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2007 Annual Operating Budget BookKODIAK ISLAND BOROUGH ADOPTED BUDGET FOR FISCAL YEAR ENDING JUNE 30, 2007 AS SUBMITTED BY: BOROUGH MANAGER RICK GIFFORD ON MAY 18, 2006 AND AS AMENDED BY THE KODIAK ISLAND BOROUGH ASSEMBLY AND ADOPTED ON JUNE 1, 2006 KODIAK ISLAND BOROUGH MAYOR AND ASSEMBLY JEROME SELBY, MAYOR TOM ABELL PAT BRANSON SUE JEFFREY REED OSWALT CECIL RANNEY MEL STEPHENS BARBARA WILLIAMS Page 1 TABLE OF CONTENTS INTRODUCTION ........................................................................................................................... ............................... 5 FISCAL YEAR 2007 AT A GLANCE ........................................................................................................ ............................... 7 BUDGETMESSAGE ................................................................................................................................. ............................... 8 BUDGETCALENDAR ............................................................................................................................ ............................... 13 STRATEGICPLAN ..................................................................................................................... ............................... 17 FINANCIALSUMMARIES .......................................................................................................... ............................... 27 FUNDSTRUCTURE ................................................................................................................................ ............................... 27 FISCALPOLICY ...................................................................................................................................... ............................... 28 FUNDSUMMARY ........................................................................................................................................ ............................... 33 GENERALFUND ........................................................................................................................ ............................... 39 REVENUE SOURCES AND GENERAL FUND ESTIMATES ............................................................................... ............................... 39 FUNDBALANCE .................................................................................................................................... ............................... 45 GENERALFUND REVENUE ................................................................................................................. ............................... 46 SUMMARY OF GENERAL FUND EXPENDITURES BY DEPARTMENT ......................................... ............................... 48 BOROUGHASSEMBLY ......................................................................................................................... ............................... 50 MANAGER'S OFFICE ............................................................................................................................ ............................... 52 CLERK'S OFFICE ................................................................................................................................... ............................... 54 LEGALSERVICES .................................................................................................................................. ............................... 56 FINANCE................................................................................................................................................. ............................... 58 FINANCE/MANAGEMENT INFORMATION SERVICES ................................................................... ............................... 60 ASSESSING............................................................................................................................................. ............................... 62 ENGINEERINGAND FACILITIES ........................................................................................................ ............................... 64 COMMUNITY DEVELOPMENT DEPARTMENT ................................................................................ ............................... 66 BUILDINGINSPECTION ....................................................................................................................... ............................... 68 ECONOMICDEVELOPMENT ............................................................................................................... ............................... 70 GENERALADMINISTRATION ............................................................................................................. ............................... 72 EMERGENCYPREPAREDNESS ........................................................................................................... ............................... 74 SCHOOLDISTRICT SUPPORT .............................................................................................................. ............................... 76 HEALTH AND SANITATION ................................................................................................................ ............................... 78 EDUCATION, CULTURE AND RECREATION .................................................................................... ............................... 80 TRANSFERS............................................................................................................................................ ............................... 82 SPECIALREVENUE FUNDS ..................................................................................................... ............................... 85 REVENUE SOURCES AND SPECIAL REVENUE FUND ESTIMATES ............................................. ............................... 85 SPECIAL REVENUE FUND RECAP ...................................................................................................... ............................... 88 CHILD CARE ASSISTANCE PROGRAM .............................................................................................. ............................... 90 RESOURCEMANAGEMENT ................................................................................................................ ............................... 92 BUILDINGAND GROUNDS FUNDS .................................................................................................... ............................... 94 BUILDING AND GROUNDS FUND- BOROUGH BUILDING ............................................................. ............................... 96 BUILDING AND GROUNDS FUND - MENTAL HEALTH CENTER ................................................... ............................... 98 BUILDING AND GROUNDS FUND- SCHOOL BUILDINGS ............................................................. ............................... 100 BUILDING AND GROUNDS FUND -PARKS OPERATION AND MAINTENANCE ........................ ............................... 102 COASTALMANAGEMENT ................................................................................................................. ............................... 104 LOCAL EMERGENCY PLANNING COMMITTEE ............................................................................ ............................... 106 WOMENSBAY ROAD SERVICE AREA ............................................................................................. ............................... 108 SERVICEDISTRICT NO. 1 ................................................................................................................... ............................... 110 SERVICEAREA NO.2 .......................................................................................................................... ............................... 112 MONASHKA BAY ROAD SERVICE AREA ....................................................................................... ............................... 114 BAYVIEW ROAD SERVICE AREA .................................................................................................... ............................... 116 Page 2 u 1 it 7 1, n 1 1 1 Page 3 FIRE PROTECTION AREA NO. 1 ........................................................................................................ ............................... 118 (BAYSIDE FIRE DEPARTMENT) ........................................................................................................ ............................... 118 WOMENS BAY FIRE DEPARTMENT ................................................................................................. ............................... KODIAK ISLAND BOROUGH AIRPORT FIRE PROTECTION DISTRICT ...................................... ............................... 120 122 WOODLAND ACRES STREET LIGHT AREA .................................................................................... ............................... 124 TRINITY ISLANDS LIGHTING DISTRICT ......................................................................................... ............................... 126 ' MISSION LAKE TIDE GATE SERVICE AREA ................................................................................... ............................... TRINITY ISLANDS SUBDIVISION PAVING DISTRICT .................................................................. ............................... 128 130 KODIAK ARTS COUNCIL ................................................................................................................... ............................... 132 FACILITIES FUND................................................................................................................................ ............................... TOURISMDEVELOPMENT ................................................................................................................ ............................... 134 136 FULLERTRUST .................................................................................................................................... ............................... 138 DEBTSERVICE FUND ............................................................................................................. ............................... DEBT SERVICE — EDUCATION AND HEALTH ................................................................................ ............................... 141 152 DEBTSERVICE — OTHER .................................................................................................................... ............................... 154 CAPITALPROJECTS FUNDS ................................................................................................. ............................... ENTERPRISEFUNDS .................................................................................. ............................... ............................189 157 MUNICIPAL SOLID WASTE (MSW) COLLECTION AND DISPOSAL ............................................ ............................... HOSPITALENTERPRISE FUND ......................................................................................................... ............................... 190 192 KODIAK FISHERIES RESEARCH CENTER ....................................................................................... ............................... 194 911 SERVICE ......................................................................................................................................... ............................... 196 1 APPENDIX .................................................................................................... ............................... ............................199 GLOSSARY .............................................................................................................................. ............................... 217 n 1 1 1 Page 3 r rw GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO Kodiak Island Borough Alaska For the Fiscal Year Beginning July 1, 2005 President Executive Director The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Kodiak Island Borough for its annual budget for the fiscal years beginning July 1, 1990 through July 1, 2005. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operating guide, as a financial plan, and as a communications medium. The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to the GFOA to determine its eligibility for the fiscal year 2007 award. Page 4 1 t 1 L 1 t 1 t INTRODUCTION 1 �l Introduction The Kodiak Island Borough is a second -class borough incorporated September 24, 1963. The Borough currently operates under a manager form of government. The Manager is hired by the Assembly and oversees the day -to -day affairs of the Borough. The Assembly is comprised of seven members elected by the public to govern the Borough. The Borough Mayor, also elected by the people, presides over the Assembly, votes only in the case of a tie, and serves as a ceremonial figure for certain Borough affairs. The Borough government employs 41 people in five departments: Manager's Office, Clerk's Office, Finance/MIS Department, Assessing, Community Development and Engineering/Facilities. ' Kodiak is the largest island in the State of Alaska and the second largest in the United States, second only to the island of Hawaii. Located in the Gulf of Alaska, accessed only by boat or plane, the Kodiak Island Borough faces some unique challenges in providing services to nearly 14,000 residents. The majority of the population lives within the City of Kodiak and surrounding area, while several small cities /villages exist in more remote areas of the island. Kodiak Island is known for the incredible Kodiak brown bear, world -class sport fishing and hunting, and one of the largest commercial fishing ports in the nation. Kodiak also has the privilege of housing the nation's largest United States Coast Guard 1 Base and the first commercial rocket launch facility. 1 1 u I Page 5 Kodiak Island Borough Fiscal Year 2007 Electorate Borough Mayor Borough Assembly Borough Attorney Assistant Fire Chief Engineering/ Facilities Director KFRC Environmenta Maintenance Specialist Engineer KFRC Receptionist Baler /Landfill Analyst Supervisor Project Manager MIS Operations Inspector Accounts Payable Supervisor Baler Operator 11 Project Assistant MIS Network Baler Operator I Maintenance Baler Operator I Worker Baler Operator I Secretary III ' Revenue Baler Operator II Borough Manager Assistant Community Development Director Associate Planner LRP Associate Planner Enforcement Drafting Technician Secretary III Page 6 Assessor Borough Clerk Assistant Clerk Deputy Clerk Property Appraiser Appraiser Technician Assessment Clerk I Arts Council Director Finance/MIS Director , Genera Accountant MIS Programmer/ Accounting Tech Analyst , MIS Operations Accounts Payable Supervisor Accounting Tech MIS Network Payrol Administrator Childcare Assistance Administrator ' Revenue Accountant Cashier Secretary III I s 'J F- I 1 1 1 I FISCAL YEAR 2007 AT A GLANCE General Fund The mill rate for FY2007 is set at 10.5 mills, which is .5 mills less than the FY2006 budget. In this budget expenditures exceed revenues by $154,296. The FY2006 budget was balanced with a use of fund balance in the amount of $688,693 but the fund balance actually increased $95,414 to $1,908,426. If we use the budgeted amount of fund balance in FY2007 our ending fund balance will be $1,754,130. One mill is budgeted to equal to $809,200 in property tax and $96,840 in severance taxes for a total of $906,000. We have budgeted $1,039,870 in revenue sharing this year. We received no State Revenue Sharing in FY2006. Funding to the School District has not been increased this year. School District support accounts for 67% of the budget. Motor vehicle tax revenues should increase by $70,000, $50,000 due to a rate increase and $20,000 due to an increase in number of licenses. We have budgeted $50,000 in the Community Development department for junk removal. This year P.E.R.S (Public Employees Retirement System) raised our employer contribution rate from 10 to 15 %. The PERS actuaries have determined that our rate should be 28.34 %. The current State policy is to raise our rates 5% per year until we reach the actuarially determined rate. Each 5% increase costs the General Fund about $82,000. Special Revenue Funds We are raising the rent for the Borough Building 10¢ per square foot. This is mainly due to increased oil prices (and we do not know if this is enough the way oil prices are going up). In FY2007 the administration of the LEPC (Local Emergency Planning Committee) grant program is returning to the Borough from the City of Kodiak. At the present time we are estimating the FY2006 interest earnings of the Facilities Fund to be $1,781,652. We have budgeted $714,000 of the Facilities Fund for payment of Bonds. This will pay for all but $35,590 of the Hospital FY2007 debt service. We have also budgeted for the Facilities fund to pay for building insurance of $220,000 and $242,500 for capital projects. If not for the Facilities Fund these expenses would have to be paid by the General Fund and would amount to just over 1 mill. Debt Service There are no significant changes in the Debt Service Funds. Total Debt Service expenditures are budgeted at $3,431,810. The State is reimbursing the Borough for $1,780,667 of these costs. The Facilities Fund is transferring $714,000 to help pay for debt service expenses. Without these two sources of income our mill rate would have to be raised about 2' /a mills. Capital Projects The Borough is currently managing $33,430,405 in capital projects. $20,850,000 of these projects were financed by the 2004A and 2004B bond issues. As part of the 2004B bond issue the Borough budgeted $6,210,000 for a new swimming pool. At this time the Borough is revising its estimate on how much the new pool is going to cost. The pool may cost 7 to 8 million dollars more than originally budgeted. This increase in cost is not budgeted at this time. Enterprise Funds There are no significant changes in the Enterprise Funds this fiscal year. In the future the Borough is looking at going out to bid on our contract to collect solid waste and we may also go out to bid, or renegotiate, our lease of the Kodiak Island Borough Hospital Page 7 t The Residents of Kodiak Island Borough Residents, BUDGET MESSAGE KODIAK ISLAND BOROUGH Fiscal Year 2007 BUDGET LETTER OF TRANSMITTAL Transmitted herewith is the fiscal year 2007 budget document for the Kodiak Island Borough (KIB). This budget is submitted according to Borough Code Section 3.08.030 and State Statutes, and includes the goals and objectives for fiscal year 2007 as determined by the Assembly in their adoption of the Kodiak Island Borough Strategic Plan. Mission Statement Our Mission is to provide quality service to the public in a fiscally responsible manner while fulfilling Borough responsibilities and exercising powers required by Alaska Statute Title 29 and the Kodiak Island Borough Code of Ordinances. Vision Statement Our vision is that the Kodiak Island Borough government is trusted and respected as a leader in providing the highest quality of services to the public in a cost effective, efficient manner that is open, dynamic, and focused. Previous Financial Performance Leading to the FY2007 Budget The fund balance of the General Fund increased $95,414 in FY2006. This means that the General Fund had a fund balance of $1,908,426 going into FY2007. The Borough did reserve $154,296 of this fund balance to balance the FY2007 budget leaving an unreserved fund balance of $1,754,130. Major variances in the FY2006 budget to actual are listed below. Federal Payment in Lieu of Taxes came in $58,000 more than budget (we budgeted $745,000 and received $803,246). Federal - shared revenues for the National Wildlife Refuge in Kodiak came in $21,000 under budget. We budgeted $400,000 and received $378,700. Severance taxes in FY2006 came in over budget by $221,877. FY2006 total severance taxes were $1,186,907 compared to $1,005,538 in FY2005 and $799,693 in FY2004. To see the trend in commercial fishing severance taxes please see the chart on page 43. In FY 2006 interest earnings in the General Fund were $452,829, which was $152,829 more than the budget of $300,000. In FY 2005 General Fund interest earnings were $265,392 and in FY 2004 they were $105,813. Interest rates are still going up. The winter of 2005/2006 was not particularly bad in terms of weather. In FY2006 snow removal costs for all of the service districts was $101,552, less $37,948 less than the budget of $139,500. We have budgeted $144,500 for snow removal for FY2007. Page 8 [1 Fi 1 11 1 1 II F-1 The Borough established a special revenue fund named the "Facilities Fund" to account for the sale of sale of Shuyak Island to the Federal Government in FY1996. At 6/30/2006 the Facilities Fund had a fund balance of $ 38,838,949. Eighty- five percent of the interest earnings from the previous year can be used for insurance, debt reimbursement (capped at 50 0 /6), and capital projects, the remaining 15% must be kept in the fund for inflation proofing. Interest earnings dropped significantly only to rise again. At 10/31/2000 the 90 day T -Bill was selling at 6.35% and it had dropped to .85% by 6/30/2003. At June 30, 2006 it had risen to 5.01 %. It is hard to predict if the rates are going to keep climbing, level off, or even drop. Major Policy Issues The major policy issue for FY2007 is maintaining the same level of service to our residents, funding the School District to adequately provide a quality education to our youth, and maintaining our low tax rate. This year we were able to cut our mill rate by''h mill. This lowers our area wide mill rate from 11.0 mills to 10.5 mills. The main reason we were able to do this was the State energy assistance grant for 1,039,870. The State has said that this is a one time grant. 1 1 1 u 1 Paying for increased education costs is one of the major problems for the Borough. As illustrated on page 76, until FY2007 the Borough has had to significantly increase their contribution to the School District. The reason main reason that the Borough did not have to increase their contribution for FY2007 was an increase in State funding to the School District. There is a cap on Borough expenditures for and transfers to the School District of 6 mills. (This cap assumes that the Borough would tax the vessels in our jurisdiction at their market value. Instead the Borough taxes vessels at a fee of $1.00 per linear foot with a $30 minimum amount. If they are less than five tons they are not taxed.) The Borough is right at this cap. Until this year State appropriations for education have been static, but the 4 -6 mill window has remained in place. School Districts are finding it harder each year to balance their budgets and still provide a quality education. The local contribution to the school district is governed by Section 14.17.025 of the Alaska Statutes and is an item of major concern since this one department in the budget represents about 70% of the total General Fund budget. State statutes outline the minimum and maximum amounts that can be contributed to the school district based on factors of assessed value, mill rate, instructional units, and the cost differentials. This budget appropriation is in the upper range of the required window for local funding set by State Statutes. This year the Borough's total School District budget is $ 9,566,078 with a direct contribution to the school district of $7,740,000, in -kind services budgeted at $930,820 and debt service of $895,258 (net of State debt reimbursement). This contribution is equal to 12 mills of property tax, both real and personal. The Facilities Fund is the only way that the Borough is able to balance the General Fund budget without a tax increase of over one mill. The facilities fund pays for all of building insurance that would normally be paid for by the general fund. This is budgeted at $220,000 for FY2007. The Facilities fund also pays for much of the debt service that would have to be absorbed by the General Fund if these monies were not available. In FY2007 the Facilities fund is moving $714,000 to pay for a portion of this debt service expense. In FY2006 General Fund expenditures exceeded revenues by $95,414. This leaves the Borough with an estimated fund balance in the General Fund of $1,908,426. We had budgeted to "use" $688,693 of this fund balance in FY2006. This would have left us with a fund balance of $1,124,318. The reason that the Borough had this surplus was a combination of higher revenues than expected and generally lower expenditures. There were several revenue sources that significantly exceeded their budgets. The biggest differences in revenues were payments in lieu of taxes, $57,000, severance taxes, 221,890, State shared revenues of $61,790, and interest earning by $153,700. The biggest savings in expenditures were personnel costs of $126,980, legal fees of $30,000, insurance by $40,130, continuing education of $22,330, travel and per -diem of $28,630, and machinery and equipment of $30,000. This year we were able to keep contributions to non - profits at basically the same level of funding as last year. Every year the Assembly has to take a hard look at the funding of non -profit organizations. Traditionally the Borough has allocated a considerable amount of money towards non - profit agencies within the Kodiak Island Borough and this year was no exception. Page 9 1 The Borough is responsible for solid waste collection and disposal for a portion of the Borough. Generally this portion is called the road system and is that part of the island group that is assessable by road. The Borough contracts for solid waste collection and operates the landfill on its' own. The existing solid waste program has resulted in significant progress toward creating a high quality, environmentally responsible, integrated solid waste management system. The Kodiak Island Borough landfill is fully operational with daily coverage, leachate control and treatment. The current footprint is expected to last until 2008 with planning for lateral expansion to occur in the near future. This future expansion should increase the life of the landfill to 2020. Our recycling efforts will extend the life of our landfill by removing from the waste stream for disposal scrap metal, corrugated cardboard, aluminum, paperboard, newspaper, plastics, and mixed paper. Our landfill permit has been approved by the Alaska Department of Environmental Conservation after years of work. All of these efforts will improve the management of our solid waste and will result in a significant cost savings to the budget in future years. Tax Rate and Financial Analysis 1 This budget lowers the General Fund mill rate to 10.50 mills, a decrease of .50 mills. As mentioned before this was made possible by the State energy assistance grant for this year. The state has indicated that this was a one time grant. The , voters of the Kodiak Island Borough initiated and passed a property tax revenue cap in October of 1998, limiting the amount of any potential increases to the mill rate. The tax cap does allow an increase for new debt service and inflation. Pursuant to Alaska law respecting initiatives however this limit is subject to change after two years and this time period has lapsed. The fund balance of the general fund at June 30, 2006 is estimated to be $1,908,426. This budget includes a "use of Fund Balance" of $154,296 to balance the budget. General Fund revenues have increased from $12,146,019 in FY2002 to a budgeted $ 13,488,120 in FY2006, an increase of 11 %. The Borough did budget to use $154,296 of fund balance to balance the FY2007 budget. This was not included in the above calculations. General Fund expenditures are expected to increase from $10,726,856 in FY2002 to a budgeted $13,642,416 in FY2007, an increase of $ 2,915,560. During this time frame General Fund School District expenditures went from $7,363,880 to a budgeted $9,082,990, an increase of $ 1,719,110. As you can see increased education funding since FY2002 has made up most of this increase. The level of staffing for all funds is the same as it was in FY2006. This year P.E.R.S (Public Employees Retirement System) raised our employer contribution rate from 10 to 15 %. This increase was paid for by a one time grant from the State of Alaska. The PERS actuaries have determined that our rate should be 28.34 %. For FY2007 the Borough has an unfunded PERS obligation of $5,990,000. The State of Alaska PERS retirement system is a single employer, defined benefit retirement system. The Borough does not share its retirement costs with any other government. The current State policy is to raise our rates 5% per year until we reach a rate that will keep us in our retirement obligations. The Facilities Fund plays a major part in keeping our General Fund Expenditures down. The Facilities Fund was created when the Borough sold Shuyak Island to the State of Alaska for forty two million dollars. This fund has been set up as a permanent fund where only the interest earnings can be used, and then only after inflation proofing. Basically, the Borough can use up to 85% of the previous year's interest earnings for building insurance, debt service, and capital projects. In FY2007 the Facilities fund is budgeted to transfer $220,000 to building and grounds for property insurance, $714,000 to debt service and $242,500 to capital projects. If the Facilities fund were not available this $1,176,000 would have to be paid out of the General Fund and ultimately the individual taxpayers. This is a savings of over one mill. Various service districts within the Borough levy a property tax to provide service within the Borough. These levies range up to 2.5 mills. A complete schedule of these rates can be found on page 36. The Monashka Bay Road Service area raised their mill rate from 1.75 to 2.50 mills and Service District Number 1 raised their mill rate from 1.00 mills to 1.25 mills. Services provided include road maintenance, fire protection, street lighting and a tide gate. Page 10 I 1 1 il� 1 I 1 Property assessments have increased from last year largely due to new construction and other property just now becoming taxable. A consistent pattern of reappraisals, and the standardization and increased quality of both the real and personal property rolls has continued. The taxable value of real and personal property for FY2007 is $809,236,402, an increase of $10,320,453 (1.3 %) over FY2006's value of $798,915,949. The total proposed budget for fiscal year 2007 calls for expenditures and transfers of $34,349,459. The Kodiak Island Borough School District's (KIBSD) proposed budget of $32,885,353 is not included in this total for three reasons: 1) the school district is still formulating their budget, 2) it will not be approved by the State of Alaska until July, and 3) the school board is a governing board and the Borough Assembly has no control over their budget except for the local appropriation and total budget approval. If the Kodiak Island Borough School District were included as part of the Kodiak Island Borough, the Borough budget would total $67,234,812. The largest component of the Budget is the General Fund. The proposed General Fund budget is $13,642,416 or 43 %. of the total budget. Of this, $8,832,440 is for transfers to other funds (mostly KIBSD) leaving expenditures in the General Fund of $4,809,976, which amounts to just 35% of the total General Fund Budget. General Fund revenues are budgeted at $ 13,488,120 (72 %) from property taxes, $1,016,793 (8 %) from severance taxes, $104,500 (1 %) from licenses and permits, $2,217,945 (16 %) from intergovernmental sources, $400,000 (3 %) from interest earnings, and $60,200 (<1%) from miscellaneous revenue. To balance the budget we budgeted using $154,296 of our fund balance. This is I% of our revenue budget. In FY2007 we changed the manner in which boats are taxed. Previously, boats were charged a flat fee of $15. In FY2007 boats will be taxed at $1.00 per lineal foot with a minimum tax of $30. As before, boats that weigh less than 5 tons are exempt from tax. This should bring in additional revenues of approximately $20,000. General Fund expenditures and transfers are budgeted at $13,642,416. $2,878,316 (21 %) is for general government, $141,440 (1 %) for public safety, $9,082,990 (67 %) for education, $167,220 (1 %) for culture and recreation, $289,880 (2 %) for health and welfare, $399,150 (3 %) for assessing, $683,420 (5 %) for community development and $396,450 (3 %). The FY2007 budget is $416,548more than FY2005 actual expenditures of $13,225,868 in FY2006. Debt service will be $32,853more in FY2007 than it was in FY2006; $3,431,810 in FY2007 compared to $3,398,957 in FY2006. State debt reimbursement is budgeted at $7,780,667. The State pays for 60 - 70% of our debt for school construction. The Borough has three different capital project funds. These are Borough Capital Projects, Bond Improvements, and State Capital Grants. At this time the Borough has $30,654,238 in ongoing capital projects. For a complete description of these funds and the individual projects you can turn to the capital projects tab. The Borough faces many challenges for FY2007 and beyond. The State of Alaska is receiving more money from the sale of oil that it did several years ago. Increased prices have offset declining production on the North Slope. The State has been trying to cut or contain costs wherever possible. One large area is education. While the State has continued level funding, the State has not kept up with the escalating cost of education. This means that the Boroughs pay for a larger share of education by making up the difference in diminishing state support for education. Along with cuts in State and Federal funding are the increasing costs of complying with State and Federal regulations such as the Clean Water Act, wetland regulations, and others. The economy of the Borough is sound. We have a diversified economic base including fishing, timber harvesting, tourism, a rocket launch facility, a Fisheries Research Center, and a large contingent of Federal and State government employees. The 1998 Bond issue was given an A- rating by Fitch, providing recognition of our strong economy. It is imperative that we continue to be financially responsible and seek cost effective improvements throughout Borough operations. Budget Document Organization Page 11 1 The Borough has been a participant in the Distinguished Budgetary Presentation Award program since FY1990. The Borough has received the Distinguished Budgetary Presentation Award for all of their budgets from FY 1991 through FY2006. We will be submitting this budget to the GFOA for their evaluation. Acknowledgment Particular appreciation is directed to all members of the Kodiak Island Borough staff for their cooperative, efficient and dedicated service during the past year is expressed. Special appreciation is also given to the finance department for their assistance in the preparation of this document. Also, I would like to give thanks to each member of the Assembly for their interest and support in adopting legislation, goals, and policy guidance that allows staff to conduct the financial affairs of the Kodiak Island Borough in a progressive and responsible manner. Conclusion The requested appropriations have not been established easily. The Assembly provided goals and objectives in December, which helped the staff build budgets around these goals from the start. During the months of February and March, budget sessions were conducted with all departments and agencies. Since then, several budget work sessions have been held with the Assembly. As usual, this process was difficult due to limited revenues and the unavailability of State revenue projections until after the legislative session ended in May. The Borough Manager and staff stand ready to work with you in the upcoming year to carry out the highest level of service to the taxpayers of the Kodiak Island Borough. Respectfully submitted, KODIAK ISLAND BOROUGH �Z 0` Rick Gifford Borough Manager . XIAOc Karleton G. Short Finance Director Page 12 1 h 1 J l i 1 fl 1 1 i 1� BUDGET CALENDAR KODIAK ISLAND BOROUGH FISCAL YEAR 2007 The following activity is outlined as essential for the orderly formulation of the fiscal year 2007 Borough budget (July 1, 2006 through June 30, 2007). DATE ITEM BY January 6, 2006 Budget Preparation Message Manager January 6 Distribution of budget worksheets to aid departments and Finance Officer service districts in submitting their requests February 10 Final day for departmental budget requests to be returned to Department Manager via Finance Officer Heads February 17 Revenue forecast all funds Finance Officer February-March Work sessions to resolve or justify differences of department Manager/ Finance budgets Officer/ Dept. Heads March 1 Distribution of forms to gather input from autonomous not -for- Finance Officer p rofit organizations March 31 Receipt of Service District budgets Service Districts April 1 Due date for public and not-for-profit agencies budget requests Finance Officer April 27 Prior to April 30, submission of proposed budget and budget Manager message for Assembly in a work session (per KIB Code Subsection 3.08.030 ) to include KIBSD budget April 30 Receipt of KIBSD budget; KIB must pass a resolution School District establishing school district funding amounts within 30 days of receipt April -May Assembly department review Manager/ Dept. heads Ma 18 Introduction of Budget Ordinance Power Point presentation) Manager Ma 19 Publication on hearing Clerk June 1 Public hearing and adoption of budget (as required by KIB Code Assembly Section 3.8.50 ) by June 10 July 1 Budget execution All concerned Page 13 [l The Budget Process The budget process begins on the first Friday in January of each year with the budget preparation message by the Borough Manager. At this time, budget worksheets are distributed to the various departments to aid them in preparing their requests. The following week, forms are distributed to solicit input from the villages and from autonomous, not - for - profit organizations. Departmental budget requests must be returned to the Finance Department by the second week in February. Departments must include line item monetary requests and goals and objectives for the upcoming fiscal year. The Finance Officer prepares revenue forecasts for all funds by the third week in February. During February and March, work sessions are held between the Manager, Finance Officer, and department heads to resolve or justify the departmental budgets. Service district budgets must be received by March 31 of the year, per Section 4.20.030 of the Borough code. The school district budget must be received by April 30 of the year, per Section 3.08.030 B of the code. Budget requests by public and not - for - profit organizations must be returned to the Manager's Office no later than the first of April. The Manager presents his annual budget message during the last week of April. The proposed budget and capital program must be presented to the Borough Assembly in a work session prior to April 30, per section 3.08.030 A of the code. During the months of April and May, the Assembly reviews the budget with the Manager and department heads. In May, the Manager introduces the budget ordinance. There must be a public hearing on the budget on or before June 10 of each year. The Borough Clerk posts the notices of this public hearing. The budget shall be adopted by a favorable vote of a majority of all members of the Assembly no later than June 10 through the adoption of an ordinance setting forth the appropriation levels and the millage rate. The Borough Mayor may veto the ordinance, but his veto may be overridden by two - thirds of all the votes to which the Assembly is entitled on the question. If the Assembly does not adopt the budget by June 10, the budget, as presented by the Manager, shall be deemed to have been finally adopted, per Section 3.08.060 of the code. Budget Amendments According to the Borough Code for Public Finance — Budget, upon adoption of the budget through Assembly passage of the budget ordinance the budget is in effect for the budget year (July 1 — June 30). 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. 1. All new appropriations are authorized by an appropriation ordinance that amends the annual budget ordinance. 2. A resolution of the Borough Assembly is required to move (appropriate) amounts between departments and projects. Basis of Accounting The term `basis of accounting" is used to describe the timing of recognition that is, when the effects of transactions or events should be recognized. The Borough budgets governmental type funds (for example, the General Fund, Special Revenue Funds, and Debt Service Fund) on a modified accrual basis. Revenues are recognized only when they are both measurable and available. Revenues are considered available if they are received within 60 days of year end. Expenditures are recognized when they are Page 14 1 1 1 ' incurred, but an exception to this general rule is principal and interest on general long -term debt, which is recognized when due. Prepayment of insurance and similar services extending over more than one year is allocated to the years benefited. .. ' The Enterprise Funds (Municipal Solid Waste and Collection, Hospital, Kodiak Fisheries Research Center, and 911 Services) also budget obligations when incurred as expenditures. Revenues are recognized when they are obligated to the borough (for example user fees are recognized as revenues when services are provided). ' In all funds when goods and services are not received by the end of the year, the encumbrances lapse. Encumbrances are not recognized as expenditures in the year of encumbrance but in the year they are incurred. I Balanced Budget All funds of the Borough must have a balanced budget. For the Borough this means that revenues, ' plus a use of unrestricted fund balance, must equal expenditures. I I Page 15 A k A R 11 1 y 1 1. r Kodiak Island Borough ".A to Ouzinkie y Kodiak — Kodiak Station Womens Bay ,-- Chiniak Old Harbor LJ nA4 0 20 40 80 Miles ,%urce: Aaska Departne erd of Labor and Work rue De velopm ed, Research and Azalys°s andUS Censers Bureau. 2000 rirgeAve fts. Page 16 STRATEGIC PLAN r 1 Strategic Plan KODIAK ISLAND BOROUGH ' RESOLUTION NO. FY2006 -22 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH ' ADOPTING THE KODIAK ISLAND BOROUGH STRATEGIC PLAN FOR THE YEARS 2006 -2010 n n C WHEREAS, the Kodiak Island Borough Assembly held a strategic planning session on November 5, 2005; and WHEREAS, this session culminated in the preparation of the Kodiak Island Borough Strategic Plan for the years 2006 -2010; and WHEREAS, the Kodiak Island Borough Strategic Plan outlines the Kodiak Island Borough's mission, vision, and guiding principles; and WHEREAS, the Kodiak Island Borough Assembly desires a formal adoption of the Kodiak Island Borough Strategic Plan; NOW THEREFORE, BE IT RESOLVED BY THE KODIAK ISLAND BOROUGH ASSEMBLY that the Kodiak Island Borough Strategic Plan for the years 2006 -2010 which outlines the Kodiak Island Borough's mission, vision, and guiding principles is hereby adopted. KODIAK ISLAND BOROUGH Jerome M. Selby, Borough Mayor I ATTEST: I Judith A. Nielsen, CMC, Borough Clerk ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS FIFTEENTH DAY OF DECEMBER 2005 Page 17 Introduced by: Mayor Selby Requested by: Assembly Drafted by: Assembly Introduced: 12/15/2005 ' Adopted: 12/15/2005 KODIAK ISLAND BOROUGH ' RESOLUTION NO. FY2006 -22 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH ' ADOPTING THE KODIAK ISLAND BOROUGH STRATEGIC PLAN FOR THE YEARS 2006 -2010 n n C WHEREAS, the Kodiak Island Borough Assembly held a strategic planning session on November 5, 2005; and WHEREAS, this session culminated in the preparation of the Kodiak Island Borough Strategic Plan for the years 2006 -2010; and WHEREAS, the Kodiak Island Borough Strategic Plan outlines the Kodiak Island Borough's mission, vision, and guiding principles; and WHEREAS, the Kodiak Island Borough Assembly desires a formal adoption of the Kodiak Island Borough Strategic Plan; NOW THEREFORE, BE IT RESOLVED BY THE KODIAK ISLAND BOROUGH ASSEMBLY that the Kodiak Island Borough Strategic Plan for the years 2006 -2010 which outlines the Kodiak Island Borough's mission, vision, and guiding principles is hereby adopted. KODIAK ISLAND BOROUGH Jerome M. Selby, Borough Mayor I ATTEST: I Judith A. Nielsen, CMC, Borough Clerk ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS FIFTEENTH DAY OF DECEMBER 2005 Page 17 U4 % STRATEGIC PLAN (FISCAL YEARS 2006 -2010) Adopted by the Kodiak Island Borough Assembly Resolution No. FY2006 -22 KODIAK ISLAND BOROUGH'S MISSION, VISION, AND GUIDING PRINCIPLES I. MISSION Our mission is to provide quality service to the public in a fiscally responsible manner while fulfilling Borough responsibilities and exercising powers required by Alaska Statute Title 29 and the Kodiak Island Borough Code of Ordinances. II. VISION Our vision is that the Kodiak Island Borough Government is trusted and respected as a leader in providing the highest quality of services to the public in a cost effective, efficient manner, that is open, dynamic, and focused. III. OUR GUIDING PRINCIPLES • ACCESSIBILTY All citizens and employees throughout the Borough, regardless of abilities, will have ready access to our services and facilities. Language and culture will not be barriers. Our operations will be open to the public and will ensure fair and equitable treatment for all. • ACCOUNTABILITY r i 1 r r We will ensure public funds will be administered as required by State law, in a manner that , maximizes services in balance with available resources. We will do so in full accordance with the law and in the public interest with the highest degree of integrity. Page 18 i] 1 • CUSTOMERS We will operate in a customer -driven manner both internally and externally with a focus on I treating all persons with courtesy and respect. We will strive to provide the highest quality service and ensure customer satisfaction. • DIVERSITY We will treat all citizens with dignity and respect. We will demonstrate through our actions an understanding and appreciation for cultural diversity and individual differences. Under no circumstances will 1 harassment or discrimination of a sexual, religious, or racial nature be tolerated. • VALUED EMPLOYEES AND VOLUNTEERS We will enable and encourage employees and volunteers to self manage their work with the expectation that they are accountable for their decisions and actions. We will strive to provide and maintain quality- working conditions along with providing the resources necessary for success. While ' recognizing the importance of each member's contributions to the operation, we will nurture teamwork and recognize and reward hard work, creativity, and innovation. ' • PURSUIT OF EXCELLENCE We are committed to quality and excellence, will strive for continuous improvements and creativity, and will not be satisfied with "that's the way we have always done it." • MISSION - DRIVEN We will focus our efforts on the mission of the Kodiak Island Borough and not allow needless rules and bureaucracy to get in the way of accomplishing our objectives. Flexibility and responsiveness, with accountability, will be the principal boundaries of our operation. • INTEGRITY, LOYALTY, AND TRUST ' Ethical conduct is paramount and we will work to create an environment of trust and loyalty based on open, honest, and positive interactions with whomever we have contact. ' • STEWARDSHIP We are committed to and expect the most efficient use of the public's resources and will strive to maximize the life, value, and utility of the public property under our trusteeship. • TEAMWORK We will work professionally and cooperatively together as a team with a spirit of mutual respect to ' accomplish our mission, recognizing the important contributions each member can bring to the operation. IV. KODIAK ISLAND BOROUGH GOALS The Kodiak Island Borough was created as a regional government to serve the public by financing and administering the primary functions of Education, Assessment and Collection of Taxes, Land Use through Planning and Zoning, Mental and Physical Health, and General Administration. Other services include Solid Waste Collection and Disposal, Parks and Recreation, Economic Development, and Animal Control. It is our overall goal to provide these services in an efficient and cost effective manner, and to strive for public satisfaction. The ' following strategies are designed to accomplish these goals and are modified annually to be used as a foundation for the design and implementation of the Kodiak Island Borough's annual budget. Page 19 1 V. KODIAK ISLAND BOROUGH'S CORE STRATEGIES Overall strategic theme: To build and maintain credibility, trust, and accountability to the public. We must continually work to improve our services and allocate our resources wisely. We must listen carefully to our citizens and to fully and effectively inform them of how our actions are addressing their needs and concerns. Table of Powers MANDATORY POWERS A. Education B. General Administration and Finance C. Tax Assessment and Collection D. Planning and Zoning ADOPTED POWERS E. Emergency Services Planning F. Community Health (restricted area-wide) G. Solid Waste Collection and Disposal (non area -wide, outside cities, except Kodiak) H. Parks and Recreation (non area -wide, outside cities) I. Economic Development (non area -wide, outside cities) J. Animal Control (non area -wide, outside cities) A. Education Goals and Objectives 1. Pursue increased funding at the state and federal level to offset the local cost for education. a. Maintain a vigilant and active lobbying effort to ensure a strong voice for education at the state and federal level and pursue a formal legislative definition of "minor maintenance and in -kind expenses ", by the State. b. Continue to actively participate and support regional organizations such as the Alaska Municipal League and the Southwest Alaska Municipal Conference as vehicles for increased funding for education. c. Continue to support and pursue statewide Borough formation and KIBSD consolidation in order to create a fairer distribution of the cost of education. 2. Continue to improve on our positive and cooperative working relationship with the KIBSD to maximize efficiency and positive outcomes. a. Annually review all in -kind projects and operations prior to budget preparations by both bodies, and stipulate service types, levels and agreed costs and financial plans. b. Annually review with KIBSD all facilities and generate a comprehensive needs and condition survey for incorporation into Item A.2 -A which documents a short (one year) and long (five - year) plan to address funding, staffing, and projects to address any deficiencies for each facility. 1 This adopted power is restricted to Hospital and Mental Health services only. Page 20 f 1 i 1 1 f] 1 c. Create a long -term fiscal plan for budget purposes that deals with the contribution cap and the fiscal shortfalls projected that minimizes negative impacts on school district operations and ensures solid educational programs and adequate maintenance and operations of school facilities. d. Seek cooperative solutions to educational needs that are balanced, sustainable, and effective. 3. Continue with the current momentum towards addressing the physical condition and safety needs of educational facilities to ensure safe, healthy, and well- maintained facilities that are conducive to a positive learning environment. a. Develop and proceed with the planning, design, and construction of school and related capital improvements as approved by the voters. b. Continue to seek funding for student safety projects including safe student access to school facilities. c. Seek additional funding for capital improvements approved by the voters and not yet constructed due to significant construction cost increases since voter approval and sale of bonds. 4. Aggressively pursue a vocational educational program that addresses regional needs and includes a cooperative effort between educational providers. This program will include the renovation of the existing voc -ed facility and the addition of a community voc -ed facility that is integrated with the needs of the KIBSD and the Kodiak College with a goal of providing training and skills to address the needs of the local economy. Continue to support educational solutions between the College and KIBSD that generate training and educational opportunities that assist transition from school to work. a. Work with stakeholders to generate a listing of local labor needs to ensure training funds are appropriate and focused. b. Continue to work with the Kodiak Island Borough School District in the "Career Pathways" program to ensure student needs are met and to coordinate with Kodiak College. B. General Administration and Finance Goals and Objectives 1. Create and maintain a long -term fiscal plan that incorporates KIBSD funding and maintenance costs for all Borough operations including enterprise funds. a. Continue to update the long -term fiscal plan to produce a reliable and comprehensive plan reflecting assumptions and fiscal projections under the current fiscal and political environment. 2. Continue to provide reliable and competent accounting services to all Borough operations and departments and ensure timely reconciliation of all accounts receivable and payable. a. Continue to protect the corpus account of the Facilities Fund to offset the need for increased taxation. b. Safeguard Borough assets through an investment program that stresses safety of principal as a priority but still yields sufficient returns on investments to offset the need for tax dollars. Page 21 1 3. Annually examine user fees during the budget process to ensure the fee structure fairly reflects the cost of providing special services or objectively quantifies general fund subsidies for Assembly consideration. a. Ensure all user fees cover the actual cost of providing the service unless a lower level of funding has been approved by the Assembly to minimize general fund subsidies of special services. 4. Increase the volume and quality of public information and education using all forms of media in a cost - effective manner that allows for interactive or two -way communications. a. Expand and maintain a quality web page that allows for access to public interest in items such as meeting schedules, minutes, and agendas, review items, along with maps showing trails, wetlands, ownership, and evacuation plans and additional links to other public resources. b. Provide the Assembly and public with accurate and timely financial reports that reflects the Borough's financial position in a user - friendly format. 5. Review current policies and procedures to reduce the inventory of tax- foreclosed property through annual sale that minimizes negative community impacts. a. Review current process to ensure all properties are reviewed and selected for documented public purposes prior to disposal in a timely manner. 6. Continue to work with municipalities and other service providers to increase efficiencies and cooperation that will lower costs to the citizens. a. Continue to pursue efficiencies by utilizing municipal services in a cooperative manner with all municipalities. b. Continue to review and evaluate all options for providing superior services through consolidation, annexation, unification or other methods that may maximize efficiencies. 7. Continue to review and implement land sale strategies that are in balance with the real estate market and provide the transfer of developable public lands to the private sector in a cost- effective manner. a. Evaluate all Borough land and, on a regular basis, conduct a sale of land that is appropriate for development and in demand. J P Fil ! I �I 8. Operate and maintain Borough facilities in a safe, healthy, and attractive manner that creates a positive environment for the community and ensures safe and reasonable access for all citizens including the physically impaired. a. Ensure lease rates of Borough facilities generate sufficient revenues to pay for adequate operational and maintenance expenses. b. Identify and seek funding sources to evaluate Borough facilities to ensure earthquake survivability. c. Ensure that all Borough buildings are brought into ADA compliance during renovation. 9. Develop and implement a methodology to systematically review and evaluate Borough operations. a. Review and update the Personnel Rules and Regulations. Page 22 1 j1 II C. Tax Assessment and Collection Goals and Objectives 1. Continue to provide a comprehensive taxation and assessment program that is fair and equitable for all citizens and provides adequate funding to accomplish the mission statement. a. Review all forms of taxation to ensure 100% inclusion. b. Continue to review the property inventory to ensure valuations and data are current. 2. Review taxation options with an eye towards diversification of taxation in order to spread the tax burden as much as possible. a.. Review current flat rate boat tax and make recommendations to cover cost of administration. ' 3. Implement a Geographic Information System (GIS) for the Borough. a. Form a steering committee of GIS stakeholders to address the implementation and maintenance of a web ready GIS system. b. Encourage the participation of other entities to collaborate cooperatively in the GIS process and ensure compatibility to the greatest extent possible with federal and state agencies. c. Integrate the GIS program with the E -911 system and seek financing opportunities through the grant process. D. Planning and Zoning Goals and Objectives — Community Development ' 1. Create a quarterly joint review process with the Planning and Zoning Commission to review existing issues and new initiatives related to planning and zoning. a. Create a stepped program and curriculum for the training of Planning and Zoning Commissioners that address both the legal and community responsibilities of the positions and recognizes the need for continued talent and expertise at this level. b. Facilitate the attendance of new commissioners to New Commissioners training programs, along with subscription services to appropriate planning books and periodicals along with building up the existing in house media library. c. Provide through the Borough clerk's office training for the proper and legal process for meetings to ensure fair and equitable treatment of Borough citizens. 2. Create and implement a phased plan for updating the Comprehensive Plan with maximum public input and review for update and incorporation of the various area plans. a. To the extent possible, merge the Coastal Zone Management Plan with the Borough Comprehensive Plan to maximize efficiencies and minimize confusion. 3. Review existing zoning ordinances with a focus on minimizing the amount of zones where 1 possible to mitigate confusion. a. Periodically review adopted zoning districts to ensure that they are appropriate and focused on the needs and direction provided by the Comprehensive Plan. b. Review and analyze area zoning to determine the need and potential placement of Industrial property zoning if needed. I Page 23 1 4. Continue to work towards maximum service delivery and minimal staffing levels by increasing use and efficiencies of existing assets and state /federal planning grants and efforts. a. Seek out and utilize other State and Federal planning programs and integrate them with existing Borough planning needs to maximize resources. E. Emergency Services Planning — Community Development 1. Continue to work with the City of Kodiak and other emergency responders in providing up -to -date emergency plans. a. Continue to seek out and implement grant programs to aid in funding the update of emergency plans, responder's equipment purchases, and training opportunities. b. Provide opportunities to ensure that all emergency personnel and Incident Command Center staff are fully trained to perform their tasks in the case of emergency. c. Continue to educate the public as to responses and procedures in the cases of emergency F. Community Health Goals and Objectives 1. Create long -term facilities Master plan for the Hospital and Counseling Center. a. Working with the consultant and advisory groups to create a long -term plan for health facility maintenance and construction to serve the needs and changing demographics of the community. b. Complete the unfinished portion of the Hospital and provide space for the Community Health Care Center along with adequate handicapped access and parking. c. Seek out additional Grant Opportunities. 2. Seek to acquire sufficient land to support future Hospital growth that is reflective of the long -term facilities plan for the Hospital. a. Utilizing the product of E. La., seek to acquire sufficient land to serve any future construction needs. 3. Continue to advocate for appropriate full reimbursement of hospital costs and citizen medical expenses by the State, Federal government, and Coast Guard in a fairer manner. 4. Seek out additional grant opportunities. 5. Advocate for the best health care in a coordinated manner with Federal, State, and local agencies. G. Solid Waste Collection and Disposal Goals and Objectives 1. Consolidate existing plans and long -term needs into a comprehensive plan that addresses the solid waste function in an economic and efficient manner. a. Continue to monitor the Solid Waste Rate Study. b. Identify future site for landfill expansion area and options for utilization of existing landfill after closeout. c. Conduct a Solid Waste Management Study /Analysis Survey that looks at options for the future. Page 24 LF u r �I I fj !1 1 ' d. Review and implement any needed operational safety items at the landfill facility that are consistent with federal and state standards. e. Continue to take steps that will extend the existing landfill through recycling and other means for as long as possible without going out of the current permitted area. i f. As part of the plan identify and quantify all forms of subsidies and equate progressive effects such as recycling to the impact on landfill life and the relationship to costs. 2. Evaluate and analyze the recycling program to create a long -term participatory program and plan that is economically sustainable. a. Coordinate with stakeholders and product producers with a focus on rewarding good practices 1 and minimizing solid waste production. b. Identify key sources of the waste stream and, through stakeholder and taskforce methods, address how to minimize the volume and costs of handling those items identified. ' H. Parks and Recreation Goals and Objectives 1. Evaluate and identify those lands under Borough ownership that would be appropriate for parks and recreation facilities, with a goal of a comprehensive Parks and Recreation Plan to guide future decisions. ' a. Review urban areas for potential neighborhood pocket parks in areas of growth. b. Develop standards for playground equipment and related improvements to ensure the highest ' degree of utility at the lowest reasonable cost c. Meet with the Parks and Recreation Committee on a quarterly basis. 2. Create a road system trails plan using public participation and existing trails with a focus on a trail network that is interconnected and allows for maximum use for all citizens. a. Reenergize the Parks and Recreation Committee and complete a trail plan that is web ready and easily accessible for all citizens. 3. Encourage the Parks and Recreation Committee to move ahead with conceptual plans for Mill Bay Park and the End of the Road Park. I. Economic Development Goals and Objectives 1. Maintain vigilance and effective participation in fishery politics and legislation that advocates for long -term preservation of landings of product to the Borough and ensures any environmental restrictions on fisheries are based on sound science and fairly reflect any socio- economic impacts on our region. a. Pursue a comprehensive and effective program that leads to sustainable and economically productive fisheries that ensure the long -term health of the fishery habitat and ecosystem. b. Find and work with industry representatives that have a regional and cooperative focus to assist in the direction of efforts and resources in affecting fisheries policy and legislation. c. Determine and foster strategies to create a statewide force to offset negative, incorrect, or misleading information about fisheries. 1 I Page 25 J 2. Actively pursue development of airport capacity and look for opportunities for fish cargo. 3. Continue to pursue high quality telecommunications access through fiber optics and Internet access to outlying areas. a. Ensure that telecommunications are integrated into the long -term plans that allow for maximum efficiencies and minimize redundancies through use of common easements and infrastructure. 4. Review ways to promote, encourage, and support the development of small businesses/home businesses including those in the outlying communities. I Animal Control Goals and Objectives 1. Continue to support a program that protects the public and animals in a cooperative cost effective and efficient manner. a. Continue to have the Community Development Department monitor the contract to ensure conflicts are minimized and public health and safety are maximized. L fl Page 26 1 FINANCIAL SUMMARIES P 1 1 1 �I FINANCIAL SUMMARIES FUND STRUCTURE The Borough accounts are organized on the basis of fund and account groups, each of which is considered a separate accounting entity. Operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses as appropriate. Borough resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds in this report are grouped into five generic fund types within two broad fund categories. Governmental Fund Types General Fund - The General Fund is the operating fund of the Borough and is used to account for all financial resources, except those that are required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specific purposes. We include neighborhood service districts such as road, fire and street lighting, as well as maintenance of our buildings and grounds in this fund type. Debt Service Funds - The Debt Service Funds are used to account for the accumulation of, resources for, and the payment of general long -term debt principal, interest, and related costs. The bulk of our debt is in the form of general obligation bonds which are accounted for primarily in one large debt service fund. Capital Proiect Funds - Capital Projects Funds are used to account for financial resources to be used for acquisition or construction of major capital facilities and equipment. We use these funds to track our projects funded by bond revenue, grants and other large maintenance projects. Proprietary Fund Types Enterprise Funds - Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges, or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The Borough has four Enterprise Funds: Municipal Solid Waste, Hospital Facility, the Kodiak Fisheries Research Center and 911 Emergency Telephone Services. Page 27 FISCAL POLICY This fiscal policy, adopted March 15, 1990, is a statement of the guidelines and goals that will influence and guide the financial management practices of the Kodiak Island Borough. A fiscal policy that is adopted, adhered to, and regularly reviewed is recognized as the cornerstone of sound financial management. Effective fiscal policy: contributes significantly to the Borough's ability to insulate itself from a fiscal crisis; enhances long -term financial credibility by helping to achieve the highest bond and credit ratings possible; promotes long -term financial stability by establishing clear and consistent guidelines; directs attention to the total financial picture of the Borough rather than single -issue areas; promotes the view of linking long -run financial planning with day to day operations; and provides the Assembly and the citizens of the Borough with a framework for measuring the fiscal impact of government services against established fiscal parameters. To these ends, the following fiscal policy statements are provided: 1. Operating Budget Policies The budget is a plan for allocating resources. The objective is to enable service delivery with allocated resources. Services must be delivered to the citizens at a level that will meet real needs as efficiently and effectively as possible. The Borough's goal is to pay for all recurring expenditures with recurring revenues and to use non - recurring revenues for non - recurring expenditures. It is important that a positive undesignated fund balance and a positive cash balance be shown in all governmental funds at the end of each fiscal year. When deficits appear to be forthcoming within a fiscal year, spending during the fiscal year must be reduced sufficiently to create a positive undesignated fund balance and a positive cash balance. When possible, the Borough will integrate performance measurement and productivity indicators within the budget. This should be done in an effort to improve the productivity of Borough programs and employees. Productivity analysis should become a dynamic part of the Borough administration. The budget must be structured so that the Assembly and the general public can readily establish the relationship between expenditures and the achievement of service objectives. The individual department and agency budget submissions must be prepared with the basic assumption that the Assembly will always attempt to maintain the current tax rates. Budgetary review by the Assembly will focus on the following basic concepts: Staff Economy The size and distribution of staff will be a prime concern. The Assembly will seek to limit staff increases to areas where approved program growth and support absolutely requires additional staff and to reduce staff where this can be done without adversely affecting approved service levels. Capital Construction Page 28 1 it 1 t 1 1 i 1 1 i 1 1 1 1 1 1 1 1 1 1 1 1 1 Emphasis will be placed upon continued reliance on a viable level of pay -down capital construction to fulfill needs in an Assembly approved comprehensive capital improvements program. Program Expansions Proposed expansion to existing programs and services must be submitted as budgetary increments requiring detailed justification. Every proposed program or service expansion will be scrutinized on the basis of its relationship to the health, safety, and welfare of the community. New Programs New programs or services must also be submitted as budgetary increments requiring detailed justification. New programs or services will be evaluated on the same basis as program expansion plus an analysis of long term fiscal impacts. Existing Service Costs The justification for base budget program costs will be a major factor during budget review. Administrative Costs In all program areas, administrative overhead costs should be kept to an absolute minimum. Functions of all departments and agencies should be reviewed in an effort toward reducing duplicate activities within the Borough government and the autonomous and semi - autonomous agencies, which receive appropriations from the Borough. The budget will provide for adequate maintenance of capital plant and equipment and for its orderly replacement. The administration will maintain budgetary controls at the character level within each organizational unit. (Characters are broad classifications of expenditures: fringe benefits, contractual services.) The preparation and distribution of monthly budget status reports, interim financial statements, and annual financial reports is required. The Borough will remain current in payments to the retirement system. The Borough will develop and annually update a long -range (three to five years) financial forecasting system that will include projections of revenues, expenditures, and future costs and financing of capital improvements that are included in the capital budget. The Borough will develop and annually update a financial trend monitoring system which will examine the fiscal trends from the preceding five years- -trends such as revenues and expenditures per capita and adjusted for inflation, liquidity, or operating deficits. Where possible, trend indicators will be developed and tracked for specific elements of the Borough's fiscal policy. Debt Policies The Borough will not fund current operations from the proceeds of borrowed funds. The Borough will confine long -term borrowing to funding of capital improvements or projects that cannot be financed from current revenues. When the Borough finances capital projects by issuing bonds, it will repay the debt within a period not to exceed the expected useful life of the project. Page 29 1 3. 4. Target debt ratios will be annually calculated and included in the review of financial trends. Net debt, as a percentage of the estimated market value of taxable property should not exceed two percent. The ratio of debt service expenditures as a percent of governmental fund expenditures should not exceed 15 percent. The Borough recognizes the importance of underlying and overlapping debt in analyzing financial conditions and will regularly analyze its indebtedness. The Borough will maintain good communications about its financial condition with bond and credit institutions. The Borough will follow a policy of full disclosure in every annual financial statement and bond official statement. The Borough will avoid borrowing on tax anticipation and maintain an adequate fund balance. Revenue Policies The Borough will try to maintain a diversified and stable revenue structure to shelter it from short-run fluctuations in any single revenue source. The Borough will attempt to maintain a diversified and stable economic base by supporting policies that promote tourism, fishing, agriculture, commercial, and industrial employment. The Borough will estimate its annual revenues by an objective, analytical process. The Borough, where possible and reasonable, will institute user fees and charges for specialized programs and services. Rates will be established to recover operational, as well as capital or debt service costs. The Borough will regularly review user fee charges and related expenditures to determine if pre - established recovery goals are being met. The Borough will maintain a sound, consistent, and equitable ad valorem property tax assessment program. The Borough will follow an aggressive policy of collecting tax revenues where the annual level of uncollected current property tax should not exceed two percent. The Borough should routinely identify governmental aid funding possibilities. However, before applying for and accepting intergovernmental aide, the Borough will assess the merits of a particular program as if it were funded with local tax dollars. Local tax dollars will not be used to make up for losses of intergovernmental aid without first reviewing the program and its merits as a budgetary increment. Investment Policies J F� 1 The Borough will maintain an investment policy based on the Government Finance Officers Association (GFOA) model investment policy. The Borough will conduct an analysis of cash flow needs on an ongoing basis. Disbursements, collections, and deposits of all funds will be scheduled to ensure maximum cash availability and investment potential. When permitted by law, the Borough will pool its various funds for investment purposes. The Borough will obtain the best possible return on all investments consistent with the underlying criteria of liquidity and safety of principal. The Borough will regularly review contractual opportunities for consolidated banking services. Page 30 n t 1 i. i 1 i 1 1 6. 7. Accounting, Auditing, and Reporting Policies The Borough will establish and maintain a high standard of accounting practices in conformance with Generally Accepted Accounting Principals (GAAP). The accounting system will maintain records on a basis consistent with accepted standards for government accounting according to the Government Accounting Standards Board (GASB). Regular monthly financial statements and annual financial reports will present a summary of financial activity by departments and agencies within all funds. Where possible, the reporting system will also provide monthly information on the total cost of specific services by type of expenditure and revenue by fund. An independent firm of certified public accountants will perform an annual financial and compliance audit and will publicly issue an opinion, which will be incorporated into the Comprehensive Annual Financial Report (CAFR). The Borough will annually strive for the GFOA Certificate of Achievement for Excellence in Financial Reporting and the GFOA Distinguished Budget Presentation Award. Capital Budget Policies The Borough will make all capital improvements in accordance with an adopted capital improvements program. The Borough will develop a multi -year plan for capital improvements that considers its development policies and links the development process with the capital plan. The Borough will enact an annual capital budget based on the multi -year capital improvements program. The Borough will coordinate development of the capital improvement budget with development of the operating budget. Future operating costs associated with new capital projects will be projected and included in operating budget forecasts. The Borough will maintain all its assets at a level adequate to protect its capital investments and to minimize future maintenance and replacement costs. The Borough will identify the "full- life" estimated cost and potential funding source for each capital project proposal before it is submitted to the Assembly for approval. The Borough will determine the total cost for each potential financing method for capital project proposals. The Borough will identify the cash flow needs for all new projects and determine which financing method best meets the cash flow needs of the project. Reserve Policies The Borough will maintain a fund balance designation for fiscal cash liquidity purposes; i.e. fiscal reserve that will provide sufficient cash flow to minimize the potential of short-term tax anticipation borrowing. The Borough will maintain appropriated contingencies to provide for unanticipated expenditures. The three contingencies and their recommended minimum funding levels are: Emergency Contingency 1.00% of General Fund Personnel Contingency .50% of General Fund Litigation Contingency .25% of General Fund Page 31 The Borough will maintain sufficient self - insurance reserves, as established by professional judgment, based on the funding ' techniques utilized and the recorded losses. For fiscal year 2007 these are the levels of funding required to meet these needs. Basically this is unencumbered fund balance ' in the General Fund: Emergency Contingency $12,151,092 X 1% _ $121,511 Personnel Contingency 12,151,092 X .5% = 60,755 Litigation Contingency 12,151,092 X .25% = 30,378 Total $212,694 The $1,908,426 unreserved fund balance in the General Fund easily covers these amounts. Page 32 1 t ' Fund Summary 289,880 399,150 749,595 635,388 1,804,873 3,479,736 - - - 399,150 96,700 - - 96,700 706,980 - 1,910,302 - 2,617,282 Total Available Funds Fire Districts Expenditures Budget Summary, All Funds Health & Welfare ' Assessing Public Safety ' 12,060 1 Fiscal Year 2007 Special Debt Capital - - 400,291 3,759,523 4,159,814 General Revenue Service Projects Enterprise - - # IN III Fund Funds Funds Funds Funds Total 396,450 1,176,500 Estimated Beginning Balance $ 1,908,426 $41,790,785 $ (81,512) 21,295,898 $ 30,531,618 $ 95,445,215 Revenues $13,642,416 $ 4,148,255 $ 3,431,810 $ 5,530,823 $ 7,616,155 $ 34,349,459 ' Estimated Funds Available 6/30/07 $ 1,754,130 $ 41,370,385 $ (81,512) $ 15,872,515 Non Ad Valorem Taxes $276,700 - - - - 276,700 ' Payment in Lieu of Taxes $765,000 - - - - 765,000 Rents &Royalties - 461,980 - - 2,086,800 2,548,780 User Fees - - - - 3,724,610 3,724,610 ' Federal Revenues State Revenues $350,075 $1,867,870 - - 134,930 $1,780,665 70,187 = 420,262 3,783,465 Miscellaneous $60,200 155,280 - 37,253 103,913 356,646 ' Sale of Fixed Assets $0 289,880 399,150 749,595 635,388 1,804,873 3,479,736 - - - 399,150 96,700 - - 96,700 706,980 - 1,910,302 - 2,617,282 Total Available Funds Fire Districts Expenditures 807,090 Health & Welfare ' Assessing Public Safety Resource Management 12,060 1 KB Buildings 289,880 399,150 749,595 635,388 1,804,873 3,479,736 - - - 399,150 96,700 - - 96,700 706,980 - 1,910,302 - 2,617,282 Page 33 $15,396,546 $45,518,640 $ 3,350,298 $ 21,403,338 $ 36,573,441 $122,242,263 Fire Districts - 807,090 - 445,780 - 1,252,870 Public Safety 141,440 12,060 - 67,647 - 221,147 Solid Waste - - - 400,291 3,759,523 4,159,814 Capital Outlay - - - - - - # IN III y e Transfers Out 396,450 1,176,500 - - - 1,572,950 ' Total Use of Funds $13,642,416 $ 4,148,255 $ 3,431,810 $ 5,530,823 $ 7,616,155 $ 34,349,459 Estimated Funds Available 6/30/07 $ 1,754,130 $ 41,370,385 $ (81,512) $ 15,872,515 $ 28,957,286 $ 87,892,804 Page 33 $15,396,546 $45,518,640 $ 3,350,298 $ 21,403,338 $ 36,573,441 $122,242,263 1 Three Year Budget Overview Sale of Fixed Assets Sale of Bonds TRANSFERS IN 850,000 227,637 157,027 236,700 1,356,067 1,480,155 1,645,145 EXPENDITURES Assessing 246,884 358,833 399,150 Gereral Fund Special Revenue Funds Debt Service Funds 683,420 FY05 FY06 FY07 FY05 FY06 FY07 FY05 FY06 FY07 75,425 Actual Estimated Budgeted Actual Estimated Budgeted Actual Estimated Budgeted REVENUES P� Road Maintenance EN Payment in Lieu of Taxes 801,270 817,304 .. 765,000 4 OW !a.. . . . Severance Taxes 1,005,538 1,186,907 1,070,000 12,060 sib. Penalties & Interest on Taxes 204,612 164,978 150,000 Licenses 8 Permits 107,058 93,716 104,500 21,000 21,000 21,000 Federal Revenues 335,857 378,770 350,075 - - - - State Revenues 800,495 891,870 1,867,870 77,230 108,068 114,930 942,687 $2,146,406 1,780,665 Sale of Fixed Assets Sale of Bonds TRANSFERS IN 850,000 227,637 157,027 236,700 1,356,067 1,480,155 1,645,145 EXPENDITURES Assessing 246,884 358,833 399,150 Community Development 531,199 577,112 683,420 - - - Child Care Assistance 75,425 77,225 89,280 r „ „ P� Road Maintenance 574,527 344,428 404,715 Fire Districts 445,837 537,279 807,090 Public Safety 145,260 169,928 141,440 12,542 8,859 12,060 sib. N •_ ... Page 34 n J 1 1 t 1 1 Capital Projects Funds Enterprise Funds TOTAL ' FY05 FY06 FY07 FY05 FY06 FY07 FY05 FY06 FY07 Actual Estimated Budgeted Actual Estimated Budgeted Actual Estimated Budgeted 1 i I Page 35 801,270 817,304 765,000 Payment in Lieu of Taxes 1,005,538 1,186,907 1,070,000 Severance Taxes 204,612 164,978 150,000 Penalties & Interest on Taxes 1 1000000M I Messes _ 128,058 114,716 125,500 Licenses & Permits 2,586,607 70,187 2,922,464 378,770 420,262 Federal Revenues 331,093 153,424 1,068,699 2,151,505 3,299,768 4,832,164 State Revenues - = Sale Sale of Fixed Assets ' 20,352,760 _ 20,352,760 - Sale of Bonds 216,508 114,000 390,000 66,500 2,650,212 1,817,682 2,271,845 TRANSFERS IN EXPENDITURES 246,884 358,833 399,150 Assessing 531,199 577,112 683,420 Community Development ' 75,425 77,225 89,280 Child Care Assistance I� 574,527 445,837 344,428 537,279 404,715 Road Maintenance 807,090 Fire Districts 157,802 Y �.. 178,787 153,500 Public Safety 3,070,360 3,431,810 5,530,823 3,070,360 3,431,810 5,530,823 Capital Outlay - - - 22,547 75,127 941,000 Other 35,593 884,248 723,485 969,593 TRAN FERE U ' = , 1 i I Page 35 Kodiak Island Borouah F.Y. 2007 Mill Rates Page 36 Street Street Tide Borough City of Road Road Road Road Fire Fire Fire Light Light Gate Fund Kodiak Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total Tax Code Area (TCA) 100 240 242 244 246 250 252 254 260 261 262 TCA 1 10.50 2.00 12.50 City of Kodiak TCA 2 10.50 1.25 1.50 0.00 13.25 Woodland Acres Street Lighting Fire Protection Area No. 1 Service Area No. 1 TCA 3 10.50 1.25 11.75 KIB Airport Fire Protection Area TCA 4 10.50 1.00 1.50 13.00 Bayview Road Service Area Fire Protection Area No. 1 TCA 5 10.50 10.50 Entire Borough (excluding special assessment areas) TCA 6 10.50 2.50 1.50 14.50 Monashka Bay Road Service Area Fire Protection Area No. 1 *Properties w ith no road service 10.50 1.50 12.00 TCA 7 10.50 1.25 1.50 13.25 Service Area No. 1 Fire Protection Area No. 1 *Properties w ith no road service 10.50 1.50 12.00 TCA 71 10.50 1.25 1.50 1.00 14.25 lAssion Lake Tide Gate Area *Properties w ith no road service 10.50 1.50 1.00 13.00 TCA 72 10.50 1.25 1.50 0.50 13.75 Trinity Islands Street Lighting TCA 8 10.50 1.50 12.00 Fire Protection Area No. 1 TCA 9 10.50 2.00 1.25 13.75 Womens Bay Rd & Fire Service Area *Properties w ith no road service 10.50 1.25 11.75 Page 36 10.50 ' 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Fiscal Year Page 37 12.00 10.00 8.00 TEN - YEAR ANALYSIS I OF TAX RATE AND LEVY ' A � 6.00 f Fiscal Personal Property Real Property Total Mill Total 4.00 Year Assessed Value Assessed Value Assessed Value Rate Tax Lew ' 1998 107,599,892 573,745,998 681,345,890 9.25 6,302,449 1999 109,304,683 577,551,709 686,856,392 9.25 6,353,422 ' 2000 2001 120,878,748 121,849,192 594,870,287 626,906,351 715,749,035 748,755,543 9.25 9.25 6,620,679 6,925,989 2002 116,117,838 635,934,054 752,051,892 9.25 6,956,480 2003 117,456,245 642,995,612 760,451,857 9.25 7,034,180 2004 110,941,504 659,695,261 770,636,765 9.25 7,128,390 2005 105,481,537 678,427,713 783,909,250 10.25 8,035,070 2006 106,206,504 692,709,445 798,915,949 11.00 8,788,075 ' 2007 98,373,784 710,862,618 809,236,402 10.50 8,496,982 Note: FY2007 is an estimated figure Tax Rate Per $1,000 ' Last Ten Years 10.50 ' 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Fiscal Year Page 37 12.00 10.00 8.00 A � 6.00 f 1 4.00 2.00 0.00 10.50 ' 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Fiscal Year Page 37 Assessed Values - Last Ten Years 999,000,000 800,000,000 700,009,000 600,000,000 d 500,000,000 i aao,aoo,000 300,000,000 200,000,000 100,000,000 1998 1999 2000 2001 2002 2003 2000 Fleeal Y— �Peraonel Property •Real Properly �Tolal Asaeeeed V81W 2005 2006 2007 State Shared Revenues 1,200,000 1,000,000 800,000 600,000 400,000 200,000 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Page 38 GENERAL FUND GENERAL FUND Revenue Sources and General Fund Estimates The largest source of revenue for the general fund continues to be property taxes at 71 %. Intergovernmental revenue constitutes approximately 16% of general fund revenues. The Borough instituted a severance tax in fiscal year 1992, which will account for 7.5% of Borough revenue in fiscal year 2007. GENERAL FUND REVENUE SUMMARY General Fund Revenues Severance Tax 7.5% Property 71.0° Tnits rgovemmental Revenues 16.3% Interest Earnings 2.9% Aiscellaneous Revenues 0.4% se of Fund Balance 1.1% Page 39 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2004 Actual 2005 Actual 2006 Budget 2006 Actual 2007 Budget Property Tax $8,199,100 $9,174,547 $9,880,290 $10,011,140 $9,688,682 Severance Tax 799,693 1,005,538 965,030 1,186,907 1,016,793 Licenses & Permits 118,030 107,058 104,500 93,716 104,500 Intergovernmental Revenues 1,201,694 1,136,352 1,230,155 1,270,640 2,217,945 Interest Earnings 105,813 265,392 300,000 452,829 400,000 Miscellaneous Revenues 895,139 42,348 57,200 61,772 60,200 Use of Fund Balance 0 0 688,693 0 154,296 Total $11,319,469 $11,731,235 $13,225,868 $13,077,004 $13,642,416 General Fund Revenues Severance Tax 7.5% Property 71.0° Tnits rgovemmental Revenues 16.3% Interest Earnings 2.9% Aiscellaneous Revenues 0.4% se of Fund Balance 1.1% Page 39 r PROPERTY TAXES Real and Personal Property Taxes. Alaska Statutes (AS) 29.45.010- 29.45.500 gives municipalities the authority to levy a property tax. The Kodiak Island Borough's tax revenue for fiscal year 2007 is based on the assessed valuation as of January 1, 2006. That value is estimated to be $809,236,402. KIB has set the tax levy for real and personal property at 10.50 mills, which will generate estimated property tax revenue of $8,496,982 with 88% being from real property and 12% being from personal property. The current delinquency rate is .3 %(three tenths of I%). For budget purposes, the amount of tax generated by one (1) mill is $809,000. Penalty and Interest on Taxes Receivable. AS 29.45.650 and KIB Code of Ordinances establishes the authority to apply penalties and interest on delinquent property taxes. The KIB levies a penalty of 10% for late payments and interest at the rate of 12% per annum on past due amounts. The Borough does not recognize the receivable at the time penalties and interests are applied to the accounts; it is recognized when the payment is made. Based on past collections, a conservative estimate of revenue is $150,000. NON AD VALOREM TAXES Motor Vehicle Tax. AS 29.10.431 allows the Division of Motor Vehicles to collect property tax on motor vehicles on behalf of municipalities and boroughs. The property tax is a flat rate based on the type of vehicle and the year of the vehicle. The tax is collected along with the biannual registration fee and remitted to the Borough on a monthly basis. This method of collection was created in anticipation of reducing the delinquency rate for personal property taxes and improves collection of taxes on vehicles. KIB has increased this rate for FY2007 and estimates revenue from this source at $250,000. PAYMENT IN LIEU OF TAXES PELT — Federal. Payments in Lieu of Taxes (PILT) are Federal payments to local governments that help offset losses in property taxes due to nontaxable Federal lands within their boundaries. PILT payments are made annually for tax- exempt Federal lands administered by the BLM, the National Park Service, the U.S. Fish and Wildlife Service (all agencies of the Interior Department), the U.S. Forest Service (part of the U.S. Department of Agriculture), and for Federal water projects and some military installations. Congress appropriates PILT payments each year. The BLM allocates payments according to a formula in the PILT Act that includes population, receipt - sharing payments, and the amount of Federal land within an affected borough. The estimated amount for 2007 PILT revenue, $750,000, is based on what was received in fiscal year 2005 as we have not yet received the FY06 payment. SEVERANCE TAXES The Kodiak Island Borough levies a tax on certain natural resources that are severed or harvested within the boundaries Kodiak Island Borough. The tax rate is the borough -wide mill levy, which is currently 10.50 mills. The resources that we collect taxes on are grouped into three categories: 1) fish, 2) rock, sand and gravel (mining), and 3) timber (logging). Rock, Sand and Gravel Severance Tax. To estimate the value for rock, sand and gravel KIB looked at the construction industry. The main source of extraction for this category is rock. The rock is sold to construction companies for their building lots and road construction. Based on the revenues generated in fiscal years 2004 and 2005, the estimated revenue for 2007 is $9,555. Timber Severance Tax. The estimated value for timber is $57,278, based on a projection of revenue received to date in the current fiscal year. The severance tax on logging has been in a state of decline for several years now, due to a decreased demand from Asian markets. It should be noted that in FYI 997 we received $272,000 and the mill rate was only 9.25 mills. Fish Severance Tax. Budgeting for fish severance tax involves many factors. How many fish will be available for harvesting? What countries will be buying our fish? What will the price per pound be? What will the environmental issues be? Does the market prefer wild fish to farmed fish? Many of these variables are very difficult to predict and with these issues in mind, the Borough is budgeting fish tax for 2007 at $950,000. Overall the 2006 severance tax is estimated to be just over $1 million. For budget purposes, the amount of tax generated by one (1) mill is $96,840. Page 40 i C 7 L 7 1 1 Severance Taxes 1,200,000 1,000,000 800,000 600,000 400,000 200,000 ■Fish ■Mining ■Timber 0 k LICENSES AND PERMITS Licenses and permits are revenues associated with the building industry. The largest portion of revenue in this category is building permits, which can be attributed to the low interest rates on home mortgages in rural areas throughout the State of Alaska. According to the requests made to the Planning and Zoning Commission, it looks as though the building sector is remaining constant, so we have budgeted these revenues based on past year's averages at $80,000 for fiscal year 2007. The total budgeted amount for licenses and permits is $104,500. INTERGOVERNMENTAL REVENUES Federal Shared Revenues National Wildlife Refuge. The Revenue Sharing Act authorizes payments to local governments whose jurisdiction includes land being administered by the Fish and Wildlife Service (FWS). The payment that we receive is based on a percentage of the fair market value of lands that the FWS has acquired, the number of acres they hold, and a percentage of net receipts the FWS collected in their previous fiscal year. This payment is a form of payment in lieu of taxes but the land owned by the FWS is not the same land owned by Fish and Wildlife that generates a portion of the PILOT — Federal payment. The difference is that the land under the National Wildlife Refuge revenue was previously owned by private individuals and was taxable. The FWS purchased the land to add to the Wildlife Refuge that they manage on Kodiak Island. The revenue from this source has fluctuated between $335,000 and $420,000 over the past four years; as such, we are budgeting $350,000 for FY07. State Revenues Energy Assistance (Revenue Sharing). The State of Alaska enacted a revenue sharing program for FY2007. The State has said that this is a one time program. This program was essentially revenue sharing. The Borough will receive $1,039,873 from this program in FY2007. Page 41 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Fish Tax Revenue Sharing. AS 43.75 and 43.77 authorizes the State to levy taxes on fisheries businesses. A portion , of the tax is refunded to municipalities and boroughs. There are two types of fishery taxes. One is the fisheries business tax (A 43.75) and it levies the tax on businesses and persons who process or export fisheries resources from Alaska. The tax is based ' on the value paid to commercial fishers. The rate of the tax is based on the processing activity of the business. The processing activity is classified as either "established" or "developing" by the Alaska Department of Fish and Game. The rates are as follows: Established DeveloninQ ' Floating 5% Floating 3% Salmon Cannery 4.5% Shore -based 1% ' Shore -based 3% Fisheries businesses file with the State on a calendar year. Their tax returns are due by March 31 of the following year. From the taxes collected, the Department of Revenue distributes the taxes based on locale of the business. ' Municipalities will receive 50% of the tax collected from businesses within their jurisdiction. If the tax is collected within a city as well as a borough, the payment will be split equally between the borough and the city. For those businesses that operate outside a municipality or organized borough 50% of those funds collected are shared through an allocation program ' administered by the Alaska Department of Community and Economic Development. The other fishery tax is the fishery resource landing tax (AS43.77). This tax is levied on processed fishery resources first landed in Alaska. The tax is based on the unprocessed value of the resource. This value is determined by multiplying a , statewide average price per pound (based on Alaska Department of Fish and Game data) by the unprocessed weight. This tax is primarily collected from factory trawlers and floating processors which process fishery resources outside of the state's 3- mile limit and bring their products to Alaska for transshipment. ' This tax is also based on a calendar year and is to be filed by March 31. The rate is based on classification. The Alaska Department of Fish and Game determines whether the resource is "established "' or "developing ". The rates are as follows: established 3 %, and developing 1 %. The tax collected in this category is distributed in the same manner as the fisheries business tax. Budgeting for this revenue is difficult. As with our severance tax on raw fish there are many factors. Not only do we ' need to consider the number of fish available for harvesting, the market price of fish at the time of purchase, environmental and market issues, we do not know all of the businesses filing with the State, we also do not know the statistics of the tax collected outside the municipalities and unorganized boroughs. For budgeting purposes, we look at the prior year's revenues and the factors that are known and budget accordingly. This method estimated 2007 fish tax revenue to be $800,000. , 1 i� Page 42 1 Fish Tax Revenue sharing 1,500 1,000 S C 500 0 T F17d Y— 177E 1770 2000 2001 2002 2003 2004 2005 200E 2007 INTEREST EARNINGS Interest Earned on Investments. KIB Code of Ordinances sections 3.04.01 through 3.04.030 establish the guidelines and responsibilities of the Finance Director in investment and treasury management matters. For efficiency, the KIB has established a central treasury of pooled resources. In fiscal year 2007 the General Fund is expected to have approximately $7,000,000 held in investments. With an expected return of rate between 4.5% and 5.0 %, we are estimating interest revenue to be $400,000. Interest Earnings 700,000 000,000 500,000 400,000 300,000 200,000 100,000 Page 43 0 1998 1999 2000 2001 2002 2003 2004 2005 2000 2007 MISCELLANEOUS REVENUE Miscellaneous Revenue. This category includes revenues generated from animal control, sale of copies, sale of ' computer data and passport fees and other miscellaneous revenue. For fiscal year 2007, total miscellaneous revenue is budgeted at $59,200. Recently the federal government announced that a passport would be required to pass through Canada from the "lower 48" coming or going to Alaska. This should increase our revenue from passports significantly. S 1 i Page 44 1 FUND BALANCE General Fund Balance. It is the goal of the KIB to maintain a General Fund balance of 1 to 2 million dollars. The following charts show the Fund Balance for the last ten years and the changes that took place. General Fund Balance Last Ten Years with FY2007 Projected 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 We estimate a fund balance of $1,908,426 for the fiscal year ending June 30, 2006. For fiscal year 2007 we are anticipating using $154296 of fund balance, leaving an ending balance of $1,754,130. CHANGES IN GENERAL FUND BALANCE LAST TEN YEARS 2,000,000 1,500,000 1,000,000 500,000 0 - 500,000 - 1,000,000 - 1,500,000 1,419,159 359,056 277,163 305,385 83,414 (284,484) (154,296) (479,736) (785,746) (1,034,727) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Page 45 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 GENERAL FUND REVENUE Page 46 r 7 11 L J F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Property Tax Real Property $6,076,102 $6,962,534 $7,614,300 $7,763,979 $7,464,057 Personal Property 981,285 995,953 1,167,990 1,107,316 1,032,925 TOTAL PROPERTY TAXES $7,057,387 $7,958,487 $8,782,290 $8,871,295 $8,496,982 Non Ad Valorem Taxes Boat Tax - over 5 tons $7,275 $6,575 $8,000 $7,547 $26,700 Motor Vehicle Tax 165,148 203,603 180,000 150,016 250,000 TOTAL NON AD VALOREM TAXES $172,423 $210,178 $188,000 $157,563 $276,700 Payment in Lieu of Taxes PILT - Federal $808,739 $789,053 $745,000 $803,246 $750,000 PILT - Kodiak Island Housing 24,728 12,217 15,000 14,058 15,000 TOTAL PAYMENT IN LIEU OF TAXES $833,467 $801,270 $760,000 $817,304 $765,000 Severance Taxes Fish $746,118 $980,109 $903,060 $1,108,742 $949,960 Mining 6,822 8,416 6,640 15,425 9,555 Logging 46,753 17,013 55,330 62,740 57,278 TOTAL SEVERANCE TAXES $799,693 $1,005,538 $965,030 $1,186,907 $1,016,793 Penalties and Interest Tax Penalties and Interest $135,823 $204,612 $150,000 $164,978 $150,000 TOTAL PENALTIES & INTEREST TAX $135,823 $204,612 $150,000 $164,978 $150,000 Licenses and Permits Building Permits $91,227 $77,597 $80,000 $69,670 $80,000 Subdivision 6,995 4,500 7,000 6,525 7,000 Conditional Use Permit 2,050 2,575 2,000 0 2,000 Zoning Compliance 3,820 4,500 4,000 7,390 4,000 Exception 0 0 500 0 500 Variance Fee 250 1,500 500 850 500 Zoning Change Fee 450 250 500 1,500 500 Electric Permit 8,943 6,529 5,000 4,178 5,000 Plumbing Permit 3,887 3,742 3,000 3,453 3,000 Planning & Zoning (P&Z) Review Fee 75 75 500 150 500 Dog License 333 5,790 1,500 0 1,500 TOTAL LICENSES AND PERMITS $118,030 $107,058 $104,500 $93,716 $104,500 INTERGOVERNMENTAL REVENUES Federal Shared Revenue National Wildlife Refuge $379,039 $335,788 $400,000 $378,700 $350,000 National Forest Fund 68 69 75 70 75 TOTAL FEDERAL SHARED REVENUE $379,107 $335,857 $400,075 $378,770 $350,075 Page 46 r 7 11 L J 1 1 ' Interest Interest Earnings Change in market value TOTALINTEREST [1 Miscellaneous - Classified Jury Duty Sale of Copies Sale of Maps Sale of Computer Data Fee - Dishonored Checks Other Passport Fees TOTAL MISC. CLASSIFIED Use of Fund Balance Operating Transfers In Land Sale Building and Grounds Hospital Capital Projects TOTAL OPERATING TRANSFERS IN Sale of Fixed Assets Sale of General Fixed Assets TOTAL SALE OF FIXED ASSETS TOTAL REVENUES, OTHER FINANCING SOURCES AND TRANSFERS IN F.Y. 2004 F.Y. 2005 F.Y. 2006 State Shared Revenues F.Y. 2007 State Revenue Sharing ' Municipal Assistance ACTUAL Temporary Fiscal Relief $0 Raw Fish Tax $0 Raw Fish Tax - Off Shore ' Fisheries Revitalization Aid 0 Telephone and Electric 0 TOTAL STATE SHARED REVENUES 146,321 TOTAL INTERGOVERNMENTAL 0 Fines 0 Animal Control ' Zoning Violations 802,313 TOTAL FINES ' Interest Interest Earnings Change in market value TOTALINTEREST [1 Miscellaneous - Classified Jury Duty Sale of Copies Sale of Maps Sale of Computer Data Fee - Dishonored Checks Other Passport Fees TOTAL MISC. CLASSIFIED Use of Fund Balance Operating Transfers In Land Sale Building and Grounds Hospital Capital Projects TOTAL OPERATING TRANSFERS IN Sale of Fixed Assets Sale of General Fixed Assets TOTAL SALE OF FIXED ASSETS TOTAL REVENUES, OTHER FINANCING SOURCES AND TRANSFERS IN F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET $0 $0 $0 $0 $1,039,870 0 0 0 0 0 146,321 0 0 0 0 573,595 717,066 802,300 802,313 800,000 76,333 56,224 1,780 62,877 2,000 0 0 0 0 0 26,338 27,205 26,000 26,680 26,000 $822,587 $800,495 $830,080 $891,870 $1,867,870 $1,201,694 $1,136,352 $1,230,155 $1,270,640 $2,217,945 $85 $0 $500 $450 $500 0 500 500 0 500 $85 $500 $1,000 $450 $1,000 $105,813 $137,907 $300,000 $238,456 $400,000 (16,014) 127,485 0 214,373 0 $105,813 $265,392 $300,000 $452,829 $400,000 $103 $5 $100 $98 $100 15,408 15,921 24,000 13,465 15,000 1,539 1,123 2,000 995 2,000 1,350 1,350 0 1,100 2,000 35 25 100 50 100 14,109 5,784 10,000 25,556 15,000 12,510 17,640 20,000 20,058 25,000 $45,054 $41,848 $56,200 $61,322 $59,200 $0 $0 $688,693 $0 $154,296 $50,000 $0 $0 $0 $0 200,000 0 0 0 0 0 0 0 0 0 600,000 0 0 0 0 $850,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $11,731,235 5, ,077, $13,642,4 Page 47 1 SUMMARY OF GENERAL FUND EXPENDITURES BY DEPARTMENT GENERAL FUND EXPENDITURES BY DEPARTMENT EXPENDITURES Dept. 100 Borough Assembly Dept. 105 Borough Manager Dept. 110 Borough Clerk Dept. 115 Borough Attorney Dept. 120 Finance Department Dept. 125 Mgmt Information Services Dept. 130 Assessing Dept. 135 Engineering /Facilities Dept. 140 Comm unity Development Dept. 142 Building Inspection Dept. 160 Economic Development Dept. 165 General Administration Dept. 175 Emergency Preparedness Dept. 180 Education Support Dept. 185 Health and Sanitation Dept. 190 Culture and Recreation Dept. 195 Transfers TOTAL EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 ACTUAL ACTUAL BUDGET $137,850 $126,388 $160,230 194,938 355,017 237,150 292,205 304,257 359,570 89,685 112,510 153,200 409,481 556,616 664,770 257,239 381,038 429,213 209,133 246,884 385,820 63,755 76,195 111,980 375,392 443,878 528,270 133,474 139,832 132,230 53,652 87,321 78,000 250,590 327,569 335,970 5,129 5,428 38,800 8,120,996 8,471,132 9,157,560 257,037 254,313 284,320 163,487 127,335 162,335 0 0 6,450 $11,014,043 $12,015,713 $13,225,868 F.Y. 2006 F.Y. 2007 ACTUAL BUDGET $139,053 $161,790 254,891 256,253 359,195 361,490 74,638 130,000 646,475 647,023 402,793 475,838 358,833 399,150 108,542 152,102 502,094 613,420 163,829 132,640 75,018 70,000 257,531 297,370 6,099 8,800 9,128,291 9,082,990 282,884 289,880 158,223 167,220 6,450 396,450 $12,924,839 $13,642,416 F Page 48 1 General Fund Expenditures by Function Culture and Recreation and Welfare 2% ssessing 3% Education 70% Finance/MIS 8% Community Development 5% neral Government 10% I 1% Education support is an area that has been experiencing steady growth in the General Fund budget and currently accounts for 70% of the expenditures projected for FY 2007. Education support has grown from nearly $4.8 million in fiscal year 1997 to a budgeted $9 million in fiscal year 2007, an 87% increase over ten years. GENERAL FUND EXPENDITURES BY FUNCTION Page 49 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2004 Actual 2005 Actual 2006 Budget 2006 Actual 2007 Budget General Government $1,029,023 $1,301,936 $1,358,100 $1,193,850 $1,359,005 Public Safety 138,603 145,260 171,030 169,928 141,440 Education 8,120,996 8,471,132 9,157,560 9,128,291 9,082,990 Culture and Recreation 163,487 127,335 162,335 158,223 167,220 Health and Welfare 257,037 254,313 284,320 282,884 289,880 Assessing 209,133 246,884 385,820 358,833 399,150 Finance /MIS 666,720 937,654 1,093,983 1,049,268 1,122,861 Community Development 429,044 531,199 606,270 577,112 683,420 Transfers Out 0 0 6,450 6,450 396,450 Total $11,014,043 $12,015,713 $13,225,868 $12,924,839 $13,642,416 Page 49 1 PROGRAM BUDGET SUMMARY BOROUGH ASSEMBLY I Program Description The Kodiak Island Borough Mayor and Assembly are elected by the registered voters of the Kodiak Island Borough to , establish policy for the Borough by the Assembly/Manager form of government under which the Borough operates. Goal To protect and improve the quality of life for Borough citizens by determining policy statements that reflect the values, needs, and desires of all Borough residents; and to maximize the delivery of services at the least possible cost. ' Objectives for 2006 -2007 • Ensure funding levels that reflect the priorities of Borough citizens. • Improve efficiency of local government through policy decisions. • Ensure Borough elections are conducted according to all local, state, and federal statutes. • Provide for quality education K -12 and promote education for all citizens. ' Significant Budget Changes No significant budget changes. J Page 50 1 BOROUGH ASSEMBLY EXPENDITURES Page 51 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL ACTUAL BUDGET ACTUAL BUDGET Personnel Services $21,600 $21,300 $21,600 $21,600 $21,600 Fringe Benefits 1,869 2,791 3,630 3,302 5,190 Political Lobbyist 62,000 62,000 62,000 64,250 62,000 Support Goods & Services 52,381 40,297 73,000 49,901 73,000 TOTAL $137,850 $126,388 $160,230 $139,053 $161,790 Page 51 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL ESTIMATED PROJECTED Regular Assembly Meetings 17 18 18 18 Special Meetings 12 10 10 10 Joint Work Sessions 2 2 2 2 Work Sessions 28 27 27 27 SWAMC Conference Attendees 2 3 5 5 AML Conference Attendees 2 6 8 8 Ordinances 14 18 18 18 Resolutions 32 30 30 30 Contracts 51 51 51 51 Other Action Items 56 124 125 125 Page 51 1 PROGRAM BUDGET SUMMARY I MANAGER'S OFFICE 1 Program Description The Assembly of the Kodiak Island Borough appoints the Manager. The manager provides administrative guidance to ' KIB assembly policy decisions, and serves as the chief administrative officer of the Kodiak Island Borough. Goal ' Assist the Assembly with policy implementation and administer quality, cost - effective services to the citizens of the Kodiak Island Borough. Objectives for 2006 -2007 • Implement all of the duties defined in Kodiak Island Borough Code 2.20.030. ' • Implement, within the constraints of time, limited staff, and available funds, the Assembly strategic plan. • Monitor the effectiveness of all Borough operations, and exercise custodianship of Borough property. • Provide the Assembly with administrative support necessary to develop and implement Assembly strategic , policy. • Execute the annual budget and capital improvement program. Significant Budget Changes , No significant changes. ' C k C Page 52 1 MANAGER'S OFFICE EXPENDITURES PERSONNEL F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Personnel Services $148,496 $239,325 $143,920 $155,788 $161,600 Fringe Benefits 44,394 50,771 65,620 68,036 75,433 Contracted Services 0 58,412 0 0 0 Support Goods & Services 27,048 29,392 47,610 51,067 39,220 Capital Outlay 0 0 0 0 0 Allocated to other funds (25,000) (22,883) (20,000) (20,000) (20,000) TOTAL $194,938 $355,017 $237,150 $254,891 $256,253 PERSONNEL Number of Employees Position: F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 Borough Manager 1 1 1 1 Administrative Assistant 1 1 1 1 TOTAL 2 2 2 2 Page 53 r PROGRAM BUDGET SUMMARY CLERK'S OFFICE Program Description The Borough clerk's office is responsible for administrative support to the Mayor and Assembly; conduction of elections, records management program, and providing public information. Goal To provide efficient administrative support to the governing body; administer Borough elections according to local, state, and federal statutes; provide policy guidance, direction, and assistance to the Mayor and Assembly members; provide a uniform method for the management, preservation, retention, and disposal of Borough records in order to increase administrative efficiency, organize paper flow, and reduce administrative costs. Objectives for 2006 -2007 • Perform all duties required by State Statutes and the KIB Code of Ordinances including, but not limited to, attesting all deeds, contracts, and appropriate documents that require the Borough seal. • Administer all Borough elections including regular, special, and service area elections; ensure that elections are accountable and certifiable and that all election workers are trained on election laws governing elections. • Coordinate all Borough Assembly meetings and provide complete and accurate records of proceedings for all regular and special meetings. • Ensure that ordinances, resolutions, and other actions of the Assembly are correct and reflect the intent of the governing body; codify all adopted ordinances, and process and issue supplements to all subscribers of the Borough Code; review and recommend changes to the Borough Code. • Serve as a conduit between the Mayor, Assembly, administration, and public providing information on policies adopted by the Assembly to keep all concerned accurately informed. • Coordinate and process all appeals to the Assembly Board of Adjustment. • Prepare Borough news page weekly for publication, ensuring that the public is kept aware of actions before the governing body and other Borough commissions and departments while meeting all requirements of public notice by law. • Provide an Assembly approved records retention schedule; provide safe and efficient storage and retrieval of inactive, historical and vital records; provide an efficient, effective records system through state -of -the -art methods and technologies; provide uniform written procedures for file maintenance, transfer of inactive records, disposition of records, and microfilming services; provide long -range records management planning. • Provide passport services to the public. Significant Budget Changes No significant budget changes Page 54 1 t 1 r r, L 1 C 1 t r CLERK'S OFFICE EXPENDITURES . PERSONNEL Number of Employees Position: Borough Clerk Borough Deputy Clerk Assistant Clerk TOTAL Ordinances Resolutions Minutes (pages) Regular Assembly Meetings Special Meetings Joint Work Sessions Work Sessions Other Meetings Attended Plats Filed Plats added /archived Beverage Licenses Reviewed Gaming Licenses Reviewed Borough Newspage Publications Elections Absentee Voters - municipal Registered Voters - municipal Code Supplements Archival Records Destroyed (cubic feet) Archival Records Added (cubic feet) Notary Passports filed F.Y. 2004 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 1.00 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Personnel Services $159,479 $161,328 $173,880 $191,776 $160,430 Fringe Benefits 50,973 57,388 78,650 77,450 98,730 Support Goods & Services 81,753 85,541 107,040 89,969 102,330 TOTAL $292,205 $304,257 $359,570 $359,195 $361,490 . PERSONNEL Number of Employees Position: Borough Clerk Borough Deputy Clerk Assistant Clerk TOTAL Ordinances Resolutions Minutes (pages) Regular Assembly Meetings Special Meetings Joint Work Sessions Work Sessions Other Meetings Attended Plats Filed Plats added /archived Beverage Licenses Reviewed Gaming Licenses Reviewed Borough Newspage Publications Elections Absentee Voters - municipal Registered Voters - municipal Code Supplements Archival Records Destroyed (cubic feet) Archival Records Added (cubic feet) Notary Passports filed F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 3.00 3.00 3.00 3.00 PERFORMANCE INDICATORS F.Y. 2004 ACTUAL F.Y. 2005 ACTUAL F.Y. 2006 ESTIMATED F.Y. 2007 PROJECTED 14 18 15 15 28 30 31 31 119 114 120 120 17 20 18 24 12 10 11 5 2 2 2 4 28 27 27 27 1 1 1 1 28 20 20 24 18 32 32 19 7 7 7 7 5 2 5 5 53 96 53 53 2 1 1 1 327 327 250 250 9,671 9,671 10,034 10,045 4 4 2 4 101 71 100 100 96 77 99 98 96 46 68 50 439 597 440 440 I Page 55 1 PROGRAM BUDGET SUMMARY LEGAL SERVICES I Program Description The Borough attorneys provide legal counsel and advice to the Mayor and Assembly, the Manager and all , departments of the Borough. The attorneys are responsible for representing the Borough in lawsuits brought by or against the Borough in state or federal courts. Goal To protect the Borough from financial loss, from actual or potential legal action; to ensure that all Borough operations ' are conducted in accordance with the law so that legal liabilities do not arise; and to provide legal advice support to elected officials and staff members. Objectives for 2006 -2007 • Defend lawsuits brought against the Borough. • Provide legal advice and counsel, and answer legal questions raised by the Mayor, Assembly and the Manager. • Assist departments in resolving legal problems as they arise before they create serious difficulty. Significant Budget Changes No significant budget changes I r Page 56 1 LEGAL SERVICES F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Legal Fees $84,530 $105,944 $133,000 $69,408 $120,000 Support Goods & Services 5,155 6,566 20,200 5,230 10,000 TOTAL $89,685 $112,510 $153,200 $74,638 $130,000 Page 57 !J PROGRAM BUDGET SUMMARY I FINANCE Program Description The Borough Finance Department has different areas of responsibility, many of them quite dissimilar. The ' department's main function is to properly budget, account for, and report promptly and correctly on all revenues and expenditures of the Kodiak Island Borough and its subsidiary and /or affiliated governmental entities. All budgeting, accounting, and reporting efforts are to be annually updated to include all new pronouncements by our promulgating policy bodies including GASB, AICPA, etc. The finance department also includes the borough's Management Information Services department, exhibited on the following pages. Our other functions include cash management, collections on all receivables including taxes, issuance and refinancing of debt instruments (bond sales), risk management, and other related functions. Goal ' To provide all Borough departments and citizens with accurate and timely financial records; to provide reliable and competent accounting services to all Borough departments; to provide for high returns on investments while , minimizing risk and maintaining needed liquidity; and to assure that Borough accounts receivable and payable are settled in a timely fashion. Objectives for 2006 -2007 , • To maintain the Certificate of Achievement Award for Financial Reporting. • To maintain the award for a Distinguished Budgetary Presentation by the Government Finance Officers Association (GFOA). • To distribute the Short Report (monthly financial statements) within fifteen working days of the end of the month. ' • To distribute the Comprehensive Annual Financial Report (CAFR) by November 30. • To continue our high rate of tax collections and all other receivables. Significant Budget Changes No significant budget changes Previous Year's Accomplishments , ❖ The Kodiak Island Borough received the GFOA Distinguished Budgetary Award for our fiscal year 2006 budget. We also received the award in fiscal years 1990 through 2005. ❖ Upon submittal of our fiscal year 2005 annual report, we received GFOA's Certificate of Achievement Award. We also received Certificate of Achievement awards for fiscal years 1988 through 2004 and are hoping to receive one for our fiscal year 2006 report. ' ❖ We have maintained our high rate of tax collections. As of June 2006, 99% of FY 2004 and 98.0% of FY 2005 taxes have been collected. Page 58 1 1 FINANCE 1 t 1 1 1 EXPENDITURES Position: Finance Director Accountant Accounting Technician Clerk/Cashier TOTAL Monthly Financials Annual Report (CAFR) Personnel Turnover Total Tax Levy Current Tax Collections Percent of Current Taxes Collected Outstanding Delinquent Taxes Number of Residential Garbage Accounts Certificate of Achievement Distinguished Budgetary Presentation Commercial Garbage Accounts PERSONNEL Number of Employees F.Y. 2004 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 1 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Personnel Services $ 306, 878 $ 363,564 $403,910 $404,907 $409,500 Fringe Benefits 96,072 131,055 184,110 186,279 206,843 Support Goods & Services 79,721 84,997 103,750 78,289 95,680 Capital Outlay 0 0 0 0 0 Allocated to other funds (73,190) (23,000) (27,000) (23,000) (65,000) TOTAL $409,48.1 $ 556,616 $664,770 $646,475 $647,023 Position: Finance Director Accountant Accounting Technician Clerk/Cashier TOTAL Monthly Financials Annual Report (CAFR) Personnel Turnover Total Tax Levy Current Tax Collections Percent of Current Taxes Collected Outstanding Delinquent Taxes Number of Residential Garbage Accounts Certificate of Achievement Distinguished Budgetary Presentation Commercial Garbage Accounts PERSONNEL Number of Employees F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 1 1 1 1 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 7 7 7 7 PERFORMANCE INDICATORS F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL ESTIMATED PROJECTED 10 working days 10 working days 10 working days 10 working days 29-Mar 30-Nov 30-Nov 30 -Nov 2 1 1 1 $7,739,651 $8,737,770 $10,265,735 $10,265,735 $7,598,076 $8,563,000 $10,060,420 $10,060,420 98% 98% 98% 98 0 /0 $ 359,617 $350,000 $400,000 $400,000 436 460 480 480 Yes Yes Yes Yes Yes Yes Yes Yes 367 380 380 380 I Page 59 1 PROGRAM BUDGET SUMMARY , FINANCE /MANAGEMENT INFORMATION SERVICES Program Description Provide Information Technology services to the Borough and KIBSD. Areas of responsibility include: developing and maintaining the management information systems (MIS); evaluating and selecting hardware, software, and applications software; operating the central distribution data center; controlling data input and output; designing and managing data communications and telecommunications networks; controlling forms; developing information processing policies and procedures; conducting feasibility studies of new manual or automated systems; allocating processing costs to user departments; researching potential systems, methods, or equipment that could improve cost - effectiveness or increase productivity; ensuring the security of all MIS operations; developing and implementing office automation systems; reporting on the performance of the preceding areas of responsibility to senior management on a periodic basis; providing for the maintenance of data processing and communication equipment; and reviewing and approving data processing equipment acquisitions or external services and contracts throughout the Borough and KIBSD. Goal , Continue to provide the very best, cost - effective data processing services to the Borough and KIBSD. Continue to use all standard available resources to ensure user satisfaction while investigating innovations to increase productivity. Maximize system availability. Maintain a high level of customer satisfaction. Optimize the Borough's management information systems through the use of computer resources where applicable. Increase productivity through teamwork, sharing information, and pooling resources. Objectives for 2006 -2007 • Standardize resources and procedures to reduce overall microcomputer costs. • Provide training that will increase the working knowledge of PC's and the use of the Borough computer systems. • Replace one third of the Borough's PC's (12 PC's). • Evaluate existing Assessment software and implement recommendations. • Implement SQL server for Borough PC databases (Laserfiche, GIS, Backup Exec, RightFax. Etc). • Redesign the Borough web site for ease of use. • Expand the capabilities of the web -based GIS interface. • Implement Web based retrieval system for records management software. ' • Upgrade telephone and voicemail hardware and software to currently supportable platforms (KIB KIBSD ' KFRC, FITC). Significant Budget Changes No significant budget changes. I Page 60 FINANCE/MANAGEMENT INFORMATION SERVICES EXPENDITURES PERFORMANCE INDICATORS F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL ACTUAL BUDGET ACTUAL BUDGET Personnel Services $172,147 $186,559 $188,080 $174,381 $196,250 Fringe Benefits 55,076 68,961 89,248 66,422 102,378 Contracted Services 0 1,987 0 0 11,000 Support Goods & Services 172,016 231,095 290,535 208,542 294,860 Capital Outlay 0 0 0 83,967 10,000 Allocated to other funds (142,000) (107,564) (138,650) (130,519) (138,650) TOTAL $257,239 $381,038 $429,213 $402,793 $475,838 PERSONNEL Number of Employees Position: F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 Programmer /Analyst 1.00 1.00 1.00 1.00 Operations Supervisor 1.00 1.00 1.00 1.00 LAN Administrator 1.00 1.00 1.00 1.00 TOTAL 3.00 3.00 3.00 3.00 PERFORMANCE INDICATORS Page 61 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL ESTIMATED PROJECTED Devices 200 200 200 200 Network users supported 3210 3050 3220 3220 Communications Lines 65 65 65 65 Local Area Networks 11 11 11 11 Wide Area Ethernet Connections 9 9 10 10 Network servers 56 56 57 57 AS400 users supported 140 140 145 145 Phone system users supported 800 800 810 810 Page 61 PROGRAM BUDGET SUMMARY I ASSESSING , Program Description The primary function of this department is the annual valuation and assessment of approximately 5,000 real and 2,000 personal property accounts at their full and true value. The real property function requires reassessment programs phased cyclically, the annual appraisal of new construction and additions, and includes the audit, discovery, and compliance program. This function includes maintaining assessment standards and tax maps, plat and permit processing, ownership records, property description data, and the accounting control, and other related clerical support. The personal property function is accomplished through the filing and auditing of tax returns, and related discovery and compliance activities. Other ancillary functions are site - specific appraisals, the processing and administration of tax exemption programs, land sales and property acquisition support, compilation of data in support of the Borough administration and processing of appeals, along with compliance and filing activities for the severance tax. Goal It is the goal of the Assessing Department to annually produce the most complete, fair and equitable assessment tax roll in the State of Alaska. Furthermore, it is the goal of this department to process the assessment tax roll efficiently at the lowest expense possible. Objectives for 2006 -2007 • Pursue improvements to the Assessing Department database, including integration with the G.I.S. based CAMA program. Integrate the Kb database with the GIS /mapping to enable that system to become operational; or replace with a more compatible assessment program. • Continue phased real property inventory and audit and compliance program to insure that all taxable property is on the tax roll to insure fairness and equity. • Work towards sale of various KIB parcels with emphasis on the Monashka Bay area, along with a fall sale of tax foreclosed parcels. • Continued technical and appraisal support for a variety of other Borough projects. Significant Budget Changes No significant budget changes. , Previous Year's Accomplishments d• Completed another phase of the reappraisal of borough property, focusing on remote properties located on the road system. ❖ Focused on the entry and valuation of property using the new computer system, which is approximately 60% complete. a ❖ Completed many activities that were historically completed by the Resource Manager. ❖ Technical and appraisal support for a variety of other Borough projects. I J Page 62 1 ASSESSING EXPENDITURES PERFORMANCE INDICATORS F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL ACTUAL BUDGET ACTUAL BUDGET Personnel Services $139,927 $158,500 $246,010 $226,602 $243,180 Fringe Benefits 47,286 53,111 109,270 95,575 126,620 Contracted Services 0 6,364 0 0 0 Support Goods & Services 34,920 41,909 39,540 48,028 42,350 Capital Outlay 0 0 1,000 (11,372) 0 Allocated to Projects (13,000) (13,000) (10,000) 0 (13,000) TOTAL $209,133 $246,884 $385,820 $358,833 $399,150 PERSONNEL Number of Employees Position: F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 Assessor 1 1 1 1 Appraiser 1 1 1 1 Assessment Clerk 1 1 1 1 1 Appraiser Technician 1 1 1 1 TOTAL 4 4 4 4 PERFORMANCE INDICATORS CHANGE IN VALUE FROM PRIOR YEAR Real Property F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 Personal Property ACTUAL ACTUAL ESTIMATED PROJECTED ASSESSED VALUE $770,982,367 $12,926,883 $19,263,555 $4,391,651 Real Property (net after all exemptions) $660,040,861 $678,427,713 $692,572,845 $696,990,000 Personal Property 110,941,506 105,481,537 106,206,504 106,181,000 Total Assessed Value $770,982,367 $783,909,250 $803,171,000 $803,171,000 CHANGE IN VALUE FROM PRIOR YEAR Real Property $660,040,861 $18,386,852 $18,564,086 $4,417,155 Personal Property $110,941,506 ($5,459,969) $699,469 ($25,504) Total Value Increase From Prior Year $770,982,367 $12,926,883 $19,263,555 $4,391,651 NUMBER OF PARCELS 5,574 6,000 6,200 6,200 Number of Personal Property Accounts 1,763 2,000 2,100 2,100 ASSESSED VALUE PER EMPLOYEE $192,745,592 $195,977,313 $200,792,750 $200,792,750 Page 63 1 PROGRAM BUDGET SUMMARY 1 ENGINEERING AND FACILITIES I Program Description The Engineering and Facilities Department is responsible for the safe operation and maintenance of all Borough owned grounds and facilities; coordination and administration of capital construction projects, and administration of the Borough code section on the construction of roads in new subdivisions. The department is also responsible for the operation of , the KIB landfill that includes the disposal of garbage, metals, construction debris, and the potential recycling of these materials to prolong the use of the existing landfill; the efficient operation of the Kodiak Fisheries Research Facility and other Borough owned buildings. Goal To design, construct, operate, maintain, and repair all of the Kodiak Island Borough owned facilities in a safe responsible manner and to manage the programs that have been entrusted to the Engineering and Facilities Department. To administer and maximize bond monies approved by the voters. To support the number of department administered programs such as Buildings and Grounds, Parks and Recreation, PKIMC hospital, Kodiak Fisheries Research Center, the Borough Baler/Landfill, and bond funded projects Objectives for 2006 -2007 • Complete design and initiate construction of the community health center at the hospital • Continue to perform annual maintenance review of school buildings and other public facilities • Pave the roads in the Woodland Acres area ' • Review architectural design associated with the approved bond projects in Ouzinkie and Old Harbor • Begin design and construction of the new pool facility • Begin design and construction of various bond funded projects. ' • Perform asbestos removal and new floor covering at Kodiak High School • Repair concrete around Kodiak Middle School. Significant Budget Changes No significant budget changes. t u Page 64 1 ENGINEERING AND FACILITIES Personnel Services Fringe Benefits Contracted Services Support Goods & Services Allocated to Projects TOTAL Position: Engineering and Facilities Director Project Manager Project Manager /Inspector Project Assistant Secretary III TOTAL EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 ACTUAL ACTUAL BUDGET $56,325 $57,238 $118,800 16,776 17,783 63,830 21 0 2,200 30,633 40,992 47,150 (40,000) (39,818) (120,000) $63,755 $76,195 $111,980 PERSONNEL Number of Employees F.Y. 2004 F.Y. 2005 1 1 1 0 0 0 0 0 1 1 3 2 Page 65 F.Y. 2006 F.Y. 2007 ACTUAL BUDGET $82,649 $86,720 29,885 40,750 0 25,700 36,008 48,932 (40,000) (50,000) $108,542 $152,102 F.Y. 2006 F.Y. 2007 1 1 0 0 1 1 1 1 1 1 4 4 1 PROGRAM BUDGET SUMMARY I COMMUNITY DEVELOPMENT DEPARTMENT I Program Description The Community Development Department is responsible for a wide range of functions including: contract management (e.g. building inspection, junk removal and animal control); grant writing and administration; research and information services (e.g. population determinations, economic and social data); land use planning (e.g. staff to the Planning and Zoning Commission, area and comprehensive plan preparation, permitting, and enforcement); liaison with federal and state governments (e.g. Kodiak National Wildlife Refuge, Katmai National Park, and federal and State project reviews);and GIS mapping; and drafting services. This requires the department to administer a number of Kodiak Island Borough code sections, including: Title 6 Animals; Title 10 Vehicles and Traffic, Title 16 Subdivisions, and Title 17 Zoning. The department also works with other Borough departments, assisting them in their administration of Title 8 Health and Safety; Title 13 Utilities, , Title 15 Buildings and Construction, and Title 18 Borough Real Property. Goal To perform the functions assigned to the department as efficiently and cost effectively as possible; to facilitate community based coastal and comprehensive planning; to implement land use policies and regulations established by the Assembly; to provide accurate and factual data to a wide range of individuals and groups in order to promote well - informed decision making. Objectives for 2006 -2007 • In cooperation with Assessing, MIS and other borough departments, continue to implement the ArcGIS system with the goal of making parcel based information available to the public through an online webpage. • Continue to provide borough residents and decision makers with timely and quality information. • Continue implementation of the KIB Zoning Enforcement Policy to correct zoning violations, including the use of legal action when necessary. • Continue the review and update of the Overall Kodiak Island Borough Comprehensive Plan (KIBCP). • Complete the duties and charges of the Gravel Task Force appointee by the Borough Assembly. ' • Complete updates to the Kodiak Island Borough Zoning and Subdivision Ordinances to address relevant land use issues in the community. Previous Year's Accomplishments ❖ The department continued to function as an information and referral center for many Borough residents and non- ' residents providing, for example, zoning and mapping information, coastal development information and other development related information. ❖ Completed work and adopted the Womens Bay plan update. ❖ Complete and publish the update of the Kodiak Area Emergency Operations Plan. ❖ Completed update and adopted of the Kodiak Island Borough Coastal Management Plan (KIBCMP). ❖ Completed the Pre - Hazard Mitigation plan for the Kodiak Island Borough including all communities. ❖ In coordination with the City of Kodiak, completed a tabletop and community-wide emergency exercises. Significant Budget Changes $50,000 budgeted for junk removal. Page 66 1 1 I Page 67 COMMUNITY DEVELOPMENT ' EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Personnel Services $260,389 $275,924 $327,760 $313,032 $326,750 Fringe Benefits 72,022 83,069 136,110 129,423 157,160 Professional Services 0 Support Goods & Services 60,981 29,268 56,117 0 69,800 0 60,139 60,000 71,910 Capital Outlay 0 (500) 0 0 0 Allocated to Projects (18,000) 0 (5,400) (500) (2,400) TOTAL $375,392 $443,878 $528,270 $502,094 $613,420 PERSONNEL ' Number of Employees Position: F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 ' Community Development Director 1 1 1 1 Associate Planner /L.R. Planning 1 1 1 1 Associate Planner/Enforcement 1 1 1 1 Draftsman/Technician 1 1 1 1 ' Secretary III 1 1 1 1 TOTAL 5 5 5 5 1 PERFORMANCE INDICATORS F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL ESTIMATED PROJECTED Zoning Compliance Permits Issued 156 187 150 150 Planning & Zoning Commission Public Hearings 35 52 52 52 ' Zoning Violations- Complaints Responded To 30 25 25 25 Federal & State Project Reviews 35 30 30 30 Junk Cars Removed by the Junk Removal Program 188 125 100 100 1 Other Junk Removed by the Junk Removal Program 10 tons 8 tons 7.5 7.5 Linear feet of maps produced 7,000 ft 3,000 ft n/a n/a Square feet of maps produced n/a 9,000 ft 9,000 ft 9,000 ft I Page 67 I PROGRAM BUDGET SUMMARY I BUILDING INSPECTION I Program Description The Kodiak Island Borough building inspection program ensures compliance with adopted building codes and related zoning codes. The Borough contracts with the City of Kodiak for administration of the Borough's building inspection program. Inspections performed on residential and commercial building construction include structural, mechanical, electrical, and plumbing inspections. Plan reviews for construction projects are conducted by the City of Kodiak building inspection staff or City of Kodiak's professional plan review service before a building permit is issued. Building height, setbacks, and parking requirements are some of the zoning requirements checked in the field by the building inspection staff. Goal ' To ensure that every new construction project in the Kodiak Island Borough complies with applicable, adopted building codes, and to ensure that unsafe structures are abated. Objectives for 2006 -2007 • To continue to serve the public in a timely manner. • To increase inspection proficiency through training, reference materials, field inspections, and contact with the International Code Council. • To complete commercial plan reviews and permit issuance within 30 days, and to complete residential plan ' reviews and permit issuance within 7days of submittal. • To provide information to elected and appointed officials, and the public, about the most current editions of the building, mechanical, electrical, and plumbing codes. , • To maintain continuity with the State of Alaska adopted codes. • To maintain delegated plan review responsibility from the State of Alaska, Department of Public Safety, Division of Fire Prevention. • To maintain AHFC building inspection program approval. • To maintain and improve the ISO (Insurance Service Office) inspection program rating of 3. Significant Budget Changes ' No significant budget changes. LI 1 Page 68 1 BUILDING INSPECTION EXPENDITURES Page 69 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Contracted Services $126,106 $132,496 $125,000 $156,508 $125,000 Support Goods & Services 7,368 7,336 7,230 7,321 7,640 TOTAL $133,474 $139,832 $132,230 $163,829 $132,640 PERFORMANCE INDICATORS F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL ESTIMATED PROJECTED Cor nwdal Building Permits 44 40 40 40 Residential Building Permits 179 180 180 180 Borough Plumbing Permits 65 80 75 75 Borough Electrical Permits 127 150 130 130 Page 69 F, PROGRAM BUDGET SUMMARY I ECONOMIC DEVELOPMENT I Program Description The function of the Economic Development Program is to provide the Assembly with the opportunity to pursue the , most feasible economic development opportunities that will be of benefit to the entire community. Goal , Economic development encompasses a diverse range of activities, which enable the Assembly to objectively pursue the most feasible programs designed to benefit the community. ' Objectives for 2006 -2007 • Provide an increased opportunity for the Assembly to pursue programs beneficial to the community. ' • Promote economic diversification. • Enhance the economic viability of the community by pursuing activities that may contribute to an increased tax base, as well as provide for better public amenities and services. This effort is being coordinated with the City of Kodiak through the Kodiak Chamber of Commerce. Significant Budget Changes , No significant budget changes. I t J t Page 70 1 1 I it 1 t 1 Page 71 ECONOMIC DEVELOPMENT ' EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Professional Services 5,499 43,263 25,000 26,755 22,000 Chamber of Commerce 43 ,500 43,000 43,000 46,500 43,000 Support Goods & Services TOTAL 4,653 $53,652 1,058 $87,321 10,000 $78,000 1,763 $75,018 5,000 $70,000 1 I it 1 t 1 Page 71 1 PROGRAM BUDGET SUMMARY I GENERAL ADMINISTRATION ' Program Description The function of the General Administration Department is to provide services to the Kodiak Island Borough that cannot be directly identified within any specific fund or program. Goal , General Administration includes a variety of functions that are necessary to the overall operations of the Borough. General Administration provides for the financial audit of the Borough, postage, liability insurance, bad debt expense, , and other miscellaneous costs. Objectives for 2006 -2007 • Maintain the employee of the quarter and employee of the year incentive awards programs. • Maintain the service award program (service pins) for employees to promote and reward longevity. • Maintain the Drug -Free Workplace program, including training, for all employees to comply with federal ' grant requirements. • Maintain the Blood -borne Pathogens Training program for all employees to comply with Occupational Safety and Health Administration (OSHA) standards. • Provide Hepatitis B vaccinations to all employees in accordance with OSHA Blood borne Pathogens program. • Provide for an annual audit process to comply with federal and state laws. • Maintain a Risk Management Program and liability insurance on the building, including administration of a safety program to prevent liability. • Provide continuing education opportunities to department staff in order to increase efficiency and maintain/increase knowledge of applicable state and federal laws. Significant Budget Changes No significant budget changes. , t Page 72 1 GENERAL ADMINISTRATION Personnel Services Fringe Benefits Professional Services Audit Expense Contracted Services Support Goods & Services Capital Outlay TOTAL Page 73 EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET $369 $550 $0 $163 $0 187 7,588 0 185 0 147,104 94,094 0 0 0 102,930 19,088 110,000 137,703 96,000 0 0 0 0 20,000 0 206,249 175,970 80,088 156,370 0 0 50,000 39,392 25,000 $250,590 $327,569 $335,970 $257,531 $297,370 Page 73 PROGRAM BUDGET SUMMARY EMERGENCY PREPAREDNESS Program Description The major function of this program is to implement an emergency warning and communications system in the Kodiak Island Borough. This program is coordinated with the City of Kodiak and the villages in the region. Goal It is the goal of this program to have in place an emergency warning and communications system. Objectives for 2006 -2007 • Analyze gaps in the existing emergency warning and communications system and determine and implement what hardware is necessary to fill those gaps. Significant Budget Changes Additional funding is necessary to purchase hardware to complete the system. Page 74 EMERGENCY PREPAREDNESS EXPENDITURES Support Goods & Services Capital Outlay TOTAL Number of Tsunami Sirens F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET $5,129 $5,428 $8,800 $6,099 $8,800 0 0 30,000 0 0 $5,129 $5,428 $38,800 $6,099 $8,800 PERFORMANCE INDICATORS F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL ESTIMATED PROJECTED 18 18 18 18 Page 75 PROGRAM BUDGET SUMMARY SCHOOL DISTRICT SUPPORT Program Description The School District Support Program encompasses the transfer of the state required local funding to the Kodiak Island Borough School District for operations. The program includes the purchase of liability insurance, the cost of the annual audit, and management information systems support. Property insurance, snow removal and other services are purchased through the Building and Grounds Fund in the Special Revenue Funds Section. Goal To provide adequate funding to the Kodiak Island Borough School District ensuring high quality education will be provided to all children living in the Kodiak Island Borough. Objectives for 2006 -2007 • To work effectively with the Kodiak Island Borough School District to establish an adequate level of funding from the Kodiak Island Borough to ensure that continued high quality education is provided. Significant Budget Changes No significant budget changes. Borough Contributions per Student 3,500 3,000 2,500 2,000 1,500 1,000 500 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 For a complete breakdown of the school district budget, please contact the Kodiak Island Borough School District at 722 Mill Bay Road Kodiak, AK 99615. Page 76 ;pil i AIR r f � M g 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 For a complete breakdown of the school district budget, please contact the Kodiak Island Borough School District at 722 Mill Bay Road Kodiak, AK 99615. Page 76 SCHOOL DISTRICT SUPPORT EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Professional Services $521,695 $494,307 $520,000 $517,400 $508,000 Audit Expense 62,425 32,935 37,000 33,453 37,000 Support Goods & Services 87,941 106,171 124,000 97,923 102,000 Operating Transfers Building & Grounds 50,670 0 38,670 0 0 KIBSD 6,649,645 7,314,440 7,740,440 7,740,440 7,740,440 KIBSD contingency 400,000 13,182 0 41,625 0 Debt Service 348,620 510,097 697,450 697,450 695,550 TOTAL $8,120,996 $8,471,132 $9,157,560 $9,128,291 $9,082,990 Contributions to the KIBSD stated as mill Rate Equivalents 12.00 10.00 8.00 c m a .L w 6.00 m w 4.00 2.00 0.00 10.41 10.47 9.45 9.39 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 PROGRAM BUDGET SUMMARY Page 77 HEALTH AND SANITATION Program Description This program consists of funding for non -profit health and social service agencies in the Kodiak Island Borough. A substantial portion of this program is actually a pass through of State of Alaska revenue sharing funds for health agencies. Goal To provide financial assistance to non - profit health and social service agencies to ensure that the agencies are financially viable to provide needed services to the residents of the Kodiak Island Borough. Objectives for 2006 -2007 • To continue to fund high quality care delivery by non - profit health agencies. • To review new applications by non - profit agencies and select high- quality agencies for the delivery of these services. • To distribute state revenue sharing funds to the designated agencies. Significant Budget Changes No significant budget changes. Page 78 1 LJ Ll u Page 79 HEALTH & SANITATION EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET ' Animal Control $ 57,500 $ 60,000 $ 60,000 $ 60,000 $ 60,000 Council on Alcoholism 22,110 22,110 21,060 21,060 21,060 ' Women's Resource & Crisis Center American Red Cross 41,248 2,500 41,248 2,500 42,554 2,500 42,554 2,500 46,000 7,000 Kodiak Baptist Mission 30,000 25,000 25,000 25,000 25,000 Special Olympics 7,000 6,760 6,780 6,780 7,500 Senior Citizen Support 27,720 27,720 27,720 27,720 28,000 Health Care Foundation 0 0 25,000 25,000 10,000 Kodiak Respite Care/Hope Resrc 5,000 5,000 5,000 5,000 5,000 ' Salvation Amy 9,060 9,060 9,060 9,060 9,060 Brother Francis Shelter 34,584 34,584 37,895 37,895 38,000 Kodiak Area Transit 10,000 9,996 10,000 10,000 10,000 Threshold Services 10,315 10,315 10,315 10,315 10,315 ' Unallocated Funds 0 0 1,436 0 12,945 TOTAL EXPENDITURES $257,037 $254,313 $284,320 $282,884 $289,880 Ll u Page 79 PROGRAM BUDGET SUMMARY EDUCATION, CULTURE AND RECREATION Program Description This program consists of funding for non - profit agencies that provide educational, cultural, and recreational opportunities for the citizens of the Kodiak Island Borough. Goal Provide financial assistance to non - profit agencies to ensure their financial viability to provide educational, cultural, and recreational opportunities for the residents of the Borough. Objectives for 2006 -2007 • To continue to fund a variety of educational, cultural, and recreational non - profit agencies. • To seek high quality, wide appeal programs for the benefit of the residents of the Borough. Significant Budget Changes No significant budget changes. Page 80 EDUCATION, CULTURE & RECREATION School Crossing Guards KMXT Public Radio Historical Society Kodiak Island Sportsmen Assn Kodiak Arts Council Village Libraries Chiniak Public Library City of Kodiak Library Head Start Kodiak College Kodiak Little League KANA Family Center Kodiak Youth Services Network Girl Scouts Kodiak Football League St. Mary's School Kodiak Teen Court Kodiak Maritime Museum Unallocated Funds Operating Transfers TOTAL F.Y. 2004 ACTUAL $0 7,500 4,500 5,400 15,000 15,000 3,000 3,000 8,135 60,000 5,600 12,000 7,500 2,050 5,000 1,097 8,705 0 0 $163,487 EXPENDITURES F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL BUDGET ACTUAL BUDGET $0 $0 $0 $12,000 7,500 7,500 7,500 7,500 4,500 4,500 4,500 4,500 2,000 4,000 4,000 4,000 12,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 0 3,000 3,000 3,000 3,000 3,000 3,000 3,000 8,135 9,623 9,623 9,000 60,000 72,000 72,000 72,000 3,000 3,000 3,000 3,000 7,200 12,000 12,000 12,000 0 0 0 0 1,000 1,000 1,000 1,000 2,000 3,000 3,000 3,000 0 0 0 0 0 3,600 3,600 5,100 2,000 1,000 2,000 1,000 0 5,112 0 (2,880) 0 0 0 0 $127,335 $162,335 $158,223 $167,220 Page 81 PROGRAM BUDGET SUMMARY TRANSFERS Program Description Money is transferred from the general fund to other funds of the Kodiak Island Borough. There are no specific goals and objectives listed for this department as they are delineated in the fund receiving the transfer. Goal To transfer such sums of money as are necessary to fully support the activities of the Kodiak Island Borough. Objectives for 2006 -2007 N/A Significant Budget Changes N/A F1 Page 82 1 1 i 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 TRANSFERS EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Operating Transfers Debt Service $0 $0 $0 $0 $0 Capital Projects -KIB 0 0 0 0 390,000 Solid Waste 0 0 6,450 6,450 6,450 TOTAL $0 $0 $6,450 $6,450 $396,450 Page 83 SPECIAL REVENUE FUNDS 1 SPECIAL REVENUE FUNDS REVENUE SOURCES AND SPECIAL REVENUE FUND ESTIMATES 1 The overall revenue budget for Special Revenue Funds is $3,688,195. ' PROPERTY TAX 24% 1 1 1 1 LAND SALES 1 INTERGOVT REVENL 4% INTEREST 53% VTS & ROYALTIES 16% MISCELLANEOUS 2% LAND SALE 1% Facilities Fund. In December 1995 the Kodiak Island Borough entered into an agreement with the Exxon Valdez Oil Spill Trustee Council ( EVOSTC) to sell the Borough's rights on Shuyak Island to the State of Alaska. The proceeds of the sale established the Facilities Fund. This fund received its final payment of $11 million from EVOSTC October, 2002. The interest earned on these funds can be used for upgrades, maintenance and repair of existing borough buildings, borough building insurance, and payment on general obligation bonds used for construction of borough facilities. The Borough is budgeting $1,176,500.00 for insurance, bond payments, and capital projects in FY2007. Land Sales. When the Borough was organized in 1964, it was given 56,000 acres by the State of Alaska. Periodically the Borough sells this land. Two objectives are met by these land sales; the Borough receives revenue and land is put into private ownership. Typically, land is sold at public auction with the terms of the sale being 10% down, ten years to pay off, and 10% interest. INTEREST EARNINGS Penalties and Interest. The majority of this revenue is from interest earned on investments in the Facilities Fund. It is estimated that the interest earned on the Facilities Fund will be $1,680,000. The estimated amount of interest earned on all special revenue funds is $1,807,615. The interest budgeted is conservative one due to the economic trends. I Page 85 1 INTERGOVERNMENTAL REVENUE State Grants ' Three of our special revenue funds are funded with grant dollars: Child Care Assistance, Alaska Coastal Management Program, and Local Emergency Planning Committee. ' Child Care Assistance Program Alaska Statutes (AS) 44.47.250 - 44.47.3 10 created the State of Alaska Day Care Assistance Act, which implemented a program to assist in providing day care for the children of low and moderate - income families. This program distributes administrative monies quarterly based on a proposed budgeted amount. In fiscal year 2004 ' the Borough submitted a grant proposal that the Commissioner of the Department of Health and Social Services (DHSS) approved waiving the requirements of competitive solicitation for the program. Kodiak Island Borough submits a Quarterly Cumulative Fiscal Report along with a Quarterly Narrative. The budget for fiscal year 2007 is $89,280. Alaska Coastal Management Program (ACMP) AS 46.40.010 - 46.40.100, State grant for development and implementation of local coastal district programs. The State of Alaska matches federal funding for coastal management and provides grants to eligible communities to implement the Alaska Coastal Management Program at a local level. The ACMP is ' a vehicle for managing coastal resources to achieve a balance between economic growth and resource protection. The Kodiak Island Borough Coastal Management Program ( KIBCMP) was adopted in 1984 at the local, state and federal levels. Since adoption, all levels of government have used the KIBCMP to assist decision - making about development projects. Permit ' applications for projects that would affect natural resources in the Borough are reviewed to ensure that they are consistent with the KIBCMP. Funding in FY 2007 is $25,650 for routine implementation. PROPERTY TAX Real and Personal Property Taxes Alaska Statutes (AS) 29.45.010 - 29.45.500. We have several service areas that levy a mill rate and collect taxes on the property located within their boundaries. The following table shows these service areas, the assessed value of the property within their boundaries, their mill rate and the amount of taxes due them. Service District Womens Bay Road Service Area Net Taxable Value 50,808,150 Mill Levy 2.00 Property Tax 93,000 Road Service Area No. 1 167,009,483 1.25 162,000 Monashka Bay Road Service Area 16,183,900 2.50 28,756 Bay View Road Service Area 5,486,800 1.00 4,800 , Fire Protection Area No. 1 224,305,685 1.50 330,000 Womens Bay Fire Department 50,808,150 1.25 63,000 KIB Airport Fire Protection District 6,727,300 1.25 15,390 Woodland Acres Street Light Area 31,847,900 0.00 0 Trinity Islands Street Light Area 7,641900 0.50 3,600 Mission Lake Tide Gate Area 3,115,500 1.00 2,460 , The property taxes actually budgeted are slightly less than the table above due to service district boards wanting to be conservative in their revenue projections. Generally 85% of property taxes are from real property and 15% from personal property. Overall, the current Borough -wide delinquency rate is .48 %. Tourism Development (Bed Tax). KIB 3.30 Transient Accommodations Tax authorizes the Borough to collect taxes on overnight accommodations provided within the Kodiak Island Borough's boundaries. Cities that are within the Borough and have their own bed tax and businesses within those areas are exempt from collecting on KIB's behalf. We are budgeting $45,000 for fiscal year 2007. 1 Page 86 1 RENTS AND ROYALTIES 1 Office Rent. The Borough charges rent for office space to the Borough departments and outside agencies that have offices within the Borough Building. For fiscal year 2007, the Borough is charging an annual rate of $1.85 per square foot, which equates to $421,980 in rental revenue. Gravel Sales. The Kodiak Island Borough has leased four parcels of land for gravel extraction purposes. The lease requires that a royalty be paid on the amount of gravel extracted. The revenue that we expect to receive in fiscal year 2007, $40,000, is based on the estimates and averages of gravel extracted in past years. The royalty rate is $1.25 per cubic yard. r� �I L� I Page 87 IJ SPECIAL REVENUE FUND RECAP I SPECIAL REVENUE FUNDS BUDGET SUMMARY ' FISCAL YEAR 2006/2007 Monashka , Buildings & Coastal Womens Bay Service Area Service Bay Service Bay Yew Road Child Care Land Sales Grounds Mgmt LEPC Service Area No. 1 Area No. 2 Area Service Area Beginning Fund Balance $3,108 $981,513 $323,461 $22,123 ($9,682) $169,251 $240,718 $4,331 $56,832 ($667) ' Revenues prrg Two* ., 0 0 0 0, . .; 96,300.. 215.004 0 10.500;^ $ed itl fl. - 0 0 0 0 O:I P.I.L.O.T. - KIHA 0 0 0 0 0 0 0 0 0 0 Licenses & Permits 0 1,000 0 0 0 20,000 0 0 0 0 O .. State Grants 89.280 2 I 5 650 20,000 0 0 0 0 0 Kodiak Arts Council 0 0 0 00 0 0 0 0 0 0 , t o o o= _o' Transfers In 0 0 220,000 0 0 0 0 0 0 0 Total Revenues & Transfers In 89,280 96,700 641,980 25,650 20,000 119,600 215,000 0 43,175 4,800 Total Available Funds 92,388 1,078,213 965,441 47,773 10,318 288,851 455,718 4,331 100,007 4,133 Expenditures t NQCatvASeitebutoi 0 0 Q 0 0 0 O' Q 0 98 70D +� o 0 0 0 0 o a KIB Buildings 0 0 706,980 0 0 0 0 0 0 0 Coastal Management 0 0 0 25,650 0 0 0 0 0 0 ' LEPC 0 0 0 0 20,000 0 0 0 0 0 0 ' 0 fl 0 0 149,800 211000 O 43,175 4,800 Entertainment 0 0 0 0 0 0 0 0 0 0 Economic Development 0 0 0 0 0 0 0 0 0 0 ' 0" 0 0 1) 0 Transfers Out 0 0 0 0 0 0 0 0 0 0 Total Use of Funds 4,800 , 89,280 96,700 706,980 25,650 20,000 119,600 215,000 0 43,175 Est. Funds Available 6/30/04 $3,108 $981,513 $258,461 $22,123 ($9,682) $169,251 $240,718 $4,331 $56,832 ($667) ' Use of Fund Balance and Contingencies are not included in this ' summary. i Page 88 1 I Page 89 KIB Airport Trinity Fire Womens Bay Fire Woodland Islands Mission Trinity Protection Fire Protection Acres Street Street Light Lake Tide Islands Area No 1 Department District Light Area Area Gate Paving Kodiak Arts Counci Facilities Fund Tourism Developme Fuller Trust TOTAL 1 $1,073,069 $19,124 $27,152 $13,671 ($1,567) $5,180 ($174,557) ($4,074) $38,838,949 $3,983 $198,868 $41,790,785 1 o iw TRril~� 'P '4 Rp .¶ t �� d5. 'c �Y,� �' r ^{ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 � 0 2,000 0 0 0 0 0 0 0 0 _ 0 0 0 134,930 a 0 0 0 0 0 0 0 65,780 0 0 0 65,780 �.,q,, .. *Itt- �;rJr�' r ktS 6 .., ^'�sti , �, _'"Iz✓r ?e'' ' 0 16,700 0 0 0 0 0 0 0 0 0 236,700 351,500 89,200 16,390 600 3,600 2,460 22,140 65,780 1,800,000 45,000 75,000 3,727,855 1,424,569 108 324 43,542 14,271 2,033 7,640 (152.417) 61,706 4 0,638,949 48,983 273,868 45,518,640 ' ��i'� t�� , �i'� �' � # y�� ���� � � '�'�, 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 y 0 0 A ! A k "t �• ,u tkTE� i�q. 5 .ry N� tr p gg i r#Hti . _ k' � 0 0 0 0 0 0 0 0 0 0 PP 0 0 0 0 °'+,��¢ (r� .ti• a I 1 E e�a•,taa°" *' v k r'�r �� `�.m� i �� ¢sf� �f�� # ���� � ,. 0 0 0 0 706,980 0 0 0 0 25.650 0 0 0 f 20,000 HI �p R1 X-f 65,780 0 0 0 65,780 0 0 45,000 0 45,000 Uz - i Yn " .r, '.,. R '� `� -,. #.. W, 5 + 0 0 0 0 0 0 0 701,160 89,200 16,730 6,000 3,600 2,460 22,140 0 65,780 1,176,500 1,800,000 0 0 1,176,500 45,000 75,000 4,148,255 $723,409 $19,124 $26,812 $8,271 ($1,567) $5180 ($174 ($ 4, 0 74) $38,838,949 $3,983 $198,868 $41,370,385 I Page 89 PROGRAM BUDGET SUMMARY CHILD CARE ASSISTANCE PROGRAM , Program Description Administration of state and federal financial assistance programs that subsidize the cost of childcare for eligible low to , moderate - income families while parents work and/or attend school. Children served are age birth to 13 years. Goal I To promote affordable, appropriate, quality childcare for low to moderate income families. To encourage independence from social welfare programs by subsidizing the costs of quality child care for eligible I parents who are working or attending school. To build community awareness of the benefits to our local economy and local employers for quality, affordable childcare services for working parents. ' To coordinate effectively with other childcare assistance programs, including KANA, Public Assistance, USDA Food Program and the US Coast Guard. Objectives for 2006 -2007 ' • To promote childcare assistance programs to eligible parents for the best utilization of state and federal funding. ' • To participate in local agency collaboration teams to promote childcare assistance programs and gain community support for funding levels to meet local need. • To stimulate adequate childcare spaces to meet the needs of program participants. ' • To promote and support quality childcare. Significant Budget Changes No significant budget changes. I 1 Page 90 1 1 1 1 1 1 1 1 1 1 1 1 i 1 1 1 1 1 1 1 CHILD CARE ASSISTANCE REVENUES AND EXPENDITURES Expenditures Personnel Services F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 Employee Benefits ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 11,188 9,295 12,310 10,476 10,960 State of Alaska Grants $74,606 $75,425 $83,090 $71,996 $89,280 Use of Fund Balance 0 0 0 0 0 Transfers In 0 0 0 0 0 TOTAL $74,606 $75,425 $83,090 $71,996 $89,280 Expenditures Personnel Services $44,869 $43,691 $43,410 $41,313 $47,000 Employee Benefits 18,788 22,439 27,370 25,436 31,320 Support Goods & Services 11,188 9,295 12,310 10,476 10,960 Capital Outlay 0 0 0 0 0 TOTAL $74,845 $75,425 $83,090 $77,225 $89,280 PERSONNEL Number of Employees Position: F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 Local Administrator 1.0 1.0 1.0 1.0 PERFORMANCE INDICATORS F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL ESTIMATED PROJECTED Average number of families served per month 55 63 65 65 Average number of children served per month 91 103 110 110 Page 91 PROGRAM BUDGET SUMMARY RESOURCE MANAGEMENT Program Description The Borough's land and resource base is a multi - million dollar asset. It should be viewed in the context of a "land trust" with the citizens of the Borough as the beneficiary. KIB received 56,500 acres from the State of Alaska by organizing as a Borough. Another 15,000 acres has been acquired from Native Corporations or the Federal Government (school sites). The value of KIB's land and resource base is estimated to be 70 -100 million dollars. We take a "Passive Management" approach to managing most of our lands. That means we do not manage our lands intensively. This method is one that is of least cost to the public. The level of management for other Borough land is determined by public demands on the properties or readying it for sale and the generation of revenue. Goal Manage Borough lands for the maximum benefit of Borough residents. Provide decision makers with the tools and information to make informed decisions on the allocation, use, and Development of Borough lands and resources. Continue to review and implement land sale strategies that are in balance with the real estate market. Facilitate the transfer of developable public lands to the private sector in a cost effective manner. Objectives for 2006 -2007 Prepare land for sale in the Womens Bay area. Sell land in the Monashka Bay area. Significant Budget Changes None Previous Year's Accomplishments Recorded the Plat of the subdivision of a 10 -acre parcel into 3 lots in Monashka Bay as reviewed and approved the Planning and Zoning Commission. Acquired land near North Star Elementary School for future expansion or sale. Acquired land near Bayside Fire Station (Fire Protection Area No. 1) for future expansion. Page 92 F1 1 u G RESOURCE MANAGEMENT $21,223 $11,500 $11,494 $11,500 $11,494 Employee Benefits REVENUES AND EXPENDITURES 0 0 0 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 4,550 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues Capital Outlay 0 0 0 0 Annual Use Permit $1,000 $1,000 $1,000 $1,000 $1,000 Interest Earnings 0 13,695 21,000 24,447 19,000 Gravel Sales 40,000 0 25,000 84,092 40,000 Principal Payments 9,206 17,294 0 161,791 17,900 Interest Paym ents 0 5,444 5,000 15,374 18,800 Land Leases 80 80 0 90 0 Use of Fund Balance 0 0 0 0 0 Transfer In - Debt Service 650,000 0 0 0 0 TOTAL $700,286 $37,513 $52,000 $286,794 $96,700 Expenditures Personnel Services $21,223 $11,500 $11,494 $11,500 $11,494 Employee Benefits 90 0 0 0 0 Contracted Services 8,195 5,496 4,550 373 4,550 Support Goods & Services 29,117 16,714 35,956 18,460 80,656 Capital Outlay 0 0 0 0 0 Operating Transfers 50,000 0 0 0 0 TOTAL $108,625 $33,710 $52,000 $30,333 $96,700 Page 93 PROGRAM BUDGET SUMMARY BUILDING AND GROUNDS FUNDS Program Description The operation and maintenance of Borough owned buildings, parking lots, parks and public grounds. Specifically, this includes snow removal, lawn maintenance, park maintenance and general building and grounds maintenance. It also includes rental of Borough -owned buildings. Goal To provide adequate annual maintenance to Borough owned buildings, parks, and other Borough facilities in a safe manner to prevent liability issues. To provide for snow removal and parking lot maintenance around all Borough facilities, including school buildings. Objectives for 2006 -2007 • Create a checklist for the review of KIB buildings, grounds and parks. • Review the KIB Building air handling and boiler systems. Significant Budget Changes No significant budget changes. Page 94 BUILDING AND GROUNDS REVENUES AND EXPENDITURES Page 95 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues Interest Earnings $0 $5,875 $3,000 $10,483 $0 Rents & Royalties - KIB 216,480 226,420 216,480 226,420 228,620 -City of Kodiak 72,387 72,387 72,320 72,387 78,590 -KIBSD 104,510 104,510 95,560 96,173 100,290 - Borough Building Annex 10,263 9,768 14,750 10,668 9,770 -Day Care Assistance 4,460 4,460 5,890 12,798 4,710 Use of Fund Balance 0 0 28,000 0 65,000 Transfers In- General Fund KIB 50,670 0 0 0 0 Transfers In- Facilities Fund 268,540 208,880 212,000 140,560 220,000 TOTAL $727,310 $632,300 $648,000 $569,489 $706,980 Expenditures Borough Building $343,315 $258,301 $282,530 $272,765 $341,160 KIB Mental Health Center 5,270 5,470 39,970 31,382 11,000 School Buildings 400,290 366,007 303,000 238,422 333,820 Parks Operation & Maintenance 13,413 11,286 22,500 6,910 21,000 TOTAL $762,288 $641,064 $648,000 $549,479 $706,980 Page 95 PROGRAM BUDGET SUMMARY BUILDING AND GROUNDS FUND - BOROUGH BUILDING Program Description The Borough Building provides administrative office space for Borough government, City of Kodiak government and the Kodiak Island Borough School District — Central offices. It is also the site of Assembly Chambers and is the community's Emergency Response Center during disasters. Goal To provide adequate lawn care, snow removal and general routine maintenance in an effort to provide a safe and pleasing appearance. Objectives for 2006 -2007 • Provide maintenance to the air handling and boiler systems. • Maintain adequate level of lawn maintenance. • Maintain adequate level of snow /ice removal. • Provide adequate routine maintenance of Building (paint, roof cleaning etc). • Relocate emergency generator. Significant Budget Changes No significant budget changes. Page 96 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 i BOROUGH BUILDING EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Expenditures Personnel Services $45,120 $48,170 $51,060 $52,958 $28,480 Fringe Benefits 12,411 17,195 17,740 21,733 14,085 Contracted Services 0 2,912 0 0 10,000 Support Goods & Services 185,784 186,726 204,730 197,206 279,095 Capital Outlay 0 3,298 9,000 868 9,500 Operating Transfers 100,000 0 0 0 0 TOTAL $343,315 $258,301 $282,530 $272,765 $341,160 PERSONNEL Number of Employees Position: F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 Maintenance Worker 0.5 0.5 0.5 0.5 Page 97 PROGRAM BUDGET SUMMARY BUILDING AND GROUNDS FUND - MENTAL HEALTH CENTER Program Description The Kodiak Island Borough apartments accommodate a variety of needs including rehabilitation housing, therapy programs, and administration offices for the Providence Kodiak Island Mental Health Center. Goal To provide annual maintenance services to ensure a safe, usable environment. Objectives for 2006 -2007 • Provide for owner responsible maintenance Significant Budget Changes No significant budget changes. Page 98 MENTAL HEALTH CENTER EXPENDITURES Page 99 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Expenditures Personnel Services $0 $0 $1,000 $0 $1,000 Fringe Benefits 0 0 0 0 0 Support Goods & Services 5,270 5,470 38,970 31,382 10,000 Capital Outlay 0 0 0 0 0 TOTAL $5,270 $5,470 $39,970 $31,382 $11,000 Page 99 PROGRAM BUDGET SUMMARY BUILDING AND GROUNDS FUND - SCHOOL BUILDINGS Program Description This program provides insurance on all Borough owned school buildings; provides snow removal and sanding of all school parking lots as well as removal of winter sand and gravel from parking lots in the spring. Goal Provide owner responsible maintenance and services. Objectives for 2006 -2007 • Identify a school facility maintenance list. • Provide a painting schedule to address needed exterior maintenance for all buildings Significant Budget Changes No significant budget changes. Page 100 1 SCHOOL BUILDINGS ' Expenditures F.Y. 2006 Personnel Services F.Y. 2007 Employee Benefits ACTUAL Contracted Services ' Support Goods & Services $135 Capital Outlay $1,000 Operating Transfers ' TOTAL 1 Ul EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET $135 $3,069 $1,000 $2,916 $2,000 37 1,143 0 1,485 1,320 0 0 0 0 0 300,118 216,967 222,000 233,347 280,500 0 4,558 80,000 0 50,000 100,000 140,270 0 674 0 $400,290 $366,007 $303,000 $238,422 $333,820 Page 101 PROGRAM BUDGET SUMMARY BUILDING AND GROUNDS FUND -PARKS OPERATION AND MAINTENANCE Program Description This program is managed and operated by the Kodiak Island Borough Engineering and Facilities department. The Engineering and Facilities department is responsible for the direct operations, maintenance and repair of all KIB owned parks and recreation facilities, which include: Kodiak Recreation Facility (ball field and BMX park), the Anton Larsen Bay dock, Island Lake Creek Trail, Monashka Bay Park, Womens Bay Parks, Mill Bay Park, Otmeloi Park, and the Chiniak School Park. Goal To provide a safe system of parks and facilities for the diverse recreational needs of Borough residents. Objectives for 2006 -2007 • Complete the BMX bike facility • Maintain existing parks and remove hazards • Work with the City of Kodiak on a shared maintenance program Significant Budget Changes No significant budget changes. Page 102 PARKS EXPENDITURES Page 103 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Expenditures Personnel Services $7,385 $1,785 $1,000 $2,875 $8,000 Fringe Benefits 2,107 557 0 122 0 Contracted Services 2,015 7,875 15,000 2,596 7,500 Support Goods & Services 1,906 1,069 5,500 1,317 5,500 Capital Outlay 0 0 1,000 0 0 TOTAL $13,413 $11,286 $22,500 $6,910 $21,000 Page 103 1 PROGRAM BUDGET SUMMARY I COASTAL MANAGEMENT ' Program Description The passage of the Alaska Coastal Management Act in 1977 created the opportunity for local governments, rural regions, and the State of Alaska to cooperatively manage the use of Alaska's coastal resources with the federal government. The Alaska Coastal Management Program (ACMP) provides a framework for the orderly and balanced development of Alaska's coast, with full opportunity for coastal residents to take part in the planning and permitting processes in their region. ' The Kodiak Island Borough participates in the ACMP through the Kodiak Island Borough Coastal Management Program/Plan. Goal , Update, as needed, the Kodiak Island Borough Coastal Management Program ( KIBCMP). Fully participate in project reviews initiated by the state or federal governments. Continue the full integration of the KIBCMP into the activities of the Kodiak Island Borough Community , Development Department. Objectives for 2006 -2007 • Continue to participate through review, analysis, and comment at the programmatic and policy levels of the ACMP. • Continue to participate through review, analysis, and comment in ACMP project reviews. ' • Continue staff level participation in the regional, district and statewide conferences. • Continue staff level participation in the newly organized Alaska Coastal District Association (ACDA). • Initiate a strategy for updating the KIBCMP one ACMP regulatory changes, have been fully adopted. , Significant Budget Changes , No significant budget changes. Previous Year's Accomplishments , ❖ Review of approximately 35 projects for coastal consistency. Page 104 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 COASTAL MANAGEMENT $38,154 $15,329 $14,900 REVENUES AND EXPENDITURES Contracted Services 4,490 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 5,650 Capital Outlay 0 State of Alaska Grants $44,649 $1,805 $31,208 $36,072 $25,650 TOTAL $44,649 $1,805 $31,208 $36,072 $25,650 Expenditures Personnel Services $38,154 $15,329 $14,900 $2,988 $15,500 Contracted Services 4,490 3733 15,758 0 4,500 Support Services 2,004 1,743 1,450 160 5,650 Capital Outlay 0 0 0 0 0 TOTAL $44,648 $20,805 $32,108 $3,148 $25,650 PERFORMANCE INDICATORS F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL ESTIMATED PROJECTED Vessel and facility contingency plans reviewed 0 0 1 1 Federal and state project reviews 0 35 40 40 Page 105 1 PROGRAM BUDGET SUMMARY LOCAL EMERGENCY PLANNING COMMITTEE Program Description The Local Emergency Planning Committee (LEPC) of the Kodiak Island Borough has been established pursuant to federal and state laws. LEPC's are required by federal law to: establish procedures for receiving and processing requests from the public for information about hazardous materials in the region; prepare and periodically review the local emergency operations plan; evaluate the need for resources necessary to develop, implement and exercise the emergency operations plan, and submit recommendations to local governments; and serve as an advisory committee to local government with respect to emergency planning, training and response. Goal To continue to locally implement the requirements of SARA Title III, known as the Federal Community Right -to- Know program. To develop and implement a comprehensive training program for emergency responders in the region. To provide designated staff support for the LEPC and region -wide emergency response planning programs. Objectives for 2006 -2007 • Continue region -wide emergency response planning programs. • Implement the Kodiak Emergency Operations Plan update. • Participate in the design and implementation of a full -scale Homeland Security Exercise (FSE) that exercises Borough and City personnel and resources. Significant Budget Changes KIB shares administration of this fund with the City of Kodiak by "trading off' every other year. There are no significant budget changes. Page 106 r 1 1 t _J LEPC $22,429 $12,563 $0 $3,902 REVENUES AND EXPENDITURES Contracted Services 0 0 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 Support Goods & Services ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 5,510 FEMA GRANT LEPC Grant $20,000 $18,001 $0 $0 $20,000 EOP Grant 17,937 0 0 0 0 TOTAL $37,937 $18,001 $0 $0 $20,000 Expenditures Personnel Services $22,429 $12,563 $0 $3,902 $10,000 Contracted Services 0 0 0 0 4,490 Support Goods & Services 2,683 5,520 0 0 5,510 FEMA GRANT Personnel Services 1,668 0 0 0 0 Contracted Services 702 0 0 0 0 Support Goods & Services 9 9 0 0 0 TOTAL $27,491 $18,092 $0 $3,902 $20,000 Page 107 PROGRAM BUDGET SUMMARY WOMENS BAY ROAD SERVICE AREA Program Description The Womens Bay Road Service Area provides maintenance service to roads within the service area, including snow removal and ice control, culvert and drainage ditch repairs and maintenance. Goal To provide safe, well - drained and maintained road surfaces, free of snow and ice within current budgetary constraints. Objectives for 2006 -2007 • Continue the program of improving and maintaining existing drainage ditches area wide. • To improve gravel road surfaces. Significant Budget Changes No significant budget changes. Page 108 WOMENS BAY ROAD SERVICE $877 $673 $600 $400 $600 Fringe Benefits REVENUES AND EXPENDITURES 250 175 250 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 32,000 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues Grading /Ditching 54,077 23,422 31,350 7,085 Property Taxes $90,276 $93,550 $93,000 $96,059 $96,300 Annual Use Permits 20,000 20,000 20,000 20,000 20,000 State Shared Revenue 0 0 0 0 0 Interest Earnings 2,191 5,051 900 9,318 3,300 Use of Fund Balance 0 0 0 0 0 TOTAL $112,467 $118,601 $113,900 $125,377 $119,600 Expenditures Personnel Services $877 $673 $600 $400 $600 Fringe Benefits 233 188 250 175 250 Snow Removal /Sanding 71,623 17,623 30,000 31,913 32,000 Repairs & Maintenance 35,976 72,896 30,000 86,926 32,000 Grading /Ditching 54,077 23,422 31,350 7,085 33,050 Support Goods & Services 773 686 21,700 576 21,700 Transfers Out 0 0 0 0 0 TOTAL $163,559 $115,488 $113,900 $127,075 $119,600 PERFORMANCE INDICATORS Number of miles 12 12 12 12 12 Road Service Cost per Mile $13,630 $9,624 $9,492 $10,590 $9,967 Page 109 PROGRAM BUDGET SUMMARY SERVICE DISTRICT NO. 1 Program Description Service District No. 1 provides maintenance service to roads within the district, including snow removal, ditching and grading. Service District No. 1 is comprised of Tax Code Area (TCA) 2 and TCA 7. Goal To continue providing road maintenance service within the district. To provide safe and useable roads within the district. Objectives for 2006 -2007 • To continue encouraging the Borough to pursue funds for paving all the roads in the district. • To provide proper road signage and dust abatement. Significant Budget Changes The mil rate is being increased from 1.0 to 1.25 mils to accurately reflect road maintenance costs over the last three years. Page 110 SERVICE AREA NO. 1 $5,595 $5,684 $5,900 $4,698 $5,900 Fringe Benefits REVENUES AND EXPENDITURES 1,350 1,006 1,350 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 95,000 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues Grading /Ditching 108,220 68,324 50,000 58,598 Property Taxes $141,321 $154,016 $162,000 $162,305 $215,000 Payment in Lieu of Taxes 0 0 500 0 0 State Shared Revenue 0 0 0 0 0 Penalties & Interest 4,050 4,840 2,000 13,077 0 Use of Fund Balance 0 0 39,850 0 0 TOTAL $145,371 $158,856 $204,350 $175,382 $215,000 Expenditures Personnel Services $5,595 $5,684 $5,900 $4,698 $5,900 Fringe Benefits 1,159 1,263 1,350 1,006 1,350 Snow Removal /Sanding 69,785 50,316 95,000 51,389 95,000 Repairs & Maintenance 18,720 73,507 50,000 72,568 61,350 Grading /Ditching 108,220 68,324 50,000 58,598 50,000 Support Goods & Services 500 461 2,100 610 1,400 TOTAL $203,979 $199,555 $204,350 $188,869 $215,000 PERFORMANCE INDICATORS Number of miles 10 10 10 10 10 Road Service Cost per Mile $20,398 $19,956 $20,435 $18,887 $21,500 Page 111 PROGRAM BUDGET SUMMARY SERVICE AREA NO.2 Program Description Service Area No. 2 is responsible for water and sewer services in the service area. Service Area No. 2 is comprised of Tax Code Areas 4, 6 and 8. Goal To obtain water and sewer services for this area. Objectives for 2006 -2007 • This service district is currently inactive. Significant Budget Changes Fund balance will be used to defray any administrative costs incurred over the next year. Page 112 SERVICE AREA NO.2 REVENUE F.Y. 2004 ACTUAL Revenues Interest Earnings $42 TOTAL $42 :S AND EXPENDITURES F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL BUDGET ACTUAL BUDGET _ $95 $0 $164 $0 $95 $0 $164 $0 Expenditures Support Goods & Services $0 $0 $0 $0 $0 TOTAL $0 $0 $0 $0 $0 Page 113 PROGRAM BUDGET SUMMARY MONASHKA BAY ROAD SERVICE AREA Program Description Monashka Bay Road Service Area is responsible for the road maintenance in the service area. Goal To maintain, repair, and provide snow removal for roads in the Monashka Bay Road Service Area. Objectives for 2006 -2007 • To provide the same high standard of safe and adequate roads as previous years. • To repair /rebuild roads, ditches and culverts within the service area, bringing them up to current Borough code. • Develop a road maintenance plan. Significant Budget Changes The mill rate is increasing from 1.75 to 2.50 to keep up with road maintenance costs. Page 114 1 1 1 1 i 1 1 1 1 f 1 1 1 1 1 1 1 1 1 t 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 MONASHKA BAY ROAD SERVICE AREA REVENUES AND EXPENDITURES Expenditures Personnel Services F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 Snow Removal /Sanding ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 15,112 4,905 20,000 921 20,000 Property Taxes $23,884 $23,939 $28,756 $28,135 $40,500 State Revenue Sharing 0 0 0 0 0 Interest Earnings 672 1,685 183 2,698 2,675 Use of Fund Balance 0 0 14,076 0 0 TOTAL $24,556 $25,624 $43,015 $30,833 $43,175 Expenditures Personnel Services $507 $634 $515 $408 $825 Snow Removal /Sanding 11,003 4,625 12,000 15,630 15,000 Repairs & Maintenance 15,112 4,905 20,000 921 20,000 Grading /Ditching 3,100 26,944 10,000 6,993 7,000 Support Goods & Services 105 219 500 76 350 TOTAL $29,827 $37,327 $43,015 $24,028 $43,175 PERFORMANCE INDICATORS Number of miles 2 2 2 2 2 Road Service Cost per Mile $14,914 $18,664 $21,508 $12,014 $21,588 Page 115 PROGRAM BUDGET SUMMARY BAY VIEW ROAD SERVICE AREA Program Description Bay View Road Service Area is responsible for the road maintenance in the service area. Goal To maintain, repair, and provide snow removal for the roads in the Bay View Road Service Area. Objectives for 2006 -2007 • To provide safe and adequate roads. Significant Budget Changes No significant budget changes. Page 116 1 1 1 1 1 1 1 1 1 1 1 BAYVIEW ROAD SERVICE AREA REVENUES AND EXPENDITURES Expenditures Personnel Services F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 Fringe Benefits ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 5,383 2,102 2,500 2,620 2,500 Property Taxes $5,587 $5,587 $4,600 $5,611 $4,600 State Shared Revenue 0 0 0 0 0 Interest Earnings 61 40 200 45 200 TOTAL $5,648 $5,627 $4,800 $5,656 $4,800 Expenditures Personnel Services $161 $33 $0 $33 $0 Fringe Benefits 47 10 0 16 0 SnowRemoval/Sanding 5,383 2,102 2,500 2,620 2,500 Repairs & Maintenance 300 1,418 1,000 978 1,000 Gradirxt/Ditehing 7,755 1,852 1,300 763 1,300 Support Goods & Services 72 9 0 8 0 TOTAL $13,718 $5,424 $4,80 $4,418 $4,800 PERFORMANCE INDICATORS Number of miles 1 1 Road Service Cost per (vile $13,718 $5,424 Page 117 1 1 1 $4,800 $4,418 $4,800 1 PROGRAM BUDGET SUMMARY ' FIRE PROTECTION AREA NO. 1 (BAYSIDE FIRE DEPARTMENT) Program Description I Bayside Fire Department is responsible for providing fire suppression, fire prevention, and EMS services to the citizens of Fire Protection Area No. 1. Goal To minimize the impact on life and property attributable to fire through public education and fire suppression programs. To maintain a stable 1.5 mil rate for these services to Fire Protection Area No. 1 property owners. Objectives for 2006 -2007 • To maintain a force of 20 to 25 trained fire fighters. • To respond with a fire engine and fire fighters within five minutes of an alarm on 90% of all calls. • To increase personnel's expertise in fire prevention and suppression activities. • To complete a 20' x 30' addition to the present utility building. • To complete the installation of new roofing and siding to the existing utility building. • Purchase a new 1,250 gallon per minute "pumper" fire engine. • To complete the foundation excavation for a four bay addition to the Bayside Station. • To complete the design and engineering for the four bay addition. • Build a four bay addition to the Bayside Fire Station. • To complete the design and engineering for new restroom facilities, media library, mechanical rooms and storage loft. Significant Budget Changes No significant budget changes. Page 118 1 1 t 1 I Page 119 FIRE PROTECTION AREA NO. 1 ' REVENUES AND EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET ' Revenues Grants $0 $142,371 $0 $0 $0 Property Taxes 309,435 330,757 330,000 345,551 346,000 Payment in Lieu of Taxes 0 0 500 0 0 1 State Shared Revenue 0 0 0 0 0 Interest Earnings 21,801 18,406 0 43,044 0 Instruction /space rent/other 5,289 5,229 5,500 6,909 5,500 Use of Fund Balance 0 0 85,250 0 349,660 TOTAL $336,525 $496,763 $421,250 $395,504 $701,160 Expenditures Salaries $61,086 $63,388 $70,640 $67,650 $73,340 Volunteers 23,715 16,350 22,000 23,295 24,000 Fringe Benefits 20,898 19,989 29,310 24,911 30,020 Contracted Services 2,320 4,105 13,000 5,124 13,000 Support Goods & Services 125,809 90,785 141,300 99,444 140,800 Capital Outlay 339,459 179,320 115,000 35,033 380,000 1 Depreciation 0 0 30,000 0 40,000 Transfers Out 0 0 0 0 0 TOTAL $573,287 $373,937 $421,250 $255,457 $701,160 1 t 1 I Page 119 PROGRAM BUDGET SUMMARY WOMENS BAY FIRE DEPARTMENT Program Description The Womens Bay Volunteer Fire Department is responsible for providing fire suppression services to the citizens of Womens Bay Fire Protection District. The department staff provides mutual aid response to emergency medical service (EMS) calls within the service area. The department also provides structural fire suppression by contract to the Airport Fire Protection Area. Goal To provide effective, safe and timely emergency response whenever called upon by the community. To minimize the impact on life and property caused by fire. To provide first responder emergency medical response service through training and continuing medical education reducing initial care patient contact until advanced support and transport can be provided. To maintain a constitution and bylaws. Maintain up -to -date equipment. Objectives for 2006 -2007 • To respond with an engine company within ten minutes of an alarm on 90% of all calls for assistance • To maintain a trained force of 20 fire fighters and support staff • Work toward achieving compliance with NFPA and OSHA regulations • To increase personnel expertise in fire prevention and suppression activities • To participate and support in mutual aid agreements for the Kodiak Area community • To continue in our multi -year program to replace fire apparatus and response vehicles to meet current NFPA requirements • To research and apply for grant monies as they become available to augment the annual operating budget of the department • Develop and formalize SOP /SOG to better define department operations • Equip the new tanker with up to date equipment Significant Budget Changes No significant budget changes. i t Page 120 1 WOMENS BAY FIRE DEPARTMENT Revenues Property Taxes State Grant State Shared Revenue Interest Earnings Other Rent Use of Fund Balance Operating Transfers TOTAL Expenditures Personnel Services Fringe Benefits Contracted Services Support Goods & Services Capital Outlay Debt Service Operating Transfers TOTAL REVENUES AND EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET $58,744 $60,907 $63,000 $62,476 $63,000 3,995 0 0 0 0 0 297 0 0 0 1,878 1,669 500 3,609 500 0 30 0 9,535 0 9,441 9,000 9,000 0 9,000 0 0 262,000 0 0 16,780 18,757 16,700 16,467 16,700 $90,838 $90,660 $351,200 $92,087 $89,200 $3,163 $618 $3,000 $1,670 $3,000 3,219 96 650 499 0 110 30 0 0 0 40,807 52,237 52,825 39,428 48,400 244,091 (1,438) 284,725 222,457 27,800 0 1,570 10,000 1,275 10,000 0 0 0 0 0 $291,390 $53,113 $351,200 $265,329 $89,200 Page 121 PROGRAM BUDGET SUMMARY KODIAK ISLAND BOROUGH AIRPORT FIRE PROTECTION DISTRICT Program Description This program is responsible for providing fire suppression and fire prevention services to the citizens of the Kodiak Island Borough Airport Fire Protection Area. Goal To minimize the impact on life and property attributable to fire through the development and implementation of fire prevention and suppression programs. Objectives for 2006 -2007 • To continue contracting with Womens Bay Fire Department to provide the fire service to the district. Significant Budget Changes No significant budget changes. Page 122 1 1 1 1 1 1 1 1 1 1 1 1 Y 1 1 1 1 AIRPORT FIRE PROTECTION DISTRICT $16,780 $18,757 $15,400 $16,467 $16,700 REVENUES AND EXPENDITURES 30 90 26 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 0 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues $16,730 Property Taxes $15,381 $15,520 $15,390 $15,204 $15,390 Penalties & Interest 283 971 100 1,176 1,000 Use of Fund Balance 0 0 0 0 340 TOTAL $15,664 $16,491 $15,490 $16,380 $16,730 Expenditures Contracted Services $16,780 $18,757 $15,400 $16,467 $16,700 Support Goods & Services 27 30 90 26 30 Operating Transfers 0 0 0 0 0 TOTAL $16,807 $18,787 $15,490 $16,493 $16,730 Page 123 PROGRAM BUDGET SUMMARY WOODLAND ACRES STREET LIGHT AREA Program Description The Woodland Acres street light area shall provide construction, operation and maintenance of streetlights on public streets within its boundaries. Goal Provide street lighting to ensure a safer environment for all residents and visitors of Woodland Acres. Objectives for 2006 -2007 • To maintain and adequately fund the current street lights throughout Woodland Acres. Significant Budget Changes No significant budget changes. Page 124 WOODLAND ACRES STREET LIGHTS $0 $0 $0 $0 Support Goods & Services 5,448 REVENUES AND EXPENDITURES 5,659 6,000 Capital Outlay 0 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 $5,476 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues Property Taxes $0 $0 $0 $0 $0 Interest Earnings 271 480 500 619 600 Use of Fund Balance 0 0 4,500 0 5,400 TOTAL $271 $480 $5,000 $619 $6,000 Expenditures Personnel Services $0 $0 $0 $0 $0 Support Goods & Services 5,448 5,476 4,030 5,659 6,000 Capital Outlay 0 0 970 0 0 TOTAL $5,448 $5,476 $5,000 $5,659 $6,000 Page 125 PROGRAM BUDGET SUMMARY TRINITY ISLANDS LIGHTING DISTRICT Program Description The Trinity Islands street light service area shall provide construction, operation and maintenance of streetlights on public streets within its boundaries. Goal Provide street lighting to ensure a safer environment for all residents and visitors of Trinity Islands. Objectives for 2006 -2007 • To maintain streetlights throughout Trinity Islands subdivision. Significant Budget Changes This service area was established in fiscal year 2004. Page 126 TRINITY ISLANDS LIGHTING DISTRICT $0 $655 $0 $655 REVENUES AND EXPENDITURES 2,945 1,822 2,945 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 0 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues Property Taxes $3,599 $3,721 $3,600 $3,892 $3,600 Interest Earnings 0 0 0 0 0 Proceeds from Debt 0 0 0 0 0 TOTAL $3,599 $3,721 $3,600 $3,892 $3,600 Expenditures Personnel Services $585 $0 $655 $0 $655 Support Goods & Services 1,099 1,773 2,945 1,822 2,945 Capital Outlay 7,500 0 0 0 0 TOTAL $9,184 $1,773 $3,600 $1,822 $3,600 Page 127 PROGRAM BUDGET SUMMARY MISSION LAKE TIDE GATE SERVICE AREA Program Description This service area provides for tide -gate maintenance to the residents of the Mission Lake area. Goal Provide maintenance of the newly installed tide gate. Objectives for 2006 -2007 • To remove debris and maintain the tide gate. Significant Budget Changes This service area was established in fiscal year 2004. Page 128 MISSION LAKE TIDE GATE Revenues Property Taxes Interest Earnings Miscellaneous -Other Proceeds from Debt TOTAL Expenditures Personnel Services Contracted Services Support Goods & Services Capital Outlay TOTAL REVENUES AND EXPENDITURES $3,939 $1,000 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET 1,354 200 12 200 $2,463 $2,456 $2,460 $2,456 $2,460 0 0 0 0 0 10,000 0 0 0 0 0 0 0 0 0 $12,463 $2,456 $2,460 $2,456 $2,460 $4,624 $3,939 $1,000 $366 $1,000 0 0 0 1,000 0 184 1,354 200 12 200 0 0 1,260 0 1,260 $4,808 $5,293 $2,460 $1,378 $2,460 Page 129 PROGRAM BUDGET SUMMARY TRINITY ISLANDS SUBDIVISION PAVING DISTRICT Program Description This is a local improvement district created to pave the roads in the Trinity Islands housing subdivision. This district was funded through an inter -fund loan that will be paid back through special assessments. Goal To maintain the roads within new Trinity Islands housing subdivision. Objectives for 2006 -2007 • To maintain the 428 lineal feet of new pavement. Significant Budget Changes This service area was formed mid -year in fiscal year 2004. Page 130 t 1 1 i 1 1 1 1 1 1 1 i 1 i 1 1 1 1 1 TRINITY ISLANDS PAVING $0 $182 $0 REVENUES AND EXPENDITURES Support Goods and Services 0 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 7,910 Operating Transfer, capital projects 0 Special Assessments $0 $0 $22,140 $42,171 $22,140 TOTAL $0 $0 $22,140 $42,171 $22,140 Expenditures Allocated Salaries $0 $182 $0 $0 $0 Support Goods and Services 0 43 14,230 38 14,230 Debt Service 0 0 7,910 0 7,910 Operating Transfer, capital projects 0 216,508 0 0 0 TOTAL $0 $216,733 $22,140 $38 $22,140 Page 131 PROGRAM BUDGET SUMMARY KODIAK ARTS COUNCIL Program Description The Kodiak Arts Council serves the Kodiak Island Borough as a leader and representative in matters that affect the arts, and works with the Kodiak Island Borough School District and other community agencies to facilitate arts education. The Kodiak Arts Council facilitates arts education programs and services; presents a Performing Arts Series of touring artists and local artists and performances; produces theater, dance, music and cultural events; serves local artists and arts organizations; offers youth arts programs, including summer programs; advocates for arts awareness, development and support; works with Kodiak's diverse to facilitate cultural development and multi - cultural awareness and preservation; encourages community understanding, tolerance, unity, and respect through cultural education, participation, and sharing. Goal To increase public awareness and participation in the Arts To ensure effective education in the Arts To advocate and promote public and private support of the Arts To provide services to artists, arts organizations, and the community To define Borough arts needs and recommend long -range solutions and programs. Objectives for 2006 -2007 • Present cultural awareness education for children and adults through Summer Arts for Youth, multi - cultural performances, workshops, and classes. • Develop and educate creative local talent through workshops, classes, rehearsals, performances, and interaction with professional touring artists. • Present a Performing Arts Series of the finest artistic quality that addresses the Borough's multi - cultural diversity. • Train teachers to use the arts as an inter - disciplinary educational tool. • To increase earned and contributed income by the quality and worth of programming and increase audience /membership support. Significant Budget Changes No significant budget changes. Page 132 KODIAK ARTS COUNCIL Revenues Council Reimbursement TOTAL Expenditures Personnel Services Employee Benefits Insurance and Bonding TOTAL REVENUES AND EXPENDITURES $45,875 $44,410 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET 490 0 423 0 $53,838 $56,704 $56,910 $60,423 $65,780 $53,838 $56,704 $56,910 $60,423 $65,780 $44,411 $45,875 $44,410 $45,659 $47,160 9,427 12,295 12,500 16,027 18,620 434 490 0 423 0 $54,272 $58,660 $56,910 $62,109 $ 65, 7 80 PERFORMANCE INDICATORS Membership Audiences: Com m unity Perform ances Student/School events Classes, Workshops, Exhibits F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL ESTIMATED PROJECTED 850 875 900 900 4000 4000 3500 3500 1,400 1,400 1,500 1,500 400 400 400 400 Page 133 1 PROGRAM BUDGET SUMMARY FACILITIES FUND ' Program Description , This fund was established with the proceeds from the sale of Shuyak Island. The Borough entered into an agreement with the Exxon Valdez Oil Spill Trustee Council to sell all of its rights on Shuyak Island for $42 million to the State of Alaska. , The Borough received $8 million in fiscal year 1996, $2,194,266 in fiscal year 1997, $4,000,000 in fiscal years 1998 through 2002 and received the balance of $11,805,734 in fiscal year 2003. $6 million was utilized in construction of the Kodiak Fisheries Research Center and the remaining $36 million established the Facilities Fund. , The purpose of this fund is to maintain the proceeds of the sale and use interest earnings to help support Borough operations. Provisions have been established dictating that 85% of the previous years' interest earnings can be used to pay for maintenance and repair of Borough buildings, insurance on Borough buildings, and upgrade and reconstruction of existing ' buildings. Additionally, up to 50% of the total amount available in any one fiscal year can be used toward debt service on general obligation bonds issued for facilities construction. Goal ' Preserve the principal of the fund; and to achieve a fair rate of return on our investments. Objectives for 2006 -2007 The Borough would like to realize a 4.7% rate of return on our Facilities Fund investments this year. ' Significant Budget Changes No significant budget changes ' L� t Page 134 1 t 1 1 1 1 1 1 1 1 1 i 1 1 1 1 1 1 1 1 FACILITIES FUND $0 $0 $284,000 $0 $623,500 Operating Transfers REVENUES AND EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 220,000 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues Capital Projects 622,384 125,000 114,000 114,000 Interest Earnings $723,909 $1,114,072 $1,680,000 $1,781,653 $1,800,000 Proceeds - Shuyak Island 0 0 0 0 0 TOTAL $723,909 $1,114,072 $1,680,000 $1,781,653 $1,800,000 Expenditures Contingencies $0 $0 $284,000 $0 $623,500 Operating Transfers Building and Grounds 268,540 208,880 212,000 140,560 220,000 Debt Service 404,060 550,368 680,000 462,475 714,000 Capital Projects 622,384 125,000 114,000 114,000 242,500 Capital Projects, State funds 0 0 390,000 0 0 TOTAL $1,294,984 $884,248 $1,680,000 $717,035 $1,800,000 Page 135 lJ PROGRAM BUDGET SUMMARY I TOURISM DEVELOPMENT I Program Description I The purpose of this fund is to promote increased development of the tourism industry and various tourism programs within the Kodiak Island Borough. ' Goal Implement tourism development activities including, but not limited to, fishing, bear viewing, hiking and lodging. Objectives for 2006 -2007 • To fund a variety of tourism packages available within the Kodiak Island Borough. ' Significant Budget Changes , No significant budget changes. t I. 11 Page 136 1 TOURISM DEVELOPMENT Revenues Bed Tax Revenue Interest Earnings TOTAL Expenditures Contracted Services Kodiak Convention Bureau Village portion Support Goods & Services TOTAL REVENUES AND EXPENDITURES $0 . $0 F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET 0 0 0 0 $56,177 $20,886 $45,000 $47,535 $45,000 355 24 0 0 0 $56,532 $20,910 $45,000 $47,535 $45,000 $0 $0 . $0 $0 $0 45,000 45,000 45,000 45,000 45,000 0 0 0 0 0 0 0 0 0 0 $45,000 $45,000 $45,000 $45,000 $45,000 Page 137 PROGRAM BUDGET SUMMARY FULLER TRUST Program Description This trust was established to fund new equipment purchases at the Kodiak Island Hospital; and to make payment to six beneficiaries. The funding for the trust came from the cash and assets of the Fern Fuller Charitable Unitrust. Goal To make all payments in a timely manner. Objectives for 2006 -2007 • To make timely payments to the trust beneficiaries • To purchase needed equipment for the hospital. Significant Budget Changes No significant budget changes. Page 138 i 1 1 1 i 1 1 1 1 1 1 i 1 i 1 1 1 1 1 FULLER TRUST REVENUES AND EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues Fuller Trust Proceeds $171,042 $75,000 $75,000 $75,000 $75,000 Use of Fund Balance 0 0 0 0 0 TOTAL $171,042 $75,000 $75,000 $75,000 $75,000 Expenditures Beneficiary payments $24,500 $22,500 $8,500 $8,500 $8,500 Insurance and bonding 0 47 0 127 0 Operating Transfer, hospital 0 0 66,500 66,500 66,500 TOTAL $24,500 $22,547 $75,000 $75,127 $75,000 Page 139 DEBT SERVICE FUNDS 1 DEBT SERVICE FUND I Debt Administration The necessity to incur debt in order to finance the capital program carries with it the obligation to manage the debt program effectively. As a result, the level of outstanding debt and the borough's ability to incur and repay additional debt bear careful examination. The Kodiak Island Borough has a written debt policy in the Kodiak Island borough Code, Title 3 — Revenue and Finance, Chapter 3.01 — Fiscal Policy, 3.01.030 ' Debt Policies ' The policy is used to analyze the existing debt position of the borough and assess the impact of future financing requirements on the borough's ability to service additional debt. ' Review and analysis of the Borough's debt provides a capital financing plan for infrastructure and other improvements. Both available resources and Borough needs drive the Borough's debt issuance program. Long -term projected financing is linked with economic, demographic and financial resources expected to be available to repay the debt. The use of debt ratios is only one tool of many in determining a course of action and is not used exclusively in making decisions. ' Decisions regarding the use of debt is based upon a number of factors including, but not limited to, the long -term needs of the Borough and the amount of resources available to repay the debt. The Kodiak Island Borough has a five year Capital Improvement Program. Each year the assembly updates the program to maintain the list of needed capital improvement priorities. Capital funds spent on projects will result in long -term economic growth beyond the initial capital expenditure and will in turn contribute significantly to the economy and revenue for many years. I Legal Debt Margin The State of Alaska Statutes and the Kodiak Island Borough Code do not establish a legal debt margin. The voters of the ' Kodiak Island Borough ultimately determine the amount of debt that can be outstanding. The citizens of the borough pass a ballot question giving the Borough the authority to issue bonds to fund projects. I The Borough maintains debt at a manageable level considering economic factors including population, assessed valuation, and other current and future tax- supported essential service needs. 3,000 2,500 2,000 1,500 ' 1.000 ' 500 1 Per Capka Bonded debt Page 141 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Net debt as a percentage of the estimated market value of taxable property should not exceed two (2) percent. Between the years 1997 and 2006 the net debt as a percentage of estimated market value is over the two (2) percent because seventy (70) percent of the debt was reimbursed by the State of Alaska. Net Bonded Debt per Assessed Value 6.00% 5.00% 4.00% 3.00% 2.00% 0.00% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 The ratio of debt service expenditures as a percent of governmental fund expenditures should not exceed fifteen (15) percent. Debt Service Expense Per Govememental Funds Expense 13% 12% 11% 10% 9% 8% m 7% c m m 6% a 5% 4 °h 3% 2% 1% 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Years 1.00% Page 142 1 1 1 i 1 1 1 1 1 1 1 1 1 Fund Balance One measure of a funds financial strength is the level of its fund balance (i.e., revenues exceed expenditures). We estimate that the Debt Service Fund balance will amount to approximately ($81,512) at the end of fiscal year 2006. The Debt Service fund balance is maintained at levels to ensure that enough money is set aside to cover the obligations for each year. Debt Service Fund Balance 1,000,000 800,000 600,000 400,000 �a m 200,000 a C 0 LL - 200,000 - 400,000 - 600,000 1997 1998 1999 2000 2001 2002 2003 2004 Years Bond Ratings The Borough's bond ratings are further evidence of its financial strength. Page 143 Moody's Standard Investors Service And Poors Fitch Ratings General Obligation, 1998 AAA AAA General Obligation, 2000 E Aaa AAA General Obligation, 2000 F Aaa AAA General Obligation, 2003 Aaa AAA General Obligation, 2004C Aaa AAA General Obligation, 2004D Aaa AAA Such rankings mean the Borough's bonds are considered to be of excellent investment quality. Having solid financial policies and strong financial reserves are principle reasons for these excellent bond ratings. Page 143 General Obligation Bonds Series 1998 General Obligation Bonds Series 2000E General Obligation Bonds Series 2000F General Obligation Bonds Series 2003 General Obligation Bonds Series 2004C General Obligation Bonds Series 2004D Total Summary of Outstanding Debt 410,000 General Obligation Bonds 10,460,000 Outstanding FY 2007 Requirements Outstanding Balance Balance July 1,2006 Principal Interest June 30,2007 $2,080,000 9,225,000 60,000 396,496 9,165,000 830,000 700,000 150,000 41,313 120,000 1,030,000 1,030,000 8,810,000 310,000 49,460 27,038 378,034 580,000 L 10,870,000 410,000 440,975 10,460,000 $29,385,000 $1,333,315 $2,080,000 $31,465,000 Page 144 t u I Page 145 GENERAL OBLIGATION REFUNDING BONDS, 1998 SERIES A RETIREMENT SCHEDULE 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. Interest Principal Interest ' 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 $ 1,019,5 $ 11,264,096 t u I Page 145 GENERAL OBLIGATION BOND, 2000 SERIES E RETIREMENT SCHEDULE 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, W ohlforth, Vassar, Johnson & Brecht of Anchorage, Alaska. This bond was issued to repair the high school roof. The high school roof repair is scheduled to be completed by the fall of 2001. Fiscal year 2007 2008 2009 2010 2011 I it Page 146 1 Interest rate 4.88% 5.00% 5.00% 5.00% 5.00% Interest due August 01 20,656 17,000 13,000 8,875 4,500 $ 64,031 Principal due February 01 150,000 160,000 165,000 175,000 180,000 $ 830,000 Interest due February 01 Total 20,656 191,313 17,000 194,000 13,000 191,000 8,875 192,750 4,500 189,000 $ 64,031 $ 958,063 GENERAL OBLIGATION BOND, 2000 SERIES F RETIItEMENT SCHEDULE 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. The Peterson Project has already been completed. Page 147 Interest Principal Interest Fiscal Interest due due due year rate August 01 February 01 February Ol 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 $ 7� 8� $$ 700,000 $ 78,005 $ 856,010 Page 147 GENERAL OBLIGATION BOND, 2003 SERIES B RETIREMENT SCHEDULE 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 Interest due due February 15 February 15 Total 1,030,000 13,519 1,057,038 $ 1,030,000 $ 13,519 $ 1,057,038 Page 148 LJ I GENERAL OBLIGATION BOND, 2004 C RETIREMENT SCHEDULE ' 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. t i 1 Fiscal year 2007 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% 4.250% 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 1 192,892 185,142 178,236 171,011 163,573 155,817 147,636 139,136 130,836 122,136 113,136 103,501 93,194 82,229 70,569 58,082 45,032 31,041 15,960 .� L, 177,1 J / Principal due July 1 310,000 325,000 340,000 350,000 365,000 385,000 400,000 415,000 435,000 450,000 470,000 485,000 510,000 530,000 555,000 580,000 605,000 635,000 665,000 $ 8,810,000 Interst due January 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 $ 2,006,265 Total 703,034 703,378 699,246 699,584 704,390 703,453 701,771 704,971 702,971 705,271 701,636 706,695 705,424 707,799 708,651 708,114 711,073 712,001 15,960 $ 12,689,462 I Page 149 1 GENERAL OBLIGATION BOND, 2004 D RETIREMENT SCHEDULE 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. Fiscal year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Interest rate 3.00% 3.00% 3.00% 3.00% 3.50% 3.50% 3.50% 4.00% 4.00% 4.00% 4.00% 4.00% 4.50% 4.50% 4.50% 4.50% 5.00% 5.00% 5.00% Interest due November 1 223,563 217,413 211,113 204,588 197,913 189,863 181,550 172,975 162,775 152,175 141,175 129,775 117,875 103,925 89,300 74,113 58,250 39,750 20,375 $ 2,688,463 Principal due XT- _._._L.._ , 410,000 420,000 435,000 445,000 460,000 475,000 490,000 510,000 530,000 550,000 570,000 595,000 620,000 650,000 675,000 705,000 740,000 775,000 815,000 $ 10,870 Interst due May 1 217,413 211,113 204,588 197,913 189,863 181,550 172,975 162,775 152,175 141,175 129,775 117,875 103,925 89,300 74,113 58,250 39,750 20,375 $ 2,464, Total 850,975 848,525 850,700 847,500 847,775 846,413 844,525 845,750 844,950 843,350 840,950 842,650 841,800 843,225 838,413 837,363 838,000 835,125 835,375 $ 16,023, �1 1 'J t Page 150 1 SUMMARY OF BONDED DEBT SERVICE REQUIREMENTS TO MATURITY Annual principal and interest requirements on General Obligation Refunding and Construction Bonds Year Principal Interest Total 2007 2,080,000 1,333,315 3,413, 315 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 $31,465,000 $ 11, 708, 991 $43,173,991 Page 151 I PROGRAM BUDGET SUMMARY I DEBT SERVICE — EDUCATION AND HEALTH , Program Description This fund was established to finance and account for the payment of interest and principal on all general obligation , debts. Goal This fund accounts for the accumulation of money for payment of principal, interest, and fiscal agent fees related to serial bond debt incurred by the Borough to construct schools and a new hospital Objectives for 2006 -2007 , • To meet all debt service requirements when due, thus avoiding any charges for penalties or interest. , Significant Budget Changes No significant budget changes. ' Page 152 1 F L ' REVENUES AND EXPENDITURES ' F.Y. 2004 ACTUAL F.Y. 2005 ACTUAL F.Y. 2006 BUDGET F.Y. 2006 ACTUAL F.Y. 2007 BUDGET Revenues State Shared Revenues Debt Reimbursement - current $798,412 $926,187 $1,885,040 $2,129,906 $1,780,665 ' Debt Reimbursement- 2 yr lag 0 16,500 0 16,500 0 Interest Earnings 0 11,236 9,280 40,264 6,000 Other 720 747 0 (747) 0 Premium on Bonds 0 118,830 0 0 0 ' Transfers In 1,147,240 1,356,067 1,697,680 1,480,155 1,645,145 TOTAL REVENUES $1,946,372 $2,429,567 $3,592,000 $3,666,078 $3,431,810 ' Expenditures EDUCATION Legal Fees $0 $38,956 $0 $0 $0 Support Goods and Services 25,832 4,705 2,500 0 5,000 ' Principal Payments Loan Payable - EPA 20,833 10,416 0 0 0 General Obligation 1993 455,000 0 0 0 0 General Obligation 1998 25,000 30,000 30,000 30,000 30,000 General Obligation 2000 E 130,000 135,000 145,000 145,000 150,000 General Obligation 2000 F 95,000 105,000 110,000 110,000 120,000 ' General Obligation 2003 General Obligation 2004 C 28,000 0 498,000 490,000 508,000 490,000 508,000 310,000 520,000 325,000 General Obligation 2004 D 0 0 180,000 180,000 410,000 Interest Payments General Obligation -1993 20,794 0 0 0 0 ' General Obligation - 1998 203,690 202,690 201,490 201,490 200,290 General Obligation 2000 E 60,788 54,613 48,200 48,200 41,260 General Obligation 2000 F 74,368 65,818 57,050 57,050 49,460 ' General Obligation 2003 31,442 36,310 26,350 26,350 13,650 General Obligation 2004 C 0 387,490 398,040 385,784 370,290 General Obligation 2004 D 0 0 638,380 638,377 440,975 ' SUBTOTAL EDUCATION $1,170,747 $2,058,998 $2,835,010 $2,640,251 $2,675,925 HOSPITAL Support Goods & Services $292 $0 $0 $0 $0 Principal -1993A GO Bond 445,000 0 0 0 0 Principal -1998 GO Bond 30,000 25,000 30,000 30,000 30,000 Principal - 2003 GO Bond 27,000 487,000 497,000 497,000 510,000 Interest- 1993A GO Bond 20,157 0 0 0 0 ' Interest -1998 GO Bond 199,605 198,405 197,410 197,405 196,205 Interest -2003 GO Bond 30,779 35,553 25,820 25,813 13,390 Operating Transfer 0 0 0 0 0 ' SUBTOTAL HOSPITAL $752,833 $745,958 $750,230 $750,218 $749,595 KARLUK LOANS Principal $4,334 $4,443 $4,550 $5,468 $4,790 Interest 2,425 2,317 2,210 3,020 1,500 ' SUBTOTAL KARLUK LOANS $6,759 $6,760 $6,760 $8,488 $6,290 TOTAL EXPENDITURES $1,930,339 $2,811,716 $3,592,000 $3,398,957 $3,431,810 Ci I Page 153 PROGRAM BUDGET SUMMARY I DEBT SERVICE — OTHER , Program Description This department was set up to handle the long -term portion of the accrued vacation of Kodiak Island Borough , employees. Goal , To always have sufficient funds to cover the long -term portion of the employees' accrued vacations. Objectives for 2006 -2007 • To have funds available to cover the long -term portion of the employees' accrued vacations. Significant Budget Changes , It is not possible to estimate the direction or amount of transfer in this account; therefore we have made the decision to no longer budget for this account. , 1 I � Page 154 1 DEBT SERVICE - OTHER $0 $0 $0 $0 $0 REVENUES AND EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 0 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 0 0 0 0 Transfers In: 0 0 0 0 General Fund KIB $0 $0 $0 $0 $0 Buildings and Grounds 0 0 0 0 0 Bayside Fire Station 0 0 0 0 0 TOTAL TRANSFERS IN $0 $0 $0 $0 $0 Expenditures Employee Benefits $0 $0 $0 $0 $0 Transfers Out: General Fund 0 0 0 0 0 Land Sale Fund 0 0 0 0 0 Buildings and Grounds 0 0 0 0 0 Fire Service 0 0 0 0 0 TOTAL EXPENDITURES $0 $0 $0 $0 $0 Page 155 CAPITAL PROJECTS FUNDS 1 CAPITAL PROJECTS FUNDS I Description ' The Various Borough Projects Fund accounts for general government construction projects, capital improvements to facilities and utilities, and performance for feasibility studies not accounted for in other funds. Financing is provided from General Fund, Special Revenue Fund, and Enterprise Fund revenues. ' The State Capital Grants Fund accounts for capital improvement projects relating to grants received from the State of Alaska. School bond projects are financed through General Obligation Bonds, and state grant projects are funded by State of Alaska legislative appropriations. Goal ' To protect the Borough's interest in each capital project by ensuring satisfactory job progress, reasonable performance, and clear and accurate communications. ' Objectives for 2006 -2007 ' • To administer professional and construction contracts in a manner consistent with the appropriate legal requirements, Borough policies, and department needs for each project. ' Significant Budget Changes I No significant budget changes. I Page 157 Revenues: Fund 410 - Borough Capital Projects $ 3,691,698 $ - $ 390,000 $ 4,081,698 Fund 420 -State Capital Grant/Loan 20,852,760 - - 20,852,760 Fund 430 -State Capital Grants 2,906,212 - - 2,906,212 Fund 490 - Enterprise Fund Capital Projects 3,660,288 - - 3,660,288 Projects: Fund 410 - Borough Capital Projects $ 3,691,698 $ - $ 390,000 $ 4,081,698 Fund 420 -State Capital Grant/Loan 20,852,760 - - 20,852,760 Fund 430 -State Capital Grants 2,906,212 - - 2,906,212 Fund 490 - Enterprise Fund Capital Projects 3,660,288 - - 3,660,288 Page 158 $ 3,580,967 $ 486,987 $ - ' 21,365,248 - 837,513 2,068,699 2,772,190 - ' $ 2,649,980 $ 1,458,518 554,554 2,107,832 7,385,818 - - - ' 1,105,140 2,653,352 1,801,072 - 1,006,936 I ' Page 159 Projects: 85 Village Metals Removal 146 BMX Bike Paris 03106 KHS emergency generator 50,000 03109 Borough Building air handling penthouse 10,000 03110 Borouqh Building emergency generator 20,000 Page 160 $ - $ 150,000 68,920 $ 150,000 $ 68,920 50,000 10,000 20,000 333,084 Debt Service - - - - Ann f%nf% $ 114,409 $ - $ 31,667 - 2,403,507 70,187 $ - $ 390,000 $ $ 121,257 $ 28,743 $ Page 161 50,000 - - - 10,000 - - - - Project Title: Village Metals Removal Project Number: 85 Project Description: Metals Removal from the Villages , Expenditure Category Estimated Prior Years Project Total Cost Expenditures Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 20010 -11 Administration $ 10,000 $ 9,419 $ 581 $ 581 - - - - , Land - - - - Site Investigation Design Services - - - - Construction 140,000 111,575 28,425 28,162 - - Equipment - 262 (262) - - - - - Other Services - - - - " Contingency - - - - - - - Overhead 19,642 $ 19,642 $ - $ - $ - $ Totals 150,000 7 f 121,257 28,743 28,743 - T - - - r- - r- T ' Cost Beyond 5 -year program: None Source of Funding: Facilities Fund Operating Budget Effect: None Project Title: BMX Bike Park Project Number: 146 Project Description: Construct a bike park for public use. ' Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 20010 -11 Administration $ 6,000 $ 5,553 $ 447 $ 447 $ - $ - $ - $ - , Land - - - - - Site Investigation Design Services - - - - - - Construction 62,920 43,725 19,195 19,195 - - - Equipment - - - - - Other Services - - - - - " Contingency - - Overhead - - - - - - - Totals $ 68,920 $ 49,278 $ 19,642 $ 19,642 $ - $ - $ - $ Cost Beyond 5 -year program: None Source of Funding: Contributions and interest earn ' ings Operating Budget Effect: $10,000 per year from the Buildings and Grounds Fund I Page 162 1 I Page 163 Project Tile: Bayside Storage Addition 8c Engine Bay Project Number: 174 ' Project Description: Addition of storage room for classroom and other equipment, additon of one engine bay, install sprinkler system in classroom. Expenditure Category Estimated Prior Years Project ' Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 20010 -11 Administration $ 20,000 $ 20 $ 19,980 $ 19,980 $ $ $ $ Land - - - Site Investigation - - - - ' Design Services 27,500 3,000 24,500 24,500 Construction 350,000 350,000 350,000 - Equipment - - - - Other Services 2,500 - 2,500 2,500 - - - ' Contingency Overhead Totals $ 400,000 $ 3,020 $ 396,980 $ 396,980 $ - $ - $ - $ ' Cost Beyond 5 -year program: None Source of Funding: Fire Protection Area No. 1 Operating Budget Effect: $10,000 per year ' ' Project Tile: Bayside Underground Electrical Project Number: 00102 Project Description: Replace power pole with underground electric. ' Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 20010 -11 Administration $ 2,000 $ - $ 2,000 $ 2,000 $ - $ - $ - $ - Land - - - ' Site Investigation Design Services Construction 20,000 - 20,000 20,000 - - Equipment - _ _ - - - ' Other Services Contingency - - Overhead - - - ' Totals $ 22,000 $ - $ 22,000 $ 22,000 $ - $ $ - $ - Cost Beyond 5 -year program: None Source of Funding: Fire Protection Area No. 1 ' Operating Budget Effect: None I Page 163 Project Title: KHS emergency generator Project Number: 03106 Project Tite: Northstar School road /parking lot design Project Number: 03105 Project Description: Move generator from the hospital to the high school. Project Description: Design a combined playground/parking area and address drainage issues. Expenditure Category Estimated Prior Years Expenditure Category Estimated Prior Years Project , Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Administration $ 1,000 $ 5,547 $ (4,547) $ - $ - $ _ $ _ $ _ Administration $ 1,000 $ - Land - _ Site Investigation - _ _ _ Design Services 49,000 21,737 27,263 22,193 Site Investigation Construction - _ _ Equipment - _ _ - _ Other Services - 523 (523) Construction 49,000 - Contingency - _ _ Overhead _ _ Totals $ 50,000 $ 27,807 $ 22,193 $ 22,193 $ - $ - $ $ ' Cost Beyond 5 -year program: None Source of Funding: Interest Earnings , Operating Budget Effect: None Totals $ 50,000 $ Project Title: KHS emergency generator Project Number: 03106 Project Description: Move generator from the hospital to the high school. ' Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Administration $ 1,000 $ - $ 1,000 $ 1,000 $ - $ - $ - $ Land - - _ Site Investigation _ _ Design Services - - - _ Construction 49,000 - 49,000 49,000 - - - Equipment - _ _ Other Services Contingency Overhead Totals $ 50,000 $ $ 50,000 $ 50,000 $ - $ - $ $ - Cost Beyond 5 -year program: None Source of Funding: Interest Earnings ' Operating Budget Effect: None Page 164 1 I Page 165 ' Project Title: Borough Building air handling penthouse Project Number: 03109 Project Description: Construct a penthouse for the air conditioner and air handling equipment. ' Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Administration $ 1,000 $ - $ 1,000 $ 1,000 $ - $ - $ - $ - ' Land Site Investigation Design Services - - - - - - Construction 9,000 9,000 9,000 - - - - ' Equipment Other Services Contingency - - - - ' Overhead - - Totals $ 10,000 $ $ 10,000 $ 10,000 $ $ $ $ Cost Beyond 5 -year program: None Source of Funding: Facilities Fund ' Operating Budget Effect: None Project Title: Borough Building emergency generator Project Number: 03110 ' Project Description: Move generator from hospital and install in Borough Building. Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 ' Administration $ 1,000 $ 933 $ 67 $ 67 $ - $ _ $ _ $ Land Site Investigation - - - - - Design Services - - Construction 19,000 1,420 17,580 17,580 - - - Equipment Other Services - - Contingency - _ - - - - ' Overhead Totals $ 20,000 $ 2,353 $ 17,647 $ 17,647 $ $ $ $ Cost Beyond 5 -year program: None Source of Funding: Facilities Fund Operating Budget Effect: None I Page 165 1 Page 166 1 Project Title: Fiber Optic Survey Project Number: 05001 Project Description: Survey the ocean floor in preparation for the installation of fiber optic cable between Kodiak Island and The mainland". Expenditure Category Estimated Prior Years Project ' Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Administration $ 73,694 $ 4,452 $ 69,242 $ 70,187 $ - $ - $ _ $ _ Land - _ _ Site Investigation Design Services - - _ Construction 2,400,000 2,399,055 945 Equipment - - _ Other Services Contingency Overhead Totals $ 2,473,694 $ 2,403,507 $ 70,187 $ 70,187 $ Cost Beyond 5 -year program: None Source of Funding: NOAH Grant Operating Budget Effect: None ' , Project Title: Computer Upgrade Project Number: 06001 Project Description: Replace outdated computers Expenditure Category Estimated Prior Years Project ' Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Administration $ - $ - $ - $ _ $ $ $ $ Land - - _ _ Site Investigation - - _ _ Design Services - - _ _ Construction - - _ _ Equipment 114,000 42,758 71,242 71,242 Other Services - - - _ Contingency Overhead - - - - Totals $ 114,000 $ 42,758 $ 71,242 $ 71,242 $ - $ Cost Beyond 5 -year program: None Source of Funding: General Fund Operating Budget Effect: None Page 166 1 , Revenues: Interest $ 500,000 $ - $ - $ 500,000 I Proceeds from 2004A Bond Issue 9,302,760 - - 9,302,760 Proceeds from 2004B Bond Issue 11,050,000 - - 11,050,000 Transfer in - General Fund - - - - Projects: 03119 High School Swimming Pool $ 6,210,000 $ - $ - $ 6,210,000 04101 Old Harbor Gym 2,251,134 - - 2,251,134 04102 Larsen Bay School Repair 339,883 - - 339,883 05010 KHS asbestos & floor covering 304,704 - - 304,704 , 05011 District -wide floor covering replacement 728,708 - - 728,708 05012 KHS heating and ventilation 250,000 - - 250,000 05016 East School heating and ventilation 520,000 - - 520,000 05017 Learning Center renovation 1,181,336 - - 1,181,336 1 Contin encies 510,510 - - 510,510 MMEM F y � p [ E p F S � 1 S I i Page 168 $ 1,012,488 $ 9,302, 760 11,050,000 $ 237,184 Project is on hold pending additional funding 1,581 124,645 2,124,908 Page 169 b,bul 299,103 - 6,337 215,606 506,765 140 249.860 - 4z?J J3,b /2 486,000 2,846 89,654 1,088,836 - 510,510 - - _ _ F, Project Title: Old Harbor Gym & Voc Ed Renovation Project Number: 04101 ' Project Description: Construct gym addition and renovate voc-ed area Project Title: High School Swimming Pool Estimated Project Number: 03119 Project Project Description: Construct new pool Total Cost Expenditures Expenditure Category Estimated Prior Years Project $ 56,431 ' $ 56,001 $ Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 1,151 Construct Mgmt, Consultant $ 98,000 $ 73,632 $ 24,368 $ $ - $ _ $ _ $ _ - Construct Mgmt, in -house 160,000 35,489 124,511 - - Land - 5,105 (5,105) 124,645 - Site Investigation - _ - _ - Design Services 463,000 122,230 340,770 This project is currently on hold, pending - Construction 4,900,000 - 4,900,000 approval of a new bond issue to cover - Equipment 150,000 - 150,000 increased construction cost estimates. - - Technology _ _ _ 8,903 - Indirect Admin 145,000 728 144,272 89,032 - Art 49,000 - 49,000 _ $ 1,581 Contingency 245,000 - 245,000 None Totals $ 6,210,000 $ 237,184 $ 5,972,816 $ - $ - $ - $ _ $ _ Cost Beyond 5 -year program: None Operating Budget Effect: None Source of Funding: 20048 Bond issue Operating Budget Effect: None Project Title: Old Harbor Gym & Voc Ed Renovation Project Number: 04101 ' Project Description: Construct gym addition and renovate voc-ed area Expenditure Category Estimated Prior Years Project ' Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Construct Mgmt, Consultant $ 56,431 $ 430 $ 56,001 $ $ 56,001 $ - $ - $ - Construct Mgmt, in -house 56,431 1,151 55,280 - 55,280 Land - - _ Site Investigation - - _ Design Services 124,645 - 124,645 124,645 - - - Construction 1,780,638 - 1,780,638 - 1,780,638 Equipment 89,032 - 89,032 - 89,032 - Technology - - _ _ Indirect Admin 46,022 - 46,022 - 46,022 - - Art 8,903 - 8,903 - 8,903 Contingency 89,032 - 89,032 - 89,032 Totals $ 2,251,134 $ 1,581 $ 2,249,553 $ 124,645 $ 2,124,908 $ - $ - $ - Cost Beyond 5 -year program: None Source of Funding: 2004A Bond Issue ' Operating Budget Effect: None Page 170 1 Project Title: Project Description: ' Expenditure Category Larsen Bay School Floor Repair Project Number: 04102 Project will level the school's floors which have been affected by differential settlement of the foundation Estimated Construct Mgmt, Consultant Project Construct Mgmt, in -house Total Cost Land Balance 2006 -07 Site Investigation ' Design Services Construction $ 5,392 $ - Equipment - Technology (515) - Indirect Admin Art 18,000 Contingency 18,000 - Totals Larsen Bay School Floor Repair Project Number: 04102 Project will level the school's floors which have been affected by differential settlement of the foundation Estimated Prior Years Project Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 $ 5,750 $ 358 $ 5,392 $ - $ 5,392 $ - $ - $ - 515 (515) - - 18,000 1,969 18,000 - 18,000 - - 288,000 - 288,000 288,000 - - - 8,600 - 8,600 8,600 - - - 5,750 - 5,750 - 5,750 13,783 92,440 13,783 - 13,268 - - - $ 339,883 $ 873 $ 339,010 $ - $ 339,010 $ ' Cost Beyond 5 -year program: None Source of Funding: 2004A Bond Issue Operating Budget Effect: None L. JI J i Project Title: Ouzinkie Gym Renovation Project Number: 04103 Project Description: Construct gym addition Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Construct Mgmt, Consultant $ 40,085 $ 649 $ 39,436 $ - $ 39,436 $ - Construct Mgmt, in -house 30,813 1,969 28,844 - 28,844 - - Land - - - - - Site Investigation - - - - - Design Services 92,440 - 92,440 92,440 - - - Construction 1,540,669 - 1,540,669 - 1,540,669 - - - Equipment 43,222 - 43,222 - 43,222 - - - Technology - - - - - - - - Indirect Admin 30,813 - 30,813 - 30,813 - - Art 7,703 - 7,703 - 7,703 - Contingency 72,510 - 72,510 - 72,510 Totals $ 1,858,255 $ 2,618 $ 1,855,637 $ 92,440 $ 1,763,197 $ Cost Beyond 5 -year program: None Source of Funding: 2004A Bond Issue Operating Budget Effect: None I Page 171 J Project Title: Earthquake Evaluation Study Prior Years Project Number: 05002 Project Description: Evaluate school facilities ability to withstand strong ground motion Expenditure Category Estimated Prior Years Project 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Construct Mgmt, Consultant Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Admin $ 100,000 $ 93,519 $ 6,481 $ - $ - $ - $ - $ _ Equipment - 1,384 (1,384) - - Engineering Services 400,000 169,465 230,535 217,945 - - - Other - 17,687 (17,687) - - - - Totals $ 500,000 $ 282,055 $ 217,945 $ 217,945 $ - $ - $ - $ - Cost Beyond 5 -year program: None 217,000 - Source of Funding: 2004A Bond Issue 217,000 - - - - Equipment Operating Budget Effect: None - - - - Technology - - - Project Title: KMS, Repair Spalling Concrete 2,000 Project Number: 05009 Project Description: Repairlreplace 5,000 sf of concrete walks and stairs at Kodiak Middle School Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Construct Mgmt, Consultant $ - $ - $ - $ - $ $ - $ $ Construct Mgmt, in -house 4,400 421 3,979 3,979 - - Land - - - - Site Investigation - - - - Design Services 4,400 - 4,400 4,400 - - - - Construction 217,000 - 217,000 217,000 - - - - Equipment - - - - - - Technology - - - - - Indirect Admin 2,000 - 2,000 2,000 - - Art - - - - - - Contingency 10,118 - 10,118 10,118 - - - Totals $ 237,918 $ 421 $ 237,497 $ 237,497 $ - $ - $ - $ - Cost Beyond 5 -year program: None Source of Funding: 2004A Bond Issue Operating Budget Effect: None Page 172 1 1 1 1 I 1 Page 173 Project Title: Floor covering replacement Project Title: KHS Asbestos Removal /Floor Repair Project Number: 05010 Project Description: Removal/replacement in failing Project Description: Remove floor tiles containing asbetos and install new flooring at Kodiak High School ' Prior Years Project Expenditure Category Estimated Prior Years Project 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 ' Construct Mgmt, Consultant $ - Construct Mgmt, in -house 5,304 4,847 457 $ _ $ _ 458 14,606 Land ' Land Site Investigation - - _ _ ' Design Services 14,000 Construction 269,200 - 14,000 269,200 14,000 269,200 Equipment _ _ Technology - _ - _ ' Indirect Admin 3,000 Art 755 _ 2,245 _ 2,245 - - - - Contingency 13,200 13,200 13,200 - - - - - Totals $ 304,704 $ 5,601 $ 299,103 $ 299,103 $ - $ - $ - $ - ' Cost Beyond 5 -year program: None 3,057 1,000 2,057 - - - Source of Funding: 2004A Bond Issue _ Operating Budget Effect: None Contingency 32,708 32,708 - 32,708 - - Totals $ 728,708 $ 6,337 $ 722,371 $ 215,606 $ 506,765 $ - $ - $ - ' Page 173 Project Title: Floor covering replacement Project Number: 05011 Project Description: Removal/replacement in failing floor finishes at four schools in the borough ' Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Construct Mgmt, Consultant $ - $ - $ _ $ _ $ _ $ _ $ _ $ _ Construct Mgmt, in -house 20,000 5,394 14,606 14,606 ' Land Site Investigation Design Services - _ _ Construction 672,000 - 672,000 200,000 472,000 - - - Equipment Technology - - _ - - Indirect Admin 4,000 943 3,057 1,000 2,057 - - - Art _ Contingency 32,708 32,708 - 32,708 - - Totals $ 728,708 $ 6,337 $ 722,371 $ 215,606 $ 506,765 $ - $ - $ - ' Cost Beyond 5 -year program: None Source of Funding: 2004A Bond Issue Operating Budget Effect: None Page 173 'I I� Project Title: KHS HVAC Upgrade Project Number: 05012 Project Description: Replacement of the remaining older HVAC controls with new controls based on district standards , Expenditure Category Estimated Prior Years Project Expenditure Category Estimated Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Construct Mgmt, Consultant $ - $ - $ - $ - $ - $ $ - $ Construct Mgmt, Consultant Construct Mgmt, in -house 4,000 140 3,860 3,860 - - - Construct Mgmt, in -house Land 2,690 4,330 - 4,330 - Land Site Investigation - - - - - Site Investigation Design Services 10,000 - 10,000 10,000 - Design Services Construction 224,000 224,000 224,000 - - - Construction Equipment - - - - " Equipment Technology - - - - Technology IndirectAdmin .1,000 1,000 1,000 Indirect Admin Art - - - - - - Art Contingency 11,000 - 11,000 11,000 - - - Contingency Totals $ 250,000 $ 140 $ 249,860 $ 249,860 $ - $ - $ - $ Totals $ 596,020 $ 2,690 $ 593,330 $ 37,000 $ 5 $ - $ - $ - , Cost Beyond 5 -year program: None , Source of Funding: 2004A Bond Issue Source of Funding: 2004A Bond Issue Operating Budget Effect: None Operating Budget Effect: None , Page 174 1 Project Title: KHS Exterior Insulation & Window Upgrade Project Number: 05013 Project Description: Installation of Exterior Insulation and Finish System; and replacement of single paned windows. Expenditure Category Estimated Prior Years Project , Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Construct Mgmt, Consultant $ - $ - $ - $ $ - $ $ - $ - Construct Mgmt, in -house 7,020 2,690 4,330 - 4,330 - Land - - - Site Investigation - - ' Design Services 37,000 - 37,000 37,000 - - Construction 521,000 521,000 - 521,000 Equipment - - - Technology - - - - - Indirect Admin 5,000 - 5,000 - 5,000 - - - Art - - Contingency 26,000 - 26,000 - 26,000 - Totals $ 596,020 $ 2,690 $ 593,330 $ 37,000 $ 5 $ - $ - $ - Cost Beyond 5 -year program: None , Source of Funding: 2004A Bond Issue Operating Budget Effect: None Page 174 1 ' Cost Beyond 5 -year program: None Source of Funding: 2004A Bond Issue Project Title: IRMA Roof Complex Upgrade Project Number: 05014 Project Description: Replacement of - 68,000sf of roofing system not replaced in previous project. ' Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 ' Construct Mgmt, Consultant $ - $ - $ - $ - $ - $ - $ - $ - ' Construct Mgmt, in -house 6,000 2,732 3,268 - 3,268 - - Total Cost Land Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Construct Mgmt, Consultant $ 125,272 $ - Site Investigation - - - - - 116,700 Design Services 30,000 - 30,000 30,000 - - - ' Construction 460,000 - 460,000 460,000 - - - Equipment 269,673 approval of a new bond issue to cover _ ' Construction 3,790,163 Equipment 228,206 Technology - increased construction cost estimates. _ - - - Indirect Admin 4,000 - 4,000 - 4,000 - - - ' Art Art 37,902 - 37,902 - - - - - Contingency 23,504 23,504 23,504 Totals $ 523,504 $ 2,732 $ 520,772 $ $ 520,772 $ $ $ ' Cost Beyond 5 -year program: None Source of Funding: 2004A Bond Issue Operating Budget Effect: None ' Project Title: High School Voc edtclassroom reclamation Project Number: 05015 Project Description: Reclaim voc-ed space currently used as office space and non voe-ed classrooms ' Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Construct Mgmt, Consultant $ 125,272 $ - $ 125,272 $ - $ - $ $ - $ - Construct Mgmt, in -house 125,749 9,049 116,700 - - - - ' Land Site Investigation This project is currently on hold, pending Design Services 269,673 269,673 approval of a new bond issue to cover _ ' Construction 3,790,163 Equipment 228,206 - 3,790,163 228,206 increased construction cost estimates. _ Technology Indirect Admin 94,821 - 94,821 - - Art 37,902 - 37,902 - - - - - ' Contingency 169,002 169,002 Totals $ 4,840,788 $ 9,049 $ 4,831,739 $ $ $ $ $ Cost Beyond 5 -year program: None ' Source of Funding: 2004B Bond Issue Operating Budget Effect: None I Page 175 Project Title: East School heating and ventilation Project Number: 05016 Project Description: Replace HVAC system Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Construct Mgmt, Consultant $ - $ - $ - $ - $ $ - $ _ $ Construct Mgmt, in -house 6,000 428 5,572 5,572 - - - Land - - - - - - - Site Investigation - - - - - - - Design Services 28,000 - 28,000 28,000 - - - Construction 460,000 - 460,000 - 460,000 - - Equipment - - - - - Technology - - - - - Indirect Admin 4,000 - 4,000 - 4,000 - - - Art 9,690 - - - - - - Contingency 22,000 - 22,000 - 22,000 - Totals $ 520,000 $ 428 $ 519,572 $ 33,572 $ 486,000 $ - $ - $ - Cost Beyond 5 -year program: None Source of Funding: 2004A Bond Issue Operating Budget Effect: None Project Title: Learning Center Remodel Project Number: 05017 Project Description: Remodel a shipping/receiving building into classrooms Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Construct Mgmt, Consultant $ 29,000 $ - $ 29,000 $ 9,000 $ 20,000 $ - $ - $ Construct Mgmt, in -house 16,000 2,846 13,154 3,154 10,000 - - - Land - - - - - - - Site Investigation - - - - - - - Design Services 77,500 - 77,500 77,500 - - - Construction 969,000 - 969,000 - 969,000 - - Equipment 29,000 - 29,000 - 29,000 - - Technology - - - - - - Indirect Admin 3,000 3,000 - 3,000 - - Art 9,690 9,690 - 9,690 - - Contingency 48,146 - 48,146 - 48,146 - Totals $ 1,181,336 $ 2,846 $ 1,178,490 $ 89,654 $ 1,088,836 $ - $ - $ - Cost Beyond 5 -year program: None Source of Funding: 2004A Bond Issue Operating Budget Effect: None Page 176 Revenues: Interest Earnings $ - $ - Anton Larsen Bay Boat Ramp 620,000 - - 620,000 CIAP - Coastal Impact Program 319,985 - - 319,985 Chiniak Multi - Use Grant 20,000 - - 20,000 KHS Pool filter 60,000 - - 60,000 Pre - Disaster Mitigation Grant 41,724 - - 41,724 06002 Homeland Securitv 17.733 - - 17.733 Projects: 177 Anton Larsen Bay Boat Ramp 620,000 620,000 Page 178 03118 Chiniak Multi - Use Grant 20,000 - - 20,000 05019 Homeland Security 17,733 - 17,733 05020 Predisaster Mitigation Grant 41,724 - - 41,724 06007 ADF & G Buildinq Desiqn 1,500,000 - - 1,500,000 1 1 1 1 1 1 1 1 1 1 1 1 1 i 1 1 1 1 1 560,000 60,000 - - - - Page 179 9,946 10,054 - - - - - 17,733 - 16,790 24,934 - - - - - 1.500.000 - - - - r Project Title: Anton Larsen Bay Boat Ramp Project Number: 177 Project Description: Investigate the needs for sports fishing improvements in Anton Larsen Bay. Building additional parking areas and a boat ramp. Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Administration $ 25,000 $ 15,146 $ 9,854 $ 9,854 $ - $ - - Land - - - - Site Investigation - - Design Services 50,000 93,833 (43,833) - - - Construction 530,000 488,028 41,972 3,139 - Equipment 10,000 - 10,000 10,000 - - Other Services 5,000 - 5,000 - - - - - Contingency Overhead _ Totals $ 620,000 $ 597,007 $ 22,993 $ 22,993 $ $ - $ - $ - Cost Beyond 5 -year program: None Source of Funding: State Grant with Federal monies Operating Budget Effect: None Project Title: School Facility Repair and Upgrade FY00 Project Number: 00100 Project Description: Repair High School Roof Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Administration $ - $ 16,237 $ (16,237) $ $ - $ - $ - $ Land - - - - Site Investigation - - - - - - Design Services - 64,477 (64,477) - - - - Construction 126,770 35,702 91,068 10,354 - - Equipment - - - - - - - Other Services - - - - Contingency - - - Overhead - - - - - - Totals $ 126,770 $ 116,416 $ 10,354 $ 10,354 $ $ $ - $ - Cost Beyond 5 -year program: None Source of Funding: State Grant Operating Budget Effect: None Page 180 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Project Title: ADF &G Research Project Project Number: 02107 Project Description: A feasibility study to determine whether Alaska Dept. of Fish & Game offices should A one -time grant to coastal districts to off -set the impact of oil and gas exploration and development remain in their present building or build a new building near other similar facilities. Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008-09 2009 -10 2010 -11 Administration $ 15,000 $ 18,437 $ (3,437) $ - $ - $ - $ - $ - Land - - $ 13,339 Site Investigation - - - Design Services 185,000 104,537 80,463 76,997 - - - - Construction - - - - Equipment - - - Other Services - 30 (30) - - Contingency - - - Overhead - - - - _ Totals $ 200,000 $ 123,003 $ 76,997 $ 76,997 $ - $ - $ Cost Beyond 5 -year program: None - Source of Funding: State Grant 287,235 Operating Budget Effect: None 95,866 Project Title: CIAP Grant Project Number: 03114 Project Description: A one -time grant to coastal districts to off -set the impact of oil and gas exploration and development Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Administration $ 14,250 $ 911 $ 13,339 $ 13,339 $ - $ - $ $ Land 13,500 - 13,500 13,500 - - Site Investigation - - - Design Services - Construction - Equipment - - - - Other Services 287,235 191,369 95,866 95,866 - Contingency 5,000 - 5,000 5,000 - - Overhead Totals $ 319,985 $ 192,280 $ 127,705 $ 127,705 $ - $ $ Cost Beyond 5 -year program: None Source of Funding: Grant Operating Budget Effect: None Page 181 1 Project Title: Chiniak Multi -use Estimated Project Number: 03118 Project Description: Repaidreplace public buildings in Chiniak Total Cost Expenditure Category Estimated Prior Years Project Administration Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Administration $ 1,000 $ 6,454 $ (5,454) $ - $ - $ - $ - $ - Land - - - - - - - Site Investigation - - - - - - - - - Design Services - - - - - - - Construction 19,000 3,492 15,508 10,054 - - Equipment - - - - - - - Other Services - - - - - - - Contingency - - - - - - - - Overhead - - - - - - - - Totals $ 20,000 $ 9,946 $ 10,054 $ 10,054 $ - $ $ - $ Cost Beyond 5 -year program: None - - - - Totals Source of Funding: Enterprise Fund $ 49,698 $ 10,302 $ 10,302 $ $ Operating Budget Effect: None Project Title: KHS Pool filter Project Number: 05006 Project Description: replace failing filters Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Administration $ - $ - $ - $ - $ - $ - $ $ - Land - - - - - - - Site Investigation - - - - - - - - Design Services - - - - - - - Construction - - - - - - - Equipment 60,000 49,698 10,302 10,302 - - - - Other Services - - - - - - - Contingency - - - - - - - Overhead - - - - - - Totals $ 60,000 $ 49,698 $ 10,302 $ 10,302 $ $ Cost Beyond 5 -year program: None Source of Funding: Federal Grant Operating Budget Effect: None Ci Page 182 1 ' Project Title: Predisaster Mitigation Planning Project Number: 05020 Project Title: Homeland Security Grant Project Number: 05019 Project Project Description: A grant to obtain portable decontamination equipment and supplies ' Expenditure Category Estimated Prior Years Project 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Planning $ - $ $ - $ - $ $ - $ $ ' Administration - - - - Equipment 17,733 17,733 17,733 Totals $ 17,733 $ $ 17,733 $ 17,733 $ - $ - $ - $ Cost Beyond 5 -year program: None - - - Source of Funding: DHS and EM Operating Budget Effect: None - - - - ' Totals $ 41,724 $ 16,790 $ 24,934 $ 24,934 $ - $ $ - $ Cost Beyond 5 -year program: None ' Project Title: Predisaster Mitigation Planning Project Number: 05020 Project Description: Preparation of a multilurisdictional plan for FEMAhazard mitigation project grant funding eligibility Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Administration $ 41,724 $ 16,790 $ 24,934 $ 24,934 $ $ $ - $ - Land - - - - - ' Site Investigation - - - - - Design Services Construction - - - Equipment - Other Services - - - Contingency Overhead - - - - - - ' Totals $ 41,724 $ 16,790 $ 24,934 $ 24,934 $ - $ $ - $ Cost Beyond 5 -year program: None Source of Funding: DHS & EM/FEMA ' Operating Budget Effect: None I Page 183 1 Project Tide: ADF &G Building Design Project Number: 06007 Project Number: Project Description: Design a new facility to house the local offices of the Alaska Department of Fish & Game ' Expenditure Category Estimated Prior Years Project Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Expenditures Administration $ - $ - $ $ 5,000 $ $ - $ - $ Construct Mgmt, Consultant $ - Land - - $ - - - - ' Site Investigation - - - - - - - - - - - Design Services - - - 1,495,000 - - - Construction - - - - - - Equipment - - - - - - - - Design Services - Other Services - - - - - - ' Contingencies - - - - - - 390,000 - - - 1,500,000 - 1,500,000 - - Totals $ 1,500,000 $ - $ 1,500,000 $ 1,500,000 $ $ - $ - $ ' Cost Beyond 5 -year program: None Indirect Admin - Source of Funding: State Grant - - - ' Operating Budget Effect: None - - - - Contingency - - - - - - Totals $ 390,000 $ - Project Title: Seismic Repair Project Number: Project Description: Commence repairs to Kodiak Middle School as identified by the seismic vulnerability study. ' Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Construct Mgmt, Consultant $ - $ - $ - $ - $ - $ - $ - $ - Construct Mgmt, in -house - - - - - - - - Land - - - - - - - Site Investigation - - - - - - - Design Services - - - - - - - ' Construction 390,000 - 390,000 390,000 - - - Equipment - - - - - - Technology - - - Indirect Admin - - - - - Art - - - - - Contingency - - - - - - Totals $ 390,000 $ - $ 390,000 $ 390,000 $ - $ - $ $ ' Cost Beyond 5 -year program: None Source of Funding: State Grant Operating Budget Effect: None ' Page 184 1 Revenues: Landfill Closeout/Leachate Treatment Transfer- Facilities Fund Transfer- Hospital Projects: 165 Landfill Closeout/Leachate Treatment 03112 Hospital access and parkina phase I & II $ 3,000,000 $ - $ - $ 3,000,000 45,288 - - 45,288 615,000 - - 615,000 $ 3,000,000 $ - $ - $ 3,000,000 660.288 - - 660,288 Page 186 1 1 1 1 1 7 1 1 1 1 1 1 1 1 1 1 1 1 1 $ 2,251,902 $ 45,288 - - - - 475,000 - - - - $ 2,628,452 $ 371,548 24,900 635,388 - - - 79,712 - - - - Page 187 Project Title: Landfill Closeout/Leachate Treatment Project Number: 165 Project Description: Construct leachate control building and drainage at the Landfill. Expenditure Category Estimated Prior Years Project Project Number: 03112 Total Cost Expenditures Balance 2006 -07 2007 -08 2008.09 2009 -10 2010 -11 Administration $ 35,000 $ 73,655 $ (38,655) $ 50,000 $ - $ - $ - $ Land - - - - - - Site Investigation - - - - - - - Design Services 350,000 412,724 (62,724) 200,000 - - - - Construction 2,615,000 2,140,340 474,660 121,548 - - - Equipment - 1,733 (1,733) - - - - - Other Services - - - - - - - - Contingency - - - - - - Overhead - - - - - - - - Totals $ 3,000,000 $ 2,628,452 $ 371,548 $ 371,548 $ - $ - $ - $ - Cost Beyond 5 -year program: None 20,000 - 20,000 Source of Funding: State Grant and Loan - - Other Services Operating Budget Effect: None - - - Project Title: Hospital Access and Parking Phase 16 11 Project Number: 03112 Project Description: Constuct new access from Rezanof Drive, Construct doctor's, handicap, and public parking. Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 Administration $ 5,000 $ 19,045 $ (14,045) $ 50,000 $ - $ - $ - $ - Land - - - - - Site Investigation 5,000 - 5,000 5,000 - - Design Services 5,000 5,855 (855) - - - Construction 625,288 - 625,288 330,388 - - - Equipment 20,000 - 20,000 250,000 - - Other Services - - - - - - - Contingency - - - - - - - Overhead - - - - - - - Totals $ 660,288 $ 24,900 $ 635,388 $ 635,388 $ - $ - $ $ - Cost Beyond 5 -year program: None Source of Funding: Enterprise Fund Operating Budget Effect: None 1 1 Page 188 1 1 ENTERPRISE FUNDS Included in the Enterprise Funds of the Kodiak Island Borough are solid waste management, the hospital, the Kodiak Fisheries Research Center and 911 services. Enterprise Funds Recap Page 189 Fbspital Solid Waste Enterprise Kodiak Fisheries 911 Enterprise Fund Fund Research Center Service Total Beginning Retained Earnings $ 3,695,050 $15,752,822 $ 11,042,682 $41,064 $ 30,531,618 Revenues Collection Fees $2,756,345 - - - 2,756,345 Disposal Fees 899,265 - - - 899,265 State Revenue Sharing - - - - - Rents and Royalties - 720,000 1,366,800 - 2,086,800 Customer Charges - - - 69,000 69,000 Interest Earnings - - 60,000 - 60,000 Other 103,913 - - 103,913 Transfers - 66,500 - - 66,500 Total Revenues and Transfers in 3,759,523 786,500 7426,800 69,000 6,041,823 Total Available Funds 7,454,573 16,539,322 12,469,482 110,064 36,573,441 Expenses Waste Collection 1,432,000 - - - 1,432,000 Waste Disposal V 2,327,523 - - - 2,327,523 Personnel costs - - 200,770 10,500 211,270 Contracted Services - - - 58,500 58,500 Dorm Facility - - 22,600 - 22,600 Depreciation - 1,276,560 744,294 - 2,020,854 Debt service interest - 56,720 425,165 - 481,885 Other - 167,000 658,930 - 825,930 Transfers out - 235,593 - - 235,593 Total Use of Rinds 3,759,523 1,735,873 2,051,759 69,000 7,616,155 Est. Retained Earnings 6/30/07 $ 3,695,050 $14,803,449 $ 10,417,723 $ 41,064 $ 28,957,286 Page 189 ENTERPRISE FUNDS E PROGRAM BUDGET SUMMARY I MUNICIPAL SOLID WASTE (MSW) COLLECTION AND DISPOSAL Program Description The Kodiak Island Borough manages the solid waste collection services with a private contractor and provides waste ' disposal and limited recycling services for the residents and commercial generators of the greater Kodiak urban area. Residents and commercial waste generators may also deliver solid waste such as garbage, construction debris, scrap metal, asbestos, used oil and medical wastes to the baler facility. Household hazardous wastes may be brought to the baler facility by residents only. The Engineering/Facilities Department is responsible for the administration, operation, and maintenance of the baler facility and landfill area. The landfill is operated in compliance with federal, state, and local regulations and guidelines. The revenues collected by this fund are divided into three categories: collection fees, disposal fees, and other miscellaneous fees. Of the three categories, the collection fee generally generates over half of the revenue. In estimating ' revenues, the waste generated by the residential and commercial population of the greater Kodiak area is considered. Goal I To provide a cost effective, environmentally safe waste collection, disposal, and recycling services for the greater Kodiak urban area and to assist the remote coastal communities around Kodiak in doing the same. To strengthen the Integrated Solid Waste Management Policy, required by the State, by following the hierarchy of (1) Waste Source Reduction; (2) Recycling; (3) Treatment; and (4) Disposal wherever economically feasible. Objectives for 2006 -2007 • Operate the baler /landfill facility in a cost effective, safe and environmentally sound manner. • Complete the requirements for the baler building wastewater treatment. • Apply for grants that augment local closure /post closure revenues. • Prepare a request for proposals for a new collection contract and an overall solid waste management plan. • Prepare a request for proposals for a lateral expansion design. 1 • Acquire a replacement dump truck. Significant Budget Changes I There is an increase in the budget to keep pace with increases in collection and landfill operating costs. I C Page 190 1 ' MUNICIPAL U ICIPAL SOLID WASTE Expenditures Revenues $2,378,060 Collection Fees $2,756,345 Disposal Fees 923,477 Penalty/Interest 944,834 Metals Recycling 13,856 Operating transfers 13,000 Use of Fund Balance 66,000 TOTAL REVENUES Expenditures I REVENUES AND EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET $2,251,246 Waste Collection: $2,378,060 Allocated Salaries $2,756,345 Contracted Services 923,477 Support Goods & Services 944,834 Waste Disposal: 13,856 Personnel Services 13,000 Employee Benefits 66,000 Contracted Services 33,434 Contributions 66,340 Support Goods & Services 0 Depreciation 1 Operating transfers 0 TOTAL EXPENDITURES I REVENUES AND EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET $2,251,246 $2,179,248 $2,378,060 $2,779,669 $2,756,345 907,478 923,477 1,086,000 944,834 899,265 13,856 42,151 13,000 82,359 66,000 44,311 33,434 25,000 66,340 37,913 0 0 0 0 0 0 0 0 0 0 $3,216,891 $3,178,310 $3,502,060 $3,873,202 $3,759,523 2,000 0 0 0 0 1,324,943 1,418,830 1,400,000 1,352,618 1,414,000 31,995 9,421 15,000 8,514 18,000 342,131 394,552 379,690 405,068 416,940 152,983 194,525 223,670 209,104 245,350 152,837 207,282 219,000 261,073 202,800 5,445 9,853 10,000 5,258 10,000 780,009 861,460 949,580 862,442 1,104,107 259,800 259,445 305,120 245,510 348,326 0 0 0 0 0 $3,052,143 $3,355,368 $3,502,060 $3,349,587 $3,759,523 Position: Environmental Specialist Baler/Landfill Supervisor Baler Operator II Baler Operator I TOTAL PERSONNEL F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 1 1 1 1 1 1 1 1 1 1 1 2 4 4 4 3 7 7 7 7 PERFORMANCE INDICATORS F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL ESTIMATED PROJECTED Total Solid Waste Disposal, Tons (MSW, Sludge, 15,703 15,277 16,290 15,804 Asbestos, C&D) Baled Waste, tons (MSW) Scrap Metals, received, tons" Asbestos, cubic yards U 11,381 11,218 11,444 11,430 833 953 416 400 276 459 73 250 I Page 191 1 PROGRAM BUDGET SUMMARY I HOSPITAL ENTERPRISE FUND I Program Description On April 22, 1997, the Kodiak Island Borough leased the Kodiak Island Hospital to Providence Health System in Alaska. The hospital is now known as the Providence Kodiak Island Medical Center to reflect the partnership. The lease payment made to the Kodiak Island Borough is $60,000 per month. This money will be used to pay the debt on the Kodiak Island Hospital. The main source of revenue for this fund is from the lease payments made by Providence, which totals $720,000 per year. Another source of revenue is provided by the Fern Fuller Trust. For FY2007 we are budgeting $66,500 from this source. Goal This fund accounts for the accumulation of money for payment of principal, interest, and fiscal agent fees related to serial bond debt incurred by the Borough to construct the Providence Kodiak Island Medical Center. Objectives for 2006 -2007 • To meet all the debt service requirements when due, thus avoiding any charges for penalties or interest • To purchase replacement equipment • To complete the access and parking project • Complete the renovation of empty space located on the first floor. Significant Budget Changes No significant budget changes. Page 192 1 1 1 1 !I I Page 193 HOSPITAL ENTERPRISE FUND REVENUES AND EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues Interest Earnings $0 $84 $0 $0 $0 MRI Contributions 1,305 0 0 0 0 ' Providence Lease Use of Fund Balance 720,000 0 1,153,333 0 720,000 935,850 720,000 0 720,000 949,373 Operating Transfers In 0 0 0 66,500 66,500 Sale of Fixed Assets 0 0 0 0 0 TOTAL REVENUES $721,305 $1,153,417 $1,655,850 $786,500 $1,735,873 Expenditures Employee Salaries $6,434 $6,463 $0 $5,000 $5,000 Employee Benefits 568 506 0 0 0 Contracted Services (7,977) 0 0 0 0 Support Goods & Services 28,398 30,170 0 13,477 12,000 Depreciation 1,261,302 1,238,064 1,276,560 1,074,311 1,276,560 Debt Service Interest Payments NBA FY 2000 loan 16,949 0 0 0 0 Facilities loan 63,470 69,784 59,060 59,059 56,720 Operating Transfers 1,994,560 295,602 320,230 320,230 235,593 Contribution 1,300,000 0 0 150,000 150,000 TOTAL EXPENDITURES $4,663,704 $1,640,589 $1,655,850 $1,622,077 $1,735,873 1 1 1 !I I Page 193 1 PROGRAM BUDGET SUMMARY I KODIAK FISHERIES RESEARCH CENTER I Program Description I The Kodiak Island Borough is the owner /landlord of this state of the art fisheries research center. Federal, state and university biologists are performing research. This facility is managed, operated and maintained, as well as repaired by the ' Engineering and Facilities department of the Borough. The Kodiak Fisheries Research Center (KFRC) houses a multi- agency research team committed to the preservation, enhancement and management of the North Pacific marine ecosystem and its resources. In addition, the KFRC contains a public interpretive center that provides an educational and interactive overview of Kodiak Island wildlife, marine life and fisheries research programs through graphic display panels, interactive computer programs and videos, a topographic map of Kodiak Island, a touch tank with live tide pool creatures and a 10 foot in diameter aquarium featuring local marine finfish, shellfish and other marine organisms. As with the Hospital Enterprise fund, the main source of revenue from this facility is in the form of lease payments. The major tenant of the facility is the National Oceanic and Atmospheric Administration (NOAA) and its subsidiary, National Marine Fisheries Service (NMFS). Other important tenants are the State of Alaska's Dep"ent of Fish and Game, and the University of Alaska School of Fisheries and Marine Sciences. Goal To provide a world -class research center for use by the National Marine Fisheries Service (a division of NOAA), the Alaska Department of Fish and Game, and the University Alaska School of Fisheries and Marine Science. To also provide an interpretive center to enhance the public's knowledge, understanding and appreciation of the rich diverse ecosystem surrounding the Kodiak Archipelago. I Objectives for 2006 -2007 • To keep to a minimum the vacancy rate of leasable space in the facility • Work with tenants to create flexible space for future research grants • Clean (pig) the intake lines on a 6 -month basis • Convert a chiller into a temperature control room • Acquire a redundant saltwater vertical turbine pump Significant Budget Changes There is a 15% reduction in federal contributions due to recalculation of the 5 year rental rate. Page 194 1 KODIAK FISHERIES RESEARCH FACILITY REVENUES AND EXPENDITURES TOTAL EXPENDITURES i Position: Maintenance Engineer Receptionist/Interpretive Specialist Maintenance Worker TOTAL IJ F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET $16,863 Revenues $60,000 Interest Earnings $60,000 Rents and Royalties 1,566,070 Miscellaneous 1,572,401 Use of Fund Balance 0 Transfer -In 0 Sale of Fixed Assets 0 TOTAL REVENUES 0 Expenditures 1 RESEARCH FACILITY 0 Personnel 0 Employee Benefits 0 Support Goods & Services 0 Depreciation 0 Debt Service - Interest Janitorial $1,576,463 Heating $1,881,914 Electrical $2,051,759 Plumbing 152,116 Air Conditioning 171,647 Elevators 10,012 Miscellaneous 73,540 Operating Transfers 192,000 Subtotal 32 2,000 173 DORM FACILITY 1,991 Heating 2,000 Electrical 2,000 Plumbing 61,441 Miscellaneous TOTAL EXPENDITURES i Position: Maintenance Engineer Receptionist/Interpretive Specialist Maintenance Worker TOTAL IJ F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET $16,863 $35,096 $60,000 $92,471 $60,000 1,559,600 1,566,070 1,366,800 1,572,401 1,366,800 0 616 0 73 0 0 0 455,114 0 624,959 0 0 0 0 0 0 0 0 0 0 $1,576,463 $1,601,782 $1,881,914 $1,664,945 $2,051,759 $155,676 $170,611 $98,200 $126,495 $127,480 45,445 57,099 68,070 41,070 73,290 0 3,848 12,430 6,965 12,430 745,259 745,258 744,294 745,037 744,294 485,713 466,813 446,780 409,967 425,165 35,078 37,487 47,000 35,338 47,000 78,072 109,132 95,000 129,578 132,500 153,512 152,116 178,000 171,647 178,000 10,012 10,991 73,540 10,006 192,000 21 32 2,000 173 2,000 1,991 2,387 2,000 2,042 2,000 75,501 61,441 93,000 52,903 93,000 0 0 0 0 0 $1,786,280 $1,817,215 $1,860,314 $1,731,221 $2,029,159 $2,611 $5,834 $7,000 $9,373 $10,000 4,025 4,169 7,500 4,837 7,500 2,784 2,616 3,700 2,931 3,700 5,273 2,029 3,400 3,657 1,400 $14,693 $14,648 $21,600 $20,798 $22,600 $1,800,973 $1,831,863 $1,881,914 $1,752,019 $2,051,759 PERSONNEL F.Y. 2003 F.Y. 2004 F.Y. 2005 F.Y. 2007 1 1 1 1 1 1 1 1 0.5 0.5 0.5 0.5 2.5 2.5 2.5 2.5 Page 195 PROGRAM BUDGET SUMMARY I 911 SERVICE I Program Description This program is funded solely by a levy on individual phone lines in the area served. This levy generates approximately $5,750 in revenue each month. The program provides for maintenance of an enhanced emergency response call -in system. The system hardware (located in the City of Kodiak dispatch center) instantly displays owner and address information from the phone number calling into 911. This system ensures appropriate and timely response to anyone calling, even when they are incapable of conversing with the dispatcher. The Community Development department is responsible for maintenance of the mapping that supports the E911 system. Goal Provide quick and efficient emergency service response to all service subscribers. I Objectives for 2006 -2007 1 • To maintain an enhanced 911 telephone system that provides emergency response to callers. • To ensure that local street addressing supports enhanced 911 system operations. • To explore expansion of the system to additional geographic areas in the region; and additional emergency notification options. Significant Budget Changes No significant budget changes C it I Page 196 1 1 1 1 1 1 1 1 1 1 i i f 1 1 1 1 911 SERVICE REVENUES AND EXPENDITURES F.Y. 2004 F.Y. 2005 F.Y. 2006 F.Y. 2006 F.Y. 2007 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 58,500 Support Goods & Services 0 0 Customer Charges $101,435 $26,721 $69,000 $65,614 $69,000 TOTAL REVENUES $101,435 $26,721 $69,000 $65,614 $69,000 Expenditures Allocated Salaries $9,000 $3,000 $10,500 $3,000 $10,500 Contracted Services 71,427 66,177 58,500 54,000 58,500 Support Goods & Services 0 0 0 193 0 TOTAL EXPENDITURES $80,427 $69,177 $69,000 $57,193 $69,000 Page 197 AppENpIX 1 1 APPENDIX STATISTICAL INFORMATION GENERAL INFORMATION The Kodiak Island Borough lies at the western border of the Gulf of Alaska, about 40 miles south of the Kenai Peninsula and approximately 200 miles south of Anchorage. Nearly two -thirds of the Borough lies in the Kodiak Archipelago. One -third of the Borough is on the Alaska Peninsula across the Shelikof Strait from Kodiak Island. The Borough encompasses 7,130 square miles, making it slightly smaller than the State of Massachusetts. The Borough was incorporated September 30, 1963 as a Second Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended. ECONOMIC CONDITION AND OUTLOOK 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 back to the slowdown in the Asian economy several years ago. 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 have also been a 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 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 1 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. f The preliminary unemployment rate at June 30, 2006 is 11.7 %, compared to 9.0% at June 30, 2005. This year the local salmon nm was late accounting for the higher than normal June rate. Hiring of seasonal cannery workers traditionally peaks around July and is virtually nil in December, which generally accounts for seasonal lows and highs in unemployment. The 1 local unemployment rate has fluctuated from 5.1 % to 14.9% over the last five years, but the overall average has remained around 9 %. The assessed value of real and personal property in the Kodiak Island Borough rose from $681,345,890 in fiscal year 1998 to $809,236,402 in fiscal year 2007, an increase of approximately 19% over ten years. We believe the Kodiak Island Borough will continue to grow through the end of the century. This growth will positively impact the Kodiak Island Borough, but it must be realized that the Borough will also have to grow to provide the same level of services to its residents. J I Page 199 KODIAK ISLAND BOROUGH MAYOR AND ASSEMBLY MAYOR Jerome Selby PO Box 1962 Kodiak, AK 99615 ASSEMBLY MEMBERS Tom Abell P.O. Box 2224 Kodiak, AK 99615 Pat Branson P.O. Box 3888 Kodiak, AK 99615 Sue Jeffrey PO Box 3363 Kodiak, AK 99615 Reed Oswalt PO Box 722 Kodiak, AK 99615 Cecil Ranney 11240 Womens Bay Drive Kodiak, AK 99615 Mel Stephens P.O. Box 1129 Kodiak, AK 99615 Barbara Williams PO Box 4146 Kodiak, AK 99615 BOROUGH MANAGER Rick Gifford 710 Mill Bay Road Kodiak, AK 99615 Phone: (907) 486 -9300 Fax: (907) 486 -9374 BOROUGH CLERK Nova Javier, CMC 710 Mill Bay Road Kodiak, AK 99615 Phone: (907) 486 -9310 Fax: (907) 486 -9374 BOROUGH ATTORNEY Jamin, Ebell, Schmitt & Mason 323 Carolyn Street Kodiak, AK 99615 Phone: (907) 486 -6024 Term Ex Tres 2007 2008 2007 2008 2008 2006 2006 2007 Page 200 Contact Information Borough Offices Mailing Address Web Address Assessing Department Clerk's Office Engineering/Facilities Department Baler Facility Kodiak Fisheries Research Center Finance Department Cashier Solid Waste Billing Childcare Assistance Program Management Information Services Manager's Office Other Borough Contacts Bayside Fire Station Womens Bay Volunteer Fire Department Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 www.kib.co.kodiak.ak.us 907 486 -9353 907 486 -9310 907 486 -9343 907 486 -9345 907 481 -1800 907 486 -9323 907 486 -9324 907 486 -9326 907 486 -9375 907 486 -9333 907 486 -9300 907 486 -4536 907 487 -4312 Page 201 2005 -2006 Personnel Summary Page 202 2003 2004 2005 2006 2007 Department Approved Approved Approved Approved Budgeted Borough Clerk 3.00 3.00 3.00 3.00 3.00 Manager 2.00 2.00 2.00 2.00 2.00 Assessor 4.00 4.00 4.00 4.00 4.00 Engineering/Facilities 3.00 3.00 5.00 5.00 5.00 Community Development 5.00 5.00 5.00 5.00 5.00 Finance 7.00 7.00 7.00 7.00 7.00 Mgmt Information Services 4.00 3.00 3.00 3.00 3.00 Subtotal General Fund 28.00 27.00 29.00 29.00 29.00 Child Care Program 1.00 1.00 1.00 1.00 1.00 Buildings and Grounds 0.00 0.50 1.00 1.00 1.00 Bayside Fire Department 1.00 1.00 1.00 1.00 1.00 Municipal Solid Waste 5.00 5.00 7.00 7.00 7.00 Kodiak Fisheries Research 2.00 2.50 2.00 2.00 2.00 Total 37.00 37.00 41.00 41.00 41.00 Page 202 1 `1 I Page 203 KODIAK ISLAND BOROUGH CLASS TTfLES AND PAY RANGES ' ASSESSING PAY RANGE ANNUAL SALARY Assessor 24.0 $60,034 - $80,740 Property Appraiser Appraiser Technician 19.0 14.0 $46,899 - $63,074 $36,637 - $49,273 Assessment Clerk 1 10.0 $30,070 - $40,441 CLERK'S OFFICE Borough Clerk 23.0 $57,142 - $76,849 Deputy Clerk 17.5 $43,550 - $58,570 Assistant Clerk 11.0 $31,592 - $42,488 ' COMMUNITY DEVELOPMENT Community Development Director 24.0 $60,034 - $80,740 Associate Planner /LRP 20.5 $50,505 - $67,924 Associate Planner /ENF 20.5 $50,505 - $67,924 Drafting Technician 18.5 $45,755 - $61,535 Secretary III 11.0 $31,592 - $42,488 ENGINEERING & FACILITIES Engineering & Facilities Director 25.0 $63,074 - $84,827 Environmental Specialist 23.0 $57,142 - $76,849 ' Project Manager /inspector 20.5 $50,505 - $67,924 Solid Waste Baler /Landfill Supervisor 19.5 $48,071 - $64,651 Maintenance Engineer -KFRC 18.5 $45,755 - $61,535 Baler Operator II 17.5 $43,550 - $58,570 Baler Operator 1 16.0 $40,441 - $54,388 Maintenance Worker 16.5 $41,452 - $55,748 Projects Assistant 12.0 $33,192 - $44,639 Secretary III 11.0 $31,592 - $42,488 Interpretive Special ist/Receptionist -KFRC 10.5 $30,822 - $41,452 FINANCE DEPARTMENT I Finance Director 24.5 $61,535 - $82,758 General Accountant 20.5 $50,505 - $67,924 Revenue Accountant Accounting Technician /Accounts Payable 20.5 15.0 $50,505 - $67,924 $38,492 - $51,767 Accounting Technician /Payroll 15.0 $38,492 - $51,767 Cashier 11.0 $31,592 - $42,488 Secretary III 11.0 $31,592 - $42,488 Local Administrator - Child Care Assistance Program 12.0 $33,192 - $44,639 I MANAGEMENT INFORMATION SYSTEMS Programmer /Analyst 19.0 $46,899 - $63,074 LAN Administrator 19.0 $46,899 - $63,074 Operations Supervisor 19.0 $46,899 - $63,074 MANAGER'S OFFICE Borough Manager Contract Administrative Assistant Assistant Fire Chief 15.0 20.5 $38,492 - $51,767 $50,505 - $67,924 Kodiak Arts Council Director 16.5 $41,452 - $55,748 `1 I Page 203 KODIAK ISLAND BOROUGH MISCELLANEOUS STATISTICAL DATA Last Ten Fiscal Years Page 204 1997 1998 1999 2000 Land area - square miles 7,130 7,130 7,130 7,130 Miles of improved street 21.6 21.6 21.6 25.4 Building permits: Permits issued 148 182 192 210 Value of buildings (thousands) 7,822 24,302 15,007 11,806 Fire Protection: Number of fire stations 2 2 2 2 Number of employees 1 1 1 1 Police Protection: none (provided by the City of Kodiak w ithin the city limits and by the State of Alaska outside the city boundaries.) Recreation: Parks (number of acres) 224 224 224 224 Facilities: Number of playgrounds 16 16 16 16 Number of swimming pools 1 1 1 1 Public Education: Number of schools Kodiak Area Elementary 4 4 4 4 Kodiak Area Middle School 1 1 1 1 Kodiak Area High School 1 1 1 1 Village Schools (a) 9 8 7 8 Number of support personnel (b) 101 156 163 158 Number of teachers (d) 199 202 208 200 Number of students 2,862 2,851 2,798 2,810 Number of Municipal Employees 61.5 42.75 37.25 37 Elections: Number of registered voters 9,350 9,957 10,389 10,100 Number voting in last election 2,120 2,076 1,972 3,861 Percent of registered voters 23% 21% 19% 38% (a) The majority of Village Schools are grades K -12 (b) All non - teaching employees. Page 204 ' 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 1 2 1 2 1 2 1 2 1 2 1 224 223 223 223 223 223 16 15 15 15 15 15 1 1 1 1 1 1 4 4 4 4 4 4 1 1 1 1 1 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 ,6 9,282 9,300 2,521 24% 2,914 29% 2,181 22% 2,599 27% 2,181 23% 2,200 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. r 1 Page 205 DEMOGRAPHIC STATISTICS Unemployment Rate (c) 7.7% 8.2% 6.8% 7.2% 9.5% 8.9% 10.0% 9.5% 9.5% 8.7% Page 206 KODIAK, ALASKA Last Ten Fiscal Years Fiscal School Year Population (a) Enrollment (b) 1997 14,058 2,862 1998 14,181 2,851 1999 13,848 2,798 2000 13,989 2,810 2001 13,913 2,774 2002 14,167 2,821 2003 13,874 2,750 2004 13,811 2,677 2005 13,466 2,678 2006 13,638 2,728 Sources: (a) per State Dept of Larbor (b) State of Alaska, Dept of Education (c) Department of Labor Unemployment Rate (c) 7.7% 8.2% 6.8% 7.2% 9.5% 8.9% 10.0% 9.5% 9.5% 8.7% Page 206 Ll * Estimated actual value of real properly ** Nontaxable real propertyvalues based on Borough Assessing records from Kb Systems. Source: Borough Assessing records, Cityof Kodiak building department and local bankers. Page 207 PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS KODIAK, ALASKA ' Last Ten Fiscal Years CONSTRUCTION PROPERTY VALUE* 1 Commercial Residential Deposits Fiscal No. of No. of in Local Year Permits Value Permits Value Banks Commercial Residential Nontaxable 1 1997 36 1,559,938 112 6,262,439 108,926,259 161,787,264 411,955,734 2,420,596,952 1998 35 16,316,909 147 7,985,544 107,973,700 169,262,016 414,174,887 2,469,500,329 1999 51 6,784,879 141 8,222,313 123,206,000 172,709,507 422,160,780 2,475,199,399 ' 2000 54 2,720,259 156 9,086,074 120,465,733 193,882,996 433,023,355 2,510,199,399 2001 33 1,379,673 198 11,501,804 119,637,923 194,403,496 441,527,962 1,986,318,619 ' 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 11,707,269 129,546,701 205,053,253 454,987,608 1,994,303,245 ' 2004 44 2,859,775 179 14,798,679 128,062,000 198,268,272 486,159,441 1,668,216,446 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 10,372,416 141,199,391 213,258,488 497,589,811 1,663,156,146 * Estimated actual value of real properly ** Nontaxable real propertyvalues based on Borough Assessing records from Kb Systems. Source: Borough Assessing records, Cityof Kodiak building department and local bankers. Page 207 State Per Capita Tax Comparison 2005 2000 1500 1000 500 0 1 Bristol Bay Haines Kenai Denali Ketchikan Aleutians Fairbanks Matanuska- Kodiak Island Lake & Borough Borough Peninsula Borough Gateway East North Star Susitna Borough Penisula Borough Borough Borough Borough Borough Borough PROJECTED ASSESSED VALUES Fiscal Years 1997 - 2006 are actual, with projection through 2011 $1,000,000,000 $900,000,000 $800,000,000 $700,000,000 $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Page 208 11,176 1,154 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Page 208 PROJECTED POPULATION 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 14,058 14,181 167 , 13,913 14 13,848 13,989 13,874 13,811 13,913 13,658 . . . , . . 13 . R 13n 13x12,8 12,972 12,822 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Projected Student Enrollment 2,900 2,850 2,800 2,750 2,700 2,650 2,600 2,550 2,500 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 The future values in both the projected population and projected student enrollment charts were calculated using the Forecast function in Excel. Page 209 1 Gifford Introduced by: Manager Drafted by: Finance Director Introduced: 05/18/2006 Public Hearing: 05/18/2006 Public Hearing: 06/01/2006 Amended: 06/01/2006 Adopted: 06/01/2006 KODIAK ISLAND BOROUGH ORDINANCE NO. FY2007 -01 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH , LEVYING TAXES ON ALL TAXABLE REAL AND PERSONAL PROPERTY WITHIN THE KODIAK ISLAND BOROUGH. FOR THE EXPENSES AND LIABILITIES OF THE KODIAK ISLAND BOROUGH FOR THE FISCAL YEAR COMMENCING ON THE FIRST DAY OF JULY 2006 AND ENDING ON THE THIRTIETH DAY OF JUNE 2007 (FISCAL YEAR 2007 BUDGET) NOW, THEREFORE, BE IT ORDAINED BY THE KODIAK ISLAND BOROUGH ASSEMBLY THAT: Section 1: This ordinance is not of general application and shall not be codified. Section 2: The following sums of money, or as much thereof as may be authorized by law, as may be needed or deemed necessary to defray all expenses and liabilities of the Kodiak Island Borough, be and the same, is hereby appropriated for municipal purposes and objects of the Kodiak Island Borough and other taxing entities hereinafter specified for the fiscal year commencing on the first day of July 2006 and ending on the thirtieth day of June 2007. Section 3: Adoption of this ordinance recognizes that funds are appropriated at department and /or project level. Compositions of these figures are as delineated in the full detail budget document. The full document is available to all elected and appointed officials for their use. Copies may be reviewed by interested citizens at the Borough Building during normal working hours and also at the A. Holmes Johnson, Chiniak, and village public libraries during their normal operating hours. Page 210 1 Budget Ordinance A. General Fund (100) Revenues Percentage Taxes Real Property 54.71% 7,464,057 Personal Property 7.57% 1,032,925 Non ad valorem taxes 2.03% 276,700 Payment in lieu of taxes 5.61% 765,000 Severance Taxes 7.45% 1,016,793 Penalties & Interest on Tax 1.10% 150,000 Licenses & Permits 0.77% 104,500 Intergovernmental 16.26% 2,217,945 Investments Earnings 2.93% 400,000 Other 0.44% 60,200 Use of Fund Balance 1.13% 154,296 Total General Fund Revenues 100.00% 13,642,416 Expenditures FTE Legislative 1.19% 161,790 Personnel Services 21,600 Fringe Benefits 5,190 Lobbyist 62,000 Support Services 73,000 Borough Management 2 1.88% 256,253 Personnel Services 161,600 Fringe Benefits 75,433 Support Services 39,220 Allocated (20,000) Borough Clerk 3 2.65% 361,490 Personnel Services 160,430 Fringe Benefits 98,730 Support Services 102,330 Legal Services 0.95% 130,000 Cost of Litigation 120,000 Support Services 10,000 Finance /Accounting 7 4.74% 647,023 Page 211 Personnel Services 409,500 Fringe Benefits 206,843 Support Services 95,680 Capital Outlay Allocated to Projects (65,000) Finance /MIS 3 3.49% 475,838 Personnel Services 196,250 Fringe Benefits 102,378 Contracted Services 11,000 Support Services 294,860 Capital Outlay 10,000 Allocated (138,650) Assessing 4 2.93% 399,150 Personnel Services 243,180 Fringe Benefits 126,620 Support Services 42,350 Capital Outlay Allocated to other funds (13,000) Engineering /Facilities 2 1.11% 152,102 Personnel Services 86,720 Fringe Benefits 40,750 Professional Services 25,700 Support Services 48,932 Allocated to Projects (50,000) Community Development 5 4.50% 613,420 Personnel Services 326,750 Fringe Benefits 157,160 Professional Services 60,000 Support Services 71,910 Capital Outlay Allocated to Projects (2,400) Building Inspectors 0.97% 132,640 Contracted Services 125,000 Support Goods and Services 7,640 Economic Development 0.51% 70,000 Professional Services 22,000 Contributions 43,000 Support Goods & Services 5,000 General Administration 2.18% 297,370 Page 212 Fringe Benefits Professional Services Audit Expense 96,000 Contracted Services 20,000 Support Services 156,370 Capital Outlay 25,000 Emergency Preparedness 0.06% Support Services 8,800 Capital Outlay - Education Support 66.58% Professional Services 508,000 Audit Expense 37,000 Support Goods and Services 102,000 Operating Transfers 8,435,990 Health & Social Services 2.12% Contracted Services 60,000 Contributions 229,880 Education, Culture & Recreation 1.23% Contributions 167,220 Transfers Out 2.91 Transfers 396,450 Total General Fund Expenditures B. Special Revenue Funds (Revenues and Expenditures) 1 Child Care Assistance (205) 3 Land Sales (210) Buildings & Grounds Fund 4 (220) 5 Coastal Management (230) 6 Local Emergency Planning Committee (234) 7 Women's Bay Road Service Area (240) 8 Service Area No. 1 (242) 9 Service Area No. 2 (243) 10 Monashka Bay Road Services Area (244) AM 9,082,990 289,880 167,220 396,450 13,642,416 89,280 96,700 706,980 25,650 20,000 119,600 215,000 43,175 Page 213 11 12 13 14 15 16 17 18 19 20 21 22 C. 1 2 D. 1 2 3 4 Bay View Road Service Area (246) Fire Protection Area No. 1 (254) Women's Bay Fire Department (252) KIB Airport Fire Area (254) Woodland Acres Street Light Area (260) Trinity Acres Lighting Dist. (261) Mission Lake Tide Gate (262) Trinity Acres Paving Dist. 263) Kodiak Arts Council (275) Facilities Fund (276) Tourism Development (277) Fern Fuller Trust (290) Total Special Revenue Funds Debt Service Funds Debt Service (300) Debt Service - Other (310) Total Debt Service Funds (Revenues and Expenditures) Capital Project Funds (Revenues and Expenditures) Capital Project - Borough, Various (410) Capital Project - School Bonds, Various (420) Capital Projects - State Grants (430) Capital Projects - Enterprise Funds (490) Total Capital Projects Funds 4,800 701,160 89,200 16,730 6,000 3,600 2,460 22,140 65,780 1,800,000 45,000 75,000 4,148,255 3,431,810 U 3,431,810 390,000 0 0 0 Page 214 E. Enterprise Funds 1 Solid Waste Disposal Fund (530) 2 Hospital Enterprise Fund (540) 3 Near Island Research Fund (555) 4 911 Service (560) Total Enterprise Funds Total all Funds (Revenues and Expenditures) Page 215 3,759,523 1,735,873 2,051,759 69,000 7,616,155 $ 29,228,636 Section 4: Tax Levy. A tax for the amount specified in the form of a mill levy is hereby levied for the value as of January 1, 2006, to be used for the purposes as specified in the Budget for the Fiscal Year 2007 of the Kodiak Island Borough commencing on the first day of July , 2006 and ending on the thirtieth day of June 2007 to defray expenses and liabilities of said entity as enumerated in the applicable budgets. The millage rates by taxing entity are as follows: ' A. City of Kodiak 2.00 mills* B. Kodiak Island Borough 10.50 mills ' C. Womens Bay Road Service Area 2.00 mills D. Womens Bay Fire Dept. 1.25 mills E. Bay View Road Service Area 1.00 mills , F. Fire Protection Area No. 1 1.50 mills G. Monashka Bay Road Service Area 2.50 mills H. Service Area No. 1 Roads 1.25 mills I. Woodland Acres Street Light Area 0.00 mills J. Service Area No. 2 0.00 mills K. KIB Airport Fire Area 1.25 mills L. Trinity Islands Street Light Service Area .50 mills M. Mission Lake Tide Gate Service Area 1.00 mills *Kodiak City Ordinance Numbers 906 and 908 exempt all personal property from City of , Kodiak taxation. Section 5: The tax rate on boats is set at $1 per foot with a minimum of $30. Boats that weigh less than 5 tons are exempt. Section 6: Kodiak Island Borough Staff is hereby authorized and directed to effect the necessary line item changes within the limits established above by fund, project, and department to properly monitor, account, and report on the expenditure of these funds. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS FIRST DAY OF JUNE, 2006 KODIAK ISLAND BOROUGH ' ATTEST: Jerome M. Selby, Borough Mayor Judith A. Nielsen, CMC, Borough Clerk Page 216 1 GLOSSARY 1 GLOSSARY ADOPTED BUDGET - Refers to the budget amounts as originally approved by the Kodiak Island Borough assembly at the beginning of the year, and also to the budget document which consolidates all beginning-of-the - year operating appropriations and new capital project appropriations. ' ANNUAL BUDGET - A budget developed and enacted to apply to a single fiscal year. APPROPRIATION - The legal authorization granted to the legislative body of a government that permits officials to ' incur obligations and make expenditures of governmental resources for specific purposes. Appropriations are usually limited in amounts and time they may be expended. ASSESSED VALUATION - The valuation set upon all real and personal property in the Borough that is used as a ' basis for levying taxes. Tax - exempt property is excluded from the assessable base. ASSESSED VALUE - The fair market value placed on personal and real property owned by taxpayers. State law ' requires all taxable property to be assessed annually at 100% of market value. AUDIT - A systematic collection of the sufficient, competent evidential matter to attest to the fairness of management's assertions in the financial statements or to evaluate whether management has efficiently and ' effectively carried out its responsibilities. The auditor obtains this evidential matter through inspections, observations, inquiries, and confirmations with third parties. BASIS OF ACCOUNTING - A term referring to when revenues, expenditures, expenses, and transfers (and the related assets and liabilities) are recognized in the accounts and reported in the financial statements. Specifically, it relates to the timing of the measurements made, regardless of the nature of the measurement, on either the cash or accrual method. ' BLM — Bureau of Land Management A Federal department responsible for managing much of the vacant federally owned land. ' Board of Equalization — An official board of the Kodiak Island Borough that holds annual hearings for the purpose of settling disputes regarding the assessed value of property within the Borough. ' BOND — A written promise to pay a specified sum of money, called the face value or principal amount, at a specified date in the future, called the maturity date, together with periodic interest at a specified date. BUDGET - A plan of financial operation embodying an estimate of proposed expenditures for a given period of time and the proposed means of financing them. Sometimes the term "budget" designates the financial plan presented to the appropriating governing body for adoption, and sometimes, the plan finally approved by that body. ' BUDGET DOCUMENT - The official written statement prepared by the Borough's administrative staff to present a comprehensive financial program to the Borough Assembly. The first part provides overview information, together with a message from the budget- making authority, and a summary of the proposed expenditures and the means of financing them. The second consists of schedules supporting the summary. These schedules show in detail the past year's actual revenues, expenditures, and other data used in making the estimates. The third part is composed of personnel and salary schedules, the chart of accounts, and a glossary. ' BUDGET MESSAGE - A general discussion of the proposed budget presented in writing by the budget- making authority to the Borough Assembly. The budget message contains an explanation of the principal budget items, an outline of the Borough's experience during the past period and its financial status at the time of the message, and recommendations regarding the financial policy for the coming period. CAPITAL PROJECTS FUND - Funds established to account for financial resources to be used for the acquisition or construction of major capital facilities (other than propriety and trust funds). Page 217 Page 218 1 ' CAPITAL OUTLAY - Expenditures that result in the acquisition of items such as tools, desks, machinery, and vehicles costing more than $5,000 each having a useful life of more than one year and are not consumed through use are defined as capital items. ' COMPONENT UNIT - A separate government unit, agency, or nonprofit corporation that is combined with other component units to constitute the reporting entity in conformity with GAAP. , COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) - The official annual report of a government including: (a) the five combined financial statements in the combined statement overview and their related notes, (b) combining statements by fund type and individual fund, and (c) account group financial statements prepared in conformity with GAAP and organized into a financial report pyramid. It also includes support schedules necessary to demonstrate compliance with finance - related legal and contractual provisions, required supplementary information, extensive introductory material, and detailed statistical sections. ' CONTINGENCY - Those funds included in the budget for the purpose of providing a means to cover minor unexpected costs during the budget year. CONTRACTUAL SERVICES - Items of expenditure from services the Borough receives primarily from an outside company. CPI — Consumer Price Index DEBT SERVICE FUNDS - Funds established to account for the accumulation of resources for and the payment of general long -term debt principal and interest that resulted from the issuance of bonds. DEFICIT — The excess of expenditures over revenues during an accounting period, or in the case of proprietary funds, the excess of expenses over revenues during an accounting period. DEPRECIATION — Depreciation is where the cost of an asset is spread over its useful life. ' ENCUMBRANCES - Commitments related to unperformed contracts, in the form of purchase orders or contracts, for goods or services. Used in budgeting, encumbrances are not expenditures or liabilities, but represent the ' estimated amount of expenditures that will result if unperformed contracts in process are completed. ENTERPRISE FUND - A proprietary fund established to account for operations that are financed and operated in a manner similar to private business enterprises. In this case, the intent of the governing body is that the expenses, , including depreciation, of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges. EXPENDITURE - Decrease in net financial resources. Expenditures include current operating expenses requiring the present or future use of net current assets, debt service and capital outlays, intergovernmental grants, entitlements, and shared revenues. ' EXPENSES - Outflows or other using up of assets or incurrence of liabilities (or a combination of both) from delivering or producing goods, rendering services, or carrying out other government units, and /or other funds. FIDUCIARY FUND TYPES - The trust and agency funds used to account for assets held by a government unit in a trustee capacity or an agent for individual, private organizations, other government units and /or other funds. FISCAL YEAR - The twelve -month period to which the annual operating budget applies and at the end of which a ' government determines the financial position and results of its operations. The Borough's fiscal year extends from July 1 to the following June 30. FUND - A fiscal and accounting entity with a self - balancing set of accounts in which cash and /or other financial resources, all related liabilities, and residual equities or balances, and changes therein are recorded and Page 218 1 segregated to carry on specific activities or attain certain objectives in accordance with special regulations, restrictions, or limitations. FUND BALANCE — The difference between the total assets available for appropriation and the total of current liabilities of the fund. FUND TYPE - The three broad fund categories of governmental accounting are subdivided into seven fund types. The seven types are: general, special revenue, debt services, capital projects, enterprises, internal service, and trust and agency. GENERAL FUND - A type of governmental fund used to account for revenues and expenditures for regular day -to- day operations of the Borough, including the school district, which are not accounted for in specific purpose funds. The primary sources of revenue for this fund are local taxes and federal and state revenues. ■ GENERAL OBLIGATION BONDS — General Obligation Bonds are debt backed by the full faith and credit of a government agency. ' GENERALLY ACCEPTED ACCOUNTING PRINCIPALS (GAAP) - Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP encompass the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time. They include not only broad guidelines of general applications, but also detailed practices and procedures. GAAP provide a standard by which to measure financial presentations. GOVERNMENT FUND TYPES - Funds used to account for the acquisition, use, and balances of expendable ' financial resources and the related current liabilities, except those accounted for in the proprietary funds and fiduciary funds. Under current GAAP, there are four governmental fund types: general, special revenue, debt service, and capital projects. IN -KIND SERVICES — The Borough pays for some School District expenditures directly. These include such items as audit fees and insurance. INTERFUND TRANSFERS - Amounts transferred from one fund to another fund. This includes reimbursements, residual equity transfers, and operating transfers. INTERGOVERNMENTAL REVENUES - Revenues from other governments in the form of grants, entitlements, shared revenues, or payments in lieu of taxes. INVESTMENT - Securities held for the production of income in the form of interest in compliance with the policies set out by the Borough's Code of Ordinances. LAPSE - As applied to appropriations, the automatic termination of an appropriation. Except for indeterminate appropriations and continuing appropriations, an appropriation is made for a certain period of time. LEVY - To impose taxes, special assessments, or service charges for the support of government activities. Also used to denote the total amount of taxes, special assessments, or service charges imposed by a government. LIABILITIES - Debt or other legal obligations arising from present obligations of a particular entity, to transfer assets or provide services to other entities in the future as a result of past transactions or events. MEASUREMENT FOCUS - The accounting convention that determines (1) which assets and which liabilities are included on a government's balance sheet and where they are reported, and (2) whether an operating statement presents information on the flow of financial resources (revenues and expenditures) or information on the flow of economic resources (revenue and expenses). MILL - A measure of the rate of property taxation, representing one one - thousandth of a dollar of assessed value. Page 219 MILLAGE RATE - The tax rate on property, based on mill(s). A rate of 1 mill applied to a taxable value of $100,000 would yield $100 in taxes. MODIFIED ACCRUAL BASIS OF ACCOUNTING - A basis of accounting in which revenues and other financial resources are recognized when they become susceptible to accrual, that is when they are both "measurable" and "available to finance expenditures of the current period ". "Available" means collectable in the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recognized when the fund liability is incurred except for (1) inventories of materials and supplies that may be considered expenditures either when purchased or when used, and (2) prepaid insurance and similar items that may be considered expenditures either when paid for or when consumed. All governmental funds, expendable trust funds and agency funds are accounted for using the modified accrual basis of accounting. OPERATING BUDGET - Plans of current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing, acquisition, spending, and service delivery activities of a government are controlled. Law usually requires the use of an annual operating budget. Annual operating budgets are essential to sound financial management and should be adopted by every government. OPERATING TRANSFERS - All INTERFUND transfers other than residual equity transfers. ORDINANCE - A formal legislative enactment by the legislative body which, if not in conflict with any highest form of law, has the full force and effect of law within the boundaries of the municipality to which it applies. The difference between an ordinance and a resolution is that the latter requires less legal formality and has a lower legal status. Revenue raising measures, such as the imposition of taxes, special assessments and service charges, universally require ordinances. OTHER FINANCING SOURCES - Governmental funds, general long -term debt proceeds, land lease payments, land sale payments, proceeds from the sale of fixed assets, operating transfers -in, service charges and fees for governmental services. OVERSIGHT RESPONSIBILITY - The basic, but not the only, criterion for including a government department, agency, institution, commission, public authority, or other organization in a government unit's reporting entity for general purpose financial reports. Oversight responsibility is derived from the government unit's power and includes, but is not limited to, financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations and accountability for fiscal matters. PROGRAM - An organized set of related work activities that are directed toward a common purpose or goal and represent a well- defined expenditure of Borough resources. PROGRAM BUDGET - A budget which structures budget choices and information in terms of programs and their related activities (i.e. repairing roads, treating water, etc.), provides information on what each program is committed to accomplish in the long run (goals) and in the short run (objectives), and measures the degree of achievement of program objectives (performance measures). PROGRAM DESCRIPTION - A program description describes the function of the program, the various activities involved in the program, and other pertinent information about the program. It answers the question, "what does this program do ?" PROGRAM GOAL - A program goal is a general statement on the intended effect or purpose of the program's activities. It includes terms such as: to provide (a service), to supply (a given need), to control, reduce, or eliminate (an occurrence), to maintain (standards), or to maximize (quality). A goal is not limited to a one -year time frame and should generally not change from year to year. A goal statement describes essential reason for the program's existence. PROGRAM OBJECTIVE - Objectives are statements of the intended beneficial and /or tangible effects of a program's activities. They are measurable and related to the proposed budget year. They are specific targets toward which a manager can plan, schedule work activities, and make staff assignments. Objectives should Page 220 ' quantifiably be addressed in terms such as: to increase an activity, to maintain a service level, to reduce the incidence, or to eliminate a problem. PROPERTY TAX - A tax levied on the assessed value of property. PROPRIETARY FUNDS - A type of fund that accounts for governmental operations that are financed and operated in a manner similar to private business enterprises. The only proprietary fund type used by the Borough is the enterprise funds. PURCHASE ORDER - A document authorizing the delivery of specified merchandise or the rendering of certain services for a stated, estimated price. Outstanding purchase orders at the end of a fiscal year are called encumbrances. RESOLUTION - A special or temporary order of a legislative body; an order of a legislative body requiring less legal formality than an ordinance or statute. RETAINED EARNINGS - An equity account reflecting the accumulated earnings of an enterprise or internal ' service fund. REVENUE - Increases in the net current assets of a governmental type other than expenditure refunds and residual equity transfers. General long -term debt proceeds and operating transfers -in are classified as "other 1 financing sources" rather than revenues. Increases in the net total assets of a proprietary fund type other than expense refunds, capital contributions, and residual equity transfers. Operating transfers, as in governmental fund types, are classified separately from revenues. SEVERANCE TAX - A severance tax is a tax on the removal of natural resources from the Kodiak Island Borough. Major resources include fish, timber, and gravel. The severance tax rate is the same as the mill rate. i SPECIAL ASSESSMENTS — Special assessments are fees levied on property owners to construct an asset that benefits the property holder. These assessments are levied until the asset is paid for. The amount of the assessment can be based on value, size, road frontage, etc. ' SPECIAL REVENUE FUND - A fund is used to account for the proceeds of specific revenue sources (other than expendable trust or major capital projects) that are legally restricted to expenditure for specified purposes. TAX RATE - The level at which taxes are levied. For example, a property tax rate may be proposed to be $0.575 per $100 of assessed value. ' TAX LEVY - The total dollar amount of tax that optimally should be collected based on tax rates and assessed values of personal and real properties. 11 u Page 221