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HomeMy WebLinkAboutResolution No. 2023-02KENAI CITY OF KENAI RESOLUTION NO. 2023-02 Sponsored by: Administration A RESOLUTION ADOPTING GOALS TO GUIDE THE PREPARATION OF THE FISCAL YEAR 2024 ANNUAL BUDGET. WHEREAS, at the Fiscal Year 2024 Budgetary Goals Work Session on December 21, 2022 the Council discussed and accepted public comment on goals and objectives to guide the City's fiscal year 2024 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 Council; and, WHEREAS, the Council has discussed and collectively adopted the Broad Statement of Purpose and Goals for the preparation of the Fiscal Year 2024 City of Kenai Budget as provided below; 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 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 2024 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 that maintains the City's current mill and sales tax rates and complies with the General Fund, Fund Balance Policy codified in KMC 7.25. 2. Incorporate a salary schedule increase of 2% that was provided as a one -year -only bonus to employees in the FY23 budget, provide an additional salary schedule increase that meets the City's Fund Balance Policy/Goals,. does not increase the rates of taxation, does not reduce the level of Capital Budget contribution by the General Fund or result in a reduction of services, not to exceed inflation as measured by the 2022 Alaska Consumer Price Index for All Urban Consumers, second half over second half, and complete a compensation and classification study to determine if the City's salary schedule provides appropriate compensation to employees comparable to other places of public employment and which allows the City to recruit and retain competent employees without a reduction in critical services or infrastructure support. New Text Underlined; [DELETED TEXT BRACKETED] Resolution No. 2023-02 Page 2 of 3 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 FY2023 by increasing the employee cost share by 1 % per year. A 1 % increase in the employee cost share for FY2024 would bring the employee's share to 14%. 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, 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 FY2022 depreciation by fund and function were: General Fund: General Government $ 96,584 Public Safety 229,631 Public Works 857,429 Parks, Recreation & Culture 331,898 Social Welfare Services 65.584 $1,581,126 Airport Fund: $2,293,403 Water & Sewer Fund 1.084.273 Total All Funds _ 4,958,802 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 FY2023 rates for existing tenants as of June 30, 2023. 7. 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 FY2023 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 $1,598,084 Water & Sewer Fund 1,265,326 Personal Use Fishery Fund 212,291 Congregate Housing Fund 275,452 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, $28,159, over FY2023 amounts. Section 2. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 4T" DAY OF JANUARY, 2023. /ames Baisden, Vice Mayor New Text Underlined; [DELETED TEXT BRACKETED] Resolution No. 2023-02 Page 3 of 3 ATTEST: Michell , MMC, City Clerk Approved by Finance New Text Underlined; [DELETED TEXT BRACKETED] K. I N 41 City of Kenai 1210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.6nai.city MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: December 29, 2022 SUBJECT: Resolution 2023-02 — FY2024 Council Budget Goals Resolution 2023-02 will formally establish Council's goals for the City's FY2024 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 10t" 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 FY2024 City Budget will be exceptionally challenging as the result of continued high inflation. Inflation, as measured by the Consumer Price Index, second half of 2021 over second half 2022 for Alaska will be released on January 12, 2023 and is expected to be in the 5.0-8.0% range. 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 FY2024 and future years. These goals were discussed and public testimony was heard at a work session held on December 215t. You support for adoption is respectfully recommended.