2011-05-27 Special Work Session Kodiak Island Borough
Assembly Special Work Session
Friday, May 27, 2011, 6 p.m., Borough Conference Room
Work Sessions are informal meetings of the Assembly where Assembly members review the upcoming regular meeting agenda
packet and seek or receive information from staff. Although additional items not listed on the work session agenda are discussed
when introduced by the Mayor, Assembly, or staff, no formal action is taken at work sessions and items that require formal
Assembly action are placed on regular Assembly meeting agenda. Citizen's comments at work sessions are NOT considered part of
the official record. Citizen's comments intended for the "official record" should be made at a regular Assembly meeting.
CITIZENS' COMMENTS (Limited to Three Minutes per Speaker)
ITEMS FOR DISCUSSION
1. Continuation of KIB FY2012 Budget Discussion
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FY12 Budget Highlights
General Fund
e; Local Educational Funding
• Operational Funding $43,251,135.
FY2012 per student funding of $4,749
• FY2011 funding per student
KPB $4,792
•
FNSB $3,175
•
Mat -Su $2,871
•
• FY2008 per student funding $4,076
• FY2005 per student funding $3,542
• Capital Projects $950,000
• Debt Service $2,413,770 of which $1,682,639 is schedule to be reimbursed by the State of
Alaska
Total funding of $46,614,905, 65.6% of Gen. Fund Expenditures — 7.07 mill rate, less sales tax of
$28,671,825 and debt reimbursement of $1,682,639; the equivalent mill rate is 2.47
c Forestry funding program ended 2 years early. Revenue loss $800k per year
o Solid Waste Program
o Operating budget of $8,909,153
o General Fund support of $8,177,751 is equivalent to 1.24 mills
s Staffing changes (pages 348 -349)
o General Fund -1.5 FTE's
o Service Areas net change of -0- FTE's
7
I ,••■•
dtJ.cati i.or�n I hilTI-iM
School District Maximum Local Contribution Actual Local Contribution Difference between Cap vs Actual Percentage
Anchorage $ 197,760,403 $ 193,215,858 $ 4,544,545 98%
Mat - Su $ 59,882,919 $ 48,347,365 $ 11,535,554 81%
Fairbanks North Star $ 61,684,971 $ 46,522,700 $ 15,162,271 75%
Kenai $ 45,872,444 $ 43,251,135 $ 2,621,309 94%
Juneau $ 25,360,224 $ 25,360,224 $ - 100%
Kodiak $ 11,013,945 $ 10,275,350 $ 738,595 93%
Ketchikan $ 10,544,142 $ 9,317,052 $ 1,227,090 88%
Sitka $ 7,035,364 $ 6,218,818 $ 816,546 88%
of FY11 Local Contribution v. Maximum Allowable
100%
90% -a
80% —
70%
60%
50%
40% —
30% ...
20%
10%
0% i ,
Anchorage Mat - Su Fairbanks North Kenai Juneau Kodiak Ketchikan Sitka
Star
School District Maximum Local Contribution Actual Local Contribution Difference between Cap vs Actual Percentage
Anchorage $ 197,760,403 $ 193,215,858 $ 4,544,545 98%
Mat - Su $ 59,882,919 $ 48,347,365 $ 11,535,554 81%
Fairbanks North Star $ 61,684,971 $ 46,522,700 $ 15,162,271 75%
Kenai $ 45,872,444 $ 43,251,135 $ 2,621,309 94%
Juneau $ 25,360,224 $ 25,360,224 $ - 100%
Kodiak $ 11,013,945 $ 10,275,350 $ 738,595 93%
Ketchikan $ 10,544,142 $ 9,317,052 $ 1,227,090 88%
Sitka $ 7,035,364 $ 6,218,818 $ 816,546 88%
of FY11 Local Contribution v. Maximum Allowable
100%
90%
—
:
70%
60%
50%
40% —
30%
20%
10% ,. :...w - +.
0%
Anchorage Mat - Su Fairbanks North Kenai Juneau Kodiak Ketchikan Sitka
Star
School District Maximum Local Contribution Actual Local Contribution Difference between Cap vs Actual Percentage
Wrangell $ 1,620,333 $ 1,316,287 $ 304,046 81%
Bristol Bay $ 1,523,041 $ 1,056,901 $ 466,140 69%
Sitka $ 7,035,364 $ 6,218,818 $ 816,546 88%
Haines $ 1,995,051 $ 1,694,044 $ 301,007 85%
Ketchikan $ 10,544,142 $ 9,317,052 $ 1,227,090 88%
Fairbanks North Star $ 61,684,971 $ 46,522,700 $ 15,162,271 75%
Anchorage $ 197,760,403 $ 193,215,858 $ 4,544,545 98%
Kodiak $ 11,013,945 $ 10,275,350 $ 738,595 93%
% of FY11 Local Contribution v. Maximum Allowable
100%
90%
80% '
0
70 °% -A 3.
60% —
50%
,.
40 % °• .� £�R.,
F
30% «:
20% ' , , i—
0% _..
Wrangell Bristol Bay Sitka Haines Ketchikan Fairbanks North Anchorage Kodiak
Star
is
r
KIBSD Funded at _ /
Mill Rate @ 1 1.00 mills \
Renewal &
KIR KIBSD Debt Service Replacement Total
Proposed Mill Rate 0.10 9.27 1.55 0.08 1 1.00
Resource Value
Motor Vehicle Tax - 250000 - - 250,000
State Revenue Sharing 955,015 - - - 955,015
State Debt Service - - 2,265,000 - 2,265,000
Severance Tax -Fish 130.000,000 1,430,000 - - - 1 ,430,000
Severance Tax- Mining 2,000,000 22,000 - - - 22.000
Severance Tax- Logging 2,000.000 22,000 - - - 22.000
Total Severance Taxes 134,000,000 1,474900 - - 1,474,000
Other Revenues 3,372,916 - 1,465 - 3.374,381
Transfers in Facilities Fund - 90,600 400,000 - 490,600
Real Property Tax 955,533,000 95,553 8,857,791 1.481,075 76,442 10,434,419
Personal Property Tax 98,139.000 9.814 909,749 152.115 7.851 1,071,678
Total Property Taxes 1,053.672,000 105,367 9,767,540 1,633,190 84,293 11,506.097
Total Revenues 1,187,672.000 5,907,298 10,108,140 4,299,655 84.293 20,315,093
Expenditures 5,904,299 10,114,519 4.299,655 84.000 20,402,473
Revenues minus Expenditures 2,999 (6,379) - 293 (3,087)
Requested Budget 5,921 258 11,185,233 (/
Required Reduction 16,959 1,070,714 `t
Mill rate 11.00 Shortage
Severance 1.10% Total General Fund 5,921.258 11% $ 147,514 $ 16,959
Total KIBSD 45,584,836 89% $ 147,514 $ I30,554
KIBSD Funding request 11,185 3 ` 51,506,094 100% C$ 147,514
Less Budget 10,114,519) A16)
Difference
State Aid 693,000
gr__
KIBSD Use of fund Balance? : / - 377,7 i4 _—'
Recommended Cuts I DO D
Outside audits 10.000 ✓ (l l Ir 1l[J1'[V2lll -�[ n
/
Assembly Travel 3,000 LV 1
Mayor Travel 2,000 @"----
General Administration Cont Ed 500 ✓
Manager 200 ✓
Clerk 200 I/ /V;_ UU y
Assessing
Engineering 200 /..7.- I - 1/
Assessing 200 /.... X !I / /O / I/„�j
Community Dev 200 V C\- r D l / ( l �- )
IT
Finance 259 ✓ V
16,959 l/
�� _ l i
• 1 ___--------- ._ .
A
) _ . n (
KIBSD Funded at
Mill Rate @ 10.50 mills
Renewal &
KID KIBSD Debt Service Replacement Total
Proposed Mill Rate 0.10 877 1.55 0.08 10.50
Resource Value
Motor Vehicle Tax - 250,000 - - 250.000
State Revenue Sharing 955,015 - - - 955.015
State Debt Service - - 2,265.000 - 2,265.000
Severance Tax -Fish 130.000,000 1,365,000 - - - 1,365,000
Severance Tax- Mining 2,000,000 21,000 - - - 21,000
Severance Tax-Logging 2,000,000 21,000 - - - 21.000
Total Severance Taxes 134,000,000 1,407,000 - - 1.407,000
Other Revenues 3,372,916 - 1465 - 3,374,381
Transfers in Facilities Fund - 90,600 400,000 - 490,(100
Real Property Tax 955.533,000 95.553 8.380,024 1.481.075 76,442 10,033.094
Personal Property Tax 98,139,000 9,814 860,679 152,115 7,851 1,03(1,459
Total Property Taxes 1,053,672,000 105,367 9,240.703 1,633,190 84,293 11,063,553
Total Revenues 1,187,672,000 5,840,298 9.581,303 4,299,655 84,293 19,805,549
Expenditures 5,835,849 9.585,341 4.299,655 84,000 19.804,845
Revenues minus Expenditures 4,449 (4,038) - 293 704
Requested Budget 5,921,258 1 1,185,233
Required Reduction 85,409 1,599,892
Mill rate 10.50 Shortage
Severance 1.05% Total General Fund 5,921,258 11% $ 744,481 $ 85,587
Total KIBSD 45,584,836 89% $ 744,481 $ 658,894
KIBSD Funding request 11,185.233 51,506,094 100% $744,481
Less Budget (9,585,341)
Difference 1,599,892
State Aid 693,000
KIBSD Use of fund Balance'? 906,892
Recommended Cuts
Outside audits 10,000
Assembly Travel 3.000
Mayor Travel 2,000
General Administration Cont Ed 500
Manager 200
Clerk 200
Engineering 200
Assessing 200
Community Dcv 200
IT 200
Finance 259
Legislative Reception 8,315
Board and Commissions Reception 3,500
Credit Card Fees 56,635
85,409
Capital Projects FY11 Amended Completed FY2012 FY12
Fund 469 - Renewal and Replacement Projects Budget Projects Amendments L -T -D Budget
Revenues:
Property Tax $ - $ - $ 84,000 84,000
Facilities Fund Loan 2,208,892 - 2,091,517 4,300,409
Total Revenues $ 2,208,892 $ - $ 2,091,517 $ 4,384,409
Projects:
11009 Karluk Remove UST 91,515 - - 91,515
11010 Karluk HVAC Controls 59,400 - - 59,400
11003 Chiniak Remove UST 69,156 - - 69,156
11037 Borough Building New Roof 1,190,020 - - 1,190,020
11005 East Tank 101,312 - - 101,312
11006 KMS Tank 155,849 - - 155,849
11007 KMS Concrete 277,107 - - 277,107
11008 KIB Sidewalk 118,313 - - 118,313
East Flooring 472,780 472,780
Larsen Bay old HVAC Equip 399,848 399,848
Boro Bldg Return Air Duct for 2nd floor 270,459 270,459
Peterson Flooring 265,724 265,724
Boro Bldg Exterior Paint 162,275 162,275
Larsen Bay Old HVAC Controls 146,639 146,639
East Exterior Paint 107,224 107,224
Port Lions Remove UST 82,220 82,220
Main Remove UST 69,401 69,401
Boro Bldg New Receptacles 63,107 63,107
KMS Elevator Controls 51,840 51,840
Loan Payment 84,000 84,000
Contingencies 146,220 - - 146,220
Total Borough Projects $ 2,208,892 $ - $ 2,175,517 $ 4,384,409
Capital Projects FY11Amended Completed FY2012 FY12
Fund 450 - Borough Capital Projects: Budget Projects Amendments L -T -D Budget
Revenues:
State Seismic Reimbursement $ 3,480,076 $ - $ - $ 3,480,076
Total Revenues 3,480,076 - - 3,480,076
Operating Transfers In:
Tranfer in - Building & Grounds 95,000 - - 95,000
Tranfer in - Facilities Fund - - 400,000 400,000
Total Operating Transfers In - - 400,000 400,000
Total Revenues $ 3,480,076 $ - $ 400,000 $ 3,880,076
Projects:
09011 Auditorium Roof 936,490 - - 936,490
09013 High School Fire Alarms 243,933 - - 243,933
09015 Demo Old Chiniak School 104,000 - - 104,000
09016 Akhiok Sewer Line 72,800 - - 72,800
09017 East Close(in place) & Replace UST 66,194 - 200,000 266,194
09018 Middle Sch. Close(in place) & Replace UST 66,194 - 200,000 266,194
09019 Boro. Bldg.Power Distribution Panels 55,561 - - 55,561
09020 Main Roof 50,059 - - 50,059
09021 Boro. Bldg. Sidewalk and Handrail Repairs 43,407 - - 43,407
09022 Boro. Bldg. Lighting 20,835 - - 20,835
10000 High School Parking Lot Paving 486,486 - - 486,486
10017 Chiniak Soil Remediation 95,000 - - 95,000
Contingencies 31,609 - - 31,609
Transfer to Fund 410 369,499 - - 369,499
Transfer to Fund 420 933,009 - - 933,009
Total Borough Projects $ 3,575,076 $ - $ 400,000 $ 3,975,076
I
I
KIBSD Funded at
Mill Rate @ 10.50 mills
Renewal &
KIB KIBSD Debt Service Replacement Total
Proposed Mill Rate 0.00 8.80 1.55 0.16 10.51
Resource Value
Motor Vehicle Tax - 250,000 - - 250,000
State Revenue Sharing 955,015 - - - 955.015
State Debt Service - - 2,265,000 - 2,265,000
Severance Tax -Fish 130,000.000 1,474,200 - - - 1,474,200
Severance Tax-Mining 2,000,000 22.680 - - - 22,680
Severance Tax-Logging 2,000.000 22.680 - - - 22,680
Total Severance Taxes 134,000,000 1,519,560 - - 1,519,560
Other Revenues 3.372,916 - 1,465 - 3,374,381
Transfers in Facilities Fund - 90,600 400,000 - 490,600
Real Property Tax 955,533,000 - 8,408.690 1,481,075 152,884 9,889.765
Personal Property Tax 98,139,000 - 863,623 152,115 15,702 1,015,738
Total Property Taxes 1,053,672,000 - 9,272,313 1,633,190 168,586 10,905,503
Total Revenues 1,187,672,000 5.847,491 9.612,913 4,299,655 168,586 19,760,059
Expenditures 5,839,085 9.610,237 4,299,655 168,659 19,917.636
Revenues minus Expenditures 8,406 2,676 - (73) 11,082
Mill rate 10.51
Severance 1.134 % Total General Fund 5,839,085 11% $ 526,764 $ 59,813
Total KIBSD 45,584,836 89% $ 526,764 $466,951
KIBSD Funding request 11,185,233 51,423,921 100% $ 526,764
Less Budget (9,610,237)
Differnece 1,574,996
1.00% = $ 118,767
State Aid 693,000
KIBSD Use of fund Balance? 881,996
,1
KIBSD Funded at
Mill Rate @ 1 1.00 mills
Renewal &
KID KRISII Debt Service Replacmnnl Thal y
Prnryery Mill Rate 005 9.24 I.55 1116 I1.03 300,000 15 — K � .
es
Rource Value 300.000 2,772 )
Moms Vehicle Tax - 250.00 - 250.000 300,00(1 465 I,,o
Slate Revenue Sharing 955.015 - - 955.015 300.000 48 K IC
Slate Debt Savior - - 2.265.(0(1 - 2.265.001/ 3,300
Severance Tar-lash 130.000.000 1474.&0 - - 1.474.200
Severance Tax-Mining 2.000.100 22.680 - - - 22.680 3.300 3.300
Sever Wilt Ta x -Lagging 1010,1100 22.680 - - - 22.680
Trout Severance Taxes I34,0000l 1519,560 - - 1,519.560
Other Revenues 1,372916 - 1.465 - 3374381
'('runs fees in Facia ier fund - 90,6011 400,IX0 - 490.600
Real Proudly Tax 955.533.0000 47 ,777 8.829,123 1,481.075 152884 10,357.977
PerscaM Propeny 1'an 90,139.0011 4.907 906.804 152.113 15 ,702 1.063.826
Taal Phupmy 'fairs 1053.672.00 52.664 9,735,929 1.633,190 168.586 11421,803
lhal Revenues 1.187,67100 5,900.175 10076,529 4.299,655 168.5/16 20.276,359
liurcajitures 5,89 10,077.188 4.299,655 168.659 20,444,947
Revenues minus Expend/lures 7311 (6591 - (73) 71
Mill rale 11.00 '
Severance 1.134% Tout General Fund 5,899,445 ❑a. $ 1 9,742 $ 21
'total )(IBS) 45,584,836 699 $ 89,742 $ 168,000
KIBSD Funding request 11,185,233 51.484,281 100%
Less Budget (10.077.188)
Diffemece 1.108.045
L00% = $ 118, . ! 0 (ie/P 7 °-4 A , \ f l�/
Slate Aid 693,000 i �]„N I
300.000 II
KIBSD Use of fund Balance? 415.045 300,000 2.772 E
300,000 465 ,
300,000 48
3,300 / /
g I
,ggEN c./.1 A\ \ It A SEAN PARNELL, GOVERNOR
DEPARTMENTS OF NATURAL RESOURCES AN
COMMERCE, COMMUNITY, AND ECONOMIC
DEVELOPMENT
Division of Coastal and Ocean Management
Division of Community and Regional Affairs
May 26, 2011
RE: Termination of Coastal District Funding
Dear Coastal Districts:
As you know, the Legislature adjourned the special legislative session May 14 without passing
legislation required to extend the Alaska Coastal Management Program (ACMP). The ACMP is
scheduled to sunset at 12:01 AM, Alaska Standard Time, on July 1, 2011. The federal grant and all
associated billings must be closed prior to June 30, 2011.
It is with regret that we announce the termination of ACMP funding to coastal districts after May
31, 2011. The Division of Coastal and Ocean Management (DCOM) and the Division of
Community and Regional Affairs (DCRA) jointly determined that May 31 is the last day for district
expenditures so that the tasks associated with closing out the federal grant can be accomplished by
June 30, 2011. DCRA will be providing additional guidance in coming days to address and clarify
how final reports and billings should be submitted to them.
Both of our agencies recognize that the Alaska State Legislature may reconvene for a second special
session to address coastal management. Unfortunately, there is no guarantee of legislative action or
agreement on the coastal management bill and DCOM and DCRA must proceed immediately with
the orderly shutdown of the program. If there is action and agreement on the coastal management
bill, we will advise you immediately and work to reinstate funding and provide additional guidance
as soon as possible. We recognize the hardship and burden that this will place on you as we ask you
to stop working on the ACMP and submit final reports and billings.
We have greatly valued your participation in the ACMP and have enjoyed working with you all to
successfully implement coastal management in the state.
If you have any questions, please contact Gina Shirey -Potts at (907) 465 -8788 or Ruth St. Amour at
(907) 269 - 4527.
Best wishes,
7 lJL� ikk __ i�
Randy Bates Scott Ruby
Director, DCOM Director, DCRA '1CN,
"Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans."
KODIAK ISLAND BOROUGH
WORK SESSION
Work Session of: `--0�
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