FY2008 Popular Annual Financial Report,,, —,,dpr
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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