HomeMy WebLinkAboutOrdinance No. 2890-2016Suggested by: Administration
CITY OF KENAI
ORDINANCE NO. 2890 -2016
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA ADOPTING
THE ANNUAL BUDGET FOR THE FISCAL YEAR COMMENCING JULY 1, 2016
AND ENDING JUNE 30, 2017.
WHEREAS, employee healthcare is a substantial portion of the City's annual
budget averaging more than 8% of the City's General Fund Budget; and,
WHEREAS, annual increases and decreases have ranged from (12.92 %) to
31.14% over the last ten years having substantial impacts on the budgeting
process from year to year; and,
WHEREAS, establishment of a reserve to grow when annual increases are low
and be used when high will minimize the budgetary impacts and provide stability
in budgeting for healthcare costs; and,
WHEREAS, stability in budgeting assures constant levels of service to residents;
and
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:
Form. That this is a non -code ordinance.
Section 2:
That certain document entitled "City of Kenai Fiscal Year 2017 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, 2016 and
ending June 30, 2017.
New Text Underlined; DELETED TEXT BRACKETED]
Ordinance No. 2890 -2016
Page 2 of 3
Section 3:
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, 2016, and
ending the 30th day of June, 2017, 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 $15,419,980
Enterprise Funds -
Congregate Housing 460,619
Special Revenue Funds:
Personal Use Fishery Fund 580,209
Water and Sewer Fund 2,453,180
Airport Fund 2,862,955
Senior Citizen Fund 901,726
Airport Land Sales Permanent Fund 1,184,356
General Land Sales Permanent Fund 148,009
Debt Service Fund 175,398
Section 4:
The Council of the City of Kenai commits $100,000 of General Fund, Fund
Balance to a health insurance reserve to be used in future years for maintaining
employee healthcare benefits. Committed fund balance is a limitation imposed
at the highest level of decision making and requires action at the same level to
remove.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 18t day of
June, 2016.
_"a, "-
PAT PORTER, MAYOR
Ordinance No. 2890 -2016
Page 3 of 3
Introduced:
Adopted:
Effective:
New Text Underlined; [DELETED TEXT BRACKETED]
May 18, 2016
June 1, 2016
July 1, 2016
M
"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 5, 2016
Re: Ordinance 2890 -2016 to adopt the FY17 Budget
The purpose of this memo is to summarize the changes that have been proposed to the FYI Budget
since disbursement of the draft document on April 30th, 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 all funds, after incorporating the changes, are attached for your review.
Revenues:
A new $10.00 per day drop -off fee was inadvertently omitted from the April 30th Draft Budget.
During the 2015 fishery, the City issued 4,657 drop -off passes. 2,895 of these transaction were
unique to a single vehicle on a single day. 1,762 of the passes were issued to the same vehicle on
the same day. A $10.00 per day fee for drop -offs will generate approximately $28,950 of revenue.
The following is a breakdown showing the mailing zip code provided by the drivers of the vehicle
receiving unique daily drop -off passes in 2015:
99611
735
25.4%
99669
434
15.0%
99635
46
1.6%
99610
5
0.1%
99672
28
1.0%
Other
1,647
56.9%
Total
Z -5
100.0%
Expenditure Changes:
General Fund
Administration Recommended Amendments:
1. Decrease health care in each of the following departments
a.
City Clerk
($ 8,636)
b.
Legal
(8,636)
c.
City Manager
(8,204)
d.
Finance
(15,113)
e.
Planning & Zoning
(3,238)
f.
Police
(82,042)
g.
Fire
(73,406)
h.
Communications
(34,544)
i.
Animal Control
(12,954)
j.
Public Works Administration
(7,557)
k.
Shop
(12,954)
1.
Streets
(23,201)
m.
Buildings
(10,018)
n.
Library
(30,226)
o.
Park, Recreation & Beautification
(14,594)
p.
Dock
1972
Total health care amendment
($347 2 5
2. Increase Legislative — Grants to Other Agencies
a. CARTS — Transportation Feasibility Study $ 1,000
b. Kenai historic fire truck restoration 10,000
Total Grants to Other Agencies $ 11.000
3. Increase Non - Departmental — Transfers
a. Decrease transfer to Senior Citizen Fund for health care savings ($ 14,661)
b. Inlet Woods catch basin maintenance 78,000
c. Kenai Recreation Center mechanical improvements 20,000
Total Transfers $ 83.339
4. Increase Planning & Zoning Professional Services for additional
GIS support 2,200
5. Increase Fire Department
a. Software — Annual licensing for scheduling software $ 2,200
b. Communications —Cellular Data for mobile data project 4,200
c. Machinery & Equipment — Respirator fit tester 8,200
Total Fire Department $ 14.600
6. Increase Library — Machinery & Equipment for Children's Area shelving $ 15,000
7. Increase Parks, Recreation & Beautification — Machinery & Equipment
for replacement of 72" mower $ 30,000
Total Administration Recommended Changes — General Fund ($191_156)
Council Recommended Amendments:
1. Increase Legislative — Grants to Other Agencies
a. Kenai Chamber of Commerce video production $ 5,000
b. Increase Kenai Historic Society docent 500
c. Miscellaneous grants to be identified 2,500
Total Transfers $ 8
2. Increase Non - Departmental — Transfers
a. Kenai Event Park schematic design $ 35,000
Total Council Recommended Amendments — General Fund 43,000
attachments
Total General Fund Amendments ($148 156)
Personal Use Fishery Fund
Administration Recommended Amendments:
1. Decrease health care in each of the following departments
a. PU Fishery - Streets ($ 689)
b. PU Fishery Parks, Recreation & Beautification (2,678)
c. PU Fishery Dock L906)
Total health care amendment ($4 273
Council Recommended Amendments:
No Changes
Total PU Fishery Fund Amendments ($4 276
Water & Sewer Fund
Administration Recommended Amendments:
1. Decrease health care in each of the following departments
a. Water ($ 7,556)
b. Sewer (7,556)
c. Wastewater Treatment Plant 1( 2,954)
Total health care amendment ($28.066)
Council Recommended Amendments:
No Changes
Total Water & Sewer Fund Amendments ($2&066)
Airport Fund
Administration Recommended Amendments:
1. Decrease health care in each of the following departments
a. Terminal ($ 7,211)
b. Airfield (12,090)
c. Administration (7,211)
d. Other Buildings & Areas (127J9
Total health care amendment ($2242)
Council Recommended Amendments:
No Changes
Total Airport Fund Amendments ($?�_ 42.)
Senior Citizen Fund
Administration Recommended Amendments:
1. Decrease health care in each of the following departments
a. Senior Access ($ 4,966)
attachments
b. Congregate Meals
(3,411)
c. Home Meals
(2,505)
d. Transportation
(648)
e. Choice Waiver
(L584
Total health care amendment
($15 114
Council Recommended Amendments:
No Changes
Total Senior Citizen Fund Amendments ($1 114
Congregate Housing Fund
Administration Recommended Amendments:
1. Decrease health care ($2,158)
Council Recommended Amendments:
No Changes
Total Congregate Housing Fund Amendments ($2.L5=8)
General Land Sale Permanent Fund
No Changes
Airport Land Sale Permanent Fund
No Changes
Debt Service Fund
No Changes
attachments
City of Kenai
Fiscal Year 2017 Operating Budget
Revenue and Expenditure Summary of All Funds
General
Special
Enterprise
Permanent
Debt Service
Total
Fund
Revenue
Funds
Funds
Fund
All Funds
REVENUES
Taxes
$ 11,139,858
$ -
$ -
$
$ -
$ 11,139,858
State /Federal
817,334
538,141
1,627
34,884
1,391,986
Interest
75,000
37,750
3,000
1,615,068
-
1,730,818
Other
1,121,305
5,618,902
382,414
-
-
7,122,621
Transfers In
1,676,209
1,335,741
-
-
140,514
3,152,464
Total Revenues
14,829,706
7,530,534
387,041
1,615,068
175,398
24,537,747
EXPENDITURES /EXPENSES
15,434,980
6,798,070
460,619
1,332,365
175,398
24,201,432
Contributions to (from) Fund
Balance /Retained Earnings
(605,274)
732,464
(73,578)
282,703
-
336,315
Add Credit From Depreciation
-
-
136,137
-
-
136,137
Projected lapse /encumbrances
742,584
290,789
-
-
-
1,033,373
Adjusted Deficit/Surplus
137,310
1,023,253
62,559
282,703
-
1,505,825
Beginning Fund Balance/
Net Assets
9,804,486
6,296,871
417,601
25,349,967
-
41,868,925
Ending Fund Balance/
Net Assets
$ 9,941,796
$ 7,320,124
$ 480,160
$ 25,632,670
$ -
$ 43,374,750
TOTAL ASSESSED VALUE
MILL RATE
REVENUES
Properly & Sales Taxes
Property Tax
Sales Tax
Total Property & Sales Taxes
State /Federal Revenue:
PERS Funding
Municipal Assistance
Fish Tax
Other
Total State /Federal Revenue
Other Revenue
Licenses and Permits
Ambulance Fees
Interest
Other
Total Other Revenue
Total Revenues
Transfer From Other Funds
Charges to other funds
Capital Projects / Special Revenue
Enterprise
Trust Fund
Total Transfers
Total Revenues and Transfers
EXPENDITURES /APPROPRIATIONS
General Government
Public Safety
Public Works
Parks, Recreation & Cultural
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 /Undesignated
Fund Balance
City of Kenai
Fiscal Year 2017 Operating Budget
General Fund
Budget Projection
Original
Actual Actual Budget Projection Proposed Projection
FY2014 FY2015 FY2016 FY2016 FY2017 FY2018
$ 804,454,601 $ 828,384,580 $ 853,032,979 $ 851,638,381 $ 866,234,902 $ 888,041,434
3.85
4.35
4.35
4.35
4.35
4.35
3,162,530
3,656,927
3,754,479
3,760,213
3,810,759
3,897,980
6,669,426
7,257,451
7,245,622
7,185,391
7,329,099
7,548,972
9,831,956
10,914,378
11,000,101
10,945,604
11,139,858
11,446,952
914,272
2,977,564
350,646
350,646
281,404
270,000
435,888
441,046
415,866
415,798
277,930
129,651
202,044
292,718
200,000
200,000
200,000
206,000
191,354
81.058
58.000
156.89
58.000 -
50.000
1.743.558
3.792.386
1.024.512
1.123.313
817.334
655.651
90,251
71,973
76,500
76,000
76,500
78,795
355,726
412,509
400,000
375,000
400,000
412,000
82,629
56,992
75,000
75,000
75,000
99,418
691.559
636.453
638.435
598.300
644.805
551424
1.220.165
1.177.927
1.189.935
1.124.300
1.196.305
1.143.637
12.795.679
15.884.691
13.214.548
13.193.217
13.153.497
13.246.240
1,448,500
1,501,100
1,458,900
1,458,900
1,494,200
1,539,026
11
47,300
41,686
38,300
38,300
34,000
35,020
146.172
147.093
155.946
148.009
148.009
1.641.972
1.689.890
1.653.146
1.497.200
1.676.209
1.722.055
14.437.651
17.574.581
14.867.694
14.690.417
14.829.706
14.968.295
3,212,087
5,357,342
3,092,419
3,183,043
3,028,609
3,099,621
6,737,967
5,876,330
7,421,731
7,532,607
7,284,438
7,502,971
2,307,312
2,269,516
2,514,811
2,529,032
2,381,685
2,453,136
1.877.813
1.911.792
2.095.800
2.131.387
2.156.949
2.221.657
14,135,179
16,414,980
15,124,761
15,376,069
14,851,681
15,277,385
294.096
670.394
419.898
669.898
583.299
600.798
14,429,275
17,085,374
15,544,659
16,045,967
15,434,980
15,878,183
8,376
489,207
(676,965)
(1,355,550)
(605,274)
(909,888)
756.238
768,803
742.584
763.869
8,376
489,207
79,273
(586,747)
137,310
(146,019)
9.893.65
9.902.026
9,427,467
10.391.233
9.804.486
9.941.796
9,902,026
10,391,233
9,506,740
9,804,486
9,941,796
9,795,777
(480,238)
(546,706)
(493,534)
(550,238)
(615,238)
(409,746)
(409,746)
(409,746)
(409,746)
(409,746)
(1,518,184)
(1,497,756)
(1,751,467)
(1,700,725)
(1,856,382)
$ 7,493,858 $ 7,937,025 $ 6,851,993 $ 7,143,777 $ 7,060,430 $ 9,795,777
Revenues
PERS Grant
Usage Fees
Beach Parking
Beach Camping
Dock Launch & Park
Dock Parking Only
Participant Drop -off Fee
Total Usage Fees
Miscellaneous Revenues
Investment earnings
Other
Total Miscellaneous Revenues
Total Revenue
Expenditures
Public Safety
Streets
Boating Facility
Parks, Recreation 8 Beautification
Total Expenditures
Contribution To /(From) Fund Balance:
Projected Lapse
Adjusted (Deficit) /Surplus
Beginning Fund Balance
City of Kenai
Fiscal Year 2017 Operating Budget
Budget Projection
Fund: 006 - Personal Use Fishery Fund
665 680
2,400 3,235
1,735 2,555
750 750
(3,500)
750 (2,750)
440,572
550,628
Original
556,593
582,886
Actual
Actual
Budget
Projection
Proposed
FY 2014
FY 2015
FY 2016
FY 2016
FY 2017
$ -
$ 17,437
$ 2,596
$ 1,143
$ 1,986
271,769
219,705
220,000
180,350
180,350
64,838
199,203
195,000
227,650
227,650
91,011
100,970
134,822
131,700
131,700
14,689
15,868
20,099
15,000
15,000
29,063
38,599
66,804
38,680
28,950
442,307
535,746
569,921
554,700
583,650
665 680
2,400 3,235
1,735 2,555
750 750
(3,500)
750 (2,750)
440,572
550,628
572,517
556,593
582,886
103,528
122,473
112,588
118,658
111,599
46,908
54,632
60,192
37,360
49,258
90,790
90,410
77,341
75,765
72,417
170,283
244,514
255,592
286,130
346,935
411,509
512,029
505,713
517,913
580,209
29,063
38,599
66,804
38,680
2,677
19,736
17,846
(23,150)
29,063
38,599
86,540
56,526
25,827
-
29,063
20,415
67,662
124,188
Ending Fund Balance $ 29,063 $ 67,662 $ 106,955 $ 124,188 $ 150,015
City of Kenai
Fiscal Year 2017 Operating Budget
Budget Projection
Fund: 010 - Water and Sewer Fund
Original
Actual Actual Budget Projection Proposed
FY 2014 FY 2015 FY 2016 FY 2016 FY 2017
Revenues
PERS Grant $ 77,799 $ 255,777 $ 29,681 $ 29,681 $ 24,255
Usage Fees
Service Hook -up
1,624
9,827
8,740
8,740
8,630
Residential Water
585,398
654,383
701,737
701,737
764,901
Commercial Water
219,470
256,492
307,721
307,721
335,420
Residential Sewer
1,070,901
1,109,172
1,131,210
1,131,210
1,154,566
Commercial Sewer
378,055
411,520
483,285
483,285
493,264
Total Usage Fees
2,255,448
2,441,394
2,632,693
2,632,693
2,756,781
Miscellaneous Revenues
Penalty and Interest
40,169
41,987
40,000
40,000
40,000
Special Assessment Principal
-
-
-
-
Sale of Assets
-
-
-
-
-
Interest Earnings
8,187
8,391
12,264
12,264
12,000
Other
767
2,207
3,000
3,000
3,000
Total Miscellaneous Revenues
49,123
52,585
55,264
55,264
55,000
Total Revenues
2,382,370
2,749,756
2,717,638
2,717,638
2,836,036
Expenditures
Water Department
993,072
1,157,685
872,302
874,928
880,772
Sewer Department
392,295
478,031
437,896
438,493
450,651
Wastewater Treatment Plant Department
987,307
1,074,016
1,108,261
1,108,261
1,121,757
Total Expenditures
2,372,674
2,709,732
2,418,459
2,421,682
2,453,180
Contribution To /(From) Fund Balance:
9,696
40,024
299,179
295,956
382,856
Projected Lapse (6 %)
129,370
129,563
129,479
Adjusted (Deficit) /Surplus
428,549
425,519
512,335
Beginning Fund Balance
1,139,294
1,148,990
1,226,415
1,189,014
1,614,533
Ending Fund Balance
$ 1,148,990
$ 1,189,014
$ 1,654,964
$ 1,614,533
$ 2,126,868
City of Kenai
Fiscal Year 2017 Operating Budget
Budget Projection
Fund: 008 - Airport Fund
Original
Actual Actual Budget Projection Proposed
FY 2014 FY 2015 FY 2016 FY 2016 FY 2017
Revenues
State & Federal Grants $ 64,532 $ 225,082 $ 39,826 $ 39,826 $ 30,961
Usage Fees
Fuel Sales
11,748
9,300
15,000
15,000
10,000
Fuel Flowage
30,350
37,546
30,000
30,000
35,000
Float Plane
1,571
1,331
1,800
1,800
1,500
Tie Down
10,430
7,602
10,000
10,000
10,000
Landing
356,685
369,824
351,277
351,277
375,000
Plane Parking
4,326
5,128
15,000
15,000
5,000
Total Usage Fees
415,110
430,731
423,077
423,077
436,500
Rents and Leases
Land 733,532 674,609 792,607 792,607 698,755
Fish Hauling - - -
Total Rents and Leases 733,532 674,609 792,607 792,607 698,755
Miscellaneous
Penalty and Interest
1,715
18,378
1,000
1,000
15,000
Interest on Investments
27,402
22,445
31,079
31,079
25,000
Other
14,215
40,042
15,000
15,925
25,000
Total Miscellaneous
43,332
80,865
47,079
48,004
65,000
Terminal Revenue
Parking Fees
201,256
272,698
336,000
336,000
300,000
Rents and Leases
258,753
300,807
293,575
293,575
310,127
Penalty and Interest
5,560
3,058
4,500
4,500
4,500
Car Rental Commissions
199,432
193,011
195,000
195,000
195,000
Advertising Commissions
5,552
4,852
5,500
5,500
6,000
Grants
-
-
-
-
Miscellaneous
1,334
3,468
1,500
1,500
1,500
Total Terminal Revenue
671,887
777,894
836,075
836,075
817,127
Transfers In
Capital Project Fund - - - -
Airport Land Trust Fund 1,094,473 1,135,313 1,171,705 1,147,714 1,184,356
Total Transfers In 1,094,473 1,135,313 1,171,705 1,147,714 1,184,356
Total Revenues 3,022,866 3,324,494 3,310,369 3,287,303 3,232,699
Expenditures
Airport Terminal
594,064
623,320
650,848
650,848
630,953
Airport Airfield
1,561,141
1,705,814
1,743,074
1,745,074
1,710,321
Airport Administration
299,077
348,841
310,290
310,290
315,259
Airport Other Buildings and Areas
507,978
388,777
218,279
336,286
169,654
Airport Training Facility
29,127
34,011
36,826
36,826
36,768
Total Expenditures
2,991,387
3,100,763
2,959,317
3,079,324
2,862,955
Contribution To /(From) Fund Balance:
31,479
223,731
351,052
207,979
369,744
City of Kenai
Fiscal Year 2017 Operating Budget
Budget Projection
Fund: 008 - Airport Fund
Original
Actual Actual Budget
FY 2014 FY 2015 FY 2016
Projection Proposed
FY 2016 FY 2017
Projected Lapse (6 %)
- - 115,513
115,632
115,347
Adjusted (Deficit) /Surplus
466,565
323,611
485,091
Beginning Fund Balance
3,979,329 4,010,808 4,143,905
4,234,539
4,558,150
Ending Fund Balance
$ 4,010,808 $ 4,234,539 $ 4,610,470
$ 4,558,150
$ 5,043,241
City of Kenai
Fiscal Year 2017 Operating Budget
Budget Projection
Fund: 019 - Senior Citizen Fund
Original
Actual Actual Budget Projection Proposed
FY 2014 FY 2015 FY 2016 FY 2016 FY 2017
Revenues
State Grants
$ 203,586
$ 295,773
$ 198,731
$ 195,479 $
192,939
USDA Grant
11,492
13,949
13,000
13,000
13,000
Choice Waiver
432,542
322,826
400,000
275,000
275,000
KPB Grant
126,207
126,207
126,207
126,207
126,207
United Way
15,576
8,762
11,682
9,582
9,582
Rents and Leases
13,192
5,660
13,000
13,000
13,000
Donations
9,567
33,323
30,000
44,500
31,000
Meal Donations
58,418
54,428
61,300
66,500
66,500
Transfer from General Fund
-
-
-
88,339
151,385
Other
305
316
300
300
300
Total Revenue
870,885
861,244
854,220
831,907
878,913
Expenditures
Senior Citizen Access
179,546
207,975
183,499
184,999
163,881
Congregate Meals
181,999
192,265
181,846
192,943
223,133
Home Meals
139,725
163,314
151,315
158,190
175,274
Senior Transportation
59,138
64,289
60,946
117,446
67,689
Choice Waiver
288,968
336,444
346,760
361,760
271,749
Total Expenditures
849,376
964,287
924,366
1,015,338
901,726
Contribution To /(From) Fund Balance:
21,509
(103,043)
(70,146)
(183,431)
(22,813)
Projected Lapse (3 %)
23,636
26,365
22,813
Adjusted (Deficit) /Surplus
21,509
(103,043)
(46,510)
(157,066)
Beginning Fund Balance
238,600
260,109
157,382
157,066
Ending Fund Balance
$ 260,109
$ 157,066
$ 110,872
$ - $
-
City of Kenai
Fiscal Year 2017 Operating Budget
Budget Projection
Fund: 009 - Congregate Housing Fund
Original
Actual
Actual
Budget
Projection
Proposed
FY2014
FY2015
FY2016
FY2016
FY2017
Revenues
PERS Grant
$ 4,940
$ 16,482
$ 1,852
$ 1,852
$ 1,627
Rents and Leases
346,424
365,430
377,259
379,452
382,414
Interest on Investments
5,062
2,533
5,000
5,000
3,000
Transfer from General Fund
112,044
-
-
Miscellaneous
11
20
Total Revenues
468,481
384,465
384,111
386,304
387,041
Expenses
436,635
454,429
519,906
519,906
460,619
Net Income (loss)
31,846
(69,964)
(135,795)
(133,602)
(73,578)
Beginning Retained Earnings
525,459
469,418
342,129
418,765
417,601
Capital Asset Acquistions
(220,326)
(116,826)
-
-
Allocated to Capital Projects
(117,164)
-
-
-
-
Credit for Depreciation
132,439
136,137
132,438
132,438
136,137
Available Retained Earnings
$ 352,254
$ 418,765
$ 338,772
$ 417,601
$ 480,160
Revenues
Bond Interest Subsidy
Transfer from General Fund
Total Revenue
Expenditures
Parks, Recreation & Culture
Contributions To /From Fund Balance
Beginning Fund Balance
Ending Fund Balance
City of Kenai
Fiscal Year 2017 Operating Budget
Fund 048 - Debt Service
Original
Actual Actual Budget
FY2014 FY2015 FY2016
Projection Proposed
FY2016 FY2017
34,546
34,808
31,900
31,900
34,884
144,052
141,390
146,898
146,898
140,514
178,598
176,198
178,798
178,798
175,398
178,598
176,198
178,798
178,798
175,398
City of Kenai
Fiscal Year 2017 Operating Budget
Budget Projection
Land Sales Permanent Funds
Original
Actual Actual Budget FY2016 Proposed
FY2014 FY2015 FY2016 Projection FY2017
FUND 082 -52 Airport Land Sales Permanent Fund
Revenues
Acct. 36610 Investments Earnings
$ 3,026,329 $
599,525 $ 1,504,070 $
(104,400) $ 1,432,251
Acct. 36645 Interest on Land Sale Contracts
17,991
15,664 10,000
10,000 10,000
Acct. 33640 Land Sales
100,791
8,084 -
(1,242,114)
Total Revenue
3,145,111
623,273 1,514,070
(94,400) 1,442,251
Expenses
Transfer to Airport Land System Fund
1,094,473
1,135,313
1,171,705
1,147,714
1,184,356
Contributions To /(From) Fund Balance
2,050,638
(512,040)
342,365
(1,242,114)
257,895
Beginning Fund Balance
22,172,431
24,223,069
24,656,878
23,711,029
22,468,915
Ending Fund Balance $
24,223,069
$ 23,711,029
$ 24,999,243
$ 22,468,915
$
22,726,810
FUND 081 -52 General Land Sales Permanent Fund
Revenues
Acct. 36610 Investments Earnings $
368,635
$ 114,014
$ 178,907
$ (7,392)
$
172,817
Acct. 36645 Interest on Land Sale Contracts
-
3,413
-
-
Acct. 33640 Land Sales
-
5,999
-
Total Revenue
368,635
123,426
178,907
(7,392)
172,817
Expenses
Transfer to General Fund
146,172
147,093
155,946
148,009
Contributions To /(From) Fund Balance
222,463
(23,667)
22,961
(7,392)
24,808
Beginning Fund Balance
2,689,648
2,912,111
2,885,592
2,888,444
2,881,052
Ending Fund Balance $
2,912,111
$ 2,888,444
$ 2,908,553
$ 2,881,052
$
2,905,860
"Villaye with a Past, C# with a Future"
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 tllll
1992
MEMO*
TO: City Council
{� FROM: Rick Koch
DATE: May 26, 2016
SUBJECT: Ordinance 2890 -2016, Adopting the Annual Budget for the Fiscal
Year 2017
The purpose of this correspondence is to discuss and respectfully request Council adoption of
the above referenced ordinance.
The Finance Director's memorandum to the City Manager, dated May 5, 2016, provides
detailed information regarding any changes to the budget subsequent to, and as a result of, the
Council work session, during which Administration presented the draft budget.
Subsequent to the work session I have had discussions with two Council members about
possible amendments to the budget:
1. Vice -Mayor Gabriel —Establishing a "Health Care Reserve" which would mitigate the
impact of large annual increases in health care premiums.
2. Councilor Molloy— Creation of a full -time HR Specialist and full -time Assistant to the
City Manger, or a full -time HR Specialist and part -time Assistant to the City Manager.
I will discuss each of the above topics individually as well as the Personal Use Fishery drop -off
fee ($10/Day) contained in the proposed budget.
HEALTH CARE RESERVE
Summary of Issue or Problem — Health care costs have become a major component of our
budgets. In FY2016, health care premiums across all funds totaled approximately $1.6 million.
Over the past ten years we have seen annual increases /decreases in annual premiums ranging
from +30% to -5 %. Taken against the 2016 budget the monetary impact could be from
+$480,000 to - $80,000.
Solution —To create a monetary reserve during years that health care premium costs are low or
decrease, to be used when premium increases are substantial, mitigating the severity of a large
premium increase; especially well into the annual budget process.
Please find attached the following:
1. An analysis from FY07 to FY17. In which a steady rate contribution of an estimated
5% per increase in health care premiums was made to a Health Care Reserve Fund,
and that actual premium increases were paid from the fund. The result would be
that the City would have estimated reserves in the amount of $95,617 in FY17.
Exhibit "A"
2. An analysis from FY99 to FY17. In which a steady rate contribution of an estimated
10% per increase in health care premiums was made to a Health Care Reserve Fund,
and that actual premium increases were paid from the fund. The result would be
that the City would have estimated reserves in the amount of $668,837 in FY17.
Exhibit "B"
If the Council were to establish a Health Care Reserve in FY17, Administration recommends a
10% contribution rate, until a Fund balance of at least $400,000 is achieved. At which time,
further financial analysis would be performed to determine if the contribution rate should be
adjusted.
CREATION OF FULL -TIME HR SPECIALIST POSITION & FULL OR PART -TIME ASSISTANT TO CITY
MANAGER
At the request of Councilor Molloy the monetary impacts of expanding the HR
Specialist /Assistant to the City Manager position to a dedicated full -time HR Specialist and
dedicated full -time or part time Assistant to the City Manager were calculated.
FUND
F/T HR SPECIALIST & F/T
ASSISTANT TO THE CITY
MANAGER*
F/T HR SPECIALIST & P/T
ASSISTANT TO THE CITY
MANAGER **
General Fund
$82,473
$57,838
Airport Fund
2,428
688
TOTAL
$84,901
$58,526
*Detail included in Exhibit "C"
* *Detail included in Exhibit "D"
PERSONAL USE FISHERY DROP -OFF FEE
Summary of Issue or Problem — No longer being able to financially support needed capital
and /or major maintenance projects exclusively from revenues generated from the PU Fishery.
There are several circumstances which result in this issue /problem:
1. Loss of $100,000 to $150,000 of State funding for PU Fishery capital improvements.
The City has been fortunate enough to receive $100,000 - $150,000 a year from the
State which has been used for fencing, trail work, pedestrian walkways, vaulted
toilets, etc., to support the Fishery. Given the current financial position of the State
it is not reasonable to assume we will receive any State funding for capital
improvements /major maintenance in the foreseeable future.
2. A greater number of fishery participants are utilizing the free drop -off provision of
our fee structure. Many of these participants camp at Wal -Mart or other locations to
avoid paying fees and then are dropped off and picked up at the Fishery. These
Fishery participants utilize City services such as toilets, solid waste collection,
management of fish waste, and public safety services, without cost.
Solution: Institute a $10 per day per vehicle drop off fee. This would allow for access an
unlimited number of times during a 24 hour period. The estimated annual revenue is $28,950.
There are a number of future capital projects, including property acquisition which have been
identified as needs to support and respond to the Fishery. Exhibit "E"
Also included (Exhibit "F") is a budget analysis For the PU Fishery which includes the capital
expenditures identified in Exhibit "E" and a $30 /vehicle /per day drop off fee.
Thank you for your attention in this matter.
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