HomeMy WebLinkAboutOrdinance No. 2889-2016Suggested by: Administration
CITY OF KENAI
ORDINANCE NO. 2889 -2016
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY $88,339 IN THE GENERAL FUND
TO PROVIDE SUPPLEMENTAL FUND FOR FISCAL YEAR 2016 DUE TO AN
UNFORESEEN LOSS OF REVENUE FROM THE CHOICE WAIVER MEAL PROGRAM.
WHEREAS, the Senior Center has experienced a 42% decrease in the number of Choice
Waiver, home meal clients since 2014; and,
WHEREAS, Choice Waiver meal reimbursements are the Center's single largest income
source; and,
WHEREAS, the Center receives approximately $21.00 per eligible Choice Waiver meal
served; and,
WHEREAS, the loss of a single client can have a significant impact on the Center's
Budget; and,
WHEREAS, the Senior Citizen Fund began FY16 with an available fund balance of
$157,066, of which approximately $61,900 was donated by the Kenai Senior Connection
to the City; and,
WHEREAS, approximately $55,000 of the beginning fund balance, funds previously
provided by the Kenai Senior Connection was spent on a new van, the Kenai Senior
Connection dedicated purpose, for transportation of seniors; and,
WHEREAS, the remaining $102,066 will be insufficient to cover the projected shortfall
created by the loss of $125,000 of Choice Waiver revenue and the originally budgeted
fund balance use of $46,510; and,
WHEREAS, the annual operating subsidy from the General Fund that stopped in FY14
must now be reinstated to continue services at the Center's current level.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, as follows:
Section 1. Form: That this is a non -code ordinance.
Ordinance No. 2889 -2016
Page 2 of 2
Section 2. That estimated revenues and appropriations be increased as follows:
General Fund
Increase Estimated Revenues:
Appropriation of Fund Balance $88.339
Increase Appropriations:
Transfer to Senior Citizen Fund $$$ 9
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 18th day of May,
2016.
PAT PORTER, MAYOR
Introduced: May 4, 2016
Adopted. May 18, 2016
Effective. May 18, 2016
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TO: Rick Koch, City Manager
FROM: Rachael S. Craig, Senior Center Director
DATE: April 27, 2016
SUBJECT: Ordinance 2889 -2016
This memo is in reference Ordinance 2889 -2016.
At the beginning of fiscal year 2016 the Senior Citizen Fund balance was $157,066, of which $61,900 was
donated by Kenai Senior Connection, Inc. to Kenai Senior Center.
Kenai Senior Connection, Inc. in the past donated funds from March for Meals fundraisers to dedicate funds for
use as a meal on wheels transportation van. The cost of the van was approximately $55,000. This amount was
part of the beginning fund balance fiscal year 2016.
Since 2014, Kenai Senior Center has experienced a 42% decrease in the number of Choice Waiver home meal
clients and revenue. Choice Waiver revenue is based upon a fee for service only. When we lose Choice Waiver
clients, we lose revenue. Dollars spent are to be used for Choice Waiver program only. Currently, we are
reimbursed $21.15 for a congregate meal and $21.47 for a home meal.
Decrease in Choice Waiver revenue is based upon the State restructuring the Medicaid regulations to meet
federal guidelines; denial and slow approval of current Choice Waiver client's care plans; and changes to the
state's insurance contract for reimbursement claims of Choice Waiver clients 60 years and older. When a Choice
Wavier care plan is denied (a client that was once reimbursed at a rate for service of $21.47); the client then
becomes a NTS (nutrition, transportation, and services) grant recipient who, then, may give a suggested meal
donation of $6.00. This has created a loss of $125,000 of Choice Waiver revenue.
This loss has resulted in a need to reinstate the annual operating subsidy from the General Fund of 2014 to meet
the continued services at the Center's current level.