HomeMy WebLinkAbout2019-04-18 Council Minutes - Budget Work SessionCouncil present:
Others present:
A. Call to Order
KENAI CITY COUNCIL WORK SESSION
FY2020 BUDGET
APRIL 18, 2019-2:00 P.M .
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
MAYOR GABRIEL, PRESIDING
NOTES
Mayor Gabriel , Vice-Mayor Navarre, J. Glendening, H. Knackstedt, R.
Peterkin , G . Pettey
City Manager P . Ostrander, Finance Director T . Eubank, City Attorney S .
Bloom, City Clerk J . Heinz, Human Resources Director S . Brown , City
Planner E . Appleby, Public Works Director S. Curtin , Buildings Official M.
Wesson, Airport Director M . Bondurant, Parks & Recreation Director B .
Frates, Senior Center Director K. Romain, Library Director M . Joiner, Acting
Fire Chief T. Prior, Police Chief D. Ross
Mayor Gabriel called the work session to order at 2 :00 p.m.
B. Budget Introduction -Paul Ostrander, City Manager
City Manager Ostrander provided an introductio n on the FY2020 Budget process, noting the
budget maintains the same level of services provided by the City. He added that there were
no additions or deletions in staffing and revenue shortfalls would be managed through attrition.
Ostrander noted that Department Heads were directed to achieve a 5% budget cut and, when
impacts outweighed the benefits, the cuts were not incorporated. He also provided an
overview of the efficiency initiative for FY2019. Ostrander added that the City was continuing
the development of its land management plan and exploring development incentives for
businesses. He noted that despite challenging times at the state level, the City was on solid
financial ground and health care and infrastructure would be areas to focus on going forward .
C. General and Revenue Overview Presentation -Terry Eubank, Finance Director
Finance Dire c tor Eubank provided a general overview including operational factors of
employee salaries, health benefits, and on-behalf PERS funding changes at the state level.
He also discussed the general fund revenues , special and capital expenditures, a nd Fund
Balance Policy compliance .
D . Department Presentations
1. City Manager
City Manager Ostra nder provided an overview of his missio n, FY19 Goals, FY20 Goals, and future
considerations from the draft budget noting there were no changes to his budget.
Visitor Center -an overview of the visitor center mission, FY19 Goals, FY20 Goals, and future
considerations from the draft budget was provided .
Land Administration -overview of the land admin istration mission, FY19 Goals, FY20 Goals, and
future considerations from the draft budget was provided. Recommendations for the Section 36
subdivision , partially owned by the City, were discussed.
2. Human Resources
Human Resources Director Brown provided an overview of the Human Resources mission, FY19
Goals, FY20 Goals , and future considerations from the draft budget. It was noted the changes to
the budget were mostly due to the initial office set up.
3 . Planning & Zoning
City Planner Appleby provided an overview of the Planning and Zoning mission , FY19 Goals ,
FY20 Goals, and future conside rations from the draft budget. Sign code and GIS mapping
projects were discussed .
4 . Finance
Finance Director Eubank provided an overview of the Finance Department mission, FY19 Goals,
FY20 Goals, and future considerations from the draft budget. Technology protections were
discussed . Eubank also noted the possibility of the development of a fleet replacement fund.
Non-Departmental -an overview of the Non-Departmental budget was provided noting insurance
increases , special projects , and capital improvement projects .
5 . Legal
City Attorney Bloom highlighted the Legal Department's mission, FY19 Goals and FY20 Goals
from the draft budget.
6 . Police
Chief Ross provided an overview of the Police Department's mission, FY19 Goals , FY20 Goals,
and future considerations from the draft budget noting recruitment and retention was a top priority.
Also highlighted grants received over the past year which don't appear in the budget.
Communications -an overview of the Communication Department's mission , FY19 Goals , FY20
Goals, and future considerations from the draft budget noting they were focusing on improving
standards of calls and the base station radio would need replaced in the next few years ; applying
for grants regularly .
Animal Control -an overview of the Animal Contro l Department's mission , FY19 Goals , FY20
Goals, and future considerations from the draft budget noting the number of animals taken in
hadn 't changed much; had a robust training process for volunteers. He added the department
was continuous ly trying to increase patrols and responsible ownership trainings .
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April 18 , 2019
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7 . Fire
Acting Chief Prior provided an overview of the Fire Department's mission , FY19 Goals, FY20
Goals , and future considerations from the draft budget noting recruitment and retention was a top
prio rity . It was noted the department had a need to replace aging air packs ; continu a lly applying
for grants.
8. Public Works
Public Works Director Curtin provided an overview of the Public Works Administration 's mission ,
FY19 Goals , FY20 Goals , and future considerations from the draft budget noting the addition of
roof replacement plans and HVAC replacement plans by building. A clarification of training
opportunities was provided .
Safety -an overview of the Safety Department's mission , FY19 Goals, FY20 Goals, and future
considerations from the draft budget was provided noting staff coordinated w ith OSHA; ex pressed
appreciation for the City's departments buying in to the programs.
Shop -an overview of the Shop Department's mission , FY19 Goals, FY20 Goals , and future
considerations from the draft budget was provided noting the s ignificant number of pieces of
equipment and other machines the shop maintains.
Streets -an overview of the Streets Department's mission , FY19 Goals , FY20 Goals , and future
considerations from the draft budget was provided noting a policy change to improve snow
removal operations. Combining street paving projects with AC pipe replacement was discussed.
Buildings -an overview of the Buildings Department's mission , FY19 Goals , FY20 Goals, and
future considerations from the draft budget was provided noting they were trying to get away from
paper processes where they could .
Street Lighting -an overview of the Street Lighting Department's mission , FY19 Goals , FY20
Goals , and future cons iderations from the draft budget was provided noting staff ensured all lights
were operational by Halloween . It was also noted that retrofits to LED lighting was happening on
a regular basis.
Boating Facility -an overview of the Boating Facility Department's mission , FY19 Goals , FY20
Goals, and future considerations from the draft budget was provided .
9 . L ibrary
Dire ctor Joiner provided an overview of the Library Department's mission , FY19 Goals, FY20
Goals , and future considerations from the draft budget. Staffing for operation on Sund ay was
discussed . Clarification was provided regarding the methodologies for purchasing and d iscarding
books. Joine r also provided an overview of a project to incorporate RFID c hips .
10. Parks , Recreation & Beautificat ion
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Director Frates provided an overview of the Parks, Recreation, & Beautification Department's
mission, FY19 Goals, FY20 Goals, and future considerations from the draft budget noting the
increase in the FY19 performance measures was due to the FY19 goals.
11 . City Clerk
City Clerk Heinz provided an overview of the City Clerk Department's mission , FY19 Goals , FY20
Goals, and future considerations from the draft budget noting significant decrease in budget due
to changing vendors for webcasting and video archiving meetings. Use of the state's election
equipment was also briefly discussed.
Leg islative -an overview of the Legislative Department's mission , FY19 Goals, FY20 Goals , and
future considerations from the draft budget noting reductions to travel and grants.
It was asked that the travel and $2,000 for miscellaneous grants be put back into the budget.
12. Personal Use Fishery Fund
a . General , Revenue, and Department Overview
Director Eubank noted a significant reduction in revenue for the Personal Use Fishery Fund for
FY19 . Fees, reserves, staffing, expenditures over revenues , and future adjustments were
discussed .
13 . Water & Sewer Fund
a. General and Revenue Overview
Director Eubank advised 97% of water & sewer fund revenues were usage fees, a nd fees would
be increasing by the Consumer Price Index. Special and capital expenditures proposed for the
FY20 budget, including a master plan and rate study, SCADA system integration, software
replacement, and capita l improvements were revi ewed.
b. Water & Sewer Departments
Public Works Director Curtin provided an overview of staffing, operations, and projects.
c. Sewer Treatment Plant
An overview of staffing and proposed projects was provided.
14. Airport Fund
a . General and Revenue Overview
Director Eubank presented highlights on the Airport Fund, including revenue sources, the fund
balance, and special and capital expenditures .
b. Airport Departments
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Director Bondurant provided an overview of the five Airport Department budgets missions, FY19
Goals, FY20 Goals, and future considerations from the draft budget noting current challenges
from the Termina l Rehabilitation Project, TSA requirements, seasonal staffing, wildlife hazard
plan , grants the department applied for, runway conditions, and float plane basin operations .
15. Senior Citizen Fund
a. General and Revenue Overview
Director Eubank provided an overview of revenue sources noting most funding came from state
and other grants, expenditures , and fund balance supplements.
b. Senior Citizen Fund Departments
Director Romain provided an overview of the Senior Citizen Fund Dep artments missions, FY19
Goals, FY20 Goals, and future considerations from the draft budget providing an overview of
services provided and discussing how losses of seniors affected the budget. The utilization of
local farmers was also discussed.
16. Congregate Housing
a. General and Revenue Overview
Director Eubank provided an overview of revenue sources and expenditures for the congregate
housing fund .
b. Congregate Housing Fund Departments
Director Romain provided an overview of the Senior Citizen Fund Departments missions, FY19
Goals, FY20 Goals, and future consideratio ns from the draft budget noting recent surveys showed
satisfaction. Clarification was provided that the boilers were slated for replacement and unit
upgrade s would be considered in the future .
17. Employee Health Care Fund
a. General, Revenue, and Department Overview
Director Eubank provided an overview of the Employee Health Care Fund noting it was built
expecting a 10% increase, annually. Projected revenue sources, the need for protecting the
reserves, utilization, and fund balance were discussed .
18. Equipment Replacement Fund
a . General, Revenue , and Department Overview
Director Eubank provided an overview of the Equipment Replacement Fund noting it had served
the City well . The departments that participated in use of the fund and a schedule of replacement
were discussed. A possible plan for leasing some graders in the winter months allowing for
diversion of funds to capita li ze the start of a fleet replacement fund was also discussed .
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19. Permanent Funds
a . General, Revenue, and Department Overview
Director Eubank noted earnings of the General Land Sale Permanent Fund and the projected
draw for the General Fund . He also provided an overview of the earn ings for the Airport Land
Sale Permanent Fund and the projected draw for that fund . He noted the upcoming changes to
the funds which were intended to "inflation-proof' the funds.
20 . Capital Plan
Directo r Euban k noted the development of a Capital Plan for FY2020 was being developed .
21. Debt Service
Director Eubank noted the debt service was for the library bonds debt and annual payments were
made out of the general fund.
E . Public Comment
There was no one wishing to be heard .
F. Council Comments
The exceptional work of the staff was noted
Council Member Peterkin ex pressed gratitude for the thorough e xplanations .
Council Member Pettey expressed gratitude for the exceptional work accomplished and the
"inflation-proofing " administration was working toward accomplishing.
Vice-Mayor Navarre was supportive of the capitalization of a fleet replacement fund ; added that
it was prudent for the City to maintain its infrastructure even if the state was not offering ass istance
in the future .
Council Member Glendening noted the City had an obligation to the residents to provide a level
of service and expressed appreciation for t he identification of revenues and efficiencies.
Council Member Knackstedt ex pressed gratitude to staff for implementing and acc omplishing the
work of the City noting it reflected well on the City Manager.
Mayor Gabriel e xpressed appreciation for time spent with the department heads and that they
were empowered to present their department's budgets. He added that he felt better about t he
City 's budget than the State's .
G . Adjournment
The work session adjourned at 10 :05 p.m .
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Notes were prepared by:
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