HomeMy WebLinkAboutNorth Slope Borough - Public Financial Report2 0 2 1POPU L A R A N N U A LFINANCIAL R E PO R T
NORTH SLOPE BORO UGH, ALASKA
NO R T H S LO PE B O R O U G H , A LASK A
A Y EAR O F ACCO MP LI SHM EN TS
For the fiscal year ended June 30, 2021
N O R T H S L O PE B O R O U G H P O P U L A R A NN U A L F I N A N C I A L R E P O R T 2 0 2 1PAGE 0 1
MAYOR
Harry K. Brower, Jr.
ASSEMBLY
John Hopson, Jr., President
Vernon Edwardsen, Vice President
Lars Nelson
Crawford Patkotak
Doreen Ahgeak Lampe
Trina Paul
Eva Kinneeveauk
Thomas Napageak, Jr.
Herman L. Ahsoak
William "Bill" Tracey, Sr.
Jerry Sikvayugak
02 Message from the Mayor
03 About this Report
04 About the Borough
05 2021 Financial Highlights
06 Investment Portfolio
08 Where the Borough's Money Comes From
10 Where the Money Goes
12 Assets and Liabilities
14 Revenues and Expenditures
15 Net Position
16 Debt Service / Outstanding Bond Profile
17 Other Financial Information
18 Financial Planning & Policies
20 Major Initiatives
21 Awards
22 North Slope Borough Area Map
I N T H IS R E P O RT
ELE CTED OFFICIALS
BOROUGH
DEPARTMENTS
Assembly
Mayor's Office
Administration & Finance
Law Department
Planning & Community Services
Inupiat History, Language & Culture
Housing
Human Resources
Health & Social Services
Wildlife Management
Police Department
Fire Department
Search & Rescue
Public Works
A hunter watching for bowhead whalesduring the spring hunt in Utqiagvik, AK.
N O R TH S L O P E B O R O U G H P O P U L A R A N N U A L F I N A N CI A L R E P O R T 2 0 2 1
I take this opportunity to present you with the North
Slope Borough's (Borough) Popular Annual Financial
Report (PAFR) for the year ended June 30, 2021. The
intent of this report is to increase awareness throughout
our communities of the financial condition of the
Borough. As such, this report is written in a manner that
will summarize and communicate, in a user-friendly
manner, the Borough's financial position. I am pleased to
report the Borough has received the Certificate of
Achievement for Excellence in Financial Reporting for
the thirty-eighth consecutive year. This certificate is
issued by the Government Finance Officers Association
(GFOA).
In addition to providing financial information, it is
important to outline and demonstrate the vast range of
services the Borough provides in maintaining healthy
communities in the unique and vibrant environment of
the North Slope.
Financial information within this report is derived
primarily from the Borough's 2021 Annual
Comprehensive Financial Report (ACFR), which is
prepared and conforms with Generally Accepted
Accounting Principles (GAAP).
Thank you for taking the time to review our 2021 PAFR.
We welcome any feedback, comments, or concerns
regarding the information included in this report.
Sincerely,
Harry K. Brower, Jr.
Mayor
P A G E 0 2
A MESSAGE FRO M THE MAYOR
TO THE RESIDENTS OF THE NORTH SLOPE BOROUGH
Harry K. Brower, Jr.
Mayor
A B O U T T H I S R E P O R T
Although this report is primarily based on the Borough's 2021 ACFR, this report is not
prepared in accordance with GAAP. Only the financial data for the general government is
included in this report and the information is presented in a summarized manner and certain
financial statements and note disclosures required by GAAP are omitted. More detailed
information is provided in the 2021 ACFR. A copy of this PAFR as well as the Borough's 2021
ACFR, which is prepared and conforms with GAAP, are located on the Borough's website at
www.north-slope.org, and linked under Financial and Budget Reports.
P A G E 03 N O R T H SL OP E B O R O U G H P O P U LAR AN NU A L F I N A N C I A L R E P O R T 2 0 2 1
Nuiqsut, AK
P A G E 0 4
ABOUT THE BOROUGH
The Borough encompasses an area of
approximately 94,000 square miles in northern
Alaska, north of the Arctic Circle. It extends 650
miles east from Point Hope on the Chukchi Sea to
the Canadian Border and 225 miles south from
Point Barrow, the most northern point in the state.
Prudhoe Bay, the largest oil field in the United
States, is located in the northeastern portion of the
Borough. It is also the origination point of the 800-
mile Trans-Alaskan pipeline, which terminates at
the City of Valdez on Prince William Sound.
Most of the Borough’s 8,975 permanent residents
live in eight communities, the largest of which is
Utqiagvik, which also serves as the Borough seat
of government. Another 8,949 people are counted
as residents because they work at least half of the
calendar year in the North Slope oil fields.
The Borough was incorporated on July 1, 1972,
and on April 30, 1974, it adopted its Home Rule
Charter, which allows it to exercise any
legal governmental power in addition to its
mandatory powers of taxation, property
assessment, education, and planning and
zoning services. The legislative power of the
Borough is vested in an eleven-member
assembly body, elected to staggered three-
year terms. The Borough’s executive and
administrative powers are vested in a mayor,
limited to two consecutive three-year terms.
The Borough provides a full range of services
including health clinic facilities and services,
housing, heating fuel supply, police and fire
protection, search and rescue services, the
construction and maintenance of roads and
other infrastructure, sewers and sewage
treatment, light, and power. The Borough also
is financially accountable for a legally separate
school district and a legally separate college,
both of which are reported separately within
the Borough’s financial statements.
Assessed Value 1/1/21
Oil and Gas
Local
Tax Levied in FY21 & Collected in FY22
Tax Levied
Tax Collected
Outstanding Debt
GO Bonds
Bond Premiums
Demographics
Population
North Slope Borough
Oil Field Workers
BOROU GH FA CTS
Demographics (continued)
School Enrollment
Unemployment Rate
Public Safety
Police Stations
Police Patrol Units
Fire Stations
Fire Trucks
Helicopters
Pilatus
$21,916,942,817
$20,866,357,530
$1,050,585,287
$394,285,289
$392,500,778
$188,305,000
16,824,154
17,924
8,975
8,949
2,266
6.7%
9
71
9
20
2
1
N O R TH S L O P E B O R O U G H P O P U L A R A N N U A L F I N A N CI A L R E P O R T 2 0 2 1
F I N A N C I A L H IG H L I G H T S
The Borough's total net position
increased by $322,991,138 to
$3,064,631,934 for FY21.
At the end of FY21, the Borough's
governmental funds reported
combined ending fund balances of
$1,492,202,990 an increase of
$280,075,733 in comparison with the
prior year. The net increase is
primarily due to several factors,
including increased investment
earnings and insurance proceeds.
Investment balance in the Permanent
Fund increased by approximately
$255 million due to favorable market
conditions including contributions
into the Fund during FY21 of $16
million, as well as no transfers out of
the Fund.
At the end of FY21, unassigned fund
balance for the General Fund was
$108,022,916 or 26% of total General
Fund expenditures.
The Borough's governmental
activities long-term liabilities
decreased by approximately $13
million in the current year mainly as a
result of a $9.6 million decrease in
landfill closure and postclosure care
liabilities, as well as a reduction in
overall bond debt of $5.3 million.
The Borough's primary government
reported available cash and
investments with central treasury at
$906,380,544, an increase of
$14,917,855 from prior year. This is
mainly due to insurance recoveries
received.
P A G E 05 N O R T H SL OP E B O R O U G H P O P U LAR AN NU A L F I N A N C I A L R E P O R T 2 0 2 1
K-Pad, Nuiqsut, AK
P A G E 0 6
OPERATING INVESTMENT PORTFOLIO
Investments are reported at fair value.
Certain Investments of the Permanent Fund
are deposited or invested in individual
segregated bank accounts. Moneys of all
other funds are maintained or invested in a
common group of bank accounts.
Collectively, these common bank accounts
and investments represent the central
treasury and each fund whose moneys are
included in the central treasury has equity
therein.
OPERATING I NVESTMENT
PORTFOL IO
CENTR AL TREASU RY
The Borough does not have a formal
Investment policy that limits investment
maturities as a means of managing its
exposure to fair value losses arising from
increasing interest rates. The Borough
places no limit on the amount it may invest in
any one issuer; however, no more than 60%
of the Permanent Fund may be invested in
nondomestic investments.
$ 402,698,299
11,364,088
3,832,867
296,645,305
107,264,851
33,730,849
16,718,150
$ 872,254,409
Central Treasury:
Money market funds
Asset-backed securities
Certificates of deposit
Debt Securities:
U.S. Treasuries
U.S. Agencies
Corporate bonds
Equity Securities:
Mutual funds
INVESTMENT TYPE FAIR VALUE
Money market funds Asset-backed securities Certificates of deposit U.S. Treasuries U.S. Agencies Corporate Bonds Mutual Funds
N O R TH S L O P E B O R O U G H P O P U L A R A N N U A L F I N A N CI A L R E P O R T 2 0 2 1
Money market funds Asset-backed securities Municipal U.S. Treasuries U.S. Agencies Corporate Bonds Mutual Funds
Common collective fund Limited partnerships
P A G E 0 7
LONG-TERM INVESTMENT PORTFOLIO
In 1984, the Borough established a
Permanent Fund to provide a long-term
source of funding for Borough services. An
amount up to 8% of the average total value
of the Permanent Fund at the end of the
previous three Fiscal Years may be
transferred annually to the General Fund.
The Charter prohibits the use of the
investments or income from the Permanent
Fund transferred to the
LONG-TERM INVESTMENT
PORTFOL IO
P ERM ANENT FUND
General Fund to pay debt service on the
Borough’s debt. Money may be appropriated
to the Permanent Fund from any source
including direct appropriations and transfer
of excess money in the General Fund at the
close of the Borough’s Fiscal Year. On June
30, 2021, the value of the Permanent Fund
investments was approximately $1 billion.
$ 36,777,759
772,621
200,818
41,425,398
27,834,284
26,276,607
170,172,633
36,955,756
701,280,482
$ 1,041,696,358
Permanent Fund:
Money market funds
Asset-backed securities
Debt Securities:
Municipal
U.S. Treasuries
U.S. Agencies
Corporate bonds
Equity Securities:
Mutual Funds
Common collective funds
Limited partnerships
INVESTMENT TYPE FAIR VALUE
N O R T H SL OP E B O R O U G H P O P U LAR AN NU A L F I N A N C I A L R E P O R T 2 0 2 1
F I N A N CI A L S | W H E R E T H E
M O N E Y C O M E S F R OM
Like all governments, the Borough must raise funds to pay for the services it provides to its
local residents and communities. These sources of funds, referred to as revenue, are
primarily derived from property taxes, charges for services, grants, and other related
revenues.
It is important to note that when analyzing the financial results of the Borough, we focus
primarily on the Borough’s General Fund. The General Fund is the general operating fund of
the Borough and supports the regular day-to-day operations of the Borough. It is used to
account for all revenues and expenditures of the Borough, except those required to be
accounted for in another fund (i.e. Capital Projects Funds, Enterprise Funds, and etc.). In this
section, we will discuss General Fund revenues, the largest of which are property taxes.
P A G E 0 8NORTH S L O P E B O R O U G H P O P U L A R A N N U A L F I N A N CI A L R E P O R T 2 0 2 1
Revenues
Property Taxes
Intergovernmental
Charges for Services
Investment Earnings
Economic Impact Assistance
Other
Total Revenues
2019
$ 393,299,524
15,067,758
8,640,009
14,930,037
8,378,766
7,609,989
$ 447,926,083
2018
$ 396,360,301
12,450,233
7,868,921
3,981,411
8,231,311
6,206,811
$ 435,098,988
2020
$ 398,234,519
20,873,632
8,630,328
16,876,545
9,550,000
5,667,946
$ 459,832,970
GENERAL FU ND REVENU ES
2021
$ 405,614,767
17,470,883
7,815,537
(845,514)
9,718,000
4,447,246
$ 444,220,919
Many swans and geese spend the summer in the Arctic.
P A G E 0 9
FINANCIALS | WHERE THEMONEY COMES FROM
Total General Fund Revenues decreased by
$15.6 million or 3.4% from FY20 to FY21.
Property tax revenue increased by
approximately $7.4 million from FY20 to
FY21.
GEN ERAL FUND REVE NUES SUMMARY
GENERAL F UN D R EVENUES (CONTI NUED )
Intergovernmental revenue decreased from
FY20 to FY21 by approximately $3.4 million.
Investment earnings decreased by
approximately $17.7 million from FY20 to
FY21 due to market fluctuations.
N O R T H SL OP E B O R O U G H P O P U LAR AN NU A L F I N A N C I A L R E P O R T 2 0 2 1
FI N A N C I AL S
WH E R E T H E M O N E Y G O E S
The Borough generates revenues to
provide services to the residents of our
eight villages and Prudhoe Bay. The
revenues are also used to pay for the debt
incurred from the issuance of bonds
approved by the voters for infrastructure
and capital improvements.
P A G E 1 0NORTH S L O P E B O R O U G H P O P U L A R A N N U A L F I N A N CI A L R E P O R T 2 0 2 1
GENERAL F UN D E XPENDIT UR ES
During the years ended June 30, 2021,
2020, 2019, and 2018, the Borough
expended its funds as shown below.
General Fund total expenditures
increased from FY20 to FY21 by
approximately $22.6 million or about
5.4%, primarily as a result of increased
debt service payment.
Expenditures
General Government
Public Works
Public Safety
Health & Social Services
Wildlife Management
Housing
Primary & Secondary Education
Higher Education
Debt Service
Principal retirement
Interest on long-term debt
Other-defeasance and tender
with existing resources
Total Expenditures
2019
$ 87,823,017
79,175,787
35,379,551
36,077,109
6,647,076
5,415,777
37,935,606
13,040,740
48,170,000
7,462,918
—
$ 357,127,581
2018
$ 74,995,852
85,361,453
38,331,725
34,880,418
7,533,949
—
38,763,467
13,277,643
51,765,000
10,344,566
138,906,918
$ 494,160,991
2020
$ 109,858,477
90,376,576
39,580,681
34,995,833
6,864,942
7,030,336
34,502,123
11,753,326
45,695,000
12,914,030
—
$ 393,571,324
2021
$ 103,386,394
88,866,902
40,164,839
34,910,223
6,804,125
—
42,292,818
12,752,424
75,095,000
11,959,080
—
$ 416,231,805
P A G E 1 1
FINANCIALSWHERE THE MONEY GOES
General Government expenditures are
related to the administration of the
Borough affairs. These expenses include
the mayor’s office, administration and
finance, law department, as well as
several other departments.
Public Works expenditures include
management oversight of the village
airports, village landfills, and natural gas
infrastructure. Additionally, the division
provides for the operation and
maintenance of facilities and equipment.
GENERAL F UN D E XPENDIT UR ES (CONT INUED)
N O R T H SL OP E B O R O U G H P O P U LAR AN NU A L F I N A N C I A L R E P O R T 2 0 2 1
Public Safety expenditures represent the
police force, fire department, and search
and rescue.
Health & Social Services expenditures
include health care services to all the
NSB residents.
Education includes funding for the
School District and the Ilisagvik College.
Debt Service includes payment toward
existing debt of General Obligation
bonds.
The expenditures of the General Fund are classified by the type of service provided. Below is a
summary of the function and the major departments within that function.
FI N A N C I AL S
ASS ETS, LIABILITI ES & FUND BALANCES
So far, we have concentrated on where
the Borough’s money comes from and
where the Borough’s money goes. This is
highly important and beneficial in
understanding the flow of the current
financial position and resources of the
Borough. In looking at the overall
financial position of the Borough, it’s
essential to note that the Borough uses a
modified accrual basis of accounting.
This is a combination of cash basis and
full accrual basis. Revenue is recognized
when both measurable and available.
The Borough’s General Fund fund
balance totaled approximately $163
million as of June 30, 2021, with
unassigned fund balance making up
66.2% of total General Fund fund
balance.
P A G E 12NORTH S L O P E B O R O U G H P O P U L A R A N N U A L F I N A N CI A L R E P O R T 2 0 2 1
G ENE RAL FUND A SSE TS, LIABILITIES & FUND BALANCE
Non-spendable consists of pre-paids and
inventory
Restricted includes amounts in bonded
capital projects funds, and debt service.
Committed reflects amounts that are
committed for specific purposes by formal
action of the assembly (i.e. self-insurance,
litigation, and etc.)
Assigned includes encumbrances at year-
end, as approved by the Assembly.
Unassigned consists of the remaining
amounts after applying the above
categories.
FIVE COMPONENTS
OF GENERAL FUND BALANCE
Total assets
Total liabilities
Total deferred inflows of resources
Total fund balance
Total liabilities, deferred inflows of
resources and fund balance
2019
$ 534,878,006
27,001,541
407,159,400
100,717,065
$ 534,878,006
2018
$ 470,853,001
23,650,259
403,801,938
43,400,804
$ 470,853,001
2020
$ 605,285,316
24,937,375
418,648,462
161,699,479
$ 605,285,316
2021
$ 596,373,670
25,579,706
407,523,591
163,170,373
$ 596,373,670
F I N A N C I A L S
ASSETS, LIABILITIES & F UND BALAN CES
In addition to liabilities, the Borough’s Balance Sheet reports a separate section for deferred
inflows of resources. This separate financial statement element, deferred inflows of
resources, represents a portion of fund balance that applies to future periods and so will not
be recognized as an inflow of resources (revenue) until such time as those revenues are
earned. The Governmental Funds report unavailable revenue from four sources: real
property taxes, economic impact assistance, loans, and grants. These amounts are deferred
and recognized as an inflow of resources in the period that the amounts become available.
The Borough’s assets totaled $596.4 million at the end of FY21, with cash and investments
with central treasury making up 96% of the General Fund assets. The net decrease in total
assets from FY20 to FY21 of approximately $8.9 million is primarily due to lower investment
earnings and additional debt payments.
P A G E 1 3 N O R T H SL OP E B O R O U G H P O P U LAR AN NU A L F I N A N C I A L R E P O R T 2 0 2 1
Cemetery and homes located in Nuiqsut, AK
FI N A N C I AL S
R E V E N U E S & E X PE N S E S
REVENUES VS. EXPENDITURES (GENERAL FUND)
The table below summarizes the revenue and expenditure activity of the Borough's General Fund
for the year ended June 30, 2021.
Revenues
Expenditures for Services
Debt Service
Net Other Financing Sources (Uses)
Net Increase in Fund Balance
$ 444,220,919
(329,177,725)
(87,054,080)
(26,518,220)
$ 1,470,894
The Borough maintains separate Capital
Projects Funds to account for the financial
transactions and resources used by the
Borough for the acquisition or construction
of major capital projects and related assets.
A summary of the Borough's revenue and
expenditures of the Capital Projects Fund is
provided to the right.
CAPITAL PROJECTS FUNDS
PROPRIETARY FUNDS
The Borough maintains four proprietary funds. The Borough uses enterprise funds to account for a
Prudhoe Bay solid waste disposal and water treatment facility (Service Area 10), a revolving loan fund
(Home Assistance Loan), an electric utility (Power and Light), and the Real Property Management Fund.
Beginning Capital Projects Funds Balance
Revenues
Expenditures
Net Other Financing Sources (Uses)
Net Increase in Fund Balance
$ 249,682,543
15,045,357
(94,418,144)
103,035,524
$ 273,345,280
Major Enterprise Funds
Net position, beginning of year
Operating Revenues
Operating Expenses
Non-operating Revenues (expenses)
Transfers
Capital Contributions
Net Position, End of Year
Power & Light
$ 63,971,518
8,077,670
(28,038,334)
482,080
15,402,680
___7,653,333
$ 67,548,947
Real Property
Management
$ 269,886,605
8,190,536
(2,233,209)
15,416
(2,021,135)
—
$ 273,838,213
Total
$ 424,609,193
30,487,937
(46,427,972)
1,219,746
13,381,545
_ _7,761,469
$ 431,031,918
Nonmajor
Entp. Funds
$ 90,751,070
14,219,731
(16,156,429)
722,250
—
108,136
$ 89,644,758
P A G E 1 4NORTH S L O P E B O R O U G H P O P U L A R A N N U A L F I N A N CI A L R E P O R T 2 0 2 1
G O V E R N M E N T W I D E
The government-wide financial statements are
designed to provide readers with a broad overview of
the finances of the Borough in a manner similar to a
private-sector business.
The statement of net position presents information on
all of the Borough’s assets, deferred outflows of
resources, liabilities, and deferred inflows of resources
with the difference reported as net position. Over time,
increases or decreases in net position may serve as a
useful indicator of whether the financial position of the
Borough is improving or deteriorating.
Total current and other assets increased by
approximately $283 million primarily due to
investment earnings and an increase in unexpended
bond proceeds.
Net Position represents the Borough’s
assets less liabilities.
Net Investment in Capital Assets
consists of capital assets, net of
accumulated depreciation, reduced
by the outstanding balances of
borrowings attributable to the
acquisition, construction, or
improvement of those assets.
Restricted Net Position consists of
bonded capital projects funds and the
Permanent Fund Corpus and
Permanent Fund earnings.
Unrestricted Net Position represents
the remaining net position of the
Borough after subtracting net
investment in capital assets and
restricted net position.
ACCOUNTING TERMINOLOGY
P A GE 1 5 N O R T H S L O P E B O RO U GH PO P U L A R A N N UAL F I NAN C I A L RE P O R T 2 0 2 1
STATEMENT OF NE T POSI TIO N
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
Current and other assets
Capital assets
Deferred outflows of resources
Pension and OPEB related
Total assets and deferred outflows
of resources
Long-term liabilities
Deferred inflows of resources
Other liabilities
Total liabilities and deferred inflows
of resources
Net Investment in Capital Assets
Restricted
Unrestricted
Net Position
2019
$ 1,580,195,450
1,937,870,049
28,585,577
$ 3,546,651,076
$ 389,446,129
415,811,205
38,363,163
$ 843,620,497
$ 1,886,807,815
929,898,068
(113,675,304)
$ 2,703,030,579
2018
$ 1,413,798,608
1,948,464,054
20,268,060
$ 3,382,530,722
$ 349,369,950
418,202,738
32,122,181
$ 799,694,869
$ 1,874,699,252
904,519,620
(196,383,019)
$ 2,582,835,853
2020
$ 1,704,112,591
1,872,616,457
26,991,902
$ 3,603,720,950
$ 406,938,049
422,371,596
32,770,509
$ 862,080,154
$ 1,829,452,791
955,406,132
(43,218,127)
$ 2,741,640,796
2021
$ 1,987,416,127
1,899,992,059
25,825,492
$ 3,913,233,678
$ 393,298,956
413,111,217
42,191,571
$ 848,601,744
$ 1,859,730,135
1,152,569,750
52,332,049
$ 3,064,631,934
P A G E 1 6
DEBT SERVICE& OUTSTANDING BOND PROFILE
Debt service mill rate is legally set and
may not be used for any other purpose.
The Borough has unlimited statutory
taxing authority to meet its debt service.
Debt service is planned at a total mill rate
including operations and debt service of
17.99 mills.
Pursuant to the Charter, general
obligation bonds of the Borough are
secured by a pledge of the Borough’s full
faith and credit. The Borough may levy ad
valorem taxes without limitation as to
rate or amount, on property in the
Borough, subject to taxation by the
Borough, sufficient to provide for the
payment of debt. Payment is not limited
to a particular fund or source of revenue.
Permanent Fund income or transfers from
the Permanent Fund cannot be utilized to
pay debt service.
To the right is a summary of the Borough’s
existing debt profile, including annual
debt service and historical outstanding
debt. As you can see from the illustrations
to the right, the Borough has made a huge
effort over the years in reducing our
outstanding debt. This is due to
conservative long-term financial planning
and budgeting.
RESTRICTIONS
N O R TH S L O P E B O R O U G H P O P U L A R A N N U A L F I N A N CI A L R E P O R T 2 0 2 1
DEBT SERVICE AND REPAYMENT
PROFILE AS OF 6/30/2021
CIB = Capital Indexed Bonds
BAB = Build America Bonds
*
**
O T HE R F I N AN C I A L I N F O R M A T I O N
The following table sets out certain information concerning the principal property taxpayers in
the Borough in Fiscal Year 2021.
The following chart sets forth the estimated nonagricultural annual average Borough
employment by industry during calendar years 2016-2020 as reported by the Alaska
Department of Labor and Workforce Development.
P A G E 1 7 N O RT H S L O P E BO R O U G H P O P UL A R A N N U A L F I N A N C I A L R E P OR T 2 0 2 1
COMPANY
Hilcorp North Slope LLC
ConocoPhillips Alaska, Inc.
Alyeska Pipeline Services Co.
ExxonMobil Corporation
ENI US Operating
Doyon Drilling Inc.
Arctic Slope Regional Corporation
Nabors Alaska Drilling
Worley Equipment Inc.
Ukpeagvik Inupiat Corp.
Total Tax Levy
TYPE OF BUSINESS
Oil & Gas Producer
Oil & Gas Producer
Pipeline Transportation
Oil & Gas Condensate Producer
Oil & Gas Producer
Oilfield Services
Commercial Property
Oilfield Services
Oilfield Services
Commercial Property
ASSESSED VALUE
$ 7,274,248,040
6,629,899,064
2,227,000,800
2,178,238,220
1,670,366,990
191,393,540
154,570,959
104,172,070
98,239,730
97,611,770
$ 20,625,741,183
TAX LEVY
$ 130,863,722
119,271,884
40,063,744
39,186,506
30,049,902
3,443,170
2,780,732
1,874,056
1,767,333
1,756,036
$ 371,057,085
% OF TOTAL
TAX LEVY
33.19
30.25
10.16
9.94
7.62
0.87
0.71
0.48
0.45
0.45
94.12%
Industrial Classification
Natural Resources and Mining
Construction
Trade, trans and utilities
Information
Financial activities
Professional and business services
Educational and health services
Leisure and hospitality
Other services
Federal government
State government
Local government
Total Average Employment
Avg. Empl.
4,995
99
604
54
77
1,643
483
547
139
19
57
2,033
10,750
% of Total
46.5%
0.9%
5.6%
0.5%
0.7%
15.3%
4.5%
5.1%
1.3%
0.2%
0.5%
18.9%
100.0%
2020
Avg. Empl.
7,419
214
607
52
98
1,973
440
643
137
21
58
2,061
13,723
% of Total
54.1%
1.6%
4.4%
0.4%
0.7%
14.3%
3.2%
4.7%
1.0%
0.2%
0.4%
15.0%
100.0%
2016
Avg. Empl.
6,293
146
589
55
73
1,879
449
676
115
20
58
2,069
12,422
% of Total
50.7%
1.2%
4.7%
0.4%
0.6%
15.1%
3.6%
5.4%
0.9%
0.2%
0.5%
16.7%
100.0%
2017
Avg. Empl.
6,016
106
582
54
73
1,580
473
671
116
19
56
2,157
11,903
% of Total
50.5%
0.9%
4.9%
0.5%
0.6%
13.2%
4.0%
5.6%
1.0%
0.2%
0.5%
18.1%
100.0%
2018
Avg. Empl.
6,539
105
609
55
90
1,716
497
658
139
18
53
2,097
12,576
% of Total
52.0%
0.8%
4.8%
0.4%
0.7%
13.6%
4.0%
5.2%
1.3%
0.1%
0.4%
16.7%
100.0%
2019
F I N A N C I A L P L A N N I N G & P O L IC I E S
Long-term financial planning | The
foundation of the Borough’s financial
strength rests on conservative long-term
financial planning. Since 1993, the Borough
has used a sophisticated projection model
to create a 12-year forecast of property tax
revenues. This forecast is used to plan for
future operating and capital expenditures
as well as to insure adequate resources are
available to repay bonded debt.
The Borough’s economy is predominately
based on oil and gas development. That
means it depends on global markets and
economic conditions, the oil industry’s
investment and development options
around the world, state and federal policy,
and the success of exploration activities on
the North Slope. Many of these things are
beyond the control of the Borough;
however, the Borough has some influence in
decisions
relating to how exploration and development
activities are conducted in the region.
Relevant financial policies | The Borough
adheres to financial policies to support
strategic goals, ensure stability in service
delivery, and promote efficient use of public
funds. It is the Borough’s policy to maintain
reserve funds, which can be used to reduce
the impact of substantial revenue
fluctuations, thus providing more stable
delivery of services to Borough residents. In
the financial statements, these can be
observed as part of cash and cash equivalents
as well as the fund balance categories. As a
direct result of SB 138, the Borough was able
to establish a General Fund Operating
Contingency and Pension Reserve Fund to
address any unexpected and un-budgeted
emergencies without hampering the
Borough’s fund balance.
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Hunters wait and watch along the ice edge during the spring hunt in Utqiagvik, AK.
F I N A N C I A L P O L IC I E S
Borough’s Permanent Fund | The commitment to
investing for the future continues. For the sixth
consecutive year, the North Slope Borough
Operating Budget is balanced without any
transfer from our Permanent Fund. Historically,
the Permanent Fund transfer into the General
Fund has ranged anywhere from $16 million to
$25 million annually. Maintaining this
commitment will allow the body of the
Permanent Fund to grow to a level that will
provide for future operations of the North Slope
Borough long after the full decline of oil
production is realized. In fiscal year 2020, the
General Fund transferred $14 million and the
Enterprise Funds transferred $2 million into the
Permanent Fund, for a total of $16 million in
fiscal year 2021.
Debt management policy | The purpose of the
Debt Management Policy is to provide effective
guidelines for the issuance of bonds and other
forms of indebtedness when necessary to
finance capital construction, equipment, and
other capital items for the Borough as well as
guidelines for monitoring outstanding debt. The
intent of this policy is to assist the Borough in
determining the appropriate use of debt
financing, establish debt management goals, and
serve as a basis for maintaining and preserving
the Borough's financial health and budget
flexibility to finance future capital programs to
better meet the needs of our communities.
P A GE 1 9 N O R T H S L O P E B O RO U GH PO P U L A R A N N UAL F I NAN C I A L RE P O R T 2 0 2 1
(C ONTINUED)
Abandoned boat in Nuiqsut, AK.
M A J O R I N IT I A T I V E S
The Mayor committed the full amount of
the Borough's Economic Impact Assistance
payments toward building capacity in each
village. During fiscal year 2021, the Mayor
committed a total of $9.7 million in the form
of grants to be distributed to each village to
facilitate projects that each individual
community deems the highest priority. The
Mayor felt this would give communities the
flexibility to invest in their residents’
concerns as they see fit. During fiscal year
2022, the Mayor intends to commit a total
of $9.9 million in the form of grants to
distribute among the communities.
During fiscal year 2021, a primary focus was
to ensure an interim school was placed into
service in Kaktovik while a permanent
school was being constructed to replace the
school that burned down in 2020.
The Mayor made it a priority to ensure that
the students and the community would have
a facility as soon as possible until the
permanent school can be constructed.
To address the housing shortage of Borough
residents, the Mayor invested approximately
$5.5 million during fiscal year 2021
developing multi-family housing in Point
Hope, Point Lay, Anaktuvuk Pass, Nuiqsut,
and Atqasuk. During fiscal year 2022, the
Mayor has committed $2.025 million to
building single-family housing.
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Caribou along the Spur Road, Nuiqsut, AK.
A W AR D S
In addition to the Certificate of Achievement
for Excellence in Financial Reporting, the
Borough received its 6th award of
Outstanding Achievement in Popular Annual
Financial Reporting (PAFR). The intent of the
PAFR is to increase awareness throughout the
North Slope communities of the financial
condition of the Borough. The report is
written in a manner that summarizes and
communicates the Borough's financial position
in a user-friendly manner.
P A GE 2 1 N O R T H S L O P E B O RO U GH PO P U L A R A N N UAL F I NAN C I A L RE P O R T 2 0 2 1
The Government Finance Officers Association
of the United States and Canada (GFOA)
awarded a Certificate of Achievement for
Excellence in Financial Reporting to the
Borough for its annual comprehensive
financial report (ACFR) for the fiscal year
ended June 30, 2020. This was the 38th year
that the Borough has received this prestigious
award. In order to be awarded a Certificate of
Achievement for Excellence in Financial
Reporting, a government must publish an
easily readable and efficiently organized
annual comprehensive financial report. This
report must satisfy both generally accepted
accounting principles and applicable legal
requirements.
A Certificate of Achievement for Excellence in
Financial Reporting is valid for a period of one
year only. We believe that our current ACFR
continues to meet the Certificate of
Achievement Program's requirements and we
are submitting it to the GFOA to determine its
eligibility for another certificate.
N O R T H S L O P E B O R O U GHBOUNDARIES M A P
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NO R T H S L OP E B O RO U GH
P.O. BOX 69 | UTQIAGVIK, ALASKA 99723
907.852.0240 | WWW.NORTH-SLOPE.ORG