HomeMy WebLinkAbout1985-04-21 Council Packet - Work SessionKenai City Council
Work Session
April 22, 1985
1985-86 Budget
Golf Course, RFP
Plan Holders list for Bids
Water, Sewer, Road to School off
Swires Road
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CITY OF KENAI
" Del eapd-d aG 4""
210 FIOAL00 KINAI, ALMM SMI
T"MONE M • 706
NOTICE OF WORK SESSION
There will be a work session of the Kenai City Council on Monday,
April 22, 1985 at 7100 PM in the Council chambers.
To be discuseeds
s, 1965-06 Budget
b, Golf Coursev RFP
c, Plan Holders list for Bids
d, Meter, Sewer, Road to School off Swires Rd,
Janet Whelan
City Clerk
OATEOt April 18, 1985
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Us Kenai city council
FROM Charles A. Brown, Finance Director
DAM April ti, 1983
CITY OF KENAI
J10FIDAWD NMNA11ALA/11A in"
Attached ago the proposed budgets as requested by the city Manager for
VY 84-06 for 1lsnor4l Fund, Airport Terminal Saterpriss Fund, water and
fewer 8peeial Revenue Fund, Airport Land System Special Revenue Fund,
1967 Debt Sorviao Fund, 1974 Debt Service Fund, and 1980 Debt Service
Fund,
to addition, t have enclosed other material Which should help you
review the budgets summary data by department showing the
percentage changes from the 1984-85 original 6onerat Fund budget, the
proposed 1989-86 pay scale, ate.
Salary budgets have boon proposed with an ever -all increase from
1984-83 of 4,5%, in addition, vs have changed the Supptementai
getireassnt from 2% to 42, and have eliminated the cap (i,e,, based on
the first 037,000), FRRS increased from 9,93%, to H AS%, Watch
insurance has boon increased from 03,900 per employe@ to 04,300,
t have used an average interest rate of 914 to calculate interest income
on investments, i have figured total interest on investments at
01,620,000, however, only 0844,500 of this to avaitobts to the 6enerat
Fund, 0315,000 is allocated (transferred) to the Airport Land Oystem,
3-- - . 090900 to Federal Revenue Sharing, 027,000 to the Airport Terminal,
and 03430000 to Debt oervice,
f1P,ORRAL FOOD
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Property Tassags Alt property tame era estimated at 0504#"0
(aomparied—vTt-fi 0480,210 last year), This is an incroaso of 4,1%,
4 This is based on 1,9 mils, which is no change from last year,
j Theraforo, a mit is worth about 0250,000, Agjoi knout the
I Borough did not rov41no Kenai property in 984.
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Sales Taxi i have estimated sales tax at $2,375000 (based
upon 3171 this compares with an estimate last year of
$2,000,00Q. a 1984-85 total will be
About $2,2000. Therefore, tie 965-86 estimate is an 82
increase over what i expect last year's actual to be. One
percent sales tax earns $791,667.
State Revanuesi State Revenue Sharing is estimated at
, This is an increase 4f $28,000, which is the amount of
pass -through money to two additional health facilities. Municipal
Assistance is estimated at 015405010 which is the old base amount
prior to this current per capita allocation method of
distribution, We actually hope to receive some 0800,000. The
excess Will be closed to Fund Balance at year and, and be
available for next year's appropriation. This was the
Legislature's original intent. Fish tax is estimated at
$200,000i we received 0215,000 in 1983-64.
Avorouriation of Fund lalancei This is not a true revenue
account, but is a Sa enc ag figure, it is $701,"0 this year,
and 0770,624 lost year. The current year amount is reasonable,
and does not damage the City's financial position, i have
estimated that unappropriated fund balance at 6-30-85 should
increase by $844,000 as a result of 1994-85 operations,
Therefore, one way to look at the $701,700 appropriation is that
we are simply using last year's unused monies. Based on this
amount of use, L expect unappropriated fund balance at 6- -
to be about At 6-30-84, unappropriated fund balance
was 84.14MM However,, we used $1,500,000 toward the F88
facility, So the unappropriated fund balance has not decreased
from operations; but from a one-time capital use. it next year's
operations are similar to 1984-85 operations, the $105000000
appropriation will be replaced in two years,
A workpaper is attached which details expenditure requests by
department, along with percentage increases, The
Hon -Departmental increase of 24,8'/. is primarily due to interest
transfers to other funds and not due to increases in costs.
The total increase in expenditures Over the 1984-85 original
budget is 0836,636, if we subtract the 0157,700 increase
in transfers, we arrive at an increase of about $679,000,
The primary reasons for thin increase are:
e,
MOWN
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Page 3
...f
Legal - Range change
$ 9,000
Police • 2 new officers
98,000
Police - Shift pay
8,000
Communications - Shift pay
3,000+
Public Works Admin. - 3 mo. temporary help 6,000
Streets - Increase in temp. help
7,000
Recreation • Increase in hglp
36,000
Parks/Beautification - Increase in help
• 10,000
4.5% salary increase
124,000
Step increases
33,000
Changes in Supplemental Retirement
57,000
Health insurance increase
26,000
PERS increase
33 000
TOTAL SALARY 6 BENEFIT INCREASE
0,000
Non -departmental - Flag poles
8,000
Non -departmental - Insurance
30,000
Non -departmental - Grants
28,000
Land - Professional services
6,000
Police - Operating coots
22,000
Fire - Operating costs
6,000
Public Works Admin. - Equipment
12,000
Streets - Operating costa
19,000
Streets - Equipment
9,000
Street lights - Operating costs
290. 00
'
Library - Operating costs
08000�
Parks - Operating costs
15,000
Beautification - cemetery
20,000
Other (Net)
10,000
000
Total personnel costs in the General Fund ,mount to about
$4,040,000 or 602 of the total budget.
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The following personnel matters need Council attention:
1) Legal Assistant: range change from 12 to 17.
2) Shift pay for Police and Dispatchers:
a) 2% of step "A" if shift begins after noon,
b) 4% of step "A" if shift begins after 6 pm,
c) eligible only if in shift status 75% of month.
3) Two new police officers.
4) An engineering technician for 3 months in Public Works.
5) Certification pay for paramedics at $1,500/year total.
6) Elimination of the cap on the supplemental retirement.
7) increase in the supplemental retirement from 22 to 42.
8) 4.5% overall salary raises.
For your review, the following are the number of employees
requested in this budget:
Full-time Equivalent
Clerk 1
Legal 3
City Manager 2
Finance 5
General Fund Lands 0.5
Police 15.25
Fire 13
Communication 7
Animal Control 2
P.W. Admin. 3.25
Shop 3
Streets 5.5
Building inspection 2
Library 3
Museum (832 hours) 0.4
Recreation - Full-time 5
Rec. - Part-time (9206 hours) 4.43
Parks - Part-time (4839 hours) 2.33
Beautification - P/T (2,100 hours) 1
Total General Fund 7T.-6r
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Water and Sewer 2.5
Sewer Treatment 2
Airport M b 0 root from Streets) 0.1
Airport Admin. 2
Airport Lands 0.5
City Total T.3 --T
Some budget changes you might be interested in area '
1) The building maintenance employee has been moved
from Public Works Administration to Building inspection.
2) We have created a new department called Beautification.
This also includes cemetery maintenance. Appropriate
costs have been removed from Parks.
Svc
The revenues, along with the appropriation of fund balance, are
adequate to support the expenditure level as requested by the
City Manager. Therefore, the mil rate of 1.9 and the
sales tax rate of 3% are sufficient.
Consider that 0795,000 of the total increase of $836,636 comes
from sales tax and interest income increases. The increase in
interest income is 0420,000. Below is a table showing
projections of interest income at various leveles
Assumed Total O/F
Rate inter` Interest
7� 1,260,000 580,500
82 1,440,000 712,500
97, 10620,000 844,500
What I've attempted to show here is the value, and
unpredictability, of interest income to the General Fund, if rates
drop to 7%, the General Fund would lose $264,000, Thin is more
that 1 mil.
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The City has planned sovaral projects that will, or might, be
built soons library addition, comotunity cantor, buy the land for
the pioneer home, ate. All of those will significantly impact
the operating budget. We've estimated that the community center
atone could cost 1 mil to operate. The potential 1080 of
Federal Revenue Sharing is bound to have a significant impact on
future budgets, especially as equipment needs to be replaced (a
1�-10000 dbrrp
frequent use by the City of those monies).
�s14s-3s•S
F�
Putting all this together, I believe that operating costa are
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going to begin to increase faetev than revenues in future years.
141. A
There will be upward pressure on the mil rate and, therefore,,
M,
pressure to reduce costs. I don't really expect this to be
substantial in 1986-07, but by 1987-88 (two years from now),
'
there could be some pressure on the mil rate,
AIRPORT TERMINAL
Thin fund has a total budget of $229,000, up from 0175,000 last
year. We have not budgeted for rental rates to increase from 84-85 ($1.25
for counter space and $1.15 for office space), however, I understand
that some changes in rates are being discussed. No appropriation of
retained earninge is required,
Actually, the expenses for operations have decreased. This total
Increase is simply because contingency increased from $5,518 to
$580669. The additional income is primarily from rentals,
WATER AND SEWER
The total budget is $632,000, up from $552,000 last year. This
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fund is in good shape. Revenues have increased steadily over the
lost few yearn, and there is no need to increase rates, to fact,
revenues are sufficient to increase total contingencies (in the 3
departments) to 065,846. These totalled $18,249 last year.
Personnel staffing is the same as lest year, except a request has
been made to add a 6-month temporary position at a cost of about
We are required to have aufficient sever charges to finance never
related expenditures (net of debt payments). Thin requirement
has been met.
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No appropriation of fund balance is required to finance this budget.
I expect unappropriated fund balance at 6-30-85 to be about 05870000
(up 025,000 from 6-30-84).
AIRPORT LAND SYSTEM
The total budget is $743,000, Without even budgeting for interest on
installment sales, ve have an excess of estimated revenues over
appropriations for 85-86 of about $360,000. This is represented by the
three contingency accounts. I expect the unappropriated fund balance
to be about 010250,000 at 6-30-85. •
i expect that we will sell about $3,000,000 of airport lands in
1904-85. When we add this to the $2,754,000 of previous land sales, we
should have about AAA t bg 6-3041,All of
this is drawing interest, Simply put, this to why this fund to so well
off.
DEBT SERVICE FONDS
1967 - Roo the needed $95,000 in fund balance.
1974 - The required $303,S00 is transferred from the General Fund
per ordinance.
1980 - The required $40,000 is transferred from the General Fund
per ordinance,
INFORMATION RELATED TO SEVERAL FONDS
Purvose
From
To
Amount
Insurance
Air Terminal
General
Fund
$ 30500
Accounting
Air Terminal
General
fund
4,000
Insurance
Airport Land System
General
Fund
30,000
Accounting
Airport Land System
General
fund
5,000
Equipment Repair
Airport Land System
General
Fund
25,000
Fire Protection
Airport Land System
General
Fund
13,000
Insurance
Water and Sever
General
Fund
6,500
Accounting
Water and Sewer
General
Fund
16,a00
Equipment Repair
Water and Sewer
Ganoral
Fund
5,000
Debt Repayment
Water and Sever
General
Fund
52,433
Lease cape
General Fund
Airport
Land System
45,000
Interest revenue
General Fund
Airport
Land System
315,000
Interest revenue
ffenerat Fund
Airport
Terminal
27,000
Interest revenue
General Fund
Fed, Rev. Sharing
90,000
interest revenue
General Fund
1980 Debt service
40,000
Interest revenue
general Nund
1974 Debt Service
303,500
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FINAL COMONT
It should be noted that the City Nanagor's, City Clerk's and City
Attorney's salaries have been included in the budget at amounts
comeneurate with other salary increases (Cola 6 Step). Separate
Council action is required an this matter.
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01411114 f1114111114-NuflURf.0
' DY CLPAIIIMEN IF
•
" • - „ ^ Dt'PAIIRTMISI'M .. NT •,,..,F•a . ,.. UI:NT..
_ tbtlii UJ ...
t1/H:1 .04
14. Wt
1)UDULI
19114 •05
._" WDUCI ..
19113-116
... ULPT.....
19115 -Ub
_ MANAt11;f(..
M1;R RV1; 314M,
NO.
AUtUAL
ACr1IAL.
tflrlrllNAh
f!1-;It-H:4
n[{CnMM.
Rt;ruMM.
.. .11111M
nn'o:, uRli1.
ULNUNAL UUVLRNNLNT_-_
_..
LEGIRI,ATIVrE
• GI IV CLHIK
41100
41140
!',n0We!
frig1t16
- i,I,I4h
46,9119
t101rY'i
1,51114
it;''/f1:
121900
" -City AtI:URFIL:Y..._, ..,,.....ali3p0
CITY MANAWf:R
,.
41:1r'0
, .140,."i>'r'....-
16;,731
__.__r.'v1,;±49
R)?,444
l:i,l'1G
P31,15U4
?_'1a,'ih!1
7.r1%
1I.0%
•• FINANI:R
411110
IS.';1 %(1?,
S140,;01"i
1.117, fl/?
iw,01:3
t4Yy7b'V
i?119,;!'111
I4:ig90G
i?'111,b45
1h01Gai
aIa,Imi
1l�9,l�!'i!
311,;?11:i
4.l,%
FT, KtlNAY 41 f1li0 19, 9'i l
9,311 7, 9'7q
1021
I U G 11
i,Qli:i,f'GU
O '11)0
1,079,7bq
rl
214,fl7,
PLANNING b 7UNINR
.,_,LAND.
41900
41920 __....,
7,041
7,401
32,U'il
Crf1�!►
1.1,990
4,01D
,'i13U
:M1,S9!',
W . 4%
•3H.3'/.
NAROUR CUNMi(lilt (IN
w TOTAL
419HO
_1419.31
J,O97
._..
L47
34,li Q ..
9,700
61•JIIM1
'),9U:1
"45,741
4,600
4SY11/A
P, tllp
/H.4%
(11T11:11AL pOVT.
1,544,050
3"1'011,2 5
1,/60,/100
1,941,441
2,031,004
PUdL'IC
•• " PUL1l;17
.-.... Mp -�
41+1Of)
n2?QR.
730,111
T_.U'/b,aa;i
7li,U74
,..,..7f,1'I,,675
9g11,am.1
..... 07791,451
'111?,540
I1llryOEM
1,0741P 4
4h?,,lut
1,q'1I,91,3
'7`.;l','aIt
T0.1tY,
11.0%
CUMM.
CUMMUNtt:ArtliFll�
�• ' ANIMAL CEINTRUL
48300
42900
Pub'll q
60,1of)
i!14001"1
679Gi11
....
1"1/,:;40
, -.,.
217'sa?
.
:14;1,1f)/
_ .
all/,sUUI
W.J%
' a,�.n„tp.T1►t.. PIJEIL,{C.,t3AE.4T._Y_,.__..._....=,.,f.s9Q.1,.i.Z3..�1wfJ4c�N1A7,o..�.J7lba��..�.,3a,1RL•�.3°,i__?,•.336t1,1'1.,
93,166 93,2)99 99,1/I
a3�!41.Z.h�l�..--...
t:1. /'�.
'+ 171101, IC Wain
ADMIHJOTRAf1QN___,_,43110...
..r,O1
i/a,37a ,,.UII/F
?:3141;
8?4
+14
'� " 111111?lilt;
411130
,."ot)31Y,154G
aifl, I'm
32fj,2'13
3llgU
2%. 'floo
,_?3,,41t3
200,361
391,944
.. r0i1
t,,0
dlU •9M1
it,1%
>0..,17U1LO1Nll,1NI3F'LC1:IlIN....."..,,431A0=,..._.,.'r'U,if2123,1FEIt1_�_. ",m QTRRRT LINHTiNG 43160
TOTAL P118L I C, WORKSQli21064
42,f101
57,070
921, 309
6E1,000
qP0, 697
81,012
973,409
Q0,000
1, tub, 069
'1;4,g0q
1, 0';r 7,.,m
M1'.1.'1%
L111RARV P, MU(IFAIII
„._ ...,.
_, ..,.I_.. _......__..._...�
_ .._
`
,
.`
%• 1.111NM[Y
.._....MyTOSTA
44010
16r,049 176,603
17;1,904
rU%,9b4
204,9-51
191',On,
11011,..f,
t T17TA1. 1 iF31t. 1r MUOP.LIM
1 b[1, bli6
193, 496
_,.___sa,t97..,,,__._11.•4't9.
165, 905
221' 161
216, 441
.-----.11,4110
200, 211 b
..P.ARK9 ►U.RLCRRAT.IUN__.,__.
`' 01,111FA111114
1 ANWJ
41;010
40040
1ti1,11!i'7
611,1141
cgn,:d�!i
t(lll,c?Aq
i'i'110/
Ip/,/,rtl!i
i'i'!., Iht
114,4/•9
"l11,'f,04
"110,4Ptl
. QEAU11F iL'A11UW_ . n --
TOTAL PARKO rk REiCR.
4 0_.._-,•
.., -. 0 _...,.
141P,'?0:1
_..... -_Q ,
i:i,tl'''i
, _.
II.Q's
►4/A
P,00,700
304,945
:tali,7ti1
339,634
4a0,?a,I
_63,710
43'1,774
a1,f1'/,
,0_-_ Q__
.40,433 _.
412.601
JIW,42121..
41w,4.114
U,(M/,
TOTAL OFNF,RAL FUND
4, 6119, 44,7
6, 7r� 092
5, 93q, 07H
6, 017, 617
/1 /'i t , 119,1
is, bhb, 7 l 4
14 , 4'/,
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4.5% CITY OF KENAI
INCR. FISCAL YEAR 1985-86
SALARY STRUCTURE BY BRAOE
(KMC 23.55.020)
RANBE A 8 Ct 0 E F AA es c;f;
3 199342 199826 209310 209794 219278 219762 229246 229130 239 214
7 239510 249106 249694 259282 259870 269458 27,046 27,634 209222
8 249702 259320 259938 269536. 279174 .27,792 289410 29902.0 299646
9 2259927 269575 279223 279871 289519 299167 299815 309463 319111
10 279218 279898 289578 299258 299938 309618 3192?8 319978 3296:58
11 209576 299290 309004 309718 319432 329146 329860 339574 349289
12 309017 30,767 319517 329267 339017 339767 349817 359 267 369017
13 319498 329285 339072 33,859 349646 359433 369220 379007 379794
14 339093 339920 349747 339574 369401 379228 389055 389882 37970-7
15 349749 359618 369487 379356 3fl,225 399094 399963 409832 419701
16 369469 379381 389293 379205 409117 419029 41,941 429853 439765
17 309299 399256 4092.13 419170 429127 439094 449041 449998 459955
18 409213 41,218 429223 439228 449233 459238 469249 419248 4812M
19 429214 439269 449324 459379 469434 479489 489544 499599 509654
20 449345 459454 469563 47,672 48,781 499890 50,9'19 529108 539817
21 469564 479720 489892 509056 519220 529304 539548 549712 559876
22 489863 509083 519307 529529 539751 549973 569195 579417 599637
.23 V19314 529597 539800 559163 569446 579729 599012 609295 619578
24 539950 559299 569648 579997 599346 609695 629044 639393 649742
P'1-1
4.93
PT-2
5.28
f' 1'-3
U.62
P r-4
3.97
pi-5
6.?9
PT-6
6.64
PT-7
6.98
P•r•-8
8.15
PT-9
9.24
,s
L - -- - L — ---- — - L. - --'-- ---- --'-