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HomeMy WebLinkAboutOrdinance No. 2836-2015Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2836 -2015 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING GENERAL FUND ESTIMATED REVENUES AND APPROPRIATIONS FOR COSTS IN EXCESS OF BUDGETED AMOUNTS. WHEREAS, the General Fund Buildings and Parks, Recreation & Beautification Departments project a shortfall in its leave budget due to leave cash -outs associated with employee leave cash -outs in excess of budgeted amounts; and, WHEREAS, annual department budget estimates for leave cash -outs include each employee cashing -out two weeks of leave; and, WHEREAS, when employees cash in more than this estimated amount, budget deficits are created and budget adjustments are needed to cover the deficit; and, WHEREAS, the FY2015 Budget forecasted the closure of the Old City Shop and the need for only minor utilities at that facility when the New City Shop opened; and, WHEREAS, due to occupancy and needs by other departments the facility was not closed and sufficient funds were not budgeted to cover utilities; and, WHEREAS, a greater amount of unemployment benefits were claimed by former Parks, Recreation & Beautification Department employees; and, WHEREAS, the City is billed for the actual amount of unemployment benefits paid and there is now a deficit in that account requiring attention. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1: Form: That this is a non -code ordinance New Text Underlined; ]DELETED TEXT BRACKETED] Ordinance No. 2836 -2015 Page 2 of 2 Section 2: That estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: Appropriation of Fund Balance $4 Increase Appropriations: Buildings - Leave $12,800 Parks, Recreation & Beautification - Leave 2,000 Parks, Recreation & Beautification - Unemployment Insurance 5,400 Shop Utilities 23.000 $4� PASSED BY THE COUNCIL OF THE CITY 2015. A Clerk by Finance: OF NAI, SKA, this 17th day of June, y ea41� PAT PORTER, MAYOR Introduced: June 3, 2015 Adopted: June 17, 2015 Effective: June 17, 2015 New Text Underlined; [DELETED TEXT BRACKETED] OVA "Villaye with a Past, C# with a Future FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 / To: Rick Koch, City Manager 7J From: Terry Eubank, Finance Director L Date: May 26, 2015 Re: Ordinance 2836 -2015 The purpose of this memo is to provide support for and to recommend passage of Ordinance 2836 -2015. Ordinance 2836 -2015 authorizes a supplemental appropriation in the General Fund to provide funds deficits in the budget of the following accounts: Buildings Department - Leave $12,800 Each department's budget includes a budget for employee leave cash -outs equal to two weeks of leave per employee of that department. Occasionally employees either leave the City requiring cash -out of all remaining leave or employees elect to cash -out more than two weeks. When this occurs, a deficit in the leave account's budget occurs and a budget revision or supplement fund request is needed to fix the deficit. The General Fund Building Department is requesting supplemental fund in the amount of $12,800 for its deficit created by cash -outs of a retiring employee. Parks, Recreation & Beautification Department — Leave $2,000 Each department's budget includes a budget for employee leave cash -outs equal to two weeks of leave per employee of that department. Occasionally employees either leave the City requiring cash -out of all remaining leave or employees elect to cash -out more than two weeks. When this occurs, a deficit in the leave account's budget occurs and a budget revision or supplement fund request is needed to fix the deficit. The General Parks, Recreation & Beautification Department is requesting supplemental fund in the amount of $2,000 for its deficit created by cash -outs by employees in excess of two weeks this fiscal year. Parks, Recreation & Beautification Department — Unemployment Insurance $5,400 The City is on the reimbursable method for the payment to the State for unemployment benefits. The City is only billed for actual benefits claimed and paid by the State. The City estimates this expenditure for each department at 0.5% of payroll. For departments with large season workforces, like Parks, Recreation & Beautification, this is often insufficient and supplemental funding is needed to fund deficits created. The General Parks, Recreation & Beautification Department is requesting supplemental fund in the amount of $5,400 for its deficit this fiscal year. Shop Department — Utilities $23,000 The FY2015 Budget forecasted the closure of the Old City Shop when the New City Shop opened. Utilities were expected to be minimal as the heat was to be set just above freezing and electric usage was to be minimal. Other departments expressed need for space in the Old Shop, Parks Recreation & Beautification and the Senior Center, and the utilities were more than projected. Supplemental funding in the amount of $23,000 is being requested to fund utilities through June 30, 2015. The FY2016 Budget includes these utilities in the departments or funds utilizing the space and future supplemental are not anticipated. Your support for passage of this Ordinance is respectively requested.