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HomeMy WebLinkAbout2004-04-19&27 Council Packet - Work SessionKenai City Council Budget Work Sessions April 19, 2004 April 27,2004 April 12, 2004 April 19, 2004 BUDGET WORKSESSION SCHEDULE CITY COUNCIL CHAMBERS 6:00-9:00 P.M. Budget Overview City Manager/Finance Director Council Policy Discussion on Revenue General Fund Water & Sewer Fund Airport Fund Department Budgets Page Legislative Council pg: 28 Debt Service Fund Permanent Funds General Land Trust Fund Airport Land Trust Fund Larry Semmens pg: 149 pg: 162 pg: 162 CITY COUNCIL CHAMBERS 6:00-9:00 P.M. Airport Funds: Rebecca Cronkhite Airport Land System Special Revenue Fund Admin/M&O/Land Airport Terminal Enterprise Fund pg: 120 pg: 154 Senior Citizen Funds Rachael Craig Senior Citizens Title III Grant Fund Choice Waiver Fund Senior Citizens Borough Grant Fund Congregate Homing Enterprise Fund pg: 132 pg: 146 pg: 142 pg: 159 Water & Sewer Fund Water Sewer Sewer Treatment Plant General Fund Safety Streets Street Lighting Dock Keith Komelis pg: 108 pg: 112 pg: 116 Keith Komelis pg: 51 pg: 78 pg: 86 pg: 102 Recreation Parks Beautification Bob Frates pg: 93 pg: 96 pg: 99 April 27, 2004 CITY COUNCIL CHAMBERS 6:00- 9:00 P.M. General Fund Library Ewa Jankowska pg: 89 Fire Scott Walden pg: 58 Police Chuck Kopp pg: 54 Communications pg: 62 Animal Control pg: 66 Planning & Zoning Jack LaShot pg: 48 Public Wrks. Admin. pg: 70 Shop pg: 74 Buildings pg: 82 Legal Cary Graves pg: 32 City Manager Linda Snow pg: 35 Land Admin. Linda Snow pg: 41 Non-Departmental Snow/Scmmens pg: 44 Finance Larry Semmens pg: 38 Clerk Carol Frcas pg: 23 Visitors Center pg: 26 Equipment Replacement Fund Schedule Wrap up pg: 166 Council Present: Council Absent: Staff Present: KENAI CITY COUNCIL BUDGET WORK SESSION KENAI CITY COUNCIL CHAMBERS APRIL 19, 2004 6:00 P.M. VICE MAYOR JAMES C. BOOKEY~ III~ PRESIDING Jim Bookey, Pat Porter, Linda Swamer, Joe Moore, Blaine Gilman and Rick Ross John Williams Carol Freas, Linda Snow, Cary Graves, Ewa Jankowska, Scott Walden, Jack La Shot, Chuck Kopp, Kim Wannamaker, Larry Semmens, Rachael Craig, Keith Komelis, Earl Hicks, Rebecca Cronkhite, Bob Frates Vice Mayor Bookey opened the work session at approximately 6:02 p.m. Finance Director Semmens noted $13,000 had been added back into the budget during the April 12 work session through consensus of the council. Discussion followed in which some council stated they felt the consensus was to add the amounts into the budget, but all the changes would be reviewed at the end of the work sessions at which time it would be determined the ramifications of the suggested changes and whether the changes should stay in. Bookey suggested a fourth work session be added to review all changes made, etc. Finding: Consensus of council was to list suggested changes which would be reviewed after review of the entire budget. The list could then be prioritized and a consensus would be used to decide whether the changes should remain or not. It would take four members to agree to add a change to the list which will be discussed at the end of the work sessions. Airport Funds: Airport Land System Special Revenue Fund · M&O -- Airport Manager Cronkhite and Operations Supervisor Hicks reviewed this budget and discussed the request for funds to purchase a tractor/mower/brushhog and the merits in doing so. Discussion also took place regarding sale of airport lands versus leasing, and what the minimum fund balance should be. Findings: Council consensus was not to make any changes to this budget and to discuss the fund balance minimum during a work session. · Administration-- Cronkhite reviewed the budget. Highlights of discussion included transportation increase, insurance costs and advertising, i.e. the Milepost advertisement. BUDGET WORK SESSION APRIL 19, 2004 PAGE 2 Findings: Council consensus was to remove the $3,000 for the Milepost advertisement and to add the $3,000 for the advertisement on the list of suggested expenditures. There were no other changes. · Airport Land-- Findings: There were no changes. · Airport Terminal -- Cronkhite noted the contract for wall/sign advertisements in the terminal would end in three years and there are local businesses in the community who are not pleased with the company because of the high cost for the advertising space. Findings: There were no changes. Senior Center Funds: Senior Citizens Title IIII Grant Fund -- Director Craig reported the in-kind match had to be raised which was covered by the increase in the rate of rentals. Findings: There were no changes. Choice Waiver Fund Findings: There were no changes. Senior Citizens Borough Grant Fund -- It was noted the fund balance continually increases in this fund. It was noted, the fund balance is used to cover the purchase of vehicles or pay utilities, i.e. items not paid for by the General Fund. Findings: There were no changes. Congregate Housing Enterprise Fund -- Craig noted the estimated cost for maintenance to the siding of the building is $125,000. Council discussed the need to have the work done and whether it should be held until next year. It was noted the cost of maintenance could be paid for by the housing's equipment replacement fund which would take approximately three years to build back up after this expenditure. Findings: Council consensus was to put the building siding maintenance on the list and bring back to council as much information as possible for their review, i.e. what will $125,000 buy, will the process include sandblasting or steam, etc. Vintage Pointe building maintenance needs will be included on the building maintenance schedule. There were no other changes. BUDGET WORK SESSION APRIL 19, 2004 PAGE 3 BREAK TAKEN: 7:29 P.M. WORK SESSION RESUMED: 7:40 P.M. Water and Sewer Fund: · Water -- It was noted administration was supporting an increase in the rate to fund forthcoming projects. A lengthy discussion followed related to printing and binding costs for the Consumer Confidential Reports (CCR's) and the budgeted purchase of a new vactor truck. Findings: Consensus of council was for the budgeted amount for printing of CCR's be left in the budget but to do the project in the cheapest manner (which could be doing in-house) and to remove the vactor truck purchase from this budget. Sewer -- Findings: Consensus of council was to remove the purchase of vactor truck (2/3 cost ~ $163,333). There were no other changes. Water/Sewer Treatment Plant -- Findings: There were no changes. General Fund: Safety -- Findings: There were no changes. · Streets -- Findings: Consensus of council was to include $60,000 for dust control. There were no changes. Street Lighting-- Findings: There were no changes. · Dock -- Findings: There were no changes. BUDGE~ WORK SESSION APRIL 19, 2004 PAGE 4 Recreation -- Director Frates reviewed' the budget and noted funds were included for the purchase of a new snow machine for trail grooming. Porter suggested the funds for this purchase be taken from the Daubenspeck account. Findings: Place the funding of the snow machine (Recreation or Daubenspeck account) on the list, though the machine will be purchased. No other changes to this budget. · Parks -- The addition of sidewalks to Memorial Park were discussed. Frates reported he had received an estimate of $30,000 which would add two loops and an extended sidewalk. Those funds were removed from the draft budget, however. Porter and Swarner suggested a compromise of $15,000. Gilman and Moore agreed. Findings: Consensus of council was to add $15,000 to the list for placement of additional sidewalks at Memorial Park. Frates is to bring back the cost for one loop. There were no other changes. Beautification -- Findings: Consensus was to not make any changes to this budget. Wrap-Up: · Semmens was requested to provide a print out of the list of changes for the next work session · Ross requested a year-end report for the ice facility. · A fourth work session was scheduled for May 3. The work session concluded at approximately 9:00 p.m. Notes prepared by: Carol L. Freas, City Clerk COMMISSION! COMMITTEE MEETING COST SCENARIOS: ® Monthly Meetings -- More Detailed Minutes w/Attendant Commission/Committee Meetings Meeting Contract -- TOTAL {Harbor, Parks, Airport, Time/ Secretary Fee Library, Beautification} Minute Prep. Per Hour Estimate 5 x 12 X 4 hours $30.00 $~,200 , Planning ~k Zoning 24 X 4 hours $30.00 2,880 $9,080 ,1, Monthly Meetings -- Meeting Summary w/Attendant Commission/Committee Meetings Meeting Contract -- TOTAL {Harbor, Parks, Airport, Time/ Secretary Fee Library, Beautification} Minute Prep. Per Hour Estimate 5 x 12 X 3 hours $30.00 $5,400 Planning ~s Zoning 24 X 4 hours $30.00 2,880 .... $8,280 o Bi-Monthly Meetings -- Meeting Summary w/Attendant Commission/Committee Meetings Meeting Contract -- TOTAL IHarbor, Parks, Airport, Time/ Secretary Fee Library, Beautification} Minute Prep. Per Hour Estimate 5 x 5 X 4 hours $30.00 $3,100 Planning ~s Zoning 24 X 4 hours $30.00 2,880 $s,~8o MEMORANDUM TO: FROM: DATE: SUBJECT: City Council Larry, Semmens, Finance Director April 29, 2004 Budget Scenario's There are three General Fund budget scenario's represented by the attached. 1. The first is to reflect the items proposed in the worksessions. There is $83,200 in additional appropriations and a reduction of $62,078 in revenue from Congregate Housing. This increases the FY 2005 deficit and decreases the available fund balance. 2. The second includes the above and the COLA is reduced to 5%. Since this reduces appropriations by about $90,000 the deficit is reduced and available fund balance is increased. 3. The third includes the above and reduces the mill rate to 4. This reduces revenue, therefore the deficit increases and available fund balance decreases. If you have other scenario's that you would like to see the numbers on, please call me as soon as possible. BUDGET PROJECTION - GENERAL FUND - Reflecting Council Changes Original Actual Budget Projection FY 2003 FY 2004 FY 2004 Budget FY 2005 TOTAL ASSESSED VALUE $ 356,392,843 $ 388,310,000 $ 388,310,000 $ 399,959,300 REVENUE Property Tax Sales Tax MILL RATE 3.50 5.00 5.00 5.00 $ 1,410,203 $ 2,000,000 $ 2,044,000 $ 2,123,000 3,953,561 3,060,000 $ 3,600,000 $ 3,850,000 State/Federal Revenue: Revenue Sharing Safe Communities and Muni. Asst. Fish Tax Other Total State/Federal Revenue 98,264 73,500 151,892 - 204,718 153,750 - - 90,117 75,000 40,000 75,000 80, 911 49,000 227,000 49,000 474,010 351,250 418,892 124,000 Other Revenue: Licenses and Permits Ambulance Fees Interest Other Total Other Revenue 64,988 53,900 70,800 60,300 166,465 135,000 150,000 150,000 315,869 210,000 205,000 225,000 1,21 8,621 568,765 586,585 608,800 1,765,943 967,665 1,012,385 1,044,100 Total Revenue 7,603,717 6,378,915 7,075,277 7,141,100 Transfers From Other Funds Charges to other funds Enterprise Trust Fund Total Transfers 933,800 971,600 976,700 1,007,000 69,946 50,200 50,000 - 25,930 25,000 20,000 17,000 1,029,676 1,046,800 1,046,700 1,024,000 8,633,39.3. 7,425,715 8,121,977 8,165,100 TOTAL REVENUES AND TRANSFERS EXPENDITURES/APPROPRIATIONS General Government Public Safety Public Works Parks, Rec. & Cultural 1,439,983 1,544,842 1,679,790 1,648,861 3,437,169 3,553,847 3,626,320 3,951,116 1,595,903 1,71 2,968 1,756,544 1,944,548 1,253,408 1,013,435 1,105,598 1,114,024 Total Operating Expenditures 7,726,463 7,825,092 8,168,252 8,658,549 Operating (Deficit)/Surplus before transfers Transfers to Capital Projects Other Transfers or Non Operating Total Transfers and Non Operating Total Expenditure/Appropriation 906,930 (399,377.) (46,275) (493,449) 4,841,490 108,102 61,100 7,100 - 726,899 25,000 25,000 65,693 835,001 86,100 32,100 65,693 - 8,561,464 7,911,t92 8,200,352 8,724,242 Total Deficit/Surplus 71,929 (485,477) (78,375) (559,142) Projected lapse 735,143 432,927 Adjusted (Deficit)/Surplus Residual Equity Transfers Beginning Fund Balance 71,929 (485,477) 656,768 (126,215) 8,130,705 7,299,620 8,202,634 8,859,402 Ending Fund Balance Encumbrances Reserves and Designations 8,202,634 6,814,143 8,859,402 8,733,187 (163,054) (300,000) (200,000) (200,000) (2,488,830) .. (2,161,439) (2,574,518) 12,701,405) Unres. Undesignated Fund Balance $ 5,550,750 $ 4,352,704 $ 6,084,884 $ 5,831,782 ,, TOTAL ASSESSED VALUE REVENUE Property Tax Sales Tax BUDGET PROJECTION -GENERAL FUND- Reflecting Council Changes Projection Projection Projection Projection Projection FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 $411,958,079 $424,316,821 $437,046,326 $445,787,253 $459,160,870 MILL RATE 5.00 5.00 5.00 5.00 5.00 $ 2,142,182 $ 2,206,447 $ 2,272,641 $ 2,318,094 $ 2,387,637 3,965,500 4,084,465 4,206,999 4,333,209 4,463,205 State Revenue: Revenue Sharing Safe Communities and Muni. Asst. Fish Tax Other Total State Revenue 100,000 100,000 100,000 100,000 100,000 55,000 55,000 55,000 55,000 55,000 155,000 155,000 155,000 155,000 155,000 Other Revenue: Licenses and Permits Ambulance Fees Interest Other Total Other Revenue 50,000 50,000 50,000 50,000 50,000 150,000 150,000 150,000 150,000 150,000 300,000 325,000 350,000 400,000 400,000 600,000 600,000 600,000 600,000 600,000 1,100,000 1,125,000 1,150,000 1,200,000 1,200,000 Total Revenue 7,362,682 7,570,912 7,784,640 8,006,303 8,205,842 Transfers From Other Funds Charges to other funds Enterprise Trust Fund Total Transfers TOTAL REVENUES AND TRANSFERS (62,078) EXPENDITU RES/APPROPRIATIONS General Government Public Safety Public Works Parks, Rec. & Cultural 1,037,210 1,068,326 1,089,693 1,111,487 1,133,716 - 75,000 75,000 75,000 75,000 15,000 22,000 30,000 30,000 30,000 1,052,210 1,165,326 8,414,892 8,736,239 1,731,304 1,817,869 4,148,672 4,356,106 2,041,775 2,143,864 1,169,725 1,228,211 1,194,693 1,216,487 1,238,716 8,979,333 9,222,789 9,444,558 1,872,405 1,928,577 1,986,435 4,486,789 4,621,393 4,760,035 2,208,180 2,274,425 2,342,658 1,265,057 1,303,009 1,342,099 Total Operating Expenditures Operating (Deficit)/Surplus before transfers Transfers to Capital Projects Other Transfers or Non Operating Total Expenditure/Appropriation (83,200) Total Deficit/Surplus Projected lapse (5%) Adjusted (Deficit)lSurplus Beginning Fund Balance Ending Fund Balance Encumbrances Reserves and Designations Unreserved Undesignated Fund Balance 9,091,476 9,546,050 9,832,432 10,127,404 10,431,227 (676,584) (809,811 ) (853,099) (904,6! 5) (986,668) 26,000 26,000 26,000 26,780 27,583 26,000 26,000 26,000 26,780 27,583 _ - 9,117,476 9,572,050 9,858,432 10,154,184 10,458,810 (702,584) (835,811 ) (879,099) (931,395) (1,01 4,252) 454,574 477,303 491,622 506,370 521,561 (248,010) (358,508) (387,477) (425,025) (492,691) 8,733,187 8,485,177 8,126,669 7,739,192 7,314,167 8,485,177 8,126,669 7,739,192 7,314,167 6,821,476 (200,000) (200,000) (200,000) (200,000) (200,000) (2,342,729) (2,371.,698) (2,409,24.6.) (2,476,912) (2,382,0.00) $ 5,942,44~ $ 5,554,971 $ 5,129,946 $ 4,637,255 $ 4,239,476 BUDGET PROJECTION- GENERAL FUND -' ,.~ Original Actual Budget Projection FY 2003 FY 2004 FY 2004 TOTAL ASSESSED VALUE Budget FY 2005 $ 356,392,843 $ 388,310,000 $ 388,310,000 $ 399,959,300 REVENUE Property Tax Sales Tax MILL RATE 3.50 5.00 5.00 5.00 $ 1,410,203 $ 2,000,000 $ 2,044,000 $ 2,123,000 3,953,561 3,060,000 $ 3,600,000 $ 3,850,000 State/Federal Revenue: Revenue Sharing Safe Communities and Muni. Asst. Fish Tax Other Total State/Federal Revenue 98,264 73,500 151,892 - 204,718 153,750 - - 90,117 75,000 40,000 75,000 80,911 49,000 227,000 49,000 474,010 351,250 418,892 124,000 Other Revenue: Licenses and Permits Ambulance Fees Interest Other Total Other Revenue Total Revenue 64,988 53,900 70,800 60,300 166,465 135,000 150,000 150,000 315,869 210,000 205,000 225,000 1,21 8,621 568,765 586,585 608,800 1,765,943 967,665 1,012,385 1,044,100 7,603,717 6,378,915 7,075,277 7,141,100 Transfers From Other Funds Charges to other funds Enterprise Trust Fund Total Transfers TOTAL REVENUES AND TRANSFERS 933,800 971,600 976,700 1,007,000 69,946 50,200 50,000 - 25,930 25,000 20,000 17,000 1,029,676 1,046,800 1,046,700 1,024,000 8,633,393 7,425,715 8,121,977 8,165,100 EXPE N DITU RES/APPROPRIATIONS General Government Public Safety Public Works Parks, Rec. & Cultural 1,439,983 1,544,842 1,679,790 1,636,492 3,437,169 3,553,847 3,626,320 3,899,240 1,595,903 1,71 2,968 1,756,544 1,927,662 1,253,408 1,013,435 1,105,598 1,105,110 Total Operating Expenditures Operating (Deficit)/Surplus before transfers Transfers to Capital Projects Other Transfers or Non Operating Total Transfers and Non Operating Total Expenditure/Appropriation Total Deficit/Surplus Projected lapse Adjusted (Deficit)/Surplus Residual Equity Transfers Beginning Fund Balance Ending Fund Balance Encumbrances · Reserves and Designations Unres. Undesignated Fund Balance 7,726,463 7,825,092 8,168,252 8,568,504 906,930 (399,377) (46,275) (403,404) 4,841,490 108,102 61,100 7,100 - 726,899 25,000 25,000 65,693 835,001 86,100 32,100 65,693 - 8,561,464 7,911,192 8,200,352 8,634,197 71,929 (485,477) (78,375) (469,097) 735,143 428,425 71,929 (485,477) 656,768 (40,672) .... 8,130,705 7,299,620 8,202,634 8,859,402 8,202,634 6,814,143 8,859,402 8,818,730 (163,054) (300,000) (200,000) (200,000) (2,488,830) (2,161,439) (2,484,473) (2,606,859) 5,550,750 $ 4,352,704 $ 6,174,929 $ 6,.011,871 TOTAL ASSESSED VALUE BUDGET PROJECTION- GENERAL FUND- ~'"'~O ~.~' O~ '~ Projection Projection Projection Projection Projection FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 ii $411,958,079 $424,316,821 $437,046,326 $445,787,253 $459,160,870 REVENUE Property Tax Sales Tax MILL RATE 5.00 5.00 5.00 5.00 5.00 $ 2,142,182 $ 2,206,447 $ 2,272,641 $ 2,318,094 $ 2,387,637 3,965,500 4,084,465 4,206,999 4,333,209 4,463,205 State Revenue: Revenue Sharing Safe Communities and Muni. Asst. Fish Tax Other Total State Revenue 100,000 100,000 100,000 100,000 100,000 55,000 55,000 55,000 55,000 55,000 155,000 155,000 155,000 155,000 155,000 Other Revenue: Licenses and Permits Ambulance Fees Interest Other Total Other Revenue 50,000 50,000 50,000 50,000 50,000 150,000 150,000 150,000 150,000 150,000 300,000 325,000 350,000 400,000 400,000 600,000 600,000 600,000 600,000 600,000 1,100,000 1,125,000 1,150,000 1,200,000 1,200,000 7,362,682 7,570,912 7,784,640 8,006,303 8,205,842 Total Revenue Transfers From Other Funds Charges to other funds Enterprise Trust Fund Total Transfers TOTAL REVENUES AND TRANSFERS 1,037,210 1,068,326 1,089,693 1,111,487 1,133,716 - 75,000 75,000 75,000 75,000 15,000 22,000 30,000 30,000 30,000 1,052,210 .. 1,165,326 !.,194,693 . 1,216,487 1,238,716 8,414,892 8,736,239 8,979,333 9,222,789 9,444,558 EXPENDITURES/APPROPRIATIONS General Govemment Public Safety Public Works Parks, Rec. & Cultural 1,718,317 1,804,233 1,858,360 1,914,111 1,971,534 4,094,202 4,298,912 4,427,879 4,560,716 4,697,537 2,024,045 2,125,247 2,189,004 2,254,675 2,322,315 1,160,366 1,218,384 1,254,936 1,292,584 1,331,361 Total Operating Expenditures 8,996,930 9,446,776 9,730,179 10,022,085 10,322,747 Operating (Deficit)/Surplus before transfers (582,038) . (710,537) (750,847) (799,295) (878,189) Transfers to Capital Projects Other Transfers or Non Operating Total Expenditure/Appropriation 90,045 Total Deficit/Surplus Projected lapse (5%) 26,000 26,000 26,000 26,780 27,583 26,000 26,000 26,000 - . 9,022,930 9,472,776 9,756,179 26,780 27,583 10,048,865 10,350,331 Adjusted (Deficit)/Surplus Beginning Fund Balance (608,038) (736,537) (776,847) (826,075) (905,772) 449,847 472,339 486,509 501,104 516,137 Ending Fund Balance Encumbrances Reserves and Designations Unreserved Undesignated Fund Balance (158,191) (264,198) (290,338) (324,971) (389,635) 8,818,730 8,660,539 8,396,341 8,106,003 7,781 032 8,660,539 8,396,341 8,106,003 (200,000) (200,000) (200,000) (2,248,419) (2,274,559) (2,309,192) 6,212,120 $ 5,921,782 $ 5,596,811 7,781,032 7,391,396 (200,000) (200,000) (2,373,856) (2,382,000) $ 5,207,175 $ 4,809,396 BUDGET PROJECTION - GENERAL FUND - 5% COLA, 4 mill rate Original Actual Budget Projection FY 2003 FY 2004 FY 2004 TOTAL ASSESSED VALUE Budget FY 2OO5 ii i $ 356,392,843 $ 388,310,000 $ 388,310,000 $ 399,959,300 REVENUE Property Tax Sales Tax MILL RATE 3.50 5.00 5.00 4.00 $ 1,410,203 $ 2,000,000 $ 2,044,000 $ 1,722,000 3,953,561 3,060,000 $ 3,600,000 $ 3,850,000 State/Federal Revenue: Revenue Sharing Safe Communities and Muni. Asst. Fish Tax Other Total State/Federal Revenue 98,264 73,500 151,892 - 204,718 153,750 - - 90,117 75,000 40,000 75,000 80,911 49,000 227,000 49,000 474,010 351,250 418,892 124,000 Other Revenue: Licenses and Permits Ambulance Fees Interest Other Total Other Revenue Total Revenue 64,988 53,900 70,800 60,300 166,465 135,000 150,000 150,000 315,869 210,000 205,000 225,000 1,21 8,621 568,765 586,585 608,800 1,765,943 967,665 1,01 2,385 1,044,100 7,603,717 6,378,915 7,075,277 6,740,100 Transfers From Other Funds Charges to other funds Enterprise Trust Fund Total Transfers TOTAL REVENUES AND TRANSFERS 933,800 971,600 976,700 1,007,000 69,946 50,200 50,000 - 25,930 25,000 20,000 17,000 1,029,676 1,046,800 1,046,70..0.. 1,024,000' 8,633,393 7,425,715 8,121,977 7,764,100 EXPE N DITU RES/APPROPRIATIONS General Government Public Safety Public Works Parks, Rec. & Cultural 1,439,983 1,544,842 1,679,790 1,636,492 3,437,169 3,553,847 3,626,320 3,899,240 1,595,903 1,712,968 1,756,544 1,927,662 1,253,408 1,013,435 1,105,598 1,105,110 Total Operating Expenditures Operating (Deficit)/Surplus before transfers Transfers to Capital Projects Other Transfers or Non Operating Total Transfers and Non Operating Total Expenditure/Appropriation Total Deficit/Surplus Projected lapse Adjusted (Deficit)/Surplus Residual Equity Transfers Beginning Fund Balance Ending Fund Balance Encumbrances Reserves and Designations Unres. Undesignated Fund Balance 7,726,463 7,825,092 8,168,252 8,568,504 906,930 (399,377) (46,275) (804,404) 4,841,490 108,102 61,100 7,100 - 726,899 25,000 25,000 65,693 835,001 86,100 32,100 65,693 - 8,561,464 7,911,192 8,200,352 8,634,197 71,929 (485,477) (78,375) (870,097) 735,143 428,425 71,929 (485,477) 656,768 (441,672) 8,130,705 7,299,620 8,202,634 8,859,402 8,202,634 6,814,143 8,859,402 8,417,730 (163,054) (300,000) (200,000) (200,000) (2,488,830) (2,161,439) (2,885,473) 13,035,295) $ 5,550,750 $ 4,352,704 $ 5,773,929 $ 5,182,435 , , TOTAL ASSESSED VALUE REVENUE Property Tax Sales Tax BUDGET PROJECTION - GENERAL FUND - 5% COLA, 4 mill rate Projection Projection Projection Projection Projection FY 20IX1 FY 2007 FY 2008 FY 2009 FY 2010 $411,958,079 $424,316,821 $437,046,326 $445,787,253 $459,160,870 MILL RATE 4.00 4.00 4.00 4.00 4.00 $ 1,713,746 $ 1,765,158 $ 1,818,113 $ 1,854,475 $ 1,910,109 3,965,500 4,084,465 4,206,999 4,333,209 4,463,205 Sta~e Revenue: Revenue Sharing Safe Communities and Muni. Asst. Fish Tax Other Total State Revenue Other Revenue: Licenses and Permits Ambulance Fees Interest Other Total Other Revenue 100,000 100,000 100,000 100,000 100,000 55,000 55,000 55,000 55,000 55,000 155,000 155,000 155,000 155,000 155,000 50,000 50,000 50,000 50,000 50,000 150,000 150,000 150,000 150,000 150,000 300,000 325,000 350,000 400,000 400,000 600,000 600,000 600,000 600,000 600,000 1,100,000 1,125,000 1,150,000 1,200,000 1,200,000 Total Revenue 6,934,246 7,129,623 7,330,112 7,542,684 7,728,314 Transfers From Other Funds Charges to other funds Enterprise Trust Fund Total Transfers 1,037,210 1,068,326 1,089,693 1,111,487 1,133,716 - 75,000 75,000 75,000 75,000 15,000 22,000 30,000 30,000 30,000 1,052,210 1,165,326 1,194,693 1,216,487 1,238,716 TOTAL REVENUES AND TRANSFERS 7,986,456 8,294,949 8,524,804 8,759,171 8,967,031 EXPENDITURES/APPROPRIATIONS General Government Public Safety Public Works Parks, Rec. & Cultural 1,718,317 1,804,233 1,858,360 1,914,111 1,971,534 4,094,202 4,298,912 4,427,879 4,560,716 4,697,537 2,024,045 2,125,247 2,189,004 2,254,675 2,322,315 1,160,366 1,21 8,384 1,254,936 1,292,584 1,331,361 Total Operating Expenditures Operating (Deficit)/Surplus before transfers Transfers to Capital Projects Other Transfers or Non Operating Total Expenditure/Appropriation Total Deficit/Surplus Projected lapse (5%) 8,996,930 9,446,776 9,730,179 10,022,085 10,322,747 (1,010,474) (1,151,827) (1,205,375) (1,262,914) (1,355,716) 26,000 26,000 26,000 26,780 27,583 26,000 26,000 26,000 26,780 27,583 - - 9,022,930 9,472,776 9,756,179 10,048,865 10,350,331 (1,036,474) (1,177,827) (1,231,375) (1,289,694) (1,383,300) 449,847 472,339 486,509 501,104 516,137 Adjusted (Deficit)/Surplus Beginning Fund Balance (586,627) (705,488) (744,866) (788,590) (867,163) 8,417,730 7,831,103 7,125,615 6,380,749 5,592,159 Ending Fund Balance Encumbrances Reserves and Designations Unreserved Undesignated Fund Balance 7,831,103 7,125,615 6,380,749 5,592,159 4,724,996 (200,000) (200,000) (200,000) (200,000) (200,000) (2,689,709) (2,729,087) (2,772,811) (2,851,384) (2,724,996) $ 4,941,394 $ 4,196,528 $ 3,407,938 $ 2,540,775 $ 1,800,000 Council Changes from Draft Budget ,,,Department legislative legislative legislative Streets Parks Account Change Description 4533 $ 3,000 travel to DC 4534 10,000 advertising for city CD 4534 3,000 advertising for milepost 4538 60,000 Dust control 8063 15,000 concrete sidewalk Other Funds Congregate Housing Water Sewer airport admin 4538 8064 4534 91,000 125,000 repair maint exterior of bldg (245,000) vactor truck (3,000) milepost advertising (123,000) Ant CPI Soldotna Kenai 1996 .027 .035 1997 .030 .035 1998 .012 00 1999 .011 00 2000 .009 .02 2001 .024 00 2002 .027 * .0175 2003 .019 00 2004 .031 .019 .190 (.207) .1265 (.133) .02 00 .02 00 .015 00 00 00 00 .055 (.056) 1) 1996 was the last year that Kenai was close to the Ane CPI on biannual CPI adjustments to pay scales. It was also the year Kenai last did a salary survey of municipalities that was approved and implemented by Council. 2) Both Kenai and Soldotna during these years made downward adjustments in the medical plans of the employees and dependems. ~ Soldotna is presently in salary negotiations with its unionized employees. * Soldoma actually gave a .40/hr raise to its employees, and a .20/hr raise to upper management employees..40/hr = .02 on $20/hr and. 15 on $30. Get. a Ride! central.Area Rural:Transit System, Inc. A, Community Solution for Public Transportation P.O' Box 99.3 Sold0tna, AK 99669 907-262-8900 907-262-6122 fax ' Mayor council Members. iCity Manager · . Fi:dalg6 Ave'. 'Suite 200' ' . . ,',~:::i}~-:~:::'t:'?:'~.:'./~i::':'i:~'~}":.Centrat':Area'Rural Transit System, Inc. 'funding request for FY 2005 :~'¢'::~"-~'.'~;t~":~.?~?~:::).~?C~RTS continues to:grow~ We routinely scheduled and deliVered over-200 rides per"day this winter. We ?::?:t~,?':~-~:.??:}/~i~OreaChed:the notable .mileStone of 100,000 triPs' this JanUa*l I Can,t. tell.you hOw pleased'we'are.with '~:,~"?:;:',~'_~,;~:~.: ::,:.;;'~:C~a~s:'?~nt~Y'~i~d:-a Memorandum of A~eem~nt with the ~ndependent [iving center ~nd we ~~Y ~.:.Q::::.~?~}~-~;~;-~:t:b~]i:e~¢ Pa~nershiPS.-like this are si~ifiCant.'to' maximizing the. transp°gation-optiOns at the 'lOwest. C. oSt} .a~eCment is allowing' CARTS :to. offer an. eXpanded'Se~ice, Providing.-transportati°n to residents we :~(~':?~rept~evi°uslynot Se~ing: ~:we submitted a joint'appliCati°n to the.State DOT requesting ..~nds for the ?':'" '''''~ ' '~ continue:this partnerShip, and'that application has been recommended for ~nding~ The f~his-~C°llaboration ce~ainly contributed to o~-increase of 3,929 rides inthe first quarter-Of 2004 numbers~, - were a-warded grant funds to, purchase' a new' vehicle for central PeninSula .CoUnseling ' ;' 'We'have received the Vehicle' and are finalizing a contract between our tWO Organizations. aide just two examPles of the progress we-are making toWards fully coOrdinating the community.and ~SUre 'those who need'a ride can.get'one. [Ully request $5,000 appropriation from the City ,ofKenai for this-fiscal year. I haVe included iS. and will be'happy to. answer any questions you may have. ~, .Sincere'tyi APR~26-'04~MON 04'46 PM CITY OF KENAI P&REC~- 4 . FAX' 9079833693 PAGE 2 ~ , ~.:.,,: .., ,.~.:~ ,..., .. , · il:' ooo ~loo Z 0 ZEe ""o 0 "o 0 0 C~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 MEMORANDUM CITY OF KENAI 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 ~ TO: FROM' Through' DATE' SUBJECT: Rebecca Cronkhite, Airport Manager Mike Wichman, Shop Foreman ~ Jack La Shot, Public Works Manager,S- March 30, 2004 AP-36 The primary job of the 1987 Ford Tractor, AP-36, is to cut the brush on the Airport grounds, and its average work year is 90 to 120 days. This tractor is of European manufacturer, and all parts are ordered from Pioneer Tractor in Palmer. Since the parts come from overseas, the average parts order takes four to six weeks for delivery. This potentially places the tractor out of service during critical times. We have been encountering about a five-percent obsolete part problem and have to find good used pads wherever possible. The average maintenance cost for 120-day usage is $1,500 to $1,600 not including the down time. Therefore, I strongly recommend that the Airport replace this unit while we can still get a fair price for it. Water and Sewer Fund Replacement of 1984 Vactor Truck 1. The cab and chassis of our existing truck has 20 years of wear and tear. 2. The water tank was rebuilt 9 years ago, and it is ready to be rebuilt again. Nine years ago, it cost around $45,000. At that time, we could have purchased a new truck for around $171,000. Now it will cost $247,000. 3. The City of Kenai can piggyback a City & Borough of Juneau bid (prior to July 31, 2004) to get the truck for $247,000. . It is estimated that with the new emissions laws and the sharp increase in the price of steel, the price will increase an estimate of $7,000 if we wait another year. 5. The main water pump needs to be replaced or rebuilt at an estimated cost of $7-9,000. 6. The debris tank needs to be sandblasted and recoated again at an estimated cost of $ 5,000.00. 7. Our existing truck is the smallest truck Vactor made in 1984. We spend a large amount of time filling and emptying the truck that could be used in cleaning lines. The truck is too small to be efficient in our cleaning operations. The truck's manual transmission has to be constantly shifted because of the nature of the work being done causing additional concern of continuing the use of our old truck. . Our existing truck is approximately 80% maximum axle load when empty, and it is grossly overloaded when the debris tank is full. We have an overload permit for this truck, but even then the truck cannot be operated with full a load. 9. There are no contractors available to clean sewer lines. There are some suction and pumping trucks in this area but nothing that can clean lines. The local contractor does not like the waste we pull out of the sewer lines because it plugs their truck and rocks can blow their impellor. 10. If we do not purchase a new truck, we need to add at least $14,000.00 for repairs to make it through another year. If we have problems with the blower motor or the water tank the costs could be closer to $30 or $40,000.00. FISCAL YEAR 2005 CITY OF KENAI Budget Presentation April 12, 2004 ..... Budget Comparison ,FY 2004 to FY 2005 And Contribution To (From) Fund Balance Oriff, inal Contribution _ FY 2004 FY 2005 'Percent To (Frown.) Budr, et Budget O~ange Change .F. und Balance C~..ner,al Fund $ 7,911,192 $ 8,641,042 $ 729,850 9.23% $ (.41.3:864) Airport Terminal 469,094 481,093 11,999 2.56% (77,437.) Congregate Housing. 392,087 393,587 1,500 0.38% - Fiduciary Funds 50,0.00 42,000 (.8,000) -16.00% . Water and Sewer 1,401,487 1,657,847 256,360 18.29% 43,473 Airport Land. System 1,612~9.51 1,767,002 .154,051 9.55% (.881,235.) Senior citizens Title 111 261,331 190,616 (70,715.) -27.06% 757 Councilon Agin[~- Borou[~h 157,309 138,461 (18,848,) -11.98% 27,859 Choice Waiver - 102,398 102,398 - Debt Service 161,963 157,038 (4,925) -3.04% (155,525) ,. ..T.,o. tal $ .12,417,414 $ 13,571,084 $ 1,153,670 9.29% $ (1,455;972) City Of Kenai Fiscal Year 2005 Operating Budget Revenue and Expenditure Summary of All Funds ' General Special Debt EnterpriseFiduciary Total Fund Revenue Se~ce Funds Funds All Funds REVENUES T~xes ' ''$ 5,973,000 $ $ $ -$ $ 5,973,000 ... . State/Federal 124,000 216.367 340,367 ..... Interest 225,{:X)0 404 0{30 59,000 42,000 730,000 Other 819, i00 2,376,8441,513 535,300 3,732,757 Transfers In ..1,086,07849,967 . 1,136,045 ~'~t~l ReVenues 8,227,1783,047.178 1,513 . .594,300 42,000 11,912,169 EXPENDITURES/EXPENSES8,641,0423,856,324 157,038 874,680 42,000 13,571 ?84 .. Contribution to (from) Fund Balance/Retained Eamin~ls (413.864)(809,146) (155,525)(280,380)i (1,658,915) Add Credit From Depreciation 174,077 174,077 Projected lapse/encumbrances 428,767 155,755 28.866 - 613,388 Adj.usted Deficit/Su~.lUS 14,903 (653,3911... (155,525) . (77,437) (871,450) Beginning Fund Balance/ Retained Earnings $ 8,859,402 $ 6,320,618 $ 155,525$ 1,857,809 $ 13,386,005 $ 30,579,359 Endin~i Fund Balance/ Retained Eamings $ 8,874,,3C~, ,$ 5,667,227 $ ', S 1,78,0,37,2 ,$ ,13.,386,,005 ,$,, 29,707,90? ALL FUND REVENUES $13,571,084 Fund Balance 12% Transfers In 8% Taxes 44% Other 28% Interest State/Federal 5% 3% ALL FUNDS BY OBJECT $13,571,084 Capital Outlay & Transfers 13% Maintenance & Operations 33% Personal Services 54% MAJOR CHANGES GENERAL FUND REVENUES · SALES TAX REVENUE UP $800,000 · PROPERTY TAX REVENUE UP $123,000 · STATE REVENUE DOWN $227,000 · TOTAL REVENUE UP $801,463 BUDGET PROJECTION- GENERAL FUND Original .... Actual Budget ProjectionBuclget FY 2003 FY 2004 FY 2004 FY 2005 TOTAL ASSESSED VALUE $356,392,843 $388,310,000 $388,310,000 $399,959,300 MILL RATE 3.50 5.00 5.00 5.00 REVENUE Property Tax $ 1,410,203 $ 2,000,000 $ 2,044,000 $ 2,123,000 Sales Tax 3.953,561 3,060,000 $ 3,600,000 $ 3,850,000 . State/Federal Revenue: Revenue Sharing 98,264 73,500 151,892 _ Safe Communities ancl Muni. Asst. 204,718 153,750 - - Fish Tax 90,117 75,000 40,000 75,000 Other 80,911 49,000 227,000 49,000 Total State/Federal Revenue 474,010 351,250 418,892 124,000 ... Other Revenue: Licenses and P~rmits 64,988 53,900 70,800 60,300 Ambulance Fees 166,465 135,000 1 50,000 1 50,000 Interest 315,869 210,000 205,000 225,000 Ot her 1,218,621 568,765 586,585 608,800 Total Other Revenue 1,765,943 967,665 1,012,385 1,044,100 Total Re~nue 7,603,717 61378,915 7,075,277 7,141,100 Transfers From Other Funds I' Charges to other funds 933.800 971,600 976,700 1,007,000 Enterprise 69,946 50,200 50,000 62,078 Trust Fund 25,930 25,000 20,000 17,000 Total Transfers 1,029,676 1,046,800 1,046,700 1,086,078 TOTAL REVENUES AND TRANSFERS 8,633,393"7,425,715"8,121,977 8,227,178 ..... GENERAL FUND REVENUES $8,227,178 Central Admin. 12% Other Revenue 10°/, Interest3% State Revenue 2% Tra n sfe rs :';::::':":: .......Property Tax Sales Tax 46% GENERAL FUND BY FUNCTION Public Works 22% $8,641,042 Transfers and Other 1% Parks, Rec. & Cultural ~, 13% General1 Government 9% Public Safety 45% GENERAL FUND BY OBJECT $8,641,042 Capital Outlay & Transfers 2% Maintenance & Operations 27% sonal Services 71% GENERAL FUND EXPENDITURES · TOTAL BUDGET IS UP $729,850 · PERS RATE UP 5% TO 8.67%- $206,000 · COST OF LIV1NG ALLOWANCE 70/0 - $315,000 · OPERATING ACCOUNTS' UP $124,000 REPAIR AND MAINT. - $47,000 BULDINGS $45,000 STREET LIGHTING $17,000 TRAVEL/TRANSPORTATION- $23,000 BOOKS - $21,OOO · CAPITAL ACCOUNTS: MACHINERY AND EQUIPMENT: $117,000 POLICE CARS - $57,000 POLICE/FIRE/COMM. TELEPHONE SYSTEM - $15,000' ANIMAL CONTROL TRUCiK - $21,000 SHOP HYDRAULIC PRESS - $7,000 RECREATION SNOWMOBILE- $8,500 PARKS TRACTOR- $8,500 BUDGET PROJECTION - GENERAL FUND Original ... Actual Budget Projection Budget FY 2003 FY 2004 FY 2004 FY 2005 ,. ~.XPENDITURES/APPROPRIATIONS General Government .. " i ,439,983 1,544,842 1,679.790 1,625,661 Public Safety 3,437,169 3,553,847 3,626,320 3,966,116 Public Works 1,595,903 1,712,968 1,756,544 1,884,548 .... Parks, Rec. & Cultural 1,253,408 1,01 3,435 1,105,598 1,099,024 , Total Operating Expenditures ... 7,726,463 7,825,092'8,168,252 8,575,349 .... Operating (Deficit)/Surplus before transfers 906.930 . (399,377) (46,275) (348,171) 4,841,49O Transfers to Capital Projects 108,102 61,100 7, i 00 - Other Transfers or Non Operating.. , 726,899 25,000 25,000 65,693 Total Transfers and Non Operating 835,001 86,100 32,100 65,693 .. . .Total ExPenditure/Appropriation 8,561,464 7,911,192 8,200,352 8,641,042 . Total Deficit/Surplus 71,929 (485,477) (78,375) (413,864) Projected lapse 735,143 428,767 Adjusted (Deficit)/Surplus 71,929 (485,477) 656,768 1~,,903 Residual Equity Transfers Beginning Fund Balance ..8,130,705 7,299,620 8,202,634 8,859,402 .. Ending Fund Balance 8,202,634 6,814,143 8,859,402 8,874,305 Encumbrances (163,054)I(300,000) (200,000) (200,000) Reserves and Designations . .. (2,488,830) (2,161,439) (2,417,217) (2,562,367) Unres. Undesignated Fund Balance $... 5,550,750 $ 4,352,704$ 6,242.185$ 6,111,938 , , COMPARING FYO3 TO FY05 Administration Account Expense Orig. Budget Recommended Diff FY 05 .N.,um ber ,Description FY 2003 .FY200$ to FY 03 Salaries and ,Benefits 0100 Salaries $4,082,660 $ 4,191,800 $ 109,140 0200 Overtime 159,085 158,871 . (214) 0250 Holiday Pay 96,255 107,001 10,746 0300 Leave ~ . 226,262 180,926 (45,336)~ 0400 Medicare 53,262 59,283 6,021 0450 Social Secudty ' 8,542 ' 7,366 (1,176) 0500 PERS 110,548 356,567 246,0i9 0600 Unemployment Insurance 33,597 35,415 1,8i8 0700 Workers Compensation 84,407 156,469 72,062 0800 Health & Life Insurance 737,156 735,687 (1,469) 0900 Supplemental Retirement 117,218 113,857 (3,361) Total Salaries & Benefits 5,708,992 6,103,242 394,250 ,, COMPARING FyO3 70 'FY05 ', Administration Account Exp~nse Orig. Budget R~commended Diff FY05 Number Description FY 2003 FY2005 to FY 03 Maintenance and _~perations .... 2021 Office Supplies 32,605 29,500 (3,105) 2022 Operating & Repair Supplies 511,785 410,600 (101,185) 2024 SmalITools/Minor Equipment 91,315 71,880 (19,435) 2025 Snack Bar Supplies 8,500 (8,500) 2026 COmputer S.o~ware... 16,170 11,070 (5,100) 4531 Professional Services 304,395 366,070 61,675 4532 Communications 78,681 68,495 (10,186) 4533 Travel & Transportation 104,125 88,660 (15,465) , 4534 Acl~rtising 27,000 24,150 (2,850) 4535 Printing& Binding 40,155 42,230 2,075 4536 llnsurance 111,300 214,400 103,100 4537 Utilities 344,885 339,667 (5,218) "' 4538 Repair & Maintenance 362,245 312,660 (49,585) 4539 Rentals 100,222 114,161 13,939 4541 Equipment Reph Fund Prat 41,636 51,818 10,182 4541 Postage 9,500 5,000 (4,500) 4666 Books 41,005 39,165. (1,840) 4667 Dues & Publications 32,335 26,761 (5,574) 4999 General ContingenCy 66:400 75,000 8,600 5041 Miscellaneous 63,310 44,220 (19,090) 5045 Depreciation 5047 Grants to Agencies 28,000 5,000 (23,000) Total Maint. and Operations 2,415,569 2:340,507 (75,06~)i COMPARING FYO3 TO FY05 Ad m in is tratio n , Account Expense Orig. Budget Recommended Diff FY 05 , Number Description FY 2003 FY2005 to FY 03 ,, Capital Outlay & Transfers "8061 Land - - - "' 806~ Buildings 20,000 15,000 (5,000) 8063 Improvements 8064 Machinery & Equipment 56,800 116,600 59,800 9090 Transfers 282,120 65,693 (216,427) .Total Capital Outlay .Capital Outlay and Transfers 358,920 197,293 (161,627) , Total $8,483,481 $ 8,641,042 $ 157,561 Total budget change from FY 03 to FY 05 is less than 2% Schedi~le of COLA vs CPI CPI COLA Increase Pay Rate Calendar Ann. A~. Difference Effective Date Increase Year Anchorage COLA-Anc , 7/1/1986 0.0 1985 2.9 -2.9 7/1/1987 0.0 1986 0.5 -0.5 ,, . 7/1/1988 4.0 'i987 0.7 '3.3 7/1/1989 0.0 1988 0.7 -0.7 ,.. 7/1/1990 4.0 1989 3.3 0.7 ...... 7/1/1991 6.0 1990 7.0 -1.0 7/1/1992 4.0 '1991 3.6 0.4 7/1/1993 0,0 1992 3.5 -3.5 7/1/1994 4.0 1993 2.9 1.1 7/1/1995 ~.5 199~4 2.3 0.2' 7/1/1996 2.0 1995 2.7 -0,7 .... 7/1/1997 0,00 1996 3.0 -3.0 ., 7/1/1998 2. O0 1997 1,2 O. 8 , 7/1/1999 0.00 1998 1.1 -1,1 7/1/2000 1.50 1999 O. 9 O. 6 7/1/2001 O. O0 2000 2.4 -2.4 7/1/2002 O. O0 2001 2.7 -2.7 ...... 7/1/2003 0.00 2002 1.9 -1.9 " .. 7/1/2004 7.00 2003 3.1 3.9 Anchorag6 Kenai difference iS'YE '100.00 100.00 1998 103.00 100.00 3.00 1999 104.24 102.00 2.24 2000 105.38 102.00 3.38 2001 106.33 103.53 2.80 2002 108.88 103.53 5.35 2003 ' 111.82 103.53 8.29 '2004 113.95 103.53 10.42 2005 117.48 103.53 13.95 7% COLA 110.78 6.70 Anchorage CPI in compounded dollar terms. CPI is up 17.48, while wage scale increased 3.53 compounded. Difference is 13.95. Health Insurance Health insurance costs have increased. To offset some of the increase, last year employees contributed about $50,000 to the cost of health insurance premiums. A few years ago the deductibles and co- payments were increased saving about $50,000 per year in premium expense. The combination of these two items could cost an employee as much as $1,556 per year depending on claims. Note that on the median salary this represents about 3.3%, so it can be said that nearly all of the COLA's since FY97, for some people, has gone to cover the employees portion of health insurance cost increases. PERS Since FY 1997, PERS rates have fluctuated from 2.04% to 8.67% for FY 2005. With few exceptions, the PERS rate that the City paid since 1990 is less than the social security rate paid in the private sector and by many public sector employers including the Borough. The City opted out of social security in 1981, saving the City a significant amount of money. For CY 2004 the rate and limit for social security is 6.2% on the first $87,900 of wages (a maximum of $5,450). If the City were participating in social security, it would have cost an additional $300,000 in FY 2004. Employees do not contribUte to social security, but they do contribute 6.75% to 7.50% to PERS. The City contributes 4% of salary up to $37,500, which is a maximum of $1,500 per employee, to a 40lA plan on behalf of the employees. The budget for this is $135,000 in FY 2004. This program was started in 1984 at 2%. In 1990 it was adjusted to the current level, which was equivalent to the social security rate and limit at that time. 10 'City of Kenai PERS rates City PERS Difference City PERS Difference FY80 8.59%' 12.05% 3.46% FY90 0.00% 9.30% 9.30% FY81 8.64% 11.80% 3.16% FY91 3.70~/o 12.00% 8.30% FY82 10.02% i'3.03% 3.01% FY92 3.73fro 14.20% 10.475'o -FY83 10.02% 13.78% 3.76% FY93 0.00% 13.58% 13.58% FY84 9.885'0 13.685'o 3.80% FY94 3.91% 13.72% 9.81% "FY85 9.97% 13.62% 3.65% FY95 4.775'0: 13.70% 8.93% "FY86 11.15% 13.59% 2.44% FY96 1.03%' 12.82% 11.79% FY87 7.18%i 13.84% 6.66% FY97 6.03% 12.145'o 6.11% .FY88 5.40% 9.55% 4.155'o FY98 2.985'o 8.00% 5.025'o FY89 5.40% 9.38% 3.98% FY99 4.40% 7.74% 3.34%1 City PERS Difference FY00 5.43%' 7.74% 2.31% ' , FY01 2.04% 7.40% 5.36% FY 02 2.63% 6.75%~ 4.12% FY03 2.63%: 6.75% 4.12% AVERAGE DIFFERENCE 5.65% FY 04 3.67% 6.77% 3.10% FY05 8.67% 11. ~'~'% 3.10% BUDGET PROJECTION- GENERAL FUND Projection ProjectiOn Projection Projection Projection FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 ,, , , TOTAL ASSESSED VALUE ' $411,958,079 .$424,316,821 $437,046,326 $445,787,253 $459,160,870 .. MILL RA I!::: 5.00 5.00 5.00 5.00 5.00 REVENUE Property Tax $ 2,142,182 $ 2,206,447 $ 2,272,641 $ 2,318,094 $ 2,387,637 Sales Tax ' .... 3,'965,500 4,084,465 4,206,999 4,333,209 4,463,205 State Revenue: Fish Tax 100,000 100,000 100,000 100,000 100,000 Other 55,000 55,000 55,000 55,000 55,000 Total State Revenue 155,000 i55,000 155,000 155,000 155,000 Other Revenue: ' ' Licenses and Permits ' '50,000 50,000 50,000 50,000 50,000 Ambulance. Fees 150,000 150,000 . 150,000 150,000 '150,000 Interest ... .300,000 325,000 350,000 400,000 400,000 Other ' 600,000 600,'000".. 600,000 600,000 600,00~ Total Other Revenue 1,100,000 1,125,000 1,150,000 1,200,000 1,200,000 Total Revenue 7,362,682 7,570,912 7,784,640 '8,006,303 8,205,842 , ]! EXPENDITUR'ESIAPPROPRIATIONS +5% ' +5% , +3% - +3% ' +3% ' General Go~grnment ' 1,706,944 1,792,291 1,846,060' 1,901,442 1,958,485 Public Safety 4,164,422 4,372,643 4,503,822 4,638,937 4,778,105 .... Public Works 1,978,775 2,077,714 2,140,045 2,204,247 2,270,374 Parks, Rec. & Cultural 1,153,975 1,211,674 1,248,024 1,285,465 1,324,029 Total Operating Expenditures 9,004,116 9,454,322 9,737,952 10,030,090 10,330,993 .... Operating (Deficit)/Surplus before transfers (527,146) . . (718,083) (758,619): ~ (807,301) (886,435) ,, Other Transfers or Non Operating 26,000 26,000 26,000 26,780 27,583 26,000 26,000 26,000 26,780 27', 583 Total Expenditure/Appropriation 9,030,116 9,480,322 9,763,952 10,056,870 10,358,576 Total Deficit/Surplus (553,146) (744,083) (784,619) (834,081) (914,0i8) P roj ected laps e (5%) 450', 206 472,716 486,898 501,505 516,550 Adjusted (Deficit)/Surplus (102,940) (271,367) (297,721) (332,576) (397,468) Beginning Fund Balance 8,874,305 8,771,365 8,499,998 8,202,277 7,869,701 .=. Ending Fund Balance L 8,771,365 8,499,998 8,202,277 7,869,701 7,472,233 Encumbrances (200,000) (200,000) (200,000) (200,000) (200,000) heserves and Designations ... (2,255,588) (2,281,942) (2,316,797) (2,381,689) (2,382,000) Unreserved UndesignatedFundBalance $ 6,315,777 $ 6,018,056 $ 5,685,480 $ 5,288,012 $ 4,890,233 , II Property Tax D Sales TaxI $4,$00,000I 4,180 190 $4,000,000 ] ~ - $3,500,000 ,I ~ $3,ooo, ooo 2 $2,500,000 $2,000,00° $1,500,0001 $1,000,000 - _ $500,000 $o ~ R~fl flflfl 0 12 1800000 1600000 1400000 1200000 100000~ 80000~ Revenue Sharing and Municipal Assistance 400000 200000 FY85 FY87 FY89 FY91. FY93 FY95 FY97 FY99 FY2001 FY03 FY05 I1 Revenues [3 Expenditures[ $9,500,000 $9,000,000 $8,500,000 $8,000,000 $7,500,000 $7,000,000 $6,500,000 $6,000,000 Inc. SI .Smm tbr F~tuip R i [~ _ 93 94 95 96 97 98 99 2000 2001 2002 2003 13 12,000,000 I [] Fund Balance !Available Fund Balance 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 City Of Kenai ,, Fiscal Year 2005 OPerating Budget Budget Projection Fund 10: Water and Sewer Fund ., Ori~linal Administration Actual Budget Proiection Recommended FY 2003 FY 2004 FY 2004 FY 2005 .... Revenues Usage Fees Hook-up $ 3,300 $ 3,500 $ 3,000 $ 3,000 Residential Water 234,301 258,500 257,500 283,250 ...... Commercial Water 106,611 121,000 127,900 140,690 Residential Sewer 644,723 722,400 725,000 812,000 Commercial Sewer 273,975 308,000 324,000 362,880 Total Usage Fees 1,262,910 1,413,400 1,437,400 1,601,820 Miscellaneous Revenues Penalty and, interest 18,228'! 18,000 15,000 18,000 ... Spec. Asmnt. Principal 34,782 30,000 27,600 65,000' Sale of Assets - . Inte rest eamincjs 41,907 28,000 30, 000 14, 000 Other §,983 2,500 2,500 -- 2,500 Toial Miscellaneous" Revenues 98,900 78, 500 75,100 99,500 ....... , , Total Revenues 1,361,810' 1,491,900 1,512.500 1,701,320 14 ,,, City Of Kenai ........... Fiscal Ye..a..r 2005 Operating Budget Budget Projection , Fund 10: Water and Sewer Fund Od~linal Administration Actual Budget Projection Recommencled FY 2003 FY 2004 FY 2004 FY 2005 ,, ...... Expenditures Water Department 1,346,822 482,569 493,079 509,462 Sewer Department · 240,402 274,473 277', 123 4~14,664 Sewer Treatment Plant Dept. 659,279 644,445 649,800 703,721 , , Total Expenditures 2,246,503 1,401,487' 1,420,002 1,65~,847 C0'~tribution To/(From) Fund Balance (884,693) 90,413 92,498 43,473 , . 'Pr0iected lame (6%) 42,045 85,200 99,471 Adjusted (Deficit)/Surplus 132,458 177,698 142,944 Beginning Fund Balance 1,214,574 146,963 329,881 507,579 , ., Ending Fund Balance $ 329,881~ $ 279,421 $ 507,579 $ 650,523 Budget Project. ion. .. Fund: 020 Airport Land System OriginalAmended Administration Aciual Budget Budget Projection' Recommended FY 2003 FY 2004 FY 2004 FY 2004 FY 2005 ,, , Revenues .... · ~tate Aviation Grant $ 9,006 $ 5,000 $ 5,000 $ 5,000 $ 5,000 .. Usa.qe Fees Fuel Sales 8,247 8,5008,500 7,500 8,000 Float Plane 2,020 1.000 1,000 1,600 1,800 .. Tie Down 4,148 5,000 . 5,000 5,000. 5,000 Landing 91..,011 86,000 86,000 82,000 82,000 Plane Parking 1,135 1,000 1,000 1.,000 1,000 Total Usage Fees .106,561101,500 101,500 97,100 97,800 Rents and Leases Land 312,170 388,000 388,000 360,000 360,000 Fish Hauling ' 1'1200 1,000 1,0(X) Total Rent's and Leases '" 313',370 388,000 388,000 361,000' ' ' 361,000 Miscellaneous Penalty and Interest 5,403 4.000 4,000 5,000 4,000 Interest on Investments 547,661 371, ..000 371,000 350,000 390,000 Other 5,825 2,000 2,000 2,000 2,000 TotalMis~ellaneous ' . 558',889 377,000 377,000 357,000 396'.000~ , Transfers In General Fund Lease Caps 967 967 967 967 967 'Capital 15roject Fund Apt. Land Trust Fund Sales Interest 26,592 25,000 25,000 25,000 25,000 , , Total Transfers In 27,559 .... 25,967 25,967 25,.96.7 25,967 "'l:(~tal ' Rev~ues 1,015,385897,467 897,467 846,067 885,767 ]5 Budget Projection ...... Fund: 020 Airport Land System .... I Original' Amended Administration i Actual Budget Budget Projection Recommended ! FY 2003 FY 2004 FY 2004 FY 2004 FY 2005 Expenditures Airport Maint. and Operations 1,~049,403 1,263,850 1,275,321 1,275,321 1,417,825 Airport Administration 200,846 217,503 218,813 218,813 219,815 Airport Land 137,822 131,598 182,440 182,440 129,3~2 Total Expenditures 1,388,071 1,612,951 1,676,574 1,676574 1,767,002' .. ~ .~ntribution To/(From) Fund Balance (372,686) (715,484) (779,107) (830,507) (881,235) P~ected lapse (6%) 96,777 100,594' 100,594 106,020 ?',djusted (DeficitySurplus (618,707) (678,513) (7291913)i (775,215) Beginning Fund Balance 6,795,497 5,931,529 6,422,811 6,422,811 5,692,898 ..... .. Ending Fund Balance $ 6,422,811 $ 5,312,822 $ 5,TM 298 $ 5,692,898 $ 4,917,684 , , AIRPORT OPTIONS The Airport Special Revenue Fund is spending fund balance at an unsustainable rate. The fund is negatively affected by lower passenger counts and lower interest revenue. Interest revenue could be enhanced by changing investment policy to allow higher yielding securities. Generally speaking higher yield will .carry higher' risk. Professional investment management is also an option if investment policy is changed. After payroll, the biggest expense is central administrative costs. This could be adjusted. 16 ,, City Of Kenai Fiscal Year 2005 Operating Budget Budget ProJection Funds: 019 Senior Citizen Title III Grant Fund Original Current Administration Actual Budget ,Budget Projection Recommende~ FY 2003 FY 2004 FY 2004 FY 2004 FY 2005 , Revenue · " Stat'eGrant $129,533 ,?,126,700 $ 97,969 $ 97,969 $ 97,969 USDA Grant 14,710 13,700 11,000 11,000 11,000 Meal Donations 112,066 100,000 100,000 100,000 50,000 Transfer from Borough Grant Fund 6,847 19,602 19,602 '- In-Kind Support .14,083 14,084 10,850 10,850 32,404 Total Revenue 270,392 261,331 239,421 239,421' 191,373 ,. Expenditures Senior Citizen Access 49,353 48.613 46,996 46,996 61',870 Congregate Meals 154,419 105,055 94,100 94,100 66,974 Home Meals 53,723 92,156 82,818 82,818 52,089 Senior Transportation 17,518 15,507 15,507 15,507 .. 9,683 '~'otal Expenditures 275,013 261,331" 239,421 239,421 190,616 ~ontribution To/(From) Fund Bal'ance: (4,621) - - - ' 757 Beginning Fund Balance 14,470 - 9,849 9,849 9,849 Ending FundBalance $ 9.849 $ $ 9,849 $ 9,849 $ 10,606 , , _ City Of Kenai Fiscal ;ear 200~ Operating Budget I Budget ProJection Funds: 028 Choice Waiver Grant Fund Administration Recommended FY 2005 Revenue Total Revenue Expenditures Contribution To/(From) Fund Balance: Beginning Fund Balance Ending Fund Balance ]7 ............. City Of Kenai Fiscal Year 2005 Operating Budget I Budget Projection Fund: 025 Senior Citizen I Borough Grant Fund . Original Current Administration Actual Budget Budget Projection Recommended FY 2003 FY 2004 FY 2004 FY 2004 FY 2005 , Rever~ues "KiSl~"Grant' $ 83,405 $ 83,405 $' 95,320 $ 95,3~_0 $ 95,320 united Way 20,700 18,0oo 18,840 18,840 18,000 Rents and Leases 21,074 19,000 19,000 21,000 21,000 Donations 23, 647 9,500 6,000 8,000 8,000 Other 258 3,500 1,500 . Transfer-in from General Fund 23,617 24,000 24,000 24,0(X) 24,000 Total KPB Senior Fund 172,701 153,905 166,660 174,005 166,320 Expenditures 154,261 157,309 170,914 170,914 138,46i Contribution To/(From) Fund Balance: 18,440 (3,404) (4,254) 3,091 27,859 . . Beginning Fund Balance 88,760 76,490 107,200 107,200 110,291 Ending Fund Balance $ ,107,2,00 .$. 73,086I $ 102,946 $ 110,291 $ 138, i50 , , Fund: 008 - 61 Airport Terminal . , Original Administration FY 2003 FY2004 Projectio__n Recommended Description , Actu, a.! Bud~],e...t' ~ 2004 .FY200S REVENUES . . Parking Fees $ 67,814 $ 80,000 $ 70,000 $ 70,000 Rents and Leases 75,308 70,000 70,000 70,000 .Penalty and Interest 1,130 1,000 500 500 Interest on Investments 66,602 45,000 42,000 47,000 Car Rental Commissions 132,584 135,000 130,000 130,000 Advertisincj Commissions 7,761 4,000 7,000 7,000 Miscellaneous 420 300 300 300 Total Revenue 351,619 335,300 319,800 324,800 ExpENsEs.. ' 503,431 469,094 524,752 4~1,093 Projected Lapse (6%) 31,485 28,866 iNet'Income (loss) (151,812) (133,794) (173,467) (127,427) Add credit from Depre(~:iation 49,990 49,990 49,990 49,990 Con. tribution to (from) Retained . . Eamin. gs .. (101,822) (83,804) (123,477) (77,437) Beginning Retained Earnings 1,583,108 1,481,781 1,481,2'86 1,357,809 Ending Reiained Earnings $1,481,286 $1,397,977 $1,357,809 $ 1,280,372 , ,, ,, ,, , , ,,,,, I"' Fund: 009 -62 Congr~egate Housi.ng Fund / . ,. Original Administration FY 2003 FY 2004 Projection Recommended Descripti,o.,.n A~ ctual Bud;let FY 20,04 ~ 2.005 . , 'REVENUES Rents andLeases $ 240,633 $ 256,000 $ 254,500 $ 257,500 Interest on Investments 18,164 12,O00 11,000 12,000 Miscellaneous 337 200 Total Revenue 259,134 268,000 265,700 269,'500 EXPENSES 367,611 '392,087 ~t05,397 393,587 Net Income (loss) (108,477) (124,O87) (139,697) (124,087); Add credit from Dep'reciati~)n 124,087 124,087 124,087 124,087 - , Contribution to (from) Retained Eami.ngs 15,610 - (15,610) Beginning Retained Earnings 500,000 500,000 515,610 500,000 .Ending Retained Earnings Reserved for Repair & Repl. $ 515,610 $ 500,000 $ 500,000 $ 500,000 , , _ Fiscal Year 2005 Operating Budget Budget Projection Debt Service Funds . , Odginal Current Administration 'Actual Actual Budget Budget Projection Recommended FY 2002 FY 2003 FY2004 FY2004 FY2004 -FY2005 ~"1984/86193 Debt Service Fund Revenues Acct. 36630 - Assessments $ 1,512 $ 1,513 $ $ - $ $ 1,513 Acct. 39950 - Transfer from Gen'l Fund 193,389 691,148 Total Revenues 194,901 692,661 1,513 Expenditures Acct. 707,1- P.fincipal. 165,000 160,000 150,000 150,000 150.000 150,000 ,., Acct. 7072- Interest 28,389 20,020 11,963 11,963 11,963 4,013 Transfer to General Fund - - 3,025 Total Expenditures ' 193,389 .. 180,020 161,963 161,963 161,963 157',03,8 "C~'tr~buiion To/(From) Fund Balance: i,512 512,641 (161,963) (161,963) (161,963 ' '(155,525) Beginning Fund Balance (196,665) ...(195,153) 317,488 317,488 317,488 155,525 (195,153) ' Ending FundBalance $,. $ 317,488 $ 155,525 $ 155,525 $ 155,52,5 $ 'i ]9 Land sales Trust Funds Aclual Original Budget Projection Recommended FY 2003 FY 2004 ,FY 2004 FY 2005 ,. Fund: 082 - 52 Airport Land Sales Trust Fund Revenues Acct. 36645 Interest $ 27,152$ 25,000 i. $ 25,000 $ 25,000 Acct. 36840 Land Sales 71,306 - ~ Total Revenue 98,458 25,000 25,000 25,000 ,., Expenses . Transfers to Airport Land System Fund 26,592 25,000 25,000 25,000 .. ',Contribution To/(From) Fund Balance: 71,866 Begir~ning Fund Bala~e 11,095,976 11,283,90911,167,842 11,167,842 Ending Fund Balance $1!,167,842 $ ,11,263,909 $11,167,842 $ 11,167,842 Fund: 081 - 52 General Land Sales Trust Fund Revenues Acct. 368451nterest $ 18,718 $ 25,000 $ 25,000$ 17,000 Acct. 36640 Land Sales 79,690 Total Revenue ' 98,408 18,000 25,0(X) 17,000 ... Expenses Transfers to General Fund 25.930 25,000 25,000 17,000 'Co~h'ibution To/(From)'Fund Balance: 72,478 Beg[r~ning Fund Balance 2,043,607 2,218,163 2,::;1'8,163 2,218,163 Ending FundBalance $ 2.116,085 $ 2,218,163 $ 2,218,163 $ 2,218,163 THE END 20 Account Expense N u m bar Desc rlptlo n Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits .Maintenance and Operations 2021 Office Supplies 2022 Operating & Repair Supplies 2024 Small Tools/Minor Equipment 2025 Snack Bar Supplies 2026 Computer Software 4531 Professional Services 4532 Communications 4533 Travel & Transportation 4534 Advertising 4535 Printing & Binding 4536 Insurance 4537 Utilities 4538 Repair & Maintenance 4539 Rentals 4541 Equipment Repl. Fund Pmt 4541 Postage 4666 Books 4667 Dues & Publications 4999 General Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Total Capital Outlay Cal~ital Outlay and Transfers COMPARING FYO3 TO FYO4 AND FY05 Administration Actual Orig. Budget Orig. Budget fy 04 to Fy 03 Recommended ~2003 FY 2003 ~ 2004 difference FY200~ Difference from Dlff FY 05 .,FY2004 Orl¢~. to FY 0~3 $3,970,987 $4,082,660 $ 3,879,561 $ (203,099)$ 4,191,800 $ 167,948 159,085 155,085 (4,000) 158,871 96,386 96,255 98,816 2,561 107,001 90,448 . 226,262 216,546 (9,716) 180,926 50,849 53,262 51,151 ( 2,11 ! ) 59,283 9,256 8,542 6,710 (1,832) 7,366 107,413 110,548 147,685 37,137 356,567 22,693 33,597 33,989 392 35,415 111,030 84,407 126,919 42,512 156,469 684,553 737,156 764,300 27,144 735,687 109,54.8 117,218 . 112,507 (4,71_1) 113,857 .5,421,111 5,708,992 _ 5,593,269 _ (115,723~ ,... 6,103.,242 ..... 312,239 $ 109,140 3,786 (214) 8,185 10,746 (35,620) (45,336) 8,132 6,021 656 (1,176) 208,882 246,019 1,426 1,818 29,550 72,062 (28,613) (1,469) 1,350 . (3,361) 509,9,73 394,250 27,648 32,605 24,920 (7,685) 29,500 385,882 511,785 401,480 (110,305) 410,600 177,976 91,315 59,270 (32,045) 71,880 10,389 8,500 - (8,500) - 13,747 16,170 8,270 (7,900) 11,070 268,467 304,395 361,070 56,675 366,070 57,409 78,681 71,265 (7,416) 68,495 76,126 104,125 65,655 (38,470) 88,660 23,092 27,000 20,350 (6,650) 24,150 41,721 40,155 44,483 4,328 42,230 146,239 111,300 214,400 103,100 214,400 328,407 344,885 337,350 (7,535) 339,667 298,468 362,245 266,090 (96,155) 312,660 101,331 100,222 112,651 12,429 114,161 40,104 41,636 40,104 (1,532) 51,818 8,972 9,500 9,500 - 5,000 41,777 41,005 17,900 (23,105) 39,165 27,032 32,335 24,095 (8,240) 26,761 - 66,400 75,000 8,600 75,000 49,416 63,310 39,970 (23,340) 44,220 27,450_ . 28,000 _ 23,000_ (5,000) . .5,000 2,151,653 ,, . 2,41.5,569_ 2,216,823 ,.. (198,7~46) . 2,340,507 4,580 (3,105) 9,120 (101,185) 12,610 (19,435) - (8,500) 2,800 (5,~00) 5,OOO 61,675 (2,770) (10,186) 23,005 (15,465) 3,800 (2,850) (2,253) 2,075 - 103,100 2,317 (5,218) 46,570 (49,585) 1,510 13,939 11,714 10,182 (4,500) (4,500) 21,265 (1,840) 2,666 (5,574) - 8,600 4,250 (19,090) .. (18,000) (23,000) 123,684 ... (75,062) 22,048 25,422 106,229 _ 835,001 .. ,- 20,000 15,000 (5,000) 15,000 56,800 - (56,800) 116,600 282;..1.20 _ 86,100 (196,020) _ 65,693 988,700 .......358,920 101,100_ (257,820)_ 197,293 ,., - (5,00o) . 116,600 59,800 (20,407) (216,427) 96,193 _ (161,627) Total $8,561,464 $_8,483,48!_ $_ 7,911,1,92 $. (572,289),,$ 8,,641,,0;4,2 ,$ 72,9,850 ,$,,,15,7,56! Account Expense Description Genersi Fund Summary Line Item -Council Orig. Budget Approved FY 20,03,, FY2004 differen¢,e . / 0100 0200 0250 0300 0400 0450 0500 0600 0700 0800 0900 2021 2022 2024 2025 2026 4531 4532 4533 4534 4535 4536 4537 4538 4539 4541 4541 4666 4667 4999 5041 5045 5047 Salaries and Bene. f. its Salaries overtime Holiday Pay Leave Medicare Social Security PERS Unemployment Insurance Workers Compensation Health & Life Insurance Supplemental Retirement Total .Salaries & Benefits Maintenance and Operations office supplies Operating & Repair Supplies Small Tools/Minor Equipment Snack Bar Supplies Computer Software Professional Services Communications Travel & Transportation Advertising Printing & Binding Insurance Utilities Repair & Maintenance Rentals Equipment Repl. Fund Pmt Postage Books Dues & Publications General Contingency Miscellaneous Depreciation Grants to Agencies 4,082,660 $3,879,561 159,085 155,085 96,255 98,816 226,262 216,546 53,262 51,151 8,542 6,710 110,548 147,685 33,597 33,989 84,407 126,919 737,156 764,300 117,218 ...... 112,507 5,708,992 5,593,269 32,605 24,920 511,785 401,480 91,315 59,270 8,500 - 16,170 8,270 304,395 361,070 78,681 71,265 104,125 65,655 27,000 20,350 40,155 44,483 111,300 214,400 344,885 337,350 362,245 266,090 100,222 112,651 41,636 40,104 9,500 9,500 41,005 17,900 32,335 24,095 66,400 75,000 63,310 39,970 -- 2,8,0,,00 23,0,00 $ (203,099) (4,000) 2,561 (9,716) (2,111) (1,832) 37,137 392 42,512 27,144 (4,711) .... (115,7235) (7,68) (32,045)X. (8,500)-- (7,900) 56,675 (7,416) (38,470) (6,650) 4,328 103,100 ~ (7,535) (96,155) 12,429 (1,532) (23,10;) ~"~' (8,240) 8,600 (23,340) .. , (5,000) Total Ma!nt. and Operations 2,415,569 2,216,823 (198,746) 8061 8062 8O63 8064 9090 Capi.ta! Outlay & Transfers Land Buildings Improvements Machinery & Equipment Transfers Total Capital Outlay capital outlay and.Transfers -- -- 20,000 15,000 ., 56,800 - 282,.120 86,100 358,920 ....... 101~ 100 (257,820) Total $, 8,483,,481 $7,911,192 $ (572,289) et Cuts Recreation Center: will operate the recreati savings of $87,000 from the budget. The City will pay for m; and utilities and will also provide $ operations. This eliminates 3.5 full ti~ 10 pad-time positions equaling 4 FTE time equivalents). If the Boys and Girls proposal is not adopted by Council, it is intent that other cuts to the program be to save the same amount of money. The multipurpose center will operate two months less than last year producing a savings of about $21,000. Boys and Girls Club nter at a net cost nce for P~ull-time position previously sha the recreation department is elimina Reductions in were made in small tools rentals. Library: The library will be c two days per week and 3 part-time ' totaling 1.1 FTE will be cut. The significant cuts to the operating bud Clerk: The half-time department assistant position is eliminated along with ali operating funds associated with this position. The legal secretary will assist the clerk. Legal: e enforcement officer position is elimi which will result in less enforcement a The City of Kenai Code revisions will ndled in house instead of by contract funding for other operating item reduced. Dock: This is now a depar[ment of General Fund. The dock will operate two months less than last year- from May through August. Funding for operating accounts is severely reduced. ~11 funding for scheduled. building maint'~ce projects is cut. We deferred maint6 last year and are continuing on this p, his year with obvious long-term implicati Streets: The dust control ' eliminated. Other funding for o is severely reduced. Street depa wages increased due to the dock manager staying in street department two months longer. Safety: audit and onsite contractor safe' 'ing. Other operating funding is ced. Street lighting: No fund new street lights and reduced fu r repairs. Utility cost is up. Visitors Center: The contract wit KCVB is reduced $10,000 and operating funding is eliminated for all but essential items. The Center is expected to operate fewer hours as a result of budget cuts. , 'L~Miscellaneous donations are. g.reatly re~ travel is reduced and the newsletter Oitlx,be published semiannually rather the arterly. All' Other Departments: department has pared its opera budget to minimal levels. Travel training is substantially reduced in departments. If this becomes the norm city employees will not be current with critical job requirements and skills. KENAI CITY COUNICL MEETING MINUTES MARCH 5, 2003 PAGE 7 I-3. Ordinance No. 1995-2003 -- Amending KMC 23.40.080 and 23.40.120 to Allow Employees to Elect the Opt-Out Provision of the Public Employees Retirement System (PERS) as Stated in AS 39.35.150(b) and/or Opt Out of Municipal Medical and Hospital Insurance. troduced by consent agenda. I-4. Discussion -- Schedule Volunteer Appreciation Event A memorandum was included in the packet regarding National VOlunteer Day and council's desires whether to hold a Volunteer Appreciation event, what type of event, and when. The memorandum also questioned whether council wanted an advertisement listing all the city's volunteers to run. After a brief discussion, the date for the event was set for April 25 at the Senior Center. The type of event will be discussed further at the March 19 council meeting. Council also approved the newspaper advertisement. ITEM J: REPORT OF THE MAYOR-- No report. ITEM K: ADMINISTRATION REPORTS , K-1. City Manager-- City Manager Snow reported the following: · Referred to the Public Works Report (Information Item No. 3) indicating DEC has stated the old antenna site has been determined as clean and the transfer of ownership can be made as soon as a written report is completed. · The water rate study is available for review. A memorandum noting Administration's findings from the study will be included in the next council packet. · A report has been issued indicating there is $500,000 in federal funding for the Kenai River, though it has not been identified clearly whether the funds are for Kenai or perhaps a Soldotna trail project. Administration is investigating. · She has received from the Corps of Engineers the study plans for determ__img the scopes of work for the areas at issue in regard to the coastal trail (hydrological, sedimentation, bank stabilization, etc.). Snow added, the Corps had also indicated target dates for the studies to be completed. K-2. Attorney -- Attorney Graves reported the following: · He, Parks Director Frates and Public Works Manager La Shot met with a representative from the Anchorage Solid Waste Department to review the plans of the proposed use of the Section 36 property. He has prepared a summary of the meeting and it will be included in the next meeting's packet. Graves noted, several suggestions were made in regard to the placement of the parking lot and the only problem now is funding. KENAI CITY COUNCIL ME~ING MARCH 19, 2003 PAGE 2 MOTION: Councilman Bookey MOVED to approve the consent agenda as amended. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENTS..-- None. ITEM C: REPORTS OF Ie~B ASSEMBLY, LEGISLATORS AND COUNCILS Assemblywoman Glick reported actions taken during the Borough Assembly meeting of March 11. She noted in particular, the following: · The Assembly set 10:00 a.m. on April 1 for a tour through the Emergency Operations Center at the Alaska Regional Fire Training Facility. Council also scheduled the date and determined lunch would be offered at the facility immediately after the tour. It was also determined letters of invitation be sent individually to the Borough Assembly members, as well as Borough Mayor Bagley, members of the LEPC, Borough Emergency Management Director, State Troopers, and media. ITEM D: D-1. PUBLIC HEARINGS Ordinance No. 1995-2003 -- Amending KMC 23.40.080 and 23.40.120 to Allow Employees to Elect the Opt-Out Provision of the Public Employees Retirement System (PERS} as Stated in AS 39.35.150(b) and/or Opt Out of Municipal Medical and Hospital Insurance. MOTION: Councilman Bookey MOVED for adoption of Ordinance No. 1995-2003 and Councilwoman Swarner SECONDED the motion. There were no public comments. Finance Director Semmens explained, including this amendment would allow the city and employees the option and can potentially allow the city to retain qualified people at a lower cost (the city wouldn't be paying PERS or insurance) if they opt out. He also noted, to be eligible, the employee would have to meet requirements and the option will be sunsetted in 2005. VOTE: Williams Moore Yes Bookey Yes I Swarner Yes Yes Porter Absent [ Jackman Yes MOTION PASSED UNANIMOUSLY. March 19, 2003 Council Meeting Partial Verbatim D-Xo Ordinance No. 1995-2003 -- Amending KMC 23.40.080 and 23.40.120 to Allow Employees to Elect the Opt-Out Provision of the Public Employees Retirement System (PERS) as Stated in AS 39.35.150(1)) and/or Opt Out of Municipal Medical and Hospital Insurance. MOTION: Councilman Bookey MOVED for adoption of Ordinance No. 1995-2003 and Councilwoman Swarner SECONDED the motion. Williams: Is there anyone from the general public wishing to be heard on this particular ordinance? This is an ordinance that will allow employees, both present and furore, as I understand it, to opt out of the provisions of the Public Employment Retirement System. It's being done for a couple of purposes and I know our finance director has been through this thoroughly. Would you mind if we have our tin,ce director... --- Snow: No. Williams: · ..maybe brief us just briefly on the reason for the ordinance. Semmens: Mr. Mayor, members of the council and public. The reason for the ordinance is simply to allow the city this option. The city and the employees this option. Our code currently doesn't allow it. State law does allow it. I believe it was House Bill 242 that was passed, I can't remember if it was last session or a previous session, but allow it due to the shortage of folks available, qualified people available and what it does for the City of Kenai, what it can potentially do for us is allow us to retain qualified people at essentially a lower cost because ff they opt out of the insurance program, for example, because they have insurance under their state retirement, then, of course, we would not be paying that. We also would not be paying their PERS contribution. Now, currently our, the PERS contribution is less than social security, but there's a question about whether or not we'd even have to pay social security. We're, we're researching some of these things. But, this ordinance would just make it possible in the event that it's, that it's absolutely found to be in the best interest of the city to do this. Williams: Any questions from the general public? Anyone wishing to be heard? All fight, any questions from the council? Councilman Bookey. Bookey: Thank you Mr. Mayor. Explain to me then, on a new hire, is a new hire going to have the option to go PERS or to go social security? Semmens: No, no, there's a couple of things here. One is that they have to be eligible for normal retirement. So, only in the event of a new hire having already satisfied all the requirements of retiree... Bookey: Okay. Semmens: ...in other words, they'd have to be vested. They'd have to be a certain age. Ail those requirements would have to be met before they could... Bookey: beginning... So, so this is not an option to new hires that are starting out at the Semmens: Normally not...normally it would not be and another thing, there is a sunset to this in state law of, I don't remember exactly the date, but it's I think, 2007 or it might be 2005. But anyway, it's only a couple of year's window here that this, this can take place. Although, if a person elected it, they would be eligible for it, of course, until they quit. Bookey: Okay, okay, cause I don't want to see us up in the system of a two- leveled organization. Williams- Let me ask a question. Supposing that a retiree, having already retired from public service, came in and applied for a job and we decided to hire them under the present system. Normally speaking, that retiree cannot have contributions made on his behalf or her behalf to the pension system since they are already retired. Is that correct? Semmens: That's correct. Williams: Are we still required to make contributions to the system... Semmens: No. Williams: ...not on their behalf, but just to the system. Semmens: None. No. Williama: roll. Okay. All right. Questions. Seeing no further questions, Clerk, call the VOTE: Williams Yes Bookey Moore Yes Porter Yes Absent Jackman Yes Yes MOTION PASSED UI~AN~OUSLY. End of item. 4/12/04 KEN~ CITY COUNICL MEETING MINUTES MARCH 5, 2003 PAGE 7 . Ordinance No. 1995-2003 -- Amending KMC 23.40.080 and 23.40.120 to Allow Employees to Elect the Opt-Out Provision of the Public Employees Retirement System (PERS) as Stated in AS 39.35.150{b) and/or Opt Out of Municipal Medical and Hospital Insurance. LIntroduced by consent agenda. Discussion -- Schedule Volunteer Appreciation Event A memorandum was included in the packet regarding National VOlunteer Day and council's desires whether to hold a Volunteer Appreciation event, what type of event, and when. The memorandum also questioned whether council wanted an advertisement listing all the city's volunteers to run. After a brief discussion, the date for the event was set for April 25 at the Senior Center. The type of event will be discussed further at the March 19 council meeting. Council also approved the newspaper advertisement. ITEM J' REPORT OF THE MAYOR-- No report. ITEM K: ADMINISTRATION REPORTS K-1. City Manager-- City Manager Snow reported the following: · Referred to the Public Works Report (Information Item No. 3) indicating DEC has stated the old antenna site has been determined as clean and the transfer of ownership can be made as soon as a written report is completed. · The water rate Study is available for review. A memorandum noting Administration's findings from the study will be included in the next council packet. · A report has been issued indicating there is $500,000 in federal funding for the Kenai River, though it has not been identified clearly whether the funds are for Kenai or perhaps a Soldotna trail project. Administration is investigating. · She has received from the Corps of Engineers the study plans for determining the scopes of work for the areas at issue in regard to the coastal trail (hydrological, sedimentation, bank stabilization, etc.). Snow added, the Corps had also indicated target dates for the studies to be completed. K-2. Attorney-- Attorney Graves reported the following: · He, Parks Director Frates and Public Works Manager La Shot met with a representative from the Anchorage Solid Waste Department to review the plans of the proposed use of the Section 36 property. He has prepared a summary of the meeting and it will be included in the next meeting's packet. Graves noted, several suggestions were made in regard to the placement of the parking lot and the only problem now is funding. KENAI CITY COUNCIL ME~ING MARCH 19, 2003 PAGE 2 MOTION: Councilman Bookey MOVED to approve the consent agenda as amended. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENTS-- None. ITEM C: I~-PORTS OF IiP_R ASSEMRLY~ LEGISLATORS AND COUNCII~ Assemblywoman Glick reported actions taken during the Borough Assembly meeting of March 11. She noted in particular, the following: The Assembly set 10:00 a.m. on April 1 for a tour through the Emergency Operations Center at the Alaska Regional Fire Training Facility. Council also scheduled the date and determined lunch would be offered at the facility immediately after the tour. It was also dete _rra__ined letters of invitation be sent individually to the Borough Assembly members, as well as Borough Mayor Bagley, members of the LEPC, Borough Emergency Management Director, State Troopers, and media. ITEM D: PUBLIC HEARINGS D-1. Ordinance No. 1995-2003 -- Amending KMC 23.40.080 and 23.40.120 to Allow Employees to Elect the Opt-Out Provision of the Public Employees Retirement System (PERS} as Stated in AS 39.35.150{b} and/or Opt Out of Municipal Medical and Hospital Insurance. MOTION: Councilman Bookey MOVED for adoption of Ordinance No. 1995-2003 and Councilwoman Swarner SECONDED the motion. There were no public comments. Finance Director Semmens explained, including this amendment would allow the city and employees the option and can potentially allow the city to retain qualified people at a lower cost (the city wouldn't be paying PERS or insurance} ff they opt out. He al~o noted, to be eligible, the employee would have to meet requirements and the option will be ~unsetted in 2005. VOTE: IWilliams Moore Yes Bookey Yes Swarner [Yes Yes Porter Absent Jackman ] Yes MOTION PASSED UNANIMOUSLY. March 19, 2003 Council Meeting Partial Verbatim D-lo Ordinance No. 1995-2003 -- Amending KMC 23.40.080 and 23.40.120 to Allow Employees to Elect the Opt-Out Provision of the Public Employees Retirement System (PERS) as Stated in AS 39.35.150(b) and/or Opt Out of Municipal Medical and Hospital Insurance. MOTION: Councilman Bookey MOVED for adoption of Ordinance No. 1995-2003 and Councilwoman Swarner SECONDED the motion. Williams: Is there anyone from the general public wishing to be heard on this particular ordinance? This is an ordinance that will allow employees, both present and future, as I understand it, to opt out of the provisions of the Public Employment Retirement System. It's being done for a couple of purposes and I know our finance director has been through this thoroughly. Would you mind if we have our finance director... Snow: No. Williams: ...maybe brief us just briefly on the reason for the ordinance. Semmens' Mr. Mayor, members of the council and public. The reason for the ordinance is sim_ply to allow the city this option. The city and the employees this option. Our code currently doesn't allow it. State law does allow it. I believe it was House Bill 242 that was passed, I can't remember if it was last session or a previous session, but allow it due to the shortage of folks available, qualified people available and what it does for the City of Kenai, what it can potentially do for us is allow'us to retain qualified people at essentially a lower cost because if they opt out of the inSUrance program, for example, because they have insurance under their state retirement, then, of course, we would not be paying that. We also would not be paying their PERS contribution. Now, currently our, the PERS contribution is less than social security, but there's a question about whether or not we'd even have to pay social security. We're, we're researching some of these things. But, this ordinance would just make it possible in the event that it's, that it's absolutely found to be in the best interest of the city to do this. Williams: Any questions from the general public? Anyone wishing to be heard? All right, any questions froTM the council? Councilman Bookey. Bookey: Thank you Mr. Mayor. Explain to me then, on a new hire, is a new hire going to have the option to go PERS or to go social security? Se_m_mens: No, no, there's a couple of things here. One is that they have to be eligible for normal retirement. So, only in the event of a new hire having already satisfied all the requirements of retiree... Bookey: Okay. Semmens: ...in other words, they'd have to be vested. They'd have to be a certain age. All those requirements would have to be met before they could... Bookey: beg/nning... So, so this is not an option to new hires that are starting out at the Semmens- Normally not...normally it would not be and another thing, there is a sunset to this in state law of, I don't remember exactly the date, but it's I think, 2007 or it might be 2005. But anyway, it's only a couple of year's window here that this, this can take place. Although, ff a person elected it, they would be eligible for it, of course, until they quit. Bookey: Okay, okay, cause I don't want to see us up in the system of a two- leveled organization. Williams: Let me ask a question. Supposing that a retiree, having already retired from public service, came in and applied for a job and we decided to hire them under the present system. Normally speatdng, that retiree cannot have contributions made on his behalf or her behalf to the pension system since they are a/ready retired. Is that correct? Semmens: That's correct. Williams: Are we still required to make contributions to the system... Semmens: No. Williams: ...not on their behalf, but just to the system. Semmens: None. No. Williams: roll. Okay. All fight. Questions. Seeing no further questions, Clerk, call the VOTE: Moore Yes Porter Absent Jackman Yes MOTION PASSED UNANIMOUSLY. End of item. Carol L. Freas, Cxty Clerk 4/12/04 Council Present: Staff Present: Others: KENAI CITY COUNCIL BUDGET WORK SESSION KENAI CITY COUNCIL CHAMBERS APRIL 27, 2004 6:00 P.M. MAYOR JOHN J. WILLIAMS, PRESIDING Jim Bookey, Pat Porter, Linda Swamer, Joe Moore, Blaine Gilman, Rick Ross, John Williams Carol Freas, Linda Snow, Larry Semmens, Cary Graves, Ewa Jankowska, Scott Walden, Jack La Shot, Chuck Kopp, Klm Wannamaker, Rachael Craig, Keith Komelis, Bob Frates, Scott McBride, Mike Wichman, Randy Komfield, Lee Gattenby Michelle Glass (KVCB) The work session opened at approximately 6'04 p.m. Mayor Williams gave an update on the Pebble Mine Project and suggested a reception be planned for 60-80 people, including all the contractors, company officials, Chambers of Commerce representatives, elected officials, etc. He also suggested the contractors and company officials be toured around the area, including the airport facilities and perhaps Rig Tenders Dock, etc. Williams suggested the cost for the reception be split between the Airport and General Funds. Williams added, he'd like the reception scheduled as soon as possible. General Fund, Continued: · Library -- Jankowska reviewed the budget and its changes from the current budget, i.e. increases in books, funds for replacement of two computers, increase in travel, increase in Miscellaneous. Porter suggested $5,000 be taken from the travel budget and the removal of additional library hours as she wanted to fred funds for additional overtime in the Police Department budget and dust control applications. A brief discussion took place relating to lapse and cuts made in the current year's budget. Bookey stated he also would like to cut funds in travel and the 290 additional hours. Swarner and Gilman stated their preference to have the library open on Sundays. It was pointed out, opening the library on Sundays would require a half-time position and $25,000 to cover those salary costs. Bob Peters -- Stated his support of the library budget and noted the participation of the Friends of the Library and volunteer program helps to support the library and in doing so, there is less requested from the General Fund. Findings- Consensus was to not fund Sunday openings. There were no changes made to this budget. COUNCIL BUDGET WORK SESSION APRIL 27, 2004 PAGE 2 · Fire Department -- Chief Walden reviewed changes made to the budget compared to the current budget. It was noted $5,000 would be removed from the Machinery/Equipment account which had been earmarked for the Fire Department's portion of a new phone system. Since the phone system has already been replaced, the funds will not be required. Similar reductions will also be made in the Police and Communications budgets. It was also noted much of the equipment in the old ambulance will be removed and placed in the new ambulance. Also, some funds will come from the Borough for spruce bark beetle mitigation, however the level of funding is not know. Walden noted the Department of Forestry will have a Hot Shot crew working around some neighborhoods and trails removing trees. The Forestry Department is also applying for a grant to fund removal of trees in the gullies. Findings: There were no changes (except the new phone system funding). Kenai Police Department-- Chief Kopp reviewed the changes in the budget and noted the increases included were officer-safety related, i.e. cell phones, two new patrol cars, taser purchases, etc. A brief discussion took place relating to whether an additional officer position or additional overtime funds should be added to this budget. It was noted, there are funds included in the personnel services portion of the budget to cover additional overtime needs. If those funds are depleted, administration would bring forward a resolution to transfer funds from contingency to cover additional costs. Discussion also took place regarding the purchase and training/use of a canine unit. Kopp stated, though they were not requesting a dog, there is department support and they would not object if that is the direction council wants to go. Findings: There were no changes (except the new phone system funding). Communications -- Findings: There were no changes (except the new phone system funding). Animal Control -- Chief Kopp noted a fee schedule is being developed for animals taken in from outside the city. He also noted, one of the department trucks will be replaced in this budget. Findings: There were no changes. BREAK TAKEN: RESUMED: 7:55 P.M. 8:05 P.M. COUNCIL BUDGET WORK SESSION APRIL 27, 2004 PAGE 3 Planning & Zoning-- Findings: There were no changes. · Findings: Public Works Administration -- There were no changes. · Shop -- Findings: There were no changes. Buildings -- Public Works Manager La Shot noted it was his intention to do the exterior library and public safety building painting from the current budget. Then use the new year's budget for painting the gym floor at the recreation center and painting of the Visitor Center's exterior. Findings: There were no changes. · Legal -- Attorney Graves noted the budget included funds to cover the hiring of a code enforcement officer. Findings: There were no changes. · City Manager-- Findings: There were no changes. · Lands -- Findings: There were no changes. · Non-Departmental -- Council Member Swamer suggested the city's website be updated completely. An estimate for an overhaul was suggested as $ o,ooo. Findings: There were no changes. Finance -- Findings: There were no changes. COUNCIL BUDGET WORK SESSION APRIL 27, 2004 PAGE 4 Clerk -- Clerk Freas noted council had briefly discussed a desire to restore commission/committee meetings to a monthly schedule. She added, if council desired to change the schedule to monthly and have an attendant to take notes instead of the department representative, this budget did not reflect funding to cover those costs. She added, the amount of funding would also depend on the style of minutes they preferred, i.e. semi-detailed or meeting summaries. Findings: Consensus was to add contract secretary/meeting schedule on the list to discuss further at the May 3 work session. Funding information for both scenarios was requested. There were no changes to the budget presented. Kenai Visitors & Convention Bureau -- Findings- There were no changes to this budget. Equipment Replacement Fund Schedule -- It was noted the Fund did not include funds for police car replacements. It was also noted the bucket truck would need replacing in the future due to inadequate lift capacity, cracks in the boom, etc. Findings: There were no changes to this budget. WRAP-UP: Comments included: · A letter of request for a $5,000 donation for CARTS was reviewed. Consensus of council was to not fund the request. · Suggested additions on the list totaled $70,000. · An ordinance will be brought forward to appropriate funds to cover the cost for exterior maintenance of the Vintage Pointe facility. · The list of changes and costs was requested to be prepared and distributed to council prior to the budget work session. · A brief discussion took place relating to public relations and marketing of the city and their importance to its future. The work session ended at approximately 9:45 p.m. Notes prepared by: Carol L. Freas, City Clerk