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HomeMy WebLinkAboutResolution No. 2024-03KENAI CITY OF KENAI RESOLUTION NO. 2024-03 Sponsored by: Administration A RESOLUTION ADOPTING GOALS TO GUIDE THE PREPARATION OF THE FISCAL YEAR 2025 ANNUAL BUDGET. WHEREAS, at the Fiscal Year 2025 Budgetary Goals Work Session on January 3, 2024 the Council discussed and accepted public comment on goals and objectives to guide the City's fiscal year 2025 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 2025 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 2025 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. Review the City's salary schedule and pay plan, utilizing the employee compensation and classification study currently being prepared, to ensure it 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. Incorporate adjustments necessary to the salary schedule and pay plan to address any pay inequities caused by misclassification of positions or those needed for the City to be a competitive public employer. New Text Underlined; [DELETED TEXT BRACKETED] Resolution No. 2024-03 Page 2 of 3 3. Review the City's health, dental and life insurance benefits offered to employees to improve the sustainability and maintain the quality of employee insurance coverage to ensure it provides adequate coverage comparable to other places of public employment. If the comparison indicates an increase is warranted, limit the increase to employee cost share to not more than 1 % of program's total costs. A 1 % increase in the employee cost share for FY2025 would bring the employee share to 14%. 4. Seek opportunities to achieve cost savings and efficiencies without negatively impacting operations and services through a transparent budget development process that includes performance measures and a review of previous spending, future needs, and priorities, 5. Compile a list of capital projects, which are projects that cost $35,000 or more, for Council adoption and ensure that the minimum investment in maintaining City infrastructure over time equals 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 FY2023 depreciation by fund and function were: General Fund: General Government $ 104,337 Public Safety 251,693 Public Works 838,701 Parks, Recreation & Culture 331,605 Social Welfare Services 67.285 $1,593,621 Airport Fund: $2,341,217 Water & Sewer Fund 1.062.536 Total All Funds $ •9 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. Limit any increase in the monthly rents at Vintage Pointe to not more than $50.00 per month over FY2024 rates for existing tenants as of June 30, 2024. 7. Project ending fund balance/retained earnings of at least 50% of the FY2024 budgeted expenditures net of any projected lapse for the Airport, Water & Sewer, Personal Use Fishery, and Congregate Housing Funds. Ensure any use of fund balance is for one-time or capital purchases and not for reoccurring expenditures/expenses so that the ending fund balance for each fund is not less than: Airport Fund $1,692,487 Water & Sewer Fund 1,520,841 Personal Use Fishery Fund 200,512 Congregate Housing Fund 268,336 8. Adjust Senior Citizen Fund fees and rates to a level sufficient to limit the increase in required transfer from the General Fund to no more than a 10% increase, which equals $19,948, over FY2024 amounts. New Text Underlined; [DELETED TEXT BRACKETED] Resolution No. 2024-03 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 17T" DAY OF JANUARY, 2024. ATTEST: Michelle S C, City Clerk Approved by Finance Brian Gabriel Sr., Mayor New Text Underlined; [DELETED TEXT BRACKETED] City of Kenai 1210 Fidalgo Ave, Kenai, AK 99611-77941907.283.75351 www.kenaixity MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Dave Swarner, Finance Director DATE: January 10, 2023 SUBJECT: Resolution 2024-03 — FY2025 Council Budget Goals Resolution 2024-03 will formally establish Council's goals for the City's FY2025 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 FY2025 City Budget will be challenging, City revenues continue to increase but at a slower pace than the City's expenditures. Sales tax revenue is continuing to increase in an upward trend but it is not meeting the 3% rate of increase that was budgeted for FY2024. 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 FY2025 and future years. These goals were discussed and public testimony was heard at a work session held on January 3rd. You support for adoption is respectfully recommended.