HomeMy WebLinkAboutOrdinance No. 2961-2017CITY OF KENAI
ORDINANCE NO. 2961 -2017
Sponsored by: Administration
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA ADOPTING THE
ANNUAL BUDGET FOR THE FISCAL YEAR COMMENCING JULY 1, 2017 AND ENDING JUNE
30, 2018 AND COMMITTING $1,000,000 OF GENERAL FUND, FUND BALANCE FOR CAPITAL
IMPROVEMENTS.
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; and,
WHEREAS, committed fund balance represents resources whose use is constrained by
limitations that Council imposes upon itself at its highest level of decision making, an Ordinance,
and that remain binding unless removed in the same manner; and,
WHEREAS, in recognition of deferred and ongoing maintenance needs of City facilities, Council
commits $1,000,000 for future renovation and improvements to City facilities.
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 2018 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, 2017 and ending June 30, 2018.
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, 2017, and ending the 30th
day of June, 2018, 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
Enterprise /Internal Service Funds:
Congregate Housing Fund
Employee Health Care Fund
Total Enterprise /Internal Service Funds
Special Revenue Funds:
Personal Use Fishery Fund
Water & Sewer Fund
$15,571,789
452,133
2,143,283
2,595,416
512,127
2,453,479
New Text Underlined; [DELETED TEXT BRACKETED]
Ordinance No. 2961 -2017
Page 2 of 2
Airport Fund
2,885,399
Senior Citizen Fund
959,554
Airport Land Sale Permanent Fund
1,191,711
General Land Sale Permanent Fund
150,993
Total Special Revenue Funds
8,153,263
Debt Service Fund — Library Expansion Bonds 176,998
Total All Funds $26.497 466
Section 4. Council herby commits $1,000,000 of Unassigned General Fund, Fund Balance
for future renovation and improvements to City facilities.
Section 5. 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.
Section 6. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
July 1, 2017.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7`h day of June, 2017.
I1
Heinz, Acting City
Approved by Finance:
BRIAN GABRIEL SR., MAYOR
New Text Underlined; [DELETED TEXT BRACKETED]
Introduced: May 17, 2017
Enacted: June 7, 2017
Effective: July 1, 2017
aye wid a Past, elit wit% a Ftww,
210 Fidalgo Ave, Kenai, Alaska 99611 -7794
Telephone: (907) 283 -7535 1 Fax: (907) 283 -3014
Eke ufy www.kenai.city
KENAI, ALASKA
NV
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TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager T. (9
FROM: Terry Eubank, Finance Director
DATE: May 10, 2017
SUBJECT: Ordinance 2961 -2017 to adopt the FY18 Budget
The purpose of this memo is to summarize the changes that have been proposed to the FY18
Budget since disbursement of the draft document on April 2ntl, and to communicate the result of
these changes on each of the City's operating funds. The following are the Administration's
recommended changes that have been incorporated into the draft budget and appropriating
ordinance. New summary pages for the all funds, after incorporating the changes, are attached
for your review.
Revenues:
Administration Recommended Amendments:
General Fund — PERS On- behalf funding resulting
from Airport/Street Operator staffing changes ($632)
Personal Use Fishery Fund - PERS On- behalf funding resulting
from Airport/Street Operator staffing changes ($18)
Airport Fund - PERS On- behalf funding resulting
from Airport/Street Operator staffing changes $542
Senior Citizen Fund — Transfer from General Fund
resulting from increase in insurance renewal premiums $1,668
Page 2 of 5
Ordinance 2961 -2017
Expenditure Changes:
Administration Recommended Amendments:
1. Decrease Street Department staffing by one Equipment Operator, eliminate the annual five
month transfer to the Airport of two Equipment Operator's, and increase the Airport staffing
by one Fulltime equipment Operator.
General Fund:
Non - Departmental — PERS
$ (632)
Streets - Salaries
(16,468)
Streets - Overtime
(4,496)
Streets - Leave
(1,509)
Streets - Medicare
(326)
Streets — PERS
(4,612)
Streets — Unemployment Insurance
(112)
Streets —Workers' Compensation
(885)
Streets — Health & Life Insurance
(3,575)
Streets — Supplemental Retirement
192)
�i
Personal Use Fishery Fund:
Streets - Salaries
(171)
Streets - Overtime
(54)
Streets - Leave
(48)
Streets - Medicare
(4)
Streets — PERS
(60)
Streets — Unemployment Insurance
(1)
Streets — Workers' Compensation
(12)
Dock - Salaries
(249)
Dock - Overtime
(108)
Dock - Leave
(71)
Dock - Medicare
(7)
Dock — PERS
(94)
Dock — Unemployment Insurance
(3)
Dock — Workers' Compensation
18
M,
Airport Fund:
Airfield - Salaries
17,393
Airfield - Overtime
625
Airfield - Leave
1,629
Airfield - Medicare
285
Airfield — PERS
4,506
Airfield — Unemployment Insurance
98
Airfield — Workers' Compensation
602
Airfield — Health & Life Insurance
3,574
Airfield — Supplemental Retirement
300
$29.012
61i 70
Page 3 of 5
Ordinance 2961 -2017
Net of projected lapse and the change in PERS On- behalf funding in each fund, the increase
(decrease) in each fund's projected surplus (deficit) for this staffing change is as follows:
General Fund
Personal Use Fishery Fund
Airport Fund
$30,535
843
2�>729)
$—A&42
2. City General Liability, Property, Auto, and Equipment coverage renewal amounts in excess of
budgeted amounts. The City signed a three year commitment with its insurance carrier,
Alaska Public Entity Insurance (APEI), for policy years commencing July 1, 2016 and ending
June 30, 2019 in exchange for an annual premium discount of 5 %. The agreement would
terminate should the renewal premium increase by more than 10 % over the preceding year's
premium. This year's renewal is an increase of 7% of the FY17 premium and is a result of
negative pool liability and property claims experience. APEI is an insurance pool with many
members besides the City and while the benefits of pooling is the sharing of risk, sometimes
the claims of other pool members can negatively impact other members. The administration
will monitor the City's participation in the pool and make sure continued participation is in the
City's best interest.
General Fund:
Non - Departmental — Insurance $21,369
Non - Departmental — Transfer to Senior Citizen Fund 1.668
$23 7
Personal Use Fishery Fund:
Public Safety — Insurance
$230
Streets — Insurance
20
Parks, Recreation & Beautification — Insurance
142
Dock — Insurance
48
;m
Airport Fund:
Terminal — Insurance $1,372
Airfield — Insurance 3,919
Administration — Insurance 248
$
Congregate Housing Fund — Insurance $2 211
Water & Sewer Fund:
Water — Insurance $1,981
Sewer — Insurance 320
Waste Water Treatment Plant — Insurance 2,777
$5.078
r
Page 4 of 5
Ordinance 2961 -2017
Senior Citizen Fund:
Senior Access — Insurance
$ 263
Congregate Meals — Insurance
275
Home Meals — Insurance
97
Transportation — Insurance
691
Choice Waiver — Insurance
394
Net of projected lapse in each fund, the (decrease) in each fund's projected surplus (deficit)
for the increase in insurance costs is as follows:
General Fund $(21,969)
Personal Use Fishery Fund (424)
Airport Fund (5,207)
Congregate Housing Fund (2,211)
Water & Sewer Fund (4,773)
Senior Citizen Fund (Includes $1,668 in additional funding
from the City's General Fund)
$ 4 4
The total change in projected surplus (deficit) from these changes is as follows:
General Fund
Budget Draft Projected Deficit $(125,603)
Street/Airport Equipment Operator staffing change 30,535
Insurance renewal increase (21,969)
Projected FY2018 Deficit $ 1171Q 7)
Personal Use Fishery Fund
Budget Draft Projected Surplus $83,997
Street/Airport Equipment Operator staffing change 843
Insurance renewal increase (424)
Projected FY2018 Deficit $ 4 416
Airport Fund
Budget Draft Projected Surplus $445,580
Street/Airport Equipment Operator staffing change (26,729)
Insurance renewal increase (5,207)
Projected FY2018 Deficit $4
Congregate Housing Fund
Budget Draft Projected Loss $(56,385)
Insurance renewal increase (2,211)
Projected FY2018 Deficit $)
Water & Sewer Fund
Budget Draft Projected Surplus $620,485
Insurance renewal increase (4,773)
Projected FY2018 Deficit $Sz15 Zl2
Page 5 of 5
Ordinance 2961 -2017
Senior Citizen Fund
Budget Draft Projected Surplus $ -
Insurance renewal increase
Projected FY2018 Deficit $_
These are the only two proposed amendments to the April 2, 2017 Draft City Budget which have
been included in proposed budget adoption ordinance. Your support for passage of the budget
adoption ordinance is respectfully requested.
attachments
r
City of Kenai
Fiscal Year 2018 Operating Budget
General Fund
Budget Projection
Original
Actual Actual Budget Projection Proposed Projection Projection
FY2015 FY2016 FY2017 FY2017 FY2018 FY2019 FY2020
TAXABLE VALUES (000-S) $ 828,385 $ 851,638 $ 866,235 $ 868,724 $ 876,530 $ 899,157 $ 922,646
MILL RATE 4.35 4.35 4.35 4.35 4.35 4.35 4.35
REVENUES
Property & Sales Taxes
Property Tax 3,656,927 3,782,539 3,810,759 3,902,208 3,874,650 3,983,106 4,083,240
Sales Tax 7,257,451 7,247,938 7,329,099 6,936,040 6,934,917 7,038,941 7,214,720
Total Property & Sales Taxes 10,914,378 11,030,477 11,139,858 10,838,248 10,809,567 11,022,047 11,297,960
State /Federal Revenue:
PERS Funding
Community 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
2,977,564 379,467 281,404 282,952 204,235 210,362 216,673
441,046 415,798 277,930 278,232 170,598 129,651 63,946
292,718 198,649 200,000 165,000 165,000 169,950 175,049
81,058 155,849 58,000 66,150 58.000 60.900 63.945
3,792.386 1.149.763 817.334 792.334 597.833 570,863 519,613
71,973 62,629 76,500 63,000 63,500 65,405 67,367
412,509 408,558 400,000 425,000 425,000 437,750 450,883
56,992 76,212 75,000 90,000 100,000 151,477 291,986
636,453 587,224 644,805 626,374 605,895 513,347 528,747
1,177, 927 1,134,623 1.196, 305 1.204.374 1,194.395 1,167.979 1,338,983
15.884.691 13.314.863 13.153,497 12.834,956 12,601,795 12,760 889 13.156.556
1,505,886 1,458,900 1,494,200 1,494,200 1,492,400 1,537,172 1,583,287
11 - - 124,303 - - -
36,900 38,300 34,000 34,000 439,000 40,170 41,375
147.093 148.009 149,802 150,993 150,993 150.993
1.689.890 1,497,200 1.676,209 1.802.305 2.082.393 1.728.335 1.775.655
17, 574.581 14, 812.063 14, 829.706 14.637, 261 14.684.188 14.489.224 14.932.211
5,357,342 2,865,713 3,013,609 3,113,122 2,909,709 2,969,945 3,029,344
6,876,330 6,987,609 7,284,438 7,288,580 7,299,722 7,445,716 7,616,967
2,269,516 2,251,812 2,381,685 2,395,685 2,375,314 2,422,820 2,471,276
1.911,792 1,993,809 2,156,949 2,172,679 2.125.189 2.167,693 2.211.047
16,414,980 14,098,943 14,836,681 14,970,066 14,709,934 15,006,174 15,328,634
670.394 686.253 583.299 618.299 826,788 598.952 609,421
17, 085,374 14,785,196 15,419,980 15,588, 365 15,536,722 15,605,126 15,938,055
489,207 26,867 (590,274) (951,104) (852,534) (1,115,902) (1,005,844)
741,834 748.503 735,497 750.309 766,432
489,207 26,867 151,560 (202,601) (117,037) (365,593) (239,412)
9.902,026 10,391,233 9,830,242 10.418,100 10.215.499 10.098.462 9.732.869
10,391,233 10,418,100 9,981,802 10,215,499 10,098,462 9,732,869 9,493,457
(546,706) (588,937) (618,706) (618,706) (624,937) (660,937) (696,937)
(409,746) (409,746) (509,746) (6,651,471) (6,850,913) (6,886,067) (6,632,045)
1,4( 97,756) (1,409,610) (1,776,805) 2,370,141 2,3( 78,978) 2,185,865 2,164,475
Unassigned Fund Balance $7,937,025 $8,009,807 $ 7,076,545 $ 575,181 $ 243,634 $ $ -
City of Kenai
Fiscal Year 2018 Operating Budget
Budget Projection
Fund: 006 - Personal Use Fishery Fund
Original
Manager
Actual
Actual
Budget
Projection
Proposed
FY2015
FY2016
FY2017
FY2017
FY2018
Revenues
PERS Grant
$ 17,437
$ 2,167
$ 1,986
$ 3,020
$ 2,312
Usage Fees
Beach Parking
219,705
182,739
180,350
182,854
183,000
Beach Camping
199,203
230,729
227,650
238,752
239,000
Dock Launch & Park
100,970
133,181
131,700
128,388
130,000
Dock Parking Only
15,868
15,238
15,000
14,807
15,000
Participant Drop -off Fee
-
-
28,950
10,717
11,000
Total Usage Fees
535,746
561,887
583,650
575,518
578,000
Miscellaneous Revenues
Investment earnings
680
1,580
750
750
750
Other
(3,235)
(6,888)
(3,500)
4,500
(4,500)
Total Miscellaneous Revenues
2,555
(5,308)
2,750
3,750
(3,750)
Total Revenue
550,628
558,746
582,886
574,788
576,562
Expenditures
Public Safety
122,473
113,943
111,599
128,999
109,195
Streets
54,632
34,116
49,258
48,013
51,506
Boating Facility
90,410
71,417
72,417
79,718
72,347
Parks, Recreation & Beautification
244,514
266,996
346,935
332,531
279,079
Total Expenditures
512,029
486,472
580,209
589,261
512,127
Contribution To /(From) Fund Balance:
38,599
72,274
2,677
(14,473)
64,435
Projected Lapse
-
-
23,150
23,603
19,981
Adjusted (Deficit) /Surplus
38,599
72,274
25,827
9,130
84,416
Beginning Fund Balance
29,063
67,662
124,188
139,936
149,066
Ending Fund Balance
$ 67,662
$ 139,936
$ 150,015
$ 149,066
$ 233,482
Revenues
State & Federal Grants
Usage Fees
City of Kenai
Fiscal Year 2018 Operating Budget
Budget Projection
Fund: 008 - Airport Fund
Original Manager
Actual Actual Budget Projection Proposed
FY2015 FY2016 FY2017 FY2017 FY2018
$ 225,082 $ 30,048 $ 30,961 $ 28,461 $ 23,552
Fuel Sales
9,300
1,372
10,000
10,000
10,000
Fuel Flowage
37,546
27,772
35,000
35,000
35,000
Float Plane
1,331
812
1,500
1,500
1,500
Tie Down
7,602
5,576
10,000
7,500
7,500
Landing
369,824
418,644
375,000
475,000
375,000
Plane Parking
5,128
5,526
5,000
5,000
5,000
Total Usage Fees
430,731
459,702
436,500
534,000
434,000
Rents and Leases
Land
Total Rents and Leases
Miscellaneous
Penalty and Interest
Interest on Investments
Other
Total Miscellaneous
Terminal Revenue
Parking Fees
Rents and Leases
Penalty and Interest
Car Rental Commissions
Advertising Commissions
Miscellaneous
Total Terminal Revenue
Transfers In
Airport Land Trust Fund
Total Transfers In
Total Revenues
Expenditures
Airport Terminal
Airport Airfield
Airport Administration
Airport Other Buildings and Areas
Airport Training Facility
Total Expenditures
Contribution To /(From) Fund Balance:
674,609
687,256
698,755
698,755
650,117
674,609
687,256
698,755
698,755
650,117
18,378
5,886
15,000
15,000
5,000
22,445
33,213
25,000
25,000
25,000
40,042
9,627
25,000
26,200
25,000
80,865
48,726
65,000
66,200
55,000
272,698
261,036
300,000
300,000
300,000
300,807
283,525
310,127
310,127
317,723
3,058
1,957
4,500
4,500
4,500
193,011
226,130
195,000
195,000
195,000
4,852
10,315
6,000
9,000
9,000
3,468
608
1,500
1,500
1,500
777,894
783,571
817,127
820,127
827,723
1,135, 313
1,142, 714
1,184, 356
1,175,414
1,191, 711
1,135,313
1,142,714
1,184,356
1,175,414
1,191,711
3,324,494
3,152,017
3,232,699
3,322,957
3,182,103
623,320
548,308
630,953
628,150
645,425
1,705,814
1,522,298
1,710,321
1,708,674
1,697,523
348,841
287,087
315,259
431,210
336,914
388,777
313,741
169,654
241,380
167,211
34,011
32,620
36,768
42,017
38,326
3,100,763 2,704,054
223,731 447,963
2,862,955 3,051,431 2,885,399
369,744 271,526 296,704
Projected Lapse (6 %) 115,347 119,455 116,940
City of Kenai
Fiscal Year 2018 Operating Budget
Budget Projection
Fund: 008 - Airport Fund
Original
Manager
Actual
Actual
Budget
Projection
Proposed
FY2015
FY2016
FY2017
FY2017
FY2018
Adjusted (Deficit) /Surplus
485,091
390,981
413,644
Beginning Fund Balance
4,010,808
4,234,539
4,558,150
4,682,502
5,073,483
Ending Fund Balance
$ 4,234,539
$ 4,682,502
$ 5,043,241
$ 5,073,483
$ 5,487,127
City of Kenai
Fiscal Year 2018 Operating Budget
Budget Projection
Fund: 009 - Congregate Housing Fund
Original
Manager
Actual Actual
Budget
Projection
Proposed
FY2015 FY2016
FY2017
FY2017
FY2018
Revenues
PERS Grant
$ 16,482 $ 2,077 $
1,627 $
1,627
$ 1,192
Rents and Leases
365,430 382,253
382,414
393,414
388,345
Interest on Investments
2,533 3,880
3,000
3,000
4,000
Transfer from General Fund
- -
-
-
-
Miscellaneous
20 77
Total Revenues
384,465 388,287
387,041
398,041
393,537
Expenses
454,429 425,986
460,619
511,993
452,133
Net Income (loss)
(69,964) (37,699)
(73,578)
(113,952)
(58,596)
Beginning Retained Earnings
469,418 418,765
417,601
474,257
496,442
Capital Asset Acquistions
(116,826) (46,666)
-
-
-
Allocated to Capital Projects
- -
-
-
-
Credit for Depreciation
136,137 139,857
136,137
136,137
139,857
Available Retained Earnings
$ 418,765 $ 474,257 $
480,160 $
496,442
$ 577,703
City of Kenai
Fiscal Year 2018 Operating Budget
Budget Projection
Fund: 010 - Water and Sewer Fund
Original Manager
Actual Actual Budget Projection Proposed
FY2015 FY2016 FY2017 FY2017 FY2018
Revenues
PIERS Grant $ 255,777 $ 30,836 $ 24,255 $ 24,255 $ 17,228
Usage Fees
Service Hook -up
9,827
4,001
8,630
3,927
3,929
Residential Water
654,383
716,095
764,901
797,286
832,278
Commercial Water
256,492
283,168
335,420
335,420
350,141
Residential Sewer
1,109,172
1,136,029
1,154,566
1,178,610
1,182,298
Commercial Sewer
411,520
430,949
493,264
493,264
494,807
Total Usage Fees
2,441,394
2,570,242
2,756,781
2,808,507
2,863,453
Miscellaneous Revenues
Penalty and Interest
41,987
39,679
40,000
43,235
43,250
Interest Earnings
8,391
10,896
12,000
12,000
16,000
Other
2,207
2,812
3,000
3,000
3,000
Total Miscellaneous Revenues
52,585
53,387
55,000
58,235
62,250
Total Revenues
2,749,756
2,654,465
2,836,036
2,890,997
2,942,931
Expenditures
Water Department
1,157,685
829,080
880,772
900,427
864,277
Sewer Department
478,031
384,963
450,651
805,388
513,830
Wastewater Treatment Plant Department
1,074,016
923,883
1,121,757
1,121,757
1,075,372
Total Expenditures
2,709,732
2,137,926
2,453,180
2,827,572
2,453,479
Contribution To /(From) Fund Balance:
40,024
516,539
382,856
63,425
489,452
Projected Lapse (6 %)
-
129,479
130,715
126,260
Adjusted (Deficit) /Surplus
512,335
194,140
615,712
Beginning Fund Balance
1,148,989
1,189,013
1,614,533
1,705,552
1,899,692
Ending Fund Balance
$ 1,189,013
$ 1,705,552 $
2,126,868
$ 1,899,692 $
2,515,404
Revenues
State Grants
USDA Grant
Choice Waiver
KPB Grant
United Way
Rents and Leases
Donations
Meal Donations
Transfer from General Fund
Other
Total Revenue
Expenditures
Senior Citizen Access
Congregate Meals
Home Meals
Senior Transportation
Choice Waiver
Total Expenditures
Contribution To /(From) Fund Balance:
Projected Lapse (3 %)
Adjusted (Deficit) /Surplus
Beginning Fund Balance
City of Kenai
Fiscal Year 2018 Operating Budget
Budget Projection
Fund: 019 -Senior Citizen Fund
Original Manager
Actual Actual Budget Projection Proposed
FY2016 FY2016 FY2017 FY2017 FY2018
$ 295,773 $ 196,978 $ 192,939 $ 200,939 $ 198,299
13,949
15,780
13,000
15,000
15,000
322,826
252,604
275,000
225,000
225,000
126,207
126,207
126,207
126,207
126,207
8,762
9,582
9,582
5,977
5,977
5,660
12,971
13,000
13,000
13,000
33,323
23,497
31,000
30,000
80,000
54,428
61,066
66,500
75,000
75,000
-
88,339
151,385
205,160
196,730
316
(621)
300
300
300
861,244
786,403
878,913
896,583
935,513
207,975
175,262
163,881
164,631
166,319
192,265
179,434
223,133
228,533
236,396
163,314
148,048
175,274
179,374
195,103
64,289
108,562
67,689
68,439
80,523
336,444
331,888
271,749
279,249
281,213
964,287
943,194
901,726
920,226
959,554
(103,043)
(156,791)
(22,813)
(23,643)
(24,041)
22,813 23,368 24,041
(103,043) (156,791) (275)
260,109 157,066 275
Ending Fund Balance $ 157,066 $ 275 $ - $ - $
1111fepe w;d a Past, 0 w1d a Ftam
_- _- - 210 Fidalgo Ave, Kenai, Alaska 99611 -7794
Telephone: (907) 283 -7535 1 Fax: (907) 283 -3014
the city o f www. kenai.city
KENAIALASKA
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: May 9, 2017
SUBJECT: FY2018 Budget Request for Information - Fulltime Deputy Clerk
The purpose of this memo is to respond to Council's request for the fiscal impact of increasing
the City's Deputy Clerk position to fulltime status from its current 24 -hour per week part-time
schedule.
The fiscal impact by account would be as follows:
Expenditure Increases
City Clerk — Salaries
$20,100
City Clerk — Leave
523
City Clerk — Medicare
299
City Clerk — PIERS
4,422
City Clerk — Unemployment Insurance
103
City Clerk — Workers' Compensation
78
City Clerk — Health Insurance
8,937
Non - Departmental — PERS
605
Total Expenditure Increases
$35,067
Revenue Increases —
PERS On- behalf Funding $_6L05
FY2018 Budgetary Impact $34462
If the Deputy Clerk was increased to a fulltime position, projections show the FY2020 use of fund
balance to be $36,699 after elimination of proposed $250,000 one -time capital expenditures. The
policy limits the use of fund balance for operational expenditures to a period of not more than two
years with the third budget year showing sufficient revenues to support operational expenditures.
This scenario will require identification of a supplemental revenues source or elimination of other
operational expenditures to comply with the City's fund balance policy.
\I
MEMORANDUM
"Vlflaye w1d a Past, 0 uIld a future
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
FROM: Council Members Molloy and Pettey
DATE: May 31, 2017
SUBJECT: Ordinance No. 2961 -2017, Adopting the Annual
Year Commencing July 1, 2017 and Ending
Committing $1,000,000 of General Fund, Fund
Improvements.
Budget for the Fiscal
June 30, 2018 and
Balance for Capital
After public hearing on Ordinance No. 2961 -2017, we intend to put on the table a series of budget
document amendments and an amendment to the budget adoption ordinance, for Council's
consideration and action, that will provide the needed appropriations to increase the
Administrative Assistant II position in the Clerk's Office from 24 to 40 hours per week, if approved
by Council.
The City Clerk's office is a major point of contact and interaction of the public with their city
government. The volume of business handled and services performed in the City Clerk's office
has increased significantly in the past several budget years, but the City Clerk has only 24 hours
support by the Deputy Clerk position. A full time Deputy Clerk position will better support the
Clerk's Office in processing its work flow more timely, which is in the best interest of the City and
the public served by the Clerk's Office.
Finance Director Eubank's FY2018 Budget Amendment Memorandum sets out the financial
impact of the amendments, for Council's consideration. The expenditure increase associated
with this change to the FY 2018 budget is $35,067. In the Finance Director's opinion, the
proposed FY2018 budget, after inclusion of this amendment, will be compliant with the City's Fund
Balance Policy and ordinances.
The amount for FY2018 is based on the position remaining an Administrative Assistant II. The
Finance Director advises that once a new job description is completed the position will be
reviewed and classified using the City's classification matrix to assure accurate placement on the
City's salary schedule.
Council's support of the amendments is respectfully requested, to increase the Administrative
Assistant 11 position in the Clerk's Office from 24 to 40 hours per week.
71iflaoe wid a Past, Cif wit/ a Aatrue ho
210 Fidalgo Ave, Kenai, Alaska 99611 -7794
Telephone: (907) 283 -7535 1 Fax: (907) 283 -3014
the ciy a f www.kenai.city
KENAI, ALASKA
\v�
MEMORANDUM
TO: Council Members Molloy and Pettey
THROUGH: Paul Ostrander, City Manager f, 0
FROM: Terry Eubank, Finance Director y,�
DATE: May 30, 2017
SUBJECT: FY2018 Budget amendment for increasing the Clerk Department
Administrative Assistant II position to fulltime.
The purpose of this memo is to provide amendment language for increasing the Administrative
Assistant II position in the Clerk's Office from a 24 hour per week position to a fulltime 40 hour
per week position. Three sections of the proposed budget document will require amendment as
will Ordinance 2961 -2017, the budget adoption ordinance. Financial projections, after
incorporation of this change, show no use of fund balance for recurring expenditures in FY2018,
an $119,721 use of fund balance for recurring expenditures in FY2019, and no use of fund
balance for recurring expenditures in FY2020. The City's Fund Balance Policy limits the use of
fund balance for operational expenditures to a period of not more than two years with the third
budget year showing sufficient revenues to support operational expenditures. The proposed
budget, after inclusion of this change, will be compliant with the City's Fund Balance Policy.
Budget Document Amendments:
Revenues;
1. PERS On- behalf funding will increase by $605 with this proposed change.
Amendment Language:
Amend PERS Funding on page 16 of the Annual Budget for the City of Kenai, Alaska July
1, 2017 — June 30, 2018 to $204,840 in FY2018, to $210,985 in FY2019, and to $217,315
in FY2020.
Expenditures:
The expenditure increase associated with the change is $35,067. The City Clerk Department
must be amended by $34,462 and Non - departmental will increase $605.
Page 2 of 2
Requested Budget Amendment Language
Amendment Language:
1. Amend amounts in the Council Adopted Column of the City Clerk Department, page
26 of the Annual Budget for the City of Kenai, Alaska July1, 2017 — June 30, 2018 for
the following accounts:
0100
Salaries
$145,143
0300
Leave
4,833
0400
Medicare
2,174
0500
PIERS
31,931
0600
Unemployment Insurance
750
0700
Workers Compensation
566
0800
Health & Life Insurance
35,748
2. Amend amounts in the Council Adopted Column of the Non - Departmental
Department, page 47 of the Annual Budget for the City of Kenai, Alaska July1, 2017 —
June 30, 2018 for the following accounts:
0500 PIERS
Ordinance 2961 -2017 Amendment
$204,840
Amendment Language:
Amend the "General Fund" amount of Section 3 to $15,571,789 and the "Total All Funds"
of Section 3 to $26,497,466.
These amendments will provide the needed appropriations to increase the Administrative
Assistant II position in the Clerk's Office from 24 to 40 hours per week. These amounts are based
on the position remaining an Administrative Assistant II. Once anew job description is completed
the position will be reviewed and classified using the City's classification matrix to assure accurate
placement on the City's salary schedule.
'%/1�aa" with a past, efit wa a fataee J/
210 Fidalgo Ave, Kenai, Alaska 99611 -7794
Telephone: (907) 283 -7535 1 Fax: (907) 283 -3014
file cif l a f www.kenai.city
KENAI, ALASKA
Nv,
MEMORANDUM
TO:
Mayor Brian Gabriel and Kenai City Council
THROUGH:
Paul Ostrander, City Manager —l% O .
FROM:
Terry Eubank, Finance Director -1/0,
DATE:
May 31, 2017
SUBJECT:
FY2018 Budgeted Revenue Update
The purpose of this memo is to provide Council the latest update to FY2018 projected revenues
and the implications to the FY2018 Budget. On May 191 1 received first calendar quarter 2017
sales tax data from the Kenai Peninsula Borough. Projections for this quarter were a one - percent
decline in taxable sales compared to the same quarter of 2016. Taxable sales for this period
actually grew by 0.88 %. Year over year taxable sales have been negative for the previous 5
calendar quarters, a trend that was projected to continue through the calendar quarter ending
June 30, 2017.
Incorporating this new data into the FY2018 Budget slows the use of General Fund, Fund Balance
over the next few years. Compliance with the City's Fund Balance Policy, after update projections,
was confirmed. Attached is an updated General Fund Projection.
While not an absolute indication the slowdown in the local economy has ended, this is a positive
indication. Sales tax projections include the following assumptions:
1. Taxable sales for the second calendar quarter 2017 will decrease 1% compared to the
same calendar quarter of 2016.
2. Taxable sales for each calendar quarter of FY2018 will increase by 1 % year over year.
3. Taxable sales for each calendar quarter of FY2019 will increase by 1.5% year over year.
4. Taxable sales for each calendar quarter of FY2020 will increase by 2.5% year over year.
attachment
City of Kenai
Fiscal Year 2018
Operating Budget
General Fund
Budget Projection
Original
Actual
Actual
Budget
Projection
Proposed
Projection
Projection
FY2016
FY2016
FY2017
FY2017
FY2018
FY2019
FY2020
TAXABLE VALUES (000 -S)
$ 828,385
$ 851,638
$ 866,235
$ 868,724
$ 876,530
$ 899,157
$ 922,646
MILL RATE
4.35
4.35
4.35
4.35
4.35
4.35
4.35
REVENUES
Property & Sales Taxes
Property Tax
3,656,927
3,782,539
3,810,759
3,902,208
3,874,650
3,983,106
4,083,240
Sales Tax
7,257,451
7,247,938
7,329,099
6,936,040
6,962,613
7,067,052
7,243,535
Total Property & Sales Taxes
10,914,378
11,030,477
11,139,858
10,838,248
10,837,263
11,050,158
11,326,775
State /Federal Revenue:
PERS Funding
2,977,564
379,467
281,404
282,952
204,235
210,362
216,673
Community Assistance
441,046
415,798
277,930
278,232
170,598
129,651
63,946
Fish Tax
292,718
198,649
200,000
165,000
165,000
169,950
175,049
Other
81.058
155,849
58,000
66.150
58.000
60,900
63.945
Total State /Federal Revenue
3,792,386
1.149.763
817,334
792,334
597,833
570.863
519,613
Other Revenue
Licenses and Permits
71,973
62,629
76,500
63,000
63,500
65,405
67,367
Ambulance Fees
412,509
408,558
400,000
425,000
425,000
437,750
450,883
Interest
56,992
76,212
75,000
90,000
100,000
151,892
293,709
Other
636.453
587.224
644,805
626,374
605.895
513.347
528.747
Total Other Revenue
1,177,927
1,134,623
1.196.305
1.204.374
1,194,395
1,168,394
1,340,706
Total Revenues
15,884,691
13.314.863
13.153.497
12,834,956
12.629,491
12.789,415
13.187.094
Transfer From Other Funds
Charges to other funds
1,505,886
1,458,900
1,494,200
1,494,200
1,492,400
1,537,172
1,583,287
Capital Projects / Special Revenue
11
-
-
124,303
-
-
-
Enterprise
36,900
38,300
34,000
34,000
439,000
40,170
41,375
Trust Fund
147.093
148.009
149,802
150.993
152.193
153.403
Total Transfers
1.689.890
1.497.200
1.676,209
1.802,305
2,082.393
1.729,535
1.778,065
Total Revenues and Transfers
17.574.581
14,812,063
14,829,706
14,637,261
14.711.884
14.518.950
14.965.159
EXPENDITURES/APPROPRIATIONS
General Government
5,357,342
2,865,713
3,013,609
3,113,122
2,909,709
2,969,945
3,029,344
Public Safety
6,876,330
6,987,609
7,284,438
7,288,580
7,299,722
7,445,716
7,594,630
Public Works
2,269,516
2,251,812
2,381,685
2,395,685
2,375,314
2,422,820
2,471,276
Parks, Recreation & Cultural
1,911,792
1,993,809
2.156,949
2.172,679
2.125.189
2,167.693
2.211.047
Total Operating Expenditures
16,414,980
14,098,943
14,836,681
14,970,066
14,709,934
15,006,174
15,306,297
Transfers or Non - Operating
670,394
686,253
583,299
618.299
826788
598,952
609.421
Total Expenditures /Appropriations
17,085,374
14,785,196
15,419,980
15,588,365
15,536,722
15,605,126
15,915,718
Total Surplus (Deficit)
489,207
26,867
(590,274)
(951,104)
(824,838)
(1,086,176)
(950,559)
Projected Lapse -5%
-
-
741,834
748,503
735.497
750.309
765.315
Adjusted Surplus (Deficit)
489,207
26,867
151,560
(202,601)
(89,341)
(335,867)
(185,244)
Beginning Fund Balance
9.902.026
10.391.233
9,830,242
10,418,100
10.215.499
10.126.158
9.790,291
Ending Fund Balance
10,391,233
10,418,100
9,981,802
10,215,499
10,126,158
9,790,291
9,605,047
Restricted
(546,706)
(588,937)
(618,706)
(618,706)
(624,937)
(660,937)
(696,937)
Committed
(409,746)
(409,746)
(509,746)
(6,651,471)
(6,823,217)
(6,856,341)
(6,569,646)
Assigned
(1,497,756)
(1,409,610)
(1,776,805)
(2,370,141)
(2,378,978)
(2,273,013)
X2,338,464)
Unassigned Fund Balance
$7,937,025
$8,009,807
$ 7,076,545
$ 575,181
$ 299,026
$ -
$ -
June 7, 2017
Mayor and Council Members
City of Kenai
210 Fidalgo Avenue
Kenai, AK 99611
RE: Ordinance No. 2961 -2017, Adopting the Annual Budget for the Fiscal Year Commencing July 1,
2017 and Ending June 30, 2018 and Committing $1,000,000 of General Fund, Fund Balance for
Capital Improvements
Referring to the Council Members Pettey and Molloy memorandum included in the packet, I add my
support to their proposal to advance several amendments to the 2018 budget documents within the
Office of the City Clerk to provide the needed appropriations to increase the Administrative Assistant II
position (Deputy City Clerk) from a part-time position to a full -time position.
Providing a full -time Administrative Assistant II (Deputy City Clerk) position is not a new idea. During the
last probably ten years of my tenure as the Kenai City Clerk, I requested a Deputy Clerk position be
included in budgets. During the last several years, a part-time position was provided, but that position
was shared with the Finance Department. After my retirement, I was very pleased to learn the shared
part-time position was changed to provide two part-time positions, one for the Clerk's Office and one
for the Finance Department.
As stated in Council Members Molloy and Pettey's memorandum, the Office of the City Clerk is a major
point of contact and interaction for the public in a city government. The volume of business handled
and services performed (most of which is directed by the Kenai Municipal Code, the City Charter, and of
course, City Councils) warrants a full -time Deputy City Clerk position. A $35,067 increase associated
with providing the full -time position is a relatively small amount when weighed against the volume of
business, services performed, and expertise needed to carry out the responsibilities of the office.
As a former Kenai City Clerk and a taxpayer of the City, I support the increase to the budget to provide a
full -time Administrative Assistant II (Deputy Clerk position) in the Office of the City Clerk.
Caroa���/
609 Maple Drive
Kenai, AK 99611