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HomeMy WebLinkAboutResolution No. 2022-05KENAI CITY OF KENAI RESOLUTION NO. 2022-05 Sponsored by: Administration A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ADOPTING GOALS TO GUIDE THE PREPARATION OF THE FISCAL YEAR 2023 ANNUAL BUDGET. WHEREAS, at the Fiscal Year 2023 Budgetary Goals Work Session on January 10, 2022 the Kenai City Council discussed and accepted public comment on goals and objectives to guide the City's fiscal year 2023 budget development; and, WHEREAS, the adoption of budget goals helps to ensure the budget is prepared in a manner which meets the needs and desires of the community and is consistent with the desires of the City Council; and, WHEREAS, the City Council has discussed and collectively adopted this Broad Statement of Purpose and goals for the preparation of the Fiscal Year 2023 City of Kenai Budget; and, WHEREAS, the City Manager will utilize the adopted Broad Statement of Purpose and goals to guide the creation of the City's Draft Budget which will be submitted to the City Council for consideration and adoption. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. The Council adopts the following Fiscal Year 2023 Budget Goals and Broad Statement of Purpose: Broad Statement of Purpose It is a goal of the City to formulate and adopt a budget which is fiscally responsible and meets the needs and priorities of the community it serves. A fiscally responsible budget ensures revenues, taxes, and fees, are sufficient but not excessive to fund current operations and contribute to the long-term maintenance of City infrastructure used to provide services. Meeting the needs and priorities of the community means prioritizing essential services while being mindful that non- essential services such as parks, recreation, arts, library and senior services have significant importance to a vibrant, well-balanced community in which individuals have a desire to live and businesses seek to locate. Specific Goals 1. Submit a budget for consideration which maintains the City's current mill and sales tax rates which is also compliant with the General Fund, Fund Balance Policy codified in KMC 7.25. 2. Propose salary schedule adjustments commensurate with inflation as measured by the Alaska Consumer Price Index for All Urban Consumers, second half over second half to Resolution No. 2022-05 Page 2 of 3 the extent possible while meeting the City's Fund Balance Policy/Goals with no increase in the rates of taxation or reduction in services. 3. Improve the sustainability of and maintain the quality of employee medical, dental and life insurance while continuing toward an employee cost share of 15%; a process that began in FY2021 and continued in FY2022 by increasing the employee cost share 1% per year. A 11% increase in the employee cost share for FY2023 would bring the employee's share to 13%. 4. Seek opportunities for efficiency by striving to reduce the cost of goods and services without negatively impacting operations. 5. Compile a list of capital projects, projects costing $35,000 or more, for Council adoption. The investment in maintaining infrastructure over time should at a minimum equal the depreciation, an accounting process by which the cost of an asset is spread over its useful life, recorded annually on City capital assets and infrastructure. The City's FY2021 depreciation by fund and function were: General Fund General Government $92,271 Public Safety $193,424 Public Works $876,529 Parks, Recreation & Culture $317,968 Social Welfare Services $69,739 $1,549,931 Airport Fund: $2,123,505 Water & Sewer Fund $1.079,565 Total All Funds $4.753.001 6. Adjust rates, charges and fees in all funds commensurate with inflation as measured by the Alaska Consumer Price Index for All Urban Consumers, second half over second half. The monthly rents at Vintage Pointe should not increase more than $35.00 per month over FY2022 rates for existing tenants as of June 30, 2022. For the Airport, Water & Sewer, Personal Use Fishery, and Congregate Housing Funds, the proposed budget should project ending fund balance/retained earnings of at least 50% of the FY2022 budgeted expenditures net of any projected lapse and any use of fund balance should be for one-time or capital purchases and not for reoccurring expenditures/expenses. The ending fund balance for each fund should not be less than: Airport Fund $1,485,772 Water & Sewer Fund $1,262,634 Personal Use Fishery Fund $231,905 Congregate Housing Fund $253,366 8. Senior Citizen Fund fees and rates should be adjusted to a level sufficient to limit the increase in required transfer from the General Fund to no more than a 10% increase, $22,052, over FY2022 amounts. Resolution No. 2022-05 Page 3 of 3 Section 2. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 191 day of January, 2022. ATTEST: Miche 6MC, City Clerk Approved by Finance r�: K I N A I City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 I wwwlenaixity MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: January 13, 2022 SUBJECT: Resolution 2022-05 — Council Budget Goals Resolution 2022-05 will formally establish Council's goals for the City's FY2023 Budget. The adopted goals are intended to guide the City Manager in his preparation of the budget which is scheduled to be provided to Council in April for its consideration and adoption prior to the June 10th deadline established in KMC 7.25.010(g). The establishment of goals by the City Council early in the budget process is considered a best practice, one the administration believes should be incorporated into the City's budget process, as it provides guidance to the City Manager in his compilation of his draft budget and it provides greater transparency to the process. The preparation of the FY2023 City Budget will be exceptionally challenging as the result of economic pressures not seen in the United States for forty years. Inflation, as measured by the Consumer Price Index, second half of 2020 over second half 2021 for Alaska showed a 6.35% increase. Council's establishment of specific, measurable, attainable, relevant and time based (SMART) goals will increase the likelihood of a smooth and successful budget process in FY2023 and future years. These goals were discussed and public testimony was heard at a work session held on January 10th. You support for adoption is respectfully recommended.