HomeMy WebLinkAbout2016-12-13 Council Minutes - Work SessionKENAI CITY COUNCIL JOINT WORK SESSION
DECEMBER 13, 2016 — 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
MAYOR GABRIEL, PRESIDING
NOTES
Council present: R. Molloy, B. Gabriel, H. Knackstedt, G. Pettey, J. Glendening, T. Navarre
Others present: City Manager R. Koch, City Clerk S. Modigh, City Attorney S. Bloom and
Finance Director E. Eubanks
Mayor Gabriel began the work session at approximately 6:00 p.m.
City Manager Koch advised that the reason the work session was called was to review the
FY2017 budget and discuss issues that may arise in FY2018 budget. Koch advised that it's
projected to have a decrease in sales tax revenue in the amount of $375,000, a decrease in the
choice waiver revenue in the amount of $50,000 and a decrease of the 5% lapse of estimated
revenues of $11,563.40 with a total shortfall of $436,563.40.
Koch noted that he met with department directors to review departmental budgets and located
areas in which he believed items could possibly be removed from next year's budget in the
amount of $231,268.00 leaving an estimated revenue shortfall of $205,295.40. Koch advised
that the City has built its general fund which unrestricted funds are available for use and have
been used in the past.
It was noted that the FY2017 budget adopted a budget surplus of $151,560.00 designating
$100,00.00 for future health care, FY2016's carry forward encumbrances was $50,000,
ordinance dock repair in the amount of $35,000 and the reclassification of the HR/City Manager
Administration Assistant to the Human Resources Specialist in the amount of $61,433.00 for a
projected deficit of $95,181.83. Koch recommended that with the approval of Council,
Administration does not move forward with the reclassification adopted by Ordinance No. 2920-
2016. Koch further recommended that the City not spend the funds that have been noted in his
handout.
Koch advised of Administrations potential significant budget issues for FY2018 to be the
following:
Estimated FY2017 General Fund Deficit ($205,295.00)
PERS On- Behalf ($281,404.00)
Community Assistance (Municipal Revenue Sharing) ($277,930.00)
15% Health Care Increase ($210,911.70)
Total Deficit ($975,540.70)
Koch noted that he didn't expect for all of these items to pan out, but wanted Council to be
aware of the possibilities.
There was no one in attendance to provide public comment.
Koch advised that unless there was objection from Council he planned on moving forward with
his recommendations provided to Council and that the discussion take place again after the next
KENAI CITY COUNCIL WORK SESSION
DECMEBER 13, 2016
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financial quarter. Koch also noted that there was a savings in funds between him and the new
city manager's salary, which was not outlined in the material, provided for review.
Council and Administration discussed meeting with the local legislators prior to them leaving for
Juneau and decided on a resolution to be drafted for the meeting.
Paul Ostrander noted that he had been having these conversations with our delegation and will
continue to do so.
Council thanked Administration for the update.
The work session adjourned at 7:12 p.m.