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FY2008 Popular Annual Financial Report,,, —,,dpr I .' . 11 Kodiak Island Borough Popular Annual Financial Report Table of Contents... Mayor and Assembly....................................................... 2 Profile of the Kodiak Island Borough ............................. 3 Financial Information .................................................. 4-15 Assessed Values........................................................... 16 PropertyTaxes............................................................... 17 Severance Taxes............................................................ 18 Education....................................................................... 19 HealthCare.....................................................................20 2008 Community Development .............................................. 21 Road Service Maintenance and Repair ........................ 21 Fire Protection and Emergency Services .................... 22 Emergency Preparedness ............................................. 23 Construction Projects ................................................... 24 SolidWaste.................................................................... 25 General Administration................................................. 25 Statistical Information................................................... 26 OurWebsite.................................................................... 27 Mayor and Assembly (as of ,lune 30, 2008) Mayor Term Jerome Selby 2010 Assembly Members Mr. Tom Abell 2008 Ms. Pat Branson 2010 Mr. Jerrol Friend 2009 Ms. Sue Jeffrey 2008 Ms. Chris Lynch 2009 Mr. Reed Oswalt 2008 Ms. Louise Stutes 2010 2 Kodiak Island Borough Popular Annual Financial Report Profile of the Kodiak Island Borough... The Kodiak Island Borough lies at the western border of the Gulf of Alaska, approximately 40 miles south of the Kenai Peninsula. Kodiak Island is the largest island in Alaska and the sec- ond largest in the United States. About two-thirds of the Borough lies in the Kodiak archipelago with the remaining third on the Alaska Penin- sula, across the Shelikof Strait from Kodiak Island. The Shelikof Strait is only 20 miles wide in places. The Bor- ough encompasses 7,130 square miles, making it slightly smaller than the State of Massachusetts, and serves a population of 13,811. The main industries of the Borough are commercial fishing, tourism, gov- ernment, aerospace, and community support services. The seafood industry is by far the largest industry in the Kodiak Island Borough. Kodiak is home to the larg- est port in the state, housing over 700 commercial vessels and consistently ranks among the top ten ports in the United States in terms of amount and value of product delivered. Tourism continues to grow in Kodiak with an increasing number of visitors each year. There have been a num- ber of cruise ships visiting Kodiak in recent years as cruise ship companies have expanded their tours of Alaska's coastal communities. The Kodiak Launch Complex includes a launch control center, payload proc- essing facility, spacecraft assembly building ,and launch pad. It is de- signed to handle small- to medium- sized rockets used to launch low earth orbit satellites, as well as military, scientific, and research missions. Kodiak is home to the largest U.S. Coast Guard base in the country, em- ploying nearly 1,400 people and pro- viding vital services to the marine industries that are an integral part of Kodiak's make-up as well as making a significant contribution to the Kodiak community. The Borough was incorporated on September 30, 1963 as a Second -Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended. A Mayor/Manager form of government governs the Borough. The Mayor is elected at large while the Borough Assembly appoints the Manager. The Assembly is composed of seven mem- bers, all elected at large. The Borough provides a full range of services, including fire protection and first -response emergency medical services, road and other infrastruc- ture construction and maintenance, community and economic develop- ment, health and sanitation, culture and recreation, and solid waste col- lection and disposal. The Borough is also financially accountable for a le- gally separate school district, which is reported separately within the Bor- ough's financial statements. Addi- tional information on this legally separate entity can be found in the basic financial statements. 3 Kodiak Island Borough Popular Annual Financial Report Financial Information... Financially, FY2008 was a very good year for the Kodiak Island Borough. The Borough's total net assets increased by $2,639,297. At June 30, 2008, the assets of the Kodiak Island Borough exceeded its liabilities by $146,825,807. Of this amount, $68,167,457 (unrestricted net assets) may be used to meet the Borough's ongoing obligations to citizens and creditors The Kodiak Island Borough has two types of funds. These are governmental funds and proprietary funds. The difference between governmental and proprietary funds is the type of accounting. Governmental funds use the modified accrual basis while proprietary funds use the accrual basis of ac- counting. In layman's terms, the biggest difference is how the purchase of capital assets is handled. Governmental funds record the purchase as an expense while proprietary funds record depreciation as the expense. Busi- nesses use the proprietary form of accounting. Governmental Funds Governmental funds include the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Project Funds. Governmental Funds had total assets of $79,413,129. $69,743,583 was in cash and investments. $7,223,423 was in loans to K.F.R.C. (Kodiak Fisheries Research Center), the Hospital, and Trinity Acres Paving District. Asset Types ■ Cash and investments ■ Due from other funds Due from State of Alaska ■ Other 4 Kodiak Island Borough Popular Annual Financial Report At year end the total fund balance of all governmental funds was $72,413,129. Revenues zo ■ Property Tax • Severance Taxes ■Intergovernmental ■ Interest Earnings ■ Other FY 2008 revenues were $23,622,846. Property Taxes were $10,254,477; Severance Taxes were $1,436,210; interest earnings were $3,918,008; In- tergovernmental revenues were $6,982,462; and other of $1,031,689. Expenditures E General Government E Emergency Services Community Dev E Debt Service Capital Outlay Education Non -Profits Service Districts FY2008 expenditures totaled $26,586,955. Major expenditures were Educa- tion in the amount of $9,123,412; General Government; $3,818,544; Debt Service; $3,468,617; and Capital Outlay, $7,916,817. Capital expenditures will increase over the next five years as the proceeds of the FY2004 and FY2008 bond issues are spent. The largest project is the new swimming pool with a budget of $14,210,000. This project is sched- uled to be completed in August 2009. I• Kodiak Island Borough Popular Annual Financial Report Total fund balance of all governmental funds increased $5,162,941 in FY2008 and $1,821,438 in FY2007. The total fund balances will decrease by over $20,000,000 as the bond projects are completed. Proprietary (Enterprise) Funds Proprietary funds include the Landfill, Hospital, Kodiak Fisheries Research Center (KFRC) and 911. At the end of the year, the proprietary funds had total assets of $46,637,246. This includes $9,006,752 in cash and invest- ments. Capital assets (land, buildings and equipment) make up $36,718,028 of total assets. 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 CurrentAssets W Solid Waste Hospital KFRC 911 Only the Solid Waste fund and the Hospital Fund had positive unrestricted net equity. If capital assets are included then all proprietary funds have positive equity. Unrestricted Net Equity 3,000,000 ' 0— 2,500,000 ` 2,000,000 1,500,000 1,000,000 { 500,000 (500,000) Solid Hospital KFRC 911 Waste 2 Kodiak Island Borough Popular Annual Financial Report The Solid Waste fund closed the year with a net loss of $460,897, the Hos- pital had a loss of $516,151, K.F.R.C. had a loss of $248,507, and 911 had a loss of $50,611. The losses in the Hospital and K.F.R.C. Funds were due to depreciation expense. On a cash flow basis, the Solid Waste, K.F.R.C. and 911 Funds are all on solid footing. Revenues vs Expenditures 6,000,000 -rte 4,000,000 - 2,000,000 - Solid Hospital KFRC 911 Waste ■ Revenues ■ Expenditures Looking Ahead Bell and Associates, Inc. has done a study on the solid waste collection and disposal system currently in place. The Borough purchased new assessing software and will be putting a great deal of effort into its implementation in FY2009. Interest rates have fallen significantly since June 30, 2007 (75 basis points on January 22, 2008 alone). If this trend continues, the Borough will have to look at other forms of revenue if we are to continue providing the same level of service to our residents. This report has been prepared to provide the reader with a general over- view of the financial condition of the Kodiak Island Borough at June 30, 2008. If you have any questions about the contents of this report, please contact the Finance Department at (907) 486-9323. A copy of the Borough's annual Comprehensive Annual Financial Report with more information is available at the Finance Department. X�'k T, .b" , _ Rick L. Gifford Karleton G. Short Borough Manager Finance Director 7 Kodiak Island Borough Popular Annual Financial Report Balance Sheet Governmental Funds June 30, 2008 (With summarized financial information for June 30, 2006 and 2007) Assets 2006 2007 2008 Assets: Cash and investments $ 59,809,103 $ 62,790,419 $ 69,743,583 Receivables: State of Alaska 957,693 604,827 775,826 Federal Government 6,355 11,093 373,520 Property taxes, net of allowance of $15,828 355,780 216,121 112,109 Severance taxes 295,309 350,619 352,927 Land sales contracts 1,538 38,308 54,137 Notes receivable 501,889 448,533 - Accounts and other receivables, net 391,175 33,856 41,037 Due from other funds 3,427,042 872,475 1,103,459 Notes recievable, due after one year Land sales contracts, due after one year 228,496 193,155 176,641 Advances to other funds 7,742,903 7,367,644 6,679,890 Total $ 73,717,283 $ 72,927,050 $ 79,413,129 Liabilities and Fund Balances Liabilities: Accounts payable 467,332 642,679 2,049,439 Retainages payable 22,270 11,904 208,818 Accrued compensation and related liabilities 89,881 165,935 176,620 Customer deposits 678 828 800 Due to component unit 3,493,790 3,450,419 3,386,090 Due to other funds 3,086,617 767,562 714,349 Unearned revenues 1,088,200 597,770 424,119 Total liabilities 8,248,768 5,637,097 6,960235 Fund balances: Reserved: Long-term interfund borrowings 7,742,903 7,367,644 6,969,951 Unreserved: General fund: Designated for subsequent year expenditures 154,296 554,975 1,341,798 Undesignated 1,871,817 2,238,338 1,888,681 Special revenue funds: Designated for subsequent year expenditures 420,400 171,800 150,845 Undesignated 33,454,865 35,144,521 36,136,053 Debt service funds: Undesignated 76,898 101,090 159,788 Capital projects funds: Undesignated 21,747,336 21,711,585 25,805,778 Total fund balances 65,468,515 67,289,953 72,452,894 Total $ 73,717,283 $ 72,927,050 $ 79,413,129 9 Kodiak Island Borough Popular Annual Financial Report Changes in Fund Balances of Governmental Funds Last Three Fiscal Years (modified accrual basis of accounting) 2006 2007 2008 Revenues Taxes $ 9,833,846 $ 9,750,682 $ 10,254,477 Intergovernmental 385,S29 6,098 7,884 State sources 3,368,491 4,012,647 4,428,472 Federal sources 1,766,926 1,417,403 2,553,990 Land sale proceeds 177,164 47,087 19,458 Severance taxes 1,186,908 1,316,689 1,436,210 Licences, permits, fees, and other local revenue 820,286 690,962 658,381 Other revenues 125,040 633,925 353,850 Investment earnings 2,803,466 3,751,609 3,918,008 Total revenues 20,082,127 21,621,004 23,622,846 Expenditures General government Fire services Emergency preparedness Community and economic development Health and sanitation department Education, culture and recreation Service district maintenance Primary and secondary education Capital outlay Schools General Debt service 3,413,652 3,426,871 3,818,544 537,275 1,077,181 385,S29 6,098 7,884 5,713 784,002 786,614 923,203 363,520 373,132 387,053 161,633 158,161 183,747 336,385 498,539 374,320 8,430,840 8,387,440 9,123,412 464,142 1,436,639 7,029,628 332,398 373,038 887,189 Principal 1,814,553 2,100,361 2,205,441 Interest 1,584,763 1,336,349 1,263,176 Total expenditures 18,229,261 19,962,209 26,586,955 Excess of revenues over (under) expenditures 1,852,866 1,658,795 (2,964,109) Other Financing Sources (Uses) Proceeds from sales of bonds Transfers in Transfers out Total other financing sources(uses) Net change in fund balances - 8,000,000 1,751,182 2,626,853 2,966,610 (1,503,902) (2,464,210) (2,839,560) 247,280 162,643 8,127,050 a a , Kodiak Island Borough Popular Annual Financial Report Balance Sheets Enterprise Funds June 30, 2008 10 Municipal Kodiak Other Solid Waste Fisheries Nonmajor Collection and Hospital Research Enterprise Assets Disposal Facilities Center Fund Current assets: Equity in central treasury $ 5,067,444 615,841 3,312,433 11,034 Accrued interest receivable 8,887 Customer receivables 456,160 44,100 26,312 - Due from other funds Accounts receivable - State of Alaska 100,000 - - - Total current assets 5,623,604 659,941 3,338,745 19,921 Inventories - 277,007 - - Capital assets: Non -depreciable 2,189,235 710,441 Depreciable, net 3,488,617 17,007,709 13,322,026 Total capital assets 5,677,852 17,718,150 13,322,026 Total noncurrent assets 5,677,852 17,995,157 13,322,026 Total $ 11,301,456 18,655,098 16,660,771 19,921 Liabilities and Fund Equities Current liabilities: Accounts payable $ 335,484 37L159 74,389 29,570 Deferred revenue - 182,453 - Accrued compensation and related liabilities 37,512 - 23,430 - Other accrued liabilities 184,165 Current portion of capital lease obligations 242,771 Current portion of advances from other funds - 65226 - - Due to other funds - - 459,050 - Total current liabilities 799,932 436,385 739,322 29,570 Noncurrent liabilities: Notes payable 1,768,660 Advances from other funds - 1,244,725 5,300,000 Net pension and OPEB obligation 336,458 - 96,230 - Accrual for landfill closure and postclosure costs 4,041,730 Total noncurrent liabilities 6,146,848 1,244,725 5,396,230 - Total liabilities 6,946,780 1,681,110 6,135,552 29,570 Fund equities: Invested in capital assets, net of related debt 3,666,421 16,408,199 7,562,976 - Unrestricted 688,255 565,789 2,962,243 (9,649) Total fund equities 4,354,676 16,973,988 10,525,219 (9,649) Total $ 11,301,456 18,655,098 16,660,771 19,921 10 Kodiak Island Borough Popular Annual Financial Report Changes in Fund Equity Enterprise Funds Year ended June 30, 2008 11 Municipal Kodiak Other Solid Waste Fisheries Nonmajor Collection and Hospital Research Enterprise Disposal Facilities Center Fund Operating revenues: Solid waste collection $ 2,839,830 Solid waste disposal 1,071,941 Charges for services/customer charges 54,925 Lease income 720,000 1,616,992 Other 1,920 Total operating revenues 3,913,691 720,000 1,616,992 54,925 Operating expenses: Personnel services 938,916 5,871 334,442 3,000 Solid waste collection 1257,731 Refuse disposal 346,396 Contracted services 446,764 Maintenance and repairs 77,960 5,825 Landfill closure and postclosure costs 819,143 Depreciation 265,885 988,579 726,745 General and administration 225,018 12,949 490,384 190 Miscellaneous - - 73,798 - Telephone services 6,613 104,790 Recycling services 231,085 Contributions 13,315 Total operating expenses 4,628,826 1,013,224 1,625,369 107,980 Operating income (loss) (715,135) (293,224) (8,377) (53,055) Nonoperating revenues (expenses): Contribution to Providence Hospital (57,141) - - Investment income 21,999 161,933 2,444 Interest expense 247,788 (54,285) (402,063) - Income (loss) before transfers (467,347) (382,651) (248,507) (50,611) Transfers in 6,450 456,500 Transfers out (590,000) Net other financing sources (uses) 6,450 (133,500) Net change in fund equity (460,897) (516,151) (248,507) (50,611) Fund equity at beginning of year 4,815,573 17,490,139 10,773,726 40,962 Fund equity at end of year $ 4,354,676 16,973,988 10,525,219 (9,649) 11 Kodiak Island Borough Popular Annual Financial Report The General Fund of the Borough is the nucleus around which all of the other funds radiate. When people think of the Borough, most people think of General Fund activities. Most of the Borough's employees are in General Fund departments. Gen- eral Fund departments are the ones that register you to vote, appraise your house, and collect your property tax. They also zone your property and build the schools that your children attend. The General Fund of the Borough finished FY2007 in a very strong financial position. The Fund Balance increased by $767,200 to $2,793,313. This is 21% of FY2007's expenditures. Revenues • Property Tax • Severance Tax Intergovernmental • other Investment income Expenditures came in $342,174 under budget. These savings were from several departments, mostly Management Information Systems and Community Develop- ment. 12 The largest factor in this increase was the resump- tion of State Revenue Shar- ing. Titled Tax Payer Relief, the State gave the Borough $1,039,873 in State aid. Another reason was that the severance taxes on fish exceeded the budgeted amount by $335,338. Expenditures pment m Kodiak Island Borough Popular Annual Financial Report Balance She e t General Fund June 30, 2008 (With summarized financial information fortune 30, 2007) Assets Assets: Cash and investments Receivables: State of Alaska. Property taxes, net of allowance of $15,828 Severance taxes Accounts and other receivables, net Due from other funds Total Liabilities and Fund Balances Liabilities: Accounts payable Accrued compensation and related liabilities Due to component unit Due to other funds Unearned revenues Total liabilities Fund balances: Designated for subsequent year expenditures Undesignated Total fund balances Total �nnR 7nm $ 6,091,074 $ 5,666,479 84,694 45,895 100,339 551,732 352,927 — 2,365 8,271 509,926 573,780 $ 7,141,325 $ 6,846,157 251,242 203,706 176,620 165,935 3,386,090 3,450,419 — 14 96,894 232,770 3,910,846 4,052,844 1,341,798 554,975 1,888,681 2,238,338 3,230,479 2,793,313 $ 7,141,325 $ 6,846,157 13 Kodiak Island Borough Popular Annual Financial Report Budgetary Comparison Schedule General Fund Year ended June 30, 2008 (With financial information for the year ended June 30, 2007) 2008 14 Variance with Final Budget - Positive 2007 Budget Actual (Negative) Actual Revenues: Property taxes: Real $ 7,712,540 7,846,642 134,102 7,445,150 Personal 1,060,470 1,053,918 (6,552) 990,141 Boat 26,450 25,079 (1,371) 26,217 Motor vehicle 250,000 252,811 2,811 225,046 Penalty and interest 175,000 178,081 3,081 214,773 Total property taxes 9,224,460 9,356,531 132,071 8,901,327 Intergovernmental State sources: Tax Payer Relief 591,286 591,286 - 1,039,873 Raw fish tax 411,750 411,747 (3) 958,965 Fish revitalization 950,000 1,059,161 109,161 66,235 Electric Co-op tax 2,000 41,811 39,811 27,474 On behalf PERS payment 26,000 27,668 1,668 83,159 Total state sources 1,981,036 2,131,673 150,637 2,175,706 Federal sources: Payments in lieu of taxes 814,000 805,001 (8,999) 800,081 Fish and Wildlife revenue sharing 350,075 340,067 (10,008) 350,112 Total federal sources 1,164,075 1,145,068 (19,007) 1,150,193 Total intergovernmental revenue 3,145,111 3,276,741 131,630 3,325,899 Severance taxes: Fish 1,197,500 1,409253 211,753 1,285298 Mining 15,750 12,567 (3,183) 11,401 Logging 57,280 14,390 (42,890) 19,990 Total severance taxes 1,270,530 1,436,210 165,680 1,316,689 Licenses, permits, fees, and other local revenues: Building and trailer permits 70,000 46,097 (23,903) 58,630 Subdivision and zoning fees 6,000 4,900 (1,100) 4,600 Sale of copies 15,000 8,308 (6,692) 15,490 Miscellaneous 55,700 40,951 (14,749) 82,604 Total licenses, permits, fees, and other local revenues 146,700 100256 (46,444) 161,324 Investment income 540,331 544,926 4,595 399,149 Total revenues 14,327,132 14,714,664 387,532 14,104,388 (continued) 14 Kodiak Island Borough Popular Annual Financial Report Budgetary Comparison Schedule General Fund Year ended June 30, 2008 (With financial information for the year ended June 30, 2007) Expenditures: General government: General and administration Borough assembly Borough manager Borough clerk Borough attorney Finance department Management information systems Assessing department Engineering/facilities department Total general government Community and economic development 2008 Variance with Final Budget - Positive 2007 Budget Actual (Negative) Actual 324,170 212,466 111,704 253,610 180,910 155,597 25,313 135,986 373,985 284,585 89,400 194,030 398,510 372,932 25,578 382,675 160,000 155,352 4,648 128,087 699,788 671,824 27,964 678,307 561,420 467,042 94,378 346,259 436,364 423,104 13,260 400,617 111,432 106,920 4,512 112,556 3246,579 2,849,822 396,757 2,632,127 Community development department 775,170 699,567 75,603 488,529 Building official 132,765 118,209 14,556 141,556 Economic development 75,000 46,289 28,711 72,816 Total community and economic 13,977,557 13,331,838 645,719 12,178,016 development 982,935 864,065 118,870 702,901 Emergency preparedness Health and sanitation department Education, culture and recreation Primary and secondary education Total expenditures Excess of revenues over expenditures Other financing uses: Transfers out 8,800 5,713 3,087 7,884 305,100 305,079 21 289,503 310,731 183,747 126,984 158,161 9,123,412 9,123,412 - 8,387,440 13,977,557 13,331,838 645,719 12,178,016 349,575 1,382,826 1,033,251 1,926,372 (945,660) (945,660) - (1,159,172) Net change in fund balance $ (596,085) 437,166 1,033,251 767,200 Fund balance at beginning of year 2,793,313 2,026,113 Fund balance at end of the year $ 3,230,479 2,793,313 15 Kodiak Island Borough Popular Annual Financial Report Assessed Values... The assessed value of the Borough has been steadily increasing over the last ten years. In fact, it has increased by 23% . 1,000,000,000 800,000,000 600,000,000 400,000,000 200,000,000 0 Assessed Values ■ Real Property ■ Personal Property Most of this increase has come from changes in value of real property. In FY1998, the total assessed value of taxable property within the Borough was $681,345,890. By FY2007, it had risen to $835,525,537. Property Tax Exemptions $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 2001 2002 2003 2004 2005 2006 2007 2008 — Agriculture ■ Disabled Veteran ■ Senior Citizen Property tax exemptions for agriculture have been very stable while exemp- tions for senior citizens and disabled veterans are rising. im Kodiak Island Borough Popular Annual Financial Report Property Taxes... Property tax is the largest source of revenue for the Kodiak Island Borough. In FY2008 the Borough realized revenues of $9,750,682 from property tax, which was 45% of all Borough revenue collected. Property taxes are calculated by multiplying the assessed value of a parcel by the mill rate. A mill is Ylo of 1 percent (or .001). The mill rate of the Kodiak Island Borough remained level at 9.25 mills for many years but was increased to 10.25 mills in FY2005. It was raised to 11 in FY2006 but then decreased to 10.5 in FY2007. 12.00 10.00 8.00 6.00 4.00 2.00 0.00 Historical Mill (propertytax) Rate 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Top Ten Taxpayers Taxpayer Ranking Ocean Beauty Seafoods Inc $ 14,245,989 1 Westward Seafoods, Inc 11,852,090 2 Alaska Communications Systems (c) 11,645,093 3 International Seafoods of AK 10,879,502 4 Mill Bay Plaza Assoc LTD 8,648,400 5 Brechan Enterprises Inc 8,496,630 6 Wal-Mart Real Est Bus Trust 8,322,087 7 Horizon Lines of Alaska LLC(a) 7,320,949 8 Koncor 6,797,500 9 Afognak Native Corp 6,730,109 t0 94,938,349 It is interesting to note that the ten largest taxpayers paid 12% of the total property tax levy. Three of the top ten companies are seafood processing facilities. 17 Kodiak Island Borough Popular Annual Financial Report Severance Taxes... Severance taxes are levied on resources harvested or "severed" from within the Borough. These taxes are determined by multiplying the mill rate ( tax rate) by the gross value of product harvested. Timber 120,000 100,000 80,000 60,000 40,000 20,000 o 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Fish 1,600,000 1,400,000 1,2oo,00a 1,000,000 800,000 600,000 400,000 200,000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 im Severance taxes are collected in three categories: Fish, which is seafood har- vested and delivered to processors within the Kodiak Island Borough; Min- ing which may include gold and other ore, but is primarily gravel; and timber which includes all logging operations within the Borough. Because the value of these resources depends on the mar- ket for these goods, prices tend to fluc- tuate and consequently, the taxes col- lected also vary from season to season. 2008 Severance Taxes Collected ■ Fish ■ Mining ■ Timber Kodiak Island Borough Popular Annual Financial Report Education... Education is one of the mandated powers of the Borough. The Borough has given the School Board the authority and responsibility to operate the School District. Education accounts for 68% of the General Fund budget. The Borough spent and transferred $9,511,281 from the General Fund and Building and Grounds Fund supporting the School District in FY2008. By far the majority of all General Fund revenues go to fund the School District. In fact, more funds were spent on education than the Borough collected in property taxes. 2,850 2,800 2,750 2,700 2,650 2,600 2,550 2,500 Numberof Students 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 The cost of 10,000,000 9,000,000 education has 8,000,000 7,000,000 continued to 6,000,000 rise. 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 The number of students has been steadily decreasing since FY2002. This has been mainly due to the chang- ing demographics of Kodiak. Borough's Cost of Education 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Much of this is due to inflation but new Federal mandates such as the "No Child Left Behind" program have cost the School District (Borough) an im- mense amount of money. For more information you can go to http://www.kodiak.kl2.ak.us 19 Kodiak Island Borough Popular Annual Financial Report Healthcare... One of the Kodiak Island Borough's powers is healthcare. To this end the Kodiak Island Borough has constructed and maintained hospitals and health care facilities down through the years. The Borough leases the hospital and the mental health center to Providence Health & Services. This organization has a multi -state presence and is con- sidered one of the premier health care providers in the nation. Providence Kodiak Island Medical Center (PKIMC) is staffed by a mix of primary care physicians, surgeons and specialists who provide family practice, internal medicine, obstetrics, radiology, general and orthopedic surgery and psychiatry in addition to a number of visiting specialists from Anchorage. The hospital features 25 acute care beds including 4 birthing suites and 2 intensive care beds. The Care Center adjacent to the hospital adds an additional 19 long-term care beds. Providence Kodiak Island Counseling Center offers counseling for all age groups, ther- apy for families and couples, mental health clinicians in the schools, case management for the chronically mentally ill, medication management, and outpatient chemical depend- ency treatment. PKIMC offers a significant range of inpatient and outpa- tient services including emer- gency department, surgery, maternity, general medicine, physical therapy, specialty clinics, diagnostics, pharmacy and home health care. Key Hospital Services Provided in Calendar Year 2008 1 184 births 5,757 x-rays 990 surgeries 1,787 CT scans 112,763 lab procedures 726 MRI's 4,363 emergency room patients 14,848 physical therapy procedures 1,045 mammograms 5,417 occupational therapy procedures 20 Kodiak Island Borough Popular Annual Financial Report Community Development... The Community Development Department (CDD) is the Planning and Zoning agency of the Borough. CDD provides staff support to the Planning and Zoning Commission and the Parks and Recreation committee. The CDD also provides administrative support to the LEPC (Local Emergency Planning Committee). CDD is also in charge of zoning code enforcement, emergency management and coastal management planning, as well as junk vehicle removal. Answering questions about the use of private and public land is where a major portion of the department's time and resources are spent. Projects completed in FY 2008 are the borough's Comprehensive Plan, Coastal Man- agement Plan, and Hazard Mitigation plan. Plans for FY 2009 include completion of the Parks and Recreation Trails Plan and the North Star Elementary Traffic and Pedestrian Master Plan. During FY2008 the Planning and Zoning Commission dealt with 22 cases associated with variances, conditional use permits, rezoning requests, etc. The CDD issued 214 zoning compliance permits, responded to 13 zoning violation complaints, removed 261 junk vehicles and had 4 tons of junk removed CDD manages the Animal Control and building inspection contracts with the City of Kodiak. These programs cover the road system outside of the City of Kodiak. Road Service Maintenance and Repair... All four Road Service Areas have continued ongoing road maintenance - grading, snow plowing, sanding, in some areas, ditch cleaning and pothole repairs. Bay View Road Service Area has added additional gravelling and compaction and di- rected proper crowns be maintained for better runoff on their roads. Monashka Bay Road Service Area, in addition to ongoing road maintenance activities, has accomplished new ditching, culvert installation, new guardrail installation and added signage noting lower speed limits and alerts for "Children Playing". Miles of FY2008 cost per Service Area No. 1 Road Expenditures Mile has continued the Womens Bay Service Area 12 $ 145,075.00 12,090 usual road mainte- Service Area No. 1 10 250,246 25,025 nance activities along Monashka Bay Road Service Area 2 47,009 23,505 with ditch cleaning Bay View Road Service Area 1 6,834 6,834 and dust control. Womens Bay Service Area continues regular road maintenance, grading ,and snow plowing. 21 Kodiak Island Borough Popular Annual Financial Report Fire Protection and Emergency Services... The Kodiak Island Borough has three fire protection service areas and two fire stations on the road system. They are Fire Protection Area No. 1, Womens Bay Service Area, and the Airport Fire Protection Service Area. The Bayside Fire Station is located in Fire Protection Area No.1 and provides fire and emergency medical services to the residents and visitors in the Monashka Bay area. The Bayside Fire Station has an ISO Class 4 rating. The Bayside Fire Station is staffed with one paid full time fire chief and 27 volunteer firefighters. The Bayside Fire Station has seven pieces of fire apparatus. The Bayside Fire Station responded to 143 calls for assistance and completed over 2,500 man hours of training in 2008. The Womens Bay Fire Station is located in the Womens Bay Service Area and provides fire and emergency medical services to the residents and visitors of the Womens Bay area as well as the Airport Fire Protection Area. The Womens Bay Fire Station has an ISO Class 9 rating. W i IF - Boat rescue at Mill Bay Beach 2/9/2008 The Womens Bay Fire Sta- tion is staffed with a volun- teer fire chief and 12 volun- teer firefighters. The Womens Bay Fire Station has five pieces of fire apparatus. The Womens Bay Fire Sta- tion responded to 32 calls for assistance and com- pleted over 1,200 man hours of training in 2008. The Bayside Community Training Center (CTC) is part of the Bayside Fire Station and provides fire and emergency medical training to the local emergency responders. The Bayside CTC is also an authorized Training Center for the American Health and Safety Institute and conducts several Basic First Aid and CPR classes and other community based emergency training classes. Together with the training sites at PKIMC and KANA the Bayside CTC trains over 500 people a year in Basic First Aid, CPR, and other courses. The Bayside Fire Station is also home to the Kodiak Area Radio Emergency Services WARES). This is a volunteer organization of HAM radio operators that provides emer- gency communications and logistical support for area emergency services agencies. 22 Kodiak Island Borough Popular Annual Financial Report Emergency Preparedness... Kodiak is located on the ring of fire with a string of volcanoes on the Alaska Peninsula just west of the island and a subduction zone (major earthquake generation zone) running offshore on the island's east side. We truly live in a dynamic environment prone to a number of potential natural and man made disasters. Disasters that have occurred in the past that have shaped island include: the 1912 Mount Katmai ash fall the blanketed the island with over 5 feet of ash in places, 1916 influenza that killed a number of Kodiak inhabitants, the 1964 Great Alaska Earthquake and Tidal Wave that destroyed a number of villages and communities around the is- land including the downtown area of the City of Kodiak, the 1972 Pillar Mountain rock slide that stopped the construction of the St Herman Boat Harbor for decades and the 1989 Exxon Valdez Oil spill that impacted the fishing economy of the community and covered selected shores on the island with thick heavy oil. The City of Kodiak, Kodiak Island Borough, and the US Coast Guard are working to- gether in a coordinated fashion to prepare, respond and recover from these disasters. Remember: IT IS NOT A MATTER OF "IF" IT IS A MATTER OF "WHEN". Be prepared! 1964 Earthquake and Tsunami photograph by Sid Omlid The Kodiak Island Borough, the City of Kodiak ,and the Alaska Division of Homeland Security/Emergency Management have published the Kodiak Area Emergency Prepar- edness Guide that identifies hazards, discusses the warning system that is in place (Tsunami Sirens), and discusses how you can be proactive in preventing loss of live and property. It also discusses how your family can be prepared for such events, what to consider, and who to contact. Take some time to look this document over. Ask ques- tions, and be prepared before the next event happens. Build a survival kit for you fam- ily complete with water, food, first aid etc. You could be relying on your wits for a number of days before help comes. This emergency preparedness guide can be ac- quired from the office of the Community Development Department. It is free. Take what you need, but need what you take. Call 1-907-486-9363. 23 Kodiak Island Borough Popular Annual Financial Report Construction Projects... The Borough has sold $28,000,000 worth of General Obligation Bonds since 2005 to fund safety, renovation, and new construction of educational facilities including a Seis- mic Vulnerability Assessment of all schools and a new swimming pool. The Seismic Vulnerability Assessment identified five buildings in the District having moderate to severe structural deficiencies. The upgrades to the most vulnerable sec- tions of the Middle School were completed in 2007 and 2008. Seismic Upgrades to Ouzinkie, Peterson, and the KHS Library were completed in 2008. The assessment also identified numerous non-structural deficiencies which are scheduled to be remedied in 2009. Construction of the new pool is currently 2/3 complete and on schedule to open in August 2009. New Swimming Pool Several of the bond projects were put on hold pending the outcome of the bond issue for a new High School. These projects are currently being re-evaluated. Other building projects: The Community Health Center Addition to PKIMC is currently approx 2/3 complete and on schedule for completion in May 2009. The Bayside Fire Station Addition will provide needed indoor storage for firefighting apparatus and equipment. Construction is scheduled to begin in April 2009 and be complete by November 2009. The conceptual planning is finished and we are moving into the design phase for a new ADF&G facility on Near Island. 24 Kodiak Island Borough Popular Annual Financial Report Solid Waste... Solid waste generated on the Kodiak Road system is disposed of at the landfill. In FY2008 only 14,730 tons were disposed of compared to 16,997 tons in FY2007. This is in large part due to the decreased amount of construction/demolition waste gen- erated in FY2008. The Borough contracts with Alaska Pacific Environmental Services to collect the solid waste generated along the road system. Solid waste collection cost $1,165,047 in FY2008 and $1,112,008 in FY2007. This is an increase in collection costs of $14/ton; from $65/ton in FY2007 to $79/ton in FY2008. This increase reflects the delay in requesting proposals for a new collection system and therefore the need to extend the collection contract. Bell and Associates, Inc. has finished their study of the solid waste management system along the road system. The goals of this project were to evaluate the current collection and disposal systems and make recommendations for a system that will maximize cost effectiveness for the solid waste management system. General Administration... The Borough has several administrative functions that have to take place. These in- clude management of the Borough, financial services, information services, clerical support of the Assembly, etc. In FY2008, the Borough Assembly held 18 regular meetings and 10 special meetings. 21 ordinances were passed along with 44 resolutions. 43 contracts were approved. The Clerk's office provided administrative support to all of the assembly meetings. They took approximately 120 pages of minutes. They added 99 cubic feet of archival records into our records system and destroyed 100 cubic feet of records. 595 pass- ports were processed by the clerk's office in FY2008. The Finance Department collected $10,247,665 of FY2008 property taxes which was 99% of the tax roll. Severance taxes came in at $1,436,210 and the Borough received $3,276,741 in grants. The Borough also earned $4,346,309 in interest on our invest- ments The Borough received a Certificate of Achievement for our Comprehensive Annual Financial Report and a Distinguished Budgetary Presentation Award for our budget. The Child Care Assistance Program served an average of 80 families per month with 130 children. This makes a real difference in allowing parents to be employed. 25 Kodiak Island Borough Popular Annual Financial Report Statistical Information... Demographic and Economic Statistics Ratios of Outstanding Debt by Type General Deposits in Personal Per Capita School Unemployment Obligation Population Local Banks Income Income Enrollment Rate 1999 13,848 112,363,000 347,630,000 25,264 2,798 5.1 2000 13,989 111,670,000 373,164,000 26,695 2,810 13.4 2001 13,913 117,503,000 382,227,000 27,794 2,774 10.9 2002 14,167 123,221,000 381,413,000 27,873 2,821 18.2 2003 13,874 120,352,000 393,604,000 29,479 2,750 10.3 2004 13,811 130,325,000 408,069,000 30,874 2,677 10.6 2005 13,466 133,370,000 430,051,000 32,896 2,678 9.5 2006 13,638 141,434,000 469,161,000 36,807 2,718 6.7 2007 13,506 140,915,000 n/a n/a 2,635 6.2 2008 13,574 139,416,000 n/a n/a 2,671 9.3 Ratios of Outstanding Debt by Type 26 General Total Percent of Fiscal Obligation Notes Primary Personal Per year Bonds Payable Government Income Capita 1999 18,910,000 2,866,855 21,776,855 6.26% 1,573 2000 17,025,000 2,823,480 19,848,480 5.32% 1,419 2001 17,690,000 2,531,150 20,221,150 5.29% 1,453 2002 16,615,000 1,911,221 18,526,221 4.86% 1,308 2003 15,620,000 1,241,254 16,861,254 4.28% 1,215 2004 14,385,000 1,262,123 15,647,123 3.83% 1,133 2005 32,965,000 1,270,210 34,235,210 7.96% 2,542 2006 31,155,000 1,582,188 32,737,188 6.98% 2,400 2007 29,060,000 1,636,924 30,696,924 na 2,273 26 Kodiak Island Borough Popular Annual Financial Report Our Website... The Kodiak Island Borough" + F } . maintains a website for con- venient public access to local government. The homepage provides navi- avi-gationallinksto gational links toinformation that is often requested by the public as well as News and Announcements and a Calen- dar for current events. Visitors can find information about public meetings that--—=+�� includes calendars, agendas, _ packets and minutes. Visitors m can also research minutes from historical meetings such as the first Assembly meeting on October 12, 1963, Borough Code, and other permanent records, such as contracts, ordi- nances, resolutions, and newsletters. Many documents and reports are posted on the site. Copies of the Com- prehensive Annual Financial Report, the budget, and fee schedule are all available on the Finance Department pages. Comprehensive plans and maps for communities and districts throughout the Borough are available on the Community Development Department pages. Reports such as seis- mic assessments on school buildings and the recent solid waste manage- ment study can also be viewed. Our site includes information on a variety of topics, such as: Boards, Committees and Commissions Elections, Passports, and Job openings Planning and Zoning Landfill Operations, Road and Fire Services The Kodiak Fisheries Research Center Facility projects such as the new pool and school building upgrades Property and Severance Taxes In the works is an upgrade to property information which will include access to assessed values, property taxes and an improved Geographical Informa- tion System (GIS). To access this information and so much more, please visit our site at www.kodiakak.us 27