HomeMy WebLinkAboutOrdinance No. 2833-2015SUBSTITUTE
Suggested by: Administration
CITY OF KENAI
ORDINANCE NO. 2833 -2015
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA ADOPTING THE
ANNUAL BUDGET FOR THE FISCAL YEAR COMMENCING JULY 1, 2015 AND
ENDING JUNE 30, 2016.
WHEREAS, it is a requirement of the Code of the City of Kenai, Alaska, that the City
Council, not later than the tenth day of June, adopt a budget for the following fiscal
year and make appropriation of the monies needed.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA as follows:
Section 1:
That certain document entitled "City of Kenai Fiscal Year 2016 Annual Budget" which
is available for examination by the public in the Office of the City Clerk, the City's
website and is incorporated herein by reference is hereby adopted as the budget for
the City of Kenai for the fiscal year commencing July 1, 2015 and ending June 30,
2016.
Section 2:
The following sums of money are hereby appropriated for the operations of the City of
Kenai for the fiscal year commencing on the first day of July, 2015, and ending the
30th day of June, 2016, to be expended consistent with and subject to the
restrictions, procedures, and purposes set forth in the Code of the City of Kenai and to
be expended substantially by line item in the manner shown in the budget adopted by
Section 1 hereof:
General Fund
Enterprise Funds -
Congregate Housing
Special Revenue Funds:
Personal Use Fishery Fund
Water and Sewer Fund
Airport Fund
Senior Citizen Fund
Airport Land Sales Permanent Fund
General Land Sales Permanent Fund
Debt Service Fund
New Text Underlined; [DELETED TEXT BRACKETED]
$15,544,659
519,906
505,713
2,418,459
2,959,317
924,366
1,171,705
155,946
178,798
SUBSTITUTE
Ordinance No. 2833 -2015
Page 2 of 2
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 3rd day of June,
2015.
PAT PORTER, MAYOR
A E
Sardri& Ciey Clerk A —
Approved by Finance: =I *�
Introduced: May 20, 2015
Adopted: June 3, 2015
Effective: July 1, 2015
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LW
"Villaye with a Past, C# with a Future"
To: Rick Koch, City Manager
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014
1/ From: Terry Eubank, Finance Director
Date: May 26, 2015
Re: Substitute Ordinance 2833 -2015
The purpose of this memo is to explain the change proposed to the FY2016 Annual Budget that
is the basis for Substitute Ordinance 2833 -2015. The substitute includes changes in the PERS
on- behalf funding rate as detailed in the attached memo of May 19, 2015. This is the only
Administration proposed amendment since the introduction of Ordinance 2833 -2015.
_ "'Village with Past, Gi with a Future"
FINANCE DEPARTMENT
thea'ff 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
KENAI`ALASKA Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014
�W
9 To: Rick Koch, City Manager
/Z From: Terry Eubank, Finance Director
Date: May 19, 2015
Re: FY2016 Proposed Budget and State of Alaska PERS on- behalf funding.
The purpose of this memo is to communicate a needed change to the FY2016 Proposed Budget.
The change is necessitated by a significant change in the PERS on- behalf funding amount for
FY2016 that was discovered in final review of the Proposed Budget.
The 2014 Alaska Legislature passed HB385 and its companion SB119 which provided a $3
Billion infusion into the State's Public Employee Retirement (PERS) and Teachers Retirements
(TRS) Systems and dictated to the Alaska Retirement Management (ARM) Board the method by
which future contributions rates would be calculated. $1 Billion of the $3 Billion infusion was
made into the PERS system and $2 Billion was made into the TRS system.
The PERS, which City of Kenai employees are members, had a June 30, 2013 unfunded liability
of $7.2 Billion. A $1 Billion cash infusion appeared to be an excellent idea, however when
combined with the imposed methodology for calculating future contribution rates, what actually
occurred was a significant cost shift from the State to political subdivision in future years.
HB385 and SB119 extended the amortization period of the unfunded liability by nine years.
This is comparable to refinancing your home which has 16 years remaining on its mortgage to a
new mortgage with a 25 year repayment period. The result is lower payments but for a longer
period of time. Extending the amortization period is estimated to increase future contribution by
$4.8 Billion of which the State will be responsible for $3.2 Billion ($720 Million in increased on-
behalf funding and $2.43 Billion in employer costs, and political subdivision will pay an
additional $1.6 Billion. Additional contributions will be necessary because of the loss of
earnings on the funds which would have been contributed earlier had no change in contribution
methodology taken place.
The initial PERS contribution rate established by the ARM Board was 44.03% of which political
subdivision would be required to pay 22.00% and the State would fund 22.03 %. The new
contribution rate, after the $1 Billion infusion and changes in methodology, is 27.19% of which
political subdivision are required to pay 22.00% and the State will fund 5.19 %. This change
results in a $1,375,257 reduction in the City's estimated State on- behalf payment for FY16.
While on- behalf payments are recognized in the same amount as revenue and expense, applying
the elimination of estimated budget lapse on these same amounts will result in a decrease in
revenues over expenditures for each fund with on- behalf revenue. The following table shows the
reduction in estimated State on- behalf funding and the change in estimated revenues over
expenditures after application of estimated budget lapse.
Fund
General Fund
Personal Use Fishery
Airport
Congregate Housing
Water & Sewer
Senior Citizen
Total
Decrease in
On- behalf
Fundine
($1,136,489)
(8,427)
(87,038)
(6,006)
(96,303)
(40,994)
( 1375.257)
Change in
Estimated
Lapse
($56,825)
(421)
(4,974)
(5,778)
(1,230)
69 228
Budget Draft
Estimated
Surplus (Deficit)
$190,053
106,221
471,539
(135,795)
433,477
(45,280)
1 020 215
New Estimated
Surplus
(Deficit)
$133,228
105,800
466,565
(135,795)
427,699
(46,510)
These changes will be incorporated into a substitute ordinance and will be available for the June
3, 2015 Council meeting where the budget is scheduled for adoption.
Suggested by:
CITY OF KENAI
ORDINANCE NO. 2833 -2015
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALA KA ADOPTING THE
ANNUAL BUDGET FOR THE FISCAL YEAR COMMENCING JULY 1, 2015 AND
ENDING JUNE 30, 2016.
WHEREAS, it is a requirement of the Code of the City of K ai, Alaska, that the City
Council, not later than the tenth day of June, adopt a bu get for the following fiscal
year and make appropriation of the monies needed.
NOW, THEREFORE, BE IT ORDAINED BY THE COUI)YCIL OF THE CITY OF KENAI,
ALASKA as follows: /
Section 1:
That certain document entitled "City of Kenai Fi cal Year 2016 Annual Budget" which
is available for examination by the public in e Office of the City Clerk, the City's
website and is incorporated herein by refere ce is hereby adopted as the budget for
the City of Kenai for the fiscal year com a cing July 1, 2015 and ending June 30,
2016.
Section 2:
The following sums of money are
Kenai for the fiscal year commex
30th day of June, 2016, to 1
restrictions, procedures, and p
be expended substantially by e
Section 1 hereof:
General Fund
Enterprise Funds -
hby appropriated for the operations of the City of
c g on the first day of July, 2015, and ending the
expended consistent with and subject to the
,oses set forth in the Code of the City of Kenai and to
item in the manner shown in the budget adopted by
$16,651,316
Congregate HousiiVg 525,912
Special Revenue Ffxnds
Personal Use ishery Fund 514,140
Water and wer Fund 2,514,762
Airport d 3,046,355
Senior tizen Fund 965,360
Airpo Land Sales Permanent Fund 1,171,705
Gen al Land Sales Permanent Fund 155,946
De Service Fund 178,798
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Ordinance No. 2833 -2015
Page 2 of 2
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 3rd day of June,
2015.
PAT PORTER, MAYOR
ATTEST:
Sandra Modigh, City Clerk
Approved by Finance:
Introduced: May 20, 2015
Adopted: June 3, 2015
Effective: July 1, 2015
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kolrA
"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
From:
Terry Eubank, Finance Director
Date:
May 14, 2015
Re:
Ordinance 2833 -2015 to adopt the FY16 Budget
The purpose of this memo is to summarize the changes that have been proposed to the FY16
Budget since disbursement of the draft document on May 50', and to communicate the result of
these changes on each of the City's operating funds. The following are the Administration
recommended and Council recommended changes that have been incorporated into the draft
budget. New summary pages for the General Fund, after incorporating the changes, are attached
for your review.
Revenues:
There are no proposed changes to the revenue assumptions or changes proposed in the May 5s'
draft budget.
Expenditure Changes:
General Fund
Administration Recommended Amendments:
1. Decrease Non - Departmental — Transfers to Municipal Parks Capital
project fund for Beaver Creek Park Playground Design. ($20,000)
2. Increase Non - Departmental — Transfers for a new project to install
concrete slabs and foundations and purchase materials to
construct new picnic shelters. 40,000
Total Administration Recommended Amendments $20,000
Council Recommended Amendments:
1. Decrease Legislative — Small Tools & Minor Equipment to eliminate
purchase of Microphone /sound system update and make purchase
with FYI Dias improvements funds $(8,000)
2. Increase Clerk — Computer Software for the preparation of Council
packets to be compatible with IPad devices to be purchased for
Council members using FYI Dias improvements funds. 1,500
3. Increase Parks, Recreation & Beautification — Travel & Transportation
to provide Director funding for attendance of national conference
on parks & recreation management. 3,000
4. Increase Legislative — Grants to Other Agencies and provide breakdown
for distribution of grant funds
$4,000
a.
Kenai Watershed Forum Water Testing
$5,000
b.
Oilers Baseball Park Utilities
1,600
c.
Kenai Chamber of Commerce 4`s of July Activities
2,500
d.
Kenai Chamber of Commerce Fireworks
3,500
e.
Industry Appreciation Day Sponsorship
500
f.
Economic Outlook Forum
500
g.
Kenai Historic Society
4,000
h.
Kenai Boys & Girls Club Grant
10,000
i.
Miscellaneous Grants
2,500
Total Grants to Other Agencies
$30.100
Total Council Recommended Amendments $ 500
Total General Fund Amendments 20 500
Personal Use Fishery Fund
No Changes
Water & Sewer Fund
No Changes
Airport Fund
No Changes
Senior Citizen Fund
No Changes
Congregate Housing Fund
No Changes
General Land Sale Permanent Fund
No Changes
Airport Land Sale Permanent Fund
No Changes
Debt Service Fund
No Changes
attachments
TOTAL ASSESSED VALUE
City of Kenai
Fiscal Year 2016 Operating Budget
General Fund
Budget Projection
Original Adopted
Actual Actual Budget Projection Budget
FY2013 FY2014 FY2015 FY2015 FY2016
$ 738,973,565 $ 804,454,601 $ 831,945,941 $ 828,384,580 $ 853,032,979
MILL RATE
3.85
3.85
4.35
4.35
4.35
REVENUES
454.334
454,33
399.898
16,536,004
14,429,275
Property & Sales Taxes
16,470,440
16,651,316
(2,051,878)
8,376
(696,505)
Property Tax
2,913,634
3,162,530
3,664,586
3,664,586
3,754,479
Sales Tax
6,587,575
6,669,426
6,831,362
7,103,551
7,245,622
Total Property & Sales Taxes
9,501,209
9,831,956
10,495,948
10,768,137
11,000,101
State /Federal Revenue:
9,519,881
10,087,096
10,277,149
(408,534)
(480,238)
PERS Funding
911,060
914,272
1,457,847
1,457,847
1,486,750
Municipal Assistance
627,466
435,888
433,538
441,046
415,866
Fish Tax
296,136
202,044
200,000
289,411
200,000
Other
299,372
242.714
58.000
72.784
58.000
Total State /Federal Revenue
2.134.034
1.794,918
2.149.385
2.261.088
2.160.616
Other Revenue
Licenses and Permits
204,645
112,952
76,500
76,000
76,500
Ambulance Fees
319,315
335,726
400,000
375,000
400,000
Interest
(39,829)
82,629
75,000
75,000
75,000
Other
933.584
637,498
650.435
603.587
663.435
Total Other Revenue
1.417.715
1.168.805
1,201.935
1.129.587
1.214.935
Total Revenues
13.052.958
12.795.679
13.847.268
14.158.812
14,375.652
Transfer From Other Funds
Charges to other funds
1,252,700
1,495,800
1,501,100
1,501,100
1,458,900
Capital Projects/ Special Revenue
-
-
-
-
-
Enterprise
42,800
-
47,700
47,700
38,300
Trust Fund
135.668
146.172
140.134
147.093
155.946
Total Transfers
1.431.168
1.641.972
1.688.934
1.695.893
1.653.146
Total Revenues and Transfers
14.484.126
14.437,651
15.536.202
15.854,705
16.028.798
EXPENDITURES /APPROPRIATIONS
General Government
3,337,488
3,212,087
4,113,450
4,200,244
4,219,076
Public Safety
6,536,153
6,737,967
7,204,365
7,237,352
7,421,731
Public Works
2,196,503
2,307,312
2,512,693
2,596,151
2,514,811
Parks, Recreation & Cultural
2.083.889
1,877.813
1.947.865
1.982.359
2.095.800
Total Operating Expenditures
Transfers or Non - Operating
Total Expenditures /Appropriations
Total Surplus (Deficit)
Projected Lapse - 5%
Adjusted Surplus (Deficit)
Beginning Fund Balance
Ending Fund Balance
Restricted
Committed
Assigned
Unreserved /U ndesignated
Fund Balance
14,154, 033
14,135,179
15, 778, 373
16, 016,106
16, 251, 418
2,381.971
294.096
454.334
454,33
399.898
16,536,004
14,429,275
16,232,707
16,470,440
16,651,316
(2,051,878)
8,376
(696,505)
(615,735)
(622,518)
-
-
788.919
800.805
812,571
(2,051,878)
8,376
92,414
185,070
190,053
11.945.528
9.893.650
9.427.467
9.902,026
10.087.096
9,893,650
9,902,026
9,519,881
10,087,096
10,277,149
(408,534)
(480,238)
(493,534)
(550,238)
(615,238)
(521,790)
(409,746)
(409,746)
(409,746)
(409,746)
(1,580,579)
(11518,184)
(1,751,467)
(1,523,697)
(1,554,775)
$ 7,382,747
$ 7,493,858
$ 6,865,134
$ 7,603,415
$ 7,697,390