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2004 Annual Operating Budget BookKODIAK ISLAND BOROUGH ADOPTED BUDGET FOR FISCAL YEAR ENDING JUNE 30 2004 AS SUBMITTED BY: PATRICK CARLSON BOROUGH MANAGER ON MAY 15 2003 AND AS AMENDED BY THE KODIAK ISLAND BOROUGH AND ADOPTED ON JUNE 5, 2003 KODIAK ISLAND BOROUGH MAYOR AND ASSEMBLY GABRIELLE LEDOUX, MAYOR ROBIN HEINRICHS, DEPUTY MAYOR TOM ABELL TUCK BONNEY PAT BRANSON GREG RAZO WAYNE STEVENS NANCY WELLS TABLE OF CONTENTS BUDGETMESSAGE ................................................................................................................... ............................... 7 BUDGETCALENDAR ................................................................................................................. .............................13 STRATEGICPLAN ...................................................................................................................... .............................1 FINANCIALSUMMARIES ........................................................................................................... .............................25 FUNDSTRUCTURE .............................................................................................................................. ............................... 25 FISCALPOLICY .................................................................................................................................... ............................... 26 FUNDSUMMARY ....................................................................................................................................... ............................... 31 GENERALFUND ......................................................................................................................... ............................. REVENUE SOURCES AND GENERAL FUND ESTIMATES ............................................................................. ............................... 35 FUNDBALANCE ..................................................................................................................................... ............................. CHILDCARE ASSISTANCE PROGRAM ............................................................................................ ............................... GENERALFUND REVENUE SUMMARY ............................................................................................ .............................42 RESOURCEMANAGEMENT ................................................................................................................. ............................. SUMMARY OF GENERAL FUND EXPENDITURES BY DEPARTMENT ......................................... .............................43 WELFARETO WORK ............................................................................................................................. ............................. SUMMARY OF GENERAL FUND EXPENDITURES BY DEPARTMENT ......................................... .............................44 BUILDINGAND GROUNDS FUNDS .................................................................................................... ............................. BOROUGHASSEMBLY .......................................................................................................................... ............................. BUILDING AND GROUNDS FUND- BOROUGH BUILDING .............................................................. .............................9 MANAGER'S OFFICE ............................................................................................................................. ............................. BUILDING AND GROUNDS FUND -MENTAL HEALTH CENTER ................................................... .............................96 CLERK'S OFFICE .................................................................................................................................. ............................... 50 LEGALSERVICES ................................................................................................................................... ............................. BUILDING AND GROUNDS FUND -PARKS OPERATION AND MAINTENANCE ........................ ............................100 FINANCE ................................................................................................................................................ ............................... 54 FINANCEIMANAGEMENT INFORMATION SERVICES .................................................................. ............................... 56 ASSESSING ............................................................................................................................................ ............................... 58 ENGINEERINGAND FACILITIES ......................................................................................................... ............................. SERVICEDISTRICT NO. 1 ..................................................................................... ............................... ............................ COMMUNITYDEVELOPMENT DEPARTMENT ................................................................................ .............................6 SERVICEAREA NO.2 ............................................................................................ ............................... ............................ BUILDINGINSPECTION ........................................................................................................................ ............................. MONASHKABAY ROAD SERVICE AREA ......................................................... ............................... ............................ ECONOMICDEVELOPMENT ................................................................................................................ ............................. BAYVIEW ROAD SERVICE AREA ...................................................................... ............................... ............................ GENERALADMINISTRATION ........................................................................................................... ............................... 68 EMERGENCYPREPAREDNESS ............................................................................................................ ............................. SCHOOLDISTRICT SUPPORT ............................................................................................................ ............................... 72 HEALTHAND SANITATION ................................................................................................................. ............................. EDUCATION CULTURE AND RECREATION .................................................................................. ............................... 76 TRANSFERS ........................................................................................................................................... ............................... 78 SPECIALREVENUE FUNDS ...................................................................................................... ............................. REVENUE SOURCES AND SPECIAL REVENUE FUND ESTIMATES ........................................... ............................... 81 SPECIALREVENUE FUND RECAP .................................................................................................... ............................... 84 CHILDCARE ASSISTANCE PROGRAM ............................................................................................ ............................... 86 RESOURCEMANAGEMENT ................................................................................................................. ............................. WELFARETO WORK ............................................................................................................................. ............................. BUILDINGAND GROUNDS FUNDS .................................................................................................... ............................. BUILDING AND GROUNDS FUND- BOROUGH BUILDING .............................................................. .............................9 BUILDING AND GROUNDS FUND -MENTAL HEALTH CENTER ................................................... .............................96 BUILDING AND GROUNDS FUND- SCHOOL BUILDINGS ............................................................... .............................98 BUILDING AND GROUNDS FUND -PARKS OPERATION AND MAINTENANCE ........................ ............................100 COASTALMANAGEMENT ................................................................................... ............................... ............................ LOCAL EMERGENCY PLANNING COMMITTEE ............................................... ............................... ............................ WOMENSBAY ROAD SERVICE AREA ............................................................... ............................... ............................ SERVICEDISTRICT NO. 1 ..................................................................................... ............................... ............................ SERVICEAREA NO.2 ............................................................................................ ............................... ............................ MONASHKABAY ROAD SERVICE AREA ......................................................... ............................... ............................ BAYVIEW ROAD SERVICE AREA ...................................................................... ............................... ............................ 2 FIREPROTECTION AREA NO. 1 ...................................................................................................... ............................... 118 WOMENSBAY FIRE DEPARTMENT ............................................................................................... ............................... 120 KODIAK ISLAND BOROUGH AIRPORT FIRE PROTECTION DISTRICT ................................... ............................... 122 WOODLAND ACRES STREET LIGHT AREA .................................................................................. ............................... 124 TRINITY ISLANDS LIGHTING DISTRICT ...................................................................................... ............................... 126 MISSION LAKE TIDE GATE SERVICE AREA ................................................................................ ............................... 128 KODIAKARTS COUNCIL ................................................................................................................. ............................... 130 FACILITIESFUND .............................................................................................................................. ............................... 132 TOURISMDEVELOPMENT ............................................................................................................... ............................... 134 DEBT SERVICE FUND ...................... ............................... ........ ............................137 DEBT SERVICE - EDUCATION AND HEALTH ............................................................................. ............................... 146 DEBTSERVICE - OTHER .................................................................................................................. ............................... 148 CAPITALPROJECTS FUNDS ................................................................................................ ............................... 151 ENTERPRISEFUNDS ................................................................................. ............................... ............................179 MUNICIPAL SOLID WASTE (MSW) COLLECTION AND DISPOSAL ......................................... ............................... 180 HOSPITALENTERPRISE FUND ....................................................................................................... ............................... 182 KODIAK FISHERIES RESEARCH CENTER ..................................................................................... ............................... 184 911 SERVICE ....................................................................................................................................... ............................... 186 APPENDIX................................................................................................... ............................... ............................189 FISCAL YEAR 2004 AT A GLANCE The Borough's general fund mill rate remains at 9.25 mills. This will reflect a tax bill of $925.00 for property valued at $100,000. This mill rate includes funding for schools but not service districts such as road and fire districts. The Borough increased the mill rate from 6.75 mills to 9.25 mills in FY 1998. Immediately thereafter, the voters of the Borough established a tax cap, which would limit tax increases for two years. The two -year period has expired and the Assembly may pass an ordinance rescinding the tax cap. There will be a transfer of $348,620 from the General Fund to Debt Service for annual payments of principal and interest on the 1993, 1994, 1998, 2000E, 2000F and 2003 bonds. The FY 1993 bonds will be completely paid off in FY2004. Because the Facilities Fund is transferring $404,060 and the Hospital Enterprise Fund is transferring $394,560 to the Debt Service Fund for payment of principal and interest on the 1993, 1994, 1998 and 2003 bonds the General Fund of the Kodiak Island Borough does not have to make principal and interest payments on these bond issues as related to the Kodiak Island Hospital. This is a savings to the General Fund in the amount of $798,620, or about one mill. The Facilities Fund is growing every year. At the end of FY2004 the fund balance of the Facilities Fund should be $8,386,523. Accordingly, we have budgeted approximately $1,100,000 in interest earnings for fiscal year 2004, This is actually $60,335 less than was earned in FY2003 but we wanted to be conservative in these days of declining and low interest rates. Service District Number One decreased their mill rate from 1.25 mill to 1 mill. H G GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presen tation Award PRESENTED TO Kodiak Island Borough Alaska For the Fiscal Year Beginning July 1, 2002 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, 2002. 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 2004 award. E INTRODUCTION BUDGET MESSAGE KODIAK ISLAND BOROUGH Fiscal Year 2004 BUDGET LETTER OF TRANSMITTAL The Residents of Kodiak Island Borough Kodiak, Alaska 99615 Residents, Transmitted herewith is the fiscal year 2004 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 2004 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 FY2003 Budget The most significant issue in FY2003 was the "Jane Doe" lawsuit. The Kodiak Island Borough lost this lawsuit in FY2003 ' and had to pay a settlement of $2,373,389 in FY2003. To put this into perspective, this settlement is 21% of the $11,538,811 FY2004 budget. This settlement did not cause the Borough to raise the mill levy for FY2004 but it did noticeably decrease the fund balance of the General Fund and the Hospital Enterprise Fund. Federal Payment in Lieu of Taxes came in well above budget. We budgeted $520,000 and the actual revenue was $786,014. Because of this we have increased our FY2004 budget to $685,121. Severance taxes on fish were $133,935 under budget, which is not a large amount but is notable since our communities largest industry is commercial fishing. To see the trend in commercial fishing severance taxes please see the chart on page 37 State raw fish tax from the department of revenue came in $160,513 over budget and raw fish tax from the State Department of Community and Economic Development came in at $15,605 under budget. Together the raw fish tax came in on a positive note. Please refer to the Fish Chart on page 39. Because of the mild winter most road service districts had an increase in their FY2003 fund balance. For many years the building and grounds fund had a negative fund balance. In FY2003 the fund balance went from a negative $181,419 to a positive $370,131 Interest earnings in the Facilities Fund pay for the insurance on the Borough owned buildings, including schools. In FY2003 the Facilities Fund transferred $622,560 to the Building and Grounds fund, mostly for insurance on school buildings. Without this transfer this insurance would have to be paid by charging more rent and ultimately using more tax dollars. The fund balance in the Faculties fund went up $11,901,922 in FY 2003. This was due to an $11,805,734 payment from the State of Alaska for the Sale of Shuyak Island to the State and $1,160,335 in interest earnings. This was our last payment from the State of Alaska. Eighty -five percent of the interest earnings from the previous year can be used for insurance, debt reimbursement, and capital projects, the remaining 15% must be kept in the fund for inflation proofing. These are the major issues from FY2003that were taken into consideration in forming the FY2004 budget. There were many other items that happened in FY2003 that went into forming the FY2004 budget and these can be found through out the budget. Major Policy Issues For FY2004 the major concern of the Borough was controlling expenditures in the wake of the "Jane Doe" lawsuit. While the General Fund still has a healthy Fund Balance ($1,804,110), the Borough does not want to draw down on it in FY2004. Also, in FY2004 the Borough did not want to increase property taxes. The chart on Page 41 shows the Fund Balance of the General Fund over the last ten years Another major issues is paying for increasing education costs with stagnant State Aid for education, declining State Revenue Sharing and Municipal Assistance, and a desire of the populace to not raise taxes. Increases in tax revenue are not keeping pace with the increased educational costs the Borough must bear. 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 almost all of insurance that would normally be paid for by the general fund. This is budgeted at $500,000 for FY2004. 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 FY2004 the Facilities fund is moving $404,060 to pay for a portion of this debt service expense. In FY2003 General Fund expenditures exceeded revenues by $ 1,408,935. This leaves the Borough with an estimated fund balance in the General Fund of $1,804,110. This decrease was discussed in the section on previous year performance so we will not repeat it here. The one point to remember is that without the "Jane Doe" lawsuit the fund balance would have increased by $964,454. We have to remember that this is a one time occurrence and not indicative of Borough performance over time. As always, the budget process included considerable debate about school funding. State appropriations for education have been static, but the 4 -6 mill window has staid in place. School Districts are finding it harder each year to balance their budgets and still provide a quality education. This year the Borough's total School District budget is $8,167,440 with a direct contribution to the school district of $7,026,440 and in -kind services budgeted at $1,141,670. $400,000 of the direct contribution budget is held in reserve pending an unexpected need from the School District. 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. Considering the factors involved in this calculation, such as assessed value and instructional units, the local contribution to education will undoubtedly increase over the next several years. The State of Alaska mandates that Boroughs will contribute 4 to 6 mills to their school districts. If their contribution is not in this window than state funding will be reduced. The Borough's contribution is very close to the upper end of this window. (This window does not include debt service. This is because much of the Boroughs school related debt is refunded by the State directly). There is considerable interest by some of the large school districts in the state to change the required local funding window from the current 4 -6 mills to 5 -7 mills or even 6 -8 mills. If adopted, these changes could result in substantial increases in the KIB budget. Added pressures on the school budget, including building maintenance, teacher contract negotiations, and increasing health insurance costs, will cause the school board and administration to closely examine the school district budget in the future and tell the public precisely what the millage rate is for education. 1 This year the Assembly also had 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. This year we were able to keep contributions to non - profits at the same level of funding as last year. 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. Scrap metal, corrugated cardboard, aluminum, used oil, household hazardous waste, and white paper, are items that are being recycled, or removed from the landfill. Our landfill permit is in the final stages of approval by the 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 This budget will maintain the mill rate for the General Fund of the Borough at 9.25 mills. 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. Pursuant to Alaska law respecting initiatives however this limit was subject to change after two years and this time period has lapsed. The fund balance of the general fund was in a state of decline from FY1996 to FY1999 but it did go up in FY2000 to FY2002. Unfortunately the fund balance did go down in FY2003 as we discussed before. This year's budget does not include any use of fund balance in the General Fund. There is a chart on fund balance on page 41. Since 1999, Borough General Fund revenues have increased from $10,172,146 to an estimated $11,538,811 an increase of 13%. General Fund expenditures are expected to decrease from $13,073,954 in FY2003 to a budgeted $ 11,538,811 in FY2004. The reason for this decrease is the "Jane Doe" settlement in FY2003. Again, without this settlement FY2003 expenditures would have been only $10,700,565. 1 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 years interest earnings for building insurance, debt service, and capital projects. In FY2004 ' the Facilities fund is transferring $500,000 to building and grounds and $404,060 to debt service. If the Facilities fund were not available this $904,060 would have to be paid out of the General Fund and ultimately the individual taxpayers. This is a savings of over one mill. ' This year the direct appropriation to the Kodiak Island Borough School District is staying level at $6,626,440. The Borough has set aside $400,000 if an additional appropriation is needed. Budgeted in -kind services are budgeted $285,505 over FY2003 actual expenditures. If education expenditures continue to rise faster than our assessed value increases, then we ' will have to raise our mill rate or free up revenues through decreased expenses in other areas. Various service districts within the Borough levy a property tax to provide service within the Borough. These levies t range up to 2.0 mills. Services provided include road maintenance, fire protection, and street lighting and a tide Gate. The Trinity Acres Lighting District and the Mission Lake Tide Gate are two new service districts for FY2004. Property assessments have increased from last year 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 11 l property rolls has continued. The taxable value of real and personal property for FY2004 is $808,291,775, an increase of $47,839,918 (6 %) over FY2003's value of $760,451,857. The total proposed budget for fiscal year 2003 calls for expenditures and transfers of $25,423,789. The Kodiak Island Borough School District's (KIBSD) proposed budget of $25,735,170 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 $51,158,959. The largest component of the Budget is the General Fund. The proposed General Fund budget is $11,538,811 or 50% of the total budget. Of this, $7,425,730 is for transfers to other funds (mostly KIBSD) leaving expenditures in the General Fund of $4,113,081, which amounts to just 36% of the total General Fund Budget. General Fund revenues are budgeted at $8,180,031 (77 %) from property taxes, $836,000 (8%) from severance taxes, $89,500 (1 %) from licenses and permits, $1,404,110 (13 %) from intergovernmental sources, $127,570 (1%) from interest earnings, and $ 51,600 ( <1 %) from miscellaneous revenue. General Fund expenditures and transfers are budgeted at $1,209,600 (10 %) for general government, $137,230 (1 %) for public safety, $8,054,730 (70 %) for education, $147,230 (1%) for culture and recreation, $280,900 (2 %) for health and welfare, $304,360 (3 %) for assessing, $873,210 (8%) for finance and MIS, and $531,551 (4 %) for community development. The FY2004 budget totals $11,538,811, which is $1,535,143 less than actual expenditures of $13,073,954 in FY2003. Debt service will be less in FY2004 than it was in FY2003; $1,875,860 in FY2004 compared to $2,300,817 in FY2003. There was a transfer of $350,000 to the General Fund in FY2003 to help pay for the "Jane Doe" settlement. 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 $8,761,577 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 FY2004 and beyond. The State of Alaska is not receiving the money from the sale of oil that it did several years ago. This is due to both declining production on the North Slope and decreased prices. Because of these declining revenues the State is 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 IBCA, 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 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 FY2003. We will be submitting this budget to the GFOA for their evaluation. A 10 1 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 Patrick Carlson I Borough Manager � I � I I Karleton G. Short Finance Director 11 t BUDGET CALENDAR KODIAK ISLAND BOROUGH ' FISCAL YEAR 2004 The following activity is outlined as essential for the orderly formulation of the fiscal year 2004 Borough I budget (July 1, 2003 through June 30, 2004). DATE ITEM BY January 21, 2003 Budget Preparation Message Manager January 21 Distribution of budget worksheets to aid departments and Finance Officer service districts in submitting their requests January 27 Distribution of forms to gather input from autonomous not -for- Manager p rofit organizations February 7 Final day for departmental budget requests to be returned to Department Manager via Finance Officer Heads February 8 Revenue forecast all funds Finance Officer February -March Work sessions to resolve or justify differences of department Manager/ Finance budgets Officer/ Dept. Heads February 28 Due date for public and not-for-profit agencies budget requests Manager March 14 Receipt of Service District budgets Service Districts April 24 Annual budget message /Distribution of draft budget to Manager Assembl April 24 Prior to April 30, submission of proposed budget and budget Manager/ message for Assembly in a work session (per KIB Code Finance Subsection 3.08.030) to include KIBSD budget Officer /Mayor/ Assembl April -May Assembly department review Manager/ Dept. heads April 30 Receipt of KIBSD budget (if KIBSD wants their budget School District incorporated into KIB budget, then by Aril 1 May 15 Introduction of Budget Ordinance Power Point presentation) Mana er May 15 Publication on hearing Clerk June 5 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 13 1 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. Budget requests by public and not - for - profit organizations must be returned to the Manager's Office no later than the third week in February. The Finance Officer prepares revenue forecast 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. The Manager presents his annual budget message during the first 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 Kodiak Island Borough uses the same basis for budgeting as accounting. The Comprehensive Annual Report (CAFR) shows the status of the borough's finances on the basis of "generally accepted accounting principles" (GAAP). In all r 14 1 ' cases this conforms to the way the borough prepares its budget. The CAFR shows fund expenditures and revenues on both a GAAP basis and a budget basis for comparison purposes. ' The budget of general government type funds (for example, the General Fund, Special Revenue Funds, and Debt Service Fund) is prepared on a modified accrual basis. This means that obligations of the borough are budgeted as expenditures when they are incurred, but revenues are recognized only when they are measurable and available. 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). 1 In all funds when goods and services are not received by the end of the year, the encumbrances lapse. u C' r I 1 15 b _r OUZINKI OOIAK KARLUK E BAYN HINteU! HAR AKHIOK n" s KODIAK o� ISLAND Q BOROUGH I " ARCTIC OCEAN BARROW N f) PRUDHOE BAY � � 1 KOTZESUE P NOME 0� NORTON SOUND FAIRBANKS lll ALASKA k, 'l<U l BEfHEL VALDEZ DILLINGHAMM GULF OF ALASKA BRISTOL BAY KODIAK ISLAND N NORTH PACIFIC OCEAN STRATEGIC PLAN STRATEGIC PLAN (FISCAL YEARS 2004 -2008) Adopted by the Kodiak Island Borough Assembly Resolution No. 2003 -01 KODIAK ISLAND BOROUGH 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 ACCESSIBILITY 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 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. CUSTOMERS We will operate in a customer - driven manner both internally and externally with a focus on treating all persons with courtesy and respect. We will strive to provide the highest quality service and ensure customer satisfaction. 17 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 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 and 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, 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 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 & Collection of Taxes, Land Use through Planning & 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. 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. 18 ' Table of Powers MANDATORY POWERS ' A. Education B. General Administration and Finance C. Tax Assessment and Collection D. Planning and Zoning E. F. G. H. I. ADOPTED POWERS Community Health (restricted area - wide)' Solid Waste Collection and Disposal (non area -wide, outside cities) Parks and Recreation (non area -wide, outside cities) Economic Development (non area -wide, outside cities) 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. iflt a. Maintain a vigilant and active lobbying effort to insure a strong voice for education at the state and !!� federal level. 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. 2. Continue to improve our positive and cooperative working relationship with the Kodiak Island Borough School District that maximizes efficiency and positive outcomes. a. Annually create and or review a memorandum of agreement for all in -kind projects and operations prior to budget preparations by both bodies, that stipulates service types, levels and agreed costs and financial plans. b. Create a long -term fiscal plan for budget purposes that deal with the contribution cap, SB 36, and the fiscal shortfalls projected for the State of Alaska in 2004 -2005, that minimizes negative impacts on school district operations and ensures solid educational programs and adequate maintenance and operations of school facilities. c. 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. a. Create and provide to the voters a General Obligation Bond ballot to take advantage of the current program for State participation on bonded debt for school facilities. b. Conduct a comprehensive needs and condition survey of all facilities. c. Generate a short (one year) and long term (five year) plan with funding and staffing needs to address any deficiencies for each facility. d. Focus on projects that are eligible for the State =s Major Maintenance bond program and insure that all eligible projects are submitted for consideration and scoring. e. Complete a memorandum of understanding between KIB and KIBSD that will minimize confusion, delineate responsibilities, and achieve cooperative completion of maintenance programs in a cost effective manner. ' This adopted power is restricted to Hospital and Mental Health services only. 19 B. 2. 4. 6. General Administration and Finance Goals and Objectives Create and maintain a long term fiscal plan that incorporates Kodiak Island Borough School District funding and maintenance costs for all Borough operations including enterprise funds that includes contingency plans for the potential of significant financial crisis at the State level in 2005 -2006 due to the depletion of the Constitutional Budget Reserve. a. Update the existing long -term fiscal plan to produce a reliable and comprehensive plan reflecting assumptions and fiscal projections under the current fiscal and political environment. 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. 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. 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. 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. 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 seek out and evaluate all options for providing superior services through consolidation, annexation, unification or other methods that may maximize efficiencies. 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. 20 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 School District and the Kodiak College with a goal of providing training and skills to address the needs of 'I the local economy. ry 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 insure physical plant needs are met and to coordinate with Kodiak College. i B. 2. 4. 6. General Administration and Finance Goals and Objectives Create and maintain a long term fiscal plan that incorporates Kodiak Island Borough School District funding and maintenance costs for all Borough operations including enterprise funds that includes contingency plans for the potential of significant financial crisis at the State level in 2005 -2006 due to the depletion of the Constitutional Budget Reserve. a. Update the existing long -term fiscal plan to produce a reliable and comprehensive plan reflecting assumptions and fiscal projections under the current fiscal and political environment. 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. 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. 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. 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. 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 seek out and evaluate all options for providing superior services through consolidation, annexation, unification or other methods that may maximize efficiencies. 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. 20 a. Evaluate all Borough land and conduct another land sale in the summer of 2003 of land that is appropriate for development and in demand. C. 2. Q 9 4. Tax Assessment and Collection Goals and Objectives 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 currents. 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. Implement a Geographic Information System (GIS) for the Kodiak Island Borough. a. Form a steering committee of GIS stakeholders that 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. Planning and Zoning Goals and Objectives 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. a. 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. b. 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. Create and implement a phased plan for updating the Comprehensive Plan with maximum public input and review and update and incorporation of the various area plans. a. Prioritize the updating of Village Community Plans in an expedited manner to ensure their plans are current and useful in their grant applications. b. Create a template for the processing of sub -area plans that are integrated with the Borough comprehensive plan to ensure a responsive, cost effective and active review process that facilitates citizens needs and excites and encourages citizen participation. c. To the extent possible, merge the Coastal Zone Management Plan with the Kodiak Island Borough Comprehensive Plan to maximize efficiencies and minimize confusion. Review existing zoning ordinances with a focus on minimizing the amount of zones where 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. 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. 21 E. Community Health Goals and Objectives 1. Create a long -term facilities plan for the Hospital and Mental Health Center. a. Working with the contractor and advisory groups create a long -term plan for health facility maintenance and construction to serve the needs and changing demographics of the community. 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. 1. a., seek to acquire sufficient land to serve any future construction needs. F. 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. Integrate the Solid Waste Rate Study into current operations. b. Identify future site for landfill and options for utilization of existing landfill after closeout. c. Review and implement any needed operational safety items at the landfill facility. d. Continue to take steps that will extend the existing landfill for as long as possible without going out of the current permitted area. e. 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 and minimizing solid waste production. G. Parks and Recreation Goals and Objectives 1. Evaluate and identify those lands under KIB ownership that would be appropriate for parks and recreation facilities. a. Study the Salonie Creek valley for potential expansion of recreational uses. b. Review urban areas for potential neighborhood pocket parks in areas of growth. c. Develop standards for playground equipment and related improvements to ensure the highest degree of utility at the lowest reasonable cost. 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 trails plan that is web ready and easily accessible for all citizens. H. 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 Kodiak Island Borough and ensures any environmental restrictions on fisheries are based on sound science and fairly reflects any socio- economic impacts on our region. a. Create and fund a fishery based economic enterprise fund to address the long term health of the local fishing industry and staff the fund with personnel that has the expertise and initiative to pursue a 22 � I comprehensive and effective program that leads to sustainable and economically productive fisheries that insure 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. 2. Actively pursue construction of the proposed Public Air Terminal Facility at the State Airport that includes a fiscal plan and a review of the feasibility of an Airport Authority. a. Insure the Public Air Terminal Facility is integrated with the State and Borough Transportation and Comprehensive Plans. 3. Continue to pursue high quality telecommunications access through fiber optics and Internet access to outlying areas. a. Insure that telecommunications are integrated into the long -term plans that allow for maximum M efficiencies and minimize redundancies through use of common easements and infrastructure. I. Animal Control Goals and Objectives ' 1. Continue to support a program that protects the public and animals in a cooperative manner with the public. a. Continue to have a Community Development Department monitor the contract to ensure conflicts are IL minimized and public health and safety is maximized. 23 FINANCIAL SUMMARIES 1 FUND STRUCTURE FINANCIAL SUMMARIES 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 six 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. 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. go Capital Protect Funds - Capital Projects Funds are used to account for financial resources to be used for acquisition or construction of major capital facilities and equipment. 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. 25 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: 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. OR � I 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. 27 Capital Construction ' 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. 27 2. 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. 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. 3. 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. 4. Investment Policies 28 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. 5. 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. 6. 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. 29 .. 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. 7. 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 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 2003 these are the levels of funding required to meet these needs. Basically this is unencumbered fund balance in the General Fund: Emergency Contingency $10,852,095 X 1% _ $108,520 Personnel Contingency 10,852,095 X .5% = 54,260 Litigation Contingency 10,852,095 X .25% = 27,130 Total $189,910 The unreserved fund balance the General Fund easily covers these amounts. We have also set up a fund for insurance deductibles and funded it with a $100,000 transfer from the General Fund in the first year. 30 I I Fund Summary 31 Budget Summary, All Funds ' Fiscal Year 2004 Special Debt Capital General Revenue Service Projects Enterprise Fund Funds Funds Funds Funds Total Estimated Beginning Balance $ 1,804,110 $40,657,329 $ 176,285 709,857 $ (3,857,284) $ 39,490,298 ' Revenues Property Taxes $7,128,390 621,540 7,749,930 Bed Tax 45,000 - - - 45,000 Non Ad Valorem Taxes $198,520 - 198,520 Payment in Lieu of Taxes $703,121 1,000 704,121 ' Severance Taxes $836,000 836,000 Penalties & Interest on Taxes $150,000 - 150,000 Rents & Royalties - 456,120 2,273,835 2,729,955 User Fees - 2,686,900 2,686,900 Land Sales Activites 209,225 209,225 Licenses & Permits $89,500 21,000 110,500 Federal Revenues $420,000 25,000 - 445,000 State Revenues $984,110 595,810 $717,850 2,464,390 40,000 4,802,160 Fines $800 800 Interest Earnings $127,570 1,117,900 4,000 45,000 51,060 1,345,530 Miscellaneous $45,800 71,650 - 1,271,590 1,389,040 Sale of Fixed Assets $5,000 5,000 Transfers In $850,000 1,217,450 1,147,240 350,000 - 3,564,690 Total Available Funds $ 13,342,921 $ 45,039,024 $ 2,045,375 $ 3,569,247 $ 2,466,101 $ 66,462,669 Expenditures General Government $2,082,810 - - - - 2,082,810 Education 8,054,730 1,146,230 449,112 9,650,072 Health & Welfare 280,900 729,630 1,225,952 133,000 2,369,482 Assessing 304,360 - - - 304,360 Community Development 531,551 531,551 Child Care Assistance 540,000 540,000 Welfare to Work 25,000 25,000 Resource Management 83,775 83,775 KIB Buildings 991,760 991,760 Coastal Management 25,940 25,940 Road Maintenance - 349,670 349,670 Public Safety /Fire Districts 137,230 823,450 960,680 Culture and Recreation 147,230 53,650 200,880 Economic Development - 45,000 - 45,000 Solid Waste - - 2,002,245 2,002,245 Capital Outlay - 1,011,094 - 1,011,094 Contingencies 851,450 851,450 Transfers Out 0 904,060 3,219,160 4,123,220 Total Use of Funds $ 11,538,811 $ 4,693,755 $ 1,875,860 $ 2,686,158 $ 5,354,405 $ 26,148,989 31 Kodiak Island Borough F.Y. 2004 Mill Rates TCA 1 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 2 252 254 260 261 262 TCA 1 9.25 2.00 City of Kodiak TCA 2 9.25 Woodland Acres Street Lighting Fire Protection Area No. 1 Service Area No. 1 1.00 TCA 3 9.25 KIB Airport Fire Protection Area TCA 4 9.25 Bayview Road Service Area Fire Protection Area No. 1 TCA 5 9.25 Entire Borough (excluding special assessment areas) TCA 6 9.25 Monashka Bay Road Service Area Fire Protection Area No. 1 'No Road Service Properties 9.25 TCA 7 9 25 Service Area No. 1 Fire Protection Area No. 1 'No Road Service Properties 9.25 TCA 71 9 25 Mission Lake Tide Gate Area `No Road Service Properties 9.25 TCA 72 9.25 Trinity Islands Street Lighting TCA 8 9.25 Fire Protection Area No. 1 TCA 9 9.25 Womens Bay Rd & Fire Service Area 'No Road Service Properties 9.25 1.00 1.50 000 1.25 1.00 1.50 1.50 1 00 1.00 1 .00 2.00 1.50 1.50 1.50 1.50 1 50 1.50 1 50 iE411111 11.25 11.75 10.50 11.75 9.25 12.25 10.75 11.75 10.75 1.00 12.75 1.00 11.75 ' 0.50 12.25 ' 10.75 1.25 12.50 1.25 10.50 32 TEN -YEAR ANALYSIS OF TAX RATE AND LEVY Fiscal Personal Property Real Property Total Mill Total Year Assessed Value Assessed Value Assessed Value Rate Tax Levy 1995 93,647,978 524,131 ,078 617,779,056 6.75 4,276,125 1996 101 ,835,076 538,627,500 640,462,576 6.75 4,341,250 1997 104,677,687 549,456,964 654,134,651 6.75 4,415,409 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 120,878,748 594,870,287 715,749,035 9.25 6,620,679 2001 121,849,192 626,906,351 748,755,543 9.25 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 Note: FY2004 is an estimated figure Tax Rate Per $1,000 Last Ten Years ae ar s s rr 10.00 9.00 8.00 7.00 6.00 u io 5.00 4.00 3.00 2.00 1.00 0.00 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Fiscal Year 33 Assessed Values - Last Ten Years 900,000,000 800,000,000 700,000,000 600,000,000 500,000,000 a d N N N 400,000,000 N Q 300, 000, 000 200, 000, 000 100, 000, 000 34 1995 1996 1997 1998 1999 2000 2001 2002 2003 Fiscal Year —+— Personal Property tReal Property tTotal Assessed Value GENERAL FUND GENERALFUND 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 12% of general fund revenues. The Borough instituted a severance tax in fiscal year 1992, which will account for 7% of Borough revenue in fiscal year 2004. GENERAL FUND REVENUES Property Tax Severance Tax Licenses & Permits Intergovernmental Revenues Interest Earnings Miscellaneous Revenues Use of Fund Balance Total Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2001 Actual 2002 Actual 2003 Budget 2003 Actual 2004 Budget $7,773,419 $8,642,053 $7,829,850 $8,102,113 $8,180,031 854,232 724,302 836,000 702,065 836,000 95,129 95,859 89,250 116,176 89,500 1,643,014 2,040,977 1,403,030 1,475,113 1,404,110 583,632 294,691 250,000 171,532 127,570 63,096 340,900 698,660 686,861 901,600 0 0 2,052,705 0 0 $11,012,522 $12,138,782 $13,159,495 $11,253,860 $11,538,811 General Fund Revenues Miscellaneous Revenues 8% Intei ' Intergovernmental RevE 12% Licenses & Permits 1% Severance Tax 7% -rty Tax 1 35 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 2004 is based on the assessed valuation as of January 1, 2003. That value is estimated to be $770,636,765. KIB has set the tax levy for real and personal property at 9.25 mills; this will generate estimated property tax revenue of $7,128,390 with 86% being from real property and 14% being from personal property. The current delinquency rate is 3%. For budget purposes, the amount of tax generated by one (1) mill is $770,637. 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 estimated revenue is $150,000. NON AD VALOREM TAXES an M 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. Revenue from this source is estimated at $190,000. r PAYMENT IN LIEU OF TAXES PILT — 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 PELT Act that includes population, receipt - sharing payments, and the amount of Federal land within an affected borough. The estimated amount for 2004 PELT revenue, $685,121, is based on what was received in fiscal year 2003. 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 9.25 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 2002 and 2003, the estimated revenue for 2004 is $6,000. Timber Severance Tax. The estimated value for timber is $50,000. This is an increase over last year's budgeted amount of $30,000. 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 appears that the decline has slowed and we overestimated the decrease in revenue last year. With this year's budget we are attempting to bring the budget amount in line with the actual trend. r. 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 2004 at $780,000. 36 Overall the 2004 severance tax is estimated to be $836,000. For budget purposes, the amount of tax generated by one (1) mill is $90,378. Severance Taxes 1.400.000 1,200.000 1,000.000 800,000 800.000 400,000 200.000 1984 19e5 1nn8 1997 18% lane 2000 2001 2002 2003 --*—FM tMinhq — * —TW6w —M—ToW 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 amounted to $88,646 or 77% in FY 2003. Much of this 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 averagesat $68,000 for fiscal year 2004. The total budgeted amount for licenses and permits is $89,500. 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. To determine the amount of revenue that we should receive from Fish and Wildlife through the Department of Interior, we anticipated that the fees collected by Fish and Wildlife would remain stable. With this knowledge the budgeted amount is the same as last year, $420,000. State Revenues 37 State Revenue Sharing. AS 29.60.010- 29.60.030: State Equalization of Tax Resources for Municipal Services. This program has two major elements, Municipal Tax Equalization and State Aid for Miscellaneous Services. The equalization entitlement computation is based on population, the relative ability to generate revenue, and local tax burden of the taxing entity. The state aid provides money for public roads, hospitals, health clinics and volunteer fire departments. This second element's revenue for public roads and fire departments is budgeted in our special revenue funds. Based on the State's indication that this program will decline, we are estimating the FY2004 General Fund revenue to be $5,850. Safe Communities. AS 29.60.350- 29.60.370 and 43.20.016: Distribution of Gross Business Receipt Taxes. Monies in the Municipal Assistance Fund are generated by the corporate income tax, which is collected by the state. If the appropriation is insufficient for distribution of the full base amount to each Alaskan municipality, the amount available will be prorated based on the amounts received during FY78. If the amount appropriated exceeds the base amount to be distributed, the excess shall be allocated to each municipality on the basis of the net cities population. To calculate this number, the population of the municipality minus the population of cities within the municipality equals the net cities population. The current net cities population of the KIB for municipal assistance purposes is 6,666. The total official census of the Borough is 13,913 adopted by the Alaska Department of Community and Regional Affairs for purposes of entitlement computation for FY2004. Our projection for FY2004 is $64,260, a significant reduction due to expected State budget cuts. 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 Floating 5% Salmon Cannery 4.5% Shore -based 3% Develoying Floating 3% Shore -based 1% 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 years revenues and the factors that are known and budget accordingly. This method estimated 2004 fish tax revenue to be $800,000. 38 1.500 0 Fish Tax Revenue Sharing 1,000 c 500 1995 1998 1987 1888 109¢IscaI Y"9000 2001 2002 2003 2004 INTEREST EARNINGS Interest Earned on Investments. KIB Code of Ordinances sections 3.04.01 through 3.04.030 establishes 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 2004 the General Fund is expected to have approximately $7,500,000 held in investments. With an expected return of rate between 1.5% and 2 %, we are estimating interest revenue to be $127,570. Interest Earnings 700,000 _ -- - -- -- _ — -- — - - - -- -- 800,000 500,000 -_- -- 400,000 300,000 - _ _.- - - - -- - — 200.000 -- - -_ - - - - - 100,000 0 1995 1998 1987 1998 1999 2000 2001 2002 2003 2004 39 1 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. Our largest source of revenue in this category is from the sale of copies, which typically brings in approximately $18,000 per year. For fiscal year 2004 we are estimating $24,000. Another large contributor to the miscellaneous revenue is the passport fee. KIB began ' processing passports in Fiscal year 1999. Prior to that the State of Alaska processed them. The revenue generated in fiscal years 2000 through 2002averaged $6,600. In fiscal year 2003 revenues climbed to $12,000. We budgeted conservatively, closer to the average, for 2004 at $7,000. Overall the estimated revenue from these sources is $45,800. ' 40 FUND BALANCE General Fund Balance. It is the goal of the KIB to maintain a General Fund balance of 1 to 2 million dollars. For fiscal year 2004 we do not anticipate a use fund balance. Last fiscal year, 2003, the Borough budgeted $2,052,705 use of fund balance. The following charts show the Fund Balance for the last ten years and the changes that took place. . I Fund BeMnw L.ut Ten Y"m with FY2003 Prohobd A"u Jud9mont Paid In FY 2003 3.500.000 3.000.000 2.500.000 2.000.000 1.500.000 1.000.000 500.000 0 1995 1998 1997 CHANGES IN GENERAL FUND BALANCE LAST TEN YEARS L(M10.W0 1300.000 1 047 2 1.000.000 300,000 0 -300.000 - 1.000.000 - 1300.000 - 2.000.WD 1995 (450.605) 1479.7381 1785, 746, (983260) 1996 1997 1998 1999 2000 2001 2002 2003 2004 41 1998 1999 2000 2001 2002 2003 2004 GENERAL FUND REVENUE SUMMARY 42 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ' ACTUAL ACTUAL BUDGET ACTUAL BUDGET Property Tax Real Property $6,104,688 $6,195,391 $6,167,767 $6,265,740 $6,390,730 Allowance for Disabled Vets (13,481) (18,990) (15,270) (29,210) (25,94 , Allowance for Farm Use (11,054) (10,137) (10,030) (10,137) (10,140; Allowance for Seniors (271,439) (296,579) (247,350) (296,394) (252,470 Personal Property 1,123,145 1,069,251 1,074,090 1,063,617 1,026,210 TOTAL PROPERTY TAXES $6,931,859 $6,938,936 $6,969,207 $6,993,616 $7,128,390 Non Ad Valorem Taxes Boat Tax - over 5 tons $7,830 $7,710 $7,890 $7,979 $8,520) Motor Vehicle Tax 178,783 194,793 180,000 193,799 190,000 TOTAL NON AD VALOREM TAXES $186,613 $202,503 $187,890 $201,778 $198,520 Payment in Lieu of Taxes I PILOT - Federal $473,737 $1,337,974 $520,000 $786,014 $685,121 PILOT - Kodiak Island Housing 18,731 18,289 18,000 23,919 18,000 TOTAL PAYMENT IN LIEU OF TAXES $492,468 $1,356,263 $538,000 $809,933 $703,121 Severance Taxes Fish $791,234 $670,851 $800,000 $639,487 $780,000 Mining 6,979 7,444 6,000 4,988 6,000 Logging 56,019 46,007 30,000 57,590 50,000 TOTAL SEVERANCE TAXES $854,232 $724,302 $836,000 $702,065 $836,000 Penalties and Interest Tax Penalties and Interest $162,478 $144,351 $150,000 $131,054 $150,000 TOTAL PENALTIES & INTEREST TAX $162,478 $144,351 $150,000 $131,054 $150,000 Licenses and Permits Building Permits $66,117 $68,126 $68,000 $88,646 $68,000 Subdivision 4,965 7,030 4,000 6,000 4,000 Conditional Use Permit 2,200 800 2,000 1,000 2,000 Zoning Compliance 3,380 6,792 4,000 3,140 4,000 Exception 0 200 500 0 500 Variance Fee 1,000 2,000 500 200 500 Zoning Change Fee 2,600 400 500 1,400 500 Electric Permit 7,175 5,330 5,000 6,761 5,OOC Plumbing Permit 4,512 4,581 3,000 4,212 3,000 Planning & Zoning (P &Z) Review Fee 600 600 250 150 500 Special Land Use 20 0 0 0 C Dog License 2,560 0 1,500 4,667 1,50C TOTAL LICENSES AND PERMITS $95,129 $95,859 $89,250 $116,176 $89,500 INTERGOVERNMENTAL REVENUES Federal Shared Revenue National Wildlife Refuge $399,160 $420,733 $420,000 $394,064 $420,000 National Forest Fund 31 92 30 67 C TOTAL FEDERAL SHARED REVENUE $399,191 $420,825 $420,030 $394,131 $420,OOC 42 1 Fines Animal Control Zoning Violations TOTAL FINES Interest Interest Earnings Gain /loss TOTALINTEREST Miscellaneous - Classified Jury Duty Sale of Copies Sale of Maps Sale of Computer Data Fee - Dishonored Checks Other Legal Fee Reimbursement Passport Fees TOTAL MISC. CLASSIFIED Use of Fund Balance Operating Transfers In Land Sale Building and Grounds Debt Service - Other 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. 2001 F.Y. 2002 F.Y. 2003 State Shared Revenues F.Y. 2004 State Revenue Sharing ACTUAL Municipal Assistance ACTUAL BUDGET $112,492 Raw Fish Tax $110,000 Raw Fish Tax - Off Shore $55,850 Telephone and Electric 119,829 TOTAL STATE SHARED REVENUES If TOTAL INTERGOVERNMENTAL Fines Animal Control Zoning Violations TOTAL FINES Interest Interest Earnings Gain /loss TOTALINTEREST Miscellaneous - Classified Jury Duty Sale of Copies Sale of Maps Sale of Computer Data Fee - Dishonored Checks Other Legal Fee Reimbursement Passport Fees TOTAL MISC. CLASSIFIED Use of Fund Balance Operating Transfers In Land Sale Building and Grounds Debt Service - Other 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. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET $112,492 $109,221 $110,000 $111,700 $55,850 110,760 119,829 120,000 128,514 64,260 948,364 1,287,344 718,380 796,373 800,000 58,583 76,904 60,000 44,395 50,000 13,623 26,854 13,000 26,202 14,000 $1,243,823 $1,620,152 $1,021,380 $1,107,184 $984,110 $1,643,014 $2,040,977 $1,441,410 $1,501,315 $1,404,110 $75 $290 $500 $455 $500 0 150 300 0 300 $75 $440 $800 $455 $800 $583,632 $294,691 $250,000 $171,532 $127,570 0 0 0 0 0 $583,632 $294,691 $250,000 $171,532 $127,570 $100 $138 $100 $38 $100 18,184 17,112 20,000 15,111 24,000 659 1,114 660 1,925 600 1,750 1,112 2,500 1,600 2,000 55 25 100 50 100 17,129 108,690 10,000 6,236 10,000 0 4,681 2,500 0 2,000 6,990 6,525 7,000 12,135 7,000 $44,867 $139,397 $42,860 $37,095 $45,800 $0 $0 $2,052,705 $0 $0 $0 $0 $650,000 $650,000 $50,000 0 0 0 0 200,000 18,154 0 0 0 0 0 0 350,000 0 600,000 0 200,000 0 0 0 $18,154 $200,000 $1,000,000 $650,000 $850,000 $0 $1,063 $5,000 $0 $5,000 $0 $1,063 $5,000 $0 $5,000 11,012,522 $12,138,782 $13,563,122 $11,315,019 $11,538,81 1 43 SUMMARY OF GENERAL FUND EXPENDITURES BY DEPARTMENT GENERAL FUND EXPENDITURES BY DEPARTMENT F.Y. 2001 F.Y. 2002 ACTUAL ACTUAL F.Y. 2003 F.Y. 2003 BUDGET ACTUAL F.Y. 2004 BUDGET EXPENDITURES Dept. 100 Borough Assembly $137,001 $130,302 $156,250 $150,043 $158,210 Dept. 105 Borough Manager 159,273 207,262 200,960 187,472 218,870 Dept. 110 Borough Clerk 263,192 261,763 284,938 279,180 292,968 Dept. 115 Borough Attorney 435,338 196,185 2,584,200 2,519,767 188,200 Dept. 120 Finance Department 389,584 419,344 479,748 419,078 520,700 Dept. 125 Mgmt Information Services 293,892 515,256 399,968 300,302 352,510 Dept. 130 Assessing 288,959 176,077 247,280 219,789 304,360 Dept. 135 Engineering /Facilities 85,310 102,673 96,635 86,791 72,080 Dept. 140 Community Development 377,375 373,066 433,806 322,851 431,910 Dept. 142 Building Inspection 129,908 128,067 130,000 140,252 131,730 Dept. 160 Economic Development 38,000 68,653 124,100 58,245 99,641 Dept. 165 General Administration 239,410 272,429 229,660 217,122 279,272 Dept. 175 Emergency Preparedness 3,002 2,422 5,500 2,369 5,500 Dept. 180 Education Support 6,824,276 7,362,720 7,618,320 7,621,250 8,054,730 Dept. 185 Health and Sanitation 594,072 280,847 286,095 286,095 280,900 Dept. 190 Culture and Recreation 153,481 147,227 152,282 152,282 147,230 Dept. 195 Transfers 323,296 55,034 133,380 111,066 0 TOTAL EXPENDITURES $10,735,368 $10,699,327 $13,563,122 $13,073,954 $11,538,811 44 General Fund Expenditures by Function QM dia .ao ate wa a.o�ea, Newt etm wenre R Nemtq Te AI15 Gpntunily Devebgneni • ` f Octerai OOVemtttenl NOec Salary Education support is an area that has been experiencing steady growth in the General Fund budget and currently accounts for over two thirds of the expenditures projected for FY 2004. Education support has grown from nearly $3.3 million in fiscal year 1995 to a budgeted $8 million in fiscal year 2004, a 243% increase over ten years. GENERAL FUND EXPENDITURES BY FUNCTION 45 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2001 Actual 2002 Actual 2003 Budget 2003 Actual 2004 Budget General Government $1,642,819 $1,225,648 $3,686,023 $3,551,441 $1,209,600 Public Safety 132,910 130,489 135,500 142,621 137,230 Education 6,824,276 7,362,720 7,618,320 7,621,250 8,054,730 Culture and Recreation 153,481 147,227 152,282 152,282 147,230 Health and Welfare 594,072 280,847 286,095 286,095 280,900 Assessing 288,959 176,077 247,280 219,789 304,360 Finance /MIS 683,476 934,600 879,716 719,380 873,210 Community Development 415,375 441,719 557,906 381,096 531,551 Total $10,735,368 $10,699,327 $13,563,122 $13,073,954 $11,538,811 45 PROGRAM BUDGET SUMMARY BOROUGH ASSEMBLY 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 2003 -2004 • 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. 46 u w BOROUGH ASSEMBLY F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL EXPENDITURES PROJECTED Regular Assembly Meetings 22 21 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 6 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Personnel Services $20,800 $21,600 $21,600 $21,600 $21,600 Fringe Benefits 2,250 1,737 1,820 1,837 1,780 Political Lobbyist 62,000 62,000 60,000 62,000 62,000 Support Goods & Services 51,951 44,965 72,830 64,606 72,830 TOTAL $137,001 $130,302 $156,250 $150,043 $158,210 PERFORMANCE INDICATORS 47 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL ESTIMATED PROJECTED Regular Assembly Meetings 22 21 20 20 Special Meetings 8 3 6 6 Joint Work Sessions 7 3 3 3 Work Sessions 22 20 27 27 SWAMC Conference Attendees 2 4 4 4 AML Conference Attendees 11 3 3 3 Ordinances 28 14 18 18 Resolutions 46 50 30 30 Contracts 38 44 37 37 Other Action Items 81 45 49 49 47 PROGRAM BUDGET SUMMARY MANAGER'S OFFICE Program Description The Manager is appointed by the Assembly of the Kodiak Island Borough. 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 2003 -2004 • 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 budget changes. 48 MANAGER'S OFFICE EXPENDITURES 49 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Personnel Services $111,806 $141,915 $148,020 $137,015 $162,100 Fringe Benefits 23,302 37,643 42,390 39,355 43,330 Support Goods & Services 29,165 32,704 35,550 31,102 38,440 Capital Outlay 0 0 0 0 0 Allocated to other funds (5,000) (5,000) (25,000) (20,000) (25,000) TOTAL $159,273 $207,262 $200,960 $187,472 $218,870 PERSONNEL Number of Employees Position: F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 Borough Manager 1 1 1 1 Administrative Assistant 0 1 1 1 Secretary III 1 0 0 0 TOTAL 2 2 2 2 49 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 2003 -2004 • 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 50 CLERK'S OFFICE EXPENDITURES F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Personnel Services $132,604 $138,199 $149,490 $149,737 $152,940 Fringe Benefits 32,346 27,341 38,418 38,771 33,588 Support Goods & Services 98,242 96,223 97,030 90,672 106,440 TOTAL $263,192 $261,763 $284,938 $279,180 $292,968 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 Initiative Petition Absentee Voters - municipal Registered Voters - municipal Code Supplements Archival Records Destroyed Archival Records Added Notary Passports filed PERSONNEL Number of Employees F.Y. 2001 _ 1.00 1.00 F.Y. 2002 F.Y. 2003 F.Y. 2004 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 no 3.00 3.00 PERFORMANCE INDICATORS F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL ESTIMATED PROJECTED 28 14 18 180 46 50 30 30 119 180 172 172 22 21 20 20 8 3 6 6 7 3 3 3 17 20 27 27 6 0 1 1 26 18 19 19 25 23 25 25 8 11 6 6 9 6 7 7 70 53 53 53 4 3 2 1 1 0 2 0 118 386 142 142 10,311 10,085 10099 10099 4 4 3 4 57 cu.ft. 75 cu.ft. 75 cu.ft. 75 cu.ft. 48 cu.ft. 99 cu.ft. 100 cu.ft. 100 cu.ft. 100 137 103 103 457 471 445 445 51 PROGRAM BUDGET SUMMARY LEGAL SERVICES 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 2003 -2004 • 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 52 LEGAL SERVICES EXPENDITURES F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Legal Fees $411,684 $175,188 $2,550,000 $2,497,240 $150,000 Support Goods & Services 23,654 20,997 34,200 22,527 38,200 TOTAL $435,338 $196,185 $2,584,200 $2,519,767 $188,200 I t 53 PROGRAM BUDGET SUMMARY 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 pages 64 and 65. 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 2003 -2004 • To maintain the Certificate of Achievement Award for Financial Reporting for fiscal year 2003. • To maintain the award for a Distinguished Budgetary Presentation by the Government Finance Officers Association. • To continue to have the Short Report (monthly financial statements) distributed within seven working days of the end of the month. • To have the Comprehensive Annual Financial Report (CAFR) distributed 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 2003 budget. We also received the award in fiscal years 1990 through 2002. ❖ Upon submittal of our fiscal year 2002 annual report, we received GFOA's Certificate of Achievement Award. We also received Certificate of Achievement awards for fiscal years 1988 through 2002. We are hoping to receive one for our fiscal year 2003 report. ❖ We have maintained our high rate of tax collections. At this time, 99.7% of FY 2002 and 98.6% of FY 2003 taxes have been collected. 54 FINANCE EXPENDITURES PERSONNEL Number of Employees Position: F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 1 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Personnel Services $353,568 $352,294 $376,850 $324,601 $377,230 Fringe Benefits 92,120 89,238 97,468 98,554 113,520 Support Goods & Services 73,636 73,287 76,650 67,143 101,950 Capital Outlay 0 0 0 (71,220) 0 Allocated to other funds (129,740) (95,475) (71 ,220) 0 (72,000) TOTAL $389,584 $419,344 $47 9,748 $419,078 $520,700 PERSONNEL Number of Employees Position: F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 Finance Director 1 1 1 1 Accountant 2 2 2 2 Accounting Technician 2 2 2 2 Clerk /Cashier 1 1 1 1 Secretary III 1 1 1 1 TOTAL 7 7 7 7 PERFORMANCE INDICATORS 11 55 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL ESTIMATED PROJECTED Monthly Financials 7 working days 6 working days 5 working days 7 working days Annual Report (CAFR) January 31 26 -Dec November 30 November 30 Personnel Turnover 1 2 2 0 Total Tax Levy $7,502,556 $7,554,226 $7,662,434 $7,767,768 Current Tax Collections $7,276,075 $7,401,663 $7,509,185 $7,640,000 Percent of Current Taxes Collected 97% 98% 98% 98% Outstanding Delinquent Taxes $342,021 $341,345 $307,005 $320,000 Number of Residential Garbage Accounts 424 434 445 450 Certificate of Achievement Yes Yes Yes Yes Distinguished Budgetary Presentation Yes Yes Yes Yes Commercial Garbage Accounts 340 314 310 320 11 55 PROGRAM BUDGET SUMMARY FINANCENANAGEMENT INFORMATION SERVICES Program Description Provide data processing 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 specified periodic basis; oversee 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. 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 2003 -2004 • Increase user satisfaction with use of the Borough's local area network (LAN). • Reduce overall microcomputer costs by standardizing resources and procedures. • Increase user's satisfaction with daily operations of LAN and personal computers (PC) through training that would increase the working knowledge of PC's and the use of the LAN. • Prepare for GASB 34 software changes • Replace one third of the Borough's PC's. • Assist in the design and implementation of a GIS system. Significant Budget Changes No significant budget changes. 56 FINANCE /MANAGEMENT INFORMATION SERVICES EXPENDITURES PERFORMANCE INDICATORS F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL ACTUAL BUDGET ACTUAL BUDGET Personnel Services $186,812 $163,592 $189,100 $175,343 $198,980 Fringe Benefits 49,925 42,964 52,678 44,081 53,690 Contracted Services 0 14,729 0 0 0 Support Goods & Services 203,208 217,996 257,690 201,767 241,840 Capital Outlay 10,092 214,625 42,500 17,761 0 Allocated to other funds (156,145) (138,650) (142,000) (138,650) (142,000) TOTAL $293,892 $515,256 $399,968 $300,302 $352,510 140 Phone system users supported PERSONNEL 800 800 800 Number of Employees Position: F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 Senior System 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 PC Technician 1 1.00 0.00 0.00 0.00 TOTAL 4.00 3.00 3.00 3.00 PERFORMANCE INDICATORS 57 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL ESTIMATED PROJECTED Devices 193 193 200 200 Network users supported 375 3050 3050 3050 Communications Lines 63 63 65 65 Local Area Networks 12 11 11 11 Token Ring Connection 60 0 0 0 Wide Area Ethernet Connections 8 8 8 8 Work Requests 2,400 n/a n/a n/a Network servers 28 33 54 54 AS400 users supported 135 135 140 140 Phone system users supported 800 800 800 800 57 PROGRAM BUDGET SUMMARY ASSESSING Program Description The primary function of this department is the annual valuation and assessment of nearly 5,000 real and over 2,000 personal property accounts at their full and true value. The real property function requires reassessment programs phased over a three -year period, 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, compilation of data in support of the Borough administration and processing of appeals, along with compliance and filing activities for the severance tax. This department also administers the E -911 address system, which requires a detailed inventory of property addresses. Additionally, the department has taken responsibility for land sales and property acquisition support with the loss of the Resource Manager position in FY2000. 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 2003 -2004 • Complete the implementation of the Kb software, which includes getting the digital imaging system online and completion of the loading of property data. • Integrate the Kb database with the GIS /mapping to enable that system to become operational. • 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 ❖ Completed another phase of the reappraisal of all borough property. ❖ Focused on the entry and valuation of property using the new computer system, which is approximately 40% complete. ❖ Completed many activities that were historically completed by the Resource Manager. ❖ Technical and appraisal support for a variety of other Borough projects. 58 ASSESSING Personnel Services Fringe Benefits Support Goods & Services Capital Outlay Allocated to Projects TOTAL Position: Assessor Appraiser Assessment Clerk I Assessment Clerk II TOTAL ASSESSED VALUE Real Property (net after all exemptions Personal Property Total Assessed Value EXPENDITURES F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET $201,768 $141,668 $178,820 $150,803 $198,410 50,120 28,640 39,410 43,461 77,160 37,071 42,769 42,050 40,025 41,790 0 0 0 0 0 0 (37,000) (13,000) (14,500) (13,000) $288,959 $176,077 $247,280 $219,789 $304,360 PERSONNEL Number of Employees F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 4 4 4 PERFORMANCE INDICATORS F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL ESTIMATED PROJECTED $626,906,351 $635,931,458 $642,995,612 $674,532,897 121,849,192 116,117,602 117,456,245 133,758,878 $748,755,543 $752,049,060 $760,451,857 $808,291,775 CHANGE IN VALUE FROM PRIOR YEAR Real Property Personal Property Total Value Increase From Prior Year NUMBER OF PARCELS Number of Personal Property Accounts ASSESSED VALUE PER EMPLOYEE $33,387,007 $9,025,107 $7,064,154 1,350,943 (5,731,590) 1,338,643 $34,737,950 $3,293,517 $8,402,797 $31,537,285 5,206 5,224 5,276 5,480 1,683 1,734 1,840 1,920 $187,188,886 $188,012,265 $188,149,491 $192,409,310 I 1 PROGRAM BUDGET SUMMARY ENGINEERING AND FACILITIES Program Description The Engineering and Facilities Department is responsible for the safe operation and maintenance of all Borough owned grounds and facilities; coordination 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. Goal To design, construct, operate, maintain, and repair all the Kodiak Island Borough owned facilities and grounds in a safe responsible manner and to manage the programs that have been entrusted to the Engineering and Facilities Department to administer to maximize the benefits obtained for the costs ' expended. To support the number of Department administered programs such as Buildings and Grounds, Parks and Recreation, PKIMC hospital, Kodiak Fisheries Research Center, and the Borough Baler/Landfill. Objectives for 2003 -2004 • Complete PKIMC parking and access project • Extend the life of the existing landfill footprint by encouraging recycling • Paint Main Elementary School • Paint Port Lions School • Continue to perform annual roof maintenance to school buildings • Pave Woodland Acres area and Trinity Islands Subdivision area public roads Significant Budget Changes No significant budget changes. 60 ENGINEERING AND FACILITIES EXPENDITURES PERSONNEL Number of Employees Position: F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 1 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Personnel Services $55,254 $67,464 $108,460 $57,370 $111,000 Fringe Benefits 13,442 16,107 41,495 16,206 32,130 Contracted Services 751 4,460 3,200 545 3,200 Support Goods & Services 55,863 54,642 63,480 52,670 45,750 Allocated to Projects (40,000) (40,000) (120,000) (40,000) (120,000) TOTAL $85,310 $102,673 $96,6 $86,791 $72,080 PERSONNEL Number of Employees Position: F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 Engineering and Facilities Director 1 1 1 1 Project Manager 0 1 1 1 Secretary III 1 1 1 1 TOTAL 2 3 3 3 ii71 PROGRAM BUDGET SUMMARY COMMUNITY DEVELOPMENT DEPARTMENT 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 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 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 2003 -2004 • Begin the revision process for the Larsen Bay and Chiniak Comprehensive Plans • Complete the revision and update of the Womens Bay Community Plan • Complete the update of the Emergency Operations Plan for all cities within the Borough • Initiate the update of the Kodiak Island Borough Coastal Management Plan • Initiate the update of the Overall Kodiak Island Borough Comprehensive Plan • Continue work on the Kodiak Road System Trail Plan • Continue implementation of the Kodiak Island Borough zoning enforcement policy to correct zoning violations, including the use of legal action when necessary • Provide Borough residents and decision makers with timely and quality information • In cooperation with Assessing, MIS and other Borough departments, complete a GIS needs assessment and continue the transition from automated mapping services to a Geographical Information System (GIS) Significant Budget Changes This department has requested an Assistant Planner position, and reclassification of the Secretary III position to a Secretary I, in order to maintain the level of service in its core duties and responsibilities. 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. ❖ The department processed 23 abbreviated and preliminary plats; and reviewed 20 final plats that were forwarded to the Manager's Office for final processing and filing. ❖ The department prepared and processed 48 public hearing cases heard before the KIB planning and Zoning Commission, and average of four (4) public hearing cases per month. ❖ The department initiated the Womens Bay planning process with the completion of a draft goals and objectives document COMMUNITY DEVELOPMENT EXPENDITURES PERSONNEL Number of Employees Position: F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 1 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Personnel Services $270 $283,183 $299,750 $243,413 $305,640 Fringe Benefits 67,620 72,364 74,576 64,006 84,510 Professional Services 0 0 30,000 10,674 10,000 Support Goods & Services 54,754 53,519 62,480 50,308 66,310 Allocated to Projects (15,851) (36,000) (33,000) (45,550) (34,550) TOTAL $377,375 $373,066 $433,806 $322,851 $431,910 PERSONNEL Number of Employees Position: F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 Community Development Director 1 1 1 1 Associate Planner /L.R. Planning 1 1 1 1 Associate Planner /Enforcement 0 1 1 1 Assistant Planner 1 0 0 0 Draftsman/Technician 1 1 1 1 Secretary III 1 1 1 1 TOTAL 5 5 5 5 PERFORMANCE INDICATORS F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL ESTIMATED PROJECTED Zoning Compliance Permits Issued 160 161 145 150 Planning & Zoning Commission Cases 60 55 41 45 Zoning Violations - Complaints Responded To 30 41 21 30 Federal & State Project Reviews 70 50 31 30 Junk Cars Removed by the Junk Removal Program 320 192 145 150 Other Junk Removed by the Junk Removal Program 10 tons 8 tons 9 tons 9 tons Linear feet of maps produced 6,000 ft 6,500 ft 7,500 ft 9,500 ft PROGRAM BUDGET SUMMARY BUILDING INSPECTION 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 the International Conference of Building Officials (ICBO) 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 2003 -2004 • 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 Conference of Building Officials. • To complete commercial plan reviews and permit issuance within one month, and to complete residential plan reviews and permit issuance within one week of submittal. • To provide information to elected and appointed officials, and the public, about the most current editions of the ICBO building, mechanical, electrical, and plumbing codes. • To maintain delegated plan review responsibility from the State of Alaska, Department of Public Safety, Division of Fire Prevention. 0 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. 64 BUILDING INSPECTION Contracted Services Support Goods & Services TOTAL Commercial Building Permits Residential Building Permits Borough Plumbing Permits Borough Electrical Permits 65 EXPENDITURES F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET $124,606 $122,377 $124,500 $134,615 $124,50( 5,302 5,690 5,500 5,637 7,23( $129,908 $128,067 $130,000 $140,252 $131,73( PERFORMANCE INDICATORS F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL ESTIMATED PROJECTED 33 29 30 32 198 221 200 210 80 84 78 80 120 121 120 124 65 PROGRAM BUDGET SUMMARY ECONOMIC DEVELOPMENT 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 2003 - 2004 • 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 The budget for Professional Services includes funds for a lobbyist to include travel and per diem to Washington DC. ..� ECONOMIC DEVELOPMENT EXPENDITURES 67 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Professional Services 5,000 28,500 61,100 14,002 36,641 Chamber of Commerce 33,000 40,153 33,000 33,000 33,000 Support Goods & Services 0 0 30,000 11,243 30,000 TOTAL $38,000 $68,653 $124,100 $58,245 $99,641 67 PROGRAM BUDGET SUMMARY 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 2003 -2004 • 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 The Fringe Benefits line item has been decreased to zero since we have fulfilled our obligation to the State of Alaska for our participation in the Retirement Incentive Program. We have budgeted the audit expense to be higher than last year due to staff turnover at the accountant level. WE GENERAL ADMINISTRATION EXPENDITURES .' F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Personnel Services $0 $0 $0 $0 $0 Fringe Benefits 45,428 77,746 0 105 0 Professional Services 2,000 5,250 1,000 0 1,000 Audit Expense 115,408 75,808 120,000 80,118 120,000 Support Goods & Services 76,574 113,625 108,660 136,899 158,272 TOTAL $239,410 $272,429 $229,660 $217,122 $279,272 .' t 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 2003 - 2004 • 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. I I I I I I I I 7 0 �1 EMERGENCY PREPAREDNESS EXPENDITURES F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Support Goods & Services $3,002 $2,422 $5,500 $2,369 $5,500 TOTAL $3,002 $2,422 $5,500 $2,369 $5,500 PERFORMANCE INDICATORS F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL ESTIMATED PROJECTED Number of Tsunami Sirens 18 18 18 18 71 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 2003 -2004 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 will be provided. Significant Budget Changes No significant budget changes. Contributions to the KISSD stated as mill Rate Equivalents 12.00 10.00 8A0 W 6.00 W O 4.00 2.00 0.00 9.45 9.39 8.84 8.88 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 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. 72 SCHOOL DISTRICT SUPPORT EXPENDITURES F.Y. 2002 F.Y. 2001 F.Y. 2003 ACTUAL Professional Services $507,990 Audit Expense 49,339 Support Goods & Services 36,917 Operating Transfers $520,000 Building & Grounds 24,000 KI BSD 5,966,440 KIBSD contingency 65,470 Debt Service 239,590 EXPENDITURES F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL BUDGET ACTUAL BUDGET $517,085 $520,000 $516,590 $520,000 31,924 37,000 34,893 37,000 38,421 65,470 73,917 72,000 50,670 50,670 50,670 50,670 6,331,440 6,626,440 6,626,440 6,626,440 400,000 393,180 318,740 318,740 348,620 Borough Contributions per Student 3,500 3,000 2,500 c v a m 2,000 a v a 1.500 c 0 w 1,000 500 73 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 PROGRAM BUDGET SUMMARY 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 2003 -2004 • 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. 74 HEALTH & SANITATION Mental Health Center Animal Control Council on Alcoholism State Health Services - Village State Health Services -KANA Women's Resource & Crisis Center American Red Cross Kodiak Baptist Mission Small World Day Care Center Special Olympics Health Center Support Senior Citizen Support Kodiak Respite Care /Hope Resrc KANA Family Center Salvation Army Brother Francis Shelter Kodiak Youth Services Network Kodiak State Fair Board Kodiak Area Transit Threshold Services Unallocated Funds Operating Transfers: Debt Service TOTAL EXPENDITURES EXPENDITURES F.Y. 2001 F.Y. 2002 ACTUAL ACTUAL $4,788 $4,753 52,000 60,000 28,816 28,756 6,385 8,883 2,554 2,535 36,807 38,684 1,750 2,500 17,446 33,268 0 8,000 7,000 7,000 3,672 3,444 24,704 24,704 5,000 5,000 0 0 7,500 8,500 25,000 29,820 0 0 0 15,000 0 0 0 0 0 0 F.Y. 2003 F.Y. 2003 BUDGET ACTUAL $5,195 $4,689 60,000 60,000 21,466 28,657 0 7,506 0 2,501 36,328 39,767 2,500 2,500 30,000 39,380 0 0 7,000 7,000 0 27,720 37,720 5,000 5,000 12,000 0 9,060 9,060 32,000 32,000 5,000 0 0 0 10,000 0 10,315 10,315 12,511 0 370,650 0 0 $594,072 $280,847 $286,095 F.Y. 2004 ni innr_T �v 60,000 22,110 0 0 41,248 2,500 30,000 0 7,000 0 27,720 5,000 0 9,060 34,584 0 0 10,000 10,315 21,363 0 0 $286,095 $280,900 11 75 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 2003 -2004 • 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. 76 EDUCATION, CULTURE & RECREATION EXPENDITURES 11 77 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET KMXT Public Radio $7,500 $7,609 $7,500 $7,500 $7,500 Historical Society 4,968 4,500 4,500 4,500 4,500 Summer Basketball 5,000 0 0 0 0 Kodiak Island Sportsmen Assn 0 2,500 5,400 5,400 5,400 Kodiak Arts Council 15,000 15,000 15,000 15,000 15,000 Village Libraries 15,000 15,000 15,000 15,000 15,000 Chiniak Public Library 3,000 3,000 3,000 3,000 3,000 City of Kodiak Library 3,000 3,000 3,000 3,000 3,000 Head Start 7,583 7,583 8,135 8,135 8,135 Kodiak College 60,000 60,000 60,000 60,000 60,000 Kodiak Little League 5,000 5,600 5,600 5,600 5,600 Santa to the Villages 2,300 2,300 0 0 0 KANA Youth Olympics 2,000 0 0 0 0 KANA Family Center 12,000 12,000 5,052 12,000 12,000 Kodiak Youth Services Network 5,000 5,000 0 5,000 7,500 Girl Scouts 1,000 2,050 2,050 2,050 2,050 Kodiak Football League 0 0 5,000 5,000 5,000 St. Mary's School 0 2,085 1,097 1,097 1,097 Kodiak Teen Court 0 0 0 0 8,705 Unallocated Funds 0 0 11,948 0 (16,257) Operating Transfers 5,130 0 0 0 0 TOTAL $153,481 $147,227 $152,282 $152,282 $147,230 11 77 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 2003 -2004 N/A Significant Budget Changes N/A 78 TRANSFERS Operating Transfers Mental Health Insurance Contingency Debt Service Debt Service Other Capital Projects -KIB TOTAL EXPENDITURES F.Y. 2001 F.Y. 2002 ACTUAL ACTUAL $323,296 $0 0 0 0 20,000 0 25,034 0 10,000 $323,296 $55,034 F.Y. 2003 F.Y. 2003 F.Y. 2004 BUDGET ACTUAL BUDGET $0 $0 $0 100,000 100,000 0 0 0 0 0 11,066 0 33,380 0 0 $133,380 $111,066 $0 79 SPECIAL REVENUE FUNDS SPECIAL REVENUE FUNDS REVENUE SOURCES AND SPECIAL REVENUE FUND ESTIMATES The overall revenue budget for Special Revenue Funds is $3,164,245. PROPERTY TAX 21% INTERGOV'T REVENL 20 LAND SALES INTEREST 35 RENTS & ROYALTIES 15% MISCELLANEOUS 2% D SALE 7% 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. 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 $1,100,000. The estimated amount of interest earned from the Service Area, Fire Protection Area, and Lighting Area funds, based on the cash balance of each fund, is $17,900. The interest budgeted is conservative one due to the recent decline in interest rates. 81 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 - 44.47.310 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 its monies through a formula grant program. Formula grants do not require a formal grant - writing request. The KIB must report monthly to the State on how much money has been expended for daycare assistance, how many families are served and how many children are enrolled. The State analyzes these numbers and informs the Borough on the amount of the grant award. The estimate for FY 2004 is $540,000. Alaska Coastal Management Program (RCMP) 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 2004 is $25,940 for routine implementation. Local Emergency Planning Committee (LEPC) Alaska Department of Environmental Conservation funds the LEPC. The State Emergency Response Committee (SERC), a committee made up of State Commissioner -level appointees, two LEPC representatives, two local government representatives, and a member of the general public, work with Alaska Department of Emergency Services to determine grant funding levels and LEPC grant awards, based on the availability of funds appropriated by the state legislature. LEPC support and grant administration have historically been shared between the Kodiak Island Borough and the City of Kodiak by periodically passing the responsibility back and forth from one local government to the other, as staffing and other considerations have dictated, in the best interest of serving the overall Borough community. The KIB LEPC is established to plan and educate the community about natural and human - created disasters /events, and to provide a local committee to assist staff in the development of Emergency Operation Plans (EOP) and sub -area oil spill contingency plans. The KIB LEPC meets state and federal requirements for membership and has traditionally been affiliated with the local Emergency Services Committee (ESC) in order to provide better efficiency and coordination between the two committees. Grant funding for LEPC comes through the Alaska Department of Environmental Conservation from the "470" fund, which is a nickel -a- barrel tax on oil transported through the Trans - Alaska Oil Pipeline. This tax is primarily intended to support hazardous material planning, primarily for oil spills, but local communities can also consider "all hazards" planning as long as the general obligations of the grant are fulfilled. The Kodiak Island Borough expects to receive $20,000 for FY 2004. Federal Grants Welfare to Work. The federal grant is a competitive grant that KIB was awarded in fiscal year 2000. The grant amount awarded was $123,810. The Borough has until June 30, 2004 to expend the funds. The amount budgeted as revenue for fiscal year 2004 is $25,000. State Revenue State Revenue Sharing. AS 29.60.010- 29.60.030: State Equalization of Tax Resources for Municipal Services. The state aid provides money for public roads, hospitals, health clinics and volunteer fire departments. The 82 State of Alaska pays to each road service district an amount per mile of road within the service district and an amount per capita population in fire districts. The state changes these amounts based on cost of living adjustments and available funds. The estimate for FY 2004 is $9,870. This budgeted figure was based on seventy -five percent of what was received in fiscal year 2003. 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 Net Taxable Mill Levy Property Value Tax Womens Bay Road Service Area $45,153,673 2.00 $90,307.35 Road Service Area No. 1 $106,099,207 1.00 $106,099.21 Monashka Bay Road Service Area $15,751,987 1.50 $23,627.98 Bay View Road Service Area $5,586,199 1.00 $5,586.20 Fire Protection Area No. 1 $205,913,525 1.50 $308,870.29 Womens Bay Fire Department $47,014,273 1.25 $58,767.84 KIB Airport Fire Protection District $15,055,666 1.25 $18,819.58 Woodland Acres Street Light Area $26,816,698 0.00 $0.00 Trinity Islands Street Light Area $7,198,468 0.50 $3,599.23 Mission Lake Tide Gate Area $2,463,258 1.00 $2,463.26 The property taxes actually budgeted are slightly less than the table above due to the different service district boards wanting to be somewhat conservative in their revenue projections. Generally 85 %n of property taxes are from real property, 15 %n comes from personal property. Overall, the current Borough -wide delinquency rate is 1.64 %n. 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. Fiscal year 2003 generated $30,412 in revenues; we budgeted $45,000 for fiscal year 2004. RENTS AND ROYALTIES 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 2004, the Borough is charging an annual rate of $1.85 per square foot, which equates to $430,120 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 2004, $25,000, is based on the estimates and averages of gravel extracted in past years. The royalty rate is $1.25 per cubic yard. 83 1 SPECIAL REVENUE FUND RECAP Child Care Assistance 540,000 0 0 0 0 0 0 0 0 0 SPECIAL REVENUE FUNDS BUDGET SUMMARY 0 25,000 0 0 0 0 0 0 ' FISCAL YEAR 2003/2004 Resource Management 0 0 83,775 0 0 0 0 0 0 0 KIB Buildings 0 0 0 991,760 Local 0 0 0 0 0 Coastal Management 0 0 0 0 0 Emergency 0 0 0 0 Monashka 0 0 0 Welfare to 0 Buildings & Planning Coastal Womens Bay Service Area Service Bay Service 0 0 Child Care Work Land Sales Grounds Committee Mgmt Service A N 1 Area No 2 Area 0 Beginning Fund Balance $13,668 $0 $122,621 $370,132 $0 $0 $219,685 $353,551 $4,031 $67,000 0 Revenues 0 0 0 0 0 Transfers Out 0 0 0 0 0 Property Taxes 0 0 0 0 0 0 83,500 134,000 0 20,100 25,940 Bed Tax 0 0 0 0 0 0 0 0 0 0 P.I. L.O.T. - KIHA 0 0 0 0 0 0 0 500 0 0 Licenses & Permits 0 0 1,000 0 0 0 20,000 0 0 0 Rents & Royalties 0 0 25,000 431,120 0 0 0 0 0 0 Land Sales Activities 0 0 209,225 0 0 0 0 0 0 0 Federal Grants 0 25,000 0 0 0 0 0 0 0 0 State Shared Revenues 0 0 0 0 0 0 3,000 4,000 0 1,000 State Grants 540,000 0 0 0 20,000 25,940 0 0 0 0 Kodiak Arts Council 0 0 0 0 0 0 0 0 0 0 Transportation Revenues 0 0 0 0 0 0 0 0 0 0 Penalties & Interest 0 0 0 0 0 0 5,000 5,000 100 1,500 Miscellaneous 0 0 0 0 0 0 0 0 0 0 Sale of Shuyak Island 0 0 0 0 0 0 0 0 0 0 Transfers In 0 0 650,000 550,670 0 0 0 0 0 0 Total Revenues & Transfers In 540,000 25,000 885,225 981,790 20,000 25,940 111,500 143,500 100 22,600 Total Available Funds 553,668 25,000 1,007,846 1 351,922 20,000 25,940 331,185 497,051 4,131 89,600 Expenditures Child Care Assistance 540,000 0 0 0 0 0 0 0 0 0 Welfare to Work 0 25,000 0 0 0 0 0 0 0 0 Resource Management 0 0 83,775 0 0 0 0 0 0 0 KIB Buildings 0 0 0 991,760 0 0 0 0 0 0 Coastal Management 0 0 0 0 0 25,940 0 0 0 0 Road Maintenance 0 0 0 0 0 0 112,100 188,500 100 43,500 Public Safety 0 0 0 0 20,000 0 0 0 0 0 Entertainment 0 0 0 0 0 0 0 0 0 0 Economic Development 0 0 0 0 0 0 0 0 0 0 Transfers Out 0 0 0 0 0 0 0 0 0 0 Total Use of Funds 540,000 25,000 83,775 991,760 20,000 25,940 112,100 188,500 100 43,500 Est. Funds Available 6/30/04 $13,668 $0 $924,071 $360,162 $0 $0 $219,085 $308,551 $4,031 $46,100 ' Use of Fund Balance and Contingencies are not included in this summary. I 84 1 4,600 301,500 55,000 KIB Airport 0 Trinity 2,460 Fire Womens Bay Fire Woodland Islands Mission Bay View Road Protection Fire Protection Acres Street Street Light Lake Tide Kodiak Arts Tourism Service Area Area No. 1 Department District Light Area Area Gate Council Facilities Fund Development TOTAL $5,966 $1,046,959 $254,695 $30,702 $28,884 $0 $0 $0 $38,115,583 $23,855 $40,657,329 4,600 301,500 55,000 16,780 0 3,600 2,460 0 0 0 621,540 0 0 0 0 0 0 0 0 0 45,000 45,000 0 500 0 0 0 0 0 0 0 0 1,000 0 0 0 0 0 0 0 0 0 0 21,000 0 0 0 0 0 0 0 0 0 0 456,120 0 0 0 0 0 0 0 0 0 0 209,225 0 0 0 0 0 0 0 0 0 0 25,000 670 1,000 200 0 0 0 0 0 0 0 9,870 0 0 0 0 0 0 0 0 0 0 585,940 0 0 0 0 0 0 0 53,650 0 0 53,650 0 0 0 0 0 0 0 0 0 0 0 200 0 5,000 100 1,000 0 0 0 1,100,000 0 1,117,900 0 9,000 9,000 0 0 0 0 0 0 0 18,000 0 0 0 0 0 0 0 0 0 0 0 0 0 16,780 0 0 0 0 0 0 0 1,217,450 5,470 312,000 85,980 16,880 1,000 3,600 2,460 53.650 1,100,000 45,000 4,381,695 11,436 1 340,675 47,582 29,884 3,600 2,460 53,650 _ 39,215,583 68,855 45,039,024 $5,966 $855,359 $129,915 $30,702 $20,884 ($7,260) ($49,890) $0 $38,311,523 $23,855 $40,345,269 FNI 0 0 0 0 0 0 0 0 0 0 540,000 ' 0 0 0 0 0 0 0 0 0 0 25,000 0 0 0 0 0 0 0 0 0 0 83,775 0 0 0 0 0 0 0 0 0 0 991,760 0 0 0 0 0 0 0 0 0 0 25,940 5,470 0 0 0 0 0 0 0 0 0 349,670 0 503,600 210,760 16,880 9,000 10,860 52,350 0 0 0 823,450 ' 0 0 0 0 0 0 0 53,650 0 0 53,650 0 0 0 0 0 0 0 0 0 45,000 45,000 0 0 0 0 0 0 0 0 0 0 851,450 0 0 0 0 0 0 0 0 904,060 0 904,060 ' 5,470 503,600 210,760 16,880 9,000 10,860 52,350 53,650 904,060 45,000 4,693,755 $5,966 $855,359 $129,915 $30,702 $20,884 ($7,260) ($49,890) $0 $38,311,523 $23,855 $40,345,269 FNI 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 To give low to moderate income families access to affordable, quality childcare. To encourage independence from social welfare programs by subsidizing the costs of child care for eligible 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 and the US Coast Guard. Objectives for 2003 -2004 • To promote childcare assistance programs to eligible parents for the best and fullest 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. • To implement new computer system which is provided by the State. Significant Budget Changes No significant budget changes. 86 CHILD CARE ASSISTANCE Expenditures Personnel Services REVENUES AND EXPENDITURES $42,881 $44,380 $45,767 $44,173 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 18,430 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues Support Goods & Services 11,697 14,255 18,185 13,828 State of Alaska Grants $463,388 $519,438 $521,867 $498,636 $540,000 Use of Fund Balance 0 0 0 0 0 Transfers In 0 0 0 0 0 TOTAL $463,388 $519,438 7521,867 $498,636 $540,000 Expenditures Personnel Services $40,745 $42,881 $44,380 $45,767 $44,173 Employee Benefits 14,563 16,333 18,223 17,177 18,430 Day Care Subsidy 396,384 445,971 441,079 421,863 459,212 Support Goods & Services 11,697 14,255 18,185 13,828 18,185 Capital Outlay 0 0 0 0 0 TOTAL $463,389 $519,440 $521,867 $498,635 $540,000 PERSONNEL Number of Employees Position: F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 Local Administrator 1.0 1.0 1.0 1.0 PERFORMANCE INDICATORS F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL ESTIMATED PROJECTED Average number of families served per month 66 70 65 70 Average number of children served per month 143 180 110 125 The average number of families and children served per month decreased from 2002 to 2003 due to new income eligibility requirements instated on 9/1/02 87 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 To manage Borough lands for the maximum benefit of Borough residents. To provide decision makers with the tools and information to make informed decisions on the allocation, use, and development of Borough lands and resources. To continue to review and implement land sale strategies that are in balance with the real estate market. To help transfer developable public lands to the private sector in a cost effective manner. Objectives for 2003 -2004 • Evaluate all Borough land and conduct another land sale in the summer of 2003 of land that is appropriate for development, in demand and does not compete with private developers. • Prepare land for sale in the Womens Bay area. • Sell excess land at North Star School. • Sell land in the Monashka Bay area. Significant Budget Changes No significant budget changes. Previous Year's Accomplishments Appraised and subdivided a ten acre tract for sale in the Monashka Bay area. Appraised and prepared excess land at North Star School for sale. 88 RESOURCE MANAGEMENT REVENUES AND EXPENDITURES PERFORMANCE INDICATORS F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 0 0 Telephone right -of -way permits issued 1 0 Annual Use Permit $1,000 $1,000 $1,000 $1,000 $1,000 Interest Earnings 0 0 0 15,183 0 Gravel Sales 16,406 21,150 25,000 56,742 25,000 Principal Payments 112,128 564,722 200,000 38,430 204,250 Cash discounts 0 0 0 7,625 0 Interest Payments 0 20,542 5,000 0 4,975 Other 0 296 0 75 0 Land Leases 0 80 0 1,481 0 Use of Fund Balance 0 0 650,000 0 50,000 Transfer In - Debt Service 0 0 0 0 650,000 TOTAL $129,534 $607,790 $881,000 $120,536 $935,225 Expenditures Personnel Services $40,000 $52,910 $21,000 $21,613 $21,000 Employee Benefits 0 182 0 152 0 Contracted Services 36,161 6,671 20,000 1,725 10,000 Support Goods & Services 24,208 11,435 90,000 1,625 2,775 Contengencies 24,208 11,435 90,000 1,625 851,450 Capital Outlay 0 0 50,000 0 50,000 Operating Transfers 0 10,000 700,000 700,000 0 TOTAL $124,577 $92,633 $971,000 $726,740 $935,225 PERFORMANCE INDICATORS 89 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL ESTIMATED PROJECTED Electrical right -of -way permits issued 0 0 0 0 Telephone right -of -way permits issued 1 0 0 0 Tax foreclosed parcels 7 19 7 10 Foreclosed Parcels Redeemed 2 5 4 2 89 PROGRAM BUDGET SUMMARY WELFARE TO WORK Program Description The purpose of this program is to solicit the assistance of community organizations in helping families move into employment, off dependency on temporary assistance (TANF), and achieve economic self- sufficiency. Goal Three key provisions in TANF make the goal and urgency for moving Temporary Assistance clients into employment: 1. Five year limit of service in a lifetime. 2. Two year limit —requirement to be in a work activity within 24 months. 3. Participant rates — states are required to have an increasing number of participants in work activity. Objectives for 2003 -2004 • Maximize the use of the Federal grant. Significant Budget Changes No significant budget changes. .s WELFARE TO WORK Revenues State of Alaska Grants Federal Grants TOTAL Expenditures DHSS Personnel Services Professional Fees Support Goods & Services DOL Personnel Services Employee benefits Professional Fees Support Goods & Services TOTAL REVENUES AND EXPENDITURES F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET 731 $134,968 $61,117 $0 $0 $0 40,791 12,711 49,891 27,692 25,000 $175,759 $73,828 $49,891 $27,692 $25,000 $4,740 $5,475 $0 $0 $750 129,497 106,484 0 0 24,250 731 327 0 0 0 0 1,657 1,501 347 0 0 0 0 29 0 40,330 14,854 48,390 27,316 0 461 589 0 0 0 $175,758 $129,386 $49,891 $27,692 $25,000 91 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 maintenance. 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 2003 -2004 • Create a checklist for the review of KIB buildings, grounds and parks. Significant Budget Changes No significant budget changes. 92 1 1 1 11 BUILDING AND GROUNDS Revenues Rents & Royalties - KIB -City of Kodiak -KIBSD - Borough Building Annex - Kodiak Tribal Council - Apartment Rent - Mental Health -Day Care Assistance Miscellaneous - Classified Use of Fund Balance Transfers In- General Fund KIB Transfers In- Facilities Fund Transfers In -Debt Service Transfers In- Capital Projects TOTAL Expenditures Borough Building KIB Mental Health Center School Buildings Parks Operation & Maintenance TOTAL REVENUES AND EXPENDITURES F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET $186,390 $205,380 $205,380 $205,370 $216,480 65,770 72,460 72,460 72,320 104,510 84,810 93,440 93,440 99,898 95,560 8,108 7,680 7,680 7,680 8,680 9,405 8,550 0 0 0 400 1,920 4,620 2,700 0 10 10 0 0 0 3,560 4,460 4,460 4,460 5,890 800 0 670 0 0 0 0 810 0 9,970 29,130 50,670 50,670 50,670 50,670 92,000 102,230 622,560 622,560 500,000 854 0 0 0 0 0 0 0 0 0 $481,236 $546,800 $1,062,750 $1,065,658 $991,760 $304,987 $267,850 $499,080 $233,034 $348,410 3,389 3,226 8,700 12,861 6,130 89,650 184,098 527,230 330,095 612,000 24,635 24,183 27,740 31,566 25,220 $422,661 $479,357 $1,062,750 $607,556 $991,760 93 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 routine maintenance in an effort to provide a safe, pleasing appearance of the government administrative offices. Objectives for 2003 -2004 • 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. 94 BOROUGH BUILDING EXPENDITURES PERSONNEL Number of Employees Position: Maintenance Worker F.Y. 2001 F.Y. 2002 0.5 0.5 F.Y. 2003 F.Y. 2004 0.5 0.5 95 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Expenditures Personnel Services $35,471 $40,682 $22,560 $33,132 $23,440 Fringe Benefits 10,392 11,966 7,305 9,449 8,695 Contracted Services 0 4,282 0 0 0 Support Goods & Services 258,742 210,920 357,640 189,555 204,700 Capital Outlay 382 0 111,575 12 11,575 Operating Transfers 0 0 0 886 100,000 TOTAL $304,987 $267,850 $499,080 $233,034 $348,410 PERSONNEL Number of Employees Position: Maintenance Worker F.Y. 2001 F.Y. 2002 0.5 0.5 F.Y. 2003 F.Y. 2004 0.5 0.5 95 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 2003 -2004 • Investigate electrical transformer health for Building A • Provide for owner responsible maintenance Significant Budget Changes No significant budget changes. 1 1 1 1 1 96 MENTAL HEALTH CENTER Expenditures Personnel Services Fringe Benefits Support Goods & Services Capital Outlay TOTAL EXPENDITURES F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 ACTUAL ACTUAL BUDGET ACTUAL $40 $0 $0 $0 21 0 0 0 3,328 3,226 8,700 12,861 0 0 0 0 $3,389 $3,226 $8,700 $12,861 97 F.Y. 2004 $0 0 6,130 0 $6,130 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 To provide owner responsible maintenance and services. Objectives for 2003 -2004 • Continue to investigate School roofs needing repair • Provide a painting schedule to address needed exterior maintenance for all buildings Significant Budget Changes No significant budget changes. 98 SCHOOL BUILDINGS EXPENDITURES 99 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Expenditures Personnel Services $0 $0 $0 $1,398 $0 Employee Benefits 0 0 0 268 0 Contracted Services 0 21,000 0 15 0 Support Goods & Services 89,650 163,098 345,230 328,414 430,000 Capital Outlay 0 0 182,000 0 82,000 Operating Transfers 0 0 0 0 100,000 TOTAL $89,650 $184,098 $527,230 $330,095 $612,000 99 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 2003 -2004 • Complete the BMX bike facility • Maintain existing parks and remove hazards Significant Budget Changes No significant budget changes. 1 t00 PARKS OPERATION AND MAINTENANCE EXPENDITURES PERSONNEL Number of Employees Position: Maintenance Worker New trails /parks construction F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 0.5 0 0 0 PERFORMANCE INDICATORS F.Y. 2001 A !`T I I A I F.Y. 2002 F.Y. 2003 F.Y. 2004 ACTUAL ESTIMATED PROJECTED 0 0 0 BE F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Expenditures Personnel Services $4,813 $2,693 $0 $7,463 $5,000 Fringe Benefits 1,570 652 0 1,586 0 Contracted Services 14,889 15,520 14,100 11,926 15,000 Support Goods & Services 3,363 5,318 13,640 10,591 5,220 Capital Outlay 0 0 0 0 0 TOTAL $24,635 $24,183 $27,740 $31,566 $25,220 PERSONNEL Number of Employees Position: Maintenance Worker New trails /parks construction F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 0.5 0 0 0 PERFORMANCE INDICATORS F.Y. 2001 A !`T I I A I F.Y. 2002 F.Y. 2003 F.Y. 2004 ACTUAL ESTIMATED PROJECTED 0 0 0 BE PROGRAM BUDGET SUMMARY INSURANCE DEDUCTIBLE Program Description The purpose of this fund is to maintain reserves for paying insurance deductibles in case of a large loss. Goal Maintain $100,000 in the fund, which is the highest amount of any of the Borough's insurance deductibles. Objectives for 2003 -2004 • Conserve the fund balance Significant Budget Changes No significant budget changes 1 1 1 1 1 102 INSURANCE DEDUCTIBLE EXPENDITURES 103 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues Operating Transfers - General Fund $0 $0 $100,000 $100,000 $0 TOTAL $0 $0 $100,000 $100,000 $0 Expenditures Support Goods & Services $0 $0 $100,000 $0 $0 TOTAL $0 $0 $100,000 $0 $0 103 PROGRAM BUDGET SUMMARY 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 To update, as needed, the Kodiak Island Borough Coastal Management Program ( KIBCMP). To fully participate in project reviews initiated by the state or federal governments. To continue the full integration of the KIBCMP into the activities of the Kodiak Island Borough Community Development Department. Objectives for 2003 -2004 • 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 Coastal District Association. • Initiate a strategy for updating the KIBSCP once ACMP regulating changes, currently under consideration, have been adopted. Significant Budget Changes No significant budget changes. Previous Year's Accomplishments • *e Review of approximately 35 projects for coastal consistency. i 1 104 COASTAL MANAGEMENT $15,851 $15,000 $16,550 REVENUES AND EXPENDITURES Contracted Services 8,350 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 4,890 Capital Outlay 0 State of Alaska Grants $28,440 $15,977 $23,850 $10,289 $25,940 TOTAL $28,440 $15,977 $23,850 $10,289 $25,940 Expenditures Personnel Services $15,851 $15,000 $16,550 $16,550 $16,550 Contracted Services 8,350 4,500 4,500 5,934 4,500 Support Services 4,240 5,942 2,800 3,319 4,890 Capital Outlay 0 0 0 0 0 CMG Special Project 0 0 0 0 0 TOTAL $28,441 $25,442 $23,850 $25,803 $25,940 PERFORMANCE INDICATORS F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL ESTIMATED PROJECTED Vessel and facility contingency plans reviewed 3 0 0 0 Federal and state project reviews 60 50 30 35 Special projects completed 1 0 0 1 105 PROGRAM BUDGET SUMMARY LOCAL EMERGENCY PLANNING COMMITTEE Program Description The Local Emergency Planning Committee (LEPQ 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 2003 - 2004 • Continue region -wide emergency response planning programs. • Participate in the Kodiak Emergency Plan update. • Participate in the community wide preparedness exercise. Significant Budget Changes No significant budget changes. I � I � 106 1 LOCAL EMERGENCY PLANNING COMMITTEE REVENUES AND EXPENDITURES F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues LEPC Grant $19,500 $0 $20,000 $20,000 $20,000 FEMA Grant 0 0 17,937 0 0 TOTAL $19,500 $0 $37,937 $20,000 $20,000 Expenditures Personnel Services $0 $0 $13,000 $13,000 $13,000 Contracted Services 16,877 0 5,000 5,938 5,000 Support Goods & Services 2,623 0 2,000 1,062 2,000 Contracted Services - FEMA 0 0 17,937 0 0 TOTAL $19,500 $0 $37,937 $20,000 $20,000 107 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 road surfaces, free of snow and ice within current budgetary constraints. Objectives for 2003 -2004 • The continued program of improving and maintenance of existing drainage ditches area wide. • To improve gravel road surfaces. • To seal cracks in existing asphalt surfaces in an effort to preserve the existing road surfaces. Significant Budget Changes No significant budget changes. 108 WOMENS BAY SERVICE AREA REVENUES AND EXPENDITURES PERFORMANCE INDICATORS Number of miles Road Service Cost per Mile 12 12 12 $8,531 $9,485 $11,708 12 12 $6,890 $9,342 109 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues Property Taxes $80,956 $85,947 $82,500 $86,487 $83,500 Annual Use Permits 20,000 20,000 20,000 20,000 20,000 State Shared Revenue 4,821 5,184 3,000 5,116 3,000 Interest Earnings 11,230 4,883 5,000 3,068 5,000 Use of Fund Balance 0 0 30,000 0 600 TOTAL $117,007 $116,014 $140,500 $114,671 $112,100 Expenditures Personnel Services $0 $0 $0 $440 $0 Fringe Benefits 0 0 0 59 0 Snow Removal /Sanding 12,701 111,928 118,300 80,594 30,000 Repairs & Maintenance 75,347 1,294 21,600 991 30,000 Grading /Ditching 13,459 0 0 600 30,400 Support Goods & Services 864 0 0 0 21,700 Transfers Out 0 600 600 0 0 TOTAL $102,371 $113,822 $140,500 $82,684 $112,100 PERFORMANCE INDICATORS Number of miles Road Service Cost per Mile 12 12 12 $8,531 $9,485 $11,708 12 12 $6,890 $9,342 109 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 2003 - 2004 • To continue encouraging the Borough to pursue funds for all the roads in the district. • To provide thru signage and dust abatement. Significant Budget Changes The mill rate is decreasing from 1.25 to 1.00. Ito SERVICE AREA NO. 1 $3,041 $2,722 $3,400 $4,427 $3,900 Fringe Benefits REVENUES AND EXPENDITURES 750 625 700 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 95,000 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues Grading /Ditching 44,326 21,924 45,000 32,150 Property Taxes $124,292 $131,006 $167,500 $170,941 $134,000 Payment in Lieu of Taxes 349 291 2,000 436 500 State Shared Revenue 4,050 4,265 4,000 4,573 4,000 Penalties & Interest 14,039 6,383 0 4,060 5,000 Use of Fund Balance 0 0 64,050 0 45,000 TOTAL $142,730 $141,945 $237,550 $180,010 $188,500 Expenditures Personnel Services $3,041 $2,722 $3,400 $4,427 $3,900 Fringe Benefits 368 250 750 625 700 Snow Removal /Sanding 16,415 85,007 95,000 17,983 95,000 Repairs & Maintenance 35,131 1,523 40,000 28,577 42,000 Grading /Ditching 44,326 21,924 45,000 32,150 44,500 Support Goods & Services 646 1,131 53,400 1,146 2,400 TOTAL $99,926 $112,557 $237,550 $84,908 $188,500 PERFORMANCE INDICATORS Number of miles 10 10 10 10 10 Road Service Cost per Mile $9,993 $11,256 $23,755 $8,491 $18,850 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 2003 -2004 • To obtain funding for the project design. • To explore alternatives for obtaining water and sewer services, i.e. annexation to the City of Kodiak. Significant Budget Changes The board has voted to use their fund balance to defray any administrative costs incurred over the next year. 112 — -, ■ 1 i 1 SERVICE AREA NO. 2 Revenues Interest Earnings TOTAL Expenditures Support Goods & Services TOTAL REVENUES AND EXPENDITURES F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET $203 $89 $200 $46 $100 $203 $89 $200 $46 $100 $1 $1 $200 $0 $100 $1 $1 $200 $0 $100 113 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 2003 - 2004 • To provide the same high standard of safe and adequate roads at the same mill rate (1.5 mills). Significant Budget Changes The repair and maintenance line item has been increased significantly this year in order to address general ditch maintenance and potential dredging of the pond located at the bottom of Three Sisters Way. I � 114 MONASHKA BAY ROAD SERVICE AREA $0 $0 $500 $423 $500 REVENUES AND EXPENDITURES 11,539 12,000 5,750 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 2,722 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 5,000 Support Goods & Services 80 63 900 Property Taxes $22,338 $22,602 $19,690 $23,489 $20,100 State Revenue Sharing 886 1,081 1,410 1,076 1,000 Interest Earnings 3,258 1,399 2,300 872 1,500 Use of Fund Balance 0 0 0 0 20,900 TOTAL $26,482 $25,082 $23,400 $25,437 $43,500 Expenditures Personnel Services $0 $0 $500 $423 $500 Snow Removal /Sanding 3,996 11,539 12,000 5,750 12,000 Repairs & Maintenance 0 0 1,500 2,722 25,000 Grading /Ditching 6,303 19,736 8,500 4,466 5,000 Support Goods & Services 80 63 900 202 1,000 TOTAL $10,378 $31,338 $23,400 $13,563 $43,500 PERFORMANCE INDICATORS Number of miles 2 2 2 2 2 Road Service Cost per Mile $5,189 $15,669 $11,700 $6,782 $21,750 115 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 2003 -2004 • To provide safe and adequate roads. Significant Budget Changes No significant budget changes. — , .o ■ ON ■ ..ti ■ am as .m W «r M 116 BAY VIEW ROAD SERVICE AREA Revenues Property Taxes State Shared Revenue Interest Earnings TOTAL Expenditures Personnel Services Fringe Benefits Snow Removal /Sanding Repairs & Maintenance Grading /Ditching Support Goods & Services TOTAL Number of miles Road Service Cost per Mile REVENUES AND EXPENDITURES F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET $5,033 $5,338 $4,600 $5,547 $4,600 371 394 670 387 670 242 105 200 84 200 $5,646 $5,837 $5,470 $6,018 $5,470 $0 $0 $0 $141 $0 0 0 0 18 0 879 3,806 2,500 994 2,500 1,823 0 1,000 2,400 1,000 1,841 1,413 1,970 426 1,970 17 14 0 17 0 $4,560 $5,233 $5,470 $3,996 $5,470 PERFORMANCE INDICATORS 1 1 1 1 1 $4,560 $5,233 $5,470 $3,996 $5,470 117 PROGRAM BUDGET SUMMARY FIRE PROTECTION AREA NO. 1 (BAYSIDE FIRE DEPARTMENT) Program Description Bayside Fire Department is responsible for providing fire suppression and fire prevention 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. Objectives for 2003 -2004 • 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 finish design and begin construction of new restroom facilities, media library, boiler room and ., storage loft. • Continue with the design of new truck bay addition. ' • Replace Squad 13, which carries personnel and equipment. • Replace 25 Motorola Minitor II pagers with Minitor III. • Maintain the service district mil rate at 1.5 mils. , Significant Budget Changes No significant budget changes. ' 1 118 FIRE PROTECTION AREA NO. 1 $56,541 $55,676 $65,000 $55,963 $72,840 Volunteers REVENUES AND EXPENDITURES 20,000 16,710 20,000 Fringe Benefits F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 Contracted Services ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 84,888 129,076 135,430 95,616 141,100 Property Taxes $279,146 $289,922 $297,500 $303,806 $301,500 Payment in Lieu of Taxes 524 436 500 523 500 State Shared Revenue 9,320 1,685 5,000 1,181 1,000 Interest Earnings 49,403 21,323 0 17,193 0 Other 0 7,931 9,000 4,354 9,000 Instruction 4,979 0 0 0 0 Use of Fund Balance 0 0 105,930 0 191,600 TOTAL $343,371 $321,297 $417,930 $327,057 $503,600 Expenditures Salaries $56,541 $55,676 $65,000 $55,963 $72,840 Volunteers 9,185 13,965 20,000 16,710 20,000 Fringe Benefits 11,288 12,424 25,500 14,254 13,660 Contracted Services 578 3,708 12,000 3,750 16,000 Support Goods & Services 84,888 129,076 135,430 95,616 141,100 Capital Outlay 0 8,879 130,000 2,580 210,000 Depreciation 0 0 30,000 0 30,000 Transfers Out 985 2,664 0 3,664 0 TOTAL $163,464 $226,392 $417,930 $192,537 $503,600 119 PROGRAM BUDGET SUMMARY WOMENS BAY FIRE DEPARTMENT Program Description Womens Bay Volunteer Fire Department is responsible for providing fire suppression services and first responder EMS response to the citizens of Womens Bay Fire Protection Area. The department also provides first responder service for 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 the time until medical transport can be provided. Objectives for 2003 - 2004 • To respond with an engine company within ten minutes of an alarm on 90 %n 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 service area wide consolidation focusing on joint training development and standardization. • To develop and provide a multi -year program for fire apparatus and response vehicle replacement to meet current NFPA requirements. Significant Budget Changes I I The service area board is recommending the purchase of a Class A Fire Engine to replace the 20- year -old primary response vehicle. With an estimated cost of $220,000, the board is requesting a down payment of $100,000 ' from Use of Fund Balance, with the remainder being financed over a five -year period utilizing funds from the operating budget. I � 120 WOMENS BAY FIRE DEPARTMENT REVENUES AND EXPENDITURES Expenditures Personnel Services F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 Fringe Benefits ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 1,701 85 2,000 6,820 2,500 Property Taxes $52,899 $55,927 $54,000 $56,381 $55,000 State Grant 0 0 0 4,575 0 State Shared Revenue 259 685 200 237 200 Interest Earnings 11,365 4,928 5,000 2,986 5,000 Other 0 2,951 12,000 60 0 Rent 7,870 9,000 9,000 8,625 9,000 Use of Fund Balance 0 0 0 0 124,780 Operating Transfers 0 14,327 17,060 17,131 16,780 TOTAL $72,393 $87,818 $97,260 $89,995 $210,760 Expenditures Personnel Services $931 ($33) $1,700 $1,188 $2,000 Fringe Benefits 0 6 3,000 0 3,000 Contracted Services 1,701 85 2,000 6,820 2,500 Support Goods & Services 43,381 57,978 70,810 38,884 57,100 Capital Outlay 14,305 0 19,750 24,305 146,160 Operating Transfers 0 0 0 0 0 TOTAL $60,318 $58,036 $97,260 $71,197 $210,760 121 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 2003 -2004 • To continue contracting with Womens Bay Fire Department to provide the fire service to the district. Significant Budget Changes No significant budget changes. 122 AIRPORT FIRE PROTECTION DISTRICT $14,169 $0 $16,780 $16,531 REVENUES AND EXPENDITURES 89 70 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues $13,797 $16,900 $16,585 $16,880 Property Taxes $13,995 $13,728 $16,700 $16,531 $16,780 Penalties & Interest 1,905 974 200 481 100 TOTAL $15,900 $14,702 $16,900 $17,012 $16,880 Expenditures Contracted Services $14,169 $0 $16,780 $16,531 $16,780 Support Goods & Services 89 70 120 54 100 Operating Transfers 0 13,727 0 0 0 TOTAL $14,258 $13,797 $16,900 $16,585 $16,880 123 PROGRAM BUDGET SUMMARY WOODLAND ACRES STREET LIGHT AREA Program Description The Woodland Acres street light area shall provide construction, operation and maintenance of street lights on public streets within its boundaries. Goal To provide street lighting, ensuring a safer environment for all residents and visitors of Woodland Acres. Objectives for 2003 -2004 • To maintain and adequately fund the current street lights throughout Woodland Acres. Significant Budget Changes No significant budget changes. 124 WOODLAND ACRES STREET LIGHT AREA REVENUES AND EXPENDITURES Revenues Property Taxes State Revenue Sharing Interest Earnings Use of Fund Balance TOTAL Expenditures Personnel Services Support Goods & Services Capital Outlay TOTAL F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET $0 $0 $0 $0 $0 0 0 0 0 0 2,181 783 2,000 408 1,000 0 0 7,000 0 8,000 $2,181 $783 $9,000 $408 $9,000 $0 $0 SO $0 $0 5,473 4,967 6,000 5,505 6,030 0 0 3,000 0 2,970 $5,473 $4,967 $9,000 $5,505 $9,000 125 PROGRAM BUDGET SUMMARY TRINITY ISLANDS LIGHTING DISTRICT Program Description The Trinity Islands street light area shall provide construction, operation and maintenance of streetlights on public streets within its boundaries. Goal To provide street lighting, ensuring a safer environment for all residents and visitors of Trinity Islands. Objectives for 2003 -2004 • To construct streetlights throughout Trinity Islands subdivision. Significant Budget Changes This service area is new as of fiscal year 2004. 126 TRINITY ACRES STREET LIGHT AREA REVENUES AND EXPENDITURES Expenditures Personnel Services $0 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 0 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 0 9,000 TOTAL $0 $0 $0 Property Taxes $0 $0 $0 $0 $3,600 State Revenue Sharing 0 0 0 0 0 Interest Earnings 0 0 0 0 0 Proceeds from Debt 0 0 0 0 7,260 TOTAL $0 $0 $0 $0 $10,860 Expenditures Personnel Services $0 $0 $0 $0 $0 Support Goods & Services 0 0 0 0 1,860 Capital Outlay 0 0 0 0 9,000 TOTAL $0 $0 $0 $0 $10,860 I 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 tide gate. Objectives for 2003 -2004 • To remove debris from the tide gate. Significant Budget Changes This service area is new as of fiscal year 2004. 128 Mission Lake Tide Gate REVENUES AND EXPENDITURES Expenditures Personnel Services $0 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 0 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 0 51,150 TOTAL $0 $0 $0 Property Taxes $0 $0 $0 $0 $2,460 State Revenue Sharing 0 0 0 0 0 Interest Earnings 0 0 0 0 0 Miscellaneous -Other 0 0 0 0 20,000 Proceeds from Debt 0 0 0 0 29,890 TOTAL $0 $0 $0 $0 $52,350 Expenditures Personnel Services $0 $0 $0 $0 $1,000 Support Goods & Services 0 0 0 0 200 Capital Outlay 0 0 0 0 51,150 TOTAL $0 $0 $0 $0 $52,350 129 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 peoples 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 2003 -2004 • 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. 130 KODIAK ARTS COUNCIL REVENUES AND EXPENDITURES F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 9,240 Insurance and Bonding 912 598 Council Reimbursement $52,465 $56,672 $55,820 $54,444 $53,650 TOTAL $52,465 $56,672 $55,820 $54,444 $53,650 Expenditures Personnel Services $42,271 $44,370 $45,970 $43,557 $44,410 Employee Benefits 9,367 9,475 8,950 9,177 9,240 Insurance and Bonding 912 598 900 850 0 TOTAL $52,550 $54,443 $55,820 $53,584 $53,650 PERFORMANCE INDICATORS Membership (corporations, businesses, families & individuals) F.Y, 2001 F.Y. 2002 ACTUAL ACTUAL 800 800 F.Y. 2003 F.Y. 2004 ESTIMATED PROJECTED 800 800 Audiences: Community Performances 7,000 7,000 7,000 7,000 Student/School Events 6,000 6,000 6,000 6,000 Classes/Workshops /Exhibits 2,225 2,225 2,225 2,225 131 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. Six million dollars of the proceeds were used for the Kodiak Fisheries Research Center in FY96 and the remainder of this money was set aside. Interest earnings, after inflation proofing, can be used for capital projects, debt service and insurance on buildings. Goal Preserve the principal of the fund; and to achieve a fair rate of return on our investments. Objectives for 2003 -2004 • The Borough would like to realize a 2% rate of return on our Facilities Fund investments in FY 2004. Significant Budget Changes No significant budget changes 132 FACILITIES FUND $0 $0 $12,827,714 $0 $195,940 Operating Transfers REVENUES AND EXPENDITURES F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 500,000 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues Debt Service 393,330 504,920 462,670 462,670 Interest Earnings $1,293,632 $1,088,166 $1,949,650 $1,160,335 $1,100,000 Proceeds - Shuyak Island 4,000,000 4,000,000 11,805,734 11,805,734 0 Proceeds - Shuyak Island 0 0 257,560 0 0 TOTAL $5,293,632 $5,088,166 $14,012,944 $12,966,069 $1,100,000 Expenditures Contribution to Fund Balance $0 $0 $12,827,714 $0 $195,940 Operating Transfers Building and Grounds 92,000 102,230 622,560 622,560 500,000 Insurance Contingency 0 0 46,083 0 0 Debt Service 393,330 504,920 462,670 462,670 0 Capital Projects 301,746 0 53,917 53,917 404,060 TOTAL $787,076 $607,150 $14,012,944 $1,139,147 $1,100,000 133 1 PROGRAM BUDGET SUMMARY TOURISM DEVELOPMENT Program Description 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 2003 -2004 • To fund a variety of tourism packages available within the Kodiak Island Borough. Significant Budget Changes No significant budget changes. 134 TOURISM DEVELOPMENT REVENUES AND EXPENDITURES F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 45,000 Alaska Ocean Seas & Fisheries 0 0 Bed Tax Revenue $42,510 $50,671 $45,000 $30,412 $45,000 Interest Earnings 67 1 0 39 0 TOTAL $42,577 $50,672 $45,000 $30,451 545,000 Expenditures Contracted Services $0 $0 $0 $0 $0 Kodiak Convention Bureau 37,900 47,200 45,000 45,000 45,000 Alaska Ocean Seas & Fisheries 0 0 0 0 0 Village portion 0 0 0 0 0 Support Goods & Services 16 13 0 0 0 TOTAL $37,916 $47,213 $45,000 $45,000 $45,000 135 DEBT SERVICE FUNDS DEBT SERVICE FUND ' Debt Administration The necessity to incur debt in order to finance the capital program carries with it the obligation to manage the debt program t 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. 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. 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. Debt Per Capita 1,600 1,400 1,200 1,000 800 600 400 200 1997 1 19y9 - L 2000 x601 2002 L03 I ,; - 1995 1996 Net debt as a percentage of the estimated market value of taxable property should not exceed two (2) percent. Between the years 1995 and 2003 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 Debt Per Assessed Value 400% 9.50% 9.00% 2.60% 2.00% 1.60% 1.00% 0.50% The ratio of debt service expenditures as a percent of governmental fund expenditures should not exceed fifteen (15) percent Debt Service Expense Per Governmental Funds Expense 10% 9% 8% 7% u 8% 9 d 5% u d IL 4% 3% 2% 1% 0% 1995 1998 1997 1998 1999 2000 2001 2002 2003 200- Y"rs 138 0.00% 1666 1966 1967 1966 1966 2000 2001 2002 2009 20W Y— Summary of Outstanding Debt General Obligation Bonds 139 Outstanding FY 2004 Requirements Outstanding Balance Balance July 1,2003 Principal Interest June 30,2004 General Obligation Bonds Series 1993 900,000 900,000 40,950 0 General Obligation Bonds Series 1998 9,395,000 55,000 403,296 9,340,000 General Obligation Bonds Series 2000E 1,240,000 130,000 60,788 1,110,000 General Obligation Bonds Series 2000F 1,010,000 95,000 74,368 915,000 General Obligation Bonds Series 2003 3,075,000 55,000 62,221 3,020,000 Total $15,620,000 $641,622 $1,235,000 $14,385,000 139 00 GENERAL OBLIGATION BONDS, 1993 SERIES A RETIREMENT S CHEDULE 1993 Bond Issue This issue, dated November 15, 1993, was issued as registered bonds 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 1993 Bonds. This issue was marketed by John Nuveen & Co. Legal opinion was rendered by bond council, Wohlforth, Argetsinger, Johnson & Brecht of Anchorage, Alaska. These bonds were issued to build the Northstar Elementary School, remodel the Ouzinkie School, and remodel and expand the Kodiak Island Hospital. us Bonds are payable at First Trust N.A., St. Paul, Minnesota. ■ Interest Principal Interest ' Fiscal Interest due due due year rate August 15 February 15 February 15 Total 2004 4.55% 20,475 900,000 20,475 940,950 ' $ 20,475 $ 900,000 $ 20,475 $ 940,950 li 140 1 I I I I 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 was Alaska USA Trust Company. These bonds were issued to refund all but $1,030,000 of the 1994 bond issue. ' This resulted 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 2004 4.00% 201,648 55,000 201,648 458,296 2005 4.00% 200,548 55,000 200,548 456,096 ' 2006 4.00% 199,448 60,000 199,448 458,896 2007 4.00% 198,248 60,000 198,248 456,496 ' 2008 4.30% 197,048 1,150,000 197,048 1,544,096 2009 4.30% 172,323 1,200,000 172,323 1,544,646 ' 2010 4.30% 146,523 1,250,000 146,523 2011 4.30% 1,543,046 119,648 1,305,000 119,648 1,544,296 i 2013 2012 4.30% 91,590 1,360,000 91,590 4.30% 62,350 1,420,000 1,543,180 62,350 1,544,700 2014 4.30% 31,820 1,480,000 31,820 1,543,640 $ 1,621,194 $ 9,395,000 $ 1,621,194 $ 12,637,388 141 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, Wohlforth, 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. Interest Interest Principal Fiscal Interest due due year rate August 01 February 01 2004 4.75°x6 30,394 130,000 2005 4.75% 27,306 135,000 2006 4.75% 24,100 145,000 2007 4.88% 20,656 150,000 2008 5.00% 17,000 160,000 2009 5.00% 13,000 165,000 2010 5.00% 8,875 175,000 2011 5.00% 4,500 180,000 $ 145,831 $ 1,240,000 Interest due February 01 Total 30,394 190,788 27,306 189,613 24,100 193,200 20,656 191,313 17,000 194,000 13,000 191,000 8,875 192,750 4,500 189,000 $ 145,831 $ 1,531,663 142 GENERAL OBLIGATION BOND, 2000 SERIES F RETIREMENT 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. 143 Interest Principal Interest Fiscal Interest due due due year rate August 01 February 01 February 01 Total 2004 9.00% 37,184 95,000 37,184 169,368 2005 8.35° 32,909 105,000 32,909 170,818 2006 6.90% 28,525 110,000 28,525 167,050 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 $ 176,623 $ 1,010,000 $ 176,623 $ 1,363,245 143 GENERAL OBLIGATION BOND, 2003 SERIES B RETIREMENT SCHEDULE 2003 REFU NDING 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. Principal Interest Interest Fiscal Interest due year rate August 15 2004 4.75% 25,740 2005 4.75% 35,931 2006 4.90% 26,081 2007 5.40% 13,519 $ 3,075,000 $ 112,013 $ 101,271 Principal Interest due due February 15 February 15 Total 55,000 36,481 117,221 985,000 35,931 1,056,863 1,005,000 26,081 1,057,163 1,030,000 13,519 1,057,038 $ 3,075,000 $ 112,013 $ 3,288,283 N 144 1 1 1 1 1 1 1 1 1 7 3 3 1 1 1 1 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 2004 1,235,000 641,622 2005 1,280,000 593,389 2006 1,320,000 556,309 2007 1,360,000 514,306 2008 1,440,000 469,156 2009 1,505,000 402,606 2010 1,575,000 332,886 2011 1,645,000 259,736 2012 1,360,000 183,180 2013 1,420,000 124,700 2014 1,480,000 63,640 $15,620,000 $4,141,529 1,876,622 1,873,389 1,876,309 1,874,306 1,909,156 1,907,606 1,907,886 1,904,736 1,543,180 1,544,700 1,543,640 $19,761,529 145 PROGRAM BUDGET SUMMARY 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, serial and term, and other than that payable exclusively from special assessments and revenue debt issued for and serviced by a government enterprise (formally called a sinking fund). 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 2003 -2004 • To meet all debt service requirements when due, thus avoiding any charges for penalties or interest. Significant Budget Changes No significant budget changes. 146 1 DEBT SERVICE - EDUCATION AND HEALTH REVENUES AND EXPENDITURES Expenditures EDUCATION F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 $0 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 1,000 11,128 1,400 Principal Payments State Shared Revenues Debt Reimbursement - current $1,617,592 $833,194 $741,380 $783,512 $717,850 Debt Reimbursement - 2 yr lag 16,500 16,500 0 16,500 0 Interest Earnings 24,718 31,884 6,770 43,514 4,000 Other 0 12,675 0 21,355 0 Use of Fund Balance 0 0 399,130 0 6,770 Transfers In 1,194,600 1,179,840 1,155,490 1,005,750 1,147,240 TOTAL REVENUES $2,853,410 $2,074,093 $2,302,770 $1,870,631 $1,875,860 Expenditures EDUCATION 11 147 Professional Fees $14,225 $0 $0 $0 $0 Support Goods and Services 4,982 812 1,000 11,128 1,400 Principal Payments Loan Payable - EPA School Bonds - 1989 20,833 1,155,000 20,833 0 20,840 0 20,833 0 20,840 0 General Obligation 1993 400,000 415,000 435,000 435,000 455,000 General Obligation 1998 25,000 25,000 25,000 25,000 25,000 General Obligation 2000 E 0 120,000 125,000 125,000 130,000 General Obligation 2000 F 0 80,000 85,000 85,000 95,000 General Obligation 2003 0 0 0 0 28,000 ' Interest Payments School Bonds - 1989 40,425 0 0 0 0 General Obligation - 1993 121,513 104,713 86,660 86,660 20,700 General Obligation - 1994 28,080 28,080 28,080 28,080 0 General Obligation - 1998 206,503 205,565 204,630 204,628 203,690 ' General Obligation 2000 E 0 75,599 66,730 66,725 60,790 General Obligation 2000 F 0 107,931 106,180 82,018 74,370 General Obligation 2003 0 0 0 0 31,440 SUBTOTAL EDUCATION $2,016,560 $1,183,533 $1,184,120 $1,170,072 $1,146,230 HOSPITAL Support Goods & Services $584 $780 $1,000 $11,103 $1,000 ' Principal - 1993A GO Bond 390,000 410,000 425,000 425,000 445,000 Principal - 1998 GO Bond 25,000 25,000 25,000 25,000 30,000 Principal - 2003 GO Bond 0 0 0 0 27,000 ' Interest - 1993A GO Bond 119,015 102,635 84,800 84,800 20,250 Interest - 1994A GO Bond 27,540 27,540 25,540 27,540 0 Interest - 1998 GO Bond 202,418 201,480 200,540 200,543 199,610 Operating Transfer SUBTOTAL HOSPITAL 0 $764,557 0 350,000 0 0 $767,435 $1,111,880 $773,986 $722,860 KARLUK LOANS Principal $0 $0 $1,490 $4,228 $4,340 ' Interest 0 0 5,280 2,531 2,430 SUBTOTAL KARLUK LOANS $0 $0 $6,770 $6,759 $6,770 ' TOTAL EXPENDITURES $2,781,117 $1,950,968 $2,302,770 $1,950,817 $1,875,860 11 147 PROGRAM BUDGET SUMMARY 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. x Goal To always have sufficient funds to cover the long -term portion of the employees' accrued vacations. , Objectives for 2003 -2004 • To have funds available to cover the long -term portion of the employees' accrued vacations. , Significant Budget Changes decision ' It is not possible to estimate the direction or amount of transfer in this account; therefore we have made the to no longer budget for this account. u I 1 148 DEBT SERVICE - OTHER $0 $0 $0 $0 $0 REVENUES AND EXPENDITURES F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 0 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 0 0 0 0 Transfers In: 854 0 0 0 General Fund KIB $0 $25,034 $0 $11,066 $0 Buildings and Grounds 0 1,113 0 886 0 Bayside Fire Station 985 2,664 0 3,664 0 TOTAL TRANSFERS IN $985 $28,811 $0 $15,616 $0 Expenditures Employee Benefits $0 $0 $0 $0 $0 Transfers Out: General Fund 18,154 0 0 0 0 Land Sale Fund 0 0 0 0 0 Buildings and Grounds 854 0 0 0 0 Fire Service 0 0 0 0 0 TOTAL EXPENDITURES $19,008 $0 $0 $0 $0 149 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 $11,109 at the end of fiscal year 2004. 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 2,500,000 2,000,000 m 1,500,000 1 . 0 m C 1,000,000 LL 500,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Years Bond Ratings The Borough's bond ratings are further evidence of its financial strength. 150 Moody's Standard Investors Service And Poors Fitch Ratings General Obligation, 1993 Aaa AAA General Obligation, 1998 AAA AAA General Obligation, 2000 E Aaa AAA General Obligation, 2000 F Aaa AAA General Obligation, 2003 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. 150 CAPITAL PROJECTS FUNDS CAPITAL PROJECTS FUNDS 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 2003 -2004 • 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 No significant budget changes. 151 Projects: Fund 410 - Borough Capital Projects $ 3,104,714 $ 2,141,134 $ $ 963,58 Fund 420 -State Capital Grant /Loan - - - Fund 430 -State Capital Grants 3,739,357 1,115,383 - 2,623,97 Fund 490-Enterprise Fund Capital Projects 3,740,000 - - 3,740,000 Total' 1 152 Capital Projects Completed FY 2004 FY 200 Summary by Fund Life -to -Date Projects Additions L -T -D Budg( Revenues: Fund 410 - Borough Capital Projects $ 3,104,714 $ 2,141,134 $ $ 963,58( Fund 420 -State Capital Grant /Loan - - Fund 430 -State Capital Grants 3,739,357 1,115,383 - 2,623,97 Fund 490 - Enterprise Fund Capital Protects 3,740,000 - - 3,740,00( Projects: Fund 410 - Borough Capital Projects $ 3,104,714 $ 2,141,134 $ $ 963,58 Fund 420 -State Capital Grant /Loan - - - Fund 430 -State Capital Grants 3,739,357 1,115,383 - 2,623,97 Fund 490-Enterprise Fund Capital Projects 3,740,000 - - 3,740,000 Total' 1 152 Previous Activity Activity Activity Activity Activity Years Activity FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 $ 400,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 20,000 - - - - - 1,083,865 1,706,583 2,242,193 1,107,807 - - - -r -- $ - 20 000 $ 20 000 $ 20 000 $ 20 000 $ 267,725 $ 202,693 $ 339,789 $ 119,994 $ - $ 1,243,883 1,492,797 262,279 - 2,311,323 586,198 862,592 - 1,464,660 119,994 153 Capital Projects $ 150,000 Completed FY 2004 105 Anton Larsen Dock FY 2004 Fund 410- Borough Capital Projects: Life -to -Date Projects Additions L -T -D Bud et Revenues: 130 East Elementary Doorways 4,200 - 4,200 133 KIB Annex Building Repairs Interest Earnings $ 162,161 $ (137,749) $263,670 $ 563,580 2000E Bond 1,192,870 968,106 (224,764) - - State Matching Grant 150,000 150,000 - 400,000 - Total Revenues $ 1,505,031 $ 980,357 $ 38,906 $ 563,580 Operating Transfers !n: - 22,000 00105 Matching School Repair FY -2000 54,330 54,330 General Fund $ 529,991 $ 491,085 $ (38,906) $ - GIS - Funds 100, 210 20,000 20,000 01101 Matching School Repair - 53,742 53,742 Land Sales 50,000 50,000 53,345 02110 GIS Project Facilities Fund 545,775 545,775 03100 Weatherproof High School Penthouse walls 50,000 50,000 Debt Service - 80,000 80,000 03102 KHS asbestos abatement & carpet install Bayside Fire Department 400,000 - - 50,000 400,000 Capital Projects - Fund 430 53,917 53,917 60,000 - - - Total Operating Transfers in $1,599,683 $ 1 160 777 $ (38,906) $ 400,000 Total Revenues $ 3,104 $ 2,141,134 $ - $ 963,580 Projects: 85 Village Metals Removal $ 150,000 $ - $ - $ 150,000 105 Anton Larsen Dock 140,000 140,000 - - 114 State Airport Improvements 11,000 - - 11,000 130 East Elementary Doorways 4,200 - 4,200 133 KIB Annex Building Repairs 12,000 12,000 - - 146 BMX Bike Park 55,000 - 55,000 159 Borough Parks 26,500 26,500 - 173 Bayside Classroom Equipment 75,000 - 75,000 174 Bayside Storage Addition & Engine Bay 400,000 - 400,000 182 State Fair & Rodeo Water Project 25,000 - 25,000 00102 Bayside Underground Electrical 22,000 - 22,000 00105 Matching School Repair FY -2000 54,330 54,330 - 01105 High School Roof Repair 968,106 968,106 - 01106 MIS Study 30,000 30,000 01101 Matching School Repair - 53,742 53,742 02109 Matching School Repair FY -02 KHS Roof 53,345 53,345 02110 GIS Project 20,000 20,000 - - 03100 Weatherproof High School Penthouse walls 50,000 50,000 - - 03101 IRMA cricket installation and cleaning 80,000 80,000 03102 KHS asbestos abatement & carpet install 100,000 100,000 - 03103 East and Main Elementary paint 50,000 50,000 - 03104 Refinish wooden gym floors 60,000 60,000 - - 03105 Northstar School road /parking lot design 50,000 - - 50,000 03106 KHS emergency generator 50,000 - - 50,000 03107 IRMA roof cleaning and repair 20,000 20,000 - - 03108 Borough Building additional parking 50,000 - - 50,000 03109 Borough Building air handling penthouse 10,000 - - 10,000 03110 Borough Building emergency generator 20,000 - - 20,000 03111 Borough Building security doors 8,000 - - 8,000 03117 School Upgrade /Repair Matching Grant 53,917 53,917 - - WB Community Plan Revision 33,380 - - 33,380 400 Undesignated 369,194 369,194 - - Total Borough Projects $ 3,104,714 $ 2,141,134 $ - $ 963,580 154 1 $ 120,994 Previous $ Budget 8,205 Budget - Budget 2,000 - - Budget 5,722 Budget Years Activity 26,801 FY 2004 20 FY 2005 199,990 119,994 - - FY 2006 976 FY 2007 - FY 2008 22,000 22,795 27,205 - - - - 10,000 40,000 - - - - 5,000 45,000 - - - $ 8,000 - $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 202,693 $ 339,789 $ 119,994 $ $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 400,000 - - - $ 400,000 $ - $ - $ - $ - $ - $ 400,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 120,994 $ 29,006 $ 60 8,205 2,735 - - 2,200 2,000 - - 49,278 5,722 - 48,200 26,801 - - - 20 79,996 199,990 119,994 - - 24,024 976 - - - - - - 22,000 22,795 27,205 - - - - 10,000 40,000 - - - - 5,000 45,000 - - - 2,000 8,000 - 2,353 3,583 14,064 - - - 2,000 6,000 - - - $ 267,725 $ 202,693 $ 339,789 $ 119,994 155 Project Title: Village Metals Removal Project Number: 85 Project Description: Metals Removal from the Villages Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 10,000 $ 9,419 $ 581 $ $ $ $ $ Land - - Site Investigation Land - - Design Services - - - Construction 140,000 111,575 28,425 29,006 Equipment - - Construction 10,940 10,940 6,705 Other Services Equipment - Contingency Other Services Overhead - - - Totals 7 150,000 120,994 29,006 29,006 Cost Beyond 5 -year program: None $ 2,735 $ $ $ Source of Funding: General Revenue Fund Operating Budget Effect: None Source of Funding: General Revenue Fund Operating Budget Effect: $1,000 per year from the Buildings and Grounds Fund Project Title: State Airport Improvements Project Number: 114 Project Description: Repair old float plane crash rescue area and float plane access ramp. Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 60 $ 60 $ 0 $ 1,500 $ 500 $ $ $ Land - - - Site Investigation Design Services - - - Construction 10,940 10,940 6,705 2,235 Equipment - - Other Services Contingency Overhead - - - Totals $ 11,000 $ 60 $ 10,940 $ 8,205 $ 2,735 $ $ $ Cost Beyond 5 -year program: None Source of Funding: General Revenue Fund Operating Budget Effect: $1,000 per year from the Buildings and Grounds Fund ' 1 156 Project Title: East Elementary Doorways Project Number: 130 Project Description: Install a new interior security door at East Elementary. Expenditure Category Estimated Prior Years Project Project Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 200 $ $ 200 $ 200 $ $ $ $ Land - - - Site Investigation - - Design Services - - - Construction 4,000 4,000 2,000 2,000 Equipment - - - - Other Services 5,275 5,275 Equipment Contingency - - - Overhead - - Totals $ 4,200 $ $ 4,200 $ 2,200 $ 2,000 $ $ $ Cost Beyond 5 -year program: None Source of Funding: General Revenue 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 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 6,000 $ 5,553 $ 447 $ 447 $ $ $ $ Land - - - Site Investigation Design Services - - - - Construction 49,000 43,725 5,275 5,275 Equipment - - - - Other Services Contingency Overhead Totals $ 55,000 $ 49,278 $ 5,722 $ 5,722 $ $ $ $ Cost Beyond 5 -year program: None Source of Funding: General Revenue Fund Operating Budget Effect: $10,000 per year from the Buildings and Grounds Fund 157 Project Title: Bayside Classroom Equipment Bayside Storage Addition & Engine Bay Project Number: 173 Project Description: Divider wall for classroom Addition of storage room for classroom and other equipment, Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 5,000 $ 1,035 $ 3,965 $ 3,965 $ $ $ $ Land 2004 -05 - Administration Site Investigation - - - $ 5,994 $ $ Design Services 5,000 - 5,000 5,000 - Construction 63,000 47,165 15,835 15,835 - Equipment - - - - 27,500 27,500 Other Services 2,000 2,000 2,000 Construction Contingency - - 105,000 Overhead - - - - Totals $ 75,000 $ 48,199 $ 26,801 $ 26,801 $ $ $ $ 1,250 750 Contingency Cost Beyond 5 -year program: None - - - Source of Funding: Special Revenue Fund - - - - Operating Budget Effect: None Totals $ 400,000 $ 20 $ 399,980 $ 79,996 Project Title: Bayside Storage Addition & 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 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 20,000 $ 20 $ 19,980 $ 3,996 $ 9,990 $ 5,994 $ $ Land - - - - - - Site Investigation - - - - Design Services 27,500 27,500 5,500 13,750 8,250 Construction 350,000 350,000 70,000 175,000 105,000 Equipment - - - - - Other Services 2,500 2,500 500 1,250 750 Contingency - - - - - Overhead - - - - - Totals $ 400,000 $ 20 $ 399,980 $ 79,996 $ 199,990 $ 119,994 $ $ Cost Beyond 5 -year program: None Source of Funding: Special Revenue Fund Operating Budget Effect: $10,000 per year 1 i i 1 1 1 158 Project Title: State Fair & Rodeo Water Project Project Number: 182 Project Description: Upgrade water system. Expenditure Category Estimated Prior Years Project Total Cost Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 5,000 $ $ 5,000 $ $ $ $ $ Land - - Site Investigation - - Design Services 2,000 2,000 Construction 18,000 24,024 (6,024) 976 Equipment - - - Other Services Contingency Overhead - - - Totals $ 25,000 $ 24,024 $ 976 $ 976 $ $ $ Cost Beyond 5 -year program: None Source of Funding: General Revenue Fund Operating Budget Effect: None Project Title: Bayside Underground Electrical Project Number: 00102 Project Description: Replace power pole with underground electric Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2002 -03 2003 -04 2004 -05 2005 -06 2006 -07 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: Special Revenue Fund Operating Budget Effect: None 159 Project Title: Northstar School road /parking lot design Project Number: 03105 Project Description: Design a combined playground /parking area and address drainage issues. Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 1,000 $ 1,058 $ (58) $ $ $ $ $ Land - - - Site Investigation - - - Design Services 49,000 21,737 27,263 27,205 Construction - - - - Equipment Other Services Contingency Overhead - - Totals $ 50,000 $ 22,795 $ 27,205 $ 27,205 $ $ $ $ Cost Beyond 5 -year program: None Source of Funding: General Revenue Fund Operating Budget Effect: None 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 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 1,000 $ $ 1,000 $ 200 $ 800 $ $ $ Land - - Site Investigation Design Services - - - - Construction 49,000 49,000 9,800 39,200 Equipment - - Other Services Contingency Overhead - - Totals $ 50,000 $ $ 50,000 $ 10,000 $ 40,000 $ $ $ Cost Beyond 5 -year program: None Source of Funding: Special Revenue Fund Operating Budget Effect: A 160 Project Title: Borough Building additional parking Project Number: 03108 Project Description: Construction of additional parking lot off Mill Bay Road. Expenditure Category Estimated Prior Years Project Project Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 1,000 $ $ 1,000 $ 100 $ 900 $ $ $ Land - - - - Site Investigation - - - Design Services - - - - Construction 49,000 49,000 4,900 44,100 Equipment - - - Other Services 1,800 7,200 Equipment - Contingency - - Overhead - - - - Totals $ 50,000 $ $ 50,000 $ 5,000 $ 45,000 $ $ $ Cost Beyond 5 -year program: None Overhead - Source of Funding: Special Revenue Fund - - Totals $ 10,000 Operating Budget Effect: None $ 10,000 $ 2,000 $ 8,000 $ $ $ 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 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 1,000 $ $ 1,000 $ 200 $ 800 $ $ $ Land - - - - Site Investigation Design Services - - - - Construction 9,000 9,000 1,800 7,200 Equipment - - - Other Services Contingency Overhead - - - - Totals $ 10,000 $ $ 10,000 $ 2,000 $ 8,000 $ $ $ Cost Beyond 5 -year program: None Source of Funding: Special Revenue Fund Operating Budget Effect: None 161 Project Title: Borough Building emergency generator Project Number: 03110 Project Description: Move generator from hospital to Borough Building. Expenditure Category Estimated Prior Years Project Project Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 1,000 $ 933 $ 67 $ 67 $ $ $ $ Land - - - - Site Investigation Design Services - - - - Construction 19,000 1,420 17,580 3,516 14,064 Equipment - - - - - Other Services Contingency Overhead - - - - Totals $ 20,000 $ 2,353 $ 17,647 $ 3,583 $ 14,064 $ $ $ Cost Beyond 5 -year program: None Source of Funding: Special Revenue Fund Operating Budget Effect: Project Title: Borough Building security doors Project Number: 03111 Project Description: Install security doors in hallways of KIB and KIBSD offices. Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ $ $ $ $ $ $ $ Land Site Investigation Design Services Construction 8,000 8,000 2,000 6,000 Equipment - - - Other Services Contingency Overhead - - Totals $ 8,000 $ $ 8,000 $ 2,000 $ 6,000 $ $ $ Cost Beyond 5 -year program: None Source of Funding: Special Revenue Fund Operating Budget Effect: None �I 1 162 Project Title: Womenn Bay Community Plan Revision Project Number: 03120 Project Description: Update and revise the Womens Bay Community Plan Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2001 -02 2002 -03 2003 -04 2004 -05 2005 -06 Administration $ 33,380 $ $ 33,380 $ $ $ $ $ Land - Site Investigation Design Services Construction Equipment Other Services Contingency Overhead - - Totals $ 33,380 $ $ 33,380 $ $ $ $ $ Cost Beyond 5 -year program: None Source of Funding: Operating Budget Effect: 163 CAPITAL PROJECTS Completed FY 2004 FY 2004 Fund 420 -State Capital Grant/Loan Life -to -Date Projects Additions L -T -D Budget Revenues: Interest $ S $ - S Total Revenuesli In $ - $ - $ - $ Projects: 03119 High School Swimming Pool $ $ $ S A 1 164 Previous Activity Activity �2� X200 FY2 Years Activi FY 2004 FY 2005 $ 20,000 $ S $ $ $ J _ $ 20,000 $ $ $ $ 5 $ S _ $ - - $ - $ $ - $ $ I (, Project Title: KIB Waste Management Implementation Project Number: 164 Project Description: Implementation of waste management plan developed under EVOSTC project. Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 630,000 $ 202,199 $ 427,801 $ 385,021 $ 42,780 $ $ $ Land - - - - - Site Investigation Design Services - - - - Construction 1,111,400 15,000 1,096,400 840,930 93,437 Equipment - 155,679 (155,679) - Other Services 6,354 (6,354) Contingency Overhead - - - - - Totals $ 1,741,400 $ 379,232 $ 1,362,168 $ 1,225,952 $ 136,217 $ $ $ Cost Beyond 5 -year program: None Source of Funding: State Grant Operating Budget Effect: None 166 This page is intentionally left blank. 167 CAPITAL PROJECTS Completed FY 2004 FY 2004 Fund 430 -State Capital Grants Life -to -Date Projects Additions L -T -D Budget Revenues: 1 ,741 ,400 - - 1,741 ,400 Interest Earnings $ - $ - $ $ - Clean Water Grant /DEC 50,000 50,000 - Loan Proceeds - Karluk Clean Water Project 350,000 350,000 - KIB Waste Management Implementation 1,741,400 - - 1,741,400 Anton Larsen Bay Boat Ramp 400,000 - 400,000 Oil Spill Response Equipment 400,000 400,000 - - School Repair 377,972 125,398 - 252,574 03114 CIAP Grant 189,985 189,985 - Tide Gate 10,000 - - 10,000 Chiniak Grant 20,000 - - 20,000 ADF &G Research 200,000 - 200,000 Total Revenues/TransfersIn $ 3,739,357 $ 1,115,383 $ - $ 2,623,974 Projects: 142 Clean Water Fund /Karluk $ 50,000 $ 50,000 $ $ - 164 KIB Waste Management Implement 1 ,741 ,400 - - 1,741 ,400 169 Clean Water Fund /Karluk Construction 350,000 350,000 - - 177 Anton Larsen Bay Boat Ramp 400,000 - 400,000 184 Oil Spill Response Equipment 400,000 400,000 - 00100 High School Roof Repair FY -00 _ 126,770 - - 126,770 00104 Tide Gate 10,000 - - 10,000 01100 High School Roof Repair FY01 125,398 125,398 - - 02107 ADF &G Research Study 200,000 - - 200,000 03114 CIAP Grant 189,985 189,985 - - 03116 School Upgrade /Repair 125,804 - - 125,804 03118 Chiniak Multi -use 20,000 - - 20,000 Total State Grant Projects $ 3,739,357 $ 1,115,383 $ - $ 2,623,974 I6S Previous Activity Activity Activity Activity Activity Years Activity FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 $ $ - $ $ 5 $ 330,191 1,411,209 566,475 - 110,609 141,965 7,600 2,400 4,000 16,000 - 64,991 135,009 $ 1,083,865 $ 1,706,583 $ 169 379,232 1,225,952 136,217 - 566,475 8,525 80,714 4,982 41,074 - - 8,904 1,096 - 8,904 1,096 - - 64,991 135,009 - - - 20,008 84,989 84,989 110,762 15,043 - - - - 3,895 16,105 - - $ 1,243,883 $ 1,492,797 $ 262,279 169 Project Title: KIB Waste Management Implementation Project Number: 164 Project Description: Implementation of waste management plan developed wider EVOSTC project. Expenditure Category Estimated Prior Years Project Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 630,000 $ 202,199 $ 427,801 $ 385,021 $ 42,780 $ $ $ Land - - - - - Site Investigation Design Services - - - - - Construction 1,111,400 15,000 1,096,400 840,930 93,437 Equipment - 155,679 (155,679) - - Other Services 6,354 (6,354) 10,000 - Contingency - Overhead - - - - Totals $ 1,741,400 $ 379,232 $ 1,362,168 $ 1,225,952 $ 136,217 $ $ $ Cost Beyond 5 -year program: None Source of Funding: State Grant Totals Operating Budget Effect: None $ 8,525 $ 8,525 $ $ $ $ Project Title: Anton Larsen Bay Boat Ramp Project Number: 177 Project Description: Investigate the needs for sports fishing improvements in Anton Larsen &rv. Building additional parking areas and a boat ramp. Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 25,000 $ 14,043 $ 10,957 $ $ $ $ $ Land - - Site Investigation Design Services 65,000 93,833 (28,833) Construction 470,000 458,600 11,400 8,525 Equipment 10,000 10,000 - Other Services 5,000 5,000 Contingency - - Overhead - Totals $ 575,000 $ 566,475 $ 8,525 $ 8,525 $ $ $ $ Cost Beyond 5 -year program: None Source of Funding: State Grant with Federal monies Operating Budget Effect: None t 170 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 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 20,000 $ 16,237 $ 3,763 $ 753 $ 3,010 $ $ $ Land - - - - - Site Investigation - - Design Services 60,000 64,477 (4,477) - - Construction 46,770 - 46,770 4,229 38,064 Equipment - - - - Other Services Contingency Overhead - - - - Totals $ 126,770 $ 80,714 $ 46,056 $ 4,982 $ 41,074 $ $ $ Cost Beyond 5 -year program: None Source of Funding: State Grant Operating Budget Effect: None Project Title: Tide Gate Project Number: 00104 Project Description: Install tide gate in exit culvert of Mission Lake Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 2,000 $ 2,137 $ (137) $ $ $ $ $ Land - - Site Investigation - Design Services 4,342 (4,342) Construction 8,000 2,425 5,575 1,096 Equipment - - - - Other Services Contingency Overhead - - - Totals $ 10,000 $ 8,904 $ 1,096 $ 1,096 $ $ $ $ Cost Beyond 5 -year program: None Source of Funding: State Grant Operating Budget Effect: $10,000 per year 171 Project Title: ADF &G Research Project Project Project Number: 00104 Project Description: A feasibility study to determine whether Alaska Dept. of Fish & Game offices should Balance remain in their present building or build a new building near other similar facilities. Expenditure Category Estimated Prior Years Project $ 6,934 $ 6,934 $ $ $ Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 15,000 $ 10,994 $ 4,006 $ 4,006 $ $ $ $ Land - - - - Site Investigation 10,000 - 10,000 10,000 Design Services 175,000 53,997 121,003 121,003 Construction - - - - Equipment - Other Services 162,235 19,625 Other Services 71,305 71,305 Contingency - Contingency - Overhead - - - Totals $ 200,000 $ 64,991 $ 135,009 $ 135,009 $ $ $ $ Cost Beyond 5 -year program: None $ 84,989 $ $ $ Cost Beyond 5 -year program: None Source of Funding: State Grant Operating Budget Effect: None Project Title: Coastal Impact Assitance Program (CIAP) Grant Project Number: 03114 Project Description: Assess, map,monitor and manage coastal and marine resources. Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 14,250 $ 383 $ 13,867 $ 6,934 $ 6,934 $ $ $ Land 13,500 - 13,500 6,750 6,750 Site Investigation - Design Services Construction Equipment - - - - Other Services 162,235 19,625 142,610 71,305 71,305 Contingency - - - Overhead - - - - Totals $ 189,985 $ 20,008 $ 169,977 $ 84,989 $ 84,989 $ $ $ Cost Beyond 5 -year program: None Source of Funding: Enterprise Fund Operating Budget Effect: None t 172 Project Title: FY03 School Upgrad /Repair Project Number: 03116 Project Description: Miscellaneous school repairs Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 12,580 $ 42,128 $ (29,548) $ $ $ $ $ Land - Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Site Investigation - $ (1,172) $ - Design Services 18,870 - 18,870 Construction 94,354 67,302 27,052 15,043 Equipment - 1,331 (1,331) - Other Services - Contingency - - Overhead - - - - Totals $ 125,804 $ 110,761 $ 15,043 $ 15,043 $ $ $ $ Cost Beyond 5 -year program: None - - Source of Funding: Enterprise Fund $ 16,105 $ 16,105 $ $ $ $ Operating Budget Effect: None Project Title: Chiniak Multi -use Project Number: 03118 Project Description: Repair /replace public buildings in Chiniak Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 1,000 $ 2,172 $ (1,172) $ $ $ $ $ Land - - Site Investigation Design Services - - - Construction 19,000 1,722 17,278 16,105 Equipment - - - - Other Services Contingency Overhead - - - Totals $ 20,000 $ 3,895 $ 16,105 $ 16,105 $ $ $ $ Cost Beyond 5 -year program: None Source of Funding: Enterprise Fund Operating Budget Effect: None 173 CAPITAL PROJECTS Completed FY 2004 FY 2004 Fund 490 - Enterprise Funds Capital Projects Life -to -Date Projects Additions L -T -D Budget Revenues: Landfill Closeout /Leachate Treatment $ 3,000,000 $ $ - $ 3,000,000 Transfer- Hospital 740,000 740,000 Total Revenues/Transfers In $ 3,740,000 $ - $ - $ 3,740,000 Projects: 165 Landfill Closeout /Leachate Treatment $ 3,000,000 $ $ - $ 3,000,000 03112 Hospital access and parking phase I & II 700,000 - - 700,000 03_113 Hospital Specialty Clinic roof repair /replace 40,000 - - 40,000 Total State Grant Projects $ 3,740,000 $ - $ - $ 3,740,000 174 Previous Activity Activity Activity Activity Activity Years Activity FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 $ 2,242,193 $ 757,807 $ $ $ $ 740,000 - - - - $ 2,982,193 $ 757,807 $ - $ $ - $ - $ 2,242,193 $ 378,904 $ 378,904 $ - $ $ 9,017 207,295 483,688 60,112 - - $ 2,311,323 $ 586,198 $ 862,592 $ - $ - $ 175 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 Project Description: Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 35,000 $ 36,154 $ (1,154) $ $ $ $ $ Land - - Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Site Investigation - - - $ 583 $ 175 Design Services 350,000 343,699 6,301 2,574 2,574 Construction 2,615,000 1,862,340 752,660 376,330 376,330 Equipment - - - - - Other Services 400 120 280 Construction Contingency - 665,000 199,500 465,500 Overhead - - - - Totals $ 3,000,000 $ 2,242,193 $ 757,807 $ 378,904 $ 378,904 $ $ $ Cost Beyond 5 -year program: None - Contingency Source of Funding: State Grant and Loan Overhead Operating Budget Effect: None - - - Project Title: Hospital Access and Parking Phase I & 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 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 5,000 $ 4,417 $ 583 $ 175 $ 408 $ $ $ Land - - - - Site Investigation 5,000 - 5,000 1,500 3,500 Design Services 5,000 4,600 400 120 280 Construction 665,000 - 665,000 199,500 465,500 Equipment 20,000 20,000 6,000 14,000 Other Services - - - - Contingency Overhead - - - - Totals $ 700,000 $ 9,017 $ 690,983 $ 207,295 $ 483,688 $ $ $ Cost Beyond 5 -year program: None Source of Funding: Enterprise Fund Operating Budget Effect: None 176 Project Title: Hospital Specialty Clinic roof repair /replace Project Number: 03113 Project Description: Repair /replace roof as needed on hospital Specialty Clinic. Expenditure Category Estimated Prior Years Project Total Cost Expenditures Balance 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Administration $ 1,000 $ 1,602 $ (602) $ $ $ $ $ Land - - - Site Investigation Design Services - - Construction 39,000 58,510 (19,510) Equipment - - Other Services Contingency Overhead - - Totals $ 40,000 $ 60,112 $ (20,112) $ $ $ $ $ Cost Beyond 5 -year program: None Source of Funding: Enterprise Fund Operating Budget Effect: None 177 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 Hospital Solid Waste Enterprise Kodiak Fisheries 911 Enterprise Fund Fund Research Center Service Total Beginning Retained Earnings $ (2,002,852) $ (1,403,090) $ (505,435) $ 54,093 $ (3,857,284) Revenues Collection Fees 1,620,900 - 1,620,900 Dump Fees 997,000 - 997,000 State Revenue Sharing - 40,000 40,000 PKIMC Gain 200,000 - 200,000 Rents and Royalties 720,000 1,553,835 - 2,273,835 Customer Charges - - 69,000 69,000 Interest Earnings - 51,060 - 51,060 Other 25,700 50,000 - 75,700 Amortization of grants - 598,540 397,350 - 995,890 Total Revenues and Transfers in 2,643,600 1,608,540 69,000 6,323,385 2,002,245 Total Available Funds 640,748 205,450 123,093 2,466,101 1,496,810 Expenditures Waste Collection 1,286,730 - - - 1,286,730 Waste Disposal 1,526,260 - - 1,526,260 Personnel costs - 160,365 10,500 170,865 Contracted Services - 58,500 58,500 Dorm Facility - $21,600 - 21,600 Depreciation 1,160,600 740,330 1,900,930 Debt service interest 64,000 503,300 567,300 Other 576,650 576,650 Transfers out - 1,994,560 - - 1,994,560 Total Use of Funds 2,812,990 3,219,160 69,000 8,103,395 2,002,245 Est. Retained Earnings 6/30/04 $ (2,172,242) $ (3,013,710) $ (505,435) $ 54,093 $ (5,637,294) Per GASB 33, grants are no longer amortized which has significantly reduced retained earnings in the Enterprise Funds. 179 .. PROGRAM BUDGET SUMMARY MUNICIPAL SOLID WASTE (MSW) COLLECTION AND DISPOSAL ." Program Description 4° The Kodiak Island Borough provides waste collection, waste disposal, and limited recycling services for the residents and commercial generators of the greater Kodiak urban area. A private contractor provides collection services. Individuals and commercial generators can deliver solid waste such as garbage, construction debris, scrap metal, asbestos, waste oil, medical and household hazardous wastes to the baler facility. 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, dump fees, and miscellaneous fees. Of the three categories, the collection fee generates the most revenue. Fiscal year 2004 estimates that fifty -eight percent (58%) or $1,620,900 of the revenue will come from the collection fees. Dump fees are estimated to be $997,000 or thirty -six percent (36 %) of the revenues. The miscellaneous fees make up the final six percent, (6%), or $195,090. When estimating revenues for fiscal year 2004, the population of the greater Kodiak area was considered as well as the business arena. The population figures for fiscal year 2004 show that the population has remained steady and observation of the business community reveals the same. Since the population trend remains constant, so should the revenues, therefore the budget for 2004 is relatively the same. Goal To provide a cost effective, environmentally safe waste collection, disposal, and recycling service 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 2003 -2004 • Operate the baler/landfill facility in a cost effective and safe manner • Complete the construction of the wastewater treatment facility to treat garbage and building wastewater • Complete a survey of the landfill that clearly portraits the amount of time that the present footprint can be utilized for garbage • Apply for grants that augment local closurelpost closure revenues • Acquire a solid waste permit from the ADEC ■• Significant Budget Changes No significant budget changes. M 180 MUNICIPAL SOLID WASTE 0 0 5,000 5,000 0 Contracted Services REVENUES AND EXPENDITURES 1,250,000 1,275,845 1,250,000 F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 36,730 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues Personnel Services 251,214 277,991 342,570 312,934 Collection Fees - Customer $106,485 $109,845 $101,000 $109,753 $101,000 Collection Fees - Contractor 574,066 585,676 558,000 590,316 546,000 Commercial Collection Fees 1,038,375 1,023,237 963,900 989,745 963,900 Construction Dumpsters 0 22,008 10,000 44,727 10,000 Dump Fee - Customer 442,388 659,743 546,000 585,825 546,000 Dump Fee - Contractor 291,203 285,425 306,000 281,993 306,000 Dump Fee - USCG 148,379 141,169 145,000 135,666 145,000 Fees - Junk Removal 7,915 8,147 8,500 7,243 8,500 Penalties and Interest 19,120 37,789 12,200 36,856 12,200 Recycle Efforts 3,330 0 5,000 35,993 5,000 Use of Fund Balance 0 0 116,980 0 169,390 Amortization of contributions in aid of construction 52,408 52,408 52,410 0 0 TOTAL REVENUES $2,683,668 $2,925,447 $2,824,990 $2,818,117 $2,812,990 Expenditures Waste Collection Allocated Salaries 0 0 5,000 5,000 0 Contracted Services 1,208,094 1,233,854 1,250,000 1,275,845 1,250,000 Support Goods & Services 42,510 42,729 36,730 33,970 36,730 Waste Disposal: 1 Baler Operator 1 3 3 4 Personnel Services 251,214 277,991 342,570 312,934 330,720 Employee Benefits 87,179 89,194 155,030 120,254 137,940 Contracted Services 285,131 276,463 180,000 99,880 180,000 Contributions 2,844 7,315 5,000 4,020 5,000 Support Goods & Services 641,220 622,500 735,400 876,117 757,340 Depreciation 93,714 115,255 115,260 72,189 115,260 Operating transfers 0 0 0 0 0 TOTAL EXPENDITURES $2,611,906 $2,665,301 $2,824,990 $2,800,209 $2,812,990 PERSONNEL Position: F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 Environmental Specialist 0 0 1 1 Baler /Landfill Supervisor 1 1 1 1 Baler Operator II 1 1 1 1 Baler Operator 1 3 3 4 4 TOTAL 5 5 7 7 Total Tons Entering Landfill Baled Waste, tons Scrap Metals received, tons' Asbestos, cubic yards PERFORMANCE INDICATORS F.Y. 2001 F.Y. 2002 ACTUAL ACTUAL 18,281 19,774 16,871 12,081 1,411 1,103 188 821 F.Y. 2003 F.Y. 2004 ESTIMATED PROJECTED 19,524 20,706 11,804 12,242 1,421 1,432 765 533 181 ar PROGRAM BUDGET SUMMARY HOSPITAL ENTERPRISE FUND 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 for in the lease, which provides for Providence to share, in equal amounts, any operating gains made by the hospital in the previous fiscal year. While not required to share any losses, the Borough can receive up to a maximum amount of $600,000 via this provision. For fiscal year 2004 we have conservatively estimated this revenue to be $200,000. 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 2003 -2004 • 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 Significant Budget Changes No significant budget changes. 182 HOSPITAL ENTERPRISE FUND Revenues State Revenue Sharing Interest Earnings Other PKIMC Gain Fuller Trust Proceeds Providence Lease Kodiak Island Health Care Use of Fund Balance Amortization of grants Operating Transfers In Sale of Fixed Assets TOTALREVENUES Expenditures Employee Benefits Contracted Services Support Goods & Services Depreciation Debt Service Interest Payments 1st Union Bank loan NBA FY 2000 loan Facilities loan Operating Transfers TOTAL EXPENDITURES REVENUES AND EXPENDITURES F.Y. 2001 F.Y, 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET $39,907 $39,617 $40,000 $39,084 $40,000 12,506 3,631 0 655 5,000 0 50 5,000 54,000 0 372,732 486,359 200,000 83,999 200,000 53,400 54,070 60,000 56,428 50,000 720,000 720,000 720,000 720,000 720,000 50,000 25,550 70,000 0 0 0 0 0 0 1,605,620 598,537 598,537 598,540 0 598,540 0 0 0 0 0 (186,197) 0 0 0 0 $1,660,885 $1,927,814 $1,693,540 $954,166 $3,219,160 $0 $3,039 $5,000 0 0 0 0 7,752 166,560 1,180,922 1,279,552 1,179,350 $802 $0 54,000 0 2,671 0 1,006,115 1,160,600 100,304 62,940 62,670 22,352 0 71,386 55,616 55,620 38,389 0 0 0 0 0 64,000 191,030 266,195 224,340 224,340 1,994,560 $1,543,641 $1,675,094 $1,693,540 $1,348,669 $3,219,160 183 PROGRAM BUDGET SUMMARY KODIAK FISHERIES RESEARCH CENTER Program Description 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 Administrating (NOAA) and it's National Marine Fisheries Service (NMFS). Other important tenants are the State of Alaska's Department 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. Objectives for 2003 -2004 • 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 Significant Budget Changes No significant budget changes. 184 KODIAK FISHERIES RESEARCH FACILITY REVENUES AND EXPENDITURES Expenditures RESEARCH FACILITY Personnel F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 Employee Benefits ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues 0 317 0 0 0 Interest Earnings $39,791 $55,684 $51,060 $71,875 $51,060 Rents and Royalties 1,484,927 1,497,865 1,499,570 1,538,968 1,553,835 Amortization of Grants 397,351 397,351 433,213 0 397,350 Transfer -In 0 0 0 0 0 Sale of Fixed Assets (27,071) 0 0 0 0 TOTAL REVENUES $1,894,998 $1,950,900 $1,983,843 $1,610,843 $2,002,245 Expenditures RESEARCH FACILITY Personnel $158,985 $150,582 $163,060 $159,792 $115,110 Employee Benefits 36,065 36,995 32,000 41,293 45,255 Support Goods & Services 0 317 0 0 0 Depreciation 744,001 742,970 740,330 116,511 740,330 Debt Service - Interest 535,325 519,838 503,300 503,300 503,300 Janitorial 41,088 35,066 47,000 42,443 47,000 Heating 64,784 81,581 75,000 47,016 75,000 Electrical 149,826 131,060 178,000 136,323 178,000 Plumbing 104,789 11,203 73,540 14,933 73,540 Air Conditioning 2,438 546 11,000 1,959 2,000 Elevators 1,800 2,263 2,000 2,191 2,000 Miscellaneous 49,923 57,373 124,821 84,150 199,110 Operating Transfers 0 0 0 0 0 Subtotal $1,889,023 $1,769,794 $1,950,051 $1,149,911 $1,980,645 DORM FACILITY Support Goods & Services $802 $1,124 $5,492 $0 $0 Heating 5,592 4,627 7,000 7,281 7,000 Electrical 4,765 5,246 7,500 5,109 7,500 Plumbing 2,838 3,429 3,700 5,794 3,700 Miscellaneous 2,032 2,000 10,100 4,038 3,400 $16,029 $16,426 $33,792 $22,222 $21,600 TOTAL EXPENDITURES $1,905,052 $1,786,220 $1,983,843 $1,172,133 $2,002,245 PERSONNEL Position: F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2004 Maintenance Engineer 1 1 1 1 Receptionist/Interpretive Specialist 1 1 1 1 Maintenance Worker 0 0.5 0.5 0.5 TOTAL 2 2.5 2.5 2.5 185 PROGRAM BUDGET SUMMARY 911 SERVICE 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 To provide quick and efficient emergency service response to all service subscribers. Objectives for 2003 -2004 • 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 186 911 SERVICE REVENUES AND EXPENDITURES F.Y. 2001 F.Y. 2002 F.Y. 2003 F.Y. 2003 F.Y. 2004 ACTUAL ACTUAL BUDGET ACTUAL BUDGET Revenues Customer Charges $69,078 $69,520 $69,000 $68,003 $69,000 TOTAL REVENUES $69,078 $69,520 $69,000 $68,003 $69,000 Expenditures Allocated Salaries $0 $10,500 $10,500 $10,500 $10,500 Contracted Services 30,000 72,952 58,500 60,000 58,500 TOTAL EXPENDITURES $30,000 $83,452 $69,000 $70,500 $69,000 187 APPENDIX do r s r 189 APPENDIX 2003 -2004 Personnel Summary 2000 2001 2002 2003 2004 Department Appr Approved Appro 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 3.00 3.00 3.00 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 4.25 4.00 3.00 3.00 3.00 Subtotal General Fund 28.25 28.00 27.00 27.00 27.00 Child Care Program 1.00 1.00 1.00 1.00 1.00 Buildings and Grounds 0.00 0.00 0.50 0.50 0.50 Bayside Fire Department 1.00 1.00 1.00 1.00 1.00 X Municipal Solid Waste 5.00 5.00 5.00 7.00 7.00 Kodiak Fisheries Research 2.00 2_00 2.50 2.50 2.50 Total W 37.25 37.00 37.00 39.00 39.00 do r s r 189 KODIAK ISLAND BOROUGH CLASS TITLES AND PAY RANGES ASSESSING Pay Range Assessor 24.0 Property Appraiser 19.0 Assessment Clerk II 12.0 Assessment Clerk I 10.0 CLERK'S OFFICE Borough Clerk 23.0 Deputy Clerk 17.5 Assistant Clerk 11.0 COMMUNITY DEVELOPMENT Community Development Director 24.0 Associate Planner/LRP 20.5 Associate Planner/ENF 20.5 Drafting Technician 18.5 Secretary III 11.0 ENGINEERING & FACILITIES Engineering & Facilities Director 25.0 Environmental Specialist 23.0 Solid Waste Baler/Landfill Supervisor 19.5 Maintenance Engineer -KFRC 18.5 Baler Operator II 17.5 Baler Operator I 16.0 Maintenance Worker 16.5 Secretary III 11.0 Interpretive Specialist/Receptionist -KFRC 10.5 FINANCE DEPARTMENT Finance Director 24.5 General Accountant 20.5 Revenue Accountant 20.5 Accounting Technician/Accounts Payable 15.0 Accounting Technician/Payroll 15.0 Cashier 11.0 Secretary III 11.0 Local Administrator - Child Care Assistance Program 12.0 MANAGEMENT INFORMATION SYSTEMS Programmer /Analyst 19.0 LAN Administrator 19.0 Operations Supervisor 19.0 MANAGER'S OFFICE Borough Manager Contract Administrative Assistant 15.0 Assistant Fire Chief 20.5 Kodiak Arts Council Director 16.5 190 Jiak Island Borough ELECTORATE )rganizational Chart Fiscal Year 2004 BORGUGH MAYOR _ _ _ _ _ _ BOROUGH AssEMBly Kodiak Island ' , Borough �,r BOROUGH BOROUGH BOROUGH MANAGER ATTORNEY CLERK ASSISTANT FIRE CHIEF ASSISTANT DEPUTY CLERK ADMINISTRATIVE CLERK ASSISTANT ARTS COUNCIL DIRECTOR COMMUNITY DEVELOPMENT ENGINEER W G; FACILITIES ASSESSOR FINANCEJMIS DIRECTOR DIRECTOR DIRECTOR KFRC MAINTENANCE MAINTENANCE ENGINEER WORKER ASSOCIATE PROPERTY REVENUE GENERAL PROGi PLANNER/LRP APPRAISER ACCOUNTANT ACOUNTANT AN KFRC RECEPTIONIST SECRETARY III ENVIRONMENTAL ASSOCIATE SPECIALIST ASSESSMENT O' PLANNER/ENF CLERK II ACOUNTANG S TECKACCTS. CASMER PAYABLE BALER/LANDFILL SUPERVISOR ASSESSMENT CLERKI ACOUNTANG °AL ER TECH/PAYROII T RA E T-F1 O I SECRETARY (11 �- -� Kodiak Island Borough Salary Schedule Step A B Grade 7.0 A 25,673 26,315 H 12.3427 12.6513 7.5 A 26,315 26,973 H 12.6513 12.9676 8.0 A 26,973 27,647 H 12.9676 13.2918 8.5 A 27,647 28,338 H 13.2918 13.6241 9.0 A 28,338 29,047 H 13.6241 13.9647 9.5 A 29,047 29,773 H 13.9647 14.3138 10.0 A 29,773 30,517 H 14.3138 14.6716 10.5 A 30,517 31,280 H 14.6716 15.0384 11.0 A 31,280 32,062 H 15.0384 15.4144 11.5 A 32,062 32,864 H 15.4144 15.7998 12.0 A 32,864 33,685 H 15.7998 16.1948 12.5 A 33,685 34,527 H 16.1948 16.5997 13.0 A 34,527 35,391 H 16.5997 17.0147 13.5 A 35,391 36,275 H 17.0147 17.4401 14.0 A 36,275 37,182 ' H 17.4401 17.8761 14.5 A 37,182 38,112 H 17.8761 18.3230 15.0 A 38,112 39,065 H 18.3230 18.7811 15.5 A 39,065 40,041 H 18.7811 19.2506 16.0 A 40,041 41,042 H 19.2506 19.7319 16.5 A 41,042 42,068 H 19.7319 20.2252 17.0 A 42,068 43,120 H 20.2252 20.7308 17.5 A 43,120 44,198 H 20.7308 21.2491 18.0 A 44,198 45,303 H 21.2491 21.7803 18.5 A 45,303 46,436 H 21.7803 22.3248 19.0 A 46,436 47,596 H 22.3248 22.8829 ' 19.5 A 47,596 48,786 H 22.8829 23.4550 20.0 A 48,786 50,006 H 23.4550 24.0414 20.5 A 50,006 51,256 H 24.0414 24.6424 21.0 A 51,256 52,538 H 24.6424 25.2585 21.5 A 52,538 53,851 H 25.2585 25.8900 22.0 A 53,851 55,198 ' H 25.8900 26.5373 22.5 A 55,198 56,577 H 26.5373 27.2007 23.0 A 56,577 57,992 H 27.2007 27.8807 ' 23.5 A 57,992 59,442 H 27.8807 28.5777 24.0 A 59,442 60,928 H 28.5777 29.2921 24.5 A 60,928 62,451 H 29.2921 30.0244 25.0 A 62,451 64,012 H 30.0244 30.7750 25.5 A 64,012 65,612 H 30.7750 31.5444 C 26,973 12.9676 27,647 13.2918 28,338 13.6241 29,047 13.9647 29,773 14.3138 30,517 14.6716 31,280 15.0384 32,062 15.4144 32,864 15.7998 33,685 16 1948 34,527 16.5997 35,391 17.0147 36,275 17.4401 37,182 17,8761 38,112 16.3230 39,065 18.7811 40,041 19.2506 41,042 19.7319 42,068 20.2252 43,120 20.7308 44,198 21.2491 45,303 21.7803 46,436 22.3248 47,596 22.8829 48,786 23.4550 50,006 24.0414 51,256 24.6424 52,538 25.2585 53,851 25.8900 55,198 26.5373 56,577 27.2007 57,992 27.8807 59,442 28.5777 60,928 29.2921 62,451 30.0244 64,012 30 7750 65,612 31.5444 67,253 32.3330 D 27,647 132918 28,338 13.6241 29,047 13.9647 29,773 143138 30,517 14.6716 31,280 15.0384 32,062 15.4144 32,864 15.7998 33,685 16.1948 34,527 16.5997 35,391 17.0147 36,275 17.4401 37,182 17.8761 38,112 18.3230 39,065 18 7811 40,041 19.2506 41,042 19.7319 42,068 20.2252 43,120 20.7308 44,198 21 .2491 45,303 21.7803 46,436 22.3248 47,596 22.8829 48,786 23,4550 50.006 24.0414 51,256 24.6424 52,538 25.2585 53,851 258900 55,198 26.5373 56,577 27.2007 57,992 27.8807 59,442 28.5777 60,928 29.2921 62,451 300244 64,012 307750 65,612 31 .5444 67,253 32.3330 68,934 33.1413 E F G 28,338 29,047 29,773 13.6241 13.9647 14.313 8 29,047 29,773 30,517 13.9647 14.3138 14.6716 29,773 30,517 31,280 14.3138 14.6716 15.0384 30,517 31,280 32,062 14.6716 15.0384 15.4144 31,280 32,062 32,864 15.0384 15.4144 15.7998 32,062 32,864 33,685 15.4144 157998 16 1948 32,864 33,685 34,527 153998 16.1948 16,5997 33,685 34,527 35,391 16.194 8 16.5997 17,0147 34,527 35,391 36,275 165997 17 014 7 17.4401 35,391 36,275 37,182 17.0147 17.4401 17.8761 36,275 37,182 38,112 17.4401 17.8761 18.3230 37,182 38,112 39,065 178761 18.3230 18,7811 38,112 39,065 40,041 18.3230 187811 19.2506 39,065 40,041 41,042 18.7811 19.2506 19.7319 40,041 41,042 42,068 19.2506 19.7319 20.2252 41,042 42,068 43,120 19.7319 20.2252 20.7308 42,068 43,120 44,198 20.2252 20.7308 21.2491 43,120 44,198 45,303 20.7308 21.2491 21.7803 44,198 45,303 46,436 21.2491 21.7803 22.3248 45,303 46,436 47,596 21.7803 22.3248 22.8829 46,436 47,596 48,786 22.3248 22.8829 23.4550 47,596 48,786 50,006 22.8829 23.4550 24.0414 48,786 50,006 51,256 23.4550 24.0414 24.6424 50,006 51,256 52,538 24.0414 24.6424 25.2585 51,256 52,538 53,851 24.6424 25.2585 25.8900 52,538 53,851 55,198 25.2585 25.8900 26.5373 53,851 55,198 56,577 25.8900 26.5373 27.2007 55,198 56,577 57,992 26.5373 27.2007 27.8807 56,577 57,992 59,442 27.2007 27.8807 28.5777 57,992 59,442 60,928 27.8807 28.5777 292921 59,442 60,928 62,451 28.5777 29.2921 30.0244 60,928 62,451 64,012 29.2921 30.0244 30.7750 62,451 64,012 65,612 30.0244 30.7750 31.5444 64,012 65,612 67,253 30.7750 31.5444 32.3330 65,612 67,253 68,934 31.5444 32.3330 33.1413 67,253 68,934 70,657 32.3330 33.1413 33.9698 68,934 70,657 72,424 33.1413 33.9698 34.8190 70,657 72,424 74,234 33.9698 34.8190 35.6895 H 30,517 14.6716 31,280 15.0384 32,062 15.4144 32,864 15.7998 33,685 16.1948 34,527 16.5997 35,391 17.0147 36,275 17.4401 37,182 17 8761 38,112 18.3230 39,065 18.7811 40,041 19.2506 41,042 19.7319 42,068 20.2252 43,120 20 7308 44,198 21 .2491 45,303 21 7803 46,436 22.3248 47,596 22 8829 48,786 23.4550 50,006 240414 51,256 24.6424 52,538 25.2585 53,851 25.8900 55,198 26.5373 56,577 27.2007 57,992 27.8807 59,442 28 5777 60,928 29.2921 62,451 30.0244 64,012 30.7750 65,612 31 .5444 67,253 32.3330 68,934 33.1413 70,657 33.9698 72,424 34.8190 74,234 35.6895 76,090 36.5817 1 31,280 15.0384 32,062 15,4144 32,864 15.7998 33,685 16.1948 34,527 16.5997 35,391 17 0147 36,275 17,4401 37,182 17.8761 38,112 18.3230 39,065 1 8.7811 40,041 19.2506 41,042 19.7319 42,068 20.2252 43,120 20.7308 44,198 21.2491 45,303 21 7803 46,436 22.3248 47,596 22.8829 48,786 23.4550 50,006 240414 51,256 24.6424 52,538 25.2585 53,851 25 -8900 55,198 26.5373 56,577 27.2007 57,992 278807 59,442 28.5777 60,928 292921 62,451 300244 64,012 30.7750 65,612 31.5444 67,253 32.3330 68,934 33 1413 70,657 33.9698 72,424 34.8190 74,234 35 6895 76,090 36.5817 77,992 37.4962 J K L M 32,062 32,864 33,685 34,527 15.4144 15.7998 16.1948 16.5997 32,864 33,685 34,527 35,391 15.7998 1 6. 1948 16,5997 17.0147 33,685 34,527 35,391 36,275 16.1948 16.5997 17.0147 17.4401 34,527 35,391 36,275 37,182 16.5997 17.0147 17.4401 17.8761 35,391 36,275 37,182 38,112 17.0147 174401 17.8 7 61 18.3230 36,275 37,182 38,112 39,065 17.4401 17.8761 18.3230 18.7811 37,182 38,112 39,065 40,041 17.8 761 183230 18.7811 19.2506 38,112 39,065 40,041 41,042 18,3230 18.7811 19.2506 19.7319 39,065 40,041 41,042 42,068 18.7811 19.2506 19.7319 20.2252 40,041 41,042 42,068 43,120 19.2506 19.7319 20.2252 20.7308 41,042 42,068 43,120 44,198 19.7319 20.2252 20.7308 21.2491 42,068 43,120 44,198 45,303 20.2252 20.7308 21.2491 21.7803 43,120 44,198 45,303 46,436 20.7308 21.2491 21.7803 22.3248 44,198 45,303 46,436 47,596 21.2491 21.7803 22.3248 22.8829 45,303 46,436 47,596 48,786 21.7803 22,3248 22.8829 23.4550 46,436 47,596 48,786 50,006 22.3248 22.8829 23.4550 24.0414 47,596 48,786 50,006 51,256 22.8829 23.4550 24.0414 24.6424 48,786 50,006 51,256 52,538 23.4550 24.0414 24.6424 25.2585 50,006 51,256 52,538 53,851 24.0414 24.6424 25.2585 25.8900 51,256 52,538 53,851 55,198 24.6424 25.2585 25.8900 26.5373 52,538 53,851 55,198 56,577 25.2585 25.8900 26.5373 27.2007 53,851 55,198 56,577 57,992 25.8900 26.5373 27.2007 27.8807 55,198 56,577 57,992 59,442 26.5373 27.2007 27.8807 28.5777 56,577 57,992 59,442 60,928 27.2007 27.8807 28.5777 29.2921 57,992 59,442 60,928 62,451 27,8807 28.5777 29.2921 30.0244 59,442 60,928 62,451 64,012 28.5777 29.2921 30.0244 301750 60,928 62,451 64,012 65,612 29.2921 30.0244 30.7750 31,5444 62,451 64,012 65,612 67,253 30.0244 30.7750 31.5444 32.3330 64,012 65,612 67,253 68,934 30.7750 31.5444 32.3330 33.1413 65,612 67,253 68,934 70,657 31.5444 32.3330 33.1413 33.9698 67,253 68,934 70,657 72,424 32.3330 33.1413 33.9698 34.8190 68,934 70,657 72,424 74,234 33.1413 33.9698 34.8190 35.6895 70,657 72,424 74,234 76,090 33.9698 34.8190 35.6895 36.5817 72,424 74,234 76,090 77,992 34.8190 35.6895 36.5817 37.4962 74,234 76,090 77,992 79,942 35.6895 36.5817 37.4962 38.4336 76,090 77,992 79,942 81,940 36.5817 37.4962 38.4336 39.3944 77,992 79,942 81,940 83,989 37.4962 38.4336 39.3944 40.3793 79,942 81,940 83,989 86,089 38.4336 39.3944 40.3793 41.3888 1 191 KODIAK ISLAND BOROUGH MAYOR AND ASSEMBLY MAYOR Gabrielle LeDoux 219 Mill Bay Road Kodiak, AK 99615 ASSEMBLY MEMBERS Deputy Mayor Robin Heinrichs 377 Neva Way Kodiak, AK 99615 Tom Abell P.O. Box 2224 Kodiak, AK 99615 Tuck Bonney P.O. Box 2265 Kodiak, AK 99615 Pat Branson P.O. Box 3888 Kodiak, AK 99615 Greg Razo P.O. Box 4186 Kodiak, AK 99615 Wayne Stevens 1719 Selief Lane Kodiak, AK 99615 Nancy Wells P.O. Box 1814 Kodiak, AK 99615 BOROUGH MANAGER Patrick Carlson 710 Mill Bay Road Kodiak, AK 99615 Phone: (907) 486 -9300 Fax: (907) 486 -9374 BOROUGH CLERK Judith Neilsen, 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 Expires 2004 111 2005 2005 2004 2003 2003 2005 193 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. Approximately 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. Tourism continues to grow in Kodiak with an increased number of visitors each year. To accommodate this demand, construction of fishing lodges, bed and breakfast accommodations and recreational facilities has increased along with an increase in charter boat and guide operations. There has also been an increase in the number of cruise ships visiting Kodiak in the 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 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. The preliminary unemployment rate at June 30, 2003 is 10.0%, compared to 17.7% at June 30, 2002 and 10.4% at June 30, 2001. 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 local unemployment rate has fluctuated from 3.1% to 22.4% over the last ten years, but the overall average has been 9.5%. The assessed value of real and personal property in the Kodiak Island Borough rose from $617,779,056 in fiscal year 1995 to $808,291,775 in fiscal year 2004, an increase of more than 30% 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. M .I 194 DEMOGRAPHIC STATISTICS KODIAK, ALASKA Last Ten Fiscal Years Fiscal Year Population (a) 1994 15,245 1995 15,575 1996 15,400 1997 14,058 1998 14,181 1999 13,848 2000 13,989 2001 13,913 2002 14,167 2003 13,852 Sources. (a) per Borough Community Development Department (b) State of Alaska, Dept of Education (c) Department of Labor, Anchorage School Enrollment (b) 2,748 2,711 2,872 2,862 2,851 2,798 2,810 2,774 2,820 2,742 195 Unemployment Rate (c) 9.4% 11.2% 13.7% 7.7% 8.2% 6.8% 7.2% 9.5% 8.9% 10.0% KODIAK ISLAND BOROUGH MISCELLANEOUS STATISTICAL DATA Last Ten Fiscal Years Land area - square miles Miles of improved street Building permits: Permits issued Value of buildings (thousands) Fire Protection: Number of fire stations Number of employees Police Protection: none Recreation: Parks (number of acres) Facilities: Number of playgrounds Number of swimming pools Public Education: Number of schools Kodiak Area Elementary Kodiak Area Middle School Kodiak Area High School Village Schools (a) Number of support personnel (b) Number of teachers (d) Number of students Number of Municipal Employees Elections: Number of registered voters Number voting in last election Percent of registered voters (a) The majority of Village Schools are grades K -12 (b) All non - teaching employees. 1994 1995 1996 1997 7,130 7,130 7,130 7,130 21.6 21.6 21.6 21.6 96 218 201 148 4,740 10,360 11,728 7,822 2 2 2 2 1 1 1 1 223 223 224 224 15 15 16 16 1 1 1 1 3 3 4 4 1 1 1 1 1 1 1 1 9 9 9 9 180 180 104 (c 101 191 195 199 199 2,748 2,711 2,872 2,862 64 65 65.5 61.5 7,061 7,382 8,217 9,350 2,634 2,113 1,471 2,120 37% 29% 18% 23% 196 1998 1999 2000 2001 2002 2003 7,130 7,130 7,130 7,130 7,130 7,130 21.6 21.6 25.4 25.4 25.6 1 182 192 210 231 220 213 24,302 15,007 11,806 12,882 11,934 14,623 2 2 2 2 2 2 1 1 1 1 1 1 224 224 224 224 223 223 16 16 16 16 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 8 8 7 7 156 163 n/a n/a 136.76 136.76 202 208 n/a n/a 195.61 195.61 2,851 2,798 2,810 2,774 2,821 2,821 42.75 37.25 37 37 39 39 9,957 10,389 10,100 10,421 10,085 10,085 2,076 1,972 3,861 2,521 2,914 2,914 21% 19% 38% 24% 29% 29% (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. 197 PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS KODIAK, ALASKA Last Ten Fiscal Years Estimated actual value of real property " Nontaxable real property values based on Borough Assessing records from Kb Systems Source: Borough Assessing records, City of Kodiak building department and local bankers 198 CONSTRUCTION PROPERTY VALUE' Commercial Residential Deposits Fiscal No. of No, of in Local Year Permits Value Permits Value Banks Commercial Residential Nontaxable 1994 45 2,947,984 146 5,037,061 98,970,444 148,156,300 367,798,350 2,354,550,201 1995 59 6,055,321 159 4,305,352 103,838,289 155,755,000 382,872,500 2,404,513,974 1996 41 3,862,599 160 7,864,907 108,116,331 157,911,064 391,545,900 2,404,872,414 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 200347 2,915,740 166 11,707,269 129,546,701 368,951,631 585,967,545 1,990,000,000 est. Estimated actual value of real property " Nontaxable real property values based on Borough Assessing records from Kb Systems Source: Borough Assessing records, City of Kodiak building department and local bankers 198 PROJECTED ASSESSED VALUES Years 1994 - 2003 are actual, with projection through 2008 $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 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 PROJECTED POPULATION 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 14,181 14.058 19848 13,989 13,913 13,852 _ 14,167 13,409 13,379 13,462 13.341 13254 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 199 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 PROJECTED RAW FISH TAX Years 1994 -2003 are actual, with projection through 2108 994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Projected State Aid Years 1994 - 2003 are actual, with projection through 2008 350,000 300,000 250,000 200,000 150,000 100,000 50,000 200 1 1 i 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Instate Revenue Sharing OSate Communities GLOSSARY 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. 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. 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). CAPITAL OUTLAY - Expenditures that result in the acquisition of items such as tools, desks, machinery, and vehicles costing more than $500 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 201 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. 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. 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 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 202 specific purpose funds. The primary sources of revenue for this fund are local taxes and federal and state revenues. 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. 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. 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 203 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 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. 204 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 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. 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. 205