Kodiak Island Borough, Alaska

KODIAK ISLAND BOROUGH, ALASKA

ANNUAL ADOPTED BUDGET

FISCAL YEAR ENDING JUNE 30, 2022

AS SUBMITTED BY

Michael Powers BOROUGH MANAGER

May 20, 2021

AMENDED AND ADOPTED BY THE BOROUGH

ASSEMBLY

June 3, 2021

BOROUGH ASSEMBLY

Mayor Bill Roberts

Assembly Members Scott Arndt Duane Dvorak Julie Kavanaugh Geoffrey Smith Dennis Symmons James Turner Aimee Williams

Table of Contents INTRODUCTION ...... 1 SPECIAL REVENUE FUNDS ...... 97 Contact information: meetings, elected officials, Summaries: service areas and boards………….. 1 Revenue Sources and Estimates ...... 98 10 Common Budget Questions ...... 5 Operational Funds: Budget Award ...... 7 Education Support ...... 102 Mission Statement, Vision Statement and Land Sales Fund – Resource Mgmt...... 104 Strategic Plan …………………………………………. 8 Buildings and Grounds Summary ...... 106 Organizational Chart & Personnel ...... 10 -Borough Building ...... 107 Community Profile and Demographics ..... 13 -Mental Health Center ...... 108 -Closed Schools ...... 109 BUDGET OVERVIEW ...... 17 -School Building Major Repairs ...... 110 Budget Message ...... 17 -Various Borough Buildings ...... 111 Budget Calendar ...... 31 -Projects Office ...... 112 Budget Process Overview ...... 32 Local Emergency Planning Committee ..... 114 Womens Bay Road Service Area ...... 116 FINANCIAL SUMMARIES ...... 35 Service Area No. 1 ...... 118 Fund Structure ...... 35 Service Area No. 2 ...... 120 Fund Matrix...... 36 Monashka Bay Road Service Area ...... 122 Fiscal Policy ...... 37 Bay View Road Service Area ...... 124 Budget Summary, All Funds ...... 41 Fire Protection Area No. 1 (Bayside FD) .. 126 Womens Bay Fire Department ...... 128 GENERAL FUND ...... 45 Airport Fire Protection District ...... 130 Summaries: Woodland Acres Streetlight Service Area 131 Revenue Sources and Estimates ...... 45 Trinity Islands Streetlight Service Area…..132 Revenue ...... 54 Mission Lake Tide Gate Service Area...... 133 Expenditures by Department...... 56 Facilities Fund ...... 134 Expenditures by Function ...... 57 Tourism Development ...... 136 Operational Departments: Commercial Passenger Vessel ...... 138 Borough Assembly ...... 58 Manager’s Office ...... 62 DEBT SERVICE FUND ...... 139 Clerk’s Office ...... 64 Legal Services ...... 66 CAPITAL PROJECT FUNDS ...... 145 Finance ...... 68 Information Technology Services ...... 70 ENTERPRISE FUNDS ...... 195 Assessing ...... 72 Solid Waste Collection and Disposal ...... 198 Engineering and Facilities ...... 76 Hospital Facilities ...... 202 Community Development...... 78 Long-Term Care Center ...... 204 Building Inspection ...... 82 Kodiak Fisheries Research Center ...... 206 Economic Development ...... 84 Research Court Apartments……………………..208 General Administration ...... 85 911 Services ...... 209 Parks and Recreation ...... 86 Emergency Preparedness ...... 88 APPENDIX ...... 211 Animal Control ...... 90 Acronyms ………………………………………………. 211 Education, Culture and Recreation ...... 92 Glossary …………………………………………………. 213 Non- Profit Funding Map: Location of Assembly Work Sessions 219 -Kodiak College and Libraries ...... 92 Mill Rates Table (Current Year) ...... 220 -Health & Social Services ...... 95 Maximum Allowable Tax Revenue ...... 221 Transfers ...... 96

INTRODUCTION

Kodiak Island Borough Fiscal Year 2022 Contact Information

Assembly Meetings Assembly meetings are held on Thursdays of each month beginning at 6:30 p.m. Regular meetings (generally held on the first and third Thursdays) can be viewed live via internet streaming or viewed as a recording which is accessible through the Borough website. Work session meetings (generally held the second and fourth Thursdays) have voice recordings which can be accessed through the borough website. Meeting agendas for meetings can be viewed on the Borough website.

Meeting locations*: Borough Building Assembly Chambers at 710 Mill Bay Road, or if COVID case counts are high, the meetings are moved to the Bayside Fire Department at 4606 E Rezanof Dr. Meeting agendas contain the meeting location. * Map of meeting locations can be found in the Appendix Meeting information: Call-in number to give public comment telephonically: 855-482-9202 or 907-486-3231 (public comment is held at beginning of the regular meetings) Borough Website: http://www.kodiakak.us click on the meeting information icon

Elected Officials Term Name Office Ends Email Phone Bill Roberts Mayor 2022 [email protected] 907-512-0762 Scott Arndt Assembly Member 2022 Call instead of email 414-791-3745 Duane Dvorak Assembly Member 2022 [email protected] 907-942-2912 Julie Kavanaugh Assembly Member 2023 [email protected] 907-942-0058 Geoffrey Smith Assembly Member 2023 [email protected] 907-942-7277 Dennis Symmons Assembly Member 2021 [email protected] 907-654-1045 James Turner Assembly Member 2021 [email protected] 206-316-0482 Aimee Williams Assembly Member 2023 [email protected] 808-397-1059

Borough Departments Department Director Email Phone

Borough Manager Michael Powers [email protected] 907-486-9302 Borough Clerk Alise Rice [email protected] 907-486-9310 Assessing Seema Garoutte [email protected] 907-486-9350 Finance / IT Dora Cross [email protected] 907-486-9323 Engineering/Facilities Dave Conrad [email protected] 907-486-9343 Community Development Vacant 907-486-9363

Fire Protection Area #1 Rebecca Nelson (acting) 907-486-4536 (Bayside Fire Department)

INTRODUCTION

Kodiak Island Borough Fiscal Year 2022 Contact Information

Boards and Commission Rosters can be found on the Borough Website

Service Areas with Active Boards

Board Chair Service Area Email Phone No Chair Bay View Road Service Paul VanDyke Fire Protection Area #1 [email protected] 907-942-2904 No Chair Monashka Bay Road Service Scott Arndt Service Area #1 Call instead of email 414-791-3745 Jason Chandler Womens Bay Service [email protected] 907-942-1976 (Fire and Road) Craig Johnson Mission Lake Tide Gate [email protected] 907-654-7712

Service Areas with Inactive Boards*

Airport Fire Protection Service Area Service Area #2 Trinity Islands Street Light Service Area Woodland Acres Street Light Service Area

*Please contact the Clerk’s Office if you are interested in serving on one of these boards.

Advisory Boards

Architectural/Engineering Review Board / Building Code Board of Appeals (as needed) Citizens Board of Equalization (BOE) Consolidation Committee Emergency Services Council Joint Building Code Review Committee (as needed) Parks & Recreation Committee Planning & Zoning Commission (P&Z) Solid Waste Advisory Board (SWAB)

INTRODUCTION WHO CAN I CONTACT FOR THESE FREQUENTLY ASKED QUESTIONS?

Assessing Department 907-486-9353 • What is the assessed value of a property? • What if I disagree about the assessed value of my property? • What if I need specific information on a property, like lot size or property lines? • What kinds of exemptions on property taxes are available? • Where can I apply for an exemption on my property taxes? • Where do I change my address for my tax statement? • Who do I notify of a property sale? • What documents are required to change the ownership of a property? • How is the assessed value of my property determined? • How Will COVID-19 affect my property value?

Clerk’s Office 907-486-9310 • Where can I put in a public information request? • Where do I go to contact the Assembly? • Where do I go to register to vote? • Where do I go to run for a Borough elected office? • Where do I vote in municipal elections? • Where do I find public meeting information? • Where can I find a list of boards and commissions?

Community Development Department 907-486-9363 • Who do I contact about planning and zoning regulations? • How do I get a zoning compliance permit? • How do I report a code violation? • Who do I contact about the animal control program? • How do I contact the Planning & Zoning Commission? • Who do I contact about the GIS program? • Who do I contact about maps? • How do I find a plat of my property?

Engineering and Facilities Department 907-486-9343 • Who do I contact about the landfill or leachate treatment plant? • Who do I contact about my garbage pickup service? • Who do I contact about ongoing or upcoming improvement projects? • Who do I contact about Borough maintained roads? • Who do I contact about Borough maintained buildings? • Who do I contact for a service area related question?

Finance Department 907-486-9323 • When are my property taxes due? • Where do I go to pay for my property taxes, severance, transient accommodations or excise taxes? • How can I pay for my property taxes, severance, transient accommodations or excise taxes? • Where can I get more information about severance, transient accommodations or excise taxes? • Where can I get a copy of the annual budget, annual popular report or annual financial report?

INTRODUCTION

WHO CAN I CONTACT FOR THESE FREQUENTLY ASKED QUESTIONS? – CON’T

Manager’s Office 907-486-9301 • Who do I contact about employment opportunities? • Who do I contact about the Borough’s website? • How do I contact the Borough manager?

Burn Permits • Bayside Fire Department – 907-486-4536 • Women’s Bay Volunteer Fire Department – 907-487-4312

Other Miscellaneous Questions • Who do I contact about City sales tax? – City of Kodiak 907-486-8650 • Who do I contact about City water/sewer service? – City of Kodiak 907-486-8650 • Who do I contact about any building, electrical or plumbing permits? – City of Kodiak 907-486-8070 (The Borough contracts with the City for permit and inspection services)

INTRODUCTION

Common Questions About the Budget

• How many employees work for the Borough and in which department? – Page 11 • Where can I find population and other demographic information about the Kodiak Island Borough? – Pages 15-16 • What is the total budget of the Borough? – Page 18 • What percentage of the budget is spent on education? – Page 26 • Does the Borough have a financial policy that guides how funds are reported, invested and audited? – Page 38 • What are the reserves (or fund balances) of the Borough? – Page 40 • How much revenue comes from property taxes? – Page 46 • What are other sources of revenue for the Borough? – Pages 47-51 • How much will road service/fire service spend in my district? – Pages 116-133 • Where can I find definitions and acronyms? – Pages 211-218

INTRODUCTION

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Government Finance Officers Distinguished Budget Presentation Award

The Kodiak Island Borough has been a participant in the Distinguished Budget Presentation Award program since FY1990. The Borough has received the Distinguished Budget Presentation Award for all of our budgets from FY1991 through FY2021. This FY2022 budget will also be submitted to the GFOA for their consideration.

Kodiak Island Borough

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.

Strategic Plan Fiscal Years 2018-2023 (last updated 03/22/2018) Purpose The Kodiak Island Borough government exists to provide effective and efficient government services within our powers and duties that will improve the quality of life in our community.

Envisioned Future 2030 Citizens have entrusted the Kodiak Island Borough government with powers that promote a vibrant, diverse, and healthy economy and community centered on Kodiak’s unique assets like our natural resources, people, and history. This includes a focus on a reasonable cost of living and a great quality of life where diverse cultures and viewpoints come together, and an engaged community of citizens who are working, living, and thriving together.

Strategic Direction 1. Encourage land and natural resources management for maximum benefit of Borough citizens. a. Review Comprehensive Plan to ensure it is current and accurate, then develop land plan consistent with the Comprehensive Plan to maximize potential for our community’s economic growth and quality of life. b. Create a long range natural resource development plan.

2. Optimize the effective use of community resources and assets through partnerships for the benefit of Borough citizens. a. Explore ways to collaborate with local governments to capitalize on community partnerships through fostering positive relationships with cities, school district, service areas, tribes and rural communities within the borough. b. Work in partnership with State and Federal Agencies. c. Promote a culture of public trust of elected officials, appointed officials, and staff through involvement of all citizens, and strive to ensure all citizens feel comfortable, empowered and desirous of participating in local government.

3. Foster responsible economic growth throughout the Borough. a. Promote economic development policies that enhance a diverse economy and business development. b. Advocate for a healthy and vibrant fisheries industry. c. Advocate for enhancement of local resources such as Kodiak based seafood and marine science and education opportunities, tourism, agriculture, energy, Pacific Space Port, mineral extraction, etc. d. Encourage options to meet the local need for housing affordable for citizens with financial capacities.

4. Promote fiscal policies that ensure stability and responsible government. a. The Borough Assembly will be prudent in deliberations on revenue required to fund Borough operations. b. Balance expenditures to revenues on an annual basis to ensure the health of our community. c. Foster public understanding of borough finances and operations. d. Periodically review the long-term solid waste plan and revise as necessary.

5. Promote efficient, effective and responsive processes reflective of a high-performing government. a. Evaluate opportunities for restructuring local government (e.g., consolidation or other options available under Alaska law). b. Understand the service area boards activities and borough’s responsibility in regards to service area boards. c. Seek ways to integrate committees in borough and city that maximize participation and capacity. d. Provide clear and concise direction to committees on an annual basis.

FY2022 Priorities (Not in Priority Order)

1. Focus on staffing structure and ensure a smooth transition for new key leaders. 2. Establish expectations and accountability for each committee, and ensure codes and roles are clear and understood by members. 3. Explore ways to collaborate with the City of Kodiak, the school district, service areas, tribes, rural communities and civic organizations within the borough. 4. Identify potential policies for adoption to enhance economic development. 5. Develop a catalog of all available land to begin the process of developing a comprehensive land plan. 6. Look into cost of securing specialist(s) to forecast and recommend the most viable economic strategies. 7. Continue to seek opportunities for restructuring or consolidation with expectations to have a report at year’s end on opportunities and progress made.

Kodiak Island Borough Personnel Summary

Budgeted FTE's Primary Department Fund FY2021 FY2022 Permanent Staff* Assessing General 5.0 4.0 Clerks General 3.0 3.0 Community Development General 5.0 3.0 Engineering & Facility General 6.0 6.0 Finance General 6.5 6.0 Information Technology General 2.5 2.5 Manager General 4.0 3.0 Land Sales Special Revenue - - Kodiak Fisheries Research Center Enterprise 1.0 1.0 Solid Waste Collection & Disposal Enterprise 9.0 9.0 Permanent Total 42.0 37.5 Temporary/Seasonal Staff Assessing General 1.0 2.0 Engineering & Facility General 1.0 1.0 Finance General 0.5 0.5 Solid Waste Collection & Disposal Enterprise 1.0 - Temporary/Seasonal Total 3.5 3.5 Grand Total 45.5 41.0

* When employees work outside of their primary department, payroll costs for that work is charged to the department or fund receiving the benefit of the employees time.

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COMMUNITY PROFILE AND DEMOGRAPHICS

Location Kodiak is the largest island in the State of Alaska and the second largest in the United States; second only to the Big Island of Hawaii. The island lies at the western border of the Gulf of Alaska, about 40 miles south of the Kenai Peninsula and approximately 250 miles south of Anchorage. Nearly two-thirds of the Borough lies in the Kodiak Archipelago, which includes Kodiak Island and several smaller outlying islands. One-third of the Borough is on the Alaska Peninsula, across the Shelikof Strait from Kodiak Island. The Borough encompasses a total of 6,560 square miles, making it slightly smaller than the state of Massachusetts. Accessible only by boat or plane, the Kodiak Island Borough faces unique challenges in providing services to its residents.

Form of Government The Kodiak Island Borough is a second-class borough and currently operates under a manager form of government. The Manager is hired by the Assembly and oversees the day-to-day affairs of the Borough. The Assembly is comprised of seven members elected by the public to govern the Borough. The Borough Mayor, also elected by the people, presides over the Assembly, votes only in the case of a tie and serves as a ceremonial figure for certain Borough affairs. The term of office for both assembly members and the Mayor is three years. The day-to-day business of the Borough is conducted within six departments: Manager’s Office, Clerk’s Office, Finance (including IT), Assessing, Community Development, and Engineering/Facilities.

The Borough was incorporated in 1963, as a Second-Class Borough by Chapter 146 Sessions, Laws of Alaska 1961, as amended. Per AS 29.35.210, the powers of a second-class borough include providing transportation systems; regulating the sales and use of fireworks; licensing, impounding, and disposing of animals; providing garbage, solid waste, and septic waste collection and disposal; providing water and air pollution control; participating in federal or state loan programs for housing rehabilitation and improvement for energy conservation; providing for economic development; providing for the acquisition and construction of local service roads and trails; establishing an emergency services communications center; and regulating the licensing and operation of motor vehicles and operators. A second-class borough may also issue bonds to finance or make loans to finance the acquisition, construction, rehabilitation or development of public improvements. The Kodiak Island Borough has also adopted health care powers under rules outlined in AS 29.35.300.

Population The general population of the Kodiak Island Borough has been declining since 2012. According to the Alaska’s Department of Labor and Workforce Development, the borough’s 2020 population was 13,101. That population number includes all residents in the borough including those residing in six cities (Akhiok, Kodiak, Larsen Bay, Old Harbor, Ouzinkie and Port Lions) and one village (Karluk). The City of Kodiak, the largest of the cities in the borough, has the largest population concentration at roughly 45%.

Economic Condition and Outlook The economic condition of the Kodiak Island Borough remains resilient. The main industries within the Borough are commercial fishing, tourism, government and community support services.

The backbone of the Kodiak economy is, and has been, the seafood industry. This industry includes commercial fishing, fisheries research, management and enforcement, seafood processing, and maintenance and support services. While some segments of the commercial fishing industry, such as crab fisheries, have declined over time, others, like mariculture activities such as kelp and oyster harvesting have grown. The Port of Kodiak has room for over 600 vessels and consistently has ranked in the top ten ports in the country, according to the National Ocean Economics Program data.

Although commercial fishing activities (excluding tourist-based fishing) were relatively unaffected by COVID restrictions, processing activities saw operation interruptions related to both staffing and supply chain disruptions and increased costs due to plant safety modifications and personal protective equipment purchases.

Prior to the COVID-19 pandemic, tourism was stable in Kodiak with an increasing number of visitors, especially from cruise ship passengers. Although the long-term effects of the pandemic on tourism have yet to be determined, Kodiak lost 17,900 planned cruise ship passengers in 2021 along with a $26,500 drop in transient accommodation tax revenue as compared to 2019.

An interesting niche within the Kodiak Island Borough is the Pacific Spaceport Complex which was constructed twenty years ago. Located at Narrow Cape, the complex occupies 3,700 acres and is owned by Alaska Aerospace Development Corporation (AADC), a public corporation of the State of Alaska. The Pacific Spaceport Complex is the first complete launch facility built in the United States since the 1960’s. Its purpose is to support the launches of small to medium-sized rocket-launched low earth orbit satellites, as well as military and scientific research missions.

Kodiak is home to the largest United States Coast Guard Base (USCG) in the United States employing around 1,200 people and providing vital services to the marine industries that are an integral part of Kodiak’s make-up. Base Kodiak supports both cutters and aircraft and is home port to three ships and contains three hangers which house 15 various aircraft. Future growth is expected over the next few years and could include four new ships and two new aircraft along with the necessary increase in personnel and support staff.

The preliminary unemployment rate on June 30, 2021, is 5.5% compared to 8.0% on June 30, 2020. Hiring of seasonal cannery and other fisheries-related workers traditionally peaks around July and is virtually nil in December. This generally accounts for seasonal highs and lows in the local unemployment rate. This rate has fluctuated from 4.7% to 6.2% over the last five years with the overall average being 5.2%. The higher unemployment percentage in June 2020 includes the impact the pandemic had on local employment for fisheries and tourism workers.

Kodiak’s general real estate market has been increasing since the late 1980’s. The demand for affordable housing increased with the 2016 closure of a major mobile home park within the Borough and despite the recent construction of several affordable housing developments, housing is still a concern. The biggest constraint to the construction of housing is land availability. The Coast Guard has recently started to build new and renovate current housing in anticipation of their increased personnel needs. Although Kodiak has begun to see an increase in both sales and sale prices, the average home cost of $326,000 is about 5% lower than the state average of $345,000. Kodiak Island Borough Demographics

State of Alaska, Department of Labor, Workforce Development Kodiak Island Borough State of Alaska Annual Unemployment Rate (2020) 6.2% 7.8% Annual Unemployment Rate (2019) 5.6% 6.1% Annual Unemployment Rate (2018) 5.8% 6.6%

Calendar Year Calendar Year Kodiak Island Borough Specific Information (from Borough records) 2019 2020 Kodiak Island Kodiak Island Borough Borough Public Education Number of Schools 13 13

Number of Staff Teachers 193 185 Support Personnel 189 192

Elections Number of Registered Voters 10,104 10,258 Votes Cast in Last Election 1,550 2,084 Voter Turnout 15% 20%

Kodiak Island Borough Demographics, cont. Calendar Year Calendar Year United States Census Bureau - Quick Facts Estimate as of 7/1/2021 2019 2020 Kodiak Island Kodiak Island Borough Borough State of Alaska United States Population 12,998 13,101 733,391 331,449,281

Age Under 5 years, percent 7.3% 7.3% 7.0% 6.0% Under 18 years, percent 24.9% 24.9% 24.6% 22.3% 65 Years & Over, percent 11.4% 11.4% 12.5% 16.5% Unspecified in above groups, percent 56.4% 56.4% 55.9% 55.2%

Sex Male, percent 53.1% 53.1% 52.1% 49.2% Female, percent 46.9% 46.9% 47.9% 50.8%

Housing Housing Units 5,501 5,501 319,854 139,684,244 Owner-occupied housing, percent 55.0% 54.6% 64.3% 64.0% Median value of owner-occupied housing $ 275,000 $ 282,100 $ 270,400 $ 217,500 Median gross rent $ 1,369 $ 1,458 $ 1,244 $ 1,062

Families & Living Arrangements Households 4,373 4,261 253,346 120,756,048 Persons per household 3.05 3.08 2.80 2.62 Living in same house 1 year ago, percent of persons age 1 year+ 81.0% 79.6% 82.1% 85.8% Lanuage other than English spoken at home, percentage of persons age 5years+ 25.9% 27.0% 16.1% 21.6%

Education High school graduate or higher, percentage of persons age 25years+ 89.9% 89.9% 92.8% 88.0% Bachelor's degree of higher, percentage of persons age 25 years+ 26.0% 28.0% 29.6% 32.1%

Geography Population per square mile 2.1 2.1 1.2 87.4

Income & Poverty Median household income $ 78,281 $ 85,839 $ 77,640 $ 62,843 Per capita income in past 12 months $ 32,516 $ 32,876 $ 36,787 $ 34,103 Persons in poverty, percent 8.2% 7.1% 10.1% 10.5%

Budget Message Kodiak Island Borough Fiscal Year 2022

Dear Mayor, Assembly Members and Residents:

Enclosed is the fiscal year 2022 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 2022, revenue sources, projected revenues, and the operating plan for all departments including capital expenditures. This budget is a balanced budget, which means the anticipated revenues are expected to cover the planned expenses without using money from fund balance.

Budget Development Considerations

During the budget development process, staff considers many issues and challenges. These issues include, but are not limited to, the economic outlook for the Borough, changes in federal and state policies, controlling operational costs, and providing the current level of services to the community. Unlike previous years, however, conversations also centered around the unknown short and long-term expenses and operational changes due to COVID-19. In response to these challenges, staff developed a budget that included conservative revenue estimates for federal and state sources and decreased revenue for local sources such tourist and severance tax revenues. The budget was developed to control operations costs, where possible, and include provisions to allow for the same level of services offered to the community. In addition, staff acknowledged the general lack of maintenance and repairs that have existed for years; however those concerns went unfunded due to the desire to keep a stable mill rate for citizens during the pandemic.

Overview of the FY2022 Budget and Fund Highlights

The Borough has five different fund types however only four are budgeted annually. The fifth, Capital Projects, is budgeted by project and not part of the annual budget discussions. 1. General. This fund is the nucleus of the Borough; day-to-day operations are in this fund. 2. Special Revenue. These funds include revenue and expenditures for a specified purpose, such as education support, fire protection, road services, etc. 3. Debt Service. This fund is for the revenue and expenditures associated with bonded debt. 4. Enterprise. These funds are for the business-type activities of the Borough, within which user or service fees generate revenue to cover expenditures. 5. Capital Projects. These funds are for the various projects to upgrade, renovate, build, and repair facilities owned or maintained by the Borough and are not budgeted annually.

The total annual budget for the four fund types for FY22 is $42,979,070.

General Fund The General fund is the Borough’s main operating fund and is where the day-to-day business of the government is accounted for. Twenty separate departments fall into this fund and revenues and expenses which are not pledged for any specific purpose or use reside here.

In FY2021, the general fund levied mill rate was 2.75. This, along with other State and Federal revenue, assist in funding General Fund expenditures including a $3 million dollar transfer to debt service to pay for unreimbursed school bond debt payments. For FY2022, due in part to the state’s expected 50% reimbursement of school bond payments, a $700,000 reduction to the amount transferred to debt service and staff reductions, the mill rate was decreased to 2.11 mills.

Changes in General Fund Budgets for FY21 & FY22 FY21 Amended FY22 Adopted Increase Percent Budget Budget (Decrease) Change Revenues by Source Federal $ 190,000 $ 180,000 $ (10,000) -5.3% State $ 1,541,027 $ 1,655,154 $ 114,127 7.4% Local $ 6,989,469 $ 6,269,217 $ (720,252) -10.3% Other $ 112,000 $ 50,200 $ (61,800) -55.2% $ 8,832,496 $ 8,154,571 $ (677,925) -7.7% Expenditures By Type Operations/Services $ 5,607,798 $ 5,560,786 $ (47,012) -0.8% Contributions to Non-Profits $ 198,550 $ 290,589 $ 92,039 46.4% Transfers Out $ 3,026,148 $ 2,303,196 $ (722,952) -23.9% $ 8,832,496 $ 8,154,571 $ (677,925) -7.7%

General Fund Revenue Highlights:

Federal Federal budget reductions and regulatory changes over the last several years have impacted the Borough. Budget reductions have affected the revenue sharing we receive from the National Wildlife Refuge Sharing and regulatory changes in the commercial fishing industry influence state fisheries revenue sharing and local severance tax collections. Federal PILT (Payment in Lieu of Taxes), which was 22% of our federal revenue in FY2021, has remained relatively stable over the last few years and that trend is expected to continue.

State The State of Alaska’s budget reductions also influence the Borough’s budget. The Borough receives revenues from the State’s Community Assistance Program (CAP), Shared Business Fisheries Tax, Fisheries Business Landing Tax, and shared Telephone & Electric taxes. The CAP program revenues have seen a steady decrease since 2014 and given the State’s current fiscal situation, that trend is expected to continue. Fisheries Business and Landing tax revenues are much more variable and harder to predict since revenues depend on many factors including weather, legal quotas and overall health of the fishery.

In fiscal year 2008, the State of Alaska legislature established one uniform contribution rate of 22% for PERS (Public Employees Retirement Systems) employers. Prior to this legislation, separate contributions rates were used for each employer. Although the Alaska Retirement Management Board approved the actuarially determined rate for fiscal year 2021 of 30.85%, which is an increase of 7.8% from the prior year, the State is not passing that increase to employers. The Borough will not see a budget impact due to a rate change in its PERS contribution this year which will remain at 22% of covered payroll.

In April 2021, the rating agency reviewed and affirmed the State’s bond rating up to AAA3. The State’s credit rating affects the interest rates related to Alaska bonds and capital project funding in which the borough participates, including the state sponsored refunding of school bond debt that occurred in June 2021.

Local Major local policies are summarized in the Assembly’s Strategic Plan. The long-term goals are to develop balanced budgets while maintaining existing levels of service, to reduce reliance on Federal and State revenues by encouraging and developing our local economy and not reducing current fund balances.

The Borough uses assessed value on property, severance tax revenues, and City of Kodiak sales tax figures to evaluate the strength of the local economy. Although the recent pandemic will not likely impact property values and property tax collections, it may weaken severance and sales tax revenues.

In October of 2018, voters passed a Maximum Allowable Tax Revenue initiative. This initiative limits increases in local tax revenues. In 2021, the calculations were changed to eliminate special revenue funds, which consist mostly of service areas, from the calculation. Debt service for general obligation bonds is not subject to the tax revenue limitations per AS 29.45.100. General Fund Expenditure Highlights:

Personnel Cost The largest category of expenses for the General Fund is personnel and benefit costs which is 47% of the FY2022 budget. The Borough’s budget goal for fiscal year 2022 was to decrease the level of permanent staffing. This budget does not include estimated costs for vacant positions but does include an increased use of temporary and seasonal employees. These temporary and seasonal employees are filling long vacant positions or working on projects and maintenance work not completed in prior years. Other expenses such as specialty training, certifications and licensures may increase costs and have been anticipated and included in department budgets.

The fiscal year 2022 budget includes a 3.9% increase in salaries and related benefits compared to FY2021 actual costs. Budgeted health insurance, the largest variable benefit, included a 5% premium cost increase. The actual premium increase for FY2022 was 2.4%, which was not known until after the budget was adopted.

Permanent Personnel Totals 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Filled 45 46 47 45 43 45 43 39 40 40 38 Vacant 1 2 1 4 6 4 3 7 6 6 8 Budgeted 46 48 48 49 49 49 46 46 46 46 46

Fund Balance The cash balance of the General Fund at June 30, 2021 is estimated to be $7.14 million which is an increase of $920 thousand from the FY2020 ending fund balance of $6.22 million. The increase is due to vacant positions and CARES Act funding that paid for staff when they were working on COVID related activities. The FY2022 year-end fund balance is estimated to be $7.10 million.

The reserve amounts required by code for the General Fund is $5.63 million.

Special Revenue Funds Special revenue funds are created when a revenue source is dedicated solely to a specific activity. Examples would be a property tax dedicated to a road service district or for education support, or a transient accommodation tax to be used only to promote tourism. In total, the Borough has 18 separate special revenue funds. The largest two are the Education Support Fund and the Facilities Fund.

Funds Managed by a Board Number of Funds Road Service Funds 5 Fire Protection Funds 3 Street Lighting 2 Tide Gate 1 Funds Managed by Staff Education 1 Emergency Planning 1 Facility/Buildings/Land Resource 3 Tourism 2

Special revenue funds that are managed by an active board hold public budget meetings and submit their budgets to the Assembly for approval. Special revenue funds that are managed by staff are prepared by staff and submitted to the Assembly for approval. The Special Revenue section has additional details on each of the funds however below are highlights of the three largest staff managed special revenue funds.

• Education Support Fund: The largest of the special revenue funds and accounts for 65% of property tax collections which is the funds sole source of revenue. For FY2022, budgeted support to the school district is $10,455,244 and is funded by a 6.99 mill rate. This is an increase of $1,065,155 from FY2021 funding. The school district has set aside $1.5 million dollars to complete repair and maintenance and renovation projects on school facilities during the fiscal year.

The reserve amount required by code for the Education Support Fund is $75,000.

• Facilities Fund: The Borough established this fund to account for the sale of Shuyak Island to the federal government in FY1996. Although the principal of the fund is not used, the earnings can be used for capital projects, debt service payments and building insurance. Interest earnings were budgeted at 1% however at the time of publication the 3-year treasury rate was 0.396%. For FY2022, the Facilities Fund is budgeted to transfer $5,000 to Buildings and Grounds, and $539,389 to Debt Service. As of June 30, 2021, the Facilities Fund had a fund balance of $39.92 million.

• Building & Grounds Fund: This fund is for the care and maintenance of Borough-owned buildings and the revenue is from rent of those buildings. The FY2021 budgeted expenses were $1.33 million; $390,200 for school building and $939,800 for other buildings. However, due to vacant positions and lack of project approvals, the actual expenditures were $180,750 for school buildings and $511,200 for other buildings. The FY2022 budget expects to spend $1.69 million ($589,200 for school buildings and $1.1 million for other buildings) however the General Fund maintenance position was not approved. The vacant position may again limit the number of projects and repairs completed.

Debt Service Funds The Debt Service fund is the fund that pays the General Obligation bond principal and interest payments for schools and school facilities. The funds primary revenues are from debt reimbursement program payments from the State of Alaska, Motor Vehicle Registration Taxes, and property tax revenues. Since Alaska’s state budget has not been finalized until after the Borough is mandated to finalize theirs, it has not been possible to reliably predict the amount of reimbursement revenue the Borough receives from the State. As such, transfers from the General Fund and from the Facilities Fund have been necessary to make the required debt service payments. At the time of publication, the Alaska State legislation has not finalized the reimbursement amount.

Debt Service & State Reimbursements Last 10 Years 10000000

5000000

0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Debt Service Payments State Reimbursements Received

For FY2022, the total debt service payments and associated expenses are $7.57 million dollars. To pay that amount the budget was based on receiving 50% of the reimbursement amount the borough is eligible to receive from the State ($2.57 million), motor vehicle tax revenue of $200,000, $2.46 million from property tax revenues (15% of the total property taxes levied), a $2.3 million transfer from the General Fund and $28,900 from the fund balance of the Debt Service fund.

The reserve amount required by code for the Debt Service Fund is $275,000.

Enterprise Funds The Borough has six enterprise funds which receive revenues from rent and/or services: Solid Waste Collection and Disposal, Hospital Facility, Long-Term Care Center, Kodiak Fisheries Research Center (KFRC), Research Court Apartments, and 911 Services. FY22 Highlights of these funds are below. • Solid Waste Collection and Disposal fund: The revenue tipping rate was not increased and is remaining at $365/ton. Closure/post closure expenses and leachate management will remain two of the biggest long-term issues facing the Borough for this fund. • Hospital Facility: The revenue for this fund is from lease payments from an agreement that expires in 2027 and as such, the Borough has little to do with the day-to-day operations within in the building. Expenses generally follow an agreed upon Renewal and Replacement schedule. • Long-Term Care Facility: The revenue for this fund is from lease payments from an agreement that is currently being updated. The Borough has little impact on the day-to-day operations within the building and expenses include debt service payments on revenue bonds and Renewal and Replacement expenses. • KFRC: This building is a research center with various laboratories and office space rented by multiple tenants. The revenue for this fund is from rents but unlike other buildings, the Borough is involved with day-to-day system maintenance and reception activities. Expenses for this fund include the day-to-day management and repairs to the building. Several capital projects are planned for the building in FY2022 including siding and system upgrades. This building is currently closed to the public due to lack of tourist activity and COVID related occupancy restrictions. • Research Court Apartments: The revenue for this fund is rental income and expenses for this fund are for general repair and maintenance.

• 911 Services: The Borough collects a tax on phone lines and retains an administration fee to recover the cost of maintaining the mapping and addressing systems. The remainder of the revenue is remitted to the City of Kodiak to support their emergency communications system.

Capital Project Funds Capital Projects are not budgeted for through the annual budgeting process but done by project. The Borough is currently managing $54,060,567 in capital projects and is budgeting to expend $8,782,222 of these funds in FY2022. The Borough has $9,777,635 in capital projects funded by state grants, 8,031,859 in transfers in from other funds, $1,232,277 in federal grants, and $18,756,913 in loans from the Alaska Clean Water Fund.

Current Capital Projects Project Funding Source

Anton Larsen Bay Boat Dock……………………………………………………………………State Grants

Chiniak Emergency Shelter Rebuild………………………………………………………… Insurance Proceeds

General Fund Projects……………………………………………………………………………..Property Taxes • CAMA/Collection Software Upgrade • Junk Car Removal • Aerial Imagery

Hospital Facility……………………………………………………………………………………….Enterprise Fund • Reinforcement of Retaining Wall

Kodiak Fisheries Research Center……………………………………………………………Enterprise Fund • Seawater Storage and Filter Vessel • Exterior Siding

Lake Orbin Culvert Replacement……………………………………………………………..State Grants

Long Term Care Facility……………………………………………………………………………Enterprise Fund • Fuel Tank Replacement

Saltery Cove Trail System Updates…………………………………………………………..State Grants

School Renewal and Replacement Projects…………………………………………….. GO Bonds • Auditorium Upgrades • Peterson Elementary Roof Replacement • Emergency Borough Boiler Replacement

Solid Waste Capital Projects……………………………………………………………………..Revenue Bonds and Grants • Aeration for Leachate Treatment Plant • Lateral Expansion Project

Tsunami Siren Upgrades………………………………………………………………………….State Grants

Major Policy Issues As always, one of the highest priorities of the Borough is to provide quality services to the Kodiak residents at the lowest possible costs.

The major policy issues for FY2022 are maintaining the same level of service to the residents, funding the School District to provide a quality education while maintaining a stable tax rate.

Mill Rate This year the area-wide mill rate total is 10.75, which has remained unchanged since FY2012. The total mill rate encompasses individual mill rates for the following funds: General Fund (2.11), Education Support Fund (6.99), and the Debt Service Fund (1.65). As was the case with FY2021, the FY2022 mill rate does not include a mill rate for the Renewal & Replacement fund (a fund that is used to care for Borough owned buildings). The mill rate normally attributed to this fund was instead used to augment the Debt Service fund to compensate for the loss of State reimbursement income.

School Funding Since 80% of the total area-wide mill rate provides funding for schools (with Education Support at 65% and Debt Service for school construction at 15%) many of the budget discussions center on school funding. As a Second-Class Borough, the Borough must provide education area-wide in accordance with AS14. State school funding limits for the Borough, prescribed by the State of Alaska using a formula based on assessed property values within the Borough, contain a minimum and a maximum amount of allowable funding. For FY2021, the minimum amount of required Educational Support was $4,492,198 and the maximum was $12,173,211; the Borough provided $9,510,978 which was 78% of allowable maximum. In FY2022, the maximum allowable funding is $12,040,049 and the Borough is funding Educational Support at $10,455,244 or 87% of the maximum amount.

Future budget discussions will be focused on: the amount of Education Support funding provided to the school district, how to pay for the school debt bond payments without reimbursements from the State, and how to pay for the repair and maintenance of Borough owned buildings. Alternatives to raising the mill rate may include reducing the annual school district appropriation, continuing to suspend maintenance and repairs on buildings, reduce current programs or levels of services, or a combination thereof.

Investments Interest rates are low and potential earnings are difficult to predict. The COVID-19 pandemic impacted what had been an improving investment market. However, once the interest rates declined into negative territory, any callable bonds the Borough had invested in were called and reissued at substantially lower interest rates. While the low rates were good for the bond refunding (refinancing) the Borough participated in, it is not good for investing. Currently, one-year treasury yields are 0.07, 5- year treasury yields are 0.87 and 10-year treasury yields are 1.45; 2-year T-Notes are 0.25. The FY2022 budget reflects a 55% increase in interest income compared to actual interest received FY2021 in the hopes that the investment market will bounce back.

Non-Profit Contributions This year the Borough budgeted non-profit contributions from the General Fund at $170,000. This is equal to approximately 0.11 mills of property tax. Every year the Assembly reviews applications for 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 while budget reductions had been the norm in the past, due to the ongoing effects of COVID-19, the Assembly made the decision to invest more in non-profits in FY2022.

Alaska State Legislation and Federal Regulations Making the budget process difficult is the State of Alaska’s inability to finalize their budget prior to the borough having to finalize a budget – specifically, the amount of school bond debt reimbursements revenue the borough is to receive. At full reimbursement from the State, the borough is eligible to receive $5.1 million. If, after our budget is constructed and taxes are levied, the State chooses to reimburse less than the full eligible amount – or worse none which is what occurred in 2021 – of the expected reimbursements, then the borough could have up to a $5.1 million funding gap to manage.

Other budget considerations are the increasing costs of complying with unfunded State and Federal regulations such as the Clean Water Act, Environmental Protection regulations, Department of Agriculture animal protections, Department of Wildlife regulations, state senior exemption allowances and others.

Tax Rate and Financial Analysis This budget keeps the combined mill rate at 10.75 mills for the Borough’s area-wide funds: General Fund, Debt Service Fund, and Education Support Fund. The voters of the Kodiak Island Borough initiated and passed a property tax revenue cap in October of 2018 (which was modified in 2020), limiting the amount of future allowable tax revenues to the increase in CPI and improved or new construction.

The State has generally paid for 60 - 70% of the Borough’s principal and interest payments for school construction related debt. However, in FY2020 the State Governor vetoed 50% of the program’s distributions (reducing reimbursement to 30 – 35%), and in FY2021 the program went completely

27 unfunded. Both these reductions occurred after the borough had adopted their budget. For FY2022, final funding for the program has not been determined and the borough has anticipated only receiving 50% of the eligible reimbursements.

Various service districts within the Borough, which generally have an elected board, levy a special property tax mill rate to provide service within their area boundaries. These levies range from 0.10 mills up to 2.5 mills. A complete schedule of these rates can be found in the appendix.

This year the Borough’s Education Support budget is $10,455,244 and the debt service budget for education facilities is $7,213,136 for a total of $17,668,380. This contribution is equal to approximately 11.82 mills of property tax; however, only 8.64 mills (12,915,244) is funded directly by property taxes. The remaining 3.18 mills are from other revenue sources, such as School Bond Debt Reimbursement from the State of Alaska and transfers from the General and Facilities Funds.

Property assessments have increased from last year largely due to new construction and reappraisals of existing property. A consistent pattern of reappraisals, standardization, and increased quality of both the real and personal property rolls has continued. The taxable value of real and personal property for FY2022 is $1,494,747,221, an increase of $38,919,479 (3%) over the FY2021 value of $1,455,827,742.

The Kodiak Island Borough School District (KIBSD) is a component unit of the Borough. As such, their budget is not included in this document for three reasons: 1) the School District is still formulating their budget, 2) their budget is submitted to and approved by the State of Alaska, and 3) the school board is a separate governing board. Although the Borough Assembly has no direct control over their budget, they do approve the budget total amount and the amount of local support (via property tax levies) that will fund their budget.

Objectives for FY2022 As this document describes, every department has unique goals and objectives. ‘Goals’ represent the long-term purpose of the respective department and ‘objectives’ encompass the measurable steps required to accomplish department goals.

The Borough performs some of its functions on an area wide-basis and some on a service-area basis.

Tasks such as property assessment, tax collection, planning and zoning, and administrative functions are performed on an area-wide basis. State law mandates that the Borough is to provide a local contribution toward paying for school district operations.

Fire protection, road maintenance, building inspections, and other functions are performed on a service area basis. The revenues from these areas fund these services.

The Borough is working on many long-term projects. Most of these are described in the Capital Projects funds. That section enumerates projects scheduled for completion in FY2022 versus the years to come.

The COVID-19 pandemic is expected to continue to well into FY2022 and will impact the Borough and its residents.

Looking past Fiscal Year 2022

The Borough will have to find other sources of revenues or cut expenditures in the coming years to pay for school education support, school bond debt payments and deferred maintenance of Borough owned buildings (including schools).

Concerns over the age and deferred maintenance on Borough buildings and infrastructure continue, especially as maintenance costs rise and the cost of asbestos abatement is discussed. The Borough does not currently plan to issue any new bond debt to fund the deferred maintenance on schools or other borough owned facilities. Presently, most buildings and infrastructure is not adequate to handle the needs of our senior citizens or those with physical, mental health or addiction disabilities.

The Borough operated baler facility, landfill and leachate treatment plant continue to be a major concern regarding capacity limits and long-term operating and monitoring of leachate. Recycling is currently the main way to divert waste from the landfill however that effort is hampered by the limited amount of items available to be recycled (example: glass may be recyclable but it is not economically possible here due to the cost of shipping it off island to a recycling facility). The borough is currently working on a grant from USDA which would provide a study of the landfill and identify future options for our operations.

Current annual debt payments have plateaued and will start to decline in FY2025. The refunding of seven bond series in June of 2021 will create future savings over the remaining term of those bonds of up to $4.2 million dollars however at time of publication the final transcripts of the event are not available.

Since indications are that interest rates will not rise much in the next two to three years, there is renewed interest in changing some of our investment policies and/or contracting with an investment firm to manage all or part of the Borough’s Facility Fund.

Affordable housing will continue to be a problem. Mostly due to lack of vacant, buildable land, creation of additional housing is limited. Since most, but not all, Coast Guard personnel are housed on base, the renovation and building of additional base housing may help but will not solve the problem. Recent federal housing relief programs will provide short-term assistance for those who are finding it harder to afford housing but will not solve the current inventory shortage.

Population decreases, especially in remote areas of the borough are concerning. Lack of reliable transportation in and out of the remote cities and villages is cited as the largest problem followed by cost of the transportation. Local support and advocacy of the Marine Highway Transportation System is critical to populations in remote areas as well as to the City of Kodiak and other road-system residents.

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. Special appreciation is also given to the finance department for their assistance in the preparation of this document. Also, we 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 been made with careful consideration and much conversation between staff, the assembly and the public. The Assembly’s strategic plan containing their goals and objectives helped staff build their budgets. Staff encourages participation and comments from the residents of the Kodiak Island Borough on the budgeting process.

Respectfully submitted,

KODIAK ISLAND BOROUGH

Michael Powers Dora Cross Administrative Official Finance Director

BUDGET CALENDAR KODIAK ISLAND BOROUGH FISCAL YEAR 2022

The following activity is outlined as essential for the orderly formulation of the Fiscal Year 2022 Borough budget (July 1, 2021 through June 30, 2022).

Proposed Date Specific Date Budget Action Item Participants Manager, Finance February February 25, 2021 General Fund, Special Revenue Funds (Without Active Board) Director, Department Directors & Assembly Manager, Finance Continuation of Previous Meeting: General Fund, Special March March 11, 2021 Director, Department Revenue Funds (Without Active Board) Directors & Assembly Manager, Finance March March 25, 2021 Enterprise Funds Director, Department Directors & Assembly

Service Area Board March 31st March 31, 2021 Service Area Budgets due to Clerk & Finance Departments Chairs

April April 8, 2021 Manager's Budget Presentation to Assembly Manager & Assembly

School District & By April 30th April 23, 2021 School District Funding Request to Manager Manager

Manager, Finance April 29, 2021 Assembly Reviews Budget Director, Department Directors & Assembly Manager, Finance May May 6, 2021 Resolution for Annual Fee Schedule Director, Department Directors & Assembly Manager, Finance May 13, 2021 Continuation of Previous Meeting : Assembly Reviews Budget Director, Department Directors & Assembly

Manager, Finance May May 20, 2021 First Reading of Budget Ordinance Director & Assembly

Resolution Identifying minimum funding to the School District Manager, Finance May 20, 2021 (within 30 days of Receipt of School District Budget Request) Director & Assembly

Manager, Finance May 27, 2021 Continuation of Budget Discussions Director & Assembly

Manager, Finance June 1, 2021 Continuation of Budget Discussions Director & Assembly

Second Reading of Budget Ordinance & Adoption of Budget By June 10th June 2, 2021 Manager & Assembly Ordinance

Budget Process Overview

Budget Preparation Budget preparation allows departments, service areas and enterprise fund directors to assess their goals and objectives in order to create a financial plan for accomplishing them. The assembly must adopt a final budget by June however the process begins as much as six months earlier. During those six months, staff and service board meetings are held to discuss potential changes in external (public) services, internal services, expected revenues and requested expenditures. These meetings set the ‘groundwork’ for the Manager’s Budget submission to the Assembly which must occur prior to May 1st each year.

Budget meetings with the Assembly are usually divided into three parts: • All General Fund departments and those Special Revenue, and Enterprise funds that do not have active boards. o For these departments and funds, Borough staff prepares the budget information for inclusion in the Manager’s Budget. • Special Revenue and Enterprise funds that do have active boards. o For these funds, board members meet and prepare budgets that must be submitted to the Clerk’s office by March 31st for inclusion in the Manager’s Budget. • School Board Funding Request st o The local school board submits a funding request to the assembly prior to May 1 . The assembly has 30 days from the boards submission date to pass a resolution identifying the minimum amount of funding appropriated to the district.

During the period of February through May, the Assembly reviews the budget with the Manager, Finance director, department directors and board chairs. To approve the budget, there must be two public readings of the budget with final approval by June 10th of each year. The Borough Clerk is responsible for posting notices of the public hearing.

The budget shall be adopted by a favorable vote of a majority of all members of the Assembly through the adoption of an ordinance setting forth the appropriation levels and a resolution setting the mill rates. 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 a budget by June 10, the Manager’s budget shall be deemed to be adopted.

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).

Budget Amendments Amendments to the budget can occur anytime during the fiscal year. Generally, the following actions are required: • By ordinance o All new appropriations that amends the annual budget ordinance, o Acceptance of grant funds which are unlimited as to use or subject to only general limitations • By resolution o To move (appropriate) amounts between departments and projects, o Acceptance of grant funds which are limited by the grantor to a specific use or category of use

Balanced Budget All funds of the Borough must have a balanced budget. For the Borough, this means that revenues, plus a use of unrestricted fund balance, must equal expenditures.

Basis of Accounting for Budget The term “basis of accounting” is used to describe the timing in which transactions or events are recognized for the annual comprehensive financial report. The Borough uses this same basis for our budgeting.

Fund Type Accounting Basis Budgeting Basis General Fund Modified Accrual Modified Accrual Special Revenue Funds Modified Accrual Modified Accrual Debt Service Fund Modified Accrual Modified Accrual Capital Projects Modified Accrual Modified Accrual Enterprise Funds Full Accrual Full Accrual

The Borough budgets government-type funds (General Fund, Special Revenue Funds, and Debt Service Fund) and Capital Projects funds on a modified accrual basis. Revenues are recognized only when they are both measurable and available. Revenues are considered available if they are received within 60 days of year end. Expenditures are recognized when they are incurred, but an exception to this general rule is principal and interest on general long-term debt, which is recognized when due. Prepayment of insurance and similar services extending over more than one year is allocated to the years benefited. The Enterprise Funds (Municipal Solid Waste and Collection, Hospital, Long-Term Care Center, Kodiak Fisheries Research Center, Research Court Apartments, and E911 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).

All Borough funds are appropriated annually, with the single exception being Capital Projects. These are appropriated by project when they are presented to the assembly for approval. Capital projects appropriations are adjusted in the budget amendments.

Date Appropriations Shall Lapse Funds appropriated by the assembly shall lapse for further use as follows: • For encumbrance (obligation): o All single-year funds shall lapse for the purpose of encumbrance on the last day of the fiscal year. o All multi-year appropriations (usually capital projects) shall normally lapse upon completion of the project. • For Expenditure (payments): o All single-year funds shall lapse upon payment of those encumbrances outstanding at fiscal year-end. o All multi-year funds shall normally lapse at project completion.

In other words, in all funds except Capital Projects, when goods and services are not received by the end of the year, the encumbrances lapse.

FINANCIAL SUMMARIES

FUND STRUCTURE

The Borough accounts are organized on the basis of fund and account groups, each of which is considered a separate accounting entity. Operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses as appropriate. Borough resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds in this report are grouped into five generic fund types within two broad fund categories.

Government 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 special purposes. We include neighborhood service districts such as road, fire, and street lighting, as well as maintenance of our buildings and grounds, education and tourism development in this fund type.

Debt Service Funds: The Debt Service Funds are used to account for the accumulation of, resources for, and the payment of general long-term debt principal, interest, and related costs. The bulk of our debt is in the form of general obligation bonds which are accounted for primarily in one debt service fund.

Capital Project Funds: Capital Project Funds are used to account for financial resources to be used for acquisition or construction of major capital facilities and equipment. We use these funds to track projects funded by bond revenue, grants, and other large maintenance projects.

Proprietary Fund Types Enterprise Funds: Enterprise Funds are used to account for operations a) that are financed and operated in a manner similar to private business enterprises where the intent 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.

FUND MATRIX

Kodiak Island Borough Fund Matrix

Enterprise Funds

Fund 530 - Municipal Solid Waste

Fund 540 - Hospital Fund 545 - Long Term Care Center Fund 555 - KFRC Fund 556 – Research Court Apts Governmental Fund 560 -911 Funds

Debt Service General Fund Special Capital Fund (Major Fund) Revenue Funds Projects Funds

Fund 300 - Education Fund 201 - Education Support Fund 100 - Legislative Fund 415 – Borough Projects Fund 210 - Land Sales Fund 105 - Borough Mangement Fund 420 – Bonded Projects Fund 220 - Buildings & Grounds Fund 110 - Borough Clerk Fund 426 – Borough Projects Fund 234 - LEPC

Fund 115 - Borough Attorney Fund 240 - Womens Bay Service Area Fund 430 – State Grants Projects Fund 120 - Finance Fund 242 - Service Area No. 1 Fund 450/455 – Borough Projects Fund 125 - Information Technology Fund 243 - Service Area No. 2 Fund 460 – High School R&R Project Fund 130 - Assessing Fund 244 - Monashka Bay Service Area Fund 469 – R&R Projects Fund 135 - Engineering/Facilities Fund 246 - Bayview Service Area Fund 470 – Bonded R&R Projects Fund 140 - Community Development Fund 250 - Fire Protection Area No. 1 Fund 252 - Womens Bay Fire Department Fund 142 - Building Official Fund 490 – Landfill Projects Fund 254 - KIB Airport Fire Protection District Fund 160 - Economic Development Fund 495/497 – Health Services Projects Fund 260 - Woodland Acres Street Light Area Fund 165 - General Administration Fund 261 - Trinity Islands Street Light Area Fund 172 - Parks and Recreation Fund 262 - Mission Lake Tide Gate Fund 175 - Emergency Preparedness Fund 276 -Facilities Fund Fund 185 – Health & Social Services Fund 277 - Tourism Development Fund 186 – Animal Control Fund 278 – Commercial Passenger Vessels Fund 190 – Education, Culture & Recreation

Fund 191 – Kodiak College & Libraries Fund 192 – Non-Profit Funding Fund 195 – Transfers Out

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 having a financial 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 policy statements are provided:

Operating Budget Policies (Adopted FY1990) The budget is a plan for allocating resources. The objective is to enable service delivery with allocated resources. Services must be delivered to the citizens at a level that will meet real needs as efficiently and effectively as possible.

The Borough’s goal is to pay for all recurring expenditures with recurring revenues and to use non-recurring revenues for non-recurring expenditures.

It is important that a positive undesignated fund balance and a positive cash balance be shown in all governmental funds at the end of each fiscal year.

When deficits appear to be forthcoming within a fiscal year, spending during the fiscal year must be reduced sufficiently to create a positive undesignated fund balance and a positive cash balance.

When possible, the Borough will integrate performance measurement and productivity indicators within the budget. This should be done in an effort to improve the productivity of Borough programs and employees. Productivity analysis should become a dynamic part of the Borough administration.

The budget must be structured so that the Assembly and the general public can readily establish the relationship between expenditures and the achievement of service objectives.

The individual department and agency budget submissions must be prepared with the basic assumption that the Assembly will always attempt to maintain the current tax rates.

Budgetary review by the Assembly will focus on the following basic concepts:

Staff Economy The size and distribution of staff will be a prime concern. The Assembly will seek to limit staff increases to areas where approved program growth and support absolutely requires additional staff and to reduce staff where this can be done without adversely affecting approved service levels.

Capital Construction 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. They 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 capitalized assets and for their 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 budget status reports, interim financial statements, and annual financial reports is required.

The Borough will remain current in payments to the retirement system.

The Borough will develop and annually update a long-range (three to five years) financial forecasting system that will include projections of revenues, expenditures, and future costs and financing of capital improvements that are included in the capital budget.

The Borough will develop and annually update a financial trend monitoring system which will examine the fiscal trends from the preceding five years- trends such as revenues and expenditures per capita and adjusted for inflation, liquidity, or operating deficits. Where possible, trend indicators will be developed and tracked for specific elements of the Borough’s fiscal policy.

Debt Policies (Amended in FY2010) • 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 adequate fund balance.

Revenue Policies (Adopted in FY1990) • 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 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 aid, the Borough will assess the merits of a particular program as if it were funded with local tax dollars. Local tax dollars will not be used to make up for losses of intergovernmental aid without first reviewing the program and its merits as a budgetary increment.

Investment Policies (Adopted in FY1990) • 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.

Accounting, Auditing, and Reporting Policies (Adopted in FY1990) • The Borough will establish and maintain a high standard of accounting practices in conformance with Generally Accepted Accounting Principles (GAAP). • The accounting system will maintain records on a basis consistent with accepted standards for government accounting according to the Government Accounting Standards Board (GASB). • Regular monthly financial statements and annual financial reports will present a summary of financial activity by departments and agencies within all funds. • Where possible, the reporting system will also provide monthly information on the total cost of specific services by type of expenditure and revenue by fund. • An independent firm of certified public accountants will perform an annual financial and compliance audit and will publicly issue an opinion, which will be incorporated into the Comprehensive Annual Financial Report (CAFR). • The Borough will annually strive for the GFOA Certificate of Achievement for Excellence in Financial Reporting and the GFOA Distinguished Budget Presentation Award.

Capital Budget Policies (Adopted in FY1990) • 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 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 improvement 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 “full-life” estimated cost and potential funding sources for each capital project proposal before it is submitted to the Assembly for approval. • The Borough will determine the total cost for each potential financing method for capital project proposals. • The Borough will identify the cash flow needs for all new projects and determine which financing method best meets the cash flow needs of the project.

Reserve Policies (Amended FY2020) • Fund Balance policy. Fund balance is the uncommitted resources of a fund. Borough policy is to construct the various fund balance budgets in such a way that there will be sufficient uncommitted resources to cover cash flow needs at all times, regardless of seasonal fluctuations in expenditures or reserves, and to provide adequate reserves for emergency needs. • 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 short-term tax anticipation borrowing. Specific fund balance reserves and the purposes of these reserves are as follows: o General Fund Operating Reserves. The borough will maintain a general fund operating reserve to provide for adequate cash flow, budget contingencies and insurance reserves. The cash flow reserve within the general fund is an amount equal to six months of budgeted operating expenditures and one-half the current liability insurance deductible amount. o Education Support Fund. The borough will maintain a cash flow reserve to provide for unexpected revenue shortfalls. The cash flow within the education support fund is equal to $75,000. o Debt Service Fund. The borough will maintain a cash flow reserve to provide for unexpected revenue shortfalls. The cash flow reserve within the debt service fund is equal to $275,000. o Solid Waste Disposal and Collection Fund. The borough will maintain an operating reserve for adequate cash flow, budget contingencies and loan payment reserves. The cash flow reserve within the solid waste disposal and collection fund is an amount equal to six months of budgeted operating expenditures and the loan payment reserve is the following year’s total loan payments. • Use and restoration of reserves o All expenditures drawn from reserve accounts require prior assembly approval unless previously authorized by the assembly for expenditure within the assembly approved annual budget. o If reserves and/or fund balances fall below the required level set in subsection A of this section, the assembly shall include within its annual budget a plan to restore reserves and/or fund balances to the required levels.

FY2022 Budget Summary, All Funds

Special Debt Capital General Revenue Service Projects Enterprise Fund Funds Funds Funds Funds Total Revenues Property Taxes 3,153,917 11,945,164 2,466,333 - - 14,090,249 Transient Accomodation Tax - 15,200 - - - 94,000 Non Ad Valorem Taxes 23,100 - 200,000 - - 279,500 Payment in Lieu of Taxes 1,335,000 - - - - 1,331,000 Severence Taxes 1,124,000 - - - - 1,435,000 Excise Tax 351,000 - - - - 200,000 Penalties & Interest Fees 210,000 - - - 2,000 153,500 Rents & Royalties - 855,231 - - 1,826,766 2,952,492 User Fees - - - - 4,203,000 3,913,925 Land Sales Activities - 29,600 - - - 200,000 Licenses & Permits 72,200 33,600 - - - 95,500 Federal Revenues 180,000 100,000 - 315,811 - 112,500 State Revenues 1,655,154 11,266 2,573,113 221,680 75,922 7,100,800 Fines ------Interest Earnings 50,000 366,337 - - 138,090 879,058 Sale of Bonds/Loans - - - 3,226,357 85,015 5,737,058 Miscellaneous 200 1,207,968 28,984 60,320 6,352,714 2,863,712

Total Revenue 8,154,571 14,564,366 5,268,430 3,824,168 12,683,507 41,438,294 Transfers In - 5,000 2,303,196 848,415 - 734,346

Total Sources of Funds 8,154,571 14,569,366 7,571,626 4,672,583 12,683,507 42,172,640 Expenditures General Government 3,798,300 - - 45,287 - 4,200,180 Education 100,000 10,455,244 7,571,626 1,359,460 1,565,192 24,830,272 Health & Welfare 32,000 - - 2,889,240 2,204,072 2,911,792 Assessing 790,000 - - - - 739,669 Community Development 590,000 - - - - 894,786 Resource Management - 61,680 - - - 465,603 KIB Buildings - 1,693,393 - 39,669 79,634 1,004,741 LEPC - 3,000 - - - 15,812 Road Maintenance - 739,216 - 25,000 - 771,118 Public Safety 330,486 997,244 - 743,203 295,000 1,822,113 Culture and Recreation 20,589 - - - - 321,320 Economic Development 20,000 75,200 - - - 119,100 Non Profit Funding 170,000 - - - - 207,500 Solid Waste - - - 3,653,884 4,889,609 8,169,782 Other ------Transfers Out 2,303,196 544,389 - - 3,650,000 215,000 Total Use of Funds 8,154,571 14,569,366 7,571,626 8,755,743 12,683,507 46,688,788

Estimated Beginning Balance 7,509,404 45,918,718 574,741 - 44,856,928 98,859,792

Estimated Funds Available 06/30/22 7,509,404 45,918,718 574,741 (4,083,160) 44,856,928 94,343,644

Three Year Budget Overview General Fund Special Revenue Funds Debt Service Funds FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 Actual Estimated Budgeted Actual Estimated Budgeted Actual Estimated Budgeted REVENUES Property Taxes $ 796,822 $ 3,994,140 $ 3,153,917 $ 12,040,064 $ 10,863,269 $ 11,945,164 $ 2,539,516 $ 2,251,273 $ 2,466,333 Transient Accomodation Tax - - - 62,829 50,952 15,200 - - - Non Ad Valorem Taxes 29,100 23,100 23,100 - - - 215,538 192,240 200,000 Payment in Lieu of Taxes 1,651,791 1,635,859 1,335,000 ------Severance Taxes 1,223,921 1,047,422 1,124,000 ------Excise Tax 389,726 702,142 351,000 ------Penalties & Interest on Taxes 227,076 297,832 210,000 0 1 - - - - Rents & Royalties - - - 911,400 878,153 855,231 - - - User Fees ------Land Sales Activites - - - 28,902 62,805 29,600 - - - Licenses & Permits 96,415 74,930 72,200 33,600 34,800 33,600 - - - Federal Revenues 366,782 5,685,712 180,000 46,647 78,644 100,000 - - - State Revenues 1,515,255 1,614,645 1,655,154 67,250 67,284 11,266 2,552,052 - 2,573,113 Fines 55 ------Interest Earnings 152,804 23,017 50,000 1,292,337 163,911 366,337 - - - Miscellaneous 29,283 8,742 200 18,698 64,868 14,080 - - - Use of Fund Balance - - - - - 1,193,888 - - 28,984 Sale of Bonds ------43,647 - Sale of Fixed Assets ------TRANSFERS IN - - - 18,000 130,072 5,000 2,462,920 5,417,879 2,303,196

TOTAL SOURCE OF FUNDS 6,479,029 15,107,539 8,154,571 14,519,726 12,394,759 14,569,366 7,770,025 7,905,039 7,571,626

EXPENDITURES General Government 3,795,265 3,656,175 3,798,300 ------Education 50,000 50,000 100,000 10,471,443 9,510,978 10,455,244 7,733,393 7,836,370 7,170,536 Health & Welfare 32,562 19,549 32,000 ------Assessing 655,110 709,203 790,000 ------Community Development 592,577 654,336 590,000 ------Resource Management - - - 29,016 20,472 61,680 - - - KIB Buildings - - - 591,592 581,444 1,193,393 - - - Road Maintenance - - - 785,816 629,356 739,216 - - - Fire Districts - - - 588,806 423,558 912,700 - - - Public Safety 307,843 246,820 330,486 21,795 10,750 12,544 - - - Culture and Recreation 20,447 20,397 20,589 ------Economic Development 20,600 5,850 20,000 87,336 75,215 75,200 - - - Solid Waste ------Capital Outlay ------Non-Profit Funding 157,500 5,257,005 170,000 ------Other ------8,188 97,821 42,600 TRANSFERS OUT 113,000 3,026,148 2,303,196 1,560,191 984,530 1,119,389 - - -

TOTAL USE OF FUNDS 5,744,905 13,645,483 8,154,571 14,135,996 12,236,303 14,569,366 7,741,580 7,934,191 7,213,136

Three Year Budget Overview Continued Capital Projects Funds Enterprise Funds TOTAL FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 Actual Estimated Budgeted Actual Estimated Budgeted Actual Estimated Budgeted REVENUES Property Taxes $ - $ - $ - $ - $ - $ - $ 15,376,401 $ 17,108,682 $ 17,565,414 Transient Accomodation Tax ------62,829 50,952 15,200 Non Ad Valorem Taxes ------244,638 215,340 223,100 Payment in Lieu of Taxes ------1,651,791 1,635,859 1,335,000 Severance Taxes ------1,223,921 1,047,422 1,124,000 Excise Tax ------389,726 702,142 351,000 Penalties & Interest on Taxes - - - 1,797 4,320 2,000 228,873 302,152 212,000 Rents & Royalties - - - 1,880,231 1,713,431 1,826,766 2,791,630 2,591,584 2,681,997 User Fees - - - 4,123,040 4,019,944 4,203,000 4,123,040 4,019,944 4,203,000 Land Sales Activites ------28,902 62,805 29,600 Licenses & Permits ------130,015 109,730 105,800 Federal Revenues 136,258 63,634 315,811 1,885 6,040 - 551,571 5,834,030 595,811 State Revenues 68,707 94,729 221,680 (22,374) 71,970 75,922 4,180,889 1,848,628 4,537,135 Fines ------55 - - Interest Earnings - - - 490,836 64,420 138,090 1,935,977 251,348 554,427 Miscellaneous 218,281 622,862 60,320 1,708,549 1,788,701 1,709,272 1,974,811 2,485,174 1,783,872 Use of Fund Balance - - - - - 4,643,442 - - 5,866,314 Sale of Bonds 81,946 - 3,226,357 85,015 85,016 85,015 166,961 128,662 3,311,372 Sale of Fixed Assets ------TRANSFERS IN 3,228,278 3,942,689 848,415 45,000 - - 5,754,198 9,490,640 3,156,611

TOTAL SOURCE OF FUNDS 3,733,470 4,723,914 4,672,583 8,313,978 7,753,843 12,683,507 40,816,228 47,885,094 47,651,653

EXPENDITURES General Government ------3,795,265 3,656,175 3,798,300 Education - - - 1,334,941 1,287,789 1,565,192 19,589,777 18,685,138 19,290,972 Health & Welfare - - - 2,333,797 2,343,355 2,204,072 2,366,360 2,362,904 2,236,072 Assessing ------655,110 709,203 790,000 Community Development ------592,577 654,336 590,000 Resource Management ------29,016 20,472 61,680 KIB Buildings - - - 74,826 78,106 79,634 666,418 659,550 1,273,027 Road Maintenance ------785,816 629,356 739,216 Fire Districts ------588,806 423,558 912,700 Public Safety - - - 295,465 186,559 295,000 625,102 444,130 638,030 Culture and Recreation ------20,447 20,397 20,589 Economic Development ------107,936 81,065 95,200 Solid Waste - - - 3,105,101 3,216,018 4,889,609 3,105,101 3,216,018 4,889,609 Capital Outlay 2,558,202 2,459,321 8,782,222 - - - 2,558,202 2,459,321 8,782,222 Non-Profit Funding ------157,500 5,257,005 170,000 Other ------8,188 97,821 42,600 TRANSFERS OUT - - - 820,000 3,349,835 3,650,000 2,493,191 7,360,513 7,072,585

TOTAL USE OF FUNDS 2,558,202 2,459,321 8,782,222 7,964,130 10,461,662 12,683,507 38,144,813 46,736,960 51,402,802

Historical Assesed Values, Mill Rates and Tax Levies

Fiscal Real Property Personal Property Total Mill Total Year Assessed Value Assessed Value Assessed Value Rate Tax Levy 2004 659,695,261 110,941,504 770,636,765 9.25 7,128,390 2005 678,427,713 105,481,537 783,909,250 10.25 8,035,070 2006 692,709,445 106,206,504 798,915,949 11.00 8,788,075 2007 710,848,299 94,833,515 805,681,814 10.50 8,459,659 2008 734,527,929 100,997,608 835,525,537 10.50 8,773,018 2009 765,152,958 105,617,604 870,770,562 10.50 9,143,091 2010 788,107,547 108,786,132 896,893,679 10.50 9,417,384 2011 875,787,940 113,091,185 988,879,125 10.50 10,383,231 2012 947,611,296 91,612,537 1,039,223,833 10.50 10,911,850 2013 984,146,580 101,821,700 1,085,968,280 10.75 11,674,159 2014 1,013,670,977 104,876,351 1,118,547,328 10.75 12,024,384 2015 1,044,081,107 108,022,642 1,152,103,749 10.75 12,385,115 2016 1,084,317,572 118,559,600 1,202,877,172 10.75 12,930,930 2017 1,169,223,198 143,116,200 1,312,339,398 10.75 14,107,649 2018 1,205,698,799 137,125,100 1,342,823,899 10.75 14,435,357 2019 1,250,528,925 139,440,700 1,389,969,625 10.75 14,942,173 2020 1,266,365,775 155,178,500 1,421,544,275 10.75 15,281,601 2021 1,298,329,669 157,498,073 1,455,827,742 10.75 15,650,148 2022 1,341,595,132 153,152,089 1,494,747,221 10.75 16,068,533

GENERAL FUND

General Fund Description The General Fund is used to account for all assets and liabilities of the Kodiak Island Borough except those particularly assigned for other purposes in another, more specialized fund. The General Fund is the primary operating fund of our government.

Much of the usual activities of a municipality are supported by the general fund. Examples are the purchase of supplies and meeting operating expenditures. Examples of specialized funds would be special revenue funds like Education Support or a service district, or a Capital Projects fund which account for financial resources used for the acquisition or construction of major capital facilities.

The General Fund reports information on a modified accrual basis of accounting and uses the current financial resources measurement focus. In other words, with a couple of exceptions, the balance sheet reports cash and other financial resources (such as receivables) as assets and amounts owed that are expected to be paid off within a short time period as liabilities.

Departments included in the General Fund are: • Legislative (Borough Assembly) • Borough Management • Borough Clerk • Legal Services • Finance • Information Technology (IT) • Assessing • Engineering & Facilities • Community Development • Building Inspection • Economic Development • General Administration • Parks & Recreation • Emergency Preparedness • Animal Control • Education, Culture, & Recreation • Kodiak College & Libraries • Non-Profits • Transfers Out

Revenue Sources and General Fund Estimates In FY2012, a special revenue fund, called Education Support, was created to account for property tax revenues collected from the public which was to be paid to the Kodiak Island Borough School District. The creation of that special revenue fund now accounts for that revenue instead of the General Fund. After that change, the largest source of revenue for the General Fund from FY2013-FY2019 was intergovernmental revenue. The largest source of revenue in FY2019 was property taxes, before moving back to intergovernmental revenue for FY2020-2021.

In October of 2018, voters passed a Maximum Allowable Tax Revenue initiative. This initiative limits increases in local tax revenue to the Kodiak CPI. Debt service for GO Bonds is not subject to the tax revenue limitations per AS29.45.100.

GENERAL FUND REVENUE SUMMARY

Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2019 Actual 2020 Actual 2021 Budget 2021 Estimated 2022 Budget Property Tax (includes PILT) $ 3,212,817 $ 2,477,713 $ 5,180,269 $ 5,653,099 $ 4,512,017 Severance Tax 1,206,697 1,223,921 1,124,000 1,047,422 1,124,000 Excise Tax 1,465 389,726 402,500 702,142 351,000 Licenses & Permits 130,441 96,415 72,700 74,930 72,200 Intergovernmental Revenues 2,821,004 1,708,404 7,523,528 7,282,933 1,835,154 Interest Earnings 500,447 379,879 310,000 320,848 260,000 Miscellaneous Revenues 15,210 29,338 12,000 8,742 200 Transfers In 142,177 - - - - Total $ 8,030,259 $ 6,305,396 $ 14,624,997 $ 15,090,115 $ 8,154,571

See following pages for definitions of revenues.

PROPERTY TAXES

Local 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 property tax revenue for fiscal year 2022 is based on the net taxable assessed valuation as of January 1, 2021. That value is estimated at $1,494,747,221.

The Borough has set the tax levy on real and personal property for the General Fund at 2.11 mills, which will generate estimated property tax revenues of $3,153,917. Approximately 90% of this revenue is from real property and 10% from personal property.

The current delinquency rate is 0.2% (two tenths of one percent). For budget purposes, the amount of tax generated by one (1) mill is $1,494,747.

Payment in Lieu of Tax (PILT). 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 Bureau of Land Management (BLM), the National Park Service, the U.S. Fish and Wildlife Service (all agencies of the Interior Department), the U.S. Forest Service (part of the U.S. Department of Agriculture), and for Federal water projects and some military installations. Congress appropriates PILT payments each year. The BLM allocates payments according to a formula in the PILT Act that includes population, receipt-sharing payments, and the amount of Federal land within an affected borough. The estimated amount for FY2022 PILT revenue, $1,300,000 is $298,935 less than last year’s actual amount received.

Penalty and interest on Taxes Receivable. AS 29.45.650 and KIB Code of Ordinances section 3.35.140 establish the authority to apply penalties and interest on delinquent property taxes. The penalty rates are 10% for late payments, and the interest rate on delinquent accounts is 12% per annum. The Borough does not recognize the receivable at the time penalties and interest are applied to the accounts; rather, it is recognized when the payment is made. Based on past collections, we estimate revenues at $210,000.

SEVERANCE TAXES

The Kodiak Island Borough levies a tax on certain natural resources that are severed or harvested within the boundaries of the Borough. The tax rate is the Borough-wide mill levy, which is currently 10.75 mills (1.075%). Taxable resources are grouped into three categories: 1) sea products (fish, crab, kelp, etc.), 2) rock, sand and gravel (mining), and 3) timber (logging).

Sea Products Severance Tax. Budgeting for sea products severance tax involves many factors. How many fish will be available for harvesting? What other types and how much other sea products will be harvested? What countries will be buying our products? What will the price per pound be? What will the environmental issues be? Does the market prefer wild products to farmed products? Many of these variables are very difficult to predict. With these issues in mind, the Borough is budgeting sea products severance tax revenues for 2022 at $1,100,000.

Rock, Sand and Gravel Severance Tax. To estimate the value for rock 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 the fiscal years 2020 and 2021, the estimated revenue for fiscal year 2021 is $4,000.

Timber Severance Tax. Logging severance tax revenues remained fairly constant between FY2012 and FY2016. There was a decline in revenue starting in FY2017, and with the major logging operations on Kodiak Island completed, further reductions of revenue are expected. Therefore, the Borough is budgeting revenues for this tax source at $20,000 for FY2022.

Overall, the FY2022 severance tax is estimated at $1,124,000.

EXCISE TAX

The Borough added two new excise tax revenue sources in FY2018, marijuana and tobacco. In FY2021, the Borough collected $700,675 in tobacco excise taxes and $1,467 in marijuana excise taxes. The revenues for FY2021 is budgeted at $1,000 for marijuana and $350,000 for tobacco.

LICENSES AND PERMITS

Licenses and permits are revenues from building, marijuana, and tobacco industries. The largest portion of revenue in this category is building permits, which can be attributed to the low interest rates on home mortgages in rural areas through the State of Alaska. Per the Community Development Department, revenues from all industries are budgeted at $72,700, based on FY2021 revenues.

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 payments are based on the percentage of the fair market value of Borough 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 PILT, but the land owned by the FWS is not the same land owned by FWS that generates a portion of the PILT federal payment. The difference is the land under the National Wildlife Refuge was previously owned by private individuals and was previously taxable. From FY2015-FY2021 these revenues varied from $180,733 to $230,082. For FY2022, the budgeted revenues are $180,000.

STATE SHARED REVENUES

Community Assistance Program (AS 29.60.010-29.60.030). This payment from the State of Alaska is an equalization entitlement. The computation is based on population, the relative ability to generate revenue, and the local tax burden of the taxing unit. The Borough received $408, 022 in FY2020 and $317,746 in FY2021. Based on State legislation, the Borough is budgeting $344,454 for FY2022.

Fish Tax Revenue Sharing (AS 43.75 and 43.77) authorizes the State of Alaska to levy taxes on fisheries businesses. A portion of the tax is refunded to municipalities and boroughs. There are two types of fishery tax:

• Fisheries Business Tax (AS 43.75) 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 Developing Floating 5.0% Floating 3.0% Salmon Cannery 4.5% Shore-based 1.0% Shore-based 3.0%

Fisheries businesses file with the State on a calendar-year basis. 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 the location of the business. Municipalities will receive 50% of the tax collected from businesses from within their jurisdiction. If the tax collected is from a business 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 Commerce, Community and Economic Development.

• Fishery Resource Landing Tax (AS 43.77) levies the tax on processed fishery resources first landed in Alaska. The tax amount 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 based on a calendar year and must be filed by March 31. The rate is based on classification. The Alaska Department of Fish and Game determines whether a resource is “established” or “developing.” The rates are 3% for established resources and 1% for developing resources. 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 the severance tax on seafood products, there are many factors to consider. Some of the factors to be considered are: the amount of product available for harvesting, the market price of product at the time of purchase, environmental and market issues and federal and state regulatory factors. The Borough does not know all the businesses filing with the State or the statistics of the tax collected outside of municipalities and unorganized boroughs. For budgeting purposes, the Borough looks at the prior year’s revenues as well as the factors that are known and budgets accordingly. Using this method, it is estimated that FY2022 fishery tax revenue will be $1,100,000.

Utility Revenue Sharing (AS 10.25.570). The State of Alaska collects electric and telephone cooperative taxes and shares the proceeds, less the amount expended by the state in their collections to organized boroughs or a city of any class. With the increased use of cell phones and the decreased use of land lines, revenue from this source is expected to continue to decline. For budgeting purposes, the Borough looks at prior year’s average decreases and budgets accordingly. Using this method, it is estimated that the FY2022 revenue will be $16,000.

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, KIB has established a central treasury of pooled resources and the interest income is allocated among the different funds depending on how much equity they have in the Central Treasury. This revenue stream is difficult to predict from year to year due to varying interest rates, variable levels of funds to invest, and the unpredictability of the financial market. It should be noted that in FY2020 the market’s negative response to the COVID-19 pandemic drove interest rates down and rates remained low throughout FY2021. The General Fund earned $23,017 in interest earnings compared to FY2020’s $152,804. In fiscal year 2022 the General Fund is expected to earn $50,000.

MISCELLANEOUS REVENUE

Miscellaneous Revenue. This category includes revenues generated from animal control fines, sale of copies, sale of computer data and other miscellaneous revenue. For fiscal year 2021, total miscellaneous revenue is budgeted at $200.

TRANSFERS IN

Transfers In. This category includes revenues transferred from other funds into the General Fund. There is nothing budgeted to be transferred in for FY2022.

FUND BALANCE

General Fund Balance. Fund balance is revenue that is left over at year end after all expenditures have been accounted for. If revenues are greater than expenditures, then the fund balance increases. The reserve policy for the General Fund was amended in FY2020 requiring six months of budgeted operating expenses and 50% of the current insurance deductible remain in the account to provide adequate cash flows for operations. The following chart shows the fund balances for the last 10 years and the changes that took place.

We estimate the General Fund will have a fund balance of $7.14 million at the end of FY2021.

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GENERAL FUND REVENUE FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 Actual Actual Budget Estimated Budget Property Tax Real Property 1,448,182 710,068 3,432,842 3,561,218 2,830,766 Personal Property 152,398 86,754 381,427 432,922 323,151 TOTAL PROPERTY TAXES 1,600,580 796,822 3,814,269 3,994,140 3,153,917

Non Ad Valorem Taxes Aircraft Tax 30,200 29,100 28,000 23,100 23,100 TOTAL NON AD VALOREM TAXES 30,200 29,100 28,000 23,100 23,100

Payment in Lieu of Taxes PILT - Federal 1,542,393 1,614,634 1,300,000 1,598,935 1,300,000 PILT - Kodiak Island Housing 22,227 18,583 23,000 16,871 20,000 PILT - Alaska Housing 17,417 18,574 15,000 20,053 15,000 TOTAL PAYMENT IN LIEU OF TAXES 1,582,037 1,651,791 1,338,000 1,635,859 1,335,000

Severance Taxes Fish 1,163,238 1,170,360 1,100,000 994,825 1,100,000 Mining 5,183 12,564 4,000 5,302 4,000 Logging 38,277 40,997 20,000 47,295 20,000 TOTAL SEVERANCE TAXES 1,206,697 1,223,921 1,124,000 1,047,422 1,124,000

Excise Taxes Tobacco Tax 423,979 388,276 400,000 700,675 350,000 Marijuana Tax 1,465 1,449 2,500 1,467 1,000 TOTAL EXCISE TAXES 425,445 389,726 402,500 702,142 351,000

Penalties and Interest on Taxes Penalties and Interest 288,818 227,076 210,000 297,832 210,000 TOTAL PENALTIES AND INTEREST TAX 288,818 227,076 210,000 297,832 210,000

Licenses and Permits Annual Use Permit - - - - - Building Permits 99,553 78,274 52,000 50,613 52,000 Subdivision 6,765 1,900 4,000 6,650 4,000 Conditional Use Permits 900 - 500 500 500 Zoning Compliance Permit 6,190 5,790 7,000 5,630 5,000 Variance Fee 1,850 500 500 1,900 1,000 Zoning Change Fee - - - 30 - Electric Permit 4,446 4,060 4,000 5,452 4,000 Plumbing Permit 5,629 2,062 2,400 2,655 2,400 Planning & Zoning Review Fee 900 1,450 1,000 - 1,000 Special Land Use - - - - - Dog License 1,608 1,079 1,000 - 1,000 Business License - Marijuana 2,200 1,000 - 1,200 1,000 Business License - Tobacco 400 300 300 300 300 Site Plan Review - - - - - TOTAL LICENSES AND PERMITS 130,441 96,415 72,700 74,930 72,200

FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 INTERGOVERNMENTAL REVENUES Actual Actual Budget Estimated Budget Federal Grants CORONAVIRUS Relief Fund (CARES Act) - 173,633 5,792,501 5,504,979 - - 173,633 5,792,501 5,504,979 -

Federal Shared Revenues National Wildlife Refuge 222,000 193,149 190,000 180,733 180,000 TOTAL FEDERAL SHARED REVENUE 222,000 193,149 190,000 180,733 180,000

State Shared Revenues State Community Assistance 443,211 408,022 316,986 317,746 344,454 Fisheries Business Tax 1,816,530 718,307 900,000 1,049,475 1,000,000 Fisheries Resource Landing Tax 184,560 210,076 150,000 41,645 100,000 Telephone and Electric 16,561 16,198 17,000 17,424 16,000 Liquor License - 174 - 423 - Marijuana Licenses 1,000 300 500 300 300 PERS on Behalf Payment 137,142 151,657 155,541 187,632 194,400 PERS Forfeiture - 10,521 1,000 - - TOTAL STATE SHARED REVENUES 2,599,004 1,515,255 1,541,027 1,614,645 1,655,154 TOTAL INTERGOVERNMENTAL 2,821,004 1,708,404 7,523,528 7,300,357 1,835,154

Fines Animal Control - 55 - - - Zoning Violations - - - - - TOTAL FINES - 55 - - -

Interest Interest Earnings 121,586 137,371 100,000 45,569 50,000 Change in Market Value 90,044 15,433 - (22,552) - TOTAL INTEREST 211,629 152,804 100,000 23,017 50,000

Miscellaneous Jury Duty 300 300 200 275 200 Sale of Copies - 691 500 25 - Sale of Maps 1,458 829 1,200 190 - Fees - Dishonored Checks 245 75 100 40 - Local Electric/Reimbursement - - - - - Other 13,207 11,988 10,000 7,815 - Legal Fee Reimbursement - 13,007 - - - IBEW Reimbursement - 2,394 - 397 - TOTAL MISCELLANEOUS 15,210 29,283 12,000 8,742 200

Use of Fund Balance - - - - -

Transfers In 142,177 - - - -

Sale of Fixed Assets 4,815 - - - -

TOTAL REVENUES 8,459,054 6,479,029 14,624,997 15,107,539 8,154,571

SUMMARY OF GENERAL FUND EXPENDITURES BY DEPARTMENT

FY 2019 FY 2020 FY 2021 FY 2021 FY 2022 Actual Actual Budget Estimated Budget Borough Assembly 144,454 144,222 161,047 157,980 140,000 Manager's Office 661,322 658,896 664,732 598,851 530,000 Clerk's Office 552,964 454,883 483,360 436,673 521,470 Legal Services 86,894 88,376 109,500 78,201 109,500 Finance 755,760 811,528 819,986 812,095 824,037 Information-Technology 1,150,743 963,790 851,840 821,135 849,620 Assessing 522,375 655,110 731,316 709,203 790,000 Engineering & Facilities 463,006 431,044 385,671 503,854 426,554 Community Development 971,199 592,577 726,921 654,326 590,000 Building Inspector 188,072 184,664 160,491 122,866 160,491 Economic Development 600 20,600 13,570 5,850 20,000 General Administration 349,619 312,526 766,249 247,306 397,119 Parks & Recreation 57,096 32,562 71,772 19,549 32,000 Emergency Preparedness 14,307 4,479 40,950 5,254 48,995 Animal Control 115,800 118,700 118,715 118,700 121,000 Education Culture & Recreation 20,472 20,447 20,800 20,397 20,589 Kodiak College & Libraries 50,000 50,000 50,000 50,000 100,000 Non-Profit Funding 182,900 157,500 5,433,929 5,257,005 170,000 Transfers Out - 13,000 3,026,148 3,026,148 2,303,196 TOTAL $6,287,583 $5,714,905 $ 14,636,997 $ 13,645,393 $8,154,571

SUMMARY OF GENERAL FUND EXPENDITURES BY FUNCTION

FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 Actual Actual Budget Estimated Budget General Government $ 2,258,260 $ 2,089,948 $ 2,570,559 $ 2,022,865 $ 2,124,643 Public Safety 318,178 307,843 320,156 246,820 330,486 Assessing 522,375 655,110 731,316 709,203 790,000 Finance/IT 1,906,503 1,775,318 1,671,826 1,633,230 1,673,657 Community Development 971,199 592,577 726,921 654,326 590,000 Other 311,068 281,109 5,590,071 5,352,801 342,589 Transfers Out - 13,000 3,026,148 3,026,148 2,303,196 TOTAL $ 6,287,583 $ 5,714,905 $ 14,636,997 $ 13,645,393 $ 8,154,571

LEGISLATIVE FY2022

PROGRAM DESCRIPTION: The Kodiak Island Borough government exists to provide effective and efficient government services within our powers and duties that will improve the quality of life in our community. The executive duties of the borough are vested in the Borough Mayor. The mayor is elected at-large by the qualified voters of the borough. The legislative power of the borough is vested in the Borough Assembly which is otherwise known also as the governing body. The assembly consists of seven members elected at large. The Assembly formally establishes borough policy by ordinance or resolution.

GOALS AND OBJECTIVES:

Goals, Objectives, and Performance Indicators: FY2019 FY2020 FY2021 FY2022 Goals Department Objectives Indicators Outcome Outcome Outcome Goal Review the strategic plan Done annually No No No Yes annually # of Regular Assembly 22 21 23 20 Hold Borough Assembly Meetings meetings to establish Borough policy by ordinance or resolution # of Work Sessions 32 21 23 20

# of Joint Work Sessions with 3 1 1 1 the City of Kodiak Provide efficient, effective, and Collaborate with the City of # of Joint Work Sessions with 2 1 0 1 consistent government processes Kodiak, school district, service the KIB School District areas, tribes, rural communities and civic organizations within the Borough Host the Mayor's Conference No No No Yes

Newly elected Assembly attends Alaska Municipal League # of attendees of AML NEO 1 of 2 3 of 3 0 of 2 3 (AML)Newly Elected Officials (NEO) training # of published monthly finance 12 12 12 12 Foster public understanding of reports Borough finances and operations # of Quarterly Budget updates 4 4 4 4 Provide Manager with policy Promote fiscal policies that ensure No No No No stability and responsible direction government Ensure an effective budgeting Approve the budget by June 10 Yes Yes Yes Yes process

Establish annual priorities No No No Yes

LEGISLATIVE (CONT.) FY2022

ANALYSIS: Citizens have entrusted the Kodiak Island Borough government with powers that promote a vibrant, diverse, and healthy economy and community centered on Kodiak’s unique assets like our natural resources, people, and history. This includes a focus on a reasonable cost of living and a great quality of life where diverse cultures and viewpoints come together; and an engaged community of citizens who are working, living, and thriving together.

No updated priorities were provided by the department for FY2022.

SIGNIFICANT BUDGET CHANGES: There was an overall decrease of $17,980 from FY2021 to FY2022.

LEGISLATIVE (CONT.) FY2022

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget

Personnel Services $ 31,500 $ 32,104 $ 32,100 $ 32,446 $ 32,104

Fringe Benefits 2,923 3,382 3,597 2,811 3,382

Professional Services 72,954 72,184 85,500 72,000 72,000

Contributions - - - - -

Legal Services - - - - -

Support Goods & Services 37,077 36,551 39,850 50,723 32,514

Capital Outlay - - - - -

Allocated to other funds - - - - -

Operating Transfers - - - - -

Total Expenditures $ 144,454 $ 144,222 $ 161,047 $ 157,980 $ 140,000

Personnel FY2022 Personnel FY2018 FY2019 FY2020 FY2021 Budget There is no personnel for this department. Total Number of Employees - - -

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BOROUGH MANAGEMENT FY2022

PROGRAM DESCRIPTION: The Manager provides administrative guidance to the governing body's policy decisions and serves as the chief administrative officer of the Kodiak Island Borough, overseeing the day-to-day business of the organization. The Manager is appointed by the Assembly. The Manager's office also includes Human Resources, a Grant Writer/Special Projects Support position, and an Administrative Assistant.

GOALS AND OBJECTIVES:

Goals, Objectives, and Performance Indicators: FY2019 FY2020 FY2021 FY2022 Goals Department Objectives Indicators Outcome Outcome Outcome Goal

Deliver Manager's Report at Assembly meetings; Provide introduction, summary and Number of Reports Delivered 19 20 23 20 recommendation regarding Assembly meeting agenda items.

Be present for citizen comment period 100% 100% 100% 100% Assist the Assembly with policy at Assembly meetings implementation and administer Invite citizens to contact the Borough 100% 100% 100% 100% quality cost effective services to Monitor the effectiveness of Borough operations with questions and concerns the citizens of the Kodiak Island Monitor social media for citizen Borough feedback regarding Borough Yes Yes Yes Yes operations Annual budget completed before due; Provide guidance and Execute the annual budget and capital improvement recommendation for approval of the Yes Yes Yes Yes Program capital improvement program by December Attend the Kodiak Rural Regional 3 n/a n/a n/a Continue to build government relationships with Forums held three times per year Promote the building of a strong other local community governments such as second Direct staff to provide government to sense of community government communications class cities and tribal governments Yes Yes Yes Yes regarding borough issues or concerns that affect other government entities. Promote a culture of public trust of Review internal policies and practices and update as elected officials, appointed Identify a priority list for review 2 0 0 1 needed officials, and Borough Staff

ANALYSIS: The Manager's office monitors federal, state and local activities relative to how it affects Borough business. The Manager and staff maintain communication with federal and state lobbyists and work together to advocate for the local community needs. Particularly challenging this past year was addressing continued diminishment of federal and state contributions to local funding. Balancing the local budget and maintaining a work force appropriate for accomplishing borough business are among the top challenges. The COVID-19 Pandemic brought significant challenges to the community and the Manager's Department. Amidst the onset of the pandemic, many unprecedented decisions were required regarding the health and safety of staff and the community.

SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2022.

BOROUGH MANAGEMENT (CONT.) FY2022

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget

Personnel Services $ 392,194 $ 421,771 $ 404,431 $ 355,126 $ 303,768

Fringe Benefits 229,913 249,404 253,301 231,564 196,029

Professional Services - - - - 21,000

Contributions - - - - -

Legal Services - - - - -

Support Goods & Services 76,215 59,721 49,000 54,160 51,203

Capital Outlay - - - - -

Allocated to other funds (37,000) (42,000) (42,000) (42,000) (42,000)

Operating Transfers - - - - -

Total Expenditures $ 661,322 $ 688,896 $ 664,732 $ 598,851 $ 530,000

Personnel FY2022 Personnel FY2018 FY2019 FY2020 FY2021 Budget

Borough Manager 1 1 1 1 1

Deputy Manager 0 0 0 0 0

Human Resources Manager 1 1 1 1 0

Grant Writer/Special Projects 1 1 1 1 1

Executive Assistant 1 1 1 1 1

4 4 4 4 3 Total Number of Employees

BOROUGH CLERK FY2022

PROGRAM DESCRIPTION: The Borough Clerk’s Office provides the professional link between the citizens, the local governing bodies, and agencies of government at other levels. The Clerk’s Office Staff are public administrators who play intrinsic and essential roles in the community. The department provides administrative support to the Mayor and Assembly. Duties performed by this office are guided by KIBC 2.50.020 and Alaska Statutes 29.20.380. Some of the major and mandated duties of this office are the following:

• Administers all Borough Elections. The Clerk also prepares petitions and verifies signatures for initiatives, referendums, and recall elections. • Manages Borough Records for active and inactive files, develops retention schedules and procedures for inventory, storage, and destruction of all Borough records as necessary. • Assures that public records, including ordinances, resolutions, rules, regulations, and codes are available for public inspection as required by law. • Publishes and gives notice of meetings to the Borough Assembly members and the public of the time, place, and location of the meetings. • Prepares agendas and packets for the Assembly; provides for codification of ordinances; keeps a journal of all Borough Assembly meetings; and takes oaths, affirmation, and acknowledgements as necessary. • Serves as parliamentarian to the Borough Assembly and advises other Borough boards on parliamentary procedures.

GOALS AND OBJECTIVES:

Goals, Objectives, and Performance Indicators: FY2019 FY2020 FY2021 Department Objectives Goals Indicators Outcome Outcome Outcome FY2021 Goal Make Borough meeting packets available to the public on the % of packets made Borough website at the same time available to the public on 100% 100% 100% 100% the packets are released to the schedule Prepare agendas and maximize timely access to Assembly Borough packets, records, and information in an % of Assembly mail Make all Assembly public mail environmental friendly way made available to the 100% 100% 100% 100% available to the public online public online Respond to all records request in a % of timely responses as timely manner as required by 100% 100% 100% 100% required Borough code Borough code Assist and provide guidance to Accurately record and carefully preserve and departments regarding, access, safeguard the legislative history of the Kodiak # of assistance 30 30 unknown 30 retainment, and preservation of Island Borough records Actively train election workers Number of trainings assigned to the 9 precincts in the 6 5 3 4 conducted Administer municipal elections for the Kodiak Kodiak Island Borough Island Borough Effectively administer and % of elections not coordinate municipal elections and successfully contested or 100% 100% 100% 100% provide support for State Elections challenged Assembly meetings Provide administrative support to the Mayor, 70 70 57 50 Effectively coordinate and provide attended Assembly, and other boards and committees in clerical support to the Assembly # of resolutions adopted 22 32 35 30 compliance with open meeting act # of ordinances adopted 21 19 33 20

BOROUGH CLERK (CONT.) FY2022

ANALYSIS: The main goal of the Clerk's Office is to provide support to the Mayor and Kodiak Island Borough Assembly with integrity. The Clerk's Office also provides assistance to customers regarding processes, complaints, concerns and other issues. The Borough Clerk's office has had a complete staff turnover at the end of FY2019; therefore, office staff continues to review and find ways to streamline Clerk's office procedures and processes.

SIGNIFICANT BUDGET CHANGES: There was a budget increase of $84,797.

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 274,088 $ 210,513 $ 219,126 $ 192,077 $ 230,430 Fringe Benefits 160,728 147,289 150,862 127,625 167,718 Professional Services - - - 3,248 - Contributions - - - - - Legal Services - - - - - Support Goods & Services 118,148 97,082 113,372 113,723 123,322 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - - Total Expenditures $ 552,964 $ 454,883 $ 483,360 $ 436,673 $ 521,470

Personnel FY2022 Personnel FY2018 FY2019 FY2020 FY2021 Budget Borough Clerk 1 1 1 1 1 Borough Deputy Clerk 1 1 1 1 1 Assistant Clerk 1 1 1 1 1 Total Number of Employees 3 3 3 3 3

BOROUGH ATTORNEY (LEGAL SERVICES) FY2022

PROGRAM DESCRIPTION: The Borough attorneys provide legal counsel and advice to the Mayor, 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. The Kodiak Island Borough hires legal services via contract.

GOALS AND OBJECTIVES: Protect the Borough from financial loss and actual or potential legal action. • Ensure that all Borough operations are conducted in accordance with the law so that legal liabilities do not arise. • Provide legal advice to the manager, elected officials, and staff members. • Assist departments in resolving legal problems as they arise.

ANALYSIS: The level of required legal support varies from year to year. The budget is created by averaging and projecting expenses based on the actual expenses of the past few years, coupled with an analysis of current issues.

SIGNIFICANT BUDGET CHANGES: Litigation expenses have been decreased.

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ - $ - $ - $ - Fringe Benefits - - - - - Professional Services - - - - - Contributions - - - - - Legal Services 62,455 73,911 100,000 53,988 100,000 Support Goods & Services 24,439 14,465 9,500 24,213 9,500 Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures $ 86,894 $ 88,376 $ 109,500 $ 78,201 $ 109,500

Personnel FY2018 FY2019 FY2020 FY2021 FY2022 Personnel Actual Actual Actual Actual Budget There is no personnel for this department. Total Number of Employees - - - - -

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FINANCE DEPARTMENT FY2022

PROGRAM DESCRIPTION: The mission of the Finance Department is to provide competent and comprehensive financial services for the Kodiak Island Borough, to enable all departments to work in the best interests of the community, therefore achieving an outstanding level of service. The Finance Department has many different areas of responsibility including accounting, payroll, budgeting, cash management, issuance and refinancing of debt instruments (bond sales), submitting grant reports, customer service billing and collections (including property taxes and the landfill). The department's main function is to properly budget, account for, and report accurately and correctly all revenues and expenditures of the Kodiak Island Borough, and its subsidiary and/or affiliated government entities. The Finance Department's policy is to strictly comply with GASB, AICPA, and GAAP, to ensure the highest quality of all budgeting, accounting, and reporting to the Borough and the citizens of Kodiak Island. The Finance Department also includes the Borough's Information Technology Services Department. The Finance Director works with the Information Technology Department through weekly meetings to ensure all technology is working efficiently and correctly throughout the Borough.

GOALS AND OBJECTIVES: Goals, Objectives, and Performance Indicators: FY2019 FY2020 FY2021 Goals Department Objectives Indicators Outcome Outcome Outcome FY2022 Goal

Finance will respond to all calls with in 1 business day Calls returned in 1 Business day Yes Yes Yes Yes Provide all citizens with accurate and timely financial records Offer an online option to view the Kodiak Island Open.gov offered Available Available Available Available Borough Finances

Distribute the Comprehensive Annual Report (CAFR) Available online and by printed copy 1 1 1 1 by November 30th

To provide the community with Provide Monthly Financials to the public and assembly Number provided 12 12 12 12 accurate financial records that uphold to GASB, AICPA, etc. Received the GFOA Distinguished Budgetary 10 Years 11 Years 12 Years 13 Years Received award Presentation award Consecutive Consecutive Consecutive Consecutive

Received the Popular Annual Financial Reporting 10 Years 11 Years 12 Years 13 Years Received award Award Consecutive Consecutive Consecutive Consecutive Process all accounts payable by Friday of each week Number provided 100% 100% 100% 100%

Process and mail all statements for the Landfill each Number provided 12 12 12 12 Month # of help desk requests process for Information Help Desk software report 499 664 651 600 Technology Department Provide reliable and competent accounting services to all Borough Process employee payroll by Friday biweekly Number provided 100% 100% 100% 100% departments Process quarterly stipend payrolls timely Number provided 4 4 3 4

% of Grant Reports Submitted timely Number provided 100% 100% 100% 100%

Return calls with in 1 business day to all Borough Calls returned in 1 Business day Yes Yes Yes Yes Departments Ensure that Borough accounts receivable and payable are settled Continue a high rate of tax collections Percent Collected per year 99.10% 99.10% 98.00% 98.00% in a timely fashion

FINANCE DEPARTMENT (CONT.) FY2022

ANALYSIS: The Finance Department will continue to maximize the use of technology to improve efficiency and accounting procedures Borough wide. The KIB is very proud to have again received GFOA’s: • Certificate of Achievement for Excellence in Financial Reporting • Distinguished Budget Presentation Award • Popular Annual Financial Reporting Award The Kodiak Island Borough was one of only two Alaskan governments to achieve all three awards.

SIGNIFICANT BUDGET CHANGES: There were no significant budget changes for FY2022.

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 426,275 $ 453,432 $ 442,408 $ 435,694 $ 437,218 Fringe Benefits 278,740 314,089 335,016 336,257 346,657 Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Support Goods & Services 99,064 91,326 90,881 88,462 88,481 Capital Outlay - - - - - Allocated to other funds (48,319) (47,319) (48,319) (48,319) (48,319) Operating Transfers - - - - - Total Expenditures $ 755,760 $ 811,528 $ 819,986 $ 812,095 $ 824,037

Personnel FY2018 FY2019 FY2020 FY2021 FY2022 Personnel Actual Actual Actual Actual Budget Finance Director 1 1 1 1 1 Accountant 1 1 1 1 1 Accounting Technician 2 2 2 2 2 Clerk/Cashier 1 1 1 1 1 Secretary 1 1 1 1 1 Temporary Accounting Tech 0.5 0.5 0.5 0.5 0.5 Vacant Position (Accountant) 1 1 1 0 0 7.5 7.5 7.5 6.5 6.5 Total Number of Employees

INFORMATION TECHNOLOGY FY2022

PROGRAM DESCRIPTION: The Information Technology (IT) Department serves the Kodiak Island Borough by providing and supporting IT resources to enable business processes to be accomplished in a cost-effective and efficient manner. Examples of this include: • Installing and maintaining desktop computers and software for all Borough employees. • Maintaining and upgrading the Borough’s datacenter, including servers, storage, and networking assets. • Executing backups of the Borough’s data and monitoring the integrity and availability of IT systems. • Implementing security products and protocols to defend the Borough’s IT infrastructure against cyberattacks, viruses, and other malware. • Developing and providing training for IT policies and procedures to support the Borough’s goals and objectives. • Maintaining telecommunication equipment and contracts between the various locations that are served by the Borough. • Maintaining current documentation on all information technology products and systems in operation.

GOALS AND OBJECTIVES:

Goals, Objectives, and Performance Indicators: FY2019 FY2020 FY2021 FY2022 Goals Department Objectives Indicators Outcome Outcome Outcome Goal Provide current information technology resources Number of trainings offer to 7 7 8 Promote fiscal policies that ensure and training to Borough Employees employees each year stability, growth and responsible government. Continue to Improve employee awareness of User Phishing Security Testing 8.0% 8.0% 12% cyberattacks, viruses, and other malware (Failures)

Upgrade the Borough's telephone system to Completed throughout the Borough No No Yes Yes current telephone standards Optimize the effective use of Upgrade each employees desktop to the most Windows 10 Windows 10 Windows 10 community resources and assets Current Desktop Operating System compatible and efficent operating system 1809 1909 1909 for the benefit of the borough citizens. Continued maintance and problem solving for all # of Help Desk Tickets Opened 583 656 631 650 Borough employee technology needs # of Help Desk Tickets Closed 531 664 651 630

Maintain up-to-date documentation on all currrent Documentation reviewed and 90.00% 90.00% 90.00% 100.00% IT infrastructure systems updated Provide efficient, effective and consistent government processes. All IT infrastructure equipment is under warranty All IT infrastructure has been Yes Yes No Yes and/or has sufficient working backups evaluated and meets objective

ANALYSIS: The IT department continues to research and implement the industry best practices with information technology related to system reliability, integrity and data security. The IT department has upgraded the Borough’s desktop computers to Windows 10 and Office 2016 to stay current with the industry’s supported software. We are still in the process of upgrading all of our servers to currently supported software versions.

INFORMATION TECHNOLOGY (CONT.) FY2022

SIGNIFICANT BUDGET CHANGES: No significant budget changes this year.

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 278,941 $ 314,901 $ 282,927 $ 277,924 $ 275,147 Fringe Benefits 172,401 193,719 185,519 183,851 190,271 Professional Services 9,286 1,000 15,000 12,044 15,000 Contributions - - - - - Legal Services - - - - - Support Goods & Services 406,491 340,248 343,394 347,317 369,202 Capital Outlay 83,625 13,921 25,000 - - Allocated to other funds - - - - - Operating Transfers 200,000 100,000 - - - Total Expenditures $ 1,150,743 $ 963,790 $ 851,840 $ 821,135 $ 849,620

Personnel FY2018 FY2019 FY2020 FY2021 FY2022 Personnel Actual Actual Actual Actual Budget IT Director 1 1 1 1 1 IT Supervisor 1 1 1 1 1 Programmer/Analyst 0.5 0.5 0.5 0.5 0.5 PC Network Technician II 1 1 1 1 0 LAN Administrator 0 0 0 0 1 Total Number of Employees 3.5 3.5 3.5 3.5 3.5

ASSESSING DEPARTMENT FY2022

PROGRAM DESCRIPTION: The primary function of the Assessing Department is the annual valuation and assessment of approximately 7,800 real and 579 personal property accounts at their full and true value. The real property function requires a re-inspection program be phased cyclically, the annual appraisal of new construction and additions, and includes the audit, discovery, and compliance programs. This function includes maintaining assessment standards, ownership records, property description data, and other related clerical support. The personal property function is accomplished though the filing and auditing of business personal property renditions, and related discovery and compliance activities.

GOALS AND OBJECTIVES:

Goals, Objectives, and Performance Indicators: FY2019 FY2020 FY2021 FY2022 Goals Department Objectives Indicators Outcome Outcome Outcome Goal Total re-inspected residential 1210 2000 1933 1004 Re-inspect the road system properties in the following properties boundaries: City of Kodiak Total re-inspected commercial Strive to provide a comprehensive 49 150 74 81 properties taxation and assessment program that is fair and equitable for all Re-inspection and revalue of remote properties** Total re-inspected remote properties 150 250** 243** 335** citizens Real Property Parcels adjusted through Number of parcels processed each year 5000 5000 5000 5000 market analysis and model updates

To administer senior citizen and disabled veterans Total number of senior citizen and Administer tax exemption 686 700 744 747 exemptions Disabled Veteran exemptions filed programs that meet local, state and federal requirements Periodical update of exempt properties to ensure the Reviewed properties 5 25 20 3 properties still meet requirements for exemption

**Since GIS imagery is no longer available, FY2022 has no GIS re-inspection and revalue of properties. This will be boots on the ground re-inspection and revalue until GIS imagery is available.

ASSESSING (CONT.) FY2022

ANALYSIS: Assessing has a periodic review process for physically inspecting all properties within the Borough as prescribed in Alaska Statute 29.454.150. In Kodiak, it has been Assessing's practice to re-inspect all road system properties every three years, and remote properties including outlying villages every five years. The department had an established schedule for GIS imagery acquisition to ensure that assessing had the latest GIS data for those remote areas being inspected each year. Unfortunately, GIS imagery data will not be available in the foreseeable future and staff must go physically inspect remote areas. Physical inspections of all remote properties costs thousands of dollars. In 2019 the State Assessor completed an audit of all of assessing's tasks and determined that the Kodiak Island Borough Assessment Department was functioning well, with acceptable ranges of uniformity. Physical inspection of real properties is required by State Statute. AS 29.45.110 requires that all properties be re- appraised to ensure that the properties meet the definition of "full and true value". The Assessor is requesting additional funding for more employees due to not only the additional remote travel that is now required but to also ensure the inspection process for meeting State Statutes continues.

The Assessing budget is mostly personnel costs. As noted, the State Assessor's Office (OSA) determined in their 2019 audit that Kodiak Island Borough is functioning well, but also states "Given the current job descriptions and organizational structure, three positions out of five are functionally vacant at the time of this audit. This is a serious concern to OSA in terms of the ability of the department to complete its annual work in a compliant manner". In a recent email to the Assessor, the OSA expressed that "the State Assessors Office considers KIB one of the most challenging boroughs in the state on a per parcel basis, due to the lack of road system between cities"(villages) and noted that the "North Slope Borough has the same type of difficulties in their area while having twice the number of people on staff and approximately one half of the parcels compared to KIB". Given the Borough's size and parcel count, the Assessor's Office had to re-evaluate the re-assessment cycle currently in place to comprehensively complete each inspection cycle; and also to continue to meet State Statutes as well as ensure taxpayer confidence in fair and equitable assessments. In ratio study with the State Assessor, taking into consideration length of service in the department of 3 currently, one of the assessing staff will retire in 2022 and the other in 2025. Assessing replaced one staff member who left at the beginning of 2021 already. Assessing loses all of its longevity employees by 2025. For FY2022, Assessing is looking to add two (2) employees. It does not appear that GIS imagery will be available in the near future, making it necessary to go remote, boots on the ground every year to all remote areas. Additionally, since the tax cap does NOT include any new construction or any buildings included in discovery, the Assessing Department had to change the inspection process that was in place which will make training new employees more efficient but adds duties. The current staff of 3 cannot meet the State Statute or ensure fair and equitable assessments. Temporary positions may have to be filled until permanent positions are hired, but training temporaries every year is another time-consuming step for current employees and each and every parcel must be checked. Personal property audits will continue on 10% of all personal property accounts, and all shipping containers are counted monthly. Assessing will also begin an audit of 25 Senior/Disabled Veteran accounts every year. The Assessing Department continues the process of reviewing all religious, educational and charitable exemptions per the State Assessors Audit..."Improvement is needed in both the administrative practices and the municipal code related to administration of exemptions." Ordinance FY2020-04 is one example of the municipal code changes for review practices.

SIGNIFICANT BUDGET CHANGES: $80,797 increase to the budget for FY2022.

ASSESSING (CONT.) FY2022

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 260,574 $ 347,201 $ 333,465 $ 339,904 $ 399,442 Fringe Benefits 184,847 237,961 231,863 238,124 285,399 Professional Services 18,470 7,260 76,430 250 - Contributions - - - - Legal Services - - - 27,549 22,719 Support Goods & Services 62,483 64,188 91,058 104,876 83,940 Capital Outlay - - - - Allocated to other funds (4,000) (1,500) (1,500) (1,500) (1,500) Operating Transfers - - - - - Total Expenditures $ 522,375 $ 655,110 $ 731,316 $ 709,203 $ 790,000

Personnel FY2018 FY2019 FY2020 FY2021 FY2022 Personnel Actual Actual Actual Actual Budget Assessor 1 1 1 1 1 Appraiser 1 1 1 1 1 Assessment Clerk ll 1 1 0 0 0 Assessment Clerk l 0 0 0 0 0 Appraiser Technician 2 2 2 2.5 4 Total Number of Employees 5 5 4 4.5 6

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ENGINEERING AND FACILITIES FY2022

PROGRAM DESCRIPTION: The Engineering and Facilities Department is responsible for the safe operation and maintenance of all Borough-owned grounds and facilities and administers all service area maintenance contracts. All Capital projects are coordinated and administered by the Projects Office. The department is also responsible for the operation of the KIB Landfill that includes the disposal of Municipal Solid Waste, metals, construction debris, and the potential recycling of these materials to prolong the use of the existing landfill. The department also provides staff and funding for the Solid Waste Advisory Board. Engineering and Facilities also operates Leachate Treatment Plant. This plant processes drainage liquids from landfill and purifies to state drinking water standards. The Kodiak Fisheries Research Center is maintained and operated by the Engineering and Facilities Department. The public spaces, aquarium and touch tank at KFRC is staffed and maintained by Engineering and Facilities.

GOALS AND OBJECTIVES:

Goals, Objectives, and Performance Indicators: FY2019 FY2020 FY2021 FY2022 Goals Department Objectives Indicators Outcome Outcome Outcome Goal Design, operate, and maintain Complete Continue to work on deferred projects listed on the 5 Completed 8 Completed Kodiak Island Borough facilities in a Number of Projects completed Projects as Renewal and Replacement Schedule Projects Projects safe, healthy, and responsible awarded manner with attractive, comfortable and efficient Perform daily maintenance and janitorial of facilities Cleaning and Maintainance Yes Yes Yes Maintain environments Provide quality information to Staffed requested support meetings Yes Yes Yes Maintain Provide staff support and guidance for all capital various Borough Departments as projects and staff support for various advisory boards. needed. Staffed various advisory boards Yes Yes Yes Maintain

Within 24 hours complaints are Provide support for service areas to All complaints from public for road service areas are uploaded to complaint system on KIB 100% 100% 100% Maintain maintain safe roads transmitted to board members website

ANALYSIS: Engineering and Facilities continues to seek funding sources to increase efficiencies for energy and indoor air quality for Borough owned facilities and to bring Borough buildings into compliance with the Americans with Disabilities Act during renovations. The Department also plans to continue the household hazardous waste collections during Kodiak Islands' Annual Spring Cleanup and explore a second hazardous waste event in the fall to accommodate the fisherman after the summer season. This service provides the community with little or no disposal costs of household hazardous wastes such as paints, motor oils, chemicals etc. Funding is being requested at similar levels as the previous year. All maintenance and repair, capital improvement projects continue to be scrutinized and prioritized for health and safety and facility preservation.

SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2022.

ENGINEERING AND FACILITIES (CONT.) FY2022

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 232,915 $ 204,429 $ 175,369 $ 238,882 $ 204,094 Fringe Benefits 155,503 157,719 129,302 199,379 140,593 Professional Services - - - - - Contributions - - - - - Legal Services - - - 80 - Support Goods & Services 74,589 68,896 81,000 65,593 81,867 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - - - - Total Expenditures $ 463,006 $ 431,044 $ 385,671 $ 503,934 $ 426,554

Personnel FY2018 FY2019 FY2020 FY2021 FY2022 Personnel Actual Actual Actual Actual Budget Construction Inspector/Engineer 1 0 0 0 0 Director 1 1 1 1 1 Deputy Director 0 1 1 0 0 Project Manager/Inspector 1 1 1 1 1 Project Assistant 1 1 1 1 1 Secretary lll 1 1 1 1 1 Solid Waste Manager/Environmental Specialist 0 0 0 1 1 Maintenance Mechanic 1 1 1 1 1 Total Number of Employees 6 6 6 6 6

COMMUNITY DEVELOPMENT FY2022

PROGRAM DESCRIPTION: Community Development Department is responsible for a number of Borough functions. The department's four primary functions are:

1) Administer the Borough's zoning and land use regulations. The Community Development Department is in charge of interpreting and enforcing Title 17; to include permit issuance, site plan review, land use application processing and customer service.

2) Administer the Borough's subdivision/platting regulations. Title 16 of the Kodiak Island Borough Code contains the Borough’s platting (subdivision) regulations, which include subdivision and vacation regulations, standards for physical improvements to be made during the subdivision process, and waiver and appeals processes.

3) Perform short and long-term planning on both an areawide and non-areawide basis. Per Alaska Statute the Borough is responsible for short and long-range planning Borough wide. Community Development is responsible for updating the Borough’s areawide comprehensive plan, which includes long-range planning specific to each community in the Borough.

4) Provide technical expertise and support to Borough boards and committees. Community Development provides staffing to the Planning and Zoning Commission, Parks and Recreation Committee and Local Emergency Planning Committee. In addition, the Community Development Director represents the department as staff at Borough Assembly regular meetings and work sessions.

The Department works with elected officials, agency staff and community members alike to promote sound development and ensure that Borough regulations, policies and procedures related to planning, land use and development reflect the community's vision and values as identified in the Borough's comprehensive plan.

COMMUNITY DEVELOPMENT (CONT.) FY2022 GOALS & OBJECTIVES:

Goals, Objectives, and Performance Indicators: FY2019 FY2020 FY2021 Goals Department Objectives Indicator Outcome Outcome Outcome FY2022 Goal Periodically review zoning codes to ensure they serve At least 3 zoning code chapters reviewed/changed. 12 3 1 0 the best interest of the community

Perform long range planning and Perform periodic reviews of the adopted Begin section reviews of the Comprehensive Plan. No 0 0 0 continuous code review. Comprehensive Plan (may be by plan section).

Complete other planning efforts as directed by P&Z Begin at least one major planning effort per year as directed by P&Z and the Assembly. 2 1 (AWP) 0 1 and the Assembly.

Participate in local outreach and public education Host outreach activities during National Planning Week (October) 0 0 0 0 events.

Produce educational series of articles via website. n/a n/a n/a n/a

Educate the public in land use Use the Borough website, public news sources and regulations as well as potential social media to disseminate information to the Participate in radio shows and contribute to news articles quarterly. 1 6 0 0 changes. public.

Utilize website for project planning feedback from public. n/a n/a 1 1

Hold public meetings for significant code changes and projects being administered by the Public Meetings Yes 1 0 0 department or partner agencies.

ANALYSIS: Planning & Zoning - Planning and Zoning meetings were minimal in FY2021 due to a combination of Covid, fewer subdivision or zoning reviews and lack of quorum for meetings. Parks & Recreation Comprehensive Plan Update - Parks and Recreation committee meetings were minimal in FY2021 due to Covid, lack of quorum and the failure of the Assembly to reestablish the committee in a timely manner after it extinguished on 12/31/20 per KIBC 2.100.180. Title 16 - Changes and corrections to Title 16 - Subdivision Code, were adopted in FY2021. Title 17 - Staff made minor changes and updates to Title 17 in FY2021. Staffing Levels - Staffing in CDD was at 100% temporarily in FY2021, then fell to 3 of 6 positions filled. At this time, only one planner position is actively being recruited for. Recruiting is slow and the pool of qualified candidates is extremely small. Attempts will be made into FY2022 to fill the secretary, associate planner and director positions.

SIGNIFICANT BUDGET CHANGES: The FY2021 budget is $171,350 lower than the amended FY2020 budget.

COMMUNITY DEVELOPMENT (CONT.) FY2022

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 364,544 $ 261,668 $ 354,793 $ 291,998 $ 280,080 Fringe Benefits 255,130 173,949 247,545 225,642 190,814 Professional Services 21,423 37,167 10,000 15,768 8,000 Contributions - - - - Legal Services 11,984 7,053 7,000 10,959 10,000 Support Goods & Services 253,418 112,740 107,583 109,970 101,106 Capital Outlay - - - - Allocated to other funds (500) - - - - Operating Transfers 65,200 - - - - Total Expenditures $ 971,199 $ 592,577 $ 726,921 $ 654,336 $ 590,000

Personnel FY2018 FY2019 FY2020 FY2021 FY2022 Personnel Actual Actual Actual Actual Actual Community Development Director 1 1 1 1 1 Associate Planner/Enforcement 1 0 0 0 1 Associate Planner/Long Range Planning 1 1 1 0 1 Secretary lll 1 1 1 1 1 Code Enforcement Officer 1 0 0 1 1 GIS Analyst 1 0 0 1 1 Total Number of Employees 6 3 3 4 6

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BUILDING OFFICIAL FY2022

PROGRAM DESCRIPTION: The Kodiak Island Borough Building Inspection Program ensures compliance with adopted building codes and related zoning codes. The Borough, by means of a Memorandum of Agreement, uses 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. This ensures that every new construction project in the Kodiak Island Borough complies with applicable adopted building codes and fire codes.

GOALS AND OBJECTIVES: • Continue a positive relationship between the City of Kodiak and the Kodiak Island Borough Building Inspection contract. • Encourage and enable the continuing education of the building inspectors. • Encourage and enable the maintenance of the City's delegated plan review authority from the State of Alaska and maintenance of the AHFC building inspections program approval. • Encourage and enable the City to maintain and improve their Insurance Service Office (ISO) rating.

ANALYSIS: The City of Kodiak provides monthly and annual reports outlining their building permitting activities, both inside and outside the City of Kodiak. The monthly/annual valuation and permit reports are then reviewed by the Community Development Department.

In FY2021 the City of Kodiak provided the following report for the Kodiak Island Borough boundaries: Building Permits: 85 Plumbing Permits: 51 Electrical Permits: 95

Inspections related to these permits are performed as required by Building Department personnel. The Building Inspection Department will continue to annually review the Memorandum of Agreement between the City of Kodiak and the Kodiak Island Borough for the provision of building inspection services within the road system. The Memorandum of Agreement will then be placed on the Assembly's agenda at the beginning of each calendar year for review and consideration.

SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2022.

BUILDING OFFICIAL (CONT.) FY2022

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ - $ - $ - $ - Fringe Benefits - - - - - Professional Services 167,430 164,173 140,000 102,375 140,000 Contributions - - - - - Legal Services - - - - - Support Goods & Services 20,642 20,491 20,591 20,491 20,491 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfer - - - - - Total Expenditures $ 188,072 $ 184,664 $ 160,591 $ 122,866 $ 160,491

Personnel FY2017 FY2018 FY2019 FY2020 FY2021 Personnel Actual Actual Actual Actual Budget There is no personnel for this department. Total Number of Employees - - - - -

ECONOMIC DEVELOPMENT FY2022

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.

GOALS AND OBJECTIVES: • Engage citizens in understanding the value of establishing an economic development entity. • Promote the value of having community leaders at the table when effects on fish policy are up for discussion. • Encourage the preservation and growth of Kodiak’s natural fisheries. • Promote economic diversification. • Support different community entities in collaborating and creating partnerships in order to strengthen opportunities for economic development.

ANALYSIS: The Borough does not have dedicated Economic Development staff. However, the goal of the economic development funds in FY2022 is to assist the local fishing community to preserve Kodiak’s fisheries.

SIGNIFICANT BUDGET CHANGES: No significant changes from FY2021 to FY2022.

Personnel FY2018 FY2019 FY2020 FY2021 FY2022 Personnel Actual Actual Actual Actual Actual There is no personnel for this department. Total Number of Employees - - - - -

GENERAL ADMINISTRATION FY2022

PROGRAM DESCRIPTION: The function of the General Administration department is to provide for organization- wide needs such as basic office supplies, employee training, and recognition.

GOALS AND OBJECTIVES: Provide continuing education opportunities to department staff to increase efficiency and maintain/increase knowledge with applicable state and federal laws.

• Maintain the Drug-Free Workplace program, including training for all employees. • Maintain the Blood Borne Pathogens Training program for all employees to comply with Occupational Safety and Health Administration (OSHA) standards. • Maintain the quarterly safety training program for all employees to comply with Occupational Safety and Health Administration (OSHA) Standards. • Continue award programs to recognize outstanding employees. • 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.

ANALYSIS: This department provides for basic needs for the entire Borough to function such as postage and stationary, as well as for items that benefit all employees such as safety training and recognition through an employee award system. New quarterly safety training modules by a third-party vendor have been added to comply with OSHA standards.

SIGNIFICANT BUDGET CHANGES: There is an increase in expenditures in the amount of $149,813. Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 1,433 $ 772 $ 1,500 $ 481 $ 42,496 Fringe Benefits 3,250 8,120 3,665 (126) 35,508 Professional Services Audit Expenses 107,201 89,050 108,000 101,030 103,000 Contracted Services 108 109 125 100 125 Contributions 103,931 130,576 - - - Legal Services - - - - - Support Goods & Services 133,696 83,899 652,959 145,822 215,990 Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures $ 349,619 $ 312,526 $ 766,249 $ 247,306 $ 397,119

Personnel FY2018 FY2019 FY2020 FY2021 FY2022 Personnel Actual Actual Actual Actual Budget There is no personnel for this department. Total Number of Employees - - - - -

PARKS AND RECREATION FY2022

PROGRAM DESCRIPTION: The major function of this program is to operate and maintain Borough parks, trails, trailheads and provide informational and mapping materials associated with Borough recreational activities. The Parks and Recreation department continues to develop renewal and replacement plans for all parks. The parks and trails maintained by the KIB Parks and Recreation include: Sargent Creek Park (Bell Flats) Panamaroff Park (Bell Flats) Otmeloi Park White Sands Beach Termination Point Trail Mill Bay Beach Island Lake Park & Boat Launch Harlequin Park The Bike Path (This crosses both KIB and City of Kodiak Property)

GOALS AND OBJECTIVES: Provide the Borough communities with save and enjoyable parks, trails, and open space. • Maintain equipment and clear brush at parks. • Replace or remove unsafe equipment causing liability. • Brushing, stabilizing, and hardening trails. • Garbage removal and clean-up for parks and trails • Snow removal and ice control for the bike path.

Increase community involvement to help develop improvements for parks and trails. • Continue to offer public meetings through the Parks and Recreation committee.

ANALYSIS: Due to budget concerns, funding for this department was decreased for FY2022. Maintenance and other related services will be reduced to match budget constraints.

SIGNIFICANT BUDGET CHANGES: The budget was decreased by $39,772 for FY2022. Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 11,570 $ 12,289 $ 29,500 $ 7,084 $ 7,371 Fringe Benefits 3,219 3,030 6,272 3,091 5,965 Professional Services 1,055 1,350 10,000 7,525 10,000 Contributions - - - - - Legal Services - - - - - Support Goods & Services 41,252 15,893 26,000 1,849 8,664 Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures $ 57,096 $ 32,562 $ 71,772 $ 19,549 $ 32,000

Personnel FY2017 FY2018 FY2019 FY2020 FY2021 Personnel Actual Actual Actual Actual Actual There is no personnel for this department. Total Number of Employees - - - - -

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EMERGENCY PREPAREDNESS FY2022

PROGRAM DESCRIPTION: Alaska Statute 26.23.060 (b) requires Alaska political subdivisions to be responsible for disaster preparedness and coordination of response. This fund is intended to provide funds for electricity and maintenance associated with the Siren Alert Warning Systems (SAWS), which are also known as Tsunami sirens.

GOALS AND OBJECTIVES: Operate and maintain the community Siren Alert Warning Systems (SAWS). • Maintain and replace sirens as needed. Ensure the availability of qualified staff to fill critical Incident Management Team (IMT) positions). • Coordinate with the State of Alaska Department of Homeland Security and Emergency Management (DHS&EM) to facilitate Incident Command System (ICS) overview for executives/senior officials training for all Borough elected officials. • Establish a Borough policy that requires all Borough employees to complete the basic online ICS 100, 200, 700, and 800 courses. • Fund advanced ICS 300, 400 and IMT position specific training opportunities for key Borough personnel. Staff participation in an annual exercise with our emergency management partners. • Exercise the Kodiak Area Emergency Operations Plan by developing and facilitating at least one joint Borough staff/emergency management partner disaster drill in FY2021. Update the Kodiak Area Emergency Operations Plan and Kodiak Island Borough Hazard Mitigation Plan • Begin the annual review of the Kodiak Area Emergency Operations Plan update by the Emergency Services Council. Assist remote communities with emergency preparedness efforts. • Collaborate with the DHS&EM provided consultant and our remote communities to update their respective Hazard Mitigation Plan Annexes. • Assist our remote communities with the development of local emergency response plans utilizing the DHS&EM Small Community Emergency Response Plan (SCERP) template. • Assist in the development of tsunami evacuation maps for our remote communities. • Coordinate with DHS&EM to arrange ICS training opportunities for our remote communities.

EMERGENCY PREPAREDNESS, CONT. FY2022

ANALYSIS: FY2021 saw very little use of this budget. In FY2022, staff hopes to utilize the funding to provide and obtain emergency preparedness equipment and to continue upgrades to tsunami sirens.

SIGNIFICANT BUDGET CHANGES: The Emergency Preparedness budget increased $7,655 for FY2022.

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 5,028 $ 423 $ - $ 1,328 $ 9,300 Fringe Benefits 2,637 251 - 774 7,495 Professional Services 400 - 20,000 101 15,000 Contributions - - - - - Legal Services - - - - - Support Goods & Services 6,241 3,804 20,950 3,051 17,200 Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures $ 14,307 $ 4,479 $ 40,950 $ 5,254 $ 48,995

Personnel FY2018 FY2019 FY2020 FY2021 FY2022 Personnel Actual Actual Actual Actual Budget There is no personnel for this department. Total Number of Employees - - - - -

ANIMAL CONTROL FY2022

PROGRAM DESCRIPTION: The Kodiak Island Borough contracts with the City of Kodiak to provide for Animal Control Services. The goal of the program is to have officers patrol all neighborhoods as needed to address loose dogs and cats, investigate nuisance animals and to operate a shelter to house them. Animal Control Services also encourages compliance with Borough pet licensing program and leash requirements where and when applicable. The contract between the Borough and the City states that the City will provide the Patrol Officer(s), the vehicle(s), and the shelter (which is contracted to the Humane Society of Kodiak). The humane shelter is used to re-unite animals with the owners and also as an adoption center for surrendered or abandoned animals of Kodiak. The shelter ensures that impounded animals are current on rabies vaccinations before being released back to the public. This arrangement works for the vast majority of animal control cases but does not work for large animals such as horses. In the past the Borough has contracted with the Kodiak State Fair and Rodeo Association to hold large animals until any issue is resolved. The Borough’s Enforcement Officer and the City's Animal Control personnel will work closely on some cases. The Community Development Department administrates and oversees and Animal Control Fund.

GOALS AND OBJECTIVES: Continue a positive relationship between the City of Kodiak and the Kodiak Island Borough for community Animal Control. • Respond to citizen complaints outside the City of Kodiak regarding animal nuisances, dangerous animals, and animal cruelty. • Enable and promote the continued contract between the City of Kodiak and the Humane Society of Kodiak for providing veterinary services as required to ensure vaccination. • Enable and promote the continued contract between the City of Kodiak and the Humane Society of Kodiak for providing shelter services.

ANALYSIS: The City of Kodiak provides reports on an annual and as-requested basis outlining their animal control activities, both inside and outside the City of Kodiak. For the last full reporting year (FY2021) through May 4, 2021, the City provided the following services for Borough boundaries: • 63 Impounds • 57 Licenses • 1 Citation • 20 Aggressive Animals • 23 Cruelty • 24 Annoying Animals

• 250 Actual Calls • 241 Actual Responses • 6 calls to Pasagshak/Chiniak

SIGNIFICANT BUDGET CHANGES: The FY2022 budget increased by $2,300 per the contract.

The Humane Society of Kodiak is a 501C3 that is locally organized and is not affiliated with the Humane Society of the United States.

ANIMAL CONTROL (CONT.) FY2022

Personnel FY2018 FY2019 FY2020 FY2021 FY2022 Personnel Actual Actual Actual Actual Budget There is no personnel for this department. Total Number of Employees - - - - -

EDUCATION, CULTURE, AND RECREATION FY2022

PROGRAM DESCRIPTION: This program consists of contributions to non-profit agencies that provide educational, cultural, and/or recreational opportunities for the citizens of the Kodiak Island Borough.

GOALS AND OBJECTIVES: 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. • Provide funding for high-quality wide-appeal programs for the benefit of Borough residents.

ANALYSIS: This fund was established to reflect money allocated to non-profit agencies. As the local philosophy regarding the Borough's funding of these agencies has changed, the accounting for those funds has also changed. A fund titled Non-Profit Funding accounts for the discretionary funding of non-profit agencies while this account now reflects payment of actual costs for the North Star PTA provision of streetlighting near the school, and pass through monies from the State of Alaska to the Karluk IRA Council, a tribal entity.

SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2022.

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ - $ - $ - $ - Fringe Benefits - - - - - Professional Services - - - - - Contributions - - - - - North Star PTA 4,683 4,658 4,800 4,608 4,800 Karluk IRA Council 15,789 15,789 16,000 15,789 15,789 Legal Services - - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Total Expenditures $ 20,472 $ 20,447 $ 20,800 $ 20,397 $ 20,589

Personnel FY2018 FY2019 FY2020 FY2021 FY2022 Personnel Actual Actual Actual Actual Budget There is no personnel for this department. Total Number of Employees - - - - -

KODIAK COLLEGE AND LIBRARIES FY2022

PROGRAM DESCRIPTION: This department is an aspect of non-profit funding that helps support education in the Borough.

GOALS AND OBJECTIVES: Provide educational opportunities through the associate degree level of schooling and provide resources for more materials in the Borough’s public libraries. • Contribute to Kodiak College.

ANALYSIS: The residents of the community of the Kodiak Island Borough have voiced their preference for continued funding of the contribution to Kodiak College for their Jump Start program which assists high school students transition into college classes, therefore the appropriation has remained. The local public libraries are no longer provided funds from this department.

SIGNIFICANT BUDGET CHANGES: Funding for this program was increased by $50,000 in FY2022.

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ - $ - $ - $ - Fringe Benefits - - - - - Professional Services - - - - - Contributions Kodiak College 50,000 50,000 50,000 50,000 100,000 Libraries - - - - - Legal Services - - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - Total Expenditures $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 100,000

Personnel FY2018 FY2019 FY2020 FY2021 FY2022 Personnel Actual Actual Actual Actual Actual There is no personnel for this department. Total Number of Employees - - - - -

NON-PROFIT FUNDING FY2022

PROGRAM DESCRIPTION: This department has been established to account for grants awarded to non-profit entities in the community to assist them in providing their community services.

GOALS AND OBJECTIVES: Provide financial assistance to non-profit agencies to ensure their financial viability to provide community services for the residents of the Borough.

• Provide funding for high-quality wide-appeal programs for the benefit of Borough residents. • Provide an efficient, effective, and consistent application process.

ANALYSIS: The Borough has a long history of providing funds to nonprofit entities to assist them in providing services that are important to the community. As it has become more challenging to balance the budget without raising the tax rate, it has been equally challenging to maintain this program. At this time, the funding has been reduced but the program remains in place.

SIGNIFICANT BUDGET CHANGES: Due to ongoing hardships related to COVID-19, funding was increased for FY2022.

NON-PROFIT FUNDING (CONT.) FY2022

Non-Profit Funding - Health & Social Services FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ - $ - $ - $ - Fringe Benefits - - - - - Professional Services - - - - - Contributions Safe Harbor 4,100 - - - - Humane Society 4,100 3,100 3,100 3,100 - Women's Resource & Crisis Center 47,500 47,500 20,000 20,000 - American Red Cross 4,100 3,100 3,100 3,100 - Kodiak Baptist Mission 27,200 - - - - Hospice of Kodiak 4,100 3,100 3,100 3,100 - Senior Citizen Support 20,800 21,000 20,000 20,000 - Hope Community Resources - - 3,100 3,100 - Salvation Army 12,000 20,000 20,000 20,000 - Brother Francis Shelter 34,400 36,000 20,000 20,000 - Funding/Non-Profits - - - - 85,000 Legal Services - - - - - Support Goods & Services - - - - - COVID-19 Expenditures - - 1,122,500 839,525 Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Sub-Total $ 158,300 $ 133,800 $ 1,214,900 $ 931,925 $ 85,000

Non-Profit Funding - Education, Culture & Recreation FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ - $ - $ - $ - Fringe Benefits - - - - - Professional Services - - - - - Contributions Alutiiq Museum & Archaelogical Repository - - 4,000 4,000 - KMXT Public Radio 4,100 3,700 4,000 4,000 - Kodiak Arts Council 4,100 3,100 3,100 3,100 - Kodiak Area Mentor Program 4,100 4,500 4,750 4,750 - KANA Family Center 4,100 3,100 3,100 3,100 - Kodiak Soil & Water Conservation - 3,100 3,100 3,100 - Kodiak Teen Court 4,100 3,100 - - - Kodiak Maritime Museum - - 4,000 4,000 - Kodiak Rodeo & State Fair - - 4,000 4,000 - Rural Alaska Community Action Program 4,100 3,100 3,100 3,100 - Women's Bay Community Council - - 1,000 1,000 - St. Paul Preschool - - 1,200 1,200 - Funding/Non-Profits - - - - 85,000 Legal Services - - - - - Support Goods & Services - - - - - COVID-19 Expenditures - - 4,183,679 4,289,730 - Capital Outlay - - - - - Allocated to Other Funds - - - - - Operating Transfers - - - - - Sub-Total $ 24,600 $ 23,700 $ 4,219,029 $ 4,325,080 $ 85,000 Total Expenditures $ 182,900 $ 157,500 $ 5,433,929 $ 5,257,005 $ 170,000

TRANSFERS FY2022

PROGRAM DESCRIPTION: Money is transferred from the General Fund to other funds of the Kodiak Island Borough.

GOALS AND OBJECTIVES: There are no specific goals and objectives listed for this department; they are delineated in the fund receiving the transfer.

ANALYSIS: Not applicable.

SIGNIFICANT BUDGET CHANGES: Due to the State of Alaska not providing for funding for the LEPC Grant or Debt Service Reimbursement programs, the General Fund mill rate includes amounts transferred to those funds.

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ - $ - $ - $ - Fringe Benefits - - - - - Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Allocated to Other Funds - - - - Operating Transfers - Education Support Fund - - - - - Land Sales - - - - - Buildings & Grounds - - - - - LEPC - 13,000 10,072 10,072 - Fire District #1 - - - - - Debt Service - - 3,016,076 3,016,076 2,303,196 Transfers to Fund 270 - - - - - Transfers to Capital Projects - - - - - Solid Waste - - - - - Hospital - - - - - KFRC - - - - - Total Expenditures $ - $ 13,000 $ 3,026,148 $ 3,026,148 $ 2,303,196

SPECIAL REVENUE FUNDS

Special Revenue Fund Description Special revenue funds account for revenues obtained via specific taxes or other designated revenue sources. They are usually mandated by statue, charter, or local ordinance to fund specific functions or activities. Examples are fire protection and road service districts. Unlike the general fund, which has one revenue fund and many departments within it to account for the various expenditures, each special revenue fund is a complete set of accounts, one for revenue and one for expenditures.

Special Revenue funds do not include debt service, capital projects or enterprise funds.

Funds included in this section are: • Education Support • Land Sales Fund – Resource Management • Buildings and Grounds o Borough Building o Mental Health Center o Closed Schools (Larsen Bay & Karluk) o School Buildings Major Repairs o Various Borough Buildings o Projects Office • Local Emergency Planning Committee (LEPC) • Women’s Bay Road Service Area • Service Area #1 • Service Area #2 • Monashka Bay Road Service Area • Bay View Road Service Area • Fire Protection Area #1 • Women’s Bay Fire Department • KIB Airport Fire Protection District • Woodland Acres Lighting District • Trinity Islands Lighting District • Mission Lake Tide Gate • Facilities Fund • Tourism Development • Commercial Passenger Vessel

REVENUE SOURCES AND SPECIAL REVENUE FUND ESTIMATES

The total revenue budget for all Special Revenue Funds is $14,569,366.

Area-Wide (all properties within the Borough) Net Taxable Value Mill Leavy Kodiak Island Borough School District $ 1,494,747,221 6.99

Non-Area-Wide (within Service Area Boundaries only) Womens Bay Road Service Area 2.50 Road Service Area No.1 1.50 Monashka Bay Road Service Area 1.99 Bay View Road Service Area 1.47 Fire Protection Area No. 1 1.50 Womens Bay Fire Department 1.25 KIB Airport Fire Protection District 1.25 Woodland Acres Street Light Area 0.10 Trinity Lslands Street Light Area 0.15 Mission Lake Tide Gate Area 0.25

Property Tax: Real and Personal Property Taxes. Several service areas levy a mill rate and collect taxes on the property located within their boundaries. The following table shows these service areas, the net taxable value of the property within their boundaries, and the mill rate. The net taxable value is the total assessed value of property less any applicable exemptions. Generally, 90% of property taxes are from real property and 10% from personal property. Overall, the current Borough-wide delinquency rate is approximately 0.2%.

Transient Accommodation Tax. The Borough assesses a tax on overnight accommodations provided within the Kodiak Island Borough’s boundaries. Cities within the Borough’s boundaries that assess their own accommodation tax on businesses within city boundaries are exempt from collecting the Borough’s tax. The FY2022 revenue budgeted for this tax is $15,200. This is due to the COVID-19 continuing to impact air travel and tourism in general.

Motor Vehicle Registration Tax. AS 28.10.431 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 monthly. This method of collection was created in anticipation of reducing the delinquency rate for personal property taxes and improves collection of taxes on vehicles. Based on prior year collections, the revenues from this source are budgeted at $200,000. Per KIB 3.60.020, for FY2021 these revenues will be collected in the Debt Service fund. Prior to FY2020, the funds were collected in the Education Support Fund.

Licenses & Permits. Money received by the Borough and service districts for use of land that they own. The total revenue anticipated for all special revenue funds is $33,600.

Rents and Royalties: Office Rent. The Borough charges rent for office space to Borough departments and outside agencies that have offices within Borough buildings. For fiscal year 2022, the Borough is charging an average rate of $2.20 per square foot which equates to $830,531 in rental revenues.

Rents and Royalties: Gravel Sales. The Kodiak Island Borough has leased out four parcels of land for gravel extraction. The lease requires that a royalty be paid on the amount of gravel extracted. The $8,000 of revenue we expect to receive in fiscal year 2022 is based on estimates and averages of gravel extractions in prior years. The current royalty rate is $2.00 per cubic yard.

Land Sales Activities. Periodically, the Borough sells land, typically by public auction. Two objectives are met by these land sales: the Borough receives revenue, and land is put into private ownership. For FY2022 the estimated revenue from land payments is $29,600.

State Shared Revenues: State Grants. Money received by the Borough to be used on specified projects. This revenue funds activities in the Local Emergency Planning Committee Fund. The State of Alaska cut this program in FY2020 due to budgetary constraints and this was again the case in FY2022.

State Shared Revenues: Cruise Ship Tax. Beginning in FY2019, cruise ship tax sharing revenues have been accounted for in a separate fund. Previously the revenue was accounted for within the Tourism Development fund. Based on past collections, the estimated FY2022 revenue is $0. The cruise ship industry has been impacted heavily due to the COVID-19 pandemic, as well as tourism in general.

Other Financing Sources: These are other sources of money that are not earned revenue. These include items such as use of fund balance or transfers in from other funds.

Penalties and Earnings on Investments. The majority of this revenue is from net earnings on investments in the Facilities Fund. It is estimated that these net earnings (interest income added to the increase and/or decrease of the market value of investments) will be $340,000. The estimated amount of penalties and net earnings on all special revenue funds is $26,337. The earnings budgeted are conservative and based on economic trends.

Miscellaneous. Money received that does not fit in any other defined category that is generally one-time in nature.

SPECIAL REVENUE FUND RECAP Special Revenue Funds Budget Summary Womens Monashka Bay View Bay Service Servi ce Ba y Rd. Education Buildings & Service Area Area Service Service Support Land Sales Grounds LEPC Area No. 1 No. 2 Area Area

Estimated Fund Balance $ 35,276 $ 1,440,318 $ 1,621,891 $ 22,824 $ 67,251 $ 950,895 $ 6,367 $ 255,069 $ 51,723

Revenues Property Tax 10,455,244 - - - 212,000 433,000 - 52,116 14,500 Penalties/Interest on Tax ------Non Ad Valorem Tax ------Sales Tax ------Licenses & Permits - 6,000 - - 27,600 - - - - State Shared Revenue - - 6,266 ------Federal Grants ------State Grants ------Rents & Royalties - 8,000 830,531 ------Charges for Services ------Land Sale Activity - 29,600 ------Interest Earnings - 18,000 5,000 ------Miscellaneous - 80 ------Other Funding Sources - - 846,596 3,000 ------Transfers In - - 5,000 ------

Total Revenues & Transfers In 10,455,244 61,680 1,693,393 3,000 239,600 433,000 - 52,116 14,500

Total Available Funds 10,490,520 1,501,998 3,315,284 25,824 306,851 1,383,895 6,367 307,185 66,223

Expenditures Education 10,455,244 ------Resource Management - 61,680 ------KIB Buildings - - 1,693,393 ------LEPC - - - 3,000 - - - - - Road Maintenance - - - - 239,600 433,000 - 52,116 14,500 Public Safety ------Economic Development ------Transfers Out ------

Total Use of Funds 10,455,244 61,680 1,693,393 3,000 239,600 433,000 - 52,116 14,500

Est. Funds Available 6/30/22 $ 35,276 $ 1,440,318 $ 1,621,891 $ 22,824 $ 67,251 $ 950,895 $ 6,367 $ 255,069 $ 51,723

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SPECIAL REVENUE FUND RECAP Special Revenue Funds Budget Summary, continued KIB Airport Woodland Trinity Fire Womens Fire Acres Islands Mission Tourism Commercial Protection Bay Protection Street Street Lake Tide Facilities Developm Passenger Area No. 1 Fire Dept. District Light Area Light Area Gate Fund ent Vessel TOTAL

Estimated Fund Balance $ 372,536 $ 769,646 $ 53,752 $ 20,596 $ 31,479 $ 63,641 $ 39,925,298 $ 76,620 $ 153,535 $ 45,918,718

Revenues Property Tax 642,147 108,500 18,670 5,540 1,875 1,572 - - - 11,945,164 Penalties/Interest on Tax ------Non Ad Valorem Tax ------Sales Tax ------Licenses & Permits ------33,600 State Shared Revenue 5,000 ------11,266 Federal Grants 100,000 ------100,000 State Grants ------Rents & Royalties ------15,200 - 853,731 Charges for Services - 16,700 ------16,700 Land Sale Activity ------29,600 Interest Earnings 500 2,000 280 - - 557 340,000 - - 366,337 Miscellaneous 2,000 12,000 ------14,080 Other Funding Sources 4,903 75,000 - - - - 204,389 60,000 - 1,193,888

Transfers In ------5,000

Total Revenues & Transfers In 754,550 214,200 18,950 5,540 1,875 2,129 544,389 75,200 - 14,569,366

Total Available Funds 1,127,086 983,846 72,702 26,136 33,354 65,770 40,469,687 151,820 153,535 60,488,084

Expenditures Education ------10,455,244 Resource Management ------61,680 KIB Buildings ------1,693,393 LEPC ------3,000 Road Maintenance ------739,216 Public Safety 754,550 214,200 18,950 5,540 1,875 2,129 - - - 997,244 Economic Development ------75,200 - 75,200

Transfers Out ------544,389 - - 544,389

Total Use of Funds 754,550 214,200 18,950 5,540 1,875 2,129 544,389 75,200 - 14,569,366

Est. Funds Available 6/30/22 $ 372,536 $ 769,646 $ 53,752 $ 20,596 $ 31,479 $ 63,641 $ 39,925,298 $ 76,620 $ 153,535 $ 45,918,718

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EDUCATION SUPPORT FUND FY2022

PROGRAM DESCRIPTION: The Education Support Fund encompasses the transfer of state-required local funding to the Kodiak Island Borough School District for operational costs. This program includes the purchase of liability, workers’ compensation and property insurance, funding the annual audit, snow removal, and an annual appropriation.

GOALS AND OBJECTIVES: Providing adequate funding to the Kodiak Island Borough School District to ensure that high-quality education and safety will be provided to all children. • Provide snow removal and sanding to all schools within the district. • Identify a school facility maintenance list.

ANALYSIS: Under State law, the Borough must annually contribute a dollar amount to the School District that falls within a specific range. The top of this range is sometimes referred to as “the cap.” There is a rather complicated formula done by the State of Alaska Department of Education and Early Development which sets both the minimum and maximum contribution range that the Borough will make to the school district. For FY2022, the Borough contributed 87% of the maximum amount possible under state law to the school district.

SIGNIFICANT BUDGET CHANGES: The funding for FY2022 increased $944,266 from the FY2021 funding and, as was the case in FY20, the funding is by a mill rate levy alone. In previous years revenues received from motor vehicle registration taxes (MVRT) were collected by this fund and thereby reduced the mill rate for this fund by the amount of estimated revenues. However, the MVRT revenues will now be collected in the Debt Service fund.

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EDUCATION SUPPORT FUND (CONT). FY2022

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Real Property Tax $ 9,795,955 $10,562,780 $ 9,390,089 $ 9,368,146 $ 10,455,244 Penalties/Interest on Tax - - - - - Non Ad Valorem Tax 220,392 - - - - Sale Tax - - - - - Licenese & Permits - - - - - State Shared Revenue - - - - - State Grants - - - - - Rent & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings - - - - - Miscellaneous - - - - - Other Funding Sources - - - - - Operating Transfer - - - - - Total Revenues $10,016,348 $10,562,780 $ 9,390,089 $ 9,368,146 $ 10,455,244

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ - $ - $ - $ - Fringe Benefits - - - - - Professional Services - - - - - Contracted Services - - - - - Audit Services 41,000 49,250 50,000 51,020 50,000 Legal Services - - - - - Contributions - - - - - Service District Maint. - - - - - Support Goods & Services 373,050 541,772 380,000 499,869 380,000 Debt Service-Interest - - - - - Capital Outlay - - - - - Operating Transfers 9,506,526 9,880,421 8,960,089 8,960,089 10,025,244 Total Expenditures $ 9,920,576 $10,471,443 $ 9,390,089 $ 9,510,978 $ 10,455,244

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LAND SALES – RESOURCE MANAGEMENT FY2022

PROGRAM DESCRIPTION: The Kodiak Island Borough holds title to approximately 47,000 acres of land within the Kodiak Archipelago valued at 70-100 million dollars. It is the mission of the Resource Management Department of the Kodiak Island Borough to balance demand for public recreation access, development, industrial use, and resource extraction to meet the needs of Kodiak’s economic, recreational, and industrial needs. Generally, the Kodiak Island Borough seeks to manage lands in such a way that minimize day-to-day tasking related to land resource management and allows maximum access and enjoyment of Borough lands by the public. Therefore, the Resource Management Department focus is to develop means and methods to balance the resource priorities and needs of the community.

GOALS AND OBJECTIVES: Manage Borough lands to meet the needs of the social, economic, and industrial development of the Kodiak Island Borough. • Work with the Borough Lands Committee to identify potential land acquisitions, disposals, zoning type demands, and other management issues. • Inventory and develop an electronic record of all KIB-Owned Lands and Facilities. • Assess anticipated needs and available resources in Kodiak Island Borough. • Develop and publish a Land and Resource Management Policy for Kodiak Island Borough. • Continuously examine land management practices and assess utility towards stated goals of the KIB Resource Management Office. • Examine the success of Borough Land Sales towards the relief of housing shortages in the Kodiak Island Borough. Minimize operating costs of Borough-owned facilities to the KIB Tax Base. • Work with the KIB Assembly to develop a long-term management strategy and spending criteria for the Kodiak Island Borough Land Sales Fund. • Work with Engineering and Facilities to maintain sufficient leases to cover ownership and maintenance costs of KIB Buildings. • Continue minimally demanding land management practices.

ANALYSIS: No analysis provided since the resource manager position is vacant.

SIGNIFICANT BUDGET CHANGES: Salaries and benefits have been reduced to zero, funds for surveying activities have been increased, and funds have been committed to capital projects.

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LAND SALES – RESOURCE MANAGEMENT (CONT.) FY2022

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Property Tax $ - $ - $ - $ - $ - Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits 6,000 6,000 6,000 7,200 6,000 State Shared Revenue 3,312 - - - - State Grants - - - - - Rents & Royalties 11,049 85,775 8,000 38,202 8,000 Charges for Services - - - - - Land Sale Activity 76,676 28,902 28,464 62,805 29,600 Interest Earnings 52,161 37,763 25,000 4,893 18,000 Miscellaneous 305 1,307 80 100 80 Other Funding Sources - - 238,623 - - Operating Transfers - - - - - Total Revenues $ 149,502 $ 159,748 $ 306,167 $ 113,200 $ 61,680

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 70,151 $ 1,230 $ 1,000 $ 1,000 $ 1,000 Employee Benefits 45,525 615 - - - Professional Services 22,503 2,905 - - - Legal Services - - - - - Contributions - - - - - Service District Maint. - - - - - Support Goods & Services 55,842 24,266 55,167 19,472 60,680 Capital Outlay - - - - - Operating Transfers - 100,000 250,000 - - Total Expenditures $ 194,020 $ 129,016 $ 306,167 $ 20,472 $ 61,680

Personnel Personnel FY2018 FY2019 FY2020 FY2021 FY2022 Resource Manager 1 1 0 0 0 Total Number of Employees 1 1 0 0 0

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BUILDING AND GROUNDS – ALL DEPARTMENTS FY2022

PROGRAM DESCRIPTION: This program funds the operation and maintenance of Borough-owned buildings, parking lots, parks, and public grounds. Specifically, this includes snow removal, lawn maintenance, park maintenance, and general building and grounds maintenance. It also includes rental of Borough-owned buildings. Budgeted departments within the Building and Grounds Fund are:

• Borough Building • Mental Health Center • School Buildings Major Repairs • Closed Schools (Larsen Bay & Karluk) • Various Borough Buildings • Project Office

GOALS AND OBJECTIVES: Provide adequate annual maintenance to Borough-owned buildings, parks, and other Borough facilities in a safe manner to prevent liability issues and ensure community safety. • Review checklist annually of KIB Building and Grounds to ensure funding is available within each year’s budget. • Provide funding for snow removal and parking lot maintenance around all Borough facilities, including school buildings.

ANALYSIS: Budget analysis for this fund is detailed by individual departments listed above.

SIGNIFICANT BUDGET CHANGES: Reduced budget funding may reduce services.

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Property Tax $ - $ - $ - $ - $ - Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue 4,165 5,087 6,974 6,523 6,266 Federal Revenues - 12,667 - 48,447 - Rents & Royalties 817,904 816,890 813,251 821,294 830,531 Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 51,686 36,786 10,000 4,949 5,000 Miscellaneous 4,215 595 - 24,855 - Other Funding Sources - - 503,157 - 846,596 Operating Transfers 341,370 5,000 5,000 120,000 5,000 Total Revenues 1,219,341 877,025 1,338,382 1,026,068 1,693,393

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BUILDING AND GROUNDS – (CONT.) FY2022

BOROUGH BUILDING

PROGRAM DESCRIPTION: The Borough Building provides administrative office space for Borough Government and the City of Kodiak Government. It is also the site of the Borough Assembly Chambers. This department covers all routine maintenance and janitorial to the building. Engineering and Facilities administrates and operates the Building and Grounds Fund - Borough Building.

GOALS AND OBJECTIVES: Work towards funding for the renewal and replacement (R&R) and capital projects for this facility to ensure a safe environment for all employees. • Meet with the Assembly to discuss funding sources for R&R. • Meet with the Assembly to discuss funding sources for capital projects. • Provide routine maintenance for a safe environment and pleasant appearance. • Maintain adequate level of lawn maintenance. • Maintain adequate level of snow/ice removal. • Provide maintenance to the air handling and boiler systems and controls.

ANALYSIS: The Building and Grounds Fund - Borough Building currently continues to ensure pandemic and associated protective measures required for the health and safety of residents, visitors, elected officials and staff. The Engineering and Facilities Department is requesting Assembly funding for renewal, replacement, and renovation of the Borough Building for HVAC, emergency electrical generator replacement, hazardous material removal and security upgrades.

SIGNIFICANT BUDGET CHANGES: No major increases are requested in the FY2022 budget.

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 81,080 $ 85,553 $ 106,550 $ 85,882 $ 77,255 Employee Benefits 49,345 50,548 88,700 63,571 36,928 Professional Services 78,465 34,581 - 2,438 50,000 Legal Services - - - - - Contributions - - - - - Service District Maint. - - - - - Support Goods & Services 219,850 239,028 271,045 234,828 311,060 Capital Outlay 4,308 69 300,000 3,695 50,000 Operating Transfers 115,000 150,000 100,000 100,000 500,000 Total Expenditures $ 548,048 $ 559,778 $ 866,295 $ 490,414 $ 1,025,243

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BUILDING AND GROUNDS – (CONT.) FY2022

MENTAL HEALTH CENTER

PROGRAM DESCRIPTION: The Kodiak Island Borough leases the Mental Health Facility to Providence Kodiak Island Medical Center, which provides a variety of services including rehabilitation housing, therapy programs, and administration offices for the Providence Kodiak Island Counseling Center. The Borough is responsible for staffing for lease negotiations and provides some funding for maintenance. Engineering and Facilities administrates and operates the Building and Grounds Fund - Mental Health Center.

GOALS AND OBJECTIVES: Continue a positive relationship between Providence Kodiak Island Medical Center and the Kodiak Island Borough. • Provide annual maintenance funding to ensure safe usable facilities. • Provide review of maintenance tax request to ensure requests are required.

ANALYSIS: The Borough is providing minimal funding for maintenance requests. The facility lease is nearing expiration and the intent is to vacate this aging property. Minimal contingent maintenance funds have been provided for in this budget however maintenance tasks will be scrutinized to maintain the buildings in their current condition and minimize improvement projects.

SIGNIFICANT BUDGET CHANGES: Per the 2018 lease negotiation the Borough is required to provide up to $25,000 in funding for maintenance needs.

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 1,032 $ 203 $ 3,000 $ 24 $ - Employee Benefits 587 76 - 27 - Professional Services - - 15,000 - 15,000 Legal Services - - - - - Contributions - - - - - Service District Maint. - - - - - Support Goods & Services 27,597 4,267 28,800 4,722 28,850 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures $ 29,216 $ 4,547 $ 46,800 $ 4,773 $ 43,850

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BUILDING AND GROUNDS – (CONT.) FY2022

CLOSED SCHOOLS

PROGRAM DESCRIPTION: This program provides funding for the maintenance, operation, and utility costs of any Karluk and Larsen Bay closed school buildings to maintain the integrity of the building for future use. Engineering and Facilities administrates and oversees the Building and Grounds Fund - School Buildings.

GOALS AND OBJECTIVES: Manage the closure of any school facilities. • Request funding required for staffing and support services. • Provide ongoing utility service to maintain facility.

ANALYSIS: In FY2022 Karluk and Larsen Bay Schools are utilized for school and community use activities to ensure constant surveillance of these remote facilities. The pandemic has reduced repairs and maintenance required at the facilities due to travel restrictions put in place by the local authorities. The Larsen Bay facility requires minimal repair on the sprinkler system and glycol system for the HVAC.

SIGNIFICANT BUDGET CHANGES: Current budget has been based on FY2020 and FY2021 expenditures and minimal maintenance projects. All requested and required tasks will be reviewed and prioritized based on health and safety concerns and facility preservation.

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ - $ - $ - $ - Employee Benefits - - - - - Professional Services - - - - - Legal Services - - - - - Contributions - - - - - Service District Maint. - - - - - Support Goods & Services 101,558 161,733 317,200 158,500 384,000 Capital Outlay - - - - - Operating Transfers 125,000 50,000 25,000 - 25,000 Total Expenditures $ 226,558 $ 211,733 $ 342,200 $ 158,500 $ 409,000

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BUILDING AND GROUNDS – (CONT.) FY2022

SCHOOL BUILDINGS MAJOR REPAIRS

PROGRAM DESCRIPTION: This program provides funding for major repairs to the Borough-owned school facilities. The Kodiak Island Borough is responsible for repairs that exceed $10,000 in accordance with the current In-kind Agreement. The Engineering and Facilities Department administrates and oversees the Building and Grounds Fund - School Building Major Repair.

GOALS AND OBJECTIVES: Continue maintenance as per the In-Kind Agreement. • Provide financial back-up for unforeseen major maintenance repairs.

ANALYSIS: In FY2022 budget request is on hold for funding. Current planning and alternate funding has been redirected to capital projects to continue school maintenance and facility upgrades. The School Buildings Major Repairs Fund for professional service and support goods and services requests vary from year to year. The Borough and KIBSD staff continue to interact and prioritize required funding requests.

SIGNIFICANT BUDGET CHANGES: Budget reductions and alternative funding of capital projects continue to be evaluated for funding based on current budgetary difficulties.

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ - $ 3,000 $ - $ - Employee Benefits - - - - - Professional Services 7,650 510 20,000 12,080 125,000 Legal Services - - - - - Contributions - - - - - Service District Maint. - - - - - Support Goods & Services 32,068 9,113 25,000 121 55,200 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures $ 39,718 $ 9,623 $ 48,000 $ 12,201 $ 180,200

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BUILDING AND GROUNDS – (CONT.) FY2022

VARIOUS BOROUGH BUILDING

PROGRAM DESCRIPTION: This program funds the operation and maintenance of various smaller Borough-owned buildings, such as the Egan Way Cottages, Borough Annex Building, Borough Maintenance Facility. The Engineering and Facilities Department administrates and oversees the Building and Grounds Fund - Various Borough Buildings.

GOALS AND OBJECTIVES: Provide adequate annual maintenance to these facilities to prevent liability issues. • Continue to perform annual inspections of each of these facilities to provide for proper funding for projects identified in these inspections. • Revise the renewal and replacement schedule to ensure funding requests are based on priorities based on health, safety and facility stability.

ANALYSIS: In FY2022 the fund will continue routine maintenance of all facilities included in the Various Borough Buildings Fund. The exception may be if the boiler and electrical replacement and required upgrades are funded as capital projects.

SIGNIFICANT BUDGET CHANGES: The funding request has been maintained at a level request due to the current economic situation. All of the facilities covered within this fund require significant repairs, maintenance and system upgrades. All proposed expenditures will be analyzed for their priority to maintain facility integrity based and health and safety and facility preservation.

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 130 $ 1,130 $ 1,000 $ 4,460 $ - Employee Benefits 84 461 - 1,861 - Professional Services - - - - - Legal Services - - - - - Contributions - - - - - Service District Maint. - - - - - Support Goods & Services 7,694 4,177 35,000 9,234 35,100 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures $ 7,908 $ 5,768 $ 36,000 $ 15,555 $ 35,100

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BUILDING AND GROUNDS – (CONT.) FY2022

PROJECTS OFFICE EXPENSES

PROGRAM DESCRIPTION: The Engineering and Facilities Projects Division is responsible for managing the Borough's capital construction projects from concept through construction completion. This includes providing management for all the school bonded projects and any tsunami siren upgrades. The division works with end- users, design teams, consultants, funding agencies, and construction contractors to deliver projects in compliance with program budget, schedule, code, and legal requirements. The Projects Division provides staff support, coordination, and administration of the Architectural Review Board. The department also encourages community involvement to ensure projects meet the needs of the community by offering public held Architectural Review Committee meetings and community meetings if applicable. The project office also works on other non-capital projects funded by the Engineering and Facilities budget. Expenses for the Building and Grounds Fund Project Office are paid by ongoing projects where appropriate.

GOALS AND OBJECTIVES: Provide management for school bonded and other capital projects. • Work with design consultants, contractors, and user groups to complete construction projects. Provide management to complete non-capital projects. • Continue to take on and complete other non-capital projects as required by the needs of the Borough.

ANALYSIS: Expenses for the Projects Office are distributed proportionally through active projects.

SIGNIFICANT BUDGET CHANGES: FY2022 Budget reductions will drive capital projects specific to Enterprise Funds and allocated bond funds as funds are available. Expenditures FY2019 FY2020 FY2021 FY202 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services Employee Benefits Professional Services All expenses are allocated to capital projects or the Legal Services Engineering/Facilities Department. Contributions Service District Maint. Support Goods & Services Capital Outlay Operating Transfers Total Expenditures $ - $ - $ - $ - $ -

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LEPC – LOCAL EMERGENCY PLANNING COMMITTEE FY2022

PROGRAM DESCRIPTION: The Local Emergency Planning Committee (LEPC) of the Kodiak Island Borough has been established pursuant to federal and state laws. LEPC is required by federal law to perform the following duties:

• 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. • Serve as an advisory committee to local government with respect to emergency planning, training, and response.

GOALS AND OBJECTIVES: Facilitate region-wide preparedness training for government officials and emergency responders. • Develop and implement comprehensive training programs.

Facilitate region-wide emergency preparedness outreach efforts to better prepare residents in the event of a local disaster. • Facilitate Emergency Preparedness information booths at the Kodiak Crabfest and Bayside, Womens Bay, and City of Kodiak Fire Department open house events. • Provide Kodiak Area Emergency Preparedness Guides in English, Tagalog, and Spanish to various businesses, government offices, and the USCG base for dispersion to Kodiak residents and visitors.

Locally implement the requirements of SARA Title 3 (Federal Community Right-To-Know Program). • Maintain Kodiak's library of Tier II hazardous and toxic chemical storage facility reports. • Publish hazardous and toxic chemical storage facility Community Right-To-Know in local news publications annually, as required by Federal law.

ANALYSIS: Very little was done with the LEPC in FY2021 due to staffing changes and the inability to achieve a quorum at meetings. Additionally, the state cut all LEPC funding to municipalities for FY2020 and FY2021. The LEPC will be reviewing its members, reviewing its essential duties, and restructuring as needed to accommodate decreased funding. In FY2022 staff will continue to provide consistent review of submitted spill response plans for the Kodiak Island Borough.

SIGNIFICANT BUDGET CHANGES: Due to no grant funding from the State of Alaska for LEPC, the proposed FY2022 budget has been reduced.

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LEPC – LOCAL EMERGENCY PLANNING COMMITTEE (CONT.) FY2022

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Property Tax $ - $ - $ - $ - $ - Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - - - - State Grants 16,144 - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings - - - - - Miscellaneous - - - - - Other Funding Sources - - - - 3,000 Operating Transfers - 13,000 10,072 10,072 - Total Revenues $ 16,144 $ 13,000 $ 10,072 $ 10,072 $ 3,000

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 4,662 $ - $ - $ 2,409 $ - Employee Benefits 3,689 - - 256 - Professional Services - - - - - Legal Services - - - - - Contributions - - - - - Service District Maint. - - - - - Support Goods & Services 7,794 - 10,072 248 3,000 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures $ 16,144 $ - $ 10,072 $ 2,914 $ 3,000

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WOMEN’S BAY ROAD SERVICE DISTRICT FY2022

PROGRAM DESCRIPTION: The Women's Bay Road Service Area provides maintenance to roads within the service area, including snow removal, ice control, culvert, drainage ditch repair and maintenance, as well as asphalt pavement repair.

GOALS AND OBJECTIVES: • Provide safe, well drained and maintained road surfaces for the community. • Continue improving and maintaining drainage. • Continue maintaining paved road surfaces. • Identify and replace failed culverts as needed. • Provide timely management of snow and ice removal. • Maintain a project list.

ANALYSIS: FY2021 saw a continuation of annual pavement crack sealing, ditching and clearing in selected areas as needed. There were several storm responses, and the flooding at the mouth of Sargent Creek Road where it intersects Rezanof Drive occurred twice during the year. The opportunity to purchase Recycled Asphalt Product from the Rezanof Drive resurfacing project by the State of Alaska was approved and we used the RAP to overlay on Bells Flats Road, the road that the loaded trucks use to exit the Flats from the Gravel Pits.

SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2022.

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WOMEN’S BAY ROAD SERVICE DISTRICT (CONT.) FY2022

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Property Taxes $ 210,504 $ 210,609 $ 210,000 $ 213,330 $ 212,000 Penalties & Interest Tax 1 0 - 0 - State Shared Revenue - - - - - Licences & Permits 27,600 27,600 27,600 27,600 27,600 Interest Earnings 7,806 5,549 - 845 - Other Financing Sources - - - - - Operating Transfers In - - - - - Total Revenues $ 245,911 $ 243,758 $ 237,600 $ 241,776 $ 239,600

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ 20 $ 500 $ - $ 850 Fringe Benefits - 12 250 - - Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Service District Maintenance Snow Removal/Sanding 40,938 69,985 65,000 54,998 70,000 Maintenance & Repairs 115,979 139,600 95,000 195,072 100,000 Grading / Ditching 46,345 33,851 45,000 59,639 50,000 Support Goods & Services 595 715 31,850 375 18,750 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers 20,000 - - - - Total Expenditures $ 223,857 $ 244,183 $ 237,600 $ 310,083 $ 239,600

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SERVICE DISTRICT NO. 1 FY2022

PROGRAM DESCRIPTION: Service Area No. 1 provides maintenance to approximately 12 miles of roads within the district. Services provided include snow removal, ice control, culvert and drainage, ditch maintenance and repair, brush clearing of right away, dust control on gravel roads, painting and whiting fog lines and yellow center lines on paved roads, as well as asphalt pavement repair and replacement. The State of Alaska Department of Transportation owns and maintains approximately 6 miles of roads in Service District No. 1. Most of these roads are paved. Property owners with access directly onto these State Roads do not pay the road Service District No. 1 mill rate tax. The approximate replacement value of the asphalt on Service District No. 1 maintained roads is $5,000,000. The board will work on a plan to deal with the replacement of this asphalt.

GOALS AND OBJECTIVES: Provide safe, well drained, and maintained surfaces for the residents in the Service District. • Provide timely removal of snow and sanding with D-1 on gravel roads. • Provide timely removal of snow and sanding with chip and sometimes salt on paved roads. • Provide new D-1 surfacing on gravel roads as needed to improve surface drainage. • Provide calcium chloride on gravel roads for dust control in the summer. • Paint yellow center lines and white fog lines on the side of paved roads for safety. • Continue improving drainage along roads that have no ditches and maintain drainage on roads built to Borough Standards. • Continue brush and tree removal on roads. • Identify and replace deteriorated or failed culverts as needed. • Maintain a project list.

ANALYSIS: In FY2021 the Service Area contracted with the State of Alaska Department of Transportation to chip seal some of their paved roads. This appears to have worked very well. The Service Area established ditches where there were none, cleaned ditches, and removed alder and spruce trees from the right-of-way. They also placed a lot of D-1 for new surfacing on Service Area gravel roads. Service Area No. 1 is proposing the same mill rate of 1.5 mills as in past years to the Assembly for FY2022.

SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2022.

118

SERVICE DISTRICT NO. 1 (CONT.) FY2022

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Property Taxes $ 422,703 $ 428,892 $ 428,500 $ 434,119 $ 433,000 Penalties & Interest Tax 0 0 - 0 - State Shared Revenue - - - 13 - Licences & Permits - - - - - Interest Earnings 39,136 29,778 - 3,664 - Other Financing Sources 400 229 - 20,468 - Operating Transfers In - - - - - Total Revenues $ 462,240 $ 458,900 $ 428,500 $ 458,263 $ 433,000

Expenditures FY2018 FY2019 FY2020 FY2020 FY2021 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 5,702 $ 5,443 $ 8,800 $ 4,998 $ 8,800 Fringe Benefits 1,105 1,676 2,350 760 2,350 Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Service District Maintenance Snow Removal/Sanding 62,090 152,112 200,000 106,454 200,000 Maintenance & Repairs 194,460 277,906 143,750 143,465 148,250 Grading / Ditching 49,282 40,434 60,000 34,594 60,000 Support Goods & Services 11,418 8,980 13,600 3,016 13,600 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - - - - Total Expenditures $ 324,056 $ 486,550 $ 428,500 $ 293,287 $ 433,000

119

SERVICE DISTRICT NO. 2 FY2022

PROGRAM DESCRIPTION: Service Area No. 2 is responsible for water and sewer services in the service area.

GOALS AND OBJECTIVES: None at this time.

ANALYSIS: This service district is currently inactive. The fund balance will be used to defray any administrative costs incurred by this fund.

SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2022.

Special Note: If you are a service area resident and want to participate on this board, please contact the Clerk’s Office for an application.

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Property Taxes $ - $ - $ - $ - $ - Penalties & Interest Tax - - - - - State Shared Revenue - - - - - Licences & Permits - - - - - Interest Earnings 246 176 - 22 - Other - - - - - Operating Transfers In - - - - - Total Revenues $ 246 $ 176 $ - $ 22 $ -

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ - $ - $ - $ - Fringe Benefits - - - - - Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Service District Maintenance Snow Removal/Sanding - - - - - Maintenance & Repairs - - - - - Grading / Ditching - - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - - - - Total Expenditures $ - $ - $ - $ - $ -

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MONASHKA BAY ROAD SERVICE AREA FY2022

PROGRAM DESCRIPTION: Monashka Bay Road Service Area (MBRSA) is responsible for road maintenance and snow removal in the service area; it also has some administrative responsibility for a Greenbelt separating Monashka Bay Road Service Area residents from the adjacent KIB Landfill, and a commercial storage and dump property (Lot 1) zoned "Light Industrial" as of 2016.

GOALS AND OBJECTIVES: Provide well-maintained roads for the safety of the residents. • As practicable and within budget, maintain/repair roads, ditches, culverts, and signs within the service area. • Conduct annual road inspection/walk/tour to identify concerns and create "Priority List." • Improve roads to meet all current Kodiak Island Borough code design requirements.

ANALYSIS: With the past few mild winters, MBRSA snow plowing costs have been much reduced, saving significant amounts of money and restoring a positive “Unreserved Fund Balance”. Supervisors have remained conservative in road maintenance routines, which has saved additional funds. The Monashka Bay Service Area is also safeguarding "Lot 2" of the Greenbelt from further encroachment from the adjacent KIB Landfill.

The service district encourages dialog between KIB Assembly, KIB staff, and all other Service Area Boards to explore cost and timesaving strategies relative to MBRSA responsibilities. The Service District continues to review and revise the current road service contract and return it to the Kodiak Island Borough for bids each year. This ensures the best use of the service area's budget. The Service District will pursue additional funding when necessary to address safety and road-structure concerns that do not meet KIB Code design requirements.

SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2022.

122

MONASHKA BAY ROAD SERVICE AREA (CONT.) FY2022

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Property Taxes $ 51,672 $ 51,388 $ 48,805 $ 52,485 $ 52,116 Penalties & Interest Tax 0 - - - - State Shared Revenue - - - - - Licences & Permits - - - - - Interest Earnings 8,946 6,513 - 862 - Other - - - - - Operating Transfers In - - - - - Total Revenues $ 60,619 $ 57,901 $ 48,805 $ 53,347 $ 52,116

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ - $ 600 $ 49 $ 600 Fringe Benefits - - 205 28 - Professional Services - - - - - Contributions - - - - - Legal Services - - - - - Service District Maintenance Snow Removal/Sanding 4,908 20,540 11,000 6,983 11,000 Maintenance & Repairs 21,893 23921..88 12,500 - 15,916 Grading / Ditching 3,305 1,846 23,000 5,911 23,000 Support Goods & Services 64 122 1,500 118 1,600 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - - - - Total Expenditures $ 30,169 $ 22,507 $ 48,805 $ 13,090 $ 52,116

123

BAY VIEW ROAD SERVICE DISTRICT FY2022 PROGRAM DESCRIPTION: Bay View Road Service Area is responsible for the road maintenance in the service area.

GOALS AND OBJECTIVES: Provide safe and adequate roads for the residents. • Maintain, repair, and provide snow removal for the roads in the Bay View Road Service Area.

ANALYSIS: The Service District is working to build fund balance to finish the cul-de-sac. The ongoing problem is the road was left unfinished over 30 years ago when first created. The road has a nearly twelve-foot drop with no guard rail, this creates a major liability on this short one-mile road. The service area will continue to seek funding in FY2022 on this matter. The Bayview service district is very fortunate to have very supportive residents. During FY2018 windstorms blew down many trees, and residents cut and removed the fallen trees, eliminating the expense of paying an outside company to remove the trees.

SIGNIFICANT BUDGET CHANGES: There are no significant budget changes in FY2022.

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Property Taxes $ 14,738 $ 14,569 $ 13,879 $ 14,975 $ 14,500 Penalties & Interest Tax - - - - - State Shared Revenue - - - - - Licences & Permits - - - - - Interest Earnings 1,704 1,461 100 192 - Other Financing Sources - - - - - Operating Transfers In - - - - - Total Revenues $ 16,442 $ 16,030 $ 13,979 $ 15,168 $ 14,500

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ - $ 500 $ 49 $ 500 Fringe Benefits - - 174 41 175 Professional Services - 550 5,305 - 5,305 Contributions - - - - Legal Services - - - - Service District Maintenance Snow Removal/Sanding 2,343 7,873 5,400 1,697 5,400 Maintenance & Repairs 3,012 - 1,500 6,918 1,900 Grading / Ditching 1,789 142 1,100 4,104 1,100 Support Goods & Services 23 88 - 88 120 Capital Outlay - - - - - Allocated to other funds - - - - - Operating Transfers - - - - - Total Expenditures $ 7,167 $ 8,654 $ 13,979 $ 12,897 $ 14,500

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FIRE PROTECTION AREA NO. 1 (BAYSIDE FIRE DEPARTMENT) FY2022

PROGRAM DESCRIPTION: Bayside Fire Station is responsible for providing fire suppression, fire and injury prevention, and first responder emergency medical services. The Fire Department also offers a car seat installation program, smoke detector supply, instruction, and installation to residents at no cost. Bayside Fire Station is also responsible for providing associated services to the residents and visitors of Fire Protection Area No. 1.

GOALS AND OBJECTIVES:

Goals, Objectives, and Performance Indicators: FY2019 FY2020 FY2021 Goals Department Objectives Indicators Outcome Outcome Outcome FY2022 Goal *uknown at *uknown at *uknown at Respond within 5 minutes or less to an alarm on 90% Reports from Aurora and I Am time of time of time of 95% of all calls Responding programs publication publication publication *uknown at *uknown at *uknown at Successfully respond to emergencies Number of incident reports time of time of time of 170 Minimize the impact on life and publication publication publication property from the effects of fire Maintain a Class 4 or lower to a Class 3 Insurance rating and medical emergencies to the *uknown at *uknown at *uknown at which in return reduces the cost of of fire insurance community. Insurance Services Organization Rating time of time of time of 3/3 Rating and shows the efficiency of the Fire Protection Area publication publication publication No. 1. *uknown at *uknown at *uknown at Recruit new volunteers to increase the number of Number of trained volunteers time of time of time of 40 trained volunteers up to 40 volunteers publication publication publication *uknown at *uknown at *uknown at Provide public education on fire suppression and Number of trainings offered to the time of time of time of 30 medical emergencies. public publication publication publication Provide training and safety to the *uknown at *uknown at *uknown at Continue upgrades and improvements to the fire Upgrades and improvements volunteer responders and time of time of time of 20 training site and campus completed community. publication publication publication Increase personnel's expertise in fire prevention, *uknown at *uknown at *uknown at Number of trainings offered to injury prevention, fire suppression and emergency time of time of time of 75 Drills personnel medical services publication publication publication

ANALYSIS*: *No updated analysis was provided by the service area board for FY2022.

SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2022.

126

FIRE PROTECTION AREA NO. 1 (BAYSIDE FIRE DEPARTMENT, CONT.) FY2022

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Property Taxes $ 630,300 $ 634,882 $ 635,280 $ 641,800 $ 642,147 Penalties & Interest Tax 0 0 - 0 - State Grants 5,063 - - - - Federal Grants 2,231 32,581 50,000 21,964 100,000 State Shared Revenue 6,618 7,943 2,800 6,527 5,000 Licenses & Permits - - - - - Interest Earnings 17,842 14,251 - 1,003 500 Other 11,514 2,117 2,000 4,791 2,000 Use of Fund Balance - - 101,767 - 4,903 Operating Transfers In - - - - - Total Revenues $ 673,569 $ 691,774 $ 791,847 $ 676,086 $ 754,550

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 162,488 $ 157,893 $ 195,533 $ 120,844 $ 178,200 Fringe Benefits 82,532 87,603 98,500 64,473 92,100 Professional Services 9,215 4,720 - 6,537 9,000 Contributions - - - - - Legal Services - - - 1,797 - Service District Maintenance Snow Removal/Sanding - - - - - Maintenance & Repairs - - - - - Grading / Ditching - - - - - Support Goods & Services 245,593 182,659 237,704 129,311 265,250 Capital Outlay 11,941 43,788 210,000 7,780 210,000 Allocated to other funds - - - - - Operating Transfers 125,000 355,000 52,214 52,214 - Total Expenditures $ 636,769 $ 831,664 $ 793,951 $ 382,956 $ 754,550

127

WOMEN’S BAY FIRE DEPARTMENT FY2022

PROGRAM DESCRIPTION: The Women’s Bay Fire Department is responsible for providing fire suppression services to the residents of the Women’s Bay Fire Protection District. The department provides first response to emergency medical service (EMS) calls within the service area. The department also provides structural fire suppression by contract to the Airport Fire Protection Area.

GOALS AND OBJECTIVES: Goals, Objectives, and Performance Indicators: FY2019 FY2020 FY2021 Goals Department Objectives Indicators Outcome Outcome Outcome FY2022 Goal Respond within 10 minutes of an alarm for 90% of all *Unknown at *Unknown at *Unknown at Incident Reports 30 calls calls for assistance within the service area publication publication publication Minimize the impacts on life and *Unknown at *Unknown at *Unknown at Maintain local area mutual aid agreements On File - KIB 3 on File property caused by fire for the publication publication publication residents of Kodiak Maintain AK Division of Forestry Annual Operating *Unknown at *Unknown at *Unknown at On File - KIB In Process Agreement publication publication publication

Continue community outreach to stimulate *Unknown at *Unknown at *Unknown at Personnel Records In Planning Provide First Responder Emergency recruitment publication publication publication Medical Response for the Published Train volunteers in fire suppression and prevention *Unknown at *Unknown at *Unknown at Community Training Records Training methods and techniques. publication publication publication Schedule Train volunteers in EMS to maintain certification and *Unknown at *Unknown at *Unknown at Training Records 5 Personnel Maintain adequate ensure CEU's are available publication publication publication volunteer/responder membership Encourage and increase interagency training *Unknown at *Unknown at *Unknown at Training Records In Progress to adequately responsed in the opportunities publication publication publication case of an emergency *Unknown at *Unknown at *Unknown at Monitor NFPA standards for compliance updates Review Monthly NFPA Publications Yes publication publication publication Procure and maintain compliant *Unknown at *Unknown at *Unknown at Monitor and maintain fire and EMS response vehicles Weekly and monthly check sheets 4 Apparatus fire and EMS equipment for publication publication publication efficient response for the Monitor and maintain fire and EMS equipment and *Unknown at *Unknown at *Unknown at Weekly and monthly check sheets 4 Apparatus community supplies publication publication publication Work with KIB staff to ensure contracts are in place to *Unknown at *Unknown at *Unknown at provide facility maintenance, repairs and utility KIB records and contracts Yes publication publication publication services Maintain physical building and *Unknown at *Unknown at *Unknown at Develop property for safety and efficiency Perform monthly facility inspections Inspection forms publication publication publication Program *Unknown at *Unknown at *Unknown at Develop Ensure periodic and annual maintenance of systems Records on file publication publication publication Program

ANALYSIS: During the current fiscal year the department has focused on returning to hands on basic firefighting skills, engineering training for apparatus operations and skill department. The department continues to encourage residents and to become members and continues to train new volunteers. Due to COVID concerns, the department has altered training and operations to ensure compliance with state and local mandates. This has been done primarily for the health and safety of our members and their families. The department conducted two community events, the Halloween Parade and "Santa Drive Around", in conjunction with the Womens Bay Community Council. The department will continue the development and implementation of an evacuation shelter with the local service area. This will include researching funding opportunities to procure required equipment and supplies to support shelter operations.

SIGNIFICANT BUDGET CHANGES: The department is requesting the transfer of $75,000 of fund balance for the remodel of the apartment and the replacement of the two original facility garage doors as they are no longer supported due to their age. The department has applied for the Volunteer Fire Assistance grant through the Alaska Division of Forestry and has cooperatively applied for the Assistance for Firefighter Grants Federal grant program with Bayside Fire for turnouts and helmets.

128

WOMEN’S BAY FIRE DEPARTMENT (CONT.) FY2022

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Property Taxes $ 109,331 $ 109,376 $ 108,500 $ 110,706 $ 108,500 Penalties & Interest Tax 1 - - 0 - State Shared Revenue - - - - - Federal Grants - 1,399 - 5,567 - Charges for Services 16,701 8,734 16,700 18,657 16,700 Licenses & Permits - - - - - Interest Earnings 26,659 19,812 2,000 2,601 2,000 Other 12,200 14,450 12,000 14,655 12,000 Use of Fund Balance - - 175,000 - 75,000 Operating Transfers In - - - - - Total Revenues $ 164,892 $ 153,771 $ 314,200 $ 152,186 $ 214,200

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 984 $ 514 $ 2,000 $ 789 $ 2,000 Fringe Benefits 547 420 1,025 1,977 875 Professional Services 10,818 761 5,000 5,396 10,000 Contributions - - - - - Legal Services - - 1,000 - 1,000 Support Goods & Services 53,983 73,769 130,175 65,900 125,325 Capital Outlay - 27,854 175,000 - 75,000 Allocated to other funds - - - - Operating Transfers 25,000 - - - Total Expenditures $ 91,333 $ 103,318 $ 314,200 $ 74,062 $ 214,200

129

KIB AIRPORT FIRE DISTRICT FY2022 PROGRAM DESCRIPTION: This program is responsible for providing fire suppression and prevention services to the citizens of the Kodiak Island Borough Airport Fire Protection Area.

GOALS AND OBJECTIVES: Minimize the impact on life and property attributable to fire through the development and implementation of fire prevention and suppression programs. • Continue contracting with Women’s Bay Fire Department to provide fire suppression and prevention service to the district. • Complete installation of new fire hydrant.

ANALYSIS: This service area does not currently have an active board. All services are contracted with the Women’s Bay Fire Department.

SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2022.

Special Note: If you are a service area resident and want to participate on this board, please contact the Clerk’s Office for an application. Revenues FY2019 FY2020 FY2021 FY2022 FY2022 Revenues Actual Actual Budget Estimated Budget Property Tax $ 18,112 $ 18,544 $ 18,429 $ 18,705 $ 18,670 Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - - - - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 1,552 1,349 - 209 280 Miscellaneous - - - - - Other Funding Sources - - - - - Operating Transfers - - - - - Total Revenues $ 19,664 $ 19,893 $ 18,429 $ 18,914 $ 18,950

Expenditures FY2019 FY2020 FY2021 FY2022 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ - $ - $ - $ - Employee Benefits - - - - - Professional Services 16,701 8,734 14,200 18,657 18,700 Legal Services - - - - - Contributions - - - - - Service District Maint. - - - - - Support Goods & Services 20 91 4,229 97 250 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures $ 16,720 $ 8,825 $ 18,429 $ 18,754 $ 18,950

130

WOODLAND ACRES STREET LIGHT SERVICE AREA FY2022

PROGRAM DESCRIPTION: The Woodland Acres Street Light Service Area provides construction, operation, and maintenance of street lights on public streets within its boundaries.

GOALS AND OBJECTIVES: Provide street lighting to ensure a safer environment for all residents and visitors of Woodland Acres. • Maintain and adequately fund the current streetlights.

ANALYSIS: This service area is currently inactive. The mill rate and fund balance will be used to defray any administrative costs incurred by this fund.

SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2022.

Special Note: If you are a service area resident and want to participate on this board, please contact the Clerk’s Office for an application.

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Property Tax $ 5,576 $ 5,579 $ 5,540 $ 5,629 $ 5,540 Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - - - - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 1,406 724 - 80 - Miscellaneous - - - - - Other Funding Sources - - - - - Operating Transfers - - - - - Total Revenues $ 6,982 $ 6,303 $ 5,540 $ 5,709 $ 5,540

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ - $ - $ - $ - Employee Benefits - - - - - Professional Services - - - - - Legal Services - - - - - Contributions - - - - - Service District Maint. - - - - - Support Goods & Services 4,544 4,871 5,540 5,578 5,540 Capital Outlay - 14,629 - - - Operating Transfers - - - - - Total Expenditures $ 4,544 $ 19,501 $ 5,540 $ 5,578 $ 5,540

131

TRINITY ISLANDS STREET LIGHT SERVICE AREA FY2022

PROGRAM DESCRIPTION: The Trinity Islands Street Light Service Area provides construction, operation, and maintenance of streetlights on public streets within its boundaries.

GOALS AND OBJECTIVES: Provide street lighting to ensure a safer environment for all residents and visitors of Trinity Islands. • Maintain and adequately fund the current streetlights.

ANALYSIS: This service area is currently inactive. The mill rate and fund balance will be used to defray any administrative costs incurred by this fund.

SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2022.

Special Note: If you are a service area resident and want to participate on this board, please contact the Clerk’s Office for an application. Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Property Tax $ 1,942 $ 1,873 $ 1,897 $ 1,876 $ 1,875 Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - - - - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 1,224 879 - 113 - Miscellaneous - - - - - Other Funding Sources - - - - - Operating Transfers - - - - - Total Revenues $ 3,166 $ 2,752 $ 1,897 $ 1,989 $ 1,875

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ - $ - $ - $ - Employee Benefits - - - - - Professional Services - - - - - Legal Services - - - - - Contributions - - - - - Service District Maint. - - - - - Support Goods & Services 1,730 1,744 1,897 1,582 1,875 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures $ 1,730 $ 1,744 $ 1,897 $ 1,582 $ 1,875

132

MISSION LAKE TIDE GATE FY2022

PROGRAM DESCRIPTION: This service area provides tide-gate maintenance to benefit the area residents as well as the surrounding community. The original tide-gate was established after the 1964 tsunami and remains in place with outfall onto Mission Beach

GOALS AND OBJECTIVES: Provide maintenance of the tide gate for the safety of the residents of Mission Lake and adjacent Mission Beach. • Remove debris and maintain the tide gate.

ANALYSIS: Without a tide-gate and without proper maintenance and oversight Mission Lake water level could rise and adversely affect lakefront properties. The original tide-gate was established after the 1964 tsunami and remains in place with outfall onto Mission Beach. This location was vulnerable to filling with sand, ie. plugging up, due to exposure to more severe surf conditions. The new tide-gate is more protected and less likely to back up due to kelp or sand blocking the outlet. Bob Tucker's over 10 year experience has seen only one severe blockage that required heavy equipment to alleviate. The fund balance has risen to over $60,000. A lower assessment of .25 mils was implemented in FY2019.

SIGNIFICANT BUDGET CHANGES: No significant budget changes for FY2022.

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Property Tax $ 1,571 $ 1,571 $ 1,572 $ 1,496 $ 1,572 Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - - - - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 2,468 1,732 557 224 557 Miscellaneous - - - - - Other Funding Sources - - - - - Operating Transfers - - - - - Total Revenues $ 4,040 $ 3,303 $ 2,129 $ 1,720 $ 2,129

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 198 $ 276 $ 200 $ 358 $ 200 Employee Benefits 146 198 145 241 145 Professional Services 1,480 - - - - Legal Services 2,535 - - - - Contributions - - - - - Service District Maint. - - - - - Support Goods & Services 3 76 1,784 78 1,784 Capital Outlay - - - - - Operating Transfers - - - - - Total Expenditures $ 4,362 $ 550 $ 2,129 $ 677 $ 2,129

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FACILITIES FUND FY2022

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 its rights on Shuyak Island for $42 million to the State of Alaska. The Borough received $8 million in FY1996, $2,194,266 in FY1997, $4,000,000 in FY1998 through FY2002, and the balance of $11,805,734 in FY2003. $6 million was utilized in construction of the Kodiak Fisheries Research Center, and the remaining $36 million established the Facilities Fund.

The purpose of this fund is to maintain the proceeds of the sale and use excess earnings to help support Borough operations. Ordinance No. FY1996-13 states the conditions under which the Borough can use these funds and that excess income of the fund is defined as 85% of the annual investment income of the fund. The excess income of the fund may be appropriated only for the following purposes: for maintenance and repair of Borough buildings, insurance on Borough buildings, and upgrade and reconstruction of existing buildings. Additionally, up to 50% of the excess may be used for debt service on general obligation bonds issued for facilities construction. This was changed in FY2021 to be up to 100% of the 85% of the annual investment income of the fund for debt service.

Since inception, the Facilities fund has earned $23,107,788 in net investment income and has transferred $17,669,334 to capital projects, debt service, and building and grounds (for property insurance).

GOALS AND OBJECTIVES: 1. Preserve the principal of the fund. 2. Uphold the restrictions established by the fund and Ordinance No. FY1996-13 & FY2020-13. 3. Achieve a fair rate of return on allowable investments.

ANALYSIS: Current investment policies mandate following GFOA’s investment recommendations which focus on the preservation of principal and the use of risk adverse investments. This short-term investment strategy is used in order to promote quick access to liquid assets which may be needed for day-to-day operational use. This policy may not be appropriate for the long-term nature of these funds.

SIGNIFICANT BUDGET CHANGES: There are no significant budget changes for FY2022.

134

FACILITIES FUND (CONT.) FY2022

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Property Tax $ - $ - $ - $ - $ - Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Sales Tax - - - - - Licenses & Permits - - - - - State Shared Revenue - - - - - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 1,625,078 1,130,902 750,000 143,573 340,000 Miscellaneous - - - - - Other Funding Sources - - 82,316 - 204,389 Operating Transfers 110,017 - - - - Total Revenues $ 1,735,095 $ 1,130,902 $ 832,316 $ 143,573 $ 544,389

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ - $ - $ - $ - Employee Benefits - - - - - Professional Services - - - - - Legal Services - - - - - Contributions - - - - - Service District Maint. - - - - - Support Goods & Services - - - - - Capital Outlay - - - - - Operating Transfers - - - - - Education Support Fund - - - - - Buildings & Grounds 5,000 5,000 5,000 5,000 5,000 Debt Service 338,982 830,105 827,316 827,316 - Renewal & Replacement 444,000 86 - - 539,389 Total Expenditures $ 787,982 $ 835,191 $ 832,316 $ 832,316 $ 544,389

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TOURISM DEVELOPMENT FY2022

PROGRAM DESCRIPTION: The fund collects the transient accommodations (bed) tax revenue and cruise ship revenue sharing to promote increased development of the tourism industry and various tourism related programs within the Kodiak Island Borough.

GOALS AND OBJECTIVES: Recognize tourism as a diversification of the island’s economy and promote its growth. • Promote and fund tourism development activities including but not limited to museums, fishing, bear viewing, hiking, and lodging.

ANALYSIS: The current tax rate for the transient accommodation tax is 5% with a 2% administrative discount if the quarterly returns is filed timely. There are no current plans to change this rate.

SIGNIFICANT BUDGET CHANGES: FY2022 revenue expectations are low due to the ongoing impact of COVID-19 concerns in the tourism industry as a whole.

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TOURISM DEVELOPMENT (CONT.) FY2022

Revenues FY2018 FY2019 FY2020 FY2020 FY2021 Revenues Actual Actual Budget Estimated Budget Property Tax $ - $ - $ - $ - $ - Penalties/Interest on Tax - 400 - - - Non Ad Valorem Tax - - - - - Transient Accomodations Tax 113,485 78,571 105,000 62,829 20,000 Licenses & Permits - - - - - State Shared Revenue 37,625 - - - - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 976 6,583 600 3,019 - Miscellaneous - - - - - Other Funding Sources - - 26,400 - 55,000 Operating Transfers - - - - - Total Revenues $ 152,086 $ 85,553 $ 132,000 $ 65,847 $ 75,000

Expenditures FY2018 FY2019 FY2020 FY2020 FY2021 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ - $ - $ - $ - $ - Employee Benefits - - - - - Professional Services - - - - Legal Services - - - - - Contributions 96,501 88,890 87,000 87,000 75,000 Service District Maint. - - - - - Support Goods & Services 69 239 - 220 - Capital Outlay - - - - - Operating Transfers 45,000 45,000 45,000 45,000 - Total Expenditures $ 141,569 $ 134,129 $ 132,000 $ 132,220 $ 75,000

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COMMERCIAL PASSENGER VESSEL FY2022

PROGRAM DESCRIPTION: Effective in 2006, a tax was imposed on passengers traveling on commercial passenger vessels providing overnight accommodations that anchor or moor on the state’s marine waters with the intent to allow passengers to embark or disembark.

GOALS AND OBJECTIVES: • Recognize tourism as a diversification of the island’s economy and support the influx of commercial passenger vessels.

ANALYSIS: This fund was established in FY2019 to improve transparency and clarity of usage of these monies. Previously, these revenues were collected in the Tourism and Development fund.

SIGNIFICANT BUDGET CHANGES: Due to the COVID-19 pandemic causing the disruption in cruise ships and other tourism related travel, no revenue is expected from the State in FY2022.

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Property Tax $ - $ - $ - $ - $ - Penalties/Interest on Tax - - - - - Non Ad Valorem Tax - - - - - Transient Accomodations Tax - - - - - Licenses & Permits - - - - - State Shared Revenue 42,753 54,220 - 54,220 - State Grants - - - - - Rents & Royalties - - - - - Charges for Services - - - - - Land Sale Activity - - - - - Interest Earnings 535 1,643 - 351 - Miscellaneous - - - - - Other Funding Sources - - - - - Operating Transfers - - - - - Total Revenues $ 43,287 $ 55,863 $ - $ 54,571 $ -

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DEBT SERVICE FUND

The Debt Service Fund accounts for the payment of interest and principal on long-term debt resulting from the sale of general obligation bonds. This fund does not include the accounting for special assessments and service debts of governmental enterprises.

Debt Policies

The Kodiak Island Borough has a written debt policy in the Kodiak Island Borough Code, Title 3 – Revenue and Finance, Chapter 3.05.030. 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 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 There is no limitation on the amount of taxes the Borough can levy to pay for bonds. State Code reads:

“Sec. 29.45.100. No limitations on taxes to pay bonds. The limitations provided for in AS29.45.080 - 29.45.090 do not apply to taxes levied or pledged to pay or secure the payment of the principal and interest on bonds. Taxes to pay or secure the payment of principal and interest on bonds may be levied without limitation as to rate or amount, regardless of whether the bonds are in default or in danger of default.”

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.

Reserve Policy The Borough updated its reserve policies in FY2020, adding new provisions for fund balance in the debt service fund.

“Debt Service Fund. The borough will maintain a cash flow reserve to provide for unexpected revenue shortfalls. The cash flow reserve within the debt service fund is equal to $275,000.”

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DEBT SERVICE FY2022

PROGRAM DESCRIPTION: This fund was established to finance and account for the payment of interest and principal on general obligation debts. This fund does not include enterprise fund revenue bonds which are reported in their respected fund.

GOALS AND OBJECTIVES: Promote fiscal policies that ensure stability, growth, and responsible government. • Meet all debt requirements when due, thus avoiding any payments for penalties of interest • Remain in compliance for all debt covenant requirements

ANALYSIS: Due to the State of Alaska’s reduction to debt reimbursement since FY2017, transfers were made from the General and Facilities Funds to cover the shortfall. This trend is expected to continue. The motor vehicle registration tax (MVRT) revenues will continue to be collected in this fund rather than in the Education Support Fund as was done in prior years.

SIGNIFICANT BUDGET CHANGES: The FY2022 State of Alaska budget only partially funded the School Construction Debt program.

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DEBT SERVICE (CONT.) FY2022

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Real Property Tax $ 2,339,243 $ 2,262,212 $ 2,201,212 $ 2,007,277 $ 2,213,632 Personal Property Tax 259,077 277,303 244,579 243,996 252,701 Penalties & Interest - - - - - Non-Ad Valorem Taxes - 215,538 210,000 192,240 200,000 State Debt Reimbursement 5,226,069 2,552,052 - - 2,573,113 Interest Earnings 1,213 - - - Proceeds from Bond Issues - - - - Use of Fund Balance - - - 28,984 Transfers In 338,982 2,462,920 5,417,879 5,417,879 2,303,196 Total Revenues $ 8,164,583 $ 7,770,025 $ 8,073,670 $ 7,861,393 $ 7,571,626

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Consultants $ 3,150 $ - $ 6,301 $ 9,450 $ 12,600 Support Goods & Services 4,577 4,184 - 765 - Principal 4,425,000 4,655,000 4,850,000 4,850,000 4,853,180 Interest 3,253,413 3,078,393 2,887,369 2,986,370 2,317,356 Refunded Bond Costs 10,000 - 330,000 87,603 30,000 Transfers Out 142,177 - - - Total Expenditures $ 7,838,317 $ 7,737,577 $ 8,073,670 $ 7,934,189 $ 7,213,136

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Below is a summary of all the Borough’s bonded debt obligations, the annual year expenditure totals and what these bonds were issued for. Detailed debt service schedules for each bond issue can be found in the Comprehensive Annual Financial Report.

Kodiak Island Borough Summary of Annual Bonded Debt Service Requirements * FY2021-2036 Amount Eligible Net Bond Payment Total Bond For State Due After Estimated Fiscal Year Principal Interest Payments Due Reimbursement Reimbursement 2021 $ 4,850,000 2,887,372 $ 7,737,372 $ 5,287,338 $ 2,450,034 2022 $ 5,240,000 2,772,207 $ 8,012,207 $ 5,473,421 $ 2,538,786 2023 $ 5,490,000 2,526,673 $ 8,016,673 $ 5,469,254 $ 2,547,419 2024 $ 5,750,000 2,260,707 $ 8,010,707 $ 5,471,782 $ 2,538,925 2025 $ 6,035,000 1,971,297 $ 8,006,297 $ 5,467,966 $ 2,538,331 2026 $ 4,855,000 1,724,971 $ 6,579,971 $ 4,548,841 $ 2,031,130 2027 $ 4,170,000 1,506,536 $ 5,676,536 $ 3,922,899 $ 1,753,637 2028 $ 4,370,000 1,299,242 $ 5,669,242 $ 3,917,219 $ 1,752,023 2029 $ 3,950,000 1,096,681 $ 5,046,681 $ 3,546,414 $ 1,500,267 2030 $ 4,090,000 901,428 $ 4,991,428 $ 3,503,625 $ 1,487,803 2031 $ 4,290,000 699,728 $ 4,989,728 $ 3,295,497 $ 1,694,231 2032 $ 3,590,000 501,671 $ 4,091,671 $ 2,864,170 $ 1,227,501 2033 $ 3,770,000 322,896 $ 4,092,896 $ 2,865,028 $ 1,227,868 2034 $ 2,240,000 154,806 $ 2,394,806 $ 1,676,365 $ 718,441 2035 $ 580,000 43,322 $ 623,322 $ 436,326 $ 186,996 2036 $ 610,000 14,713 $ 624,713 $ 437,299 $ 187,414 $ 63,880,000 $ 20,684,250 $ 84,564,250 $ 58,183,444 $ 26,380,806

* This schedule only shows debt service payments and amounts eligible for reimbursement by the State of Alaska

Fiscal Year Total Remaining Payments Bond Payoff Date Principal Interest Project Description 2011 2031 $ 5,185,000 $ 1,682,908 High school renovation and renewal project. 2012A 2025 $ 2,870,000 $ 363,825 Planning, design and construction for the Larsen Bay, Kodiak Middle and Kodiak High schools. 2012B 2025 $ 3,500,000 $ 443,775 Planning, design and construction for the new school pool and Kodiak High School Voc/Ed classroom. 2013 2033 $ 16,110,000 $ 5,854,920 High school renovation and renewal project. 2014 2034 $ 17,705,000 $ 7,123,615 High school renovation and renewal project. 2015A 2036 $ 5,395,000 $ 2,474,662 High school renovation and renewal project. 2015B 2026 $ 1,170,000 $ 184,250 Renewal and replacement for various school buildings. 2016A 2036 $ 1,640,000 $ 475,311 High school renovation and renewal project. 2016B 2026 $ 3,510,000 $ 552,000 Renewal and replacement for various school buildings. 2016C 2028 $ 4,095,000 $ 862,975 Acquisition and construction of school improvements including a new school pool. (refunded 2008A) AMBBA 2018 2029 $ 500,000 $ 69,509 High school renovation and renewal project. 2020A 3031 $ 345,000 $ 94,125 High school renovation and renewal project. 2020B 3031 $ 1,855,000 $ 502,375 Renewal and replacement for various school buildings. $ 63,880,000 $ 20,684,250

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Per Capita Bonded Debt has ranged from a low of $2,483 in 2012 to a high of $7,475 in 2018 during the last ten years. Most of this increase is from the sale of bonds to finance the construction of a new swimming pool, and the renovation and construction on the high school. It should be noted, however, that per capita bonded debt has decreased in the last two fiscal years and is project to keep declining as bonds are paid off.

As the Borough pays off bonded debt and does not issue new bonds, combined with increasing assessed values, produces the downward trend of net bonded debt per assessed value. This indicator has gone from a high of 8.10% in FY2016 to 5.81% in FY2021.

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Debt service expenditures increased in FY2017 due to the refinancing of the 2008A bond.

Debt service expenditures per capita also increased in FY2017 due to the refinancing of the 2008A bond.

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CAPITAL PROJECTS FUND

Capital Projects Fund Description A capital project is defined as a project that is not permanently ongoing in nature and is either to construct new facilities or significant, long-term renovations to existing facilities. Capital Projects Funds have been set up to account these projects, are budgeted for total cost of the project instead of annual expenditures or expenses and are related to one specific activity. If the specific activity is the building or renovation of an asset, it is moved from a project to an asset classification when complete.

Capital projects funds do not include special revenue, debt service or enterprise funds.

Altogether, the Borough has $54,060,567 in ongoing capital projects. This represents $4,118 in ongoing capital projects for every man, woman and child in the Borough. These projects are within eleven (13) different capital project funds. They are:

• Fund 415 – Miscellaneous Borough Projects • Fund 426/428 – Borough Capital Projects - KFRC • Fund 430/432 – State Funded Capital Projects • Fund 445 – Borough Capital Projects – Long Term Care Center • Fund 450/455 – Borough Capital Projects • Fund 469 – Renewal and Replacement Capital Projects • Fund 470 – Bonded Renewal and Replacement Capital Projects • Fund 490 – Solid Waste Capital Projects • Fund 495/497 – Hospital Capital Projects

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Borough Capital Project – Fund 415 This fund contains several miscellaneous projects that benefit the Borough as a whole and may not necessarily create a capital asset. Projects in this fund include an upgrade the tax collection and assessment program, removal of junk vehicles, and acquiring aerial imagery of the Borough. The total budget for this fund is $954,239 and the largest project is Project #20008 KIBSD North Star Siding Replacement.

Borough Capital Project – Fund 426/428 These funds contains projects relating to the Kodiak Fisheries Research Center. The last completed project was upgrades the direct digital controls (DDC) of the building. Other planned projects include repairing the seawater storage tank and filter, replacing the fume hoods, and upgrading and replacing the fire alarm system. The total amount of projects in these funds are $1,152,787.

State Capital Grants – Fund 430/432 The State of Alaska and the Federal Government has awarded the Kodiak Island Borough with an impressive array of grants. At this time the Borough has $2,000,000 in State Capital Grants, as well as $420,565 from the U.S. Fish and Wildlife Service. The projects in these funds include a new dock for Anton Larsen Bay, as well as improvements to the Saltery Cove Trail System.

Borough Capital Projects – Fund 445 This fund was created for projects related to the Borough-owned Long Term Care Facility. Currently, there is one project in there, which will see the replacement of the fuel line from the tank to the facility with a total budget of $85,000. Funding from this is through the enterprise fund associated with the Long Term Care Center and projects are identified, prioritized, and agreed upon by both Borough and Providence staff.

Borough Capital Projects – Fund 450/455 These funds contains $2,988,144 of miscellaneous projects within the Borough that are funded by outside entities or service areas. One is a $118,166 grant from the U.S. Fish and Wildlife Service for a culvert replacement at Lake Orbin. Another grant is from the US Department of Commerce as part of the NOAA Tsunami Hazard Mitigation Program in the amount of $91,785, used for the project to upgrade the tsunami sirens. The largest project in this fund is number 16003, to rebuild the Chiniak emergency shelter is currently budgeted at $670,958. There are also several projects to improve the Bayside Fire Station for Fire Protection Area # 1, totaling $560,000.

Renewal and Replacement Capital Projects – Fund 469 This fund is for the renewal and replacement of worn out and obsolete capital assets, often funded by property taxes. Currently there are $3,681,142 in capital projects in this fund; the largest of these projects is the Borough Building rehabilitation which is budgeted at $1,931,702. There are also transfers out of this fund budgeted for a total of $2,116,996.

Bonded Renewal and Replacement Capital Projects – Fund 470 On October 7, 2014, the voters approved a $10,230,000 bond issue to fund replacement and renewal of worn and obsolete school capital assets. Projects in this fund are currently budgeted fully at the not-to-exceed amount of $10,230,000. The largest of these projects was the underground storage tank replacement at Kodiak Middle School and paving replacement at Peterson Elementary. There was also a large transfer of funds totaling $867,467 from completed projects to project number #20008, North Star Elementary Siding; this project is split between funds 415 and 470.

Solid Waste Capital Projects – Fund 490 The Borough has $33,278,000 in capital projects relating to the landfill and leachate treatment plant. The funding for these projects comes from the sale of bonds, grants, and loans from the Alaska Clean Water Fund. Current projects that are either under way or planned are replacing the siding, roof, septic tank, and removal and replacement of the underground storage tank at the landfill. There is also a project to provide aeration to leachate before it enters the leachate treatment plant. The majority of the fund is made up of the Lateral Expansion project, which is budgeted at 32,000,000.

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Hospital Capital Projects – Fund 495/497 The Borough has $3,991,000 in capital projects relating to the hospital facility between the two funds. The funding from these projects comes from the hospital enterprise fund. The largest of these projects is the project to reinforce the retaining wall beside the hospital at a total budget of $2,835,000. Projects are identified, prioritized and agreed upon by both Borough staff and Providence staff.

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Borough Capital Projects: CURRENT FUND ACTIVITY

Budget Project Budget as Life-to-Date FY 2021 Remaining as of

07/01/2020 as of 06/30/21 Completed Amendments 06/30/2021 Revenues: Fund 415 - Miscellaneous Borough Projects $ 954,239 $ 443,613 $ 25,000 $ 535,626 Fund 426 - KFRC Capital Projects 485,000 1,032,787 503,086 (35,000) Fund 428 - KFRC Capital Projects - 120,000 120,000 - Fund 430 - State Grant Projects 2,100,000 1,878,320 - 221,680 Fund 432 - State Grant Projects 541,205 - - 541,205 Fund 445 - Long Term Care Center Capital Projects - 85,000 85,000 - Fund 450 - Borough Capital Projects 2,019,200 2,183,503 39,253 (125,050) Fund 455 - Borough Capital Projects 630,742 804,641 437,144 269,704 Fund 469 - Borough Renewal and Replacement Projects 3,163,633 3,141,516 (4,000) 18,117 Fund 470 - Bonded Renewal and Replacement Projects 10,280,000 10,280,000 - - Fund 490 - Solid Waste Capital Projects 32,845,548 29,708,902 115,749 3,252,395 Fund 495 - Hospital Capital Projects 315,000 3,085,000 2,940,000 170,000 Fund 497 - Hospital Capital Projects 726,000 726,000 - -

Total Revenues $ 54,060,567 $ 53,489,281 $ 4,261,232 $ 4,848,677

Projects: Fund 415 - Miscellaneous Borough Projects $ 1,821,706 $ 467,735 $ 25,000 $ 1,378,971 Fund 426 - KFRC Capital Projects 485,000 587,329 Y 224,000 121,671 Fund 428 - KFRC Capital Projects - 15,406 120,000 104,594 Fund 430 - State Grant Projects 2,100,000 1,848,574 - 251,426 Fund 432 - State Grant Projects 541,205 25,540 - 515,665 Fund 445 - Long Term Care Center Capital Projects - 41,394 85,000 43,606 Fund 450 - Borough Capital Projects 1,669,200 2,156,393 Y 389,256 (97,937) Fund 455 - Borough Capital Projects 91,785 578,831 705,742 489,055 Fund 469 - Borough Renewal and Replacement Projects 3,681,142 3,292,581 1,595,487 1,984,048 Fund 470 - Bonded Renewal and Replacement Projects 2,236,404 3,103,871 867,467 - Fund 490 - Solid Waste Capital Projects 33,278,000 29,670,302 115,749 3,723,447 Fund 495 - Hospital Capital Projects 325,000 1,141,135 2,940,000 2,123,865 Fund 497 - Hospital Capital Projects 726,000 33,518 - 692,482

Total Expenditures $ 46,955,442 $ 42,962,608 $ 7,067,701 $ 11,330,894

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ESTIMATED FUTURE FUND ACTIVITY

FY2022 FY2023 FY2024 FY2025 FY2026

$ 535,626 $ - $ - $ - $ ------221,680 - - - - 270,603 270,603 ------12,961 - - - - 134,852 134,852 ------3,356,155 - - - - 170,000 ------

$ 4,701,877 $ 405,455 $ - $ - $ -

$ 1,107,254 $ 150,000 $ 150,000 $ - $ - 113,716 - - - - 104,594 - - - - 251,426 - - - - 257,833 257,833 - - - 43,606 - - - - 25,000 - - - - 324,371 164,685 - - - 57,749 - - 1,908,182 ------3,680,362 - - - - 2,153,152 - - - - 692,482 - - - -

$ 8,811,545 $ 572,518 $ 150,000 $ 1,908,182 $ -

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Fund 415 - Miscellaneous Borough Projects: CURRENT FUND ACTIVITY

Budget Project Budget as Life-to-Date FY 2021 Remaining as of

07/01/2020 as of 06/30/21 Completed Amendments 06/30/2021 Revenues:

Transfer in from General Fund $ 365,200 $ 265,200 $ - $ 100,000 Transfer in from KIBSD 589,039 153,413 - 435,626 Transfer In from Buildings & Grounds - 25,000 25,000 -

Total Revenues $ 954,239 $ 443,613 $ 25,000 $ 535,626

Expenditures: Project #19008 CAMA/Collection Software Upgrade $ 300,000 $ - $ - $ 300,000 Project #19013 Junk Car Removal 25,200 19,913 - 5,287 Project #19015 Aerial Imagery 40,000 - - 40,000 Project #20007 KIBSD Auxiliary Gym Design 60,000 61,128 - (1,128) Project #20008 KIBSD North Star Siding Replacement 1,369,506 342,144 - 1,027,362 Project #20020 KIBSD Auditorium Upgrades 27,000 1,004 - 25,996 Project #21005 Emergency Borough Building Boiler Replacement - 27,156 - (27,156) Project #21008 Peterson Elementary Roof Replacement - 16,391 25,000 8,609

Total Expenditures $ 1,821,706 $ 467,735 $ 25,000 $ 1,378,971

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ESTIMATED FUTURE FUND ACTIVITY

FY2022 FY2023 FY2024 FY2025 FY2026

$ 100,000 $ - $ - $ - $ - 435,626 ------

$ 535,626 $ - $ - $ - $ -

$ - $ 150,000 $ 150,000 $ - $ - 5,287 - - - - 40,000 ------1,027,362 - - - - 25,996 ------8,609 - - - -

$ 1,107,254 $ 150,000 $ 150,000 $ - $ -

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Project #19008 CAMA/Collection Software Upgrade Fiscal Year Project Began: Project has not begun yet. Project Description: This scope of this project is upgrade the current version of software to a version that better suits the Borough's needs.

CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Category 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services ------Construction ------Equipment 300,000 - - 300,000 - 150,000 150,000 - - Other Services ------Contingency ------Overhead ------Totals $ 300,000 $ - $ - $ 300,000 $ - $ 150,000 $ 150,000 $ - $ -

Project #19013 Junk Car Removal Fiscal Year Project Began: 2019 Project Description: The scope of this project is to remove junk and abandoned cars. A lottery is held annually for owners with clear titles and abandoned vehicle removals are made from borough and state properties.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services ------Construction ------Equipment ------Other Services 25,200 19,913 - 5,287 5,287 - - - - Contingency ------Overhead ------Totals $ 25,200 $ 19,913 $ - $ 5,287 $ 5,287 $ - $ - $ - $ -

Project #19015 Aerial Imagery Fiscal Year Project Began: 2019 Project Description: The scope of this project is collect updated aerial imagery of the Kodiak Island Borough.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services ------Construction ------Equipment ------Other Services 40,000 - - 40,000 40,000 - - - - Contingency ------Overhead ------Totals $ 40,000 $ - $ - $ 40,000 $ 40,000 $ - $ - $ - $ -

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Project #20007 KIBSD Auxiliary Gym Design Fiscal Year Project Began: 2020 Project Description: This scope of this project is to assist KIBSD in re-purposing the old Swimming Pool area into an auxilliary gym facility.

CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Category 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 51,000 55,734 - (4,734) - - - - - Construction ------Equipment ------Other Services ------Contingency ------Overhead 9,000 5,394 - 3,606 - - - - - Totals $ 60,000 $ 61,128 $ - $ (1,128) $ - $ - $ - $ - $ -

Project #20008 KIBSD North Star Siding Replacement Fiscal Year Project Began: 2020 Project Description: This scope of this project is to remove and replace the siding of North Star Elementary.

CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Category 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 96,193 55,572 - 40,621 40,621 - - - - Construction 1,154,023 244,979 - 909,044 909,044 - - - - Equipment ------Other Services ------Contingency 61,828 - - 61,828 61,828 - - - - Overhead 57,462 41,593 - 15,869 15,869 - - - - Totals $ 1,369,506 $ 342,144 $ - $ 1,027,362 $ 1,027,362 $ - $ - $ - $ -

Project #20020 Auditorium Upgrades Fiscal Year Project Began: 2020 Project Description: This scope of this project is to make improvements to the Gerald C. Wilson Auditorium.

CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Category 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 24,500 857 - 23,644 23,644 - - - - Construction ------Equipment ------Other Services ------Contingency ------Overhead 2,500 147 - 2,353 2,352 - - - - Totals $ 27,000 $ 1,004 $ - $ 25,996 $ 25,996 $ - $ - $ - $ -

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Project #21005 Emergency Borough Building Boiler Replacement Fiscal Year Project Began: 2021 Project Description: This scope of this project is remove the failing boiler and replace it with a new functional one in the Borough Building.

CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Category 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services ------Construction - 24,865 - (24,865) - - - - - Equipment ------Other Services ------Contingency ------Overhead - 2,291 - (2,291) - - - - - Totals $ - $ 27,156 $ - $ (27,156) $ - $ - $ - $ - $ -

Project #20020 Peterson Elementary Roof Replacement Fiscal Year Project Began: 2021 Project Description: This scope of this project is remove the old roof of the Peterson Elementary School Building and replace it with a new one.

CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Category 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services - 16,173 20,000 3,828 3,828 - - - - Construction ------Equipment ------Other Services ------Contingency ------Overhead - 218 5,000 4,782 4,781 - - - - Totals $ - $ 16,391 $ 25,000 $ 8,609 $ 8,609 $ - $ - $ - $ -

154

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155

Fund 426-KFRC Capital Projects: CURRENT FUND ACTIVITY

Budget Project Budget as Life-to-Date FY 2021 Remaining as of

07/01/2020 as of 06/30/21 Completed Amendments 06/30/2021 Revenues:

Transfer in from Fund 555 - KFRC $ 195,000 $ 754,086 $ 524,086 $ (35,000) Reimbursements from Kodiak Electric Association (KEA) 290,000 278,701 (21,000) -

Total Revenues $ 485,000 $ 1,032,787 $ 503,086 $ (35,000)

Expenditures: Project #17009 KFRC Digital Data Controls Upgrade $ 327,993 $ 314,086 (13,907) $ (0) Project #19002 KFRC Electric Boiler Controls Upgrade 290,000 278,701 (21,000) (9,701) Project #19003 KFRC Seawater Storage and Filter Vessel 30,000 - - 30,000 Project #19004 KFRC Fire Alarm Replacement & Upgrade 110,000 242,344 Y 150,000 17,656 Project #20004 KFRC Exterior 55,000 66,284 95,000 83,716

Total Expenditures $ 485,000 $ 587,329 $ 224,000 $ 121,671

156

ESTIMATED FUTURE FUND ACTIVITY

FY2022 FY2023 FY2024 FY2025 FY2026

$ - $ - $ - $ - $ ------

$ - $ - $ - $ - $ -

$ - $ - $ - $ - $ ------30,000 ------83,716 - - - -

$ 113,716 $ - $ - $ - $ -

157

Project #17009 KFRC Direct Digital Controls (DDC) Upgrade Fiscal Year Project Began: 2018 Project Description: The scope of this project is for the upgrade of the ventilation controls including controller, programming of logic software and associated field devices.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ 32,799 $ 3,769 $ (29,030) $ (0) $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services ------Construction 245,995 306,095 60,100 0 - - - - - Equipment 2,459 4,222 1,763 (0) - - - - - Other Services ------Contingency 46,740 - (46,740) ------Overhead ------Totals $ 327,993 $ 314,086 $ (13,907) $ (0) $ - $ - $ - $ - $ -

Project #19002 KFRC Electric Boiler Controls Upgrade Fiscal Year Project Began: 2019

Project Description: The scope of this project is to install a backup electric boiler. The cost of replacing the boiler is being reimbursed by the Kodiak Electric Association (KEA). During times when the electric company produces more electricity than it has demand for, the electric company has the ability to interrupt the diesel powered boiler and use the electric powered boiler. The borough has entered into an agreement with KEA for a reduced rate for the excess generated electricity.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 24,500 13,306 (1,000) 10,194 - - - - - Construction 250,000 244,890 - 5,110 - - - - - Equipment ------Other Services ------Contingency - - (20,000) (20,000) - - - - - Overhead 15,500 20,505 (5,005) - - - - - Totals $ 290,000 $ 278,701 $ (21,000) $ (9,701) $ - $ - $ - $ - $ -

158

Project #19003 KFRC Seawater Storage and Filter Vessel Fiscal Year Project Began: Project has yet to begin. Project Description: The scope of this project is to rebuild the seawater filter membrane, cleaning out the marine life inside the storage tank and to make repairs to the exterior structure of the storage tank.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 25,000 - - 25,000 30,000 - - - - Construction ------Equipment ------Other Services ------Contingency ------Overhead 5,000 - - 5,000 - - - - - Totals $ 30,000 $ - $ - $ 30,000 $ 30,000 $ - $ - $ - $ -

Project #19004 KFRC Fire Alarm Replacement & Upgrade Fiscal Year Project Began: TBD

Project Description: The scope of this project is to upgrade and replace the fire alarm system at KFRC.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services - 16,718 25,000 8,282 - - - - - Construction 110,000 207,000 100,000 3,000 - - - - - Equipment ------Other Services ------Contingency - - 15,000 15,000 - - - - - Overhead - 18,626 10,000 (8,626) - - - - - Totals $ 110,000 $ 242,344 $ 150,000 $ 17,656 $ - $ - $ - $ - $ -

Project #20004 KFRC Exterior Upgrades Fiscal Year Project Began: 2020

Project Description: The scope of this project is to upgrade and repair the exterior of the KFRC building.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 55,000 57,855 75,000 72,145 72,145 - - - - Construction ------Equipment ------Other Services ------Contingency ------Overhead - 8,429 20,000 11,571 11,571 - - - - Totals $ 55,000 $ 66,284 $ 95,000 $ 83,716 $ 83,716 $ - $ - $ - $ -

159

Fund 428 -KFRC Capital Projects: CURRENT FUND ACTIVITY

Budget Project Budget as Life-to-Date FY 2021 Remaining as of

07/01/2020 as of 06/30/21 Completed Amendments 06/30/2021 Revenues:

Transfer in from Fund 555 - KFRC $ - $ 120,000 $ 120,000 $ -

Total Revenues $ - $ 120,000 $ 120,000 $ -

Expenditures: Project #21001 KFRC Fume Hoods - 15,406 120,000 104,594

Total Expenditures $ - $ 15,406 $ 120,000 $ 104,594

Project #21001 KFRC Fume Hoods Fiscal Year Project Began: 2021

Project Description: The scope of this project is to replace the fume hoods in the lab space of KFRC.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services - 8,842 15,000 6,158 6,158 - - - - Construction - - 100,000 100,000 98,436 - - - - Equipment ------Other Services ------Contingency ------Overhead - 6,564 5,000 (1,564) - - - - - Totals $ - $ 15,406 $ 120,000 $ 104,594 $ 104,594 $ - $ - $ - $ -

160

ESTIMATED FUTURE FUND ACTIVITY

FY2022 FY2023 FY2024 FY2025 FY2026

$ - $ - $ - $ - $ -

104,594 - - - -

$ 104,594 $ - $ - $ - $ -

161

Fund 430-State Funded Capital Projects: CURRENT FUND ACTIVITY

Budget Project Budget as Life-to-Date FY 2021 Remaining as of

07/01/2020 as of 06/30/21 Completed Amendments 06/30/2021 Revenues:

12010 Anton Larsen Bay Dock - Grant 2,100,000 1,878,320 - 221,680

Total Revenues $ 2,100,000 $ 1,878,320 $ - $ 221,680

Proje cts: Project #12010 Anton Larsen Bay Dock 2,100,000 1,848,574 - 251,426

Total Expenditures $ 2,100,000 $ 1,848,574 $ - $ 251,426

Project #12010 Anton Larsen Bay Dock Fiscal Year Project Began: 2012 Project Description: The scope of this project is to provide upgrades and expansion of existing floating dock facilities at the head of Anton Larsen Bay. Road damage and weight restrictions have delayed completion of the project.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services - 294,597 - (294,597) - - - - - Construction - 1,483,331 - (1,483,331) 251,426 - - - - Equipment 2,100,000 - - 2,100,000 - - - - - Other Services - 520 - (520) - - - - - Contingency ------Overhead - 70,126 - (70,126) - - - - - Totals $ 2,100,000 $ 1,848,574 $ - $ 251,426 $ 251,426 $ - $ - $ - $ -

162

ESTIMATED FUTURE FUND ACTIVITY

FY2022 FY2023 FY2024 FY2025 FY2026

221,680 - - - -

$ 221,680 $ - $ - $ - $ -

251,426 - - - -

$ 251,426 $ - $ - $ - $ -

163

Fund 432-State Funded Capital Projects: CURRENT FUND ACTIVITY

Budget Project Budget as Life-to-Date FY 2021 Remaining as of

07/01/2020 as of 06/30/21 Completed Amendments 06/30/2021 Revenues:

21002 - Saltery Cove Trail System Access & Improvements - FWS Grant 420,565 - - 420,565 21002 - Saltery Cove Trail System Access & Improvements - Island Trails Network 120,640 - - 120,640

Total Revenues $ 541,205 $ - $ - $ 541,205

Proje cts: Project #21002 Saltery Cove Trail Systeem Access and Improvements 541,205 25,540 - 515,665

Total Expenditures $ 541,205 $ 25,540 $ - $ 515,665

Project #21002 Saltery Cove Trail Systeem Access and Improvements Fiscal Year Project Began: 2021 Project Description: The scope of this project is to improve access to the Saltery Cove Trail and improve the trail system itself.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation - 24,340 - (24,340) - - - - - Design Services ------Construction ------Equipment ------Other Services 541,205 - - 541,205 257,833 257,833 - - - Contingency ------Overhead - 1,200 - (1,200) - - - - - Totals $ 541,205 $ 25,540 $ - $ 515,665 $ 257,833 $ 257,833 $ - $ - $ -

164

ESTIMATED FUTURE FUND ACTIVITY

FY2022 FY2023 FY2024 FY2025 FY2026

210,283 210,283 - - - 60,320 60,320 - - -

$ 270,603 $ 270,603 $ - $ - $ -

257,833 257,833 - - -

$ 257,833 $ 257,833 $ - $ - $ -

165

Fund 445 -Long Term Care Center Capital Projects CURRENT FUND ACTIVITY

Budget Project Budget as Life-to-Date FY 2021 Remaining as of

07/01/2020 as of 06/30/21 Completed Amendments 06/30/2021 Revenues:

Transfer in from Fund 545 - 85,000 85,000 -

Total Revenues $ - $ 85,000 $ 85,000 $ -

Proje cts: Project #21007 Long Term Care Center Fuel Line Replacement - 41,394 85,000 43,606

Total Expenditures $ - $ 41,394 $ 85,000 $ 43,606

Project #21007 Long Term Care Center Fuel Line Replacement Fiscal Year Project Began: 2021 Project Description: The scope of this project is to replace the fuel line from the fuel tank to the Long Term Care Center.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services - 12,534 15,000 2,466 4,655 - - - - Construction - 19,500 50,000 30,500 33,311 - - - - Equipment ------Other Services ------Contingency - - 5,000 5,000 - - - - - Overhead - 9,360 15,000 5,640 5,640 - - - - Totals $ - $ 41,394 $ 85,000 $ 43,606 $ 43,606 $ - $ - $ - $ -

166

ESTIMATED FUTURE FUND ACTIVITY

FY2022 FY2023 FY2024 FY2025 FY2026

- - - - -

$ - $ - $ - $ - $ -

43,606 - - - -

$ 43,606 $ - $ - $ - $ -

167

Fund 450 - Other Borough Capital Projects: CURRENT FUND ACTIVITY

Budget Project Budget as Life-to-Date FY 2021 Remaining as of

07/01/2020 as of 06/30/21 Completed Amendments 06/30/2021 Revenues:

Project #14001 Lake Orbin Culvert Replacement $ 208,242 $ 274,335 $ - $ (66,093) Project #16003 Chiniak Emergency Shelter Rebuild 670,958 729,915 - (58,957) Project #17008 EPA Brownfield Assessment Grant 600,000 600,000 Y - - Project #19006 Fire Prot Area #1 - Exhaust Venting System 140,000 134,253 (5,747) 0 Project #19009 Fire Prot. Area #1 - Exterior Improvement 375,000 420,000 Y 45,000 - Project #19011 Womens Bay Fire Kitchen Remodel 25,000 25,000 - -

Total Revenues $ 2,019,200 $ 2,183,503 $ 39,253 $ (125,050)

Expenditures: Project #14001 Lake Orbin Culvert Replacement $ 208,242 $ 274,335 $ - $ (66,093) Project #16003 Chiniak Emergency Shelter Rebuild 670,958 729,915 - (58,957) Project #17008 EPA Brownfield Assessment Grant 600,000 600,020 Y - (20) Project #19006 Fire Prot Area #1 - Exhaust Venting System 140,000 134,256 (5,744) 0 Project #19009 Fire Prot. Area #1 - Exterior Improvement 25,000 417,866 Y 395,000 2,134 Project #19011 Womens Bay Fire Kitchen Remodel 25,000 - - 25,000

Total Expenditures $ 1,669,200 $ 2,156,393 $ 389,256 $ (97,937)

168

ESTIMATED FUTURE FUND ACTIVITY

FY2022 FY2023 FY2024 FY2025 FY2026

$ - $ - $ - $ - $ ------12,961 ------

$ 12,961 $ - $ - $ - $ -

$ - $ - $ - $ - $ ------25,000 - - - -

$ 25,000 $ - $ - $ - $ -

169

Project #14001 Lake Orbin Culvert Replacement Fiscal Year Project Began: 2014

Project This scope of this project is to design and construct at least one identified fish barrier culvert with fish friendly culverts within the Lake Description: Orbin drainage

CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Category 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House 5,000 - - 5,000 - - - - - Land ------Site Investigation ------Design Services - 48,336 - (48,336) - - - - - Construction 175,242 204,898 - (29,656) - - - - - Equipment ------Other Services ------Contingency 23,000 - - 23,000 - - - - - Overhead 5,000 21,101 - (16,101) - - - - - Totals $ 208,242 $ 274,335 $ - $ (66,093) $ - $ - $ - $ - $ -

Project #16003 Chiniak Emergency Shelter Rebuild Fiscal Year Project Began: 2017 Project Description: The scope of this project is to rebuild the Chiniak Emergency Shelter to replace the one that was destroyed by the Twin Creeks fire in 2015.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ 12,084 $ 30,276 $ - $ (18,192) $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 43,010 32,324 - 10,686 - - - - - Construction 458,864 534,717 - (75,853) - - - - - Equipment - 25,852 - (25,852) - - - - - Other Services 157,000 106,746 - 50,254 - - - - - Contingency ------Overhead ------Totals $ 670,958 $ 729,915 $ - $ (58,957) $ - $ - $ - $ - $ -

Project #17008 EPA Brownfield Assessment Grant Fiscal Year Project Began: 2017 Project Description: The scope of this project is to assess up to 18 Brownfield sites in order to take initial steps toward cleaning up and redeveloping vacant & underutilized properties

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation 571,190 595,402 - (24,212) - - - - - Design Services ------Construction ------Equipment ------Other Services ------Contingency ------Overhead 28,810 4,618 - 24,192 - - - - - Totals $ 600,000 $ 600,020 $ - $ (20) $ - $ - $ - $ - $ -

170

Project #19006 Fire Prot Area #1 - Exhaust Venting System Fiscal Year Project Began: 2017 Project Description: The scope of this project is to install an exhaust venting system that will connect directly to the fire apparatus to eliminate combustion gases in the garage area.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 4,850 7,350 2,500 ------Construction 116,390 115,000 (1,390) ------Equipment ------Other Services ------Contingency 7,150 - (7,150) ------Overhead 11,610 11,906 296 0 - - - - - Totals $ 140,000 $ 134,256 $ (5,744) $ 0 $ - $ - $ - $ - $ -

Project #19009 Fire Prot. Area #1 - Exterior Improvement Fiscal Year Project Began: 2019

Project Description: The scope of this project is to repair and paint the exterior of the fire department building.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 22,000 20,247 2,000 3,753 - - - - - Construction - 371,128 373,000 1,872 - - - - - Equipment ------Other Services ------Contingency ------Overhead 3,000 26,491 20,000 (3,491) - - - - - Totals $ 25,000 $ 417,866 $ 395,000 $ 2,134 $ - $ - $ - $ - $ -

Project #19011 Womens Bay Fire Kitchen Remodel Fiscal Year Project Began: Project has yet to begin.

Project Description: The scope of this project is to remodel the fire department kitchen.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 20,000 - - 20,000 20,000 - - - - Construction ------Equipment ------Other Services ------Contingency ------Overhead 5,000 - - 5,000 5,000 - - - - Totals $ 25,000 $ - $ - $ 25,000 $ 25,000 $ - $ - $ - $ -

171

Fund 455 - Other Borough Capital Projects CURRENT FUND ACTIVITY

Budget Project Budget as Life-to-Date FY 2021 Remaining as of

07/01/2020 as of 06/30/21 Completed Amendments 06/30/2021 Revenues:

Project #20009 Salonie Creek Culvert Replacement 100,000 100,655 270,359 269,704 Project #20021 Tsunami Sirens Upgrades 530,742 628,985 91,785 (6,458) Project #20024 Chiniak School Water - 75,000 75,000 -

Total Revenues $ 100,000 $ 804,641 $ 437,144 $ 269,704

Proje cts: Project #20009 Salonie Creek Culvert Replacement - 40,989 100,000 329,370 Project #20021 Tsunami Sirens Upgrades 91,785 523,944 530,742 98,583 Project #20024 Chiniak School Water - 13,897 75,000 61,103

Total Expenditures $ 91,785 $ 578,831 $ 705,742 $ 489,055

172

ESTIMATED FUTURE FUND ACTIVITY

FY2022 FY2023 FY2024 FY2025 FY2026

134,852 134,852 - - -

- - - - -

$ 134,852 $ 134,852 $ - $ - $ -

164,685 164,685 - - - 98,583 - - - - 61,103 - - - -

$ 324,371 $ 164,685 $ - $ - $ -

173

Project #20009 Salonie Creek Culvert Replacement Fiscal Year Project Began: 2020 Project Description: The scope of this project is to replace the culvert at Salonie Creek to improve drainage and prevent flooding.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services - 39,193 - (39,193) - - - - - Construction 270,359 - 55,000 325,359 - - - - - Equipment ------Other Services - - - - 164,685 164,685 - - - Contingency - - 25,000 25,000 - - - - - Overhead - 1,796 20,000 18,204 - - - - - Totals $ 270,359 $ 40,989 $ 100,000 $ 329,370 $ 164,685 $ 164,685 $ - $ - $ -

Project #20021 Tsunami Sirens Upgrade Fiscal Year Project Began: 2020 Project Description: The scope of this project is to replace the old tsunami sirens and sytem with a new system and functional sirens.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services ------Construction - 20,291 520,000 499,709 98,583 - - - - Equipment 91,785 506,147 - (414,362) - - - - - Other Services - 1,719 - (1,719) - - - - - Contingency ------Overhead - (4,213) 10,742 14,955 - - - - - Totals $ 91,785 $ 523,944 $ 530,742 $ 98,583 $ 98,583 $ - $ - $ - $ -

Project #20024 Chiniak School Water Fiscal Year Project Began: 2021 Project Description: The scope of this project is to improve the potable water access to the Chiniak School.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services - - 15,000 15,000 15,000 - - - - Construction - 12,905 50,000 37,095 37,095 - - - - Equipment ------Other Services ------Contingency ------Overhead - 992 10,000 9,008 9,008 - - - - Totals $ - $ 13,897 $ 75,000 $ 61,103 $ 61,103 $ - $ - $ - $ -

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175

Fund 469-Borough Renewal & Replacement Capital Projects: CURRENT FUND ACTIVITY

Budget Project Budget as Life-to-Date FY 2021 Remaining as of

07/01/2020 as of 06/30/21 Completed Amendments 06/30/2021 Revenues:

11009 Island Wide UST Removal 567,931 567,931 - - 13006 Borough Building Rehab 1,931,702 1,931,702 - - 19001 Electric Boiler for Kodiak High School 564,000 466,883 Y (79,000) 18,117 20005 Borough Building Abatement/Mechanical Upgrades 100,000 175,000 75,000 -

Total Revenues $ 3,163,633 $ 3,141,516 $ (4,000) $ 18,117

Expenditures: 11009 Island Wide UST Removal 567,931 549,851 - 18,080 13006 Borough Building Rehab 1,931,702 23,520 - 1,908,182 19001 Electric Boiler for Kodiak High School 564,000 466,883 Y (79,000) 18,117 20005 Borough Building Abatement/Mechanical Upgrades 75,000 135,331 100,000 39,669 Transfers Out 542,509 2,116,996 1,574,487 -

Total Expenditures $ 3,681,142 $ 3,292,581 $ 1,595,487 $ 1,984,048

176

ESTIMATED FUTURE FUND ACTIVITY

FY2022 FY2023 FY2024 FY2025 FY2026

------

$ - $ - $ - $ - $ -

18,080 ------1,908,182 ------39,669 ------

$ 57,749 $ - $ - $ 1,908,182 $ -

177

Project #11009 Island Wide UST Removal Fiscal Year Project Began: 2011 Project Description: The scope of this project is to remove the old underground storage tanks (USTs) at the schools in the villages. The first is in Karluk.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Life-to-Date Budget Expenditure Budget as as of FY 2021 Remaining as of Ca tegory 07/01/2020 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation 6,302 6,302 - 0 - - - - - Design Services 83,035 152,183 - (69,148) - - - - - Construction 401,477 312,099 - 89,378 18,080 - - - - Equipment 41,345 41,345 ------Other Services ------Contingency 19,255 - - 19,255 - - - - - Overhead 16,517 37,922 - (21,405) - - - - - Totals $ 567,931 $ 549,851 $ - $ 18,080 $ 18,080 $ - $ - $ - $ -

Project #13006 Borough Building Rehab Fiscal Year Project Began: 2014 Project Description: The scope of this project is to rehabilitate and renovate the Borough building.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Life-to-Date Budget Expenditure Budget as as of FY 2021 Remaining as of Ca tegory 07/01/2020 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services - 23,182 - (23,182) - - - - - Construction 1,931,702 - - 1,931,702 - - - 1,908,182 - Equipment ------Other Services ------Contingency - 338 - (338) - - - - - Overhead ------Totals $ 1,931,702 $ 23,520 $ - $ 1,908,182 $ - $ - $ - $ 1,908,182 $ -

Project #19001 KHS Electric Boiler Fiscal Year Project Began: 2019 Project Description: The scope of this project is to install a backup electric boiler. The cost of replacing the boiler is being reimbursed by the Kodiak Electric Association (KEA). During times when the electric company produces more electricity than it has demand for, the electric company has the ability to interrupt the diesel powered boiler and use the electric powered boiler. The Borough has entered into an agreement with KEA for a reduced rate for the excess generated electricity.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Life-to-Date Budget Expenditure Budget as as of FY 2021 Remaining as of Ca tegory 07/01/2020 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 38,000 21,341 - 16,659 - - - - - Construction 475,000 397,890 (79,000) (1,890) - - - - - Equipment ------Other Services ------Contingency 25,000 - - 25,000 - - - - - Overhead 26,000 47,652 - (21,652) - - - - - Totals $ 564,000 $ 466,883 $ (79,000) $ 18,117 $ - $ - $ - $ - $ -

178

Project #20005 Borough Building Abatement/Mechanical Upgrades Fiscal Year Project Began: 2020 Project Description: The scope of this project is to abate asbestos in the Borough Building and make some needed mechanical upgrades.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Life-to-Date Budget Expenditure Budget as as of FY 2021 Remaining as of Ca tegory 07/01/2020 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 75,000 121,258 80,000 33,742 33,742 - - - - Construction ------Equipment ------Other Services ------Contingency ------Overhead - 14,073 20,000 5,927 5,927 - - - - Totals $ 75,000 $ 135,331 $ 100,000 $ 39,669 $ 39,669 $ - $ - $ - $ -

Transfers Out Fiscal Year Project Began: n/a Project Description: This tracks the transfers out to other funds.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Life-to-Date Budget Expenditure to Budget as as of FY 2021 Remaining as of Fund/Project 07/01/2020 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 450/Project #16003 $ 130,000 $ 130,000 $ - $ - $ - $ - $ - $ - $ - 300/Debt Service 412,509 1,986,996 1,574,487 ------Totals $ 542,509 $ 2,116,996 $ 1,574,487 $ - $ - $ - $ - $ - $ -

179

Fund 470-Bonded School Renewal & Replacement Capital Projects: CURRENT FUND ACTIVITY

Project Budget Budget as Life-to-Date FY 2021 Remaining as of

07/01/2020 as of 06/30/21 Completed Amendments 06/30/2021 Revenues:

Bond Proceeds (2015 GO Bond Series) $ 10,230,000 $ 10,230,000 Y $ - $ - Project #15010 Playground Replacements State Grant 50,000 50,000 - -

Total Revenues $ 10,280,000 $ 10,280,000 $ - $ -

Expenditures: Project #15003 Roofing Replacement East & KMS $ 822,527 $ 822,527 Y $ - $ - Project #15005 Flooring Replacement - Main and Peterson 586,882 586,882 Y - - Project #15006 Peterson Elementary Boilers & Controls 826,995 826,995 Y - - Transfer to Project #20008 (split in 415 and 470) - 867,467 867,467 -

Total Expenditures $ 2,236,404 $ 3,103,871 $ 867,467 $ -

180

ESTIMATED FUTURE FUND ACTIVITY

FY2022 FY2023 FY2024 FY2025 FY2026

$ - $ - $ - $ - $ ------

$ - $ - $ - $ - $ -

$ - $ - $ - $ - $ ------

$ - $ - $ - $ - $ -

181

Project #15003 Roofing Replacement East & KMS Fiscal Year Project Began: 2016 Project Description: This scope of this project is to to replace the roofing for East Elementary and Kodiak Middle School

CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Category 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 72,599 72,599 ------Construction 733,855 733,855 ------Equipment ------Other Services ------Contingency ------Overhead 16,073 16,073 ------Totals $ 822,527 $ 822,527 $ - $ - $ - $ - $ - $ - $ -

Project #15005 Flooring Replacement - Main and Peterson Fiscal Year Project Began: 2016 Project Description: This scope of this project is to replace the flooring for both Main Elementary and Peterson Elementary.

CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Category 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 29,149 29,149 ------Construction 538,158 538,158 ------Equipment ------Other Services ------Contingency ------Overhead 19,575 19,575 ------Totals $ 586,882 $ 586,882 $ - $ - $ - $ - $ - $ - $ -

Project #15006 Peterson Elementary Boilers & Controls Fiscal Year Project Began: 2015 Project Description: This scope of this project is to install new boilers and controls for Peterson Elementary

CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Budget Expenditure Project Budget Life-to-Date FY 2021 Remaining as of Category as 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 67,452 67,452 ------Construction 738,739 738,739 ------Equipment ------Other Services ------Contingency ------Overhead 20,804 20,804 ------Totals $ 826,995 $ 826,995 $ - $ - $ - $ - $ - $ - $ -

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183

Fund 490-Landfill Capital Projects: CURRENT FUND ACTIVITY

Budget Project Budget as Life-to-Date FY 2021 Remaining as of

07/01/2020 as of 06/30/21 Completed Amendments 06/30/2021 Revenues:

ACWF Loan 505031 $ 3,000,000 $ 3,000,000 $ - $ - Sale of Revenue Bonds 3,650,000 2,129,708 - 1,520,292 State Legislative Grants 7,529,000 7,529,000 - - ACWF Loan 505041 14,463,548 12,756,913 - 1,706,635 ACWF Loan 505061 3,000,000 3,000,000 - - Transfers in from Fund 530 1,203,000 1,293,281 115,749 25,468

Total Revenues $ 32,845,548 $ 29,708,902 $ 115,749 $ 3,252,395

Expenditures: Project #07013 Landfill Lateral Expansion $ 32,000,000 $ 28,377,021 $ - $ 3,622,979 Project #17001 Landfill Scale Shack 100,000 55,749 (44,251) 0 Project #17002 Baler Building Siding & Roof 975,000 931,914 - 43,086 Project #18004 Baler Building Septic Removal/Replacement 90,000 63,522 - 26,478 Project #18005 Baler Building UST Removal/ Replacement 85,000 209,631 150,000 25,369 Project #19012 Leachate Aeration 28,000 32,464 10,000 5,536

Total Expenditures $ 33,278,000 $ 29,670,302 $ 115,749 $ 3,723,447

184

ESTIMATED FUTURE FUND ACTIVITY

FY2022 FY2023 FY2024 FY2025 FY2026

$ - $ - $ - $ - $ - 1,520,292 ------1,706,065 ------129,798 - - - -

$ 3,356,155 $ - $ - $ - $ -

$ 3,622,979 $ - $ - $ - $ ------26,478 - - - - 25,369 - - - - 5,536 - - - -

$ 3,680,362 $ - $ - $ - $ -

185

Project #07013 Landfill Lateral Expansion Fiscal Year Project Began: 2007 Project Description: This scope of this project is to expand the landfill.

CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project Budget Budget Expenditure as Life-to-Date FY 2021 Remaining as of Category 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House 200,000 167,578 - 32,422 32,422 - - - - Land ------Site Investigation ------Design Services 3,750,000 3,538,507 - 211,493 211,493 - - - - Construction 25,000,000 24,165,665 - 834,335 834,335 - - - - Equipment 75,000 1,240 - 73,760 73,760 - - - - Other Services 10,000 7,670 - 2,330 2,330 - - - - Contingency 2,215,000 - - 2,215,000 2,215,000 - - - - Overhead 750,000 496,362 - 253,638 253,639 - - - - Totals $ 32,000,000 $ 28,377,021 $ - $ 3,622,979 $ 3,622,979 $ - $ - $ - $ -

Project #17001 Landfill Scale Shack Fiscal Year Project Began: 2017 Project Description: The scope of this project is upgrade the scale shack at the landfill.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Life-to-Date Budget Expenditure Budget as as of FY 2021 Remaining as of Ca tegory 07/01/2020 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services ------Construction 75,000 54,513 - 20,487 - - - - - Equipment - - (44,251) (44,251) - - - - - Other Services ------Contingency ------Overhead 25,000 1,236 - 23,764 - - - - - Totals $ 100,000 $ 55,749 $ (44,251) $ 0 $ - $ - $ - $ - $ -

Project #17002 Baler Building Siding & Roof Fiscal Year Project Began: 2017 Project Description: The scope of this project is to replace the siding and roof of the baler building at the landfill.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Life-to-Date Budget Expenditure Budget as as of FY 2021 Remaining as of Ca tegory 07/01/2020 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 67,800 74,626 - (6,826) - - - - - Construction 787,000 789,045 - (2,045) - - - - - Equipment ------Other Services ------Contingency 75,000 - - 75,000 - - - - - Overhead 45,200 68,244 - (23,044) - - - - - Totals $ 975,000 $ 931,914 $ - $ 43,086 $ - $ - $ - $ - $ -

186

Project #18004 Baler Building Septic Removal/Replacement Fiscal Year Project Began: 2018 Project Description: Due to changes in the building walls, relocation of septic lines was necessary

CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project Budget Budget Expenditure as Life-to-Date FY 2021 Remaining as of Category 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 40,000 28,198 - 11,802 11,802 - - - - Construction 35,000 28,691 - 6,309 6,309 - - - - Equipment ------Other Services ------Contingency ------Overhead 15,000 6,634 - 8,366 8,367 - - - - Totals $ 90,000 $ 63,522 $ - $ 26,478 $ 26,478 $ - $ - $ - $ -

Project #18005 Baler Building UST Removal/ Replacement Fiscal Year Project Began: 2018 Project Description: This scope of this project is to remove the underground tank and install an above ground tank.

CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project Budget Budget Expenditure as Life-to-Date FY 2021 Remaining as of Category 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation - 842 - (842) - - - - - Design Services 5,000 31,146 40,000 13,854 - - - - - Construction 80,000 155,014 90,000 14,986 25,369 - - - - Equipment ------Other Services ------Contingency ------Overhead - 22,630 20,000 (2,630) - - - - - Totals $ 85,000 $ 209,631 $ 150,000 $ 25,369 $ 25,369 $ - $ - $ - $ -

Project #19012 Leachate Aeration Fiscal Year Project Began: 2020 Project Description: This scope of this project is to provide aeriation to leachate prior to it entering the plant. This will result in driving off of VOCs (volatile organic compounds), and assist in coalescence of metals and minerals to drop out of the leachate as solids prior to entering the plant. CURRENT FUND ACTIVITY ESTIMATED FUTURE FUND ACTIVITY Project Budget Budget Expenditure as Life-to-Date FY 2021 Remaining as of Category 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 28,000 32,464 5,000 536 5,536 - - - - Construction ------Equipment ------Other Services ------Contingency ------Overhead - - 5,000 5,000 - - - - - Totals $ 28,000 $ 32,464 $ 10,000 $ 5,536 $ 5,536 $ - $ - $ - $ -

187

Fund 495-Hospital Capital Projects: CURRENT FUND ACTIVITY

Budget Project Budget as Life-to-Date FY 2021 Remaining as of

07/01/2020 as of 06/30/21 Completed Amendments 06/30/2021 Revenues:

Transfers in from Fund 540 $ 315,000 $ 3,085,000 $ 2,940,000 $ 170,000

Total Revenues $ 315,000 $ 3,085,000 $ 2,940,000 $ 170,000

Expenditures: Project #19014 PKIMC Fuel Leak 150,000 179,288 - (29,288) Project #20001 PKIMC New Fuel Tank 30,000 218,791 Y 200,000 11,209 Project #20003 PKIMC Retaining Wall 95,000 704,935 2,740,000 2,130,065 Project #20006 PKIMC Structural Analysis 50,000 38,122 - 11,878

Total Expenditures $ 325,000 $ 1,141,135 $ 2,940,000 $ 2,123,865

188

ESTIMATED FUTURE FUND ACTIVITY

FY2022 FY2023 FY2024 FY2025 FY2026

$ 170,000 $ - $ - $ - $ -

- - - - - 11,209 - - - - 2,130,065 - - - - 11,878 - - - -

$ 2,153,152 $ - $ - $ - $ -

189

Project #19014 PKIMC Fuel Leak Fiscal Year Project Began: 2019 Project Description: The scope of this project is to clean up and remidate fuel spilled and repair the associated fuel system at the Hospital

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land - 5 - (5) - - - - - Site Investigation ------Design Services - 35,914 - (35,914) - - - - - Construction 120,000 59,495 - 60,505 - - - - - Equipment - 45,406 - (45,406) - - - - - Other Services ------Contingency ------Overhead 30,000 38,467 - (8,467) - - - - - Totals $ 150,000 $ 179,288 $ - $ (29,288) $ - $ - $ - $ - $ -

Project #20001 PKIMC New Fuel Tank Fiscal Year Project Began: 2020 Project Description: The scope of this project is to install a new fuel tank at the hospital.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services - 29,250 35,000 5,751 - - - - - Construction 30,000 101,980 75,000 3,021 - - - - - Equipment - 62,305 62,000 (305) - - - - - Other Services ------Contingency - - 13,000 13,000 11,209 - - - - Overhead - 25,257 15,000 (10,257) - - - - - Totals $ 30,000 $ 218,791 $ 200,000 $ 11,209 $ 11,209 $ - $ - $ - $ -

190

Project #20003 PKIMC Retaining Wall Fiscal Year Project Began: 2020 Project Description: The scope of this project is to repair and reinforce the retaining wall beside the hospital building parking lot.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 85,000 169,481 135,000 50,519 50,519 - - - - Construction - 490,175 2,500,000 2,009,825 2,009,825 - - - - Equipment ------Other Services ------Contingency - - 80,000 80,000 - - - - - Overhead 10,000 45,279 25,000 (10,279) 69,721 - - - - Totals $ 95,000 $ 704,935 $ 2,740,000 $ 2,130,065 $ 2,130,065 $ - $ - $ - $ -

Project #20006 Structural Analysis Fiscal Year Project Began: 2020 Project Description: The scope of this project is to perform an analysis on the hospital building and identify structural projects in need of attention.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 43,000 38,106 - 4,894 4,894 - - - - Construction ------Equipment ------Other Services ------Contingency ------Overhead 7,000 16 - 6,984 6,984 - - - - Totals $ 50,000 $ 38,122 $ - $ 11,878 $ 11,878 $ - $ - $ - $ -

191

Fund 497 - Hosptial Capital Projects CURRENT FUND ACTIVITY

Budget Project Budget as Life-to-Date FY 2021 Remaining as of

07/01/2020 as of 06/30/21 Completed Amendments 06/30/2021 Revenues:

Transfer in from Project #18002 PKIMC Roof 118,000 118,000 - - Transfer in from Project #18003 PKIMC Fire Suppression 608,000 608,000 - -

Total Revenues $ 726,000 $ 726,000 $ - $ -

Proje cts: Project #21000 PKIMC Fire Alarm Replacement & Upgrade 726,000 33,518 - 692,482

Total Expenditures $ 726,000 $ 33,518 $ - $ 692,482

Project #21000 PKIMC Fire Alarm Replacement & Upgrades Fiscal Year Project Began: 2020 Project Description: The scope of this project is to replace the fire alarm system and provide better fire suppression infrastructure.

CURRENT PROJECT ACTIVITY ESTIMATED FUTURE PROJECT ACTIVITY Project Budget Expenditure Budget as Life-to-Date FY 2021 Remaining as of Ca tegory 07/01/2020 as of 06/30/21 Amendments 06/30/2021 FY2022 FY2023 FY2024 FY2025 FY2026 Administration $ - $ - $ - $ - $ - $ - $ - $ - $ - CM In House ------Land ------Site Investigation ------Design Services 75,000 25,512 - 49,488 49,488 - - - - Construction 546,475 - - 546,475 546,475 - - - - Equipment ------Other Services ------Contingency 50,000 - - 50,000 50,000 - - - - Overhead 54,525 8,006 - 46,519 46,519 - - - - Totals $ 726,000 $ 33,518 $ - $ 692,482 $ 692,482 $ - $ - $ - $ -

192

ESTIMATED FUTURE FUND ACTIVITY

FY2022 FY2023 FY2024 FY2025 FY2026

------

$ - $ - $ - $ - $ -

692,482 - - - -

$ 692,482 $ - $ - $ - $ -

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194

ENTERPRISE FUNDS

Enterprise Funds Description Enterprise funds are a different type of fund than the General or Special Revenue Funds. They are similar to business type operations in that the costs of providing goods and services are recovered through user fees.

Enterprise funds do not include special revenue, debt service or capital projects funds.

Funds included in this section are: • Municipal Solid Waste Collection and Disposal • Hospital Facility • Long-Term Care Facility • Kodiak Fisheries Research Facility • Research Court Apartments • 911 Service

195

ENTERPRISE FUNDS BUDGET SUMMARY

Municipal Solid Waste Collection Hospital Long-Term Care Kodiak Fisheries KFRC 911 and Disposal Facility Center Research Center Apartments Service Total

Estimated Beginning Net Assets $ 7,372,631 $ 934,292 $ 2,382,169 $ 2,119,080 $ 47,434 $ - $ 12,855,606

Revenues Disposal Fees 4,205,000 - - - - - 4,205,000 Rents and Royalties - 1,384,272 1,043,628 709,338 73,800 - 3,211,038 PERS on Behalf Payment 64,400 - - 10,838 684 - 75,922 Metal Recycling 30,000 - - - - - 30,000 Customer Charges - - - - - 295,000 295,000 Interest Earnings 100,000 - - 38,090 - - 138,090 Proceeds of Long Term Debt 27,211 - 57,804 - - - 85,015 Use of Fund Balance 612,998 718,368 - 3,306,926 5,150 - 4,643,442 Transfers in ------Total Revenues and Transfers In 5,039,609 2,102,640 1,101,432 4,065,192 79,634 295,000 12,683,507 Total Available Funds 12,412,240 3,036,932 3,483,601 6,184,272 127,068 295,000 25,539,113

Expenses Waste Disposal ------Personnel Costs 1,395,709 40,319 - 270,192 15,334 1,500 1,723,054 Contracted Services 497,000 - 75,000 - - 293,200 865,200 KFRC Apartments - - - - 64,300 - 64,300 Depreciation 280,484 1,062,321 518,933 697,000 - - 2,558,738 Debt Service Interest 263,766 - 420,675 - - - 684,441 Support Goods & Services 1,157,650 1,000,000 86,824 32,000 - 300 2,276,774 Other 1,445,000 - - 3,066,000 - - 4,511,000 Total Use of Funds 5,039,609 2,102,640 1,101,432 4,065,192 79,634 295,000 12,683,507 Est. Net Assets 06/30/2022 $ 7,372,631 $ 934,292 $ 2,382,169 $ 2,119,080 $ 47,434 $ - $ 12,855,606

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197

MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL FY2022

PROGRAM DESCRIPTION: The Kodiak Island Borough manages solid waste collection services with a private contractor and provides waste disposal and limited recycling services for the residents and commercial generators located on the Kodiak road system. Residents and commercial waste generators may also deliver solid waste such as garbage, household hazardous waste, construction debris, scrap metal, asbestos, and used oil to the landfill facility for disposal.

The Engineering and Facilities Department is responsible for the administration, operation, and maintenance of the solid waste baling (baler) facility, landfill area, and the newly completed Leachate Treatment Plant. The landfill is operated in compliance with federal, state, and local regulations and guidelines.

GOALS AND OBJECTIVES:

To provide cost-effective, environmentally safe waste collection, disposal, and recycling services for Kodiak Island. • Manage the long-term contract for collection. • Improve the overall health of the landfill area. • Plan and design systems that will allow the landfill to operate in compliance with the ADEC permit requirements.

ANALYSIS: The landfill will continue to operate within the regulatory requirements as set forth with the several issues ADEC permits. Improvement regarding process and customer relations with be regularly reviewd with the staff to identify areas that can be improved. Planning for shot rock development and discussions with the ADOT are underway and will continue.

The Borough amended its reserve policies with additional provisions for this fund.

“Solid Waste Disposal and Collection Fund. The borough will maintain an operating reserve for adequate cash flow, budget contingencies and loan payment reserves. The cash flow reserve within the solid waste disposal and collection fund is an amount equal to six months of budgeted operating expenditures and the loan payment reserve is the following year’s total loan payments.”

SIGNIFICANT BUDGET CHANGES: A request has been submitted for a capital expenditure to replace the aging bulldozer.

198

MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL (CONT.) FY2022

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Penalties/Interest on Tax $ 4,912 $ 1,797 $ 4,000 $ 4,320 $ 2,000 Licenses & Permits - - - - - Federal Revenue - 628 - 188 - PERS on Behalf Payment 21,847 (17,840) 47,797 57,988 64,400 Disposal Fees 4,435,772 4,123,040 4,473,000 4,019,944 4,203,000 Interest Earnings 306,914 240,268 110,000 27,539 100,000 Miscellaneous 29,614 28,578 25,000 101,332 30,000 Transfers In - - - - - Premium on Bonds 27,211 27,210 27,211 27,211 27,211 Use of Fund Balance - - 976,599 - 612,998 Total Revenues $ 4,826,270 $ 4,403,680 $ 5,663,607 $ 4,238,522 $ 5,039,609

Expenditures SOLID WASTE DISPOSAL FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 548,674 $ 496,023 $ 559,329 $ 523,416 $ 572,935 Employee Benefits 279,572 125,093 431,923 383,661 422,062 Contracted Services 299,316 217,268 367,809 199,745 322,000 Legal Fees 7,134 3,160 5,000 21,977 10,000 Contributions 37,040 37,904 180,000 210,084 180,000 Support Goods & Services 534,920 575,624 1,256,000 534,312 776,150 Capital Outlay - 267,870 15,000 10,665 750,000 Debt Service Interest 111,713 101,608 115,500 93,125 83,125 Closure/Post Closure 295,000 149,000 750,000 805,773 - Other 150,000 160,000 215,749 225,749 150,000 Depreciation 288,234 280,483 672,055 296,000 280,484 Sub-Total $ 2,551,603 $ 2,414,033 $ 4,568,365 $ 3,304,507 $ 3,546,756 LEACHATE TREATMENT PLANT FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel Services $ 143,721 $ 177,298 $ 189,676 $ 191,259 $ 226,898 Employee Benefits 106,784 134,291 140,375 144,307 173,814 Professional Services 82,881 78,256 160,000 85,735 165,000 Support Goods & Services 274,884 148,173 389,000 313,389 381,500 Capital Outlay 92,714 112,234 27,000 4,730 365,000 Debt Service Interest 212,326 200,697 220,000 192,177 180,641 Other 28,000 120 - - - Depreciation - - - 1,435 - Sub-Total $ 941,310 $ 851,068 $ 1,126,051 $ 933,033 $ 1,492,853 Total Expenditures $ 3,492,913 $ 3,265,101 $ 5,694,416 $ 4,237,539 $ 5,039,609

199

MUNICIPAL SOLID WASTE COLLECTION AND DISPOSAL (CONT.) FY2022

Personnel FY2018 FY2019 FY2020 FY2021 FY2022 Solid Waste Disposal Positions Actual Actual Actual Actual Budget Solid Waste Mgr / Environmental Specialist 0 0 1 1 1 Baler/Landfill Supervisor 1 1 1 1 1 Baler Operator II 1 1 1 1 1 Baler Operator I 4 4 4 4 4 Landfill Attendant 0 0 0 0 1 Total Number of Employees 6 6 7 7 8

FY2018 FY2019 FY2020 FY2021 FY2022 Leachate Treatment Plant Positions Actual Actual Actual Actual Budget Treatment Plant Operator Lead 1 1 1 1 1 Treatment Plant Operator 0 0 0 0 0 Treatment Plant Operator Trainee 1 1 1 1 1 Total Number of Employees 2 2 2 2 2

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HOSPITAL FUND FY2022

PROGRAM DESCRIPTION: The Hospital Facilities Fund collects lease revenues and other resources to be used for care and maintenance of current hospital facilities. On April 22, 1997, the Kodiak Island Borough leased the Kodiak Island Hospital to Providence Health and Services of Alaska. The hospital is now known as the Providence Kodiak Island Medical Center. In FY2017, the original 20-year lease ended and a new lease was negotiated. The new lease began July 1, 2017. Open communication is being formalized regarding projects within the hospital complex whether funded by Providence or the KIB. Interaction between the two entities has been continually improving over the past several years leading to an attitude of partnership.

GOALS AND OBJECTIVES: • Maintain a healthy fund balance. • Cooperatively work with Providence to identify critical repair and maintenance items at the facilities. • Identify the long-range goals for the facility as health care needs and delivery methods change.

ANALYSIS: The KIB continues to process the materials associated with the two recent fuel leaks on the hospital grounds. Remediation will be the focus of engineering and facilities staff during the 2022 fiscal year. Fuel tanks have been replaced or will be modified to reduce the risk associated with aging piping and code changes. Continued discussions with Providence is the key to ensuring similar incidents do not occur in the future.

SIGNIFICANT BUDGET CHANGES: No significant budget changes have been requested. All capital projects are presented for approval of the KIB Assembly per code requirements.

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HOSPITAL FUND (CONT.) FY2022

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Interest Earnings $ 101,495 $ 50,053 $ 30,000 $ (20,854) $ - Providence Lease 1,384,272 1,384,272 1,384,272 1,384,272 1,384,272 Other - - - - - Use of Fund Balance - - 2,800,000 - 718,368 Operating Transfers In - - - - - Premium on Bonds - - - - - Total Revenues $ 1,485,767 $ 1,434,325 $ 4,214,272 $ 1,363,418 $ 2,102,640

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Employee Salaries $ 43,387 $ 72,461 $ 40,319 $ 28,162 $ 40,319 Employee Benefits 2,788 18,794 - (7,875) - Support Goods & Services 91,314 170,610 325,838 (17,016) - Contracted Services - 5,760 - (5,718) - Depreciation 1,062,307 1,062,321 1,062,092 1,582,271 1,062,321 Debt Service Interest - - - - Other - - - - Operating Transfers 100,000 450,000 2,800,000 2,650,000 1,000,000 Contributions - - - - - Total Expenditures $ 1,299,796 $ 1,779,945 $ 4,228,249 $ 4,229,825 $ 2,102,640

Personnel FY2018 FY2019 FY2020 FY2021 FY2022 Personnel Actual Actual Actual Actual Budget There is no personnel for this fund. Total Number of Employees - - - - -

203

LONG-TERM CENTER CARE FUND FY2022

PROGRAM DESCRIPTION: In FY2013, the Borough constructed a 22 bed long-term care facility. This long-term care center is currently under lease to Providence Health and Services in Alaska. In the past year the two parties have come closer to establishing a long term lease for the facility that defines rolls of the involved parties including maintenance requirements of the tenant.

GOALS AND OBJECTIVES: • Correct old fuel line issues. • Continue to discuss the apparent repairs required to the facility by the PKIMC staff.

ANALYSIS: Regular discussions with the Providence management and staff have increased the awareness of the parties regarding the responsibility associated with maintenance of the building. The current plan is to continue to remediate the oil polluted soils created by a fuel piping failure. A capital project is underway to replace the original fuel lines to ensure that this type of spill does not reoccur. The KIB staff will continue to discuss regular inspections to be performed by the PKIMC staff.

SIGNIFICANT BUDGET CHANGES: There are no significant budget changes.

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LONG-TERM CENTER CARE FUND, CONT. FY2022

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Interest Earnings $ 124,262 $ 95,151 $ 32,000 $ 8,161 $ - LTC Lease 1,043,628 1,043,628 1,043,628 1,043,628 1,043,628 Other - - - - - Use of Fund Balance - - - - - Operating Transfers In - - - - - Premium on Bonds 57,804 57,804 57,804 57,805 57,804 Total Revenues $ 1,225,694 $ 1,196,584 $ 1,133,432 $ 1,109,593 $ 1,101,432

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Employee Salaries $ - $ - $ - $ 35,662 $ - Employee Benefits - - - 22,431 - Legal Fees - - - 520 - Support Goods & Services 18,927 23,140 172,224 147,467 86,824 Contracted Services 3,150 - - 13,848 75,000 Depreciation 518,933 518,933 518,933 - 518,933 Debt Service Interest 476,802 461,421 442,275 442,275 420,675 Other - - - 101,327 - Contributions - - - - - Total Expenditures $ 1,017,812 $ 1,003,494 $ 1,133,432 $ 763,530 $ 1,101,432

Personnel FY2018 FY2019 FY2020 FY2021 FY2022 Personnel Actual Actual Actual Actual Actual There is no personnel for this fund. Total Number of Employees - - - - -

205

KODIAK FISHERIES RESEARCH CENTER FY2022

PROGRAM DESCRIPTION: The Kodiak Island Borough is the owner/landlord of this state of the art Fisheries Research Center. This facility is managed, operated and maintained 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 and Arctic marine ecosystems. In addition, the KFRC contains a public interpretive center that provides an educational and interactive overview of marine life 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 diameter aquarium featuring local marine finfish, shellfish and other marine organisms. Many school children, cruise ship passengers, and tourists have visited the facility. The main source of revenue from this facility is in the form of lease payments. The major tenant of the facility is the National Oceanic and Atmospheric Administration (NOAA) and its subsidiary, National Marine Fisheries Service (NMFS), State of Alaska’s Department of Fish and Game, and Kodiak Regional Aquaculture Association

GOALS AND OBJECTIVES: To provide a world-class research center for use by various tenants and for community enjoyment. • Work with tenants to create flexible space for future research grants. • Provide an interpretive center to enhance the public’s knowledge, understanding, and appreciation of the diverse ecosystem surrounding the Kodiak archipelago.

ANALYSIS: The engineering & facilities department along with the tenants will identify the critical operational repairs and maintenance required to fulfill lease obligations and ensure the long term life of the facility and its components. Recently, the tenants and the KIB have been holding more frequent meetings and discussions to ensure that the tenants needs are met and that the appropriate tenant share of cost is being provided toward project costs.

SIGNIFICANT BUDGET CHANGES: No significant budget changes have been requested. Any capital projects are reviewed and approved by the KIB Assembly per the code requirements.

Personnel FY2017 FY2018 FY2019 FY2020 FY2021 Kodiak Fisheries Research Center Positions Actual Actual Actual Actual Budget Interpretive Specialist/Receptionist 0.5 0.5 0.5 0.5 0.5 Maintenance Engineer 1 1 1 1 1 Total Number of Employees 1.5 1.5 1.5 1.5 1.5

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KODIAK FISHERIES RESEARCH CENTER (CONT.) FY2022

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Federal Revenues $ - $ 1,257 $ - $ 5,852 $ - PERS on Behalf Payment 5,513 (4,535) 10,221 13,982 10,838 Interest Earnings 140,740 105,081 67,597 49,487 38,090 Rents & Royalties 819,899 787,043 700,750 598,490 709,338 Miscellaneous - Classified 268 252 - 12,975 - Operating Transfers In 45,000 45,000 - - - Use of Fund Balance - - 1,811,493 - 3,306,926 Total Revenues $ 1,011,420 $ 934,098 $ 2,590,061 $ 680,786 $ 4,065,192

Expenditures RESEARCH FACILITY FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel $ 172,492 $ 182,278 $ 178,393 $ 153,894 $ 159,080 Employee Benefits 85,030 55,491 114,582 93,018 111,112 Support Goods & Services 14,227 13,178 78,500 25,914 32,000 Capital Outlay - - - - - Depreciation 696,476 662,409 697,000 662,409 697,000 Debt Service - Interest - - - - - Janitorial 54,023 53,844 75,500 59,815 76,500 Heating 68,401 62,592 85,000 9,678 35,000 Electrical 146,022 128,430 160,000 160,040 185,000 Plumbing 40,613 46,049 258,000 26,977 118,000 Air Conditioning 2,750 3,291 11,500 233 14,000 Elevators 2,363 900 2,700 16,484 20,000 Miscellaneous 176,034 122,793 444,500 79,084 92,500 Bldg Repair/Maint 30,917 3,685 25,000 241 25,000 Other 180,000 210,000 484,086 484,086 2,500,000 Sub-Total $ 1,669,347 $ 1,544,941 $ 2,614,761 $ 1,771,875 $ 4,065,192 DORM FACILITY FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel $ 6,991 $ - $ - $ - $ - Employee Benefits 4,739 - - - - Support Goods & Services 1,060 - - - - Janitorial 7,886 - - - - Heating 8,370 - - - - Electrical 6,108 - - - - Plumbing 5,934 - - - - Air Conditioning - - - - - Elevators - - - - - Miscellaneous 28,572 - - - - Bldg Repair/Maint 12,635 - - - - Sub-Total $ 82,296 $ - $ - $ - $ - Total Expenditures $ 1,751,643 $ 1,544,941 $ 2,614,761 $ 1,771,875 $ 4,065,192

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RESEARCH COURT APARTMENTS FY2022

PROGRAM DESCRIPTION: In FY2020 the KIB began operating the Kodiak Fisheries Research Facility - Dorm Facility as a separate enterprise fund from the Kodiak Research Facility. For several years the dorm facility was leased to the University of Alaska- Fairbanks, the university did not renew their lease in FY2019. Therefore, the Kodiak Island Borough created this fund and is offering the apartments within the Dorm Facility to be used as residential rentals to the public. The Dorm Facility has five furnished apartments available for variable term leases, four of the apartments are one bedroom/one bath and one is two bedroom/one bath. This facility is managed, operated and maintained by the Engineering and Facilities department of the Borough. The facility has been successfully maintaining the occupancy of the available apartments.

GOALS AND OBJECTIVES: To provide residential leases to visiting fisheries research staff, Borough construction and engineering contractors. • Work with tenants to create affordable term leases in the Kodiak community. • Maintain full occupancy so that the facility pays for itself.

ANALYSIS: The Kodiak Fisheries Research Facility - Dorm Facility is a relatively new enterprise fund within the Kodiak Island Borough. It is anticipated that the apartments will all be leased for FY2022.

SIGNIFICANT BUDGET CHANGES: This fund is fully budgeted for FY2022.

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget PERS on Behalf Payment $ - $ - $ - $ - $ 684 Interest Earnings - 283 - 88 - Rents & Royalties - 49,560 30,000 71,314 73,800 Miscellaneous - Classified - - - 200 - Operating Transfers In - - - - - Use of Fund Balance - - 27,483 - 5,150 Total Revenues $ - $ 49,843 $ 57,483 $ 71,602 $ 79,634

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Personnel $ - $ 6,280 $ 4,165 $ 6,986 $ 8,430 Employee Benefits - 4,137 3,018 4,415 6,904 Support Goods & Services - 394 - 1,378 - Janitorial - 4,037 5,000 8,072 5,000 Heating - 5,033 11,500 5,467 11,500 Electrical - 4,735 10,000 5,692 10,500 Plumbing - 11,089 12,000 7,112 15,500 Air Conditioning - - - - - Depreceiation - 34,067 - 34,067 - Elevators - - - - - Miscellaneous - 4,805 11,800 4,918 21,800 Bldg Repair/Maint - 249 - - Total Expenditures $ - $ 74,826 $ 57,483 $ 78,106 $ 79,634

Personnel FY2018 FY2019 FY2021 FY2021 FY2022 Positions Actual Actual Actual Actual Actual There are no personnel for this fund. Total Number of Employees 0 0 0 0 0

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911 SERVICE FY2021

PROGRAM DESCRIPTION: This program is funded solely by a levy on individual phone lines in the area served. Although the Borough collects the revenue, this money is passed through to the City of Kodiak since they administer the operations of the service. The program provides for maintenance of an enhanced emergency response call-in system. The system hardware (located in the City of Kodiak dispatch center) displays owner and address information from the phone number calling 911. This system ensures appropriate and timely response to anyone calling, even when they are incapable of conversing with the dispatcher. The Borough’s Community Development Department is responsible for maintenance of the mapping and addressing that supports the 911 system.

GOALS AND OBJECTIVES: To continue a healthy partnership between the Borough and City of Kodiak for the benefit of the community’s 911 service. • Provide accurate and timely map and addressing updates to the City of Kodiak.

ANALYSIS: In 2018, by request of the City, the Borough raised the monthly per line fee from $0.75 to $2 along with adding a provision to tax cellular phone lines, which were not taxed previously.

SIGNIFICANT BUDGET CHANGES: No significant budget changes are projected at this time.

Revenues FY2019 FY2020 FY2021 FY2021 FY2022 Revenues Actual Actual Budget Estimated Budget Interest Earnings $ - $ - $ - $ - $ - Customer Charges 300,078 295,447 300,000 289,922 295,000 Total Revenues $ 300,078 $ 295,447 $ 300,000 $ 289,922 $ 295,000

Expenditures FY2019 FY2020 FY2021 FY2021 FY2022 Expenditures Actual Actual Budget Estimated Budget Allocated Salaries $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 Contracted Services 298,265 293,658 298,200 184,732 293,200 Support Goods & Services 296 307 300 328 300 Total Expenditures $ 300,060 $ 295,465 $ 300,000 $ 186,559 $ 295,000

Personnel FY2018 FY2019 FY2020 FY2021 FY2022 Personnel Actual Actual Actual Actual Actual There is no personnel for this fund. Total Number of Employees - - - - -

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ACRONYMS

TERM STANDS FOR TERM STANDS FOR ACWF Alaska Clean Water Fund GIS Geographic Information System ADA Americans with Disabilities Act GPM Gallons per minute ADEC Alaska Department of HVAC Heating, Ventilation and Air Environmental Conservation Conditioning ADEED Alaska Department of Education ICS Incident Command System & Early Development IMT Incident Management Team AHFC Alaska Housing Finance ISO Insurance Service Office Corporation IT Information Technology AICPAS American Institute of Certified KEA Kodiak Electric Association Public Accountants. A member KFRC Kodiak Fisheries Research Center organization representing the KIB Kodiak Island Borough accounting profession. They set KIBC Kodiak Island Borough Code ethical standards, auditing KIBSD Kodiak Island Borough School standards and develop the CPA District exam. LEPC Local Emergency Planning AML Alaska Municipal League Committee AS Alaska Statute LTP Leachate Treatment Plant BLM Bureau of Land Management. A MATR Maximum Allowable Tax federal department responsible Revenue for managing most vacant MVRT Motor Vehicle Registration Tax federally owned land. N/A Not applicable BVFD Bayside Volunteer Fire NFPA National Fire Protection Department Association CAFR Comprehensive Annual Financial NMFS National Marine Fisheries Report Service, a subsidiary of NOAA CDD Community Development NOAA National Oceanic and Department Atmospheric Administration CIP Capital Improvement Program OSHA Occupational Safety and Health CPI Consumer Product Index Administration DDC Direct Digital Control PC Personal computer DOR Alaska Department of Revenue PERS Public Employees’ Retirement DHS & Alaska Department of Homeland System EM Security & Emergency PILT Payment In Lieu of Tax Management P&R Parks & Recreation EMS Emergency Medical Services P&Z Planning and Zoning Commission EMT Emergency Medical Technician RFP Request for Proposal EPA Environmental Protection Agency RSA Road Service Area FTE Full-Time Equivalent R&R Renewal and Replacement FWS Fish and Wildlife Service SARA Title III of the Superfund FY Fiscal Year Title III Amendments and GAAP Generally accepted accounting Reauthorization Act; commonly principles known as the Emergency GASB Governmental Accounting Planning & Community Right-to- Standards Board know Act GFOA Government Finance Officers SAWS Siren Alert Warning System Association

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ACRONYMS

TERM STANDS FOR SCBA Self-contained Breathing Apparatus SCERP Small Community Emergency Response Plan SWAMC Southwest Alaska Municipal Conference SWAB Solid Waste Advisory Board TBD To Be Determined TCA Tax Code Area USCG United States Coast Guard UST Underground Storage Tank VOC Volatile Organic Compound WBFD Womens’ Bay Fire Department

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GLOSSARY

ACCRUAL BASIS: The basis of accounting under which the financial effects of a transaction and other events and circumstances that have cash consequences for the governmental entity are recorded in the period of which those transactions, events and circumstances occur, rather than only in the periods in which cash is received or paid by the entity.

ADOPTED BUDGET: Refers to the budget amounts as originally approved by the Kodiak Island Borough Assembly at the beginning of the year, and 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 that they may be expended.

ASSEMBLY: The governing body of the Kodiak Island Borough. Seven members and one mayor are elected at large by the voters of the Kodiak Island Borough.

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 upon personal and real property owned by taxpayers. State law requires all taxable property to be assessed annually at 100% of market value.

AT LARGE: An elected official who is elected to serve an entire area rather than one area or subdivision.

AUDIT: A systematic collection of the sufficient, competent evidential matter to attest to the fairness of management’s assertions in the financial statements or to evaluate whether management has efficiently carried out its responsibilities. The auditor obtains this evidential matter through inspections, observations, inquiries, and confirmations with third parties.

BALANCED BUDGET: A budget in which planned funds available equal planned expenditures.

BASIS OF ACCOUNTING: The 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 cash or accrual method.

BOARD OF EQUALIZATION: An official board of the Kodiak Island Borough that holds annual hearings for the purpose of settling disputes regarding the assessed value of property within the Borough.

BOND: A written promise to pay a specified sum of money, called the face value or principal amount, at a specified date in the future, called the maturity date, together with periodic interest at a specified date.

BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for a given period of time and the purposed means of financing them. Since 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

213

GLOSSARY

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. A 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 ASSET: A tangible asset, with a useful life longer than one year that is not intended for sale in the regular course of operations.

CAPITAL OUTLAY: Expenditures that result in the accumulation of items such as tools, desks, machinery, and vehicles costing more than $5,000, each having a useful life of more than one year, and that are not consumed through use are defined as capital items.

CAPITAL PROJECT: A project that is not permanently ongoing in nature and is either to construct new facilities or significant, long-term renovations to existing facilities.

CAPITAL PROJECTS FUND: Funds established to account for financial resources to be used for the acquisition or construction of major capital facilities (other than proprietary and trust funds).

COMPONENT UNIT: A separate government unit, agency, or non-profit corporation that is combined with other component units to constitute the reporting entity in conformity with GAAP.

COMPREHENSIVE ANNUAL FINANCIAL REPORT: The official annual report of a government including: (a) the five combined financial statements in the combined statement overview and their related notes; (b) combining statements by fund type and individual fund; and (c) account group financial statements prepared in conformity with GAAP and organized into a financial report pyramid. It also includes support schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, required supplementary information, extensive introductory material and detailed statistical sections.

CONTINGENCY: Those funds included in the budget for the purpose of providing a means to cover minor unexpected costs during the budget year.

CONTRACTUAL SERVICES: Items of expenditure from services that the Borough receives primarily from an outside company.

DEBIT SERVICE FUNDS: Funds established to account for the accumulation of resources for and the payment of general long-term debt principal and interest that resulted from the issuance of bonds.

DEFICIT: The excess of expenditures over revenues during an accounting period, or in the case of proprietary funds, the excess of expenses over revenues during an accounting period.

DEPRECIATION: This occurs when the cost of an asset is spread over its useful life.

ELECTORATE: All residents who are eligible to vote in an election.

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 propriety fund established to account for operations that are financed and operated in a manner similar to a private business enterprise. 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 will be financed or recovered primarily through user charges.

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GLOSSARY

EXPENDITURE: A 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.

EXPENSE: An outflow or other consumption 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.

FISCAL YEAR: The twelve-month accounting 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 count 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 Service, Capital Projects, Enterprise, Internal Service, and Trust and Agency.

GENERAL FUND: A type of governmental fund used to account for regular day-to-day Borough operations revenue and expenditures, including transactions which are not accounted for in specific purpose (special revenue) funds.

GENERAL OBLIGATION BONDS: Debts that are backed by the full faith and credit of a government agency.

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES: Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP encompasses 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 provides a standard for measuring financial presentations.

GOAL: The overall purpose(s) or reason(s) for a department or fund to exist which is tied to the Borough’s Strategic Plan.

GOVERNMENT FINANCE OFFICERS ASSOCIATION: A professional association of state, provincial and local government finance officers.

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.

GOVERNMENTAL ACCOUNTING STANDARDS BOARD: The authoritative accounting and financial reporting standard-setting body for state and local governments.

IN-KIND SERVICES: These are services that the Borough pays directly on behalf of the school district, these are services such as audit expenses and insurance.

INTERFUND TRANSFERS: These are amounts transferred from one fund to another, including reimbursements, residual equity transfers and operating transfers.

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GLOSSARY

INTERGOVERNMENTAL REVENUE: Revenues from other governments; usually in the forms 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 Borough Code.

LAPSE: As applied to appropriations, the automatic termination of an appropriation. Except for indeterminate appropriations and continuing appropriations, an appropriation is made for a specific period of time. When this time is reached, the appropriation will ‘lapse.’

LEVY: To impose taxes, special assessments, or service charges for the support of government activities. It is also used to denote the total amount of taxes, special assessments, or service charges imposed by a government.

LIABILITY: Debt or other legal obligation arising from the present obligation of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.

MAJOR FUND: Any fund where the assets, revenues or expenditures are at least 10 percent of the total of the overall fund type; and its assets, revenues or expenditures is at least five percent of the overall total of the government’s assets, revenues or expenditures; or is of major public interest. Major funds meeting these requirements are reported as a separate column in the basic financial statements of the comprehensive annual financial report (CAFR).

MEASUREMENT FOCUS: This accounting convention 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 (revenues and expenses).

MILL: The measure of the rate of property taxation, representing one one-thousandth (0.001) 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 ACCOUTING: 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 uses, and (2) prepaid insurance and similar items that may be considered expenditures either when paid for or when consumed. All government funds, except trust funds, and agency funds are accounted for using the modified accrual basis of accounting.

NON-MAJOR FUND: Any fund that does not meet the requirements for a major fund. Non-major funds are consolidated into a single column in the basic financial statements of the comprehensive annual financial report (CAFR).

OBJECTIVE: An objective is a specific way or action in which a department or fund will accomplish a specific goal.

OBSOLETE: A piece of equipment or a system that is out of date, of an outmoded type or model in need of replacement.

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GLOSSARY

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. The 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 inter-fund 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 services charges usually require ordinances.

OTHER FINANCING SOURCES: Government 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 government 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.

PERFORMANCE INDICATOR: A measurable standard in which a department or fund can show that an objective is being accomplished.

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 (e.g., repairing roads, treating water, etc.), provides information on what each program is committed to accomplish in the long term (goals) and in the short term (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 “provide” (a service), “supply” (a given need), “control, reduce or eliminate” (an occurrence), “maintain” (standards), or “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 the essential reason(s) 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 specified targets toward which a manager can plan, schedule work activities, and make staff assignments. Objectives should be quantifiably be addressed in terms such as “increase” (an activity), “maintain” (a service level), “reduce” (the incidence), or to “eliminate” (a problem).

PROPERTY TAX: A tax levied based on the assessed value of a property.

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GLOSSARY

PROPRIETARY FUND: A type of fund that accounts for government operations that are financed and operated in a manner similar to private business enterprises. The only proprietary funds used by the Borough are 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 (unfulfilled) purchase orders are called encumbrances.

REGULAR MEETING: A meeting occurring on the second and third Thursday of each month in which Assembly action is taken, comments are on record and other official business is conducted.

REQUEST FOR PROPOSAL: A written request asking vendors to submit bids with specifications and pricing that fits the scope of the request. This can be done for products or services.

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. Resolutions have a lower legal status 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; increases in the net total assets of a proprietary fund type other than expense refunds, capital contributions, and residual equity transfers. General long-term debt proceeds and operating transfers-in are classified as “other financing sources” rather than revenues. Operating transfers, as in governmental fund types, are classified separately from revenues.

SEVERANCE TAX: 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 ASSESSMENTS: Fees levied on property owners to construct an asset that benefits the property holder. These assessments are levied until the asset is paid for. The amount of the assessment can be based on value, size, road frontage, etc.

SPECIAL REVENUE FUND: A fund 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 specific 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 or 5.75%.

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.

WORK SESSION: An unofficial meeting of the Borough Assembly in which discussions take place, questions are posed for staff to answer and review of upcoming regular meeting packet material is conducted.

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APPENDIX

Map of secondary location of KIB Assembly Meetings and Work Sessions Bayside Fire Hall

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APPENDIX Total 13.85 12.75 10.75 12.50 12.25 14.50 12.00 13.72 14.24 12.25 13.75 12.25 14.00 13.90 12.00 262 0.25 0.25 Lake Fund Mission Tide Gate Tide 261 0.15 Fund Island Trinity Street Light 260 0.10 Fund Acres Woodland Woodland 254 1.25 Fund Airport Bay 252 1.25 1.25 Fund Womens Womens Fire Protection Fire 250 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 Fund Area #1 Protection Protection NON-A REA WIDE 246 1.47 Fund Bayview 244 Bay 1.99 Fund Monashka Monashka Road ServiceRoad 242 1.50 1.50 1.50 1.50 Fund Service Area #1 Bay 240 2.50 Fund Womens Womens 2.00 Kodiak City of : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : 469 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Fund Renew & al Replacement Replacement Kodiak Island Borough Mill Rates - Fiscal Year 2022, Tax Year Fiscal Mill 2022, Kodiak - Island Borough Year Rates 2021 300 1.65 1.65 1.65 1.65 1.65 1.65 1.65 1.65 1.65 1.65 1.65 1.65 1.65 1.65 1.65 Fund Service School Debt A REA WIDE 201 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99 Fund Support Education 100 2.11 2.11 2.11 2.11 2.11 2.11 2.11 2.11 2.11 2.11 2.11 2.11 2.11 2.11 2.11 Fund General Borough TCA 1 TCA 2 TCA 3 TCA 4 TCA 5 TCA 6 TCA 7 TCA 71 TCA 72 TCA 8 TCA 9 Tax Code AreaTax Code (TCA) ofCity Kodiak ServiceRoad Area 1 No. Area Protection 1 Fire No. AcresWoodland Street Lighting Airport Area Protection KIB Fire Bayview Service Road Area Area Protection 1 Fire No. Borough Entire (excluding special assessment areas) Area Protection 1 Fire No. w *Properties no road ith service ServiceRoad Area 1 No. Area Protection 1 Fire No. w *Properties no road ith service ServiceRoad Area 1 No. Area Protection 1 Fire No. Area Gate Tide Lake Mission w *Properties no road ith service ServiceRoad Area 1 No. Area Protection 1 Fire No. Street Islands Trinity Lighting Area Protection 1 Fire No. Monashka Bay Road Service Bay Road AreaMonashka Area Bay Road Womens Area Bay Fire Womens *Properties w *Properties no road ith service

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APPENDIX 2,251,273 300 Area-Wide Exempt Fund

* - 469 $ 201 9,368,146

Area-Wide Non-Exempt Funds 12.57 Totals 3,994,140 100

3.47 59,728 x x x x x x (200,000) 5,184,472 2,251,273 5,184,472 8,054,807 (2,730,063)

$ $ $ $ $ $ $ 1 Fund (Debt Service 300) 1 (Debt Fund Areawide Exempt Fund - - - -

9.10 x 100,734 134,519 13,362,286 13,597,539 13,496,805 $ $ $ $

$ $ $ $ $ 1,494,747,221 Areawide Non-Exempt Funds 3 Funds (Gen 100, Educ 201, R&R 469) R&R 201, Educ 100, (Gen Funds 3

0.00% (Note 2 Adjustments)(Note FY22 (TY21) Mill Rate Equivalent Rate Mill (TY21) FY22 TY2021 Certified Taxable Assessed Value Assessed Taxable Certified TY2021 TY21 Maximum Local Tax Revenue Allowed, After Exclusions Adjusted Prior Year Maximum Allowable Maximum Adjusted Year Revenue Prior Tax Adjusted Allowable Maximum Service Debt Revenue Tax TY21 Maximum Debt Service Tax Revenue Allowed, After Exclusions Adjustment for inflation (CY2020 Inflation using the Rate Adjustment inflation for (CY2020 No increase) Price index Consumer = Anchorage - Urban Taxes New on Construction/Improvements ServiceDebt Adjustments For tax levy purposes, exemptions are estimated. Due to these estimations, deficient or excess taxes may be unintentionally levied. Any deficiencies or excesses levied in a tax year will be adjusted for in the following year. Exclusions for: Voter Approved Services Approved Voter Judgements Paid in FY2021 Special emergency basis an on Appropriations 2 1 3 4 5 Budgeted Motor VehicleBudgeted Motor Ad-Valorem Revenue Note Adjustments 1 TY2020 Real & personal property taxes levied levied taxes property personal & Real TY2020 TY21 (FY22)Debt Service Principal, Interest & Service Payments Due Payments Service & Interest Principal, Service (FY22)Debt TY21 Reimbursements Service Debt SOA Budgeted Note 1 - TY19 Adjustments Plus: Plus: Note 1: Kodiak Island Borough Island Kodiak Computation Revenue Tax Local Maximum BudgetFY2022 (Jul 2021 - Jun 2022) 221

APPENDIX

Kodiak Island Borough Maximum Local Tax Revenue Computation Note 1 and Note 2 FY2022 Budget (Jul 2021 - Jun 2022)

"Note 1" - Prior Year true up Adjustment Details Areawide Exempt Non-Exempt (Debt Srv 300) (Gen 100, Educ 201, R&R 469)

Prior Maximum Allowable Tax Revenue 'CAP' FY20 (TY19) Property Tax Total $ 2,599,244 $ 12,840,033

Less Actual Revenues FY20 (TY19) Property Tax Total $ 2,539,516 $ 12,705,514

Total Note 1 Adjustments $ 59,728 $ 134,519

* For tax levy purposes, exemptions are estimated. Due to these estimations, deficient or excess taxes may be unintentionally levied. Any deficiencies or excesses levied in a tax year will be adjusted for in the following year.

"Note 2 "- New Construction and Improvements Adjustment Prior Year Combined Taxable Assessment Mill Rate * Total Adjustment New Construction & $ 10,949,316 9.20 $ 100,734 Improvements

$ 10,949,316 $ 100,734

* Mill Rate comprises: General Fund 2.75 Education Support 6.45 Renewal & Replacement 0.00 9.20

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