HomeMy WebLinkAboutResolution No. 2016-26M
Suggested by: Administration
CITY OF KENAI
RESOLUTION NO. 2016 -26
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING A
BUDGET TRANSFER WITHIN THE GENERAL FUND - CITY CLERK, CITY MANAGER,
LEGAL AND PLANNING DEPARTMENTS FOR COSTS IN EXCESS OF BUDGETED
AMOUNTS.
WHEREAS, due to changes in employee election for health coverage, the FY16 budget
for the Planning and City Clerk Departments is insufficient and requires amendment;
and,
WHEREAS, budgeted amounts for health care are based on projected participation by
employees and must sometimes be adjusted after actual employee elections are made;
and,
WHEREAS, funds have been identified within the City Manager's, Planning & Zoning
and Non - Departmental Department budgets for redirection to cover these additional
amounts; and,
WHEREAS, after judgement was issued in the City of Kenai v. Cook Inlet Natural Gas
Storage Alaska, LLC, et al. by the Alaska Supreme Court, the City has been ordered to
reimburse Cook Inlet Region, Inc. $17,500 in attorney fees plus interest until paid; and,
WHEREAS, the Legal Department has identified sufficient fund in its Professional
Services account which are available to transfer for payment to Cook Inlet Region, Inc.;
and,
WHEREAS, employee leave cash -outs in excess of budgeted amounts has occurred in
the City Manager's Department and additional budget is needed for the remainder of
FY16; and,
WHEREAS, funds have been identified within the City Manager's and Non - Departmental
Department budgets for redirection to cover these additional amounts; and,
WHEREAS, a budget transfer of $60,420 is beyond the authority of the City Manager
and pursuant to KMC 7.25.020 the City Council, by resolution, may make transfers in
any amounts of unencumbered balances of line item accounts within a Department or
within a fund.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, the following budget transfer be made:
General Fund
From:
City Manager - Professional Services $13,000
Planning & Zoning - Small Tools 4,000
Resolution 2016 -26
Page 2 of 2
Planning & Zoning - Printing & Binding 200
Planning & Zoning - Repair & Maintenance 600
Planning & Zoning - Dues & Publications 975
Planning & Zoning - Miscellaneous 1,500
Non - Departmental - Contingency 21,395
Legal - Professional services 18,750
City Manager - Leave
$ 8,870
Planning & Zoning - Health
17,000
City Clerk - Health
15,800
Legal - Miscellaneous
18,750
$60.420
PASSED BY THE COUNCIL OF THE CITY OF KENAI ALASKA this 1st da of June
2016.
i
"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
7/ From: Terry Eubank, Finance Director
Date: May 26, 2016
Re: Resolution 2016 -26
The purpose of this memo is to provide support for and to recommend passage of Resolution 2016-
26. Resolution 2016 -26 authorizes budget transfers within the General Fund for accounts who's
actual expenditures are more than budgeted or budget needs to be moved to another account for
classification purposes:
City Manager Department - Leave $8,870
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 City Manager Department is requesting
supplemental funds in the amount of $8,870 for its deficit created by cash -outs in excess of
budgeted amount by an employee.
Planning & Zoning and Clerk's Department — Health Care $17,000 & $15,800 respectively
The budget basis for employee health care expenditures utilizes an estimate, adjusted to actual
once a renewal quote has been received, of monthly premiums and an employee census showing
the coverage selected by the actual employees in each position.
Annually, more often with the occurrence of a qualifying event, employees have the option to elect
coverage for themselves and/or dependents. Change in an employee election results in a change
in the employee census and a variance from budgeted amounts for employee health care. The
Planning & Zoning and Clerk Departments Department are requesting supplemental funds in the
amount of $17,000 and $15,800 respectively for its deficit created by changes in the employee
census used when budgeting FY 16 health care costs for the department.
Legal Department — Miscellaneous $18,750
On May 6, 2016 the Alaska Supreme Court issued judgement in the City of Kenai v. Cook Inlet
Natural Gas Storage Alaska, LLC, et al. As a result of this judgement the City has been ordered
to reimburse Cook Inlet Region, Inc. $17,500 in attorney fees plus interest until paid. Sufficient
funding is available within the Legal Department's budget to pay these fees however, the
department is requesting a budget adjustment to move the budget from Legal — Professional
Services to Legal - Miscellaneous for better classification prior to payment.
Your support for passage of this Resolution is respectively requested.