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KODIAK ISLAND BOROUGH
Comprehensive Annual Financial Report
June 30, 2006
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KODIAK ISLAND BOROUGH
Table of Contents
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Page
Introductory Section:
Letter of Transmittal
i -iv
GFOA Certificate of Achievement
v
Organizational Chart
vi
Elected Officials (Photographs)
vii
Borough Officials
viii
Map of Kodiak Island Borough
ix
Financial Section:
Independent Auditors' Report
1 -2
Management's Discussion and Analysis
3 -12
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets
13
Statement of Activities
14
Fund Financial Statements:
Balance Sheet — Governmental Funds
15
Reconciliation of Net Assets Between the Government -Wide and Fund Financial
Statements
16
Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental
Funds
17
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities
18
Balance Sheet — Proprietary Funds — Business -Type Activities — Enterprise Funds
19
Statement of Revenues, Expenses, and Changes in Fund Equity — Proprietary Funds —
Business -Type Activities — Enterprise Funds
20
Statement of Cash Flows — Proprietary Funds — Business -Type Activities — Enterprise
Funds
21 -22
Notes to Financial Statements
23 -55
Required Supplementary Information:
Schedule of Funding Progress — PERS
57
Budgetary Comparison Schedule — General Fund
58 -59
Budgetary Comparison Schedule — Special Revenue Fund — Facilities
60
Budgetary Comparison Schedule — Debt Service Fund — Education and Health
61
Notes to Required Supplementary Information — Budgetary Comparison Schedules
62
Nonmajor Governmental Funds:
Combining Balance Sheet
63
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
64
Nonmajor Special Revenue Funds:
Combining Balance Sheet
66 -69
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KODIAK ISLAND BOROUGH
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Table of Contents
Page
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
(Deficits)
70 -73
Schedules of Revenues, Expenditures, Transfers, and Changes in Fund Balances
(Deficit) — Budget and Actual:
Fire and Road Service Areas:
Fire:
Fire Protection Area No. 1
74
Women's Bay Fire Department
75
Kodiak Airport Fire District
Road:
76
Monashka Bay Road Service Area
77
Service District No. 1
78
Women's Bay Road Service Area
79
Bay View Road Service Area
80
Service Area No. 2
81
Coastal Management
82
Child Care Assistance Program
83
L.E.P.C.
84
Land Sales
85
Buildings and Grounds
86
Woodland Acres Street Light Service Area
87
Trinity Acres Street Light Service Area
88
Kodiak Arts Council
89
Tourism Development
90
Mission Lake Tide Gate
Fern Fuller Trust
91
92
Trinity Acres Paving
93
Debt Service Funds:
Balance Sheet — Other
94
Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and
Actual:
Other
95
Nonmajor Capital Projects Fund:
Combining Balance Sheet
96
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
97
Schedule of Revenues, Expenditures, and Changes in Fund Balance (Deficit):
Various Borough Projects
98
State Capital Grants
99
Supplemental Schedule of Capital Projects:
Capital Projects Funds
100 -101
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KODIAK ISLAND BOROUGH
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Table of Contents
Enterprise Funds:
Statement of Revenues, Expenses, and Changes in Fund Equity — Budget
and Actual:
Municipal Solid Waste Collection and Disposal
102
Hospital Facilities
103
Kodiak Fisheries Research Center
104
911 Services Funds
105
Supplementary Schedules:
Summary of Bonded Debt Service Requirements to Maturity
106
General Obligation Refunding Bonds, 1998 Series A — Retirement Schedule
107
General Obligation Bonds, 2000 Series E — Retirement Schedule
108
General Obligation Bonds, 2000 Series F — Retirement Schedule
109
General Obligation Bonds, 2003 Series B — Retirement Schedule
110
General Obligation Bonds, 2004 Series C — Retirement Schedule
General Obligation Bonds, 2004 Series D — Retirement Schedule
111
Statistical Section — Fund Information:
112
Net Assets by Component — Last Two Fiscal Years
113
Changes in Net Assets — Last Two Fiscal Years
114 -116
Fund Balances of Governmental Funds — Last Two Fiscal Years
117
Changes in Fund Balances of Governmental Funds — Last Three Fiscal Years
118
General Revenues by Source — Last Ten Fiscal Years
119
Assessed and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years
120
Direct and Overlapping Property Tax Rates and Contributions to the School District
121
Principal Property Tax Payers — Current Year and Nine Years Ago
122
Property Tax Levies and Collections — Last Ten Years
123
Ratios of Net General Bonded Debt Outstanding — Last Ten Fiscal Years
124
Computation of Direct and Overlapping Debt
125
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Legal Debt margin Information — Last Two Fiscal Years
126
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General
Governmental Expenditures and Transfers — Last Ten Fiscal Years
127
Demographic and Economic Statistics — Last Ten Fiscal Years
128
Average Monthly Employment & Earnings 2005
129
Miscellaneous Statistical Data
130 -131
Property Value, Construction and Bank Deposits
132
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INTRODUCTORY SECTION
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Kodiak Island Borough
Finance Department
710 Mill Bay Road
Kodiak, Alaska 99615
Phone (907) 486 -9320 Fax (907) 486 -9399
December 1, 2006
Members of the Assembly
Kodiak Island Borough, Alaska
State of Alaska statutes and local charter provisions require that all general - purpose local governments
publish a complete set of financial statements presented in conformity with accounting principles generally
accepted in the United State of America (GAAP) and audited in accordance with auditing standards
generally accepted in the United States of America by a firm of licensed certified public accountants.
Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the Kodiak
Island Borough (Borough) for the fiscal year ended June 30, 2006.
This report consists of management's representations concerning the finances of the Borough.
Consequently, management assumes full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these representations,
management of the Borough has established a comprehensive internal control framework that is designed
both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable
information for the preparation of the Borough's financial statements in conformity with GAAP. Because
the cost of internal controls should not outweigh their benefits, the Borough's comprehensive framework
of internal controls has been designed to provide reasonable rather than absolute assurance that the
financial statements will be free from material misstatement. As management, we assert that, to the best of
our knowledge and belief, this financial report is complete and reliable in all material respects.
The Borough's financial statements have been audited by Altman, Rogers & Co., a firm of licensed
certified public accountants. The goal of the independent audit was to provide reasonable assurance that the
financial statements of the Borough for the fiscal year ended June 30, 2006, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements; assessing the accounting principles used and significant
estimates made by management; and evaluating the overall financial statement presentation. The
independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an
unqualified opinion that the Borough's financial statements for the fiscal year ended June 30, 2006, are
fairly presented in conformity with GAAP. The independent auditors' report is presented as the first
component of the financial section of this report.
1 Members of the Assembly
Kodiak Island Borough, Alaska
1 The independent audit of the financial statements of the Borough was part of a broader, state and federally
mandated "Single Audits" designed to meet the special needs of state and federal grantor agencies. The
standards governing Single Audit engagements require the independent auditor to report not only on the
fair presentation of the financial statements, but also on the audited government's internal controls and
compliance with legal requirements, with special emphasis on internal controls and legal requirements
involving the administration of state and federal awards. These reports are available in the Borough's
separately issued Single Audit Report.
i GAAP require that management provide a narrative introduction, overview, and analysis to accompany the
basic financial statements in the form of Management's Discussion and Analysis (MD &A). This letter of
transmittal is designed to complement MD &A and should be read in conjunction with it. The Borough's
MD &A can be found immediately following the report of the independent auditors.
Profile of the Government
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 second largest in the United
States. About two- thirds of the Borough lies in the Kodiak archipelago with the remaining third on the
Alaska Peninsula, across the Shelikof Strait from Kodiak Island. The Shelikof Strait is only 20 miles wide
in places. The Borough encompasses 7,130 square miles, making it slightly smaller than the State of
Massachusetts and serves a population of 13,811.
The Borough was incorporated September 30, 1963, as a Second Class Borough by Chapter 146 Sessions,
Laws of Alaska 1961, as amended. The powers granted to the Borough include area -wide powers and non
area -wide powers. Area -wide powers are health, education, assessment and collection of taxes for both the
Borough and cities within the Borough, planning and zoning, and general administrative services. Non
area -wide powers include parks and recreation, economic development, solid waste disposal, and animal
control. Service districts within the Kodiak Island Borough provide fire protection, road maintenance and
construction, and street lighting. 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
members who are elected at- large.
' The Borough provides a full range of services including fire protection, the construction and maintenance
of roads and other infrastructure, community and economic development, health and sanitation, culture and
recreation and solid waste collection and disposal. The Borough also is financially accountable for a legally
separate school district which is reported separately within the Borough's financial statements. Additional
information on this legally separate entity can be found in the basic financial statements.
1 The annual budget serves as the foundation for the Borough's financial planning and control. All
departments of the Borough are required to submit requests for appropriation to the Borough manager. The
Borough manager uses these requests as the starting point for developing a proposed budget. The Borough
Manager then presents this proposed budget to the assembly for review by April 30. The assembly is
required to hold public hearings on the proposed budget and to adopt a final budget by no later than June
10. The appropriated budget is prepared by fund and department. The Assembly makes appropriation
transfers between funds and /or departments only after the adoption of an ordinance. Borough staff may
execute transfers between line items within a department. Amendments to the budget can occur anytime
during the fiscal year through the Borough Assembly or administrative action. Expenditures may- not
legally exceed appropriations at the following levels: Capital Projects Funds — project level, all other funds
department level. All funds, except Capital Projects Funds, are budgeted on an annual basis
encompassing a fiscal year. Budgets of Capital Projects Funds generally encompass the period from
start-up to project completion, which is generally greater than one year. Budget -to- actual comparisons are
provided in this report for each individual governmental and proprietary fund for which an appropriated
annual budget has been adopted. For the general fund, facilities special revenue fund and education and
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Members of the Assembly
Kodiak Island Borough, Alaska
health debt service fund, this comparison is presented on pages 58 -61 as part of required supplementary
information. For governmental funds, other than the general fund, and education, facilities special revenue
fund and education and health debt service fund, this comparison is presented in the governmental fund
subsection of this report, which starts on page 62 . Also included in the governmental fund subsection are
project - length budget -to- actual comparisons for each of the capital projects. For proprietary funds, this
comparison is presented in the proprietary funds subsection of this report, which starts on page 101.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered
from the broader perspective of the specific environment within which the Borough operates.
Local economy. The economic condition of the Kodiak Island Borough remains healthy. The main
industries of the Borough are commercial fishing, logging, and tourism. While some segments of the
commercial fishing industry have declined, others have grown. There have been large cutbacks in the
logging industry, which can be attributed to the slowdown in the Asian economy. Tourism continues to
grow in Kodiak with an increased number of visitors each year. To accommodate this demand,
construction of fishing lodges, bed and breakfast accommodations and recreational facilities has increased
along with an increase in charter boat and guide operations. There has also been an increase in the number
of cruise ships visiting Kodiak in recent years as the cruise ship companies have expanded their tours of
Alaska's coastal communities.
Relatively new to the Kodiak Island Borough is the aerospace industry, which began with construction of
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the Kodiak Launch Complex in 1998. Owned by the Alaska Aerospace Development Corporation
(AADC), a public corporation of the State of Alaska, the Kodiak Launch complex is the first complete
launch facility built in the United States since the 1960's and the first not owned by the Federal
Government. The state -of -the -art facility includes a launch control center, payload processing facility,
spacecraft assembly building and launch pad. It is designed 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, employing nearly 1,400 people and
providing 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 Seafood industry is by far the largest industry in the Kodiak Island Borough. This industry includes
commercial fishing, fisheries research, management and enforcement, seafood processing, and
maintenance and support services. Kodiak is home to the largest 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.
' Employment varies throughout the year with July, August, and September being the peak months due to
the increased activity in the fisheries and related businesses, and then declines in November and December
when fishing quotas are reached. The local unemployment rate has fluctuated from 5.1% to 14.9% over the
last five years, but the overall average has remained around 9 %.
Long -term financial planning. Every year the Borough adopts a five -year strategic plan. In this plan the
Borough decides what its' goals and objectives are for the next five years. The Borough breaks these goals
out based on our Mandatory and Adopted powers. To view the complete Strategic plan you can visit our
web site at www.kodiakak.us.
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Members of the Assembly
Kodiak Island Borough, Alaska
Cash management policies and practices. Operating funds of the Borough are invested in interest
producing instruments in accordance with the Borough's investment code. Cash forecasts are prepared to
enhance investment income and reduce market risk by matching investment maturities to anticipated cash
flows. Investment income includes appreciation or depreciation in the fair value of investments.
Risk management. The Borough maintains an adequate fund balance in the General Fund, plus certain
other funds where the liability may arise, to cover potential losses that may not be covered by insurance or
the deductible portion of claims that are covered by insurance. In addition, various control techniques,
including employee accident prevention training, have been implemented to minimize accident - related
losses. Third party coverage is currently maintained for all of the Borough's property and activities.
Additional information on the Borough's risk management activity can be found in note 8 of the notes to
the financial statements.
Pension and other post employment benefits. The Borough participates in the Alaska Public Employees
Retirement System (PERS), a defined benefit agent, multiple employer public employee retirement system.
PERS was established and is administered by the State of Alaska to provide pension, post employment
healthcare, death, and disability benefits to eligible participants. At June 30, 2005 (date of most recent
' actuarial analysis), the actuarial value of liabilities exceeded the actuarial value of assets by $8.2 million.
Effective July 1, 2006, the PERS retirement plan was closed by senate Bill 141. A new defined
contribution plan for members first hired on or after July 1, 2006 was established.
The Borough also administers a Section 457 deferred compensation arrangement for eligible Borough
employees. Additional information on the Borough's pension arrangements and post employment benefits
1 can be found in Note 11 in the notes to the financial statements.
Awards and Acknowledgements
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The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the Borough for its comprehensive
annual financial report (CAFR) for the fiscal year ended June 30, 2006. This was the seventeenth
consecutive year that the Borough has received this prestigious award. In order to be awarded a Certificate
of Achievement, a government must publish an easily readable and efficiently organized comprehensive
annual financial report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR
continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the
GFOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and dedicated services of
the entire staff of the administration and finance department. We would like to express our appreciation to
all members of the department who assisted and contributed to the preparation of this report. Credit must
be given to the mayor and the assembly for their unfailing support for maintaining the highest standards of
professionalism in the management of the Borough's finances.
Respectfully submitted,
1.0e
Rick L. Gifford
Borough Manager
7� a� A. A4-�_
Karleton G. Short
Director of Finance
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Kodiak Island Borough
Alaska
For its Comprehensive Annual
Financial. Report
for the Fiscal Year Ended
June 30, 2005
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to government units
and public employee retirement
stems whose comprehensive annual financial reports (CAFRs)
achieve the highest standards in government accounting and
financial reporting.
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President
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Executive Director
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Kodiak Island Borough
Fiscal Year 2006
Borough Attorney
Assistant Fire
Chief
Borough Manager II
Assistant Clerk
Borough Clerk
Arts Council
Director
Assistant
Deputy Clerk
Finance /MIS
Director
MIS Programmer/
Analyst
Engineering/
Facilities Director
General
Accountant
Community
Development
Director
Assessor
Accounts Payable
Supervisor
Accounting Tech
Secretary III
Environmental
MIS Network
Associate Planner
Property Appraiser
Administrator
Specialist
P
Maintenance
Worker
Associate Planner
Appraiser
Enforcement
Technician
KFRC
Baler /Landfill
Maintenance
Supervisor
Drafting Technician
Assessment Clerk 1
Engineer
KFRC
Secretary III
Receptionist
Project Manager/ Baler Operator 11
Inspector
Project Assistant Baler Operator I
Baler Operator I
Baler Operator I
Baler Operator II
Borough Manager II
Assistant Clerk
Borough Clerk
Arts Council
Director
Assistant
Deputy Clerk
Finance /MIS
Director
MIS Programmer/
Analyst
General
Accountant
Accounting Tech
MIS Operations
Accounts Payable
Supervisor
Accounting Tech
Payroll
MIS Network
Childcare Assistance
Administrator
Administrator
Revenue
Accountant
Cashier
Secretary III
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MAYOR AND ASSEMBLY MEMBERS
Tom Abell
Deputy Presiding Officer,
At Large, 2008
Jerome Selby
Mayor, 2007
Reed Oswalt
At Large, 2008
Pat Branson
At Large, 2007
Mel Stephans
At Large, 2006
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Barbara Williams
At Large, 2007
Cecil Ranney
At Large, 2006
KODIAK ISLAND BOROUGH
KODIAK, ALASKA
BOROUGH OFFICIALS
YEAR ENDED JUNE 30, 2006
MAYOR
Jerome Selby `07
ASSEMBLY
Tom Abell '08
Sue Jeffrey `08
Cecil Ranney `06
Barbara Williams `07
Patricia Branson `07
Reed Oswalt `08
Mel Stephens `06
MANAGEMENT
RickGifford .................................................... ...............................
........................Borough Manager
Karleton G. Short .............................. ............................... ........................Finance
Director/Treasurer
Bud Cassidy ................................................. ...............................
Engineering and Facilities Director
NovaJavier, CIVIC ........................................................................
............................... Borough Clerk
Mary Meyers Ogle .................. ............................... ......................Community
Development Director
TomAnderson ........................................................................................
............................... Assessor
RobertA. Himes ...................................................................
............................... Assistant Fire Chief
Jamin, Ebell, Schmitt & Mason ................. ...............................
Borough Attorney (Contracted Firm)
Betty Walters ...................................................... ...............................
Superintendent, School District
DriaBray Holloway .............................................................
............................... General Accountant
CassandraJuenger ...............................................................
............................... Revenue Accountant
Lauri Whiddon ..................................................... .............................HR
Officer /Executive Assistant
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Independent Auditors' Report
t The Honorable Mayor and Members of the Assembly
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' Kodiak Island Borough:
We have audited the accompanying financial statements of the governmental activities, the business -type
' activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the Kodiak Island Borough, Alaska, as of and for the year ended June 30, 2006, which
collectively comprise the Borough's basic financial statements as listed in the table of contents. These
financial statements are the responsibility of the Kodiak Island Borough, Alaska's management. Our
responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
' presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, the aggregate
' discretely presented component unit, each major fund, and the aggregate remaining fund information of the
Kodiak Island Borough, Alaska, as of June 30, 2006, and the respective changes in financial position and
cash flows, where applicable, thereof for the year then ended in conformity with accounting principles
' generally accepted in the United States of America..
In accordance with Government Auditing Standards, we have also issued our report dated September 22,
2006 on our consideration of the Kodiak Island Borough, Alaska's internal control over financial reporting
and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements
and other matters. The purpose of that report is to describe the scope of our testing of internal control over
' financial reporting and compliance and the results of that testing, and not to provide an opinion on the
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be considered in assessing the
results of our audit.
' The management's discussion and analysis on pages 3 through 12, the schedule of funding progress for
PERS on page 57 and the budgetary comparison information on pages 58 through 62 are not a required part
' of the basic financial statements but are supplementary information required by accounting principles
generally accepted in the United States of America. We have applied certain limited procedures, which
consisted principally of inquiries of management regarding the methods of measurement and presentation
' of the required supplementary information. However, we did not audit the information and express no
opinion on it. 1
425 G Street Suite 500 Anchorage, Alaska 99501 Phone 907 - 274 -2992 Fax 907 - 274 -2993
' Offices in Kodiak, Juneau and Soldotna A Professional corporation
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The Honorable Mayor and Members of the Assembly
Kodiak Island Borough
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Kodiak Island Borough, Alaska's basic financial statements. The accompanying
supplementary information, including the introductory section, supplemental information, supplementary
schedules and statistical tables are presented for purposes of additional analysis and are not a required part
of the basic financial statements. The supplemental information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all
material respects in relation to the basic financial statements taken as a whole. The introductory section,
supplementary schedules and statistical tables have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we express no opinion on them.
September 22, 2006
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KODIAK ISLAND BOROUGH
Management's Discussion and Analysis
June 30, 2006
As management of the Kodiak Island Borough, we offer readers of these financial statements this narrative
overview and analysis of the financial activities of the Kodiak Island Borough for the fiscal year ended June 30,
2006. We encourage readers to consider the information presented here in conjunction with additional
information that we have furnished in our letter of transmittal, which can be found on pages i - v of this report.
Financial Highlights
• The assets of the Kodiak Island Borough exceeded its liabilities at the close of FY2006 by $141,082,630.
Of this amount, $39,777,794 (unrestricted net . assets) may be used to meet the Borough's ongoing
obligations to citizens and creditors.
• In FY2006 the Borough's total net assets increased by $2,261,394.
• At the end of the current fiscal year, the Borough's governmental funds reported combined fund balances
of $65,468,515, an increase of $2,100,146 in comparison with the prior year. At the end of the FY2006,
unreserved fund balance for the general fund was $2,026,113, 16% of total general fund expenditures.
• The Borough's bonds payable decreased by $1,814,553 or 5% due to the payment of principal and no new
bond issues.
Overview of the Financial Statements
Government -wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad overview of the Kodiak
Island Borough's finances, in a manner similar to a private- sector business.
The statement of net assets presents information on all of the Kodiak Island Borough's assets and liabilities, with
the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as
a useful indicator of whether the financial position of the Kodiak Island Borough is improving or deteriorating.
The statement of activities presents information showing how the government's net assets changed during the
most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the
' change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods.
Both of the government -wide financial statements distinguish functions of the Kodiak Island Borough that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other functions
that are intended to recover all or a significant portion of their costs through user fees and charges (business -type
activities). The governmental activities of the Kodiak Island Borough include general government, emergency
preparedness, community and economic development, health and sanitation, education, culture and recreation,
service district maintenance and primary and secondary education. The business -type activities of the Kodiak
Island Borough include a solid waste collection and disposal facility, a Borough owned hospital, the Kodiak
Fisheries Research Center and a 911 emergency system.
The government -wide financial statements include not only the Kodiak Island Borough itself (known as the
primary government), but also the legally separate school district for which the Kodiak Island Borough is
financially accountable. Financial information for this component unit is reported separately from the financial
information presented for the primary government itself.
The government -wide financial statements can be found on pages 13 -14 of this report.
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KODIAK ISLAND BOROUGH I
Management's Discussion and Analysis, Continued I
Fund Financial Statements '
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities or objectives. The Kodiak Island Borough, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance- related legal requirements. All of the funds of the
Kodiak Island Borough can be divided into two categories: governmental funds and proprietary funds.
Governmental Funds — Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the government -wide
statements, governmental fund financial statements focus on near -term inflows and outflows of spendable
resources as well as on balances of spendable resources available at the end of the fiscal year. Such information ,
may be useful in evaluating a government's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better understand
the long -term impact of the government's near -term financing decisions. Both the governmental fund balance
sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities.
The Kodiak Island Borough maintains 27 individual governmental funds. Information is presented separately in ,
the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the general fund, the facilities special revenue fund and the education and health
debt service fund, which are all considered to be major funds. Data from the other nonmajor funds are combined '
into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is
provided in the form of combining statements elsewhere in the supplementary information section of this report.
The Kodiak Island Borough adopts an annual appropriated budget for its general fund, special revenue funds and
debt service funds. Budgetary comparison statements have been provided for the funds to demonstrate
compliance with this budget.
The basic governmental financial statements can be found on pages 15 -18 of this report.
Proprietary Funds — The only proprietary fund type that the Kodiak Island Borough uses is enterprise funds.
Enterprise funds are used to report the same functions presented as business -type activities in the
government -wide financial statements. Proprietary funds provide the same type of information as
government -wide financial statements, only in more detail. The Kodiak Island Borough uses enterprise funds to
account for a solid waste collection and disposal facility, a Borough -owned hospital leased to the Sisters of
Providence d.b.a. Providence Alaska Medical Center, rents and utilities of the Borough -owned Kodiak Fisheries
Research Center, and 911 phone charges and expenses.
The Kodiak Island Borough adopts an annual appropriated budget for its proprietary funds. Budgetary
comparison statements have been provided for the funds to demonstrate compliance with the budget.
The basic proprietary fund financial statements can be found on pages 19 -22 of this report.
Notes to the Financial Statements — The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements. The notes to the
financial statements can be found on pages 23 -55 of this report.
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KODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
Other Information — In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning the Kodiak Island Borough's progress in funding
its obligation to provide pension benefits to its employees and budgetary comparison schedules for the general
fund facilities special revenue fund and the education and health debt service fund. Required supplementary
information can be found on pages 58 -64 of this report.
Government -wide Financial Analysis
Statement of Net Assets
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the
case of the Kodiak Island Borough assets exceeded liabilities by $141,082,630 at the close of FY2006, the most
recent fiscal year.
The largest portion of the Kodiak Island Borough's net assets ($101,304,836 or 71 %) reflects its investment in
capital assets (e.g. land, buildings, equipment and infrastructure) net of related debt. The Kodiak Island Borough
uses these capital assets to provide services to citizens; consequently, these capital assets are not available for
future spending. Although the Borough's investment in capital assets is reported net of debt, it should be noted
that the resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
For more detailed information see the statement of net assets on page 13.
The remaining balance of unrestricted net assets, $39,777,794 may be used to meet the Borough's ongoing
obligations to citizens and creditors.
Governmental
Business -type
Activities
Activities
Total
2006
2005
2006
2005
200b
2005
Current and other assets
$
62,586,633
60,501,959
6,803,479
5,599,369
69,390,112
66,101,328
Capital assets
74,210,255
75,876,951
39,858,719
41,148,995
114,068,974
117,025,946
Total assets
$
136,796,888
136,378,910
46,662,198
46,748,364
183,459,086
183,127,274
Long -term liabilities
$
31,947,050
33,698,409
4,661,685
4,284,141
36,608,735
37,982,550
Other liabilities
(3,519,845)
(3,525,900)
9,287,566
9,849,388
5,767,721
6,323,488
Total liabilities
$
28,427,205
30,172,509
13,949,251
14,133,529
42,376,456
44,306,038
Net assets:
Invested in capital assets,
net of related debt
$
62,716,326
61,154,204
38,588,510
39,878,785
101,304,836
101,032,989
Unrestricted
45,653,357
45,052,197
(5,875,563)
(7,263,950)
39,777,794
37,788,247
Total net assets
$
108,369,683
106,206,401
32,712,947
32,614,835
141,082,630
138,821,236
For more detailed information see the statement of net assets on page 13.
The remaining balance of unrestricted net assets, $39,777,794 may be used to meet the Borough's ongoing
obligations to citizens and creditors.
KODIAK ISLAND BOROUGH
Statement of Activities
Management's Discussion and Analysis, Continued
The following condensed table of changes in net assets displays the revenues and expenses for the current and
prior year.
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants
General revenues:
Property taxes
Grants and entitlements not restricted
to specific programs
Land sale
Severance taxes
Support from primary government
Loss of disposal of capital assets
Licenses and permits
On behalf PERS payment
Other
Investment earnings
Total revenues
Expenses:
General government
Emergency preparedness
Community and economic development
Health and sanitation
Education, culture, and recreation
Service district maintenance
Education
Interest on long -term debt
Municipal solid waste collection
Hospital facilities
Kodiak fisheries research center
911 services
Total expenses
Change in net assets before
transfers
Transfers
Change in net assets
Net assets, beginning of year
Net assets, end of year
Governmental activities Business -type activities Total
2006 2005 2006 2005 2006 2005
f
1
$ 535,045 466,120 6,456,710 5,888,596 6,991,755 6,354,716
1,240,547 721,453 - - 1,240,547 721,453
298,852 2,917,160 - - 298,852 2,917,160
9,807,551
9,063,729
-
-
9,807,551
9,063,729
3,482,351
2,384,538
-
-
3,482,351
2,384,538
363,389
-
-
-
363,389
-
1,186,908
1,005,539
-
-
1,186,908
1,005,539
(53,034)
-
(17,700)
-
(70,734)
-
285,241
-
-
-
285,241
-
113,667
-
-
-
113,667
-
70,065
55,692
409,595
-
479,660
55,692
2,798,391
1,750,321
161,892
70,812
2,960,283
1,821,133
20,128,973
18,364,552
7,010,497
5,959,408
27,139,470
24,323,960
3,984,390
7,156,005
-
-
3,984,390
7,156,005
8,598
25,850
-
-
8,598
25,850
784,002
509,680
-
-
784,002
509,680
403,866
365,072
-
-
403,866
365,072
164,053
185,993
-
-
164,053
185,993
336,385
347,934
-
-
336,385
347,934
10,831,588
10,207,757
-
-
10,831,588
10,207,757
1,700,089
1,101,598
-
-
1,700,089
1,101,598
3,446,453
3,362,348
3,446,453
3,362,348
-
-
1,304,583
1,344,987
1,304,583
1,344,987
-
-
1,856,875
1,878,788
1,856,875
1,878,788
-
-
57,194
69,178
57,194
69,178
18,212,971
19,899,889
6,665,105
6,655,301
24,878,076
26,555,190
1,916,002
(1,535,337)
345,392
(695,893)
2,261,394
(2,231,230)
247,280
170,602
(247,280)
(170,602)
-
-
2,163,282
(1,364,735)
98,112
(866,495)
2,261,394
(2,231,230)
106,206,401
107,571,136
32,614,835
33,481,330
138,821,236
141,052,466
$ 108,369,683
106,206,401
32,712,947
32,614,835
141,082,630
138,821,236
Governmental activities increased the Kodiak Island Borough's net assets by $2,163,282. The major differences
were an increase of over $500,000 in operating grants, over a $1,000,000 increase in interest earnings, and over a
$1,000,000 increase in grants. There were some major increases in expenses also including an increase of
$623,831 in education and $598,491 in interest on long term debt.
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KODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
Business -type activities increased the Kodiak Island Borough's net assets by $98,112. The major differences
were a $568,114 in charges for services and a $361,895 increase in other revenues. Part of the decrease resulted
from the transfer of $247,280 to governmental funds. The proprietary funds had an operating gain of $345,392
before transfers.
2006 Program Revenue vs. Expense by Governmental Activities
Interest on Long -Tenn
Debt
Education
Fern Fuller Trust
Service District
Maintenance
Maintenance and
Operation
Fire Services
Education, Culture and
Recreation
Health and Sanitation
Community Development
Emergency Preparedness
General Government
0 1 2 3 4 5 8 7
For more detailed information see the statement of activities on page 14.
8 9 10
■ expenses
(in
millions)
■ program
revenue
(in
millions)
FA
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KODIAK ISLAND BOROUGH I
Management's Discussion and Analysis, Continued
Financial Analysis of the Government's Funds
As noted earlier, the Kodiak Island Borough uses fund accounting to ensure and demonstrate compliance with
finance- related legal requirements.
Governmental Funds — The focus of the Kodiak Island Borough's governmental funds is to provide information
on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
Kodiak Island Borough's financing requirements. In particular, unreserved fund balance may serve as a useful
measure of a government's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the Kodiak Island Borough's governmental funds reported combined
ending fund balances of $65,468,515, an increase of $2,100,146 in comparison to the beginning of the year.
$57,725,612 of this total amount constitutes unreserved fund balance, of which $574,696 is designated for
subsequent year expenditures and $57,150,916 is undesignated. The remaining $7,742,903 of fund balance is
reserved for long -term interfund borrowings.
The main reasons for this increase are as follows:
• General Fund property taxes exceeded projections by $129,825.
• General Fund severance taxes exceeded projections by $221,878.
• General Fund interest earnings exceeded projections by $169,913.
• Interest earnings in the Facilities Fund exceeded transfers out by $760,501.
• Revenues in the Fire Protection Area 1 fund exceeded expenses by $140,764.
• Revenues in the Womens Bay Fire Department fund exceeded expenses by $48,501.
The general fund is the main operating fund of the Kodiak Island Borough. At the end of the current fiscal year,
unreserved fund balance of the general fund was $2,026,113 with no reserved fund balance. As a measure of the
general fund's liquidity, it may be useful to compare fund balance to total expenditures. Unreserved fund balance
represents 16% of total general fund expenditures.
The fund balance of the Kodiak Island Borough's general fund increased by $213,100 during the current fiscal
year. The key factors leading to this increase were property taxes coming in over budget by $129,825 and
severance taxes coming in $221,878 over budget. The facilities fund had a total fund balance of $38,534,833,
$30,791,930 of which is unreserved. Fund balance increased $760,501 during the year because amounts
transferred out were less than investment earnings.
Proprietary Funds — The Kodiak Island Borough's proprietary funds provide the same type of information
found in the government -wide financial statements, but in more detail.
Net assets of the municipal solid waste collection and disposal fund amounted to $3,865,097, the Hospital
Facilities fund amounted to $17,868,496, the Kodiak Fisheries Research Center fund amounted to $10,938,290
and the 911 Services fund amounted to $41,064.
The total increase in net assets for municipal solid waste collection and disposal was $704,302, and for the 911
services fund it was $8,420. The total decrease in net assets for the hospital facilities fund was $422,680, and for I
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KODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
the Kodiak Fisheries Research Center it was $191,930. Other factors concerning the finances of these four funds
have already been addressed in the discussion of the Kodiak Island Borough's business -type activities.
■ program
revenue (in
millions)
■ expenses
(In millions)
Differences between the original budget and final amended budget can be briefly summarized as follows:
1 9
Municipal Solid Hospital 911 Service Kodiak Fisheries
Waste Facilities Research Center
•
The revenue budget for Tax Payer Relief (State Revenue Sharing) was decreased by $113,000. The State
decreased the amount due on our retirement payments instead of giving us the funds.
•
The revenue budget for raw fish tax was increased by $102,300.
•
The expenditure budget of the General and Administration Department was increased by $25,000. This
was to purchase a new vehicle.
•
The expenditure budget of the School District Support was increased by $100,000. This was to transfer
additional funds to the School District.
•
The expenditure budget of the Education, Culture and Recreation budget was increased by $12,000 for an
increased contribution to the Kodiak Community College.
Differences between the final amended budget and actual can be summarized as follows:
•
Property taxes were $129,825 over budget. This happened because the actual assessed values were higher
•
than what was estimated in the budget.
Severance Taxes $221,878 budget. This was due to fish catches exceeding budget
were over projections,
especially ground fish.
•
The State fish revitalization program revenue was $61,097 over budget. This was also due to fish catch
exceeding budget projections.
'
•
Investment income was $169,913 over budget. This is due to interest rates exceeding projections.
1 9
Municipal Solid Hospital 911 Service Kodiak Fisheries
Waste Facilities Research Center
1
KODIAK ISLAND BOROUGH I
Management's Discussion and Analysis, Continued
• The Borough Attorney's department was $78,562 under budget. The FY2006 legal fee budget was
increased $25,000 to cover anticipated legal fee cost increases. These costs actually declined in FY2006.
• The Finance Department was $62,659 under budget. This was due to employee costs coming in under
budget.
• The Assessing Department was $31,225 under budget. This was due to employee costs coming in under
budget.
• The Building Official was $31,599 over budget. The Building Official is paid for by both the Borough and
the City of Kodiak. The charges are prorated by the location of the construction. In FY2006 more
construction took place outside of the City than was anticipated.
• General and administration was $85,087 under budget. This was due to bad debt expense and purchase of
a new vehicle coming in under budget.
• Emergency Preparedness was $32,702 under budget. The purchase of a new tsunami siren was budgeted
in FY2006 but never purchased.
• School District support was $29,270 under budget. This was due to data processing services coming in
under budget.
Capital Asset and Debt Administration
Capital Assets — The Kodiak Island Borough's investment in capital assets for its governmental and business
type activities as of June 30, 2006, amounted to $114,068,975 (net of accumulated depreciation). This investment
in capital assets includes, land, buildings and improvements, improvements other than buildings, machinery and
equipment, and construction work -in- progress. The total net decrease in the Kodiak Island Borough's
investments in capital assets for the current fiscal year was $2,956,972 which was mostly due to current year
depreciation.
The following table displays the capital assets (net of depreciation) for the current year.
Governmental Business -type
activities activities Total
2006 2005 2006 2005 2006 2005
Arhvork $ — — 16,091 16,091 16,091 16,091
Land 23,187,184 23,187,184 1,661,499 1,661,499 24,848,683 24,848,683
Construction work -in- progress 4,680,384 3,883,844 491,754 191,389 5,172,138 4,075,233
Buildings and improvements 42,518,781 44,830,648 31,631,807 33,129,474 74,150,588 77,960,122
Improvements other than buildings 1,210,447 1,511,241 3,042,789 3,219,044 4,253,236 4,730,285
Equipment 629,654 336,161 1,760,160 1,629,760 2,389,814 1,965,921
Infrastructure 1,983,805 2,127,873 — — 1,983,805 2,127,873
Unclassified plant in service — — 1,254,619 1,301,739 1,254,619 1,301,739
$ 74,210,255 75,876,951 39,858,719 41,148,996 114,068,974 117,025,947
Additional information on the Kodiak Island Borough's capital assets can be found in note 5 on pages 33 -37 of
this report.
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KODIAK ISLAND BOROUGH
Management's Discussion and Analysis, Continued
Long -term Debt — At the end of the current fiscal year, the Kodiak Island Borough had total bonded debt
outstanding of $31,155,000. This entire amount is backed by the full faith and credit of the Borough. The
remainder of the Kodiak Island Borough's debt represents capital leases, landfill closure and post- closure costs.
The following table displays the long -term debt for the current year.
General obligation bonds, including premium $
EPA loan
ADEC loans
Capital lease obligations — — —
Landfill post closure care costs — — 3,258,937
Long term interfund borrowings — — 1,432,903
Notes payable — — 1,270,210
$ 31,238,690 33,168,752 5,962,050
Governmental Business -type
activities activities
2006 2005 2006 2005
31,155,000 33,080,509 —
83,690 88,243
3,013,931
1,490,822
1,270,210
5,774,963
Total
2006
2005
31,155,000
33,080,509
83,690
88,243
3,258,937
3,013,931
1,432,903
1,490,822
1,270,210 1,270,210
37,200,740 38,943,715
The Kodiak Island Borough's total debt decreased $1,742,975 during the current fiscal year. This decrease was
due to principal payments throughout the year.
No major long -term debt activity occurred during the year.
The last time the Borough received a rating on a bond issue (General Obligation Refunding Bonds, 1998 Series
A) the Borough received an A- rating from Fitch Investors Service. Currently, general obligation bonds are
insured to a AAA rating at the time of issuance.
There is no general obligation debt limit imposed on the Kodiak Island Borough by the State Constitution, state
statutes or the Borough's charter or code.
Additional information on the Kodiak Island Borough's long -term debt can be found in note 7 on pages 40 -46 of
this report.
Economic Factors and Next Year's Budgets and Rates
• At June 30, 2006, the unemployment rate for the Kodiak Island Borough was 6.7 %, which is 2.8% lower
than last years rate of 9.5 %. The average unemployment rate for the last 10 years has been 9.9 %.
• Deposits in local banks increased from 135,302,544 to $141,199,395, an increase of $5,896,851 or 4.3 %.
Over the last 10 years it has increased $32,273,136 or 29.6 %.
• Property tax revenues received are projected to increase in future years as the Kodiak Island Borough's
assessed valuation continues to increase.
• The PERS (Public Employees Retirement System) rate is increasing from 0% in FY2004 to 32.8% for
FY2007.
1
KODIAK ISLAND BOROUGH I
Management's Discussion and Analysis, Continued
Requests for Information
This financial report is designed to provide a general overview of the Kodiak Island Borough's finances for all
those with an interest. Questions concerning any of the information provided in this report or requests for
additional information should be addressed to the Kodiak Island Borough, Director of Finance, 710 Mill Bay
Kodiak, Alaska 99615.
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KODIAK ISLAND BOROUGH
Statement of Net Assets
June 30, 2006
(With summarized financial information for June 30, 2005)
See accompanying notes to financial statements.
13
Component
Primary government
unit
Total reporting entity
Governmental
Business -type
School
Assets
activities
activities
Total
district
2006
2005
Equity in central treasury
$ 752,367
472,854
1,225,221
-
1,225,221
1,720,496
Temporary investments
59,056,736
5,250,057
64,306,793
-
64,306,793
61,617,383
Other cash and cash
equivalents
-
-
-
62,203
62,203
57,229
Due from primary
government
-
-
-
3,493,790
3,493,790
3,758,892
Receivables:
State of Alaska
957,693
402,951
1,360,644
-
1,360,644
1,552,874
Federal Government
6,355
-
6,355
-
6,355
196,517
Property taxes, net of
allowance of $15,828
355,780
-
355,780
-
355,780
352,850
Severance taxes
295,309
-
295,309
-
295,309
273,391
Deferred charges
39,295
-
39,295
-
39,295
41,478
Inventories
-
277,008
277,008
412,646
689,654
626,646
Land sales contracts
receivable
230,034
-
230,034
-
230,034
42,272
Notes receivable
501,889
-
501,889
-
501,889
540,645
Accounts and other
receivables, net
391,175
400,609
791,784
1,097,129
1,888,913
1,131,224
Capital assets:
Non - depreciable
27,867,568
2,169,344
30,036,912
-
30,036,912
28,940,007
Depreciable, net
46,342,687
37,689,375
84,032,062
132,633
84,164,695
88,222,081
Total
$ 136,796,888
46,662,198
183,459,086
5,198,401
188,657,487
189,073,985
Liabilities and Net Assets
Liabilities:
Accounts payable
$ 467,332
224,495
691,827
233,973
925,800
1,068,051
Retainages payable
22,270
-
22,270
-
22,270
22,270
Accrued compensation
and related liabilities
89,881
39,247
129,128
2,662,276
2,791,404
2,675,354
Other accrued liabilities
470,679
519,386
990,065
-
990,065
771,748
Customer deposits
678
-
678
-
678
1,203
Unearned revenues
18,853
421,110
439,963
7,032
446,995
904,186
Due to component units
3,493,790
-
3,493,790
-
3,493,790
3,758,892
Internal balances
(8,083,328)
8,083,328
-
-
-
-
Noncurrent liabilities:
Due within one year
2,277,616
-
2,277,616
386,586
2,664,202
2,255,273
Due in more than
one year
29,242,372
4,529,147
33,771,519
348,650
34,120,169
36,056,778
Net Pension and OPEB
- I ( le
�f
obligation
427,062
32 538
559,600
650,926
1,210,526
599,242
Total liabilities
28,427,205
13,949,251
42,376,456
4,289,443
46,665,899
48,112,997
Net assets:
Invested in capital assets,
net of of related debt
62,716,326
38,588,510
101,304,836
132,633
101,437,469
101,169,131
Unrestricted
45,653,357
(5,875,563)
39,777,794
776,325
40,554,119
39,791,857
Net assets
108,369,683
32,712,947
141,082,630
908,958
141,991,588
140,960,988
Total
$ 136,796,888
46,662,198
183,459,086
5,198,401
188,657,487
189,073,985
See accompanying notes to financial statements.
13
KODIAK ISLAND BOROUGH
Statement of Activities
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
See accompanying notes to financial statements.
14
M r M M r M M r r� r� M r M r r M r
Program revenues
Net(expense)revenue and changes in net assets
Operating
Primary government
Component
Charges for
grants and
Capital
Governmental
Business -type
unit school
Total reporting
entity
Functions/Programs
Expenses
services
contributions
grants
activities
activities
Total
district
2006
2005
Primary government:
Governmental activities'.
General government $
3,984,390
311,802
101,390
-
(3,571,198)
-
(3,571,198)
-
(3,571,198)
(2,431,634)
Emergency preparedness
8,598
-
-
-
(8,598)
-
(8,598)
-
(8,598)
(13,318)
Community and economic development
784,002
-
56,196
-
(727,806)
-
(727,806)
-
(727,806)
(421,840)
Health and sanitation department
403,866
-
74,150
-
(329,716)
-
(329,716)
-
(329,716)
(300,917)
Education, culture and recreation
164,053
108,218
-
-
(55,835)
-
(55,835)
-
(55,835)
(163,921)
Service district maintenance
336,385
20,000
-
-
(316,385)
-
(316,385)
-
(316,385)
(405,712)
Primary and secondary education
10,831,588
95,025
-
298,852
(10,437,711)
-
(10,437,711)
-
(10,437,711)
(10,102,338)
Capital outlay:
Schools
-
-
-
-
-
-
-
-
-
-
General
-
-
-
-
-
-
-
-
Interest on long -tern debt
1,700,089
1,008,811
-
(691,278)
-
(691,278)
-
(691,278)
(290,876)
Total governmental activities
18,212,971
535,045
1,240,547
298,852
(16,138,527)
-
(16,138,527)
-
(16,138,527)
(14,130,556)
Business -type activities:
Municipal solid waste collection and
disposal
3,446,453
3,665,289
-
-
-
218,836
218,836
-
218,836
158,649
Hospital facilities
1,304,583
1,153,333
-
-
-
(151,250)
(151,250)
-
(151,250)
(1,875,615)
Kodiak fisheries research center
1,856,875
1,572,474
-
-
-
(284,401)
(284,401)
-
(284,401)
(241,372)
911 services
57,194
65,614
8,420
8,420
-
8,420
21,008
Total business -type activities
6,665,105
6,456,710
-
-
-
(208,395)
(208,395)
-
(208,395)
(1,937,330)
Total primary government
24,878,076
6,991,755
1,240,547
298,852
(16,138,527)
(208,395)
(16,346,922)
-
(16,346,922)
(16,067,886)
Component units:
School district
35,990,593
223,579
4,803,773
-
(30,963,241)
(30,963,241)
(24,791,671)
Totals - component units
35,990,593
223,579
4,803,773
-
(30,963,241)
(30,963,241)
(24,791,671)
General revenues:
Property taxes
9,807,551
-
9,807,551
-
9,807,551
8,016,323
Grants and entitlements not restricted to specific programs
3,482,351
-
3,482,351
20,709,643
24,191,994
20,091,852
Land sale
363,389
-
363,389
-
363,389
-
Severance taxes
1,186,908
-
1,186,908
-
1,186,908
799,693
Support from primary government
-
-
-
8,632,440
8,632,440
7,995,040
Loss of disposal of capital assets
(53,034)
(17,700)
(70,734)
-
(70,734)
-
Licenses and permits
285,241
-
285,241
-
285,241
On behalf PERS payment
113,667
-
113,667
-
113,667
-
Other
70,065
409,595
479,660
390,093
869,753
423,606
Investment earnings
2,798,391
161,892
2,960,283
271
2,960,554
1,028,362
Transfers
247,280
(247,280)
-
-
Totalgeneralrevenuesandtransfers
18,301,809
306,507
18,608,316
29,732,447
48,340,763
38,354,876
Change in net assets
2,163,282
98,112
2,261,394
(1,230,794)
1,030,600
(2,504,681)
Net assets, beginning ofyear
106,206,401
32,614,835
138,821,236
2,139,752
140,960,988
146,531,549
Net assets, end ofyear
$ 108,369,683
32,712,447
141,082,630
908,458
141,991,588
(44,026,868
See accompanying notes to financial statements.
14
M r M M r M M r r� r� M r M r r M r
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KODIAK ISLAND BOROUGH
Balance Sheet
Governmental Funds
June 30, 2006
(With summarized financial information for June 30, 2005)
See accompanying notes to financial statements.
1
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1 15
Facilities
Education and
School Bond
Other
Special
Health Debt
Capital
Governmental
Totals
Assets
General
Revenue Fund
Service Fund
Projects
Funds
2006
2005
Assets:
Equity in central treasury
$ -
17,215
20,248
3,144
71 1,760
752,367
1,360,588
Temporary investments
4,948,760
29,683,727
1,389,500
19,753,064
3,281,685
59,056,736
57,096,653
Receivables:
State of Alaska
174,997
-
342,613
-
440,083
957,693
463,204
Federal Government
-
-
6,355
6,355
6,355
Property taxes, net of
allowance of $15,828
327,271
-
28,509
355,780
352,850
Severance taxes
295,309
-
-
-
-
295,309
273,391
Land sales contracts
-
-
-
-
1,538
1,538
8,000
Notes receivable
-
-
-
-
501,889
501,889
53,374
Accounts and other
receivables, net
62,760
266,581
8,128
32,017
21,689
391,175
324,523
Due from other funds
300,000
1,334,832
-
1,035,710
756,500
3,427,042
2,681,559
Notes receivable, due after one year
-
-
-
-
-
-
487,271
Land sales contracts, due after one year
-
-
-
-
228,496
228,496
34,272
Advances to other funds
-
7,742,903
-
-
-
7,742,903
8,090,822
Total
$ 6,109,097
39,045,258
1,760,489
20,823,935
5,978,504
73,717,283
71,232,862
Liabilities and Fund Balances
Liabilities:
Accounts payable
217,327
13,116
236,889
467,332
486,228
Retainages payable
-
-
-
-
22,270
22,270
22,270
Accrued compensation
liabilities
89,881
and related
-
89,881
22,610
Customer deposits
-
-
-
-
678
678
1,203
Due to component unit
3,493,790
-
-
-
-
3,493,790
3,758,892
Due to other funds
35,710,
400,000
1,842,000
-
808,907
3,086,617
2,566,059
Unearned revenues
246,276 v
110,425
-
-
731,499
1,088,200
1,007,231
Total liabilities
4,082,984
510,425
1
13,116
1,800,243
8,248,768
7,864,493
Fund balances:
Reserved:
Long -term interfund
borrowings
-
7,742,903
-
A 7,742,903
8,090,822
Unreserved:
General fund:
Designated for subsequent
year expenditures
154,296
-
-
-
-
154,296
606,323
Undesignated
1,871,817
-
-
-
-
1,871,817
1,206,690
Special revenue funds:
Designated for subsequent
year expenditures
-
-
-
-
420,400
420,400
143,676
Undesignated
-
30,791,930
-
-
2,662,935
33,454,865
32,098,426
Debt service funds:
Undesignated
(81,511)
-
158,409
76,898
(189,824)
Capital projects funds:
Undesignated
-
-
-
20,810,819
936,517
21,747,336
21,412,256
Total fund balances
2,026,113
38,534,833
(81,511)
20,810,819
4,178,261
65,468,515
63,368,369
Total
S 6,109,097
39,045,258
1,760,489
20,823,935
5,978,504
73,717,283
71,232,862
See accompanying notes to financial statements.
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1
KODIAK ISLAND BOROUGH
Reconciliation of Net Assets Between the
Government -wide and Fund Financial Statements
Year ended June 30, 2006
Amount reported as fund balance on the governmental funds balance sheet
Amounts reported for governmental activities in the statement of net
assets are different because:
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds.
Long -term receivables, delinquent property taxes and loans are
not available to pay for current- period expenditures and,
therefore, are deferred in the funds:
Property taxes
Interest receivable
Fern Fuller Trust - note receivable
Notes receivable - land sales
Long -term liabilities, including bonds payable, are not due and
payable in the current period and therefore are not reported
in the funds:
General obligation bonds payable
Bond premium
Debt issuance costs
ADEC loans
Net pension and OPEB obligation
Accrued interest expense
Compensated absences
Net assets of governmental activities
See accompanying notes to the financial statements.
1
$ 65,468,515 1
74,210,255
$ 228,536
,
110,425
501,889
228,497 1,069,347
(31,155,000)
,
(109,429)
39,295
(83,690)
(427,062)
(470,679)
(171,869) (32,378,434)
$ 108,369,683
1
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I KODIAK ISLAND BOROUGH
L
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1 17
Statement of Revenues, Expenditures,
and Changes in Fund Balances (Deficit)
Governmental Funds
Year ended June 30, 2006
(With summarized financial information
for the year ended June 30, 2005)
Facilities
Education and
School Bond
Other
Special
Health Debt
Capital
Governmental
Totals
General
Revenue Fund
Service Fund
Projects
Funds
2006
2005
Revenues:
Property taxes
$ 9,070,115
-
763,731
9,833,846
9,063,729
Intergovernmental:
State sources
1,187,169
-
2,146,406
-
34,916
3,368,491
2,169,803
Federal sources
1,182,016
-
-
584,910
1,766,926
3,853,348
Land sale proceeds
-
-
-
-
177,164
177,164
22,738
Severance taxes
1,186,908
-
1,186,908
1,005,539
Licenses, permits, fees, and
=
_
_
other local revenues
171,962
648,324
820,286
692,540
Other
-
125,040
125,040
75,841
Investment income
469,913
1,477,536
39,517
689,177
127,323
2,803,466
1,772,893
Total revenues
13,268,083
1,477,536
2,185,923
689,177
2,461,408
20,082,127
18,656,431
Expenditures:
Current:
General government
2,730,335
-
1,315
-
1,219,277
3,950,927
3,859,805
Comm my preparedness
Community and
6,098
6,098
23,521
economic development
735,883
-
-
-
48,119
784,002
509,680
Health and sanitation
department
286,294
77,226
363,520
329,738
Education, culture
and recreation
161,633
161,633
185,993
'
Service district maintenance
-
336,385
336,385
347,934
Primary and secondary education
8,430,840
-
-
-
8,430,840
7,973,035
Capital outlay:
Schools
-
-
-
439,192
24,950
464,142
68,109
General
-
332,398
332,398
2,972,174
Debt service:
Principal
=
_
1 ,814,553
=
1,814,553
1,784,859
Interest
1,583,488
1,275
1,584,763
984,766
Bond issuance costs
-
-
-
-
-
-
43,661
Total expenditures
12,351,083
-
3,399,356
439,192
2,039,630
18,229,261
19,083,275
'
Excess of revenue over
(under) expenditures
917,000
1,477,536
(1,213,433)
249,985
421,778
1,852,866
(426,844)
Other financing (uses) sources:
Issuance
_
-
20,,000
premium
Bond premium
121,590
121
Transfers in
-
-
1,480,155
271,027
1,751,182
1,800,212
Transfers out
(703,900)
(717,035)
-
-
(82,967)
(1,503,902)
(1,629,610)
Net other financing
(uses) sources
Net change in fund balances
(703,900)
(717,035)
1,480,155
-
188,060
247,280
20,642,192
266,722
249,985
609,838
2,100,146
20,215,348
213,100
760,501
Fund balances (deficit), at beginning ofyear
1,813,013
37,774,332
(348,233)
20,560,834
3,568,423
63,368,369
43,153,021
Fund balances (deficit), at end of the year
$ 2,026,113
38,534,833
(81,511)
20,810,819
4,178,261
65,468,515
63,368,369
See accompanying notes to financial statements.
L
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1 17
1
-
J I
See
accompanying notes to the financial statements.
18 ,
KODIAK ISLAND BOROUGH
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
of Governmental Funds to the Statement of Activities
Year ended June 30, 2006
Net change in fund balances - total governmental funds
$
2,100,146
Amounts reported for governmental activities in the statement of
activities are different because:
'
Governmental funds report capital outlays as expenditures.
However, in the statement of activities the cost of those assets
is allocated over their estimated useful lives and reported as
depreciation expense:
Capital outlay $
1,221,247
Depreciation expense
(2,834,909) (1,613,662)
Revenues in the statement of activities that do not provide current
current financial resources and are deferred in the funds:
Deferred property tax
228,536
Interest income tax
110,425
Land sale proceeds
228,497
Note receivable
501,889
1,069,347
Revenues that were earned in a prior year and provide
current financial resource:
Accrued interest income
(115,500)
'
Land sale contracts
(42,272)
Note receivable - Fern Fuller Trust
(556,864)
Other revenue
(254,831)
(969,467)
The issuance of long -term debt provides current financial
,
resources to governmental funds, while the repayment of the
principal of long -term debt consumes the current financial
resources of governmental funds. Neither transaction, however,
has any effect on net assets. Also, governmental funds do not
report the accrual of interest expense on debt when it is not
payable from currently available resources:
Accrued interest expense
(119,223)
Principal repayments
1,814,553
Amortized debt issuance costs
(2,183)
Bond premium amortization
6,080
1,699,227
Some expenses reported in the statement of activities do not
,
require the use of current financial resources and, therefore,
are not reported as expenditures in governmental funds:
Net pension and OPEB expense
(70,166)
Compensated absences, net change
891
(69,275)
Loss on disposal of equipment
(53,034)
Change in net assets of governmental activities
$
2,163,282
-
J I
See
accompanying notes to the financial statements.
18 ,
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KODIAK ISLAND BOROUGH
Balance Sheet
Proprietary Funds - Business -type Activities - Enterprise Funds
June 30, 2006
(With summarized financial information for June 30, 2005)
See accompanying notes to financial statements.
19
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonmajor
Collection and
Hospital
Research
Enterprise
Totals
Assets
Disposal
Facilities
Center
Fund_
2006
2005
Current assets:
o
Equity in central treasury
$ 127,247
302,714
6,744
36,149
472,854
359,908
Temporary investments
2,285,095
-
2,964,962
-
5,250,057
4,520,730
Accrued interest receivable
10,075
-
22,896
4,915
37,886
27,013
Customer receivables
362,723
-
-
-
362,723
314,711
Due from other funds
-
40,000
-
40,000
11,974
Accounts receivable - State of Alaska
402,951
-
-
-
402,951
100,000
Total current assets
3,188,091
342,714
2,994,602
41,064
6,566,471
5,334,336
Inventories
-
277,008
-
-
277,008
277,007
Capital assets:
Nondepreciable
2,038,967
130,377
-
-
2,169,344
1,868,979
Depreciable, net
3,875,720
19,049,033
14,764,622
-
37,689,375
39,280,016
Total capital assets
5,914,687
19,179,410
14,764,622
-
39,858,719
41,148,995
Total noncurrent assets
5,914,687
19,456,418
14,764,622
-
40,135,727
41,426,002
Total
$ 9,102,778
19,799, 132
17,759,224
41,064
46,702,198
46,760,338
Liabilities and Fund Equities
Current liabilities:
Accounts payable
$ 193,531
1,623
29,341
-
224,495
336,068
Deferred revenue
-
421,110
-
-
421,110
854,444
Accrued compensation and
related liabilities
27,053
-
12,194
-
39,247
32,262
Other accrued liabilities
112,424
-
134,521
-
246,945
420,292
Current portion of capital
lease obligations
272,441
-
-
272,441
-
Current portion of advances
from other funds
-
60,259
315,000
-
375,259
347,919
Due to other funds
-
75,000
305,425
-
380,425
127,474
Total current liabilities
605,449
557,992
796,481
-
1,959,922
2,118,459
Noncurrent liabilities:
° �
�, � 1 I 1 1 7
Notes payable
1,270,210 '°
-
-
-
1,270,210
1,270,210
Advances from other funds
-
1,372,644
5,995,000
-
7,367,644
7,742,903
Net pension and OPEB obligation
103,085
-
29,453
-
132,538
-
Accrual for landfill closure
and postclosure
costs
3,258,937
-
-
-
3,258,937
3,013,931
Total noncurrent liabilities
4,632,232
1,372,644
6,024,453
-
12,029,329
12,027,044
Total liabilities
5,237,681
1,930,636
6,820,934
-
13,989,251
14,145,503
Fund equities:
Invested in capital assets,
net of related debt
4,644,477
19,179,411
14,764,622
-
38,588,510
39,878,785
Unrestricted
(779,380)
(1,310,915)
(3,826,332)
41,064
(5,875,563)
(7,263,950)
Total fund equities
3,865,097
17,868,496
10,938,290
41,064
32,712,947
32,614,835
Total
$ 9,102,778
19,799,132
17,759,224
41,064
46,702,198
46,760,338
See accompanying notes to financial statements.
19
Operating revenues:
Solid waste collection
Solid waste disposal
Rents and royalties
Charges for serviceslcustomer charges
Lease income
Other
Total operating revenues
Operating expenses:
Personnel services
Solid waste collection
Refuse disposal
Contracted services
Maintenance and repairs
Landfill closure and postclosure costs
Depreciation
General and administration
Miscellaneous
Telephone services
Recycling services
Contributions
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Loss on disposal of capital assets
Contribution to Providence Hospital
Investment income
Interest expense
Income (loss) before transfers
Transfers in
Transfers out
Net other financing sources (uses)
Net change in fund equity
Fund equity, at beginning of year
Fund equity, at end ol'year
KODIAK ISLAND BOROUGH
Statement of Revenues, Expenses,
and Changes in Fund Equity
Proprietary Funds - Business -type Activities - Enterprise Funds
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonmajor
Collection and
Hospital
Research
Enterprise
Totals
* Disposal
Facilities
Center
Fund
2006
2005
$ 2,720,454
-
-
-
2,720,454
2,184,612
944,835
-
-
-
944,835
956,087
-
-
1,572,474
-
1,572,474
1,566,686
-
-
-
65,614
65,614
26,721
-
1,153,333
-
-
1,153,333
1,153,333
409,595
-
-
-
409,595
1,157
4,074,884
1,153,333
1,572,474
65,614
6,866,305
5,888,596
711,039
5,000
235,147
3,000
954,186
832,671
1,352,618
-
-
-
1,352,618
1,418,830
306,150
-
-
-
306,150
355,995
261,073
-
-
-
261,073
207,282
44,700
2,667
-
-
47,367
54,865
245,006
-
-
-
245,006
255,498
245,510
1,077,047
745,037
-
2,067,594
2,239,956
185,099
10,810
365,924
-
561,833
489,133
-
-
63,992
194
64,186
67,328
-
-
-
54,000
54,000
66,178
90,000
-
-
-
90,000
73,001
5,258
-
-
-
5,258
9,853
3,446,453
1,095,524
1,410,100
57,194
6,009,271
6,070,590
628,431
57,809
162,374
8,420
857,034
(181,994)
-
(17,700)
-
-
(17,700)
-
-
(150,000)
-
-
(150,000)
-
69,421
-
92,471
-
161,892
70,812
-
(59,059)
(446,775)
-
(505,834)
(584,711)
697,852
(168,950)
(191,930)
8,420
345,392
(695,893)
6,450
66,500
-
-
72,950
125,000
-
(320,230)
-
-
(320,230)
(295,602)
6,450
(253,730)
-
-
(247,280)
(170,602)
704,302
(422,680)
(191,930)
8,420
98,112
(866,495)
3,160,795
18,291,176
11,130,220
32,644
32,614,835
33,481,330
$ 3,865,097
17,868,496
10,938,290
41,06
32,712,947
32,614,835
See accompanying notes to financial statements.
20
Ll
11
Il
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KODIAK ISLAND BOROUGH
Statement of Cash Flows
Proprietary Funds - Business -type Activities - Enterprise Funds
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
1 21 /
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonmajor
Collection and
Hospital
Research
Enterprise
Totals
Disposal
Facilities
Center
Fund
2006
2005
Cash flows from operating activities:
Cash received from customers
$ 3,744,381
720,000
1,572,474
65,614
6,102,469
5,488,604
Payments to suppliers
(2,328,526)
(13,825)
(429,490)
(54,194)
(2,826,035)
(2,647,476)
Payments to employees
(605,617)
(5,000)
(150,435)
(3,000)
(764,052)
(826,754)
Internal activity - payments to /from other funds
-
46,974
177,951
-
224,925
30,100
Net cash provided (used) by
operating activities
810,238
748,149
1,170,500
8,420
2,737,307
2,044,474
Cash flows from noncapital financing activities:
Contribution to Providence Hospital
-
(150,000)
-
-
(150,000)
-
Transfers in
6,450
66,500
72,950
125,000
Transfers out
-
(320,230)
-
-
(320,230)
(295,602)
Net cash provided (used) by
noncapital financing activities
6,450
(403,730)
-
-
(397,280)
(170,602)
Cash flows from capital and related
financing activities:
Acquisition and construction of capital assets
(730,022)
(47,298)
-
-
(777,320)
(126,333)
Loss on disposal of assets
-
(17,700)
-
-
(17,700)
-
Interest paid on notes payable, capital leases,
and interfund borrowings
-
(59,059)
(446,775)
-
(505,834)
(536,597)
Principal payments on long -term
interfund borrowing
-
(57,919)
(290,000)
-
(347,919)
(330,670)
Proceeds from issuance of notes payable
-
-
8,087
Principal payments on capital lease obligation
-
-
-
-
-
(185,970)
Net cash provided (used) by capital and
related financing activities
(730,022)
(181,976)
(736,775)
-
(1,648,773)
(1,171,483)
Cash flows from investing activities:
Interest and dividends on investments
69,421
-
92,471
-
161,892
69,493
Net (increase) decrease in investments
(215,833)
-
(519,452)
(4,915)
(740,200)
(784,982)
Net cash provided (used) by
investing activities
(146,412)
-
(426,981)
(4,915)
(578,308)
(715,489)
Net change in cash and
cash equivalents
(59,746)
162,443
6,744
3,505
112,946
(13,100)
Cash and equivalents, at beginning of year
186,993
140,271
-
32,644
359,908
373,008
Cash and equivalents, at the end of year
$ 127,247
302,714
6,744
36,149
472,854
359,908
(continued)
1 21 /
KODIAK ISLAND BOROUGH
Statement of Cash Flows
Proprietary Funds - Business -type Activities - Enterprise Funds, Continued
See accompanying notes to financial statements.
22
Municipal
Kodiak
Other
Solid Waste
Fisheries
Nonmajor
Collection and
Hospital
Research
Enterprise
Totals
Disposal
Facilities
Center
Fund
2006
2005
Reconciliation of operating income (loss) to net
cash provided by operating activities:
Operating income (loss)
S 628,431
57,809
162,374
8,420
857,034
(181,994)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation
245,510
1,077,047
745,037
-
2,067,594
2,239,956
Changes in assets and liabilities that
provided (used) cash:
Customer receivables
(330,503)
-
(330,503)
25,930
Due to /from other funds
-
46,974
177,951
-
224,925
114,218
Accounts payable
(128,839)
(347)
(2,846)
-
(132,032)
27,775
Unearned revenues
-
(433,334)
-
-
(433,334)
(433,332)
Accrual for landfill closure and
postclosure costs
245,006
-
-
-
245,006
255,498
Accrued compensation and
related liabilities
105,422
-
34,101
-
139,523
5,917
Other accrued liabilities
45,211
53,883
-
99,094
74,624
Net cash provided (used) by
operating activities
S 810,238
748,149
1,170,500
8,420
2,737,307
2,128,592
Noncash capital and related financing activities:
Interest
S 13,217
-
4,915
18,132
48,114
See accompanying notes to financial statements.
22
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KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
(1) Summary of Significant Accounting Policies
(a) Reporting Entity
The Kodiak Island Borough (the Borough), Alaska, was organized to perform the municipal duties
allowed by Alaska Statutes and as directed by its residents. As required by accounting principles
generally accepted in the United States of America, these financial statements present the
government and its component unit, an entity for which the government is considered to be
financially accountable. The discretely presented component unit is reported in a separate column in
both the government -wide and fund financial statements to emphasize it is legally separate from the
government. The Borough reviewed its relationship with other organizations and determined that the
following organization is a component unit.
Discretely Presented Component Unit
The Borough has delegated the operating responsibility for public education to the Kodiak Island
Borough School District (School District). In accordance with statutes, the Borough retains
ownership of the education related capital assets and incurs the debt, if necessary, to finance the
acquisition and construction of school facilities. The Borough Assembly approves the total annual
budget of the School District and may, during the year, increase or decrease the total appropriation.
Complete financial statements for the component unit may be obtained at the entity's administrative
offices for the Kodiak Island Borough School District.
Kodiak Island Borough School District
722 Mill Bay Road
Kodiak, Alaska 99615
(b) Government -Wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net assets and the statement of
activities) report information on all of the activities of the primary government and its component
unit. For the most part, the effect of interfund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes.and intergovernmental revenues, are
reported separately from business -type activities, which rely to a significant extent on fees and
charges for support. Likewise, the primary government is reported separately from the legally
separate component unit for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function
or segment are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function or segment. Program revenues include 1) charges to customers or applicants
who purchase, use, or directly benefit from goods, services, or privileges provided by a given
function or segment and 2) grants and contributions that are restricted to meeting the operational or
capital requirements of a particular function or segment. Taxes and other items not properly included
among program revenues are reported instead as general revenues.
23 (Continued)
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KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds, if applicable, are reported as
separate columns in the fund financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon
as they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the government considers revenues to be available if they are collected within
60 days of the end of the current fiscal period except for grant revenues which are recognized when
the related expenditure is incurred irrespective of when the cash is received. Expenditures generally
are recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences and claims and judgments, are
recorded only when payment is due.
Property taxes and interest associated with the current fiscal period are all considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other
revenue items are considered to be measurable and available only when cash is received by the
government.
The government reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all financial resources
of the general government, except those required to be accounted for in another fund.
The Facilities Special Revenue Fund accounts for the proceeds from the sale of Shuyak Island. The
single most important goal is to preserve the principal of the fund. Interest earnings, after inflation
proofing, can be used for debt service, building insurance and capital projects.
The Education and Health Debt Service Fund was established
payment of interest and principal on all general obligation debts,
payable exclusively from special assessments and revenue debt
government enterprise fund.
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to finance and account for the
serial and term, other than that
issued for and serviced by a
The School Bond Capital Projects Fund accounts for the construction and major maintenance
activities for the Borough's educational facilities funded by school bonds.
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' KODIAK ISLAND BOROUGH
1 Notes to Financial Statements
June 30, 2006
reports the following major proprietary The government ep g ) p p ry funds:
The Municipal Solid Waste Collection and Disposal Fund accounts for the collection and disposal of
solid waste and recycling services for the Kodiak Island Borough.
The Hospital Facilities Fund accounts for rents on the Borough -owned hospital; hospital related
state revenue sharing; and other hospital related revenue. In turn, it purchases hospital equipment and
makes debt service payments on hospital related debt.
The Kodiak Fisheries Research Center Fund accounts for rents and expenses on the Borough -owned
Kodiak Fisheries Research Center. The three tenants: NOAA, Alaska Department of Fish & Game
and University of Alaska, Fairbanks pay lease funds to participate in this multi- agency research
facility committed to the preservation of the North Pacific marine ecosystem and resources.
Private- sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the government -wide and proprietary fund financial statements to the
extent that those standards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board. Governments also have the option of following subsequent
private- sector guidance for their business -type activities and enterprise funds, subject to this same
limitation. The government has elected not to follow subsequent private- sector guidance.
As a general rule the effect of interfund and activity has been eliminated from the government -wide
financial statements. Exceptions to this general rule are charges between various functions of the
government. Elimination of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
Amounts reported as program revenues include (1) charges to customers or applicants for goods,
services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and
contributions. Internally dedicated resources are reported as general revenues rather than as program
revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with a proprietary fund's principal ongoing operations. The principal operating
revenues of the enterprise funds are charges to customers for sales and services and lease revenues.
' Operating expenses for enterprise funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition
are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government's policy to
use restricted resources first, then unrestricted resources as they are needed.
(d) Assets, Liabilities, and Fund Equity/Net Assets
Cash and Investments
Cash balances of most Borough funds are pooled in a central treasury. Each fund's portion of this
pool is displayed on the balance sheet as "Equity in central treasury." In addition, investments are
25 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
the termination of the lease in at least equal value. I
26 (Continued) I
separately held by several of the Borough's funds. Investments are carried at fair value, as
determined by quoted market prices.
'
The Alaska Municipal League Investment Pool ( AMLIP) is considered to be an external investment
pool as defined by GASB Statement No. 31. AMLIP is not SEC - registered. Alaska Statute 37.23
establishes regulatory oversight of the pool. The law sets forth numerous requirements regarding
authorized investments and reporting. The pool is incorporated in the State of Alaska as a nonprofit
corporation and reports to its Board of Directors. Alaska Statute 37.23.050 requires the retention of
an investment manager.
The manager is required to produce monthly disclosure statements to the pool. The pool has also
retained an investment advisor to ensure compliance with investment policies. All participation in
the pool is voluntary. The pool must maintain a dollar- weighted average maturity of 90 days or less,
and only purchase instruments having remaining maturities of 397 days or less. On a monthly basis,
the investments in the pool are reviewed for fair value by an independent pricing service.
'
All highly liquid investments, excluding restricted assets, with original maturities of ninety days or
less are considered to be cash equivalents. For purposes of the Statements of Cash Flows, equity in
central treasury held by enterprise funds are treated as cash equivalents.
'
Investments for the government, as well as the component unit, are reported at fair value, as
determined by quoted market prices. The reported value of the pool is the same as the fair value of
the pool shares.
'
Receivables and Payables
Activity between funds that are representative of lending /borrowing arrangements outstanding at the
end of the fiscal year are referred to as either "due to /from other funds" (i.e., the current portion of
interfund loans) or "advances to /from other funds" (i.e., the noncurrent portion of interfund loans).
All other outstanding balances between funds are reported as "due to /from other funds." Any
residual balances outstanding between the governmental activities and business -type activities are
reported in the government -wide financial statements as "internal balances." Internal balances used
to acquire capital assets are eliminated from the invested in capital assets, net of related debt, portion
,
of net assets.
Advances between funds, as reported in the fund financial statements, are offset by a fund balance
reserve account in applicable governmental funds to indicate that they are not available for
appropriation and are not expendable available financial resources.
Inventories Prepaid Items
,
and
Expendable operating supplies of the Borough are accounted for using the purchase method. There
are no significant amounts of such inventories on hand at year end. All of the Hospital Facilities
Enterprise Fund inventory is assigned to Providence as of April 21, 1997 which, by the terms of the
lease agreement for the hospital facilities (see note 19), are required to be returned to the Borough at
the termination of the lease in at least equal value. I
26 (Continued) I
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KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government -wide and fund financial statements.
Capital Assets
Compensated Absences
It is the Borough's policy to permit employees to accumulate earned but unused annual leave
benefits. All annual leave pay is accrued when incurred in the government -wide and proprietary fund
financial statements. A liability for these amounts is reported in governmental funds only if they
have matured, for example, as a result of employee resignations and retirements.
' Long -Term Obligations
In the government -wide financial statements, long -term debt and other long -term obligations are
reported as liabilities in the applicable governmental activities, business -type activities, or
proprietary fund balance sheet. Bond premiums and discounts, as well as issuance costs, are deferred
and amortized over the life of the bonds using the effective interest method. Bonds payable are
reported net of the applicable bond premium or discount. Bond issuance costs are reported as
deferred charges and amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts,
as well as bond issuance costs, during the current period. The face amount of debt issued is reported
as other financing sources. Premiums received on debt issuances are reported as other financing
1 27 (Continued)
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, street
lights, and similar items including those acquired prior to fiscal years ended after June 30, 1980), are
reported in the applicable governmental or business -type activities columns in the government -wide
financial statements. Capital assets are defined by the Borough as assets with an initial, individual
cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years.
Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.
Donated capital assets are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized.
'
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business -type activities is included as part
'
of the capitalized value of the assets constructed. There was no interest capitalized during the year.
Property, plant, and equipment of the primary government is depreciated using the straight line
method over the following estimated useful lives:
'
Buildings and improvements 10 -40 years
Improvements other than buildings 10 -15 years
Equipment 5 -10 years
Infrastructure 40 years
Compensated Absences
It is the Borough's policy to permit employees to accumulate earned but unused annual leave
benefits. All annual leave pay is accrued when incurred in the government -wide and proprietary fund
financial statements. A liability for these amounts is reported in governmental funds only if they
have matured, for example, as a result of employee resignations and retirements.
' Long -Term Obligations
In the government -wide financial statements, long -term debt and other long -term obligations are
reported as liabilities in the applicable governmental activities, business -type activities, or
proprietary fund balance sheet. Bond premiums and discounts, as well as issuance costs, are deferred
and amortized over the life of the bonds using the effective interest method. Bonds payable are
reported net of the applicable bond premium or discount. Bond issuance costs are reported as
deferred charges and amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts,
as well as bond issuance costs, during the current period. The face amount of debt issued is reported
as other financing sources. Premiums received on debt issuances are reported as other financing
1 27 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
1,
sources while discounts on debt issuances are reported as other financing uses. Issuance costs,
whether or not withheld from the actual debt proceeds received, are reported as debt service
expenditures. Interest on long -term obligations is recorded as an expenditure when due.
Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance for amounts '
that are not available for appropriation or are legally restricted by outside parties for use for a
specific purpose. Designations of fund balance represent tentative management plans that are subject
to change.
Net Assets
In the government -wide financial statements, net assets are reported in three categories; net assets
invested in capital assets, net of related debt; restricted net assets; and unrestricted net assets.
Net assets are reported as restricted when constraints placed on net asset use are either externally '
imposed by creditors (such as through debt covenants), grantors, contributors provisions or laws or
regulations of other governments or imposed by law through constitutional provisions or enabling ,
legislation.
(e) Revenues, Expenditures, and Expenses
Property Taxes '
Property taxes are based on the assessed value of taxable property as of January 1. Pursuant to
Alaska Statute 29.45.240, the Borough establishes the mill rate on or before June 15th. Tax bills are I
then mailed on or before July 1st.
Taxes are due when billed and generally become delinquent on or after October 16th. The Borough
code also provides for split payments. If a taxpayer avails himself of this provision, one -half must be
paid on or before August 15th and the remainder becomes due on or before November 15th (in lieu
of October 15th). Borough property tax revenues are recognized in the fiscal year in which they '
become measurable and available, which is generally the year following the year the tax bills are
mailed.
All taxes are delinquent on November 16th, and a tax foreclosure process may commence as outlined
in Alaska Statutes Title 29. Briefly, this entails the petition for Judgment of Foreclosure signed by
the District Court Judge and the publication of all delinquent taxes in the local newspaper for four
consecutive weeks.
'
Real property tax liens are enforced by one general foreclosure proceeding against the delinquent
properties.
,
Severance Taxes
Severance taxes are based on the amount and value of natural resources severed from the
environment. Types of resources taxed include seafood, gravel and mineral resources, and timber.
Severance tax returns are sent to appropriate companies (as determined by the Borough Assessor)
28 (Continued) I
' KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
and are returned to the Borough Finance Department. The returns are filed quarterly, and are due by
the end of the month following the quarter's end. Borough severance tax revenues are recognized in
1 the fiscal year in which they become measurable and available.
Intergovernmental Revenue
State - shared revenues, safe communities, State - education related entitlement programs and
State - levied taxes, the proceeds of which are distributed to local governments, are recorded in the
fiscal year to which they relate, including accrual at year end if final payments due are measurable
and received within approximately two months after year end.
State of Alaska and Federal government cost reimbursable grants and contracts are recorded to the
extent of allowable expenditures in the period in which the expenditures were incurred.
Operating and Nonoperating Revenue
' Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with a proprietary fund's principal ongoing operations. The principal operating
' revenues of the Municipal Solid Waste Collection and Disposal Fund and 911 Services Fund are
charges to customers for services. The principal operating revenues of the Hospital Facilities Fund
and the Kodiak Fisheries Research Center Fund are rents from customers. Operating expenses for
proprietary funds include costs of services, administrative expenses, and depreciation on capital
assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues
and expenses.
Revenue From Investments and Property
Amounts earned on investment of available cash balances and the rental of building facilities are
recorded in the period to which they relate, including accrual at year end of the balance due, and
unrealized gains and losses on investments held at fiscal year end.
Land Sales Proceeds and Other Local Revenues
Amounts received pursuant to land sale contracts are recorded on the accrual basis.
Other local revenues are recorded on a basis consistent with their nature in relation to measurement
i and availability standards.
(� Cash Flows
' All highly liquid investments, excluding restricted assets, with original maturities of three months or
less are considered cash equivalents for purposes of the statement of cash flows.
1 29 (Continued)
KODIAK ISLAND BOROUGH ,
Notes to Financial Statements '
June 30, 2006
(g) Use of Estimates
Preparation of financial statements in accordance with accounting principles generally accepted in '
the United States of America requires management to make estimates and assumptions that affect the
amounts reported in these financial statements. Actual results may differ from the estimates.
Significant estimates include the allowance for doubtful accounts, the useful lives of assets and
related accumulated depreciation, and accrued landfill closure and post - closure care costs.
(2) Stewardship, Compliance, and Accountability 1
(a) Excess of Expenditures /Expenses over Appropriations/Budgets
General Fund ,
The following department expenditures exceeded their appropriations:
Department Excess
Borough manager $ 14,968
Building official 31,599
General and administration 85,087 '
Health and sanitation 1,974
$ 133,628
Special Revenue Funds
The following fund expenses exceeded their budget:
Fund
Women's Bay Road Service Area
L.E.P.C.
Woodland Acres Street Light
Service Area
Kodiak Arts Council
Fern Fuller Trust
Excess
$ 13,907
9,214
660
4,643
127
$ 28,551
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KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
(b) Deficit Fund Equity
The individual fund deficits at June 30, 2006, are as follows:
Special Revenue Funds:
Bay View Road Service Area $ 667
L.E.P.C. 14,995
Trinity Acres Street Light Service Area 1,567
Kodiak Arts Council 3,518
Trinity Acres Paving 174,556
$ 195,
The deficit in the Trinity Acres Paving Fund is anticipated to be funded by a special assessment that
began in 2006.
(3) Cash and Investments
As of June 30, 2006, the Borough had the following investments:
Interest Rate Risk
The Borough does not have a formal investment policy that limits investment maturities as a means of
managing its exposure to fair value losses arising from increasing interest rates.
Credit Risk
Statutes authorize the Borough to invest in obligations of the United States, the State of Alaska and its
political subdivisions, savings accounts, certificates of deposit, banker's acceptances, repurchase
agreements, and such other legal security instruments. The Borough Code requires all investments to be
collateralized and /or insured.
At June 30, 2006, the Borough's U.S. agencies bonds were rated AAA by Standard & Poor and Fitch
Ratings, and Aaa by Moody's Investor Service. At June 30, 2006, the Borough's investment in the Alaska
Municipal League Investment Pool was unrated.
31 (Continued)
Investment maturities (in years)
Fair
Less
Investment type
value
than 1 1 to 5 5 to 10
U.S. agency securities:
Federal Home Loan Bank
$ 21,745,761
19,771,381 1,974,380 —
Federal Home Loan Mortgage Corporation
12,929,510
12,929,510 — —
Federal National Mortgage Association
14,847,200
14,847,200 — —
Federal Mortgage Corporation
3,904,800
3,904,800 — —
Alaska Municipal League Investment Pool
10,879,522
10,879,522 — —
$ 64,306,793
62,332,413 1,974,380 —
Interest Rate Risk
The Borough does not have a formal investment policy that limits investment maturities as a means of
managing its exposure to fair value losses arising from increasing interest rates.
Credit Risk
Statutes authorize the Borough to invest in obligations of the United States, the State of Alaska and its
political subdivisions, savings accounts, certificates of deposit, banker's acceptances, repurchase
agreements, and such other legal security instruments. The Borough Code requires all investments to be
collateralized and /or insured.
At June 30, 2006, the Borough's U.S. agencies bonds were rated AAA by Standard & Poor and Fitch
Ratings, and Aaa by Moody's Investor Service. At June 30, 2006, the Borough's investment in the Alaska
Municipal League Investment Pool was unrated.
31 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements ,
June 30, 2006
Concentration of Credit Risk
The Borough places no limit on the amount the Borough may invest in any one issuer. At June 30, 2006, ,
the Borough had 72 percent of its investments in U.S. Government agency securities.
Custodial Credit Risk — Deposits
In the case of deposits, this is the risk that in the event of a bank failure, the Borough's deposits may not be
returned to it. The Borough requires all deposits to be insured or collateralized. At June 30, 2006, the
carrying amount of the Borough deposits was $1,225,221 and the corresponding bank balance was
$475,070. The Federal Deposit Insurance Corporation insures $100,000 of the Borough's bank balance.
Government and Agency Obligations and General Obligation Bonds of a Municipality collateralize the
remaining $375,070. Collateral, in the amount of $509,445, is held by Bank of New York, the pledging ,
financial institution's agent, in the Borough's name.
Custodial Credit Risk — Investments I
For an investment, this is a risk that, in the event of the failure of the counterparty, the Borough will not be
able to recover the value of its investments or collateral securities that are in the possession of an outside
party. The Borough had no debt securities exposed to custodial credit risk at June 30, 2006.
(4) Annual Appropriation to the School District
An annual appropriation is made to the School District. In addition to the annual appropriation, the ,
Borough provides the School District, without charge, general liability and property insurance, data
processing services, the annual independent audit, mental health services, and grounds maintenance
services. ,
(5) Capital Assets
As noted in Footnote (9), the Borough leases the Kodiak Island Hospital and Care Center to Sister of ,
Providence. The value of the leased assets as well as depreciation are reflected below in the Hospital
Facilities Fund on page 35.
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32 (Continued) I
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
Capital asset activity for the year ended June 30, 2006 was as follows:
Beginning
Balance Increase
Governmental activities:
Capital assets, not being
depreciated:
Land
Construction
work -in- progress
Total
Capital assets, being depreciated:
Buildings and improvements
Improvements other than
buildings
Equipment
Infrastructure
Total
Less accumulated depreciation for:
Buildings and improvements
Improvements other than
buildings
Equipment
Infrastructure
Total
Total capital assets
being depreciated
Total governmental
activities, net
Ending
Decrease Balance
$ 23,187,184
—
—
23,187,184
3,883,844
796,540
—
4,680,384
27,071,028
796,540
—
27,867,568
90,579,601
—
—
90,579,601
3,964,683
—
—
3,964,683
2,002,568
424,707
(498,037)
1,929,238
5,762,722
—
—
5,762,722
102,309,574
424,707
(498,037)
102,236,244
45,748,953
2,311,867
—
48,060,820
2,453,442
300,794
—
2,754,236
1,666,407
78,180
(445,003)
1,299,584
3,634,849
144,068
—
3,778,917
53,503,651
2,834,909
(445,003)
55,893,557
48,805,923
(2,410,202)
(53,034)
46,342,687
$ 75,876,951
(1,613,662)
(53,034)
74,210,255
33 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006 '
Business -type activities:
Municipal Solid Waste Collection
and Disposal Fund capital assets,
not being depreciated:
Land
Construction work -in- process
Total
Capital assets, being depreciated:
Unclassified utility plant in
service
Improvements other than
buildings
Machinery and equipment
Total
Less accumulated depreciation for:
Unclassified utility plant in
service
Improvements other than
buildings
Machinery and equipment
Total
Total capital assets
being depreciated, net
Total Municipal Solid
Waste Collection
and Disposal Fund, net
Beginning
Balance
$ 1,651,248
—
— 1,651,248
89,761
297,958
— 387,719
1,741,009
297,958
— 2,038,967
2,178,733
—
— 2,178,733
2,288,438
—
— 2,288,438
1,313,344
432,064
— 1,745,408
5,780,515
432,064
— 6,212,579
811,018
47,120
— 858,138
282,862
128,013
— 410,875
997,469
70,377
— 1,067,846
2,091,349
245,510
— 2,336,859
3,689,166
186,554
— 3,875,720
$ 5,430,175
484,512
— 5,914,687
Increase
Decrease
Ending
Balance
34 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
Hospital Facilities Fund capital
assets, not being depreciated:
Artwork
Land
Construction work -in- process
Total
Capital assets, being depreciated:
Buildings
Improvements other than
buildings
Machinery and equipment
Total
Less accumulated depreciation for:
Buildings
Improvements other than
buildings
Machinery and equipment
Total
Total capital assets being
depreciated, net
Total Hospital Facilities
Fund, net
Kodiak Fisheries Research Center Fund
Kodiak Fisheries Research Center Fund
Capital assets, being depreciated:
Buildings
Improvements other than buildings
Machinery and equipment
Total
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Machinery and equipment
Total
Total Kodiak Fisheries
Beginning
—
— 17,840,410
Ending
Balance
Increase
Decrease
Balance
1,157,540
20,019,948
$ 16,091
—
—
16,091
10,251
—
—
10,251
101,628
2,407
—
104,035
127,970
2,407
—
130,377
— 14,764,622
27,131,043
—
—
27,131,043
401,046
—
—
401,046
4,831,961
62,588
(17,700)
4,876,849
32,364,050
62,588
(17,700)
32,408,938
8,275,660
902,986
—
9,178,646
71,151
14,177
—
85,328
3,936,048
159,884
—
4,095,932
12,282,859
1,077,047
—
13,359,906
20,081,191
(1,014,459)
(17,700)
19,049,032
$ 20,209,161
(1,012,052)
(17,700)
19,179,409
$ 17,840,410
—
— 17,840,410
1,021,998
—
— 1,021,998
1,157,540
1,157,540
20,019,948
—
— 20,019,948
3,566,321
594,680
— 4,161,001
204,401
34,065
— 238,466
739,567
116,292
— 855,859
4,510,289
745,037
— 5,255,326
$ 15,509,659
(745,037)
— 14,764,622
35 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
Total business -type activities:
Capital assets, not being
depreciated:
Artwork
Land
Construction work -in- process
Total
Capital assets, being depreciated:
Unclassified utility plant in
service
Buildings
Improvements other than
buildings
Machinery and equipment
Total
Less accumulated depreciation for:
Unclassified utility plant in
service
Buildings
Improvements other than
buildings
Machinery and equipment
Total
Total capital assets
being depreciated, net
Total business -type
activities, net
Beginning Ending
Balance Increase Decrease Balance
$ 16,091
—
— 16,091
1,661,499
—
— 1,661,499
191,389
300,365
— 491,754
1,868,979
300,365
— 2,169,344
2,178,733
—
— 2,178,733
44,971,454
—
— 44,971,454
3,711,482
—
— 3,711,482
7,302,845
494,653
(17,700) 7,779,798
58,164,514
494,653
(17,700) 58,641,467
876,994
47,120
— 924,114
11,841,981
1,497,666
— 13,339,647
492,438
176,255
— 668,693
5,673,085
346,553
— 6,019,638
18,884,498
2,067,594
— 20,952,092
39,280,016 (1,572,941) (17,700) 37,689,375
$ 41,148,995 (1,272,576) (17,700) 39,858,719
36 (Continued)
1
1
1
1
C
1
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
Depreciation expense was charged to the departments and functions of the primary government as follows:
Governmental activities:
General government
$ 320,521
Fire services
73,214
Emergency preparedness
2,500
Health and sanitation department
37,926
Primary and secondary education
2,400,748
Total – governmental
activities
2,834,909
Business -type activities:
Municipal Solid Waste Collection and
Disposal
245,510
Hospital Facilities
1,077,047
Kodiak Fisheries Research Center
745,037
Total – business -type
activities
2,067,594
Total
$ 4,902,503
(6) Interfund Receivables, Payables and Transfers
(a) Interfund Receivables and Payables
Interfund receivables and payables at June 30, 2006 consisted of the balances of short -term interfund
loans all of which are expected to be paid within one year. A summary of interfund receivables and
payables at June 30, 2006, is as follows:
Receivable
Payable
Major Governmental Funds:
General Fund
$ 300,000
35,710
Facilities Speical Revenue Fund
1,334,832
400,000
Education and Health Fund Debt Service Funds
—
1,842,000
School Bond Capital Projects Fund
1,035,710
—
Other governmental funds
756,500
808,907
Major Enterprise Funds:
Hospital Enterprise Fund
40,000
75,000
Kodiak Fisheries Research Center Fund
—
305,425
$ 3,467,042
3,467,042
1 37 (Continued)
1
(b)
KODIAK ISLAND BOROUGH
Notes to Financial Statements'
June 30, 2006
The outstanding balances between funds result from the time lag between the dates that (1) interfund
goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in
the accounting system, and (3) payments between funds are made.
Long -Term Interfund Borrowings
In October 1997 the Facilities Special Revenue Fund loaned $8,000,000 to the Kodiak Fisheries
Research Center Enterprise Fund. The loan from the Facilities Special Revenue Fund is accounted
for as a long -term interfund advance, while the liability in the Kodiak Fisheries Research Center
Enterprise Fund is accounted for as a long -term interfund borrowing. The advance bears interest at
7 %, and the scheduled payments for the next five fiscal years ended and thereafter are as follows:
Principal Interest
Year ending June 30:
2007
2008
2009
2010
2011
2012 -2016
2017 -2019
315,000
335,000
360,000
385,000
410,000
2,525,000
1,980,000
430,675
407,925
383,600
357,525
329,700
1,158,675
214,200
Total
745,675
742,925
743,600
742,525
739,700
3,683,675
2,194,200
$ 6,310,000 3,282,300 9,592,300
In July 2003, the Facilities Special Revenues Fund loaned $1,600,000 to the Hospital Fund in order
to help fund current operations. The loan from the Facilities Special Revenue Fund is accounted for
as a long -term interfund advance, while the liability in the Hospital Facilities Enterprise Fund is
accounted for as a long -term interfund borrowing. The advance bears interest at 7 %, and the
scheduled payments for the next five fiscal years and thereafter are as follows:
Year ending June 30:
2007
2008
2009
2010
2011
2012 -2016
2017 -2021
2022 -2023
Principal Interest Total
60,259
62,693
65,226
67,861
70,603
398,176
485,374
222,711
56,719
54,285
51,752
49,117
46,375
186,714
99,516
11,245
116,978
116,978
116,978
116,978
116,978
584,890
584,890
23 3,956
1
1
1
1
1
L]
$ 1,432,903
555,723 1,988,626
38
(Continued)
1
' KODIAK ISLAND BOROUGH
' Notes to Financial Statements
June 30, 2006
(c) Transfers
' Interfund transfers been made in accordance with budget ordinances. Funds are transferred from one
fund to support expenditures of other funds in accordance with the authority established for the
individual fund. Transfers between fund types during the year ended June 30, 2006, were as follows:
Transfers In
7
r
Enterprise Funds
Transfers Out
Major Governmental Funds:
'
General Fund
and Health
Facility Special Revenue Fund
Solid Waste
Other Governmental Funds
Major Enterprise Fund:
Governmental
Hospital Facility Fund
Facilities
Total transfers
Fund
Funds
U
1
Governmental Funds
Enterprise Funds
Education
Municipal
and Health
Other
Solid Waste
Hospital
Debt Service
Governmental
Collection and
Facilities
Fund
Funds
Disposal Fund
Fund
Totals
$ 697,450
—
6,450
—
703,900
462,475
254,560
—
—
717,035
—
16,467
—
66,500
82,967
320,230
—
—
—
320,230
$ 1,480,155
271,027
6,450
66,500
1,824,132
A summary of significant transfers are as follows:
• The General Fund transferred $697,450 to the Education and Health Debt Service Fund to
pay for debt service on general government debt.
• The Facilities Special Revenue Fund transferred $140,560 to the Building and Grounds
Special Revenue Fund to pay for building insurance.
• The Facilities Special Revenue Fund transferred $462,475 to the Education and Health Debt
Service Fund for debt service on hospital bonds.
• The Facilities Special Revenue Fund transferred $114,000 to the State Capital Grants fund
for computer upgrades.
• The Hospital Facilities Enterprise Fund transferred $320,230 to the Education and Health
Debt Service Fund to pay for debt service on hospital related debt.
1 39 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
(7) Long Term Debt
(a) General Obligation Bonds and other debt
The Borough issues general obligation bonds and other debt to provide funds for the acquisition and construction of
major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the
Borough. General obligation bonds and other debt currently outstanding are as follows:
40 (Continued)
Interest
Principal
payments
Type of debt
Rates
Dates
Issue date
Maturity dates
Dates
Amount
General obligation
bonds — 1998 Series
3.25 -4.30%
8/15 -2/15
12/22/1998
2/15/2014
2/15/2007
60,000
2/15/2008
1,150,000
2/15/2009
1,200,000
2/15/2010
1,250,000
2/15/2011
1,305,000
2/15/2012
1,360,000
2/15/2013
1,420,000
2/15/2014
1,480,000
9,225,000
General obligation
bonds — 2000 E Series
4.75 -5.0%
8/1 -2/1
12/12/2000
2/1/2011
2/1/2007
150,000
2/l/2008
160,000
2/l/2009
165,000
2/1/2010
175,000
2/1/2011
180,000
830,000
General obligation
bonds — 2000 F Series
6.9 -9.0%
8/1 -2/1
12/12/2000
2/1/2011
2/l/2007
120,000
2/l/2008
130,000
2/l/2009
140,000
2/1/2010
150,000
2/1/2011
160,000
700,000
General Obligation
bonds — 2003 A Series
2.00 - 2.625%
8/15-2/15
4/9/2003
8/15/2007
2/15/2007
1,030,000
1,030,000
General obligation
40 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
Authorized Prior years Balance at Mred/ Balance at
Fiscal year Annrmt Issued Refired Jrne 30, 2005 )fs Mijn ed Jane 30, 2006
1999 9,740,000 9,740,000
455,000 9,285,000
60,000 9,225,000
2001 1,485,000 1,485,000
510,000 975,000
2001
1,175,000
1,175,000
365,000
810,000
2003
3,075,000
3,075,000
1,040,000
2,035,000
145,000 830,000
110,000 700,000
1,005,000 1,030,000
41 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
Interest
Principal
payments
Type of debt Rates Dates
Issue date Maturity dates Dates
Amount
General obligation
bonds -2004 A Series 4.0 -5.0% 1/1 -7/1
7/21/2004 7/1/2024 7/l/2007
325,000
7/1/2008
340,000
7/1/2009
350,000
7/1/2010
365,000
7/1/2011
385,000
7/1/2012
400,000
7/1/2013
415,000
7/1/2014
435,000
7/1/2015
450,000
7/1/2016
470,000
7/1/2017
485,000
7/1/2018
510,000
7/1/2019
530,000
7/1/2020
555,000
7/l/2021
580,000
7/1/2022
605,000
7/1/2023
635,000
7/1/2024
665,000
8,500,000
General obligation
bonds - 2004ASeries 3.0 -5.0% 5/1 -11 /1
12/1/2004 11/1/2024 11/1/2006
410,000
11/1/2007
420,000
11/1/2008
435,000
ll /l/2009
445,000
11/1/2010
460,000
11/1/2011
475,000
11/1/2012
490,000
11/1/2013
510,000
11/1/2014
530,000
11/1/2015
550,000
11/1/2016
570,000
11/1/2017
595,000
11/1/2018
620,000
11/1/2019
650,000
11/1/2020
675,000
11/1/2021
705,000
l l / 1 /2022
740,000
11/1/2023
775,000
11/1/2024
815,000
10,870,000
42 (Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
Authorized Prior years Balance at
Fiscal year Amount Issued Retired June 32,M Issued
2004 9,300,000 9,300,000
2004 11,050,000 11,050,000
490,000 8,810,000
1 1,050,000
Retired/ Balance at
Refunded June 30, 2006
310,000 8,500,000
180,000 10,870,000
43 (Continued)
t
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
Interest
Type of debt Rates Dates
Clean water — Karluk 3.92-4.05% **
Principal payments
Issue date Maturity dates Dates
Amount
** ** 6/1/2007
4,667
6/1/2008
4,784
6/l/2009
4,903
6/1/2010
5,026
6/1/2011
5,152
6/1/2012
5,280
6/1/2013
5,412
6/1/2014
5,548
6/1/2015
5,686
6/1/2016
5,829
6/1/2017
5,974
6/1/2018
6,124
6/1/2019
6,277
6/1/2020
6,434
6/1/2021
6,594
83,690
$ 31,238,690
* Interest free unless delinquent, the 7% plus fees and penalties.
** These loans respresent State of Alaska financial assistance programs, for which no payment schedules will be finalized,
or principal payments made, until the plans and specifications for the projects funded have been completed. The loans
are in the amount of $350,000 and $50,000, and are to be repaid from general fund revenues of the Borough. Interest
begins accruing at the stated rates from the date of each individual disbursement of loan proceeds to the Borough.
44
1
1
1
C
1
1
(Continued)
1
1
1
1
1
1
1
1
1
r
i
i
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
Authorized Prior years Balance at Retired/ Balance at
Fiscal year Amount Issued Retired June 30, 2004 Issued Refunded June 30, 2005
1998 400,000 97,019 8,776 88,243 — 4,553 83,690
$ 36,225,000 35,922,019 2,868,776 33,053,243 — 1,814,553 31,238,690
45
(Continued)
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
The annual requirements to amortize all general obligation bonded debt and the ADEC loan payable
outstanding as of June 30, 2006, are as follows:
General ADEC
There were no amounts available in the Debt Service Funds to service the general obligation bonds.
There are a number of limitations and restrictions contained in the various bond indentures. The
Borough is in compliance with all significant limitations and restrictions.
(b) Note Payable
As of June 30, 2006, the Borough had the following note payable outstanding in the Enterprise
Funds:
Note payable to Alaska Department of Environmental Conservation
(ADEC), to be paid within 20 years at 3.8% interest, terms to be
negotiated with the first loan payment due one year following
substantial completion and initiation of operation of the facility
(8) Solid Waste Landfill Closure and Postclosure Care Costs
1
1
t
t
1,270,210 1
State and federal laws and regulations require that the Kodiak Island Borough place a final cover on
its landfill when closed and perform certain maintenance for a number of years after closure. In
addition to operating expenses related to current activities of the landfill, an expense provision and
related liability are recognized based on the future closure and postclosure care costs that will be
incurred based on the date the landfill no longer accepts waste. The recognition of these landfill
closure and postclosure care costs is based on the amount of the landfill used during the year. The
estimated liability of landfill closure and postclosure care costs is $3,258,937 as of June 30, 2006,
which is based on 86% usage (filled) of the landfill. The landfill is estimated to be filled and
unusable by the year 2020. Of the total liability at June 30, 2006, an increase of $245,006 was
recorded in the current year based on current year usage and changes in estimates. An estimated
additional $530,525 will be recognized as closure and postclosure care expenses between the date of
the balance sheet and the date the landfill is expected to be filled to capacity. The estimated total
current cost of the landfill closure and postclosure care of $3,789,462 is based on the amount that
46
i
J
obligation
loan payable
Interest
Total
Year ending June 30:
2007
2,095,000
4,667
1,333,806
2,099,667
2008
2,200,000
4,784
1,262,427
2,204,784
2009
2,290,000
4,903
1,168,707
2,294,903
2010
2,385,000
5,026
1,070,939
2,390,026
2011 -2015
10,455,000
27,078
3,839,242
10,482,078
2016 -2020
5,535,000
30,638
2,218,269
5,565,638
2021 -2025
6,195,000
6,594
863,970
6,201,594
$ 31,155,000
83,690
11,757,360
31,238,690
There were no amounts available in the Debt Service Funds to service the general obligation bonds.
There are a number of limitations and restrictions contained in the various bond indentures. The
Borough is in compliance with all significant limitations and restrictions.
(b) Note Payable
As of June 30, 2006, the Borough had the following note payable outstanding in the Enterprise
Funds:
Note payable to Alaska Department of Environmental Conservation
(ADEC), to be paid within 20 years at 3.8% interest, terms to be
negotiated with the first loan payment due one year following
substantial completion and initiation of operation of the facility
(8) Solid Waste Landfill Closure and Postclosure Care Costs
1
1
t
t
1,270,210 1
State and federal laws and regulations require that the Kodiak Island Borough place a final cover on
its landfill when closed and perform certain maintenance for a number of years after closure. In
addition to operating expenses related to current activities of the landfill, an expense provision and
related liability are recognized based on the future closure and postclosure care costs that will be
incurred based on the date the landfill no longer accepts waste. The recognition of these landfill
closure and postclosure care costs is based on the amount of the landfill used during the year. The
estimated liability of landfill closure and postclosure care costs is $3,258,937 as of June 30, 2006,
which is based on 86% usage (filled) of the landfill. The landfill is estimated to be filled and
unusable by the year 2020. Of the total liability at June 30, 2006, an increase of $245,006 was
recorded in the current year based on current year usage and changes in estimates. An estimated
additional $530,525 will be recognized as closure and postclosure care expenses between the date of
the balance sheet and the date the landfill is expected to be filled to capacity. The estimated total
current cost of the landfill closure and postclosure care of $3,789,462 is based on the amount that
46
i
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1
' KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
would be paid if the landfill were closed as of June 30, 2006. However, the actual cost of closure and
postclosure care may be higher due to inflation, changes in technology, or changes in landfill laws
and regulations.
The Kodiak Island Borough is required by state and federal laws and regulations to make annual
contributions to finance closure and postclosure care. The Kodiak Island Borough complies with
these requirements by annually recording the liability based on the estimates provided by the Kodiak
Island Borough's Engineering /Facilities Director. It is anticipated that future inflation costs and
' additional costs that might arise from changes in postclosure requirements, due to changes in
technology or more rigorous environmental regulations, for example, will be financed primarily by
charges to future landfill users and secondarily by taxpayers.
1
1
1
1
1
1 47
1
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
For governmental activities, compensated absences are generally liquidated by the General Fund. I
48 1
g es in Lon g
() Changes -Term Liabilities
Long -term liability activity for the year ended June 30, 2006, was as follows:
Balance
Balance
June 30,
June 30,
Due within
2005
Additions
Reductions
2006
one year
,
Governmental activities:
Bonds payable:
General obligation bonds
$ 32,965,000
—
1,810,000
31,155,000
2,095,000
,
Bond premium
115,509
—
6,080
109,429
6,080
33,080,509
—
1,816,080
31,264,429
2,101,080
ADEC loans
88,243
—
4,553
83,690
4,667
'
Compensated absences
172,760
171,869
172,760
171,869
171,869
Total
$ 33,341,512
171,869
1,993,393
31,519,988
2,277,616
Business -type activities:
Municipal solid waste
collection and disposal:
Landfill closure and
post - closure care
costs
$ 3,013,931
245,006
—
3,258,937
—
Notes payable
1,270,210
—
—
1,270,210
—
Total
$ 4,284,141
245,006
—
4,529,147
—
Hospital facilities:
Long term interfund
borrowings
$ 1,490,822
—
57,919
1,432,903
60,259
Total hospital
$ 1,490,822
—
57,919
1,432,903
60,259
Kodiak Fisheries Research
,
Center:
Long term interfund
borrowings
$ 6,600,000
—
290,000
6,310,000
315,000
Business -type activities:
Landfill closure and post-
closure care costs
$ 3,013,931
245,006
—
3,258,937
—
,
Long term interfund
borrowings
8,090,822
—
347,919
7,742,903
347,919
Notes payable
1,270,210
—
—
1,270,210
—
Total
$ 12,374,963
245,006
347,919
12,272,050
347,919
For governmental activities, compensated absences are generally liquidated by the General Fund. I
48 1
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KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
(9) Insurance and Risk Retention
The Kodiak Island Borough is exposed to numerous risks of loss associated with the operations of a
government. These potential losses include, but are not limited to, employee relations and injuries,
contracts, theft, loss or damage of property and general liability. The Borough manages its risks from these
potential losses by participating in the Alaska Municipal League Joint Insurance Association, as well as
purchasing commercial insurance coverage. This insurance has provided the Borough with adequate
coverage in the past. There were no significant changes in insurance coverage obtained and there were no
claims or settlements that exceeded insurance coverage in any of the past three fiscal years.
The Borough is a member in good standing of the Alaska Municipal League Joint Insurance Association
(JIA), a governmental insurance pool established by the Alaska Municipal League. Claims are covered on
an occurrence basis. JIA provides risk management services, appraisal services and there is also a separate
pool for policy liability. The Kodiak Island Borough Finance Director is a member of the Board of
Directors of the JIA.
The responsibilities of both JIA and the participants are as follows:
(a) Responsibilities of JIA
JIA shall perform the following instructions in discharging its responsibilities:
• Provide insurance coverage as necessary for property, including building and contents,
automobile, mobile equipment and data processing equipment, casualty, including general
liability, public officials' and employees' liability, auto liability and employee benefit liability;
' workers' compensation, including employers' liability; commercial blanket bond; and time
element.
• Assist each participant's assigned risk manager with the implementation of that function.
' • Provide loss prevention and safety and consulting services to participants as required.
• Provide claims adjusting and subrogation services for claims covered by the association's joint
' insurance arrangement.
(b) Responsibilities of the Participants
' The Participants shall have the following responsibilities:
• The Borough Assembly or appointing official of each participant shall appoint a representative
' as provided in Article 5, Section 2 of the bylaws and at least one alternate representative to
attend member meetings.
• Each participant shall appoint an employee of the participant to be responsible for the risk
' management function within that entity and to serve as a liaison between the participant and
JIA with respect to risk management.
• Each participant shall maintain an active safety officer and /or committee, and shall comply
' with all recommendations of JIA concerning the development and implementation of a loss
control policy to prevent unsafe practices.
' 49
1
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
Each participant shall maintain its own set of records as a loss log, in all categories of loss to
insure accuracy of JIA's loss reporting system.
(10) Rental Revenues
(a) Hospital Facilities Enterprise Fund
The Kodiak Island Borough Assembly leases the Kodiak Island Hospital and Care Center premise
and equipment to Sisters of Providence d.b.a. Providence Alaska Medical Center who assumed
responsibility for the hospital's operations as of April 21, 1997. The lease agreement is effective for
a term of ten years from that date and contains provisions for an additional ten -year option. The lease
is cancelable by either party with a one year notice. The hospital capital assets, the lease income, and
all other costs relating to the agreement are accounted for by the Borough in the Hospital Facilities
Enterprise Fund.
The agreement with Providence specifies that the Borough will contribute at least $150,000 per year
for the purchase of new and replacement equipment for the hospital. The Borough is also required to
fund any major maintenance and repairs projects exceeding $25,000 in cost. The Borough receives
$60,000 per month in rental revenue. In October 2005 the lease was amended to remove the
requirement that Providence had to pay 50% of the net revenues of the hospital, up to $600,000, in
rental revenues. The lease was also amended to have the $150,000 of equipment which the Borough
was required to purchase become Providence property rather than Borough property. In
August 2003, the lease was amended that required Providence to pay an additional lease payment of
$1,300,000 in 2004. Prior to the commencement of each subsequent lease year, both parties will
negotiate for the terms for the following year.
Should the Borough wish to terminate the lease agreement without cause, the Borough would be
required to refund a $2,000,000 down payment made on the lease in proportion to the number of
years remaining on the ten -year term of the lease, at the rate of $200,000 per year for each remaining
year. For accounting purposes such payment would be considered to be a penalty for the early
termination of the lease.
(b) Kodiak Fisheries Research Center
The Kodiak Fisheries Research Center (KFRC) leases its premise to the General Services
Administration (GSA), Alaska Department of Fish and Game (ADF &G), the GSA on behalf of
Department of Commerce, National Oceanic and Atmospheric Administration (NOAA), and the
University of Alaska Fairbanks (UAF).
The lease with the GSA is from March 1, 2003, through September 30, 2018, cancelable with
120 days notice. Annual rent varies from $32,000 in 2006 to $41,000 in 2018.
The lease with ADF &G is from October 1, 1998 through September 30, 2018, with an option to
extend for up to two additional five year periods. Annual rent varies from $28,800 in 2006 to
$52,800 in 2011. The annual rent from 2012 through 2018 will be based on $52,800 and adjusted for
the tenants proportionate share of building expenses and utilization of the seawater system.
50
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KODIAK ISLAND BOROUGH
' Notes to Financial Statements
June 30, 2006
The lease with NOAA is from October 1, 1998 through September 30, 2018, with an option to
extend for up to four additional five year periods. Annual rent is $756,000 plus operational and
maintenance expenses of $699,076. Operational and maintenance expenses are adjusted every five
years to actual costs.
The lease with UAF is from October 1, 1998 through September 30, 2018, cancelable with 30 days
notice, with an option to extend for up to two additional five year periods. Annual rent varies from
$90,000 in 2006 to $143,601 in 2018.
(11) Retirement Commitments
' (a) PERS
The Alaska Public Employees' Retirement System (PERS) is a defined benefit agent
multiple - employer public employee retirement system that acts as a common investment and
administrative agent for political subdivisions within the State of Alaska. Benefit and contribution
provisions are established by Chapter 35 of Alaska Statute Title 39, and may be amended only by
state legislature. Employee participation in the plan is mandatory for permanent employees
' scheduled to work at least 15 hours a week. There is no optional participation for other employees.
The plan provides pension and other postemployment healthcare, death and disability benefits.
During 2005, the Borough adopted Governmental Accounting Standards Board Statement No. 45,
' Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions.
' During the 2005 legislative session, a law was enacted that closes this retirement plan. Senate Bill
141, signed into law on July 27, 2005 and effective July 1, 2006 closed the plan to new members and
created a new defined contribution plan for members first hired on or after July 1, 2006. As part of
this legislation, active nonvested members may have the option to convert their defined benefit plan
to the new PERS Defined Contribution Retirement Plan if their employer decides to participate in the
conversion option.
1 PERS issues a publicly available financial report that includes financial statements and required
supplementary information. That report may be obtained by writing to State of Alaska, Department
of Administration, Division of Retirement and Benefits, P.O. Box 110203, Juneau,
' Alaska 99811 -0203, by calling (907) 465 -4460 or online at http://www.state.ak.us/drb/pers/actuarial-
valuation.shtml
' At June 30, 2006, the number of participating employers was:
State of Alaska
3
Municipalities
77
School Districts
53
Other
27
Total employers
160
1 51
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
Under state law, covered employees are required to contribute 6.75% (7.5% for police and fire
personnel) of their annual covered payroll and the Borough is required to contribute an actuarially
determined rate that, expressed as a percentage of annual covered payroll, is sufficient to accumulate
assets to pay pension and other postemployment benefits (OPEB) when due. However, the 2006
actuarially determined rate was 28.34% of applicable gross pay and the employer contribution rate
was capped at 10.0% in accordance with PERS statute that limits yearly increases to 5% age points.
Benefits vest after five years of credited service. Employees enrolled prior to July 1, 1986 with five
or more years of credited service are entitled to annual pension benefits beginning at normal
retirement age 55 or early retirement age 50. For employees enrolled after June 30, 1986 the normal
and early retirement ages are 60 and 55, respectively. Employees with 30 or more years of credited
service may retire at any age and receive a normal benefit.
Retirement benefits are calculated by multiplying the average monthly compensation (AMC) times
credited PERS service times the percentage multiplier. The AMC is determined by averaging the
salaries earned during the five highest (three highest for Police /Fire members or members hired prior
to July 1, 1996) consecutive payroll years. Members must earn at least 115 days of credit in the last
year worked to include it in the AMC calculation. The PERS pays a minimum benefit of $25.00 per
month for each year of service when the calculated benefit is less.
The percentage multipliers for police /fire personnel are 2% for the first ten years of service and 2.5%
for all service over 10 years. The percentage multipliers for all other participants are 2% for the first
ten years, 2.25% for the next ten years, and 2.5% for all remaining service earned on or after July 1,
1986. All service before that date is calculated at 2 %.
The system also provides death and disability benefits and major medical benefits. Major medical
benefits are provided without cost to all members first enrolled before July 1, 1986. Members first
enrolled after June 30, 1986 may elect to pay for major medical benefits.
Pension benefits are adjusted each year based upon increases in the Consumer Price Index (CPI) for
the prior year. The increase in the benefits is 75% of the CPI increase up to a 9% maximum for
recipients who are at least age 65 or on disability or 50% of the increase up to a 6% maximum for
recipients who are at least age 60 but under 65 or who have been receiving benefits for at least five
years. Starting at age 65, or at any age for those employed before July 1, 1986, a retired employee
who remains in Alaska is eligible for an additional allowance equal to 10% of the base benefit or $50
a month, whichever is greater.
Annual Cost and Net Obligation
The Borough's annual costs (expense) are calculated based on the annual required contribution of the
employer (ARC), an amount actuarially determined in accordance with the parameters of
GASB Statement 45. Tile ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding
excess) over a period not to exceed twenty years. The following table shows the components of the
Borough's annual cost, the amount actually contributed to the plan, and changes in the Borough's net
obligation to PERS:
52
1
1
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1
1
11,
1
1
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1
KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
Annual required contribution
Interest on net obligation
Adjustment to annual cost
Annual cost
Contributions made
Increase in obligation
Net obligation, beginning of year
Net obligation, end of year
Pension
$ 441,139
17,648
(34,755)
424,032
(272,330)
151,702
213,916
$ 365,618
OPEB
163;161
11,795
(23,230)
151,726
(100,725)
51,001
142,981
193,982
Funded Status and Funding Progress (Unaudited)
The funded status of the plan as of June 30, 2005, was as follows:
OPEB
11,485,073
7,400,740
4,084,333
64%
2,132,321
192%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates
are made about the future. The schedule of funding progress, presented as required supplementary
information following the notes to the financial statements, presents multiyear trend information that
shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the
time of each valuation and the historical pattern of sharing of benefit costs between the employer and
plan members to that point. The actuarial methods and assumptions used include techniques that are
designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of
53
Pension
Actuarial accrued liability (AAL)
$ 11,526,933
Actuarial value of plan assets
7,427,714
Unfunded actuarial accrued liability (UAAL)
$ 4,099,219
Funded ratio (actuarial value of plan assets /AAL)
64%
Covered payroll (active plan members)
$ 2,132,321
UAAL as a percentage of covered payroll
192%
OPEB
11,485,073
7,400,740
4,084,333
64%
2,132,321
192%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates
are made about the future. The schedule of funding progress, presented as required supplementary
information following the notes to the financial statements, presents multiyear trend information that
shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the
time of each valuation and the historical pattern of sharing of benefit costs between the employer and
plan members to that point. The actuarial methods and assumptions used include techniques that are
designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of
53
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KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
assets, consistent with the long -term perspective of the calculations. Significant actuarial methods
and assumptions were as follows:
The Senate introduced Senate Bill 46 late in September 2006 appropriating money from the General
Fund to the Department of Administration to help reduce the liability to PERS brought on by the
increased employer cost due to the employer contribution rate increases in fiscal year 2006. The
appropriation is intended to help reduce the cost based on the estimates but will not fully eliminate
the increased employer costs. The amount allocated to the Kodiak Island Borough was $113,667.
The Borough's annual pension cost, the percentage of annual pension cost contributed to the plan,
and the net pension obligation for 2006 and the two preceding years were as follows:
Il
1
1
1
[
1
J
Percentage
of APC
Year ended APC contributed
Net pension
obligation
6/30/2004 $ 58 100% —
6/30/2005 273,669 22% 213,916
6/30/2006 424,032 64% 365,618
The Borough's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and
the net OPEB obligation for 2006 and the two preceding years were as follows:
54
Pension
OPEB
Contribution rates:
Employee:
Peace officers and firefighters
4.50%
3.00%
Other employees
4.05%
2.70%
Employer
20.98%
7.36%
Actuarial assumptions:
Actuarial valuation date
June 30, 2005
June 30, 2004
Actuarial cost method
Projected unit credit
Projected unit credit
Amortization method
Percent of pay,
Percent of pay,
open
open
Remaining amortization,period
20 years
20 years
Asset valuation method
5 -year
5 -year
Inflation rate
3.50%
3.50%
Investment return
8.25%
8.25%
Projected salary increase:
Inflation
3.50%
N/A
Productivity and merit:
Peace officers and firefighters
2.50%
N/A
Others
2.00%
N/A
Health cost trend
N/A
12.00%
The Senate introduced Senate Bill 46 late in September 2006 appropriating money from the General
Fund to the Department of Administration to help reduce the liability to PERS brought on by the
increased employer cost due to the employer contribution rate increases in fiscal year 2006. The
appropriation is intended to help reduce the cost based on the estimates but will not fully eliminate
the increased employer costs. The amount allocated to the Kodiak Island Borough was $113,667.
The Borough's annual pension cost, the percentage of annual pension cost contributed to the plan,
and the net pension obligation for 2006 and the two preceding years were as follows:
Il
1
1
1
[
1
J
Percentage
of APC
Year ended APC contributed
Net pension
obligation
6/30/2004 $ 58 100% —
6/30/2005 273,669 22% 213,916
6/30/2006 424,032 64% 365,618
The Borough's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and
the net OPEB obligation for 2006 and the two preceding years were as follows:
54
1
' KODIAK ISLAND BOROUGH
Notes to Financial Statements
June 30, 2006
I
�
Annual Percentage of
OPEB Annual OPEB Net OPEB
Year ended June 30 Cost Cost Contribute Obligation
2004 $ 39 100% —
' 2005 182,920 22% 142,981
2006 151,726 64% 193,982
(b) Deferred Compensation Plan
The Kodiak Island Borough has a deferred compensation plan created and amended in accordance
' with Internal Revenue Code Section 457. The plan is available to all regular Borough employees.
The deferred compensation is not available to employees until termination, retirement, death, or
unforeseeable emergency.
All amounts deferred under this plan are held in a trust that was established for the exclusive benefit
of plan participants. Amounts contributed to the plan by participants during the year ended June 30,
2006, was $98,731.
The plan is managed by the International City Managers Association Retirement Corporation. The
Borough believes that the plan does not meet the criteria for inclusion as a fiduciary fund.
' (12) Contingencies
(a) General
The Borough, in the normal course of its activities, is involved in various claims and pending
litigation. After consultation with legal counsel, management estimates that these matters will be
resolved without material adverse effect on the Borough's future financial position or results of
operations.
(b) Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment by the
grantor agencies. Any disallowed claims, including amounts already collected, would become a
liability of the General or other applicable funds. In management's opinion, disallowances, if any,
will not be material.
(c) Litigation
The Borough is a member of a mandatory class action lawsuit which resulted in a verdict against
Exxon Corporation in August 1994 in the amount of $5 billion for punitive damages and was later
reduced to $4.5 billion. The matter is now on appeal to the Ninth Circuit Court of Appeals. The share
of the settlement, if any, has not been recognized in the financial statements as the settlement is in
the appeals process. The ultimate outcome of the matter and the amount to be realized by the
Borough upon final settlement is indeterminable at this time.
55
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' REQUIRED SUPPLEMENTARY INFORMATION
1
ll�
i
i
Three -year historical trend information presenting the Borough's progress in accumulating sufficient assets to
pay pension and OPEB benefits under the PERS when due is presented as follows (dollar amounts in thousands):
57
(AAL)
UAL /FE as a
Actuarial
(UAAL)
percentage
Actuarial
Actuarial
accrued
Funding
of covered
valuation
value of
liability
excess
Funding
Covered
payroll
date
assets (a)
(AAL) (b)
(FE) (a -b)
ratio (alb)
payroll (c)
((a -b) /c)
Pension:
6/30/2003
8,701
11,170
(2,469)
78%
1,712
(144)%
6/30/2004
8,543
12,055
(3,512)
71%
1,953
(180)%
6/30/2005
7,428
11,527
(4,099)
64%
2,132
(192)%
OPEB:
6/30/2003
5,816
7,466
(1,650)
78%
1,712
(96)%
6/30/2004
6,024
8,501
(2,477)
71%
1,953
(127)%
6/30/2005
7,401
11,485
(4,084)
64%
2,132
(192)%
57
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
General Fund
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
Revenues:
Property taxes:
Real
Personal
Boat
Penalty and interest
Total property taxes
Intergovernmental:
State sources:
Tax Payer Relief
Motor vehicle
Raw fish tax
Fish revitalization
Electric Co -op tax
On behalf PERS payment
Total state sources
Federal sources:
Payments in lieu of taxes
Fish and Wildlife revenue sharing
Total federal sources
Total intergovernmental
revenue
Severance taxes:
Fish
Mining
Logging
Total severance taxes
Licenses, permits, fees, and other local
revenues:
Building and trailer permits
Subdivision and zoning fees
Sale of copies
Miscellaneous
Total licenses, permits, fees,
and other local revenues
Investment income
Total revenues
1
11
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n
58 1
2006
Variance with
Final Budget -
Budget
Positive
2005
Original
Final
Actual
(Negative)
Actual
$ 7,614,300
7,614,300
7,790,275
175,975
6,962,534
1,167,990
1,167,990
1,107,316
(60,674)
995,953
8,000
8,000
7,546
(454)
6,575
150,000
150,000
164,978
14,978
204,612
8,940,290
8,940,290
9,070,115
129,825
8,169,674
113,000
-
-
-
-
180,000
180,000
181,632
1,632
203,603
700,000
802,300
802,313
13
773,290
1,780
62,877
61,097
26,000
26,000
26,680
680
27,205
-
-
113,667
113,667
-
1,019,000
1,010,080
1,187,169
177,089
1,004,098
745,000
745,000
803,246
58,246
789,053
400,075
400,075
378,770
(21,305)
335,857
1,145,075
1,145,075
1,182,016
36,941
1,124,910
2,164,075
2,155,155
2,369,185
214,030
2,129,008
903,060
903,060
1,108,742
205,682
980,110
6,640
6,640
15,426
8,786
8,416
55,330
55,330
62,740
7,410
17,013
965,030
965,030
1,186,908
221,878
1,005,539
80,000
80,000
69,670
(10,330)
77,597
7,000
7,000
6,525
(475)
13,825
24,000
24,000
13,470
(10,530)
18,394
65,700
65,700
82,297
16,597
51,805
176,700
176,700
171,962
(4,738)
161,621
230,000
300,000
469,913
169,913
265,392
12,476,095
12,537,175
13,268,083
730,908
11,731,234
(continued)
1
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KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
General Fund
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
' Community and economic development:
Community development department
Building official
Economic development
' Total community and economic
development
Expenditures:
'
General government:
'
General and administration
Borough assembly
Variance with
Borough manager
'
Borough clerk
Borough attorney
Finance department
'
Management information systems
Assessing department
2005
Engineering/facilities department
Final
Total general government
' Community and economic development:
Community development department
Building official
Economic development
' Total community and economic
development
1 See accompanying notes to required supplementary information.
1 59
Emergency preparedness
'
Health and sanitation department
'
Education, culture, and recreation
Primary and secondary education
Variance with
Total expenditures
'
Excess of revenues
over expenditures
1 See accompanying notes to required supplementary information.
1 59
Other financing uses:
'
Transfers out
Net change in fund balance
Fund balance, at beginning of year
Fund balance, at end of the
Variance with
year
1 See accompanying notes to required supplementary information.
1 59
2006
Variance with
Final Budget -
Budget
Positive
2005
Original
Final
Actual
(Negative)
Actual
$ 310,970
335,970
421,057
(85,087)
327,571
160,230
160,230
139,053
21,177
126,388
237,150
237,150
252,118
(14,968)
355,019
359,570
359,570
354,798
4,772
304,259
153,200
153,200
74,638
78,562
112,510
664,770
664,770
602,111
62,659
556,616
429,213
429,213
423,751
5,462
381,037
385,820
385,820
354,595
31,225
246,884
111,980
111,980
108,214
3,766
76,195
2,812,903
2,837,903
2,730,335
107,568
2,486,479
528,270
528,270
497,036
31,234
443,876
132,230
132,230
163,829
(31,599)
139,832
78,000
78,000
75,018
2,982
87,322
738,500
738,500
735,883
2,617
671,030
38,800
38,800
6,098
32,702
5,428
284,320
284,320
286,294
(1,974)
254,313
150,335
162,335
161,633
702
127,335
8,360,110
8,460,110
8,430,840
29,270
7,973,035
12,384,968
12,521,968
12,3 51,083
170,885
11,517,620
91,127
15,207
917,000
901,793
213,614
(697,450)
(703,900)
(703,900)
-
(510,097)
$ (606,323)
(688,693)
213,100
901,793
(296,483)
1,813,013
2,109,496
$
2,026,113
1,813,013
1 See accompanying notes to required supplementary information.
1 59
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Special Revenue Fund — Facilities
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
Revenues:
Investment income
Expenditures:
Contingencies
Excess of revenues over expenses
Other financing sources (uses):
Transfers out
Net change in fund balance
Fund balance, at beginning of year
Fund balance, at end of year
See accompanying notes to required supplementary information.
60
2006
Variance with
Final Budget —
Budget
Positive
2005
Original
Final
Actual
(Negative)
Actual
$ 1,680,000
1,680,000
1,477,536
(202,464)
1,114,071
436,000
284,000
—
284,000
—
1,244,000
1,396,000
1,477,536
81,536
1,114,071
(1,244,000)
(1,396,000)
(717,035)
678,965
(884,248)
$ —
—
760,501
760,501
229,823
37,774,332
37,544,509
$
38,534,833
37,774,332
See accompanying notes to required supplementary information.
60
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
Budgetary Comparison Schedule
Debt Service Fund - Education and Health
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
2006
Revenues:
Intergovernmental:
State sources
Investment income
Total revenues
Expenditures:
General government
Debt service:
Principal
Interest
Bond issuance costs
Total expenditures
Deficiency of revenues over
expenditures
Other financing sources:
Bond premium
Transfers in
Net other financing sources
Net change in fund balance
Fund balance (deficit), at beginning of year
Fund deficits, at end of year
$ 1,885,040
Variance with
Original
Final Budget
and Final
Positive 2005
Budget
Actual (Negative) Actual
$ 1,885,040
2,146,406
261,366
942,687
9,280
39,517
30,237
11,983
1,894,320
2,185,923
291,603
954,670
2,500
1,315
1,185
4,705
1,994,550
1,814,553
179,997
1,784,859
1,594,950
1,583,488
11,462
983,195
—
—
—
38,956
3,592,000
3,399,356
192,644
2,811,715
(1,697,680)
(1,213,433)
484,247
(1,857,045)
—
—
—
118,830
1,697,680
1,480,155
(217,525)
1,356,067
1,697,680
1,480,155
(217,525)
1,474,897
$ —
266,722
266,722
(382,148)
(348,233)
33,915
$
(81,511)
(348,233)
See accompanying notes to required supplementary information.
61
1
KODIAK ISLAND BOROUGH '
Notes to Required Supplementary Information — Budgetary Comparison Schedules ,
June 30, 2006
The Borough follows these procedures in establishing the budgetary data reflected in the fund financial
statements: ,
• The Borough Manager must submit to the Borough Assembly by April 30 a proposed operating budget for
the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and '
the means of financing them.
• Public hearings are conducted by the Borough Assembly to obtain citizen comments.
• By June 10, the budget is legally enacted through passage of an ordinance by Borough Assembly action. If ,
the Borough Assembly fails to pass an ordinance, the budget submitted by the Borough Manager becomes
the adopted budget.
• Amendments to the budget can occur anytime during the fiscal year through the Borough Assembly or ,
administrative action. Generally, the following actions are required at the level of the particular change:
— All new appropriations are authorized by an appropriation ordinance that amends the annual budget ,
ordinance.
— A resolution of the Borough Assembly is required to move (appropriate) amounts between
departments and projects. I
— The administration is authorized and directed by the Borough Assembly to effect the necessary line
item changes within the limits established by Items (1) and (2) above by project or department to
properly monitor, account, and report receipts and expenditures.
• Expenditures may not legally exceed appropriations at the following levels: Capital Projects Funds —
project level, all other funds — department level. ,
• All funds, except Capital Projects Funds, are budgeted on an annual basis encompassing a fiscal year.
Budgets of Capital Projects Funds generally encompass the period from start-up to project completion,
which is generally greater than one year. '
• Appropriations lapse at year end to the extent that they have not been expended for all funds, except
Capital Projects Funds, which lapse at project completion.
• Budgets adopted by the Borough Assembly are in accordance with accounting principles generally
accepted in the United States of America.
• The Borough publishes a separate 2006 budget document. That document may be obtained from the '
Kodiak Island Borough, Director of Finance, 710 Mill Bay Road, Kodiak, Alaska 99615.
62 1
1
1 KODIAK ISLAND BOROUGH
Combining Balance Sheets
' Nonmajor Governmental Funds
June 30, 2006
' (With summarized financial information at June 30, 2005)
'
Special
Debt
Capital
Totals
Assets
Revenue
Service
Project
2006
2005
Equity in central treasury
$
399,570
158,409
153,781
711,760
1,016,196
'
Temporary investments
2,303,136
-
978,549
3,281,685
2,012,699
Receivables:
State of Alaska
121,067
-
319,016
440,083
268,862
Federal Government
-
-
6,355
6,355
6,355
Property taxes
28,509
-
-
28,509
14,479
Land sales contracts, due within one year
1,538
1,538
8,000
Notes receivable
501,889
-
-
501,889
53,374
Other
21,689
-
-
21,689
25,105
Due from other funds
706,500
-
50,000
756,500
93,244
Notes receivable, due after one year
487,271
Land sale contracts, due after one year
228,496
228,496
34,272
Total
$
4,312,394
158,409
1,507,701
5,978,504
4,019,857
Liabilities and Fund Balances
Liabilities:
Accounts payable
$
229,975
-
6,914
236,889
132,391
Retainages payable
=
22,270
22,270
22,270
Employee benefits accrued and withheld
-
156
Customer deposits
678
-
678
1,203
Due to other funds
266,907
-
542,000
808,907
652,193
Unearned revenues
731,499
-
-
731,499
599,136
Total liabilities
1,229,059
571,184
1,800,243
1,407,349
Fund Balances:
Unreserved:
'
Designated for subsequent
year expenditures
420,400
-
-
420,400
143,676
Undesignated
2,662,935
158,409
936,517
3,757,861
2,468,832
'
Total fund balances
3,083,335
158,409
936,517
4,178,261
2,612,508
Totals
$
4,312,394
158,409
1,507,701
5,978,504
4,019,857
1
1 63
1
KODIAK ISLAND BOROUGH
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances (Deficits)
Nonmajor Governmental Funds
Year ended June 30, 2006
(With summarized financial information for year ended June 30, 2005)
Revenues:
Property taxes and assessments
Intergovernmental:
State sources
Federal sources
Land sale proceeds
Licenses, permits, fees,
and other local revenues
Investment income
Other
Total revenues
Expenditures:
General government
Community and economic development
Health and sanitation department
Service district maintenance
Capital improvements:
Schools
General
Debt service
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Net other financing sources (uses)
Net change in fund balances
Fund balances (deficits), at beginning of year
Fund balances, at end of year
Special Debt Capital Totals
Revenue Service Projects 2006 2005
1
u
�1
$ 763,731 -
-
763,731
690,452
34,916
34,916
426,621
320,974 -
263,936
584,910
329,383
177,164 -
-
177,164
22,738
648,049 -
275
648,324
530,379
'
108,757 -
18,566
127,323
52,826
114,290 -
10,750
125,040
75,094
2,132,965 -
328,443
2,461,408
2,127,493
'
1,219,277 -
-
1,219,277
1,222,923
48,119 -
-
48,119
65,804
77,226 -
-
77,226
75,425
'
336,385 -
-
336,385
347,934
- -
24,950
24,950
12,717
332,398
332,398
511,798
1,275 -
-
1,275
1,571
,
1,682,282 -
357,348
2,039,630
2,238,172
450,683 -
(28,905)
421,778
(110,679)
'
157,027 -
114,000
271,027
227,637
(82,967) -
-
(82,967)
(235,265)
'
74,060 -
114,000
188,060
(7,628)
524,743 -
85,095
609,838
(118,307)
2,558,592 158,409
851,422
3,568,423
2,730,815
'
$ 3,083,335 158,409
936,517
4,178,261
2,612,508
64
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue
See special revenue section of the report.
Debt Service
See debt service section of the report.
Capital Projects
See capital projects section of the report
NONMAJOR SPECIAL REVENUE FUNDS
The Fire Protection Area No. 1 Fund accounts for the activities related to fire
suppression and fire prevention services to the citizens of the service area.
The Womens Bay Fire Department Fund accounts for the activities related to
fire suppression and fire prevention services to the citizens of the service area.
The Kodiak Airport Fire District Fund accounts for the activities related to
fire suppression and fire prevention services to the citizens of the service area.
The Monashka Bay Road Service Area Fund accounts for the activities
related to road services within the service area.
The Service District No.1 Fund accounts for the activities related to
maintenance service to roads within the district, including snow removal,
ditching and grading.
The Womens Bay Service Area Fund accounts for the activities related to
maintenance service to roads within the service area, including snow and ice
removal, ditching and culvert work.
The Bay View Road Service Area Fund accounts for the activities related to
road services within the service area.
The Service Area No. 2 Fund accounts for the activities related to water and
sewer services in the service area. This fund is in the design stage at present.
The Coastal Management Fund accounts for State of Alaska and Federal
grants related to the effects of coastal energy development impacts.
Expenditures of these grants are for comprehensive plans, coastal sensitivity
analysis, outer continental shelf impact analysis, ordinance update, and planning
and zoning.
The Childcare Assistance Fund accounts for a State of Alaska grant to finance
day care for children of low- income employed families.
NONMAJOR SPECIAL REVENUE FUNDS
The Local Emergency Planning Committee Fund accounts for State of Alaska
grants provided for regional emergency preparation, response, and mitigation
planning.
The Land Sales Fund accounts for the disposal of Borough -owned lands. The
proceeds of land disposals are generally used for the management of Borough lands
and the repairs and maintenance of Borough school buildings.
The Building and Grounds Fund accounts for the operations and maintenance
of certain buildings and grounds owned by the Borough that are jointly shared with the
City of Kodiak, the Kodiak Island Borough School District and certain nonprofit
community organizations.
The Woodland Acres Street Light Service Area Fund accounts for activities
related to the provision of street lighting within the service area.
The Kodiak Arts Council Fund accounts for activities related to the facilitation of
the arts in the Kodiak community.
The Tourism Development Fund accounts for the collection of the Borough
Transient Accommodation Tax (Bed Tax) and its subsequent transfer to the Kodiak
Island Convention and Visitor Bureau.
The Trinity Islands Lighting District Fund accounts for activities related to the
provision of street lighting within the service area.
The Trinity Islands Paving District Fund accounts for activities related to
paving the dirt roads within the subdivision.
The Mission Lake Tide Gate Fund accounts for activities related to maintaining the
tide gate for the residents of the service area.
The Fern Fuller Trust Fund accounts for the distribution of funds to the
beneficiaries of the trust
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Combining Balance Sheet
June 30, 2006
(With summarized financial information at June 30, 2005)
Fire and Road Service Areas
L
I
L
L
66 1
Fire
Road
Fire
Womens
Kodiak
Monasbka
Protection
Bay Fire
Airport Fire
Bay Road
Service
Assets
Area No. 1
Department
District
Service Area
District No. 1
Equity in central treasury
$ 8,942
49,028
27,110
60,962
86,158
Temporary investments
978,550
-
-
-
-
Receivables:
State of Alaska
-
121,067
-
-
-
Land sales contracts, due within one year
-
-
_
_
Property taxes
5,280
1,821
42
477
2,230
Notes receivable
-
-
Other
Due from other funds
Notes receivable, due after one year
-
100,000
-
-
-
-
-
-
-
_
200,000
-
Land sale contracts, due after one year
-
-
-
-
-
Total
$ 1,092,772
171,916
27,152
61,439
288,388
Liabilities and Fund Balances
Liabilities:
Accounts payable
18,984
302
-
4,603
47,661
Employee benefits accrued and withheld
-
-
-
-
-
Customer deposits
-
500
-
-
-
Due to other funds
-
30,923
-
-
-
Unearned revenues
-
-
-
-
Total liabilities
Fund balances (deficits):
18,984
31,725
-
4,603
47,661
Unreserved (deficits):
Designated for subsequent year expenditures
349,660
-
340
-
Undesignated
724,128
140,191
26,812
56,836
240,727
Total fund balances (deficits)
1,073,788
140,191
27,152
56,836
240,727
Total
$ 1,092,772
171,916
27,152
61,439
288,388
L
I
L
L
66 1
1
1
i
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Fire and Road Service Areas
67
Road
Federal and State Grant Programs
Child Care
Womens Bay
Bay View Road
Service Area
Coastal
Assistance
Service Area
Service Area
No. 2
Management
Program
L.E.P.C.
Land Sales
14,685
212
4,331
35,191
280
320
60,964
-
-
-
-
-
-
918,454
-
-
-
-
1,538
2,883
431
-
-
-
-
-
-
-
-
-
-
-
3,116
200,000
-
-
-
5,000
-
-
-
-
-
-
-
-
228,496
217,568
643
4,331
35,191
5,280
320
1,212,568
48,292
1,310
-
-
18
5,315
2,558
-
-
-
10,000
-
-
-
1,113
-
-
228,497
48,292
1,310
-
1,113
18
15,315
231,055
169,276
(667)
4,331
34,078
5,262
(14,995)
981,513
169,276
(667)
4,331
34,078
5,262
(14,995)
981,513
217,568
643
4,331
35,191
5,280
320
1,212,568
67
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Combining Balance Sheet, Continued
Street Lighting Districts I
F�
1
1
68 1
Woodland
Buildings
Acres Street
Trinity Acres
and
Light Service
Street Light
Kodiak Arts
Tourism
Assets
Grounds
Area
Service Area
Council
Development
Equity in central treasury
$ 324
14,160
90
732
30,533
Temporary investments
406,132
—
—
—
—
Receivables:
State of Alaska
—
—
—
—
—
Land sales contracts, due within one year
—
—
—
—
Property taxes
—
—
—
—
—
Notes receivable
—
—
—
—
—
Other
900
—
—
(250)
17,341
Due from other funds
—
—
—
—
Notes receivable, due after one year
—
—
—
—
—
Land sale contracts, due after one year
—
—
—
—
—
Total
$ 407,356
14,160
90
482
47,874
Liabilities and Fund Balances
Liabilities:
Accounts payable
53,683
489
157
—
43,603
Employee benefits accrued and withheld
—
—
—
—
—
Customer deposits
—
—
—
—
178
,
Due to other funds
30,000
—
1,500
4,000
—
Uneamed revenues
—
—
—
—
—
Totalliabilities
Fund balances (deficits):
83,683
489
1,657
4,000
43,781
Unreserved (deficits):
Designated for subsequent year expenditures
65,000
5,400
—
—
—
Undesignated
258,673
8,271
(1,567)
(3,518)
4,093
Total fund balances (deficits)
323,673
13,671
(1,567)
(3,518)
4,093
Total
$ 407,356
14,160
90
482
47,874
F�
1
1
68 1
l
1
1
1 69
Mission Lake
Fern Fuller
Trinity Acres
Totals
Tide Gate
Trust
Paving
2006
2005
3,680
1,868
399,570
857,787
-
-
-
2,303,136
2,012,699
121,067
20,030
-
1,538
8,000
-
-
15,345
28,509
14,479
-
487,271
-
487,271
53,374
14,618
582
36,307
25,105
1,500
200,000
706,500
93,244
487,271
-
-
-
228,496
34,272
5,180
703,757
15,927
4,312,394
3,606,261
-
3,000
-
229,975
96,631
_
_
677 8
156
1,203
_
190,484
266,907
350,543
-
501,889
-
731,499
599,136
-
504,889
190,484
1,229,059
1,047,669
-
-
-
420,400
143,676
5,180
198,868
(174,557)
2,662,935
2,414,916
5,180
198,868
(174,557)
3,083,335
2,558,592
5,180
703,757
15,927
4,312,394
3,606,261
1
1 69
KODIAK ISLAND BOROUGH I
J
1
70 1
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances (Deficits)
Year ended June 30, 2006
(With summarized
financial information for the year ended June 30, 2005)
Fire and Road Service Areas
Fire
Road
Fire
Womens
Kodiak
llionashka
Protection
Bay Fire
Airport Fire
Bay Road
Area No. 1
Department
District
Service Area
Revenues:
Property taxes and assessments
$ 345,423
62,475
15,205
28,134
Intergovernmental:
State sources
-
-
-
-
Federal sources
-
222,457
-
-
Land sale proceeds
-
-
-
-
Licenses, permits, fees,
and other local revenues
6,909
9,535
Investment income
43,172
3,609
1,176
2,698
Other
-
-
-
-
Total revenues
395,504
298,076
16,381
30,832
Expenditures:
General government
254,740
264,767
27
478
Community and economic development
-
-
-
-
Health and sanitation department
-
-
-
-
Service district maintenance
-
-
-
23,544
Debt service
-
1,275
-
-
Total expenditures
254,740
266,042
27
24,022
Excess (deficiency) of revenues
over expenditures
140,764
32,034
16,354
6,810
Other financing sources (uses):
Transfers in
-
16,467
-
-
Transfers out
-
-
(16,467)
-
Net other financing sources (uses)
-
16,467
(16,467)
-
Net change in fund balance
140,764
48,501
(113)
6,810
Fund balances (deficits), at beginning of year
933,024
91,690
27,265
50,026
Fund balances (deficits), at end of year
$ 1,073,788
140,191
27,152
56,836
J
1
70 1
1
1
1
1
1
1
1
1
1
t
fi
it
t
1
1
71
Fire and Road Service Areas
Road
Federal and State Grant Programs
Child Care
Service
Womens Bay
Bay View Road
Service Area
Coastal
Assistance
District No. 1
Service Area
Service Area
No. 2
Management
Program
L.E.P.C.
Land Sales
162,305
96,059
5,611
-
-
-
-
-
-
-
-
-
24,367
74,150
-
-
-
-
-
-
-
-
-
177,164
-
20,000
85,092
13,077
9,318
45
164
-
-
-
24,202
-
-
-
-
31,829
-
-
7,305
175,382
125,377
5,656
164
56,196
74,150
-
293,763
6,336
1,883
57
-
-
-
9,214
30,333
-
-
-
-
3,119
-
-
-
-
-
-
-
-
77,226
-
-
182,556
125,924
4,361
=
_
_
188,892
127,807
4,418
-
3,119
77,226
9,214
30,333
(13,510)
(2,430)
1,238
164
53,077
(3,076)
(9,214)
263,430
(9,214)
(13,510)
(2,430)
1,238
164
53,077
(3,076)
263,430
254,237
171,706
(1,905)
4,167
(18,999)
8,338
(5,781)
718,083
240,727
169,276
(667)
4,331
34,078
5,262
(14,995)
981,513
(continued)
71
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances (Deficits)
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
72
1
1
1
Street Lighting Districts
Woodland Acres
Trinity Acres
Buildings and
Street Light
Street Light
Kodiak Arts
Grounds
Service Area
Service Area
Council
Revenues:
Property taxes and assessments
$ —
—
3,892
—
Intergovernmental:
State sources
—
—
—
Federal sources
—
—
—
—
Land sale proceeds
—
—
Licenses, permits, fees,
and other local revenues
418,445
—
—
60,423
Investment income
10,483
620
—
—
Other
156
—
—
—
Total revenues
429,084
620
3,892
60,423
Expenditures:
General government
572,365
5,660
1,822
61,553
Community and economic development
—
—
—
—
Health and sanitation department
—
—
—
—
Service district maintenance
—
—
—
—
Debt service
—
—
—
—
Total expenditures
572,365
5,660
1,822
61,553
Excess (deficiency) of revenues
over(under)expenditures
(143,281)
(5,040)
2,070
(1,130)
Other financing sources (uses):
Transfers in
140,560
—
—
—
Transfers out
—
—
—
Net other financing sources (uses)
140,560
—
—
—
Net change in fund balance
(2,721)
(5,040)
2,070
(1,130)
Fund balances (deficits), at beginning of year
326,394
18,711
(3,637)
(2,388)
Fund balances (deficits), at end of year
$ 323,673
13,671
(1,567)
(3,518)
72
1
1
1
Tourism
Mission Lake
Fern Fuller
Trinity Acres
Totals
Development
Tide Gate
Trust
Paving
2006
2005
-
2,456
-
42,171
763,731
690,452
-
-
-
-
-
95,528
-
-
-
-
320,974
142,371
-
-
-
-
177,164
22,738
47,645
-
-
-
648,049
530,379
150
-
-
43
108,757
52,826
-
-
75,000
-
114,290
75,094
47,795
2,456
75,000
42,214
2,132,965
1,609,388
-
1,377
8,627
38
1,219,277
1,222,923
45,000
-
-
-
48,119
65,804
-
_
-
-
77,226
75,425
-
-
-
-
336,385
347,934
-
-
-
-
1,275
1,571
45,000
1,377
8,627
38
1,682,282
1,713,657
2,795
1,079
66,373
42,176
450,683
(104,269)
-
-
-
-
157,027
227,637
-
-
(66,500)
-
(82,967)
(235,265)
-
-
(66,500)
-
74,060
(7,628)
2,795
1,079
(127)
42,176
524,743
(111,897)
1,298
4,101
198,995
(216,733)
2,558,592
2,670,489
4,093
5,180
198,868
(174,557)
3,083,335
2,558,592
73
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas - Fire Protection Area No. 1
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
74
2006
Variance with
Final Budget
Final
Positive
2005
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes $
330,000
345,423
15,423
330,757
Intergovernmental:
Federal sources
-
-
-
142,371
Licenses, permits, fees, and other
localrevenues
5,500
6,909
1,409
5,214
Investment income
-
43,172
43,172
18,406
Miscellaneous
500
-
(500)
15
Total revenues
336,000
395,504
59,504
496,763
Expenditures:
General government:
Fire chief
70,640
67,653
2,987
63,388
Volunteers
22,000
23,295
(1,295)
16,350
Fringe benefits
29,310
24,192
5,118
19,989
Professional services
13,000
5,123
7,877
4,105
Support goods and services
141,300
99,444
41,856
90,784
Capital outlay
115,000
35,033
79,967
179,320
Depreciation
30,000
-
30,000
-
Total expenditures
421,250
254,740
166,510
373,936
Excess (deficiency) of revenues over
expenditures
(85,250)
140,764
226,014
122,827
Fund balance, at beginning of year
933,024
810,197
Fund balance, at end of year
$
1,073,788
933,024
74
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas - Womens Bay Fire Department
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
Revenues:
Property taxes
Intergovernmental:
State sources
Federal sources
Licenses, permits, fees, and
other local revenues
Investment income
Total revenues
Expenditures:
General government:
Personnel services
Fringe benefits
Professional services
Support goods and services
Capital outlay
Debt service:
Interest
Total expenditures
Excess (deficiency) of revenues over
expenditures
Other financing sources:
Transfers in
Net change in fund balance
Fund balance, at beginning of year
Fund balance, at end of year
75
2006
Variance with
Final Budget
Final
Positive
2005
Budget
Actual
(Negative)
Actual
$ 63,000
62,475
(525)
60,904
-
-
-
297
-
222,457
222,457
-
9,000
9,535
535
9,030
500
3,609
3,109
1,672
72,500
298,076
225,576
71,903
3,000
1,670
1,330
618
650
498
152
96
-
-
-
30
52,825
40,142
12,683
52,236
284,725
222,457
62,268
(1,439)
10,000
1,275
8,725
1,571
351,200
266,042
85,158
53,112
(278,700)
32,034
310,734
18,791
16,700
16,467
(233)
18,757
$ (262,000)
48,501
310,501
37,548
91,690
54,142
$
140,191
91,690
75
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas — Kodiak Airport Fire District
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
76
2006
Variance with
Final Budget
Final
Positive
2005
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes $
15,390
15,205
(185)
15,520
Investment income
100
1,176
1,076
971
Total revenues
15,490
16,381
891
16,491
Expenditures:
General government:
Support goods and services
90
27
63
29
Excess of revenues over expenditures
15,400
16,354
954
16,462
Other financing uses:
Transfers out:
Womens Bay Fire Department Special
Revenue Fund
(15,400)
(16,467)
(1,067)
(18,757)
Net change in fund balance $
—
(113)
(113)
(2,295)
Fund balance, at beginning of year
27,265
29,560
Fund balance, at end of year
$
27,152
27,265
76
1
1
1
1
1
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas — Monashka Bay Road Service Area
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
77
2006
Variance with
Final Budget
Final
Positive
2005
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes
$ 28,756
28,134
(622)
23,939
Investment income
183
2,698
2,515
1,685
Total revenues
28,939
30,832
1,893
25,624
Expenditures:
General government:
Personnel services
515
402
113
635
Support goods and services
500
76
424
219
Service district maintenance:
Snow removal /sanding
12,000
15,630
(3,630)
4,625
Road grading /ditching
20,000
921
19,079
26,944
Repairs and maintenance
10,000
6,993
3,007
4,905
Total expenditures
43,015
24,022
18,993
37,328
Excess (deficiency) of revenues
over expenditures
$ (14,076)
6,810
20,886
(11,704)
Fund balance, at beginning of year
50,026
61,730
Fund balance, at end of year
$
56,836
50,026
77
KODIAK ISLAND BOROUGH I
1
L'
78
Nonmajor Special Revenue Funds
Fire and Road Service Areas - Service District No. 1
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
2006
,
Variance with
Final Budget
Final
Budget Actual
Positive
(Negative)
2005
Actual
Revenues:
Property taxes
$ 162,500 162,305
(195)
154,016
Investment income
2,000 13,077
11,077
4,835
Total revenues
164,500 175,382
10,882
158,851
Expenditures:
General government:
Personnel services
7,250 5,695
1,555
6,947
'
Support goods and services
2,100 641
1,459
463
Service district maintenance:
Snow removal /sanding
95,000 51,389
43,611
50,316
Road grading/ditching
50,000 72,569
(22,569)
73,507
Repairs and maintenance
50,000 58,598
(8,598)
68,324
Total expenditures
204,350 188,892
15,458
199,557
Excess (deficiency) of revenues
over expenditures
$ (39,850) (13,510)
26,340
(40,706)
Fund balance, at beginning of year
254,237
294,943
Fund balance, at end of year
$ 240,727
254,237
1
L'
78
L
79
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas - Womens Bay Road Service Area
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30,
2005)
2006
Variance with
Final Budget
Final
Positive
2005
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes
$ 93,000
96,059
3,059
93,550
Licenses, permits, fees, and
other local revenues
Investment income
20,000
900
20,000
9,318
-
8,418
20,000
5,051
Total revenues
1 13,900
125,377
11,477
118,601
Expenditures:
General government:
Personnel services
850
551
299
862
Support goods and services
21,700
1,332
20,368
686
Service district maintenance:
Snow removal /sanding
30,000
31,913
(1,913)
17,623
Road grading/ditching
30,000
86,926
(56,926)
23,422
Repairs and maintenance
31,350
7,085
24,265
72,896
Total expenditures
113,900
127,807
(13,907)
115,489
Excess (deficiency)
of revenues over
expenditures
$ -
(2,430)
(2,430)
3,112
Fund balance, at beginning of year
171,706
168,594
Fund balance, at end of year
$
169,276
171,706
79
1
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas — Bay View Road Service Area
Schedule of Revenues, Expenditures, and Changes in Fund Deficit
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
80
In
1.
1
'J
1
u
I
2006
Variance with
Final Budget
Final
Positive
2005
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes $
4,600
5,611
1,011
5,586
Investment income
200
45
(155)
40
Total revenues
4,800
5,656
856
5,626
Expenditures:
General government:
Personnel services
—
49
(49)
44
Support goods and services
—
8
(8)
9
Service district maintenance:
Snow removal /sanding
2,500
2,620
(120)
2,102
Road grading /ditching
1,000
978
22
1,852
Repairs and maintenance
1,300
763
537
1,418
Total expenditures
4,800
4,418
382
5,425
Excess of revenues over expenditures $
—
1,238
1,238
201
Fund deficit, at beginning of year
(1,905)
(2,106)
Fund deficit, at end of year
$
(667)
(1,905)
80
In
1.
1
'J
1
u
I
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fire and Road Service Areas — Service Area No. 2
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
2006
Revenues:
Investment income
Expenditures
Excess of revenues over
expenditures
Fund balance, at beginning of year
Fund balance, at end of year
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
$ — 164 164
$ — 164
4,167
$ 4,331
164
2005
95
95
4,072
4,167
81
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Coastal Management
Schedule of Revenues, Expenditures, and Changes in Fund Balance (Deficit)
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
Revenues:
Intergovernmental:
Federal sources — grants
Other
Total revenues
Expenditures:
Community and economic development:
Planning and zoning
Excess (deficiency) of revenues over
expenditures
Fund deficit, at beginning of year
Fund balance, at end of year
2006
Variance with
Final Budget
Final Positive 2005
Budget Actual (Negative) Actual
$ 39,608 24,367 (15,241)
— 31,829 31,829
39,608 56,196 16,588
39,608 3,119
$ — 53,077
(18,999)
$ 34,078
1,805
1,805
36,489 20,804
53,077 (18,999)
k 1 o,»>
82
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Child Care Assistance Program
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
2006
Revenues:
Intergovernmental:
Federal sources — grants
Expenditures:
Health and sanitation department:
Personnel
Support goods and services
Total expenditures
Deficiency of revenues over
expenditures
Fund balance, at beginning of year
Fund balance, at end of year
Final
Budget Actual
Variance with
Final Budget
Positive 2005
(Negative) Actual
$ 83,090
74,150
(8,940)
75,425
70,780
66,750
4,030
66,130
12,310
10,476
1,834
9,295
83,090
77,226
5,864
75,425
$ —
(3,076)
(3,076)
—
8,338
8,338
$
5,262
8,338
83
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
L.E.P.C.
Schedule of Revenues, Expenditures, and Changes in Fund Deficit
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
2006
Revenues
Expenditures:
General government:
Personnel services
Profesional services
Total expenditures
Deficiency of revenues
over expenditures
Fund deficit, at beginning of year
Fund deficit, at end of year
Final
Budget Actual
Variance with
Final Budget
Positive 2005
(Negative) Actual
18,001
— 3,887
(3,887)
12,563
— 5,327
(5,327)
5,530
— 9,214
(9,214)
18,093
$ — (9,214)
(9,214)
(92)
(5,781)
(5,689)
$ (14,995)
(5,781)
84
85
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Land Sales
'
Schedule
of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
1
Year ended June 30, 2006
(With summarized financial information for the year
ended June 30, 2005)
2006
Variance with
Final Budget
Final
Positive
2005
Budget
Actual
(Negative)
Actual
'
Revenues:
Land sale proceeds
$ 5,000
177,164.
172,164
22,738
Licenses, permits, fees, and other
1
local revenues
Gravel sales
1,000
25,000
1,000
84,092
-
59,092
1,000
Investment income
21,000
24,202
3,202
13,695
Other
-
7,305
7,305
79
'
Total revenues
52,000
293,763
241,763
37,512
Expenditures:
General government:
'
Personnel services
Contracted services
11,494
4,550
11,500
373
(6)
4,177
11,500
5,496
Support goods and services
35,956
18,460
17,496
16,714
Total expenditures
52,000
30,333
21,667
33,710
Excess of revenues
over expenditures
-
263,430
263,430
3,802
Fund balance, at beginning of year
718,083
714,281
Fund balance, at end of year
$
981,513
718,083
85
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Buildings and Grounds
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
Revenues:
Rental income
Investment income
Other
Total revenues
Expenditures:
General government:
School buildings
Borough building
Mental health center
Parks operation and maintenance
Total expenditures
Deficiency of revenues under expenditures
Other financing sources:
Transfers in:
Facilities Fund
Net change in fund balance
Fund balance, at beginning of year
Fund balance, at end of year
86
2006
Variance with
Final Budget
Final
Positive
2005
Budget
Actual
(Negative)
Actual
$ 405,000
418,445
13,445
417,545
3,000
10,483
7,483
5,874
-
156
156
-
408,000
429,084
21,084
423,419
303,000
223,323
79,677
366,007
282,530
310,888
(28,358)
258,301
39,970
31,382
8,588
5,469
22,500
6,772
15,728
11,284
648,000
572,365
75,635
641,061
(240,000)
(143,281)
96,719
(217,642)
212,000
140,560
(71,440)
208,880
$ (28,000)
(2,721)
25,279
(8,762)
326,394
335,156
$
323,673
326,394
86
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Woodland Acres Street Light Service Area
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
87
2006
Variance with
Final Budget
Final
Positive
2005
Budget
Actual
(Negative)
Actual
Revenues:
Investment income
$ 500
620
120
480
Expenditures:
General government:
Support goods and services
4,030
5,660
(1,630)
5,475
Capital outlay
970
—
970
—
Total expenditures
5,000
5,660
(660)
5,475
Deficiency of revenues over
expenditures
$ (4,500)
(5,040)
(540)
(4,995)
Fund balance, at beginning of year
18,711
23,706
Fund balance, at end of year
$
13,671
18,711
87
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Trinity Acres Street Light Service Area
Schedule of Revenues, Expenditures, and Changes in Fund Deficit
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
88
2006
Variance with
Final Budget
Final
Positive
2005
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes $
3,600
3,892
292
3,721
Expenditures:
General government:
Personnel services
655
—
655
—
Support goods and services
2,945
1,822
1,123
1,773
Capital outlay
—
—
—
—
Total expenditures
3,600
1,822
1,778
1,773
Excess of revenues over
expenditures $
—
2,070
2,070
1,948
Fund deficit, at beginning of year
(3,637)
(5,585)
Fund deficit, at end of year
$
(1,567)
(3,637)
88
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Kodiak Arts Council
Schedule of Revenues, Expenditures, and Changes in Fund Deficit
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
2006
Revenues:
Licenses, permits, fees, and other
local revenues:
Reimbursement from Kodiak
Arts Council
Expenditures:
General government:
Personnel services
Fringe benefits
Support goods and services
Total expenditures
Deficiency of revenues
over expenditures
Fund deficit, at beginning of year
Fund deficit, at end of year
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
2005
Actual
$ 56,910
60,423
3,513
56,704
44,410
45,659
(1,249)
45,874
12,500
15,471
(2,971)
12,294
—
423
(423)
490
56,910
61,553
(4,643)
58,658
$ —
(1,130)
(1,130)
(1,954)
(2,388)
(434)
$
(3,518)
(2,388)
89
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Tourism Development
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
90
2006
Variance with
Final Budget
Final
Positive
2005
Budget
Actual
(Negative)
Actual
Revenues:
Transient accommodations tax
$ 45,000
47,645
2,645
20,886
Investment income
—
150
150
25
Total revenues
45,000
47,795
2,795
20,911
Expenditures:
Community and economic development:
Contributions
45,000
45,000
—
45,000
Excess (deficiency) of revenues
over expenditures
$ —
2,795
2,795
(24,089)
Fund balance, at beginning of year
1,298
25,387
Fund balance, at end of year
$
4,093
1,298
90
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Mission Lake Tide Gate
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
2006
Variance with
Final Budget
Final
Positive
2005
Budget
Actual
(Negative)
Actual
Revenues:
Property taxes $
2,460
2,456
(4)
2,456
Expenditures:
General government:
Personnel services
1,000
365
635
3,941
Professional services
—
1,000
(1,000)
715
Support goods and services
200
12
188
1,354
Capital outlay
1,260
—
1,260
—
Total expenditures
2,460
1,377
1,083
6,010
Excess (deficiency) of revenues
over expenditures $
—
1,079
1,079
(3,554)
Fund balance, at beginning of year
4,101
7,655
Fund balance, at end of year
$
5,180
4,101
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Fern Fuller Trust
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
Revenues:
Fuller Trust proceeds
Expenditures:
General government:
Distributions to beneficiaries
Support goods and services
Total expenditures
Excess of revenues
over expenditures
Other financing uses:
Transfers out:
Hospial Facilities Enterprise Fund
Net change in fund balance
Fund balance, at beginning of year
Fund balance, at end of year
2006
Variance with
Final Budget
Final Positive 2005
Budget Actual (Negative) Actual
$ 75,000 75,000 — 75,000
8,500 8,500
— 22,500
— 127
(127) 47
8,500 8,627
(127) 22,547
66,500 66,373
(127) 52,453
(66,500) (66,500)
$ — (127)
198,995
$ 198,868
(127) 52,453
146,542
198,995
92
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
Nonmajor Special Revenue Funds
Trinity Acres Paving
Schedule of Revenues, Expenditures, and Changes in Fund Balance (Deficit)
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
7]
2006
Variance with
Final Budget
Final
Positive
2005
Budget
Actual
(Negative)
Actual
Revenues:
Special assessments
$ 22,140
42,171
20,031
—
Interest
—
43
43
—
Total revenues
22,140
42,214
20,074
—
Expenditures:
General government:
Support goods and services
14,230
38
14,192
225
Debt service:
Interest
7,910
—
7,910
—
Total expenditures
22,140
38
22,102
225
Excess of revenues over
expenditures
—
42,176
42,176
(225)
Other financing uses:
Transfers out:
Various Borough Capital Projects
—
—
(216,508)
Net other financing uses
—
—
—
(216,508)
Net change in fund balance
$ —
42,176
42,176
(216,733)
Fund deficit, at beginning of year
(216,733)
—
Fund deficit, at end of year
$
(174,557)
(216,733)
7]
1
rj�
DEBT SERVICE FUNDS
F
1
i
L'
Debt Service Funds are used to account for the payment of
principal, interest and related fees on all bonded debt except for
special assessment bonded debt accounted for in proprietary funds.
KODIAK ISLAND BOROUGH
Debt Service Funds
Other
Balance Sheets
June 30, 2006
(With financial information at June 30, 2005)
2006 2005
Equity in central treasury
Total liabilities
Fund balance:
Unreserved
Assets
Liabilities and Fund Balances
$ 158,409 158,409
$ 158,409 158,409
.,
KODIAK ISLAND BOROUGH
Debt Service Funds
Other
Schedule of Revenues, Expenditures,
and Changes in Fund Balance
Budget and Actual
Year ended June 30, 2006
(With financial information at June 30, 2005)
2006
Variance with
Final Budget
Final Positive 2005
Budget Actual (Negative) Actual
Revenues
Expenditures —
Excess of revenues over expenditures $ —
Fund balances, at beginning of year
Fund balances, at end of year
158,409
$ 158,409
158,409
158,409
95
NONMAJOR CAPITAL PROJECTS FUNDS
The Various Borough Projects Fund accounts for general
government construction projects not accounted for in other funds.
The State Capital Grants Fund accounts for capital improvement
projects relating to grants received from the State of Alaska.
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Funds
Combining Balance Sheet
June 30, 2006
(With summarized financial information at June 30, 2005)
Assets
Equity in central treasury
Temporary investments
Receivables:
Due from State of Alaska
Due From Federal Government
Due from other funds
Total
Liabilities and Fund Balances
Liabilities:
Accounts payable
Retainages payable
Due to other funds
Total liabilities
Fund balances:
Unreserved (deficits):
Undesignated
Total
Various
Borough
State Capital
Totals
Projects
Grants
2006
2005
$ 3,142
150,639
153,781
-
978,549
-
978,549
-
-
319,016
319,016
248,832
-
6,355
6,355
6,355
50,000
50,000
-
$ 981,691
526,010
1,507,701
255,187
704
6,210
6,914
35,760
-
22,270
22,270
22,270
50,000
492,000
542,000
301,650
50,704
520,480
571,184
359,680
930,987
5,530
936,517
(104,493)
$ 981,691
526,010
1,507,701
255,187
96
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Funds
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
Revenues:
Intergovernmental:
State sources
Federal sources
Licenses, permits, fees and
other local revenue
Investment income
Other
Total revenues
Expenditures:
Capital improvements:
Schools
General
Total expenditures
Deficiency of revenues over
expenditures
Other financing sources:
Transfers in
Net change in fund balances
Various
State
24,950
12,717
Borough
Capital
Totals
2,972,174
Projects
Grants
2006
2005
(24,928)
$ -
34,916
34,916
331,093
-
263,936
263,936
2,586,067
275
-
275
540
18,566
-
18,566
6,057
10,750
-
10,750
-
29,591
298,852
328,443
2,923,757
-
24,950
24,950
12,717
54,519
277,879
332,398
2,972,174
54,519
302,829
357,348
2,984,891
(24,928)
(3,977)
(28,905)
(61,134)
-
114,000
114,000
216,508
(24,928)
110,023
85,095
155,374
Fund balances (deficit), at beginning of year 955,915 (104,493) 851,422 696,048
Fund balances, at end of year $ 930,987 5,530 936,517 851,422
97
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Funds
Various Borough Projects
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Year ended June 30, 2006
(With financial information for the year ended June 30, 2005)
Revenues:
Intergovernmental:
Federal sources
Licenses, permits, fees and
other local revenue
Investment income
Other
2006
275
18,566
10,750
29,591
2005
2,399,055
540
6,057
2,405,652
Total revenues
Expenditures:
Capital improvements:
General
Deficiency of revenues over
expenditures
Other financing sources:
Transfers in
Net change in fund balance
Fund balance, at beginning of year
Fund balance, at end of year
54,519 2,460,376
(24,928) (54,724)
216,508
(24,928)
161,784
955,915
794,131
$ 930,987
955,915
98
KODIAK ISLAND BOROUGH
Nonmajor Capital Project Funds
State Capital Grants
Schedule of Revenues, Expenditures, and Changes in Fund Balance (Deficit)
Year ended June 30, 2006
(With financial information for the year ended June 30, 2005)
Revenues:
Intergovernmental:
State sources
Federal sources
Total revenues
Expenditures:
Capital improvements:
Schools
General
Total expenditures
Deficiency of revenues over
expenditures
Other financing sources:
Transfers in
Net change in fund balance
Fund balance (deficit), at beginning of year
Fund balance (deficit), at end of year
2006 2005
$ 34,916
263,936
298,852
24,950
277,879
302,829
331,093
187,012
518,105
12,717
511,798
524,515
(3,977)
114,000
110,023
(6,410)
(6,410)
(104,493) (98,083)
$ 5,530 (104,493)
..
= M= M M= M M a M= r r r M s r M M
KODIAK ISLAND BOROUGH
Capital Projects Funds
Supplemental Schedule of Capital Projects
Year ended June 30, 2006
Project
Expenditures
Total
Appropriations
no.
Unencumbered
Project
Status
Prior 2006
expenditures
Capital projects - Education:
encumbrances
balance
130
410 -655
East Elementary Doorway
Open $
4,200 -
00100
430 -696
School Repair KHS Roof
Open
126,770 -
01 105
410 -695
Series F Bond HS Roof Repair
Open
968,106 -
03103
410 -490
East and Main Paint
Open
50,000 -
03105
410 -492
Northstar Road/park design
Open
50,000 -
03106
410 -493
KHS Emergency Generator
Open
50,000 -
03116
430 -509
School Upgrade
Open
125,804 -
03118
430 -512
Chiniak Multi -Use
Open
20,000 -
03119
420 -500
HS Swimming Pool
Open
6,210,000 -
04101
420 -515
Old Harbor Gym Renovation
Open
2,251,315 -
04102
420 -516
Larsen Bay School Repair
Open
339,883 -
04103
420 -517
Ouzinkie Gum Renovation
Open
1,858,255 -
05006
430 -545
HS Pool Filter
Open
60,000 -
05009
420 -515
Repair Spalling Concrete
Open
237,918 -
05010
420 -515
KHS Asbestos Floor Removal
Open
304,704 -
05011
420 -515
Floor Covering Replacement
Open
728,708 -
05012
420 -515
Kodiak High School HVAC
Open
250,000 -
05013
420 -515
KHS Exterior Insulation & Windows
Open
596,020 -
05014
420 -515
Kodiak HS/MS Cplx Roof Upgrade
Open
523,504 -
05015
420 -515
H Voc ed/classroom Reclaimation
Open
4,190,000 -
05016
420 -515
East Elementary HV AC Upgrade
Open
520,000 -
05017
420 -515
Learning Center Renovation
Open
1,182,336 -
05018
420 -515
HS Pool Reclaimation
Open
650,1100
-
134
Total education
249,866
21,297,523
249,866
Capital projects - Utilities:
-
2,680
00102
410 -698
Bayside Underground Electric
Open
22,000
-
2,718
Total utility projects
520,786
22,000
520,786
Capital projects - Health.
8,882
031 t5
4,181,118
Hospital Assessment Needs
Open
54,000
-
425
Total health projects
519,575
54,000
Encumbrances
Total
Expenditures
Total
Unexpended
Current
Unencumbered
appropriations
Prior
2006
expenditures
balance
encumbrances
balance
4,200
-
-
-
4,200
-
4,200
12t"770
91,466
24,950
116,416
10,354
-
10,354
968,106
771,737
-
771,737
196,369
-
196,369
50,000
37,859
-
37,859
12,141
-
12,141
50,000
22,795
5,012
27,807
22,193
-
22,193
50,000
-
-
-
50,000
-
50,000
125,804
139,561
-
139,561
(13,757)
-
(13,757)
20,000
8,686
1,260
9,946
10,054
-
10,054
6,210,000
65,720
171,154
236,874
5,973,126
-
5,973,126
2,251,315
430
1,124
1,554
2,249,761
-
2,249,761
339,883
358
481
$39
339,044
-
339,044
1,858,255
647
1,871
2,518
1,855,737
-
1,855,737
60,000
49,698
-
49,698
10,302
21,044
(10,742)
237,918
-
376
376
237,542
-
237,542
304,704
-
-
-
304,704
-
304,704
728,708
-
6,295
6,295
722,413
-
722,413
250,000
-
134
134
249,866
-
249,866
596,020
-
2,680
2,680
593,340
-
593,340
523,504
-
2,718
2,718
520,786
-
520,786
4,190,000
8,882
8,882
4,181,118
-
4,181,118
520,000
-
425
425
519,575
-
519,575
1,182,336
-
2,836
2,836
1,179,500
-
1,179,500
650,000
650,000
650,000
21,297,523
1,188,957
230,198
1,419,155
19,878,368
21,044
19,857,324
22,000
22,000
22,000
22,000
22,000
22,000
54,000
54,000
54,000
54,000
54,000
54,000
(continued)
100
KODIAK ISLAND BOROUGH
Capital Projects Funds
Supplemental Schedule of Capital Projects
Year ended June 30, 2006
101
= M M r M= M r M M M M M M M M r M M
Encumbrances
Project
Appropriations
Total
Expenditures
Total
Unexpended
Current
Unencumbered
no.
Project
Status
Prior
2006
appropriations
Prior
2006
expenditures
balance
encumbrances
balance
Capital projects - Other:
N/A
410 -400
Undesignated Projects
Open $
692,078
-
692,078
18,539
-
18,539
673,539
-
673,539
85
410 -471
Village Metals Removal
Open
150,000
-
150,000
121,256
-
121,256
28,744
-
- 28,744
114
410 -642
State Airport Improvements
Open
11,000
-
11,000
60
-
60
10,940
-
10,940
146
410 -663
BMX Bike Trail
Open
68,920
-
68,920
49,278
-
49,278
19,642
-
19,642
164
430 -645
Waste Management Imp
Open
1,741,400
-
1,741,400
936,714
-
936,714
804,686
-
804,686
173
410 -683
Bayside Classroom Add
Open
75,000
-
75,000
48,199
-
48,199
26,801
-
26,801
174
410 -684
Bayside Storage/Bay Add
Open
400,000
-
400,000
3,020
-
3,020
396,980
-
396,980
177
430 -687
Anton Larsen Boat Ramp
Open
560,000
60,000
620,000
595,407
1,579
596,986
23,014
-
23,014
0308
430 -518
Homeland Security
Open
-
-
-
-
-
-
-
02107
430 -648
ADF &G Research Study
Open
200,000
-
200,000
114,295
8,706
123,001
76,999
-
76,999
03108
410 -495
Borough Building Parking
Open
50,000
-
50,000
-
50,000
-
50,000
03109
410 -496
Borough Air Handling
Open
10,000
-
10,000
-
-
-
10,000
-
10,000
03110
410 -497
KIB emergency Generator
Open
20,000
-
20,000
2,353
-
2,353
17,647
-
17,647
03111
110 -498
KIB Security Doors
Open
8,000
-
8,000
-
-
-
8,000
-
8,000
03114
430 -507
CIAP Grant
Open
189,985
130,000
319,985
75,308
114,678
189,986
129,999
-
129,999
04106
430 -518
SHSGP Grant
Open
138,151
-
138,151
52,851
69,933
122,784
15,367
-
15,367
05001
410 -546
Survey Fiber Optic Pass Thru
Open
2,473,694
-
2,473,694
2,403,507
-
2,403,507
70,187
-
70,187
05002
420 -519
Earthquake Evaluation Project
Open
500,000
-
500,000
48,083
233,038
281,121
218,879
-
218,879
05003
430 -542
Kodiak Cadastral
Open
40,000
-
40,000
53,752
20,335
74,087
(34,087)
-
(34,087)
05005
430 -544
AK Coastal Management
Open
46,000
-
46,000
47,733
-
47,733
(1,733)
- -
(1,733)
03120
410 -624
Women's Bay Community Plan
Open
33,380
-
33,380
22,380
12
22,392
10,988
-
10,989
05004
430 -543
Womens Bay Drainage
Open
-
25,000
25,000
19,630
5,370
25,000
Total - capital projects other
7,407,608
215,000
7,622,608
4,612,365
453,651
5,066,016
2,556,592
2,556,592
Total all capital projects
$
28,781,131
215,000
28,996,131
5,801,322
683,849
6,485,171
22,510,960
21,044
22,489,916
NOTE.
This schedule inclues expenditures from major capital project
funds,
nonmajor capital
project funds and matching costs recorded
in the
General Fund.
101
= M M r M= M r M M M M M M M M r M M
ENTERPRISE FUNDS
The Municipal Solid Waste Collection and Disposal Fund accounts for the
collection and disposal of solid waste and recycling services for the Kodiak Island
Borough.
The Hospital Facilities Fund accounts for rents on the Borough -owned hospital;
hospital related state revenue sharing; and other hospital related revenue. In turn, it
purchases hospital equipment and makes debt service payments on hospital related
debt.
The Kodiak Fisheries Research Center Fund accounts for rents and expenses on
the Borough -owned Kodiak Fisheries Research Center. The three tenants: NOAA,
Alaska Department of Fish & Game and University of Alaska, Fairbanks pay lease
funds to participate in this multi- agency research facility committed to the
preservation of the North Pacific marine ecosystem and resources.
The 911 Service Fund accounts for funds collected from phone charges and pays for
a 911 emergency system.
L
1
I
KODIAK ISLAND BOROUGH
Enterprise Funds
Municipal Solid Waste Collection and Disposal
Schedule of Revenues, Expenses, and
Changes in Fund Equity
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
Operating income (loss)
Other income (expense):
Interest income
Interest expense
Income (loss) before transfers
Operating revenues:
Solid waste collection
Solid waste disposal
Variance with
Other
Operating expenses:
Final Budget
Personnel services
Final
Refuse collection
Positive
Refuse disposal
Budget
Professional services
1
Maintenance and repairs
Landfill closure and postclosure costs
2,720,454
Depreciation
2,184,612
General and administration
944,835
Recycling services
956,087
Contributions
Operating income (loss)
Other income (expense):
Interest income
Interest expense
Income (loss) before transfers
Other financing sources:
Transfers in - 6,450 6,450
Net change in fund equity $ (11,000) 704,302 715,302 (184,861)
Fund equity, beginning of year 3,160,795 3,345,656
Fund equity, end of year $ 3,865,097 3,160,795
102
2006
Variance with
Final Budget
Final
Positive
2005
Budget
Actual
(Negative)
Actual
$ 2,378,060
2,720,454
342,394
2,184,612
1,111,000
944,835
(166,165)
956,087
-
409,595
409,595
1,157
3,489,060
4,074,884
585,824
3,141,856
603,360
711,039
(107,679)
596,385
1,400,000
1,352,618
47,382
1,418,830
306,000
306,150
(150)
355,995
190,000
261,073
(71,073)
207,282
36,000
44,700
(8,700)
35,505
250,000
245,006
4,994
255,498
305,120
245,510
59,610
208,330
226,580
185,099
41,481
153,555
96,000
90,000
6,000
73,001
10,000
5,258
4,742
9,853
3,423,060
3,446,453
(23,393)
3,314,234
66,000
628,431
562,431
(172,378)
13,000
69,421
56,421
35,631
(90,0
-
90,000
(48,114)
(11,000
697,852
708,852
184,861)
Other financing sources:
Transfers in - 6,450 6,450
Net change in fund equity $ (11,000) 704,302 715,302 (184,861)
Fund equity, beginning of year 3,160,795 3,345,656
Fund equity, end of year $ 3,865,097 3,160,795
102
KODIAK ISLAND BOROUGH
Enterprise Funds
Hospital Facilities
Schedule of Revenues, Expenses, and
Changes in Fund Equity
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
2006
Operating revenues:
Lease income
Operating expenses:
Personnel services
Maintenance and repairs
Depreciation
General and administration
Operating (loss)
Other income (expense):
Loss on disposal of capital assets
Contribution to Providence Hospital
Interest income
Interest expense
Loss before transfers
Other financing sources (uses):
Transfers in
Transfers out
Net other financing (uses)
Net change in fund equity
Fund equity, beginning of year
Fund equity, end of year
Variance with
Final Budget
Final Positive 2005
Budget Actual (Negative) Actual
$ 720,000 1,153,333 433,333 1,153,333
— 5
(5,000)
6,969
— 2,667
(2,667)
19,360
1,276,560 1,077,047
199,513
1,23 8,064
— 10,810
(10,810)
10,810
1,276,560 1,095,524
181,036
1,275,203
(556,560) 57,809
614,369
(121,870)
(17,700)
(150,000)
(59,060) (59,059)
(615,620) (168,950)
(17,700) —
(150,000) —
84
1 (69,784)
446,670 (191,570)
66,500
(320,230) (320,230)
(320,230) (253,730)
$ (935,850) (422,680)
18,291,176
$ 17,868,496
66,500 125,000
— (295,602)
66,500 (170,602)
513,170 (362,172)
18,653,348
18,291,176
103
1
1
1
t
1
1
1
it
Ll
1
I�
t✓
KODIAK ISLAND BOROUGH
Enterprise Funds
Kodiak Fisheries Research Center
Schedule of Revenues, Expenses, and
Changes in Fund Equity
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
Operating revenues:
Rents and royalties
Operating expenses:
Personnel services
Depreciation
General and administration:
Cleaning and janitorial
Heating
Electrical
Plumbing
Air conditioning
Elevators
Miscellaneous
Operating income (loss)
Other income (expense):
Investment income
Interest expense
Net change in fund equity
Fund equity, beginning of year
Fund equity, end of year
1 104
2006
Variance with
Final Budget
Final
Positive
2005
Budget
Actual
(Negative)
Actual
$ 1,366,800
1,572,474
205,674
1,566,686
166,270
235,147
(68,877)
226,317
744,294
745,037
(743)
793,562
47,000
35,338
11,662
37,487
102,000
138,951
(36,951)
114,966
185,500
176,484
9,016
156,285
77,240
12,936
64,304
13,643
2,000
173
1,827
-
2,000
2,042
(42)
2,387
108,830
63,992
44,838
67,328
1,435,134
1,410,100
25,034
1,411,975
(68,334)
162,374
230,708
154,711
60,000
92,471
32,471
35,097
(446,780)
(446,775)
5
(466,813)
$ (455,114)
(191,930)
263,184
(277,005)
11,13 0,220
11,407,225
$
10,938,290
11,130,220
1 104
KODIAK ISLAND BOROUGH
Enterprise Funds
911 Services Fund
Schedule of Revenues, Expenses, and
Changes in Fund Equity
Budget and Actual
Year ended June 30, 2006
(With summarized financial information for the year ended June 30, 2005)
105
2006
Variance with
Final Budget
Final
Positive
2005
Budget
Actual
(Negative)
Actual
Operating revenues:
Customer charges $
69,000
65,614
(3,386)
26,721
Operating expenses:
Personnel services
10,500
3,000
7,500
3,000
Miscellaneous
—
194
(194)
—
Telephone services
58,500
54,000
4,500
66,178
69,000
57,194
11,806
69,178
Operating income (loss) $
—
8,420
8,420
(42,457)
Fund equity, beginning of year
32,644
75,101
Fund equity, end of year
$
41,064
32,644
105
KODIAK ISLAND BOROUGH
SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS TO MATURITY
June 30, 2006
Annual principal and interest requirements on General Obligation Refunding and Construction Bonds
Year Principal Interest Total
2007
1,770,000
955,281
2,725,281
2008
2,185,000
1,261,058
3,446,058
2009
2,280, 000
1,167,551
3,447, 551
2010
2,370,000
1,069,969
3,439,969
2011
2,470,000
966,900
3,436,900
2012
2,220,000
858,045
3,078,045
2013
2,310,000
765,996
3,075,996
2014
2,405,000
669,361
3,074,361
2015
965,000
567,921
1,532,921
2016
1,000, 000
528,621
1,528,621
2017
1,040,000
487,586
1,527,586
2018
1,080,000
444,345
1,524,345
2019
1,130,000
397,224
1,527,224
2020
1,180,000
346,024
1,526,024
2021
1,230,000
292,064
1,522,064
2022
1,285,000
235,476
1,520,476
2023
1,345,000
174,073
1,519,073
2024
1,410,000
107,126
1,517,126
2025
1,480,000
36,335
1,516,335
$ 31,155,000
$ 11,330,956
$ 42,485,956
106
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION REFUNDING BONDS, 1998 SERIES A
RETIREMENT SCHEDULE
J une 30, 2006
1998 Bond Issue
This issue, dated December 7, 1998, was issued under a book entry system registered in the
name of Cede & Company, as Nominee of The Depository Trust Company, New York, New
York, the securities depository for the 1998 Bonds. The financial advisor for this issue was
Kaplan Financial Consulting, Inc. Legal opinion was rendered by bond council, Birch,
Horton, Bittner, and Cherot. The paying agent for this issue is Alaska USA Trust Company.
These bonds were issued to refund all but $1,030,000 of the 1994 bond issue, resulting in a
total interest savings of $504,859.
IEIIN
Interest
Principal
Intereest
Fiscal
Interest
due
due
due
year
rate
August 15
February 15
February 15
Total
2007
4.00%
198,248
60,000
198,248
456,496
2008
4.30%
197,048
1,150,000
197,047
1,544,095
2009
4.30%
172,323
1,200,000
172,322
1,544,645
2010
4.30%
146,523
1,250,000
146,522
1,543,045
2011
4.30%
119,648
1,305,000
119,647
1,544,295
2012
4.30%
91,590
1,360,000
91,590
1,543,180
2013
4.30%
62,350
1,420,000
62,350
1,544,700
2014
4.30%
31,820
1,480,000
31,820
1,543,640
$ 1,019,550
$ 9,225,000
$ 1,019,546
$ 11,264,096
IEIIN
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2000 SERIES E
RETIREMENT SCHEDULE
June 30, 2006
2000E BOND ISSUE
This issue, dated December 12, 2000, was issued under a book entry system registered in the
name of Cede & Company, as Nominee of the Depository Trust Company, New York, New
York, the securities depository for the 2000 Series E Bond.
This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by
bond council, Wohlforth, Vassar, Johnson & Brecht of Anchorage, Alaska.
This bond was issued to repair the high school roof.
Principal
Interest
Interest
Fiscal
Interest
due
year
rate
August 01
2007
4.88%
20,656
2008
5.00%
17,000
2009
5.00%
13,000
2010
5.00%
8,875
2011
5.00%
4,500
$ 830,000
$ 64,031
$ 64,031
Principal
Interest
due
due
February 01
February 01
Total
150,000
20,656
191,313
160,000
17,000
194,000
165,000
13,000
191,000
175,000
8,875
192,750
180,000
4,500
189,000
$ 830,000
$ 64,031
$ 958,063
108
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2000 SERIES F
RETIREMENT SCHEDULE
June 30, 2006
2000F BOND ISSUE
This issue, dated December 12, 2000, was issued under a book entry system registered in the
name of Cede & Company, as Nominee of the Depository Trust Company, New York, New
York, the securities depository for the 2000 Series F Bond.
This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by
bond council, Wohlforth, Vassar, Johnson & Brecht of Anchorage, Alaska.
This bond was issued to upgrade Peterson Elementary.
111M,
Interest
Principal
Interest
Fiscal
Interest
due
due
due
year
rate
August 01
February 01
February 01
Total
2007
7.00%
24,730
120,000
24,730
169,460
2008
7.00%
20,530
130,000
20,530
171,060
2009
7.05%
15,980
140,000
15,980
171,960
2010
7.10%
11,045
150,000
11,045
172,090
2011
7.15%
5,720
160,000
5,720
171,440
$ 78,005
$ 700,000
$ 78,005
$ 856,010
111M,
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2003 SERIES B
RETIREMENT SCHEDULE
June 30, 2006
2003 REFUNDING BOND ISSUE
This issue, dated March 26, 2003, was issued under a book entry system registered in the name
of Cede & Company, as Nominee of the Depository Trust Company, New York, New York,
the securities depository for the 2003 Series B Bond. This issue
was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond
council, Wohlforth, Vassar, Johnson & Brecht of Anchorage, Alaska. This bond was issued to
refund a portion of the 1993 and all of the 1994 Series A General Obligation Bonds.
Interest
Fiscal Interest due
year rate August 15
2007 5.40% 13,519
$ 13,519
Principal
due
February 15
1,030,000
$ 1,030,000
Interest
due
February 15 Total
13,519 1,057,038
$ 13,519 $ 1,057,038
I
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2004 SERIES C
RETIREMENT SCHEDULE
June 30, 2006
2004C BOND ISSUE
This issue, dated July 7, 2004 was issued under a book entry system registered in the name of Cede & Company, as
Nominee of the Depository Trust Company, New York, New York, the securities depository for the 2004 Series C
Bond. This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by bond council,
Wohlforth, Vassar, Johnson & Brecht of Anchorage, Alaska. This bond was issued to fund planning, design, and
construction of capital improvements to the Larsen Bay School, Kodiak Middle School and Kodiak High School.
The proceeds will also be used to develop an earthquake evaluation plan.
Fiscal year
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Interest rate
4.250%
4.250%
4.250%
4.250%
4.250%
4.000%
4.000%
4.000%
4.100%
4.250%
4.300%
4.400%
4.500%
4.500%
4.625%
4.750%
4.800%
4.800%
Interest due
July 1
185,142
178,236
171,011
163,573
155,817
147,636
139,136
130,836
122,136
113,136
103,501
93,194
82,229
70,569
58,082
45,032
31,041
15,960
Principal due
July 1
325,000
340,000
350,000
365,000
385,000
400,000
415,000
435,000
450,000
470,000
485,000
510,000
530,000
555,000
580,000
605,000
635,000
665,000
$ 2,006,265 $ 8,500,000
Interst due
January 1
178,236
171,011
163,573
155,817
147,636
139,136
130,836
122,136
113,136
103,501
93,194
82,229
70,569
58,082
45,032
31,041
15,960
$ 1,821,124
Total
688,378
689,246
684,584
684,390
688,453
686,771
684,971
687,971
685,271
686,636
681,695
685,424
682,799
683,651
683,114
681,073
682,001
680,960
1
J
1
r
1
1
F
$ 12,327,389
1
'
'
KODIAK ISLAND BOROUGH
GENERAL OBLIGATION BOND, 2004 SERIES D
RETIREMENT SCHEDULE
June 30, 2006
2004D BOND ISSUE
'
This issue, dated December 1,
2004, was issued under a book entry system registered in the name
of Cede &
Company, as Nominee
of the Depository Trust Company, New York, New York,
the securities depository for the
2004 Series D Bond.
This issue was marketed by the Alaska Municipal Bond Bank. Legal opinion was rendered by
'
bond council, Wohlforth, Vassar,
Johnson & Brecht of Anchorage, Alaska. This
bond was issued
to fund the
acquisition and construction of school capital improvements in the Borough,
including a new school pool and the
Kodiak High School Voc Ed /Classroom reclamation.
Interest due Principal due
Interst due May
Fiscal year Interest rate
November 1 November 1
1
Total
2007
3.00%
223,563 410,000
217,412
850,975
2008
3.00%
217,413 420,000
211,113
848,525
2009
3.00%
211,113 435,000
204,588
850,700
2010
3.00%
204,588 445,000
197,913
847,500
2011
3.50%
197,913 460,000
189,863
847,775
2012
3.50%
189,863 475,000
181,550
846,413
2013
3.50%
181,550 490,000
172,975
844,525
'
2014
4.00%
172,975 510,000
162,775
845,750
2015
4.00%
162,775 530,000
152,175
844,950
2016
4.00%
152,175 550,000
141,175
843,350
'
2017
4.00%
141,175 570,000
129,775
840,950
2018
4.00%
129,775 595,000
117,875
842,650
'
2019
4.50%
117,875 620,000
103,925
841,800
2020
4.50%
103,925 650,000
89,300
843,225
2021
4.50%
89,300 675,000
74,113
838,413
'
2022
4.50%
74,113 705,000
58,250
837,363
2023
5.00%
58,250 740,000
39,750
838,000
2024
5.00%
39,750 775,000
20,375
835,125
2025
5.00%
20,375 815,000
-
835,375
$ 2,688,463 $ 10,870,000
$ 2,464,900
$ 16,023,362
1
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11
STATISTICAL SECTION
Statistical Tables provide report users with a better historical
perspective in assessing current financial status and trends of
the Borough.
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Net Assets by Component
Last Two Fiscal Years
(accrual basis of accounting)
Fiscal Year
Governmental Activities
Invested in capital assets, net of related debt
Unrestricted
Total govermnmental activities net assets
Business -type activities
Invested in capital assets, net of related debt
Unrestricted
Total business -type activities net assets
Primary government
Invested in capital assets, net of related debt
Unrestricted
Total primary government net assets
2005
$ 61,154,204
45,052,197
$ 106,206,401
$ 39,878,785
(7,263,950)
$ 32,614,835
$ 101,032,989
37,788,247
$ 138,821,236
Source: Borough general ledger
2006
$ 62,716,326
45,653,357
$ 108,369,683
$ 38,588,510
(5,875,563)
$ 32,712,947
$ 101,304,836
39,777,794
$ 141,082,630
113
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Changes in Net Assets
Last Two Fiscal Years
(accrual basis of accounting)
Expenses
Governmental activities:
General government
Emergency preparedness
Community and economic development
Health and sanitation
Education, culture, and recreation
Fire services
Maintenance and operations
Service district maintenance
Fern Fuller trust
Education, culture, and recreation
Interest on long -term debt
Total governmental activities expenses
Business -type activities:
Municipal solid waste collection and disposal
Hospital facilities
Kodiak fisheries research center
911 services
Total business -type activities expenses
Total component unit school district expenses
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services:
General government
Community and economic development
Education, culture, and recreation
Fire services
Maintenance and operations
Service district maintenance
Primary and secondary education
Operating grants and contributions
Capital grants
Total governmental activities program revenues
Fiscal Year
2005 2006
$ 3,466,289
25,850
509,680
365,072
185,993
491,172
3,175,997
347,934
22,547
10,207,757
1,101,598
19,899,889
3,362,348
1,344,987
1,878,788
69,178
6,655,301
33,466,016
3,984,390
8,598
784,002
403,866
164,053
336,385
10,831,588
18,212,971
3,446,453
1,304,583
1,856,875
57,194
6,665,105
35,990,593
$ 26,555,190 $ 24,878,076
$ 161,621
$ 311,802
21,886
—
56,704
108,218
14,244
—
191,665
—
20,000
20,000
—
95,025
721,453
1,240,547
2,917,160
298,852
4,104,733
2,074,444
(continued)
114
1
1
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KODIAK ISLAND BOROUGH
Kodiak, Alaska
Changes in Net Assets
Last Two Fiscal Years
(accrual basis of accounting)
Fiscal Year
2005
Business -type activities:
Charges for services:
Municipal solid waste collection and disposal
Hospital facilities
911 services
Kodiak fisheries research center
Total business -type activities program revenues
Component unit activities
Charges for services:
Operating grants and contributions
Total component unit program revenues
Total primary government program revenues
Net(expense) /revenue
Governmental activities
Business -type activities
Component unit activities
Total primary government net expense
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes
Property taxes
Severance taxes
Unrestricted grants and contributions
Investment earnings
Miscellaneous
Transfers
Total governmental activities
Business -type activities:
Investment earnings
Miscellaneous
Transfers
Total business -type activities
Component unit school district:
Unrestricted grants and contributions
Investment earnings
Support from primary government
Miscellaneous
Total component unit activities
Total primary government
3,141,856
1,153,333
26,721
1,566,686
1� QQU {oA
2006
3,665,289
1,153,333
65,614
1,572,474
6,456,710
226,645 223,579
5,004,756 4,803,773
5,231,401 5,027,352
$ 9,993,329 $ 8,531,154
$ (15,795,156)
(766,705)
(28,234,615)
$ (16,561,861)
$ (16,138,527)
(208,395)
(30,963,241)
$ (16,346,922)
$ 9,063,729
1,005,539
2,384,538
1,750,321
55,692
1 7!1 AM
$ 14,430,421
70,812
(170,602)
(99,790)
18,429,664
165
8,332,440
637,696
27,399,965
$ 14,330,631
$ 9,807,551
1,186,908
3,482,351
2,798,391
779,328
247,280
$ 18,301,809
161,892
391,895
(247,280)
306,507
20,709,643
271
8,632,440
390,093
29,732,447
$ 18,608,316
(continued)
115
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Changes in Net Assets
Last Two Fiscal Years
(accrual basis of accounting)
Fis cal Year
Change in Net Assets
Governmental activities
Business -type activities
Component unit
Total primary government
2005
2006
$ (1,364,735)
$ 2,163,282
(866,495)
98,112
(834,650)
(1,230,794)
$ (2,231,230)
$ 2,261,394
RM
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Fund Balances of Governmental Funds
Last Two Fiscal Years
(modified accrual basis of accounting)
General fund
Reserved
Unreserved
Total general fund
All other governmental funds
Reserved
Unreserved, reported in:
Secial revenue funds
Debt service funds
Capital projects funds
Total all other governmental funds
Fiscal Year
2005 2006
1,813,013 2,026,113
$ 1,813,013 $ 2,026,113
$ 8,090,822 $ 7,742,903
34,055,115
(189,824)
21,412,256
$ 63,368,369
36,837,895
76,898
20,810,819
$ 65,468,515
117
1
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Changes in Fund Balances of Governmental Funds
Last Three Fiscal Years
(modified accrual basis of accounting)
Fiscal Y ear
2004
Revenues
Taxes
Intergovernmental
State sources
Federal sources
Land sale proceeds
Severance taxes
Licenes, permits, fees, and other local revenues
Other revenues
Investment earnings
Total revenues
Expenditures
General government
Fire services
Emergency preparedness
Community and economic development
Health and sanitation department
Education, culture, and recreation
Maintenance and operations
Service district maintenance
Primary and secondary education
Fern Fuller trust
Capital outlay
Schools
General
Debt service
Principal
Interest
Other charges -bond issuance costs
Total expenditures
Excess of revenues over (under) expenditures
Other Financing Sources (Uses)
Proceeds from sales of bonds
Bond premium
Transfers in
Transfers out
Total other financing sources(uses)
Net change in fund balances
Debt service as a percentage of noncapital
expenditures
$ 8,016,323
2,121,420
1,245,337
9,206
799,693
764,913
222,837
866,143
14,045,872
2,118,166
864,703
48,755
536,111
331,884
217,759
567,094
425,712
7,721,706
24,500
131,324
656,423
1,260,167
644,046
15,548,350
(1,502,478)
2005
$ 9,063,729
2,169,803
3,853,348
22,738
1,005,539
692,540
75,841
1,772,893
18,656,431
2006
$ 9,833,846
3,368,491
1,766,926
177,164
1,186,908
820,286
125,040
2,803,466
20,082,127
2,713,633
425,506
23,521
509,680
329,738
185,993
698,119
347,934
7,973,035
22,547
68,109
2,972,174
1,784,859
984,766
43,661
19,083,275
(426,844)
3,950,927
6,098
784,002
363,520
161,633
336,385
8,430,840
464,142
332,398
1,814,553
1,584,763
18,229,261
1,852,866
I It
I
i
i
-
20,350,000
-
-
121,590
-
3,605,614
1,800,212
1,751,182
(1,961,054)
(1,629,610)
(1,503,902)
1,644,560
20,642,192
247,280
$ 142,082 $
20,215,348 $
2,100,146
14.81 %
20.93 %
24.22
i
118
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KODIAK ISLAND BOROUGH
Kodiak, Alaska
General Revenues by Source(a)
Last Ten Fiscal Years
Licenses,
Inter -
Fiscal
Governmental
Investment
Year
Taxes
Revenue
1997
$ 5,582,037
1
1998
7,589,595
$ 9,672 $
1999
7,694,387
333,243
2000
8,057,781
2,055,803
2001
8,135,184
92,609
2002
8,017,344
129,829
2003
8,028,513
583,633
2004
8,165,326
3,397,240
2005
9,378,816
153,727
2006
10,257,023
1,000,000
(a) Includes general fund only.
2,010,431.
Source: Borough general ledger
850,000
161,621
1,925,405
l
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KODIAK ISLAND BOROUGH
Kodiak, Alaska
General Revenues by Source(a)
Last Ten Fiscal Years
Licenses,
Inter -
Permits
Governmental
Investment
Operating
and fees
Revenue
Income
Transfers
$ 108,483
$ 2,396,272
$ 371,414
$ 9,672 $
86,138
2,739,075
333,243
—
86,523
2,055,803
238,515
32,632
92,609
1,770,038
358,351
129,829
95,129
2,135,483
583,633
18,154
95,857
3,397,240
294,675
200,000
153,727
2,683,460
171,532
1,000,000
187,898
2,010,431.
105,812
850,000
161,621
1,925,405
265,392
—
171,962
2,369,185
469,913
—
119
Miscellaneous
Revenue
44,945
140,901
Total
$ 8,467,878
10,748,051
10,107,860
10,408,608
11,012,528
12,146,017
12,037,232
11,319,467
11,731,234
13,268,083
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Last Ten Years Assessed Values
$1,000,000,000
$800,000,000
$600,000,000
$400,000,000
$200,000,000
$0
120
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Ratio of
total
assessed to
Fiscal
Real
property
Personal
property
Total
total
Year Ended
Assessed
Full value
Assessed
Full value
Assessed
Full value
full value
June 30,
value
determination
value
determination
value
determination
determination
1997
549,456,964
565,281,400
104,677,687
312,465,100
654,134,651
877,746,500
74.52
1998
573,742,998
587,145,000
107,599,894
310,049,900
681,342,892
897,194,900
75.94
1999
577,551,709
599,696,900
109,304,683
297,058,600
686,856,392
896,755,500
76.59
2000
594,870,287
613,787,700
120,828,748
322,947,400
715,699,035
936,735,100
76.40
2001
626,906,341
641,419,200
121,849,192
336,548,600
748,755,533
977,967,800
76.56
2002
635,931,458
654,299,600
116,117,602
323,479,600
752,049,060
977,779,200
76.91
2003
642,995,612
679,949,700
117,456,245
323,755,200
760,451,857
1,003,704,900
75.76
2004
660,040,861
687,078,300
110,941,506
307,988,900
770,982,367
995,067,200
77.48
2005
678,425,914
731,267,000
105,481,537
300,735,600
783,907,451
1,032,002,600
75.96
2006
692,572,845
786,373,800
106,206,504
309,114,600
798,779,349
1,095,488,400
72.92
Source: Borough assessment and tax
records and State full value determination
Note: Property in Kodiak Island Bourough
is reassesed once
every three years.Property is assessed at
actual value; therefore,
the assessed
values are equal to actual value.Tax
rates are per $1,000 of assessed value.
Full value determination
includes all
exempted property located in the
borough.
Last Ten Years Assessed Values
$1,000,000,000
$800,000,000
$600,000,000
$400,000,000
$200,000,000
$0
120
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Note: The maximum mill rate allowed by State code is 30 mills
' Overlapping rates are those of local governments that apply to property owners within the City of Kodiak.
= Overlapping rates are those which apply to property owners located within Special taxing districts in the borough.They do not apply to every property owner in the Borough.
121
t-ontrioutnons to the , jcnooi tnstrtct
Fiscal
Assessed
KODIAK ISLAND BOROUGH
Millage
Year
Value
Contribution
Equivalent
1997
654,134,651
4,839,887
7.40
1998
Kodiak, Alaska
5,715,361
8.39
1999
686,856,392
6,492,876
9.45
2000
715,699,035
6,678,652
9.33
Direct and Overlapping Property Tax Rates and
748,755,533
6,913,926
9.23
2002
752,049,060
7,550,506
10.04
2003
760,451,857
7,767,661
Contributions to the School District
2004
770,982,367
8,498,082
11.02
2005
783,907,451
8,521,286
10.87
2006
798,779,349
(per $1000 of Assessed Value)
10.85
Source: Borough ordinance and assessment
Last Ten Fiscal Years
Direct
Rate
Overlapping Rates
Woodland'
Trinity'
Mission'
Fiscal
Acres
Islands
Lake
Year
Borough
City'
Street
Street
Tide Road Services Areas'
Fire Areas'
Ended
Basic
of
Lighting
Lighting
Gate Monashka Service
Bay View
Womens
Service
Womens
Service
June 30,
Rate
Kodiak
Area
Area
Area Bay District 1
Road
Bay
Area No. 1
Bay
Area No. 2
1997
6.75
2.00
0.50
-
- 1.50 1.75
1.00
2.00
1.50
1.25
-
1998
6.75
2.00
0.50
-
- 1.50 0.75
1.00
2.00
1.50
1.25
-
1999
9.25
2.00
-
-
- 1.50 0.50
1.00
2.00
1.50
1.25
-
2000
9.25
2.00
-
-
- 1.50 0.50
1.00
2.00
1.50
1.25
-
2001
9.25
2.00
-
-
- 1.50 1.00
1.00
2.00
1.50
1.25
-
2002
9.25
2.00
-
-
- 1.50 1.25
1.00
2.00
1.50
1.25
-
2003
9.25
2.00
-
-
- 1.50 1.00
1.00
2.00
1.50
1.25
-
2004
9.25
2.00
-
0.50
1.00 1.50 1.00
1.00
2.00
1.50
1.25
-
2005
10.25
2.00
-
0.50
1.00 1.50 1.00
1.00
2.00
1.50
1.25
1.25
2006
11.00
2.00
-
0.50
1.00 2.50 1.25
1.00
200
1.50
1.25
1.25
Note: The maximum mill rate allowed by State code is 30 mills
' Overlapping rates are those of local governments that apply to property owners within the City of Kodiak.
= Overlapping rates are those which apply to property owners located within Special taxing districts in the borough.They do not apply to every property owner in the Borough.
121
t-ontrioutnons to the , jcnooi tnstrtct
Fiscal
Assessed
Amount of
Millage
Year
Value
Contribution
Equivalent
1997
654,134,651
4,839,887
7.40
1998
681,342,892
5,715,361
8.39
1999
686,856,392
6,492,876
9.45
2000
715,699,035
6,678,652
9.33
2001
748,755,533
6,913,926
9.23
2002
752,049,060
7,550,506
10.04
2003
760,451,857
7,767,661
10.21
2004
770,982,367
8,498,082
11.02
2005
783,907,451
8,521,286
10.87
2006
798,779,349
8,670,440
10.85
Source: Borough ordinance and assessment
Note: The maximum mill rate allowed by State code is 30 mills
' Overlapping rates are those of local governments that apply to property owners within the City of Kodiak.
= Overlapping rates are those which apply to property owners located within Special taxing districts in the borough.They do not apply to every property owner in the Borough.
121
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Principal Property Tax Payers
Current Year and Nine Years Ago
122
2006
1997
Percentage
Percentage
Taxable
of Total Borough
Taxable
of Total Borough
Assessed
Assessed
Assessed
Assessed
Taxpayer
Value
Rank
Value
Value
Rank
Value
Ocean Beauty Seafoods Inc
$ 16,730,796
1
2.1%
$ 10,263,993
4
1.5%
Brechan Enterprises, Inc.
14,026,652
2
1.8%
—
Westward Seafoods, Inc
11,474,840
3
1.4%
—
international Seafoods of Alaska
9,442,721
4
1.2%
14,062,209
1
2.1%
Alaska Communications Systems
9,620,360
5
1.2%
—
Wal -Mart Real Estate Bus Trust
9,258,892
6
1.2%
—
Horizon Lines of Alaska, LLC(a)
7,416,188
7
0.9%
9,437,400
6
1.4%
Mill Bay Plaza Assoc Ltd
7,138,400
8
0.9%
—
North Pacific Seafoods(b)
7,003,916
9
0.9%
10,120,028
5
1.5%
Kodiak Fishmeal Company
6,582,582
10
0.8%
9,091,653
8
1.3%
Tyson Seafoods
13,829,068
2
2.0%
Western Alaska Fisheries
11,299,304
3
1.7%
T.U. of the Northland
10,299,432
7
1.5%
Safeway/MBPA
8,099,123
9
1.2%
Leisnoi
7,035,900
10
1.0%
Total
$ 98,695,347
12.4%
$ 103,538,110
15.2%
Source: Borough tax records.
(a) in 1997 company name was Sea -Land
Services
(b) Alaska Pacific Seafoods is combined
with North Pacific Seafoods in 2006. It was ranked in 5th place
in 1997.
122
1
1
1
C]
1
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Property Tax Levies and Collections
Last Ten Fiscal Years
Collections
Total Collections to Date
Collected within the
Fiscal Year
Taxes Levied
Fiscal Year of the Levy
Ended
for the
$ 96,490
Percentage
June 30,
Fiscal Year
Amount
of Levy
1997
$ 5,576,773
$ 5,478,939
98.2
1998
7,384,490
7,121,678
96.4
1999
7,704,172
7,575,491
98.3
2000
7,743,649
7,507,018
96.9
2001
8,164,127
7,912,859
96.9
2002
8,411,173
8,313,881
98.8
2003
8,395,117
8,167,437
97.3
2004
8,462,404
8,125,629
96.0
2005
8,785,412
8,139,198
92.6
2006
10,166,967
9,901,965
97.4
Collections
Total Collections to Date
in Subsequent
Percentage
Years
Amount
of Levy
$ 96,490
$ 5,575,429
100.0 %
77,576
7,199,254
97.5
314,367
7,889,858
102.4
175,066
7,682,084
99.2
204,458
8,117,317
99.4
362,377
8,676,258
103.2
178,885
8,346,322
99.4
69,831
8,195,460
96.8
521,516
8,660,714
98.6
—
9,901,965
97.4
Source: Borough general ledger
123
1
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Ratios of Net General Bonded Debt Outstanding ,
Last Ten Fiscal Years
Less Debt
Net General
Fiscal Assessed Gross Service
Bonded Debt Fund
Bonded
Bebt Capita
Per
,
year Population Value
1997 14,058 (a) $ 654,134,651 $ 21,660,000 $ 549,569 $
21,110,431 $
1,502
1998 14,181 (a) 681,342,892 20,020,000 432,942
19,587,058
1,381
1999 13,848 (a) 686,856,392 18,910,000 340,159
18,569,841
1,341
2000 13,989 (a) 715,699,035 17,025,000 272,651
16,752,349
1,198
2001 13,913 (a) 748,755,533 17,690,000 344,942
17,345,058
1,247
2002 14,167 (a) 752,049,060 16,615,000 448,065
16,166,935
1,141
2003 13,874 (a) 760,451,857 15,620,000 17,879
15,602,121
1,125
2004 13,811 (a) 770,982,367 14,385,000 33,915
14,351,085
1,039
,
2005 13,466 (b) 783,907,451 32,965,000 (348,233)
33,313,233
2,474
2006 13,638 (c) 798,779,349 31,155,000 (81,511)
31,236,511
2,290
Sources: Information obtained from assessment records and Borough general ledger except as otherwise noted.
Program.
,
(a) Information obtained from State of Alaska, Department of Community and Regional Affairs, Certified Population for
Revenue Sharing
(b) Information obtained from State of Alaska, Department of Commerce, Community and Economic Development, Community Database.
(c) Information obtained from State of Alaska, Department of Labor, Economic Information
,
Note: Detail regarding the borough's outstanding debt can be found in the notes to the financial statements.
All outstanding debt is General Bonded Debt.
Il
` n
L
124 1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Computation of Direct and Overlapping Debt
June 30, 2006
(a) Gross debt outstanding less applicable amounts in the Debt Service Funds.
(b) Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to
valuation of property subject to taxation in reporting unit.
(c) Per Aslaska Statute 29.45.090 there is a limit of 30 mills for ad valorem taxes.
Per Alaska Statute 29.45. 100 the limitition on maximum mill rate does not apply to taxes levied to
pay bonds.
Sources: Borough general ledger and City of Kodiak records.
125
Percentage
Kodiak Island
Net debt
applicable to this
Borough
outstanding
governmental
share of
(a)
unit (b)
debt (c)
Kodiak Island Borough:
General obligation bonds
$ 31,155,000
100% $
31,155,000
City of Kodiak:
Revenue bonds
620,000
100%
620,000
Total
$ 31,775,000
$
31,775,000
(a) Gross debt outstanding less applicable amounts in the Debt Service Funds.
(b) Determined by ratio of assessed valuation of property subject to taxation in overlapping unit to
valuation of property subject to taxation in reporting unit.
(c) Per Aslaska Statute 29.45.090 there is a limit of 30 mills for ad valorem taxes.
Per Alaska Statute 29.45. 100 the limitition on maximum mill rate does not apply to taxes levied to
pay bonds.
Sources: Borough general ledger and City of Kodiak records.
125
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Legal Debt Margin Information
Last Two Fiscal Years
2005 2006
Assessed value $ 783,907,451 798,779,349
Plus exempt property 32,491,840 45,783,490
Total $ 816,399,291 844,562,839
The State of Alaska does not mandate a debt limit to its municipalities and political subdivisions.
Debt capacity is ultimately determined by the voters and the marketplace.
Source: Borough assessment records.
126
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Ratio of Annual Debt Service Expenditures
for General Bonded Debt to Total
General Governmental Expenditures and Transfers
Last Ten Fiscal Years
(a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of
term bonds.
Source: Borough general ledger and debt documents
127
Total general
Ratio of
governmental
debt service
Fiscal
Interest
Total debt
expenditures
to general
year
Principal (a)
and fees
service
and transfers
expenditures
1997
1,565,833
1,239,996
2,805,829
9,391,162
29.9
1998
1,660,833
1,141,366
2,802,199
11,393,083
24.6
1999
1,915,833
853,652
2,769,485
10,957,892
253
2000
1,905,833
858,164
2,763,997
9,827,488
28.1
2001
2,015,834
746,994
2,762,828
10,735,365
25.7
2002
1,095,833
853,543
1,949,376
10,726,858
18.2
2003
1,140,833
803,224
1,944,057
13,071,957
14.9
2004
1,255,833
667,744
1,923,577
11,014,093
17.5
2005
1,780,417
983,195
2,763,612
12,027,717
23.0
2006
1,814,553
1,583,488
3,398,041
13,054,983
26.0
(a) Serial maturities in the case of serial bonds; annual Debt Service Fund requirements in the case of
term bonds.
Source: Borough general ledger and debt documents
127
Sources:
(a) State of Alaska, DCRA certified population.
(b) State of Alaska Department of education using www.eed.state.ak.us/stats/0uickFacts/ADM.pd
(c) Department of Labor using www.almis.labor.state.us
Note:
Per Capita Personal Income and Personal Income figures are not yet available for 2004 to 2006.
128
KODIAK ISLAND BOROUGH
,
Kodiak, Alaska
Demographic and Economic Statistics
Last Ten Fiscal Years
,
Per Capita
Percentage
Fiscal
Personal
Personal
School
Unemployment
year
Population (a) Income (c)
Income (c)
Enrollment (b)
Rate (c)
1997
14,058 336,233,000
23,725
2,862
9.1
1998
14,181 337,634,000
24,378
2,851
5.0
1999
13,848 347,630,000
25,264
2,798
5.1
2000
13,989 373,164,000
26,695
2,810
13.4
,
2001
13,913 382,227,000
27,794
2,774
10.9
2002
14,167 381,413,000
27,873
2,821
18.2
2003
2004
13,874 393,604,000
13,811 NA
29,479
NA
2,750
2,677
10.3
10.6
'
2005
13,466 NA
NA
2,678
9.5
2006
13,638 NA
NA
2,718
6.7
Sources:
(a) State of Alaska, DCRA certified population.
(b) State of Alaska Department of education using www.eed.state.ak.us/stats/0uickFacts/ADM.pd
(c) Department of Labor using www.almis.labor.state.us
Note:
Per Capita Personal Income and Personal Income figures are not yet available for 2004 to 2006.
128
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
Kodiak, Alaska
Average Monthly Employment & Earnings 2005'
Total Industries
Private Ownership
Total Government
Private Goods - Producing
Private Service - Providing
Number of Business by Company Size 2006'
Business Size
250 to 499 employees
100 to 249 employees
50 to 99 employees
20 to 49 employees
10 to 19 employees
'Data from http: / /almis.labor.state.ak.us
Note: No principal employer data available from department of labor
129
Average
Monthly
Employment
5,381
4,042
1,339
1,659
2,384
Number
10
2
59
Average
Monthly
Earnings
$ 2,871
2,757
3,214
3,489
2,248
KODIAK ISLAND BOROUGH
MISCELLANEOUS STATISTICAL DATA
Last Ten Fiscal Years
1997 1998
Land area - square miles 7,130 7,130
Miles of improved street 21.6 21.6
Building permits:
Permits issued
Value of buildings (thousands)
Fire Protection:
1999 2000
7,130 7,130
21.6 25.4
148 182 192 210
7,822 24,302 15,007 11,806
Number of fire stations 2 2 2
Number of employees 1 1 1
Police Protection: none
(provided by the City of Kodiak within the city limits and by the State of Alaska outside the city boundaries.)
Recreation:
Parks (number of acres)
Facilities:
Number of playgrounds
Number of swimming pools
Public Education:
Number of schools
Kodiak Area Elementary
Kodiak Area Middle School
Kodiak Area High School
Village Schools (a)
Number of support personnel (b)
Number of teachers (d)
Number of students
Number of Municipal Employees
Elections:
Number of registered voters
Number voting in last election
Percent of registered voters
(a) The majority of Village Schools are grades K -12
(b) All non - teaching employees.
2
1
224
224
224
224
16
16
16
16
4
4
4
4
1
1
1
1
1
1
1
1
9
8
7
8
101
156
163
158
199
202
208
200
2,862
2,851
2,798
2,810
61.5
42.75
37.25
37
9,350
9,957
10,389
10,100
2,120
2,076
1,972
3,861
23%
21%
19%
38%
(continued)
130
1
2001
2002
2003
2004
2005
2006
7,130
7,130
7,130
7,130
7,130
7,130
25.4
25.6
25.6
25.6
25.6
25.6
231
220
213
223
205
222
12,882
11,934
14,623
17,658
12,689
11,928
2
2
2
2
2
2
1
1
1
1
1
1
224
223
223
223
223
223
16
15
15
15
15
15
1
1
1
1
1
1
4
1
4
l
4
1
4
1
4
1
4
1
1
1
1
1
1
1
8
7
7
7
7
8
143.27
136.76
136.76
200.99
146.25
150.62
178.6
184.3
172.5
227.14
216.89
205.63
2,774
2,821
2,750
2,677
2,678
2,728
37
39
39
41
41
41
10,421
10,085
10,101
9,671
9,282
9,300
'
2,521
2,914
2,181
2,599
2,181
2,200
24%
29%
22%
27%
23%
24%
'
(c) In FY96 this was
changed to full time equivalents
(d) School district personnel figures include staffing from the General Fund and Grants. Grant staffing
varies from year to
year depending on
the number of grants
received.
131
*Assessed value.
Source: Borough assessing records, City of Kodiak building department and local bankers.
132
1
1
1
1
1
1
KODIAK ISLAND BOROUGH
'
Kodiak, Alaska
Property Value, Construction, and Bank Deposits
Last Ten Fiscal Years
'
Construction
Property Value*
Commercial
Residential
Deposits
Fiscal
No. of
No. of
in local
year
permits
Value
permits
Value
banks
Commercial
Residential
Nontaxable
36
1,559,938
112
6,262,439
108,926,259
157,911,064
391,545,900
2,404,872,414
1998
39
16,676,612
149
8,103,624
107,973,700
161,787,264
411,955,734
2,420,596,952
1999
51
6,784,879
141
8,222,313
123,206,000
160,921,064
416,630,645
2,420,601,099
2000
54
2,720,259
156
9,086,074
120,465,733
172,709,507
422,160,780
2,475,199,399
2001
33
1,379,673
198
11,501,804
119,637,923
193,882,996
433,023,355
2,475,199,399
'
2002
30
1,494,337
190
10,439,985
117,241,908
199,689,615
443,305,997
1,994,297,545
2003
47
2,915,740
166
11,707,269
129,546,701
206,386,964
463,419,197
1,996,235,045
2004
44
2,859,775
179
14,798,679
128,062,000
207,611,182
480,581,831
1,736,191,891
2005
47
2,097,983
158
10,590,784
135,302,544
210,328,700
482,244,145
1,666,526,546
2006
30
1,555,718
192
10,372,416
141,199,395
213,258,488
497,589,811
1,663,156,146
*Assessed value.
Source: Borough assessing records, City of Kodiak building department and local bankers.
132
1
1
1
1
1
1