HomeMy WebLinkAboutKodiak Island Borough - Public Financial Report 1
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CURRENT OCCUPANT
«ADDRESS 1»
«CITY», «STATE» «ZIP»
Kodiak Island Borough
Finance Department
710 Mill Bay Road
Kodiak, AK 99615
2
Kodiak Island Borough
Popular Annual Financial Report
For Fiscal Year Ending June 30, 2021
Kodiak, Alaska
Government, Geographic Location & Population
The Kodiak Island Borough was incorporated in 1963 as a sec-
ond class Borough and currently operates under a manager-
form of government. The Manager is hired by the Assembly
and oversees the day-to-day business of the Borough. The
seven member Assembly, along with the Mayor, are elected
by the people. The day-to-day business of the Borough is
conducted within six departments: Manager, Clerk, Finance/
IT, Assessing, Community Development and Engineering/
Facilities.
Kodiak Island lies at the western border of the Gulf of Alaska
and is approximately 250 air miles southwest of Anchorage,
Alaska. The island is accessible only by boat or plane and is
the second largest island in the United States. In total, the
Borough encompasses 6,560 square miles and currently
serves an estimated population of 12,611.
Services
The Borough has a full range of services, including: general
government, fire protection, first-response emergency medi-
cal services, health care facilities, road and other infrastruc-
ture construction and maintenance, community and econom-
ic development and solid waste disposal. Additionally, the
Borough supports tourism development, local parks, and
cultural and recreational activities. The Borough is financially
responsible for a legally separate school district which is
reported separately within the Borough’s financial state-
ments. Additional information on this legally separate entity
can be found in the Annual Comprehensive Financial Report.
Economics
Seafood processing is by far the largest industry, generating
revenue in several categories. The Port of Kodiak has been
consistently ranked among the top ten ports in the United
States in terms of quantity and value of product delivered. In
2018, according to the National Ocean Economics Program,
the Port of Kodiak ranked fourth largest in landed weight
(390,500,000) and eighth largest in landed value
($104,400,000).
Tourism was strong through FY2019 with stable transient ac-
commodations tax revenues and cruise ship traffic. In FY2020,
tourism and cruise ship traffic sharply declined due to the
COVID-19 pandemic. There was some recovery seen in
FY2021, albeit slow.
Kodiak Island is home to the largest U.S. Coast Guard Base in
the United States, employing over 1,350 people and providing
vital services to the marine industries which are integral to
the community.
The Pacific Spaceport Complex-Alaska, a launch facility, is
capable of handling small to medium sized rockets for launch-
ing low earth orbiting satellites, as well as other military, sci-
entific and research missions.
About The Popular Annual Financial Report
The Popular Annual Financial Report (PAFR) is intended to brief the
residents of the Kodiak Island Borough on the financial standing of
their municipal government. The information in this report was
drawn from the FY2021 Annual Comprehensive Financial Report.
The annual comprehensive financial report conforms to the gener-
ally accepted accounting principles (GAAP) and includes audited
financial statements, as well as more detailed information than
presented here. Although the financial numbers in this Popular
Annual Report come from an audited source, they are presented in
this report in a condensed and unaudited format.
For copies of the reports, visit the Borough’s office located at 710
Mill Bay Road, Kodiak, Alaska, the Borough’s Facebook page or on
our website at www.kodiakak.us.
We hope you find the report to be informative. We welcome your
comments, questions and suggestions.
Dave Conrad, Interim Borough Manager
Roxanne Murphy, Borough Manager
Dora Cross, Finance Director
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For Fiscal Year Ending June 30, 2021 Kodiak Island Borough Popular Annual Financial Report
FINANCIAL STRUCTURE
The Borough maintains 33 separate funds to account for governmental services. They are generally established based upon their legal
basis and objectives. These funds are grouped into two separate categories: Governmental Funds and Proprietary Funds. This report
focuses on the funds which interests most residents : General, Education Support and Municipal Solid Waste Collection & Disposal.
GOVERNMENTAL FUNDS
(Reports the basic service activities provided by the Borough)
Governmental Fund Name Activity or Purpose of Fund
General Fund Operating fund for the Borough. Departments within the fund are: the Assembly, Assessing, Clerks, Com-
munity Development, Engineering & Facilities, Finance/IT (Information Technology) and the Manager.
Special Revenue Funds Operating funds for specific revenue sources. These include: education, facilities, tourism, emergency
planning and neighborhood service districts such as road, fire and street lighting, as well as maintenance
of Borough building and grounds.
Debt Service Fund Operating fund for the payment of general long-term debt principal, interest and other related costs.
Currently the fund services General Obligation Bonds for school related projects.
Capital Project Funds Operating fund for the acquisition or construction of major capital facilities and equipment.
BOROUGH POPULATION AND STATISTICAL INFORMATION
FY2019 FY2020 FY2021
Borough Population 13,136 13,001 12,611
Annual Unemployment Rate in the Borough 4.2% 4.4% 3.9%
Percentage of owner-occupied housing in the Borough* 59% 55% 55%
Median Gross Rent within the Borough* $1,294 $1,369 $1,458
Median household income within the Borough* $74,167 $78,281 $85,839
Percent of persons living in poverty within the Borough* 9.3% 8.2% 7.5%
KIBSD Student Enrollment 2,395 2,315 2,297
KIBSD Employees (Teachers and support personnel) 382 377 386
Number of Schools in the Borough 13 13 13
Number of Borough Employees 41 38 37
* United States Census Bureau
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For Fiscal Year Ending June 30, 2021 Kodiak Island Borough Popular Annual Financial Report
GOVERNMENTAL FUNDS
(Reports the basic service activities provided by the Borough)
Statement of Revenue, Expenditures and Changes in Fund Balance (Deficits)
Total of All Governmental Funds General
Fund
(Only)
Education
Support Fund
(Only)
FY2019 FY2020 FY2021 FY2021 FY2021
Revenues
Property Taxes $16,794,958 $16,978,718 $17,445,434 $4,293,682 $9,389,701
Severance Taxes 1,285,669 1,286,750 1,100,413 1,049,430 -
Intergovernmental 10,276,215 6,765,785 9,436,868 8,931,861 -
Services, Fees, Investments & Other miscellaneous revenue 3,740,229 3,434,448 $2,254,193 811,171 -
Total Revenues $32,097,071 $28,465,701 $30,236,908 $15,086,144 $9,389,701
Expenditures
General Government $5,308,369 $5,197,783 $4,995,157 $4,363,970 $ -
Public Safety 714,826 635,865 546,055 118,700 -
Community & Economic Devel-opment 1,183,798 885,179 907,656 832,436 -
Emergency Preparedness 14,307 4,479 5,257 5,257 -
Health & Social Services 182,900 157,500 5,257,005 5,257,005 -
Parks, Culture & Recreation 77,568 53,008 39,957 39,957 -
Service District Maintenance 569,610 786,366 647,976 - -
Primary & Secondary Education 9,970,576 10,522,544 9,443,364 50,000 9,393,364
Capital Outlay 3,083,409 1,604,709 1,195,820 - -
Debt Service 7,688,414 7,733,394 8,088,223 - -
Total Expenditures $28,793,777 $27,580,837 $31,126,470 $10,667,325 $9,393,364
Other financing sources (uses) $591,491 $1,616,718 $2,972,840 $(3,026,148) $ -
Increase (decrease) in fund bal-ance $3,894,785 $2,501,582 $2,082,978 $1,392,671 $(3,663)
Fund Balance, beginning of year, as restated 52,350,699 56,245,484 58,747,066 6,094,549 59,394
Fund Balance, at end of year $56,245,484 $58,747,066 $60,830,044 $7,487,220 $55,731
Governmental Fund Highlights:
• General Fund – Fund balance increased by $1,392,671 (22.85%). There were two main contributors to the overall increase in the
fund. 1) The fund received $461,147 more in property tax revenue due to increased tax assessments, and 2) the fund expended
$943,524 less primarily due to vacant positions.
• Education Support (Special Revenue Fund) – This fund collects tax revenue which is then paid to the School District for education
services within the Borough. There was a $1,079,180 decrease in expenditures for this fund in FY2021 compared to FY2020.
• Facilities Fund (Special Revenue Fund) – Fund balance decreased by $688,744 (1.70%). Investment income, the sole revenue
source for the fund, was $143,573 due to decreased treasury interest rates. The largest use of allowed earnings use in this fund
was a transfer of $827,316 to the Education Debt Service Fund to help cover required debt service payments the State of Alaska’s
School Bond Debt Reimbursement Program did not reimburse the Borough for.
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For Fiscal Year Ending June 30, 2021 Kodiak Island Borough Popular Annual Financial Report
PROPRIETARY FUNDS:
(Reports the business-type activities provided by the Borough)
Proprietary Fund Name Activity or Purpose of Fund
Municipal Solid Waste Collection &
Disposal
Accounts for the collection and disposal of solid waste and for the operation of the leachate
treatment plant.
Hospital Facility Accounts for the Borough-owned hospital.
Long-Term Care Center Accounts for the Borough-owned long-term care center.
Kodiak Fisheries Research Center Accounts for the Borough-owned Kodiak Fisheries Research Center.
Research Court Apartments Accounts for rent collected for the Borough-owned Research Court Apartments.
911 Services Accounts for fees collected from all phone lines for a 911 emergency system. This is a pass
through to the City of Kodiak therefore there is no fund balance retained.
Statement of Revenue, Expenses and Changes in Net Position (Deficits)
Total for All Borough Proprietary Funds Municipal Waste
Collection &
Disposal (Only)
FY2019 FY2020 FY2021 FY2021
Revenues
Total Operating Revenue $8,038,190 $7,961,329 $7,444,573 $4,125,597
Total Non-Operating Revenue 700,771 492,721 133,461 64,704
Total Revenues $8,738,961 $8,454,050 $7,578,034 $4,190,301
Expenses
Total Operating Expenses $6,605,558 $6,070,727 $7,047,151 $3,523,239
Total Non-Operating Expenses 715,826 701,087 634,762 217,841
Total Expenses $7,321,384 $6,771,814 $7,681,913 $3,741,080
Other Financial Sources (uses) $45,000 $45,000 $ - $ -
Net Position, beginning of year, as restated $49,663,803 $51,126,380 $52,853,615 $18,660,321
Net Position, end of year $51,126,380 $52,853,616 $52,749,737 $19,109,542
Proprietary (Enterprise) Funds Highlights:
• Municipal Solid Waste Collection and Disposal – Net position increased by $449,221 (2.41%) due to decreased depreciation and
pension and OPEB liabilities.
• Hospital Facilities – Net position increased by $217,595 (1.33%) due to decreased repair and maintenance expenses.
• Long-Term Care Center – Net position decreased by $110,437 (1.63%) due to increased repair and maintenance expenses.
• Kodiak Fisheries Research Center (Enterprise Fund) – Net position decreased by $653,124 (6.10%) due to decreasing lease reve-
nues and increasing repair and maintenance expenses.
• Research Court Apartments (Enterprise Fund) - Net position decreased by $7,134 (2.26%) due to increased insurance expenses.
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For Fiscal Year Ending June 30, 2021 Kodiak Island Borough Popular Annual Financial Report
SUMMARY OF DEBT SERVICE REQUIREMENTS
PROPERTY TAXES
The Assembly sets the mill rates, or the number of mills each individual taxpayer will be assessed or charged per dollar value of
property owned. A mill is one tenth of one percent of a dollar (.001). For FY2021, the Borough-wide mill rate was 10.75 which
equates to 1.075 cents of tax to be paid for each dollar of assessed property value.
In addition to the Borough-wide mill rate, mill rates are set for taxing properties within specific boundaries for specific activities. If
the taxing area has a board or committee, they submit a budget and recommended rate to the Assembly. For those properties
within the city limits, the City of Kodiak’s City Council sets the mill rate.
ASSEMBLY MEETINGS
Assembly meetings can be viewed live via internet streaming through the Borough’s website. Video recordings of previous regular
meetings and voice recordings of work sessions, along with meeting packet information is also available on the website:
http://www.kodiakak.us.
Meeting locations are contained in the meeting agendas:
Borough Building Assembly Chambers (710 Mill Bay Rd) OR Bayside Fire Dept (4606 E. Rezanof Dr.)
Public Comment Call In Numbers: Toll Free 855-482-9202 or locally 907-486-3231
R&R Projects—To fund renewal and replace-
ment project need within the Borough.
Debt Service—To fund payment of principal
and interest on the Borough’s long-term
debt.
Education Support—To fund the Kodiak Is-
land Borough School District for the State
required local minimum contribution and in-
kind costs.
General Fund—To fund the general opera-
tions of the Kodiak Island Borough.
Total Principal and
Interest Payments Due Project Description
64,655,050$ High school renovation and renewal project.
7,773,625$ Renewal and replacement for various school buildings.
4,957,975$ Acquisition and construction of school improvements including a new school pool.
3,943,775$ Planning, design and construction for the new school pool and Kodiak High School Voc/Ed classroom.
3,233,825$ Planning, design and construction for the Larsen Bay, Kodiak Middle and Kodiak High schools.
84,564,250$