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HomeMy WebLinkAboutOrdinance No. 2963-2017CITY OF KENAI ORDINANCE NO. 2963 -2017 Suggested by: Administration AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING BUDGET ADJUSTMENTS AND INCREASING GENERAL FUND ESTIMATED REVENUES AND APPROPRIATIONS FOR COSTS IN EXCESS OF BUDGETED AMOUNTS. WHEREAS, the General Fund Finance, Planning and Zoning, and Parks, Recreation & Beautification Departments project a shortfall in budgeted amounts for employee health insurance because of changes in employee coverage elections; and, WHEREAS, due to employee vacancies, the police department has excess funds in its health insurance budget to cover the shortfall of these departments; and, WHEREAS, the Fire Department's overtime budget is currently 93.3% expended with two months of the fiscal year to go; and, WHEREAS, higher than budgeted use of overtime is related to excess shift coverage for employees on medical leave and an increase in call volumes; and, WHEREAS, the Fire Department estimates the need for an additional $19,835 in overtime and benefits for the completion of FY2017; and, WHEREAS, excess budget exist in the Fire Department's Professional Services Account for transfer to cover the additional overtime; and, WHEREAS, the FY2017 Budget forecasted the vacation of portions of the Old City Shop with the completion of the new Warm Storage Facility; and, WHEREAS, vacation was delayed until construction of the new Warm Storage Facility was complete; and, WHEREAS, due to extended occupancy, budgeted amounts for land lease and utilities are not sufficient requiring supplemental funding of $36,325; and, WHEREAS, Public Works Departments of the City have identified sufficient funds in other budget categories which are available for transfer to cover the shortfall in the land lease and utilities accounts; and, WHEREAS, the Parks, Recreation & Beautification Department projects a shortfall in its leave budget due to leave employee leave cash -outs in excess of budgeted amounts; and, WHEREAS, annual department budget estimates for leave cash -outs include each employee cashing -out two weeks of leave; and, New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2963 -2017 Page 2 of 4 WHEREAS, when employees cash in more than this estimated amount, budget deficits are created and budget adjustments are needed to cover the deficit; and, WHEREAS, the Parks, Recreation & Beautification Department has cancelled the budgeted replacement of a 72" mower in FY2017 providing sufficient budget for coverage of the deficit in its leave budget; and, WHEREAS, the number of eligible Choice Waiver meals being provided by the Kenai Senior Center is less than originally budgeted creating a $57,000 deficit in the funds projected FY2017 revenues; and, WHEREAS, as a result of the revenue deficit, the General Fund will need to provide supplemental funding for the remainder of FY2017 in the amount of $57,000. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1: Form: That this is a non -code ordinance. Section 2: That following budget adjustment is authorized: General Fund Increase: Finance — Health & Life Insurance $14,513 Planning & Zoning - Health & Life Insurance 13,992 Parks, Recreation & Beautification - Health & Life Insurance 13.460 $41.965 Decrease - Police - Health & Life Insurance $41.965 Section 3: That following budget adjustment is authorized: General Fund Increase: Fire — Overtime $15,475 Fire — PIERS 3,400 Fire — Medicare 225 Fire — Workers' Compensation 735 $ 11� Decrease: Fire — Professional Services $19 New Test Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2963 -2017 Page 3 of 4 Section 4: That following budget adjustment is authorized: General Fund Increase: Non - Departmental — Rentals $ 8,825 Shop — Utilities 24,000 Streets — Utilities 3,500 $36.325 Decrease Streets — Repair & Maintenance $15,025 Streets - Rentals 7,200 Streets — Operating & Repair Supplies 6,100 Shop — Small Tools & Minor Equipment 2,000 Shop — Dues & Publications 2,000 Shop — Office Supplies 600 Shop — Rentals 400 Buildings — Operating & Repair Supplies 3.000 $325 Section 5: That following budget adjustment is authorized: General Fund Increase: Parks, Recreation & Beautification — Leave $6.000 Decrease: Parks, Recreation & Beautification — Machinery & Equipment $6.000 Section 6: That estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues - Appropriation of Fund Balance $57 Increase Appropriations: Non - Departmental — Transfer to Senior Citizen Fund $57 Section 7. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2963 -2017 Page 4 of 4 Section 8. Effective Date: 'That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7t1 day of June, 2017. �W '�- BRIAN GABRIEL SR., MAYOR ATTEST: I �- 'r �kcin2, dckins Ci-liJ Approved by Finance Introduced: May 17, 2017 Enacted: June 7, 2017 Effective: June 7, 2017 New Text Underlined; [DELETED TEXT BRACKETED] ftllleate Wa a Past, d 210 Fidalgo Ave, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535 1 Fax: (907) 283 -3014 the city o f www. kenai.city KENAI, ALASKA \V MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City ManagerC%' FROM: Terry Eubank, Finance Director DATE: May 10, 2017 SUBJECT: Ordinance 2963 -2017 The purpose of this memo is to respectfully request adoption of Ordinance 2963 -2017. Ordinance 2963 -2017 authorizes budget transfers within numerous General Fund Departments and authorizes a supplemental appropriation to provide additional funding for operations of the Kenai Senior Center in FY2017. The remainder of this memo will provide justification for the requested adjustment to Health & Life Insurance budgets. Memos in support of other requested budget revisions and the supplemental appropriation have been provided seperately by the impacted departments. Budget adjustments are needed in the Finance, Planning & Zoning, and Parks, Recreation & Beautification Departments for employee health and life insurnance amounts. The FY2017 City budget allocated employee health care costs based on the projected coverage of employees in each department. In each of these departments the actual coverage election by employees differed from what was budgeted creating shortfalls. Funding for the needed budget transfer is available in the Police Department's employee health and life insurance account. Vacancies in the Police Department during FY2017 resulted in the available budget. The change in allocation method incorporated in the FY2018 Budget should eliminate the needed for similar budget revision in subsequent fiscal years. the a, KENA15 ALASKA N"/ MEMORANDUM '7/2eaay with a Past City W&4 a f taoa� 210 Fidalgo Ave, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535 1 Fax: (907) 283 -3014 www.kenai.city TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Rachael S. Craig DATE: 05 -07 -17 SUBJECT: Senior Citizen Fund Supplemental Funding This memo is in reference Ordinance 2963 -2017. This memo is requesting a transfer of $57,000 from the General Fund to provide supplemental funding for the Senior Citizen Fund. Due to continual denials of Choice Waiver Client's Care Plans by the State of Alaska, the fund continues to see a decline in Choice Waiver Revenue. When a client, who is 60 years and older, is refused service under the Choice Waiver Program, they are likely to continue receiving services under the centers NTS (Nutrition, Transportation and Services) Grant. The Choice Waiver Program is a fee for service and is paid through a reimbursement per meal. The client is approved for a certain number of meals through the individual's annual plan of care. Currently, the Choice Waiver reimbursement rate is $21.47 per meal. The NTS grant, through the Older American's Act of 1964, states a suggested donation may be requested but a person is not required to make a donation. There is no means test that can be used for the suggested donation. Last fiscal year, the suggested donation was $6.00. As of May 1, 2017, the suggested NTS donation has been increased to $7.00. The cost to produce a meal at the senior center is approximately $15.00. Comparing November 2016 through April 2017 to the 2015 — 2016, we have seen a 12.4% loss in the number of Choice Waiver Clients as well as a 14% decrease in the number of meals provided. I request that you support an increase of $57,000 from the general fund to the Choice Waiver Revenue to cover the loss. fVilea�e wid a past, 61i w1d a 6 twy, Al 210 Fidalgo Ave, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535 1 Fax: (907) 283 -3014 the city o f www.kenai.city KENAI, ALASKA Nv/ MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Jeff Tucker, Fire Chief DATE: May 8, 2017 SUBJECT: End of Fiscal Year Overtime Budget Transfer As we approach the end of FY 17 the Fire Department is in need of transfering funds to cover unanticipated overtime expenses. The need is percipitated by an increase in calls for service and the need to cover for staff who have suffered off -duty injuries. Our anticipated budget shortfall is estimated to be $19,835.00 which includes $15,475 in overtime, $3,400 in PERS, $225 in Medicare, and $735 in Workers' Compensation Insurance. We have identified the following internal funding sources to cover the budget transfers. 4531 — Professional Services • Employee Physicals $10,000.00 • Posichek Calibration Servicing $1,200.00 • Shredding Services $200.00 • Ambulance Billing Services $8,435.00 r J IlAaaae wld a Past, City with a f tine 210 Fidalgo Ave, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535 1 Fax: (907) 283 -3014 ilhecitv of' www.kenai.city NV MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUG : Paul Ostrander, City Manager j1, L9. FROM: Robert J. Frates, Parks & Recreation Director DATE: May 10, 2017 SUBJECT: Leave Account — Shortage FY17 The Parks & Recreation Department experienced a deficit in its FYI Leave Account (001- 445 - 0300). The deficit of $6,000 is primarily a result of the Director cashing in available hours. To cover this shortfall, funds can be used from the department's Machinery & Equipment account (001- 445 -8064) in the amount of $6,000. The reason funds exist is because we will not be purchasing a mower. 11111ate wid a Past, G'it� w;t% a f twee JJ 210 Fidalgo Ave, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535 1 Fax: (907) 283 -3014 the city o f www.kenai.city KENAI, ALASKA MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager �7, 0 - FROM: Sean Wedemeyer, Public Works Director /Capital Projects Manager 5-/ti w DATE: May 11, 2017 SUBJECT: Ordinance No. 2963 -2017 This purpose of this memo is to recommend adoption of ordinance 2963 -2017. During the fiscal year 2017 budget process in late 2015 and early 2016, it was anticipated that the new warm storage and subsequent Streets /Buildings offices and work areas would be constructed in time for these departments to move out of the Airport owned property at 332 Airport Way by July 1, 2016. At that time it was envisioned that the office /work area would be constructed with wood framing. It was later determined that fire and building codes required we construct with non- combustible materials, e.g. steel framing. The time it required to complete design and procure the materials increased significantly. Therefore budgeted amounts for land lease and utilities at this location are not sufficient. I tasked my foremen with assisting me in identifying budgeted purchases that can be postponed to FY 18 without a significant impact to operations and services. They diligently provided me with a list to choose from. In order to fund the budget shortfall I propose to postpone crack sealing streets, renting equipment to restore ditches to proper profile, and the purchase of various items e.g. small tools and a Volvo diagnostic subscription. Thank you for your consideration.