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HomeMy WebLinkAboutOrdinance No. 3358-2023KENAI CITY OF KENAI ORDINANCE NO. 3368-2023 Sponsored by: Administration AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL FUND TO PROVIDE SUPPLEMENTAL FUNDING FOR THE PARKS AND RECREATION UTILITIES BUDGET. WHEREAS, the Recreation Utilities budget will require an estimated 18% additional funding by the end of FY2023; and, WHEREAS, in the months when the Multi -purpose facility (MPF) was in operation, the MPF utility costs were 20% to 30% higher when compared to previous years; and, WHEREAS, the utility bill has not fluctuated significantly in the three years before FY2023; and, WHEREAS, the significant wear and tear on the compressors, which can cause higher electrical use in this building, are the likely cause for this increase; and, WHEREAS, performing regular maintenance on the compressors and no longer providing summer ice should reduce these costs in the future; and, WHEREAS, the Parks and Recreation Department can cover half of these costs by budget transfer from other accounts; and, WHEREAS, the Parks and Recreation Department will need an appropriation from the general fund of $20,000 to cover the remainder of utility costs. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. That the estimated revenues and appropriations are increased as follows: General Fund: Increase Estimated Revenues Appropriation of Fund Balance s2Q 000 Increase Appropriations Parks & Recreation Utilities 20 000 Section 2. Severabilitv_: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or 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 without such part, provision, or application. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3358-2023 Page 2 of 2 Section 3. Effective Date: That pursuant to KMC 1.15.070 ft this ordinance shall take effect immediately upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 21ST DAY OF JUNE, 2023. ATTEST: Mic e e . S n C, City Clerk Approved by Finance: L'54- -�J,-ae d - Brian Gabriel Sr., Mayor Introduced: Enacted: Effective: New Text Underlined; [DELETED TEXT BRACKETED] June 7, 2023 June 21, 2023 June 21, 2023 KFNA� City of Kenai I To Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www kenaixity MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Tyler Best, Parks and Recreation Director DATE: May 30, 2023 SUBJECT: Ordinance 3358-2023 — Appropriation of Funds to Cover Utility Costs in Excess of Budgeted Amounts Over the last year, the monthly Parks and Recreation utility bills have increased significantly. The main reason is increased power usage at the Multi -Purpose Facility (MPF). There has not been a significant change in utility costs for several years. However, in FY23, there has been a 20-30 percent increase in utility costs at the MPF. This increase will put the budgeted Recreation Utility amount over by an estimated 18% by the end of the fiscal year. Internally the Parks Department can transfer funds to cover half of the increase in cost. However, the funds will still be an estimated 9% over budget. An estimated $20,000 will be needed to balance the budget for FY23. The estimated revenues and appropriations will be increased as follows: General Fund: Increase Estimated Revenues Appropriation of Fund Balance 2 QQ Increase Appropriations Parks & Recreation Utilities The reason for the increase is not explicitly known at this time. There have been many issues with the compressors this year, and wear and tear on the equipment has continued to be significant over the last several years with the use of summer ice. No longer providing summer ice and performing regularly scheduled maintenance on the compressor should help keep costs down for future years. Thank you for your consideration. KFqNA1 City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1 907.283.7535 1 www.lcenaixity MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Tyler Best, Parks and Recreation Director DATE: June 13, 2023 SUBJECT: Supplemental information for Ordinance 3358-2023 — Appropriation of Funds to Cover Utility Costs in Excess of Budgeted Amounts The original memo for this Ordinance stated that the main reason for the increase in utility bills was not explicitly known. After further review, the main reason for the increase was the addition of Summer Ice. In the FY23 budget, funding for utilities at the Multi -Purpose Facility (MPF) was reduced during the summer months because it was determined there would be no summer ice. However, youth leagues came to the City shortly after the budget passed asking the City to install summer ice since both the City of Soldotna and the City of Kenai were not planning to provide ice until October. The City agreed to add ice for the Months of August and September, but no additional funds were added to help cover the increased costs of utilities for these two months. No longer providing summer ice and performing regularly scheduled maintenance on the compressor should help keep costs down for future years. Thank you for your consideration.