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HomeMy WebLinkAboutOrdinance No. 3063-2019_____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3063-2019 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA ADOPTING THE ANNUAL BUDGET FOR THE FISCAL YEAR COMMENCING JULY 1, 2019 AND ENDING JUNE 30, 2020 AND COMMITTING $500,000 OF GENERAL FUND, FUND BALANCE FOR CAPITAL IMPROVEMENTS, AMENDING THE SALARY SCHEDULE IN KENAI MUNICIPAL CODE CHAPTER 23.55- PAY PLAN, AMENDING EMPLOYEE CLASSIFICATIONS IN KENAI MUNICIPAL CODE CHAPTER 23.50, AND AMENDING COMMUNICATION DEPARTMENT UNIFORM ALLOWANCE IN KENAI MUNICIPAL CODE CHAPTER 23.55. WHEREAS, it is a requirement of the Code of the City of Kenai, Alaska, that the City Council, not later than the tenth day of June, adopt a budget for the following fiscal year and make appropriation of the monies needed; and, WHEREAS, committed fund balance represents resources whose use is constrained by limitations that Council imposes upon itself at its highest level of decision making, an Ordinance, and that remain binding unless removed in the same manner; and, WHEREAS, in recognition of deferred and ongoing maintenance needs of City roads and facilities, Council commits $500,000 for future renovation and improvements to City facilities; and, WHEREAS, the fiscal year 2020 Budget includes a 2.0% increase to the City’s Salary Schedule; and, WHEREAS, the pay increase will go into effect beginning July 1, 2019; and, WHEREAS, the FY2020 Budget includes a change in position requiring amendment to the City’s employee classifications; and, WHEREAS, a proposed change in uniform requirements in the Communication Department requires amendment to the uniform allowance section of the Kenai Municipal Code. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That certain document entitled "City of Kenai Fiscal Year 2020 Annual Budget" which is available for examination by the public in the Office of the City Clerk, the City’s website and is incorporated herein by reference is hereby adopted as the budget for the City of Kenai for the fiscal year commencing July 1, 2019 and ending June 30, 2020. Section 2. The following sums of money are hereby appropriated for the operations of the City of Kenai for the fiscal year commencing on the first day of July, 2019, and ending the 30th day of June, 2020, to be expended consistent with and subject to the restrictions, procedures, Ordinance No. 3063-2019 Page 2 of 6 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] and purposes set forth in the Code of the City of Kenai and to be expended substantially by line item in the manner shown in the budget adopted by Section 1 hereof: General Fund $16,556,301 Enterprise Fund – Congregate Housing Fund 496,568 Internal Service Funds: Equipment Replacement Fund 190,000 Employee Health Care Fund 2,598,511 Total Internal Service Funds 2,788,511 Special Revenue Funds: Personal Use Fishery Fund 499,035 Water & Sewer Fund 3,687,457 Airport Fund 3,003,306 Senior Citizen Fund 946,606 Total Special Revenue Funds 8,136,404 Capital Project Funds: Library Improvements Fund 50,000 Municipal Roadway Improvements Fund 200,000 Trail Construction Fund 37,800 Kenai Recreation Center Improvements Fund 100,000 Airport Operations Center Fund 40,000 Water & Sewer Improvements 250,000 Waste Water Treatment Plant Improvements Fund 810,000 Total Capital Project Funds 1,487,800 Permanent Funds: Airport Land Sale Permanent Fund 908,811 General Land Sale Permanent Fund 124,252 Total Permanent Revenue Funds 1,033,063 Debt Service Fund – Library Expansion Bonds 172,704 Total All Funds $30,671,351 Section 3. Council herby commits $500,000 of Unassigned General Fund, Fund Balance for future renovations and improvements to City facilities and streets. Section 4. Amendment of Salary Schedule in Chapter 23.55 of the Kenai Municipal Code: That the Salary Schedule in Kenai Municipal Code Chapter 23.55-Pay Plan, is hereby amended as follows: Classified employees excluding those engaged in fire protection activities. Range A B C D E F AA BB CC Step 1 $10.50 $10.76 $11.03 $11.29 $11.55 $11.81 $12.08 $12.34 $12.60 Ordinance No. 3063-2019 Page 2 of 6 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 1.1 11.02 11.30 11.57 11.85 12.12 12.40 12.67 12.95 13.22 2 11.72 12.01 12.31 12.60 12.89 13.19 13.48 13.77 14.06 2.1 12.34 12.65 12.96 13.27 13.57 13.88 14.19 14.50 14.81 2.2 13.05 13.38 13.70 14.03 14.36 14.68 15.01 15.33 15.66 2.3 13.71 14.05 14.40 14.74 15.08 15.42 15.77 16.11 16.45 2.4 16.00 16.40 16.80 17.20 17.60 18.00 18.40 18.80 19.20 2.5 18.14 18.59 19.05 19.50 19.95 20.41 20.86 21.31 21.77 3 18.25 18.71 19.16 19.62 20.08 20.53 20.99 21.44 21.90 4 19.17 19.65 20.13 20.61 21.09 21.57 22.05 22.52 23.00 5 20.12 20.62 21.13 21.63 22.13 22.64 23.14 23.64 24.14 6 21.11 21.64 22.17 22.69 23.22 23.75 24.28 24.80 25.33 7 22.19 22.74 23.30 23.85 24.41 24.96 25.52 26.07 26.63 8 23.31 23.89 24.48 25.06 25.64 26.22 26.81 27.39 27.97 9 24.47 25.08 25.69 26.31 26.92 27.53 28.14 28.75 29.36 10 25.67 26.31 26.95 27.60 28.24 28.88 29.52 30.16 30.80 11 26.96 27.63 28.31 28.98 29.66 30.33 31.00 31.68 32.35 12 28.34 29.05 29.76 30.47 31.17 31.88 32.59 33.30 34.01 13 29.72 30.46 31.21 31.95 32.69 33.44 34.18 34.92 35.66 14 31.22 32.00 32.78 33.56 34.34 35.12 35.90 36.68 37.46 15 32.77 33.59 34.41 35.23 36.05 36.87 37.69 38.50 39.32 16 34.41 35.27 36.13 36.99 37.85 38.71 39.57 40.43 41.29 17 36.13 37.03 37.94 38.84 39.74 40.65 41.55 42.45 43.36 18 37.93 38.88 39.83 40.77 41.72 42.67 43.62 44.57 45.52 19 39.83 40.83 41.82 42.82 43.81 44.81 45.80 46.80 47.80 20 41.83 42.88 43.92 44.97 46.01 47.06 48.10 49.15 50.20 21 43.94 45.04 46.14 47.24 48.33 49.43 50.53 51.63 52.73 22 46.10 47.25 48.41 49.56 50.71 51.86 53.02 54.17 55.32 23 48.42 49.63 50.84 52.05 53.26 54.47 55.68 56.89 58.10 24 50.91 52.18 53.46 54.73 56.00 57.27 58.55 59.82 61.09 Classified employees engaged in fire protection activities Range A B C D E F AA BB CC Step 13 21.23 21.76 22.29 22.82 23.35 23.88 24.41 24.95 25.48 14 22.30 22.86 23.42 23.97 24.53 25.09 25.65 26.20 26.76 15 23.42 24.01 24.59 25.18 25.76 26.35 26.93 27.52 28.10 16 24.59 25.20 25.82 26.43 27.05 27.66 28.28 28.89 29.51 17 25.82 26.47 27.11 27.76 28.40 29.05 29.69 30.34 30.98 Department Head Service employees Range Minimum Maximum 18 $78,910 $104,153 19 80,930 109,345 20 87,010 114,864 21 91,390 120,638 22 95,897 126,579 23 100,722 132,963 24 105,887 139,769 Section 5. Amendment of Employee Classification in Chapter 23.50 of the Kenai Municipal Code: Employee Classifications in Kenai Municipal Code Chapter 23.50 –Classification Plan, is hereby amended as follows: Ordinance No. 3063-2019 Page 2 of 6 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] CLASS CODE CLASS TITLE RANGE (a) SUPERVISORY AND PROFESSIONAL 101 City Manager NG 102 City Attorney NG 103 City Clerk NG 104 Finance Director* 24 105 Public Works Director* 23 106 Police Chief* 23 107 Fire Chief* 22 112 Airport Manager* 20 117 City Planner 16 118 Information Technology (IT) Manager 18 119 Assistant to City Manager/Special Projects 18 120 Library Director* 18 121 Senior Center Director* 18 122 Parks and Recreation Director* 17 123 Human Resources Director* 21 (b) ADMINISTRATIVE SUPPORT 203 Administrative Assistant I 8 204 Accounting Technician I 10 205 Accounting Technician II 11 206 Accountant 16 210 Administrative Assistant II 9 211 Administrative Assistant III 10 214 Library Assistant 6 218 Library Aide 2.5 219 Data Entry Clerk 1.1 (c) PUBLIC SAFETY 302 Fire Fighter 13 303 Police Lieutenant 20 304 Police Sergeant 18 305 Police Officer 16 306 Public Safety Dispatcher 9 307 Fire Engineer 15 311 Fire Captain 16 312 Fire Marshal 17 313 Communications Supervisor 12 314 Police Trainee 16/21 315 [BATTALION CHIEF/SAFETY OFFICER] Deputy Chief [17]20 316 Chief Animal Control Officer 11 317 Animal Control Officer 9 (d) PUBLIC WORKS Ordinance No. 3063-2019 Page 2 of 6 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 401 Building Official/Manager 17 402 Shop Foreman 16 403 Street Foreman 16 404 Sewer Treatment Plant Operator 13 405 Water and Sewer Operator 13 407 Equipment Operator 11 408 Shop Mechanic 14 409 Equipment Lead Operator 14 410 Water and Sewer Foreman 16 412 Building Maintenance Technician 12 413 Sewer Treatment Plant Lead Operator 14 414 Sewer Treatment Plant Foreman 16 417 Airport Operations Specialist 11 418 Airport Operations Supervisor 15 419 Building Maintenance Lead Technician 14 420 Water and Sewer Lead Operator 14 (e) GENERAL SERVICES 504 Parks, Beautification and Recreation Operator 9 505 Parks, Beautification and Recreation Laborer 2.4 506 Cook 2.4 507 Activities/Volunteer Coordinator 2.4 508 Meals/Driver 2.4 509 Kitchen Assistant 2.2 510 Outreach Worker 1.1 511 Janitor 2.3 512 Driver 1 * Department Heads Section 6. Amendment of Communication Department Uniform Allowance in Chapter 23.55 of the Kenai Municipal Code: Communication Department Uniform Allowance in Kenai Municipal Code Chapter 23.55 – Pay Plan, is hereby amended as follows: (a) The following annual allowances are established to defer the cost of uniform cleaning, maintenance, and replacement for second and succeeding years of service: Police $800 Fire $500 Animal Control $500 [DISPATCH $300] Payment shall be made in advance in July and January installments. (b) On hiring, the respective department head shall issue from stock or purchase from appropriate funds a basic uniform and equipment issue. Ordinance No . 3063-2019 Page 2 of 6 (c) Public Works Departments, Water and Sewer, and Animal Control personnel shall be authorized to purchase from appropriated funds, safety shoes, hard hats, and other OSHA required items. Laundry service will also be provided for those clothing items furnished. Section 7. Severability: That if any part or provision of this ordinance or application the reof to any person or c ircumstances is adjudged invalid by any court of competent jurisdiction , such judgment shall be confined in its operation to the part, provision, o r application directly involved in all controversy in which this judgment shall have been rendered , and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even withou t such part , provision , or applicat ion . Section 8. Effective Date: That pursuant to KMC 1.15.0?0(f), this ordinance shall take effect July 1 , 2019 . ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of May, 2019. ATTEST: Approved by Finance : L b.__ BRIAN GABRIEL SR , MAYOR Introduced : May 1, 2019 Enacted : May 15 , 2019 Effective : July 1, 2019 New Text Underl ined ; [DELETED TEXT BRACKETED) MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: April 25, 2019 SUBJECT: Ordinance 3063-2019 to adopt the FY2020 Budget The purpose of this memo is to summarize the changes that have been proposed to the FY2020 Budget since disbursement of work session materials on April 11th, and to communicate the result of these changes on each of the City’s operating funds. The following are the Administration’s recommended changes that have been incorporated into the draft budget and appropriating ordinance. New summary pages for the all funds, after incorporating the changes, are attached for your review. Administration Recommended Amendments: General Fund Revenues: Multipurpose Fees $20,000 Ambulance Fees 50,000 70,000 Expenditures: Legislative Transportation 4,800 Grants to Agencies 2,000 $6,800 These General Fund changes are the result of the following items: 1. Review of Multipurpose Facility revenues to date for FY19 and for fiscal years 2017 & 2018 suggest an increase in budgeted revenues by $20,000 to $130,000. 2. The Fire Chief is recommending an increase in Ambulance Billing Fees after comparison to allowable Medicare/Medicaid rates and comparison to the fees being charged by other Page 2 of 2 Ordinance 3063-2019 departments in the state. The result is expected to be an increase in annual revenue of $50,000. 3. After discussion with Council at the budget work session, the City Manager thought it appropriate to restore $4,800 of Council’s travel and restore the $2,000 in miscellaneous grants to agencies. Council Recommended Amendments: General Fund Revenues – PERS Funding $411 Expenditures: Clerk Wages $6,196 Leave 239 Medicare 94 PERS 1,363 Unemployment Insurance 32 Workers Compensation 20 $7,944 These General Fund changes are the result of the following items: 1. Council proposed amendment to the Clerk’s compensation agreement for FY2020 was more than what was included in the draft budget. attachments City of Kenai Fiscal Year 2020 Operating Budget General Fund Budget Projection Original Actual Actual Budget Projection Proposed Projection Projection FY2017 FY2018 FY2019 FY2019 FY2020 FY2021 FY2022 TAXABLE VALUES (000'S) 868,724$ 871,076$ 872,108$ 871,829$ 892,023$ 905,020$ 918,839$ MILL RATE 4.35 4.35 4.35 4.35 4.35 4.35 4.35 REVENUES Property & Sales Taxes Property Tax 3,919,797 3,868,445 3,855,798 3,881,792 3,940,692 4,008,100 4,067,011 Sales Tax 6,715,501 6,854,253 7,124,915 7,207,189 7,387,175 7,572,053 7,761,354 Total Property & Sales Taxes 10,635,298 10,722,698 10,980,713 11,088,981 11,327,867 11,580,153 11,828,365 Intergovernmental Revenue: PERS Funding 288,137 218,726 386,406 386,406 470,553 484,670 499,210 Community Assistance 278,232 250,852 223,258 210,345 171,001 171,001 171,001 Fish Tax 165,087 118,543 165,000 130,000 130,000 133,900 137,917 Other 83,990 101,120 58,000 96,740 113,300 118,965 124,913 Total State/Federal Revenue 815,446 689,241 832,664 823,491 884,854 908,536 933,041 Other Revenue Licenses and Permits 48,557 93,863 63,500 63,000 63,500 65,405 67,367 Ambulance Fees 419,940 443,544 425,000 450,000 500,000 515,000 530,450 Interest 35,762 45,801 100,000 150,000 180,000 180,000 180,000 Other 613,358 585,268 736,541 683,256 606,346 624,536 643,272 Total Other Revenue 1,117,617 1,168,476 1,325,041 1,346,256 1,349,846 1,384,941 1,421,089 Total Revenues 12,568,361 12,580,415 13,138,418 13,258,728 13,562,567 13,873,630 14,182,495 Transfer From Other Funds Charges to other funds 1,494,200 1,542,390 1,574,200 1,574,200 1,596,000 1,643,880 1,693,196 Capital Projects / Special Revenue 124,303 - 283,221 283,221 50,000 50,000 50,000 Enterprise 34,000 400,000 - - - - - Trust Fund 149,802 161,561 162,999 - 124,252 126,737 129,272 Total Transfers 1,802,305 2,103,951 2,020,420 1,857,421 1,770,252 1,820,617 1,872,468 Total Revenues and Transfers 14,370,666 14,684,366 15,158,838 15,116,149 15,332,819 15,694,247 16,054,963 EXPENDITURES/APPROPRIATIONS General Government 2,682,321 2,526,974 3,417,880 3,430,630 3,565,592 3,641,610 3,714,442 Public Safety 6,679,790 7,075,417 7,559,066 7,559,066 7,702,840 7,856,897 8,014,035 Public Works 2,148,432 2,270,210 2,492,669 2,496,246 2,399,834 2,447,831 2,496,788 Parks, Recreation & Cultural 1,984,887 1,955,374 2,073,983 2,118,402 2,070,830 2,112,247 2,154,492 Total Operating Expenditures 13,495,430 13,827,975 15,543,598 15,604,344 15,739,096 16,058,585 16,379,757 Transfers or Non-Operating 745,130 833,913 622,429 622,429 781,205 640,684 652,405 Total Expenditures/Appropriations 14,240,560 14,661,888 16,166,027 16,226,773 16,520,301 16,699,269 17,032,162 Total Surplus (Deficit) 130,106 22,478 (1,007,189) (1,110,624) (1,187,482) (1,005,022) (977,199) Projected Lapse - 5% - - 777,180 780,217 786,955 802,929 818,988 Adjusted Surplus (Deficit) 130,106 22,478 (230,009) (330,407) (400,527) (202,093) (158,211) Beginning Fund Balance 10,418,100 10,548,206 10,463,198 10,570,684 10,240,277 9,839,750 9,637,657 Ending Fund Balance 10,548,206 10,570,684 10,233,189 10,240,277 9,839,750 9,637,657 9,479,446 Restricted (588,937) (682,068) (700,599) (718,068) (754,068) (790,068) (826,068) Committed (409,746) (6,976,762) (7,117,565) (7,175,452) (6,836,838) (6,616,234) (6,171,686) Assigned (1,409,610) (2,416,658) (2,415,025) (2,346,757) (2,248,844) (2,231,355) (2,481,692) Unassigned Fund Balance 8,139,913$ 495,196$ -$ -$ -$ -$ -$ City of Kenai Fiscal Year 2020 Operating Budget Budget Projection Fund: 006 - Personal Use Fishery Fund Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues PERS Grant 2,688$ 1,546$ 4,169$ 4,169$ 4,637$ Usage Fees Beach Parking 182,853 174,613 175,000 118,307 146,460 Beach Camping 238,752 210,269 225,000 129,938 170,100 Dock Launch & Park 128,109 111,528 115,000 91,608 101,600 Dock Parking Only 14,807 12,010 15,000 9,547 10,800 Participant Drop-off Fee 10,717 7,481 8,000 5,943 6,715 Total Usage Fees 575,238 515,901 538,000 355,343 435,675 Miscellaneous Revenues Investment earnings 671 1,522 750 750 750 Other (3,680) 674 (1,500) (3,100) (3,500) Total Miscellaneous Revenues (3,009) 2,196 (750) (2,350) (2,750) Total Revenue 574,917 519,643 541,419 357,162 437,562 Expenditures Public Safety 116,875 114,542 96,686 96,686 88,051 Streets 53,068 32,938 61,066 61,066 55,235 Boating Facility 72,668 56,380 72,137 72,137 64,161 Parks, Recreation & Beautification 268,686 225,445 275,224 278,712 241,588 Total Expenditures 511,297 429,305 505,113 508,601 449,035 Transfers - General Fund - - 50,000 50,000 50,000 Total Expenditures & Transfers 511,297 429,305 555,113 558,601 499,035 Contribution To/(From) Fund Balance:63,620 90,338 (13,694) (201,439) (61,473) Projected Lapse - - 21,151 77,167 18,722 Adjusted (Deficit)/Surplus 63,620 90,338 7,457 (124,272) (42,751) Beginning Fund Balance 139,936 203,556 209,896 293,894 169,622 Ending Fund Balance 203,556$ 293,894$ 217,353$ 169,622$ 126,871$ City of Kenai Fiscal Year 2020 Operating Budget Budget Projection Fund: 010 - Water and Sewer Fund Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues PERS Grant 23,142$ 17,347$ 33,668$ 33,668$ 42,205$ Usage Fees Service Hook-up 2,205 2,608 3,927 2,945 3,063 Residential Water 791,580 830,102 832,279 839,251 872,821 Commercial Water 315,494 327,519 350,141 335,700 349,128 Residential Sewer 1,170,897 1,182,083 1,182,299 1,197,528 1,245,429 Commercial Sewer 445,805 453,930 494,807 466,251 484,901 Total Usage Fees 2,725,981 2,796,242 2,863,453 2,841,675 2,955,342 Miscellaneous Revenues Penalty and Interest 35,839 36,959 43,250 40,000 41,600 Interest Earnings 5,117 11,775 16,000 12,000 12,480 Other 4,361 24,775 3,000 3,000 3,000 Total Miscellaneous Revenues 45,317 73,509 62,250 55,000 57,080 Total Revenues 2,794,440 2,887,098 2,959,371 2,930,343 3,054,627 Expenditures Water Department 719,328 841,231 949,971 967,771 1,037,087 Sewer Department 723,136 456,195 499,384 499,384 594,826 Wastewater Treatment Plant Department 987,096 1,116,312 1,208,057 1,208,057 2,055,544 Total Expenditures 2,429,560 2,413,738 2,657,412 2,675,212 3,687,457 Contribution To/(From) Fund Balance:364,880 473,360 301,959 255,131 (632,830) Projected Lapse (6%)- - 136,903 137,971 162,297 Adjusted (Deficit)/Surplus 438,862 393,102 (470,533) Beginning Fund Balance 1,705,552 2,070,432 2,633,097 2,543,792 2,936,894 Ending Fund Balance 2,070,432$ 2,543,792$ 3,071,959$ 2,936,894$ 2,466,361$ City of Kenai Fiscal Year 2020 Operating Budget Fund: 008 - Airport Fund Department: Airport Fund Summary Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues State & Federal Grants 29,726$ 21,891$ 36,385$ 36,385$ 42,663$ Usage Fees Fuel Sales 7,621 10,685 10,000 17,500 17,500 Fuel Flowage 29,207 12,093 35,000 15,000 15,000 Float Plane 620 722 1,500 750 750 Tie Down 7,403 6,832 7,500 7,500 7,500 Landing 529,132 401,556 432,500 432,500 505,500 Plane Parking 5,725 9,018 5,000 10,000 10,000 Total Usage Fees 579,708 440,906 491,500 483,250 556,250 Rents and Leases Land 674,781 691,152 547,610 547,610 563,293 Total Rents and Leases 674,781 691,152 547,610 547,610 563,293 Miscellaneous Penalty and Interest 8,321 7,513 5,000 5,000 5,000 Interest on Investments 15,598 20,563 25,000 25,000 35,000 Other 12,666 9,769 10,000 10,000 10,000 Total Miscellaneous 36,585 37,845 40,000 40,000 50,000 Terminal Revenue Parking Fees 233,284 223,360 250,000 250,000 250,000 Rents and Leases 308,275 317,431 378,160 378,160 395,344 Penalty and Interest 1,728 3,989 4,500 4,500 4,500 Car Rental Commissions 156,497 171,096 175,000 175,000 180,000 Advertising Commissions 7,421 10,648 9,000 9,000 9,000 Miscellaneous 1,145 3,983 1,500 1,500 1,500 Total Terminal Revenue 708,350 730,507 818,160 818,160 840,344 Transfers In Airport Land Trust Fund 1,175,414 1,210,348 1,230,025 1,230,025 908,811 Total Transfers In 1,175,414 1,210,348 1,230,025 1,230,025 908,811 Total Revenues 3,204,564 3,132,649 3,163,680 3,155,430 2,961,361 Expenditures Airport Terminal 578,256 578,328 630,109 2,200,875 616,753 Airport Airfield 1,640,517 1,631,810 1,731,779 1,757,779 1,750,795 Airport Administration 411,745 621,759 596,199 591,699 348,507 Airport Other Buildings and Areas 139,947 261,943 164,943 169,443 248,777 Airport Training Facility 40,295 36,125 38,474 38,474 38,474 Total Expenditures 2,810,760 3,129,965 3,161,504 4,758,270 3,003,306 Contribution To/(From) Fund Balance:393,804 2,684 2,176 (1,602,840) (41,945) Projected Lapse (6%)- - 116,255 116,254 116,016 Adjusted (Deficit)/Surplus 118,431 (1,486,586) 74,071 Beginning Fund Balance 4,682,502 5,076,306 5,380,197 5,078,990 3,592,404 Ending Fund Balance 5,076,306$ 5,078,990$ 5,498,628$ 3,592,404$ 3,666,475$ City of Kenai Fiscal Year 2020 Operating Budget Fund: 019 - Senior Citizens Fund Department: Title III Summary Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues State Grants 208,654$ 198,577$ 203,626$ 203,626$ 205,831$ USDA Grant 22,415 18,958 15,000 15,000 20,000 Choice Waiver 220,419 195,012 200,000 135,000 125,000 KPB Grant 126,207 126,207 126,207 126,207 126,207 United Way 5,977 9,598 15,000 15,000 15,000 Rents and Leases 8,260 8,324 13,000 13,000 13,000 Donations 6,975 47,668 32,000 32,000 32,000 Donation - Senior Connection 7,677 50,000 50,000 50,000 50,000 Meal Donations 75,321 82,837 82,500 82,500 82,500 Transfer from General Fund - Operations 183,291 176,739 170,857 214,252 241,393 Transfer from General Fund - Capital - - 45,670 45,670 14,100 Other 306 (42) 300 300 300 Total Revenue 865,502 913,878 954,160 932,555 925,331 Expenditures Senior Citizen Access 153,905 157,065 157,364 157,364 191,256 Congregate Meals 218,035 220,661 285,370 287,995 261,266 Home Meals 176,509 205,562 209,875 210,750 223,664 Senior Transportation 67,803 80,087 81,234 81,234 104,527 Choice Waiver 249,525 250,503 244,671 244,671 165,893 Total Expenditures 865,777 913,878 978,514 982,014 946,606 Contribution To/(From) Fund Balance:(275) - (24,354) (49,459) (21,275) Projected Lapse (3%)- - 24,354 49,459 23,460 Adjusted (Deficit)/Surplus (275) - - - 2,185 Beginning Fund Balance 275 - - - - Ending Fund Balance -$ -$ -$ -$ 2,185$ City of Kenai Fiscal Year 2020 Operating Budget Budget Projection Fund: 009 - Congregate Housing Fund Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues PERS Grant 1,780$ 1,153$ 1,866$ 1,866$ 2,865$ Rents and Leases 386,613 394,618 390,515 390,515 406,145 Interest on Investments 1,822 2,558 4,000 4,000 4,000 Miscellaneous 95 (300) - - - Total Revenues 390,310 398,029 396,381 396,381 413,010 Expenses 498,181 475,300 503,144 503,144 496,568 Net Income (loss)(107,871) (77,271) (106,763) (106,763) (83,558) Beginning Retained Earnings 474,257 506,832 539,893 570,007 482,690 Capital Asset Acquistions - - (121,000) (121,000) - Allocated to Capital Projects - - - - - Credit for Depreciation 140,446 140,446 140,446 140,446 140,446 Available Retained Earnings 506,832$ 570,007$ 452,576$ 482,690$ 539,578$ City of Kenai Fiscal Year 2020 Operating Budget Fund: 011 - Employee Health Care Fund Department: 18 - Health Care Fund Summary Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues Charge for Services -$ 1,903,581$ 2,148,495$ 2,148,495$ 2,436,200$ Participant premiums - 236,949 243,552 243,552 297,108 Transfer from Other Funds 117,637 - - - - Interest Earnings - 836 1,000 1,000 1,000 Total Revenues 117,637 2,141,366 2,393,047 2,393,047 2,734,308 Expenses - 2,010,581 2,391,806 2,391,806 2,733,336 Net Income (loss)117,637 130,785 1,241 1,241 972 Beginning Retained Earnings - 117,637 100,000 248,422 249,663 Available Retained Earnings 117,637$ 248,422$ 101,241$ 249,663$ 250,635$ City of Kenai Fiscal Year 2020 Operating Budget Fund: 061 - Equipment Replacement Fund Department: 59 - Equipment Replacement Fund Summary Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues Rents & Leases 339,205$ 324,104$ 379,876$ 379,876$ 321,754$ Interest Earnings 4,770 7,006 20,000 20,000 14,000 Other income - - - 400,000 25,000 Total Revenues 343,975 331,110 399,876 799,876 360,754 Expenses - Depreciation 168,486 160,125 160,125 160,125 190,000 Net Income (loss)175,489 170,985 239,751 639,751 170,754 Transfers out - (400,000) - - - Total net income (loss) and transfers out 175,489 (229,015) 239,751 639,751 170,754 Beginning Net Position 2,981,827 3,157,316 2,928,301 2,928,301 3,568,052 Ending Net Position 3,157,316 2,928,301 3,168,052 3,568,052 3,738,806 Invested in Capital Assets (1,456,036) (1,754,920) (2,739,818) (2,594,366) (2,404,366) Unrestricted Net Position 1,701,280$ 1,173,381$ 428,234$ 973,686$ 1,334,440$ City of Kenai Fiscal Year 2020 Operating Budget Budget Projection Land Sales Permanent Funds Original Manager Actual Actual Budget FY2019 Proposed FY2017 FY2018 FY2019 Projection FY2020 FUND 082-52 Airport Land Sales Permanent Fund Revenues Acct. 36610 Investments Earnings 2,055,039$ 1,513,454$ 1,520,536$ 1,520,536$ 1,333,556$ Acct. 36645 Interest on Land Sale Contracts - - 10,000 10,000 10,000 Acct. 33640 Land Sales 362,731 9,234 - - - Total Revenue 2,417,770 1,522,688 1,530,536 1,530,536 1,343,556 Expenses Transfer to Airport Land System Fund 1,175,414 1,210,348 1,230,025 1,230,025 908,811 Contributions To/(From) Fund Balance 1,242,356 312,340 300,511 300,511 434,745 Beginning Fund Balance 23,037,659 24,280,015 24,600,203 24,592,355 24,892,866 Ending Fund Balance 24,280,015$ 24,592,355$ 24,900,714$ 24,892,866$ 25,327,611$ FUND 081-52 General Land Sales Permanent Fund Revenues Acct. 36610 Investments Earnings 256,966$ 187,598$ 189,844$ 189,844$ 175,829$ Acct. 36645 Interest on Land Sale Contracts - - - - - Acct. 33640 Land Sales - 54,001 - - - Total Revenue 256,966 241,599 189,844 189,844 175,829 Expenses Transfer to General Fund 149,802 161,561 162,999 - 124,252 Contributions To/(From) Fund Balance 107,164 80,038 26,845 189,844 51,577 Beginning Fund Balance 2,942,775 3,049,939 2,965,790 3,129,977 3,319,821 Ending Fund Balance 3,049,939$ 3,129,977$ 2,992,635$ 3,319,821$ 3,371,398$ City of Kenai Fiscal Year 2020 Operating Budget Fund 048 - Debt Service Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues Bond Interest Subsidy 34,959 34,996 34,996 34,996 32,607 Transfer from General Fund 140,439 142,002 143,402 143,402 140,097 Total Revenue 175,398 176,998 178,398 178,398 172,704 Expenditures Parks, Recreation & Culture 175,398 176,998 178,398 178,398 172,704 Contributions To/From Fund Balance - - - - - Beginning Fund Balance - - - - - Ending Fund Balance -$ -$ -$ -$ -$ City of Kenai Fiscal Year 2020 Capital Budget Summary of Projects and Funding Sources General Fund Airport Special Revenue Fund Water & Sewer Special Revenue Fund Senior Citizen Special Revenue Fund Library Improvements Capital Project Fund Funds Provided: General Fund Revenues/Reserves 14,100$ -$ -$ -$ -$ Airport Fund Revenues/Reserves - 800 - - - Water & Sewer Fund Revenues/Reserves - - 355,000 - - Transfer from Other Funds: General Fund - - - 14,000 50,000 Airport Special Revenue Fund - - - - - Water & Sewer Special Revenue Fund - - - - - Total Funds Provided 14,100 800 355,000 14,000 50,000 Funds Applied: 14,100 800 - - - - - - - 50,000 Kenai Recreation Center roof repair - - - - - Kenai Recreation Center grading repair - - - - - - - - - - - - 300,000 - - - - - - - - - - - - - - - - - - - 55,000 - - - - - - - - - - - - - - - - - to be identified - - - - - Municipal Park trail construction - - - - - Senior Center sound system upgrade Phase II - - - 14,000 - Total Funds Applied 14,100 800 355,000 14,000 50,000 Net Results From Operations -$ -$ -$ -$ -$ WWTP Aeration basin restore/coating SCADA system integration Hydrant mapping & installation Phase I City street sink hole repairs Other street repair and improvement projects WWTP Belt Press replacement Network equipment replacement Phase I Concrete sidewalk and retaining wall repair Airport Operations dry sprinkler system replacement Water & Sewer Utility masterplan and rate study WWTP Clarifier/Pump house coatings City of Kenai Fiscal Year 2020 Capital Budget Summary of Projects and Funding Sources Kenai Recreation Center Improvements Capital Project Fund Airport Operations Facility Capital Project Fund Waste Water Treatment Plant Capital Project Fund Water & Sewer Capital Project Fund Municipal Roadway Improvements Capital Project Fund Trail Construction Capital Project Fund Total -$ -$ -$ -$ -$ -$ 14,100$ - - - - - - 800 - - - - - - 355,000 100,000 - - - 200,000 37,800 401,800 - 40,000 - - - - 40,000 - - 630,000 75,000 - - 705,000 100,000 40,000 630,000 75,000 200,000 37,800 1,516,700 - - - - - - 14,900 - - - - - - 50,000 50,000 - - - - - 50,000 50,000 - - - - - 50,000 - 40,000 - - - - 40,000 - - - - - - 300,000 - - 40,000 - - - 40,000 - - 500,000 - - - 500,000 - - 90,000 - - - 90,000 - - - - - - 55,000 - - - 75,000 - - 75,000 - - - - 71,000 - 71,000 - - - - - - - - - - - 129,000 129,000 - - - - - 37,800 37,800 - - - - - - 14,000 100,000 40,000 630,000 75,000 200,000 37,800 1,516,700 -$ -$ -$ -$ -$ -$ -$ City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Network Equip. Replacement Dan Castimore Various 001, 008 Finance 2 $14,900 0014182024 $14,100 0084642024 $800 Purchase and install prior to July 2020. Replace network equipment that is no longer supported by the vendor. This includes network switches that are 10 years old, and wireless equipment that is no longer compatible with the wireless controller. None. City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Concrete Sidewalk & Retaining Scott Curtin Library Impr. Capital Proj Fund 218 Buildings 1 $50,000 GF $50,000 Design - 1st quarter FY20 Construction - dependent on block availability The existing CMU wall at the Library was not replaced with the Library Renovation Project 10 years ago. It is failing and does not look good with the renovated portions of the Library. Additionally, there are several cracked sidewalks that should be replaced for safety reasons. Demolition and replacement of affected areas, installation of new concrete sidewalks and new landscape retaining wall blocking. City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Kenai Rec. Center Roof Repair Scott Curtin Kenai Recreation Center CP 119 Recreation 2 $50,000 GF $50,000 Repair 1st Quarter FY20 The Recreation Center roof has portions that are beyond their intended useful life. Areas within the Rec Center are experiencing some minor roof leaking. This project will provide for a Hot Mop and top cap layer to seal up leaking areas. City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Kenai Rec. Center Grading Scott Curtin Kenai Recreation Center CP 119 Recreation 3 $50,000 GF $50,000 Design / Construction - 1st quarter FY20 The grading at the Recreation Center does not currently provide enough positive drainage away from the structure. Snow & Rain have begun to deteriorate the exterior siding, as well as interior drywall and tile within the affected area. This project will regrade the property to drain away from the building down to a new storm detention basin. City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Replace Dry Sprinkler Scott Curtin Airport Ops Capital Proj Fund 328 Airport - Kenai Ops Facility 1 $40,000 Airport SR $40,000 Seventeen year old Dry Sprinkler piping is corroding and again starting to develop leaks. When leaks occur, the dry system could activate and fill with water. During freezing conditions, pipes could freeze and cause extensive damage. Three bays are involved: Apparatus bay, wash bay and sand storage bay. Replace dry sprinkler piping, and reroute under ceiling with galvanized pipe. Failure of dry sprinkler system will cause system discharge and damage to the facility and its contents. City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Update Master Plan/Rate Study Scott Curtin Water & Sewer SR Fund 010 Water, Sewer & WWTP 2 $300,000 0104674531 $150,000 0104664531 $75,000 0104654531 $75,000 RFP - 1st quarter FY20 The current Master Plan was completed in 2003/2004. There have been numerous changes to permitting requirements, personnel changes, equipment failures, etc. in that time. The rate increases that resulted from that plan were implemented and we have not had a rate increase for two years. Costs split between water and sewer are $75,000 each. The direction this report will provide will prevent funds from being expended on lower priority items. Master Plans should be updated every 10 years. This will provide a direction for future improvements and expenditures. City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Clarifier/Pump Housing Coatings Scott Curtin WWTP CP Fund 625 WWTP 5 $40,000 WWTP $40,000 Seasonal work. Begin 1st quarter FY20 Complete 4th quarter FY20 Exteriors of Clarifier Tanks are raw concrete that have weathered for 40 years. Areas of concrete have exposed aggregate, doors and frames are extremely rusted due to the salt air. This project will provide an exterior coating to both clarifier's and pump house and replacement of exterior doors. Most of the work will be completed by staff. Replacement of three metal doors, frames and hardware. Patching of rough concrete areas. Application of topcoat. This will be rolled on product and will look similar to a rough stucco. Staff will work on as work/staff availability permits. This is appropriate long term maintenance. It will provide a noticeable face lift to the facility where the public will notice the property is being cared for. City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Belt Filter Press Roscoe Barrett WWTP CP Fund 625 WWTP 1 $500,000 WWTP $500,000 Design - 1st quarter FY20 Invitation to bid - 3rd quarter FY20 Construction - 4th quarter FY20 The belt press was installed during the last upgrade in 1981, for the past 15 years it has remained serviceable only by the extraordinary effort of the crew. This press is no longer in production and it has become difficult to find replacement parts. Some parts have been fabricated to remain operational. Add a screw press to the existing system utilizing the same sludge piping, polymer injection and drainage system currently in place. Estimates of design and improvements would cost approximately $500.000.00. The belt press is the last stage of wastewater treatment and a very critical component in operational control. If for any reason this process through either a major breakdown or the possibility of a long delay in obtaining parts our process could be compromised to the point of failing our permit. City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Aeration Basin Restore/Coating Scott Curtin WWTP CP Fund 625 WWTP 4 $90,000 WWTP $90,000 Design - 1st quarter FY20 Construction - 4th quarter FY20 The WWTP has four, 130,000 gallon aeration basins. Each basin is approximately 76' x 20' x12'. The basins are 40+ years old, and they have some concrete cracking, as well as some concrete scouring at the surface from years of the basins churning. Basins need sand blasting, epoxy fill of cracks, patching of scoured areas and epoxy coating. Phase I will complete one of the four basins. Completion of this work will allow the basins to continue to operate for another 30 years. City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: SCADA Integration Scott Curtin Water & Sewer SR Fund 621 Water/Sewer/WWTP 3 $55,000 0104654531 $12,500 0104664531 $12,500 0104674531 $30,000 Phase I to be completed in FY2020. The City has an existing Wonderware SCADA system operational. The Water/Sewer side is extensively more setup than the WWTP. The only items tying into SCADA at the WWTP are level indicators for the hypochlorite and bisulfite tanks. There are numerous other items that could be tied in, including the new blowers and DO probes. Requesting we spread costs out over the next few years to coincide with new equipment replacing old. Water/Sewer: Continue with an annual $25K/year service contract for SCADA Integration split between Water and Sewer for the next three years. Implementation of this system will gain insight and oversight into our operational processes which will provide opportunities for efficiency and lower operating costs. City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Hydrant Mapping & Installation Scott Curtin Water & Sewer CP Fund 621 Water 6 $150,000 W&S SR $150,000 Mapping - 1st quarter FY20 Installation - 4th quarter FY20 Correctly identify all hydrants within city limits and map to GIS. Provide for installation of hydrants at dead ends of main runs to allow for sufficient flushing. This project will provide for the verification of all hydrants, their locations and ownership, placement onto GIS by Gary, our GIS integrator, and some installation of new hydrants in areas identified. This will allow for a greater control and understanding of our water system. Provide a more thorough flushing of the distribution system. Areas of the City which may continue to be underserved by hydrants at risk of fire. Risk of allowing some areas of distribution system seeing low flows having lower quality water due to inability to thoroughly flush mains. City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: City Street Sink Hole Repairs Scott Curtin Municipal Roadway Imp. CP 755 N/A 1 $71,000 Gen. Fund $71,000 FY20 Construction season. Public Works has identified several City streets which have been negatively impacted by sinkholes and other settling. Cause of the problems varies from failing storm drains to non-suitable materials being present in road base. This project will excavate and repair broken storm drains, excavate and remove non-suitable materials, and repave impacted areas. City streets identified for work include Aliak, Highbush, Water Gate & Pirate, Water Gate & Schooner, Water Gate & Setnet, Fourth & Haller, Eagle Rock & Tern, and Silver Salmon. Repair will mitigate future damage and expense associated with failures. City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Streets Improvements/Repairs Scott Curtin Municipal Roadway Imp. CP 755 Streets 2 $129,000 General $129,000 FY2020 Construction season after project identification. Funds to be available for road and curb repairs after project prioritization. N/A City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Municipal Park Trail Const. Bob Frates Trail Construction CP Fund 751 N/A 1 $37,800 Gen. Fund $37,800 Construction in summer 2019. Project establishes trails in close proximity of existing use areas (ballpark, poetry trail, and playground area). Project will include construction of 0.40 miles of new trail, surveying for future trail construction, and bridge design work for future trail construction. Future operational costs for the trail work would be minimal and are estimated to be less than $1,000. City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Senior Center Sound Phase II Dan Castimore Senior Citizen Fund 019 Access 1 $14,000 GF $14,000 Install equipment prior to July 2020 This project would provide additional microphones and microphone stands, provide a VOIP card to allow for teleconferences using the sound system, and complete the control system. Currently there are no controls for the sound system in the game room, which limits the usefulness of this system. In the initial project, cabling for wired microphones was installed, but no equipment was purchased. This will allow us to better accommodate our seniors who have hearing or visual impairments, thus improving their quality of life. With this new addition, we will increase our add on options for Center rentals making us more competitive with modern technology in a tight market. MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: May 8, 2019 SUBJECT: Recommended Amendment to Ordinance 3063-2019 The purpose of this memo is to recommend amendments to the FY2020 Draft Budget and FY2020 Budget adoption ordinance, Ordinance 3063-2019, and the basis for each recommendation. New summary pages for the all funds, after incorporating the changes, are attached for your review. Budget Document Amendments General Fund Revenues: Other Animal Shelter Fees $42,000 Expenditures: Police Transportation $26,000 Animal Control Operating Supplies 1,500 Professional Services 3,500 $31,000 Budget Ordinance Amendments The following amendment is needed to Ordinance 3063-2019 to incorporate this recommendation. Amend the General Fund appropriation amount in Section 2 to be $16,551,301 and amend the Total All Funds appropriation amount to be $30,446,176. Proposed changes to the Police – Transportation account is recommended to fund police academy training for two officers. In the past, the State of Alaska has paid the costs for new Page 2 of 3 Ordinance 3063-2019 officers to attend the Alaska State Trooper academy in Sitka. Budget cuts in recent years has forced the Alaska Police Standards Council to begin charging local agencies approximately $13,000 per attendee. The department currently has three open position and anticipates at least two will be new officers requiring attendance to the Sitka academy. Proposed changes to Animal Control are the result of a proposal to contract with the City of Soldotna to perform animal control shelter services. The City will accept and shelter animals from Soldotna Animal Control in exchange for a minimum annual fee of $42,000 for up to one-hundred fifty (150) animals and a fee of $384 per animal over one-hundred fifty (150). Budget Document Amendments Water & Sewer Fund Expenditures: Water Professional Services ($ 87,500) Transfer to Other Funds 87,500 - Sewer Professional Services ($ 87,500) Transfer to Other Funds 87,500 - Waste Water Treatment Plant Professional Services ($180,000) Transfer to Other Funds 180,000 - Total Water & Sewer Fund $ - Water & Sewer Improvements Capital Project Fund Revenues: Transfer from Other Funds $175,000 Expenditures: Water & Sewer Utility masterplan and rate study $150,000 SCADA system integration 25,000 Total Expenditures $175,000 Wastewater Treatment Plan Improvements Capital Project Fund Revenues: Transfer from Other Funds $180,000 Expenditures: Water & Sewer Utility masterplan and rate study $150,000 SCADA system integration 30,000 Total Expenditures $180,000 Budget Ordinance Amendments The following amendment is needed to Ordinance 3063-2019 to incorporate this recommendation. Amend the Water & Sewer Improvements Capital Project Fund appropriation amount in Section 2 to be $250,000, amend the Wastewater Treatment Plant Improvements Capital Page 3 of 3 Ordinance 3063-2019 Project Fund appropriation amount to be $810,000 and amend the Total All Funds appropriation amount to be $30,801,176. The administration is recommending moving the expenditures for the Water & Sewer Utility masterplan and rate study from the utility’s operating budget to the capital budget as the project is likely to last beyond a single fiscal year and budgets for capital project funds are project length rather than limited to a single fiscal year. Overall spending does not increase but total expenditures do because the transfer from the utility’s operating fund is an expenditure of funds and the spending of funds in the capital project is also an expenditure. Budget Ordinance Amendments The following clerical amendments are needed to Ordinance 3063-2019. Amend the Class Title of the Human Resource Director* to delete the underline in Section 5. The underline should not have been included in the ordinance and should be removed. Amend the Range of the Janitor from a Range 2.4 to a Range 2.3 in Section 5. This proposed amendment to the Janitor Position pay range was inadvertently omitted from the Ordinance at introduction. With the recent vacancy in the position, the administration took an opportunity to regrade the position and believe it is better classified at range 2.3. Personnel amounts for the Senior Citizen Fund represent the position at a range 2.3 as well. Your support for these amendment is respectfully requested. attachments City of Kenai Fiscal Year 2020 Operating Budget General Fund Budget Projection Original Actual Actual Budget Projection Proposed Projection Projection FY2017 FY2018 FY2019 FY2019 FY2020 FY2021 FY2022 TAXABLE VALUES (000'S)868,724$ 871,076$ 872,108$ 871,829$ 892,023$ 905,020$ 918,839$ MILL RATE 4.35 4.35 4.35 4.35 4.35 4.35 4.35 REVENUES Property & Sales Taxes Property Tax 3,919,797 3,868,445 3,855,798 3,881,792 3,940,692 4,008,100 4,067,011 Sales Tax 6,715,501 6,854,253 7,124,915 7,207,189 7,387,175 7,572,053 7,761,354 Total Property & Sales Taxes 10,635,298 10,722,698 10,980,713 11,088,981 11,327,867 11,580,153 11,828,365 Intergovernmental Revenue: PERS Funding 288,137 218,726 386,406 386,406 470,553 484,670 499,210 Community Assistance 278,232 250,852 223,258 210,345 171,001 171,001 171,001 Fish Tax 165,087 118,543 165,000 130,000 130,000 133,900 137,917 Other 83,990 101,120 58,000 96,740 113,300 118,965 124,913 Total State/Federal Revenue 815,446 689,241 832,664 823,491 884,854 908,536 933,041 Other Revenue Licenses and Permits 48,557 93,863 63,500 63,000 105,500 108,665 111,925 Ambulance Fees 419,940 443,544 425,000 450,000 500,000 515,000 530,450 Interest 35,762 45,801 100,000 150,000 180,000 180,000 180,000 Other 613,358 585,268 736,541 683,256 606,346 624,536 643,272 Total Other Revenue 1,117,617 1,168,476 1,325,041 1,346,256 1,391,846 1,428,201 1,465,647 Total Revenues 12,568,361 12,580,415 13,138,418 13,258,728 13,604,567 13,916,890 14,227,053 Transfer From Other Funds Charges to other funds 1,494,200 1,542,390 1,574,200 1,574,200 1,596,000 1,643,880 1,693,196 Capital Projects / Special Revenue 124,303 - 283,221 283,221 50,000 50,000 50,000 Enterprise 34,000 400,000 - - - - - Trust Fund 149,802 161,561 162,999 - 124,252 126,737 129,272 Total Transfers 1,802,305 2,103,951 2,020,420 1,857,421 1,770,252 1,820,617 1,872,468 Total Revenues and Transfers 14,370,666 14,684,366 15,158,838 15,116,149 15,374,819 15,737,507 16,099,521 EXPENDITURES/APPROPRIATIONS General Government 2,682,321 2,347,926 3,237,629 3,250,379 3,392,394 3,464,948 3,534,247 Public Safety 6,679,790 7,075,417 7,559,066 7,559,066 7,733,840 7,888,517 8,046,287 Public Works 2,148,432 2,270,210 2,492,669 2,496,246 2,399,834 2,447,831 2,496,788 Parks, Recreation & Cultural 1,984,887 2,134,422 2,254,234 2,298,653 2,244,028 2,288,909 2,334,687 Total Operating Expenditures 13,495,430 13,827,975 15,543,598 15,604,344 15,770,096 16,090,205 16,412,009 Transfers or Non-Operating 745,130 833,913 622,429 622,429 781,205 640,684 652,405 Total Expenditures/Appropriations 14,240,560 14,661,888 16,166,027 16,226,773 16,551,301 16,730,889 17,064,414 Total Surplus (Deficit)130,106 22,478 (1,007,189) (1,110,624) (1,176,482) (993,382) (964,893) Projected Lapse - 5%- - 777,180 780,217 788,505 804,510 820,600 Adjusted Surplus (Deficit)130,106 22,478 (230,009) (330,407) (387,977) (188,872) (144,293) Beginning Fund Balance 10,418,100 10,548,206 10,463,198 10,570,684 10,240,277 9,852,300 9,663,428 Ending Fund Balance 10,548,206 10,570,684 10,233,189 10,240,277 9,852,300 9,663,428 9,519,135 Restricted (588,937) (682,068) (700,599) (718,068) (754,068) (790,068) (826,068) Committed (409,746) (6,976,762) (7,117,565) (7,164,452) (6,835,109) (6,614,037) (6,169,000) Assigned (1,409,610) (2,416,658) (2,415,025) (2,357,757) (2,263,123) (2,259,323) (2,524,067) Unassigned Fund Balance 8,139,913$ 495,196$ -$ -$ -$ -$ -$ City of Kenai Fiscal Year 2020 Operating Budget Budget Projection Fund: 006 - Personal Use Fishery Fund Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues PERS Grant 2,688$ 1,546$ 4,169$ 4,169$ 4,637$ Usage Fees Beach Parking 182,853 174,613 175,000 118,307 146,460 Beach Camping 238,752 210,269 225,000 129,938 170,100 Dock Launch & Park 128,109 111,528 115,000 91,608 101,600 Dock Parking Only 14,807 12,010 15,000 9,547 10,800 Participant Drop-off Fee 10,717 7,481 8,000 5,943 6,715 Total Usage Fees 575,238 515,901 538,000 355,343 435,675 Miscellaneous Revenues Investment earnings 671 1,522 750 750 750 Other (3,680) 674 (1,500) (3,100) (3,500) Total Miscellaneous Revenues (3,009) 2,196 (750) (2,350) (2,750) Total Revenue 574,917 519,643 541,419 357,162 437,562 Expenditures Public Safety 116,875 114,542 96,686 96,686 88,051 Streets 53,068 32,938 61,066 61,066 55,235 Boating Facility 72,668 56,380 72,137 72,137 64,161 Parks, Recreation & Beautification 268,686 225,445 275,224 278,712 241,588 Total Expenditures 511,297 429,305 505,113 508,601 449,035 Transfers - General Fund - - 50,000 50,000 50,000 Total Expenditures & Transfers 511,297 429,305 555,113 558,601 499,035 Contribution To/(From) Fund Balance:63,620 90,338 (13,694) (201,439) (61,473) Projected Lapse - - 21,151 77,167 18,722 Adjusted (Deficit)/Surplus 63,620 90,338 7,457 (124,272) (42,751) Beginning Fund Balance 139,936 203,556 209,896 293,894 169,622 Ending Fund Balance 203,556$ 293,894$ 217,353$ 169,622$ 126,871$ City of Kenai Fiscal Year 2020 Operating Budget Budget Projection Fund: 006 - Personal Use Fishery Fund Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues PERS Grant 2,688$ 1,546$ 4,169$ 4,169$ 4,637$ Usage Fees Beach Parking 182,853 174,613 175,000 118,307 146,460 Beach Camping 238,752 210,269 225,000 129,938 170,100 Dock Launch & Park 128,109 111,528 115,000 91,608 101,600 Dock Parking Only 14,807 12,010 15,000 9,547 10,800 Participant Drop-off Fee 10,717 7,481 8,000 5,943 6,715 Total Usage Fees 575,238 515,901 538,000 355,343 435,675 Miscellaneous Revenues Investment earnings 671 1,522 750 750 750 Other (3,680) 674 (1,500) (3,100) (3,500) Total Miscellaneous Revenues (3,009) 2,196 (750) (2,350) (2,750) Total Revenue 574,917 519,643 541,419 357,162 437,562 Expenditures Public Safety 116,875 114,542 96,686 96,686 88,051 Streets 53,068 32,938 61,066 61,066 55,235 Boating Facility 72,668 56,380 72,137 72,137 64,161 Parks, Recreation & Beautification 268,686 225,445 275,224 278,712 241,588 Total Expenditures 511,297 429,305 505,113 508,601 449,035 Transfers - General Fund - - 50,000 50,000 50,000 Total Expenditures & Transfers 511,297 429,305 555,113 558,601 499,035 Contribution To/(From) Fund Balance:63,620 90,338 (13,694) (201,439) (61,473) Projected Lapse - - 21,151 77,167 18,722 Adjusted (Deficit)/Surplus 63,620 90,338 7,457 (124,272) (42,751) Beginning Fund Balance 139,936 203,556 209,896 293,894 169,622 Ending Fund Balance 203,556$ 293,894$ 217,353$ 169,622$ 126,871$ City of Kenai Fiscal Year 2020 Operating Budget Budget Projection Fund: 010 - Water and Sewer Fund Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues PERS Grant 23,142$ 17,347$ 33,668$ 33,668$ 42,205$ Usage Fees Service Hook-up 2,205 2,608 3,927 2,945 3,063 Residential Water 791,580 830,102 832,279 839,251 872,821 Commercial Water 315,494 327,519 350,141 335,700 349,128 Residential Sewer 1,170,897 1,182,083 1,182,299 1,197,528 1,245,429 Commercial Sewer 445,805 453,930 494,807 466,251 484,901 Total Usage Fees 2,725,981 2,796,242 2,863,453 2,841,675 2,955,342 Miscellaneous Revenues Penalty and Interest 35,839 36,959 43,250 40,000 41,600 Interest Earnings 5,117 11,775 16,000 12,000 12,480 Other 4,361 24,775 3,000 3,000 3,000 Total Miscellaneous Revenues 45,317 73,509 62,250 55,000 57,080 Total Revenues 2,794,440 2,887,098 2,959,371 2,930,343 3,054,627 Expenditures Water Department 719,328 841,231 949,971 967,771 1,037,087 Sewer Department 723,136 456,195 499,384 499,384 594,826 Wastewater Treatment Plant Department 987,096 1,116,312 1,208,057 1,208,057 2,055,544 Total Expenditures 2,429,560 2,413,738 2,657,412 2,675,212 3,687,457 Contribution To/(From) Fund Balance:364,880 473,360 301,959 255,131 (632,830) Projected Lapse (6%)- - 136,903 137,971 140,997 Adjusted (Deficit)/Surplus 438,862 393,102 (491,833) Beginning Fund Balance 1,705,552 2,070,432 2,633,097 2,543,792 2,936,894 Ending Fund Balance 2,070,432$ 2,543,792$ 3,071,959$ 2,936,894$ 2,445,061$ City of Kenai Fiscal Year 2020 Operating Budget Fund: 008 - Airport Fund Department: Airport Fund Summary Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues State & Federal Grants 29,726$ 21,891$ 36,385$ 36,385$ 42,663$ Usage Fees Fuel Sales 7,621 10,685 10,000 17,500 17,500 Fuel Flowage 29,207 12,093 35,000 15,000 15,000 Float Plane 620 722 1,500 750 750 Tie Down 7,403 6,832 7,500 7,500 7,500 Landing 529,132 401,556 432,500 432,500 505,500 Plane Parking 5,725 9,018 5,000 10,000 10,000 Total Usage Fees 579,708 440,906 491,500 483,250 556,250 Rents and Leases Land 674,781 691,152 547,610 547,610 563,293 Total Rents and Leases 674,781 691,152 547,610 547,610 563,293 Miscellaneous Penalty and Interest 8,321 7,513 5,000 5,000 5,000 Interest on Investments 15,598 20,563 25,000 25,000 35,000 Other 12,666 9,769 10,000 10,000 10,000 Total Miscellaneous 36,585 37,845 40,000 40,000 50,000 Terminal Revenue Parking Fees 233,284 223,360 250,000 250,000 250,000 Rents and Leases 308,275 317,431 378,160 378,160 395,344 Penalty and Interest 1,728 3,989 4,500 4,500 4,500 Car Rental Commissions 156,497 171,096 175,000 175,000 180,000 Advertising Commissions 7,421 10,648 9,000 9,000 9,000 Miscellaneous 1,145 3,983 1,500 1,500 1,500 Total Terminal Revenue 708,350 730,507 818,160 818,160 840,344 Transfers In Airport Land Trust Fund 1,175,414 1,210,348 1,230,025 1,230,025 908,811 Total Transfers In 1,175,414 1,210,348 1,230,025 1,230,025 908,811 Total Revenues 3,204,564 3,132,649 3,163,680 3,155,430 2,961,361 Expenditures Airport Terminal 578,256 578,328 630,109 2,200,875 616,753 Airport Airfield 1,640,517 1,631,810 1,731,779 1,757,779 1,750,795 Airport Administration 411,745 621,759 596,199 591,699 348,507 Airport Other Buildings and Areas 139,947 261,943 164,943 169,443 248,777 Airport Training Facility 40,295 36,125 38,474 38,474 38,474 Total Expenditures 2,810,760 3,129,965 3,161,504 4,758,270 3,003,306 Contribution To/(From) Fund Balance:393,804 2,684 2,176 (1,602,840) (41,945) Projected Lapse (6%)- - 116,255 116,254 116,016 Adjusted (Deficit)/Surplus 118,431 (1,486,586) 74,071 Beginning Fund Balance 4,682,502 5,076,306 5,380,197 5,078,990 3,592,404 Ending Fund Balance 5,076,306$ 5,078,990$ 5,498,628$ 3,592,404$ 3,666,475$ City of Kenai Fiscal Year 2020 Operating Budget Fund: 019 - Senior Citizens Fund Department: Title III Summary Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues State Grants 208,654$ 198,577$ 203,626$ 203,626$ 205,831$ USDA Grant 22,415 18,958 15,000 15,000 20,000 Choice Waiver 220,419 195,012 200,000 135,000 125,000 KPB Grant 126,207 126,207 126,207 126,207 126,207 United Way 5,977 9,598 15,000 15,000 15,000 Rents and Leases 8,260 8,324 13,000 13,000 13,000 Donations 6,975 47,668 32,000 32,000 32,000 Donation - Senior Connection 7,677 50,000 50,000 50,000 50,000 Meal Donations 75,321 82,837 82,500 82,500 82,500 Transfer from General Fund - Operations 183,291 176,739 170,857 214,252 239,208 Transfer from General Fund - Capital - - 45,670 45,670 14,100 Other 306 (42) 300 300 300 Total Revenue 865,502 913,878 954,160 932,555 923,146 Expenditures Senior Citizen Access 153,905 157,065 157,364 157,364 191,256 Congregate Meals 218,035 220,661 285,370 287,995 261,266 Home Meals 176,509 205,562 209,875 210,750 223,664 Senior Transportation 67,803 80,087 81,234 81,234 104,527 Choice Waiver 249,525 250,503 244,671 244,671 165,893 Total Expenditures 865,777 913,878 978,514 982,014 946,606 Contribution To/(From) Fund Balance:(275) - (24,354) (49,459) (23,460) Projected Lapse (3%)- - 24,354 49,459 23,460 Adjusted (Deficit)/Surplus (275) - - - - Beginning Fund Balance 275 - - - - Ending Fund Balance -$ -$ -$ -$ -$ City of Kenai Fiscal Year 2020 Operating Budget Fund 048 - Debt Service Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues Bond Interest Subsidy 34,959 34,996 34,996 34,996 32,607 Transfer from General Fund 140,439 142,002 143,402 143,402 140,097 Total Revenue 175,398 176,998 178,398 178,398 172,704 Expenditures Parks, Recreation & Culture 175,398 176,998 178,398 178,398 172,704 Contributions To/From Fund Balance - - - - - Beginning Fund Balance - - - - - Ending Fund Balance -$ -$ -$ -$ -$ City of Kenai Fiscal Year 2020 Operating Budget Budget Projection Land Sales Permanent Funds Original Manager Actual Actual Budget FY2019 Proposed FY2017 FY2018 FY2019 Projection FY2020 FUND 082-52 Airport Land Sales Permanent Fund Revenues Acct. 36610 Investments Earnings 2,055,039$ 1,513,454$ 1,520,536$ 1,520,536$ 1,333,556$ Acct. 36645 Interest on Land Sale Contracts - - 10,000 10,000 10,000 Acct. 33640 Land Sales 362,731 9,234 - - - Total Revenue 2,417,770 1,522,688 1,530,536 1,530,536 1,343,556 Expenses Transfer to Airport Land System Fund 1,175,414 1,210,348 1,230,025 1,230,025 908,811 Contributions To/(From) Fund Balance 1,242,356 312,340 300,511 300,511 434,745 Beginning Fund Balance 23,037,659 24,280,015 24,600,203 24,592,355 24,892,866 Ending Fund Balance 24,280,015$ 24,592,355$ 24,900,714$ 24,892,866$ 25,327,611$ FUND 081-52 General Land Sales Permanent Fund Revenues Acct. 36610 Investments Earnings 256,966$ 187,598$ 189,844$ 189,844$ 175,829$ Acct. 36645 Interest on Land Sale Contracts - - - - - Acct. 33640 Land Sales - 54,001 - - - Total Revenue 256,966 241,599 189,844 189,844 175,829 Expenses Transfer to General Fund 149,802 161,561 162,999 162,999 124,252 Contributions To/(From) Fund Balance 107,164 80,038 26,845 26,845 51,577 Beginning Fund Balance 2,942,775 3,049,939 2,965,790 3,129,977 3,156,822 Ending Fund Balance 3,049,939$ 3,129,977$ 2,992,635$ 3,156,822$ 3,208,399$ City of Kenai Fiscal Year 2020 Operating Budget Fund: 011 - Employee Health Care Fund Department: 18 - Health Care Fund Summary Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues Charge for Services -$ 1,903,581$ 2,148,495$ 2,148,495$ 2,436,200$ Participant premiums - 236,949 243,552 243,552 297,108 Transfer from Other Funds 117,637 - - - - Interest Earnings - 836 1,000 1,000 1,000 Total Revenues 117,637 2,141,366 2,393,047 2,393,047 2,734,308 Expenses - 2,010,581 2,391,806 2,391,806 2,733,336 Net Income (loss)117,637 130,785 1,241 1,241 972 Beginning Retained Earnings - 117,637 100,000 248,422 249,663 Available Retained Earnings 117,637$ 248,422$ 101,241$ 249,663$ 250,635$ City of Kenai Fiscal Year 2020 Operating Budget Fund: 061 - Equipment Replacement Fund Department: 59 - Equipment Replacement Fund Summary Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues Rents & Leases 339,205$ 324,104$ 379,876$ 379,876$ 321,754$ Interest Earnings 4,770 7,006 20,000 20,000 14,000 Other income - - - 400,000 25,000 Total Revenues 343,975 331,110 399,876 799,876 360,754 Expenses - Depreciation - - 160,125 160,125 190,000 Net Income (loss)343,975 331,110 239,751 639,751 170,754 Transfers out - (160,125) - - - Total net income (loss) and transfers out 343,975 170,985 239,751 639,751 170,754 Beginning Net Position 2,981,827 3,325,802 3,496,787 3,496,787 4,136,538 Ending Net Position 3,325,802 3,496,787 3,736,538 4,136,538 4,307,292 Invested in Capital Assets (1,456,036) (1,754,920) (2,739,818) (2,594,366) (2,404,366) Unrestricted Net Position 1,869,766$ 1,741,867$ 996,720$ 1,542,172$ 1,902,926$ City of Kenai Fiscal Year 2020 Operating Budget Budget Projection Fund: 009 - Congregate Housing Fund Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues PERS Grant 1,780$ 1,153$ 1,866$ 1,866$ 2,865$ Rents and Leases 386,613 394,618 390,515 390,515 406,145 Interest on Investments 1,822 2,558 4,000 4,000 4,000 Miscellaneous 95 (300) - - - Total Revenues 390,310 398,029 396,381 396,381 413,010 Expenses 498,181 475,300 503,144 503,144 496,568 Net Income (loss)(107,871) (77,271) (106,763) (106,763) (83,558) Beginning Retained Earnings 474,257 506,832 539,893 570,007 482,690 Capital Asset Acquistions - - (121,000) (121,000) - Allocated to Capital Projects - - - - - Credit for Depreciation 140,446 140,446 140,446 140,446 140,446 Available Retained Earnings 506,832$ 570,007$ 452,576$ 482,690$ 539,578$ MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: May 14, 2019 SUBJECT: Recommended Amendment to Ordinance 3063-2019 The purpose of this memo is to recommend amendments to the FY2020 Draft Budget and FY2020 Budget adoption ordinance, Ordinance 3063-2019, with the completion of employee benefit renewal negotiations. The administration is recommending the following renewal for employee benefits: 1. Renewal with PREMERA Blue Cross Blue Shield of Alaska for employee group medical insurance. Renewal premiums are 13.95% higher than FY2019 rates but after a one- month premium holiday, the year over year rate increase is 4.46%. The following changes to the plan design are considered minor: a. Increase in copay for specialty office visits from $25 to $65. b. Increase in copay for walk-in or urgent care visits from $25 to $40. c. Establishment of a $150 individual/$300 family deductible for Tier II, III & Specialty Drugs. The proposed benefit package will increase the funding amount of the City’s HRA to provide reimbursement for this new deductible. d. Increase in the copay amount for prescription drugs. Despite these plan design changes, the employee maximum exposure actually decreases because of the proposed increase to HRA funding. 2. Renewal with VSP to provide primary vision insurance. VSP provided a no increase bid for renewal. There are no proposed changes to the plan design. 3. Renew with PREMERA Blue Cross Blue Shield of Alaska for employee dental insurance. Renewal premiums are 11.99% lower than FY2019 rates and after a one-month premium holiday, the year over year rate decrease is 19.32%. There are no proposed changes to the plan design. Page 2 of 3 Ordinance 3063-2019 4. Renewal with UNUM for employer provided and employee supplemental life insurance. UNUM provided a renewal quote with modest increases. With renewal, the administration is recommending increasing the employer provided coverage amount from one and one- half times and employees base pay with a $65,000 maximum to one and one-half times and employees base pay with a $100,000 maximum. In addition to plan design changes being imposed by PREMERA, the Administration recommends implementation of an Eligible Opt-out Arrangement to provide a financial compensation, $300 per month for a full-time employee or $150 per month for a part-time employee, who decline City insurance because they and their family have alternate coverage. An Eligible Opt-out Arrangement must meet the following six criteria: a. The employee must provide “reasonable evidence” that the employee has or is expected to have minimum essential coverage (MEC) for the relevant period (the plan year for which the opt-out payment is offered). b. The MEC cannot be coverage in the individual market, either on or off the exchange; but it can be government coverage such as Medicare Part A, most Medicaid, CHIP and most TRICARE programs. c. “Reasonable evidence” may be the employee’s attestation. d. Reasonable evidence/attestation must be provided at least annually. e. Reasonable evidence must be provided no earlier than a reasonable period of time before coverage starts (e.g., at open enrollment), and the employer can allow employees to provide it after the plan year starts. f. The arrangement must provide that the employer cannot make opt-out payments (and the employer in fact must not) if the employer knows or has reason to know that the employee does not or will not have MEC. The result of this renewal and these amendments will be a total FY2020 Budget increase of $206,705 or 8.64% with a projected increase in Employee Health Care Fund reserves of $121,001 in FY2020. This proposed renewal will allow for a reduction in the proposed expenditures for employee benefits which were included in the proposed budget. Employee monthly health care premiums based on this renewal will be: Employee monthly premium FY2020 FY2019 Change Employee Only $ 102.00 $ 98.00 $ 4.00 Employee w/Children 204.00 178.00 26.00 Employee w/Spouse 185.00 196.00 (11.00) Employee & Family 278.00 268.00 10.00 Part time Employee Only 469.00 455.00 14.00 Part time Employee w/Children 1,394.00 1,173.00 221.00 Part time Employee w/Spouse 1,212.00 1,349.00 (137.00) Part time Employee & Family 2,141.00 2,070.00 71.00 Cost per eligible employee Full time $22,501 $20,031 $2,470 Page 3 of 3 Ordinance 3063-2019 Part time 11,251 10,016 1,235 Budget Ordinance Amendments The following amendment is needed to Ordinance 3063-2019 to incorporate this recommendation. Amend the Employee Health Care Fund appropriation amount in Section 2 to be $2,598,511, the Total Internal Service Funds amount to be $2,788,511 and amend the Total All Funds appropriation amount to be $30,666,351. Budget Document Amendments Employee Health Care Fund Revenues: Participant premiums ($ 14,796) Expenditures: Insurance ($134,825) Attached is a revised copy of the Employee Health Care Fund Summary including the proposed amendments. Your support for these amendment is respectfully requested. Attached City of Kenai Fiscal Year 2020 Operating Budget Fund: 011 - Employee Health Care Fund Department: 18 - Health Care Fund Summary Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues Charge for Services -$ 1,903,581$ 2,148,495$ 2,148,495$ 2,436,200$ Participant premiums - 236,949 243,552 243,552 282,312 Transfer from Other Funds 117,637 - - - - Interest Earnings - 836 1,000 1,000 1,000 Total Revenues 117,637 2,141,366 2,393,047 2,393,047 2,719,512 Expenses - 2,010,581 2,391,806 2,391,806 2,598,511 Net Income (loss)117,637 130,785 1,241 1,241 121,001 Beginning Retained Earnings - 117,637 100,000 248,422 249,663 Available Retained Earnings 117,637$ 248,422$ 101,241$ 249,663$ 370,664$ City of Kenai Fiscal Year 2020 Operating Budget Fund: 011- Employee Health Care Fund Department: 18 - Employee Health Care Five year Original Manager Increase Account Expense FY2018 Historical Budget Amended Proposed (Decrease)% Number Description Actual Average FY2019 Budget FY2020 FY2019 Original Change 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 - - 10,000 10,000 10,000 - - 2024 Small Tools/Minor Equipment - - - - - - - 2026 Computer Software - - - - - - - 4531 Professional Services 26,972 5,394 29,200 29,200 29,410 210 0.72% 4532 Communications - - - - - - - 4533 Travel & Transportation 1,544 309 10,000 10,000 10,000 - - 4534 Advertising - - - - - - - 4535 Printing & Binding - - - - - - - 4536 Insurance 1,982,065 396,413 2,342,606 2,342,606 2,549,101 206,495 8.81% 4537 Utilities - - - - - - - 4538 Repair & Maintenance - - - - - - - 4539 Rentals - - - - - - - 4540 Equip. Fund Pmts.- - - - - - - 4541 Postage - - - - - - - 4666 Books - - - - - - - 4667 Dues & Publications - - - - - - - 4999 Contingency - - - - - - - 5041 Miscellaneous - - - - - - - 5045 Depreciation - - - - - - - 5047 Grants to Agencies - - - - - - - Total Maint. and Operations 2,010,581$ 402,116$ 2,391,806$ 2,391,806$ 2,598,511$ 206,705$ 8.64% Capital Outlay & Transfers 8061 Land - - - - - - - 8062 Buildings - - - - - - - 8063 Improvements - - - - - - - 8064 Machinery & Equipment - - - - - - - 9090 Transfers Out - - - - - - - Total Capital Outlay and Transfers -$ -$ -$ -$ -$ -$ - Department Total:2,010,581$ 402,116$ 2,391,806$ 2,391,806$ 2,598,511$ 206,705$ 8.64% City of Kenai Fiscal Year 2020 Operating Budget Fund: 011 - Employee Health Care Fund Department: 18 - Employee Health Care 2022 Operating &Repair Supplies.Wellness committee supplies. 4533 Travel &Transportation.Wellness committee training and travel. 4531 Professional Services.Broker services,$25,000 and HRA/FSA administration charges, $4,410. 4536 Insurance.Medical,dental and prescription drug coverage,$2,333,122,HRA employer funding,$195,195,and employer provided life insurance, $20,784. MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: May 14, 2019 SUBJECT: Requested Amendment to Ordinance 3063-2019 At the request of Councilman Molloy, the following amendment language is provided for the FY2020 Draft Budget and FY2020 Budget adoption ordinance, Ordinance 3063-2019, to provide $5,000 in funding for baseline water quality testing of the Kenai River to be performed by the Kenai Watershed Forum. Budget Ordinance Amendments The following amendment is needed to Ordinance 3063-2019 to incorporate this recommendation. Amend the General Fund appropriation amount in Section 2 to be $16,556,301 and amend the Total All Funds appropriation amount to be $30,671,351. Budget Document Amendments General Fund Expenditures: Legislative Grants to Agencies $5,000 Attached is a revised copy of the General Fund Summary including the recommended amendment for your consideration. Attached City of Kenai Fiscal Year 2020 Operating Budget General Fund Budget Projection Original Actual Actual Budget Projection Proposed Projection Projection FY2017 FY2018 FY2019 FY2019 FY2020 FY2021 FY2022 TAXABLE VALUES (000'S)868,724$ 871,076$ 872,108$ 871,829$ 892,023$ 905,020$ 918,839$ MILL RATE 4.35 4.35 4.35 4.35 4.35 4.35 4.35 REVENUES Property & Sales Taxes Property Tax 3,919,797 3,868,445 3,855,798 3,881,792 3,940,692 4,008,100 4,067,011 Sales Tax 6,715,501 6,854,253 7,124,915 7,207,189 7,387,175 7,572,053 7,761,354 Total Property & Sales Taxes 10,635,298 10,722,698 10,980,713 11,088,981 11,327,867 11,580,153 11,828,365 Intergovernmental Revenue: PERS Funding 288,137 218,726 386,406 386,406 470,553 484,670 499,210 Community Assistance 278,232 250,852 223,258 210,345 171,001 171,001 171,001 Fish Tax 165,087 118,543 165,000 130,000 130,000 133,900 137,917 Other 83,990 101,120 58,000 96,740 113,300 118,965 124,913 Total State/Federal Revenue 815,446 689,241 832,664 823,491 884,854 908,536 933,041 Other Revenue Licenses and Permits 48,557 93,863 63,500 63,000 105,500 108,665 111,925 Ambulance Fees 419,940 443,544 425,000 450,000 500,000 515,000 530,450 Interest 35,762 45,801 100,000 150,000 180,000 180,000 180,000 Other 613,358 585,268 736,541 683,256 606,346 624,536 643,272 Total Other Revenue 1,117,617 1,168,476 1,325,041 1,346,256 1,391,846 1,428,201 1,465,647 Total Revenues 12,568,361 12,580,415 13,138,418 13,258,728 13,604,567 13,916,890 14,227,053 Transfer From Other Funds Charges to other funds 1,494,200 1,542,390 1,574,200 1,574,200 1,596,000 1,643,880 1,693,196 Capital Projects / Special Revenue 124,303 - 283,221 283,221 50,000 50,000 50,000 Enterprise 34,000 400,000 - - - - - Trust Fund 149,802 161,561 162,999 - 124,252 126,737 129,272 Total Transfers 1,802,305 2,103,951 2,020,420 1,857,421 1,770,252 1,820,617 1,872,468 Total Revenues and Transfers 14,370,666 14,684,366 15,158,838 15,116,149 15,374,819 15,737,507 16,099,521 EXPENDITURES/APPROPRIATIONS General Government 2,682,321 2,347,926 3,237,629 3,250,379 3,397,394 3,470,048 3,539,449 Public Safety 6,679,790 7,075,417 7,559,066 7,559,066 7,733,840 7,888,517 8,046,287 Public Works 2,148,432 2,270,210 2,492,669 2,496,246 2,399,834 2,447,831 2,496,788 Parks, Recreation & Cultural 1,984,887 2,134,422 2,254,234 2,298,653 2,244,028 2,288,909 2,334,687 Total Operating Expenditures 13,495,430 13,827,975 15,543,598 15,604,344 15,775,096 16,095,305 16,417,211 Transfers or Non-Operating 745,130 833,913 622,429 622,429 781,205 640,684 652,405 Total Expenditures/Appropriations 14,240,560 14,661,888 16,166,027 16,226,773 16,556,301 16,735,989 17,069,616 Total Surplus (Deficit)130,106 22,478 (1,007,189) (1,110,624) (1,181,482) (998,482) (970,095) Projected Lapse - 5%- - 777,180 780,217 788,755 804,765 820,861 Adjusted Surplus (Deficit)130,106 22,478 (230,009) (330,407) (392,727) (193,717) (149,234) Beginning Fund Balance 10,418,100 10,548,206 10,463,198 10,570,684 10,240,277 9,847,550 9,653,833 Ending Fund Balance 10,548,206 10,570,684 10,233,189 10,240,277 9,847,550 9,653,833 9,504,599 Restricted (588,937) (682,068) (700,599) (718,068) (754,068) (790,068) (826,068) Committed (409,746) (6,976,762) (7,117,565) (7,169,452) (6,841,807) (6,620,870) (6,175,969) Assigned (1,409,610) (2,416,658) (2,415,025) (2,352,757) (2,251,675) (2,242,895) (2,502,562) Unassigned Fund Balance 8,139,913$ 495,196$ -$ -$ -$ -$ -$ City of Kenai Fiscal Year 2020 Operating Budget Fund: 001 - General Fund Department: Legislative Five year Original Manager Increase Account Expense FY2018 Historical Budget Amended Proposed (Decrease)% Number Description Actual Average FY2019 Budget FY2020 FY2019 Original Change Salaries and Benefits 0100 Salaries 48,000$ 48,060$ 48,000$ 48,000$ 48,000$ -$ - 0200 Overtime - - - - - - - 0250 Holiday Pay - - - - - - - 0300 Leave - - - - - - - 0400 Medicare 696 697 696 696 696 - - 0450 Social Security 2,976 2,980 2,976 2,976 2,976 - - 0500 PERS - - - - - - - 0600 Unemployment Insurance - - - - - - - 0700 Workers Compensation 174 159 142 142 149 7 4.93% 0800 Health & Life Insurance - - - - - - - 0900 Supplemental Retirement - - - - - - - Total Salaries & Benefits 51,846$ 51,896$ 51,814$ 51,814$ 51,821$ 7$ 0.01% Maintenance and Operations 2021 Office Supplies 20 173 200 200 200 - - 2022 Operating & Repair Supplies 1,837 2,729 2,800 2,800 2,800 - - 2024 Small Tools/Minor Equipment 943 1,548 10,800 10,800 1,200 (9,600) (88.89%) 2026 Computer Software 270 465 300 300 300 - - 4531 Professional Services 41,000 39,788 46,250 46,250 47,661 1,411 3.05% 4532 Communications 551 570 870 870 870 - - 4533 Travel & Transportation 7,444 8,313 12,000 12,000 10,000 (2,000) (16.67%) 4534 Advertising 7,905 5,916 3,600 3,600 2,500 (1,100) (30.56%) 4535 Printing & Binding - 57 500 500 500 - - 4536 Insurance - - - - - - - 4537 Utilities - - - - - - - 4538 Repair & Maintenance - - - - - - - 4539 Rentals - - - - - - - 4540 Equip. Fund Pmts.- - - - - - - 4541 Postage - - - - - - - 4666 Books - 32 200 200 200 - - 4667 Dues & Publications 7,440 7,480 8,120 8,120 8,120 - - 4999 General Contingency - - - - - - - 5041 Miscellaneous 5,835 7,256 5,950 5,950 5,950 - - 5045 Depreciation - - - - - - - 5047 Grants to Agencies 33,602 35,557 30,746 30,746 30,746 - - Total Maint. and Operations 106,847$ 109,884$ 122,336$ 122,336$ 111,047$ (11,289)$ (9.23%) Capital Outlay & Transfers 8061 Land - - - - - - - 8062 Buildings - - - - - - - 8063 Improvements - - - - - - - 8064 Machinery & Equipment - - - - - - - 9090 Transfers - - - - - - - Total Capital Outlay and Transfers -$ -$ -$ -$ -$ -$ - Manager Total:158,693$ 161,780$ 174,150$ 174,150$ 162,868$ (11,282)$ (6.48%) City of Kenai Fiscal Year 2020 Operating Budget Fund: 001 - General Fund Department: 11 - Legislative 2024 Small Tools/Minor Equipment.IPad purchase for newly elected councilors. 4531 Professional Services. Annual City Audit. Peninsula Oilers water & Sewer 2,746$ Kenai Chamber of Commerce 4th of July Celebration 2,500 Kenai Chamber of Commerce holiday fireworks 3,500 Industry Appreciation Day 500 Economic Outlook Forum 500 Kenai Boys & Girls Club 10,000 Kenai Historic Society cabin docent 4,000 Kenai Watershed Forum 5,000 Miscellaneous grants to be identified 2,000 30,746$ 5047 Grants to Agencies.Operational or special project grants provided to local organizations. 4533 Travel &Transportation.Travel for councilors elected in 2019 to attend newly elected official's training and Alaska Municipal League Conference, Travel for the Mayor to attend Alaska Conference of Mayors and Alaska Municipal League Conference, and registration for seven to attend the Summer Alaska Municipal League Meeting in Soldotna. 4534 Advertising. Miscellaneous promotional items for the City.