HomeMy WebLinkAbout2021-04-24 Council Minutes - Budget Work SessionKENAI CITY COUNCIL WORK SESSION
FY2022 BUDGET
APRIL 24, 2021 — 9:00 A.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
MAYOR GABRIEL, PRESIDING
NOTES
Council present: B. Gabriel, H. Knackstedt, B. Molloy, T. Winger J. Glendening, G. Pettey,
V. Askin
Others present: City Manager P. Ostrander, Finance Director T. Eubank, City Attorney S.
Bloom, City Clerk J. Heinz, Planning Director R. Foster, Public Works
Director S. Curtin, Airport Director M. Bondurant, Parks & Recreation
Director B. Frates, Senior Center Director K. Romain, Library Director K.
Wolfe, Fire Chief T. Prior, Police Chief D. Ross
A. Call to Order
Mayor Gabriel called the work session to order at 9:00 a.m.
B. Budget Introduction — Paul Ostrander, City Manager
City Manager Ostrander provided an introduction on the FY2022 Budget process noting
downward pressure on operations to focus on Capital Improvement Projects.
C. Department Presentations
1. Airport Fund
a. General and Revenue Overview
Director Eubank presented an overview of the Airport Fund, including revenue sources, the Airport
Permanent Fund, and special and capital projects.
b. Airport Departments
Director Bondurant provided an overview of the five Airport Department proposed budgets, a
review of the FY21 Goals, FY22 Goals, and future considerations from the draft budget noting the
future runway pavement project. Bondurant also discussed future plans for Fire Training Facility
management.
2. General Fund General & Revenue Overview Presentation
Finance Director Eubank provided a general overview including general fund revenues, health
care expenses, and Capital Projects Funding included in the budget. He also reviewed Fund
Balance Policy compliance.
3. City Manager
City Manager Ostrander provided an overview of the City Manager and Visitor Center proposed
budgets noting FY21 Goals and FY22 Goals noting the desire to partner with the Chamber of
Commerce to drive economic growth and also for marketing the City. Appreciation was expressed
for the addition of cultural learning opportunities.
4. Human Resources
City Manager Ostrander provided an overview of the Human Resources proposed budget noting
the tremendous amount of time spent on COVID-19 issues, decrease in workplace accidents, and
monitoring of regrettable employee losses.
5. Planning & Zoning
Planning Director Foster provided an overview of the Planning and Zoning proposed budget,
FY21 Goals, FY22 Goals, and future considerations from the draft budget noting bringing forth
electronic applications, reviews, and filing for the future. He also reviewed the Lands
Administration budget.
6. Finance
Finance Director Eubank provided an overview of the Finance Department's proposed budget
noting the department's supportive roll within the City and the addition of a part time IT Technician.
He reviewed FY21 Goals, FY22 Goals, and special projects from the draft budget noting the
increase of electronic processes as a result of COVID and network switching.
Non -Departmental - an overview of the Non -Departmental proposed budget was provided noting
a special project to analyze the tower on the Public Safety Building and develop a project to add
or replace the tower to grow with the communications of the City.
7. Legal
City Attorney Bloom highlighted the Legal Department's proposed budget, FY21 Goals and FY22
Goals from the draft budget noting no big changes to the budget.
8. Police
Chief Ross provided an overview of the Police Department's proposed budget, FY21 Goals, FY22
Goals, and future considerations from the draft budget noting the department was at full staff and
also noted statistics. Chief Ross further noted the desire to get back to citizen engagement and
training after the pandemic.
Communications — an overview of the Communication Department's proposed budget, FY21
Goals, FY22 Goals, and future considerations from the draft budget noting updates to computer
aided dispatching in partnership with the borough and the updated radio system.
Animal Control - an overview of the Animal Control Department's proposed budget, FY21 Goals,
FY22 Goals, and future considerations from the draft budget noting the great collaboration with
Soldotna Animal Control; continuously trying to increase patrols and responsible ownership
trainings.
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9. Fire
Fire Chief Prior provided an overview of the Fire Department's proposed budget, FY21 Goals,
FY22 Goals, and future considerations from the draft budget noting the need for resuming training,
business registrations, and continuation of the paramedic program. He also noted the upcoming
work on the Emergency Operations Plan.
10. Public Works
Public Works Director Curtin provided an overview of the Public Works Administration's proposed
budget, staffing changes, FY21 Goals, FY22 Goals, and future considerations from the draft
budget noting the implementation of the Capital Improvement Plan and future needs for training.
Safe — an overview of the Safety Department's proposed budget, FY21 Goals, FY22 Goals, and
future considerations from the draft budget noting drug testing came from this department's
budget; also noted ongoing recruitment for a Building Inspector due to the resignation of the
former inspector.
Shop - an overview of the Shop Department's proposed budget, FY21 Goals, FY22 Goals, and
future considerations from the draft budget was provided noting training and Airport Rescue and
Fire Fighting vehicles being delivered soon; being inspected by staff before they ship.
Streets — an overview of the Streets Department's proposed budget, staffing changes, FY21
Goals, FY22 Goals, and future considerations from the draft budget was provided noting the intent
to purchase a grader instead of a previous intent to lease two graders and attending to drains
during breakup. Also discussed taking over maintenance of Beaver Loop Road and other staffing
options in the event more manhours needed.
Buildings — an overview of the Buildings Department's proposed budget, FY21 Goals, FY22
Goals, and future considerations from the draft budget was provided noting the need to fill the
vacant position and adopting the 2018 International Building Code. Appreciation was expressed
for a building maintenance manual.
Street Lighting - an overview of the Street Lighting Department's proposed budget, FY21 Goals,
FY22 Goals, and future considerations from the draft budget was provided noting upgrades to
LED when possible and the development of a lighting map.
Boating Facility— an overview of the Boating Facility Department's proposed budget, FY21 Goals,
FY22 Goals, and future considerations from the draft budget was provided noting dock repairs
were still underway and cathodic protection was complete. Added that the widening of the road
will help with ingress and egress of the facility.
11. Library
Director Wolfe provided an overview of the Library Department's mission, FY21 Goals, FY22
Goals, and future considerations from the draft budget noting the desire to bring patronage back
up to pre -pandemic numbers.
12. Parks, Recreation & Beautification
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Director Frates provided an overview of the Parks, Recreation, & Beautification Department's
staffing changes, FY21 Goals, FY22 Goals, and future considerations from the draft budget noting
some of the planned changes taking on management of the Recreation Center and future
programming.
13. City Clerk
City Clerk Heinz provided an overview of the City Clerk Department's proposed budget, FY21
Goals, FY22 Goals, and future considerations from the draft budget noting the desire to continue
to utilize the Laserfiche software to its fullest extent.
Legislative — an overview of the Legislative Department's proposed budget, FY21 Goals, FY22
Goals, and future considerations from the draft budget and the desire to add funds to replace
chairs for the dais and the conference room where executive sessions are held.
14. Personal Use Fishery Fund
a. General, Revenue, and Department Overview
Director Eubank noted revenue projections for the Personal Use Fishery Fund for FY22. Capital
Improvements, efficiencies, and modifications to operations were discussed.
15. Water & Sewer Fund
a. General and Revenue Overview
Director Eubank advised 97% of water & sewer fund revenues were usage fees and fees were
not being proposed to be changed; added that a rate study will likely be conducted soon forfuture
years.
b. Water & Sewer Departments
Public Works Director Curtin provided an overview of goals.
c. Sewer Treatment Plant
An overview of future goals was provided.
d. Wastewater Plant
Director Curtin reviewed the proposed budget, performance measures, and goals noting the
permitting had recently been renewed and there were not severe restrictions associated; also
discussed Capital Improvement Projects associated with the plant.
16. 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 and fund balance supplements; also reviewed Capital and Special Projects.
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b. Senior Citizen Fund Departments
Director Romain provided an overview of the Senior Citizen Fund Department's proposed budget,
staffing changes, FY21 Goals, FY22 Goals, and future considerations from the draft budget noting
the incredible increases in home meal delivery due to COVID, a new 15 -passenger van being
purchased through the fleet replacement program, and becoming certified to serve gluten free
and diabetic menus. Romain also explained the sliding door project.
17. Congregate Housing
a. General and Revenue Overview
Director Eubank provided an overview of revenue sources, market rental rates, and capital
projects related to the congregate housing fund; also noted that revenues don't account for
depreciation.
b. Congregate Housing Fund Departments
Director Romain provided an overview of the Senior Citizen Fund Departments proposed budget,
FY21 Goals, FY22 Goals, and Capital Improvement Projects from the draft budget noting
occupancy and turnover which impacted maintenance costs; also noted development of an
internal move policy and discussed the waiting list maintenance they have conducted. Romain
also discussed a future virtual tour of the facility.
18. Employee Health Care Fund
a. General, Revenue, and Department Overview
Director Eubank provided an overview of the Employee Health Care Fund, which was an internal
service fund, noting it was in its fifth year and was created to offset annual increases. Projected
revenue sources, the need for protecting the reserves, utilization, and fund balance were
discussed. The transition to increased staff share was discussed.
19. Permanent Funds
a. General, Revenue, and Department Overview
Director Eubank provided an overview of the Airport and General Land Sale Permanent Funds
noting how they can be utilized and reviewed projected revenues; also explained the recent sharp
increase the projections. The benefits of staying the course were discussed.
20. Debt Service
a. General, Revenue, and Department Overview
Director Eubank provided an overview of the debt service methodology noting it had recently been
refinanced. Noted the amortization schedule and that the City may utilize debt in the future with
the reduction in Capital funding from the state.
21. Equipment Replacement Fund
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General, Revenue, and Department Overview
Director Eubank provided an overview of the Equipment Replacement Fund noting it funds
equipment replacements for General Fund departments; noted planned acquisitions for FY2022.
22. Fleet Replacement Fund
a. General, Revenue, and Department Overview
Director Eubank provided an overview of the Fleet Replacement Fund, explaining its inception,
efficiency adjustments made, and a utilization plan. An overview of the amount the fund charged
departments and the schedule of replacement was provided.
23. Five -Year Capital Plan Presentation
City Manager Ostrander provided an overview of the Capital Improvement Plan noting the FY2022
budget funded the FY2022 projects and the projects for FY2023 through FY2026 were plans;
noted the plan would be adopted by resolution.
Public Works Director Curtin reviewed the FY2022 projects.
There was discussion regarding how and when to add funds to the Plan related to community
projects; projects not incorporated in the list were discussed.
D. Public Comment
There was no one wishing to be heard.
E. Council Comments
Council Member Glendening noted it was a productive day; the City is in a good place and there
is a path forward on a lot of the projects.
Council Member Askin expressed appreciation for the day noting she learned a lot.
Council Member Winger expressed gratitude and noted she learned a lot.
Council Member Pettey echoed gratitude and appreciation for the work that went into the draft
budget and also expressed gratitude for the fiscal responsibility of the staff.
Vice Mayor Molloy noted it was an excellent draft budget and Capital Improvement Plan adding
that there was good discussion and education during the work session and the Council would be
well educated when adopting the document; echoed compliments and kudos. Also noted
throughout the meeting that each department is well managed. Molloy also expressed gratitude
for the City's outcome of the public health emergency appreciating that there wasn't a need to
ask the public for an increase in taxes or fees. Expressed support for the proposal in the budget
to find $2 million in capital improvement projects; also expressed support for the staffing changes
noted. Expressed he was not supportive of a business registration suggesting another avenue to
inform the fire department of businesses in the City.
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Council Member Knackstedt agreed with Vice Mayor Molloy noting the budget was an excellent
document and expressing gratitude for the work session.
City Manager Ostrander noted this type of meeting, though long, shows the talent and knowledge
that the department heads possess; added he and the City are lucky for having the group.
Mayor Gabriel agreed with City Manager Ostrander noting the humility also shown throughout the
day; COVID-19 certainly affected many goals yet the departments still had successes and he felt
good about where the City was at.
F. Adjournment
The work session adjourned at 5:09 p.m.
Notes were prepared by:
MMC
Clerk
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