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Home My WebLink About2017-04-29 Council Minutes - Budget Work SessionCouncil present: Others present: A. Call to Order KENAI CITY COUNCIL WORK SESSION FY18 BUDGET APRIL 29, 2017-9:00 A.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MAYOR GABRIEL, PRESIDING http://www.kenai .c itv NOTES R. Molloy, B . Gabriel, H. Knackstedt, G. Pettey, J . Glendening, City Manager P . Ostrander, Finance Director T. Eubank, City Clerk S. Modigh, City Attorney S. Bloom, Public Works Director S. Wedemeyer, Parks & Recreation Director B . Frates, Senior Center Director R. Craig . Airport Director M. Baundarant, Police Chief D. Ross Mayor Gabriel called the work session to order B. Public Comment June Harris spoke on behalf of the Historical Society and thanked Council for the financial support for the historical cabins and requested Council consider continuing the financial support in the amount of $4,000. Council thanked Mr. & Mrs. Harris for their efforts in keeping the cabins open and displaying Kenai artifacts. C . Introduction -Paul Ostrander, City Manager City Manager Ostrander advised that this year the budget was being presented slightly differently whereby the Finance Director Eubank recorded his budget presentation in advance to be uploaded to the website for residents to access. It was also noted that this is the first budget that the General Fund Policy would be implemented. D . Budget Overview Presentation -Terry Eubank, Finance Director Finance Director Eubank advised that the operational factors considered for the FY18 Budget were Cost of Living Adjustment (COLA) to City Salary Schedule of 0 .80%, creation of the Employee Health Care Internal Service Fund and Public Employees Retirement System on behalf funding . Eubank reported that the FY18 benefit rate was calculated assuming a 12% premium increase and future premium increases assumptions will be at 10%. The employee cost share has been increased from 8.5% to 10% of the program costs. The Public Employees On-Behalf Funding level decreased on FY18 from 4.14% to 3 .01 % of covered payroll. KENAI CITY COUNCIL WORK SESSION APRIL 29, 2017 PAGE 2 The following revenue sources were highlighted: property tax, sales tax, state /federal funding, other, central admin fee, interest on investments and transfers in. The following expenditures were highlighted: Personnel Changes • Salary Schedule Cost of Living Allowance • PERS On- Behalf Funding • Employee Health Care • Firefighter /EMT Capital Expenditures • Animal Control Shelter improvements • Public Safety boiler replacement • Meeks Creek outflow culvert rehabilitation • Kenai Municipal Cemetery Expansion — Phase I Eubank reviewed the revenue and expenditures for the Airport Fund, Water & Sewer Fund, Senior Citizen Fund, Personal Use Fishery Fund, Congregate Housing Fund, and Employee Health Care Fund. Also reviewed were the Permanent Funds, Debt Service and Equipment Replacement Fund. Further details on items highlighted are available in the presentation that the Finance Director provided and will be retained as part of the meeting record and filed with the meeting summary Finance Director advised that the water and sewer rate increases are based on a rate study in 2011. This is the last year that an increase would take place based on that study; however, moving forward annual increases will be based on the Cost of Living. It was noted that the land for the proposed cemetery expansion was not on Airport Land. It was reported that the City uses the state's procurement contracts to purchase equipment or the City looks for used equipment for the Public Works Department. E. Administration - Council Discussion In the introduction the Mayor would like to see the "Council Manager" statement be further clarified and duties to be incorporated. It was noted that it was not the intent to have the City Manager's Assistant position revised. It was requested to increase the assistant to the City Clerk from a part-time employee to a full -time position. The City Manager advised that he did not propose any revisions to personnel due to his short tenure and decrease in projected revenues. 1. General Fund KENAI CITY COUNCIL WORK SESSION APRIL 29, 2017 PAGE 3 No recommended amendments. a. Revenues No recommended amendments. b. Expenditures No recommended amendments. 1) Fire It was noted that Council was appreciative of the additional staff added. No recommended amendments. 2) Clerk Deputy Clerk from part -time to full -time and would like finance to provide a fiscal note on the increase. 3) Visitor's Center No recommended amendments. 4) Legislative No recommended amendments. 5) Legal No recommended amendments. 6) City Manager No recommended amendments. 7) Finance No recommended amendments. 8) Land Administration No recommended amendments. 9) Non - Departmental Remove $800 from 5041 for the Wellness Committee. 10) Planning & Zoning No recommended amendments. KENAI CITY COUNCIL WORK SESSION APRIL 29, 2017 PAGE 4 11) Safety Revise the word "free" in the narrative. 12) Police It was noted that this was the third year that police vehicles had not been purchased. 13) Communications No recommended amendments. 14) Animal Control No recommended amendments. 15) Public Works Administration No recommended amendments. 16) Shop No recommended amendments. 17) Streets No recommended amendments. 18) Buildings No recommended amendments. 19) Street Lighting No recommended amendments. 20) Library Councilor Glendening noted that the computer and keyboards were warn and would like to see replacement. Eubank advised that most of those computers were provided via grant funding and it was not currently in the budget for replacement. 21) Recreation No recommended amendments. 22) Boating Facility KENAI CITY COUNCIL WORK SESSION APRIL 29, 2017 PAGE 5 No recommended amendments. 2. Personal Use Fishery Fund Finance Director Eubank noted that the drop off fee was effective. There was push back at the beginning of implementation, but negative comments has declined. It was advised that it was not the intent of Administration to create any additional parking for the fishery at this time, although ideas have been discussed. Noted it could be a lucrative business for a company to create a shuttle service. Advised the fishery app will be implemented this year. a. Revenues b. Expenditures 1) Public Safety 2) Streets 3) Parks & Recreation 4) Dock No recommended amendments 3. Water & Sewer Fund a. Revenues b. Expenditures 1) Water 2) Sewer 3) Wastewater Treatment Plant No recommended amendments. 4. Airport Fund a. Revenues b. Expenditures 1) Terminal 2) Airfield 3) Administration 4) Other Buildings and Areas 5) Training Facility No recommended amendments. 5. Senior Citizen Fund a. Revenues Expenditures 1) Senior Citizen Access 2) Congregate Meals 3) Home Meals 4) Senior Transportation 5) Choice Waiver KENAI CITY COUNCIL WORK SESSION APRIL 29, 2017 PAGE 6 No recommended amendments. 6. Congregate Housing a. Revenues b. Expenditures No recommended amendments. 7. Employee Health Care Fund a. Revenues b. Expenditures No recommended amendments. 8. Permanent Funds a. Revenues b. Expenditures No recommended amendments. 9. Debt Service a. Revenues b. Expenditures No recommended amendments. 10. Equipment Replacement Fund a. Revenues b. Expenditures No recommended amendments. F. Additional Public Comment There was no one in attendance to provide public comment. G. Council Comments Council stated that they were impressed with the time and effort that Administration puts into the budget process and thanked Administration for the quality presentation and discussion. H. Adjournment The work session adjourned at 1:57 p.m.