HomeMy WebLinkAboutOrdinance No. 2847-2015Suggested by: Administration
CITY OF KENAI
ORDINANCE NO. 2847 -2015
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA,
RETROACTIVELY APPROPRIATING ADDITIONAL STATE OF ALASKA PUBLIC
EMPLOYEES RETIREMENT ON- BEHALF FUNDING FOR FY2015.
WHEREAS, During the 2014 legislative session, Senate Bill 119 (SB119) passed
providing $1,000,000,000 on- behalf fund for the Public Employees Retirement System
(PERS); and,
WHEREAS, $1,000,000,000 far exceeded the amount projected based upon the prior
funding amounts which required the state to pay the annual required contribution
amount in excess of 22% which participating employers are required to pay; and,
WHEREAS, the FY2015 Budget was based upon the previous funding methodology
and the additional funding should be appropriated to avoid significant budget
variances at year end.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that estimated revenues and appropriations be increased as follows:
Section 1: Form: That this is a non -code ordinance.
Section 2: That estimated revenues and appropriations be increased as follows:
General Fund
Increase Estimated Revenues:
State Grant - PERS On- Behalf $1262.437
Increase Appropriations:
Non - Departmental - PERS $1 76
Personal Use Fishery Fund
Increase Estimated Revenues:
State Grant - PERS On- Behalf $
Increase (Decrease) Appropriations:
Dock - PERS $5,200
Street - PERS 1,781
Parks, Recreation & Beautification - PERS (731)
$6 250
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Ordinance No. 2847 -2015
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Airport Fund
Increase Estimated Revenues:
State Grant - PERS On- Behalf $85.172
Increase Appropriations:
Terminal - PERS
$18,544
Airfield - PERS
33,337
Other Buildings & Areas
7,821
Administration - PERS
25,470
Congregate Housing Fund
$85.172
Water & Sewer Fund
Increase Estimated Revenues:
$7.066
State Grant - PERS On- Behalf
$105.291
Increase Appropriations:
Water - PERS
$32,129
Sewer - PERS
32,524
Wastewater Treatment Plant PERS
40,638
$105.291
Congregate Housing Fund
Increase Estimated Revenues:
State Grant - PERS On- Behalf
$7.066
Increase (Decrease) Appropriations:
Congregate Housing - PERS $
Senior Citizen Fund
Increase Estimated Revenues:
State Grant - PERS On- Behalf $45 33
Increase Appropriations
Access - PERS $14,381
Congregate Meals - PERS 5,949
Home Meals - PERS 5,392
Transportation - PERS 2,180
Choice Waiver - PERS 17,430
$45.332
Section 3: This Ordinance shall be applied retroactively to the FY2015 operating
budget.
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Ordinance No. 2847 -2015
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PASSED BY THE COUNCIL OF THE CITY
2015.
OF KENAI , ALASKA, this 5+h day of August,
PAT PORTER, MAYOR
Introduced: July 15, 2015
Adopted: August 5, 2015
Effective: June 30, 2015
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"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: July 9, 2015
Re: Ordinance 2847 -2015
The purpose of this memo is to recommend passage of Ordinance 2847 -2015. Ordinance 2847-
2015 will retroactively appropriate $2,011,548 in State of Alaska Public Employees Retirement
System (PERS) on- behalf payments received by the City in FY2015.
The City was notified on July 1, 2015 of the actual amount of on- behalf payments for FY2015.
The FY2015 budget for on- behalf was based upon the actuarial required contribution rate of
44.03% which is set annually by the Alaska Retirement Management Board. Of the 44.03 %,
employers are required to pay the first 22% and the State was to provide on- behalf funding for
the remaining 22.03 %. During the 2014 legislative session, Senate Bill 119 (SB119) passed
providing a $1,000,000,000 on- behalf payment into the PERS. The City of Kenai's allocated
share of that payment far exceeded the projected amount based upon 22.03% of covered payroll.
As a result the amount budgeted for both revenue and expenditure for PERS on- behalf funding is
significantly understated and a supplemental appropriation is needed to avoid material budget
variances at fiscal year end. Appropriation of these amounts will not have any effect on the year-
end financial performance of the affected funds as both revenues and expenditures are being
increased by the same amount.
Your support for this Ordinance is recommended.