Ferre Nomnan Mullen Marcia Oswalt 1 vacancy id