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HomeMy WebLinkAbout2026-05-02 Council Packet - Budget Work SessionKenai City Council - Budget Work Session May 02, 2026 — 9:00 AM "OkIL Kenai City Council Chambers 210 Fidalgo Avenue, Kenai, Alaska www•kenai.city KENAI ** Telephonic/Virtual Information on Page 2** Agenda A. CALL TO ORDER B. BUDGET INTRODUCTION - Terry Eubank, City Manager (10 minutes) C. BUDGET OVERVIEW - Dave Swarner, Finance Director (15 minutes) D. DEPARTMENT PRESENTATIONS 1. Airport Fund a. General and Revenue Overview (10 minutes) b. Airport Departments (15 minutes) 2. Senior Citizen Fund a. General and Revenue Overview (10 minutes) b. Senior Citizen Fund Departments (15 minutes) 3. Congregate Housing Fund a. General and Revenue Overview (10 minutes) b. Senior Citizen Fund Departments (15 minutes) 4. Personal Use Fishery Fund a. General, Revenue and Department Overview (10 minutes) 5. General Fund a. General and Revenue Overview (15 minutes) b. Parks, Recreation and Beautification (10 minutes) c. Planning and Zoning (10 minutes) d. Legal (10 minutes) e. Police (20 minutes) Communications Animal Control f. Fire (20 minutes) g. Library (10 minutes) h. Human Resources (10 minutes) Kenai City Council - Budget Work Sessic Page 1 of 2 May 02, 2026 i. City Clerk (15 minutes) Legislative j. City Manager (20 minutes) Visitor Center Land Administration k. Finance (10 minutes) Non -Departmental Public Works Administration (45 minutes) Safety Shop Streets Buildings Street Lighting Boating Facility 6. Water & Sewer Fund a. General and Revenue Overview (20 minutes) 7. Employee Healthcare Fund a. General, Revenue and Department Overview (10 minutes) 8. Permanent Fund a. General, Revenue and Department Overview (10 minutes) 9. Debt Services a. General, Revenue and Department Overview (10 minutes) 10. Equipment Replacement a. General, Revenue and Department Overview (10 minutes) 11. Fleet Replacement a. General, Revenue and Department Overview (10 minutes) E. PUBLIC COMMENTS (Public comments limited to five (5) minutes per speaker) F. ADDITIONAL COUNCIL COMMENTS G. ADJOURNMENT The agenda and supporting documents are posted on the City's website at www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk's Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk's Office at 907-283-8231. Registration is required to join the meeting remotely through Zoom. Please use the following link to register: https:Hus02web.zoom.us/meeting/register/SSZayx 1S1uFM6TZnXNGgw Kenai City Council - Budget Work Sessic Page 2 of 2 May 02, 2026 ANNUAL BUDGET FOR THE CITY OF KENAI, ALASKA Draft KENAI Daubenspeck Pars JULY 1, 2026 - JUNE 30. 2027 ANNUAL OPERATING BUDGET OF THE CITY OF KENAI, ALASKA KENAI For the Fiscal Year Beginning July 1, 2026 Terry Eubank City Manager Prepared by David Swarner Finance Director CITY OF KENAI FISCAL YEAR 2027 CONSOLIDATED OPERATING BUDGET TABLE OF CONTENTS BEGINNING SECTION NUMBER Introduction YourLocal Government.......................................................................................1 How To Use This Document................................................................................3 TransmittalLetter.................................................................................................5 Budget Development Process..............................................................................9 FundStructure...................................................................................................12 FinancialPolicies...............................................................................................15 Budget Appropriating Ordinance........................................................................20 Resolution Fixing the Rate of Levy of Property Tax............................................25 Strategic Goal and Priorities...............................................................................26 Performance Measures......................................................................................33 ilvnrxiinui Combined Revenues, Appropriations Fund Balance/Net Assets All Funds ........36 Combined Revenue and Appropriations All Fund Types....................................40 Summary of Major Funds and Non -Major Funds in the Aggregate Prior Year, Current Year, and Adopted Budget..................................................42 Revenues...........................................................................................................44 General Fund Central Administration Cost Allocation.........................................63 Generai BudgetProjection...............................................................................................66 General Fund — Fund Balance Policy Compliance.............................................67 Property Tax Breakdown....................................................................................68 Property Tax Breakdown Graph.........................................................................69 General Fund Expenditure Recap......................................................................70 General Fund Expenditure Summary.................................................................72 Summaryby Line Item.......................................................................................73 Expenditures: CityClerk.....................................................................................................74 VisitorCenter...............................................................................................79 Legislative....................................................................................................83 Legal............................................................................................................87 CityManager................................................................................................91 Human Resources.......................................................................................96 Finance......................................................................................................100 Land Administration....................................................................................105 Non-Departmental......................................................................................110 Planningand Zoning..................................................................................113 Safety.........................................................................................................118 Police.........................................................................................................122 Fire.............................................................................................................127 Communications........................................................................................133 AnimalControl............................................................................................138 0 CITY OF KENAI FISCAL YEAR 2027 CONSOLIDATED OPERATING BUDGET TABLE OF CONTENTS BEGINNING SECTION NUMBER Public Works Administration.......................................................................143 Shop..........................................................................................................145 Streets........................................................................................................147 Buildings....................................................................................................156 StreetLighting............................................................................................161 Library........................................................................................................165 Parks, Recreation, Beautification................................................................171 BoatingFacility...........................................................................................178 Special Revenue Funds Recap of Special Revenue Funds Budgets......................................................184 Personal Use Fishery Fund BudgetProjection.......................................................................................186 Summary by Line Item...............................................................................185 FundNarrative...........................................................................................188 Personal Use Fishery — Public Safety........................................................192 Personal Use Fishery — Streets..................................................................194 Personal Use Fishery — Park and Rec........................................................196 Personal Use Fishery — Boating Facility.....................................................198 Water and Sewer Fund BudgetProjection.......................................................................................200 Utilities Narrative........................................................................................201 Utilities Department....................................................................................204 Airport Fund BudgetProjection.......................................................................................206 Summary by Line Item...............................................................................207 Terminal.....................................................................................................218 Airfield.......................................................................................................212 Administration............................................................................................216 Other Buildings & Areas.............................................................................220 TrainingFacility..........................................................................................225 Senior Citizens Fund BudgetProjection.......................................................................................229 Summary by Line Item...............................................................................230 FundNarrative...........................................................................................231 Senior Citizen Access................................................................................235 CongregateMeals......................................................................................237 Home Delivered Meals...............................................................................239 Transportation............................................................................................241 CITY OF KENAI FISCAL YEAR 2027 CONSOLIDATED OPERATING BUDGET TABLE OF CONTENTS BEGINNING SECTION NUMBER ChoiceWaiver............................................................................................243 Debt Service Fund BudgetProjection.............................................................................................246 DebtService....................................................................................................247 Summary by Debt Issuance.............................................................................248 Permanent Funds Land Sales Trust Funds Budgets.....................................................................250 Internal Service Funds Employee Health Care Fund Budget Projection Summary.......................................................................252 Employee Health Care Fund......................................................................253 Equipment meplacement Funa Budget Projection Summary.......................................................................255 Equipment Replacement Fund...................................................................256 Schedule of Replacement and Payments...................................................258 Fleet Replacement Fund Budget Projection Summary.......................................................................259 Fleet Replacement Fund............................................................................260 Schedule of Replacement and Payments...................................................262 Enterprise Funds Congregate Housing Fund BudgetProjection.......................................................................................264 Congregate Housing..................................................................................265 Major and Capital Projects Funds Capital Budget Revenue, Expenditure, and Fund Balance Summary ...............271 Capital Budget Expenditure Summary.............................................................272 Playground Improvement Capital Project Fund................................................273 Park Improvement Capital Project Fund...........................................................275 Cemetery Improvements Capital Project Fund.......................................277 Kenai Recreation Center Improvements Capital Project Fund .........................278 Kenai Senior Center Improvement Capitol Project Fund..................................280 Kenai Bluff Erosion Improvements Capitol Project Fund..................................282 Personal Use Fishery Improvement Capitol Project Fund................................283 Kenai Public Safety Improvement Capitol Project Fund...................................284 Congregate Housing Improvement Capitol Project Fund..................................290 Kenai Multipurpose Facility Improvement Capital Projects Fund ......................287 Library Improvement Capital Project Fund.......................................................288 Kenai City Hall Improvement Capital Project Fund...........................................289 CITY OF KENAI FISCAL YEAR 2027 CONSOLIDATED OPERATING BUDGET TABLE OF CONTENTS BEGINNING SECTION NUMBER Airport Operations Facility Improvement Capital Project Fund .........................291 Airport Snow Removal Equipment Improvement Capital Project Fund .............292 Airport Terminal Improvement Capital Project Fund.........................................292 Airport Improvements Capital Project Fund......................................................293 Water and Sewer Improvement Capital Project Fund.......................................296 Wastewater Treatment Facility Improvement Capital Project Fund ..................299 Trail Construction Improvement Capital Project Fund......................................301 Municipal Roadway Improvement Capital Project Fund...................................302 Municipal Facility Improvement Capital Project Fund.......................................304 Appendices City of Kenai Schedule of Rates, Charges and Fees........................................305 Authorized Personnel Staffing Table................................................................323 City Wide Organizational Chart........................................................................328 Classified Salary Schedule...............................................................................330 Chartof Accounts............................................................................................333 CommunityProfile............................................................................................334 Glossary of Key Terms.....................................................................................348 iv MEET YOUR ELECTED OFFICIALS The Mayor and six members of the Kenai City Council are elected at large to three-year terms. The positions are non -partisan. Terms are staggered, with positions ending for the Mayor and two Council Members one year and for two Council Members each of the next two years. Kenai City Council elections are part of the Kenai Peninsula Borough's general election held annually in October. Mayor Henry Knackstedt Term Expires 2028 hknackstedt(a)kenai.city Vice Mayor Victoria Askin Term Expires 2028 vaskin(a)kenai.city Councilor Phil Daniel Term Expires 2026 pdaniel(cD-kenai.city Councilor Deborah Sounart Term Expires 2027 dsounart(@kenai.city Councilor Bridget Grieme Term Expires 2028 bgrieme _kenai.city Councilor Sovala Kisena Term Expires 2027 skisena(a)kenai.city Councilor Glenese Pettey Term Expires 2026 gpette V(a)kenai.city CITY ADMINISTRATION The City of Kenai adopted the Council/Manager form of government in 1963 and has been operating under this form since that time. Under the Council/Manager form of government, the City Council is responsible for the establishment of policy which is then implemented and administered by the City Manager through the City's department directors. Airport Commission City Manager ...................................... Terry Eubank City Attorney ....................................... Scott Bloom City Clerk ............................................ Michelle Saner Finance Director ................................. David Swarner Human Resource Director .................. Stephanie Randall Planning Director ................................ Kevin Buettner Police Chief ........................................ David Ross Fire Chief ............................................ Jay Teague Public Works Director ......................... Lee Frey Library Director ................................... Katja Wolfe Park & Recreation Director ................. Tyler Best Airport Manager .................................. Interim Mary Bondurant Senior Center Director ........................ Kathy Romain The Citizens of the City of Kenai Mayor & City Council City Manager Council on Aging Airport Manager Library Director Harbor Commission Planning Director Parks and Recreation Director Planning & Zoning Commission Finance Director Police Chief =Parkscreation Commission Fire Chief Public Works Director Beautification Committee Human Resources Senior=CenterDirector Dire CONTACT INFORMATION City of Kenai, 210 Fidalgo Ave., Kenai, Alaska 99611 Phone: (907) 283-7535, Fax (907) 283-3014 www.kenai.city City Clerk ( City Attorney 2 The City's budget document is designed to serve four basic purposes: 1. To function as a financial plan for the City of Kenai during the 2027 fiscal year. 2. To provide a management tool to assist City staff in achieving the day to day results and outcomes approved for funding by the City Council. 3. To serve as a policy document, clearly articulating the policy direction provided by the City Council for implementation during the coming year. 4. To provide a communication tool for citizens, businesses, and other interested parties. This document should also provide the lay reader with a clear understanding of the activities funded in fiscal year 2027, the overall costs of those services, and understanding of the benefits derived from those activities, and an explanation of the process used to arrive at the funding decisions represented by this document. • How to Use This Document — This section includes an introduction to the budget documents as well as information about our City, the Council and our form of Government. Letter of Transmittal — This portion of the budget includes a letter from the City Manager to the Citizens of Kenai and the Kenai City Council explaining the budget documents. Additionally, it explains any significant changes from the previous year and details any major changes in financial policy. • The Budget Development Process — This section of the budget describes the entire process for putting the fiscal year 2027 budget together from estimating revenues and allocating expenditures through adoption of the final budget. • Fund Structure — This section provides a comprehensive list of City funds, their types, amounts and status as a major or minor fund. • Financial Policies — This section describe financial policies of the City which guide the formulation of this document. • Strategic Goals & Priorities — This section contains an outline of the approved financial policies and programs and the relationship of appropriations to this policies and programs. • Appropriating Ordinance and Resolution Establishing City's Mill Rate — The legislation enacted to adopt the FY2027 City of Kenai Operating and Capital Budget and the property tax levy for FY2027. Performance Measures — This section identifies and describes the City's adoption of performance measures in its operational management. Revenues — The revenues section summarizes the City's revenues from fiscal year 2025 through budgeted revenues that support the fiscal year 2027 budget. This section illustrates multi -year revenue trends and projects revenues for the coming year. This section is a vital element of the City's financial plan, and also serves as a communications tool for citizens and a reflection of Council policy through its decisions regarding the property tax levy, utility charges, and other issues. Operating Budgets — This section provides a summary of each departmental budget. Each summary department's mission, function and responsibilities, an organization chart, staffing history including overtime by position, department performance measures, an evaluation of FY2026 Goals, FY2027 Department Goals and future considerations of the department. Major & Capital Projects — This section provides a summary and description of the City's Five-year capital improvement program. This includes all projects that meet the City's definition of a capital project, and include fixed and permanent improvements to City facilities and infrastructure, and new construction of facilities, with a useful life of one year or more and cost of over $35,000. Appendices — This section provides a other information about the City and its operations which users may find valuable. ■ City of Kenai Schedule of Rates, Charges & Fees. ■ Authorized Personnel Staffing Table. ■ City Entity -wide Organization Chart. ■ FY2027 City Salary Schedule. ■ Chart of Accounts. ■ Kenai Community Profile. ■ Glossary of Key Terms. • 000, City of Kenai June 3, 2026 Citizens of Kenai Kenai City Council K E N 4 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city RE: FY2027 Proposed Budget Transmittal Letter Pursuant to Kenai Municipal Code 7.25, which provides legal standards for preparing, presenting, adopting, implementing, and monitoring the budget, I submit the FY2027 proposed budget for your consideration. This budget maintains current service levels within City operations and prioritizes the maintenance of the City's capital infrastructure through major and capital projects, all while remaining mindful of the community's needs and priorities. The FY2027 budget does not propose any change to the property tax mill levy or City sales tax rate. In preparation of the budget council established seven goals, this budget achieves six of those goals and partially achieved the seventh. Major and capital project expenditures focus on maintaining the City's current infrastructure. The FY2027 Budget as proposed shows a General Fund deficit of $317,340 after projected lapse of $1,040,689. During the preparation of this budget, we were fully cognizant of the need to ensure the long-term value of investments and the financial stability of our City. General Fund reserves are sufficient to commit $4,057,458 to funding the City's five-year capital plan. $4,057,458 represents sufficient funding for 33.01 % of the total five-year plan. The City is in a position to fully fund our five-year Capital Improvement Plan without an increase in property tax or sales tax, contingent on receiving sufficient grant funds identified in the plan. Fiscal constraint will be needed during the next five years, with capital projects focused on maintenance of our existing infrastructure. Investment in any new infrastructure should be strategic, fully vetted, and provide a clear return on investment, while supporting a thriving business, residential, recreational and cultural community. Major initiatives for the City in FY2027 are: Strategic Planning • Lead a collaborative planning process involving the City Council, staff, and community stakeholders to establish a clear multi -year vision, identify organizational priorities, set measurable goals and objectives, align resources with community needs, and adopt an implementation framework that includes timelines, accountability measures, and regular progress reporting. • Oversee the finalization of the Airport Master Plan through coordination with airport users, regulatory agencies, consultants, and community stakeholders to establish a long-term vision for airport development, prioritize capital improvement projects, ensure regulatory compliance, identify funding opportunities, and position the airport for future operational and economic growth. Economy and Jobs: • Continue to market our City to retain and attract specific businesses and industries that are necessary to maintain and grow the local economy. Growth in the local economy will ensure continued growth in sales and property tax to support local employment and City services in the coming years. • Explore the development of policies and initiatives to attract new investment in Kenai. Create policies which foster investment in Kenai and, in particular, into revitalizing some of Kenai's older structures and expanding housing opportunities is important to the City's future success. • Streamline and clarify City processes to assist new and existing businesses with operating in and continued investments in Kenai. Infrastructure: • With fewer grants from the State of Alaska to construct and maintain City infrastructure, the City is prioritizing the use of and working to identify new sources of revenue to assist in maintaining the City's assets. Within the City's Five -Year Capital Plan, the priority has been placed on the maintenance of existing assets with an emphasis on the assets needed to provide core City services. • Road maintenance is a central priority in the FY2027 budget and reflects the City's commitment to responsible stewardship of public infrastructure. In FY2026 a comprehensive street condition assessment was completed, which recommended an annual investment of approximately $1.5 million to maintain and improve existing road conditions. The FY2027 budget responds to this evaluation by allocating $1,675,000 for street maintenance, supporting continued progress toward preserving and improving the City's roadway system. • The City is in the process of evaluating long-term facility needs for public safety operations for Police, Fire and Dispatch. This assessment includes consideration of existing City - owned buildings to determine the most efficient and cost-effective solutions. • Total FY2027 transfers to capital projects by fund are as follows: General Fund $2,380,000 Congregate Housing Fund 100,000 Airport Fund 380,100 Water & Sewer Fund 710.000 $3 5 00,100 • In addition to the $3,570,100 in capital projects there is an additional $280,300 for special projects in FY2027 as follows: General Fund $167,300 Congregate Housing Fund 37,000 Personal Use Fishery Fund 46,000 Airport Fund 30,000 $280,300 Page 2 of 3 (Cj,The City of Kenai I www.kenai.city The proposed FY2027 budget maintains the core services that our residents depend upon and assures good stewardship and use of public funds. The City of Kenai is financially sound and well -positioned to grow and succeed in the years to come. I look forward to discussing this budget with the City Council and the community. I encourage your comments and suggestions on the services we provide. Sincerely, i Terry Eubank City Manager Page 3 of 3 (Cj- 7 The City of Kenai I www.kenai.city This page intentionally left blank For the FY2027 Budget, the City Council held a work session on January 7, 2026 at which it discussed and formulated goals for the formation of the FY2027 Budget. Those goals were formally adopted by Resolution 2026-03 on January 21, 2026. Utilizing the goals adopted by the City Council, the City Manager directed all departments to submit a budget that would meet its needs with an emphasis on identifying efficiencies and maintaining the fiscally conservative culture of the City. With inflationary pressures not seen in the Country for forty years, status quo or budget reductions were not expected or required, unless generated through efficiencies. The administration selected this approach acknowledging the fiscal situation facing the state, nation and Kenai citizens. The Kenai City Council and the City's Administration are committed to providing a budget which can support operations, excluding capital and one-time special projects utilizing the City's current revenue sources. FY2027 projects no use of General Fund, fund balance with a projected deficit of $317,340. The FY2027 General Fund budget includes $2,380,000 in capital funding and $167,300 in one-time special project funding. Basis of Budgeting For all Governmental Funds the City prepares a modified accrual basis budget, which is the same basis utilized in preparation of the City's Comprehensive Annual Financial Report. A modified accrual basis budget recognizes revenues when they are measurable and available. Revenues are considered available when they are collectible in the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to claims and judgments and compensated absences, are recorded on when payment is due. For the Proprietary Funds of the City an accrual basis budget is prepared using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of cash flows. Grants and similar programs are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Budget Adoption The City of Kenai adopts a legally binding annual budget in accordance with Kenai Municipal Code (KMC) 7.25, which provides legal standards for preparing, presenting, adopting, implementing and monitoring the budget. The City's Fiscal Year runs from July 1st to June 30th. The City's budget serves as a roadmap for the fiscal year's expenditures and reflects the goals and policies of the City. Per KMC 7.25.010(g) the adoption of a budget shall be completed by the tenth day of June annually. Finance Department staff began the preparation of the 2027 budget in November 2026. By the beginning of April, a preliminary budget was completed. Staff presented the proposed budget to City Commissions beginning in April with the final draft being presented to the City Council in April, and a public hearing work session was held the same month. A public hearing to adopt the proposed budget occurred on June 3rd. The budget process ends when the final budget is adopted on or before June 3rd by the Kenai City Council. Budget Chronology November 14 — New personnel/position reclassification requests to HR Director. December 29 — Fiscal Year 2027 Budget Goals Work Session. January 7 — FY2027 Budget Goals & Fiscal Year 2027-2031 Capital Plan Work Session. January 21 — Public hearing on Resolution 2026-02 to adopt the Fiscal Year 2027-2031 Capital Plan. Public hearing on Resolution 2026-03 adopting goals to guide the preparation of the FY2027 Budget. January 26 — Revenue estimates to City Manager. January 30 — Budget guidance and submission requirements provided to department heads with preparation packets. February 13 — Overtime and temporary staffing salary and benefits requests to HR Director. Department budget narratives due to Finance. Department operational budget submission due to Finance. Overtime and temporary staffing salary benefits requests to Finance. February 15 — Department Special Project requests due to Finance. March 13 — Personnel salary and benefits totals to City Manager. March 16 — 27 — Department budget meetings with City Manager. March 27 — City Manager approval of salary and benefits. Consolidated operational budget submitted to City Manager. Consolidated Special Project requests submitted to City Manager. April 15— State of the City address. April 17 — Draft budget distributed to Council. May 2 — Budget work session with Council. May 12 — Budget Ordinance to City Clerk for May 20 Council packet. May 20 — Introduction of Budget Ordinance. May 26 — Mill Rate Resolution to City Clerk for June 3 Council Packet. Publish notice of public hearing to adopt FY2027 Budget. June 3 — Public Hearing and adoption of Budget Ordinance. Public Hearing and approval of Mill Rate Resolution (Must be provided to KPB by June 15). June 24 — Publication and distribution of the Budaet document. `r Budgetary control (the level at which expenditures may not exceed budget) is maintained at the object class level by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Purchase orders which would result in an overrun of object class balances are not released until additional appropriations are made available Amending the Budget After approval by the Finance Director as to availability of unencumbered balances, transfers up to the amount of available funds may be made in line item accounts within a department of a fund and by up to ten thousand dollars ($10,000) between the accounts of departments within a fund. The City Clerk may make such transfers within the General Fund Department of the City Clerk, and the City Attorney may make such transfers within the General Fund Department of Law. The City Manager may make such transfers in all other areas except in the Legislative Department, which may be made by the Mayor or designee. The budgetary level of control will be the project level for Capital Project Funds. When the Council determines that it is in the best interest of the City to authorize a budget transfer equal to or in excess of $10,000 for a particular fund, it may do so by adopting a resolution with a simple majority vote. When the Council determines that it is in the best interest of the City to increase or decrease appropriation for a particular fund, it may do so by enacting an ordinance with a simple majority vote. Encumbrances In all Governmental Funds of the City, when goods and services are not received by the end of the year, encumbrance accounting is employed. Encumbrances (e.g., purchase orders, contracts) outstanding at year-end are reported as appropriate constraints of fund balances if they meet the definitions and criteria as outlined above. These commitments will be re -appropriated and honored during the subsequent year. is The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. Each fund is accounted for with a separate set of self - balancing accounts that comprise its revenues and expenditures. The City's resources are allocated to and accounted for in individual funds depending on what they are to be spent for and how they are controlled. The City budgets each fund individually and each fund must be appropriated. Accounting for the flow of dollars in and out of accounts varies depending upon whether the fund is of the governmental, proprietary or fiduciary type. Major funds are funds whose revenues, expenditures/expenses, assets or liabilities (excluding extraordinary items) are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds. The General fund in all cases is considered a major fund. Governmental Funds, Governmental Funds are designed to measure those financial resources on hand at the end of a period that are available to be expended or appropriated in future periods. Examples of governmental funds are the General Fund, Special Revenue funds, Debt Service funds, Permanent Funds and Capital Project funds. Permanent Funds Debt Service General Land Sale Airport Land Sale Permanent Fu nd Permanent Fund Governmental Funds General Fund Special Revenue Funds Personal Use Fishery Fund Senior Citizen Fund Airport Fund Capital Projects tl Sewerund The General Fund is the City's primary operating fund. It accounts for all financial resources except those required to be accounted for in other funds and is generally considered to represent the day to day operations of the City. It derives the majority of its revenues from taxes, state shared revenues and fines. Special revenue funds account for proceeds of specific revenue sources that are restricted in some way or committed for purposes other than debt service or capital projects. The City's Special Revenue Funds include the Airport Fund, the Water & Sewer Fund, the Personal Use Fishery Fund and the Senior Citizen Fund. Debt service funds are used to account for the accumulation of resources for payment of general obligation debt. Payment for general obligation debt is backed by the full faith and credit of the City. The primary source of revenue for this fund is a transfer from the City's General Fund. The City operates two permanent funds which invest the proceeds from the sale of land acquired by the City's General Fund and land deeded to the City by the Federal Aviation Administration requiring their use be for the betterment and operations of the Kenai Municipal Airport. `v: Capital project funds are used to account for the construction of major capital facilities other than those financed by proprietary funds. Capital project funds are not included in the City's annual budget but are budgeted separately with construction funds depending on the project's budget. Proprietary Funds, Proprietary funds distinguish operating revenues and expenses from non - operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise fund and of the City's internal service funds are charges to customers for sales and services. Operating expenses for the enterprise fund and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non -operating revenues and expenses. Proprietary Funds Enterprise Funds) i Internal Service Fund Vintage Pointe Equipment Employee Health Fleet Repla( Senior Housing Replacement Fund Care Fund Fund Fund The City has three internal service funds: Equipment Replacement Fund, Employee Health Care Fund and Fleet Replacement Fund. The Equipment Replacement Fund was created in FY1998 to provide a financing mechanism for the replacement of equipment used by the General Fund with a minimum value of $50,000. General Fund departments are charged an estimated amount to provide for the equipment's replacement at the end of its useful life. The Employee Health Care Fund accounts for all costs associated with employee health care and charges each fund and department based upon the number of eligible employees. The Fleet Replacement Fund was created in FY2021 to provide a financing mechanism for replacement of General Fund and Senior Citizen Special Revenue Fund vehicles. Departments are billed for the estimated replacement cost of the vehicles utilized to provide its services. Budaeted Maior Fund Minor Fund General Fund Yes Yes No Special Revenue Funds: 1101w_ Use Fishery Fund Yes No Yes Water and Sewer Fund Yes Yes No Airport Fund Yes Yes No Senior Citizen Fund Yes No Yes Library Expansion Refunding Bonds Yes No Yes General Land Sale Permanent Fund Yes No Yes Airport Land Sale Permanent Fund Yes Yes No 13 Equipment Replacement Fund Fleet Replacement Fund Employee Health Care Fund Enterprise Funf Vintage Pointe Senior Housing Fund Playground Improvement' Park Improvement' Cemetery Improvement' Kenai Recreation Center Improvement' Kenai Senior Center Improvement 4 Kenai Bluff Erosion Improvement Personal Use Fishery Improvement' Kenai City Dock Improvement 4 Kenai Public Safety Improvements 4 Flight Service Station Improvements 4 Congregate Housing Improvement Kenai Multipurpose Facility Improvement' Library Improvement 4 Kenai Visitor Center' Kenai City Hall 4 Airport Operations Facility Improvement 3 Airport Snow Removal Equipment 3 Airport Terminal Improvement 3 Airport Improvements 3 Water & Sewer Improvement 2 Wastewater Treatment Facility Improvement 2 Trail Construction' Municipal Roadway Improvement Municipal Facility Improvement 4 Budgeted Major Fund Minor Fund Yes No Yes Yes No Yes Yes No Yes Yes Yes No Yes No Yes Yes No Yes Yes No Yes Yes No Yes Yes No Yes Yes Yes Yes Yes No Yes Yes No Yes Yes No Yes Yes No Yes Yes Yes No Yes No Yes Yes No Yes Yes No Yes Yes No Yes Yes No Yes Yes No Yes Yes No Yes Yes No Yes Yes No Yes Yes No Yes Yes No Yes Yes No Yes Yes No Yes When preparing the City's Comprehensive Annual Financial Report Capital Project Funds are consolidated by functional category. Consolidation of Capital Project Funds is as follows: ' Parks & Recreation Capital Project Fund 2 Water & Sewer Capital Project Fund 3 Airport Improvement Capital Project Fund 4 Miscellaneous Capital Project Fund 14 The financial policies establish the framework for overall fiscal planning and management and sets forth guidelines for both current and long-term planning. These policies are reviewed annually to assure the highest standards of fiscal management. The City Manager and Department Directors have the primary role of reviewing financial actions and providing guidance on financial issues to the City Council. OVERALL GOALS The overall financial goals underlying these policies are: 1. Fiscal Sustainability: To ensure the City is in a solid financial condition at all times. This can be defined as: a. Fiscal Solvency — the ability to meet current and future fiscal obligations. b. Budgetary Solvency — the ability to provide a balanced budget. c. Service Level Solvency — the ability to provide needed and desired services. 2. Flexibility: To ensure that the City is in a position to respond to changes in the economy or new service challenges without an undue amount of financial stress. 3. Adherence to the Highest Accounting and Management Practices: As set by the Government Finance Officers' Association (GFOA) standards for financial reporting and budgeting, the Governmental Accounting Standards Board, and other professional standards. Based on the overall goals listed above the following Financial Policies are provided: Operating Budget Policies The budget is a plan for allocating resources. The objective is to enable service delivery with allocated resources. Services must be delivered to the citizens at a level that will meet real needs as efficiently and effectively as possible. • The City's goal is to pay for all recurring expenditures with recurring revenues and to use nonrecurring revenues for non -recurring expenditures. • It is important that a positive undesignated fund balance and a positive cash balance be shown in all governmental funds at the end of each fiscal year. • When deficits appear to be forthcoming within a fiscal year, spending during the fiscal year should be reduced sufficiently to create a positive undesignated fund balance and a positive cash balance. • The budget should be structured so that users can readily establish the relationship between expenditures and the achievement of service objectives. • Individual department budget submissions must be prepared with the basic assumption that current tax rates will be maintained. • The budget will provide for adequate maintenance of capital plans and equipment and for its orderly replacement. • A balanced budget is defined as revenues, including the use of fund balance as a revenue source, equaling expenditures. Debt Policies The City will not fund current operations from the proceeds of borrowed funds. When the City finances capital projects by issuing bonds, it will repay the debt within a period not to exceed the expected useful life of the asset. The City will maintain good communication about its financial condition with bond and credit institutions. 15 • The City will follow a policy of full disclosure in every annual financial statement and bond official statement. • The City will avoid borrowing on tax anticipation and maintain an adequate fund balance. • Pursuant to Section 6-1 of the Kenai Municipal Charter, outstanding general -obligation indebtedness of the City shall not at any time exceed twenty percent (20%) of the assessed value of real and personal property in the City. Revenue Policies • The City will try to maintain a diversified and stable revenue structure to shelter it from short -run fluctuations in any one -revenue source. • The City will estimate its annual revenues by an objective, analytical process. • The City will regularly review user fee charges and related expenditures to determine if pre- established recovery goals are being met. • The City should routinely identify governmental aide funding possibilities. Investment Policies • The City will maintain an investment policy based on the Government Finance Officers' Association (GFOA) model investment policy. • The City will conduct an analysis of cash flow needs on an ongoing basis. Disbursements, collections, and deposits of all funds will be scheduled to ensure maximum cash availability and investment potential. • The City will invest public funds in a manner that will best meet the objective specified in Chapter 7.22 of Kenai's Municipal Code. The relative order of importance are as follows; safety of principal, maintaining sufficient liquidity to meet the City's cash flow requirements, and achieving a reasonable market rate of return. Accounting, Auditing and Reporting Policies • The City will establish and maintain a high standard of accounting practices in conformance with Generally Accepted Accounting Principles (GAAP). • The accounting system will maintain records on a basis consistent with accepted standards for government accounting according to the Government Accounting Standards Board (GASB). • An independent firm of certified public accountants will perform an annual financial and compliance audit and will publicly issue an opinion, which will be incorporated into the Annual Comprehensive Financial Report. • The City will annually strive for the GFOA Certificate of Achievement for Excellence in Financial Reporting and the GFOA Distinguished Budget Presentation Award. Capital Budget Policies • The City will make all capital improvements in accordance with an adopted capital improvements program. • The City will develop a multi -year plan for capital improvements that considers its development policies and links the development process with the capital plan. • The City will enact an annual capital budget based on the multi -year capital improvements program. • The City will coordinate development of the capital improvement budget with development of the operating budget. Future operating costs associated with new capital projects will be projected and included in operating budget forecasts. • The City will maintain all its assets at a level adequate to protect its capital investments and to minimize future maintenance and replacement costs. Fund Specific Policies GENERALFUND The General Fund is the general operating fund of the City of Kenai, funded primarily through taxes, intergovernmental revenues, and user fees. This fund accounts for the current financial resources of the City which are not required by law or administration action, to be accounted for in another fund. Fund Balance Policy Background The City of Kenai maintains its financial operations in a manner consistent with sound financial management principles, which require that sufficient funds be retained to provide a stable financial base at all times. An adequate fund balance level is an essential element in both short-term and long-term financial planning. It serves to mitigate current and future risks, sustain operations during economic downturns, provides cash flow liquidity for the City's general operations, and enhances creditworthiness. Maintenance of sufficient levels of fund balance enables the City to stabilize funding for operations, stabilize taxes and fees, and realize cost savings in issuing debt. While adequate levels of fund balance are important, the City strives to maintain an appropriate amount that is neither too high nor low. Purpose This policy establishes a target level of fund balance for the General Fund in order to sustain financial stability and to provide prudent management of the City's financial reserves. This policy establishes a process for reaching and or maintaining the targeted level of fund balance and the priority for the use of resources in excess of the target. This policy shall also provide a mechanism for monitoring and reporting the City's General Fund Balance. This policy only applies to the General Fund. Definitions and Classifications Fund balance is a surplus of funds accrued from unexpended operating budgets and unanticipated revenues. It is calculated as the difference between the assets and liabilities reported in a governmental fund. Fund balance consists of five classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purpose for which amounts can be spent. The five classifications of fund balance applicable to the General Fund are defined as follows. Restricted Fund Balance Components: Nonspendable fund balance amounts that are not in a spendable form (e.g., inventory) or legally or contractually required to be maintained. There is no minimum funding requirement for this account. Restricted fund balance amounts that can be spent only for the specific purposes stipulated by external parties either constitutionally, through enabling legislation, or through other legally binding restrictions (e.g., proceeds from the sale of or mineral royalties paid for property deeded to the City by the Daubenspeck Family). There is no minimum funding requirement for this account. Unrestricted Fund Balance Components: • Committed fund balance amounts that can only be used for the specific purposes determined by a formal action of the City Council. Commitments may be changed or lifted only by referring to the formal action that imposed the constraint originally (e.g., the City of Kenai stabilization account). 17 Assigned fund balance amounts intended to be used by the government for specific purposes. Intent can be expressed by the City Council or by a designee to whom Council designates the authority. No formal ordinance or resolution is required to form intent. There is no minimum funding requirement for this account. Unassigned fund balance consists of the remaining funds not segregated above. These funds may be used for new programs or positions desired outside of the current and established budget or for one-time capital investments. There is no minimum funding requirement for this account. Designating Funds: The responsibility for designating funds to specific classifications shall be as follows: • Committed fund balance — The City Council is the City's highest decision -making authority, and formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is an ordinance approved by the Council. Commitments authorized in Kenai Municipal Code include: o Encumbrances — Amounts encumbered at year-end by contract, including purchase order, or encumbered by some other means shall be classified as committed. o Budget Appropriation — Amounts appropriated in the annual budget, or in supplemental appropriations, for expenditures in ensuing fiscal year shall be classified as committed. o Budgetary Stabilization Reserve — An amount created by this policy equal to a risk adjusted by three (3) months of operating expenditures and transfers. Assigned fund balance — The City Council has retained authority to assign fund balance to a specific purpose. Assignments will be made periodically via Council action, an ordinance is not required for assignment of fund balance. Annually, at budget adoption, Council will review and confirm existing assignments. Examples include: o Operational and Capital Contingencies Reserve — An amount created by this policy in excess of a risk adjusted three months of expenditures and transfers but less than a risk adjusted four months of expenditures and transfers. o Compensated Absences — Actual accumulated employees' vacation balances at the end of each fiscal year. Fund Balance Policy: It is the policy of the City of Kenai to commit to a budgetary stabilization reserve an amount of fund balance equal to a risk adjusted three (3) months of General Fund expenditures and transfers measured on a General Accepted Accounting Principles (GAAP) basis. The sum total of the budgetary stabilization reserve, other Council commitments and assignments, and fund balance reservations required by GAAP, will equal the minimum recommended fund balance for the City's General Fund. This amount is prudent based upon an evaluation of the City's operating characteristics, diversity of tax base, reliability of non -property tax sources, working capital needs, impact on bond rating, state and local economic outlooks, emergency and disaster risk, and other contingencies. In the event that the fund balance drops below this minimum level, the City will develop a plan, implemented through the annual budgetary process, to bring the balance back to the target level over a period of no more than three (3) fiscal years, inclusive of the budget year in which it is to be adopted. The City Council has imposed on itself a rule requiring an affirmative vote by at least five members of the Council in order to appropriate fund balances below the established minimum level. This appropriately balances the need to make such monies available if truly necessary in the judgement of the elected City leaders, and the need to protect against the temptation to use this balance to meet recurring operating needs when recurring operating revenues are not sufficient. 18 Fund balance equal to a risk adjusted one (1) month of expenditures and transfers but less shall be assigned for an operational and capital contingencies reserve. The sum total of the budgetary stabilization reserve, the operational and capital contingencies reserve, other Council commitments and assignments, and fund balance reservations required by GAAP, will equal the maximum recommended fund balance for the City's General Fund. Fund balance in excess of this policy's maximum amount shall be unassigned and available for capital improvements identified in the five-year capital improvement plan or other one-time expenditures or debt service reserves. Unassigned fund balance may be utilized for recurring expenditures provided financial projections show the expenditures will be supported by revenues, other than a use of fund balance, within three (3) years, inclusive of the budget year which it is to be adopted, and at no time shall fund balance drop below this policy's minimum fund balance amount. Policy Administration The City Manager will report to the City Council an estimated, unaudited balance of General Fund, Fund Balance during the annual budget submission process. Fund balance will be reported by appropriate category and demonstrate compliance with this policy. The City Manager is required to propose a budget with the following requirements: 1. A budget with a projected ending level of fund balance at or above this policy's minimum level over a period of no more than three (3) fiscal years inclusive of the budget year being adopted. A budget showing any use of this policy's minimum amount of fund balance shall require five (5) affirmative votes of Council to adopt. 2. A budget including a prioritization for commitment or use of unassigned fund balance including a five year capital priority list. 3. A budget with financial projections showing recurring expenditures, for which fund balance is the revenue source, will be supported by revenues, other than the use of fund balance, within three (3) fiscal years, inclusive of the budget year being adopted, and at no time shall fund balance drop below this policy's minimum amount. Annually during the Annual Comprehensive Financia Director shall report the City's fund balance and the accordance with GAAP and this policy. I Report (ACFR) presentation, the Finance classification of the various components in 19 7/ KENAI CITY OF KENAI ORDINANCE NO. XXXX-2026 Sponsored by: Administration AN ORDINANCE ADOPTING THE ANNUAL BUDGET, SALARY SCHEDULE AND EMPLOYEE CLASSIFICATION PLAN FOR THE FISCAL YEAR COMMENCING JULY 1, 2026 AND ENDING JUNE 30, 2027 AND COMMITTING $4,041,458 OF GENERAL FUND, FUND BALANCE FOR FUTURE CAPITAL IMPROVEMENTS. WHEREAS it is a requirement of the Code of the City of Kenai, Alaska, that the City Council, not later than the tenth day of June, adopt a budget for the following fiscal year and make appropriation of the monies needed; and, WHEREAS, pursuant to Kenai City Charter section 2-4, the City Council has the power to adopt a budget, raise revenue, and make appropriations; and regulate salaries and wages and all other fiscal affairs of the City; and, WHEREAS, adoption of this Ordinance constitutes Council meeting its obligation to adopt a budget, raise revenue, and make appropriations; and, WHEREAS, through adoption of the document entitled "Annual Budget for the City of Kenai, Alaska July 1, 2026 — June 30, 2027", which includes the City Manager presented table of Authorized Personnel Staffing and Salary Schedules, Council meets its obligation to adopt the Salary Schedule of the City for fiscal year 2027; and, WHEREAS, adoption of the document entitled "Annual Budget for the City of Kenai, Alaska July 1, 2026 — June 30, 2027", which includes the City Manager presented Employee Classification Plan satisfies the requirement of KMC 23.50.010; and, WHEREAS, committed fund balance represents resources whose use is constrained by Council self- imposed limitations at its highest level of decision making, an Ordinance, and that remain binding unless removed in the same manner; and, WHEREAS, in recognition of deferred and ongoing maintenance needs of City facilities and in support of the City's Fiscal Year 2027 — 2031 Capital Improvement Plan (The Plan), Council commits $4,041,458 towards funding of The Plan for fiscal years 2027-2031. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That certain document entitled "Annual Budget for the City of Kenai, Alaska July 1, 2026 — June 30, 2027" which is available for examination by the public in the Office of the City Clerk, the City's website and is incorporated herein by reference is hereby adopted as the budget for the City of Kenai for the fiscal year commencing July 1, 2026 and ending June 30, 2027. New Text Underlined; [DELETED TEXT BRACKETED] 20 Section 2. The following sums of money are hereby appropriated for the operations of the City of Kenai for the fiscal year commencing on the first day of July, 2026, and ending the 30th day of June, 2027, to be expended consistent with and subject to the restrictions, procedures, and purposes set forth in the Code of the City of Kenai and to be expended substantially by line item in the manner shown in the budget adopted by Section 1 hereof: General Fund $ 23,570,910 Enterprise Fund — Congregate Housing Fund 694,834 Internal Service Funds: Equipment Replacement Fund 288,678 Fleet Replacement Fund 103,174 Employee Health Care Fund 2,997,788 Total Internal Service Funds 3,389,640 Special Revenue Funds: Personal Use Fishery Fund 594,590 Water & Sewer Fund 3,602,337 Airport Fund 4,042,144 Senior Citizen Fund 1,139,480 Total Special Revenue Funds 9,378,551 Permanent Funds: Airport Land Sale Permanent Fund 1,151,157 General Land Sale Permanent Fund 176,498 Total Permanent Revenue Funds 1,327,655 Capital Project Funds: Park Improvement 150,000 Kenai Rec Center Improvements 120,000 Municipal Roadway Improvement 1,450,000 City Hall Improvements 200,000 Municipal Facility Improvements 300,000 Senior Improvement 60,000 Congregate Housing Improvement 100,000 Airport Improvement 380,100 Water & Sewer Improvement 710,000 Total Capital Project Funds 3,570,100 Debt Service Fund — Library Expansion Bonds 125,375 Total All Funds $42,0 77,065 21 Section 3. Council hereby commits $4,041,458 of Unassigned General Fund, Fund Balance for future renovations and improvements to City facilities. Section 4. Council hereby adopts the Salary Schedule presented by the City Manager and included in the "Annual Budget for the City of Kenai, Alaska July 1, 2026 - June 30, 2027": 1 Police Trainee $ 14.82 $ 15.19 $ 15.56 $ 15.94 $ 16.29 $ 16.67 $ 17.30 $ 17.93 $ 18.57 $ 19.19 $ 19.82 2 $ 15.56 $ 15.95 $ 16.34 $ 16.72 $ 17.12 $ 17.51 $ 18.17 $ 18.83 $ 19.49 $ 20.15 $ 20.81 3 $ 16.34 $ 16.74 $ 17.16 $ 17.57 $ 17.98 $ 18.38 $ 19.08 $ 19.76 $ 20.46 $ 21.16 $ 21.86 4 $ 17.16 $ 17.59 $ 18.02 $ 18.45 $ 18.88 $ 19.30 $ 20.04 $ 20.76 $ 21.49 $ 22.22 $ 22.95 5 $ 18.01 $ 18.45 $ 18.91 $ 19.36 $ 19.80 $ 20.25 $ 21.02 $ 21.78 $ 22.55 $ 23.31 $ 24.08 Driver, Janitor, Kitchen Assistant, Parks & Rec $ 18.92 $ 19.39 $ 19.87 $ 20.34 $ 20.81 $ 21.28 $ 22.08 $ 22.90 $ 23.70 $ 24.50 $ 25.30 6Laborer, Recreation Center Attendant 7 $ 19.86 $ 20.36 $ 20.85 $ 21.35 $ 21.85 $ 22.35 $ 23.19 $ 24.03 $ 24.88 $ 25.71 $ 26.56 8 Cook, LibraryAide $ 21.26 $ 21.79 $ 22.32 $ 22.86 $ 23.39 $ 23.92 $ 24.82 $ 25.72 $ 26.62 $ 27.53 $ 28.44 9 $ 22.33 $ 22.90 $ 23.45 $ 24.01 $ 24.57 $ 25.12 $ 26.07 $ 27.02 $ 27.98 $ 28.93 $ 29.86 10 $ 23.44 $ 24.02 $ 24.61 $ 25.19 $ 25.78 $ 26.38 $ 27.38 $ 28.36 $ 29.35 $ 30.35 $ 31.35 11 $ 24.59 $ 25.20 $ 25.82 $ 26.44 $ 27.05 $ 27.66 $ 28.70 $ 29.75 $ 30.79 $ 31.84 $ 32.88 12 Library Assistant $ 25.85 $ 26.50 $ 27.14 $ 27.78 $ 28.44 $ 29.09 $ 30.19 $ 31.28 $ 32.38 $ 33.48 $ 34.58 13 Administrative Assistant $ 27.15 $ 27.82 $ 28.51 $ 29.19 $ 29.86 $ 30.55 $ 31.70 $ 32.85 $ 34.01 $ 35.17 $ 36.31 Accounting Tech1,AdministrativeAssistant11, $ 28.51 $ 29.21 $ 29.94 $ 30.64 $ 31.35 $ 32.07 $ 33.27 $ 34.49 $ 35.70 $ 36.91 $ 38.12 14 Animal Control Officer, Parks & Rec Mai nt. Tech. Admin. Assistant III, Desktop SupportTech., $ 29.91 $ 30.66 $ 31.41 $ 32.16 $ 32.89 $ 33.65 $ 34.92 $ 36.19 $ 37.46 $ 38.73 $ 40.01 15PublicSafetyDispatcher,Utility0peratorl Accounting Tech II, Airport Operations Specialist, Building Maintainance Technician $ 31.41 $ 32.19 $ 32.98 $ 33.76 $ 34.55 $ 35.33 $ 36.66 $ 38.01 $ 39.34 $ 40.67 $ 42.01 16 Equipment Operator 17 Chief Animal Control Officer $ 33.01 $ 33.83 $ 34.67 $ 35.49 $ 36.31 $ 37.14 $ 38.55 $ 39.96 $ 41.34 $ 42.75 $ 44.16 18 Communications Supervisor, Utility Operator11 $ 34.64 $ 35.50 $ 36.36 $ 37.24 $ 38.10 $ 38.97 $ 40.43 $ 41.91 $ 43.37 $ 44.85 $ 46.32 Assistant Parks & Rec Director, Equipment Lead $ 36.37 $ 37.28 $ 38.19 $ 39.10 $ 40.02 $ 40.92 $ 42.48 $ 44.02 $ 45.57 $ 47.11 $ 48.66 19 Operator, Shop Mechanic, Utility Lead Operator 20 $ 38.17 $ 39.13 $ 40.08 $ 41.04 $ 42.00 $ 42.96 $ 44.58 $ 46.20 $ 47.82 $ 49.44 $ 51.06 Airport Operations Supervisor, Building Official, Police Officer, Shop Foreman, Street Foreman, $ 40.09 $ 41.09 $ 42.10 $ 43.10 $ 44.10 $ 45.11 $ 46.81 $ 48.51 $ 50.22 $ 51.92 $ 53.63 21 Building Foreman, Utility Foreman 1 22 Utility Foreman II $ 42.10 $ 43.15 $ 44.20 $ 45.25 $ 46.31 $ 47.36 $ 49.15 $ 50.94 $ 52.73 $ 54.53 $ 56.31 Ass ista nt to the City Manager/Special Projects $ 44.18 $ 45.28 $ 46.38 $ 47.49 $ 48.60 $ 49.71 $ 51.58 $ 53.46 $ 55.33 $ 57.22 $ 59.10 23 Coordinator, IT Manager 24 Police Sergeant, Assistant Public Works Director $ 46.40 $ 47.56 $ 48.73 $ 49.88 $ 51.05 $ 52.20 $ 54.18 $ 56.15 $ 58.13 $ 60.09 $ 62.07 25 Controller, Fire Deputy Chief $ 48.73 $ 49.94 $ 51.16 $ 52.38 $ 53.60 $ 54.81 $ 56.88 $ 58.95 $ 61.02 $ 63.10 $ 65.17 26 $ 51.19 $ 52.47 $ 53.75 $ 55.04 $ 56.31 $ 57.60 $ 59.77 $ 61.94 $ 64.12 $ 66.29 $ 68.47 27 Police Lieutenant $ 53.70 $ 55.05 $ 56.38 $ 57.73 $ 59.08 $ 60.41 $ 62.69 $ 64.98 $ 67.26 $ 69.54 $ 71.83 28 $ 56.40 $ 57.82 $ 59.23 $ 60.65 $ 62.04 $ 63.46 $ 65.86 $ 68.26 $ 70.66 $ 73.04 $ 75.45, Classified employees engaged in fire protection activities F18 Firefighter $ 24.25 $ 24.86 $ 25.46 $ 26.06 $ 26.66 $ 27.26 $ 28.29 $ 29.32 $ 30.35 $ 31.38 $ 32.42 F19 $ 25.47 $ 26.10 $ 26.73 $ 27.36 $ 28.00 $ 28.63 $ 29.71 $ 30.79 $ 31.87 $ 32.96 $ 34.04 F20 Fire Engineer $ 26.72 $ 27.39 $ 28.05 $ 28.71 $ 29.37 $ 30.04 $ 31.17 $ 32.31 $ 33.45 $ 34.58 $ 35.72 F21 $ 28.08 $ 28.78 $ 29.49 $ 30.19 $ 30.90 $ 31.60 $ 32.79 $ 33.99 $ 35.18 $ 36.37 $ 37.57 F22 Fire Captain, Fire Marshall $ 29.49 $ 30.22 $ 30.96 $ 31.69 $ 32.43 $ 33.16 $ 34.42 $ 35.67 $ 36.91 $ 38.17 $ 39.42, `IN Temporary Employees T1 $ 14.53 $ 14.90 $ 15.25 T2 $ 15.25 $ 15.63 $ 16.02 T3 $ 16.02 $ 16.42 $ 16.83 T4 $ 16.83 $ 17.24 $ 17.66 T5 $ 17.65 $ 18.09 $ 18.54 T6 $ 18.55 $ 19.01 $ 19.48 T7 $ 19.47 $ 19.96 $ 20.44 T8 $ 20.85 $ 21.37 $ 21.89 T9 $ 21.90 $ 22.45 $ 22.99 T10 $ 22.98 $ 23.55 $ 24.13 T11 $ 24.11 $ 24.71 $ 25.31 T12 $ 25.34 $ 25.98 $ 26.61 T13 $ 26.62 $ 27.28 $ 27.95 T14 $ 27.95 $ 28.64 $ 29.34 T15 $ 29.32 $ 30.06 $ 30.79 T16 $ 30.79 $ 31.56 $ 32.33 T17 $ 32.36 $ 33.17 $ 33.99 T18 $ 33.96 $ 34.80 $ 35.65 T19 $ 35.66 $ 36.55 $ 37.45 T20 $ 37.43 $ 38.36 $ 39.29 T21 $ 39.30 $ 40.28 $ 41.27 T22 $ 41.27 $ 42.30 $ 43.33 T23 $ 43.31 $ 44.39 $ 45.48 T24 $ 45.50 $ 46.63 $ 47.77 T25 $ 47.77 $ 48.96 $ 50.16 T26 $ 50.19 $ 51.44 $ 52.70 T27 $ 52.65 $ 53.96 $ 55.28 T28 $ 55.30 $ 56.69 $ 58.07 T29 $ 58.15 $ 59.60 $ 61.06, Section 5. Severability: 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. 23 Section 7. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect July 1, 2026. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 3rd DAY OF JUNE, 2026. ATTEST: Michelle M. Saner, MMC, City Clerk Approved by Finance: Henry Knackstedt, Mayor Introduced: Enacted: Effective: July 1, 2026 24 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2026-XX A RESOLUTION FIXING THE RATE OF LEVY OF PROPERTY TAX FOR THE FISCAL YEAR COMMENCING JULY 1, 2026 AND ENDING JUNE 30, 2027 WHEREAS, Kenai Municipal Code requires that the rate of levy of property tax be set annually not later than the tenth day of June; and, WHEREAS, the Council has adopted the "City of Kenai 2027 Annual Budget," which estimates property tax revenue based upon a tax rate of 4.35 mills. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the rate of levy of property tax for the fiscal year commencing July 1, 2026 and ending June 30, 2027 is fixed at 4.35 mills. Section 3. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 3rd DAY OF JUNE, 2026. ATTEST: Michelle M. Saner, MMC, City Clerk Approved by Finance: Henry H. Knackstedt, Mayor New Text Underlined; [DELETED TEXT BRACKETED] 25 Council Adooted FY2027 Budaet Goals The Kenai City Council established its FY2027 Budget Goals through adoption of Resolution 2026-03. A Council work session was held on January 7, 2026 for discussion and formation of FY2027 Budget Goals. At its meeting on January 21, 2026 Council considered and adopted Resolution 2026-03. Council's establishment of goals provides direction to the City Manager in his preparation of the budget. Specific goals adopted and the status of each is as follows: Broad Statement of Purpose The goal of the City is to prepare and adopt a fiscally responsible budget that 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 in creating a vibrant, well-balanced community in which individuals desire to live and businesses seek to locate. Council's adoption of these goals is intended to guide the Administration through its preparation of the City's FY2027 Annual Budget. Status: Achieved Specific Goals 1. Prepare a budget for consideration that meets the City's operational and long-term financial obligations. The proposed budget should prioritize sustainability and consider adjusting the City's current mill and sales tax rates only if necessary to ensure fiscal stability and compliance with the General Fund, Fund Balance Policy codified in KMC 7.25. Status: Achieved 2. Complete a review of the City's salary schedule and pay plan to ensure compensation remains competitive with comparable public employers. The plan should support the City's ability to recruit and retain qualified employees while protecting essential services and infrastructure. Incorporate a salary increase not to exceed inflation, as measured by the 2025 Alaska Consumer Price Index, second half over second half, if necessary to maintain competitive compensation with other public employers. Status: Achieved. 3. Review the City's health, dental, and life insurance benefits to ensure long-term sustainability while maintaining the current level and quality of coverage. Benefits should remain comparable to those offered by other public employers, and employee cost -sharing should likewise be comparable. If analysis indicates an increase in the employee cost share is warranted, limit the increase to no more than 1 % of the premium costs. 26 Status: Achieved. The proposed budget reflects the employee share at 15% of premium cost for FY2027. 4. Identify opportunities for cost savings and operational efficiencies, while maintaining service quality and effectiveness. Budget development shall be conducted through a transparent process that incorporates performance measures and a comprehensive review of past expenditures, future needs, and organizational priorities to support informed decision -making and responsible resource allocation. Status: Achieved. During the budget process opportunities for cost savings were discussed with each Department Head as they met with the City Manager and Finance Director to review previous spending, future needs and priorities in establishing the FY2027 budget. 5. Compile a list of capital projects, which are projects that cost $35,000 or more, for Council consideration and adoption to 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 FY2025 depreciation by fund and function were: General Fund $1,778,947 Airport Fund 2,306,604 Water & Sewer Fund 993,260 Total All Funds $5.0 88,811 Status: Achieved. Included in the budget from the adopted Capital Improvement Plan — Fiscal Years 2027-2031 is $152,451,500 of proposed expenditures. Funding for the plan includes $9, 890, 000 in General Funds Transfers, $5, 478, 500 in Airport Special Revenue Fund Transfers, $5, 070, 000 in Water & Sewer Special Revenue Funds Transfers, $500, 000 in Congregate Housing Funds Transfers, and $131, 513, 000 in grant funding. 6. Adjust rates, charges, and fees across all funds in line with inflation, as measured by the Annual Alaska Consumer Price Index for All Urban Consumers. Any increase in the monthly rents at Vintage Pointe for existing tenants as of June 30, 2025, shall be capped at no more than $50.00 per month. Status: Achieved. All city rates, charges and fees were examined for reasonableness and adjustments proposed were supported. 7. Utilize the results of the 2025 Community Survey to inform budget development by identifying areas of high resident satisfaction to be maintained and priority service areas where targeted investments or adjustments may be warranted. Budget recommendations should reflect community priorities related to City services, economic development, quality of life, and long-term community well-being, while remaining consistent with the City's fiscal policies and overall financial capacity. 27 Status Achieved. Each Department Head was tasked with this goal. One of the most significant changes was the increase in funding for road improvements. 8. Project ending fund balance/retained earnings of at least 50% of the FY2026 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 recurring expenditures/expenses so that the ending fund balance for each fund is not less than: Airport Fund Water & Sewer Fund Personal Use Fishery Fund Congregate Housing Fund Status: Partially Achieved Fund Airport Fund Water & Sewer Fund Personal Use Fishery Fund Congregate Housing Fund $1, 864, 079 1,472,409 277,698 283,209 Goal Proposed Difference $1, 864, 079 $3,108, 230 $ 1, 244,151 1,472,409 3,129, 029 1,656,620 277,698 269,979 (7,719) 283,209 583,130 299,921 Long -Term Strategic Goals and Priorities: The Kenai City Council established its long-term priorities through the 2030 Comprehensive Plan adopted in July 2016 and can be found on the City's website at: https://www.kenai.city/planning/page/comprehensive-plan. The primary goals of the plan are: Goal 1 - Quality of Life: Promote and encourage quality of life elements in Kenai. Vision: Kenai is a healthy community that provides for the emotional, physical, economic and spiritual wellbeing of all of its citizens; promotes the health and well-being for all age groups; provides opportunities for lifelong learning; and, encourages arts and cultural activities. Objectives: • Ensure that Kenai is a community where people and property are safe. • Protect and rejuvenate the livability of existing neighborhoods. • Promote beautification programs in Kenai. • Promote the siting and design of land uses that are in harmony and scale with surrounding uses. • Update existing site design guidelines for commercial development — landscaping, setbacks, parking. • Update the subdivision code to include site design standards. • Provide a variety of formal and informal educational programs. 28 • Collaborate with local Alaska Native organizations to identify culturally sensitive issues and areas of importance in Kenai. • Encourage healthy lifestyles by providing opportunities and/or facilities for outdoor activities. • Continue to support existing senior services and the development of additional services and housing. • Identify requirements for nominating the Townsite Historic District (TSH) to the National Register Historic District. • Update Historic District design standards in the City's land use regulations. • Develop strategies in cooperation with state and federal agencies to ensure there is adequate affordable housing in Kenai. • Continue to foster a compact, intensive mix of private and public uses in the downtown core area. • Acknowledge the emergence of other commercial centers. • Provide a wide variety of opportunities for the public to participate in public policy decision - making Goal 2 - Economic Development: Provide economic development elements to support the fiscal health of the community. Vision: Kenai has a secure economic vitality by being a community that has a wide variety of job opportunities and workforce support and development; by providing a quality of life and financial climate that encourages businesses to start up, expand or relocate to Kenai; and, by providing a built environment based on standards that sustain long-term economic viability and growth and that promotes affordable residential and commercial development. Objectives: • Promote projects that create workforce development opportunities. • Implement business friendly regulations, taxation and incentives to create a stable, positive climate for private investment. • Use regional economic and workforce statistics to match the most suitable type of industry for particular areas and then market these areas. • Promote adaptive reuse of vacant commercial buildings in the City center and along the Kenai Spur Highway. • Prior to zoning property to commercial, consider if use has access to collector or arterial road, access to city services, and that potential conflicts with adjacent non-commercial uses have been minimized through site design, landscaping, or other appropriate measures. • Prior to zoning to industrial, consider if use has access to collector or arterial road, access to city services, that potential conflicts with adjacent nonindustrial uses have been minimized through site design, and that potential hazards from the proposed industrial use have been minimized. • Reserve areas zoned for industry for industrial uses. • Capitalize on the tourism industry by marketing Kenai as a destination for recreational activities, conventions, festivals, arts, cultural and other events. 29 Goal 3 - Land Use: Use land use strategies to implement a forward -looking approach to community growth and development. Vision: Kenai implements a forward -looking approach to community growth and development by establishment of several different zoning districts that reflect the needs of each district; and, by providing commercial, industrial, and residential areas suited to current and probable future growth. Objectives: • Establish siting and design standards so that development is in harmony and scale with surrounding uses. • Promote the infill of existing, improved subdivision lots. • Review existing zoning and subdivision codes to determine if they address current and future land uses adequately. • Review revitalization strategies for the area adjacent to the Bridge Access Road beginning at Millennium Square to the boat landing. • Support development at emerging community "centers" that lie outside the major employment centers but provide a mix of retail, service, and residential uses. • Review Zoning Code to consider use of buffers and buffer zones to separate incompatible land uses. Review landscaping ordinance to ensure buffers are required to protect neighborhoods. • Identify City -owned and public -owned lands appropriate for rezoning to protect natural areas and open space. • Prohibit development in natural hazard areas. • Locate parks near schools, residential areas not served now. • Encourage creative subdivision design for residential areas. • Where feasible, consolidate access to and between land uses via frontage roads or by shared driveways onto main streets/highways. • Ensure that the installation of basic public infrastructure (roads, sewer, water, and drainage) are coordinated with the timing of development and that improvements are in place at the time impacts occur. • Coordinate transportation improvements with the City's land use plan, Capital Improvement Program, Alaska Department of Transportation & Public Facilities transportation plans, the Kenaitze Indian Tribe, and Salamatof Tribal Council. • Ensure a pattern of connecting streets and blocks that allows people to get around easily by foot, bicycle or car when approving new developments, both commercial and multifamily. • Review the siting of oil and gas development. • Support implementation of the City's Kenai Airport Master Plan Capital Improvements Program. • Coordinate senior services and facilities with improvements to the City center or downtown core. • Provide a wide variety of opportunities for the public to participate in local land use decisions. Goal 4 - Public Improvements and Services: Provide adequate public improvements and services in Kenai. Vision: Kenai encourages public involvement in decision making; has well planned public and institutional facilities that meet the health, education, governmental and social service needs of 30 all citizens; has an integrated efficient and cost-effective network of utilities and public improvements and is a community where the public feels safe. Objectives: • Ensure that the installation of basic public infrastructure (roads, sewer, water, and drainage) is coordinated with development and that improvements needed to serve the development are in place at the time impacts occur. • When siting and designing a new public facility the city shall determine if the facility is necessary, if the demand for services can be met, and if there funding sources in place to pay for it. • Maintain existing water and sewer utilities. • Consider additional city activities and services. • Continue mutual cooperation activities with the Kenai Peninsula Borough Division of Emergency Management for efficient delivery of public safety services (police, fire, EMS) to residents of the City of Kenai. Goal 5 — Transportation: Provide transportation systems that are efficient and adequate to serve the regional needs of the community. Vision: Kenai Municipal Airport is a gateway to the Kenai Peninsula and West Cook Inlet; the roads are designed, constructed, and maintained for year-round use; and the harbor functions as a vital facility for water connection to other areas in the State. Objectives: • Support future development near or adjacent to the airport when such development is in alignment with the Kenai Municipal Airport's primary mission, "To be the commercial air transportation gateway to the Kenai Peninsula Borough and Cook Inlet." • Inventory existing roads, trails, and utilities and identify and prioritize upgrades. • Establish a maintenance and upgrade program for the City's transportation system. • Pursue local road projects through annual budget requests from the STIP. • Transportation improvements needed to serve new developments shall be in place at the time new development impacts occur. • Ensure a pattern of connecting streets and blocks that allows people to get around easily by foot, bicycle or car when approving new developments, both commercial and multifamily. • Actively pursue design and construction of a Kenai River Bridge Access Road and coastal and bluff trail system • Coordinate transportation improvements with the city's land use plan, capital improvements program, ADOT&PF transportation plans, the Kenaitze Indian Tribe, and Salamatof Tribal Council. Goal 6 — Parks and Recreation: Ensure that Kenai has excellent parks and recreational facilities and opportunities. Vision: Kenai enhances the quality of life for all citizens through parks and recreational facilities, programs, and community services. Objectives: • Pursue long-term development of a trail and greenbelt system that connects the proposed coastal trail and upland bluff trail with links to and through the urban area. 31 • Maintain existing recreational opportunities and plan for new parks and recreation improvements. • Promote the public/private collaboration for acquisition, development and maintenance of neighborhood parks, youth sports facilities, and recreational areas. • Support projects that provide additional quality outdoor and indoor recreation. • Establish criteria for siting parks and recreation facilities to make them accessible, safe, with adequate parking. • Promote the joint use of municipal land and facilities. • Encourage development of a mutually supportive cluster of diverse residential facilities for seniors near shops, services, activities, and amenities that cater to seniors as well as the community at large. • Locate future community parks near schools and residential areas not yet served by parks. • Preserve and protect water features such as isolated wetlands, stream corridors, drainage areas, and riparian areas for open space and to enhance water quality. • Include trails and bicycle paths in funding requests to ADOT&PF for future transportations plans. • Require that greenbelts be provided when new right-of-way corridors are established. Goal 7 - Natural Hazards and Disasters: Prepare and protect the citizens of Kenai from natural hazards and disasters. Vision: Kenai has coordinated and proactive public policies, emergency plans and procedures, and educational programs that minimize the risk to the community from natural hazards and disasters. Objectives: • Implement the 2016 Hazard Mitigation Plan strategies. • Prohibit development in known hazard areas except where no feasible or prudent alternative can be identified. Goal 8 — Environmental Resources: Protect and enhance the natural resources and environment of the community. Vision: Kenai practices mindful stewardship of the natural resources and the environment to ensure they are protected and enhanced for their viability and values in perpetuity. Objectives: • Maintain and improve protection of the Kenai River its beaches, tidelands and wetland areas. • Development plans should include provisions to avoid or minimize impacts on environmental resources such as the dunes, bluffs, wetlands. • Review, and modify as necessary, the City's long-term plan for management of the annual Personal Use Fishery. • Divert public trails away from sensitive salmon spawning streams. • Revise the conservation zone standards and rezone public lands surplus to Kenai's future development needs for conservation. • Pursue long-term development of an urban trail and greenbelt system that connects the proposed coastal trail and upland bluff trail with links to and through the urban area. • Preserve and protect water features such as isolated wetlands, stream corridors, drainage areas, and riparian areas for open space and to enhance water quality. 32 The City of Kenai has embraced performance measures for almost every function. Performance measurement provides the City with direct feedback about how we are doing. The data can be used to determine if a particular program is meeting its goal and whether it is improving or declining from the previous year. The City Council, Administration, Department Heads and Supervisors are supportive of the increased use of performance measures and the ability to focus on results that lead to better performance of City services. Performance measures are collected and displayed by department in the Operating Departments section. Key Result Measures Each department reports performance measures that reflect department values. Measures can change over time depending on leadership styles and community needs. Some departments may report outcome measures while others report performance measures depending upon the department's maturity with measuring performance. Goals Goals are set by using standards when available or results that are desirable. Department goals are intended to be SMART (Specific, Measurable, Attainable, Relevant, and Time -bound). Data and Analysis The City began collecting performance data in 2018 and reports this data to see if the results are going in the right direction. It is critical that each department analyze its data to be able to use it for day to day management of City operations. Performance measurement does not always lead to immediate cost savings. However, it can suggest where cost saving may be found. Sometimes it is an indicator of a bigger community or national issue. Finally, it can provide a dialogue about which services to provide and what is the best way to provide city services in the future. Decision Making These historical performance measures give the City valuable data by which to make decisions. 33 This page intentionally left blank 34 OVERVIEW This section of the budget document includes the revenue and expenditure summary for all funds. This page intentionally left blank 35 City of Kenai Fiscal Year 2027 Operating Budget Combined Revenues, Appropriations Fund Balance/Net Assets All Funds Special Revenue Funds Enterprise Internal Service Funds Personal Use Water & Senior Congregate Employee Equipment Fleet Fishery Sewer Airport Citizen Housing Health Care Replacement Replacement General Fund Fund Fund Fund Fund Fund Fund Fund Fund REVENUES Taxes $ 16,197,923 $ - $ $ $ - $ - $ $ - $ - Intergovernmental 969,389 3,303 54,047 52,756 637,287 5,231 Interest/investment Earnings 750,000 15,000 170,000 240,000 - 30,000 165,022 35,842 9,053 Charges for Service 1,569,280 515,500 3,596,798 920,300 101,650 - 2,483,272 - - Rents & Leases 243,041 - - 1,225,921 8,500 488,444 - 555,948 174,921 Licenses & Permits 196,750 - - - - - Fines & Forfeitures 100,600 - - - - - Miscellaneous 153,500 5,000 66,100 141,800 38,923 15,469 Transfers In 2,032,398 1,099,774 251,750 Total Revenues $ 22,212,881 533,803 3,825,845 3,604,851 1,140,987 523,675 2,648,294 630,713 199,443 EXPENDITURES/EXPENSES Salaries & Benefits 15,382,618 197,420 1,295,166 1,008,864 616,108 107,262 - - - Supplies 1,134,914 30,800 309,980 337,680 213,746 15,156 10,000 - - Services 4,240,253 147,670 979,691 1,106,700 121,426 253,070 2,987,788 288,678 103,174 Debt Service - - - - - - - - - Depreciation - - - - 140,446 Capital Outlay 56,000 43,000 - 30,000 20,000 37,000 Transfers 2,757,125 175,700 1,017,500 1,558,900 168,200 141,900 Total Expenditures 23,570,910 594,590 3,602,337 41042,144 1,139,480 694,834 2,997,788 288,678 103,174 Contributions to (from) Fund Balance/Net Assets (1,358,029) (60,787) 223,508 (437,293) 1,507 (171,159) (349,494) 342,035 96,269 Add Credit From Depreciation - - - - - 140,446 - - Projected lapse/encumbrances 1,040,689 34,389 155,090 148,995 48,564 Adjusted Deficit/Surplus (317,340) (26,398) 378,598 (288,298) 50,071 (30,713) (349,494) 342,035 96,269 Beginning Fund Balance/ Net Assets 18,077,851 371,591 2,750,431 3,396,528 (69,071) 613,843 3,300,441 4,726,605 1,128,356 Ending Fund Balance/ Unrestricted Net Assets $ 17,760,511 $ 345,193 $ 3,129,029 $ 3,108,230 $ (19,000) $ 583,130 $ 2,950,947 $ 5,068,640 $ 1,224,625 36 City of Kenai Fiscal Year 2027 Operating Budget Combined Revenues, Appropriations Fund Balance/Net Assets All Funds Permanent Funds Capital Project Funds Airport Land General Sale Land Sale Debt Kenai Kenai Senior Kenai Bluff Personal Use Permanent Permanent Service Park Cemetery Recreation Center Erosion Fishery Fund Fund Fund Improvement Improvement Center Improvement Improvement Improvement - - 5,741,620 1,626,493 207,844 - 6,000 - 125,375 50,000 120,000 60,000 1,632,493 207,844 125,375 50,000 120,000 60,000 5,741,620 125,375 318,261 269,149 212,633 154,138 5,741,620 121,844 1,151,157 176,498 1,151,157 176,498 125,375 318,261 269,149 212,633 154,138 5,741,620 121,844 481,336 31,346 (268,261) (269,149) (92,633) (94,138) (121,844) (94,138) (121,844) 481,336 31,346 (268,261) (269,149) (92,633) 31,661,170 4,037,975 300,406 269,149 92,633 138,000 121,467 $ 32,142,506 $ 4,069,321 $ $ 32,145 $ - $ - $ 43,862 $ $ (377) 37 City of Kenai Fiscal Year 2027 Operating Budget Combined Revenues, Appropriations Fund Balance/Net Assets All Funds Kenai Kenai Public Congregate Multipurpose Kenai City Municipal Safety Playground Housing Facility Library Hall Trail Roadway Improvement Improvement Improvement Improvement Improvement Improvement Construction Improvement REVENUES Taxes $ $ $ $ $ $ - $ $ Intergovernmental 50,000 Interest/investment Earnings - Charges for Service Rents & Leases Licenses & Permits Fines & Forfeitures Miscellaneous - - Transfers In 300,000 100,000 100,000 200,000 1,450,000 Total Revenues 300,000 100,000 100,000 250,000 1,450,000 EXPENDITURES/EXPENSES Salaries & Benefits - - - - - Supplies Services Debt Service Depreciation - - - - - Capital Outlay 410,282 100,000 358,363 167,665 81,296 541,418 36,600 2,820,694 Transfers Total Expenditures 410,282 100,000 358,363 167,665 81,296 541,418 36,600 2,820,694 Contributions to (from) Fund Balance/Net Assets (110,282) - (258,363) (167,665) (81,296) (291,418) (36,600) (1,370,694) Add Credit From Depreciation Projected lapse/encumbrances Adjusted Deficit/Surplus (110,282) (258,363) (167,665) (81,296) (291,418) (36,600) (1,370,694) Beginning Fund Balance/ Net Assets 258,363 167,665 81,296 36,600 Ending Fund Balance/ Unrestricted Net Assets $ (110,282) $ $ - $ $ - $ (291,418) $ $ (1,370,694) 38 City of Kenai Fiscal Year 2027 Operating Budget Combined Revenues, Appropriations Fund Balance/Net Assets All Funds Capital Project Funds Airport Municipal Operations Airport Snow Airport Airport Waste Water Facility Facility Removal Terminal Improvements Water & Sewer Treatment Total All Improvement Improvement Equipment Improvement Improvement Improvement Plant Funds $ $ $ $ $ $ - $ $ 16,197,923 2,000,000 1,400,000 10,913,633 - - 3,249,254 9,186,800 2,696,775 196,750 100,600 - - 426,792 380,100 610,000 100,000 6,979,397 2,380,100 2,010,000 100,000 49,947,924 18,607,438 2,052,276 10,228,450 125,375 140,446 47,870 774,965 62,500 176,030 4,018,983 4,352,820 1,153,140 22,106,271 7,146, 980 47,870 774,965 62,500 176,030 4,018,983 4,352,820 1,153,140 60,407,236 (47,870) (774,965) (62,500) (176,030) (1,638,883) (2,342,820) (1,053,140) (10,459,312) 140,446 1,427, 727 (47,870) (774,965) (62,500) (176,030) (1,638,883) (2,342,820) (1,053,140) (8,891,139) 47,870 62,500 176,030 4,018,983 75,766,682 $ - $ (774,965) $ - $ - $ 2,380,100 $ (2,342,820) $ (1,053,140) $ 66,875,543 39 City of Kenai Fiscal Year 2027 Operating Budget Combined Revenue and Appropriations All Fund Types FY2027 Adopted Budget General Special Enterprise Internal Permanent Debt Service Capital Project Total Fund Revenue Funds Service Funds Funds Fund Funds All Funds REVENUES Taxes 16,197,923 $ - $ - $ $ $ $ - $ 16,197,923 Intergovernmental 969,389 747,393 5,231 $ 9,191,620 10,913,633 InteresUlnvestment Earnings 750,000 425,000 30,000 $ 209,917 1,834,337 - 3,249,254 Charges for Service 1,569,280 5,134,248 - $ 2,483,272 - 9,186,800 Rents & Leases 243,041 1,234,421 488,444 $ 730,869 - - - 2,696,775 Licenses & Permits 196,750 - - $ - 196,750 Fines & Forfeitures 100,600 - $ - - 100,600 Miscellaneous 153,500 212,900 $ 54,392 6,000 426,792 Transfers In 2,032,398 1,351,524 $ 125,375 3,470,100 6,979,397 Total Revenues 22,212,881 9,105,486 523,675 $ 3,478,450 1,840,337 125,375 12,661,720 49,947,924 EXPENDITURES/EXPENSES Salaries & Benefits Supplies Services Debt Service Depreciation Capital Outlay Transfers Total Expenditures Contributions to (from) Fund Balance/Net Assets Add Credit From Depreciation Projected lapse/encumbrances Adjusted Deficit/Surplus Beginning Fund Balance/ Net Assets Ending Fund Balance/ Unrestricted Net Assets 15,382,618 3,117,558 107,262 $ - 18,607,438 1,134,914 892,206 15,156 $ 10,000 2,052,276 4,240,253 2,355,487 253,070 $ 3,379,640 10,228,450 - - - $ - 125,375 125,375 - - 140,446 $ - - - - 140,446 56,000 93,000 37,000 $ 21,920,271 22,106,271 2,757,125 2,920,300 141,900 $ 1,327,655 7,146,980 23,570,910 9,378,551 694,834 $ 3,389,640 1,327,655 125,375 21,920,271 60,407,236 (1,358,029) (273,065) (171,159) $ 88,810 512,682 (9,258,551) (10,459,312) - - 140,446 $ - - - - 140,446 1,040,689 387,038 - $ - - 1,427,727 (317,340) 113,973 (30,713) $ 88,810 512,682 (9,258,551) (8,891,139) 18,077,851 6,449,479 613,843 $ 9,155,402 35,699,145 9,258,551 79,254,271 17,760,511 $ 6,563,452 $ 583,130 $ 9,244,212 $ 36,211,827 $ - $ - $ 70,363,132 40 City of Kenai Fiscal Year 2027 Operating Budget Combined Revenue and Appropriations All Fund Types FY2026 Projected FY2025 Total Total $ 15,586,033 $ 15,037,376 4,736,091 1,359,354 3,103,106 5,340,515 9,491, 095 10,110,175 2,668,657 2,529,211 192,341 232,289 91,415 80,174 760,853 1,248,189 6,986,874 3,768,568 43,616,465 39,705,851 18, 059, 465 17, 042, 038 2,318,209 1,685,419 10,527,452 8,482,396 130,625 130,750 140,446 155,246 5,313,594 70,095 8,162,753 5,208,356 44,652,544 32,774,300 (1,036,079) 6,931,551 140,446 155,246 1,423,549 527,916 7,086,797 72,935,571 58,525,526 $ 79,254,271 $ 72,935,571 Capit 37% $49,947,924 Total Projected Government Revenues By Source - FY2027 $60,407,236 Total Estimated Government Expenditures By Object - FY2027 Transfers, 7,146,980 , 12 Depreciation, 140,446 , 0 % Debt service, 125,375 , 0 ' - ' - " " refits, 18,607,438 31% Supplies, 2,052,276 , 3% I Services, 10,228,450 , 17% 1 Cy City of Kenai Fiscal Year 2027 Operating Budget Summary of Major Funds and Non -Major Funds in the Aggregate Prior Year, Current Year, and Adopted Budget Major Funds Non -Major Funds - Aggregate Total All Funds FY2027 FY2027 FY2027 Adopted FY2026 FY2025 Adopted FY2026 FY2025 Adopted FY2026 Budget Projected Actual Budget Projected Actual Budget Projected REVENUES Taxes $ 16,197,923 $ 15,586,033 $ 15,037,376 $ - $ - $ - $ 16,197,923 $ 15,586,033 Intergovernmental 6,823,043 1,063,724 806,220 4,090,590 3,672,367 553,134 10,913,633 4,736,091 Interest/Investment Earnings 2,816,493 2,739,041 4,666,561 432,761 364,065 673,954 3,249,254 3,103,106 Charges for Service 6,086,378 5,579,079 6,331,872 3,100,422 3,912,016 3,778,303 9,186,800 9,491,095 Rents & Leases 1,957,406 1,933,000 1,908,342 739,369 735,657 620,869 2,696,775 2,668,657 Licenses & Permits 196,750 192,341 232,289 - - - 196,750 192,341 Fines & Forfeitures 100,600 91,415 80,174 - - - 100,600 91,415 Miscellaneous 230,600 573,690 1,025,588 196,192 187,163 222,601 426,792 760,853 Transfers In 3,132,172 4,851,213 3,420,351 3,847,225 2,135,661 348,217 6,979,397 6,986,874 Total Revenues 37,541,365 32,609,536 33,508,773 12,406,559 11,006,929 6,197,078 49,947,924 43,616,465 EXPENDITURES/EXPENSES Salaries & Benefits 17,793,910 17,257,128 16,317,346 813,528 802,337 724,692 18,607,438 18,059,465 Supplies 1,797,730 1,992,513 1,457,697 254,546 325,696 227,722 2,052,276 2,318,209 Services 6,579,714 6,713,004 5,172,159 3,648,736 3,814,448 3,310,237 10,228,450 10,527,452 Debt Service - - - 125,375 130,625 130,750 125,375 130,625 Depreciation 140,446 140,446 155,246 - - - 140,446 140,446 Capital Outlay 5,864,620 2,702,826 70,095 16,241,651 2,610,768 - 22,106,271 5,313,594 Transfers 6,626,582 7,659,408 4,701,772 520,398 503,345 506,584 7,146,980 8,162,753 Total Expenditures 38,803,002 36,465,325 27,874,315 21,604,234 8,187,219 4,899,985 60,407,236 44,652,544 Contributions to (from) Fund Balance/Net Assets (1,261,637) (3,855,789) 5,634,458 (9,197,675) 2,819,710 1,297,093 (10,459,312) (1,036,079) Add Credit From Depreciation 140,446 140,446 155,246 - - - 140,446 140,446 Projected lapse/encumbrances 1,315,164 1,292,750 77,895 130,799 1,393,059 1,423,549 Adjusted Deficit/Surplus 193,973 (2,422,593) 5,789,704 (9,119,780) 2,950,509 1,297,093 (8,925,807) 527,916 Beginning Fund Balance/ Net Assets 56,499,823 50,704,227 48,212,292 19,266,859 22,231,344 10,313,234 75,766,682 72,935,571 Ending Fund Balance/ Unrestricted Net Assets $ 56,693,796 $ 48,281,634 $ 54,001,996 $ 10,147,079 $ 25,181,853 $ 11,610,327 $ 66,840,875 $ 73,463,487 Cy: FY2025 Actual $ 15,037,376 1,359,354 5,340,515 10,110,175 2,529,211 232,289 80,174 1,248,189 3,768,568 39, 705, 851 17,042,038 1,685,419 8,482,396 130,750 155,246 70,095 5,208,356 32,774,300 6,931,551 155,246 7,086,797 58,525,526 $ 65,612,323 Kenai Municipal Airport $2,603,094 4.31 Water &Sewer Utility $2,763,660 4.58 City of Kenai Fiscal Year 2027 Operating Budget Summary of Major Funds and Non -Major Funds in the Aggregate Prior Year, Current Year, and Adopted Budget $60,407,236 Total Government Estimated Expenditures FY2027 - By Function Personal Use Fishery $427,455 Senior Housing 0 71 % $566,963 0.94 Public Safety $11,218,519 18.57% General Government $6,332,067 10.48% 43 This section summarizes City operating revenues from FY2025 through forecasted amounts that will support the FY2027 Budget. As you will see, the City has many revenue sources, some much larger than others. Total Projected Government Revenues By Source — FY2027 $49,947,924 Total Projected Government Revenues By Source - FY2027 44 TAXES A. Property Taxes Authority: • KMC 7.05 Taxation of Real and Personal Property • AS 43.56 Oil and Gas Exploration, Production, and Pipeline Transportation Property Taxes Description: All real and personal property not expressly exempted by law shall be subject to annual taxation at its full and true value based upon the actual value of the property assessed. This does not apply to property subject to a flat tax and/or exempted from the ad valorem tax. The rate of levy of tax, a mill rate, shall be fixed annually by resolution of the City Council, but the aggregate thereof does not exceed three percent (3%) of the assessed value of the property assessed. One mill of taxation generates $100 of tax per $100,000 of assessed value. Assessment and collection of these taxes is provided by the Kenai Peninsula Borough as required by AS 29.35.170(b). In addition to real and personal property taxes, the City may levy a tax on the full and true value of real and personal property defined under AS 43.56. The rate of levy may be at a rate no higher than the rate applicable to other property taxed by the City. The State of Alaska provides an assessment for all property taxed under AS 43.56. Certified Assessment Rolls FY2026 FY2027 FY2024 FY2025 Estimated Projected Taxable: (Values expressed in thousands) Real Property $909,614 $941,391 $1,005,994 $1,026,114 AS 43.56 Property 47,805 42,981 51,549 48,972 Personal Property 49,550 41,378 43,956 44,835 Total Taxable Assessed Value $1,006,969 $1,025,750 $1,101,499 $1,119,921 Rate of Taxation 4.35 4.35 4.35 4.35 Total Ad Valorem Property Tax 4,379,128 4,462,013 4,791,521 4,871,656 Motor Vehicle Property Tax 67,809 69,197 75,000 75,000 Total Revenue $4.4 66,937 $4.531,210 $4,866,521 $4.9 66,656 45 1,150,000,000 1,100,000,000 1,050,000,000 1,000,000,000 950,000,000 900,000,000 850,000,000 800,000,000 750,000,000 700,000,000 FY 2024 Actual FY2025 Actual FY2026 Projected FY2027 Estimated ■ Real Property ■ Personal Property ■ AS 43.56 Property Projection Method and Comments: FY2026 estimates are based on certified main roll taxable values as of June 1, 2025, as provided by the Kenai Peninsula Borough's assessing department. FY2027 preliminary tax rolls as provided by the Kenai Peninsula Borough's assessing department. Real taxable assessed values are projected to increase at a rate of two percent (2%) annually. Personal taxable assessed values are projected to increase at a rate of 2 percent (2%), and oil & gas taxable assessed values are projected to increase at a rate of 20 percent (20%). There is no projected change in the rate of taxation. B. Sales Tax Authority: • KMC 7.10 Sales Tax. • KPBC 5.18 Sales Tax. Description: The City levies a consumer's sales tax of three percent (3%) on all retail sales, rents, and services made or rendered within the City limits, measured by the gross sales price of the seller. Apart from a seasonal tax exemption on non -prepared food, the City adopts the Kenai Peninsula Borough code for the taxation and collection of sales tax. In addition to the City's sales tax levy, the Kenai Peninsula Borough levies an additional three percent (3%) sales tax. Collection of sales taxes is provided by the Kenai Peninsula Borough as required by AS 29.35.170(b). 46 Taxable sales by category for FY2025, the most recent data available, are: Cateciory Retail Trade Restaurant/Bar Utilities Services Hotel/Motel/Bed and Breakfast Rental Residential Property Public Administration Professional, Scientific, Technical Services Wholesale Trade Information Telecommunications Rental Personal Property Arts and Entertainment Rental Non -Residential Property Administrative & Waste Management Manufacturing Educational Services Construction Contracting Rental Self -Storage and Mini -Storage Guiding Transportation and Warehousing Mining/Quarrying Rental Commercial Property Finance and Insurance Agriculture, Forestry, Fishing & Hunting Health Care and Social Assistance Total Actual FY2024 Taxable Sales $314,604,437 Sales Tax Rate 3.00% Gross Sales Tax Revenue 9,438,133 Credit for Prompt Remittance (151,010) Sales Tax on Internet Sales 698,557 Net Sales Tax Revenue $9.9 55,680 % Change from Prior Year 1.59% Amount % $242,406,095 75.57% 20,595,170 6.42% 11,178,788 3.48% 6,139,678 1.91 % 6,120,786 1.91 % 5,263,892 1.64% 4,202,300 1.31 % 4,067,544 1.27% 2,808,682 0.88% 2,324,477 0.72% 1,995,881 0.62% 1,941,292 0.61 % 1,732,078 0.54% 1,713,639 0.53% 1,504,559 0.47% 1,268,042 0.40% 1,188,011 0.37% 1,144,975 0.36% 1,102,153 0.34% 518,735 0.16% 501,887 0.16% 435,203 0.14% 405,076 0.13% 193,059 0.06% 26,621 0.01 % 10.199 0.00% 320,788,822 100% Actual FY2026 FY2027 FY2025 Estimated Projected $320,788,822 3.00% 9,623,665 (153,979) 796.788 $ 10,2 44,460 2.81 % $332,731,238 3.00% 9,981,937 (159,711) 950,000 $10,772,226 3.7% $345,440,037 3.00% 10,363,201 (165,811) 1,000,000 $11,1 77,390 3.9% Projection Method and Comments: Sales tax revenue projections are based on an estimated 2.25% growth for FY2026. 2.75% for FY2027 and 2.0% for FY2028 and beyond. 47 INTERGOVERNMENTAL A. Public Employees Retirement System (PERS) On -behalf Contributions Authority: • AS 39.35.255 Description: Alaska Statute 39.35.255 requires the State of Alaska to contribute to the PERS Plan an amount such that, when combined with the employer contribution, is sufficient to pay the Plan's past service liability contribution rate as adopted by the Alaska Retirement Management Board (ARMB). As such, the Plan is considered to be in a special funding situation as defined by GASB. FY2026 FY2027 FY2024 FY2025 Estimated Protected ARMB Required Contribution Rate 24.79% 26.76% 28.33% 29.84% City Required Contribution Rate 22.00% 22.00% 22.00% 22.00% State of Alaska On -behalf Rate 2.79% 4.76% 6.33% 7.09% On -behalf Revenue Received $247,864 $426,759 $648,408 $856,941 Projection Method and Comments: PERS on -behalf funding is estimated by applying the ARMB adopted rate to the estimated covered payroll for the applicable period. Future increases are expected due to the adoption of actuarial changes that increase the system's overall pension and other post -employment benefit liability. B. State of Alaska Community Assistance Authority: • AS 29.60.850 Description: The State of Alaska provides municipalities, reserves, and communities with funds to be used for any public purpose. Total Revenue FY2024 $172,001 FY2025 $166,905 FY2026 Estimated $105,939 FY2027 Projected $139,899 Projection Method and Comments: The volatility of Community Assistance payments has been caused by the deteriorating financial condition of the State of Alaska. The current projection is based on information provided by the State. C. State of Alaska Fisheries Business & Resource Landing Taxes Authority: • AS 43.75.130 • AS 43.77.060 48 Description: The State of Alaska provides to municipalities fifty percent (50%) of taxes collected where fishery products are processed and fifty percent (50%) of taxes collected on floating fisheries where fishery products are landed. Taxes are based on the size and value of the catch. FY2026 FY2027 FY2024 FY2025 Estimated Projected Shared Fisheries Business Tax $464 $613 $613 $700 Projection Method and Comments: The shared tax amounts are subject to appropriation by the State of Alaska, but are based on the overall value of catch determined by size and price. Cook Inlet fish harvest has been lower in recent years, while prices have remained relatively constant. D. Federal Nutrition, Transportation & Support Grant Authority: • Older Americans Act Description: The Kenai Senior Center receives a federal grant, passed through the State of Alaska, to provide meals (in group settings and in private homes), nutrition and health education, transportation services that enable seniors to maintain mobility and independence, and other services. FY2026 FY2027 FY2024 FY2025 Estimated Projected Total Revenue $270,776 $217,302 $309,707 $309,707 Projection Method and Comments: The State of Alaska Department of Health and Human Services provides estimates of the City grant amounts. E. Kenai Peninsula Borough Senior Citizen Funding Authority: • Kenai Peninsula Borough Budget Description: The Kenai Senior Center receives funding from the Kenai Peninsula Borough to provide senior services to seniors within the City's geographic service area. The City's geographic service area for seniors extends outside the City's limits. Total Revenue FY2024 $186,143 FY2025 $186,143 FY2026 Estimated $186,146 FY2027 Projected $185,846 Projection Method and Comments: The Kenai Peninsula Borough allocates funds for senior citizen programs in the annual operating budget. The total amount of funding is divided among all senior centers in the 49 Borough based on the senior population each serves. The population is based on the 2010 U.S. Census. Future changes will be driven by the results of the 2020 U.S. Census once the information is available. F. Choice Waiver Program Authority: • State of Alaska Department of Health and Social Services — Senior and Disabilities Services. Description: Waiver programs offer individuals who meet institutional -level care criteria the opportunity to receive care in the home or community rather than in an institution. In order to access one of these waiver programs, a person must meet 1) Medicaid eligibility requirements for income and resource limits, as found through an interview and application process with the State of Alaska Division of Public Assistance (DPA), and 2) level of care requirements, as assessed and determined by the Senior and Disability Services Intake and Assessment Unit. Total Revenue FY2024 $103,428 FY2025 $106,395 FY2026 Estimated $106,000 FY2027 Projected $106,000 Projection Method and Comments: Revenue projections are based upon estimated meal counts the Center expects to serve to eligible clients. The Center has seen a significant decrease in the number of eligible clients, and revenues are trending down. INTEREST/INVESTMENT EARNINGS A. Investment of all funds except Permanent Funds Authority: • KMC 7.22 Investment of Monies Description: The City's non -Permanent Fund investments shall be managed so that the portfolio, as a whole, meets the following objectives: 1. Safety of principal; 2. Maintaining sufficient liquidity to meet the City's cash flow requirements; and 3. Achieving a reasonable market -average rate of return. Authorized investments of the portfolio include: 1. Obligations of the U.S. government, its agencies, and instrumentalities. 2. Insured or collateralized certificates of deposit, savings accounts, and other deposits with banks and savings and loan associations. 3. Repurchase agreements that are documented by a written agreement and are fully collateralized by delivery of obligations of the U.S. government to an independent third - party custodian. 4. Money market mutual funds whose dollar -weighted average portfolio maturities are not greater than one hundred twenty (120) days, and whose portfolios consist primarily of 50 obligations of the U.S. government, its agencies and instrumentalities, and of repurchase agreements collateralized with such U.S. government, agency, or instrumentality obligations. 5. A State investment pool, should one become available. Projection Method and Comments: The long-term estimated return for City Investments, excluding Permanent Funds, remains at approximately 3.0%. The Federal Reserve began reducing the federal funds rate in September 2024 as inflation began to moderate. While additional rate adjustments remain possible, the pace and timing of future changes are uncertain and will depend on ongoing economic conditions. Current projections reflect recent market adjustments and assume a gradual stabilization of interest rates over the long term, with returns trending toward the 3.0% range. B. Investment of Permanent Funds Authority: KMC 7.30 Land Sale Permanent Funds • Resolution 2019-27 Description: The City's Permanent Fund investments shall be managed as institutional endowments, seeking higher rates of return than other City investments due to the funds' perpetual investment horizon. The FY2027 authorized investment allocation for the investment of the City's Permanent Funds is: ASSET CLASS TARGET % WEIGHTING RANGE % Cash 3 0-10 Fixed Income: Investment Grade Domestic Bonds 26 16-36 High Yield Domestic Bonds 4 0-8 Domestic Equity: Large -Cap Domestic Equity 22 12-32 Mid -Cap Equities 10 0-18 Small -Cap Equities 5 0-10 International Emerging Markets 5 0-10 International Equity 8 4-16 Real-estate equities 2 0-4 Infrastructure equities 5 0-10 Alternative Beta 10 0-15 The investment performance shall be measured as follows: Performance measurement of the Cash allocation will be measured against the Target weighting, using the Citi Group 90 Day T-Bill Index as the benchmark. 51 Performance measurement of the Investment Grade Domestic Bond allocation will be measured against the Target weighting, using the Bloomberg Barclays U.S. Aggregate Bond Index for the benchmark. Performance measurement of the High Yield Domestic Bond allocation will be measured against the Target weighting, using the Bloomberg Barclays U.S. Corporate High Yield Very Liquid Bond index for the benchmark. Performance measurement of the Large -Cap Domestic Equity allocation will be measured against the Target weighting, using the Standard & Poor's 500 Index for the benchmark. Performance measurement of the Mid -Cap Equity allocation will be measured against the Target weighting, using the Standard & Poor's 400 Mid -Cap Index as the benchmark. Performance measurement of the Small -Cap Equity allocation will be measured against the Target weighting, using the Standard & Poor's 600 Small -Cap Index as the benchmark. Performance measurement of the International Emerging Markets allocation will be measured against the Target weighting, using the Morgan Stanley Capital International Emerging Markets index as the benchmark. Performance measurement of the International Equity allocation will be measured against the Target weighting, using the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) index for the benchmark. Performance measurement of the Real -Estate Equities allocation will be measured against the target weighting, using the Standard & Poor's US REIT Index as the benchmark. Performance measurement of the Infrastructure Equities allocation will be measured against the target weighting, using the STOXX Global Broad Infrastructure Index as the benchmark. Performance measurement of the Alternative Beta allocation will be measured against the target weighting, using the Wilshire Liquid Alternatives Index as the benchmark. Projection Method and Comments: The City's Permanent Fund investment manager's projections for the City's Permanent Fund are for annual returns to be between (11.7%) and 29.2%, with a 7.45% average annualized rate of return since inception. CHARGES FOR SERVICE A. Ambulance Fees Authority: • City of Kenai Fee Schedule • Resolution 2019-34 Description: The City bills patients for treatment by fire personnel and transport by City ambulance. Services include treatment without transport; emergent and non -emergent basic life support (BLS); advanced life support (ALS) categories I & II; and mileage -based transportation. Historical rates and revenue generated are as follows: 52 FY2026 FY2027 FY2024 FY2025 Estimated Projected Emergent BLS $675.00 $675.00 $675.00 $675.00 Non -emergent BLS 550.00 550.00 550.00 550.00 ALS I 800.00 800.00 800.00 800.00 ALS 11 975.00 975.00 975.00 1,034.00 Rate per mile 14.00 14.00 14.00 14.20 Total Revenue $943,944 $1,561,181 $1,007,429 $1,250,000 Protection Method and Comments: Revenue projections are based on FY2025 actual call volumes by type. Gross revenues are reduced by required billing adjustments for allowable Medicare/Medicaid rates and the application of the City's Charity Care Policy. The Supplemental Emergency Medical Transport (SEMT) program was established with CFR 42/443.51 established on November 30, 2010, passed by State House Bill 176 (2018), State Plan Amendment (SPA) signed on August 31, 2019, and State regulations approved on October 9, 2021, with payments retroactive to the date the SPA was signed. This program provided the City with additional Medicaid reimbursement in FY2024 for the FY2022 reporting period of $436,329; in FY2025 for the FY2023 reporting period of $525,672; and for the FY2024 reporting period of $454,983. B. Animal Control Fees Authority: • KMC Title 3, Animal Control Description: The Chief Animal Control Officer recommends, and the City Council adopts, fees associated with the adoption of animals from the City's Animal Control Shelter. All cats and dogs adopted from the City are spayed or neutered prior to adoption in an effort to reduce the number of unwanted animals in the City. Veterinary services Veterinary services transport per mile Insertion of microchip Animal adoption fee Total Revenue FY2026 FY2027 FY2024 FY2025 Estimated Projected ----------------------------------Actual Cost $2.04 10.20 20.40 $28,602 $2.04 10.20 20.40 $43,524 $2.04 15.30 20.40 $37,419 $2.04 15.30 20.40 $38,000 Projection Method and Comments: Revenue projections are based on historical animal counts and adoptions. Veterinary service costs are increasing slowly, and the total number of animals adopted is remaining constant after years of decline. 53 C. Multipurpose Fees Authority: • City of Kenai Fee Schedule • Resolution 2016-19 Description: The City operates a multipurpose facility and charges a per -hour fee for exclusive use of the ice rink from October 15t" to March 15t" of each year. FY2026 FY2027 FY2024 FY2025 Estimated Projected Hourly rate $165.00 $165.00 Estimated annual hours of use 835.00 858.00 Total Revenue $137,816 $141,643 Projection Method and Comments: Revenue projections are based on historical ice usage. D. Water & Sewer Fees Authority: • KMC Title 17, Public Utilities and Enterprises • KMC Appendices, Public Utility Regulations and Rates • City of Kenai Fee Schedule • Resolution 2019-34 $165.00 7ti7 nn $125,000 $175.00 Rnn nn $140,000 Description: The City provides potable water, wastewater handling, and wastewater treatment in compliance with all state and federal regulations. The City strives to operate the utility economically to provide reliable service to Kenai residents. Basic water and sewer rates for flat -rate and metered accounts will increase by 4.0% in FY2027, as shown below: FY2026 FY2027 Water Rates: Residential flat rate per month $42.48 $44.18 General Use — Metered per 1,000 gallons $4.10 $4.26 Sewer Rates: Residential flat rate per month $60.74 $63.17 General Use — Metered per 1,000 gallons $6.02 $6.26 Combined Water & Sewer Rates: Residential flat rate per month $103.22 $107.35 General Use — Metered per 1,000 gallons $ 10.12 $ 10.52 54 Residential General Use Total Revenue FY2024 $2,401,511 862,330 $3.2 33,841 FY2025 $2,506,682 929,685 $3.4 66,367 FY2026 Estimated $2,520,954 847,911 $3.3 88,865 FY2027 Projected $2,609,452 983,727 $3.5 33,179 Protection Method and Comments: The City has reviewed expenditures and has seen increases over the past several years due to inflationary pressures impacting the cost of chemicals, parts, electricity, and natural gas required to operate City utilities. While rates remained unchanged in FY2025, these cost increases have continued. In addition, the City had been receiving and treating Ieachate at the wastewater treatment facility, which increased operating costs but also generated approximately $340,000 or more in annual revenue for the utility. That revenue source has since ceased due to a change in disposal method. The proposed FY2027 4% increase reflects these cumulative cost pressures and the loss of offsetting revenue, and is necessary to maintain the financial stability of the utility fund. E. Vehicle Parking Fees Authority: • KMC Appendices, Airport Regulations Chapter 14.05, Landing Fees • City of Kenai Fee Schedule • Resolution 2018-28 Description: The City charges a daily fee for parking in the Kenai Municipal Airport's short- and long-term parking lots. FY2026 FY2024 FY2025 Estimated Parking rate per day $8.00 $8.00 $8.00 Total Revenue $243,199 $303,543 $270,488 Projection Method and Comments: Revenue projections are based on historical parking usage. F. Aircraft Landing Fees Authority: • KMC Appendices, Airport Regulations Chapter 14.05, Landing Fees • City of Kenai Fee Schedule Resolution 2018-28 FY2027 Projected E $265,000 55 Description: The City charges landing fees at the Kenai Municipal Airport based upon the certified gross takeoff weight of commercial aircraft. Signatory operators at the airport pay thirty percent (30%) less per pound than non -signatory operators. Fvgn9a Landing Fees (per 1,000 pounds) Signatory $1.88 Non -signatory 2.44 Total Revenue $407,678 FY2026 FY2027 FY2025 Estimated Projected $1.97 $2.07 $2.07 2.56 2.69 2.69 $382,293 $346,897 $355,000 Projection Method and Comments: Revenues are projected based on historical certified activity reports provided by commercial operators and future aviation forecasts. G. Employee Health Care Fees Authority: • Employee Health Care Fund Description: The City began utilizing an internal service fund in FY2018 to account for the costs of providing employee health and life insurance. Each fund and department is charged based on the number of eligible FTEs. Beginning in FY2027, the allocation methodology was updated from a per -position basis (full-time and part-time) to an allocation based on eligible FTEs to better align costs with actual benefit participation. Employees contribute monthly toward coverage, paying 15% of the premium cost for the coverage they elect. The City contributes a reduced share toward premiums for part-time employees. Actual Projected Proposed FY2025 FY2026 FY2027 Revenues Charge for Services $2,832,897 $2,902,000 $2,144,441 Employee Premiums 348,433 3381,546 338,831 Interest Earnings 136,742 108,361 460,755 Total Revenue $3.3 00,757 $3.391,907 $2.944,027 56 Employer cost per position: Full-time Part-time Employee monthly premiums: $3,000/$6,000 Deductible Plan Employee only Employee with child(ren) Employee with spouse Employee with family Part-time employee only Part-time employee w/Children Part-time employee w/Spouse Part-time employee w/Family FY2025 FY2026 FY2027 Difference % Change $ 26,722 $ 20,042 $ 21,245 $ 1,203 6.00% 13,361 10,021 10,622 601 6.00% Projected* Employee Jan 1 -Dec 31 Jan 1 - Dec 31 Jan 1 -Dec 31 Increase Monthly 2025 2026 2027 2027 %Increase $ 176.00 $ 161.13 $ 167.58 $ 6.45 4.00% 323.00 298.09 310.01 11.92 4.00% 355.00 331.93 345.21 13.28 4.00% 487.00 468.88 487.64 18.76 4.00% 766.00 700.00 728.00 28.00 4.00% 1,894.00 1,295.00 1,346.80 51.80 4.00% 2,144.00 1,442.00 1,499.68 57.68 4.00% 3,156.00 2,037.00 2,118.48 81.48 4.00% * Assumes a 4% premium increase for health insurance and a 4% increase for dental and an employee cost share of 15% of premiums. Employee monthly premiums: $4,000/$8,000 QHDHP with HSA Employee only $ 168.00 $ 145.85 $ 151.68 $ 6.07 4.00% Employee with child(ren) 304.00 269.83 280.62 11.22 4.00% Employee with spouse 335.00 300.45 312.47 12.50 4.00% Employee with family 462.00 424.43 441.41 17.66 4.00% Part-time employee only 730.00 633.00 658.32 26.33 4.00% Part-time employeew/Children 1,818.00 1,305.00 1,357.20 54.29 4.00% Part-time employeew/Spouse 2,062.00 1,172.00 1,218.88 48.76 4.00% Part-time employeew/Family 3,024.00 1,844.00 1,917.76 76.71 4.00% Projection Method and Comments: The FY2027 health insurance projected costs include an average increase of 4.0%. The Employee cost share is15% of premiums, and the City pays the remaining 85%. RENTS & LEASES A. Land Leases Authority: • KMC Title 21, City Airport and Airport Lands. • KMC Title 22, General Fund Lands. Description: The City leases land it holds title to, thereby providing operational revenue to the City's General and Airport Funds. Lands deeded to the City by the Federal Aviation Administration have a deed restriction limiting the use of any revenue derived from its sale or lease for the betterment of the Kenai Municipal Airport. Revenue General Fund Land Leases Airport Fund Land Leases Total Revenue FY2026 FY2027 FY2024 FY2025 Estimated Projected $143,282 $139,964 $143,933 $183,141 550,127 493,781 684,462 695,271 $693,409 $633,745 $828,395 $878,412 57 Protection Method and Comments: Land lease amounts are based on a percentage, six percent (6%) to eight percent (8%) of the land's appraised fair market value annually. Most land under lease is appraised in years ending in five (5) and zero (0) with adjustments in non -appraisal years based on the Consumer Price Index for all Urban Consumers, Anchorage, Alaska. Revenue estimates are based on land currently under lease with no allowance for new leases. B. Terminal Rents Authority: • Kenai Municipal Airport Airline Operating Agreement • City of Kenai Fee Schedule Concessionaire agreements Description: The City leases space in the Kenai Municipal Airport to airlines, car rental agencies, and food/bar concessionaires who operate in the Airport terminal building. Revenue Airline Rents Concessionaire & Other Rents Total Revenue FY2024 $280,516 137,205 $417,722 FY2026 FY2027 FY2025 Estimated Projected $325,689 $352,759 $341,990 110,662 292,052 288,101 $433,350 $644,810 $630,091 Projection Method and Comments: Terminal rent is negotiated in the Airport's Airline Operating Agreement. The current agreement is in effect through FY2025. The Airport's Airline Operating Agreement contains a 5% increase in rates for each year of the agreement and a two -percentage point reduction in the terminal rent subsidy for years 2 through 5 of the new agreement. Terminal rental rates will be applied to tenant -occupied square footage. Concessionaire agreements are negotiated with multiple vendors and typically last 5 years. Revenue estimates are based upon current space occupancy. C. Equipment Replacement Fund Authority: • KMC 7.25.100 Equipment Replacement Fund Description: The City operates an internal service fund to account for the purchase of equipment for General Fund departments costing more than $50,000. Utilizing departments are billed annually to accumulate sufficient funds to replace equipment at the end of its useful life. 58 FY2026 FY2027 FY2024 FY2025 Estimated Projected Fire Department $169,066 $163,276 $245,611 $258,072 Non -Departmental 44,907 41,290 47,532 47,532 Street Department 197,639 173,012 255,879 244,412 Parks, Recreation & Beautification 5,120 4,163 5,931 5,931 Total $416,732 $$381,741 $554,953 $555,947 Projection Method and Comments: Rents are based on the estimated replacement cost of each piece of equipment. Assuming a three percent (3%) rate of return on fund equity net of that invested in capital assets, payments are calculated to accumulate the estimated replacement cost of the asset at the end of its useful life. Equipment costs are projected to increase at a rate of three percent (3%) annually. Because the assumed rate of return and the assumed rate of cost escalation are both three percent (3%), there is no charge to a department in years beyond the equipment's original scheduled replacement. D. Fleet Replacement Fund Authority: • KMC 7.25.105 Fleet Replacement Fund Description: In FY2021, the City began operating an internal service fund to account for vehicle purchases for the General and Senior Citizen Fund departments. Utilizing departments will be billed annually to accumulate sufficient funds to replace equipment at the end of its useful life. FY2026 FY2027 FY2024 FY2025 Estimated Projected Police Department $87,223 $83,164 $90,099 $89,610 Parks, Recreation & Beautification 20,210 20,210 20,367 20,367 Fire Department 11,769 12,622 13,760 13,560 Street Department 8,909 8,909 11,790 13,148 Shop Department 7,440 7,440 7,440 7,440 Animal Control 5,308 5,308 8,155 8,155 Senior Citizen Fund Departments 10,873 10,873 13,823 15,871 Building Department 5,464 5,464 6,770 6,770 Total $157,196 $153,990 $172,204 $174,921 Projection Method and Comments: Rents are based on the estimated replacement cost of each vehicle. Assuming a three percent (3%) rate of return on fund equity net of that invested in capital assets, payments are calculated to accumulate the estimated replacement cost of the asset at the end of its useful life. Vehicle costs are projected to increase at a rate of three percent (3%) annually. Because the assumed rate of return and assumed rate of cost escalation are both three percent (3%), there is no charge to a department in years beyond the equipment's original scheduled replacement. 59 E. Congregate Housing Rents Authority: • City of Kenai Fee Schedule Description: The City Vintage Pointe Manor operates a forty (40) unit independent living, senior housing complex. The facility charges monthly rents commensurate with those of unsubsidized private facilities in the community. Rents: FY2024 $486,345 FY2026 FY2027 FY2025 Estimated Projected $508,310 $504,116 $488,444 Projection Method and Comments: In years ending in five (5) and zero (0), the City commissions a rental rate study to determine the unsubsidized market rate for comparable unassisted senior housing. For years in which no study is conducted, the prior year's market rates are adjusted by the change in the Anchorage Alaska Consumer Price Index for all Urban Consumers. Existing tenants will see no more than a $ 50.00-per-month increase in rent this year to reach the market rate. Vacancy is assumed to be seven and one-half percent (7.5%) as the facility has a lengthy wait list for prospective tenants. LICENSES & PERMITS A. Building Permits Authority: • KMC 4.05 Building Code Description: The City assesses a fee for the issuance of a permit to construct or alter structures within the City. The City has adopted the "International Building Code," 2009 Edition. The City further uses the Building Valuation Data Table in the latest edition of the Building Safety Journal, published by the International Code Council, to determine the value of construction and improvements. Fee Schedule Commercial Residential Valuation $1.00 - $500.00 $23.50 $17.63 Valuation $501.00 - $2,000.00 - Base $23.50 $17.63 Valuation $501.00 - $2,000.00 Each additional $100.00, or fraction thereof, over $500.00, including $2,000.00 $3.05 $2.29 Valuation $2,001.00 - $25,000.00 - Base $69.25 $51.94 Valuation $2,001.00 - $25,000.00 Each additional $1,000.00, or fraction thereof, over $2,000.00 including $25,000.00 $14.00 $10.50 Valuation $25,001.00 - $50,000.00 - Base $391.25 $293.44 60 Valuation $25,001.00 - $50,000.00 Each additional $1,000.00, or fraction thereof, over $25,000.00 including $50,000.00 $10.10 $7.58 Valuation $50,001.00 - $100,000.00 - Base $643.75 $482.81 Valuation $50,001.00 - $100,000.00 Each additional $1,000.00, or fraction thereof, over $50,000.00 including $100,000.00 $7.00 $5.25 Valuation $100,001.00 - $500,000.00 - Base $993.75 $745.31 Valuation $100,001.00 - $500,000.00 Each additional $1,000.00, or fraction thereof, over $100,000.00 including $500,000.00 $5.60 $4.20 Valuation $500,001.00 - $1,000,000.00 - Base $3,233.75 $2,425.31 Valuation $500,001.00 - $1,000,000.00 Each additional $1,000.00, or fraction thereof, over $500,000.00 including $1,000,000.00 $4.75 $3.56 Valuation $1,000,001.00 and up - Base $5,608.75 $4,206.56 Valuation $1,000,001.00 - and up Each additional $1,000.00, or fraction thereof, over $1,000,000.00 $3.65 $2.74 Inspection outside of normal business hours per hour (two-hour minimum charge) $47.00 $47.00 Inspection for which no fee is specifically indicated per hour (two-hour minimum charge) $47.00 $47.00 Additional plan review required by changes, additions, or revisions to plans per hour (one -hour minimum charge) $47.00 $47.00 Total Revenue $155,624 $203,699 FY2026 $175,000 FY2027 Projected $175,000 Projection Method and Comments: Revenue projections are based on historical construction values adjusted for any known large projects. B. Animal Licenses Authority: • KMC Title 3, Animal Control Description: A person who owns a dog over the age of three (3) months, other than in the operation of a kennel facility, must obtain a dog license for that dog. FY2027 FY2024 FY2025 FY2026 Projected Dog License — Sterilized Dog $10.20 $10.20 $10.20 $10.20 Dog License — Non -sterilized Dog 30.60 30.60 30.60 30.60 Total revenue $7,172 $8,817 $7,023 $8,000 61 Projection Method and Comments: Revenue projections are based on no change in the fee amount and a relatively stable animal population. TRANSFERSIN A. Administrative Service Transfers Authority: Administrative Service Charge Policy Description: The City uses the modified direct expenditure method to allocate the administrative costs of operating the City across all of the City's funds. The historical allocation percentage applied to modified direct expenditures and the total General Fund recovery via transfers is as follows: Cost Allocation % Total cost recovery FY2024 FY2025 15.15% 13.02% $1,797,900 $1,834,200 FY2027 FY2026 Projected 11.72% 11.00% $1,834,200 $1,780,900 Projection Method and Comments: The modified direct expenditure method allocates the identified indirect cost pool to funds based on their budgeted expenditures, with modifications to eliminate significant specific items that would disproportionately impact the allocations, such as depreciation, State of Alaska Public Employee Retirement System grant expenditures, and large capital purchases. B. Other Transfers Authority: N/A Description: Transfers are financial inflows from other funds. An example of a routine transfer is money transferred from the General Fund to the Debt Service Fund for the annual debt service on the City's outstanding Library Expansion Bonds. Projection Method and Comments: • N/A 62 City of Kenai Fiscal Year 2027 Operating Budget General Fund Central Administration Cost Allocation FY 2026 FY 2027 Difference Percent Utilities $ 296,200 307,500 $ 11,300 3.81% Airport - Airfield 1,059,900 1,041,000 (18,900) (1.78%) Airport - Administration Including Land 72,500 73,600 1,100 1.52% Airport - Terminal 61,600 64,200 2,600 4.22% Senior - Access 44,354 42,958 (1,396) (3.15%) Senior - Cong Meals 29,334 25,768 (3,566) (12.16%) Senior - Home Meals 59,459 57,794 (1,665) (2.80%) Senior - Transportation 27,215 31,941 4,726 17.37% Senior - Choice Waiver 7,838 9,739 1,901 24.25% Dipnet - Public Safety 72,400 71,500 (900) (1.24%) Dipnet - Streets 2,600 2,400 (200) (7.69%) Dipnet - PR&B 21,900 23,400 1,500 6.85% Dipnet - Dock 4,200 3,400 (800) (19.05%) Congregate Housing 41,200 41,900 700 1.70% Total $ 1,800,700 $ 1,797,100 $ (3,600) (0.20%) 63 This page intentionally left blank 64 GENERAL FUND The General Fund is established to account for the revenues and expenditures necessary to carry out basic governmental activities of the City such as police and fire protection, recreation, planning, legal services, administrative services, etc. Appropriations are made from the fund annually. The fund will continue to exist indefinitely. Revenue, for this and other funds, is recorded by source, i.e., taxes, licenses, service charges, etc. Expenditures are recorded first by function, then by activity and object of the expenditure. General Fund expenditures are made primarily for current day-to-day operating expenses and operating equipment. Capital expenditures for large-scale public improvements, such as buildings, water and sewer projects or streets, are accounted for elsewhere in the Capital Projects Funds or Enterprise Funds. Licenses & Permits, Fines & Forfeitures, $22 212 881 $196,750 , 1 % $100,600 , 1 % Miscellaneous, $153,500, 1% Rents Leases, \\ $243,041 , 1 Charges for Service, $1,569,280 , 7% Interest/investment Earnings, $750,000, 3% Intergovernmental, $969,389 , 4% $23,570,910 Transfers $2,757,125 11.70% Parks, Recreation & Transfers In, $2,032,398 , 9% Taxes, $16,197,923 , 73% Public Safety $10,037,329 42.58% General Government $5,146,864 21.84% 65 City of Kenai Fiscal Year 2027 Operating Budget General Fund Budget Projection Original Actual Budget Projection Proposed Projection Projection Projection FY2025 FY2026 FY2026 FY2027 FY2028 FY2029 FY2030 TAXABLE VALUES (000-S) $ 1,025,750 $ 961,718 $ 1,101,500 $ 1,145,328 $ 1,165,369 $ 1,185,954 $ 1,207,088 MILL RATE 4.35 4.35 4.35 4.35 4.35 4.35 4.35 REVENUES Property & Sales Taxes Property Tax 4,540,042 4,679,839 4,813,807 5,000,533 5,117,968 5,205,722 5,295,816 Sales Tax 10,497,334 10,457,201 10,772,226 11,197,390 11,421,338 11,649,765 11,882,760 Total Property & Sales Taxes 15,037,376 15,137,040 15,586,033 16,197,923 16,539,306 16,855,487 17,178,576 Intergovernmental Revenue: PERS Funding 356,517 541,742 541,742 721,490 743,135 765,429 788,392 Community Assistance 166,905 139,899 139,899 139,899 139,899 139,899 139,899 Fish Tax 568 17,500 613 700 721 743 765 Other 168,268 48,500 64,292 54,500 57,225 60,086 63,090 Total State/Federal Revenue 692.258 747.641 746.546 916.589 940.980 966.157 992.146 Other Revenue Licenses and Permits 225,289 157,000 190,841 192,250 196,095 200,017 204,017 Ambulance Fees 1,561,181 1,250,000 1,007,429 1,250,000 1,275,000 1,300,500 1,326,510 Interest 1,017,824 750,000 750,000 750,000 532,815 468,166 440,415 Other 914,150 774,130 815,879 873,721 891,195 909,019 927,199 Total Other Revenue 3.718.444 2.931.130 2.764.149 3.065.971 2.895.105 2.877.702 2.898.141 Total Revenues 19.448.078 18.815.811 19.096.728 20.180.483 20.375.391 20.699.346 21.068.863 Transfer From Other Funds Charges to other funds 1,795,400 1,806,700 1,795,400 1,739,000 1,791,170 1,844,905 1,900,252 Capital Projects / Special Revenue 183,185 75,000 124,837 75,000 75,000 75,000 75,000 Enterprise 38,800 41,200 38,800 41,900 43,157 44,452 45,786 Trust Fund 153,684 159,368 153,684 176,498 180,028 183,629 167,377 Total Transfers 2.171.069 2.082.268 2.112.721 2.032.398 2.089.355 2.147.986 2.188.415 Total Revenues and Transfers 21,619,147 20,898,079 21,209,449 22,212,881 22,464,746 22,847,332 23,257.278 EXPENDITURES/APPROPRIATIONS General Government 4,015,443 4,677,254 4,866,668 5,146,864 5,301,270 5,460,308 5,624,117 Public Safety 9,199,970 9,793,110 9,797,857 10,037,329 10,338,449 10,648,602 10,968,060 Public Works 2,581,506 3,014,672 3,112,664 3,024,799 3,115,543 3,209,009 3,305,279 Parks, Recreation & Cultural 2,467,387 2,598,930 2,651,665 2,604,793 2,682,937 2,763,425 2,846,328 Total Operating Expenditures 18,264,306 20,083,966 20,428,854 20,813,785 21,438,199 22,081,344 22,743,784 Transfers or Non -Operating 1,140,730 2,412,022 2,413,134 2,757,125 4,253,439 2,795,092 1,832,095 Total Expenditures/Appropriations 19,405,036 22,495,988 22,841,988 23,570,910 25,691,638 24,876,436 24,575,879 Total Surplus (Deficit) 2,214,111 (1,597,909) (1,632,539) (1,358,029) (3,226,892) (2,029,104) (1,318,601) Projected Lapse -5% - 1,004,198 1,021,443 1,040,689 1,071,910 1,104,067 1,137,189 Adjusted Surplus (Deficit) 2,214,111 (593,711) (611,096) (317,340) (2,154,982) (925,037) (181,412) Beginning Fund Balance 16,474,836 16,791,181 18,688,947 18,077,851 17,760,511 15,605,529 14,680,492 Ending Fund Balance 18,688,947 16,197,470 18,077,851 17,760,511 15,605,529 14,680,492 14,499,080 Restricted (908,059) (907,433) (953,462) (1,001,135) (1,051,192) (1,103,752) (1,158,940) Committed (14,439,569) (11,759,003) (13,541,495) (13,075,552) (11,571,651) (10,110,669) (9,477,932) Assigned (3,341,319) (3,531,034) (3,582,894) (3,683,824) (2,982,686) (3,466,071) (3,862,208) Unassigned Fund Balance $ - $ - $ - $ - $ - $ - $ 66 City of Kenai Fiscal Year 2027 Operating Budget General Fund Fund Balance Policy Compliance Ending Fund Balance 6/30/24 Nonspendable Restricted - Athletics - Daubenspeck Donation Committed: Outstanding Encumbrances Subsequent Year Expenditures Health Insurance Reserve Capital Improvement Plan Reserve Budgetary Stabilization Reserve Total Committed Assigned - Accrued Compensated Absences Operational and Capital Contingencies Reserve Total Assigned Unassigned $24,000,000 $22,000,000 $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 FY2025 Actual FY2025 FY2026 FY2027 FY2028 FY2029 Actual Projected Proposed Projected Projected $ 18,688,947 $ 18,077,851 $ 17,760,511 $ 15,605,529 $ 14,680,492 $ (908,059) $ (953,462) $ (1,001,135) $ (1,051,192) $ (1,103,752) $ (121,058) $ (50,000) $ (50,000) $ (50,000) $ (50,000) (2,413,615) (1,632,539) (1,358,029) (3,226,892) (2,029,104) (5,247,625) (4,484,230) (4,057,458) 3.8743 (6,657,271) (7,374,726) (7,610,065) (8,294,759) (8,031,565) $ (14,439,569) $ (13,541,495) $ (13,075,552) $ (11,571,651) $ (10,110,669) $ (1,103,409) $ (1,125,477) $ (1,147,987) $ (1,170,947) $ (1,194,366) 1.291 (2,237,910) (2,457,417) (2,535,837) (1,811,739) (2,271,705) $ (3,341,319) $ (3,582,894) $ (3,683,824) $ (2,982,686) $ (3,466,071) FY2026 Projected FY2027 Proposed FY2028 Projected FY2029 Projected -Mimimum Fund Balance 7.25.060 (a) -Maximum Fund Balance Actual Fund Balance 67 City of Kenai Fiscal Year 2027 Operating Budget Property Tax Breakdown What will your property tax $'s pay for in FY2027? Home Assessed Value $ 350,000.00 City of Kenai Property Tax (4.35 Mills) $ 1,522.50 KPB Property Taxes (After $75,000 primary residence exemption) (4.30 Mills) 1,182.50 Total Tax Liability $ 2,705.00 How is your City of Kenai Property Taxes Spent? Department: General Government City Council City Administration Lands Administration Planning and Zoning City Clerk Total General Government Public Safety Police Fire Communications Animal Control Total Public Safety Public Works Public Works Administration Streets Maintenance Shop Buildings Street Lighting Total Public Works Parks, Recreation & Cultural Parks, Recreation & Beautification Library Visitor Center City Dock Total Parks, Recreation & Cultural Senior Citizen Programs Debt Service Capital Projects Total City of Kenai $ 198,619 0.84% $ 12.79 4,087,294 17.34% 264.17 260,620 1.11 % 16.90 214,775 0.91 % 13.85 385,556 1.64% 24.97 5,146,864 21.84% $ 332.68 4,068,235 17.26% $ 262.78 4,465,210 18.94% 288.36 1,010,253 4.29% 65.32 493,631 2.09% 31.82 10,037,329 42.58% $ 648.28 238,929 1.01 % 15.38 1,332,328 5.65% 86.02 754,472 3.20% 48.72 453,616 1.92% 29.23 245,454 1.04% 15.83 3,024,799 12.82% $ 195.18 1,335,254 5.66% $ 86.17 1,006,403 4.27% 65.01 201,552 0.86% 13.09 61,584 0.26% 3.96 2,604,793 11.05% $ 168.23 251,750 1.07% $ 16.29 125,375 0.53% $ 8.07 2,380,000 10.10% $ 153.77 $ 23,570,910 100.00% $ 1,522.50 $ 1,522.50 68 City of Kenai Fiscal Year 2027 Operating Budget Property Tax Breakdown Graph Capital Projects $153.77 10.10% .! City of Kenai Fiscal Year 2027 Operating Budget General Fund Expenditure Recap Personal Services Maintenance and Operations FY2026 FY2027 FY2026 FY2027 Original Proposed Original Proposed Budget Budget Difference Budget Budget Difference General Government City Clerk $ 320,174 $ 307,656 $ (12,518) $ 69,540 $ 77,900 $ 89360 Legislative 52,829 51,809 (1,020) 129,785 146,810 179025 Legal 430,726 429,195 (1,531) 359875 35,780 (95) City Manager 456,156 457,301 1,145 879560 1239850 369290 Human Resources 177,386 178,202 816 279950 289389 439 Finance 791,058 939,347 148,289 213,369 2459830 32,461 Land Administration 64,034 88,070 24,036 46,200 172,550 126,350 Non -Departmental 557,015 761,657 204,642 941,454 884,093 (57,361) Planning and Zoning 217,453 182,000 (35,453) 32,040 329775 735 Safety - - - 3,650 3,650 - Total General Government 3,066,831 3,395,237 328,406 1,587,423 19751,627 164,204 Public Safety Police 3,528,522 3,630,384 101,862 428,443 437,851 9,408 Fire 3,633,258 3,792,975 159,717 668,527 631,235 (37,292) Communications 954,986 925,648 (29,338) 86,740 84,605 (2,135) Animal Control 331,752 323,615 (8,137) 160,882 170,016 9,134 Total Public Safety 8,448,518 8,672,622 224,104 1,344,592 1,323,707 (20,885) Public Works Public Works Administration 216,105 219,059 2,954 21,075 19,870 (1,205) Shop 448,690 451,293 2,603 299,138 303,179 4,041 Streets 687,039 681,896 (5,143) 607,918 650,432 42,514 Buildings 335,223 318,767 (16,456) 164,044 134,849 (29,195) Street Lighting - - - 235,440 245,454 10,014 Total Public Works 1,687,057 1,671,015 (16,042) 1,327,615 1,353,784 26,169 Library 820,038 787,725 (32,313) 212,494 218,678 6,184 Parks and Recreation Boating Facility 28,194 32,546 4,352 26,385 29,038 2,653 Visitor Center - - - 201,024 201,552 528 Parks, Recreation & Beautification 824,763 823,473 (1,290) 486,032 496,781 10,749 Total Parks and Recreation 852,957 856,019 3,062 713,441 727,371 13,930 Non -Departmental Transfers - - - - - - Total General Fund $ 14,875,401 $ 15,382,618 $ 507,217 $ 5,185,565 $ 5,375,167 $ 189,602 70 City of Kenai Fiscal Year 2027 Operating Budget General Fund Expenditure Recap Capital Outlay & Transfers Total Budget FY2026 FY2027 FY2026 FY2027 Original Proposed Original Proposed Budget Budget Difference Budget Budget Difference General Government $ - $ $ $ 389,714 $ 385,556 $ (4,158) City Clerk - - 182,614 198,619 16,005 Legislative - - 466,601 464,975 (1,626) Legal - - 543,716 581,151 37,435 City Manager - - 205,336 206,591 1,255 Human Resources - 1,004,427 1,185,177 180,750 Finance - 110,234 260,620 150,386 Land Administration 23,000 (23,000) 1,521,469 1,645,750 124,281 Non -Departmental - 249,493 214,775 (34,718) Planning and Zoning - 3,650 3,650 Safety 23,000 - (23,000) 4,677,254 5,146,864 469,610 Total General Government Public Safety - - - 3,956,965 4,068,235 111,270 Police 41,000 41,000 4,301,785 4,465,210 163,425 Fire - - - 1,041,726 1,010,253 (31,473) Communications - - 492,634 493,631 997 Animal Control - 41,000 41,000 9,793,110 10,037,329 244,219 Total Public Safety Public Works - - - 237,180 238,929 1,749 Public Works Administration - 747,828 754,472 6,644 Shop - 1,294,957 1,332,328 37,371 Streets - - 499,267 453,616 (45,651) Buildings - - 235,440 245,454 10,014 Street Lighting - 3,014,672 3,024,799 10,127 Total Public Works - - 1,032,532 1,006,403 (26,129) Library Parks and Recreation - - - 54,579 61,584 7,005 Boating Facility - - - 201,024 201,552 528 Visitor Center - 15,000 15,000 1,310,795 1,335,254 24,459 Parks, Recreation & Beautification - 15,000 15,000 1,566,398 1,598,390 31,992 Total Parks and Recreation 2,412,022 2,757,125 345,103 2,412,022 2,757,125 345,103 Non -Departmental Transfers $ 2,435,022 $ 2,813,125 $ 378,103 $ 22,495,988 $ 23,570,910 $ 1,074,922 Total General Fund 71 City of Kenai Fiscal Year 2027 Operating Budget General Fund Expenditure Summary Original Increase FY2025 Budget Amended Proposed (Decrease) % Actual FY2026 Budget FY2027 FY26 Original Change General Government 01 City Clerk $ 349,137 $ 389,714 $ 417,214 $ 385,556 $ (4,158) (1.07%) 11 Legislative 180,960 182,614 192,994 198,619 16,005 8.76% 12 Legal 421,975 466,601 466,601 464,975 (1,626) (0.35%) 13 City Manager 489,431 543,716 539,816 581,151 37,435 6.89% 14 Human Resources 196,666 205,336 205,336 206,591 1,255 0.61% 15 Finance 983,390 1,004,427 1,004,759 1,185,177 180,750 18.00% 16 Land Administration 67,396 110,234 242,102 260,620 150,386 136.42% 18 Non -Departmental 994,646 1,521,469 1,541,161 1,645,750 124,281 8.17% 19 Planning and Zoning 329,041 249,493 253,035 214,775 (34,718) (13.92%) 20 Safety 2,801 3,650 3,650 3,650 - - Total General Government $ 4,015,443 $ 4,677,254 $ 4,866,668 $ 5,146,864 469,610 10.04% Public Safety 21 Police 3,756,260 3,956,965 3,959,982 4,068,235 111,270 2.81% 22 Fire 3,965,307 4,301,785 4,301,865 4,465,210 163,425 3.80% 23 Communications 1,014,425 1,041,726 1,043,376 1,010,253 (31,473) (3.02%) 29 Animal Control 463,978 492,634 492,634 493,631 997 0.20% Total Public Safety 9,199,970 9,793,110 9,797,857 10,037,329 244,219 2.49% Public Works 31 Public Works Administration 250,863 237,180 236,781 238,929 1,749 0.74% 32 Shop 694,584 747,828 747,828 754,472 6,644 0.89% 33 Streets 1,025,466 1,294,957 1,317,949 1,332,328 37,371 2.89% 34 Buildings 412,126 499,267 574,666 453,616 (45,651) (9.14%) 35 Street Lighting 198,467 235,440 235,440 245,454 10,014 4.25% Total Public Works 2,581,506 3,014,672 3,112,664 3,024,799 10,127 0.34% Parks, Recreation & Culture 40 Library 969,625 1,032,532 1,056,533 1,006,403 (26,129) (2.53%) 60 Boating Facility 39,380 54,579 54,579 61,584 7,005 12.83% 03 Visitor Center 204,619 201,024 201,732 201,552 528 0.26% 45 Parks, Recreation & Beautification 1,253,763 1,310,795 1,338,821 1,335,254 24,459 1.87% Total Parks, Recreation & Culture 2,467,387 2,598,930 2,651,665 2,604,793 5,863 0.23% Total Operating Expenditures 18,264,306 20,083,966 20,428,854 20,813,785 729,819 3.63% Transfers to other funds Senior Citizen Fund 217,467 286,397 253,999 251,750 (34,647) (12.10%) Debt Service 130,625 130,625 140,097 125,375 (5,250) (4.02%) Other non -operating 792,638 1,995,000 2,019,038 2,380,000 385,000 19.30% Total Transfers to other funds 1,140,730 2,412,022 2,413,134 2,757,125 345,103 14.31% Total General Fund $ 19,405,036 $ 22,495,988 $ 22,841,988 $ 23,570,910 $ 1,074,922 4.78% 72 City of Kenai Fiscal Year 2027 Operating Budget General Fund Summary by Line Item Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 7,992,189 $ 6,976,876 $ 8,545,299 $ 8,541,399 $ 9,102,028 $ 556,729 6.52% 0200 Overtime 634,689 471,475 329,953 329,953 420,469 90,516 27.43% 0250 Holiday Pay 199,719 159,064 229,965 229,965 258,168 28,203 12.26% 0300 Leave 239,844 148,879 284,414 284,414 305,133 20,719 7.28% 0400 Medicare 128,991 109,245 136,150 135,751 146,243 10,093 7.41% 0450 Social Security 26,341 20,419 20,571 20,571 28,634 8,063 39.20% 0500 PERS 2,189,008 1,986,032 2,424,574 2,424,574 2,781,823 357,249 14.73% 0600 Unemployment Insurance - 3,403 46,706 46,706 50,193 3,487 7.47% 0700 Workers Compensation 181,008 139,639 218,761 218,761 254,825 36,064 16.49% 0800 Health & Life Insurance 2,309,649 2,159,105 2,362,036 2,362,036 1,749,510 (612,526) (25.93%) 0900 Supplemental Retirement 271,751 174,135 276,972 276,972 285,592 8,620 3.11% Total Salaries & Benefits $ 14,173,189 $ 12,348,272 $ 14,875,401 $ 14,871,102 $ 15,382,618 $ 507,217 3.41% Maintenance and Operations 2021 Office Supplies 8,184 10,135 15,090 15,090 15,540 450 2.98% 2022 Operating & Repair Supplies 541,980 549,685 726,826 699,279 716,015 (10,811) (1.49%) 2023 Repair & Maintenance Supplies 26,276 8,659 3,850 6,976 4,100 250 6.49% 2024 Small Tools/Minor Equipment 186,049 168,407 127,535 177,083 138,885 11,350 8.90% 2026 Computer Software 191,493 145,198 298,476 337,935 261,504 (36,972) (12.39%) 4531 Professional Services 561,052 446,897 745,086 827,818 795,001 49,915 6.70% 4532 Communications 59,222 61,158 106,808 107,208 88,946 (17,862) (16.72%) 4533 Travel & Transportation 131,747 109,357 209,010 207,348 220,160 11,150 5.33% 4534 Advertising 23,663 18,417 35,950 40,311 38,200 2,250 6.26% 4535 Printing & Binding 20,428 20,887 37,033 42,033 43,380 6,347 17.14% 4536 Insurance 381,636 342,027 473,567 489,567 520,693 47,126 9.95% 4537 Utilities 699,576 738,122 795,936 849,616 884,511 88,575 11.13% 4538 Repair & Maintenance 222,788 180,397 332,823 351,923 388,953 56,130 16.86% 4539 Rentals 157,888 149,437 224,026 224,126 196,428 (27,598) (12.32%) 4540 Equip. Fund Pmts. 600,308 516,064 713,334 713,334 714,997 1,663 0.23% 4541 Postage 18,632 15,854 23,300 21,900 21,150 (2,150) (9.23%) 4666 Books 80,481 75,847 75,435 83,045 76,750 1,315 1.74% 4667 Dues & Publications 26,140 27,176 38,080 38,480 39,004 924 2.43% 4999 General Contingency - - 90,000 87,792 90,000 - - 5041 Miscellaneous 51,810 46,319 62,300 66,408 69,850 7,550 12.12% 5045 Depreciation - - - - - - - 5047 Grants to Agencies 46,580 192,114 51,100 71,480 51,100 Total Maint. and Operations $ 4,035,933 $ 3,822,157 $ 5,185,565 $ 5,458,752 $ 5,375,167 $ 189,602 3.66% Capital Outlay & Transfers 8061 Land - 2,425 - - - - - 8062 Buildings 4,109 8063 Improvements - 2,139 - - - - - 8064 Machinery & Equipment 55,184 108,943 23,000 99,000 56,000 33,000 143.48% 9090 Transfers 1,140,730 1,943,032 2,412,022 2,413,134 2,757,125 345,103 14.31% Total Capital Outlay and Transfers $ 1,195,914 $ 2,060,648 $ 2,435,022 $ 2,512,134 $ 2,813,125 $ 378,103 15.53% Department Total: $ 19,405,036 $ 18,231,077 $ 22,495,988 $ 22,841,988 $ 23,570,910 $ 1,074,922 4.78% 73 City of Kenai Fiscal Year 2027 Operating Budget Fund 001 - General Fund Department 401 - City Clerk Mission The Clerk's Office strives to promote transparency by preserving the city's official records, assisting the public in accessing public documents, supporting the needs and requirements of the City Council, administering City Elections, and providing these and other services in an ethical, fair, impartial, and proficient manner. Functions & Responsibilities The City Clerk serves as the clerical officer to the City Council and is the custodian of City records and the seal of the City. The Office of the City Clerk manages the Kenai Municipal Code and prepares minutes, legislation, and meeting agendas and packets for the City Council and most City commissions and committees. The Office of the City Clerk also administers City elections, certain permitting and licensing programs, the Leif Hansen Memorial Park, and the Kenai Municipal Cemetery. Organizational Chart Administrative Assistant III Staffing FY23 Actual FY24 Actual FY25 Actual FY26 Actual Proposed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade City Clerk 1 NG 1 NG 1 NG 1 NG 1 NG 1 NG Administrative Assistant III _ _ Administrative Assistant II 1 14 1 14 1 1 15 1 15 1 15 14 Average Overtime Per Position (hours) Position Title FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 City Clerk N/A N/A N/A N/A N/A N/A Administrative Assistant III 2.5 15 15 15 74 Performance Measures Fiscal Year 2022 2023 2024 2025 2026* Total Agenda Packets Distributed 94 96 102 89 90 Percentage of City Council Action Agendas Prepared One Business Day Following the 100% 99% 100% 100% 99% Meeting Percentage of City Council Items Fully Processed within 99% 98% 100% 100% 99% One Business Day Percentage of City Council Minutes Completed for o 0 0 0 0 publication in the next 99 /0 99 /0 100 /0 100 /0 99/o Meeting Packet Total Public Record Requests 76 70 27 46 90 Processed Average Response Time 5 4 3 3 3 (Business Days) Total Licenses Issued 22 20 20 23 25 Average Number of days from receipt of application to issuance (mailing) by type Taxi 1/2 1 0 0 0 Mobile Food 1/2 1 0 0 0 Vendor Transient 0 0 0 0 0 Merchant/Peddler Number of Boxes 60 40 28 54 15 Shredded/Destroyed 1,740 lbs. Obsolete Document Destruction/Shredded 1,431 lbs. 840 lbs. 1,650 lbs. 500 lbs. *Projected Figures based on year-to-date information. FY26 Department Goals Evaluation 1. Explore and implement an online business application platform that allows business owners to apply and submit materials at any time, including outside of regular office hours. This goal will streamline the application process and improve efficiency for both the applicant and the City by providing tools for timely submissions and enhanced accessibility, in support of Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 2 - Economic Development. Not Achieved. 2. Review/Audit the City of Kenai Records Retention schedule, assess the volume of physical records maintained, and establish an efficient and cost-effective manner for secure storage of City records, in support of Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 7 - Natural Hazards and Disasters. • Not Achieved. 75 3. Update the Board and Commission Application process and forms, in support of City of Kenai Comprehensive Plan Goal 4 - Public Improvements and Services. • Achieved. FY27 Department Goals 1. Explore and implement an online business application platform that allows business owners to apply and submit materials at any time, including outside of regular office hours. This goal will streamline the application process and improve efficiency for both the applicant and the City by providing tools for timely submissions and enhanced accessibility, in support of Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 2 - Economic Development. 2. Work collaboratively with individual departments to assess and identify the most effective method for managing departmental records, ensuring compliance with the City of Kenai Records Retention Schedule, in support of Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 7 - Natural Hazards and Disasters. 3. Evaluate cost-effective solutions for storing records transferred to the Clerk's Office for archival purposes, while ensuring departments have convenient access to the record when needed and optimizing physical space available for storage, in support of Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 7 - Natural Hazards and Disasters. Future Considerations The audio/video system in Council Chambers is aging, with some components no longer eligible for updates. Items to address include replacing individual components or a complete system overhaul to ensure reliable public access to Council meetings, both in real time and through recorded sessions. 76 City of Kenai Fiscal Year 2027 Operating Budget Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Fund: 001 - General Fund Department: City Clerk Five year Original Increase FY2025 Historical Budget Amended Proposed (Decrease) % Actual Average FY2026 Budget FY2027 FY2026 Original Change $ 189,194 $ 170,714 $ 206,722 $ 206,722 $ 207,205 $ 483 0.23% 113 123 362 362 459 97 26.80% 6,437 2,323 5,449 5,449 4,822 (627) (11.51%) 2,903 2,552 3,082 3,082 3,081 (1) (0.03%) - - 236 236 - (236) (100.00%) 41,641 37,755 44,720 44,720 45,686 966 2.16% - 72 1,063 1,063 1,063 - - 454 361 446 446 606 160 35.87% 53,444 52,758 53,444 53,444 40,084 (13,360) (25.00%) 4,328 3,586 4,650 4,650 4,650 - - $ 298,514 $ 270,244 $ 320,174 $ 320,174 $ 307,656 $ (12,518) 3.91%) Maintenance and Operations 2021 Office Supplies 1,117 915 850 850 750 (100) (11.76%) 2022 Operating & Repair Supplies 1,278 618 600 600 600 - 2023 Repair & Maintenance Supplies - - - - - - - 2024 Small Tools/Minor Equipment 1,108 945 1,100 1,100 1,425 325 29.55% 2026 Computer Software 19,514 24,338 22,990 22,990 22,280 (710) (3.09%) 4531 Professional Services 10,555 10,676 15,500 34,900 16,600 1,100 7.10% 4532 Communications 1,073 1,167 1,970 1,970 2,015 45 2.28% 4533 Travel & Transportation 7,685 7,564 10,460 10,460 11,660 1,200 11.47% 4534 Advertising 3,118 6,613 6,600 9,600 6,600 - - 4535 Printing & Binding 4,595 6,169 8,200 13,200 14,700 6,500 79.27% 4536 Insurance - - - - - - - 4537 Utilities 4538 Repair & Maintenance - - - - - 4539 Rentals 50 50 100 200 100 4540 Equip. Fund Pmts. - - - - - 4541 Postage 4666 Books - - - - - 4667 Dues & Publications 530 573 870 870 870 4999 General Contingency - - - - - 5041 Miscellaneous 28 300 300 300 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 50,623 $ 59,656 $ 69,540 $ 97,040 $ 77,900 $ 8,360 12.02% Capital Outlav & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Total Capital Outlay and Transfers Department Total 2,192 $ - $ 2,192 $ - $ - $ - $ - - $ 349,137 $ 332,092 $ 389,714 $ 417,214 $ 385,556 $ (4,158) 1.070/6) 77 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 01 - City Clerk 2022 Operating & Repair Supplies. Miscellaneous supplies. 4531 Professional Services. Code publishing services, election precinct workers and canvass board, document shredding, permanent records archival, ballot programming and testing and miscellaneous. 2024 Small Tools/Minor Equipment. Charge for (3) three computer 4533 Travel & Transportation. Car allowance, AAMC conference for replacements, iPad replacement for Deputy Clerk and miscellaneous clerk and deputy clerk, IIMC annual conference, Northwest clerk items. institute, and other miscellaneous travel. 2026 Computer Software. Includes annual fees for records 4534 Advertising. Election notices, meeting agendas and misc. public management, email archiving, agenda management, and general notices. office software, including web hosting software. 4535 Printing & Binding. Ballot printing, copier and printer maintenance, acid free paper, minute books and paper. Special Project: By -mail Election Envelopes $6,200. 78 City of Kenai Fiscal Year 2027 Operating Budget Fund 001 - General Fund Department 403 -Visitor Center Mission To manage the Kenai Visitor and Cultural Center to celebrate, promote, and reflect the community of Kenai by providing visitor services, cultural programming, and dynamic exhibits. The Center manages and displays the City's historical collection, preserving and showcasing Kenai's natural history, archaeology, Native artifacts, and contemporary art to connect residents and visitors with the region's rich heritage. Functions & Responsibilities The Kenai Visitors and Cultural Center houses artifacts and historical records valuable to Kenai residents. Under a Facilities Management Agreement, the Kenai Chamber of Commerce (Facility Manager) performs services to promote Kenai as a visitor destination as well as act on the opportunities of the visitor industry, exploring new attractions and events, coordinating efforts in promoting the recreational and economic potential for our community with an emphasis on long- term growth and expansion. Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade NA N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Performance Measures Facility Numbers 2022 2023 2024 2025 2026* (Calendar Year) Visitors 20,091 23,419 22,732 22,451 22,173 Programs 8 8 8 11 9 Events 8 9 14 14 12 Rentals 21 32 31 31 28 NOTE: Information provided by the Kenai Chamber of Commerce and Visitor Center 'Projected Figures based on available information (average 2023-2025) FY26 Department Goals Evaluation The following goals were submitted in FY25 in support of the Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 1 — Promote and encourage quality of life in Kenai: Cultural Engagement and Exhibits. The Facility Manager collaborated with Alaska Native organizations and local experts to highlight culturally significant areas at the Center. Achievements include rotating exhibits and a lecture series led by the Facility Manager. Achieved. 79 2. Tourism and Event Promotion. Partnered with the Facility Manager to promote Kenai as a destination for cultural and outdoor events, supporting economic growth and community quality of life. Key programs included the 4th of July festivities, the Annual Kenai Silver Salmon Derby, the Kenai River Marathon, and Christmas Comes to Kenai. • Achieved. 3. Grant Funding for Capital Projects. The Facility Manager is establishing a 501(c)(3) organization to pursue eligible grant funding. While this goal remains in progress, the Facility Manager successfully supported the Kenai bronze bear sculpture project, securing a Rasmuson Foundation Grant. The completed sculpture was donated to the City in November, enhancing the airport as a community gateway. Not Achieved. Ongoing. FY27 Department Goals The following goals support the Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 1 — Promote and encourage quality of life in Kenai: 1. Collaborate with the Facility Manager and local Alaska Native organizations to identify cultural areas of importance to include at the Kenai Visitor and Cultural Center. 2. Collaborate with the Facility Manager to develop programs and partner on marketing Kenai as a destination, center for cultural and outdoor events and activities, and promoting economic and business growth and opportunities that enrich Kenai's tourism industry and the community's overall quality of life. 3. Pursue grant funding for capital project needs at the Kenai Visitor and Cultural Center. Future Considerations The current Facility Management Services Agreement ends on June 30, 2027, and may be extended for two successive one-year terms. Before 2019, a single contractor managed both the Kenai Visitor and Cultural Center and Kenai Tourism and Marketing Services, providing an integrated approach to visitor engagement. Consolidating these services again could improve efficiency and align on -site interactions and event -based tourism with broader tourism initiatives. Many Kenai Peninsula communities successfully use this model. City Administration will continue to collaborate with the Kenai Chamber of Commerce, regional tourism and economic development groups, and businesses to explore opportunities to enhance Kenai's visibility as an exceptional destination for visitors and businesses. 80 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: Visitor Center Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ $ $ $ $ $ 0200 Overtime - - 0250 Holiday Pay - - 0300 Leave - - 0400 Medicare - - 0450 Social Security - - 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement - - Total Salaries & Benefits $ Maintenance and Operations 2021 Office Supplies - 2022 Operating & Repair Supplies 2023 Repair & Maintenance Supplies 2024 Small Tools/Minor Equipment 10,866 2,239 2026 Computer Software - - - - - 4531 Professional Services 152,480 118,273 154,980 154,980 154,980 - 4532 Communications 50 252 2,000 2,000 2,120 120 6.00% 4533 Travel & Transportation - - - - - - - 4534 Advertising - - - - - 4535 Printing & Binding - - - - - 4536 Insurance - - - - - - - 4537 Utilities 40,803 36,802 43,564 43,564 43,972 408 0.94% 4538 Repair & Maintenance 420 420 480 480 480 - - 4539 Rentals - - - - - 4540 Equip. Fund Pmts. 4541 Postage 4666 Books - - - 4667 Dues & Publications - - - 4999 General Contingency - - 5041 Miscellaneous 708 5045 Depreciation - - - 5047 Grants to Agencies - - - - - - - Total Maint. and Operations $ 204,619 $ 157,986 $ 201,024 $ 201,732 $ 201,552 $ 528 0.26% Capital Outlay & Transfers 8061 Land - - - - - - - 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers - - Total Capital Outlay and Transfers $ - $ - $ - $ - $ - $ - - Department Total: $ 204,619 $ 157,986 $ 201,024 $ 201,732 $ 201,552 $ 528 0.26% 81 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 03 - Visitor Center 4531 Professional Services. Facility management agreement with 4538 Repair & Maintenance Services. Facility security monitoring operator of Kenai Visitor Center and the Kenai Silver Salmon Derby service. marketing. 82 Mission City of Kenai Fiscal Year 2027 Operating Budget Fund 001 - General Fund Department 411 - Legislative To adopt policies that encourage economic growth, ensure public safety, and foster community involvement. Functions & Responsibilities The City Council provides policy direction, on behalf of the citizens, to the City government, establishes community goals and objectives, and serves as steward of the City's financial interests, including the City budget and appropriations. Organizational Chart Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Pro osed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Mayor 1 NG 1 NG 1 NG 1 NG 1 1 NG 1 1 NG Council Member 6 NG 6 NG 6 NG 6 NG 1 6 NG 1 6 NG Performance Measures Fiscal Year 2022 Number of Meetings and Work Sessions Legislation Acted On Voter Turnout 29 150 15% *Projected Figures based on year-to-date information. Sales Tax History 2023 2024 2025 2026* 32 28 28 32 151 140 1 123 130 18% 12.85% 10.40% 14.82% Fiscal Year 2022 2023 2024 2025 2026* Taxable Sales 296,998,545 307,770,762 314,604,437 342,986,004 334,735,584 Percentage Change 7.9% 3.6% 2.2% 3.3% 3.0% *Projected Figures based on year-to-date information. 83 Assessed Value History Fiscal Year 2022 1 2023 2024 1 2025 2026 Real $794,900,500 $871,589,000 $909,613,500 $941,391,200 $1,001, Oil 51,261,250 49,952,780 47,805,460 42,980,910 51,549,28 Personal 48,183,60 47 683 460 50,078,54 41,377,754 43,956,264 Total $894,345, 557 $969,225, 440 $1,007,497,507 $1.025,749,864 $1,101,499, 444 FY26 Department Goals Continued support and collaboration with the US Army Corps of Engineers and Federal Delegation on the Kenai River Bluff Stabilization Project in support of Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 4 — Public Improvements and Services. Achieved. 2. Maintain business -friendly regulations, taxation, and incentives to create a stable, positive climate for private investment in support of Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 2 — Economic Development. • Achieved. 3. Support continued community outreach and collaboration for the Waterfront Redevelopment Plan in support of Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 4 — Public Improvements and Services. • Achieved. 4. Seek opportunities for efficiency by striving to maintain stable tax rates without negatively impacting services to the community in support of Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 1 — Quality of Life. Achieved. FY27 Department Goals 1. Maintain sustainable housing strategies to improve housing availability and affordability, supporting incentives for new developments to expand affordable housing in support of Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 1 - Quality of Life and Goal 3 - Land Use. 2. Maintain business -friendly regulations, taxation, and incentives to attract business, support local entrepreneurship, and enhance workforce development in support of Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 2 - Economic Development. 3. Ensure long-term investments in City infrastructure by establishing clear funding priorities and policies that support safe, reliable roads, utilities, and essential municipal services in support of Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 4 - Public Improvement and Services. 4. Strengthen public relations and civic participation by adopting policies that improve transparency, accessibility, and two-way communications between the City and its residents, ensuring meaningful opportunities for public input in City decision -making. Future Considerations Provide sufficient funding to replace significant City assets as they near the end of their useful life. 84 City of Kenai Fiscal Year 2027 Operating Budget Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Maintenance and Operations 2021 Office Supplies 2022 Operating & Repair Supplies 2023 Repair & Maintenance Supplies 2024 Small Tools/Minor Equipment 2026 Computer Software 4531 Professional Services 4532 Communications 4533 Travel & Transportation 4534 Advertising 4535 Printing & Binding 4536 Insurance 4537 Utilities 4538 Repair & Maintenance 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 4667 Dues & Publications 4999 General Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies Fund: 001 - General Fund Department: Legislative Five year Original Increase FY2025 Historical Budget Amended Proposed (Decrease) % Actual Averaqe FY2026 Budget FY2027 FY2026 Original Change $ 48,001 $ 48,000 $ 48,960 $ 48,960 $ 48,000 $ (960) (1.96%) 696 696 710 710 696 (14) (1.97%) 2,976 2,976 3,036 3,036 2,976 (60) (1.98%) 115 104 123 123 137 14 11.38% $ 52,829 $ $ 51,788 52,829 $ 51,776 $ 51,809 $ (1,020) 1.93%) - 62 200 200 200 - - 5,294 3,295 2,800 2,800 5,800 3,000 107.14% 1,273 3,778 1,425 1,425 1,550 125 8.77% 269 581 760 760 730 (30) (3.95%) 77,000 55,056 70,000 70,000 84,000 14,000 20.00% 333 835 1,100 1,100 1,030 (70) (6.36%) 7,492 4,298 14,500 14,500 14,500 - 8,332 2,938 2,500 2,500 2,500 - 84 300 300 300 - 5 - - - 8,653 8,413 9,150 9,150 9,150 900 771 5,950 5,950 5,950 19,626 30,523 21,100 31,480 21,100 Total Maint. and Operations $ 129,172 $ 110,639 $ 129,785 $ 140,165 $ 146,810 $ 17,025 13.12% Capital Outlay & Transfers 8061 Land - 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers - - Total Capital Outlay and Transfers Department Total: $ 180,960 $ 162,415 $ 182,614 $ 192,994 $ 198,619 $ 16,005 8.76% 85 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 11 - Legislative 2022 Operating, Repair & Maintenance Supplies. Food, refreshments and awards. Biennial training event. 2024 Small Tools/Minor Equipment. Replacement of two computers and two iPads. 4531 Professional Services. Annual City Audit. 4533 Travel & Transportation. Travel to Alaska Municipal League annual conference and summer meeting in Fairbanks for Council 4534 Advertising. Miscellaneous promotional items/souvenirs for the City. 5047 Grants to Agencies. Operational or special project grants provided to local organizations. Kenai Chamber of Commerce July 4th Celebration 2,600 Kenai Chamber of Commerce holiday fireworks 5,000 Industry Appreciation Day 500 Economic Outlook Forum 500 Bridges Network (Project Homeless Connect) 1,000 Kenai Watershed Forum 2,500 Central Area Rural Transit Systems, Inc. 7,500 Miscellaneous grants to be identified 1,500 $ 21,100 86 City of Kenai Fiscal Year 2027 Operating Budget Fund 001 — General Fund Department 412 — Legal Mission To provide the highest quality legal services to the City Council, Administration, Boards, and Commissions in the most ethical, timely, efficient, and cost-effective manner for the benefit of the City of Kenai and its residents. Functions & Responsibilities Core functions of the department: 1. Provide legal advice and representation to Council, Administration, Board, and Commissions 2. Defend City against civil lawsuits through direct representation and management of outside counsel 3. Draft and review City legislation and correspondence 4. Draft and review contracts and agreements on behalf of the City 5. Provide legal review and direction on Human Resources decisions 6. Prosecute code enforcement matters and minor offenses 7. Debt collection and representation in bankruptcy proceedings 8. Risk management Organizational Chart i Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Pro osed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Attorney 1 NG 1 NG 1 NG 1 NG 1 NG 1 NG Administrative Assistant II 1 14 1 14 1 14 1 14 1 14 1 14 Average Overtime Per Position (hours) Position Title FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Administrative Assistant II - - - 10 10 10 Performance Measures Fiscal Year Total Citations Litigation Costs 2022 2023 2024 2025 2026 769 813 659 641 857* $ - $ 95 $ 3,366 $ 11,676 $ - Collected Citations $ 96,499 $ 82,201 $ 83,401 $ 96,764 74,562 YTD Outstanding Citations Contracts Processed Ava fable $ 295,858 205 $ 325,912 189 $ 358,148 311 $ 371,941 210* 238 "Projected Figures based on year-to-date information. 87 FY26 Department Goals Evaluation Respond to all Public Records Requests within 3 business days. This goal will provide better service to the public and improve the quality of life for residents and visitors by efficiently conducting business that benefits City residents and businesses. • Achieved. 2. Draft/Review Resolutions and Non -Code Ordinances within 5 business days. This goal will provide better service to the public and improve the quality of life for residents and visitors by efficiently conducting business that benefits City residents and businesses. • Achieved. 3. Prosecute all minor offense citations at 90% success rate. This goal will provide better service to the public and improve the quality of life for residents and visitors by efficiently conducting business that benefits City residents and businesses. • Achieved. FY27 Department Goals 1. Respond to all Public Records Requests within 3 business days. This goal will provide better service to the public and improve the quality of life for residents and visitors by efficiently conducting business that benefits City residents and businesses. 2. Draft/Review Resolutions and Non -Code Ordinances within 5 business days. This goal will provide better service to the public and improve the quality of life for residents and visitors by efficiently conducting business that benefits City residents and businesses. 3. Prosecute all minor offense citations at 90% success rate. This goal will provide better service to the public and improve the quality of life for residents and visitors by efficiently conducting business that benefits City residents and businesses. Future Considerations Continue to meet the mission statement and support the City in its efforts to provide public safety. 88 City of Kenai Fiscal Year 2027 Operating Budget Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Fund: 001 - General Fund Department: Legal Five year Original Increase FY2025 Historical Budget Amended Proposed (Decrease) % Actual Average FY2026 Budget FY2027 FY2026 Original Change $ 275,593 $ 239,093 $ 287,138 $ 287,138 $ 296,299 $ 9,161 3.19% - 47 - - - - - - - 13,570 13,570 14,007 437 3.22% 3,911 3,408 4,360 4,360 4,499 139 3.19% 60,574 52,791 63,170 63,170 65,186 2,016 3.19% - 106 1,504 1,504 1,551 47 3.13% 494 441 565 565 594 29 5.13% 53,444 52,847 53,444 53,444 40,084 (13,360) (25.00%) 7,058 4,461 6,975 6,975 6,975 - - $ 401,074 $ 353,194 $ 430,726 $ 430,726 $ 429,195 $ (1,531) 0.36%) Maintenance and Operations 2021 Office Supplies 86 500 500 500 - - 2022 Operating & Repair Supplies - - - - 2023 Repair & Maintenance Supplies - - - - - - - 2024 Small Tools/Minor Equipment 716 726 900 900 975 75 8.33% 2026 Computer Software 796 735 1,280 1,280 1,130 (150) (11.72%) 4531 Professional Services 11,676 3,200 15,500 15,500 15,500 - - 4532 Communications 927 972 1,220 1,220 1,250 30 2.46% 4533 Travel& Transportation 4,743 5,739 11,000 11,000 11,000 - - 4534 Advertising - - - - - 4535 Printing & Binding - - - - - 4536 Insurance - - - - - - - 4537 Utilities - - - - - - - 4538 Repair & Maintenance - - - - - - - 4539 Rentals - - - - - - - 4540 Equip. Fund Pmts. - - - - - - - 4541 Postage - - - - - - - 4666 Books 431 1,410 2,975 2,975 2,925 (50) (1.68%) 4667 Dues & Publications 1,544 1,459 2,000 2,000 2,000 - 4999 General Contingency - - - - - 5041 Miscellaneous 68 104 500 500 500 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 20,901 $ 14,431 $ 35,875 $ 35,875 $ 35,780 $ (95) (0.26%) Capital Outlav & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Total Capital Outlay and Transfers Department Total $ 421,975 $ 367,625 $ 466,601 $ 466,601 $ 464,975 $ (1,626) 0.350/6) 89 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 12 - Legal 2026 Computer Software. Includes annual fees for general office 4533 Travel & Transportation. Includes funds for continuing softwares. education of department staff, City Attorney automobile allowance, and travel related to litigation. 4531 Professional Services. Funds for outside legal council and 4666 Books. Westlaw subscription, Alaska Rules of Court, Alaska process serving services should they be necessary. Directory of Attorneys, Alaska State Statues, etc. 90 City of Kenai Fiscal Year 2027 Operating Budget Fund 001 — General Fund Department 413 — City Manager Mission To serve the citizens of Kenai by supporting the City Council and leading City operations to ensure essential services, quality of life, future planning, and continuous service improvement that reflects community priorities. Functions & Responsibilities Under the City's Charter, the City Council appoints the City Manager, who serves as the City Administrator. The City Manager is responsible for enforcing the City's laws and ordinances and overseeing all administrative departments, agencies, officers, and employees. Additionally, the City Manager oversees the City's budget, finances, and administrative operations, and provides policy recommendations and guidance to the City Council. Organizational Chart City Manager Assistant to the City Manager / Special Projects Coordinator Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Position Title FTE Grade FTE I Grade FTE Grade FTE Grade FTE Grade FTE Grade City Manager 1 NG 1 NG 1 NG 1 NG 1 NG 1 NG Assistant to City Manager/ Special 1 Projects Coordinator Temporary Grant Writer 1 23 1 23 1 23 1 23 1 23 1 23 T15 1 T15 - - - - - - - - Average Overtime Per Position (hours) Position Title FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 City Manager N/A N/A N/A N/A N/A N/A Assistant to City Manager/ Special 0 0 0 0 10 10 Projects Coordinator Temporary Grant Writer - - - - - - 91 Performance Measures Fiscal Year 2022 2023 2024 2025 2026* Percent of Department Goals Met 83% 86% 83% 85% 85%* *Projected Figures based on year-to-date information. "Estimated reduction COVID-19 Impact FY26 Department Goals Evaluation 1. Budget Preparation and Adoption. The FY26 annual budget was prepared and presented to the City Council in compliance with applicable financial regulations and reporting standards. The adopted budget reflects Council priorities and supports essential services. The process was completed on schedule, with input from the department and Council direction. • Achieved. 2. Employee Engagement and Development. Citywide training was provided through the Target Solutions platform, as well as Generative Al training and leadership development for Department Heads. Administration supported cross -departmental coordination through regular meetings, coordination of the Administrative Assistants Working Group, and the Annual Employee Appreciation Event. • Achieved. 3. Support Community Development. Progress continued on initiatives related to quality of life, economic development, and land use. Administration collaborated on a joint Community Development Block Grant (CDBG) application to support infrastructure improvements for low-income and senior housing and met with federal, regional, and local partners regarding residential and commercial development. Review of subdivision, utility, and infrastructure standards is ongoing. Meetings were coordinated with the Kenaitze Indian Tribe and the Salamatof Tribe. Business outreach was conducted along the Kenai Spur Highway corridor. Administration supported the completion of the Kenai bronze bear sculpture project, securing a Rasmuson Foundation Grant. The sculpture was donated to the City in November and enhances the airport as a community gateway. • Substantially Achieved. Ongoing. 4. Strengthen Communication and Public Engagement. Regular department head meetings and policy coordination supported internal communication. Administration managed the City's first statistically valid community survey since 2007, prepared the annual State of the City presentation, and coordinated development of the City's first Popular Annual Financial Report (PAFR) in partnership with Finance. Public outreach included coordinated promotions with the City's marketing consultant and the Kenai Chamber of Commerce and Visitor Center, as well as the continuation of the City's radio advertising program. The Administration also supported the transition of the Challenger Center to City ownership. • Achieved. 92 FY27 Department Goals 1. Budget Preparation and Adoption Prepare and present the annual budget to the City Council in compliance with financial regulations, reporting standards, and Council priorities. 2. Employee Engagement and Development Provide at least one professional development or training opportunity for all administrative staff to enhance efficiency, service delivery, and teamwork. 3. Support Community Development Advance community development initiatives aligned with Imagine Kenai 2030 Goals (Goals 1-3: Quality of Life, Economic Development, and Land Use) and the 2025 Community Survey, including economic development, local business growth, infrastructure improvements, and housing affordability. a) Implement at least one new policy or initiative to improve Kenai's business -friendly environment. b) Develop and present at least one development proposal to the City Council. c) Launch at least three initiatives addressing survey -identified priorities: jobs, small business support, infrastructure, and housing availability/affordability. Future Considerations The 2025 Community Survey demonstrated that Kenai residents prioritize jobs, economic development, local business support, infrastructure, and housing availability and affordability. Looking ahead, the potential Alaska LNG project could significantly impact the local economy, workforce, and infrastructure needs. The City Manager's office will continue to focus on initiatives that support business growth, job creation, and essential services while ensuring public participation and effective administration in response to these evolving opportunities and community priorities. 93 Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: City Manager Five year Original FY2025 Historical Budget Actual Average FY2026 Increase Amended Proposed (Decrease) % Budget FY2027 FY2026 Original Change $ 291,533 $ 261,948 $ 303,557 $ 303,557 $ 314,589 $ 11,032 77 15 814 814 844 30 10,782 6,612 15,177 15,177 15,685 508 4,318 3,860 4,633 4,633 4,802 169 - 271 - - - - 64,153 56,844 66,962 66,962 69,396 2,434 - 45 1,598 1,598 1,656 58 700 561 671 671 945 274 53,444 58,564 53,444 53,444 40,084 (13,360) 9,504 5,089 9,300 9,300 9,300 - $ 434,511 $ 393,809 $ 456,156 $ 456,156 $ 457,301 $ 1,145 3.63% 3.69% 3.35% 3.65% 3.63% 3.63% 40.83% (25.00%) 0.25% Maintenance and Operations 2021 Office Supplies 42 300 300 300 - - 2022 Operating & Repair Supplies - - - - 2023 Repair & Maintenance Supplies - - - - - - - 2024 Small Tools/Minor Equipment 955 1,432 1,200 1,200 1,300 100 8.33% 2026 Computer Software 1,322 1,314 1,620 1,620 2,250 630 38.89% 4531 Professional Services 37,420 60,280 60,000 60,000 95,000 35,000 58.33% 4532 Communications 1,719 1,530 2,440 2,440 2,500 60 2.46% 4533 Travel & Transportation 11,203 9,505 17,600 13,700 17,600 - - 4534 Advertising - 968 2,000 2,000 2,000 4535 Printing & Binding - - - - - 4536 Insurance - - - - - - 4537 Utilities - - - - - - 4538 Repair & Maintenance - - - - - - 4539 Rentals - - - - - - 4540 Equip. Fund Pmts. - - - - - - 4541 Postage - - - - - - 4666 Books - - - - - - 4667 Dues & Publications 1,750 1,556 1,900 1,900 1,900 - 4999 General Contingency - - - - - - - 5041 Miscellaneous 551 600 500 500 1,000 500 100.00% 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 54,920 $ 77,227 $ 87,560 $ 83,660 $ 123,850 $ 36,290 41.45% Capital Outlay & Transfers 8061 Land - - - - - - - 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers - Total Capital Outlay and Transfers $ - $ - $ - $ - $ - $ - - Department Total: $ 489,431 $ 471,036 $ 543,716 $ 539,816 $ 581,151 $ 37,435 6.89% 94 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 13 - City Manager 2024 Small Tools/Minor Equipment. Charge for 4 computer 4531 Professional Services. Marketing and tourism professional replacements. services and Strategic Plan Development. 2026 Computer Software. Includes annual fees for general office 4533 Travel & Transportation. Car allowance, training and travel software. expenses for City Manager and Assistant to City Manager. 95 City of Kenai Fiscal Year 2027 Operating Budget Fund 001 — General Fund Department 414 — Human Resources Mission The Human Resources Department is committed to developing, implementing, and continually improving human resource services, practices, and programs that support the City's goals and its employees in a fair and equitable manner. Functions & Responsibilities The Human Resources Department is responsible for directing, coordinating, and administering the City's human resources processes, functions, and activities, including recruitment and retention of qualified employees, benefits administration, employee relations, training, performance management, leadership consultation, and employment law compliance as well as providing consistent and comprehensive professional Human Resources support to employees and supervisors. Organizational Chart City Manager Human Resources Director Staffing Performance Measures Calendar Year 12022 2023 2024 Total Recruitments 26 25 22 Regular Full-time & Part-time Positions Annual Turnover Rate 21% 19% 17% Regular Full-time & Part-time Positions Average Number of Applicants g 13 14 Regular Full-time & Part-time Positions Average Number of Days to Fill No Data No Data 70 Vacant Positions *Projected Figures based on year-to-date information. 2025 2026* 27 25 19% 18% 16 15 69 68 96 FY26 Department Goals Evaluation The following goals supported Imagine Kenai: 2030 City of Kenai Comprehensive Plan Goal 4 — Provide adequate public improvements and services in Kenai, as they directly support the efficiency, effectiveness, and compliance of City operations. Conduct a review of Human Resources policies and procedures, update at least 10 key policies, and implement necessary changes with clear employee communication and training to ensure compliance and best practices. Achieved. 2. Develop and distribute a Supervisor Guidebook covering key management topics, to provide supervisors with guidance on City policies and best practices. • Achieved 3. Organize, catalog, and properly label all active and archived employee files, using RMS SIMPLE Records Manager to ensure compliance with record retention policies, improve accessibility of records, and prepare records for future digitization. • Substantially Achieved. Employee files have been organized, cataloged, and properly labeled. Entry of files into the RMS SIMPLE Records Manager has begun and will continue. FY27 Department Goals The following goals continue to support the Comprehensive Plan Goal 4 by enhancing workforce effectiveness and operational compliance. 1. Create a comprehensive HR Desk Manual documenting key processes, procedures, and responsibilities within the Human Resources Department. The manual will serve as a reference for current staff, support continuity in the event of turnover or absences, and provide a foundation for onboarding and cross -training. 2. Partner with the Alaska Public Risk Alliance (APRA) to provide supervisor training. Coordinate with APRA to offer at least two training sessions in FY27 with a goal of at least 90% supervisor participation. 3. Establish a standardized process for digitizing archived employee files and scanning them into Laserfiche, completing approximately 50-75 files per quarter, maintaining accurate indexing and compliance with retention standards. Future Considerations Ensuring continuity of operations is a key priority for the City. Human Resources can support this by documenting key processes, maintaining up-to-date procedures, and facilitating cross -training initiatives to help preserve institutional knowledge and minimize operational disruptions. The Human Resources Department is currently staffed by one employee, which meets FY27 needs. However, as recruitment, onboarding, performance evaluations, supervisor training, records management, benefits administration, and compliance responsibilities continue to grow, additional part-time support may be needed in the future to maintain coverage during absences and support ongoing operational efficiency. 97 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: Human Resources Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 111,293 $ 101,647 $ 116,855 $ 116,855 $ 122,730 $ 5,875 5.03% 0200 Overtime - - - - - - - 0250 Holiday Pay - - - - - - 0300 Leave - 37 3,134 3,134 3,286 152 4.85% 0400 Medicare 1,647 1,466 1,740 1,740 1,828 88 5.06% 0450 Social Security - - - - - - - 0500 PERS 24,484 22,365 25,708 25,708 27,001 1,293 5.03% 0600 Unemployment Insurance - 51 600 600 630 30 5.00% 0700 Workers Compensation 267 222 302 302 360 58 19.21% 0800 Health & Life Insurance 26,722 26,423 26,722 26,722 20,042 (6,680) (25.00%) 0900 Supplemental Retirement 2,325 1,686 2,325 2,325 2,325 - - Total Salaries & Benefits $ 166,738 $ 153,897 $ 177,386 $ 177,386 $ 178,202 $ 816 0.46% Maintenance and Operations 2021 Office Supplies 98 168 500 500 500 - - 2022 Operating & Repair Supplies - - - - - - - 2023 Repair & Maintenance Supplies - - - - - - - 2024 Small Tools/Minor Equipment 603 1,185 300 300 325 25 8.33% 2026 Computer Software 6,425 5,685 6,780 6,780 7,130 350 5.16% 4531 Professional Services 5,201 6,362 300 300 500 200 66.67% 4532 Communications 748 698 970 970 985 15 1.55% 4533 Travel & Transportation 4,527 2,436 5,750 5,750 5,950 200 3.48% 4534 Advertising 148 331 750 750 450 (300) (40.00%) 4535 Printing & Binding - - - - - - 4536 Insurance - - 4537 Utilities - 4538 Repair & Maintenance 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books - - - - - - 4667 Dues & Publications 475 364 600 600 549 (51) (8.50%) 4999 General Contingency - - - - - - 5041 Miscellaneous 11,703 4,049 12,000 12,000 12,000 5045 Depreciation - - - - - - - 5047 Grants to Agencies - - - - - - - Total Maint. and Operations $ 29,928 $ 21,278 $ 27,950 $ 27,950 $ 28,389 $ 439 1.57% Capital Outlay & Transfers 8061 Land - - - - - - - 8062 Buildings - 8063 Improvements 8064 Machinery & Equipment 9090 Transfers - - Total Capital Outlay and Transfers $ - $ - $ - $ - $ - $ - - Department Total: $ 196,666 $ 175,175 $ 205,336 $ 205,336 $ 206,591 $ 1,255 0.61% 98 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 14 - Human Resources 2021 Office Supplies. Miscellaneous supplies. 4534 Advertising. Advertising for Job Fair. 4531 Professional Services. Consulting. 4667 Dues & Publications. SHRM annual membership and PRH recertification exam fee. 4533 Travel & Transportation. Travel for Conference. 5041 Miscellaneous. Education Assistance Program. 99 City of Kenai Fiscal Year 2027 Operating Budget Fund 001 — General Fund Department 415— Finance Mission To provide timely, accurate, clear, and complete information and support to other city departments, citizens, and the City Council for the purpose of making informed financial decisions. Functions & Responsibilities The Finance Department is responsible for the financial and budgetary operations of the City and the operations of the City's information technology network. The Finance Department processes purchase orders, issues vendor checks, processes the citywide payroll, compiles the budget, processes all accounts receivable transactions, including the water and sewer utility bills, and invests the City's money. The department is involved in numerous day-to-day activities of City operations, including special assessments, land sales, land leases, personnel matters, insurance, pensions, and general accounting. Organizational Chart City Manager Finance Director Information Technology Manager Controller System Desktop Support Administrative Accounting Accounting Administrator Technician Assistant I Technician I Technician II Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Finance Director 1 29 1 29 1 28 1 28 1 28 1 28 Controller 1 25 1 25 1 25 1 25 1 25 1 25 23 IT Manager 1 23 1 23 .98 .98 23 .98 23 .98 23 IT System Administrator - - - - - - - 1 19 1 19 - Desktop Support Technician .5I 13 .5 13 .58 .58 15 .58 15 .58 15 15 Accounting Tech II 1 16 1 16 1 16 1 16 1 16 1 16 14 Accounting Tech 1 .5 15 .5 15 .5 .5 14 .5 14 .5 14 Administrative Assistant 1 .32 13 .32 13 .32 13 .32 13 .32 13 .32 13 T6 IT Intern .1 T6 - T6 - - T6 - T6 - T6 100 Average Overtime Per Position (hours) Position Title FY23 Actual FY24 FY25 Actual FY26 FY27 FY28 Actual Budgeted Requested Projected Finance Director N/A N/A N/A N/A N/A N/A Controller N/A N/A N/A N/A N/A N/A IT Manager 24 4 10 45 20 20 Desktop Support Technician 0 0 0 0 0 0 Accounting Tech II 0 0 2.76 0 0 0 Accounting Tech I 0 0 4 10 10 10 Administrative 0 0 0 0 0 0 Assistant I Performance Measures Fiscal Year 2022 2023 2024 2025 2026* Purchase Orders 2,279 2,392 2,490 2,546 2,475 Vendor Checks 2,908 3,279 3,180 2.953 2,796 Payroll Checks 3,534 4,580 4,625 4,135 3,842 Utility Customers 2,033 2,044 2,050 2,080 2,095 Paper Invoices 21,321 20,988 20,712 19,886 19,711 Electronic Invoices 4,816 5,380 5,868 6,504 6,955 Customers on AutoPay 897 919 1,000 1,025 1,046 Federal Grants 24 13 12 11 9 State Grants 5 7 7 7 6 FTE's per IT Staff 69 1 76 76 76 48 "Projected Figures based on year-to-date information. FY26 Department Goals Evaluation 1. The IT department will evaluate the cybersecurity assessment, recommend, and implement cybersecurity improvements. • Achieved. The cybersecurity plan is on track. We selected a vendor to develop and document a Disaster Recovery Plan. Policies are being developed. Continual ongoing project. 2. Complete the automation of the P-card process and update the P-card policy to support the process. • Not Achieved. This was paused until our banking services RFP process is completed. This will allow us to ensure our system aligns with the selected bank. Continual ongoing project. 3. Complete the documentation of 10 department policies and procedures in FY26, with a goal of completing the remaining policies and procedures in FY27. • Achieved. FY27 Department Goals 1. Implement changes in cybersecurity improvements, completing the FY26 goals outlined in the Cyber Security Remediation Plan. 2. Complete the automation of the P-card process and update the P-card policy to support the process. 3. Complete the documentation of 10 department policies and procedures in FY27. 101 Future Considerations The Finance Department currently operates with Accounting Technician positions and a Controller, without an intermediate professional accounting -level position. As financial reporting requirements, internal control expectations, and analytical responsibilities continue to expand, the Department will need to evaluate adding an Accountant position to provide professional -level accounting support between the Accounting Technicians and the Controller. Establishing this position would strengthen financial oversight, enhance the Department's capacity to perform complex reconciliations and financial reporting functions, and support operational continuity and succession planning. While funding for this position is not proposed in the current budget cycle, it may be considered in future budget discussions as the City evaluates long-term staffing needs within the Finance Department. 102 Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: Finance Five year Original Increase FY2025 Historical Budget Amended Proposed (Decrease) % Actual Average FY2026 Budget FY2027 FY2026 Original Change $ 520,849 $ 470,518 $ 508,317 $ 508,317 $ 627,148 $ 118,831 23.38% 1,059 979 215 215 1,959 1,744 811.16% 18,707 8,971 16,587 16,587 21,793 5,206 31.39% 7,688 6,828 7,614 7,614 9,439 1,825 23.97% 727 472 - - - - - 112,021 101,235 111,877 111,877 138,404 26,527 23.71% - 217 2,626 2,626 3,255 629 23.95% 934 877 1,322 1,322 1,859 537 40.62% 126,288 124,066 125,350 125,350 116,093 (9,257) (7.38%) 18,825 10,725 17,150 17,150 19,397 2,247 13.10% $ 807,098 $ 724,888 $ 791,058 $ 791,058 $ 939,347 $ 148,289 18.75% Maintenance and Operations 2021 Office Supplies 2,919 3,337 5,000 5,000 5,000 - - 2022 Operating & Repair Supplies - - - - - 2023 Repair & Maintenance Supplies - - - - - - - 2024 Small Tools/Minor Equipment 4,747 5,357 4,900 5,232 13,275 8,375 170.92% 2026 Computer Software 51,359 39,713 59,585 59,585 61,705 2,120 3.56% 4531 Professional Services 105,693 78,441 109,954 109,954 128,850 18,896 17.19% 4532 Communications 2,625 2,803 3,660 3,660 4,470 810 22.13% 4533 Travel & Transportation 6,828 7,512 19,430 19,430 21,690 2,260 11.63% 4534 Advertising 542 584 800 800 800 - - 4535 Printing & Binding 893 221 7,500 7,500 7,500 4536 Insurance - - - - - - 4537 Utilities 4538 Repair & Maintenance 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books - - - - - 4667 Dues & Publications 630 952 2,040 2,040 2,040 4999 General Contingency - - - - - 5041 Miscellaneous 56 158 500 500 500 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 176,292 $ 139,078 $ 213,369 $ 213,701 $ 245,830 $ 32,461 15.21% Capital Outlay & Transfers 8061 Land - 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers - Total Capital Outlay and Transfers $ - $ - $ - $ - $ - $ - - Department Total: $ 983,390 $ 863,966 $ 1,004,427 $ 1,004,759 $ 1,185,177 $ 180,750 18.00% 103 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 15 - Finance 2024 Small Tools/Minor Equipment. Charge for (7) seven computers and miscellaneous other items. Accounts payable replacement printer. 4533 Travel & Transportation. Car allowance. Funds for continuing education of department staff including travel for the City's Finance Director to annual conferences, IT Manager and Help Desk Tech to specialized training and one accounting staff travel to annual Caselle user conference. Laserfiche annual conference travel. 2026 Computer Software. Includes annual fees for general office 4535 Printing & Binding. City PAFR (Popular Annual Fina software's, Caselle financial management software, Laserfiche LSAP Report). software and various software's to support the City's IT Manager. Also includes IT subscriptions for software, Adobe, Microsoft and Server Cals and Laserfiche LSAP costs. 4531 Professional Services. FICA Administration fees, online sales tax commission fees and Laserfiche support. Special Project: Website Redesign $10,000. 4667 Dues & Publications. Includes funds for professional organization dues for the Finance Director and Controller and certification fees for the Annual Budget and Annual Comprehensive Financial Report. 104 City of Kenai Fiscal Year 2027 Operating Budget Fund 001 — General Fund Department 416 — Land Administration Mission To coordinate, promote, implement, and conserve City land and resources consistent with the City's priorities and public policy. Functions & Responsibilities City -owned lands and tidelands are managed pursuant to Kenai Municipal Code, Title 21 — City Airport Reserve Lands and Title 22 City -Owned Lands through the City Manager's Office in coordination with the Planning and Zoning Department. Organizational Chart City Manager Planning Director Administrative Assistant III Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Pro osed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Planning Director N/A N/A N/A N/A N/A N/A .05 24 .05 24 .05 24 Administrative N/A N/A N/A N/A N/A N/A 15 15 15 Assistant III .5 .75 .75 Performance Measures Fiscal Year Existing Leases New Leases 2022 2023 2024 2025 2026* 19 22 22 24 20 1 0 2 0 0 Lease Amendments/Extensions 2 2 4 0 0 Lease Terminations 0 0 0 0 1 Land Acquisitions 4 0 2 0 0 Land Sales/Donations 4 0 2 12 0 Special Use Permits 4 4 Shore Fisheries 10 10 5 5 2 10 10 10 Note: General Fund Land does not include Airport Lands. *Projected Figures based on year-to-date information 105 Airport Fund Leases Fiscal Year 2022 2023 2024 2025 2026* Existing Leases 65 42 42 43 42 New Leases 5 0 4 2 2 Lease Amendments/Extensions - 6 4 0 0 Lease Terminations Land Acquisitions Development Incentives Applications Land Sales Special Use Permits 1 0 2 2 2 1 0 1 0 1 3 1 0 0 0 0 2 3 0 4 2 1 2 2 0 1 4 *Projected Figures based on year-to-date information. FY26 Department Goals Evaluation 1. Create an interactive GIS map (and a printed companion map) of all city -owned properties identified in the Land Management Plan with detailed information on each parcel. • Achieved. This map is also being used to determine subsurface mineral rights and track which City -owned lands have been released by the FAA to date. Expected final draft in Spring 2026. 2. Recreate the Airport Reserve Lease App (GIS map) of available lease parcels. • Not Achieved. Awaiting the final Airport Layout Plan from the consultant working on the Airport Master Plan. One property is available as of February 2026. 3. Create and update a comprehensive GIS map of all city lands to support internal operations, project planning and management, and reporting. • Achieved. This map is also being used to determine subsurface mineral rights and track which City -owned lands have been released by the FAA to date. Expected final draft in Spring 2026. 4. Review and update the 2016 Comprehensive Plan and Official Zoning Map to ensure compatibility and consistency between the Land Use Plan and Land Management Plan. • Achieved. Rezoning efforts in 2025 and 2026 are moving the City toward better alignment. 5. Consider incentives to encourage infill and redevelopment of vacant properties and buildings and ensure they support the intent of Code for City -owned lands and put findings into a report to be submitted to the Planning & Zoning Commission. • Not Achieved. Deferred goal to FY2027. 6. Strategize actions for undeveloped subdivisions, including the examination of parcel layouts that may no longer be optimal, and strategize ways to attract development of unfinished subdivisions and put findings into a report to be submitted to the Planning & Zoning Commission. • Partially Achieved. Working with the developer to make Dena'ina Point subdivision a viable project. 106 7. Market the availability of parcels for lease and communicate development incentives and leases with option to purchase by updating the City Lease Lands Brochure. • Partially Achieved. Need drone aerial imagery for newly updated brochure. Anticipated completion in Spring or Summer 2026, may be completed in early FY2027, pending weather and drone availability. 8. Configure an existing software subscription to manage leases and implement a solution to streamline the City's process of lease management. • Not Achieved. The lease database has been reconfigured and updated. Once the database is completed, automated reminders will be set up for the Lands Management Analyst and the Planning Director in the Monday. com task management software. FY27 Department Goals 1. Complete & Implement new Lease Database with hyperlinks to fully digitized lease files. 2. Create an interactive map for available lands within the City of Kenai. 3. Review and suggest updates to Titles 21 & 22. Future Considerations An update to the City of Kenai Land Management Inventory and Land Management Plan is needed to ensure an accurate picture of what lands the city manages. Additional considerations would include an economic development webpage showcasing city -owned properties, as well as other privately held vacant lands ready for improvements or divestment. Further work is needed to ensure that the Kenai Municipal Airport and the City of Kenai Planning & Zoning Department have accurate, up-to-date mapping and land records. This will streamline project planning processes and make data sharing easier during the development of various Master Plans and the upcoming update to the City's Comprehensive Plan. 107 City of Kenai Fiscal Year 2027 Operating Budget Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Maintenance and Operations 2021 Office Supplies 2022 Operating & Repair Supplies 2023 Repair & Maintenance Supplies 2024 Small Tools/Minor Equipment 2026 Computer Software 4531 Professional Services 4532 Communications 4533 Travel & Transportation 4534 Advertising 4535 Printing & Binding 4536 Insurance 4537 Utilities 4538 Repair & Maintenance 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 4667 Dues & Publications 4999 General Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies Fund: 001 - General Fund Department: Land Administration Five year Original Increase FY2025 Historical Budget Amended Proposed (Decrease) % Actual Averaqe FY2026 Budget FY2027 FY2026 Original Change $ $ $ 37,285 $ 37,285 $ 55,655 $ 18,370 49.27% 574 574 1,012 438 76.31 % 549 549 821 272 49.54% 8,203 8,203 12,244 4,041 49.26% 189 189 283 94 49.74% - - 96 96 162 66 68.75% - - 14,697 14,697 16,033 1,336 9.09% 2,441 2,441 1,860 (581) 23.80%) 64,034 $ 64,034 $ 88,070 $ 24,036 37.54% 79 200 200 200 - - 70 10,000 - - - - - 1,000 1,000 - 45,958 29,679 12,000 50,960 32,000 20,000 166.67% - - - 200 720 720 - - - - - 180 180 - 343 233 250 2,050 2,000 1,750 700.00% - 59 250 250 750 500 200.00% - - - 16,000 16,000 16,000 - 1,135 957 3,300 56,980 89,450 86,150 2,610.61% - - - 4,770 - - 114 214 200 200 250 50 25.00% 19,846 3,969 30,000 36,458 30,000 Total Maint. and Operations $ 67,396 $ 35,260 $ 46,200 $ 178,068 $ 172,550 $ 126,350 273.48% Capital Outlay & Transfers 8061 Land 2,425 - 8062 Buildings - 8063 Improvements 8064 Machinery & Equipment 9090 Transfers - - Total Capital Outlay and Transfers $ - $ 2,425 $ - $ - $ - $ - - Department Total: $ 67,396 $ 37,685 $ 110,234 $ 242,102 $ 260,620 $ 150,386 136.42% 108 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 16 - Land Administration 4531 Professional Services. Cost of surveys and subdivisions, and lease recordings. 4535 Printing and Binding. Cost of Noticing signs. 4536 Insurance. Challenger Center insurance 4537 Utilities. Includes Peninsula Oilers Water and Sewer and Challenger Center utilities. 5041 Miscellaneous. Recording fees for leased parcels. 5047 Grant to Other Agencies. Storefront and Improvement grants. 109 City of Kenai Fiscal Year 2027 Operating Budget Fund 001 — General Fund Department: 418 — Non -Departmental Mission To provide for goods and services and account for expenditures that benefit all departments of the City's General Fund and are not included in or accounted for in another specific department. Functions & Responsibilities The non -departmental budget covers administrative expenditures not accounted for by any specific department. It includes the day-to-day expenses of City operations, including insurance, utilities, operating supplies, repairs and maintenance, printing and binding, City Hall janitorial services, postage for City Hall, and City-wide information technology costs, including software and system maintenance. The non -departmental budget also includes rent to the Airport Land System for General Fund use of the City Shop property, Contingency and transfers to other funds for debt service, senior citizen programs, and capital projects funded by the City's General Fund. Organizational Chart City Manager Janitor Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Janitor .30 3 .30 5 .35 6 .35 6 .70 6 .70 6 110 City of Kenai Fiscal Year 2027 Operating Budget Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Fund: 001 - General Fund Department: Non -Departmental Five year Original FY2025 Historical Budget Actual Average FY2026 Increase Amended Proposed (Decrease) % Budget FY2027 FY2026 Original Change $ 11,323 $ 9,298 $ 13,919 $ 13,919 $ 28,028 $ 14,109 169 137 202 202 407 205 724 587 863 863 1,738 875 348,765 381,160 541,742 541,742 730,882 189,140 - 4 70 70 140 70 170 128 219 219 462 243 $ 361,151 $ 391,314 $ 557,015 $ 557,015 $ 761,657 $ 204,642 101.37% 101.49% 101.39% 34.91 % 100.00% 110.96% 36.74% Maintenance and Operations 2021 Office Supplies 403 172 500 500 500 - - 2022 Operating & Repair Supplies 861 2,826 500 500 500 - - 2023 Repair & Maintenance Supplies 1,230 773 1,500 1,500 1,500 - - 2024 Small Tools/Minor Equipment 9,835 8,798 7,000 18,200 7,000 - - 2026 Computer Software 59,858 30,945 99,700 86,700 64,700 (35,000) (35.11%) 4531 Professional Services 1,097 19,051 43,000 61,000 3,000 (40,000) (93.02%) 4532 Communications 978 941 20,980 20,980 1,430 (19,550) (93.18%) 4533 Travel & Transportation (9,528) (10,042) - - - 4534 Advertising 5,788 1,158 14,000 14,000 14,000 4535 Printing & Binding 5,159 6,319 7,500 7,500 7,500 - - 4536 Insurance 381,636 342,027 473,567 473,567 504,693 31,126 6.57% 4537 Utilities 47,345 44,316 48,160 48,160 50,259 2,099 4.36% 4538 Repair & Maintenance 1,738 1,816 2,280 2,280 2,280 - - 4539 Rentals 68,234 63,522 69,735 69,735 71,199 1,464 2.10% 4540 Equip. Fund Pmts. 44,925 40,438 47,532 47,532 47,532 - - 4541 Postage 4,598 4,421 8,000 8,000 8,000 4666 Books - - - - - 4667 Dues & Publications - - - - - 4999 General Contingency - - 90,000 87,792 90,000 - - 5041 Miscellaneous 9,338 8,534 7,500 11,400 10,000 2,500 33.33% 5045 Depreciation - - - - - - - 5047 Grants to Agencies - 154,200 Total Maint. and Operations $ 633,495 $ 720,215 $ 941,454 $ 959,346 $ 884,093 $ (57,361) 6.09%) Capital Outlay & Transfers 8061 Land - 8062 Buildings 8063 Improvements - - - 8064 Machinery & Equipment - 7,812 23,000 24,800 - (23,000) (100.00%) 9090 Transfers 1,140,730 1,943,032 2,412,022 2,413,134 2,757,125 345,103 14.31% Total Capital Outlay and Transfers $ 1,140,730 $ 1,950,844 $ 2,435,022 $ 2,437,934 $ 2,757,125 $ 322,103 13.23% Department Total: $ 2,135,376 $ 3,062,373 $ 3,933,491 $ 3,954,295 $ 4,402,875 $ 469,384 11.93% fiffil City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 18 - Non -Departmental 0500 PERS. To account for the General Fund's share of State of Alaska Public Employee's Retirements System on -behalf funding. 2023 Repair & Maintenance Supplies. Janitorial supplies 2024 Small Tools/Minor Equipment. Network miscellaneous hardware and computer items. 2026 Computer Software. Includes city-wide annual fees for network device licensing. 4535 Printing and Binding. City Hall copier service agreement. 4536 Insurance. For the purchase of general liability, property, auto, heavy equipment, physician sponsor, marine, and other City insurances. 4538 Repair & Maintenance Service. City Hall carpet cleaning, window cleaning and security. 4539 Rentals. Rental of Airport Fund property (Tract A, FBO Subdivision), $40,961 and the Automated Flight Service Station lot, $30,238. 4531 Professional Services. Network technical support. 5041 Miscellaneous. Employee Appreciation. Cybersecurity managed detection and response service. 4532 Communications. Three phones and City Hall elevator phone. 9090 Transfers. To account for fund transfers to other funds of the City for operations or capital projects. Debt Service $ 125,375 4534 Advertising. City-wide radio advertising. Senior Citizen Fund for operations 251,750 Capital Plan 2,380,000 $ 2,757,125 ISM City of Kenai Fiscal Year 2027 Operating Budget Fund 001 — General Fund Department 419 — Planning and Zoning Mission To assist the residents of Kenai in achieving an orderly and efficient pattern of growth that promotes economic development, enhances the quality of life, aesthetics, and environment in the City, preserves historic resources, and conforms to the City's Comprehensive Plan and the City's Zoning Code. Functions and Responsibilities The Planning and Zoning Department determines the City's current and future planning needs. The Department is responsible for all functions, operations, activities, and personnel relevant to planning and zoning, floodplain management, GIS data, code enforcement, land use and permitting applications, and land sale and lease administration. The Department provides administrative support and acts as staff liaison to the Planning & Zoning Commission. The Planning & Zoning Department also maintains the City's official zoning and land -use maps. Organizational Chart Administrative Assistant III Staffing City Manager Planning Director Administrative Assistant II FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Planning Director .7 23 .7 24 .7 24 .65 24 .65 24 .65 24 Administrative Assistant III 1 15 1 15 1 15 .5 15 .25 15 .25 15 Administrative Assistant II .5 14 .5 14 .5 14 .6 14 .6 14 Planning & Zoning 7 NG 7 NG 7 NG 7 NG 7 NG 7 NG Commissioner Average Overtime Per Position (hours) Position Title FY23 Actual FY24 Actual Planning Director N/A N/A Administrative Assistant III 3.5 0 Planning & Zoning N/A N/A Commissioner FY25 Actual Projected FY26 Proposed FY27 Projected FY28 N/A N/A N/A N/A 3 0 0 0 N/A N/A N/A N/A 113 Performance Measures Fiscal Year Conditional Use Permits 2022 2023 2024 2025 2026* 10 7 8 9 7 Preliminary Plats 6 11 12 20 3 Others, including Site Plan 23 18 24 3 3 Total Permits Code Violations Kenai Municipal Code Changes 39 36 44 32 13 9 1 34 25 45 27 3 4 3 1 *Projected Figures based on year-to-date information. FY26 Department Goals Evaluation 1. Updates to the Kenai Municipal Code, specifically Title 14 (and others as needed), to address inconsistencies and ambiguity within the Sign Code and Conditional Use Permit process. • Partially Achieved. Planning & Zoning Commission initiated review of CUP process. Other changes were made due to the Harbor Commission's sunset. 2. Review existing Conditional Use Permits to determine the feasibility and appropriateness of rezoning areas of the City where development has already occurred. This will reduce the administrative burden on business owners and City personnel. • Achieved. Rezoning efforts along N. Forest Drive and Redoubt Avenue eliminated CUPs. 3. Initiate work on updating the City of Kenai Hazard Mitigation Plan. • Not Achieved. The federal government eliminated the grant funding program used for this effort. No additional funding was made available. 4. Prepare staff for the upcoming FY27 Comprehensive Plan update process. • Achieved. Zoning changes and elimination of split zones are complete. 5. Develop an initial Economic Development framework to guide efforts for future investments in the community. • Not Achieved. Defer this goal to FY2027. 6. Continue to progress the Waterfront Redevelopment project by seeking grants for the design of potential alternatives for development. • Not Achieved. Defer this goal to FY2027. ME FY27 Department Goals 1. Undertake a full review of the Code Enforcement program. Ensure compliance with internal policies and make suggestions for Kenai Municipal Code changes, if needed. 2. Review and update the Conditional Use Permitting process in conjunction with the Planning & Zoning Commission. 3. Implement a new records retention policy and eliminate duplicative records. Strive for a less paper -based department, and continue to streamline/automate procedures where possible. 4. Review public notification processes to ensure the widest possible distribution to the residents of Kenai. 5. Review and suggest updates to Title 14. 6. Develop a new Comprehensive Plan for the City of Kenai with a horizon year of 2050. Future Considerations The City's Comprehensive Plan is now 10 years old and needs to be updated to reflect the community's evolving needs. This plan will likely be headed up by a consultant and augmented by Planning Department staff, with initial efforts kicking off in Summer 2026. Based on feedback from the City's residents in a survey, the development of a new city economic development strategy is also being considered to bolster growth over the next few years. A full review of KMC Titles 14, 21, & 22 is recommended to ensure development is not stymied by vague or conflicting regulations. Also, all forms and applications will need to be reviewed and updated to streamline development processes. 115 City of Kenai Fiscal Year 2027 Operating Budget Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Fund: 001 - General Fund Department: Planning and Zoning Five year Original Increase FY2025 Historical Budget Amended Proposed (Decrease) % Actual Average FY2026 Budget FY2027 FY2026 Original Change $ 170,617 $ 132,473 $ 133,271 $ 133,271 $ 127,310 $ (5,961) (4.47%) 133 68 - - - - 4,988 3,842 2,044 2,044 1,411 (633) (30.97%) 2,599 1,944 1,962 1,962 1,866 (96) (4.89%) 515 829 - - - - 33,389 27,122 29,320 29,320 28,008 (1,312) (4.47%) - 57 677 677 643 (34) (5.02%) 410 286 342 342 368 26 7.60% 72,149 50,264 44,091 44,091 18,037 (26,054) (59.09%) 6,702 2,792 5,746 5,746 4,357 (1,389) 24.17%) $ 291,502 $ 219,677 $ 217,453 $ 217,453 $ 182,000 $ (35,453) 16.30%) Maintenance and Operations 2021 Office Supplies 359 493 500 500 1,000 500 100.00% 2022 Operating & Repair Supplies - 277 500 500 1,000 500 100.00% 2023 Repair & Maintenance Supplies - - - - - - - 2024 Small Tools/Minor Equipment 2,839 2,028 2,100 2,100 4,300 2,200 104.76% 2026 Computer Software 9,311 5,169 9,090 9,090 6,320 (2,770) (30.47%) 4531 Professional Services 1,007 2,056 2,500 2,500 2,500 - 4532 Communications 946 802 2,190 2,190 1,515 (675) (30.82%) 4533 Travel & Transportation 10,677 5,310 8,360 8,360 8,180 (180) (2.15%) 4534 Advertising 2,856 2,837 2,500 2,500 3,800 1,300 52.00% 4535 Printing & Binding 1,347 637 2,500 2,500 2,250 (250) (10.00%) 4536 Insurance - - - - - - - 4537 Utilities 4538 Repair & Maintenance 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books - - - - - - - 4667 Dues & Publications 898 924 1,300 1,300 1,410 110 8.46% 4999 General Contingency - - - - - - - 5041 Miscellaneous 191 3,098 500 500 500 5045 Depreciation - - - - - - 5047 Grants to Agencies 7,108 3,422 - 3,542 - - - Total Maint. and Operations $ 37,539 $ 27,053 $ 32,040 $ 35,582 $ 32,775 $ 735 2.29% Capital Outlay & Transfers 8061 Land - 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers - - Total Capital Outlay and Transfers Department Total: $ 329,041 $ 246,730 $ 249,493 $ 253,035 $ 214,775 $ (34,718) 13.920/6) 116 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 19 - Planning & Zoning 2024 Small Tools/Minor Equipment. Charge for (4) four computer (2) iPad replacements, and office chair replacements. 4531 Professional Services. Tow services for junk/abandoned vehicles. 4533 Travel & Transportation. Includes AKAPA Conference travel fc department staff and planning commissioners training. Car allowance. 4667 Dues & Publications. APA Association dues and publications, continuing education, miscellaneous subscriptions and dues. fifin City of Kenai Fiscal Year 2027 Operating Budget Fund 001 - General Fund Department 420 - Safety Mission The Safety department ensures that both the public and City employees are protected from potential hazards. Functions & Responsibilities Maintaining safe and healthy working conditions and fostering a culture focusing on awareness, open communication, safety education and supervision, and safe working methods. The Public Works Director is responsible for planning and directing the implementation and administration of the City Safety Program, which trains employees and keeps them informed about workplace safety and health, as well as current safety issues, rules, and regulations. Safety is the responsibility of all employees. Staffing P< N/A FY23 Actual FY24 Actual Projected FY25 Proposed FY26 Projected FY27 isition Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Performance Measures Fiscal Year 2022 Workers Compensation Claims 16 OSHA 300 Cases 6 Total Cases of Days Away from Work 4 Total cases of Days of Job Transfer or 0 Restriction Safety Committee Meetings (annual) 0* 2023 2024 2025 2026** 18 7 9 3 8 4 5 1 3 2 2 1 2 2 2 0 4 0 4 3 *COVID affected the normal schedule; the lack of a Building Official affected scheduled meetings **Year-to-date figures as of March 31. 2026 FY26 Department Goals Evaluation 1. Qualify for full safety incentives from the new insurance provider and revise the safety program to meet their requirements • Achieved. Safety Meetings are occurring, and necessary employee training is being completed. 2. Develop policy and procedure for accident reporting, near -miss safety reporting, and updating the SIDS database for departments/buildings. • Partially Achieved. New SDS software is being implemented for updating the SDS database. Policies and procedures to be developed. MU-1 FY27 Department Goals 1. Qualify for full safety incentives from the new insurance provider and revise the safety program to meet their requirements. This will support Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 2 — Provide economic development to support the fiscal health of Kenai. 2. Develop policy and procedure for accident reporting, near -miss safety reporting, and updating the SDS database for departments/buildings. Future Considerations Reviewing the current setup with the Safety Manager role being in the Building Official job description. The Safety Manager role may be better suited to a position in Utilities, Streets, Shop, or Building Maintenance. HE City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: Safety Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ $ $ $ $ $ 0200 Overtime - 0250 Holiday Pay - 0300 Leave - 0400 Medicare - 0450 Social Security - 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement - Total Salaries & Benefits Maintenance and Operations 2021 Office Supplies - - 2022 Operating & Repair Supplies 39 2023 Repair & Maintenance Supplies - - - - - 2024 Small Tools/Minor Equipment 383 77 500 500 500 2026 Computer Software - - - - - 4531 Professional Services 1,691 1,293 2,100 2,100 2,100 4532 Communications - - - - - 4533 Travel & Transportation 727 145 750 750 750 4534 Advertising - - - - - 4535 Printing & Binding - - - - - 4536 Insurance - - - - - - 4537 Utilities - - - - - - 4538 Repair & Maintenance - - - - - - 4539 Rentals - - - - - - 4540 Equip. Fund Pmts. - - - - - - 4541 Postage - - - - - - 4666 Books - - 300 300 300 - 4667 Dues & Publications - - - - - 4999 General Contingency - - - - 5041 Miscellaneous - - - - 5045 Depreciation - - - 5047 Grants to Agencies - - - - - - Total Maint. and Operations $ 2,801 $ 1,554 $ 3,650 $ 3,650 $ 3,650 $ - Capital Outlay & Transfers 8061 Land - - - - - - 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers - Total Capital Outlay and Transfers $ - $ - $ - $ - $ - $ - Department Total: $ 2,801 $ 1,554 $ 3,650 $ 3,650 $ 3,650 $ - 120 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 20 - Safety 2024 Small Tools & Minor Equipment. Ice cleats, hard hats and vests. 4531 Professional Services. Employee random drug testing. 4533 Transportation. Travel to AMLJIA Safety/Risk conference. 4666 Books. Safety literature. `PAI City of Kenai Fiscal Year 2027 Operating Budget Fund 001 -General Fund Department 421 - Police Mission The Department's mission, together with the community of Kenai, is to make the City a place where all people live safely and without fear. Functions & Responsibilities In 2022, the Police Department became accredited, and in 2025, it was reaccredited by the Northwest Accreditation Alliance. The accreditation process ensures that the agency operates in accordance with "Best Practices" for police agencies. A recent community survey identified "Keeping the community safe" as the most important service provided by the City. Survey results also showed a high level of satisfaction with these services, underscoring the community's importance of public safety and the Department's responsibility to continue meeting those expectations. The Kenai Police Department provides police protection to residents within Kenai City limits and works cooperatively with other agencies to provide police services beyond the city limits. The Department is responsible for supervising the City's 911 communications and animal control centers and their staff. Kenai police officers enforce traffic laws, conduct routine preventive patrols, and respond to crimes in progress. After initial contact by patrol officers, investigators may be requested to respond to crimes against persons and property and provide assistance to victims and witnesses. Outreach programs and presentations are conducted year-round in order to strengthen community relations and educate the public on crime prevention. When staffing allows, a school resource officer participates in school -based activities designed to prevent criminal activity among juveniles and inform youth on the role of law enforcement in the community. The Department also plays a significant role in the safety and operations of the Kenai River Dipnet Fishery. This is accomplished with the assistance of Temporary Enforcement Officers. Organizational Chart City Manager Police Chief �__( Administrative Assistant III Police Lieutenant Administrative Assistant I Police Sergeant (3) Police Officer (13) Temporary (Enforcement Officer (5) `wtl Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Pro osed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE I Grade FTE Grade FTE Grade Police Chief 1 28 1 28 1 28 1 28 1 28 1 28 Lieutenant 1 27 1 27 1 27 1 27 1 27 1 27 Sergeant 3 24 3 24 3 24 3 24 3 24 3 24 Officer 13 21 13 21 13 21 13 21 13.5 21 13.5 21 Administrative Assistant III 1 15 1 115 1 15 1 1 15 1 1 15 11 15 Administrative Assistant I - - - - - - .35 13 .35 13 .35 13 Temporary Enforcement 85 T8 .60 T8 .60 Officer Janitor .30 3 .30 5 .30 T8 .60 T8 .56 T8 .56 T8 6 .30 6 .30 6 .35 6 Average Overtime Per Position (hours) Position Title FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Chief N/A N/A N/A N/A N/A N/A Lieutenant N/A N/A N/A N/A N/A N/A Sergeant 394 347 585 500 300 300 Officer 1,591 1,713 2,466 1,650 1,547 1,547 Administrative Assistant 1 0 0 0 0 Administrative Assistant III 0 27.5 35.5 0 0 0 Temporary Enforcement Officer 291 5 5 0 0 0 Performance Measures Fiscal Year 2022 7,231 2023 6,950 2024 6,178 2025 6,282 2026* 6,750 Total Police Service Calls Total Motor Vehicle Collisions 261 270 240 186 220 Property Crime Reports' 177 144 140 164 150 D U I Arrests Training hours per sworn officer Traffic Contacts Patrol Hours 87 60 2,605 5,535 72 80 2,700 6,000 79 92 3,115 6,682 47 50 80 2,400 83 1,849 6,113 6,500 * Projected Figures based on year-to-date information. 'Property Crimes, including reported: Burglary, Theft, and Vehicle Theft 'Officer Training hours include all training except basic academy, lateral academy, and FBI Academy. FY26 Department Goals Evaluation The Police Department will become re -accredited through the Northwest Accreditation Alliance. • Achieved. On September 9, 2025, the Kenai Police Department became re -accredited for the next three years. 2. The Police Department will train and incorporate a new Administrative Assistant position in a manner that creates more efficiency and backup to the current Evidence Custodian's duties. • Achieved. The Department hired and incorporated a 14-hour-per-week administrative assistant primarily to assist with transmitting and documenting electronic legal discovery items. This position has been instrumental amid ongoing changes to that process by the State Department of Law. 123 3. The Police Department will meet with local retailers and collaborate with them on initiatives to reduce shoplifting. • Achieved. The Police Department conducted a shoplifting enforcement operation with Home Depot. There was significant coordination with other law enforcement agencies and with Home Depot security from Anchorage. The operation successfully arrested shoplifters and deterred shoplifting in the area. Additional shoplifting enforcement operations are anticipated. FY27 Department Goals 1. The Police Department will expand its drone program to include indoor drone operations by incorporating new equipment and specialized training, building on the successful development and implementation of its outdoor drone program over the past several years. This will support Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 4 — Provide adequate public improvements and services in Kenai. 2. The Police Department will establish a goal for patrol officers to achieve 28% "available time" for the year, an increase from approximately 26% last year. "Available time" is defined as time spent actively patrolling rather than working on cases, attending training, or performing administrative duties. Achieving this goal will require improved operational efficiency and deliberate prioritization of patrol activities. The intended outcome is to deter crime, enhance roadway safety, and maintain a visible presence that promotes a sense of security among residents. This will support Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 4 — Provide adequate public improvements and services in Kenai. 3. The Police Department will prepare for an upcoming transition in department leadership through deliberate planning, targeted training, and the structured transfer of responsibilities in a manner that ensures operational continuity and maintains public trust. This effort is necessary because a majority of the department's leadership positions (three of five) are currently held by individuals who will be eligible to retire in FY27. This will support Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 4 — Provide adequate public improvements and services in Kenai. Future Considerations Adapting to changes in technology. The Alaska Department of Law is transitioning to Evidence.com for digital evidence management and discovery, and the Alaska State Troopers are making a similar transition. The Police Department currently operates multiple systems, including WatchGuard in -car cameras, Axon body -worn cameras, and a separate digital evidence storage platform. Maintaining multiple systems is increasingly complex and labor-intensive, and each platform continues to evolve. Over the long term, the Department will need to evaluate and potentially transition to a single, integrated digital evidence system that is compatible with State systems. This transition is expected to involve significantly increased annual costs. The City is currently conducting a consultant -led study to evaluate options for a new or renovated public safety building. As this process continues, the City will need to assess potential solutions to address the challenges posed by the aging facility and determine an appropriate course of action. In addition to the City's broader evaluation of workforce impacts associated with a potential large- scale project (Alaska Natural Gas Line), it will be important to assess the potential effects on public safety services and police staffing. Given the extended time required to recruit, hire, and train a police officer, advance planning will be necessary to ensure adequate staffing levels are maintained. 124 City of Kenai Fiscal Year 2027 Operating Budget Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Fund: 001 - General Fund Department: Police Five year Original Increase FY2025 Historical Budget Amended Proposed (Decrease) % Actual Average FY2026 Budget FY2027 FY2026 Original Change $ 1,926,174 $ 1,652,197 $ 2,046,270 $ 2,046,270 $ 2,200,865 $ 154,595 7.55% 193,478 132,028 133,423 133,423 148,877 15,454 11.58% 94,325 76,125 102,507 102,507 109,990 7,483 7.30% 51,159 38,986 73,876 73,876 75,618 1,742 2.36% 32,331 26,911 34,163 34,163 36,763 2,600 7.61% 2,438 1,906 4,067 4,067 3,676 (391) (9.61 %) 480,987 403,023 488,981 488,981 528,094 39,113 8.00% - 881 11,780 11,780 12,677 897 7.61% 57,486 46,104 64,899 64,899 79,633 14,734 22.70% 507,718 455,575 507,718 507,718 370,777 (136,941) (26.97%) 60,130 39,816 60,838 60,838 63,414 2,576 4.23% $ 3,406,226 $ 2,873,552 $ 3,528,522 $ 3,528,522 $ 3,630,384 $ 101,862 2.89% Maintenance and Operations 2021 Office Supplies 785 818 1,250 1,250 1,250 - - 2022 Operating & Repair Supplies 78,967 82,179 92,350 92,350 103,635 11,285 12.22% 2023 Repair & Maintenance Supplies 332 529 600 600 600 - - 2024 Small Tools/Minor Equipment 45,969 44,194 32,450 35,467 33,900 1,450 4.47% 2026 Computer Software 13,517 13,836 30,200 30,200 22,870 (7,330) (24.27%) 4531 Professional Services 17,482 16,130 24,600 24,600 26,000 1,400 5.69% 4532 Communications 14,929 14,969 18,790 18,790 19,480 690 3.67% 4533 Travel & Transportation 25,905 34,307 48,500 48,500 50,500 2,000 4.12% 4534 Advertising 755 251 1,000 1,000 1,000 - - 4535 Printing & Binding 911 1,196 2,500 2,500 2,500 4536 Insurance - - - - - - - 4537 Utilities 43,346 43,350 50,809 50,809 51,011 202 0.40% 4538 Repair & Maintenance 3,570 3,834 9,500 9,500 9,500 - - 4539 Rentals - - - - - - 4540 Equip. Fund Pmts. 83,164 83,521 90,099 90,099 89,610 (489) (0.54%) 4541 Postage 2,530 2,259 3,000 3,000 3,200 200 6.67% 4666 Books 1,986 1,832 2,175 2,175 2,175 - - 4667 Dues & Publications 1,952 2,975 4,270 4,270 4,270 4999 General Contingency - - - - - 5041 Miscellaneous 13,934 14,255 16,350 16,350 16,350 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 350,034 $ 360,435 $ 428,443 $ 431,460 $ 437,851 $ 9,408 2.20% Capital Outlay & Transfers 8061 Land - - - - - - - 8062 Buildings 8063 Improvements - 8064 Machinery & Equipment 11,098 9090 Transfers - - Total Capital Outlay and Transfers $ $ 11,098 $ Department Total: $ 3,756,260 $ 3,245,085 $ 3,956,965 $ 3,959,982 $ 4,068,235 $ 111,270 2.81% 125 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 21 - Police 2022 Operating & Repair Supplies. For the purchase of department operating supplies including ammunition, cleaning supplies, vehicle fuel, and other departmental supplies. Special Project: Office Furniture $12,000. 2024 Small Tools & Minor Equipment. Cost for 19 desktop computer replacements and related computer hardware/peripherals. 1 rugged laptop computer and docking station. Body armor, gas masks, protective equipment, digital cameras and accessories, body cameras, radar, training materials, vehicle camera replacement, portable breath testers, taser replacement and office furniture. 4533 Transportation. Police Academy and various police traini seminars and conferences. 4538 Repair & Maintenance. Department annual building inspec services, miscellaneous equipment repairs and tuning. Pri maintenance, radio programming and maintenance, radar tuning testing, small equipment repairs and miscellaneous. Prevents maintenance inspections on new mobile/portable radios. 2026 Computer Software. Miscellaneous office software for 26 users, 5041 Miscellaneous. Uniform allowance for (18) eighteen swo including WatchGuard for Evidence and Encryption for emails. officers, bio-hazard material handling, and officer plaques and pins. 4531 Professional Services. Vehicle towing services for investigative impounds, laboratory and emergency room charges, and medical/psychological exams for department applicants. Miscellaneous professional services and Northwest Accreditation Association. 126 City of Kenai Fiscal Year 2027 Operating Budget Fund 001 - General Fund Department 422 - Fire Mission The Kenai Fire Department is dedicated to safeguarding the lives, property, and environment of our community through exceptional services in education, preparedness, prevention and response to emergency incidents. Functions & Responsibilities The City of Kenai Fire Department (KFD) provides fire, emergency medical services, airport rescue firefighting (ARFF), technical rescue, water rescue, code enforcement, fire investigation, fire prevention/public education, and other related services. The Department maintains a staff of Fire/EMS professionals who provide service to the citizens of Kenai from two stations staffed 24/7/365. Organizational Chart City Manager Fire Chief 1�/ Administrative Deputy Fire Chief ) Fire Marshal Fire Captain (3) Fire Engineer (3) ) Firefighter (9) Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Fire Chief 1 27 1 27 1 27 1 27 1 27 1 27 Deputy Fire Chief 1 25 1 25 1 25 1 25 1 25 1 25 Fire Marshal 1 22 1 22 1 22 1 22 1 22 1 22 Captain 3 21 3 21 3 22 3 22 3 22 3 22 Engineer 3 20 3 20 3 20 3 20 3 20 3 20 Firefighter 10 18 9 18 9 18 12 18 12 18 12 18 Administrative 1 Assistant II 14 1 14 1 14 1 14 1 14 1 14 127 Average Overtime Per Position (hours) Position Title FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Fire Chief N/A N/A N/A N/A N/A N/A Deputy Fire Chief N/A N/A N/A N/A N/A N/A Fire Marshal 191 364 446 225 60 60 Captain 1476 1383 1,519 781 667 667 Engineer 716 128 1,260 437 447 447 Firefighter 3,393 4,145 4,265 1,977 1,796 1,796 Administrative Asst. II 0 0 0 10 10 10 FLSA 2,368 2, 440 TOTAL 8,144 9,160 2, 220 2,480 2, 000 2, 000 9,610 5,910 5,690 5,690 Performance Measures 1. Reduce fire loss through fire -code compliance inspections There are 419 Commercial occupancies in Kenai. Of which 237 occupancies are classified as requiring fire code inspection every two years. If deficiencies are found, follow-up inspections may be required for the same occupancy within the same calendar year. Occupancy Inspections CY2022 CY2023 CY2024 CY2025 C2026* Total Number of 237 237 237 237 237 Occupancies Occupancy Inspections 124 137 135 124 28 Completed % of Inspections 52% 58% 57% 52% 12% Completed *Projected Figures based on year-to-date information. CY-Calendar Year FY26 Department Goals Evaluation Update Accreditation with the State of Alaska Division of Fire and Life Safety. We are currently due to renew our accreditation for the following nationally recognized levels: Firefighter I, Firefighter II, Hazardous Materials Awareness and Operations, Fire Apparatus Operator/Driver, Fire Apparatus Operator/Pumper, Fire Officer I, and Rapid Intervention Technician. We would like to add Aircraft Rescue & Fire Fighting to that list during accreditation updates. Achieved. 2. Work with Public Works to finalize Phase 3 and implement forest mitigation grant monies from the State of Alaska and the United States Forest Service. • Achieved. In progress: renewed contract extension with Alaska Forestry through 2026 to allow for an increased timeline to spend funds. Public Works has adjusted the scope and awarded the contract to exhaust available funding. 3. Improve and implement new personnel testing procedures to enhance the candidate pool and the acquisition of quality firefighter candidates. KFD is now testing the National Training Network for standardized written and physical fire candidate services (CPAT). Our first recruitment cycle since implementation has shown a 300% increase in applicants and a significant improvement in quality. KFD's goal is to increase the applicant pool from 10-15 up to at least 50 per posting. 128 • Achieved. With the new partnership between KFD and NTN (National Testing Network), our applicant pool has almost tripled. 4. Consolidate fire department database services for potential cost savings and improved data tracking/dissemination. This will also help address some of the points we lost during our last ISO evaluation. The goal is to improve various data areas to obtain a higher grade/point average to improve our ISO retrograde status. We are currently beta -testing ESO and enhanced PSTRAX to consolidate services. • Partially Achieved. In Progress: KFD has successfully migrated 7 RMS subscriptions/platforms into a single platform: FirstDue RMS. We are still in the integration stage and uploading past data from previous platforms. The customization and tailoring of modules to best suit KFD is ongoing. FirstDue provides capabilities we previously lacked, helping us plan and manage logistics and data more effectively. 5. Improve Paramedic and Advanced EMT accuracy when administering meds/interventions in the field. We are testing options now with the hope of implementing HandTevy's advanced oversight software in the field. This will significantly reduce intervention/med administration time while also eliminating the risk of human error. Thus, providing higher -quality care and improved survivability for our patients. • Achieved. KFD has implemented the HandTevy App/Program in the field. We have since had zero "0" medication errors, and intervention times have improved for patients. FY27 Department Goals The following goals support Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 7: Prepare and Protect the Citizens of Kenai from Natural Hazards and Disasters, and Goal 4: Provide Adequate Public Improvements and Services in Kenai. Improve the efficiency and effectiveness of the fire department's response to emergencies in limited -access areas such as beaches and forested areas. The goal will target equipment acquisition and training. This will support EMS and Wildfire response capabilities. 2. Develop a multi -year training and leadership development framework to prepare the next generation of company officers and chief officers. Emphasis will be placed on instructor development, officer readiness, incident command proficiency, and acting officer programs. 3. Continue targeted improvements in data reporting, training documentation, water supply coordination, and response reliability to position the department for a stronger score in the next Insurance Services Office evaluation. 4. Build on recent recruiting success by implementing retention -focused strategies such as mentorship programs, structured onboarding, career development pathways, and evaluation of compensation competitiveness. 5. Develop a formal CRR (Community Risk Reduction) framework aligned with national best practices to proactively address the leading causes of fires, injuries, and medical emergencies within Kenai. This includes targeted inspection programs, public education campaigns, and data -driven deployment models. 129 6. Pursue aggressive replacement/updating of essential life safety and fire ground equipment that needs to be retired or removed from service. 7. Acquire essential hazardous materials (HAZMAT) response equipment necessary to bring KFD's response capabilities to our adopted minimum response level (HAZMAT OPS). Future Considerations With the recent expansion of staffing, KFD is seeing a significant drop in reliance on Overtime Shift Coverage, improved morale, greater sustainability for current staff, and improved fire -level response for the citizens of Kenai. Note: Until all new personnel are fully trained (Driver/Operator; ARFF; AEMT; etc.), we will not see the full reduction benefit in Overtime that we should. KFD leadership participated in the Public Safety Facility feasibility study. We have a critical need to work towards new facility programming for the Kenai Fire Department. Otherwise, major renovation projects need to be facilitated. KFD leadership has been evaluating and continues to evaluate our fleet for cost savings, size reduction, and improved mission capabilities. The Kenai Fire Department is hosting the 2026 Alaska State Firefighter Conference. 130 City of Kenai Fiscal Year 2027 Operating Budget Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Fund: 001 - General Fund Department: Fire Five year Original Increase FY2025 Historical Budget Amended Proposed (Decrease) % Actual Average FY2026 Budget FY2027 FY2026 Original Change $ 1,732,765 $ 1,466,798 $ 2,040,295 $ 2,040,295 $ 2,176,895 $ 136,600 6.70% 381,536 268,599 129,191 129,191 195,285 66,094 51.16% 76,416 60,736 92,741 92,741 111,107 18,366 19.80% 74,611 38,817 73,821 73,821 82,000 8,179 11.08% 31,860 25,589 33,873 33,873 37,197 3,324 9.81% - 157 - - - - - 479,273 394,201 497,690 497,690 546,324 48,634 9.77% - 856 11,680 11,680 12,829 1,149 9.84% 77,093 54,466 99,435 99,435 120,245 20,810 20.93% 507,718 465,517 587,884 587,884 440,924 (146,960) (25.00%) 62,700 39,898 66,648 66,648 70,169 3,521 5.28% $ 3,423,972 $ 2,815,634 $ 3,633,258 $ 3,633,258 $ 3,792,975 $ 159,717 4.40% Maintenance and Operations 2021 Office Supplies 330 342 700 700 700 - 2022 Operating & Repair Supplies 71,499 62,202 136,986 106,957 84,235 (52,751) (38.51%) 2023 Repair & Maintenance Supplies - - - - - - - 2024 Small Tools/Minor Equipment 50,344 40,159 29,200 39,929 31,425 2,225 7.62% 2026 Computer Software 5,435 6,762 6,960 6,960 7,690 730 10.49% 4531 Professional Services 84,084 55,123 93,482 93,562 89,601 (3,881) (4.15%) 4532 Communications 13,679 12,344 25,118 25,118 23,906 (1,212) (4.83%) 4533 Travel & Transportation 18,688 12,545 19,000 19,000 24,000 5,000 26.32% 4534 Advertising 500 492 1,400 1,400 1,400 - - 4535 Printing & Binding 1,452 1,303 2,180 2,180 2,180 4536 Insurance - - - - - - - 4537 Utilities 48,793 49,243 51,577 51,577 51,898 321 0.62% 4538 Repair & Maintenance 19,667 7,442 24,213 24,213 24,213 - - 4539 Rentals - - - - - - - 4540 Equip. Fund Pmts. 214,122 156,010 259,371 259,371 271,632 12,261 4.73% 4541 Postage 168 211 700 700 700 - - 4666 Books 2,225 2,282 2,835 2,835 2,950 115 4.06% 4667 Dues & Publications 2,849 2,312 3,805 3,805 3,705 (100) (2.63%) 4999 General Contingency - - - - - - 5041 Miscellaneous 7,500 8,400 11,000 11,000 11,000 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 541,335 $ 417,172 $ 668,527 $ 649,307 $ 631,235 $ (37,292) 5.58%) Capital Outlay & Transfers 8061 Land - 8062 Buildings 8063 Improvements - - - - 8064 Machinery & Equipment 45,675 19,300 41,000 41,000 9090 Transfers - - Total Capital Outlay and Transfers $ - $ 45,675 $ - $ 19,300 $ 41,000 $ 41,000 - Department Total: $ 3,965,307 $ 3,278,481 $ 4,301,785 $ 4,301,865 $ 4,465,210 $ 163,425 3.80% 131 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 22 - Fire 2022 Operating & Repair Supplies. This line item includes the department general supply budget as well as EMS Supplies including pharmaceuticals. New hire costs, oxygen/nitrogen refills, gasoline and diesel fuels, Class A foam and fire prevention supplies. 2024 Small Tools/Minor Maintenance. This line item includes funds for miscellaneous Fire and EMS equipment, firefighter turnout gear and the new computer and ipad replacement program. Office furniture replacement, SCBA replacement parts. 4533 Travel & Transportation. This line item includes travel and registration for department members to attend training such as the National Fire Academy, the Alaska Fire Chiefs Associations Leadership Summit, the Alaska Building Officials Forum, Fire Officer Training Development and the Alaska State Arson Symposium. 4538 Repair & Maintenance. Ladder inspections, SCBA air sampling, mat cleaning service, maintenance contract, floor waxing and miscellaneous repair and maintenance. 4531 Professional Services. This line item includes the department's 4540 Equipment Replacement Fund Payments. Annual payment ambulance billing service, medical advisor fee, firefighter physicals, the City's Equipment Replacement Fund for equipment purchased and other service and software contracts. Foam disposal. the fund and utilized by the Fire Department. Safe boat $ 9,464 Engine 2 35,559 Ambulance F7 31,685 Hurrican Aerial 88,436 Hurrican Tanker 27,837 Ambulance F8 30,829 Pumper Engine E2 17,034 Ambulance F6 17,230 F-10 2,574 F-11 2,574 F-12 2,695 P-11 5,717 $ 271,634 8064 Machinery & Equipment. Special Project: Hazmat Respon Trailer & equipment. $30, 000. 132 City of Kenai Fiscal Year 2027 Operating Budget Fund 001 — General Fund Department 423 — Communications Mission To protect the lives and property of the citizens of Kenai and its visitors through prompt, courteous, and efficient call processing and dispatching of emergency services. Functions & Responsibilities The Department staffs and maintains a 911 communications system and responds to calls for assistance. A recent community survey identified keeping the community safe with police, fire, and emergency services as the City's most important service, underscoring the critical role of the dispatch center in supporting timely and effective emergency response. Core functions of the department: Answer and dispatch 911 calls Answer administrative phones and walk- in customers for the Police Department. Administrative support to the Police & Fire Departments Alarm monitoring/dispatching (city buildings) Answer/dispatch the FAA direct hotline for airport disasters Organizational Chart City Manager Police Chief Communications Supervisor Public Safety Dispatcher (7) Staffing FY23 Actual FY24 Actual FY25 Actual I Projected FY26 I Proposed FY27 I Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE I Grade FTE I Grade Communications 1 17 1 17 1 18 1 18 1 18 1 18 Supervisor Public Safety 7 14 7 14 7 15 7 15 7 15 7 15 Dispatcher 133 Average Overtime Per Position (hours) Position Title FY23 Actual i FY24 Actual FY25 Actual I Projected FY26 I Proposed FY27 Projected FY28 Communications 260 334 252 205 89 89 Supervisor _ Public Safety 248 331 245 360 267 267 Dispatcher Performance Measures Fiscal Year 2022 2023 2024 2025 2026* Police Calls for Service Dispatched 7,231 6,950 6,178 6,282 6,750 Medical Calls for Service Dispatched 1,184 1,240 1,333 1,144 1,400 Fire Calls for Service Dispatched 366 383 301 399 220 911 Calls Received 3,590 Training Hours Per Dispatcher 55 3,200 3,004 3,392 3,400 50 55 65 67 * Projected Figures based on year-to-date information. FY26 Department Goals Evaluation The Dispatch Center will incorporate Emergency Medical Dispatching from the third dispatch position in the dispatch center. • Partially Achieved. The dispatch center was able to use a floating software license during this fiscal year, enabling EMD dispatching from the third station. That system has proved problematic, and the need for a third software license is anticipated in the coming year. 2. The Dispatch Center will work with the State Department of Public Safety through the CJIS Modernization Project and implement the new Alaska Public Safety Information Network (APSIN) software. • Achieved. This dispatch supervisor diligently worked with the State for months in preparation for a major software transition in dispatch. Ongoing internal and external training is being conducted to get all staff up to speed on the new system that went live in January. 3. The Dispatch Center will evaluate the feasibility of becoming accredited under the Northwest Accreditation Alliance, which is the organization that accredits the Police Department. • Achieved. Information was collected from the Northwest Accreditation Alliance and from an already accredited dispatch center. That information was analyzed to assess the potential for dispatch center accreditation. It was determined that it would be feasible to become accredited and that the best approach would be a multi -year upgrade of policy and procedure manuals and alignment of accreditation timing with police re -accreditation in 2028. FY27 Department Goals Initiate the update of the Dispatch Center Standard Operating Procedures and revise at least 50% of dispatch policies to ensure compliance with current FBI Criminal Justice Information Services (CJIS) requirements and applicable Northwest Accreditation Alliance standards. This supports Comprehensive Plan Goal 4, Public Improvements and Services: Promote and encourage quality of life in Kenai by enhancing public safety and providing adequate public improvements and services. 134 2. Provide specialized training for one dispatcher to join the Quality Control Call Review Team and fully train and integrate a second dispatcher into the National Incident -Based Reporting System (NIBRS) for crime data submission to the State of Alaska, which in turn reports Uniform Crime Report data to the FBI. Comprehensive Plan Goal 1 Quality of life: Promote and encourage quality of life in Kenai by enhancing public safety. Future Considerations The Department will continue to evaluate a potential transition from operating our own records management system to joining the State Department of Public Safety's records management system. The Dispatch Center flooring and dispatch furniture are nearing the end of their usable life, and replacement parts are increasingly difficult to obtain. As the City considers renovation or construction of a new public safety facility, the timing of replacement for these items will need to be evaluated alongside those long-term facility decisions. 135 City of Kenai Fiscal Year 2027 Operating Budget Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Fund: 001 - General Fund Department: Communications Five year Original Increase FY2025 Historical Budget Amended Proposed (Decrease) % Actual Average FY2026 Budget FY2027 FY2026 Original Change $ 508,124 $ 408,729 $ 526,061 $ 526,061 $ 550,707 $ 24,646 4.69% 25,218 22,404 14,926 14,926 14,742 (184) (1.23%) 28,978 22,203 34,717 34,717 37,071 2,354 6.78% 14,586 5,853 13,197 13,197 16,937 3,740 28.34% 8,172 6,459 8,539 8,539 8,981 442 5.18% 3 123,193 100,093 118,038 118,038 132,554 14,516 12.30% - 214 2,945 2,945 3,098 153 5.20% 1,327 921 2,906 2,906 1,755 (1,151) (39.61%) 213,776 191,821 213,776 213,776 140,294 (73,482) (34.37%) 20,392 13,035 19,881 19,881 19,509 (372) 1.87%) $ 943,766 $ 771,735 $ 954,986 $ 954,986 $ 925,648 $ (29,338) 3.07%) Maintenance and Operations 2021 Office Supplies 208 576 1,000 1,000 1,000 - - 2022 Operating & Repair Supplies 233 132 250 250 250 - 2023 Repair & Maintenance Supplies - - - - - - - 2024 Small Tools/Minor Equipment 5,489 5,698 7,300 7,300 7,375 75 1.03% 2026 Computer Software 2,554 2,808 13,220 13,220 4,220 (9,000) (68.08%) 4531 Professional Services 3,445 2,199 3,770 3,770 3,770 - - 4532 Communications 1,830 1,652 3,950 3,950 4,040 90 2.28% 4533 Travel & Transportation 8,560 8,465 10,000 10,000 10,000 - - 4534 Advertising - 225 600 600 600 - 4535 Printing & Binding 62 56 400 400 - (400) (100.00%) 4536 Insurance - - - - - 4537 Utilities - - - - - - - 4538 Repair& Maintenance 32,442 31,119 43,950 45,600 51,000 7,050 16.04% 4539 Rentals - - - - - - - 4540 Equip. Fund Pmts. 4541 Postage - - - - - 4666 Books 72 63 100 100 100 - - 4667 Dues & Publications 1,226 740 1,350 1,350 1,400 50 3.70% 4999 General Contingency - - - - - - - 5041 Miscellaneous 255 565 850 850 850 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 56,376 $ 54,298 $ 86,740 $ 88,390 $ 84,605 $ (2,135) 2.46%) Capital Outlay & Transfers 8061 Land - 8062 Buildings 8063 Improvements - - 8064 Machinery & Equipment 14,283 2,857 9090 Transfers - - - Total Capital Outlay and Transfers $ 14,283 $ 2,857 $ Department Total: $ 1,014,425 $ 828,890 $ 1,041,726 $ 1,043,376 $ 1,010,253 $ (31,473) 3.020/6) 136 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 23 - Communications 2024 Small Tools & Minor Equipment. Replacement computer, 4533 Travel & Transportation. Continuing education for depa monitors, headsets, handsets, hardware and furniture. Replacement staff including emergency communications training and emei printer for Communications Supervisor. medical dispatch training. 2026 Computer Software. Software for 7 computers, 10 users and 4538 Repair & Maintenance. Maintenance of department encryption for emails. equipment, records management system, call recording equi and other miscellaneous items. 4531 Professional Services. Drug screenings for new hires and medical director fees. 137 City of Kenai Fiscal Year 2027 Operating Budget Fund 001 - General Fund Department: 29 -Animal Control Mission The Kenai Animal Shelter strives to make the community safer for individuals and animals within the City of Kenai. This will be accomplished through public education, spaying/neutering, and ensuring our staff continues to operate in a humane and safe manner in accordance with City, State and national standards regarding animal welfare. Functions & Responsibilities The primary responsibilities of the Kenai Animal Shelter are: 1. Provide temporary care and shelter to a variety of domestic animals. 2. Provide fair enforcement of Title 3 of the Kenai Municipal Code which covers many areas of animal welfare and restraint. 3. Provide shelter services for the City of Soldotna as outlined in the Agreement for Animal Control Shelter Services Contract. Services provided by the Kenai Animal Shelter include: rabies control, public safety, animal welfare, and public relations/education. The Kenai Animal Shelter performs regular patrols of neighborhoods, investigates complaints, issues citations to violators, responds to exigent situations, and assists other agencies with animal related issues. Organizational Chart City Manager Police Chief Chief Animal Control Officer Animal Control Officer (2) Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Position Title My Grade My Grade My Grade My Grade My Grade My Grade Chief Animal 1 17 1 17 1 17 1 17 1 17 1 17 Control Officer Animal Control 2 14 2 14 Officer 2 14 2 14 2 14 2 14 Average Overtime Per Position (hours) Position Title FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Chief Animal Control Officer 35.5 21.5 28 30 30 30 Animal Control Officer 17 40 41 60 60 60 138 Performance Measures Fiscal Year 2022 2023 2024 2025 2026* Field investigations & 452 337 261 386 288 Patrols Volunteer Hours Logged 128 107.79 96.65 17.35 5 Educational Outreach 13 7 3 8 3 Animal Shelter Intake 501 558 456 349 300 * Projected Figures based on year-to-date information. FY26 Department Goals Evaluation 1. The Kenai Animal Shelter will partake in or host a minimum of seven community outreach events. This will support goals 1 and 4 of the Kenai Comprehensive Plan by increasing community awareness of Kenai Animal Control, the Kenai Animal Shelter, and the resources we offer. • Partially Achieved. Due to the vacancy of the Chief Animal Control Officer position during the first half of FY26 and the vacancy of one Animal Control Officer during the early months of FY26, the animal shelter was forced to prioritize animal care and animal control workloads. For these reasons Only 3 events are projected in FY26. 2. The Kenai Animal Shelter will restart the volunteer program. • Achievement Anticipated. The development of a limited volunteer program for the use of community outreach and media creation has begun. 3. The Kenai Animal Shelter will document a minimum of seven Department Policies and Procedures in FY 26. • Partially Achieved. Documentation of seven departmental policies and corresponding procedures is expected by the conclusion of the fiscal year. FY27 Department Goals 1. Kenai Animal Control will engage in, sponsor, or host 2 educational opportunities targeting local Youth. These educational opportunities will center on animal behavior, animal bite prevention, and Rabies control. This will support the Kenai Comprehensive Plan goal four by providing adequate public improvements and services in Kenai. 2. Kenai Animal Control will provide an additional public service event in FY27 that provides a low-cost service to the public, such as a rabies clinic or an adoption event. This will support the Kenai Comprehensive Plan goal four by providing adequate public improvements and services in Kenai. 139 3. Kenai Animal Control will document all remaining written departmental policies and procedures into the new City of Kenai format in FY27. This will support goals 1 and 4 of the Kenai Comprehensive Plan by increasing community awareness of Kenai Animal Control, the Kenai Animal Shelter, and the resources we offer. Future Considerations The Kenai Animal Control staff anticipates the need to update the Animal Control Section of the Kenai Municipal Code. The animal control field and national standards for animal shelters have grown extensively over the last decade. The staff would like to update our code to better reflect changes in the field and support animal welfare in the City. 140 City of Kenai Fiscal Year 2027 Operating Budget Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Fund: 001 - General Fund Department: Animal Control Five year Original Increase FY2025 Historical Budget Amended Proposed (Decrease) % Actual Average FY2026 Budget FY2027 FY2026 Original Change $ 170,241 $ 177,817 $ 188,067 $ 184,567 $ 196,069 $ 8,002 4.25% 3,336 3,132 4,973 4,973 5,184 211 4.24% 15,819 4,866 2,894 2,894 3,754 860 29.72% 2,675 2,530 2,841 2,841 2,972 131 4.61% 431 86 - - - - - 37,014 39,647 42,469 42,469 44,276 1,807 4.25% - 83 980 980 1,025 45 4.59% 2,363 2,354 2,387 2,387 3,234 847 35.48% 80,166 79,060 80,166 80,166 60,126 (20,040) (25.00%) 6,005 5,258 6,975 6,975 6,975 - - $ 318,050 $ 314,833 $ 331,752 $ 328,252 $ 323,615 $ (8,137) 2.45%) Maintenance and Operations 2021 Office Supplies 673 509 500 500 650 150 30.00% 2022 Operating & Repair Supplies 14,945 12,347 14,590 14,590 22,145 7,555 51.78% 2023 Repair & Maintenance Supplies - - - - - - - 2024 Small Tools/Minor Equipment 3,936 4,220 1,660 3,660 3,310 1,650 99.40% 2026 Computer Software 1,438 1,174 1,680 1,680 1,880 200 - 4531 Professional Services 32,830 28,732 36,500 36,500 36,500 - - 4532 Communications 1,591 1,771 2,396 2,396 2,456 60 2.50% 4533 Travel& Transportation 6,761 4,289 7,500 11,000 8,000 500 6.67% 4534 Advertising 20 8 50 550 50 - - 4535 Printing & Binding 1,042 709 1,150 1,150 1,150 4536 Insurance - - - - - - 4537 Utilities 26,361 29,627 31,545 31,545 29,726 (1,819) (5.77%) 4538 Repair & Maintenance 1,106 1,574 2,100 2,100 2,100 - - 4539 Rentals 48,305 47,704 48,491 48,491 50,429 1,938 4.00% 4540 Equip. Fund Pmts. 5,308 5,308 8,155 8,155 8,155 - - 4541 Postage 1,037 919 1,600 200 250 (1,350) (84.38%) 4666 Books - 44 250 250 500 250 100.00% 4667 Dues & Publications 75 589 1,015 415 1,015 - - 4999 General Contingency - - - - - 5041 Miscellaneous 500 1,261 1,700 1,200 1,700 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 145,928 $ 140,785 $ 160,882 $ 164,382 $ 170,016 $ 9,134 5.68% Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers - Total Capital Outlay and Transfers $ - $ - $ - $ - $ - $ - - Department Total: $ 463,978 $ 455,618 $ 492,634 $ 492,634 $ 493,631 $ 997 0.20% `ffiI City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 29 - Animal Control 2022 Operating, Repair & Maintenance Supplies. Euthanasia 4533 Travel & Transportation. Continuing education for shelter drugs/supplies, dog and cat vaccines, animal feed, litter, enrichment on humane treatment of animals and recertifi cations. toys and beds. Cleaning supplies, volunteer staff supplies and rewards. Vehicle fuel, new uniform and reflective outerwear, officer safety protection gear and rabies clinic costs. Special Project: Kennel Latches $7,500. 2024 Small Tools & Minor Equipment. Computer replacement for 4539 Rentals. Annual lease of the Animal Control shelter and la two computers. Capture/restraint tools and miscellaneous small tools. from the City's Airport Fund. 4531 Professional Services. Veterinary services including spaying 4667 Dues and Publications. Professional organization dues and neutering of animals that are reimbursed by those adopting shelter staff and online subscription to continuing education for s animals and general veterinary services for care of animals being and volunteers. housed at the shelter. IEW City of Kenai Fiscal Year 2027 Operating Budget Fund 001 — General Fund Department 431 — Public Works Administration Mission To provide high -quality, cost-effective services that ensure the design, construction, operation, and maintenance of all public infrastructure, facilities, and services are responsive to the needs of the community, businesses, other City Departments, as well as the general public. Functions & Responsibilities The Public Works Department is responsible for a full range of duties, including supervision and coordination of Building Maintenance, Building Permits, Shop, Streets, Water and Sewer, and Wastewater Treatment Plant. In addition to Purchasing and Contract Management assistance for all departments, management of Capital Projects, infrastructure support, oversight of the City Dock & Harbor and Safety Department, and streetlight maintenance. Organizational Chart City Manager Public Works Public Works Director Asst. Director Administrative Assistant III Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Pro osed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Public Works Director .71 28 .71 28 .71 28 .70 28 .63 28 .63 28 Public Works Assistant - N/A - N/A 1 22 .70 24 .63 24 .63 24 Director Administrative Assistant III 71 15 .71 15 .71 15 .70 15 .63 15 .63 15 Capital Project Manager 1 23 1 23 1 23 - N/A - N/A - N/A Average Overtime Per Position (hours) Position Title FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Public Works Director N/A N/A N/A N/A N/A N/A Public Works Assistant Director N/A N/A N/A N/A N/A N/A Administrative Assistant III 0 0 0 6 6 6 143 Performance Measures Fiscal Year Active Capital Projects 2022 16 2023 26 2024 22 2025 18 2026* 27 Completed Capital Projects 8 12 8 6 7 RFPs released 7 8 3 6 5 ITBs released 10 12 8 19 5 Right -of -Way / Excavation Permits Issued 51 58 76 100** 100*** *Actual Figures year-to-date 2118126. **590 ENSTAR permits and 30 GCI permits completed as 2 total permits. *** Projected FY26 Department Goal Evaluation Continue work through active capital project allocations to develop a project schedule for each project or reallocate funding if needed. The goal is to complete 18 capital projects. • Partially Achieved. A schedule for completion was developed in the Capital Improvement Plan, and multiple projects are ongoing that will be completed this fiscal year. 2. Update construction specifications for road, water, and sewer improvements. • Achieved. Specifications to be approved before the end of the fiscal year. 3. Incorporate new solutions and programs for procurement, project management, and permitting. Supports Goal 2 of the Comprehensive Plan. • Achieved. Transitioned to the BidExpress platform for online bidding and procurement of permit software to be completed this fiscal year. Project management software is not deemed necessary at this time. 4. Develop a procedure to accompany the Purchasing Policy and develop a Contracting policy and procedure to assist all departments in the City. • Partially Achieved. Draft procedures developed but not finalized. FY27 Department Goals 1. Continue work through active capital project allocations to develop a project schedule for each project or reallocate funding if needed. The goal is to complete 24 capital projects. Can support all goals associated with the Comprehensive plan, depending upon the project. 2. Develop a procedure to accompany the Purchasing Policy and develop a Contracting policy and procedure to assist all departments in the City. Future Considerations The loss of Capital funding from the State of Alaska will necessitate the increased use of City funds to maintain and improve our infrastructure. Mechanisms for providing this funding will need to be identified and implemented to ensure that critical infrastructure does not fall into disrepair. 144 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: Public Works Administration Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 222,661 $ 214,183 $ 136,462 $ 136,462 $ 146,854 $ 10,392 7.62% 0200 Overtime - 34 209 209 196 (13) (6.22%) 0250 Holiday Pay - - - - - - - 0300 Leave 19,942 4,918 3,096 3,096 3,759 663 21.41% 0400 Medicare 3,542 3,077 2,027 1,628 2,185 158 7.79% 0450 Social Security - - - - - - - 0500 PERS 40,867 47,416 30,068 30,068 32,352 2,284 7.60% 0600 Unemployment Insurance - 91 699 699 754 55 7.87% 0700 Workers Compensation 530 455 (644) (644) 431 1,075 - 0800 Health & Life Insurance 41,265 34,230 36,074 36,074 27,858 (8,216) (22.78%) 0900 Supplemental Retirement 4,709 4,099 8,114 8,114 4,670 (3,444) 42.459/6) Total Salaries & Benefits $ 333,516 $ 308,503 $ 216,105 $ 215,706 $ 219,059 $ 2,954 1.37% Maintenance and Operations 2021 Office Supplies 360 850 1,550 1,550 1,550 - - 2022 Operating & Repair Supplies - - - - - 2023 Repair & Maintenance Supplies - - - - - 2024 Small Tools/Minor Equipment 2,927 2,220 3,200 3,200 2,125 (1,075) (33.59%) 2026 Computer Software 2,273 2,013 2,785 2,785 2,610 (175) (6.28%) 4531 Professional Services (91,292) (129,485) - - - - - 4532 Communications 1,243 1,435 2,190 2,190 2,235 45 2.05% 4533 Travel & Transportation 445 604 9,750 9,750 9,750 - - 4534 Advertising 895 406 500 500 500 4535 Printing & Binding - - - - - 4536 Insurance - - - - - - - 4537 Utilities - - - - - - - 4538 Repair & Maintenance - - - - - - - 4539 Rentals - - - - - - - 4540 Equip. Fund Pmts. - - - - - - - 4541 Postage - - - - - - - 4666 Books - 59 300 300 300 - - 4667 Dues & Publications 496 486 800 800 800 - - 4999 General Contingency - - 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies - - - - - Total Maint. and Operations $ (82,653) $ (121,412) $ 21,075 $ 21,075 $ 19,870 $ (1,205) (5.72%) Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Total Capital Outlay and Transfers $ - $ - $ - $ - $ - $ - - Department Total: $ 250,863 $ 187,091 $ 237,180 $ 236,781 $ 238,929 $ 1,749 0.74% 145 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 31 - Public Works Administration 2024 Small Tools/Minor Equipment. Charge for (5) five computer 4533 Travel & Transportation. Continuing education for department and furniture / chairs. Replacement printer. staff including FAA annual meeting, AWWMA and AML conferences. Mileage for Director and Assistant Director. 146 City of Kenai Fiscal Year 2027 Operating Budget Fund 001 -General Fund Department 432 - Shop Mission The Kenai Shop serves the citizens of Kenai by providing cost-effective maintenance, repair, and replacement services for the City's vehicles and equipment. Functions & Responsibilities The Shop Department is a service provider to all city departments, coordinating maintenance operations for the city's equipment fleet. The Shop Department is comprised of one building fully outfitted with office space, mechanical lifts, crane hoists, welding stations, and parts storage. Three employees provide all primary labor for the department to maintain a fleet of approximately 307 vehicles and equipment. Departments serviced by the Shop include Administration, Animal Control, Airport, Beacon Training Facility, Boating Facility, Building Maintenance, Fire, Police, Parks & Recreation, Senior Center, Shop, Streets, and Utilities. Organizational Chart City Manager Public Works Director Shop Foreman Shop Mechanic (2) Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Pro osed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Shop Foreman 1 21 1 21 1 21 1 21 1 21 1 21 Mechanic 2 19 2 19 2 19 2 19 2 19 2 19 Average Overtime Per Position (hours) Position Title FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Shop Foreman 136 55.5 7 120 120 120 Mechanic 50.5 144 5.5 100 100 100 Performance Measures Calendar Year 2021 2022 2023 2024 2025 Work Orders 1,097 1,253 865 766 977 Repair Expenses $ 324,509 $ 354,958 $ 285,699 $ 390,169 $ 321,093 147 Fleet by Department Vehicles Airport 5 Police 31 Heavy Equipment Utility Vehicles Other* 16 9 51 0 5 4 Fire 6 9 9 37 Public Works 13 21 4 108 Parks & Rec 7 7 20 104 Senior 5 0 0 3 Total 67 53 47 307 'Other includes trailers, push mowers, chainsaws, generators, and other motorized non -rideable equipment Recent replacements within the Fleet include • 2025: (3) Police Vehicles, (1) Airport Loader, (2) Senior Vans, (2) Water Utility Trucks, (1) Fire Vehicle Ongoing / Pending Fleet Purchases • (2) Senior Center Vehicles, (1) Snow Blower Planned Fleet Purchases for FY26 • (4) Utility Trucks for Public Works, (1) Bucket Truck, (1) Fire Apparatus FY26 Department Goals Evaluation Reorganize and inventory parts storage. Staff are working to reduce the excess inventory of parts and to locate items for equipment no longer owned by the City. • Partially Achieved. Work ongoing. 2. Conduct City Surplus Auction • Achieved. Planning to have annual auctions moving forward. 3. Develop policy and procedure for surplusage and auction of City assets, inventorying spare parts, and entering work orders into the fleet management system. • Not Achieved. Will be prioritized. FY27 Department Goals 1. Reorganize and inventory parts storage. Staff is working to reduce the excess inventory of parts and to locate items for equipment no longer owned by the City. Supports Goal 2 of the Comprehensive Plan. 2. Develop policy and procedure for surplusage and auction of City assets, inventorying spare parts, and entering work orders into the fleet management system. Future Considerations The ability of the shop to maintain certain equipment or perform certain repairs is becoming more difficult as proprietary technology increasingly requires sending it to a dealer. This may reduce our staff's ability to perform timely repairs on vehicles and equipment, resulting in longer downtime due to scheduling and the need to transport them to dealers for work. 148 City of Kenai Fiscal Year 2027 Operating Budget Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Fund: 001 - General Fund Department: Shop Five year Original Increase FY2025 Historical Budget Amended Proposed (Decrease) % Actual Average FY2026 Budget FY2027 FY2026 Original Change $ 256,272 $ 240,713 $ 260,634 $ 260,634 $ 274,749 $ 14,115 5.42% 781 7,471 14,508 14,508 15,269 761 5.25% 7,881 13,438 9,292 9,292 11,804 2,512 27.03% 3,701 3,611 4,124 4,124 4,377 253 6.13% 56,388 54,625 60,531 60,531 63,804 3,273 5.41% - 120 1,422 1,422 1,509 87 6.12% 7,599 6,293 8,713 8,713 9,580 867 9.95% 80,166 79,270 80,166 80,166 60,126 (20,040) (25.00%) 11,077 6,034 9,300 9,300 10,075 775 8.33% $ 423,865 $ 411,575 $ 448,690 $ 448,690 $ 451,293 $ 2,603 0.58% Maintenance and Operations 2021 Office Supplies - 5 200 200 200 - 2022 Operating & Repair Supplies 130,922 151,815 188,000 186,975 188,000 2023 Repair & Maintenance Supplies - - - - - 2024 Small Tools/Minor Equipment 7,203 8,453 8,500 8,500 8,500 - - 2026 Computer Software 5,015 1,599 900 1,925 1,100 200 22.22% 4531 Professional Services 640 406 1,200 1,200 1,200 - - 4532 Communications 2,322 2,430 3,060 3,060 3,150 90 2.94% 4533 Travel & Transportation - - 5,000 4,000 5,000 - - 4534 Advertising - - - - - 4535 Printing & Binding - - - - - 4536 Insurance - - - - - - - 4537 Utilities 48,503 46,687 54,638 54,638 52,864 (1,774) (3.25%) 4538 Repair & Maintenance 28,367 12,512 20,300 20,300 20,300 4539 Rentals - - 500 500 500 4540 Equip. Fund Pmts. 7,440 6,565 7,440 7,440 7,440 4541 Postage - - - - - 4666 Books - - - - - - - 4667 Dues & Publications 3,527 4,237 6,200 7,200 7,225 1,025 16.53% 4999 General Contingency - - - - - - - 5041 Miscellaneous 5,855 3,249 3,200 3,200 7,700 4,500 140.63% 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 239,794 $ 237,958 $ 299,138 $ 299,138 $ 303,179 $ 4,041 1.35% Capital Outlay & Transfers 8061 Land - 8062 Buildings 8063 Improvements - - 8064 Machinery & Equipment 30,925 6,185 9090 Transfers - - - - Total Capital Outlay and Transfers $ 30,925 $ 6,185 $ - $ - $ - $ - - Department Total: $ 694,584 $ 655,718 $ 747,828 $ 747,828 $ 754,472 $ 6,644 0.89% 149 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 32 - Shop 2022 Operating & Repair Supplies. Repair parts for City vehicles and equipment, fuel, diesel exhaust fluid, summer tire order, oil & lubricants, and other general department supplies. 2024 Small Tools & Minor Equipment. Miscellaneous small tools, computer replacement for (4) computers and metal tags for equipment. 4533 Travel & Transportation. Travel and lodging for seminar 4538 Repair & Maintenance. Professional services for crash repairs, dealer repairs and oil furnace service. Crane, joists, and bucket truck annual inspections. Hazardous waste cleanup and miscellaneous repairs. 4667 Dues & Publications. Vehicle maintenance man subscriptions, parts and services manuals, fleet maintenance ann subscription and other annual updates. 5041 Miscellaneous. Laundry service for uniforms, floor mat cleani and vehicle licenses renewals. 150 City of Kenai Fiscal Year 2027 Operating Budget Fund 001 — General Fund Department 433 — Streets Mission To provide for safe and secure travel throughout the City's road system for all citizens throughout the year. Functions & Responsibilities Street Maintenance is a primary responsibility of the City. The Streets division strives to maintain approximately 135.4 lane miles of streets at an acceptable level of service and safety. An important function of street maintenance is to provide snow and ice removal as well as sanding to ensure a safe and accessible transportation system during the winter months. The department maintains all municipal parking lots. The Streets division also plows snow from State-owned sidewalks and bike paths from North Forest Dr. through town to Tinker Ln. All roads, parking lots, and sidewalks are also swept periodically during the summer months. Operations include pothole repairs, grading gravel roadways, applying calcium chloride for dust control, crack sealing, and repairing or replacing culverts as needed. Clearing and ditching of all rights -of -way as needed. Maintenance of storm drain facilities, including catches, inlets, and outlets. Installing and maintaining roadway signage, including regulatory, cautionary, public information, and street names. Monitoring all streetlights for damage and functionality. Operating from a 13,200 sq. ft. facility located at 550 Daubenspeck Road, the Streets division performs routine maintenance and operates a full line of equipment listed below: Equipment Quantity Road Graders 4 Loaders Sand Trucks Bucket Truck 2 1 Trackless Equipment 2 Loader -mounted snow blower 1 Total Equipment 18 151 Organizational Chart City Manager Public Works Director Street Foreman Equipment Lead Operator Equipment Operator (3) Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Pro osed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Foreman .92 21 .92 21 .93 21 .93 21 .93 21 .93 21 Equipment Lead Operator .91 19 .91 19 .92 19 .91 19 .91 19 .91 19 Equipment Operator 2.66 16 2.6 16 2.73 16 2.73 16 2.73 16 2.73 16 Temporary Equipment Operator I _ T16 .38 T16 .39 T16 .39 T16 .39 T16 .39 T16 hours Average Overtime per Position (hours) Position Title FY23 Actual FY24 Actual 120 140.5 FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Foreman 25.5 100 100 100 Equipment Lead Operator 21.5 83.5 40.5 100 100 100 Equipment Operator 522 323.5 186 270 270 270 Temp. Equip. Operator 6 26 46 20 20 20 Performance Measures Fiscal Year 2022 Lane Miles of Streets* 134.7 Miles of Ditching Completed 2023 2024 2025 134.7 134.7 137.4 2.4 *Number of Lane Miles adjusted through Street Assessment Project. 152 FY26 Department Goals Evaluation 1. Develop an annual crack sealing plan for contract work through the Street Assessment Project after the determination of annual needs. • Achieved. Priority list developed through Street Assessment, along with annual cost recommendations. 2. Finalize the City's snow removal plan and post to the City website by November 1st, 2025. • Not Achieved. New Staff in the Public Works Administration are reviewing the goal and snow removal policies to provide an update for winter in FY27. 3. Continue with additional right-of-way clearing and ditching with a goal of 10 miles completed. • Partially Achieved. 2.4 miles of road ditched in the summer of 2025. Additional ditching to occur in spring through the end of the fiscal year. 4. Develop policy and procedure for regular tasks to be completed by the Streets Department for summer operations, winter operations, transition seasons, and dock activities. • Not Achieved. Work will be prioritized. FY27 Department Goals 1. Bid and manage the annual crack sealing contract to improve the regular maintenance of asphalt. This is in support of Goal 4 Public Improvements & Services from the City of Kenai's Comprehensive Plan. 2. Finalize/update the City's snow removal plan or policy and post to the City website by November 1st, 2026. This will support Goal 4, Public Improvements and Services, and Goal 5, Transportation, of the City of Kenai's Comprehensive Plan. 3. Continue with additional right-of-way clearing and ditching with a goal of 5 miles completed. This will support Goal 4, Public Improvements and Services, and Goal 5, Transportation, of the City of Kenai's Comprehensive Plan. 4. Develop policy and procedure for regular tasks to be completed by the Streets Department for summer operations, winter operations, transition seasons, and dock activities. Future Considerations Live tracking of some City vehicles may be beneficial in assisting staff dealing with phone calls, especially during snow clearing. Typically, the Streets Foreman provides a daily plan for snow clearing and checks in throughout the day to stay on top of issues and provide updates. Live tracking would allow City staff to tell members of the public exactly where equipment has been or currently is. Snow removal plan would need to be developed first. Deterioration of metal stormwater culverts is becoming an issue in several areas of town. Infrastructure may need significant rehabilitation work in the coming years. Sand used for roadway traction in the winter is currently stored outside, and smaller amounts are shifted indoors to thaw as space allows. This results in additional use of equipment and fuel to perform the service. An indoor storage facility for winter sand and bulk purchase and storage may be beneficial to the City. 153 City of Kenai Fiscal Year 2027 Operating Budget Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Fund: 001 - General Fund Department: Streets Five year Original Increase FY2025 Historical Budget Amended Proposed (Decrease) % Actual Average FY2026 Budget FY2027 FY2026 Original Change $ 352,613 $ 349,462 $ 403,541 $ 403,541 $ 411,652 $ 8,111 2.01% 16,912 30,482 25,483 25,483 29,650 4,167 16.35% 5,448 4,319 17,111 17,111 14,974 (2,137) (12.49%) 5,253 5,340 6,469 6,469 6,616 147 2.27% 1,233 558 1,548 1,548 1,755 207 13.37% 79,720 83,705 77,710 77,710 90,860 13,150 16.92% - 182 2,231 2,231 2,282 51 2.29% 12,885 12,447 16,102 16,102 16,206 104 0.65% 122,436 124,380 122,119 122,119 91,591 (30,528) (25.00%) 14,849 9,561 14,725 14,725 16,310 1,585 10.76% $ 611,349 $ 620,436 $ 687,039 $ 687,039 $ 681,896 $ (5,143) (0.75% Maintenance and Operations 2021 Office Supplies 139 155 240 240 240 - - 2022 Operating & Repair Supplies 129,565 122,470 152,500 152,500 163,750 11,250 7.38% 2023 Repair & Maintenance Supplies - - - - - - - 2024 Small Tools/Minor Equipment 2,752 2,211 4,900 6,900 2,250 (2,650) (54.08%) 2026 Computer Software 1,323 1,076 1,220 1,220 1,520 300 24.59% 4531 Professional Services (388) (8,566) 1,250 5,242 1,750 500 40.00% 4532 Communications 3,203 3,769 4,100 4,100 4,130 30 0.73% 4533 Travel & Transportation - - - - - - - 4534 Advertising - 571 2,000 - 1,500 (500) (25.00%) 4535 Printing & Binding 116 106 250 250 250 - 4536 Insurance - - - - - - 4537 Utilities 25,411 30,106 31,589 31,589 31,282 (307) (0.97%) 4538 Repair & Maintenance 16,030 14,796 60,000 79,000 135,000 75,000 125.00% 4539 Rentals 21,411 14,544 82,200 82,200 51,200 (31,000) (37.71%) 4540 Equip. Fund Pmts. 214,555 193,428 267,669 267,669 257,560 (10,109) (3.78%) 4541 Postage - - - - - 4666 Books 4667 Dues & Publications 4999 General Contingency - - - - - 5041 Miscellaneous - - - - - 5045 Depreciation - - - - - 5047 Grants to Agencies - - - - - - Total Maint. and Operations $ 414,117 $ 374,666 $ 607,918 $ 630,910 $ 650,432 $ 42,514 6.99% Capital Outlay & Transfers 8061 Land - - - - - - - 8062 Buildings 8063 Improvements - 8064 Machinery & Equipment 4,232 9090 Transfers - Total Capital Outlay and Transfers $ $ 4,232 $ Department Total: $ 1,025,466 $ 999,334 $ 1,294,957 $ 1,317,949 $ 1,332,328 $ 37,371 2.89% 154 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 33 - Streets 2022 Operating & Repair Supplies. Department supplies including barricades, safety supplies, brooms and sweepers, calcium chloride, road sand, equipment cutting edges, fuel and other miscellaneous supplies. Culvert and gravel stock material, pit run/D1, sewer rock. Special Projects: Two sets tires for dump truck $8,000. New radios $2,500. 4538 Repair & Maintenance. Professional services for parking lot striping, stop bars and pavement markings. Crack sealing contract work. 4539 Rentals. Warm storage rental for road sand, excavator rental, and misc. rental equipment, including dozer, compactor, man lift extend -a -boom. 4540 Equipment Replacement Fund Payments. Annual payment to the City's Equipment Replacement Fund for equipment purchased by the fund and utilized by the Street's Department. Water Truck - ST17 $ 10,745 Street Sweeper - ST30 21,924 160 Motor Grader with Wing & Plow 21,487 Sander Truck - ST23 14,447 Sander Truck - ST45 13,947 Articulating Snow Blower 18,616 Aerial Bucket Truck 13,244 140 H Motor Grader with Wing 15,771 MT-6 4x4 Articulating Snow Blower 12,701 Crosswing Sweeper 12,774 L120 Loader - ST43 19,476 120G Motor Grader - ST31 22,817 L110H Loader - ST43 19,476 ST-02 26,986 ST-02 4,367 ST-03 6,207 ST-01 2,574 $ 257,559 155 City of Kenai Fiscal Year 2027 Operating Budget Fund 001 - General Fund Department 434 -Buildings Mission The Building Official strives to safeguard the public and promote health, safety, and welfare in the City of Kenai by enforcing the adopted building codes while providing an excellent level of customer service and relations. The Building Maintenance team strives to provide maintenance that enables City -owned buildings and equipment to be used productively, safely, comfortably, and economically by the citizens of Kenai and its employees. Functions & Responsibilities The Building Official ensures that new construction of private and public buildings follows established codes, laws, and regulations. The work involves plan review, inspection, recordkeeping, and the issuance of permits and certificates of occupancy. The Building Official is responsible for knowledge of construction, skilled trades, and building code regulations. The Building Maintenance team performs preventative maintenance, emergency response, and general repair of City -owned facilities and equipment. The maintenance team is responsible for the following facilities: City Hall, Library, Park Buildings & Facilities, Recreation Center, Public Safety Building, Visitor Center, Vintage Point, Fine Arts Building, City Shop, Water Treatment Plant, Waste Water Treatment Plant, and Parking Lot & Buildings Exterior Lighting, Airport Terminal and Buildings, Airport Operations Building, Firehouse No. 2, Fire Training Facility, and FAA buildings. The custodial group that cleans the Library, City Hall, Senior Center, and Police Department is now reporting to the Building Maintenance Foreman. The costs for these employees and building supplies remain with those departments' budgets, not within the Building's budget. Organizational Chart City Manager Public Works Director I Building Official Building Maintenance Forema Janitor Float Building LJanitorMaintenance all Technician Janitor Police Deoartme Janitor Library Janitor 156 Senior Center Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Building Official 1 22 1 22 1 21 1 21 1 21 1 21 Building Maintenance - - - - - - 21 21 21 Foreman .66 .66 .66 Building Maintenance 17 17 16 16 16 16 Technician .66 .66 .66 .66 .66 .66 Building Maintenance .66 19 .66 19 .66 19 - - - - - - Lead Technician Average Overtime per Position (hours) Position Title Actual FY23 Actual FY24 Actual FY25 Projected FY26 Proposed FY27 Projected FY28 Building Official 14 3 0 24 16 16 Building Maintenance 13 19 41 24 54 54 Foreman Building Maintenance 36.5 1 51 12 16 16 Technician Performance Measures Calendar Year 2022 2023 2024 2025 2026* Building Permits Issued 50 96 92 97 95 Building Permit/Plan $ 155,900 $ 131,387 $ 171,885 $ 190,397 $ 180,000 Review Fees Number of Inspections 217 308 372 467 400 Work Orders 442 410 353 382 400 *Projected **Does not include plan reviews completed and billed directly to the Alaska State Fire Marshall Plan Review Bureau during a gap in Building Officials. These plan review fees would have added $32,650. FY26 Department Goals Evaluation Building Official 1. Maintain sufficiently licensed staff throughout the year to remain in compliance with our State Fire Marshal deferral. • Achieved. A new Building Official was brought on at the start of February. 2. Continuing participation in local and statewide building groups to ensure the continued growth of the new Building Official. • Partially Achieved. The new Building Official started in February and is beginning to participate in groups. 157 Building Maintenance Continue with facility assessments in support of the Facility Maintenance Manual with a goal of completing six additional buildings. This is in support of Goal 4 Public Improvements & Services of the City of Kenai Comprehensive Plan. • Not Achieved. The maintenance Department was backlogged in the summer, constructing new dugouts, and this winter, taking over supervision of the Custodians. The plan is to work on these assessments in the coming year and to involve a new Building Official in the process as well. FY27 Department Goals Building Official 1. Obtain two of the ICC Building, Plumbing, Mechanical, or Electrical Inspector Licenses. 2. Participation in local and statewide building groups to ensure the continued growth of the new Building Official Both goals support Goal 1 of the City of Kenai Comprehensive Plan, which promotes and encourages quality of life in Kenai. Building Maintenance Continue facility assessments to support the Facility Maintenance Manual, with a goal of completing six additional buildings. This will bring the total to twelve facilities with completed assessments before the end of the fiscal year. This is in support of Goal 4, Public Improvements & Services of the City of Kenai Comprehensive Plan Future Considerations Buildings will continue working to improve customer service for our internal customers. The Building Official is implementing new permitting software for use across several departments that will increase communication between staff and the public. 158 City of Kenai Fiscal Year 2027 Operating Budget Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Fund: 001 - General Fund Department: Buildings Five year Original Increase FY2025 Historical Budget Amended Proposed (Decrease) % Actual Average FY2026 Budget FY2027 FY2026 Original Change $ 190,369 $ 152,066 $ 206,319 $ 205,919 $ 203,568 $ (2,751) (1.33%) 5,764 1,939 1,562 1,562 4,229 2,667 170.74% - 3,212 5,622 5,622 4,225 (1,397) (24.85%) 2,798 2,232 3,096 3,096 3,074 (22) (0.71%) 42,939 33,903 45,734 45,734 45,715 (19) (0.04%) - 57 1,068 1,068 1,060 (8) (0.75%) 3,138 2,864 3,107 3,107 4,178 1,071 34.47% 61,994 61,213 61,994 61,994 46,496 (15,498) (25.00%) 5,981 3,710 6,721 6,721 6,222 (499) 7.42%) $ 312,983 $ 261,196 $ 335,223 $ 334,823 $ 318,767 $ (16,456) (4.91%) Maintenance and Operations 2021 Office Supplies - 153 300 300 300 - - 2022 Operating & Repair Supplies 21,478 24,104 37,000 37,000 27,000 (10,000) (27.03%) 2023 Repair & Maintenance Supplies - - - - - - 2024 Small Tools/Minor Equipment 1,037 2,151 2,800 2,800 2,175 (625) (22.32%) 2026 Computer Software 2,873 1,487 7,200 57,200 14,800 7,600 105.56% 4531 Professional Services 163 1,561 12,000 12,000 12,000 - - 4532 Communications 1,572 1,397 1,774 1,774 1,804 30 1.69% 4533 Travel& Transportation 14,977 7,047 8,500 8,238 8,500 - - 4534 Advertising - 86 - 1,061 - 4535 Printing & Binding - - - 4536 Insurance - 4537 Utilities - - - - - 4538 Repair& Maintenance 51,091 40,566 86,200 81,200 60,000 (26,200) (30.39%) 4539 Rentals - - - - - 4540 Equip. Fund Pmts. 5,464 5,464 6,770 6,770 6,770 4541 Postage - - - - - 4666 Books 318 359 1,000 1,000 1,000 4667 Dues & Publications 170 193 500 500 500 4999 General Contingency - - - - - 5041 Miscellaneous - - - - - 5045 Depreciation - - - - - 5047 Grants to Agencies - - - - - - Total Maint. and Operations $ 99,143 $ 84,568 $ 164,044 $ 209,843 $ 134,849 $ (29,195) 17.801/6) Capital Outlav & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Total Capital Outlay and Transfers Department Total 4,109 1,278 30,000 $ $ 5,387 $ - $ 30,000 $ - $ - - $ 412,126 $ 351,151 $ 499,267 $ 574,666 $ 453,616 $ (45,651) (9.140/6) 159 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 34 - Buildings 2022 Operating & Repair Supplies. Supplies for City wide building maintenance/repair work orders. 2024 Small Tools & Minor Equipment. Computer replacement for 3 computers, replacement printer and miscellaneous tools and equipment. 4531 Professional Services. Engineering design services for city owned facilities. 4533 Transportation. Building Official certification training a meetings. 2026 Computer Software. Plan review software and support. 4538 Repair & Maintenance. Includes repair of City facilities a Software for three computers and for surface tables. inspection/testing of elevators and fire alarm/sprinkler systems. Boi maintenance inspections, contract services for processing request work orders and garage doors. 160 City of Kenai Fiscal Year 2027 Operating Budget Fund 001 — General Fund Department 435 — Street Lighting Mission To provide safe, consistent street lighting in the City of Kenai that meets community needs. Functions & Responsibilities Street Lighting provides for the repair, maintenance, and installation of City streetlights. Field and shop maintenance of City -owned streetlights and related equipment includes troubleshooting failures, replacing parts, repairing components, and/or replacing light systems. Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 I Projected FY28 Position Title I FTE I Grade FTE FGrade FTE I Grade I FTE I Grade FTE I Grade I FTE I Grade Performance Measures Number of Street Lights City Lights LED Lights Standard Lights HEA Lights Work Orders Completed 2022 2023 2024 2025** 2026* 271 271 271 302 302 103 110 126 253 302 168 161 145 49 0 213 213 213 175 172 49 58 26 52 30 *Projected Figures **Revised data from Street Light Assessment FY26 Department Goals Evaluation With completion of the assessment and repairs completed toward the highest priority locations first, develop Capital Improvement Plans to improve existing lighting infrastructure and reduce ongoing utility and maintenance costs. This supports Goal 4 of Public Improvements and Services and Goal 5 of Transportation in the City of Kenai Comprehensive Plan by providing safe and sufficient lighting in appropriate locations. • Partially Achieved. Assessment to be completed in FY26. Some work was completed in the summer of 2025 to repair existing infrastructure. Remaining LEDs to be swapped in 2026, and plans developed for future lighting improvements. FY27 Department Goals 1. Continue conversion of all street lights to LED. 2. Work with HEA to remedy billing issues and reduce excess lighting where feasible. 3. Develop a plan for the utilization of the remaining Street Light Construction Capital Funding. These goals support Goal 4 of Public Improvements and Services and Goal 5 of Transportation in the City of Kenai Comprehensive Plan by providing safe and sufficient lighting in appropriate locations 161 Future Considerations Continue mapping underground power lines for street lights with GPS system to reduce future efforts in locate requests. Grant funding may be available for additional lighting on collector streets that serve City schools. 162 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: Street Lighting Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ (1) $ $ $ $ $ - 0200 Overtime - - 0250 Holiday Pay - 0300 Leave - 0400 Medicare - 0450 Social Security - 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement - - Total Salaries & Benefits $ (1) Maintenance and Operations 2021 Office Supplies - - 2022 Operating & Repair Supplies 2023 Repair & Maintenance Supplies 2024 Small Tools/Minor Equipment 2026 Computer Software 4531 Professional Services 4532 Communications - - - - - 4533 Travel & Transportation - - - - - 4534 Advertising - - - - - 4535 Printing & Binding - 4536 Insurance - - 4537 Utilities 160,167 157,649 170,440 170,440 180,454 10,014 4538 Repair & Maintenance 38,301 42,704 65,000 65,000 65,000 - 4539 Rentals - - - - - 4540 Equip. Fund Pmts. 4541 Postage 4666 Books - - 4667 Dues & Publications - - - - 4999 General Contingency - - - 5041 Miscellaneous - - - 5045 Depreciation - - - - 5047 Grants to Agencies - - - - - - Total Maint. and Operations $ 198,468 $ 200,353 $ 235,440 $ 235,440 $ 245,454 $ 10,014 Capital Outlay & Transfers 8061 Land - - - - - - 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers - Total Capital Outlay and Transfers $ - $ - $ - $ - $ - $ - Department Total: $ 198,467 $ 200,353 $ 235,440 $ 235,440 $ 245,454 $ 10,014 5.88% 4.25% 163 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 35 - Street Lighting 4538 Repairs & Maintenance Services. Annual street light maintenance contract. Utility locates and miscellaneous repairs. 164 City of Kenai Fiscal Year 2027 Operating Budget Fund 001 — General Fund Department 440 — Library Mission To provide a welcoming space where people can connect, learn, discover, and grow. Functions & Responsibilities The Kenai Community Library is responsible for maintaining a dynamic and diverse collection that serves patrons of all ages and abilities. The collection includes approximately 65,000 physical items and provides access to more than 3 million additional titles statewide through the Alaska Library Catalog, as well as a wide range of digital content and online resources. Library staff support literacy, lifelong learning, and creativity by delivering high -quality programs, resources, and services in a safe and welcoming environment. The Library offers quiet study rooms and early literacy resources for young learners. It also provides essential public technology services such as device lending, public computer access, indoor and outdoor wireless internet, and printing, faxing, and scanning. Organizational Chart Library Assistant (2) Staffi ng FY23 Actual Position Title FTE Grade Library 1 23 Director Administrative 1 15 Assistant III Library 3 11 Assistant LibraryAide 1 8 (40 hr/week) Library Aide 0.62 8 (25 hr/week) LibraryAide (24 hr/week) Library Aide 1.05 8 (14 hr/week) Janitor .45 3 *Temporary intern funded by a grant. City Manager Library Director Library Aide (5) FY24 Actual FY25 Actual FTE Grade FTE Grade 1 23 1 23 1 15 1 15 3 11 3 12 1 8 1 8 0.62 8 Administrative Assistant III (2) Janitor Projected FY26 Proposed FY27 Projected FY28 FTE Grade FTE Grade FTE Grade 1 23 1 23 1 23 1 15 2 15 2 15 3 12 2 12 2 12 1 8 1 8 1 8 - - 0.60 8 .60 8 .60 8 .60 8 1.05 8 1.05 8 1.05 8 1.05 8 1.05 8 .45 4 .39 6 .39 6 .35 6 .35 6 165 Performance Measures Fiscal Year 2022 2023 2024 2025 2026* Items Borrowed Physical Checkouts 72,200 80,400 78,080 87,800 82,000 Digital Checkouts 18,200 18,800 22,033 24,800 26,000 Visits and Services Visitors Welcomed 48,220 56,400 57,750 71,250 62,000 New Memberships 604 679 736 760 730 Rooms Reserved 1,201 1,552 1,682 1,860 1,900 Programs Presented 292 444 451 665 660 People Attending 1 4,625 7,700 8,540 11,900 8,000 Technology Public Computer 5,535 6,080 Sessions 6,084 6,400 5,800 *Projected Figures based on year-to-date information. FY26 Department Goals Evaluation 1. Creating a Welcoming Community Hub We aim to serve as a gathering place for all by prioritizing community needs and enhancing accessibility, both in person and virtually_ • Achieved. a. The Library is projected to welcome approximately 62,000 to 63,000 visitors (Goal: 61,500). Although it is lower than FY25, it exceeds FY24 numbers, indicating normalization after a peak year. b. The Library is on track to issue approximately 730 library cards (Goal: 650). c. The Library is on track to assist an estimated 1,900 individuals and groups in using our meeting spaces (Goal: 1, 700). 2. Promoting Literacy and Resource Access Our mission includes fostering literacy and providing valuable resources for our community. • Partially Achieved a. Physical circulation is projected at approximately 82,000, following a particularly strong FY25 (87, 800) and slightly below target. Continued growth in digital circulation (approximately 5.9% in FY25 and 48% since 2020) highlights a shift, but overall use across formats remains strong. Digital circulation is projected at between 25,500 and 26,500. b. We anticipate adding approximately 3, 000 new items, below the goal of 3,500, due to a shift toward digital collections and rising materials costs. c. The Library successfully maintained reliable access to public computers, high- speed Wi-Fi, and 2417 online resources like the OPAC, digital library, and website throughout FY26. d. Public computer session count is projected to be lower than in previous fiscal years; however, total usage time remains steady, indicating fewer but longer sessions. 166 3. Encouraging Learning Through Programs and Outreach We will inspire lifelong learning and support early literacy through diverse programs and partnerships. • Achieved. a. Programming is on track to reach approximately 660-700 programs with total attendance between 8,000 and 9,000, reflecting continued community engagement. Monthly programming is expected to average 33-42 children's programs (Goal: 34), 14-16 adult programs (Goal: 5), 8-10 all -ages programs (Goal: 7), and 2-4 teen programs (Goal: 2). While attendance per program has moderated compared to FY25, this reflects a return to more typical levels following an unusually strong FY25. b. The Library is on track to offer at least 1 D1Y kit per quarter and attend 6 outreach programs annually. c. The Library continues to build partnerships with community organizations. d. The Library continues to offer its annual Summer Reading Program. FY27 Department Goals The following department goals support the Imagine 2030 City's Comprehensive Plan, specifically Goal 1: Promote and encourage quality of life in Kenai, and Goal 4: Provide adequate public improvements and services in the city. Building on strong community support, as demonstrated by a recent City of Kenai survey in which over 80% of respondents reported being satisfied with library services, and guided by our vision "to be the confluence of ideas and information to empower our thriving community," the Library will continue to enhance collections, expand access to technology and resources, and deliver responsive programs and services that meet community needs, support lifelong learning, and contribute to a high quality of life for all residents: Creating a Welcoming Community Hub The Library will continue to serve as a welcoming community hub that supports quality of life in Kenai: a. Host approximately 60,000 to 62,000 visitors in safe, well -maintained, and comfortable spaces for interaction, reading, work, or study. b. Register around 600 to 650 new library members through ongoing outreach and community engagement. c. Support 1,700 to 1,900 uses of meeting spaces by individuals and groups by maintaining an easy reservation process and promoting space availability both in- house and online. d. Monitor responsive service and patron satisfaction (target: 80% or greater) through at least one survey and ongoing feedback tracking. 2. Promoting Literacy and Resource Access Our mission includes fostering literacy and providing valuable resources for our community: a. Assist patrons in borrowing an estimated 80,000 to 82,000 physical items and 26,000 to 27,000 digital items, using circulation trends to guide collection development decisions. b. Add approximately 2,800 to 3,000 new items, prioritizing high -demand materials and balancing physical and digital collections. 167 c. Support in-house and remote use of technology and online resources while reducing barriers by providing reliable access to public computers, high-speed Wi- Fi, 24/7 online resources, and timely assistance with technology questions. d. Increase awareness of library services through consistent marketing, including social media, newsletters, and community engagement efforts. 3. Encouraging Learning Through Programs and Outreach We will inspire lifelong learning and support early literacy through diverse programs and partnerships. a. Deliver approximately 650 to 700 programs in FY27, offering a mix of regular and special programs based on participation and community demand. b. Achieve total annual program attendance of approximately 9,000 to 10,000, reflecting modest growth from FY26. c. Offer a balanced mix of children, teens, adults, and all -ages programs, using attendance and feedback to guide program development and implementation. d. Provide at least six outreach programs and establish one or two new community partnerships to expand reach, improve quality, and respond to local interests. Future considerations 1. Collection management a. Evaluate and respond to demand for specialized collections like STEAM kits, Makerspaces, and adaptive technology. b. Monitor and respond to continued shift toward use of digital content. c. Work toward decreasing the overall age of collection, with at least 35% of the collection no older than 5 years. d. Continue work on wayfinding improvements and consider reconfiguration of space to improve access to collection. 2. Future capital needs a. Existing seating furniture is showing wear, and investment in durable and accessible furnishings will help maintain a safe, welcoming environment. b. Additional shelving will be needed in the children's area to accommodate continued growth in this high -demand collection and maintain accessible, organized spaces. 168 City of Kenai Fiscal Year 2027 Operating Budget Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Fund: 001 - General Fund Department: Library Five year Original Increase FY2025 Historical Budget Amended Proposed (Decrease) % Actual Average FY2026 Budget FY2027 FY2026 Original Change $ 465,844 $ 432,564 $ 500,478 $ 500,478 $ 516,499 $ 16,021 3.20% 2 5,031 1,677 16,548 16,548 15,821 (727) (4.39%) 6,470 5,808 7,497 7,497 7,718 221 2.95% 4,037 3,464 2,914 2,914 4,066 1,152 39.53% 87,003 82,675 95,918 95,918 99,202 3,284 3.42% - 195 2,585 2,585 2,662 77 2.98% 1,338 1,090 1,507 1,507 1,716 209 13.87% 173,693 171,596 173,693 173,693 120,252 (53,441) (30.77%) 17,980 12,834 18,898 18,898 19,789 891 4.71% $ 761,396 $ 711,905 $ 820,038 $ 820,038 $ 787,725 $ (32,313) 3.94%) Maintenance and Operations 2021 Office Supplies 793 1,373 800 800 700 (100) (12.50%) 2022 Operating & Repair Supplies 7,842 7,906 5,500 9,007 18,100 12,600 229.09% 2023 Repair & Maintenance Supplies - 2,414 - - - - - 2024 Small Tools/Minor Equipment 14,837 20,689 11,300 21,570 10,250 (1,050) (9.29%) 2026 Computer Software 5,481 3,508 24,106 25,540 27,589 3,483 14.45% 4531 Professional Services 2,170 1,731 1,700 2,000 1,700 - - 4532 Communications 4,264 4,489 3,820 4,020 4,150 330 8.64% 4533 Travel & Transportation 6,867 6,561 6,910 6,910 6,900 (10) (0.14%) 4534 Advertising 219 563 500 500 500 - 4535 Printing & Binding 3,603 3,206 3,303 3,303 3,300 (3) (0.09%) 4536 Insurance - - - - - - 4537 Utilities 59,788 62,822 74,430 74,430 65,304 (9,126) (12.26%) 4538 Repair & Maintenance 15,347 11,285 3,300 3,980 3,330 30 0.91% 4539 Rentals - 4,007 - - - - - 4540 Equip. Fund Pmts. - - - - - 4541 Postage 10,299 8,044 10,000 10,000 9,000 (1,000) (10.00%) 4666 Books 75,449 69,793 65,500 73,110 66,500 1,000 1.53% 4667 Dues & Publications 1,270 1,084 1,325 1,325 1,355 30 2.26% 4999 General Contingency - - - - - - - 5041 Miscellaneous 60 - 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 208,229 $ 209,535 $ 212,494 $ 236,495 $ 218,678 $ 6,184 2.91% Capital Outlav & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Total Capital Outlay and Transfers Department Total 2,139 4,335 $ $ 6,474 $ - $ - $ - $ $ 969,625 $ 927,914 $ 1,032,532 $ 1,056,533 $ 1,006,403 $ (26,129) (2.53%) 169 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 40 - Library 2022 Operating, Repair & Maintenance Supplies. Custodial and kitchen supplies. Processing and programming supplies. Special Projects: Staff office chairs $5,000. Camera renewal $5,000. Additional cameras $2,100. 2026 Computer Software. Cost for languages software, publicity software and work scheduling software. Library calendar, scanner, postage and Siris Dynix software. 4538 Repair & Maintenance. Maintenance agreements department specific systems, carpet and floor cleaning, wind, washing and miscellaneous contracted repairs of books a equipment. 4666 Books. Purchase of books and materials for the Library': collection. 4531 Professional Services. Transit services between Soldotna and 4667 Dues & Publications. Alaska Library Network and Associ Kenai libraries. dues, American Library Association dues and library publications. 4533 Travel & Transportation. Car allowance, professional development, AKLA conference and other professional conferences. 170 City of Kenai Fiscal Year 2027 Operating Budget Fund 001 — General Fund Department 445 — Parks, Recreation & Beautification Mission To make Kenai a more attractive place to live and play by working in partnership with the community to foster and support community well-being and healthy environments. Functions & Responsibilities The Kenai Parks, Recreation & Beautification Department manages the City's parks, recreation facilities, trails, and open spaces, ensuring they remain safe, clean, and accessible for residents and visitors. To maintain public spaces, the department provides horticultural and turf care across City properties and public rights -of -way. Responsibilities include landscaping, cemetery upkeep, irrigation, forestry management, playground maintenance, trail maintenance, trash and debris removal, graffiti cleanup, facility repairs, snow removal, trail grooming, and equipment maintenance. The department maintains and manages baseball, softball, and soccer fields, disc golf courses, pedestrian trails, and other outdoor spaces. It manages the Kenai Recreation Center, which includes the attached Kenai Teen Center, operated by the Boys & Girls Club of the Kenai Peninsula. The department also oversees the city -owned Multi -Purpose Facility (Kenai Ice Rink), managing scheduling and general oversight, while a contractor manages daily operations during the ice season. Additionally, it collaborates with an independent group that leases and operates the City Golf Course, which serves as Nordic ski trails in the winter. The department maintains the ski trails throughout the winter season. In addition to maintenance and facility management, the department supports the community by assisting residents with space reservations, coordinating volunteer efforts, and helping support public events. Organizational Chart City Manager Parks and Recreation Director Parks and Temporary Parks Assistant Parks and Parks and Recreation Laborer and Recreation Recreation Director Recreation Maintenance Maintenance Worker(11) Technician (2) Recreation Center Worker(6) `VAI Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Pro osed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Parks & Rec Director .96 23 .96 23 .96 23 .95 23 .95 23 .95 23 Assistant Director .88 19 .93 19 .93 19 .94 19 .94 19 .94 19 Maintenance Technician 1.92 14 1.92 14 1.92 14 1.91 14 1.91 14 1.91 14 Laborer .98 6 .98 6 1 .98 6 .98 6 .98 6 .98 6 Recreation Center Worker 3 3 3 Temporary Maintenance Worker 2.06 T5 2.77 Temporary Maintenance Leader _40 T3 - 4 3.35 6 3.35 6 3.35 6 3.35 6 T5 2.34 T5 2.34 T5 2.34 T5 2.34 T5 - - - - - - - Average Overtime Per Position (hours) Position Title FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Assistant Director 68 89.5 45 15 15 15 Director N/A N/A N/A N/A N/A N/A Laborer 58.5 21.5 12 10 10 10 Maintenance Technician 80 16.5 46 20 20 20 Recreation Center Worker 0 0 0 0 0 0 Temporary Maintenance Worker 39.5 38 32.25 5 5 5 Performance Measures Fiscal Year 2022 2023 2024 2025 2026* Total Recreation Center Visits 36,616** 42,484** 44,787** 39,539** 37.562** Total Program -based Activities (sponsored & co- sponsored) 7 8 8 8 16 Total Pedestrian Trails (Miles) 6.3 6.3 6.3 6.3 8.37 Total Shelter Reservations 54 41 38 58 70 Ice Reservations Hours 745 950 807 856 798 Volunteer Hours 192 215 767 810 707 Issued Tree Removal Permits 2 3 2 5 6 Total Recreation Center visits are based on recorded sign -ins and may not fully reflect actual usage, as rental groups and spectators are difficult to track. FY26 data includes all current information, with FY25 data used for months not yet completed. Program totals include in-house programs, City events, and City -sponsored events. Pedestrian trail mileage reflects all City trails, updated in FY26 as part of the Master Plan, including additions at Doublespeak Pond and minor adjustments to ski trails. Shelter and ice reservations reflect all bookings for FY25 and FY26 months for shelters, and for the MPF, the numbers reflect ice sold during the FY26 winter season. Volunteer hours include all City programs and community service contributions. Tree removal permits issued in FY26 to date. * Excludes Teen Center visits. 172 FY26 Department Goals Evaluation Publish a Parks and Recreation Master Plan. A Master Plan incorporates community input and aligns the department's long- and short-term vision with the public. This goal aligns with all current goals in the City of Kenai Comprehensive Plan. Goal 1 - Quality of Life: Promote and encourage quality -of -life initiatives in Kenai. Goal 2 - Economic Development: Provide economic development initiatives to support the community's fiscal health. Goal 3 - Land Use: Use land -use strategies to implement a forward -looking approach to community growth and development. Goal 4 - Public Improvements and Services: Provide adequate public improvements and services in Kenai. Goal 5 - Transportation: Provide transportation systems that are efficient and adequate to meet the community's regional needs. Goal 6 - Parks and Recreation: Ensure that Kenai has excellent parks, recreational facilities, and opportunities. Goal 7 - Natural Hazards and Disasters: Prepare and protect the citizens of Kenai from natural hazards and disasters. Goal 8 - Environmental Resources: Protect and enhance the community's natural resources and environment. • Achieved: This goal was completed in the 4`" quarter of FY26. 2. Establish and support a community group encouraging more people to use and enjoy the Kenai Community Garden and park, creating community engagement and recreation opportunities. This effort will include organizational and promotional support to get the group up and running and encourage community participation. By the end of 2025, the goal is to have eight garden beds rented by a group or individuals. This initiative supports Goals 1, 6, and 8 of the Kenai Comprehensive Plan. • Not Achieved. The department increased advertising efforts and participated in garden workshops hosted by the Central Peninsula Garden Club to help generate interest. However, during the summer of 2025, only one bed was reserved. The long-term success of the community garden may depend on relocating it to a site with better accessibility and visibility. 3. Establish and support a volunteer group dedicated to helping groom and maintain the ski trails in the City of Kenai, making the trails more accessible and enjoyable for winter recreation. This effort will include providing training, resources, and organizational support to ensure volunteers have the tools and knowledge needed for trail maintenance. By the end of 2025, the goal is to recruit at least three volunteers committed to keeping the trails in good condition throughout the winter season. This initiative supports Goals 1, 4, and 6 of the Kenai Comprehensive Plan by enhancing recreational opportunities, improving public services, and encouraging community involvement in maintaining valuable outdoor spaces • Achieved: Through an online poll and discussions with local coaches, the department identified a strong group of volunteers willing to assist with trail grooming. During the winter, a volunteer waiver was developed to support this effort. Next winter, the season will begin with volunteer training and the establishment of a scheduling system. 173 4. Develop and implement five key procedures, policies, or task outlines for the Parks and Recreation Department to improve efficiency, accountability, and consistency. These procedures include Employee Scheduling (covering PTO requests, schedule posting, and attendance tracking), an improvement action plan, department task management, a reservation policy, and a contract management procedure. Each procedure, policy, or task outline will be short, providing clear guidance without unnecessary complexity. These streamlined procedures will help the department operate more smoothly, ensure consistency in decision -making, improve communication among staff, and enhance overall productivity. • Achieved: An internal attendance policy, cell phone policy, and 4 reservation policies have been developed. A significant positive outcome that helped achieve this goal was participation in the City's Administrative Working Group Policy and Procedure training, which helped standardize the development process. This training has supported the creation of high -quality policies and procedures using a consistent format. FY27 Department Goals Prioritize and execute projects outlined in the to be completed Parks and Recreation Master Plan to enhance recreational spaces, improve park facilities, and ensure equitable access. Adhering to the plan ensures alignment with the city's long-term vision. The plan will serve as a guiding document for years to come, and priorities may change as circumstances vary, but it is important to use it annually. Goal 1: Quality of Life: Promote and encourage quality -of -life elements in Kenai. Goal 2: Economic Development: Provide economic development initiatives to support the community's fiscal health. Goal 3: Land Use: Use land -use strategies to implement a forward -looking approach to community growth and development. Goal 4: Public Improvements and Services: Provide adequate public improvements and services in Kenai. Goal 5: Transportation: Provide transportation systems that are efficient and adequate to meet the community's regional needs. Goal 6: Parks and Recreation: Ensure that Kenai has excellent parks, recreational facilities, and opportunities. Goal 7: Natural Hazards and Disasters: Prepare and protect the citizens of Kenai from natural hazards and disasters. Goal 8: Environmental Resources: Protect and enhance the community's natural resources and environment. 2. Develop and implement five key procedures, policies, or task outlines for the Parks and Recreation Department to improve efficiency, accountability, and consistency. Each procedure, policy, or task outline will be short, providing clear guidance without unnecessary complexity. 3. Attend 3 to 5 board meetings of the frequent users groups of Parks and Recreation. Some of the biggest users of the Parks are local groups such as the Boys and Girls Club, the Kenai Peninsula Soccer Club, Kenai Little League, Kenai Adult Softball, and the Kenai Peninsula Hockey Association. The Director would like to start attending one board meeting per year for some of these groups to improve communication and collaboration. 174 Future Considerations Establish a structured process to regularly review, assess, and update the Parks and Recreation Master Plan to ensure it remains relevant, responsive, and aligned with evolving community needs. This includes tracking progress on completed initiatives, identifying emerging priorities, evaluating changing conditions, and recommending adjustments when necessary. By treating the Master Plan as a living document, the department will support informed decision -making, strategic resource allocation, and long-term system sustainability. 175 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: Parks, Recreation & Beautification Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 538,643 $ 437,442 $ 563,229 $ 563,229 $ 577,708 $ 14,479 2.57% 0200 Overtime 6,282 3,652 2,849 2,849 2,198 (651) (22.85%) 0250 Holiday Pay - - - - - - - 0300 Leave 4,453 10,914 11,573 11,573 14,187 2,614 22.59% 0400 Medicare 8,121 6,635 8,376 8,376 8,614 238 2.84% 0450 Social Security 13,242 9,093 7,907 7,907 14,423 6,516 82.41% 0500 PERS 75,817 66,246 74,010 74,010 77,198 3,188 4.31% 0600 Unemployment Insurance - 166 2,888 2,888 2,970 82 2.84% 0700 Workers Compensation 13,350 9,278 15,614 15,614 11,606 (4,008) (25.67%) 0800 Health & Life Insurance 127,773 124,151 122,644 122,644 95,798 (26,846) (21.89%) 0900 Supplemental Retirement 18,663 11,160 15,673 15,673 18,771 3,098 19.77% Total Salaries & Benefits $ 806,344 $ 678,737 $ 824,763 $ 824,763 $ 823,473 $ (1,290) 0.16%) Maintenance and Operations 2021 Office Supplies - - - - - - - 2022 Operating & Repair Supplies 75,185 77,684 89,500 89,500 95,250 5,750 6.42% 2023 Repair & Maintenance Supplies 24,714 4,943 1,750 4,876 2,000 250 14.29% 2024 Small Tools/Minor Equipment 17,526 11,372 6,000 6,000 6,125 125 2.08% 2026 Computer Software 2,730 2,455 8,400 8,400 9,980 1,580 18.81% 4531 Professional Services 62,140 94,579 82,050 84,050 84,750 2,700 3.29% 4532 Communications 5,190 6,902 5,080 5,080 5,560 480 9.45% 4533 Travel & Transportation 5,190 3,072 6,000 6,000 6,000 - - 4534 Advertising 147 153 - - - 4535 Printing & Binding 1,248 822 1,000 1,000 1,000 4536 Insurance - - - - - - 4537 Utilities 187,612 227,544 227,699 227,699 227,303 (396) (0.17%) 4538 Repair & Maintenance 13,853 11,908 13,000 11,000 13,250 250 1.92% 4539 Rentals 15,638 16,086 17,200 17,200 17,200 - - 4540 Equip. Fund Pmts. 25,330 25,330 26,298 26,298 26,298 4541 Postage - - - - - 4666 Books - - - - - - - 4667 Dues & Publications 95 289 805 805 815 10 1.24% 4999 General Contingency - - - - - - - 5041 Miscellaneous 845 973 1,250 1,250 1,250 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 437,443 $ 484,112 $ 486,032 $ 489,158 $ 496,781 $ 10,749 2.21% Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements - - - - - 8064 Machinery & Equipment 9,976 23,279 24,900 15,000 15,000 9090 Transfers - - Total Capital Outlay and Transfers $ 9,976 $ 23,279 $ $ 24,900 $ 15,000 $ 15,000 Department Total: $ 1,253,763 $ 1,186,128 $ 1,310,795 $ 1,338,821 $ 1,335,254 $ 24,459 1.87% 176 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 45 - Parks, Recreation & Beautiification 2022 Operating & Repair Supplies. General department supplies including flowers, trees, ice melt, fertilizer, herbicides, soils, fuel, janitorial supplies. Hockey lines and paint, hockey nets and pads, Zamboni propane, park supplies, and public events supplies. Seasonal decor. Special Project: Cameras $4,000. 4531 Professional Services. Winter ice maintenance, tree removal and background checks for new hires. Kenai Boys and Girls Club Grant. 2024 Small Tools/Minor Equipment. Charge for (5) five computers, 4538 Repair & Maintenance. Restroom / vault pumping, corn winter pole decorations and miscellaneous small tools. rebuild and equipment replacement and maintenance. 2026 Computer Software. Computer software for access license, 4540 Equipment Replacement Fund Payments. Annual payment Office and Adobe. Recreation software the City's Equipment Replacement Fund for equipment purchased the fund and utilized by the department. Equipment: Zamboni PR11 Fleet: 1 Ton Pickup PR-002 1/2 Ton Pickup PR-007 1/2 Ton Pickup PR-003 1/2 Ton Pickup PR-001 3/4 Ton Pickup PR-006 1/2 Ton Pickup PR-009 5041 Miscellaneous. Disposal fees. 8064 Marhinery & Equipment. course. $15,000. $ 5,931 5,913 3,294 2,646 2,646 2,574 3,294 $ 26,298 Special Project: Bridge for g 177 City of Kenai Fiscal Year 2027 Operating Budget Fund 001 — General Fund Department 460 Boating Facility Mission The City Boating Facility (Dock) is dedicated to providing a safe facility for commercial and public access to the Upper Cook Inlet and Kenai River. Functions & Responsibilities The installation and removal of the City Dock facilities, including excavation of silt buildup on the ramps, installation of 27 floats, and seasonal pilings, are overseen and managed by the Streets division of the Public Works Department. The operation, maintenance, and repair of the facility include the dock, three cranes, restrooms, a boat launch ramp, and floats. Additionally, staff monitor the boat ramp, parking lot, fee shack, access roads, restrooms, and trash dumpsters. The Public Works Director is responsible for administering the Kenai Boating Facility lease with private enterprises. Organizational Chart City Manager Public Works Director Street Foreman Equipment Lead Operator Equipment Operator (3) Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Streets Foreman .04 21 .04 21 .04 21 .03 21 .03 21 .03 21 Lead Operator .04 19 .04 19 .04 19 .04 19 .04 19 .04 19 Operator .19 16 .19 16 .19 16 .17 16 .17 16 .17 16 178 Average Overtime Per Position (hours) Position Title FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Streets Foreman 0 0 0 23 23 23 Lead Operator 0 Operator 0 1 0 18 18 18 I 2 0 I 24 I 24 24 Performance Measures Fiscal Year 2023 2024 2025 Boating Facility Open 5/10/23 5/1/24 4/3/25 Boating Facility Closed 11 /2/22 10/26/23 10/31 /24 Number of Drop Offs 84 37 61 Number of Day Use Parking 582 531 575 Number of Boat Launches and 2,729 2,392 2,711 Parking *Projected Figures based on year-to-date information. FY26 Department Goals Evaluation 2026 4/20/26 2027* 5/1 /27* 11/3/25 11/1/26* 68 60* 544 550* 2,259 2,500* Complete the float replacements at the facility in support of Goal 4 of the Comprehensive Plan: provide adequate public improvements and services in Kenai by maintaining and rebuilding public infrastructure. • Partially Achieved. Floats are being built by City staff. Oldest floats comprising one set of ramp floats will be completed prior to opening at a minimum. Newer floats may be reused while construction is ongoing. 2. Complete the ramp replacements at Lane 4 in support of Goal 4 of the Comprehensive Plan: provide adequate public improvements and services in Kenai by maintaining and rebuilding public infrastructure. • Not Achieved. Expected to bid this summer for fall work after dip net season ends. 3. Develop policies and procedures for annual opening and closing of the dock facility to include float placement, float removal, crane inspection, dredging, and winterization. • Not Achieved. Plan to work on the next fiscal year. FY27 Department Goals 1. Complete the float replacements at the facility in support of Goal 4 of the Comprehensive Plan: provide adequate public improvements and services in Kenai by maintaining and rebuilding public infrastructure. 179 2. Complete the ramp replacements at Lane 4 in support of Goal 4 of the Comprehensive Plan: provide adequate public improvements and services in Kenai by maintaining and rebuilding public infrastructure. 3. Develop policies and procedures for annual opening and closing of the dock facility to include float placement, float removal, crane inspection, dredging, and winterization. 180 City of Kenai Fiscal Year 2027 Operating Budget Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Maintenance and Operations 2021 Office Supplies 2022 Operating & Repair Supplies 2023 Repair & Maintenance Supplies 2024 Small Tools/Minor Equipment 2026 Computer Software 4531 Professional Services 4532 Communications 4533 Travel & Transportation 4534 Advertising 4535 Printing & Binding 4536 Insurance 4537 Utilities 4538 Repair & Maintenance 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 4667 Dues & Publications 4999 Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies Fund: 001 - General Fund Department: Boating Facility Five year Original Increase FY2025 Historical Budget Amended Proposed (Decrease) % Actual Averaqe FY2026 Budget FY2027 FY2026 Original Change $ 10,081 $ 11,214 $ 17,919 $ 17,919 $ 19,498 $ 1,579 8.81% - 500 1,438 1,438 1,577 139 9.67% - 94 849 849 38 (811) (95.52%) 137 162 293 293 307 14 4.78% 18 17 - - - - - 780 1,226 1,723 1,723 4,637 2,914 169.12% - 6 101 101 106 5 4.95% 355 387 649 649 748 99 15.25% 7,453 7,370 4,610 4,610 4,811 201 4.36% 523 391 612 612 824 212 34.64% $ 19,347 $ 21,367 $ 28,194 $ 28,194 $ 32,546 $ 4,352 15.44% 3,911 1,791 5,750 5,750 5,750 704 405 800 800 800 120 2,700 2,700 2,700 - - 500 500 500 10,312 9,019 8,185 8,185 10,988 2,803 34.25% 856 421 2,500 2,500 2,500 - - 4,250 3,524 5,800 5,800 5,800 30 150 150 (150) (100.00%) Total Maint. and Operations $ 20,033 $ 15,310 $ 26,385 $ 26,385 $ 29,038 $ 2,653 10.05% Capital Outlay & Transfers 8061 Land - 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Out - - Total Capital Outlay and Transfers Department Total: $ 39,380 $ 36,677 $ 54,579 $ 54,579 $ 61,584 $ 7,005 12.83% 181 City of Kenai Fiscal Year 2027 Operating Budget Fund: 001 - General Fund Department: 60 - Boating Facility 2022 Operating & Repair Supplies. General department supplies 4538 Repair & Maintenance Services. General maintenance of d including signage, fuel, oils & greases, traffic cones, electrical supplies, and restroom maintenance. restroom and cleaning supplies. Crane startup, testing and winterizing. 4531 Professional Services. Annual crane inspection and cathodic 4539 Rentals. Rental of specialty equipment for installation inspection. removal of floating docks, garbage dumpster and boom lift to pilings/floats. Air compressor to blow down water lines. 6 mo dumpster rentals. 182 SPECIAL REVENUE FUNDS A Special Revenue Fund is established to finance particular activities and is created out of receipts of specific taxes or other designated revenues. Such funds are authorized by statutory or charter provisions to pay for certain activities with some form of continuing revenues. 1. PERSONAL USE FISHERY FUND This fund accounts for revenues and expenditures related to the Personal Use Fishery that occurs during the month of July. The fund's sources of revenue is parking and camping fees on the City's north and south beaches, and parking and boat launch fees at the City's dock. 2. WATER AND SEWER FUND This fund accounts for operations of the water and sewer system and the sewer treatment plant. User charges are designed to recover cost of operation and maintenance of the system, exclusive of depreciation and major capital improvements. 3. AIRPORT FUND This fund accounts for operations of the airport and rental and lease of surrounding airport owned lands. Significant revenue sources include, rents from leases of airport -owned lands and terminal spaces, as well as car rental commissions, vehicle parking, landing fees and investment earnings from the Airport Land Sale Permanent Fund. 4. SENIOR CITIZEN FUND This fund accounts for revenues and expenditures related to the Senior Citizens Program. The fund's sources of revenue include a grant from the Kenai Peninsula Borough, a State of Alaska nutrition, transportation and support services grant, and customer charges. This fund includes the Senior Citizens Access, Congregate Meals, Home Meals, Senior Transportation Departments and Choice Waiver. Miscellaneous, $212,900 , Intergovernmental, $747,393 , 8.21 % Rents & Leases, $1,234,421 , 13.56% Transfers In, $1,351,524, 14.84% $9,105,486 Interest/Investment Earnings, $425,000 , 4.67% Charges for Service, $5,134,248 , 56.39% $9,378,551 Senior Citizen Programs Personal Use Fishery $971,280 $418,890 10.36% 4.47% kI Transfers $2,920,300 31.14% Water & Sewer Utility $2,584,837 27.56% 183 City of Kenai Fiscal Year 2027 Operating Budget Special Revenue Funds Expenditure Recap Personal Services Maintenance and Operations FY2026 FY2027 FY2026 FY2027 Original Proposed Original Proposed Budget Budget Difference Budget Budget Difference Personal Use Fishery Fund Public Safety $ 39,781 $ 42,006 $ 2,225 $ 16,355 $ 3,537 $ (12,818) Streets 17,290 21,991 4,701 15,602 15,613 11 Parks, Recreation & Beautification 80,141 96,214 16,073 124,241 150,608 26,367 Dock 32,712 37,209 4,497 33,174 8,712 (24,462) Total Personal Use Fishery Fund 169,924 197,420 27,496 189,372 178,470 (10,902) Water and Sewer Fund Water $ 1,268,751 $ 1,295,166 $ 26,415 $ 1,379,867 $ 1,289,671 $ (90,196) Sewer - - - - - - Wastewater Treatment Plant - - - - - Total Water and Sewer Fund 1,268,751 1,295,166 26,415 1,379,867 1,289,671 (90,196) Airport Fund Terminal 222,196 219,437 (2,759) 373,453 388,134 14,681 Airfield 430,001 407,598 (22,403) 802,466 742,592 (59,874) Administration 259,416 279,725 20,309 76,397 66,521 (9,876) Other Buildings & Areas 99,542 102,104 2,562 117,787 95,150 (22,637) Training Facility - - - 152,900 151,983 (917) Total Airport Fund 1,011,155 1,008,864 (2,291) 1,523,003 1,444,380 (78,623) Senior Citizen Fund Access 160,257 158,370 (1,887) 37,567 35,420 (2,147) Congregate Meals 124,218 117,215 (7,003) 85,161 90,603 5,442 Home Meals 218,276 212,136 (6,140) 143,804 150,235 6,431 Transportation 92,004 92,638 634 24,453 23,741 (712) Choice Waiver 32,994 35,749 2,755 30,566 35,173 4,607 Total Senior Citizen Funds 627,749 616,108 (11,641) 321,551 335,172 13,621 Total Special Revenue Funds $ 3,077,579 $ 3,117,558 $ 39,979 $ 3,413,793 $ 3,247,693 $ (166,100) 184 City of Kenai Fiscal Year 2027 Operating Budget Special Revenue Funds Expenditure Recap Capital Outlay & Transfers Total Budget FY2026 FY2027 FY2026 FY2027 Original Proposed Original Proposed Budget Budget Difference Budget Budget Difference Personal Use Fishery Fund $ 92,400 $ 94,500 $ 2,100 $ 148,536 $ 140,043 $ (8,493) Public Safety 2,600 2,400 (200) 35,492 40,004 4,512 Streets 96,900 118,400 21,500 301,282 365,222 63,940 Parks, Recreation & Beautification 4,200 3,400 (800) 70,086 49,321 (20,765) Dock 196,100 218,700 22,600 555,396 594,590 39,194 Total Personal Use Fishery Fund Water and Sewer Fund $ 903,535 $ 1,017,500 $ 113,965 $ 3,552,153 $ 3,602,337 $ 50,184 Water - - - - - - Sewer - - - - - - Wastewater Treatment Plant 903,535 1,017,500 113,965 3,552,153 3,602,337 50,184 Total Water and Sewer Fund Airport Fund 61,600 64,200 2,600 657,249 671,771 14,522 Terminal 1,925,000 1,421,100 (503,900) 39157,467 29571,290 (586,177) Airfield 72,500 73,600 1,100 408,313 419,846 11,533 Administration 400,000 30,000 (370,000) 617,329 227,254 (390,075) Other Buildings & Areas - - - 152,900 151,983 (917) Training Facility 2,459,100 1,588,900 (870,200) 4,993,258 4,042,144 (951,114) Total Airport Fund Senior Citizen Fund 44,354 62,958 18,604 242,178 256,748 14,570 Access 29,334 31,941 2,607 238,713 239,759 1,046 Congregate Meals 59,459 57,794 (1,665) 421,539 420,165 (1,374) Home Meals 27,215 25,768 (1,447) 143,672 142,147 (1,525) Transportation 7,838 9,739 1,901 71,398 80,661 9,263 Choice Waiver 168,200 188,200 20,000 1,117,500 1,139,480 21,980 Total Senior Citizen Funds $ 3,726,935 $ 3,013,300 $ (713,635) $ 10,218,307 $ 9,378,551 $ (839,756) Total Special Revenue Funds 185 City of Kenai Fiscal Year 2027 Operating Budget Budget Projection Fund: 006 - Personal Use Fishery Fund Original Actual Actual Budget Projection Proposed FY2024 FY2025 FY2026 FY2026 FY2027 Revenues State Grant $ 249 $ 1,104 $ 2,051 $ 2,051 $ 3,303 Usage Fees Beach Parking 157,839 173,592 169,755 180,040 176,500 Beach Camping 216,085 238,852 222,500 265,757 247,500 Dock Launch & Park 100,489 88,423 95,000 84,624 90,000 Dock Parking Only 12,460 11,483 12,495 11,773 12,000 Participant Drop-off Fee 6,274 4,110 4,400 3,831 3,500 Total Usage Fees 493,147 516,460 504,150 546,025 529,500 Miscellaneous Revenues Investment earnings 19,502 25,066 15,000 15,000 15,000 Other (11,201) (11,603) (11,500) (14,155) (14,000) Total Miscellaneous Revenues 8,301 13,463 3,500 845 1,000 Transfer In, Capital Projects - Total Revenue 501,697 531,027 509,701 548,921 533,803 Expenditures Public Safety 122,066 120,246 148,536 148,536 140,043 Streets 26,518 25,440 35,492 35,492 40,004 Boating Facility 41,120 34,295 70,086 70,086 49,321 Parks, Recreation & Beautification 206,597 229,688 226,282 226,978 290,222 Total Expenditures 396,301 409,669 480,396 481,092 519,590 Transfers General Fund 75,000 75,000 75,000 75,000 75,000 Capital Projects - Total Transfers 75,000 75,000 75,000 75,000 75,000 Total Expenditures & Transfers 471,301 484,669 555,396 556,092 594,590 Contribution To/(From) Fund Balance: 30,396 46,358 (45,695) (7,171) (60,787) Projected Lapse - 16,632 83,327 34,389 Adjusted (Deficit)/Surplus 30,396 46,358 (29,063) 76,156 (26,398) Beginning Fund Balance 218,681 249,077 291,581 295,435 371,591 Ending Fund Balance $ 249,077 $ 295,435 $ 262,518 $ 371,591 $ 345,193 186 City of Kenai Fiscal Year 2027 Operating Budget Personal Use Fishery Fund Summary by Line Item Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 74,764 $ 82,365 $ 99,295 $ 99,295 $ 111,588 $ 12,293 12.38% 0200 Overtime 42,260 38,612 42,971 42,971 47,035 4,064 9.46% 0250 Holiday Pay - - - - - - - 0300 Leave - 147 1,295 1,295 1,410 115 8.88% 0400 Medicare 1,599 1,663 2,082 2,082 2,321 239 11.48% 0450 Social Security 5,639 5,549 6,696 6,696 7,067 371 5.54% 0500 PERS 3,228 5,965 9,335 9,335 13,316 3,981 42.65% 0600 Unemployment Insurance - 62 718 718 800 82 11.42% 0700 Workers Compensation 2,235 2,368 4,046 4,046 3,835 (211) (5.22%) 0800 Health & Life Insurance 10,196 14,595 2,276 2,276 8,619 6,343 278.69% 0900 Supplemental Retirement 718 625 1,210 1,210 1,429 219 18.10% Total Salaries & Benefits $ 140,639 $ 151,951 $ 1699924 $ 169,924 $ 1979420 $ 27,496 16.18% Maintenance and Operations 2021 Office Supplies - - - - - - - 2022 Operating & Repair Supplies 14,757 11,851 37,850 33,093 22,100 (15,750) (41.61%) 2024 Small Tools/Minor Equipment 8,856 5,064 1,050 1,050 1,050 - 2026 Computer Software 3,533 2,003 7,650 7,650 7,650 4531 Professional Services 6,958 5,449 19,488 19,488 6,000 (13,488) (69.21 %) 4532 Communications 412 498 860 860 1,060 200 23.26% 4533 Travel & Transportation - - - - - - - 4534 Advertising - - - - - 4535 Printing & Binding 2,987 1,772 3,000 3,000 3,000 - - 4536 Insurance 5,201 4,171 5,185 5,185 5,256 71 1.37% 4537 Utilities - - - - - - - 4538 Repair & Maintenance 6,000 4,173 9,000 9,000 10,250 1,250 13.89% 4539 Rentals 107,726 93,631 103,289 108,742 120,104 16,815 16.28% 4540 Equip. Fund Pmts. - - - - - - - 4541 Postage - 4666 Books 4667 Dues & Publications 4999 General Contingency - - - - - 5041 Miscellaneous 2,000 2,000 2,000 2,000 2,000 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 158,430 $ 130,612 $ 1899372 $ 190,068 $ 1789470 $ (10,902) (5.76%) Capital Outlay & Transfers 8061 Land - - 8062 Buildings - - - 8063 Improvements - - - - - - 8064 Machinery & Equipment - 1,106 20,000 20,000 43,000 23,000 115.00% 9090 Transfers 185,600 191,069 176,100 176,100 175,700 (400) (0.23%) Total Capital Outlay and Transfers $ 185,600 $ 192,175 $ 196,100 $ 196,100 $ 218,700 $ 22,600 11.52% Department Total: $ 484,669 $ 474,738 $ 5559396 $ 556,092 $ 594,590 $ 39,194 7.06% 187 City of Kenai Fiscal Year 2027 Operating Budget Fund 006 — Personal Use Fishery Fund Mission Provide a safe, positive, and inviting environment for residents, visitors, and businesses during the Kenai River Personal Use Fishery. Functions and Responsibilities The personal use (PU) fishery fund is comprised of four separate budgets: PU Public Safety, PU Streets, PU Dock, and PU Recreation: PU Public Safety provides additional Police protection with five Temporary Enforcement Officers. The Police Department provides traffic control, issues parking citations, and provides all other law enforcement needs. Communications provides dispatch services for the Police and Fire departments. The Fire Department provides Fire and EMS services, as well as patrols of the river no -wake zone in the City's fire boat. PU Streets is responsible for maintaining the road and parking lots associated with the fishery. They also set up signs, placed traffic control barriers, and transported temporary fee shacks. The Street Department also sets dock floats, installs no -wake signs, and dredges the boat ramp. PU Dock is responsible for managing the City Boating Facility for the duration of the PU fishery. This includes maintenance of the facilities, traffic control in the parking area, and active management of the boat launch ramps. PU Recreation is responsible for the operation of the North and South Beaches, the Little League parking area, and the Softball field overflow parking. Duties include servicing permanent restrooms and outhouses, staffing fee shacks, beach cleaning, parking facilities, and any other tasks that arise. Facilities City Boating Facility (Dock): The dock is comprised of four boat launch ramps, a gravel parking area, permanent restrooms with running water, and a permanent fee shack. Temporary outhouses and dumpsters are also provided in the parking area to accommodate the fishery's high demand. North Beach: The North Beach is comprised of a large gravel parking lot, six permanent outhouses, and approximately one mile of beach access to the fishery. Additional parking is available at the Little League park, which also includes two temporary fee shacks within the roadway with a temporary bypass for local area traffic. Temporary outhouses and dumpsters are also provided throughout the North Beach access area. Overflow parking is provided at the Kenai Softball Fields. A large gravel parking lot is provided with permanent running water and restrooms. This site is also adjacent to the Greenstrip, which includes picnic shelters, playground equipment, and additional running water restrooms. South Beach: The South Beach comprises beach access, one permanent outhouse, and one temporary fee shack. Access to the fishery is via the beach, with ample sand parking and a camping area 3/4 of a mile from the road. Temporary outhouses and dumpsters are provided within the parking area. 188 Organizational Chart Police Chief Police Lieutenant Police Sergeant (3) remp. Enforcement Officer(5) Staffing PU Public Safety Public Works Director Street Foreman Equipment Lead Operator Equipment Operator (3) City Manager Parksand Recreation Director Assistant Parks and Recreation Director -- / 11� Parks and Recreation Laborer Pare Recreation Maintenance Technician (2) Tem�� Personal Use Fishery Cashier Temporary� Personal Use Fishery Atten�� Tempor ry r� and Recreation Maintenance Worker(11) / Finance Director IT Manager Desktop Support Technician FY23 Actual FY24 Actual FY25 Actual Projected FY26 Pro osed FY27 Pro' Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTI Temporary Enforcement .56 T8 .56 T8 .56 T .56 T8 .56 T8 Officer 8 PU Streets acted FY28 Grade 56 T8 FY23 Actual FY24 Actual FY25 Actual Projected FY26 Pro osed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Street Foreman .02 21 .02 21 .02 21 .02 21 .02 21 .02 21 Equipment Lead 3 14 14 19 19 19 19 .0 O erator .03 .03 .03 .03 .03 Equipment 3 16 16 16 16 16 16 .1 Operator .13 ..08 .08 .08 .08 189 PU Dock FY23 Actual FY24 Actual FY25 Actual Projected FY26 Pro osed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Parks & Rec 23 23 23 23 23 23 Director .01 .01 .01 .01 .01 .01 Street Foreman .04 21 .02 21 .02 21 .02 21 .02 21 .02 21 Assistant Director .03 19 .03 19 .03 19 .03 19 .03 19 .03 19 Equipment Lead Operator .04 19 .02 19 .02 19 .02 19 .02 19 .02 19 Equipment Operator .19 16 .02 16 .02 16 .02 16 .02 16 .02 16 Parks & Rec Maintenance .01 14 .01 14 .01 14 .01 14 .01 14 .01 14 Technician Temporary Parks & Rec Maintenance .02 T5 .02 T5 .02 T5 .02 T5 .02 T5 .02 T5 Temporary PUF Attendant .36 T4 .36 T4 .36 T5 .36 T5 .36 T5 .36 T5 PU Parks, Recreation & Beautification Position Title FY23 Actual FY24 Actual FY25 Actual Projected FY26 Pro osed FY27 Projected FY28 FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade IT Manager .09 23 .09 23 .02 23 .02 23 .02 23 .02 23 Parks & Rec Director .04 23 .04 23 .04 23 .04 23 .04 23 .04 23 Assistant Director .12 19 .03 19 .03 19 .03 19 .03 19 .03 19 Parks & Rec Maintenance Technician .08 14 .08 14 .08 14 .08 14 .08 14 .08 14 IT Desktop Support Technician Parks & Rec Laborer .09 13 .09 13 .02 13 .02 13 .02 13 .02 13 .02 6 .02 6 .02 6 .02 6 .02 6 .02 6 Temporary Parks & Rec Maintenance .13 T5 1 .33 T5 .33 T5 .33 T5 .33 T5 .33 T5 Temporary PUF Attendant .07 T5 .07 T5 .07 T5 .07 T5 .07 T5 .07 T5 Temporary PUF Cashier .57 Temporary Parks & Rec Maintenance Leader .06 T3 .54 T3 .57 T3 .57 T3 .57 T3 .57 T3 T3 - - - - - - - - - - Performance Measures Fiscal Year 2023 2024 2025 2026 2027* Total Transactions 17,157 16,828 17,500 18,422 18,500 Dipnet Kenai page views 207,425 131,200 115,600 46,200 75,000 Traffic Control Calls 3 1 0 0 10 1 2 Vendor Days' 6 25 21 *Projected Figures based on year-to-date information. 1 A cumulative total of how many vendors are present at noon each day FY26 Department Goals Evaluation 1. Inventory and Restore Dipnet Sign Storage. Over the years, Parks has purchased and refreshed many signs for the PU Fishery. However, some of these signs are no longer usable due to outdated information, contributing to the depletion of our sign storage capacity. Doing a property inventory will help the department sign orders in the future. 190 • Partially Achieved: This goal was initiated and evolved as work progressed. Some new maps and setup sheets were created using a format that catalogs signs, but the approach needs to be standardized and implemented across all setup locations. The maps and setup sheets that were created so far have helped with fishery deployment and supported this goal. The signs will be fully cataloged with the completion of FY27's new goals. 2. Move and Repair One of the Walkways on North Beach. Parks typically perform routine excavation of the walkways every few years. However, this method is no longer effective due to the accelerated build-up of dunes. In FY26, Parks and Recreation plans to excavate and elevate one walkway to assess the viability of this solution. This initial effort will help determine if it can be implemented in-house for the future project • Achieved: The walkway that was buried due to high tide and shifting sand was excavated, and parks deployed several new techniques to remove sand and displace it to keep the walkways usable and easily renovate in the future. This practice will be repeated as needed in future years. FY27 Department Goals 1. Create and complete detailed setup maps for all sites and locations, using a consistent format. Last year, maps were created for Spruce Street and the dock, and this improvement greatly assisted staff with setup, layout, and equipment inventory. 2. Restructure the website to accommodate the removal of the dip net app, consolidating information onto a single, mobile -friendly page. This will require updating and aligning all current information and services to ensure that all relevant data is consistent, accurate, and easily accessible on the dip net webpage Future Considerations Participants in the fishery have repeatedly mentioned that the City of Kenai should have a permanent campground available during the fishery and other summer months. 191 City of Kenai Fiscal Year 2027 Operating Budget Fund 006 - Personal Use Fishery Fund Department: 421- Public Safety Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 23,167 $ 21,968 $ 24,273 $ 24,273 $ 25,390 $ 1,117 4.60% 0200 Overtime 11,519 9,826 11,645 11,645 12,422 777 6.67% 0250 Holiday Pay - - - - - - - 0300 Leave - - - - - - - 0400 Medicare 503 461 521 521 548 27 5.18% 0450 Social Security 2,151 1,950 2,227 2,227 2,344 117 5.25% 0500 PERS - 43 - - - - - 0600 Unemployment Insurance - 15 180 180 189 9 5.00% 0700 Workers Compensation 648 607 935 935 1,113 178 19.04% 0800 Health & Life Insurance - - - - - - - 0900 Supplemental Retirement Total Salaries & Benefits $ 37,988 $ 34,870 $ 39,781 $ 39,781 $ 42,006 $ 2,225 5.59% Maintenance and Operations 2021 Office Supplies 2022 Operating & Repair Supplies - 2024 Small Tools/Minor Equipment 1,749 2026 Computer Software - - - 4531 Professional Services 3,520 14,100 14,100 (14,100) (100.00%) 4532 Communications - - - 4533 Travel & Transportation 4534 Advertising 4535 Printing & Binding - - - - - - - 4536 Insurance 958 757 1,005 1,005 1,037 32 3.18% 4537 Utilities - - - - - - - 4538 Repair & Maintenance 1,250 1,250 2,500 1,250 100.00% 4539 Rentals - - - - - 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 4667 Dues & Publications 4999 Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 958 $ 6,026 $ 16,355 $ 16,355 $ 3,537 $ (12,818) 78.37%) Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements - - - - - - 8064 Machinery & Equipment - 1,064 20,000 20,000 23,000 3,000 15.00% 9090 Transfers Out 81,300 66,040 72,400 72,400 71,500 (900) (1.240/6) Total Capital Outlay and Transfers $ 81,300 $ 67,104 $ 92,400 $ 92,400 $ 94,500 $ 2,100 2.27% Department Total: $ 120,246 $ 108,000 $ 148,536 $ 148,536 $ 140,043 $ (8,493) (5.72%) 192 City of Kenai Fiscal Year 2027 Operating Budget Fund 006 - Personal Use Fishery Fund Department: 421 - Public Safety 4531 Professional Services. Boat operator course. 8064 Machinery & Equipment Special Project: Ranger replacement $12,000. 4538 Repair & Maintenance. AED maintenance costs. 193 City of Kenai Fiscal Year 2027 Operating Budget Fund 006 - Personal Use Fishery Fund Department: 433- Streets Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 6,561 $ 8,290 $ 9,640 $ 9,640 $ 10,852 $ 1,212 12.57% 0200 Overtime 211 531 2,542 2,542 2,791 249 9.80% 0250 Holiday Pay - - - - - - - 0300 Leave - 36 450 450 459 9 2.00% 0400 Medicare 93 121 183 183 204 21 11.48% 0450 Social Security - - - - - - - 0500 PERS 1,753 1,796 3,451 3,451 4,072 621 17.99% 0600 Unemployment Insurance - 6 63 63 70 7 11.11% 0700 Workers Compensation 237 295 437 437 479 42 9.61% 0800 Health & Life Insurance 3,206 4,156 198 198 2,605 2,407 1,215.66% 0900 Supplemental Retirement 294 180 326 326 459 133 40.80% Total Salaries & Benefits $ 12,355 $ 15,411 $ 17,290 $ 17,290 $ 21,991 $ 4,701 27.19% Maintenance and Operations 2021 Office Supplies - - - - - 2022 Operating & Repair Supplies 1,857 2,097 2,800 2,800 2,800 2024 Small Tools/Minor Equipment - - - - - 2026 Computer Software 4531 Professional Services 4532 Communications 4533 Travel & Transportation 4534 Advertising 4535 Printing & Binding - - - - - - 4536 Insurance 341 345 348 348 359 11 4537 Utilities - - - - - - 4538 Repair & Maintenance - - - - - 4539 Rentals 7,387 9,709 12,454 12,454 12,454 4540 Equip. Fund Pmts. - - - - - 4541 Postage 4666 Books 4667 Dues & Publications 4999 Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 9,585 $ 12,151 $ 15,602 $ 15,602 $ 15,613 $ 11 Capital Outlay & Transfers 3.16% 0.07% ovui Land - - - - - - - 8062 Buildings 8063 Improvements 8064 Machinery & Equipment - - - - - - 9090 Transfers Out 3,500 4,160 2,600 2,600 2,400 (200) (7.69%) Total Capital Outlay and Transfers $ 3,500 $ 4,160 $ 2,600 $ 2,600 $ 2,400 $ (200) (7.69%) Department Total: $ 25,440 $ 31,722 $ 35,492 $ 35,492 $ 40,004 $ 4,512 12.71% 194 City of Kenai Fiscal Year 2027 Operating Budget Fund 006 - Personal Use Fishery Fund Department: 433 - Streets 2022 Operating & Repair Supplies. Departmental supplies including 4539 Rentals. Rental of General Fund equipment to be used in gravel for beach acces roads, calcium chloride, signage and fuel. preparation for and operations of the fishery. 4535 Insurance. General liability and broker fee. 195 City of Kenai Fiscal Year 2027 Operating Budget Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Maintenance and Operations 2021 Office Supplies 2022 Operating & Repair Supplies 2024 Small Tools/Minor Equipment 2026 Computer Software 4531 Professional Services 4532 Communications 4533 Travel & Transportation 4534 Advertising 4535 Printing & Binding 4536 Insurance 4537 Utilities 4538 Repair & Maintenance 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 4667 Dues & Publications 4999 Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies Fund 006 - Personal Use Fishery Fund Department: 445- Parks, Recreation & Beautificat Five year Original Increase FY2025 Historical Budget Amended Proposed (Decrease) % Actual Average FY2026 Budget FY2027 FY2026 Original Change $ 31,398 $ 36,090 $ 44,112 $ 44,112 $ 51,730 $ 7,618 17.27% 23,304 20,773 23,850 $ 23,850 26,535 2,685 11.26% - 87 498 $ 498 569 71 14.26% 701 752 993 $ 993 1,144 151 15.21 % 2,299 2,446 3,341 $ 3,341 3,531 190 5.69% 1,373 3,266 3,989 $ 3,989 6,355 2,366 59.31% - 28 342 $ 342 394 52 15.20% 966 994 1,952 $ 1,952 1,543 (409) (20.95%) 5,270 8,365 444 $ 444 3,809 3,365 757.88% 417 381 620 $ 620 604 (16) 2.58%) $ 65,728 $ 73,182 $ 80,141 $ 80,141 $ 96,214 $ 16,073 20.06% 12,830 7,980 12,250 7,493 16,500 4,250 34.69% 8,856 3,315 1,050 1,050 1,050 - - 3,533 2,003 7,650 7,650 7,650 - - 6,958 1,929 5,388 5,388 6,000 612 11.36% 412 498 860 860 1,060 200 23.26% 2,987 1,772 3,000 3,000 3,000 - - 3,220 2,484 3,093 3,093 3,098 5 0.16% 6,000 4,173 7,750 7,750 7,750 - - 95,364 77,743 81,200 86,653 102,500 21,300 26.23% 2,000 2,000 2,000 2,000 2,000 Total Maint. and Operations $ 142,160 $ 103,897 $ 124,241 $ 124,937 $ 150,608 $ 26,367 21.22% Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Out Total Capital Outlay and Transfers Department Total: - 42 - - 20,000 20,000 - 96,800 93,300 96,900 96,900 98,400 1,500 1.55% $ 96,800 $ 93,342 $ 96,900 $ 96,900 $ 118,400 $ 21,500 $ 304,688 $ 270,421 $ 301,282 $ 301,978 $ 365,222 $ 63,940 22.19% 21.22% 196 City of Kenai Fiscal Year 2027 Operating Budget Fund 006 - Personal Use Fishery Fund Department: 445-Parks, Recreation & Beauti 2022 Operating & Repair Supplies. For the purchase of signage, 4539 Rentals. For the rental of portable toilets and dumpsters. janitorial supplies, receipt bags, zip ties, traffic cones, thermal paper, Van rental. door hangers, brochures and printer ribbons. Vehicle fuel. Special Project: Sign laminator $3,000. 2026 Computer Software. Personal Use Fishery software fees and 5041 Miscellaneous. Post fishery beach cleanup by Kenai Central streaming server. High School Nordic Ski Team. 4531 Professional Services. Personal Use Fishery software modification consultant. 4538 Repairs & Maintenance Services. Restroom vault pumping and repairs. 8064 Machinery & Equipment. Special Project: Utility Vehicle $20,000. 197 City of Kenai Fiscal Year 2027 Operating Budget Fund 006 - Personal Use Fishery Fund Department: 460- Boating Facility Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 13,638 $ 16,017 $ 21,270 $ 21,270 $ 23,616 $ 2,346 11.03% 0200 Overtime 7,226 7,482 4,934 4,934 5,287 353 7.15% 0250 Holiday Pay - - - - - - - 0300 Leave - 24 347 347 382 35 10.09% 0400 Medicare 302 329 385 385 425 40 10.39% 0450 Social Security 1,189 1,153 1,128 1,128 1,192 64 5.67% 0500 PERS 102 860 1,895 1,895 2,889 994 52.45% 0600 Unemployment Insurance - 13 133 133 147 14 10.53% 0700 Workers Compensation 384 472 722 722 700 (22) (3.05%) 0800 Health & Life Insurance 1,720 2,074 1,634 1,634 2,205 571 34.94% 0900 Supplemental Retirement 7 64 264 264 366 102 38.64% Total Salaries & Benefits $ 24,568 $ 28,488 $ 32,712 $ 32,712 $ 37,209 $ 4,497 13.75% Maintenance and Operations 2021 Office Supplies - - - - - 2022 Operating & Repair Supplies 70 1,774 22,800 22,800 2,800 (20,000) (87.72%) 2024 Small Tools/Minor Equipment - - - - - 2026 Computer Software 4531 Professional Services 4532 Communications 4533 Travel & Transportation 4534 Advertising 4535 Printing & Binding - - - - - - - 4536 Insurance 682 585 739 739 762 23 3.11% 4537 Utilities - - - - - - - 4538 Repair & Maintenance - - - - - 4539 Rentals 4,975 6,179 9,635 9,635 5,150 (4,485) (46.55%) 4540 Equip. Fund Pmts. - - - - - 4541 Postage 4666 Books 4667 Dues & Publications 4999 Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 5,727 $ 8,538 $ 33,174 $ 33,174 $ 8,712 $ (24,462) 73.74°/u) Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment - - - - - - 9090 Transfers Out 4,000 27,569 4,200 4,200 3,400 (800) (19.05%) Total Capital Outlay and Transfers $ 4,000 $ 27,569 $ 4,200 $ 4,200 $ 3,400 $ (800) (19.05%) Department Total: $ 34,295 $ 64,595 $ 70,086 $ 70,086 $ 49,321 $ (20,765) (29.63%) 198 City of Kenai Fiscal Year 2027 Operating Budget Fund 006 - Personal Use Fishery Fund Department: 460 - Boating Facility 2022 Operating & Repair Supplies. For the purchase of stripping 4539 Rentals. For the rental of portable toilets to supplement the paint, bathroom supplies, road cones/string, calcium chloride for onsite restrooms during peak season, and rental of General Fund dust control and other supplies for operations of the fishery. Equipment for preparation and operations of the fishery. 4536 Insurance. General liability and broker fee. 199 City of Kenai Fiscal Year 2026 Operating Budget Budget Projection Fund: 010 - Water and Sewer Fund Original Actual Actual Budget Projection Proposed FY2024 FY2025 FY2026 FY2026 FY2027 Revenues PERS Grant $ 20,117 $ 31,019 $ 45,879 $ 45,879 $ 54,047 Usage Fees Service Hook-up 11,191 15,689 10,151 10,154 11,965 Residential Water 985,426 1,020,510 1,029,363 1,030,872 1,070,543 Commercial Water 370,037 392,540 396,588 353,965 412,454 Residential Sewer 1,382,479 1,452,174 1,444,145 1,455,077 1,501,920 Commercial Sewer 480,225 524,536 535,889 482,174 557,328 Total Usage Fees 3,229,358 3,405,449 3,416,136 3,332,242 3,554,210 Miscellaneous Revenues Penalty and Interest 39,038 43,913 42,588 39,337 42,588 Interest Earnings 200,941 256,882 170,000 170,000 170,000 Other 82,687 347,199 275,000 336,761 5,000 Total Miscellaneous Revenues 322,666 647,994 487,588 546,098 217,588 Transfer In, Capital Projects 30,000 155,166 - - - Total Revenues 3,602,141 4,239,628 3,949,603 3,924,219 3,825,845 Expenditures Utilities Department 2,455,206 2,347,683 3,052,153 3,052,153 2,892,337 Transfers Capital Projects 679,970 889,291 500,000 1,250,000 710,000 Total Expenditures & Transfers 3,135,176 3,236,974 3,552,153 4,302,153 3,602,337 Contribution To/(From) Fund Balance: 466,965 1,002,654 397,450 (377,934) 223,508 Projected Lapse (6%) - - 169,629 165,357 155,090 Adjusted (Deficit)/Surplus 567,079 (212,577) 378,598 Beginning Fund Balance 1,493,389 1,960,354 1,157,702 2,963,008 2,750,431 Ending Fund Balance $ 1,960,354 $ 2,963,008 $ 1,724,781 $ 2,750,431 $ 3,129,029 200 City of Kenai Fiscal Year 2027 Operating Budget Fund 010 —Water and Sewer Fund Department 465 — Water and Sewer Mission To provide high -quality, safe potable water, as well as the secure safe handling/disposal of wastewater in compliance with all state and federal regulations in the most cost-effective, safe, and efficient manner possible, while providing a consistently reliable service to the citizens of Kenai. Note: Water and Sewer Budget and Wastewater Treatment Plan Budgets will be combined into a single budget starting FY27. Functions & Responsibilities The City's water distribution system consists of four wells, one water treatment facility, two pump houses, a 60,000-gallon tank, a 1,000,000-gallon tank, a 3,000,000-gallon tank, and approximately 60 miles of water pipe. The system serves approximately 2,000 service connections. The system meets all state, local, and federal mandates applying to all safety standards and the Clean Water Act. The Water Treatment Facility presently treats water from a winter low of approximately 580,000 gallons a day to a summer peak of just over 1 million gallons a day. The City of Kenai's sewer collection system serves approximately 2,000 customers. The City maintains approximately 46 miles of sewer pipe and 19 lift stations. The collection system transfers all wastewater to the Wastewater Treatment Facility, where we are permitted to process 1.3 million gallons of wastewater daily. We operate the facility under an Alaska Pollutant Discharge Elimination System (APDES) permit and comply with all discharge requirements, testing, reporting, and record -keeping. Staff must comply with Alaska Department of Environmental Conservation (DEC) training and certification requirements to properly operate and maintain our water and sewer utilities. Organizational Chart City Manager Public Works l� Administrative Director l Assistant III Utility Foreman 1/11 Utility Lead Utility Operator (2) Operator 1/II (4) 201 Staffina FY23 Actual FY24 Actual FY25 Actual Projected FY26 Pro osed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Public Works Director .11 28 .12 28 .29 28 .30 28 .37 28 .37 28 Asst. Public Works Director - - - - - - .30 24 .37 24 .37 24 Utility Foreman 1/II 1 21/22 1 21/22 1 21/22 1 21/22 1 21/22 1 21/22 Utility Lead Operator 2 19 2 19 2 19 2 19 2 19 2 19 Utility Operator 1/11 4 15/18 4 15/18 4 15/18 4 15/18 4 15/18 4 15/18 Administrative Assistant III .11 15 .12 15 .29 15 .30 15 .37 15 .37 15 Accounting Technician 1 .5 14 .5 14 .5 14 .5 14 .5 14 .5 14 Administrative Assistant 1 .31 13 .31 13 .31 13 .31 13 .31 13 .31 13 Temporary Utility - - - - - - .25 T12 .25 T12 .25 T12 Technician Average Overtime Per Position (hours) Position Title FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Public Works Director N/A N/A N/A N/A N/A N/A Administrative Assistant III N/A N/A N/A N/A N/A N/A Utility Foreman 1/II 28.5 15 19.5 40 80 80 Utility Lead Operator 113.5 40 88.5 90 150 150 Utility Operator 1/11 239.5 198.75 330.5 300 300 300 Performance Measures Fiscal Year Permitted plant flow vs. 2022 2023 2024 2025 2026* 1.3/.500 1.3/.501 1.3/.527 1.3/.528 1.3/.443 Actual plant flow (million gallons mgd mgd mgd mgd mgd per day) 0 1 Number of discharge 0 1 3 violations/exceptions Tons of sludge were taken to the 835 485 700 516 700 dump 3 of 7 Number of fully licensed 3 of 7 3 of 7 1 of 7** 1 of 7** operators 2,037 2,052 2,072 Water customers 1,992 2,008 Sewer customers 1,951 1,966 1,989 2,009 2,028 Metered connections 237 240 251 251 254 Turn on/off 51 49 53 54 60 811 locates 624 500 1,495** 1,248** 1,200 668 599 693 619 680 Shutoff tags hung *Projected **Plant increased to Level 3 Certification. Staff are currently testing to achig2 certification and cross -training to work in all areas of the Utility Department The Assistant Public Works Director is fully certified for plant operation. ***ENSTAR is completing main replacements. FY26 Department Goal Evaluation Revise job descriptions and positions to make all Utility Department positions cross - trained between the Water and Sewer Department and the WWTP Department. • Achieved 2. Successfully complete the demo and replacement of the Digester Blowers, including the new structure to house the units adjacent to the Digester. • Partially Achieved. The project is ongoing and will be completed next fiscal year. 3. Revise and update construction specifications for water and sewer improvements. • Partially Achieved. Standards are in progress and will be approved this fiscal year. 4. Locate 30% of City water services with a GPS unit to upload into the GIS system for ease of future locates. • Partially Achieved. Ongoing project. FY27 Department Goals 5. Revise and improve the water and sewer permitting system to include better documentation, drawings, and customer notifications and approvals. This supports Goal 4 of the City of Kenai Comprehensive Plan of providing Public Improvements and Services. 6. Successfully complete the demo and replacement of the Digester Blowers, including the new structure to house the units adjacent to the Digester. This supports Goal 8 of the City of Kenai Comprehensive Plan to Protect and Enhance the natural resources and environment. 7. Successfully complete the construction of the new water pumphouse to provide improved pressures and flow throughout the City. This supports Goal 4 of the City of Kenai Comprehensive Plan of providing Public Improvements and Services. Future Considerations Aging, obsolete equipment, and infrastructure require more frequent and more expensive repairs and replacement. Increased State and Federal water and sewer quality standards and testing requirements fuel the need to upgrade and purchase new equipment and technology to adequately maintain the City's infrastructure. Grant funding for major utility projects is becoming harder to obtain, and more capital projects are expected to be funded locally. 203 City of Kenai Fiscal Year 2027 Operating Budget Fund: 010 - Water & Sewer Fund Department:- Utilities Department Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 664,265 $ 615,617 $ 725,960 $ 725,960 $ 766,116 $ 40,156 5.53% 0200 Overtime 30,097 27,780 24,245 24,245 35,272 11,027 45.48% 0250 Holiday Pay - - - - - - - 0300 Leave 6,663 7,090 24,020 24,020 21,332 (2,688) (11.19%) 0400 Medicare 9,725 9,037 11,227 11,227 11,929 702 6.25% 0450 Social Security - - 1,256 1,256 834 (422) (33.60%) 0500 PERS 188,228 174,245 206,791 206,791 235,123 28,332 13.70% 0600 Unemployment Insurance - 281 3,872 3,872 4,114 242 6.25% 0700 Workers Compensation 12,798 11,742 15,660 15,660 17,103 1,443 9.21% 0800 Health & Life Insurance 222,613 218,323 237,113 237,113 178,823 (58,290) (24.58%) 0900 Supplemental Retirement 24,181 16,169 18,607 18,607 24,520 5,913 31.78% Total Salaries & Benefits $ 1,158,570 $ 1,080,284 $ 1,268,751 $ 1,268,751 $ 1,295,166 $ 26,415 2.08% Maintenance and Operations 2021 Office Supplies 2,038 1,162 6,150 6,150 3,250 (2,900) (47.15%) 2022 Operating & Repair Supplies 269,457 239,090 306,150 306,150 258,150 (48,000) (15.68%) 2024 Small Tools/Minor Equipment 16,358 23,571 37,700 37,700 34,450 (3,250) (8.62%) 2026 Computer Software 5,184 7,168 14,980 14,980 14,130 (850) (5.67%) 4531 Professional Services 150,849 106,151 257,888 257,888 210,900 (46,988) (18.22%) 4532 Communications 17,806 18,628 24,914 24,914 25,099 185 0.74% 4533 Travel & Transportation 6,392 2,421 11,000 11,000 11,000 - - 4534 Advertising 267 467 1,750 1,750 1,750 4535 Printing & Binding 511 393 1,850 1,850 1,850 - - 4536 Insurance 76,812 57,605 78,132 78,132 82,423 4,291 5.49% 4537 Utilities 496,881 475,199 514,733 514,733 525,129 10,396 2.02% 4538 Repair & Maintenance 31,569 21,946 59,167 59,167 65,000 5,833 9.86% 4539 Rentals 16,993 17,483 24,720 24,720 26,240 1,520 6.15% 4540 Equip. Fund Pmts. - - - - - - - 4541 Postage 10,887 8,920 19,933 19,933 9,500 (10,433) (52.34%) 4666 Books - 460 3,000 3,000 3,000 4667 Dues & Publications 4,280 4,700 9,600 9,600 9,600 4999 Contingency - - - - - 5041 Miscellaneous 7,920 6,336 8,200 8,200 8,200 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 1,114,204 $ 991,700 $ 1,379,867 $ 1,379,867 $ 1,289,671 $ (90,196) 6.54%) Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Out Total Capital Outlay and Transfers Department Total: 14,911 5,324 107,335 107,335 - (107,335) (100.00%) 949,289 1,368,555 796,200 1,546,200 1,017,500 221,300 27.79% $ 964,200 $ 1,373,879 $ 903,535 $ 1,653,535 $ 1,017,500 $ 113,965 $ 3,236,974 $ 3,445,863 $ 3,552,153 $ 4,302,153 $ 3,602,337 $ 50,184 12.61 % 1.41 % 204 City of Kenai Fiscal Year 2027 Operating Budget Fund 006 - Personal Use Fishery Fund Department: 465 - Utilities 2022 Operating & Repair Supplies. The most significant operating supply for the department are the chemicals utilized in the water treatment process. Also includes fuel, valves, fittings, meters and protective clothing. Supplies for the maintenance of lift stations (motor starters, radios, breakers, transducers, pumps, etc.), manholes, and other consumables. Other supplies include testing supplies and fuel for vehicles. 2024 - Small Tools & Minor Equipment. Computer replacements, vactor hoses, jetting nozzles, utility paint and markers, and gas monitoring sensors. Equipment maintenance tools and parts, lab mats, chair and microscope and batteries. 4531 Professional Services. Engineering / Testing services. Lab work, SCADA services, cathodic protection inspections and drug testing. Vac truck dumping, Alaska dig line, cathodic protection inspections electrical troubleshooting and professional consulting. Telemetry and other consulting services used to efficient and effectively manage the utility's operation, including lab testing and equipment calibration. Waste hauling service, vaccinations and ADEC permit testing. Sludge disposal landfill fees. 4533 Transportation. Travel for continuing education. 4538 Repair & Maintenance. Professional services for repair and maintenance of the water system. Professional services for sewer lift station/collection systems repairs including level transducers, cell modems etc. 4539 Rentals Water reservoir #1 land rental $16,490, Well 1 land lease, excavator rental for key box repairs, miscellaneous tools and accessories. 4541 Postage. Public notifications and monthly water/sewer billings postage. 9090 Transfers Out. $307,500 Central administrative charges from General Fund and $710,000 transfer to water capital projects. 205 City of Kenai Fiscal Year 2027 Operating Budget Fund 008 - Airport Fund Department:- Airport Fund Summary Original Actual Actual Budget Projection Proposed FY2024 FY2025 FY2026 FY2026 FY2027 Revenues State & Federal Grants $ 185,760 $ 27,540 $ 47,167 $ 43,167 $ 52,756 Usage Fees Fuel Sales 43,694 36,472 45,000 21,527 45,000 Fuel Flowage 16,432 16,325 17,000 17,880 17,000 Float Plane 2,280 2,325 2,000 2,404 2,300 Tie Down 12,840 17,235 13,000 15,429 15,000 Landing 407,678 382,293 410,000 346,897 355,000 Plane Parking 11,429 8,876 12,000 6,094 8,000 Total Usage Fees 494,353 463,526 499,000 410,231 442,300 Rents and Leases - Land 550,127 493,781 687,791 684,462 695,271 Miscellaneous Penalty and Interest 2,043 7,845 5,000 (4,804) 5,000 Interest on Investments 288,474 299,351 240,000 240,000 240,000 Other 231,843 102,116 125,617 60,200 60,100 Total Miscellaneous 522,360 409,312 370,617 295,396 305,100 Terminal Revenue Parking Fees 243,199 303,543 250,000 270,448 265,000 Rents and Leases 544,899 613,331 580,029 534,693 520,650 Penalty and Interest 11,635 8,573 5,000 10,537 5,000 Car Rental Commissions 171,038 184,691 185,000 185,219 185,000 Advertising Commissions 22,041 32,384 28,000 30,924 28,000 Miscellaneous 6,087 10,475 3,000 6,509 6,000 Total Terminal Revenue 998,899 1,152,997 1,051,029 1,038,330 1,009,650 Transfers In Capital Project Fund 337 - - - - Airport Land Trust Fund 1,065,518 1,094,116 1,099,774 1,094,116 1,099,774 Total Transfers In 1,065,855 1,094,116 1,099,774 1,094,116 1,099,774 Total Revenues 3,817,354 3,641,272 3,755,378 3,565,702 3,604,851 Expenditures Airport Terminal 361,252 556,386 657,249 683,755 671,771 Airport Airfield 437,729 1,715,825 2,292,367 2,290,352 2,191,190 Airport Administration 289,949 394,358 408,313 418,313 419,846 Airport Other Buildings and Areas 625,855 (275,137) 217,329 247,329 227,254 Airport Training Facility 159,337 165,898 152,900 152,900 151,983 Total Expenditures 1,874,122 2,557,330 3,728,158 3,792,649 3,662,044 Transfers Transfer to Capital Projects 2,251,842 796,875 1,265,100 1,265,100 380,100 Transfer to General Fund - - Total Transfers 2,251,842 796,875 1,265,100 1,265,100 380,100 Total Expenditures & Transfers 4,125,964 3,354,205 4,993,258 5,057,749 4,042,144 Contribution To/(From) Fund Balance: (308,610) 287,067 (1,237,880) (1,492,047) (437,293) Projected Lapse (6%) - - 152,049 155,919 148,995 Adjusted (Deficit)/Surplus (1,085,831) (1,336,128) (288,298) Beginning Fund Balance 3,109,823 2,801,213 2,095,481 3,088,280 1,752,152 Ending Fund Balance $ 2,801,213 $ 3,088,280 $ 1,009,650 $ 1,752,152 $ 1,463,854 206 City of Kenai Fiscal Year 2027 Operating Budget Fund 008 -Airport Fund Department:- Airport Summary - Line Item Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 528,470 $ 514,593 $ 584,090 $ 584,090 $ 607,440 $ 23,350 4.00% 0200 Overtime 25,267 29,608 42,719 42,719 35,602 (7,117) (16.66%) 0250 Holiday Pay - - - - - - - 0300 Leave 1,634 21,974 11,179 11,179 17,522 6,343 56.74% 0400 Medicare 8,011 8,181 9,250 9,250 9,579 329 3.56% 0450 Social Security 797 1,907 6,068 6,068 1,692 (4,376) (72.12%) 0500 PERS 140,160 136,734 170,501 170,501 183,742 13,241 7.77% 0600 Unemployment Insurance - 261 3,191 3,191 3,302 111 3.48% 0700 Workers Compensation 9,576 8,746 10,488 10,488 16,515 6,027 57.47% 0800 Health & Life Insurance 159,797 157,920 159,797 159,797 119,850 (39,947) (25.00%) 0900 Supplemental Retirement 13,243 8,994 13,872 13,872 13,620 (252) 1.82%) Total Salaries & Benefits $ 886,955 $ 888,918 $ 1,011,155 $ 1,011,155 $ 1,008,864 $ (2,291) (0.23%) Maintenance and Operations 2021 Office Supplies 997 916 1,625 1,625 1,550 (75) (4.62%) 2022 Operating & Repair Supplies 179,629 227,083 339,154 333,154 300,050 (39,104) (11.53%) 2024 Small Tools/Minor Equipment 11,765 22,685 17,260 17,260 27,500 10,240 59.33% 2026 Computer Software 7,767 5,355 8,180 8,180 8,580 400 4.89% 4531 Professional Services 60,073 27,045 92,117 145,989 61,364 (30,753) (33.38%) 4532 Communications 15,890 14,765 13,644 13,644 14,864 1,220 8.94% 4533 Travel & Transportation 14,265 8,813 25,870 25,870 21,855 (4,015) (15.52%) 4534 Advertising 2,394 3,480 10,000 10,000 6,800 (3,200) (32.00%) 4535 Printing & Binding 594 1,188 2,800 2,800 2,800 - - 4536 Insurance 194,022 135,713 149,129 149,129 154,210 5,081 3.41% 4537 Utilities 444,815 423,470 569,462 569,462 570,230 768 0.13% 4538 Repair & Maintenance 236,962 180,411 282,237 286,222 263,052 (19,185) (6.80%) 4539 Rentals 3,071 2,569 6,300 6,300 8,300 2,000 31.75% 4540 Equip. Fund Pmts. - - - - - - - 4541 Postage 4666 Books - - - - - 4667 Dues & Publications 370 495 1,475 1,475 1,475 4999 General Contingency - - - - - 5041 Miscellaneous 30,799 13,242 3,750 3,750 1,750 (2,000) (53.33%) 5045 Depreciation - - - - - 5047 Grants to Agencies 20,316 Total Maint. and Operations $ 1,203,413 $ 1,087,546 $ 1,523,003 $ 1,574,860 $ 1,444,380 $ (78,623) 5.16%) Capital Outlay & Transfers 8061 Land 4,898 8062 Buildings - 8063 Improvements - - - - 8064 Machinery & Equipment - 1,842 - 12,634 30,000 30,000 - 9090 Transfers 1,263,837 2,507,329 2,459,100 2,459,100 1,558,900 (900,200) (36.610/6) Total Capital Outlay and Transfers $ 1,263,837 $ 2,514,069 $ 2,459,100 $ 2,471,734 $ 1,588,900 $ (870,200) (35.39%) Department Total: $ 3,354,205 $ 4,490,533 $ 4,993,258 $ 5,057,749 $ 4,042,144 $ (951,114) (19.05%) 207 City of Kenai Fiscal Year 2027 Operating Budget Fund 008 —Airport Fund Department461 —Airport Terminal Mission Provide high -quality, safe air travel services to the citizens of the Kenai Peninsula and visitors through facilities and services. Functions & Responsibilities Airport Administration is responsible for general management, regulatory compliance, and development of the terminal facilities. These functions include airline recruitment and lease support within the terminal. Organizational Chart City Manager Airport Manager �_4 Administrative Assistant II Airport Operations Supervisor Airport Operations Specialist (2) *The Organizational Chart depicts Airport exclusive employees and does not include employees from other departments, which are allocated to the Airport, and the supervision of those employees is performed outside of the Airport. Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Building Maintenance _ _ _ _ _ - .17 21 .17 21 .17 21 Foreman Building Maintenance 17 17 17 16 16 16 16 .17 .17 Technician .17 .17 .17 Airport Operations 1 16 1 16 1 16 1 16 1 16 1 16 Specialist Administrative Assistant II .33 14 .33 14 .33 14 .33 14 .33 14 .33 14 Building Maintenance 17 19 19 19 - - - - - - .17 .17 Lead Technician Average Overtime Per Position (hours) Position Title Building Maintenance Lead Technician Building Maintenance Technician Airport Operations Specialist Administrative Assistant II FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 2 5 5 5 5 5 2 5 5 5 5 5 - - 208 - - - - Performance Measures Calendar Year 2022 2023 2024 2025 2026 Enplanements 73,465 **71,605 75,449 ***77,417 *79,393 Percent Change from ♦ 10% ♦3% ♦5% ♦2.5% ♦2.5% Previous Year Percentage of Tenant Areas 1 Leased 87% 83% 83% 98% 78% *Projected Figure **Reflects RAVN leaving in October 2023 ***Reflects Aleutian starting service in June 2025 and Kenai Aviation stopping service in November 2025 FY26 Department Goals Evaluation 1. Lease 100% of the terminal leases • Not Achieved -78% of the spaces have been rented. The terminal has two empty areas available for lease: 1) a car rental counter and office, and 2) an airline counter and office space. 2. Conduct a survey of tenants and travelers on the use of the terminal. • Not Achieved. This is being pushed to FY27. 3. Document Department Policies and Procedures: The Airport Administration will document twelve policies. • Not Achieved. This goal is being deferred to FY27 due to department turnover and will be worked on with the new Director. FY27 Department Goals 1. Lease 100% of the terminal spaces. 2. Conduct a survey of tenants and travelers on the use of the terminal. 3. Document Department Policies and Procedures: The Airport Administration will document twelve policies. 4. Proceed with the security camera project in and outside of the terminal building. Future Considerations The terminal parking lot is reaching the end of its useful life. Reconstruction will be costly. Revenue - generating parking lots are not AIP eligible. Plan for long-term reconstruction, which may include a phased approach to the project. Terminal expansion to accommodate jet service with over 60 seats; TSA area, passenger secure area, security badging, and other processes necessary to update Airport Security Plan (ASP). 209 City of Kenai Fiscal Year 2027 Operating Budget Fund 008 -Airport Fund Department:- Airport Terminal Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 119,941 $ 99,719 $ 119,112 $ 119,112 $ 123,120 $ 4,008 3.36% 0200 Overtime 5,076 2,351 8,904 8,904 8,780 (124) (1.39%) 0250 Holiday Pay - - - - - - - 0300 Leave - 1,765 3,508 3,508 3,830 322 9.18% 0400 Medicare 1,776 1,501 1,907 1,907 1,969 62 3.25% 0450 Social Security - - - - - - - 0500 PERS 33,213 29,334 36,267 36,267 39,359 3,092 8.53% 0600 Unemployment Insurance - 45 658 658 679 21 3.19% 0700 Workers Compensation 2,793 2,105 3,066 3,066 3,696 630 20.55% 0800 Health & Life Insurance 44,626 44,106 44,626 44,626 33,470 (11,156) (25.00%) 0900 Supplemental Retirement 2,930 2,105 4,148 4,148 4,534 386 9.31% Total Salaries & Benefits $ 210,355 $ 183,031 $ 222,196 $ 222,196 $ 219,437 $ (2,759) (1.24%) Maintenance and Operations 2021 Office Supplies 638 414 650 650 650 - - 2022 Operating & Repair Supplies 11,313 15,065 18,000 22,000 21,700 3,700 20.56% 2024 Small Tools/Minor Equipment 840 3,109 1,000 1,000 1,000 - - 2026 Computer Software 2,000 1,233 2,000 2,000 2,000 4531 Professional Services 10,128 2,228 2,000 15,872 2,000 - - 4532 Communications 3,429 2,018 2,383 2,383 2,828 445 18.67% 4533 Travel & Transportation 1,347 512 1,600 1,600 1,600 - - 4534 Advertising 749 455 2,000 2,000 1,800 (200) (10.00%) 4535 Printing & Binding 73 255 800 800 800 - - 4536 Insurance 17,597 13,055 17,753 17,753 26,086 8,333 46.94% 4537 Utilities 123,889 135,671 146,487 146,487 140,875 (5,612) (3.83%) 4538 Repair & Maintenance 162,228 146,340 178,780 174,780 186,795 8,015 4.48% 4539 Rentals - 173 - - - - - 4540 Equip. Fund Pmts. - 4541 Postage 4666 Books 4667 Dues & Publications 4999 Contingency - 5041 Miscellaneous 65 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 334,231 $ 320,593 $ 373,453 $ 387,325 $ 388,134 $ 14,681 3.93% Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Out Total Capital Outlay and Transfers Department Total: - 608 - 12,634 - - - 61,800 132,360 61,600 61,600 64,200 2,600 4.22% $ 61,800 $ 132,968 $ 61,600 $ 74,234 $ 64,200 $ 2,600 $ 606,386 $ 636,592 $ 657,249 $ 683,755 $ 671,771 $ 14,522 4.22% 2.21 % 210 City of Kenai Fiscal Year 2027 Operating Budget Fund 006 - Personal Use Fishery Fund Department: 61 - Airport Terminal 2022 Operating & Repair Supplies. Janitorial supplies, generator fuel, and other general operating supplies for operation of the terminal, including ice melt, pay station supplies, and parking permits/violations. Vending machine supplies. 4531 Professional Services. Miscellaneous engineering services. 4538 Repair & Maintenance. Professional services for repair and maintenance of the terminal including janitorial and security services. Annual mechanical, AED and fire systems inspections. Window washing, elevator repairs, parking machine monitoring and annual warranty, flight monitor systems 'cloud' services and website link. 9090 Transfers Out. $64,200 Central administration charges from General Fund. PA`I City of Kenai Fiscal Year 2027 Operating Budget Fund 008 —Airport Fund Department 462 —Airport Airfield Mission To ensure the safety and security of aircraft and the traveling public and to operate the airport in compliance with the rules, regulations, and standards prescribed, including but not limited to, Title 14 of the Code of Federal Regulations Part 139. Functions & Responsibilities The Airport Operations Section is responsible for the daily operation and maintenance of the airport. Organizational Chart City Manager Airport Manager Administrative Assistant II Airport Operations Supervisor Airport Operations ( Airport Seasonal Specialist (2) Equipment Operator Staffing FY23 Actual FY24 Actual Actual FY25 Projected FY26 Proposed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Airport Operations 1 20 1 20 21 21 1 21 1 21 1 21 Supervisor Airport Operations 1 16 1 16 1 16 1 16 1 16 1 16 Specialist Seasonal Equipment 83 16 .83 16 1 16 1 16 .83 16 .83 16 Operator Temporary Equipment 39 T16 Operator .39 T16 .39 T16 Average Overtime per Position (hours) Position Title FY23 Actual FY24 Actual FY25 Actual Airport Operations 226 38 140 Supervisor Airport Operations 271 Specialist 240 181 Seasonal Equipment 47 171 99 Operator Temporary Equipment _ 171 99 Operator .39 T16 .39 T16 .39 T16 Projected FY26 Proposed FY27 Projected FY28 173 173 173 160 160 160 150 150 150 212 Performance Measures Calendar Year 2022 2023 2024 2025 2026 (Projected) Hazing Activity 4,554 10,715 7,925 3216 6,602 Bird Strikes 2 1 1 0 0 Airfield Workorders 198$ 303$ 114 236 212 Completed FAA Annual Inspection 15 1 3 8 TBD Findings *NO FAA Certification Inspection due to COVID-19 $Airfield Work Order Tracking began 412812022 FY26 Department Goals Evaluation The following goals support the Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 5 — Transportation: Provide transportation systems that are efficient and adequate to serve the regional needs of the community: 1. Receive no FAA findings during the annual Airport Certification Inspection. • Not Achieved. Certification inspection is scheduled for April 2026 2. Reduce wildlife interactions and hazing events. Hazing activity will be reduced by 5% utilizing sound -producing devices (i.e., cannon) • Not Achieved. No sound -producing equipment was purchased. FY27 Department Goals 1. Receive no FAA findings during the annual Airport Certification Inspection. 2. Reduce wildlife interactions and hazing events. 3. Successful completion of the 2026 Runway Rehabilitation Project with the reopening of the 02L/20R runway in September 2026 Future Considerations Upon completion of the Master Plan, establish a new Capital Improvement Program. FAA grants will be pursued for the Perimeter and Security Fence line Improvements, Taxiway Sierra with Access Control and Lease lots, SRE replacement, Airfield Marking, and apron and Willow Street extension. These projects put the Airport in a great position to support the City of Kenai economically for the next 20 years. 213 City of Kenai Fiscal Year 2027 Operating Budget Fund 008 -Airport Fund Department:- Airport Airfield Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 205,365 $ 217,570 $ 246,275 $ 246,275 $ 246,050 $ (225) (0.09%) 0200 Overtime 18,355 26,154 32,584 32,584 24,765 (7,819) (24.00%) 0250 Holiday Pay - - - - - - - 0300 Leave - 9,826 3,194 3,194 4,784 1,590 49.78% 0400 Medicare 3,183 3,634 4,090 4,090 3,997 (93) (2.27%) 0450 Social Security 797 1,832 6,068 6,068 1,692 (4,376) (72.12%) 0500 PERS 54,402 57,593 71,926 71,926 72,668 742 1.03% 0600 Unemployment Insurance - 124 1,410 1,410 1,377 (33) (2.34%) 0700 Workers Compensation 5,604 5,413 6,264 6,264 7,143 879 14.03% 0800 Health & Life Insurance 53,444 52,847 53,444 53,444 40,084 (13,360) (25.00%) 0900 Supplemental Retirement 3,337 2,782 4,746 4,746 5,038 292 6.15% Total Salaries & Benefits $ 344,487 $ 377,775 $ 430,001 $ 430,001 $ 407,598 $ (22,403) (5.21%) Maintenance and Operations 2021 Office Supplies 205 189 475 475 400 (75) (15.79%) 2022 Operating & Repair Supplies 125,911 168,201 279,804 269,804 237,000 (42,804) (15.30%) 2024 Small Tools/Minor Equipment 10,307 17,107 13,960 13,960 24,850 10,890 78.01% 2026 Computer Software 2,808 2,101 3,020 3,020 3,320 300 9.93% 4531 Professional Services 11,808 9,444 45,188 45,188 14,435 (30,753) (68.06%) 4532 Communications 6,395 6,944 7,740 7,740 7,830 90 1.16% 4533 Travel & Transportation 7,439 4,367 11,710 11,710 14,295 2,585 22.08% 4534 Advertising - 514 500 500 500 - - 4535 Printing & Binding 285 395 1,000 1,000 1,000 4536 Insurance 171,058 117,188 123,229 123,229 119,812 (3,417) (2.77%) 4537 Utilities 178,017 183,104 284,540 284,540 288,900 4,360 1.53% 4538 Repair & Maintenance 22,596 14,396 26,300 34,285 23,250 (3,050) (11.60%) 4539 Rentals 1,523 988 4,500 4,500 6,500 2,000 44.44% 4540 Equip. Fund Pmts. - - - - - - - 4541 Postage 4666 Books 4667 Dues & Publications 4999 Contingency - - - - 5041 Miscellaneous 619 500 500 500 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 538,352 $ 525,557 $ 802,466 $ 800,451 $ 742,592 $ (59,874) 7.46%) Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment - - - - - - 9090 Transfers Out 1,129,861 2,044,334 1,925,000 1,925,000 1,421,100 (503,900) (26.180/6) Total Capital Outlay and Transfers $ 1,129,861 $ 2,044,334 $ 1,925,000 $ 1,925,000 $ 1,421,100 $ (503,900) (26.18%) Department Total: $ 2,012,700 $ 2,947,666 $ 3,157,467 $ 3,155,452 $ 2,571,290 $ (586,177) (18.56%) PA1121 City of Kenai Fiscal Year 2027 Operating Budget Fund 006 - Personal Use Fishery Fund Department: 62 - Airport Airfield 2022 Operating & Repair Supplies. Supplies including fuel, brooms, runway lights, solid deicer, urea, potassium acetate, nitrogen, wildlife hazing supplies, PPE's, loader tires, propane, diesel exhaust fluid, runway sand and miscellaneous operating supplies. 4538 Repairs and Maintenance. Annual calibrations, fire alarm and suppression system testing, boiler and mechanical inspections and service agreements. Includes miscellaneous contractor repairs. 2024 Small Tools & Minor Equipment. Includes 4 computer 4539 Rentals. Annual Air Fair tents, tables and chairs rental. replacements, KFD structural gear (2 sets), and radios. Two bed frames and one recliner. 4531 Professional Services. Annual stormwater permit, pre- employment tests, annual hazard management plan review and other professional services. 9090 Transfers Out. $1,041,000 Central administrative charges from General Fund and $380,100 transfer to Airport capital projects. 215 City of Kenai Fiscal Year 2027 Operating Budget Fund 008 — Airport Fund Department 463 — Airport Administration Mission The mission of Kenai Municipal Airport is to be the commercial air transportation gateway to the Kenai Peninsula Borough and West Cook Inlet. Functions & Responsibilities Airport Administration is responsible for general management, regulatory compliance, and airport development. Organizational Chart City Manager Airport Manager Administrative Assistant II Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Airport Manager 1 25 1 25 1 25 1 25 1 25 1 25 Administrative Assistant II .67 14 .67 14 .67 14 .67 14 .67 14 .67 14 Average Overtime Per Position (hours) Position Title FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Airport Manager N/A N/A N/A N/A N/A N/A Administrative Assistant II 21.5 27 28 32 32 32 Performance Measures Calendar Year 2022 2023 2024 2025 2026* Enplanements 73,465 71,605 75,449 77,417 79,953 *Projected Fiscal Year 2022 2023 2024 2025 2026* Cost per Enplaned $ 7.65 $ 7.96 $ 7.42 $ 7.70 $ 7.40 Passenger Airline Rents & $ 201,462 $ 350,375 $ 280,516 $ 362,580 $ 358,576 Leases Airline Landing $ 211,221 $ 226,562 $ 253,255 $ 234,023 $ 228,952 Fees FAA Grant $ 2,175,398 $ 313,625 $ 2,458,804 $ 33,331,147 $ 23,325,421 Offers *Projected 216 FY26 Department Goals Evaluation Air Service Development. This will involve identifying current patterns, understanding passenger demand, evaluating potential routes, and assessing the economic feasibility of new and existing service routes. This will include completing the leakage study. By addressing these aspects, the airport can strategically plan services to capture more traffic and enhance connectivity with the lower 48 states. The Airport will also look to apply for the Small Community Air Service Development Program Grant. • Partially Achieved. A leakage study was completed, showing there is a market for additional services. We worked with Volaire and reached out to Airlines to showcase Kenai. The Administration will also be attending an airline conference in April 2026. Additionally, the airport will be applying for the Small Community Air Service Development Grant when the application period opens. 2. Policy Documentation: The Airport Administration Department will document twelve policies in fiscal year 2026. • Not Achieved. This goal is being deferred to FY27 due to department turnover and will be addressed with the new Director. FY27 Department Goals The following goals support City of Kenai Comprehensive Plan Goal 2 — Economic Development to support the fiscal health of Kenai, Goal 4 — Public improvements and services: Provide adequate public improvements and services in Kenai, and Goal 5 — Transportation: Provide transportation systems that are efficient and adequate to serve the regional needs of the community. Air Service Development: Continuing to work with Volaire Aviation Consulting to showcase the findings of the leakage study; by addressing these aspects, the airport can strategically plan services to capture more traffic and enhance connectivity with the lower 48 states. The Airport will also be applying for the Small Community Air Service Development Program Grant. The Airport will continue to attend conferences and hold discussions with Airlines. 2. Market for an airline to fill the void left by Kenai Aviation terminating service to Kenai. 3. Complete the update to the Airport Master Plan by the end of 2026. 4. Policy Documentation. The Airport Administration Department will document twelve policies. Future Considerations Consider the diversity of the airport's revenue sources and pursue additional revenue opportunities. 217 City of Kenai Fiscal Year 2027 Operating Budget Fund 008 -Airport Fund Department:- Airport Administration Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 152,420 $ 147,890 $ 158,524 $ 158,524 $ 174,603 $ 16,079 10.14% 0200 Overtime 821 762 657 657 1,428 771 117.35% 0250 Holiday Pay - - - - - - - 0300 Leave - 9,150 2,922 2,922 7,267 4,345 148.70% 0400 Medicare 2,254 2,307 2,350 2,350 2,657 307 13.06% 0450 Social Security - - - - - - - 0500 PERS 40,139 38,388 45,096 45,096 52,529 7,433 16.48% 0600 Unemployment Insurance - 70 811 811 916 105 12.95% 0700 Workers Compensation 367 467 340 340 4,559 4,219 1,240.88% 0800 Health & Life Insurance 44,625 44,056 44,625 44,625 33,470 (11,155) (25.00%) 0900 Supplemental Retirement 5,615 3,010 4,091 4,091 2,296 (1,795) 43.88%) Total Salaries & Benefits $ 246,241 $ 246,100 $ 259,416 $ 259,416 $ 279,725 $ 20,309 7.83% Maintenance and Operations 2021 Office Supplies 154 313 500 500 500 - - 2022 Operating & Repair Supplies 441 764 850 850 850 - 2024 Small Tools/Minor Equipment 477 685 1,300 1,300 650 (650) (50.00%) 2026 Computer Software 959 797 1,160 1,160 1,260 100 8.62% 4531 Professional Services 37,492 10,059 39,929 49,929 39,929 - - 4532 Communications 3,592 3,567 2,226 2,226 2,335 109 4.90% 4533 Travel & Transportation 2,585 3,287 12,560 12,560 5,960 (6,600) (52.55%) 4534 Advertising 1,645 2,141 4,000 4,000 3,000 (1,000) (25.00%) 4535 Printing & Binding 236 538 1,000 1,000 1,000 - - 4536 Insurance 5,367 5,470 8,147 8,147 8,312 165 2.03% 4537 Utilities - - - - - - - 4538 Repair & Maintenance 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books - - - - - 4667 Dues & Publications 370 495 1,475 1,475 1,475 4999 Contingency - - - - - 5041 Miscellaneous 30,799 12,558 3,250 3,250 1,250 (2,000) (61.54%) 5045 Depreciation - - - - - 5047 Grants to Agencies - 20,316 Total Maint. and Operations $ 84,117 $ 60,990 $ 76,397 $ 86,397 $ 66,521 $ (9,876) 12.93%) Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Out Total Capital Outlay and Transfers Department Total: - 1,234 - - - - - 64,000 93,014 72,500 72,500 73,600 1,100 1.52% $ 64,000 $ 94,248 $ 72,500 $ 72,500 $ 73,600 $ 1,100 $ 394,358 $ 401,338 $ 408,313 $ 418,313 $ 419,846 $ 11,533 1.52% 2.82% 218 City of Kenai Fiscal Year 2027 Operating Budget Fund 006 - Personal Use Fishery Fund Department: 63 - Airport Administration 2024 Small Tools/Minor Equipment. Two computer and one printer 4534 Advertising. Newspaper advertising of agendas, work sessions replacements. etc., and air fair advertising. 4531 Professional Services. AIT domain, miscellaneous 5041 Miscellaneous. Refreshments for meetings and vending professional engineering and TSA clearance. Volaire professional machine supplies. services and Investment management fees. 4533 Transportation. Miscellaneous travel to conferences, vehicle 9090 Transfers Out. Central administrative charges from General stipend, Airport Security Training for new Airport Manager. Fund. 219 City of Kenai Fiscal Year 2027 Operating Budget Fund 008 — Airport Fund Department 464 — Other Buildings & Areas Mission To encourage growth and development of Airport land by simplifying and streamlining the leasing processes to support the Airport and City's goal of a thriving business community. Functions & Responsibilities Airport Administration and Planning work together on general management, regulatory compliance, and the development of airport lands that support both aviation and non -aviation activities. Organizational Chart City Manager Airport Manager Administrative Assistant II *The Organizational Chart depicts Airport exclusive employees and does not include employees from other departments, which are allocated to the Airport, and the supervision of those employees is performed outside of the Airport. Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Planning Director .30 23 .30 24 .30 24 .30 24 .30 24 .30 24 Building Maintenance - - - - - - .17 21 .17 21 .17 21 Foreman Building Maintenance 17 19 19 19 - - - - - - .17 .17 Lead Technician Building Maintenance 17 17 .17 17 .17 Technician 16 .17 16 .17 16 .17 16 Average Overtime Per Position (hours) Position Title FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 City Planner/ Planning N/A N/A N/A N/A N/A N/A Director Building Maintenance Lead 5 0 5 5 5 5 Technician Building Maintenance 4 0 5 5 5 5 Technician 220 Performance Measures —Airport Lands Fiscal Year 2022 2023 2024 2025 2026 Airport Land Sale Permanent Fund (ALSPF) $ 30,980,525 $ 26,202,338 $ 27,677,470 $ 28,792,533 $ 29,648,041 Transfers into Airport Operations from ALSPF $ 1,025,736 $ 1,076,665 $ 1,065,518 $ 1,094,116 $ 1,126,626 Airport Fund Land Leases $ 512,254 $ 508,309 $ 532,323 $ 708,089 $ 687,791 Leased Parcels — in Reserve 28 29 29 32 32 Leased Parcels — outside Reserve 10 12 12 9 9 Special Use Permits — inside the Reserve 7 6 6 11 11 Special Use Permits — outside Reserve 2 4 - 7 7 * Projected 2025 Figures based on the previous five-year average Performance Measures — Float Plane Basin Calendar Year 2022 2023 Slips Available for Lease 20 35 Float Plane Slips Leased 6 10 (tenants) Slip Rental $ 600 $ 600 Water Landings 675 909 Fuel Sold (Gallons) 3,892 6,862 Transient Parking Fees $ 140 $ 140 * Projected 2026 Figures based on the previous five-year average FY26 Department Goals Evaluation 2024 2025 2026* 35 35 35 14 14 14 $ 1,960 $ 2,651 $1,453 1,600 1,524 1,177 5,624 3,000 4,844 $115 $135 $130 1. Develop the west side of the airport next to the float plane basin. This will involve subdividing lease lots in conjunction with the design of taxiway Sierra, advertising to potential lessees, and exploring funding options. • Not Achieved. The project moved to FY28 in the Airport Capital Improvement Plan. 2. Document Department Policies and Procedures. • Not Achieved. This goal is being deferred to FY27 due to department turnover and will be worked on with the new Director. FY27 Department Goals 1. Develop the west side of the airport next to the float plane basin. This will involve subdividing lease lots in conjunction with the design of taxiway Sierra, advertising to potential lessees, and exploring funding options. Start the NEPA project. 2. Documentation of Department Policies and Procedures. 221 Future Considerations The float plane basin offers many opportunities with the planned development of Taxiway S and lease lots. This could create additional opportunities for general aviation leases at the float plane basin. A Willow Street extension (FY29 ACIP) could create additional opportunities for commercial operators to lease larger lots. Both projects have been submitted to the FAA and are being evaluated for funding eligibility in conjunction with the Airport Master Plan. 4% City of Kenai Fiscal Year 2027 Operating Budget Fund 008 -Airport Fund Department:- Other Buildings and Areas Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 50,744 $ 49,414 $ 60,179 $ 60,179 $ 63,667 $ 3,488 5.80% 0200 Overtime 1,015 341 574 574 629 55 9.58% 0250 Holiday Pay - - - - - - - 0300 Leave 1,634 1,233 1,555 1,555 1,641 86 5.53% 0400 Medicare 798 739 903 903 956 53 5.87% 0450 Social Security - 75 - - - - - 0500 PERS 12,406 11,419 17,212 17,212 19,186 1,974 11.47% 0600 Unemployment Insurance - 22 312 312 330 18 5.77% 0700 Workers Compensation 812 761 818 818 1,117 299 36.55% 0800 Health & Life Insurance 17,102 16,911 17,102 17,102 12,826 (4,276) (25.00%) 0900 Supplemental Retirement 1,361 1,097 887 887 1,752 865 97.52% Total Salaries & Benefits $ 85,872 $ 82,012 $ 99,542 $ 99,542 $ 102,104 $ 2,562 2.57% Maintenance and Operations 2021 Office Supplies - - - - - - - 2022 Operating & Repair Supplies 40,874 33,771 39,000 39,000 39,000 2024 Small Tools/Minor Equipment - - - - - 2026 Computer Software 2,000 1,200 2,000 2,000 2,000 4531 Professional Services 645 5,314 5,000 35,000 5,000 - - 4532 Communications 2,474 2,236 1,295 1,295 1,871 576 44.48% 4533 Travel & Transportation 2,894 647 - - - - - 4534 Advertising - 370 1,500 1,500 1,500 4535 Printing & Binding - - - - 4536 Insurance - - - - - 4537 Utilities 30,080 35,678 43,885 43,885 40,972 (2,913) (6.64%) 4538 Repair & Maintenance 300 936 23,307 23,307 3,007 (20,300) (87.10%) 4539 Rentals 1,548 1,408 1,800 1,800 1,800 4540 Equip. Fund Pmts. - - - - - 4541 Postage 4666 Books 4667 Dues & Publications 4999 Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 80,815 $ 81,560 $ 117,787 $ 147,787 $ 95,150 $ (22,637) 19.22%) Capital Outlay & Transfers 8061 Land 4,898 8062 Buildings - 8063 Improvements - - 8064 Machinery & Equipment - - - - 30,000 30,000 9090 Transfers Out 8,176 237,621 400,000 400,000 (400,000) 1( 00.00%) Total Capital Outlay and Transfers $ 8,176 $ 242,519 $ 400,000 $ 400,000 $ 30,000 $ (370,000) (92.50%) Department Total: $ 174,863 $ 406,091 $ 617,329 $ 647,329 $ 227,254 $ (390,075) (63.19%) 223 City of Kenai Fiscal Year 2027 Operating Budget Fund 006 - Personal Use Fishery Fund Department: 64 - Other Buildings & Areas 2022 Operating & Repair Supplies. Fuel for resale at the Airport's 4538 Repair & Maintenance. Boiler inspection, device registration Float Plane Basin and other miscellaneous operating supplies. and miscellaneous repairs. 4531 Professional Services. Appraisal fees, engineering and 4539 Rentals. Cost of portable toilets rental. recording costs for the leasing of Airport land. 4534 Advertising. Advertising for float plane basin and land 8064 Machinery & Equipment. Special Project: AP Terminal brochures. RTU replacement $30,000. 224 City of Kenai Fiscal Year 2027 Operating Budget Fund 008 — Airport Fund Department 465 — Alaska Fire Training Facility Mission To be the premier aircraft and firefighting training facility for the State of Alaska by encouraging the use and maintenance of the equipment and buildings. Functions & Responsibilities Airport Administration is responsible for general management, regulatory compliance, and maintenance of the Alaska Fire Training Facility. Staffing — Year-to-year management agreement. Performance Measures Calendar Year Students Class Trainings Facility SF Leased Facility Repairs & Maintenance * Projected 2022 1 2023 2024 2025 2026* 300 40 181 20 169 20 185 24 185 24 4,441 4,441 4,441 4,441 4,441 $ 0 $ 11,001 $ 17,983 $ 51,838 $24,990 FY26 Department Goal Evaluations The following goals support the Imagine Kenai 2030 City of Kenai Comprehensive Plan: Goal 1 - Promote and encourage Quality of Life in Kenai; Goal 2 - Provide Economic Development to support the fiscal health of Kenai; Goal 3 - Land Use; and Goal 4 - Public Improvements and Services. Rent out the unused office space to another business. The Airport will look for specific ways to market the space to generate additional revenue and establish a long-term partnership. • Partially Achieved- One office is leased to the American Red Cross, and the Airport has rented out different rooms to multiple organizations for their daily use. 2. Document Department Policies and Procedures. • Not Achieved. This goal is being deferred to FY27 due to department turnover and will be worked on with the new Director. FY27 Department Goals Rent out the unused office space to other businesses. The Airport will look for additional new ways to market the space, generate additional revenue, and establish long-term partnerships. These partnerships should include: 225 a) A facility maintenance program. b) A measurable goal to increase class/training participation at the facility. c) A program for accountability and efficiency with available resources d) Long-term leases 2. Document department Policies and Procedures. The department will document twelve new policies. Future Considerations A virtual facility scan for marketing and outreach has been added to the Airport website. Long-range considerations should be given to the financial stability of the Alaska Regional Fire Training Center. 226 City of Kenai Fiscal Year 2027 Operating Budget Fund 008 -Airport Fund Department:- Airport Training Facility Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ $ $ $ $ $ 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits $ Maintenance and Operations 2021 Office Supplies 2022 Operating & Repair Supplies 1,090 9,282 1,500 1,500 1,500 2024 Small Tools/Minor Equipment 141 1,784 1,000 1,000 1,000 2026 Computer Software - 24 - - - 4531 Professional Services - 4532 Communications 4533 Travel & Transportation - - 4534 Advertising 2,000 2,000 (2,000) (100.00%) 4535 Printing & Binding - - 4536 Insurance - - - - - - - 4537 Utilities 112,829 69,017 94,550 94,550 99,483 4,933 5.22% 4538 Repair & Maintenance 51,838 18,739 53,850 53,850 50,000 (3,850) (7.15%) 4539 Rentals - - - - - 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 4667 Dues & Publications 4999 Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 165,898 $ 98,846 $ 152,900 $ 152,900 $ 151,983 $ (917) 0.60%) Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Out Total Capital Outlay and Transfers $ $ - $ $ - $ $ - Department Total: $ 165,898 $ 98,846 $ 152,900 $ 152,900 $ 151,983 $ (917) (0.60%) 227 City of Kenai Fiscal Year 2027 Operating Budget Fund 006 - Personal Use Fishery Fund Department: 65 - Airport Training Facility 2022 Operating, Repair & Maintenance. Janitorial supplies. 4538 Repair & Maintenance. Fire suppression system testing, elevator testing and maintenance, custodial services, equipment inspection contract and other general maintenance items. 2024 Small Tools & Minor Equipment. Miscellaneous tools. 228 City of Kenai Fiscal Year 2027 Operating Budget Revenues State Grants Federal Grants USDA Grant Choice Waiver KPB Grant Other Grants Rents and Leases Donations Donation - Senior Connection Meal Donations Transfer from General Fund - Operations Other Total Revenue Expenditures Senior Citizen Access Congregate Meals Home Meals Senior Transportation Choice Waiver Total Expenditures Fund: 019 - Senior Citizens Fund Department:- Title III Summary Original Actual Actual Budget Projection Proposed FY2024 FY2025 FY2026 FY2026 FY2027 $ 278,855 237,724 $ 237,492 $ 328,659 $ 334,821 24,966 21,768 22,000 10,620 10,620 103,428 106,395 100,000 106,000 106,000 186,143 186,143 185,846 186,143 185,846 - - - 21,334 - 12,479 9,688 8,500 8,500 8,500 20,720 25,181 27,500 27,100 27,500 102,850 121,083 120,000 120,000 120,000 93,718 87,753 95,650 91,000 95,650 199,476 217,467 286,397 248,487 251,750 60 3,110 300 10 300 1,022,695 1,016,312 1,083,685 1,147,853 1,140,987 224,366 234,641 242,178 246,842 256,748 140,210 194,281 238,713 293,351 239,759 484,983 450,112 421,539 452,777 420,165 113,641 122,148 143,672 149,672 142,147 67,902 61,693 71,398 71,615 80,661 1,031,102 1,062,875 1,117,500 1,214,257 1,139,480 Contribution To/(From) Fund Balance: (8,407) (46,563) (33,815) (66,404) 1,507 Projected Lapse (5%) 47,465 52,303 48,564 Adjusted (Deficit)/Surplus (8,407) (46,563) 13,650 (14,101) 50,071 Beginning Fund Balance - (8,407) (54,970) (69,071) Ending Fund Balance $ (8,407) $ (54,970) $ 13,650 $ (69,071) $ (19,000) 229 City of Kenai Fiscal Year 2026 Operating Budget Fund: 019 - Senior Citizens Fund Department:- Title III Summary - Line Item Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2025 Original Change Salaries and Benefits 0100 Salaries $ 350,384 $ 313,823 $ 374,546 $ 379,210 $ 385,965 $ 11,419 3.05% 0200 Overtime 1,189 541 776 776 1,075 299 38.53% 0250 Holiday Pay - - - - - - - 0300 Leave 8,721 9,174 13,126 13,126 13,572 446 3.40% 0400 Medicare 5,189 4,556 5,633 5,633 5,812 179 3.18% 0450 Social Security 4,742 3,570 4,557 4,557 4,489 (68) (1.49%) 0500 PERS 77,974 71,247 86,062 86,062 93,892 7,830 9.10% 0600 Unemployment Insurance - 134 1,941 1,941 2,006 65 3.35% 0700 Workers Compensation 4,809 3,700 4,996 4,996 6,745 1,749 35.01% 0800 Health & Life Insurance 114,900 115,047 128,261 128,261 86,177 (42,084) (32.81%) 0900 Supplemental Retirement 16,145 9,410 7,851 7,851 16,375 8,524 108.57% Total Salaries & Benefits $ 584,053 $ 531,202 $ 627,749 $ 632,413 $ 616,108 $ (11,641) (1.85%) Maintenance and Operations 2021 Office Supplies 380 588 1,400 1,400 1,100 (300) (21.43%) 2022 Operating & Repair Supplies 190,950 190,178 196,100 264,142 201,231 5,131 2.62% 2024 Small Tools/Minor Equipment 4,954 2,624 2,955 3,606 3,910 955 32.32% 2026 Computer Software 4,292 4,230 4,755 4,755 7,505 2,750 57.83% 4531 Professional Services 15,073 9,061 9,750 33,150 9,750 - - 4532 Communications 1,930 2,360 2,350 2,350 2,350 - 4533 Travel & Transportation 4,640 2,406 4,700 4,700 4,666 (34) (0.72%) 4534 Advertising 232 258 450 450 600 150 33.33% 4535 Printing & Binding 3,180 2,770 4,400 4,400 4,300 (100) (2.27%) 4536 Insurance 20,826 17,125 21,936 21,936 26,685 4,749 21.65% 4537 Utilities 49,833 47,806 53,931 53,931 51,561 (2,370) (4.39%) 4538 Repair & Maintenance 2,593 1,119 2,670 2,670 2,420 (250) (9.36%) 4539 Rentals - - - - - - - 4540 Equip. Fund Pmts. 10,874 10,692 13,823 13,823 15,871 2,048 14.82% 4541 Postage 956 603 1,050 1,050 1,300 250 23.81% 4666 Books - - - - - - - 4667 Dues & Publications 810 701 1,281 1,281 1,923 642 50.12% 4999 General Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 311,523 $ 292,521 $ 321,551 $ 413,644 $ 335,172 $ 13,621 4.24% Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Total Capital Outlay and Transfers Department Total - 13,007 - - 20,000 20,000 167,300 171,981 168,200 168,200 168,200 - $ 167,300 $ 184,988 $ 168,200 $ 168,200 $ 188,200 $ 20,000 $ 1,062,876 $ 1,008,711 $ 1,117,500 $ 1,214,257 $ 1,139,480 $ 21,980 11.89% 1.97% 230 City of Kenai Fiscal Year 2027 Operating Budget Fund 019 — Senior Citizens Fund Department — Senior Services Mission To serve as a community focal point for senior services where adults 60+ come together for fellowship and program participation, to engage in opportunities for dignity and personal growth, to improve their quality of life, to support the needs of older individuals, to enhance their independence, and to broaden their involvement within the community. Functions & Responsibilities The Senior Center serves as a gateway to the nation's aging network — connecting older adults to vital community services that can help them stay healthy and independent. The Senior Center is serving our older citizens, who were instrumental in building the City of Kenai. As the City's population ages, the Senior Center continues to provide services that promote quality of life and maximize independence, while allowing seniors to stay within the community of their choice. The Center serves the City of Kenai, Salamatof, Kalifornsky Beach, Cohoe, and Kasilof. Services and programs are available for seniors 60 + from 8 am — 5 pm, Monday through Friday. The Senior Center offers a wide variety of programs and services, including: ❖ Meal and nutrition programs ❖ Information and assistance ❖ Health, fitness, and wellness programs ❖ Transportation services ❖ Benefits counseling ❖ Employment assistance ❖ Volunteer opportunities ❖ Shopping Assistance ❖ Social and recreational activities ❖ Education and art programs ❖ Intergenerational programs How is the Senior Center Funded? To sustain its operations, the Center relies on a diverse range of resources, including support from the City of Kenai, federal and state agencies, the Kenai Peninsula Borough, special events, public and private grants, local businesses, bequests, participant contributions, in -kind donations, and volunteer hours. 231 Organizational Chart Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Director .65 23 .60 23 .60 23 .60 23 .60 23 .60 23 Administrative Assistant III .75 15 .70 15 .70 15 .70 15 .70 15 •70 15 Administrative Assistantll 1 14 1 14 1 14 1 14 1 14 1 14 Cook 1 6 1 8 1 8 1 8 1 8 1 8 Janitor .35 6 .35 6 .35 3 .35 3 .35 6 .35 6 Kitchen Assistant 1 2 1 4 1 6 1 6 1 6 1 6 Driver .70 1 1.05 4 1.05 6 1.05 6 1.05 6 1.05 6 Meals Driver .85 6 .85 6 .85 6 .85 6 .85 6 •85 6 Temporary Kitchen Assistant .05 T6 .03 T4 .03 T4 .04 T4 .04 T4 .04 T4 Data Entry Clerk .33 1 - - - - - - - - - - Overtime Position Title FY23 Actual FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 Director N/A N/A N/A N/A N/A N/A Administrative Assistant III 10.5 20.5 17 12 20 12 Activities & Volunteer 0 0 0 6 13 0 Coordinator Data Entry Clerk 0 N/A N/A N/A N/A N/A Janitor 0 0 0 0 0 0 Temporary Maintenance N/A N/A N/A N/A N/A N/A Assistant Cook 0 2.5 5 0 5 0 Kitchen Assistant 8.5 3.5 4 0 5 0 232 Performance Measures Fiscal Year 2022 2023 2024 2025 2026* Congregate Meals Home Delivered Meals Assisted & Unassisted Rides 7,653 10,925 27,667 22,549 1,565 2,053 59 60 14,182 24,986 2,975 11,534 24,178 12,416 25,472 2,778 3,220 Volunteers 62 70 78 Volunteer Hours 2,713 3,561 4,554 5,465 6,114 ***Activity Participation Units 17,759 24,129 24,543 25,284 26,075** New Registered Participants 54 94 57 92 110 "Projected h-lgures based on year-to-date Intormatlon. **Activity Participation Units are single-entry sign -ins to MySeniorCenter FY26 Department Goals Evaluation110 Market and promote a positive, active image of the Kenai Senior Center within the Community by surveying both seniors and the general community regarding their perceptions of the Senior Center. • Achieved. 2. Obtain certification for the Activity/Volunteer Coordinator through the National Association of Activity Professionals, aiming to enhance insights into current and emerging trends related to aging adults. • Achieved 3. Comprehensively updating policies for Home Delivered and Congregate Meal Programs, giving a thorough examination of legal aspects, collaboration with stakeholders, and building an evaluation framework to gauge the effectiveness of the updated policies. • Partially Achieved. Continuing through FY27 4. Enhance the Senior Center Web Page — Continue to improve the Senior Center section on the City website by updating it with information on activities, volunteer opportunities, and rental details. • Partially Achieved. Continuing through FY27 5. Increase Volunteer Engagement — Recruit and train at least 10 new volunteers and provide quarterly sessions to foster a stronger volunteer base. • Achieved. 6. Create an Emergency Preparedness and Support Plan - Develop a comprehensive plan to assist seniors during extreme weather events, power outages, or natural disasters. • Achieved. 7. Document 20 department policies and procedures according to the new format for the City of Kenai. Partially Achieved. Continuing through FY27 233 FY27 Department Goals 1. Comprehensively updating policies for Home Delivered and Congregate Meal Programs, giving a thorough examination of legal aspects, collaboration with stakeholders, and building an evaluation framework to gauge the effectiveness of the updated policies. 2. Enhance the Senior Center Web Page —Continue to improve the Senior Center section on the City website by updating it with information on activities, volunteer opportunities, and rental details. 3. Document 20 department policies and procedures according to the new format for the City of Kenai. 4. Recruiting and training 3 volunteer transportation and meals drivers. Future Considerations Future considerations for the Senior Center include long-term facility maintenance and capital planning, sustainability of transportation services, continued development of the volunteer base, financial sustainability through diversified funding sources, expansion of programs to meet changing senior needs, strengthening emergency preparedness, and enhancing the Center's role as a community hub. These efforts will help ensure the Center continues to provide essential services and maintain a high quality of life for Kenai's senior population. 234 City of Kenai Fiscal Year 2027 Operating Budget Fund: 019 - Senior Citizens Fund Department:- Senior Citizen Access Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 93,685 $ 80,578 $ 95,552 $ 100,216 $ 97,728 $ 2,176 2.28% 0200 Overtime 586 189 395 395 365 (30) (7.59%) 0250 Holiday Pay - - - - - - - 0300 Leave 4,082 3,806 4,112 4,112 4,188 76 1.85% 0400 Medicare 1,393 1,194 1,451 1,451 1,484 33 2.27% 0450 Social Security 666 546 630 630 657 27 4.29% 0500 PERS 22,334 19,440 24,302 24,302 26,111 1,809 7.44% 0600 Unemployment Insurance - 32 500 500 512 12 2.40% 0700 Workers Compensation 361 264 386 386 436 50 12.95% 0800 Health & Life Insurance 29,393 30,895 29,393 29,393 22,045 (7,348) (25.00%) 0900 Supplemental Retirement 4,738 2,428 3,536 3,536 4,844 1,308 36.99% Total Salaries & Benefits $ 157,238 $ 139,372 $ 160,257 $ 164,921 $ 158,370 $ (1,887) (1.18%) Maintenance and Operations 2021 Office Supplies 217 229 300 300 300 2022 Operating & Repair Supplies 1,302 1,622 4,400 4,400 1,900 (2,500) (56.82%) 2024 Small Tools/Minor Equipment 808 590 435 435 860 425 97.70% 2026 Computer Software 1,172 1,094 951 951 3,301 2,350 247.11% 4531 Professional Services 2,601 2,381 2,050 2,050 1,650 (400) (19.51%) 4532 Communications 323 384 470 470 470 - 4533 Travel & Transportation 2,804 617 2,800 2,800 - (2,800) (100.00%) 4534 Advertising 104 143 250 250 300 50 20.00% 4535 Printing & Binding 1,470 1,223 1,600 1,600 1,500 (100) (6.25%) 4536 Insurance 5,547 4,479 5,793 5,793 7,048 1,255 21.66% 4537 Utilities 13,678 12,550 14,267 14,267 13,299 (968) (6.78%) 4538 Repair & Maintenance - 42 100 100 100 - 4539 Rentals - - - - - - - 4540 Equip. Fund Pmts. 2,884 1,142 3,651 3,651 4,192 541 14.82% 4541 Postage 231 160 300 300 300 - - 4666 Books - - - - - 4667 Dues & Publications 145 65 200 200 200 4999 Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies - - - - - - Total Maint. and Operations $ 33,286 $ 26,721 $ 37,567 $ 37,567 $ 35,420 $ (2,147) 5.72%) Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Out Total Capital Outlay and Transfers Department Total: - - - - 20,000 20,000 44,117 44,685 44,354 44,354 42,958 (1,396) (3.150/6) $ 44,117 $ 44,685 $ 44,354 $ 44,354 $ 62,958 $ 18,604 $ 234,641 $ 210,778 $ 242,178 $ 246,842 $ 256,748 $ 14,570 41.94% 6.02% 235 City of Kenai Fiscal Year 2027 Operating Budget Fund: 019 - Senior Citizens Fund Department: - 70 - Senior Citizen Access 2022 Operating, Repair & Maintenance. Activity supplies, volunteer 4538 Repair & Maintenance. Fire extinguishers testing. appreciation supplies and choir music. 4531 Professional Services. Exterior flowers installation and 9090 Transfers Out. Central administrative charges from maintenance, and motion picture licensing. Fund. 8064 Machinery & Equipment. Special Project: Condenser for wal in fridge/freezer $20,000. 236 City of Kenai Fiscal Year 2027 Operating Budget Fund: 019 - Senior Citizens Fund Department:- Congregate Meals Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 60,872 $ 53,680 $ 69,432 $ 69,432 $ 70,129 $ 697 1.00% 0200 Overtime 169 73 91 91 186 95 104.40% 0250 Holiday Pay - - - - - - - 0300 Leave 1,415 1,417 2,634 2,634 2,651 17 0.65% 0400 Medicare 896 772 1,046 1,046 1,059 13 1.24% 0450 Social Security 750 501 368 368 387 19 5.16% 0500 PERS 12,593 12,807 18,015 18,015 19,119 1,104 6.13% 0600 Unemployment Insurance - 33 361 361 366 5 1.39% 0700 Workers Compensation 913 747 1,067 1,067 1,293 226 21.18% 0800 Health & Life Insurance 23,638 21,909 30,164 30,164 18,658 (11,506) (38.14%) 0900 Supplemental Retirement 3,116 1,783 1,040 1,040 3,367 2,327 223.75% Total Salaries & Benefits $ 104,362 $ 93,722 $ 124,218 $ 124,218 $ 117,215 $ (7,003) (5.64%) Maintenance and Operations 2021 Office Supplies 163 325 650 650 200 (450) (69.23%) 2022 Operating & Repair Supplies 34,152 47,824 61,458 92,479 60,627 (831) (1.35%) 2024 Small Tools/Minor Equipment 2,334 1,155 1,100 1,317 1,125 25 2.27% 2026 Computer Software 896 831 951 951 1,051 100 10.52% 4531 Professional Services 5,386 2,212 2,000 25,400 2,500 500 25.00% 4532 Communications 335 436 470 470 470 - - 4533 Travel & Transportation 1,158 1,027 800 800 2,333 1,533 191.63% 4534 Advertising 128 115 200 200 300 100 50.00% 4535 Printing & Binding 540 437 700 700 700 - - 4536 Insurance 2,028 2,673 4,740 4,740 5,767 1,027 21.67% 4537 Utilities 9,288 8,364 6,428 6,428 9,338 2,910 45.27% 4538 Repair & Maintenance 1,998 933 2,320 2,320 2,320 - - 4539 Rentals - - - - - - - 4540 Equip. Fund Pmts. 1,903 622 2,850 2,850 3,165 315 11.05% 4541 Postage 225 135 250 250 300 50 20.00% 4666 Books - - - - - - - 4667 Dues & Publications 209 209 244 244 407 163 66.80% 4999 Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies - - - - - - - Total Maint. and Operations $ 60,743 $ 67,298 $ 85,161 $ 139,799 $ 90,603 $ 5,442 6.39% Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Out Total Capital Outlay and Transfers Department Total: - 9,847 - - - - - 29,177 30,829 29,334 29,334 31,941 2,607 8.89% $ 29,177 $ 40,676 $ 29,334 $ 29,334 $ 31,941 $ 2,607 $ 194,282 $ 201,696 $ 238,713 $ 293,351 $ 239,759 $ 1,046 8.89% 0.44% 237 City of Kenai Fiscal Year 2027 Operating Budget Fund: 019 - Senior Citizens Fund Department: - 71 - Congregate Meals 2022 Operating & Repair Supplies. Food and supplies for meal preparation, paper and packaging products, and other miscellaneous supplies. Food and supplies are allocated based on the number of meals served. 4531 Professional Services. Outdoor gardening supplies. 4538 Repair & Maintenance. Equipment repair and maintenance, including security, fire alarm testing, kitchen fire extinguisher and hood. 9090 Transfers Out. Central administrative charges from Fund. 238 City of Kenai Fiscal Year 2027 Operating Budget Fund: 019 - Senior Citizens Fund Department:- Home Delivered Meals Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 126,325 $ 110,061 $ 121,490 $ 121,490 $ 126,921 $ 5,431 4.47% 0200 Overtime 340 197 182 182 338 156 85.71% 0250 Holiday Pay - - - - - - - 0300 Leave 2,848 3,115 4,599 4,599 4,798 199 4.33% 0400 Medicare 1,856 1,589 1,831 1,831 1,916 85 4.64% 0450 Social Security 1,729 1,271 655 655 701 46 7.02% 0500 PERS 31,783 24,992 31,479 31,479 34,601 3,122 9.92% 0600 Unemployment Insurance - 33 631 631 660 29 4.60% 0700 Workers Compensation 1,962 1,596 1,866 1,866 2,338 472 25.29% 0800 Health & Life Insurance 47,577 42,492 52,694 52,694 33,770 (18,924) (35.91%) 0900 Supplemental Retirement 6,379 3,609 2,849 2,849 6,093 3,244 113.86% Total Salaries & Benefits $ 220,799 $ 188,955 $ 218,276 $ 218,276 $ 212,136 $ (6,140) (2.81%) Maintenance and Operations 2021 Office Supplies - 11 200 200 200 - - 2022 Operating & Repair Supplies 133,301 110,991 107,270 138,291 111,061 3,791 3.53% 2024 Small Tools/Minor Equipment 1,290 403 600 817 625 25 4.17% 2026 Computer Software 783 881 951 951 1,051 100 10.52% 4531 Professional Services 2,351 598 300 300 300 - - 4532 Communications 467 644 470 470 470 - - 4533 Travel & Transportation 238 224 500 500 1,833 1,333 266.60% 4534 Advertising - - - - - - - 4535 Printing & Binding 578 478 700 700 700 - - 4536 Insurance 9,255 6,318 7,753 7,753 9,430 1,677 21.63% 4537 Utilities 17,169 14,918 19,521 19,521 17,965 (1,556) (7.97%) 4538 Repair & Maintenance 500 100 - - - 4539 Rentals - - - - - - - 4540 Equip. Fund Pmts. 3,832 3,863 4,979 4,979 5,725 746 14.98% 4541 Postage 200 120 200 200 300 100 50.00% 4666 Books - - - - - - - 4667 Dues & Publications 208 214 360 360 575 215 59.72% 4999 Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies - - - - - - - Total Maint. and Operations $ 170,172 $ 139,763 $ 143,804 $ 175,042 $ 150,235 $ 6,431 4.47% Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements - 8064 Machinery & Equipment - 3,160 - - - - 9090 Transfers Out 59,141 58,648 59,459 59,459 57,794 (1,665) (2.800/6) Total Capital Outlay and Transfers $ 59,141 $ 61,808 $ 59,459 $ 59,459 $ 57,794 $ (1,665) (2.80%) Department Total: $ 450,112 $ 390,526 $ 421,539 $ 452,777 $ 420,165 $ (1,374) (0.33%) 239 City of Kenai Fiscal Year 2027 Operating Budget Fund: 019 - Senior Citizens Fund Department: - 72 - Home Delivered Meals 2022 Operating & Repair Supplies. Food and supplies for meal 4531 Professional Services. Background checks. preparation, paper and packaging products, and other miscellaneous supplies. Food and supplies are allocated based on the number of meals served. 2024 Small Tools & Minor Equipment. Miscellaneous kitchen 9090 Transfers Out. Central administrative charges from equipment and computer replacements. Fund. 240 City of Kenai Fiscal Year 2027 Operating Budget Fund: 019 - Senior Citizens Fund Department:- Transportation Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 55,783 $ 41,826 $ 69,696 $ 69,696 $ 69,800 $ 104 0.15% 0200 Overtime 49 51 84 84 129 45 53.57% 0250 Holiday Pay - - - - - - - 0300 Leave - 104 1,083 1,083 1,126 43 3.97% 0400 Medicare 804 597 1,028 1,028 1,031 3 0.29% 0450 Social Security 1,388 1,004 2,687 2,687 2,626 (61) (2.27%) 0500 PERS 7,012 6,605 7,490 7,490 8,230 740 9.88% 0600 Unemployment Insurance - 16 354 354 356 2 0.56% 0700 Workers Compensation 1,328 709 1,395 1,395 2,284 889 63.73% 0800 Health & Life Insurance 8,016 7,927 8,016 8,016 6,012 (2,004) (25.00%) 0900 Supplemental Retirement 1,084 729 171 171 1,044 873 510.53% Total Salaries & Benefits $ 75,464 $ 59,568 $ 92,004 $ 92,004 $ 92,638 $ 634 0.69% Maintenance and Operations 2021 Office Supplies - 16 150 150 200 50 33.33% 2022 Operating & Repair Supplies 5,000 6,328 5,000 11,000 6,000 1,000 20.00% 2024 Small Tools/Minor Equipment 239 234 485 485 975 490 101.03% 2026 Computer Software 814 822 951 951 1,051 100 10.52% 4531 Professional Services 759 395 1,200 1,200 1,000 (200) (16.67%) 4532 Communications 514 433 470 470 470 - 4533 Travel & Transportation 54 74 100 100 - (100) (100.00%) 4534 Advertising - - - - - - 4535 Printing & Binding 14 255 700 700 700 - - 4536 Insurance 2,355 1,998 2,520 2,520 3,066 546 21.67% 4537 Utilities 7,922 7,129 10,822 10,822 8,188 (2,634) (24.34%) 4538 Repair & Maintenance 95 39 250 250 - (250) 4539 Rentals - - - - - - (100.00%) 4540 Equip. Fund Pmts. 1,749 2,729 1,588 1,588 1,824 236 14.86% 4541 Postage 100 62 100 100 100 - - 4666 Books - - - - - - - 4667 Dues & Publications 27 117 117 167 50 42.74% 4999 Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies - - - - - - Total Maint. and Operations $ 19,615 $ 20,541 $ 24,453 $ 30,453 $ 23,741 $ (712) 2.91%) Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment - - - - - - 9090 Transfers Out 27,069 21,603 27,215 27,215 25,768 (1,447) (5.320/6) Total Capital Outlay and Transfers $ 27,069 $ 21,603 $ 27,215 $ 27,215 $ 25,768 $ (1,447) (5.32%) Department Total: $ 122,148 $ 101,712 $ 143,672 $ 149,672 $ 142,147 $ (1,525) (1.06%) 1►151 City of Kenai Fiscal Year 2027 Operating Budget Fund: 019 - Senior Citizens Fund Department: - 74 - Transportation 2022 Operating & Repair Supplies. Fuel for vehicles. 9090 Transfers Out. Central administrative charges from General Fund. 4531 Professional Services. Cleaning and detailing for vehicles. PZIN City of Kenai Fiscal Year 2027 Operating Budget Fund: 019 - Senior Citizens Fund Department:- Choice Waiver Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 13,719 $ 27,678 $ 18,376 $ 18,376 $ 21,387 $ 3,011 16.39% 0200 Overtime 45 31 24 24 57 33 137.50% 0250 Holiday Pay - - - - - - - 0300 Leave 376 732 698 698 809 111 15.90% 0400 Medicare 240 404 277 277 322 45 16.25% 0450 Social Security 209 248 217 217 118 (99) (45.62%) 0500 PERS 4,252 7,403 4,776 4,776 5,831 1,055 22.09% 0600 Unemployment Insurance - 20 95 95 112 17 17.89% 0700 Workers Compensation 245 384 282 282 394 112 39.72% 0800 Health & Life Insurance 6,276 11,824 7,994 7,994 5,692 (2,302) (28.80%) 0900 Supplemental Retirement 828 861 255 255 1,027 772 302.75% Total Salaries & Benefits $ 26,190 $ 49,585 $ 32,994 $ 32,994 $ 35,749 $ 2,755 8.35% Maintenance and Operations 2021 Office Supplies - 7 100 100 200 100 100.00% 2022 Operating & Repair Supplies 17,195 23,413 17,972 17,972 21,643 3,671 20.43% 2024 Small Tools/Minor Equipment 283 242 335 552 325 (10) (2.99%) 2026 Computer Software 627 602 951 951 1,051 100 10.52% 4531 Professional Services 3,976 3,475 4,200 4,200 4,300 100 2.38% 4532 Communications 291 463 470 470 470 - - 4533 Travel & Transportation 386 464 500 500 500 4534 Advertising - - - - - 4535 Printing & Binding 578 377 700 700 700 - - 4536 Insurance 1,641 1,657 1,130 1,130 1,374 244 21.59% 4537 Utilities 1,776 4,845 2,893 2,893 2,771 (122) (4.22%) 4538 Repair & Maintenance - 5 - - - - 4539 Rentals - - - - - - - 4540 Equip. Fund Pmts. 506 2,336 755 755 965 210 27.81% 4541 Postage 200 126 200 200 300 100 50.00% 4666 Books - - - - - - - 4667 Dues & Publications 248 186 360 360 574 214 59.44% 4999 Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies - - - Total Maint. and Operations $ 27,707 $ 38,198 $ 30,566 $ 30,783 $ 35,173 $ 4,607 15.07% Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment - - - - - - - 9090 Transfers Out 7,796 16,216 7,838 7,838 9,739 1,901 24.25% Total Capital Outlay and Transfers $ 7,796 $ 16,216 $ 7,838 $ 7,838 $ 9,739 $ 1,901 24.25% Department Total: $ 61,693 $ 103,999 $ 71,398 $ 71,615 $ 80,661 $ 9,263 12.970/6 243 City of Kenai Fiscal Year 2027 Operating Budget Fund: 019 - Senior Citizens Fund Department: - 75 - Choice Waiver 2022 Operating & Repair Supplies. Food and supplies for meal 9090 Transfers Out. Central administrative charges from preparation, paper and packaging products, and other miscellaneous Fund. supplies. 4531 Professional Services. Contracted billing services and background checks. 244 DEBT SERVICE FUNDS The City's Debt Service Fund is used to accumulate monies for payment of general obligation bonds issued for construction, improvements, and equipping public facilities throughout the City. The City has the following active debt authorizations. 1. LIBRARY EXPANSION BONDS The voters of the City of Kenai authorized the issuance of $2,000,000 of general obligation bonds at the City's October 2, 2007 general election for the expansion of the Kenai Library. These bonds were issued on March 11, 2010 in the amount of $2,000,000 with a term of twenty years. In July 2020 these bonds were advance refundable to reduce the Debt service costs annually for the remaining ten years of the debt. The advance refunding resulted in a cash flow savings of $132,171 and an economic gain of $119,680. 2. KENAI BLUFF EROSION CONTROL BONDS The voters of the City of Kenai authorized the issuance of $2,000,000 of general obligation bonds at the City's October 2, 2007 general election for stabilization of the eroding bluff at the mouth of the Kenai River. To date, the bonds remain unissued as full project funding is yet to be secured. Pursuant to Section 6-1 of the Kenai Municipal Charter, outstanding general - obligation indebtedness of the "City shall not at any time exceed twenty percent (20%) of the assessed value of real and personal property in the City. The FY2026 debt limit for the City is: Total Assessed Value $1,049,950,664 X 20% Maximum Indebtedness 209,990,133 Outstanding Debt, July 1, 2026 460,000 Available Debt Capacity $209,530,133 $125,375 Transfers In, $125,375, 100.00% $125,375 245 City of Kenai Fiscal Year 2027 Operating Budget Fund 048 - Debt Service Original Actual Actual Budget FY2024 FY2025 FY2026 Projection Proposed FY2026 FY2027 Revenues Bond Interest Subsidy - - - - Proceeds form debt issuance - - - - Payments to refunded bond escrow agent - - - - Transfer from General Fund 130,625 130,750 130,625 130,625 125,375 Total Revenue 130,625 130,750 130,625 130,625 125,375 Expenditures Parks, Recreation & Culture 130,625 130,750 130,625 130,625 125,375 Contributions To/From Fund Balance - - - - - Beginning Fund Balance - - - - - Ending Fund Balance $ - $ - $ - $ - $ - 246 Account Expense Number Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Maintenance and Operations 2021 Office Supplies 2022 Operating & Repair Supplies 2024 Small Tools/Minor Equipment 2026 Computer Software 4531 Professional Services 4532 Communications 4533 Travel & Transportation 4534 Advertising 4535 Printing & Binding 4536 Insurance 4537 Utilities 4538 Repair & Maintenance 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 4667 Dues & Publications 4999 Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations Capital Outlay & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Out Total Capital Outlay and Transfers Department Total: City of Kenai Fiscal Year 2027 Operating Budget Fund 048 - Debt Service Five year Original Increase FY2025 Historical Budget Amended Proposed (Decrease) % Actual Average FY2026 Budget FY2027 FY2025 Oriainal Chanae 3,189 130,750 368,887 130,625 130,625 125,375 (5,250) (4.02%) $ 130,750 $ 372,076 $ 130,625 $ 130,625 $ 125,375 $ (5,250) (4.02%) $ 130,750 $ 372,076 $ 130,625 $ 130,625 $ 125,375 $ (5,250) (4.02%) 247 City of Kenai Fiscal Year 2027 Operating Budget Fund 048 - Debt Service Summary by Debt Issuance Issue Amount Interest Maturity Annual Outstanding Date Issued Rate Dates Installments 6/30/2026 Library Expansion Refunding Bonds 3/11/2010 $2,000,000 2.00 - 6.341 2011 - 2030 $143,560 - $178,598 $ 460,000 248 PERMANENT FUNDS AIRPORT LAND SALES PERMANENT FUND (ALSPF) was established to account for the proceeds of airport land sales, including principal and interest on long-term notes. GENERAL GOVERNMENT LAND SALES PERMANENT FUND (GGLSPF) was established to account for the proceeds of general government land sales, including principal and interest on long-term notes. By City Charter, the principal cannot be spent. $1,840,337 Miscellaneous, $6,000 , 0.33% Interest/Investment Earnings, $1,834,337, 99.67% $1,327,655 Transfers $1,327,655 100.00% 249 City of Kenai Fiscal Year 2027 Operating Budget Budget Projection Land Sales Permanent Funds Original Actual Actual Budget FY2026 Proposed FY2024 FY2025 FY2026 Projection FY2027 FUND 082-52 Airport Land Sales Permanent Fund Revenues Acct. 36610 Investments Earnings $ 2,787,146 $ 3,059,888 $ 1,549,041 $ 1,549,041 $ 1,626,493.0 Acct. 36645 Interest on Land Sale Contracts 6,873 5,677 10,000 6,029 6,000 Acct. 33640 Land Sales 12,361 397,077 - - - Total Revenue 2,806,380 3,462,642 1,559,041 1,555,070 1,632,493 Expenses Transfer to Airport Land System Fund 1,065,518 1,094,116 1,099,774 1,151,157 1,151,157 Contributions To/(From) Fund Balance 1,740,862 2,368,526 459,267 403,913 481,336 Beginning Fund Balance 27,110,829 28,888,731 31,257,257 31,257,257 31,661,170 Ending Fund Balance $ 28,888,731 $ 31,257,257 $ 31,716,524 $ 31,661,170 $ 32,142,506 FUND 081-52 General Land Sales Permanent Fund Revenues Acct. 36610 Investments Earnings $ 360,112 $ 396,190 $ 197,947 $ 197,947 $ 207,844 Acct. 36645 Interest on Land Sale Contracts - 7,508 - - - Acct. 33640 Land Sales - 67,397 - - - Total Revenue 360,112 471,095 197,947 197,947 207,844 Expenses Transfer to General Fund 146,180 153,684 159,045 176,498 176,498 Contributions To/(From) Fund Balance 213,932 317,411 38,902 21,449 31,346 Beginning Fund Balance 3,485,183 3,699,115 4,016,526 4,016,526 4,037,975 Ending Fund Balance $ 3,699,115 $ 4,016,526 $ 4,055,428 $ 4,037,975 $ 4,069,321 250 INTERNAL SERVICE FUNDS Internal Service Funds are established to account for the financing of self- supporting activities of governmental units, which render services to the general government itself. Internal Service Funds are maintained on the accrual basis of accounting. Expenses are controlled through budgetary accounting procedures similar to the governmental fund. 1. EMPLOYEE HEALTH CARE FUND This Fund accounts for employee health care costs. Department within funds are billed for each eligible employee. 2. EQUIPMENT REPLACEMENT FUND The Equipment Replacement Fund accounts for the purchase of equipment to be used by a department of the General Fund with a purchase price of at least $50,000. Departments are invoiced annually an amount sufficient to accumulate sufficient cash reserves to replace the equipment at the end of its useful life. 3. FLEET REPLACEMENT FUND The Fleet Replacement Fund accounts for the purchase of General and Senior Citizen Funds vehicles. Departments are invoiced annually an amount sufficient to accumulate sufficient cash reserves to replace the vehicles at the end of their useful life. $3,478,450 Miscellaneous, $54,392, 1.56% Interest/Investment Earnings, $209,917 , 6.03% Rents & Leases, $730,869 , 21.01 % Charges for Service, $2,483,272 , 71.39% Kenai Municipal Airport 11$3,389,640 $119,850 Personal Use Fishery Water& Sewer Utility 3.54% Senior Citizen Programs / $8,565 $178,823 / $97,369 0.25% 5.28% 2.87% Senior Housing Parks, Recreation & $14,029 Culture 0.41 % $223,527 6.59% General Government $1,185,203 34.97% Public Safety $1,181,190 34.85% 251 City of Kenai Fiscal Year 2027 Operating Budget Fund 011 - Employee Health Care Fund Department 418 - Health Care Fund Summary Original Actual Actual Budget Projection Proposed FY2024 FY2025 FY2026 FY2026 FY2027 Revenues Charge for Services $ 2,640,656 $ 2,832,897 $ 2,640,656 $ 2,902,000 $ 2,144,441 Participant premiums 357,811 348,433 357,811 381,546 338,831 Misc Revenue - 2,685 - - - Transfer from Other Funds - - - - - Interest Earnings 108,361 136,742 108,361 108,361 460,755 Total Revenues 3,106,828 3,320,757 3,106,828 3,391,907 2,944,027.00 Expenses 2,575,276 - - - - Net Income (loss) 531,552 3,320,757 3,106,828 3,391,907 2,944,027 Beginning Retained Earnings 1,970,879 2,502,431 2,473,111 5,823,188 9,215,095 Available Retained Earnings $ 2,502,431 $ 5,823,188 $ 5,579,939 $ 9,215,095 $ 12,159,122 FY2025 FY2026 FY2027 Difference % Change Employer cost per position: Full-time $ 26,722 $ 20,042 $ 21,245 $ 1,203 6.00% Part-time 13,361 10,021 10,622 601 6.00% Projected* Employee Jan 1 - Dec 31 Jan 1 - Dec 31 Jan 1 - Dec 31 Increase Monthly 2025 2026 2027 2027 % Increase Employee monthly premiums: $3,000/$6,000 Deductible Plan Employee only $ 176.00 $ 161.13 $ 167.58 $ 6.45 4.00% Employee with child(ren) 323.00 298.09 310.01 11.92 4.00% Employee with spouse 355.00 331.93 345.21 13.28 4.00% Employee with family 487.00 468.88 487.64 18.76 4.00% Part-time employee only 766.00 700.00 728.00 28.00 4.00% Part-time employee w/Children 1,894.00 1,295.00 1,346.80 51.80 4.00% Part-time employee w/Spouse 2,144.00 1,442.00 1,499.68 57.68 4.00% Part-time employee w/Family 3,156.00 2,037.00 2,118.48 81.48 4.00% * Assumes a 4% premium increase for health insurance and a 4% increase for dental and an employee cost share of 15% of premiums. Employee monthly premiums: $4,000/$8,000 QHDHP with HSA Employee only $ 168.00 $ 145.85 $ 151.68 $ 6.07 4.00% Employee with child(ren) 304.00 269.83 280.62 11.22 4.00% Employee with spouse 335.00 300.45 312.47 12.50 4.00% Employee with family 462.00 424.43 441.41 17.66 4.00% Part-time employee only 730.00 633.00 658.32 26.33 4.00% Part-time employee w/Children 1,818.00 1,305.00 1,357.20 54.29 4.00% Part-time employee w/Spouse 2,062.00 1,172.00 1,218.88 48.76 4.00% Part-time employee w/Family 3,024.00 1,844.00 1,917.76 76.71 4.00% 252 City of Kenai Fiscal Year 2027 Operating Budget Fund: 011 - Employee Health Care Fund Department: 418 - Employee Health Care Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ $ $ $ $ $ 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits $ Maintenance and Operations 2021 Office Supplies 10,000 - (10,000) (100.00%) 2022 Operating & Repair Supplies 10,000 10,000 2024 Small Tools/Minor Equipment - - 2026 Computer Software - - - - - 4531 Professional Services 59,130 56,138 55,764 55,764 61,500 5,736 10.29% 4532 Communications - - - - - - - 4533 Travel & Transportation 10,000 10,000 10,000 4534 Advertising - - - 4535 Printing & Binding - - - - - 4536 Insurance 2,708,328 2,681,299 3,081,432 3,081,432 2,916,288 (165,144) (5.36%) 4537 Utilities - - - - - 4538 Repair & Maintenance 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 4667 Dues & Publications 4999 Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies - Total Maint. and Operations $ 2,767,458 $ 2,7379437 $ 3,1579196 $ 3,1479196 $ 2,9979788 $ (1699408) (5.37%) Capital Outlay & Transfers 8061 Land - - - - - - 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Out Total Capital Outlay and Transfers $ - $ - $ - $ - $ - $ - - Department Total: $ 2,7679458 $ 2,7379437 $ 3,157,196 $ 3,147,196 $ 2,997,788 $ (1599408) (5.05%) 253 City of Kenai Fiscal Year 2027 Operating Budget Fund: 011 -Employee Health Care Fund Department: 418 - Employee Health Care 2022 Operating & Repair Supplies. Wellness supplies. 4533 Travel & Transportation. Training and travel. 4531 Professional Services. Broker services: $50,000; 4536 Insurance. Medical, dental, and prescription d HRA/FSA administration charges and employee wellness coverage: $2,682,414. HRA employer funding: $162,8 program+: $11,500. employee opt -out payments: $59,400. Employer -provided insurance: $11,594. 254 City of Kenai Fiscal Year 2027 Operating Budget Fund: 061 - Equipment Replacement Fund Department: 459 - Equipment Replacement Fund Summary Original Actual Actual Budget Projection Proposed FY2024 FY2025 FY2026 FY2026 FY2027 Revenues Rents & Leases $ 416,732 $ 457,191 $ 554,953 $ 554,953 $ 596,882 Interest Earnings 88,525 86,162 34,135 34,135 35,842 Other income - - 38,923 8,850 38,923 Total Revenues 505,257 543,353 628,011 597,938 671,647 Expenses 216,745 239,233 276,969 276,969 288,678 Net Income (loss) 288,512 304,120 351,042 320,969 382,969 Transfers out - - - - - Total net income (loss) and transfers out 288,512 304,120 351,042 320,969 382,969 Beginning Net Position 3,813,004 4,101,516 4,305,081 4,405,636 4,726,605 Ending Net Position 4,101,516 4,405,636 4,656,123 4,726,605 5,109,574 Invested in Capital Assets (2,138,530) (2,478,963) (4,257,394) (2,404,486) (4,819,460) Unrestricted Net Position $ 1,962,986 $ 1,926,673 $ 398,729 $ 2,322,119 $ 290,114 255 City of Kenai Fiscal Year 2027 Operating Budget Fund: 061 - Equipment Replacement Fund Department: 459 - Equipment Replacement Fund Summary Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2025 Original Change Salaries and Benefits 0100 Salaries $ $ $ $ $ $ 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Maintenance and Operations 2021 Office Supplies 2022 Operating & Repair Supplies 2024 Small Tools/Minor Equipment 2026 Computer Software 4531 Professional Services 4532 Communications 4533 Travel & Transportation 4534 Advertising 4535 Printing & Binding 4536 Insurance 4537 Utilities 4538 Repair & Maintenance 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 4667 Dues & Publications 4999 Contingency 5041 Miscellaneous 1,102 (15) 3,258 3,258 1,740 (1,518) (46.59%) 5045 Depreciation 238,131 210,607 273,711 273,711 286,938 13,227 4.83% 5047 Grants to Agencies - - - - - - - Total Maint. and Operations $ 239,233 $ 2109592 $ 2769969 $ 2769969 $ 288,678 $ 119709 4.23% 8061 Capital Outlay & Transfers L d - 8062 Buildings 8063 Improvements 8064 Machinery & Equipment - 9090 Transfers Out 80,000 Total Capital Outlay and Transfers $ - $ 80,000 $ - $ - $ - $ - - Department Total: $ 239,233 $ 2909592 $ 2769969 $ 2769969 $ 2889678 $ 119709 4.23% 256 City of Kenai Fiscal Year 2027 Operating Budget Fund: 061 - Equipment Replacement Fund Department: 459 - Equipment Replacement Fund Summary 5045 Depreciation. The allocation of the cost of equipment over its useful life. 257 City of Kenai Fiscal Year 2027 Operating Budget Fund 061 - Equipment Replacement Fund Department: 59 - Equipment Replacement Fire 169,066 163,276 245,611 258,072 Streets 197,639 173,012 255,879 244,412 Non -Dept 44,907 41,290 47,532 47,532 Parks & Rec 5,120 4,163 5,931 5,931 Total $416,731 $381,741 $554,953 $555,948 258 City of Kenai Fiscal Year 2027 Operating Budget Fund 063 - Fleet Replacement Fund Fleet Replacement Fund Sum Original Actual Actual Budget Projection Proposed FY2024 FY2025 FY2026 FY2026 FY2027 Revenues Rents & Leases $ 157,196 $ 153,990 $ 172,204 $ 172,204 $ 174,921 Interest Earnings 27,396 29,794 8,622 8,622 9,053 Other income - - 15,469 15,469 15,469 Total Revenues 184,592 183,784 196,295 196,295 199,443 Expenses 53,488 61,316 102,267 293,178 103,174 Net Income (loss) 131,104 122,468 94,028 (96,883) 96,269 Transfers out - - - - - Total net income (loss) and transfers out 131,104 122,468 94,028 (96,883) 96,269 Beginning Net Position 971,667 1,102,771 1,012,016 1,225,239 1,128,356 Ending Net Position 1,102,771 1,225,239 1,106,044 1,128,356 1,224,625 Invested in Capital Assets (454,571) (784,190) (706,552) (823,068) (981,411) Unrestricted Net Position $ 648,200 $ 441,049 $ 399,492 $ 305,288 $ 243,214 259 City of Kenai Fiscal Year 2027 Operating Budget Fund: 063 - Fleet Replacement Fund Department: 459 - Fleet Replacement Fund Summary Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ $ $ $ $ $ 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits Maintenance and Operations 2021 Office Supplies 2022 Operating & Repair Supplies 2024 Small Tools/Minor Equipment 2026 Computer Software 4531 Professional Services 4532 Communications 4533 Travel & Transportation 4534 Advertising 4535 Printing & Binding 4536 Insurance 4537 Utilities 4538 Repair & Maintenance 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 4667 Dues & Publications 4999 Contingency 5041 Miscellaneous 341 68 1,144 1,144 600 (544) (47.55%) 5045 Depreciation 60,975 60,099 101,123 101,123 102,574 1,451 1.43% 5047 Grants to Agencies - - - - - - - Total Maint. and Operations $ 61,316 $ 609167 $ 102,267 $ 102,267 $ 1039174 $ 907 0.89% Capital Outlay & Transfers 8061 Land - - - - - - - 8062 Buildings 8063 Improvements - 8064 Machinery & Equipment 190,911 9090 Transfers Out Total Capital Outlay and Transfers $ - $ - $ - $ 190,911 $ - $ - - Department Total: $ 619316 $ 60,167 $ 102,267 $ 293,178 $ 103,174 $ 907 0.89% 260 City of Kenai Fiscal Year 2027 Operating Budget Fund: 063 - Fleet Replacement Fund Department: 459 - Fleet Replacement Fund Summary 5045 Depreciation. The allocation of the cost of equipment over its useful life. 261 City of Kenai Fiscal Year 2027 Operating Budget Fund 063 - Fleet Replacement Fund Department: 59- Fleet Replacement Item DepartmentEstimated Police P-35 2025 Description11 AWD police cruiser $ 5,604 $ 5,604 $ 6,599 $ 6,436 $ 6,436 12 Police P-31 2025 AWD police cruiser 5,604 5,604 6,599 6,436 6,436 40 Streets ST-02 2026 1 Ton PU 3,009 3,009 3,009 4,367 4,367 13 Police P-36 2027 AWD police cruiser 5,604 5,604 5,604 5,604 7,236 17 Police P-37 2027 AWD police cruiser 5,604 5,604 5,604 5,604 7,236 30 Shop SH-01 2027 1/2 Ton PU 3,066 3,066 3,066 3,066 4,450 41 Shop SH-02 2027 1 Ton PU 4,374 4,374 4,374 4,374 5,982 32 Animal Control AC-1 2028 Van 2,121 2,121 4,426 4,426 4,426 14 Police P-38 2028 AWD police cruiser 5,604 5,604 5,604 5,604 5,604 15 Police P-39 2028 AWD police cruiser 5,604 5,604 5,604 5,604 5,604 36 Senior Center SC-04 2028 AWD Vehicle 1,933 1,933 3,187 3,187 3,187 31 Animal Control AC-3 2029 1/2 Ton pickup 3,187 3,187 3,729 3,729 3,729 24 Fire F-11 2029 3/4 Ton pickup 3,045 3,045 2,574 2,574 2,574 25 Fire F-10 2029 3/4 Ton pickup 3,045 3,045 2,574 2,574 2,574 22 Parks & Rec PR-002 2029 1 Ton PU 3,179 3,179 5,913 5,913 5,913 4 Police P-08 2029 1/2 Ton pickup 3,434 3,434 2,646 2,646 2,646 6 Police P-26 2029 1/2 Ton pickup 3,223 3,223 2,646 2,646 2,646 27 Fire F-12 2030 3/4 Ton pickup 3,008 3,008 2,695 2,695 2,695 29 Streets ST-03 2030 1 Ton PU 3,009 3,009 6,207 6,207 6,207 20 Parks & Rec PR-007 2031 1/2 Ton pickup 3,570 3,570 3,294 3,294 3,294 5Police P-xx 2032 1/2Ton pickup 4,350 3,463 3,294 3,294 3,294 1 Police P-17 2033 AWD police cruiser 6,312 5,922 6,789 6,789 6,789 7 Police P-18 2033 AWD police cruiser 3,942 5,922 6,789 6,789 6,789 8 Police P-19 2033 AWD police cruiser 5,604 6,244 6,789 6,789 6,789 10 Police P-20 2033 AWD police cruiser 7,963 3,838 6,789 6,789 6,789 16 Police P-11 2033 AWD police cruiser 4,678 7,188 5,121 5,121 5,121 33 Senior Center SC-05 2034 15 Passenger Van 2,537 2,537 3,385 3,385 3,385 34 Senior Center SC-06 2034 15 Passenger Van 2,537 3,385 3,385 3,385 3,385 9 Police P-32 2035 AWD police cruiser 5,604 5,604 6,599 6,436 6,436 18 Parks & Rec PR-003 2037 1/2 Ton pickup 3,500 3,500 2,646 2,646 2,646 19 Parks & Rec BF-01 2037 1/2 Ton pickup 3,500 3,500 2,646 2,646 2,646 23 Parks & Rec PR-006 2037 3/4 Ton pickup 2,891 2,891 2,574 2,574 2,574 2Police P-03 2037 1/2Ton pickup 4,350 1,450 3,729 3,729 3,729 28 Streets ST-01 2037 3/4 Ton pickup 2,891 2,891 2,574 2,574 2,574 26 Fire P-11 2039 3/4 Ton pickup 2,671 4,862 5,917 5,717 5,717 3 Police P-xx 2039 1/2 Ton pickup 4,350 3,463 3,294 3,294 3,294 21 Parks & Rec PR-009 2040 1/2 Ton pickup 3,570 3,570 3,294 3,294 3,294 35 Senior Center SC-02 2041 AWD Vehicle Bronco 1,933 1,933 1,933 2,957 2,957 37 Senior Center SC-08 2041 AWD Vehicle Bronco 1,933 1,933 1,933 2,957 2,957 38 Buildings BI-2 2044 15 Passenger Van 2,813 2,813 3,385 3,385 3,385 39 Buildings 13I-3 2044 15 Passenger Van 2,651 2,651 3,385 3,385 3,385 Total $ 157,407 $ 156,387 $ 172,204 $ 174,921 $ 181,177 Police $ 87,434 $ 83,375 $ 90,099 $ 89,610 $ 92,874 Parks & Rec 20,210 20,210 20,367 20,367 20,367 Fire 11,769 13,960 13,760 13,560 13,560 Streets 8,909 8,909 11,790 13,148 13,148 Shop 7,440 7,440 7,440 7,440 10,432 Animal Control 5,308 5,308 8,155 8,155 8,155 Senior Center 10,873 11,721 13,823 15,871 15,871 Buildings 5,464 5,464 6,770 6,770 6,770 $ 157,407 $ 156,387 $ 172,204 $ 174,921 $ 181,177 262 ENTERPRISE FUNDS Enterprise Funds are established to account for the financing of self-supporting activities of governmental units, which render services to general public on a user charge basis. Enterprise Funds are maintained on the accrual basis of accounting. Expenses are controlled through budgetary accounting procedures similar to the governmental fund. 1. CONGREGATE HOUSING FUND This Fund consists of a 40-unit senior citizen housing complex located on a bluff overlooking the Kenai River. The significant revenue source is rents. Transfers In, $30,000 , 5.73% \ Transfers, $1 $523,675 Rents & Leases, $5,231 , 1.00% Charges for Service, $488,444, 93.27% $694,834 263 City of Kenai Fiscal Year 2027 Operating Budget Budget Projection Fund: 009 - Congregate Housing Fund Original Actual Actual Budget Projection Proposed FY2024 FY2025 FY2026 FY2026 FY2027 Revenues PERS Grant $ 1,688 $ 2,603 $ 3,918 $ 2,897 $ 5,231 Rents and Leases 486,345 508,310 478,765 $ 504,117 $ 488,444 Interest on Investments 52,254 32,616 30,000 $ 30,000 $ 30,000 Miscellaneous 203 2,556 - $ 1,300 $ - Total Revenues 540,490 546,085 512,683 $ 538,314 $ 523,675 Expenses 534,126 568,983 567,454 $ 579,804 594,834 Net Income (loss) 6,364 (22,898) (54,771) $ (41,490) (71,159) Beginning Retained Earnings 1,013,889 616,133 240,527 $ 698,887 613,843 Capital Asset Acquistions (544,856) (49,594) (184,000) $ - - Allocated to Capital Projects (212,649) (378,056) - $ (184,000) (100,000) Credit for Depreciation 140,736 155,246 140,446 $ 140,446 140,446 Available Retained Earnings $ 403,484 $ 320,831 $ 142,202 $ 613,843 $ 583,130 264 City of Kenai Fiscal Year 2027 Operating Budget Fund 009 — Congregate Housing Department 462 — Congregate Housing Mission To provide independent seniors with a supportive, community -focused living environment that frees them from the burdens of homeownership while fostering dignity, respect, and meaningful connections with their peers. Functions & Responsibilities Vintage Pointe Manor offers a welcoming and supportive community where seniors from diverse backgrounds can enjoy their independence while forming meaningful connections. Residents have the opportunity to share life experiences and embrace their later years in a safe, comfortable, and caring environment. Conveniently located next to the Kenai Senior Center, Vintage Pointe Manor provides residents with easy and secure access to a variety of activities and services. The building features 40 one and two -bedroom apartments with rental rates ranging from $1,051.73 to $1,262.08 per month, based on unit size and location. Rent includes gas heat, water, sewer, refuse, internet, and basic television. Each apartment is equipped with a washer/dryer, electric stove, dishwasher, refrigerator, and a small indoor storage area. Residents are responsible for their own electricity and phone services. To qualify, tenants must be 60 years or older and able to live independently. A contracted on -site resident manager provides minor maintenance, oversees facility operations, and maintains regular office hours. The Kenai Senior Center Office manages overall supervision, including rental agreements, fee collection, purchase orders, and tenant concerns. Organizational Chart City Manager tAdministrative Staffing FY23 Actual FY24 Actual FY25 Actual Projected FY26 Pro osed FY27 Projected FY28 Position Title FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade FTE Grade Senior Center Director .35 23 .40 23 .40 23 .40 23 .40 23 .40 23 Administrative Assistant III .25 15 .30 15 .30 15 .30 15 .30 15 .30 15 Data Entry Clerk .02 1 - - - - - 265 Average Overtime Per Position (hours) i Position Title FY23 Actual Senior Center Director N/A Administrative Assistant III 4 Data Entry Clerk Performance Measures Fiscal Year Apartment Turnover Units at Market Rate Rents Apartment Renovations *July 1— March 1 FY24 Actual FY25 Actual Projected FY26 Proposed FY27 Projected FY28 N/A N/A N/A N/A N/A 4 4 4 4 4 2022 2023 2024 2025 2026 4 9 6 4 *6 85% 88% 7% 5% 100% N/A N/A N/A N/A N/A FY26 Department Goals Evaluation The following goals support the City of Kenai Comprehensive Plan Goal 1: Promote and encourage quality of life in Kenai: 1. Finalize design plans for kitchen and bath renovations and completion of two apartments. • Not Achieved. The goal is in the work for the design process. 2. To implement a schedule for replacing antiquated lighting and heating systems, thus reducing energy costs. • Partially Achieved. The boiler was replaced in FY25. Lighting to be replaced in FY26. 3. Issue RFP and award contract for construction phase two apartment remodels. Partially Achieved. RFP awarded for design phase. 4. Upgrade hallway and commons areas' lighting systems to improve energy efficiency and reduce costs. • Partially Achieved. 5. Continuing common areas modernization with the first -floor east hallway and commons areas. (waiting on funding this vs utilizing funds for the window repair project) • Not Achieved. 6. Document 10 department policies and procedures according to the new format for the City of Kenai. • Not Achieved. Will continue this goal through FY27. 7. Initiate the development of a comprehensive long-term maintenance and renovation plan, creating a strategic roadmap that identifies priorities for improvements beyond FY26 to ensure long-term sustainability, efficiency, and livability. • Partially Achieved. Will continue this goal through FY27. 266 FY27 Department Goals 1. All critical operational procedures are documented in accordance with the City format. 2. Complete modernization of the first -floor east hallway and commons areas contingent upon available funding. 3. Finalize and begin implementation of the comprehensive long-term maintenance and renovation plan with at least two priority projects identified. Future Considerations • Security camera upgrades • Exterior lighting improvements • Emergency systems modernization • Fire safety system upgrades 267 City of Kenai Fiscal Year 2027 Operating Budget Fund: 009 - Congregate Housing Fund Department: 462 - Congregate Housing Five year Original Increase Account Expense FY2025 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2026 Budget FY2027 FY2026 Original Change Salaries and Benefits 0100 Salaries $ 61,013 $ 51,560 $ 63,581 $ 63,581 $ 66,409 $ 2,828 4.45% 0200 Overtime 97 249 209 $ 209 $ 61 (148) (70.81%) 0250 Holiday Pay - - - $ - $ - - - 0300 Leave 1,285 396 2,707 $ 2,707 $ 2,821 114 4.21% 0400 Medicare 857 722 964 $ 964 $ 1,005 41 4.25% 0450 Social Security (1) 32 - $ - $ - - - 0500 PERS 15,800 13,721 18,072 $ 18,072 $ 19,836 1,764 9.76% 0600 Unemployment Insurance - 22 332 $ 332 $ 346 14 4.22% 0700 Workers Compensation 147 114 139 $ 139 $ 197 58 41.73% 0800 Health & Life Insurance 18,705 16,893 18,705 $ 18,705 $ 14,029 (4,676) (25.00%) 0900 Supplemental Retirement 2,650 1,459 1,411 $ 1,411 $ 2,558 1,147 81.29% Total Salaries & Benefits $ 100,553 $ 85,168 $ 106,120 $ 106,120 $ 107,262 $ 1,142 1.08% Maintenance and Operations 2021 Office Supplies - 92 250 250 250 - - 2022 Operating & Repair Supplies 5,082 2,541 11,100 18,450 1,200 (9,900) (89.19%) 2024 Small Tools/Minor Equipment 5,385 11,310 12,300 12,300 12,375 75 0.61% 2026 Computer Software 849 682 1,231 1,231 1,331 100 8.12% 4531 Professional Services 111,962 99,943 101,537 101,537 102,360 823 0.81% 4532 Communications 3,727 2,653 5,981 5,981 6,416 435 7.27% 4533 Travel & Transportation 144 132 - - - - - 4534 Advertising - 38 - - - 4535 Printing & Binding 486 501 500 500 500 - - 4536 Insurance 25,881 18,559 26,012 26,012 26,929 917 3.53% 4537 Utilities 73,668 78,515 84,677 79,677 80,765 (3,912) (4.62%) 4538 Repair & Maintenance 47,191 35,808 36,000 46,000 36,000 4539 Rentals - - - - - 4540 Equip. Fund Pmts. - - - - - 4541 Postage 10 27 100 100 100 4666 Books - - - - - 4667 Dues & Publications 4999 Contingency 5041 Miscellaneous - - - - - 5045 Depreciation 155,246 143,464 140,446 140,446 140,446 5047 Grants to Agencies Total Maint. and Operations $ 429,631 $ 394,265 $ 420,134 $ 432,484 $ 408,672 $ (11,462) (2.73%) Capital Outlay & Transfers 8061 Land - - - 8062 Buildings 84,000 84,000 37,000 (47,000) (55.95%) 8063 Improvements - - - 8064 Machinery & Equipment - - - - - - - 9090 Transfers Out 253,800 214,280 141,200 141,200 141,900 700 0.50% Total Capital Outlay and Transfers $ 253,800 $ 214,280 $ 225,200 $ 225,200 $ 178,900 $ (46,300) (20.56%) Department Total: $ 783,984 $ 693,713 $ 751,454 $ 763,804 $ 694,834 $ (56,620) (7.53%) 268 City of Kenai Fiscal Year 2027 Operating Budget Fund: 009 - Congregate Housing Fund Department: 462 - Congregate Housing 2022 Operating, Repair & Maintenance. Outdoor plants and 4538 Repair and Maintenance. Includes blinds/drapery supplies. cleaning, carpet cleaning, elevator maintenance, monitoring of fire alarm, plumbing and electrical repairs, painting of apartments on move out, window and gutter cleaning, seasonal maintenance of outdoor sprinklers, and AED warranty and maintenance. 2024 Small Tools/Minor Equipment. For the purchase of 3 9090 Transfers Out. Central administrative charges from washer/dryer stack combos, 3 stoves, 3 refrigerators, 4 General Fund, $41,900 and transfer to capital projects, garbage disposals, first aid kit & refills and computer $100,000. replacements. 4531 Professional Services. Facility management services, 8062 Buildings. Special Projects: Blind replacements 12 snow removal and sanding of parking area, and landscaping. apartments $12,000. Dry sprinkler heads $25,000. 269 This page intentionally left blank 270 MAJOR AND CAPITAL PROJECT FUNDS The following section provides a description of the FY2027 City of Kenai Major and Capital Project Budgets. The Major and Capital Program (MCP) represents the City's plan for major projects, infrastructure, and equipment funding. The MCP is reviewed each year to reflect changing priorities and to provide a framework for identifying project requirements, as well as monitor the impact of projects on operating budgets and for project scheduling and coordination. The complete City of Kenai Capital Improvement Plan for Fiscal Years 2027- 2031 can be viewed at: https://www.kenai.city/publicworks/page/capital-improvement-plan DEFINITION OF A CAPITAL PROJECT A capital project is in excess of $35,000 and has a useful life exceeding one year. Major maintenance projects on existing assets are included in the MCP provided they meet the preceding conditions. DEFINITION OF A MAJOR PROJECT A major project is in excess of $35,000 and does not result in construction, purchase or betterment of an existing asset. An example of a major project would be a comprehensive or master plan. SOURCES OF FUNDING A MCP has no means of generating revenue. Projects on the MCP receive funding from the operating funds, transfers from other funds and from grants. PRIORITIZATION The City Manager evaluates, modifies and reviews tentative project requests submitted by Department Heads before submitting to the City Council for their review and approval as part of the budget process. Items considered in the prioritization of projects include but are not limited to regulatory compliance, public safety, employee safety, and community goals. Requests are also considered based upon available funding and long-term plans. In total, this budget includes $21,370,271 in projects for FY2027. $9,191,620 of the requests are contingent upon grants and will be appropriated and authorized at the time grants are received. The remaining amount is funded with $2,920,100 in transfers from the associated operating funds and $9,258,551 from fund balance in the Capital Projects Funds. Remaining pages of this section provide a detailed description of adopted projects. City of Kenai Capital Budget Revenue, Expenditure and Fund Balance Summary Fiscal Years 2027 Through 2031 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Revenues: Projected Proposed Projected Projected Projected Projected Grants $ 27,917,168 $ 9,191,620 $ 58,240,750 $ 20,394,100 $ 9,376,250 $ 39,114,400 Transfer from Other Fund: General Fund 935,000 2,280,000 3,865,000 2,095,000 1,720,000 2,230,000 Airport Special Revenue Fund 1,595,404 380,100 874,150 1,765,500 2,396,250 - Water & Sewer Special Revenue Fund 1,250,000 710,000 1,700,000 1,310,000 400,000 950,000 Congregate Housing Enterprise Fund 100,000 100,000 100,000 100,000 Total Revenues 31,797,572 12,661,720 64,779,900 25,664,600 13,892,500 42,294,400 Expenditures: General Government - 541,418 800,000 - Parks, Recreation & Culture 77,669 1,355,318 1,025,000 3,850,000 5,300,000 Senior Citizen Programs 43,862 154,138 40,000 35,000 - 100,000 Public Works 815,228 8,562,314 2,400,000 1,360,000 1,720,000 1,070,000 Public Safety 224,219 410,282 35,000,000 - - - Senior Housing 219,783 358,363 100,000 100,000 - - Kenai Municipal Airport 25,866,463 5,032,478 20,914,900 12,009,600 11,772,500 29,474,400 Water & Sewer Utility 3,504,581 5,505,960 4,500,000 8,310,000 400,000 6,350,000 Total Expenditures 30,751,805 21,920,271 64,779,900 25,664,600 13,892,500 42,294,400 Transfer to Other Funds General Fund - - - - - - Airport Special Revenue Fund 1,644,376 Total Transfer to other Funds 1,644,376 Total Expenditures and transfers 32,396,181 21,920,271 64,779,900 25,664,600 13,892,500 42,294,400 Contribution to/(From) Fund Balance (598,609) (9,258,551) - - - - Beginning Fund Balance 9,918,804 9,258,551 Ending Fund Balance 9,320,195 - Assigned Fund Balance Park Improvement Capital Project Fund 268,261 Cemetery Improvement Capital Project Fund 269,149 Kenai Recreation Center Improvement Capital Project Fund 92,633 Kenai Senior Center Improvement Capital Project Fund 94,138 Personal Use Fishery Improvement Capital Project Fund 121,844 Kenai Public Safety Improvement Capital Project Fund 110,282 Congregate Housing Improvement Captial Project Fund 258,363 Kenai Multipurpose Facility Capital Project Fund 167,665 Library Improvement Capital Project Fund 81,296 Kenai City Hall Improvement Capital Project Fund 259,782 Airport Operations Facility Improvement Capital Project Fund 774,965 Airport Snow Removal Equipment Capital Project Fund 62,500 Airport Terminal Capital Project Fund 176,030 Airport Improvement Capital Project Fund 1,638,883 Water $ Sewer Improvement Capital Project Fund 2,342,820 Wastewater Treatment Improvement Capital Project Fund 1,053,140 Trail Construction Improvement Capital Project Fund 36,600 Municipal Roadway Improvement Capital Project Fund 1,370,694 MunicipalFacility Improvement Capital Project Fund 47,870 Total Assigned Fund Balance 9,226,915 Unassigned Fund Balance: Total Unassigned Fund Balance - Total Assigned & Unassigned Fund Balance $ 9,226,915 $ - $ - $ - $ - $ 271 City of Kenai Capital Budget Expenditure Summary of Current and Future Year Authorizations Fiscal Years 2026 Through 2030 Prior Year's Authorizations General Government Kenai City Hall Improvement Capital Project Fund Parks, Recreation & Culture: Park Improvement Capital Project Fund Cemetery Improvement Capital Project Fund Kenai Recreation Center Capital Project Fund Personal Use Fishery Improvement Capital Project Fund Municpal Facility Improvement Capital Project Fund Kenai Multipurpose Facility Capital Project Fund Library Improvement Capital Project Fund Trail Construction Capital Project Fund Public Works: Kenai Bluff Erosion Capital Project Fund Municipal Roadway Improvements Capital Project Fund Municipal Facility Improvement Capital Project Fund Public Safety: Kenai Public Safety Improvement Capital Project Fund Senior Housing - Congregate Housing Improvement Capital Project Fund Senior Citizen Programs - Kenai Senior Center Improvement Capital Project Fund Kenai Municipal Airport Airport Operations Facility Capital Project Fund Airport Snow Removal Equipment Capital Project Fund Airport Terminal Improvement Capital Project Fund Airport Improvement Capital Project Fund Water & Sewer Utility Water & Sewer Improvement Capital Project Fund Wastewater Treatment Facility Imp. Capital Project Fund Total Prior Year's Authorizations Current & Future Year Authorizations: General Government Kenai City Hall Improvement Capital Project Fund FAA Flight Service Station Capital Project Fund Parks, Recreation & Culture: Playground Improvement Capital Project Fund Park Improvement Capital Project Fund Cemetery Improvements Capital Project Fund Kenai Recreation Center Capital Project Fund Kenai Multipurpose Facility Capital Project Fund Library Improvement Capital Project Fund Senior Citizen Programs - Kenai Senior Center Improvement Capital Project Fund Public Works: Municipal Roadway Improvements Capital Project Fund Municipal Facility Improvements Capital Project Func Public Safety: Kenai Public Safety Improvement Capital Project Fund Senior Housing - Congregate Housing Improvement Capital Project Fund Kenai Municipal Airport Airport Operations Facility Capital Project Fund Airport Improvement Capital Project Fund Water & Sewer Utility Water & Sewer Improvement Capital Project Fund Waste Water Treatment Plant Capital Project Fund Total Current & Future Year Authorizations Total Expenditures FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Projected Projected $ - $ 291,418 $ $ $ $ 77,669 268,261 - 269,149 92,633 121,844 47,870 167,665 81,296 36,600 124,286 5,741,620 690,942 1,370,694 - 47,870 224,219 110,282 219,783 258,363 43,862 94,138 372,004 774,965 1,209,983 62,500 - 176,030 24,284,476 1,638,883 155,326 2,342,820 3,349,255 1,053,140 30,751,805 15,048,041 250,000 800,000 100,000 800,000 - 50,000 150,000 3,000,000 120,000 - - - 75,000 850,000 5,300,000 60,000 40,000 35,000 100,000 1,450,000 2,400,000 1,360,000 1,420,000 1,070,000 - - - 300,000 - 300,000 35,000,000 - - 100,000 100,000 100,000 - - - 100,000 900,000 - 2,380,100 20,914,900 11,909,600 10,872,500 29,474,400 2,010,000 4,100,000 310,000 400,000 6,350,000 100,000 400,000 8,000,000 - - 6,920,100 64,779,900 25,664,600 13,892,500 42,294,400 $ 30,751,805 $ 21,968,141 $ 64,779,900 $ 25,664,600 $ 13,892,500 $ 42,294,400 272 Revenues - Transfer from General Fund Total Revenues Expenditures - Current & Future Year Authorizations: Old Town play equipment replacement Total Expenditures Contribution to/(From) Fund Balance Beginning Fund Balance Ending Fund Balance Unassigned Fund Balance City of Kenai Fiscal Year 2027 Capital Budget Fund 106 - Playground Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Projected Projected 100,000 800,000 - - - 100,000 800,000 - - - 100,000 800,000 - - - 100,000 800,000 - - - 273 OLD TOWN PLAYGROUND RECONSTRUCTION Department: Parks and Recreation Total Project Cost: $900,000 Project Phased: Yes Project Type: Parks & Recreation Funding Sources): Grant / General Fund Potential Grant Identified: State Capital Project Submission and Federal Grants to Be Identified Operating Budget Impact: No Effect � Erv.• t.rp.... ` •' ae town Pan. w ewanecien Details: This project will replace aging equipment at the park on Peninsula Avenue, adjacent to the Fine Arts Center in Old Town, a popular destination for visitors and locals. Located near the Visitor's Center and several large housing complexes, the park serves as a key recreational space for families and children. Design phase in FY27 will review necessary amenities for the park with the goal of reducing construction costs and lowering future capital requests. 274 City of Kenai Fiscal Year 2027 Capital Budget Fund 116 - Park Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Proiected Projected Revenues: Grants $ 10,189 $ - $ - $ 2,400,000 $ $ Transfer from General Fund 120,000 50,000 150,000 600,000 Total Revenues 130,189 50,000 150,000 3,000,000 Expenditures: Prior Year's Authorizations - Park Area Hazardous Tree Removal - 50,000 - - Municipal Park Shelter #3 642 70,000 Parks & Rec Master Plan 37,873 43 - Beaver Creek Pavilion 50,000 Tractor Replacement - 73,960 - Softball field shelter/dugout replacement 28,965 24,258 - Slash Disposal Site 10,189 - - Total Prior Year's Authorizations 77,669 268,261 - Current & Future Year Authorizations: Street Light Decorations Replacement - 50,000 - - Relocation Parks & Rec - Design - - 150,000 - Relocation Parks & Rec - Construct - - - 3,000,000 - Beaver Creek Replace Pavilion - - - - Total Current & Future Year Authorizations - 50,000 150,000 3,000,000 Total Expenditures 77,669 318,261 150,000 3,000,000 Contribution to/(From) Fund Balance 52,520 (268,261) - - Beginning Fund Balance 215,741 268,261 - Ending Fund Balance 268,261 - - Assigned - Parks & Rec Master Plan (43) Park Area Hazardous Tree Removal (50,000) - - - Municipal Park Shelter #3 (70,000) - - - - Beaver Creek Pavilion (50,000) Tractor Replacement (73,960) - - - - - Softball field shelter/dugout replacement (24,258) - Unassigned Fund Balance $ - $ 275 STREET LIGHT DECORATIONS REPLACEMENT Department: Public Works Total Project Cost: $50,000 Project Phased: No Project Type: Beautification Funding Sources): General Fund Potential Grant Identified: None Operating Budget Impact: None Details: Project will replace decorations that are mounted to the street lights along the Kenai Spur Highway. Many decorations have been damaged and are in need of replacement. 276 City of Kenai Fiscal Year 2027 Capital Budget Fund 118 - Cemetery Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Projected Projected Revenues - Total Revenues - - - Expenditures: Prior Year's Authorizations - Kenai Cemetery Expansion Phase 1 - 4,118 - - Kenai Cemetery Expansion Phase 2 18,280 240,031 Kenai Cemetery Veteran Columbarium - 25,000 - - Total Prior Year's Authorizations 18,280 269,149 - - Expenditures - Current & Future Year Authorizations - Kenai Cemetery Veteran Columbarium - - - - Total Expenditures 18,280 269,149 - - Contribution to/(From) Fund Balance (18,280) (269,149) - - Beginning Fund Balance 287,429 269,149 - - Ending Fund Balance 269,149 - - - Assigned - Kenai Cemetery Expansion Phase 1 (4,118) Kenai Cemetery Expansion Phase 2 (240,031) Kenai Cemetery Veteran Columbarium (25,000) - - Unassigned Fund Balance $ - $ 277 City of Kenai Fiscal Year 2027 Capital Budget Fund 119 - Kenai Recreation Center Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Projected Projected Revenues - Grants $ - $ - $- Transfer from General Fund - 120,000 - - - - Total Revenues - 120,000 - - - Expenditures: Prior Year's Authorizations: Rec Center Locker Room Refurbishment - - - - - - Rec Center Floor Refinishing - 92,633 - - - - Total Prior Year's Authorizations - 92,633 - - - - Current & Future Year Authorizations - Rec Center Locker Room Refurbishment - 120,000 - - - Total Current & Future Year Authorizations - 120,000 - - - - Total Expenditures - 212,633 - - - - Transfer to - General Fund - - - - - - Total Expenditures and Transfers - 212,633 - - - - Contribution to/(From) Fund Balance - (92,633) - - - Beginning Fund Balance 92,633 92,633 - - - - Ending Fund Balance 92,633 - - - - - Assigned: Rec Center Improvements - Rec Center Floor Refinishing (92,633) Unassigned Fund Balance $ - $ 278 REC CENTER LOCKER ROOM REFURBISHMENT Department: Parks & Recreation Total Project Cost: $120,000 Project Phased: No Project Type: Building Improvement Funding Sources): General Fund Potential Grant Identified: None Operating Budget Impact: No Effect Details: Refurbishment of tile, plumbing fixtures and furnishings in the Rec Center locker rooms. 279 City of Kenai Fiscal Year 2027 Capital Budget Fund 120 - Kenai Senior Center Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Projected Projected Revenues: Transfer from General Fund $ - $ 60,000 $ 40,000 $ 35,000 $ - $ 100,000 Total Revenues - 60,000 40,000 35,000 - 100,000 Expenditures: Prior Year Authorizations - HVAC and DDC Controls Canopy Roof Repair Front entry modifications Total Prior Year Authorizations Current & Future Year Authorizations - Landscaping Phase I Landscaping Phase 11 Roof Replacement Design Door Project Canopy Roof Repair Total Current & Future Year Authorizations Total Expenditures Transfer to Other Funds Total Expenditures and Transfers Contribution to/(From) Fund Balance Beginning Fund Balance Ending Fund Balance Assigned: HVAC and DDC Controls Canopy Roof Repair Front entry modifications Unassigned Fund Balance - 48,000 - - - - 19,731 30,269 24,131 15,869 - - - - 43,862 94,138 - - - - - 40,000 - - - - - 35,000 - - - - - - 100,000 60,000 - 60,000 40,000 35,000 - 100,000 43,862 154,138 40,000 35,000 - 100,000 43,862 154,138 40,000 35,000 - 100,000 (43,862) (94,138) - - - - 138,000 94,138 - - - - 94,138 - - - - - (48,000) - - - - - (30,269) (15,869) - - - - - 280 SENIOR CENTER DOOR PROJECT Department: Senior Center Total Project Cost: $60,000 Project Phased: No Project Type: Building Improvement Funding Sources): Senior Citizens Fund Potential Grant Identified: None Operating Budget Impact: No Effect Details: This project remove and replace several doors in the Senior Center. Door replacements will remedy egress issues, replace deteriorated doors and improve wheelchair access through the facility. 281 Revenues: Grants Total Revenues Expenditures: Prior Year's Authorizations - Kenai Bluff Stabilization Project Total Expenditures Contribution to/(From) Fund Balance Beginning Fund Balance Ending Fund Balance Assigned - Unassigned Fund Balance City of Kenai Fiscal Year 2027 Capital Budget Fund 129 - Kenai Bluff Erosion Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Projected Projected $ 124,286 $ 5,741,620 $ - $ - $ - $ - 124,286 5,741,620 - - 124,286 5,741,620 - - - - 124,286 5,741,620 - - - - 282 City of Kenai Fiscal Year 2027 Capital Budget Fund 130 - Personal Use Fishery Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Projected Projected Revenues: Total Revenues Expenditures: Prior Year's Authorizations - Float replacement Current & Future Year Authorizations - Total Current & Future Year Authorizations Total Expenditures Contribution to/(From) Fund Balance Beginning Fund Balance Ending Fund Balance Assigned - Float replacement Unassigned Fund Balance 121,844 121,844 (121,844) 121,844 121,844 121,844 - (121,844) 283 City of Kenai Fiscal Year 2027 Capital Budget Fund 135 - Kenai Public Safety Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Projected Projected Revenues: Grants $ 113,119 $ 35,000,000 $ - $ - $ Transfer from General Fund (60,000) 300,000 - - - Total Revenues 53,119 300,000 35,000,000 - - Expenditures: Prior Year Authorizations Fire Department Community Wildfire Protect Fire Department Flooring Replacement Dispatch Radio Replacement Emergency Service Facility Assessment Police in -car camera replacement Total Prior Year Authorizations Current & Future Year Authorizations - Emergency Service Facility Total Current & Future Year Authorizations Total Expenditures Contribution to/(From) Fund Balance Beginning Fund Balance Ending Fund Balance Assigned - Fire Department Community Wildfire Protection Fire Department Flooring Replacement Dispatch Radio Replacement Emergency Service Facility Assessment Unassigned Fund Balance 113,119 - - - - 40,000 - - - 37,772 37,032 73,328 33,250 - - - - 224,219 110,282 - - 300,000 35,000,000 - - - 300,000 35,000,000 - - 224,219 410,282 35,000,000 - - (171,100) (110,282) - - - 281,382 110,282 - - 110,282 - - - (40,000) - - (37,032) (33,250) - - 284 City of Kenai Fiscal Year 2027 Capital Budget Fund 209 - Congregate Housing Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 Projected Proposed Projected Projected Revenues - Transfer From Congregate Housing Fund Total Revenues Expenditures: Prior Year's Authorizations: Boiler Replacement Project Elevator major maintenance Floors 2 & 3 hallway carpet Exterior door replacement Apartment kitchen and bathroom remodel Total Prior Year's Authorizations Current & Future Year Authorizations Apartment kitchen and bathroom remodel Hallway Wall Refinishing Total Current & Future Year Authorizations Total Expenditures Contribution to/(From) Fund Balance Beginning Fund Balance Ending Fund Balance Assigned: Elevator major maintenance Floors 2 & 3 hallway carpet Exterior door replacement Apartment kitchen and bathroom remodel Unassigned Fund Balance FY2030 FY2031 Projected Projected $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ - $ - 100,000 100,000 100,000 100,000 - 13,111 136,844 36,362 2,056 38,720 21,054 131,590 98,409 - - - - 219,783 258,363 - - - - 50,000 100,000 100,000 - 50,000 - - - - 100,000 100,000 100,000 - - 219,783 358,363 100,000 100,000 - - (119,783) (258,363) - - - - 378,146 258,363 - - - - 258,363 - - - - - (136,844) - - - - - (2,056) (21,054) (98,409) - - - - - 285 APARTMENT KITCHEN AND BATHROOM REMODEL Department: Senior Center Total Project Cost: $450,000 Project Phased: Yes Project Type: Building Improvement Funding Source(s): Congregate Housing Fund Potential Grant Identified: None Operating Budget Impact: No Effect Details: This project remodels the kitchen and bathrooms in three to six apartments each year at Vintage Pointe. The project would replace original (1993) tile flooring, cabinetry, countertops, and fixtures in kitchens and bathrooms to bring apartments into compliance with the Americans with Disabilities Act. This project is not eligible for low-income housing grants. HALLWAY WALL REFINISHING Department: Senior Center Total Project Cost: $50,000 Project Phased: No Project Type: Building Improvement Funding Source(s): Congregate Housing Fund Potential Grant Identified: None Operating Budget Impact: No Effect vim: - - -.... Details: This project would refinish hallways in Vintage Pointe. Wall paper is in poor condition and needs replaced and existing painting needs redone. 286 City of Kenai Fiscal Year 2027 Capital Budget Fund 217 - Kenai Multipurpose Facil Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Projected Projected Revenues - Grants Transfer from General Fund Total Revenues Expenditures: Prior Year Authorizations: Lighting Upgrade Exhaust fan installation Rust remediation Total Prior Year Authorizations Current & Future Year Authorizations: Multi -Purpose Facility Roof - Design Multi -Purpose Facility Roof - Construct Multi -Purpose Facility Refrigeration System Total Current & Future Year Authorizations Total Expenditures Contribution to/(From) Fund Balance Beginning Fund Balance Ending Fund Balance Assigned: Multi -Purpose Facility Lighting Exhaust fan installation Unassigned Fund Balance $ - $ - $ - $ 750,000 $ - - 75,000 100,000 - 75,000 850,000 - 99,892 - - 67,773 - - 167,665 - - - $ 4,240,000 - 1,060,000 5,300,000 - - 75,000 - - - 850,000 - - - - 5,300,000 - - 75,000 850,000 - 5,300,000 - 167,665 75,000 850,000 - 5,300,000 - (167,665) - - - - 167,665 167,665 - - - - 167,665 - - - - (99,892) - - - - (67,773) - - - - 287 City of Kenai Fiscal Year 2027 Capital Budget Fund 218 - Library Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Projected Projected Revenues: Total Revenues - - - Expenditures Prior Year's Authorizations - Sidewalk & Retaining Wall Repairs 31,284 - - HVAC DDC Controls 50,012 - - Total Prior Year's Authorizations 81,296 - - Current & Future Year Authorizations - Total Current & Future Year Authorizations - - - Total Expenditures 81,296 - - Contribution to/(From) Fund Balance - (81,296) - - Beginning Fund Balance 81,296 81,296 - - Ending Fund Balance 81,296 - - - Assigned - Sidewalk & Retaining Wall Repairs (31,284) - - - HVAC DDC Controls (50,012) - - - Unassigned Fund Balance $ - $ - $ 288 City of Kenai Fiscal Year 2027 Capital Budget Fund 228 - Kenai City Hall Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Projected Projected Revenues - Grants Transfer from General Fund Total Revenues Expenditures: Prior Year Authorizations - City Hall Improvements - Design HVAC air handler replacement Elevator major maintenance Total Prior Year Authorizations Current & Future Year Authorizations - Comprehensive Plan City Hall Improvements - Construct Total Current & Future Year Authorizations Total Expenditures Contribution to/(From) Fund Balance Beginning Fund Balance Ending Fund Balance Assigned - City Hall Improvements - Design Elevator major maintenance HVAC air handler replacement Unassigned Fund Balance $ - $ 50,000 $ - $- 75,000 200,000 800,000 - - - 75,000 250,000 800,000 43,364 31,636 - - - - 209,782 - - - - - 50,000 - - - - 43,364 291,418 - - - - - 250,000 - - - - - - 800,000 - - - - 250,000 800,000 - - - 43,364 541,418 800,000 - - - 31,636 (291,418) - - - - 259,782 291,418 - - - - 291,418 (31,636) (50,000) (209,782) 289 COMPREHENSIVE PLAN Department: Planning and Zoning Total Project Cost: $250,000 Project Phased: No Project Type: Planning Funding Sources): General Fund Potential Grant Identified: None Operating Budget Impact: None Details: The Kenai 2050 Comprehensive Plan will be a long-range planning tool and the foundational policy document that guides decisions on land use, transportation, housing, economic development, and public facilities. This project will involve a comprehensive update of the existing plan to reflect current community values and preferences, address new challenges, and ensure compliance with federal and state planning laws. The final plan will be a strategic roadmap for achieving a shared community vision for the next two decades. 290 City of Kenai Fiscal Year 2027 Capital Budget Fund 328 - Airport Operations Facili Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 Projected Proposed Projected Projected Revenues: Grants Transfer from Airport Fund Total Revenues Expenditures: Prior Year Authorizations: HVAC DDC controls Boiler Replacement Flight Services RTU Replacement Elevator Major Maintenance Total Prior Year Authorizations Current & Future Year Authorizations: EA/Design - ARFF Building Roof Replacement Construct - ARFF Building Roof Replacement Total Current & Future Year Authorizations Total Expenditures Transfers - Transfer to Airport Fund Total Expenditures & Transfers Contribution to/(From) Fund Balance Beginning Fund Balance Ending Fund Balance Assigned: HVAC DDC controls Boiler Replacement Flight Services RTU Replacement Elevator Major Maintenance Unassigned Fund Balance $ 233,259 $ - $ 400,000 - 633,259 - 4,025 62,219 367,979 262,746 - 400,000 50,000 _ 372,004 774,965 372,004 774,965 FY2030 Projected $ - $ 500,000 100,000 400,000 100,000 900,000 100,000 - - 900,000 100,000 900,000 100,000 900,000 372,004 774,965 100,000 900,000 261,255 (774,965) - - 513,710 774,965 - 774,965 - - (62,219) - - (262,746) - - (400,000) (50,000) - - 291 City of Kenai Fiscal Year 2027 Capital Budget Fund 332 - Airport Snow Removal Equi Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Projected Projected Revenues: Grants $ 1,134,449 $ - $ Transfer from Airport Fund - - - - - - Total Revenues 1,134,449 - - - - - Expenditures: Prior Year Authorizations - Broom Replacement - 62,500 Multi -purpose Broom/Blower Replacement 1,209,983 - - - - - Total Prior Year Authorizations 1,209,983 62,500 - - - - Total Expenditures 1,209,983 62,500 - - - - Transfers - Transfer to Airport Fund 1,644,376 - - - - Total Expenditures & Transfers 2,854,359 62,500 - - - - Contribution to/(From) Fund Balance (1,719,910) (62,500) - - - Beginning Fund Balance 1,782,410 62,500 - - - - Ending Fund Balance 62,500 - - - - Assigned - Multi -purpose Broom/Blower Replacement - - - - Broom Replacement (62,500) - - - - - Unassigned Fund Balance $ - $ - $ 292 City of Kenai Fiscal Year 2027 Capital Budget Fund 335 - Airport Terminal Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Projected Projected Revenues: Total Revenues - - - Expenditures: Prior Year's Authorizations - Terminal landscaping 1,030 - - Elevator major maintenance 50,000 - - - Surveillance cameras/Ops access controls 125,000 - - Total Prior Year's Authorizations 176,030 - - Total Expenditures 176,030 - - Contribution to/(From) Fund Balance (176,030) - - Beginning Fund Balance 176,030 176,030 - - Ending Fund Balance 176,030 - - - Assigned: Terminal landscaping (1,030) Elevator major maintenance (50,000) Surveillance Cameras/OPS Access Controls (125,000) - - - Unassigned Fund Balance $ - $ 293 City of Kenai Fiscal Year 2027 Capital Budget Fund 342 - Airport Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Protected Proposed Protected Protected Projected Protected Revenues: Grants $ 23,350,254 $ 2,000,000 $ 20,040,750 $ 10,244,100 $ 8,876,250 $ 29,474,400 Transfer from Airport Fund 1,195,404 380,100 874,150 1,665,500 1,996,250 - Total Revenues 24,545,658 2,380,100 20,914,900 11,909,600 10,872,500 29,474,400 Expenditures: Prior Year's Authorizations - Airport Master Plan Phase 1 255,796 9,359 - - - - Airport Master Plan Phase 2 946,450 15,178 - - Runway Rehabilitation Project 21,309,020 - - - DBE Program Update - 73 Airfield Drainage Improvement Project 223,731 - - - Airfield Marking Rehabilitaion 13,483 324,733 - - ARFF Vehicle - 62,500 - - Perimeter Fence Line Improvements 25,799 208,501 - - Taxiway A/B/C/D/E/K/L/M Rehabilitation 650,000 Animal Control Building Roof Replacement 31,461 368,539 Apron crack seal and seal coating 1,478,736 - - Total Prior Year's Authorizations 24,284,476 1,638,883 - Current & Future Year Authorizations: Runway Rehabilitation Project construction - - - - Runway Marking - 500,000 - 500,000 ARFF Vehicle - - - 1,425,000 Perimeter Fence Line Improvements 2,000,000 - - Airport Apron & Willow St Extension - - 465,500 6,982,500 - Terminal Road & Parking Lot 200,000 1,800,000 - - Float Basin TW Sierra w/Access Control & Lighting - 642,900 9,644,100 - TaxiwayA/B/C/D/E/K/L/M Rehabilitation 380,100 19,572,000 - - - Taxiway F/J & GA Apron Rehab - - - 1,595,600 23,933,300 Taxiway G/H/J & City Apron Rehab - - - 369,400 5,541,100 Total Current & Future Year Authorizations 2,380,100 20,914,900 11,909,600 10,872,500 29,474,400 Total Expenditures 24,284,476 4,018,983 20,914,900 11,909,600 10,872,500 29,474,400 Transfers - Transfer to Airport Fund - - - - - Total Expenditures & Tranfers 24,284,476 4,018,983 20,914,900 11,909,600 10,872,500 29,474,400 Contribution to/(From) Fund Balance 261,182 (1,638,883) - - - - Beginning Fund Balance 1,377,701 1,638,883 - - Ending Fund Balance 1,638,883 - - - Assigned: Airport Master Plan Phase 1 (9,359) - - - Airport Master Plan Phase 2 (15,178) - - - Runway Rehabilitation Project - - - - DBE Program Update (73) Airfield Marking Rehabilitaion (324,733) - - - ARFF Vehicle (62,500) Perimeter Fence (208,501) Taxiway A/B/C/D/E/K/L/M Rehabilitation (650,000) Animal Control Building Roof Replacement (368,539) Apron crack seal and seal coating - - - Unassigned Fund Balance $ $ 294 PERIMETER FENCE LINE IMPROVEMENTS Department: Airport Total Project Cost: $2,O00,000 Project Phased: Yes Project Type: Infrastructure Funding Sources): Grant / Airport Fund Potential Grant Identified: Federal Aviation Administration Operating Budget Impact: None Aft'i �• Vic:.. Details: This project will remove and replace existing chain link fencing around the airport's perimeter to prevent wildlife from accessing the airfield. Local funding has already been appropriated for this project and design work is ongoing. REHAB TW A/B/C/D/E/K/L/M Department: Airport Total Project Cost: $20,602,100 Project Phased: Yes Project Type: Infrastructure Funding Sources): Grant/ Airport Fund Potential Grant Identified: Federal Aviation Administration Operating Budget Impact: Increase Details: This project will rehabilitate runway taxiways A, B, C, D, E, K, L, and M to current standards. The work will involve milling the existing taxiways and placing new asphalt surfaces, markings, and lighting. Design funds of $650,000 were forward funded already for this project. This appropriation would be remaining match needed for construction. 295 City of Kenai Fiscal Year 2027 Capital Budget Fund 621 - Water & Sewer Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Projected Projected Revenues: Grants $ - $ 1,400,000 $ 2,800,000 $ - $ - $ 5,400,000 Transfer from Water & Sewer Fund 500,000 610,000 1,300,000 310,000 400,000 950,000 Total Revenues 500,000 2,010,000 4,100,000 310,000 400,000 6,350,000 Expenditures: Prior Year's Authorizations: SCADA system integration - 11,216 - - - - Hydrant mapping & installation Phase 1 33,405 41,595 - - - Manhole restoration - 40,000 - - - Lift station maintenance 465 860,106 - - - Trading Bay Sewer Installation 55,953 44,047 Disinfectant Generation Equipment Design - 100,000 GIS Mapping Improvements - 100,000 WTP Fencing Improvements 66 199,934 Water Treatment Facility Pump House Design 65,437 945,922 - - - - Total Prior Year's Authorizations 155,326 2,342,820 - - - - Current & Future Year Authorizations: Airport Res pump house improvements - Design - 250,000 - - - Airport Res pump house improvements - Construct - - 3,000,000 - - Broad Street Lift Station - - 250,000 - Disinfectant Generation Equipment construction - 500,000 - - Water Meter Equipment & Software - 100,000 - - - Water Main Line Improvements - 1,560,000 - - Florida Ave Water Main - Design - - 60,000 - - Florida Ave Water Main - Construct - - - 400,000 - Beaver Loop Water Main - - - - - 3,500,000 Evergreen St Water & Sewer Mains - - - - - 1,250,000 Kenai Spur - Spruce to Forest Water Main - - - - - 500,000 Marathon and Willow Water & Sewer Extension - - - - - 1,100,000 Utility Truck - 100,000 - - - - Vac Truck - - 600,000 - - - Total Current & Future Year Authorizations - 2,010,000 4,100,000 310,000 400,000 6,350,000 Total Expenditures 155,326 4,352,820 4,100,000 310,000 400,000 6,350,000 Contribution to/(From) Fund Balance 344,674 (2,342,820) - - - - Beginning Fund Balance 1,998,146 2,342,820 - - - - Ending Fund Balance 2,342,820 - - - - Assigned: SCADA system integration (11,216) - - - - Hydrant mapping & installation Phase 1 (41,595) - - - - Manhole restoration (40,000) - - - - Lift station maintenance (860,106) - - - - Trading Bay Sewer Installation (44,047) Disinfectant Generation Equipment Design (100,000) GIS Mapping Improvements (100,000) WTP Fencing Improvements (199,934) Water Treatment Facility Pump House Design (945,922) - - - - - Unassigned Fund Balance $ - $ 296 AIRPORT RESERVOIR PUMP HOUSE AND TANK IMPROVEMENTS Department: Public Works — Water & Sewer Total Project Cost: $3,250,000 Project Phased: Yes Project Type: Infrastructure Funding Sources): Water & Sewer Fund/Grant Potential Grant Identified: State Revolving Fund Operating Budget Impact: Decrease .7 YEAR: 2027 202 P, 2029 2030 2031A Details: This project will provide equipment replacements at the Airport Reservoir Pump House. This site has a three -million -gallon storage tank that provides the majority of the City's water during daytime hours. This work will utilize the existing building but modify pumps and controls to increase reliability and operations with our water plant. Project would include replacement of existing insulation on the reservoir, modifications to the tank water lines and modifications to reservoir connection to the water distribution system. WATER METER EQUIPMENT AND SOFTWARE Department: Public Works — Water & Sewer Total Project Cost: $100,000 Project Phased: No Project Type: Information Technology Funding Sources): Water & Sewer Fund Potential Grant Identified: None Operating Budget Impact: Decrease A C�l Smart Water Metering Details: This project will standardize a software solution for reading meters for the department for commercial facilities. This project will significantly reduce staff time in reading meters. 297 WATER MAIN LINE IMPROVEMENTS Department: Public Works — Water & Sewer Total Project Cost: $1,560,000 Project Phased: No Project Type: Infrastructure Funding Sources): Water & Sewer Fund Potential Grant Identified: State Revolving Fund Operating Budget Impact: No Effect Details: Funds will be used to improve and modify our water distribution system to improve water quality in various areas throughout the City. The main areas to be targeted include the installation of fire hydrants for improved flushing capability, water quality and fire coverage. Work would also include looping of water mains to reduce dead ends, poor water quality and water hammering issues. Project is currently shown as one large project with grant funding. If grant funding is unavailable, work would be phased over several years with smaller appropriations from Utility Fund to complete work. UTILITY TRUCK Department: Public Works — Water & Sewer Total Project Cost: $100,000 Project Phased: No Project Type: Equipment Funding Sources): Water & Sewer Fund Potential Grant Identified: None Operating Budget Impact: Decrease Details: Replacement of a truck for the Utility Department 298 City of Kenai Fiscal Year 2027 Capital Budget Fund 625 - Wastewater Treatment Faci Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Projected Projected Revenues: Grants $ 2,900,000 $ - $ 7,000,000 $ $ Transfer from Water & Sewer Fund 750,000 100,000 400,000 1,000,000 Transfer from Personal Use Fishery Fund - - - - Transfer From Congregate Housing Fund - - - - Total Revenues 3,650,000 100,000 400,000 8,000,000 Expenditures: Prior Year's Authorizations: Sludge Press replacement SCADA system integration Digester blower replacement and building Contact basin repairs Clarifier drainage repairs WWTP Ops Bldg Replacement Design Electronic Access Gate & Controls Total Prior Year Authorizations Current & Future Year Authorizations: WWTP Effluent Flow Monitoring/Auto Dosing WWTP Operations/Headworks Design/Cons. Influent pump station construction Total Current & Future Year Authorizations Total Expenditures Transfer to Water & Sewer Fund Total Expenditures & Transfers Contribution to/(From) Fund Balance Beginning Fund Balance Ending Fund Balance Assigned: Sludge Press replacement SCADA system integration Digester blower replacement and building Contact basin repairs Clarifier drainage repairs WWTP Ops Bldg Replacement Design Electronic Access Gate & Controls Unassigned Fund Balance 11,435 81,381 - 730 3,334,764 666,357 - 80,000 50,000 - 99,849 - - - - 3,056 74,823 3,349,255 1,053,140 - 100,000 - - - 400,000 8,000,000 100,000 400,000 8,000,000 3,349,255 1,153,140 400,000 8,000,000 3,349,255 1,153,140 400,000 8,000,000 300,745 (1,053,140) - - 752,395 1,053,140 1,053,140 - (81,381) (730) (666,357) (80,000) (50,000) (99,849) (74,823) 299 WASTEWATER TREATMENT PLANT EFFLUENT FLOW MONITORING / DOSING CONTROL Department: Public Works— WWTP Total Project Cost: $100,000 Project Phased: No Project Type: Process Control Funding Source(s): Water & Sewer Fund Potential Grant Identified: None Operating Budget Impact: Decrease Details: This project will provide equipment to provide more accurate dosing of chemicals in the treatment of wastewater effluent, which will result in savings in sodium hypochlorite and sodium bisulfate. Chemical feed will vary based on the flow of effluent leaving the plant. 300 City of Kenai Fiscal Year 2027 Capital Budget Fund 751 - Trail Construction Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Projected Projected Revenues: Total Revenues - Expenditures: Prior Year's Authorizations - Municipal Park trail construction 36,600 Total Priore Year Authorizations 36,600 Total Expenditures 36,600 Total Expenditures & Tranfers 36,600 Contribution to/(From) Fund Balance - (36,600) Beginning Fund Balance 36,600 36,600 Ending Fund Balance 36,600 - Assigned - Municipal Park Trail Construction (36,600) Unassigned Fund Balance $ - $ $ $ $ $ 301 City of Kenai Fiscal Year 2027 Capital Budget Fund 755 - Municipal Roadway Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Projected Projected Revenues: Grants $ 51,612 $ - $ 400,000 $ - $ - $ Transfer from General Fund 800,000 1,450,000 2,000,000 1,360,000 1,420,000 1,070,000 Total Revenues 851,612 1,450,000 2,400,000 1,360,000 1,420,000 1,070,000 Expenditures: Prior Year's Authorizations: Wildwood Drive rehabilitation 213,654 63,144 - - - - Bridge Access pedestrian pathway 247,991 - Inlet Wood storm drain improvements - 120,000 Aliak Storm Water and Paving 1,803 45,259 Street Lighting Improvements Construction 3,280 395,857 - Public Main Walk Replacement - ADA Warning - 40,000 - Street Condition Assessment 93,566 6,434 GIS Stormwater, Lighting, & Road Mapping Improve - 50,000 Downtown Asphalt Crack Sealing - 200,000 Road Improvements & Repair - 150,000 Parking Lot Sealcoating & Repair - 300,000 City Dock Float Replacment 51,612 Street Lighting Assessment 79,036 - Total Prior Year's Authorizations 690,942 1,370,694 Current & Future Year Authorizations - Willow & Airport Way Repaving Cons. - 1,200,000 - Lawton, Tinker, Swires Repaving Design/Cons. - 250,000 1,900,000 - - South Spruce Repaving Design/Cons. - - - 60,000 500,000 - Frontage Street Repaving Design/Cons. - - 120,000 1,000,000 First Avenue & Mainstreet Repaving Design - - - 70,000 Road Maintenance to be identified - - - 1,300,000 800,000 - Storm Water improvement to be identified - - 500,000 Total Current & Future Year Authorizations - 1,450,000 2,400,000 1,360,000 1,420,000 1,070,000 Total Expenditures 690,942 2,820,694 2,400,000 1,360,000 1,420,000 1,070,000 Transfers - Transfer to General Fund - - Total Expenditures & Transfers 690,942 2,820,694 2,400,000 1,360,000 1,420,000 1,070,000 Contribution to/(From) Fund Balance 160,670 (1,370,694) - - - - Beginning Fund Balance 1,210,024 1,370,694 Ending Fund Balance 1,370,694 - Assigned: Wildwood Drive rehabilitation (63,144) Bridge Access pedestrian pathway Inlet Wood storm drain improvements (120,000) Aliak Storm Water and Paving (45,259) Street Lighting Improvements Construction (395,857) Public Main Walk Replacement - ADA Warning (40,000) Street Condition Assessment (6,434) GIS Stormwater, Lighting, & Road Mapping Improve (50,000) Downtown Asphalt Crack Sealing (200,000) Road Improvements & Repair (150,000) Parking Lot Sealcoating & Repair (300,000) Street Lighting Assessment Unassigned Fund Balance $ - $ $ $ $ $ 302 WILLOW AND AIRPORT WAY REPAVING - CONSTRUCTION Department: Public Works Total Project Cost: $1,200,000 Project Phased: No Project Type: Infrastructure Funding Sources): General Fund Potential Grant Identified: None Operating Budget Impact: Decrease Details: Previously appropriated funds will be used for design in summer of 2026. Project will be designed and bid for construction in 2027. Seams in asphalt panels are unraveling and deteriorating beyond repair. Project will repave Airport Way and Willow Street from the Kenai Spur Highway to Granite Point Street. 303 Revenues - Transfer from General Fund Total Revenues Expenditures - Prior Year's Authorizations: Facility Assessment Phase II Total Prior Year's Authorizations Current & Future Year Authorizations - Senior Housing Feasibility Study City of Kenai Fiscal Year 2027 Capital Budget Fund 800 - Municipal Facility Improvement Capital Project Fund FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Projected Proposed Projected Projected Projected Projected $ - $ - $ $ $ 300,000 $ 300,000 Total Current & Future Year Authorizations Total Expenditures Contribution to/(From) Fund Balance Beginning Fund Balance Ending Fund Balance Assigned: Facility Assessment Phase II Unassigned Fund Balance - 47,870 47,870 300,000 - - 300,000 - 47,870 300,000 - (47,870) - 47,870 47,870 47,870 - (47,870) - 304 /_1»��1�7►V 1. City of Kenai Schedule of Rates, Charges, and Fees 2. Authorized Personnel Staffing Table 3. Permanent Position Organizational Chart 4. FY2027 Classified Salary Schedules • Permanent Positions • Temporary Positions 5. Chart of Accounts 6. Community Profile 7. Glossary of Key Terms LY OF KENAIJ SCHEDULE OF RATES, CHARGES AND FEES The City Manager shall establish and the City Council shall approve via resolution, the fees, rates, and charges for the billing and collections for support of City Services. The City reserves the right to change the rate schedule at any time. There is a 6% sales tax added to the total invoice (3% City and 3% Borough) for all fees, rates, and charges not exempted by the sales tax code of the Kenai Peninsula Borough and the City. Contents AirportFees...................................................................................................................................................................................................1 AnimalControl Fees..................................................................................................................................................................................4 CityClerk Fees.............................................................................................................................................................................................5 CemeteryFees.......................................................................................................................................................................................5 MemorialPark Fees.............................................................................................................................................................................5 MobileFood Vendor License...........................................................................................................................................................5 Oil& Gas Well.......................................................................................................................................................................................5 PublicRecords Requests...................................................................................................................................................................5 Recountof Votes - Application......................................................................................................................................................5 Transient Merchant and Peddler License...................................................................................................................................5 Vehiclefor Hire.....................................................................................................................................................................................5 FireDepartment Fees................................................................................................................................................................................6 LandManagement Fees..........................................................................................................................................................................6 LibraryFees...................................................................................................................................................................................................7 Parksand Recreation Fees......................................................................................................................................................................8 Planningand Zoning Fees......................................................................................................................................................................9 KenaiZoning Code..............................................................................................................................................................................9 Planningand Zoning Fees................................................................................................................................................................9 PoliceDepartment Fees...........................................................................................................................................................................9 Abandoned Property (Other than Motor Vehicles)................................................................................................................9 PoliceFees..............................................................................................................................................................................................9 PublicWorks and Capital Projects Fees...........................................................................................................................................10 BuildingPermit Fees.........................................................................................................................................................................10 CommercialStructures................................................................................................................................................................10 ResidentialStructures..................................................................................................................................................................10 CityDock Fees.....................................................................................................................................................................................11 Excavations in City Streets by Contractors or Utility Companies....................................................................................12 ProjectPermits....................................................................................................................................................................................12 PublicWorks & Capital Project Fees..........................................................................................................................................12 Streetsand Drainage........................................................................................................................................................................12 WaterFees............................................................................................................................................................................................12 SewerFees............................................................................................................................................................................................14 SeniorCenter.............................................................................................................................................................................................16 SeniorCenter Meals..........................................................................................................................................................................16 SeniorCenter Transportation........................................................................................................................................................16 SeniorCenter Rental.........................................................................................................................................................................16 VintagePointe Rents........................................................................................................................................................................16 305 Last approved by Council Resolution No. 2025-40 on June 4, 2025 KMC Section Fee Description Fee Amount Airport Fees 21.05.085 Fuel Flowage Fee Per Gallon Signatory $0.035 Non -signatory $0.07 APX - Airport Regulations Aircraft Parking Fees 06.05.07 (c) transient, under 4,000 lbs. 0 - 4 hrs. FREE 6.05.070 (c) transient, under 4,000 lbs. over 4 hrs. $5.00 6.05.070 (c) transient, 4,001 - 12,500 lbs. 0-12 hrs. $25.00 6.05.070 (c) transient, 4,001 - 12,500 lbs. 12-24 hrs. $50.00 6.05.070 (c) transient, 12,501 - 100,000 lbs. 0-12 hrs. $50.00 6.05.070 (c) transient, 12,501 - 100,000 lbs. 12-24 hrs. $100.00 6.05.070 (c) transient, 100,001 lbs. per day $250.00 Landing Fees 14.05.010 (a)(2) Signatory per thousand pounds $[2.07] 2.18 14.05.010 (b)(2) Non -signatory per thousand pounds $[2.691 2.83 exempt -- float planes, test landings due to mechanical or weather, government aircraft Tie -down Fees, General Aviation Paved Areas wheels, per month $45.00 wheels, w/electric per month $70.00 Gravel Area wheels/skis, per month $45.00 Float Plane Basin, Private daily $5.00 monthly $60.00 season -- May to October $250.00 Float Plane Basin, Commercial daily $10.00 monthly $75.00 season -- May to October $300.00 monthly w/electric $100.00 Terminal Building Rent -- Exclusive Space signatory - per square foot per year $[41.15] 43.21 signatory -- arrival hallway, departure hallway, passenger hold room & baggage claim area (per square foot per year) $[41.15] 43.21 Terminal Building Rent -- Joint Use Space signatory -- baggage make up area (per square foot per year) $[24.94] 26.19 signatory -- baggage break down area (per square foot per year) $[24.94] 26.19 non -signatory terminal rates 30% higher Vehicle Parking Fees at Terminal short term 0 - 2 hours FREE 24 hours $8.00 annual permit $800.00 annual parking permit w/electric $1,140.00 Vehicle Parking Fees Greater Than 114 Mile from Terminal Building (at GA Lot) calendar day $3.00 annual permit $420.00 306 Schedule of Rates, Charges and Fees - Airport Fees 1 1 Page KMC Section Fee Description Fee Amount Late Payment Vehicle Parking Fee late payment fee for unpaid parking after 30 days $50.00 Business Activity & Airport Access Permit mechanic access (per each) $50.00 fueling access (annual) $100.00 dispensing fee (per gallon) $0.02 water extraction access (annual) $100.00 non -tenant use of basin parking apron $75.00 float plane parking apron (annual) $25.00 Deposit/replacement proximity card fee (each) $100.00 Catering/mobile food service $50.00 Commercial Turn Fees turn fee (narrow body - (1 aisle) $200.00 turn fee (regional 50 - 99 seats) $150.00 turn fee (commuter - fewer than 50 seats) $100.00 Helicopter Landing Fees Per Landing $25.00 Conference Room Fees Airport Lessee's and sub Lessee's in good standing shall receive a 25% discount 0 - 2 hours $50.00 2 - 4 hours $100.00 4 - 8 hours $200.00 More than 8 hours (same day and no later than 10:00 pm) $300.00 Cleaning fee (if room is not cleaned) $100.00 Other Fees Taxi cab annual fee per vehicle $100.00 Terminal building key replacement (per key) $10.00 Non -signatory airline airport apron rental rate per square foot $1.40 Signatory, airline, terminal apron parking and GSE Storage space rent per square foot $0.64 Alaska Regional Fire Training Center Fees All Training Rooms include shared use of Breakroom, Tables and Chairs Training Props and Out Buildings pursuant to agreed fees and terms by Airport Manager approved by City Manager Room 104, 108, or 109 Airport Lessee's and sub Lessee's in good standing shall receive a 25% discount 0 - 4 hours $300.00 4 > 12 hours $500.00 Room 104, 108, or 109 - Non -Profit Entity 0 - 4 hours $250.00 4 > 12 hours $425.00 Rooms 108 and 109 combined Airport Lessee's and sub Lessee's in good standing shall receive a 25% discount 0 - 4 hours $450.00 4 > 12 hours $700.00 Rooms 108 and 109 combined - Non -Profit Entity 0 - 4 hours $400.00 307 Schedule of Rates, Charges and Fees - Airport Fees 2 1 Page KMC Section Fee Description Fee Amount 4 > 12 hours $600.00 Fire Training Center Rental Items LCD Projector and Screen $50.00 Podium $50.00 21.10.090 (a) Airport Reserve Land Annual Lease Rates Legal Description of Property KPB Parcel ID No. FY24 Annual Rent Lot 2, Block 2, FBO Subdivision 04336004 $7,596.05 NW 1/4 NW 1/4 Sec 33 lying W of Marathon Rd. excluding Baron Park 2007 Replat 04501056 Subject to Appraisal Lot 8, Block 2, Cook Inlet Industrial Air Park 04322008 $18,133.53 Lot 3, Block 5, Cook Inlet Industrial Air Park 04322020 $6,890.74 Lot 4, Block 5, Cook Inlet Industrial Air Park 04322021 $6,942.55 Lot 1, Block 2, FBO Subdivision 04336003 $7,907.26 Lot 1, FBO Subdivision No. 6 04336034 $14,802.88 Lot 3, FBO Subdivision No. 6 04336036 $20,970.75 Tract All, Baron Park 2007 Replat 04501031 $42,309.45 Tract C-1, Gusty Subd. No. 7 04327034 $4,105.33 Portion of W1/2 of Sec. 28 & SE1/4, Sec. 29, T6N, R11 W 04101021 Subject to Appraisal Portion of SW1/4, Sec. 29, T6N, R11W Excluding Airport Float Basin Replat 04101022 Subject to Appraisal Portion of Tract A, Kenai Airport Float Plane Basin Replat 04318043 Subject to Appraisal Tract A, FBO Subdivision 04336001 Subject to Appraisal Portion of E1/2 NE1/4 & SW1/4 NE1/4, Sec. 29, T6N, R11 W 04101004 Subject to Appraisal Portion of Tract B, FBO Subdivision No. 10 04318045 Subject to Appraisal Tract A, Gusty Subdivision No. 3 04327021 Subject to Appraisal Lot 1, Block 3, Gusty Subdivision No.4 04327030 Subject to Appraisal Lot 2, Block 3, Gusty Subdivision No. 4 04327031 Subject to Appraisal Lot 3, Block 3, Gusty Subdivision No. 4 04327032 Subject to Appraisal Tract C-1, Gusty Subdivision No. 7 04327034 Tract B, Gusty Subdivision No. 6 Amended 04327035 Subject to Appraisal Portion of T 5N R 11 W Sec 5 & 6 Seward Meridian Kn Ptns of Sec 5 & 6 Lying NE of Kenai Spur Hwy & E of Birch Dr & NW of Main St Excl USS 4969 & Gusty Sub K1700 & Gusty Sub Addn #1 Amd 84- 183 & Gusty Sub #3 84-237 & Gusty Sub #4 86-76 & Gusty Sub #5 87-15 & Gusty Sub #7 89-5 & Kenai Cemetery Expansion Sub 04327036 Subject to Appraisal Lot 1, FBO Subdivision No. 7 04336037 Subject to Appraisal 308 Schedule of Rates, Charges and Fees - Airport Fees 3 1 Page KMC Section Fee Description Animal Control Fees 3.05.100 (a) Kennel Facility - Non-refundable application fee Kennel Facility - Approved application fee Livestock - Non-refundable application fee 3.05.100 (a)(5) Insertion of Microchip 3.05.100 (b) Dog License - Sterilized Dog Dog License - Non -sterilized Dog Lost License Replacement 3.05.100 (c) (1) First Impoundment within 12 months- Dog First Impoundment within 12 months- Cat 3.05.100 (c) (2) Second Impoundment within 12 months- Dog Second Impoundment within 12 months- Cat 3.05.100 (c) (3) Subsequent Impoundment within 12 months- Dog Subsequent Impoundment within 12 months- Cat Facility Use Fee Per Day 3.05.100 (c) (5) Dangerous Animal Impoundment 3.25.060 (c) Veterinary Services - Includes spaying, neutering, vaccinations, and other veterinary services. actual cost Veterinary services transfer fee - per mile (Actual mileage excluding the first four miles of travel) City of Kenai Resident N/A Animal Waiver Fee Fee Amount $26.00 $76.00 $26.00 $15.30 $10.20 $30.60 $2.04 $51.00 $15.30 $71.40 $30.60 $102.00 $40.80 $35.70 $102.00 $ 2.04 $20.40 Note: Pursuant to the contract for the City to provide animal shelter services to the City of Soldotna, Soldotna City residents shall pay City of Kenai resident fees for animal waivers. Non -City Resident N/A Animal Waiver Fee $40.80 N/A Adoption Fee $20.40 N/A Rabies Vaccination Clinic (per animal vaccinated) $10.20 Note: All Animal Control Fees are subject to a 2% discount for payment by means other than credit card. 309 Schedule of Rates, Charges and Fees - Animal Control Fees 4 1 Page KMC Section Fee Description Fee Amount City Clerk Fees Cemetery Fees (All Cemetery Fees are Exempt from Sales Tax) APX - 1 Title 24 - Cemetery Regulations 24.15.020 Standard Plot $1,000.00 Veteran Plot $750.00 Infant Plot $150.00 Cremains $300.00 Columbarium Niche $1,000.00 Veterans Columbarium Niche (up to two standard urns) $750.00 Columbarium Niche - opening and/ closing fee for reasons other than inurnment $100.00 Marker/Headstone Deposit $400.00 (applies to Cemetery Plots and Columbarium Niches) Cemetery Gazebo Marker Fees Actual Cost Memorial Park Fees (All Memorial Park Fees are Exempt from Sales Tax) Tree (includes transportation/planting, soil, edging, weed block, and a one-year guarantee on planting.) $265.00 Shrub (includes transportation/planting, soil, edging, weed block, and a one-year guarantee on planting.) $165.00 Markers: Actual Cost Memorial Park Rock (Actual cost for ground preparation, transportation placement, etc. and plaque borne by requestor.) Actual Cost Logo or emblem Additional Fee Mobile Food Vendor License 5.25.050 Annual Mobile Food Vendor License $50.00 Oil & Gas Well 5.35.050 Oil & Gas Well Application Fee $500.00 Oil & Gas Well Processing Fee $100.00 Public Records Requests 10.40.090(a) First 10 copies are free, more than 10 copies per copy $0.25 10.40.090(d) Electronic Services Actual 10.40.090(b) Certified Copy Fee $10.00 10.40.090(c) Production fee will be calculated for work over 5 hours Actual Recount of Votes - Application 6.45.010 Recount of Votes Application Fee $100.00 Transient Merchant and Peddler License 5.30.040 Annual Transient Merchant and Peddler License $25.00 Vehicle for Hire 20.05.050 (a) Annual Vehicle for Hire Permit - Permit and First Vehicle $250.00 20.05.050 (a) Annual Vehicle for Hire Permit - Additional Vehicle $100.00 (Additional Vehicle may be added at any time during the year.) 310 Schedule of Rates, Charges and Fees - City Clerk Fees 5 1 Page KMC Section Fee Description Fee Amount Fire Department Fees BLS Non -emergency $550.00 BLS Emergency $675.00 ALS I (advanced life support) $800.00 ALS II $[975.00] 1,034.00 Mileage per mile $[14.00] 14.20 Land Manaaement Fees 21.10.040 (a) and [LAND] Lease Application Fee $[100.00] 150.00 22.05.025 (a) 21.10.070 (a) and [LAND] Lease Amendment Application Fee $[100.00] 150.00 22.05.045 (a) 21.10.070 (a) and [Land] Lease Extension Application Fee $[100.001 150.00 22.05.045 (a) 21.10.070 (a) and [LAND] Lease Renewal Application Fee $[100.001 150.00 22.05.045 (a) Consent to Sublease Application Fee $50.00 22.05.045 (a) [LAND] Lease Assignment Application Fee $100.00 22.05.100 (a) Competitive Land Purchase Application Fee $100.00 22.05.100 (a) Non -Competitive Land Lease or Purchase Fee $100.00 Special Use Permit Application Fee $100.00 [22.05.016(A) TIDELAND FILING FEE $10.001 [22.05.016(A) TIDELAND LEASE FILING FEE $100.001 22.10.010 Tideland lease for shore fisheries - per year $300.00 21.10.130 and Recording Fee - 1 Page $50.00 22.05.080 21.10.130 and Recording Fee - Additional Cost Per Page $5.00 22.05.080 311 Schedule of Rates, Charges and Fees - Fire Department and Land Management Fees 6 1 Page KMC Section Fee Description Fee Amount Library Fees APX - Library Regulations and Policies 1. Default fees for lost, stolen or damaged materials when no retail value is available. a. Adult book (hardcover) $33.00 b. Adult large print $40.00 c. Adult audiobook $50.00 d. Youth board book $10.00 e. Youth book (hardcover) or picture book $25.00 f. Youth audiobook $25.00 g. Adult/youth trade paperbacks $15.00 h. Adult/youth mass market paperbacks $10.00 i. Magazines $5.00 j. Video/DVD/music CD $30.00 k. DVD set $50.00 I. Interlibrary loan item (fee or actual cost charged by lender) $30.00 m. Juvenile kits/Adult kits/Playaway launchpads $150.00 n. Microfilm reel or microfiche $35.00 o. Chromebook kit $370.00 p. Laptop $800.00 2. Proctoring per test $25.00 3. Replacement Costs Costs a. processing fee for all lost/damaged items $5.00 b. processing labels (e.g., [SPOKE] spine labels, barcodes, etc. $1.00 c. RFID Tag $1.00 d. replacement library card $1.00 e. book covers $[1.001 2.00 f. Tonie, Yoto, music DC or single disc DVD case $2.00 g. multidisc DVD or audiobook case $5.00 h. power cord Chromebook/Laptop $20.00 i. power cord Launchpads, Tonies, etc. 10.00 4. Damages a. defaced or torn pages per page $2.00 5. Photocopying and Printing a. Black & white prints or copies (per single -sided page) $0.25 b. Color - photocopies only (per single -sided page) $0.50 312 Schedule of Rates, Charges and Fees - Library Fees 7 1 Page KMC Section Fee Description Fee Amount Parks and Recreation Fees Multipurpose Facility hourly winter rate (reservation) $[165.00] 175.00 hourly summer rate - Only available when the ice is out (concrete floors, limited availability) $25.00 Kenai Recreation Center Weights/Cardio/Sauna - includes weight/cardio room, shower, sauna and gym. (When using the weight room, must be 17 or older unless accompanied by guardian) Day Pass: Adults* $5.00 Day Pass: College Students, Veterans & Seniors (55 and older)* $2.50 [High School Students] 18 years old and younger FREE 10 visit punch card: Adults* $40.00 10 visit punch card: College Students, Veterans & Seniors (55 and older)* $20.00 Monthly Pass: Adults* $50.00 Monthly Pass: College Student, Veterans & Senior (55 and older)* $25.00 [CITY LEAGUE BASKETBALL (PER TEAM) $325.001 City League Player Participation Fee* $[50.001 100.00 Annual Locker Rental $120.00 6-Month Locker Rental $60.00 Racquetball & Wallyball Court Rentals - per hour and includes showers for participants. Adult Racquetball or Wallyball* $15.00 Racquetball or Wallyball Punch Card (10 hours all ages)* $120.00 Facility Rental - per hour Gym* $50.00 1/2 Gym* $25.00 Parks/Gazebos/Gardens Picnic Shelter [8:00] 9.00 am - 3:00 pm $20.00 4:00 pm - [11:00] 10:00 pm $20.00 Gazebo [8:00] 9.00 am - 3:00 pm $25.00 4:00 pm - [11:001 10:00 pm $25.00 Community Garden Plot (each) $20.00 Adopt -A -Bench (Maintenance included.) Bench, freight, and installation at actual cost. Actual Cost Personal Use Fishery Personal Use Fishery Day Use Parking 5 am to Midnight (vehicle or up to two atv's)* $22.05 Personal Use Fishery Overnight Parking Before noon of the first day to noon of the second day (vehicle or up to two atv's and one tent)* $60.64 After noon of the first day to noon of the second day (vehicle or up to two atv's and one tent)* $49.61 Personal Use Fishery Camping (one tent)* $27.56 Personal Use Fishery Vehicle Drop Off (vehicle or up to two atv's per day)* $11.03 313 Schedule of Rates, Charges and Fees - Planning & Zoning Fees & Police Department Fees 8 1 Page KMC Section Fee Description Fee Amount *All Parks and Rec fees with asterisk include 3 percent City tax and 3 percent ,borough tax Planning and Zoning Fees Kenai Zoning Code 14.20.150(b)(6) Conditional Use Permit Fee $250.00 14.20.151 Surface Extraction Conditional Use Permit Application Fee $425.00 14.20.180(b)(1)(C) Variance Permit Non-refundable Deposit/Advertising Fee $250.00 14.20.185(c) Encroachment Application Fee $250.00 14.20.240 Mobile Home Building Permit $100.00 14.20.270(b)(4) Zoning Amendment Request Non-refundable Deposit/Advertising Fee $250.00 14.20.290(b)(6) Board of Adjustment Appeal filing and records preparation Fee $[100.001 150.00 Plannina and Zonina Fees Sign Permits home occupation $5.00 electrical signs $25.00 all others $15.00 Maps 11 x 17 FREE 17x22or22x34 $15.00 34x44or28x40 $25.00 Copies per page $0.25 Police Department Fees Abandoned ProDerty (Other than Motor Vehicles 15.05.030 (b) and Impoundment and Storage - Contractor Actual Cost 15.05.070 15.05.030 (b) and Impoundment - City Employee $5.00 15.05.070 15.05.030 (b) and Storage by City - per day $1.00 15.05.070 15.05.070 Towing Charge - Car $10.00 15.05.070 Towing Charge - Truck $13.00 15.05.070 Storage Fee - Vehicle (per day) $1.00 15.05.070 Abandoned Property Certificate $3.00 15.05.070 Clerk's Endorsement on Certificates $5.00 Police Fees Report Copies (per page) $0.50 CD/DVD with Digital Media (per) $ 25.00 Duplication of other media Actual Cost Reproduction Cost (for time spent in excess of 5 hours) Actual Cost 314 Schedule of Rates, Charges and Fees - Public Works and Capital Project Fees 9 1 Page KMC Section Fee Description Public Works and Capital Projects Fees Buildina Permit Fees Fee Amount 4.05.030 Application Fee — Payment due at submittal of permit application package. Fee will be deducted from total permit cost for the Commercial or Residential Structure and any overpayment refunded. $500.00 Inspection outside of normal business hours - per hour (two-hour minimum charge) $125.00 Inspection for which no fee is specifically indicated - per hour (two-hour minimum charge) $75.00 Additional plan review required by changes, additions or revisions to plans - per hour (one -hour minimum charge) $75.00 Commercial Structures 4.05.030 Valuation $1.00 - $500.00 $23.50 Valuation $501.00 - $2,000.00 - Base $23.50 Valuation $501.00 - $2,000.00 - Each additional $100.00, or fraction thereof, over $500.00 including $2,000.00 $3.05 Valuation $2,001.00 - $25,000.00 - Base $69.25 Valuation $2,001.00 - $25,000.00 - Each additional $1,000.00, or fraction thereof, over $2,000.00 including $25,000.00 $14.00 Valuation $25,001.00 - $50,000.00 - Base $391.25 Valuation $25,001.00 - $50,000.00 - Each additional $1,000.00, or fraction thereof, over $25,000.00 including $50,000.00 $10.10 Valuation $50,001.00 - $100,000.00 - Base $643.75 Valuation $50,001.00 - $100,000.00 - Each additional $1,000.00, or fraction thereof, over $50,000.00 including $100,000.00 $7.00 Valuation $100,001.00 - $500,000.00 - Base $993.75 Valuation $100,001.00 - $500,000.00 - Each additional $1,000.00, or fraction thereof, over $100,000.00 including $500,000.00 $5.60 Valuation $500,001.00 - $1,000,000.00 - Base $3,233.75 Valuation $500,001.00 - $1,000,000.00 - Each additional $1,000.00, or fraction thereof, over $500,000.00 including $1,000,000.00 $4.75 Valuation $1,000,001.00 and up - Base $5,608.75 Valuation $1,000,001.00 - and up - Each additional $1,000.00, or fraction thereof, over $1,000,000.00 $3.65 Plan review fees shall be 65% of the Building Permit Fee Calculation' [INSPECTION OUTSIDE OF NORMAL BUSINESS HOURS - PER HOUR (TWO-HOUR MINIMUM CHARGE) $47.00 INSPECTION FOR WHICH NO FEE IS SPECIFICALLY INDICATED - PER HOUR (TWO- HOUR MINIMUM CHARGE) $47.00 ADDITIONAL PLAN REVIEW REQUIRED BY CHANGES, ADDITIONS OR REVISIONS TO PLANS - PER HOUR (ONE -HOUR MINIMUM CHARGE) $47.001 Outside consultants for plan checking and inspections, or both Actual Cost 'Plan Review fees may be waived or reduced for successive identical structures submitted together by completing a Plan Review Waiver form. The Public Works Director has sole discretion to reduce or waive plan review fees based on resources required by City for plan review of successive identical structures. Residential Structures 4.05.030 Valuation $1.00 - $500.00 $17.63 315 Schedule of Rates, Charges and Fees - Public Works and Capital Project Fees 10 1 Page KMC Section Fee Description Fee Amount Valuation $501.00 - $2,000.00 - Base $17.63 Valuation $501.00 - $2,000.00 - Each additional $100.00, or fraction thereof, over $500.00 including $2,000.00 $2.29 Valuation $2,001.00 - $25,000.00 - Base $51.94 Valuation $2,001.00 - $25,000.00 - Each additional $1,000.00, or fraction thereof, over $2,000.00 including $25,000.00 $10.50 Valuation $25,001.00 - $50,000.00 - Base $293.44 Valuation $25,001.00 - $50,000.00 - Each additional $1,000.00, or fraction thereof, over $25,000.00 including $50,000.00 $7.58 Valuation $50,001.00 - $100,000.00 - Base $482.81 Valuation $50,001.00 - $100,000.00 - Each additional $1,000.00, or fraction thereof, over $50,000.00 including $100,000.00 $5.25 Valuation $100,001.00 - $500,000.00 - Base $745.31 Residential Structures - Continued City Dock Fees Valuation $100,001.00 - $500,000.00 - Each additional $1,000.00, or fraction thereof, over $100,000.00 including $500,000.00 $4.20 Valuation $500,001.00 - $1,000,000.00 - Base $2,425.31 Valuation $500,001.00 - $1,000,000.00 - Each additional $1,000.00, or fraction thereof, over $500,000.00 including $1,000,000.00 $3.56 Valuation $1,000,001.00 and up - Base $4,206.56 Valuation $1,000,001.00 - and up - Each additional $1,000.00, or fraction thereof, over $1,000,000.00 $2.74 [INSPECTION OUTSIDE OF NORMAL BUSINESS HOURS - PER HOUR (TWO-HOUR MINIMUM CHARGE) $47.00 INSPECTION FOR WHICH NO FEE IS SPECIFICALLY INDICATED - PER HOUR (TWO- HOUR MINIMUM CHARGE) $47.00 ADDITIONAL PLAN REVIEW REQUIRED BY CHANGES, ADDITIONS OR REVISIONS TO PLANS - PER HOUR (ONE -HOUR MINIMUM CHARGE) $47.001 Remodels, Alterations, and/or Renovations (per square foot) $0.80 Per Trade Permit (Alterations, Additions, and/or Repairs) $100.00 Mobile Home Placement Permit $100.00 Outside consultants for plan checking and inspections, or both Actual Cost Boat Launch Ramp - Includes Parking with Trailer Excluding days of the personal use dip net fishery Non -Commercial Users NO FEES Commercial Users First 10 minutes on ramps or floats $25.00 Each minute over 10 on ramps or floats $ 1/minute Seasonal Boat Launch Pass per Commercial Vessel $150.00 Personal Use Fishery Days - All Users First 10 minutes on ramps or floats $38.59 Each minute over 10 on ramps or floats $ 1/minute Parking Only Excluding days of the personal use dip net fishery Non -Commercial Users NO FEES Commercial Users Per day (Vehicle with trailer must pay launch fee) $15.00 316 Schedule of Rates, Charges and Fees - Public Works and Capital Project Fees 11 1 Page KMC Section Fee Description Fee Amount Personal Use Fishery Days - All Users Per day (Vehicle with trailer must pay launch fee) $22.05 Vehicle Drop Offs Personal Use Fishery Days - All Users (vehicle per day) $11.03 Forklift and/or crane with operator, mobilization & travel time to be charged (2-hour minimum) - per hour $100.00 Excavations in City Streets by Contractors or Utility Companies 18.20.050 Excavation License Fee - per year $25.00 Project Permits 18.25.030 Inspection Fee $10.00 Public Works & Capital Project Fees Bid Documents and Project Plans Actual Cost Streets and Drainage 18.10.020 [Street Building] Driveway Permit $[10.001 25.00 Water Fees APX - Public Utility Regulations and Rates Water & Sewer service deposit - refundable after two years of timely payments $100.00 1. Schedule A - General Domestic Service Rates (non -metered) one or two family residence, per family unit $[42.48] 44.18 single or double unit apartment, per family unit $[42.481 44.18 apartment, 3 or more units on a single parcel, per family unit [SINGLE BILL ASSUMED BY OWNER $31.98 SEPARATE BILL $42.481 44.18 trailers, one or two on single lot, each $[42.48] 44.18 trailer, 3 or more on single lot [SINGLE BILLING $31.98 SEPARATE BILLING $42.481 44.18 boarding houses, per available room $[11.30] 11.75 2. Schedule B - Commercial service (non -metered) Truck Fill Station Permit $200.00 demand 1.00 inch service $[43.08] 44.80 1.25 inch service $[65.611 68.23 1.50 inch service $[108.67] 113.02 2.00 inch service $[164.02] 170.58 3.00 inch service $[246.05] 255.89 larger than 3.00 inch service $[369.041 383.80 use charge bakery $[125.061 130.06 bath house, tub or shower, each $[28.751 29.90 bottling works, per bottling machine $[988.231 1,027.76 bowling alleys, amusement parks, doctor $[118.89] 123.65 car lot, with car wash facilities $[59.471 61.85 317 Schedule of Rates, Charges and Fees - Public Works and Capital Project Fees 12 1 Page KMC Section Fee Description car wash, automatic, per facility car wash, self-service, per stall churches, lodges, clubs, banquet rooms, per seat cleaners and commercial laundries, per facility dairies, installation of water meter required day care center/preschool, per child, maximum capacity doctor and dentist offices, per room or chair garage, service stations recreational vehicle dump facility (May - September) hangar, airplane repair with washing facilities hospital, per bed hotel, motel, resort, per room laundry, self-service, per machine markets, meat office building single bill assumed by owner, per business office building, tenants are billed, per business restaurants, cafes, taverns, bars, per seat public office building, per restroom recreation facility, per restroom, sauna, shower rv/camper park, per space schools, per seating capacity shopping center shops, beauty, per station or chair shops, misc. (includes barber), per shop sleeping room, per room studio, photo or photo lab supermarket theater, indoor, per seat theater, outdoor, per seat taverns, lounges, bars (without kitchens), per seat xray or lab office 3. Schedule C - Industrial Service (non -metered) concrete mixing plant concrete products confectioner greenhouse, commercial ice cream plant cold storage plant or locker hydrant use (per day) 4. Schedule D - Fire Protection S. Schedule E - Metered Service Fee Amount $533.04 $[79.941 83.14 $ [0.461 0.48 $[342.401 356.10 $[1.711 1.78 $ [25.621 26.64 $[51.26] 53.31 $[59.471 61.85 $[51.26] 53.31 $[59.451 61.83 $[33.85] 35.20 $[26.641 27.71 $[48.22] 50.15 $[65.61] 68.23 $[57.38] 59.68 $[65.61] 68.23 $[3.691 3.84 $[14.78] 15.37 $[28.751 29.90 $[28.751 29.90 $[1.711 1.78 $[29.761 30.95 $[29.761 30.95 $[29.761 30.95 $[11.30] 11.75 $[140.45] 146.07 $[337.281 350.77 $[0.201 0.21 $[0.201 0.21 $[3.521 3.66 $ [84.071 87.43 $[541.24] 562.89 $[270.651 281.48 $[180.40] 187.62 $[180.40] 187.62 $[270.651 281.48 $[127.13] 132.22 $[110.06] 114.46 general usage, per thousand gallons $[4.101 4.26 hydrant use, per thousand gallons $[6.171 6.42 minimum monthly charge, general usage $[61.541 64.00 6. Schedule F - [WATER CONNECTION PERMIT] Other Fee 318 Schedule of Rates, Charges and Fees - Public Works and Capital Project Fees 13 1 Page KMC Section Fee Description Water Connection Permit Fee Hydrant Permit deposit Unauthorized shut-off or turn -on of water service or water valve per valve/service Service shut-off or turn -on - during normal business hours Service shut-off or turn -on - outside normal business hours & holidays New construction service turn -on and shut off for system testing New construction service turn -on for occupancy [SERVICE VALVE & KEY BOX INSTALLATION BY CITY KEY BOX LOCATION Fee Amount $ [255.131 300.00 $200.00 $250.00 $ 50.00 $ [150.001 250.00 $0.00 $0.00 ACTUAL COST ACTUAL COST] Note: All Water Fees are subject to a 2% discount for payment by means other than credit card. Sewer Fees APX - Public Utility Regulations and Rates 1. Schedule A - General Domestic Service Rates (non -metered) one or two family residence, per family unit $[60.741 63.17 single or double unit apartment, per family unit $[60.741 63.17 apartment, 3 or more units on a single parcel, per family unit [SINGLE BILL ASSUMED BY OWNER $45.67 SEPARATE BILL $60.741 63.17 trailers, one or two on single lot, each $[60.741 63.17 trailer, 3 or more on single lot [SINGLE BILLING $45.67 SEPARATE BILLING $60.741 63.17 boarding houses, per available room $[16.40] 17.06 2. Schedule B - Commercial service (non -metered) demand 1.00 inch service $[61.311 63.76 1.25 inch service $[90.91] 94.55 1.50 inch service $[154.36] 160.53 2.00 inch service $[230.45] 239.67 3.00 inch service $[348.881 362.84 larger than 3.00 inch service $[524.37] 545.34 use charge bakery $[177.581 184.68 bath house, tub or shower, each $[40.151 41.76 bottling works, per bottling machine $[1,408.151 1,464.48 bowling alleys, amusement parks, doctor $[170.221 177.03 car lot, with car wash facilities $[84.571 87.95 car wash, automatic, per facility $[756.93] 787.21 car wash, self-service, per stall $[113.10] 117.62 churches, lodges, clubs, banquet rooms, per seat $[0.631 0.66 cleaners and commercial laundries, per facility $[486.30 505.75 dairies, installation of water meter required day care center/preschool, per child, maximum capacity $[2.44] 2.54 319 Schedule of Rates, Charges and Fees - Public Works and Capital Project Fees 14 1 Page KMC Section Fee Description Fee Amount doctor and dentist offices, per room or chair $[36.49] 37.95 garage, service stations $[74.02] 76.98 recreational vehicle dump facility (May - September) $[84.57] 87.95 hangar, airplane repair $[73.47] 76.41 with washing facilities $[84.57] 87.95 hospital, per bed $[48.64] 50.59 hotel, motel, resort, per room $[37.52] 39.02 laundry, self service, per machine $[68.20] 70.93 markets, meat $[93.04] 96.76 office building single bill assumed by owner, per business $[80.36] 83.57 office building, tenants are billed, per business $[93.04] 96.76 restaurants, cafes, taverns, bars, per seat $[5.401 5.62 public office building, per restroom $[21.141 21.99 recreation facility, per restroom, sauna, shower $[40.701 42.33 rv/camper park, per space $[40.70] 42.33 schools, per seating capacity $[2.44] 2.54 shopping center $[42.29] 43.98 shops, beauty, per station or chair $[42.29] 43.98 shops, misc. (includes barber), per shop $[42.29] 43.98 sleeping room, per room $[16.40] 17.06 studio, photo or photo lab $[200.871 208.90 supermarket $[479.951 499.15 theater, indoor, per seat $[0.291 0.30 theater, outdoor, per seat $[0.291 0.30 taverns, lounges, bars (without kitchens), per seat $[5.061 5.26 xray or lab office $[119.46] 124.24 3. Schedule C - Industrial Service (non -metered) concrete mixing plant $[771.751 802.62 concrete products $[384.821 400.21 confectioner $[255.821 266.05 greenhouse, commercial $[255.821 266.05 ice cream plant $[384.821 400.21 cold storage plant or locker $[179.72] 186.91 4. Schedule D - Fire Protection None S. Schedule E - Metered Service general usage, per thousand gallons $[6.02] 6.26 hydrant use, per thousand gallons minimum monthly charge, general usage $[90.33] 93.94 Pressed Septage Effluent, per thousand gallons $50.00 6. Schedule F - Permit Fee $[243.11] 300.00 Note: All Sewer Fees are subject to a 2% discount for payment by means other than credit card. 320 Schedule of Rates, Charges and Fees - Public Works and Capital Project Fees 15 1 Page KMC Section Fee Description Fee Amount Senior Center Senior Center Meals 12 years and younger $8.00 Adult non -senior (13 years and older but less than 60 years) $16.00 60 years and older - Suggested Donation $8.00 Senior Center Transportation Transportation within Kenai City Limits - To Senior Center - Suggested Donation $6.00 Transportation within Kenai City Limits $6.00 Transportation outside Kenai City Limits $15.00 Senior Center Rental Main Dining Room and Kitchen Rental One Day Rental $800.00 Friday (1/2 day) and Saturday $1,200.00 Saturday and Sunday $1,500.00 Friday (1/2 day), Saturday and Sunday $2,100.00 Dishes (per place setting) $1.50 Security Deposit $1,000.00 Vintage Pointe Rents For units with market rate rental agreements: 1-A apartment=586 sq. ft. Ocean Side (8) $[1,073.00] 1,095.64 1-A apartment=586 sq. ft. Street Side (5) $[1,030.00] 1,051.73 1-13 apartment=637 sq. ft. Ocean Side (6) $[1,100.00] 1,123.21 1-13 apartment=637 sq. ft. Street Side (4) $[1,056.00] 1,078.00 1-C apartment=682 sq. ft. Ocean Side (4) $[1,107.00] 1,130.36 1-C apartment=682 sq. ft. Street Side (4) $[1,062.00] 1,084.41 2-A apartment=826 sq. ft. Ocean Side (3) $[1,227.00] 1,252.89 2-A apartment=826 sq. ft. Street Side (1) $[1,175.00] 1,199.79 2-13 apartment=876 sq. ft. Ocean Side (2) $[1,236.00] 1,262.08 2-13 apartment=876 sq. ft. Street Side (2) $[1,178.00] 1,202.86 2-C apartment=789 sq. ft. Ocean Side (1) $[1,217.00] 1,242.68 Monthly Automatic ACH Payment Fee Note: All Vintage Pointe Rents are subject to a 2% discount for payment by means other than credit card. Fees Facility entrance access device - replacement (each) $10.00 Facility entrance access device - resident requested additional $10.00 Security Deposit $800.00 Apartment Internal Move Fee $500.00 321 Schedule of Rates, Charges and Fees - Senior Center Fees 16 1 Page This page intentionally left blank 322 City of Kenai Fiscal Year 2027 Consolidated Operating Budget Authorized Personnel Staffing Table FY2025 FY2026 Full FY2027 Full Time Time Full Time FY2025 FY2026 FY2027 Equivalent Equivalent Equivalent Department Position Title Grade Grade Grade Positions Positions Positions General Fund Legislative Mayor Unclassified Unclassified Unclassified Council Members Unclassified Unclassified Unclassified City Clerk City Clerk Unclassified Unclassified Unclassified 1.00 1.00 1.00 Administrative Assistant III 14 15 15 1.00 1.00 1.00 Legal Department City Attorney Unclassified Unclassified Unclassified 1.00 1.00 1.00 Administrative Assistant II 14 14 14 1.00 1.00 1.00 City Manager City Manager Unclassified Unclassified Unclassified 1.00 1.00 1.00 Assistant to the City Manager/Special Projects Coordinator 23 23 23 1.00 1.00 1.00 Human Resources Human Resources Director 23 23 23 1.00 1.00 1.00 Finance Department Finance Director 28 28 28 1.00 1.00 1.00 Controller 25 25 25 1.00 1.00 0.98 IT Manager 23 23 23 0.98 0.98 0.58 Systems Administrator - - 19 - - 1.00 Accounting Technician II 16 16 16 1.00 1.00 1.00 Desktop Support Technician 15 15 15 0.58 0.58 0.50 Accounting Technician 1 14 14 14 0.50 0.50 1.00 Administrative Assistant 1 13 13 13 0.32 0.32 0.31 Land Planning Director - 24 24 - 0.05 0.05 Administrative Assistant III - 15 15 - 0.50 0.75 Non -Departmental Janitor 6 6 6 0.35 0.35 0.70 Planning & Zoning Department Planning Director 24 24 24 0.70 0.65 0.65 Administrative Assistant III 15 15 15 1.00 0.50 0.25 Administrative Assistant II 14 14 14 0.50 0.50 0.60 Commissioners Unclassified Unclassified Unclassified Police Department Police Chief 28 28 28 1.00 1.00 1.00 Police Lieutenant 27 27 27 1.00 1.00 1.00 Police Sergeant 24 24 24 3.00 3.00 3.00 Police Officer 21 21 21 13.00 13.00 13.50 Administrative Assistant III 15 15 15 1.00 1.00 1.00 Administrative Assistant I - 13 13 - 0.35 0.35 Janitor 6 6 6 0.30 0.30 0.35 Temporary Enforcement Officer T8 T8 T8 0.60 0.60 0.56 Fire Department Fire Chief 27 27 27 1.00 1.00 1.00 Deputy Fire Chief 25 25 25 1.00 1.00 1.00 Fire Marshal 22 22 22 1.00 1.00 1.00 Fire Captain 22 22 22 3.00 3.00 3.00 Fire Engineer 20 20 20 3.00 3.00 3.00 Firefighter 18 18 18 9.00 12.00 12.00 Administrative Assistant II 14 14 14 1.00 1.00 1.00 323 City of Kenai Fiscal Year 2027 Consolidated Operating Budget Authorized Personnel Staffing Table Department Position Title Communications Department Communications Supervisor Public Safety Dispatcher Animal Control Department Chief Animal Control Officer Animal Control Officer Public Works Administration Public Works Director Capital Project Manager Assistant Public Works Director Administrative Assistant III Shop Department Shop Foreman Shop Mechanic Street Department Street Foreman Equipment Lead Operator Equipment Operator Temporary Equipment Operator Building Department Building Official Building Maintenance Foreman Building Maintenance Lead Technician Building Maintenance Technician Library Library Director Administrative Assistant III Library Assistant Library Aide Janitor Parks, Recreation & Beautification Department Dock General Fund Totals FY202 Grade 5 FY2025 FY2026 Full FY2027 Full Time Time Full Time FY2026 FY2027 Equivalent Equivalent Equivalent Grade 17 17 17 1.00 1.00 1.00 14 14 14 2.00 2.00 2.00 28 28 28 0.71 0.70 0.63 23 - - 1.00 - - 22 24 24 1.00 0.70 0.63 15 15 15 0.71 0.70 0.63 21 21 21 1.00 1.00 1.00 19 19 19 2.00 2.00 2.00 21 21 21 0.93 0.93 0.93 19 19 19 0.92 0.91 0.91 16 16 16 2.73 2.73 2.73 T16 T16 T16 0.39 0.39 0.39 21 21 21 1.00 1.00 1.00 - 21 21 - 0.66 0.66 19 - - 0.66 - - 16 16 16 0.66 0.66 0.66 23 23 23 1.00 1.00 1.00 15 15 15 1.00 1.00 2.00 12 12 12 3.00 3.00 2.00 8 8 8 2.67 2.67 2.65 6 6 6 0.39 0.39 0.35 Parks and Recreation Director 23 23 23 0.96 0.95 0.95 Assistant Parks and Recreation Director 19 19 19 0.93 0.94 0.94 Parks and Recreation Maintenance Technician 14 14 14 1.92 1.91 1.91 Parks and Recreation Laborer 6 6 6 0.98 0.98 0.98 Recreation Center Worker 6 6 6 3.35 3.35 3.35 Temporary Parks and Recreation Maintenance Worker T5 T5 T5 2.34 2.34 2.34 Street Foreman 21 21 21 0.04 0.03 0.03 Equipment Lead Operator 19 19 19 0.04 0.04 0.04 Equipment Operator 16 16 16 0.19 0.17 0.17 Water/ Sewer Public Works Director Assistant Public Works Director Utility Foreman 1/11 Utility Lead Operator Utility Operator 1/11 Administrative Assistant III Accounting Technician I Administrative Assistant I Temporary Utility Technician Water and Sewer Fund Totals Water and Sewer Fund 97.35 99.33 101.01 28 28 28 0.29 0.30 0.37 - 24 24 - 0.30 0.37 21/22 21/22 21/22 1.00 1.00 1.00 19 19 19 2.00 2.00 2.00 15/18 15/18 15/18 4.00 4.00 4.00 15 15 15 0.29 0.30 0.37 14 14 14 0.50 0.50 0.50 13 13 13 0.31 0.31 0.03 - T12 T12 - 0.25 0.25 8.39 8.96 8.89 324 Parks and Recreation Director 23 23 23 0.96 0.95 0.95 Assistant Parks and Recreation Director 19 19 19 0.93 0.94 0.94 Parks and Recreation Maintenance Technician 14 14 14 1.92 1.91 1.91 Parks and Recreation Laborer 6 6 6 0.98 0.98 0.98 Recreation Center Worker 6 6 6 3.35 3.35 3.35 Temporary Parks and Recreation Maintenance Worker T5 T5 T5 2.34 2.34 2.34 Street Foreman 21 21 21 0.04 0.03 0.03 Equipment Lead Operator 19 19 19 0.04 0.04 0.04 Equipment Operator 16 16 16 0.19 0.17 0.17 Water/ Sewer Public Works Director Assistant Public Works Director Utility Foreman 1/11 Utility Lead Operator Utility Operator 1/11 Administrative Assistant III Accounting Technician I Administrative Assistant I Temporary Utility Technician Water and Sewer Fund Totals Water and Sewer Fund 97.35 99.33 101.01 28 28 28 0.29 0.30 0.37 - 24 24 - 0.30 0.37 21/22 21/22 21/22 1.00 1.00 1.00 19 19 19 2.00 2.00 2.00 15/18 15/18 15/18 4.00 4.00 4.00 15 15 15 0.29 0.30 0.37 14 14 14 0.50 0.50 0.50 13 13 13 0.31 0.31 0.03 - T12 T12 - 0.25 0.25 8.39 8.96 8.89 324 Water/ Sewer Public Works Director Assistant Public Works Director Utility Foreman 1/11 Utility Lead Operator Utility Operator 1/11 Administrative Assistant III Accounting Technician I Administrative Assistant I Temporary Utility Technician Water and Sewer Fund Totals Water and Sewer Fund 97.35 99.33 101.01 28 28 28 0.29 0.30 0.37 - 24 24 - 0.30 0.37 21/22 21/22 21/22 1.00 1.00 1.00 19 19 19 2.00 2.00 2.00 15/18 15/18 15/18 4.00 4.00 4.00 15 15 15 0.29 0.30 0.37 14 14 14 0.50 0.50 0.50 13 13 13 0.31 0.31 0.03 - T12 T12 - 0.25 0.25 8.39 8.96 8.89 324 324 City of Kenai Fiscal Year 2027 Consolidated Operating Budget Authorized Personnel Staffing Table FY2025 FY2026 Full FY2027 Full Time Time Full Time FY2025 FY2026 FY2027 Equivalent Equivalent Equivalent Department Position Title Grade Grade Grade Positions Positions Positions Airport Fund Administration Airport Manager 25 25 25 1.00 1.00 1.00 Administrative Assistant II 14 14 14 0.67 0.67 0.67 Airfield Airport Operations Supervisor 21 21 21 1.00 1.00 1.00 Airport Operations Specialist 16 16 16 1.00 1.00 1.00 Seasonal Equipment Operator 16 16 16 1.00 1.00 0.83 Temporary Equipment Operator T16 T16 T16 0.39 0.39 0.39 Other Buildinqs & Areas Planning Director 24 24 24 0.30 0.30 0.30 Building Maintenance Foreman - 21 21 - 0.17 0.17 Building Maintenance Lead Technician 19 - - 0.17 - - Building Maintenance Technician 16 16 16 0.17 0.17 0.17 Airport Terminal Building Maintenance Foreman - 21 21 - 0.17 0.17 Building Maintenance Lead Technician 19 - - 0.17 - Building Maintenance Technician 16 16 16 0.17 0.17 0.17 Administrative Assistant II 14 14 14 0.33 0.33 0.33 Airport Operations Specialist 16 16 16 1.00 1.00 1.00 Airport Fund Totals 7.37 7.37 7.20 Congregate Housing Fund Congregate Housing Senior Center Director 23 23 23 0.40 0.40 0.40 Administrative Assistant III 15 15 15 0.30 0.30 0.30 Congregate Housing Fund Totals 0.70 0.70 0.70 Senior Citizens Fund Title III Access Senior Center Director 23 23 23 0.15 0.15 0.15 Administrative Assistant III 15 15 15 0.10 0.10 0.10 Administrative Assistant II 14 14 14 0.85 0.85 0.85 Janitor 6 6 6 0.26 0.26 0.26 Congregate Meals Senior Center Director 23 23 23 0.10 0.10 0.10 Administrative Assistant III 15 15 15 0.15 0.15 0.14 Administrative Assistant II 14 14 14 0.05 0.05 0.05 Cook 8 8 8 0.33 0.33 0.32 Driver 6 6 6 0.28 0.28 0.27 Janitor 6 6 6 0.08 0.08 0.03 Kitchen Assistant 6 6 6 0.33 0.33 0.32 Temporary Kitchen Assistant T6 T6 T6 0.01 0.01 0.01 325 City of Kenai Fiscal Year 2027 Consolidated Operating Budget Authorized Personnel Staffing Table FY2025 FY2026 Full FY2027 Full Time Time Full Time FY2025 FY2026 FY2027 Equivalent Equivalent Equivalent Department Position Title Grade Grade Grade Positions Positions Positions Home Meals Senior Center Director 23 23 23 0.17 0.17 0.17 Administrative Assistant III 15 15 15 0.26 0.26 0.26 Administrative Assistant II 14 14 14 0.09 0.09 0.09 Cook 8 8 8 0.58 0.58 0.58 Driver 6 6 6 0.49 0.49 0.49 Janitor 6 6 6 0.05 0.05 0.05 Kitchen Assistant 6 6 6 0.58 0.58 0.58 Temporary Kitchen Assistant T6 T6 T6 0.03 0.02 0.02 Transportation Senior Center Director 23 23 23 0.15 0.15 0.15 Administrative Assistant III 15 15 15 0.15 0.15 0.15 Driver 6 6 6 1.05 1.05 1.05 Choice Waiver Senior Center Director 23 23 23 0.03 0.03 0.03 Administrative Assistant III 15 15 15 0.04 0.04 0.04 Administrative Assistant II 14 14 14 0.01 0.01 0.01 Cook 8 8 8 0.09 0.09 0.10 Driver 6 6 6 0.75 0.75 0.08 Janitor 6 6 6 0.02 0.02 0.01 Kitchen Assistant 6 6 6 0.09 0.09 0.09 Temporary Kitchen Assistant T6 T6 T6 0.01 0.01 0.01 Senior Citizen Fund Total 7.20 7.20 6.56 Personal Use Fishery Fund Public Safety Temporary Enforcement Officer T8 T8 T8 0.56 0.56 0.56 Streets Street Foreman 21 21 21 0.02 0.02 0.02 Equipment Lead Operator 19 19 19 0.03 0.03 0.03 Equipment Operator 16 16 16 0.08 0.08 0.08 Parks, Recreation & Beautification Department IT Manager 23 23 23 0.02 0.02 0.02 Parks and Recreation Director 23 23 23 0.04 0.04 0.04 Assistant Parks and Recreation Director 19 19 19 0.03 0.03 0.03 Desktop Support Technicain 15 15 15 0.02 0.02 0.02 Parks and Recreation Maintenance Technician 14 14 14 0.08 0.08 0.08 Parks and Recreation Laborer 6 6 6 0.02 0.02 0.02 Temporary Parks and Recreation Maintenance Worker T5 T5 T5 0.33 0.33 0.33 Temporary Personal Use Fishery Attendant T5 T5 T5 0.07 0.07 0.07 Temporary Personal Use Fishery Cashier T3 T3 T3 0.57 0.57 0.57 Dock Parks and Recreation Director 23 23 23 0.01 0.01 0.01 Street Foreman 21 21 21 0.02 0.02 0.02 Assistant Parks and Recreation Director 19 19 19 0.03 0.03 0.03 Equipment Lead Operator 19 19 19 0.02 0.02 0.02 Equipment Operator 16 16 16 0.02 0.02 0.02 Parks and Recreation Maintenance Technician 14 14 14 0.01 0.01 0.01 Temporary Parks and Recreation Maintenance Worker T5 T5 T5 0.02 0.02 0.02 Temporary Personal Use Fishery Attendant T4 T4 T4 0.36 0.36 0.36 Personal Use Fishery Fund Total 2.36 2.36 2.36 All Funds Totals 123.37 125.92 126.72 326 This page intentionally left blank 327 City of Kenai FY2027 Permanent Positions Organizational Chart Citizens Mayor/Council Administrative / \ City Attorney ) I ( City Clerk Administrative Assistant II Assistant III Assistant to City Human Resources Manager / Director aCIanager Special Projects Coordinator Public Works Police Chief Director Fire Chief Finance Director Administrative Asst. Public Works Building Official/ Administrative Assistant III Director Manager Assistant II Controller Administrative Administrative Building Maint. Lea Fire Marshal Administrative Assistant I Assistant III Technician Assistant I Shop Foreman Building Maint. Deputy Fire Chief Accounting Technician Technician II FLieutenant Chief Animal Shop Mechanic (2) Janitor (5) Fire Captain (3) CAuntingControl Officer nicianI Police Officer (13) Animal Control Street Equipment Lead Fire Engineer (3) KIA�anager Officer (2) Foreman Operator te�Enforce)ment Equipment Firefighter (12) =Admn Operator (3) Communications Utility Foreman I/II Utility Lead De=SupportSupervisor Operator (2) Public Safety Utility Dispatcher (7) Operator 1/11 (4) 328 City of Kenai FY2027 Permanent Positions Organizational Chart Parks and Senior Center Planning Director Library Director Airport Manager Recreation Director Director Assistant Parks and Administrative Administrative Recreation Director Assistant Assistantll ��=Asristant <�Ad�ministrative =Attendant Driver (5) AdministDative Library Aide (5) Ai=S.pervisor Assistan Temporary PU e A�Assistant Library Assistant(3) Airport Operations Fishery Cashier (8) Specialist (2) Temporary PU Airport Seasonal Fishery Attendant Equip. Operator (2) (8) Cook =enerat.r =RecreationLaborer Kitchen Assistant =Technician Temporary Kitchen Assistant Temporary Parks and Recreation Maintenance Work er(11) 329 City of Kenai Fiscal Year 2027 Operating Budget Permanent Positions - Classified Salary Schedule Police Trainee $ 14.82 $ 15.19 $ 15.56 $ 15.94 $ 16.29 $ 16.67 2 $ 15.56 $ 15.95 $ 16.34 $ 16.72 $ 17.12 $ 17.51 f 3 $ 16.34 $ 16.74 $ 17.16 $ 17.57 $ 17.98 $ 18.38 4 $ 17.16 $ 17.59 $ 18.02 $ 18.45 $ 18.88 $ 19.30 5 $ 18.01 $ 18.45 $ 18.91 $ 19.36 $ 19.80 $ 20.25 Driver, Janitor, Kitchen Assistant, Parks & Rec Laborer, $ 18.92 $ 19.39 $ 19.87 $ 20.34 $ 20.81 $ 21.28 6 Recreation Center Attendant 7 $ 19.86 $ 20.36 $ 20.85 $ 21.35 $ 21.85 $ 22.35 8 Cook, Library Aide $ 21.26 $ 21.79 $ 22.32 $ 22.86 $ 23.39 $ 23.92 9 $ 22.33 $ 22.90 $ 23.45 $ 24.01 $ 24.57 $ 25.12 10 $ 23.44 $ 24.02 $ 24.61 $ 25.19 $ 25.78 $ 26.38 11 $ 24.59 $ 25.20 $ 25.82 $ 26.44 $ 27.05 $ 27.66 12 Library Assistant $ 25.85 $ 26.50 $ 27.14 $ 27.78 $ 28.44 $ 29.09 13 Administrative Assistant 1 $ 27.15 $ 27.82 $ 28.51 $ 29.19 $ 29.86 $ 30.55 Accounting Tech I, Administrative Assistant II, Animal $ 28.51 $ 29.21 $ 29.94 $ 30.64 $ 31.35 $ 32.07 14 Control Officer, Parks & Rec Maint. Tech. Admin. Assistant III, Desktop Support Tech., Public $ 29.91 $ 30.66 $ 31.41 $ 32.16 $ 32.89 $ 33.65 15 Safety Dispatcher, Utility Operator I Accounting Tech 11, Airport Operations Specialist, $ 31.41 $ 32.19 $ 32.98 $ 33.76 $ 34.55 $ 35.33 16 Building Maintainance Technician Equipment Operator 17 Chief Animal Control Officer $ 33.01 $ 33.83 $ 34.67 $ 35.49 $ 36.31 $ 37.14 18 Communications Supervisor, Utility Operator II $ 34.64 $ 35.50 $ 36.36 $ 37.24 $ 38.10 $ 38.97 Assistant Parks & Rec Director, Equipment Lead $ 36.37 $ 37.28 $ 38.19 $ 39.10 $ 40.02 $ 40 92 19 Operator, Shop Mechanic, Utility Lead Operator 20 $ 38.17 $ 39.13 $ 40.08 $ 41.04 $ 42.00 $ 42.96 Airport Operations Supervisor, Building Official, Police Officer, Shop Foreman, Street Foreman, Building $ 40.09 $ 41.09 $ 42.10 $ 43.10 $ 44.10 $ 45.11 21 Foreman, Utility Foreman 1 22 Utility Foreman 11 $ 42.10 $ 43.15 $ 44.20 $ 45.25 $ 46.31 $ 47.36 Assistant to the City Manager/Special Projects $ 44.18 $ 45.28 $ 46.38 $ 47.49 $ 48.60 $ 49.71 23 Coordinator, IT Manager 24 Police Sergeant, Assistant Public Works Director $ 46.40 $ 47.56 $ 48.73 $ 49.88 $ 51.05 $ 52.20 25 Controller, Fire Deputy Chief $ 48.73 $ 49.94 $ 51.16 $ 52.38 $ 53.60 $ 54.81 26 $ 51.19 $ 52.47 $ 53.75 $ 55.04 $ 56.31 $ 57.60 27 Police Lieutenant $ 53.70 $ 55.05 $ 56.38 $ 57.73 $ 59.08 $ 60.41 28 $ 56.40 $ 57.82 $ 59.23 $ 60.65 $ 62.04 $ 63.46 Classified employees engaged in fire protection activities • M �aaaa F18 '7irefighter $ 24.25 $ 24.86 $ 25.46 $ 26.06 $ 26.66 $ 27.26 F19 $ 25.47 $ 26.10 $ 26.73 $ 27.36 $ 28.00 $ 28.63 F20 Fire Engineer $ 26.72 $ 27.39 $ 28.05 $ 28.71 $ 29.37 $ 30.04 F21 $ 28.08 $ 28.78 $ 29.49 $ 30.19 $ 30.90 $ 31.60 F22 Fire Captain, Fire Marshall $ 29.49 $ 30.22 $ 30.96 $ 31.69 $ 32.43 $ 33.16 Department Head Human Resources Director, Library Director, Parks & FM 23 Rec Director, Senior Center Director 24 Planning Director 25 Airport Manager 26 27 Fire Chief 28 Finance Director, Public Works Director, Police Chief $ 91,890 $ 128,646 $ 96,522 $ 135,132 $ 101,350 $ 141,890 $ 106,480 $ 149,072 $ 111,697 $ 156,375 $ 117,325 $ 164,255 City Manager, City Clerk and City Attorney are Council -Appointed administrative offices with negotiated salaries. 330 City of Kenai Fiscal Year 2027 Operating Budget Permanent Positions - Classified Salary Schedule $ 17.30 $ 17.93 $ 18.57 $ 19.19 $ 19.82 $ 18.17 $ 18.83 $ 19.49 $ 20.15 $ 20.81 $ 19.08 $ 19.76 $ 20.46 $ 21.16 $ 21.86 $ 20.04 $ 20.76 $ 21.49 $ 22.22 $ 22.95 $ 21.02 $ 21.78 $ 22.55 $ 23.31 $ 24.08 $ 22.08 $ 22.90 $ 23.70 $ 24.50 $ 25.30 $ 23.19 $ 24.03 $ 24.88 $ 25.71 $ 26.56 $ 24.82 $ 25.72 $ 26.62 $ 27.53 $ 28.44 $ 26.07 $ 27.02 $ 27.98 $ 28.93 $ 29.86 $ 27.38 $ 28.36 $ 29.35 $ 30.35 $ 31.35 $ 28.70 $ 29.75 $ 30.79 $ 31.84 $ 32.88 $ 30.19 $ 31.28 $ 32.38 $ 33.48 $ 34.58 $ 31.70 $ 32.85 $ 34.01 $ 35.17 $ 36.31 $ 33.27 $ 34.49 $ 35.70 $ 36.91 $ 38.12 $ 34.92 $ 36.19 $ 37.46 $ 38.73 $ 40.01 $ 36.66 $ 38.01 $ 39.34 $ 40.67 $ 42.01 $ 38.55 $ 39.96 $ 41.34 $ 42.75 $ 44.16 $ 40.43 $ 41.91 $ 43.37 $ 44.85 $ 46.32 $ 42.48 $ 44.02 $ 45.57 $ 47.11 $ 48.66 $ 44.58 $ 46.20 $ 47.82 $ 49.44 $ 51.06 $ 46.81 $ 48.51 $ 50.22 $ 51.92 $ 53.63 $ 49.15 $ 50.94 $ 52.73 $ 54.53 $ 56.31 $ 51.58 $ 53.46 $ 55.33 $ 57.22 $ 59.10 $ 54.18 $ 56.15 $ 58.13 $ 60.09 $ 62.07 $ 56.88 $ 58.95 $ 61.02 $ 63.10 $ 65.17 $ 59.77 $ 61.94 $ 64.12 $ 66.29 $ 68.47 $ 62.69 $ 64.98 $ 67.26 $ 69.54 $ 71.83 $ 65.86 $ 68.26 $ 70.66 $ 73.04 $ 75.45 $ 28.29 $ 29.32 $ 30.35 $ 31.38 $ 32.42 $ 29.71 $ 30.79 $ 31.87 $ 32.96 $ 34.04 $ 31.17 $ 32.31 $ 33.45 $ 34.58 $ 35.72 $ 32.79 $ 33.99 $ 35.18 $ 36.37 $ 37.57 $ 34.42 $ 35.67 $ 36.91 $ 38.17 $ 39.42 331 City of Kenai Fiscal Year 2027 Operating Budget Temporary Positions - Classified Salary Schedule T1 $ 14.53 $ 14.90 $ 15.25 T2 $ 15.25 $ 15.63 $ 16.02 T3 $ 16.02 $ 16.42 $ 16.83 T4 $ 16.83 $ 17.24 $ 17.66 T5 $ 17.65 $ 18.09 $ 18.54 T6 $ 18.55 $ 19.01 $ 19.48 T7 $ 19.47 $ 19.96 $ 20.44 T8 $ 20.85 $ 21.37 $ 21.89 T9 $ 21.90 $ 22.45 $ 22.99 T10 $ 22.98 $ 23.55 $ 24.13 T11 $ 24.11 $ 24.71 $ 25.31 T12 $ 25.34 $ 25.98 $ 26.61 T13 $ 26.62 $ 27.28 $ 27.95 T14 $ 27.95 $ 28.64 $ 29.34 T15 $ 29.32 $ 30.06 $ 30.79 T16 $ 30.79 $ 31.56 $ 32.33 T17 $ 32.36 $ 33.17 $ 33.99 T18 $ 33.96 $ 34.80 $ 35.65 T19 $ 35.66 $ 36.55 $ 37.45 T20 $ 37.43 $ 38.36 $ 39.29 T21 $ 39.30 $ 40.28 $ 41.27 T22 $ 41.27 $ 42.30 $ 43.33 T23 $ 43.31 $ 44.39 $ 45.48 T24 $ 45.50 $ 46.63 $ 47.77 T25 $ 47.77 $ 48.96 $ 50.16 T26 $ 50.19 $ 51.44 $ 52.70 T27 $ 52.65 $ 53.96 $ 55.28 T28 $ 55.30 $ 56.69 $ 58.07 T29 $ 58.15 $ 59.60 $ 61.06 332 City of Kenai Fiscal Year 2027 Operating Budget CHAITr6ACCOUNTS 2021 - Office Supplies - Office stationery, forms, items of office equipment costing less than $50, maps, drafting supplies, etc. 2022 - Operating, Repair & Maintenance Supplies - Includes building materials and supplies; paints and painting supplies; structural steel, iron, and related materials; plumbing supplies; electrical supplies; motor vehicle repair materials; parts and supplies; agricultural supplies; chemicals, drugs, and veterinary supplies; animal feed; food and kitchen supplies; motor vehicle fuel and lubricants; custodial and institutional supplies; clothing, film, and ammunition. 2024 - Small Tools & Minor Equipment - Tools and items of equipment that cost less than $5,000 per item and which have a useful life greater than one year. 2025 - Snack Bar Supplies - Snack foods, beverages, paper products, (i.e., paper plates, napkins, plastic -ware), condiments and other supplies as needed to maintain the snack bar. 2026 - Computer Software - Computer software that is licensed either permanently or on a subscription basis, including cloud based services. 4531 - Professional Services - Accounting and auditing services; management consulting services; surveying, engineering, and architectural services; special legal services; and other professional services. 4532 - Communications - Monthly telephone, internet, cellular data, and wide area network charges. 4533 - Transportation - Travel expenses, per diem, lodging expenses, and seminar expenses. 4534 - Advertising - Newspaper; other media advertising; promotions. 4535 - Printing & Binding - Copy machine rental and maintenance; professional printing charges; copy machine paper. 4536 - Insurance - All insurance policy expenses (other than personnel related). 4537 - Public Utility Services - Natural gas, electricity, cable, water, sewer, and solid waste disposal. 4538 - Repair & Maintenance Service - Contracted repairs of buildings, vehicles, equipment, and improvements; inspection charges and other contracted services; custodial services; and building security services. 4539 - Rentals - Land, building, machinery, postage machine and equipment rentals. 4540 - Equipment Fund Payments - Payments to Equipment Replacement Internal Service Fund. 4541 - Postage - Stamps and postage meter. 4666 - Books - Books, reference materials (including CD's), and other library materials. 4667 - Dues & Publications - Subscriptions to magazines and newspapers; dues for professional organizations; certification fees. 5041 - Miscellaneous - Court costs and investigations; judgments and damages; recording fees; information and credit services; taxes; uniform allowances; college tuition costs and reimbursements; other expenses not otherwise classified. 8061 - Land - Costs of acquiring raw land. 8062 - Buildings - Costs of construction or acquiring buildings, to include engineering, design, inspection, and other related costs. Costs of improving buildings, if improvements lengthen the useful life of the building or provide a new function. 8063 - Improvements Other Than Buildings - Costs of improving land, if improvements provide a new function or lengthen the useful life of an existing improvement. 8064 - Machinery & Equipment - Equipment items costing more than $5,000 and having a useful life in excess of one year. 9090 — Transfers Out — Transfer of funds from one fund to another. 333 COMMUNITY PROFIL Government The City of Kenai (City) was formed by a Home Rule Charter on May 20, 1963 under the provisions of Alaska Statute, Title 29, as amended. The City operates under a council-manager form of government. Policymaking and legislative authority are vested in the seven -member City Council, of which the Mayor is a member. The Council is authorized to adopt ordinances, the budget, and select the City Manager, City Attorney and City Clerk. The City Manager is responsible for carrying out the City's policies and ordinances, overseeing the day-to-day operations, and supervising department heads. The Council is elected at large on a nonpartisan basis. Council members and the Mayor are elected to three-year terms. The City provides the following services: public safety (police, fire, animal control, and 911 communications), public improvements, airport, dock facility, water and sewer, library, senior citizen, recreation, parks, planning and general administrative services. Geography The City is located in southcentral Alaska on the beautiful Kenai Peninsula at 60033'31 "N 151 °13'47"W. Situated at the mouth of the world-famous Kenai River. The City is located some 160 road miles south of Anchorage. The City has a land area of 35.4 'N. square miles of which 28.6 square miles is land and the remaining 6.8 square miles is water. The City's estimated population is 7,872. The City is located within the Kenai Peninsula Borough (KPB); a unit of government analogous to a county with a - land area of 24,752 square miles and an estimated population of 61,835. Climate As with much of Southcentral Alaska, Kenai has a moderate subarctic climate due to the cool summers. Winters are snowy, long but not particularly cold, especially considering the latitude, with January featuring a daily average temperature of 15.8°F. Snowfall averages 63.6 inches per year, falling primarily from October thru March, with some accumulation in April, and rarely in May or September. Summers are cool due to the coastal influence, with an average temperature of 61.7°F in the months of June, July and August. The City's record high was 93.0°F on June 14, 1969 and the record low was -48°F on February 4, 1947. 334 History Kenai was first inhabited by the Dena'ina people 3,000 years ago. In 1786 Pytor Zaikov built Fort Nikolaevskaia for the Lebedev-Lastochkin Company on the site of modern Kenai, being the first European settlement on the Alaskan mainland. In 1965, offshore oil discoveries in Cook Inlet caused a period of rapid growth. They were a part of a series of oil deposits located during the middle of the 20th century. In 1957, oil was discovered at Swanson River, 20 miles (32 km) northeast of Kenai. This was the first major oil discovery in Alaska. The same exceptional fishing, wildlife, and abundant natural resources that brought the Dena'ina people to Kenai some 3,000 years ago still attracts visitors and residents today. This small village and oil boomtown has developed into a diverse community that celebrates its rich history in one of the most spectacular natural settings in America. Kenai was named a "Top 200 Town for Sportsmen" by Outdoor Life magazine and was twice, in 1992 and again in 2011, named an All -American City by the National Civic League. Demographics -.. . City of Kenai 7,551 7,951 Kenai Peninsula Borough 58,000 62,447 -..Sex/Age Male 3,655 3,869 Female 3,896 3,693 Under 19 27.9% 32.8% 19 & over 72.10% 61.2% Median age 37 34.1 20-24 7.6% 7.6% 25-34 10.8% 10.6% 35-59 36.4% 41.0% 60-84 16.6% 28.8% 85 & Over 0.6% 2.9% White 5,805 5339 African American 24 73 Asian 140 243 American Indian and Alaska Native 846 940 Native Hawaiian and Pacific Islander 148 47 Identified by two or more 586 1029 Other 2 280 Number of households 3,508 2,916 Average household size 2.16 2.56 335 Median household income Persons in poverty High school graduate or higher Bachelor's degree or higher $ 87,083 $ 74,907 13.2% 12.28% 91.6% 94.7% 18.0% 21.1 % Estimated. Source: U.S. Bureau of the Census, American Fact/Finder, census.gov, https://worldpopulationreview.com/us- cities/kenai-ak-population Economy The City of Kenai's economy follows the economy of the surrounding KPB and the State of Alaska. Among KPB cities, Kenai has ranked highest in gross sales since 2011. As of 2020 Kenai was the 551" top US port for commercial fisheries volume (8.2 million pounds landed) with a value of more than $6.5 million. Kenai's economy, like the State, is heavily dependent on the price of oil. Many Kenai residents work in the oil and gas industry in Cook Inlet and other parts of Alaska. Other significant local employers include Education and Health Services, Retail Trade and Leisure and Hospitality businesses. Unemployment 1 . 1 Kenai Peninsula Borough 9.8% 5.9 % Source: https://live.laborstats.alaska.gov/data-pages/labor-force-area-data?a=0&s=16 Taxable Sales by Category (July I — June A Category 2015 2025 Retail Trade $162,134,036 $242,406,095 Restaurant/Bar 14,055,651 20,595,170 Utilities 10,261,338 11,178,788 Services 4,941,136 6,139,679 Hotel/Motel/Bed & Breakfast 10,443,325 6,120,786 Rental Residential Property 5,102,726 5,263,892 Public Administration 3,304,716 4,202,300 Professional, Scientific and Technical Services 3,396,344 4,067,544 Wholesale Trade 3,471,361 2,808,682 Information 9,475,629 2,324,477 Telecommunications 2,526,507 1,995,881 Rental Personal Property 264,719 1,941,292 Arts and Entertainment 518,745 1,732,078 Rental Non -Residential Property 2,510,639 1,713,639 Administrative & Waste Management 1,176,435 1,504,559 Manufacturing 1,332,518 1,268,042 Educational Services 226,100 1,188,011 Construction Contracting 1,366,341 1,144,975 Rental Self -Storage & Mini 16,280 1,102,153 Guiding 326,132 518,735 336 Transportation and Warehousing Mining/Quarrying Rental Commercial Property Finance and Insurance Agriculture, Forestry, Fishing & Hunting Health Care and Social Assistance Total City direct sales tax rate 373,378 501,887 118,952 435,203 430,127 405,076 555,980 193,059 213,765 26,621 73,510 10,199 $238,616,390 $320,788, 223 3.00% 3.00% Source: The Kenai Peninsula Borough Sales Tax Department. Transportation The City is the major airfare hub for the Kenai Peninsula. The Kenai Municipal Airport receives approximately 75,000 passengers and 2.3 million pounds of freight annually. 337 Accrual Basis - The basis of accounting under which the financial effects of a transaction and other events and circumstances that have cash consequences for the governmental entity are recorded in the period in which those transactions, events and circumstances occur, rather than only in the periods in which cash is received or paid by the entity. Adopted Budget - Refers to the budget amounts as originally approved by the Kenai City Council at the beginning of the year and also to the budget document which consolidates all beginning of the year operating appropriations and new capital project appropriations. Annual Budget - A budget developed and enacted to apply to a single fiscal year. Annual Comprehensive Financial Report (ACFR) - The official annual report of a government. It includes: (a) the five combined financial statements in the combined statement -overview and their related notes and (b) combining statements by fund type and individual fund and account group financial statements prepared in conformity with GAAP and organized into a financial report pyramid. It also includes support schedules necessary to demonstrate compliance with finance - related legal and contractual provisions, required supplementary information, extensive introductory material and detailed statistical sections. Appraise - To estimate the value, particularly the value of property. if the property is valued for taxations, the narrower term "assess" is substituted. Appropriation Ordinance - The official enactment by the City Council establishing the legal authority for the City administrative staff to obligate and expend resources. Assessed Valuation - The valuation set upon all real and personal property in the City that is used as a basis for levying taxes. Tax-exempt property is excluded from the assessable base. Audit - A systematic collection of the sufficient, competent evidential matter needed to attest to the fairness of management's assertions in the financial statements or to evaluate whether management has efficiently and effectively carried out its responsibilities. The auditor obtains this evidential matter through inspections, observation, inquiries and confirmations with third parties. Automatic Aid: A plan developed between two or more fire departments for immediate joint response on first alarms. Defines area of response and defines what will respond, including initial response vehicle and manning. Available Fund Balance - The difference between fund assets and fund liabilities of governmental and proprietary fund types that is not reserved for specific purposes. Basis of Accounting - A term used to refer to when revenues, expenditures, expenses, and transfers - andthe related assets and liabilities - are recognized in the accounts and reported in the financial statements. Specifically, it relates to the timing of the measurements made, regardless of the nature of the measurement, on either the cash or accrual method. Bond - Most often, a written promise to pay a specified sum of money, called the par value or principal, at a specified date or dates in the future, called the maturity date(s), together with periodic interest at a specified rate. The difference between a note and bond is that thelatter is issued for a longer period and requires greater legal formality. 338 Bond Ordinance - An ordinance authorizing a bond issue. Budget - A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. Sometimes the term "budget" designates the financial plan presented to the appropriating governing body for adoption, and sometimes, the plan finally approved by that body. Budgetary Control - The control or management of a government or enterprise in accordance with an approved budget to keep expenditures within the limitations of available appropriations and available revenues. Budget Document - The official written statement prepared by the City's administrative staff to present a comprehensive financial program to the City Council. The first part provides overview information, together with a message from the budget- making authority, and a summary of the proposed expenditures and the means of financing them. The second consists of schedules supporting the summary. These schedules show in detail the past years' actual revenues, expenditures and other data used in making the estimates. The third part is composed of personnel and salary schedules, the chart of accounts, and a glossary. Capital Improvement Plan - A plan that identifies: (a) all capital improvements which are proposed to be undertaken during a five fiscal year period; (b) the cost estimate for each improvement; (c) method of financing each improvement; and (d) the recommended time schedule for each project. Capital Projects - Projects which purchase or construct fixed assets. Typically, a capital project encompasses a purchase of land and/or the construction of a building or facility. Capital Projects Funds — Funds established to account for financial resources to be used for the acquisition or construction of major capital facilities (other than proprietary and trust funds). Contingency - Those funds included in the budget for the purpose of providing a means to cover minor unexpected costs during the budget year. Contractual Services - Items of expenditure from services the City receives primarily from an outside company. Debt Service Funds — Funds established to account for the accumulation of resources for and the payment of, general long-term debt principal and interest that resulted from the issuance of bonds. Deficit - The excess of expenditures over revenues during an accounting period, or in the case of proprietary funds, the excess of expenses over revenues during an accounting period. Department — The City administration is divided into departments. While a department may refer to a single activity, it usually indicates a grouping of related activities. Depreciation — In accounting for depreciation, the cost of a fixed asset, less any salvage value, is prorated over the estimated service life of the asset. Each period is charged with a portion of the cost. Through this process, the entire cost of the asset less the salvage value is ultimately charged off as an expense. Employee Benefits — Contributions made by the City to designated funds to meet commitments or obligations for employee 339 fringe benefits. Included is the City's share of costs for pension, medical, and life insurance plans. Encumbrances — Commitments related to unperformed contracts, in the form of purchase orders or contracts,for goods or services. Used in budgeting, encumbrances are not expenditures or liabilities, but represent the estimated amount of expenditures that will result if unperformed contracts in process are completed. Enterprise Fund - A proprietary fund established to account for operations that are financed and operated in a manner similar to private business enterprises. In this case the intent of the governing body is that the expenses including depreciation of providing goods as services to the general public on a continuing basis be financed or recovered primarily through user charges. Included in this category are two hospitals. Expenditure - Decreases in net financial resources. Expenditures include current operating expenses, requiring the present or future use of net current assets, debt service and capital outlays, and inter -governmental grants, entitlements and shared revenues. Expenses - Outflows or other using up of assets or incurrence of liabilities (or a combination of both) from delivering or producing goods, rendering services or carrying out other activities that constitute the entity's ongoing major or central operations. Fiduciary Fund Types - The trust and agency funds used to account for assets held by a government unit in a trustee capacity or an agent for individuals, private organizations, other government units and/or other funds. Financial Resources - Cash and other assets that, in the normal course of operations, will become cash. Fiscal Year - The twelve-month period to which the annual operating budget applies and at the end of which a government determines the financial position and results of its operations. The City's fiscal year extends from July 1 to the following June 30. Fixed Assets - long-lived tangible assets obtained or controlled as a result of past transactions, events or circumstances. Fixed assets include buildings, equipment, and improvements other than buildings and land. Function - A group of related activities aims ataccomplishing a major service for which a government isresponsible. Fund - A fiscal and accounting entity with a self- balancing set of accounts in which cash and/or other financial resources, all related liabilities, and residual equities, or balances, and changes therein, are recorded and segregated to carry on specific activities or attain certain objectives in accordance with special regulations, restrictions or limitations. Fund Balance - The difference between fund assets and fund liabilities of governmental and similar trust funds. Fund Balance Appropriated - The amount of fund balance budgeted as a revenue source. Fund Categories - Funds used in governmental accounting are classified into three broad categories: governmental, proprietary and fiduciary. Fund Type - The three broad fund categories of governmental accounting are subdivided into seven fundtypes. The seven fund types are: general, special revenue, debt service, capital projects, enterprise, internal service, and fiduciary. 340 General Fund - A type of governmental fund used to account for revenues and expenditures for regular day- to -day operations of the City, including the school district, which is not accounted for in specific purpose funds. The primary sources of revenue for this fund are local taxes and federal and state revenues. Generally Accepted Accounting Principles (GAAP) - Uniform minimum standards and guidelines for financial account and reporting. They govern the form and content of the financial statements of an entity. GAAP encompass the conventions, rules and procedures necessary to define accepted accounting practice at a particular time. They include not only broad guidelines of general applications, but also detailed practices and procedures. GAAP provide a standard by which to measure financial presentations. Governmental Fund Types - Funds used to account for the acquisition, use and balances of expendable financial resources and the related current liabilities - except those accounted for in the proprietary funds and fiduciary fund. Under current GAAP, there are four governmental fund types: general, special revenue, debt service and capital projects. Grants - Contributions or gifts of cash or other assets from another government or other organization to be used for a specified purpose, activity or facility. Typically, these contributions are made to local governments from the state and federal governments. Interfund Transfers - Amounts transferred from onefund to another fund. This includes reimbursements, residual equity transfers and operating transfers. Intergovernmental Revenues - Revenues from other governments in the form of grants, entitlements, or shared revenues or payments in lieu of taxes. Internal Service Fund - A proprietary fund type used to account for the financing of goods or services provided by one department of a government to other departments. Investment - Securities held for the production of income in the form of interest in compliance with the policies set out by the City code of ordinances. Levy - To impose taxes, special assessments or service charges for the support of government activities. Also used to denote the total amount of taxes, special assessments or service charges imposed by a government. Liabilities - Debt or other legal obligations, arising from present obligations of a particular entity, to transfer assets or provide services to other entities in the future as a result of past transactions or events. Measurement Focus - The accounting convention that determines (1) which assets and which liabilities are included on a government's balance sheet and where they are reported there, and (2) whether an operating statement presents information on the flow of financial resources (revenues and expenditures) or information onthe flow of economic resources (revenues and expenses). Mill - A measure of the rate of property taxation, representing one one -thousandth of a dollar of assessedvalue. Mill Rate - The tax rate on property, based on mill(s). A rate of 1 mill applied to a taxable value of $100,000 would yield $100 in tax. Modified Accrual Basis of Accounting - A basis ofaccounting in which revenues and other financial resources are recognized 341 when they become susceptible to accrual, that is when they are both "measurable" and "available to finance expenditures of the current period." "Available" means collectible in the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recognized whenthe fund liability is incurred except for (1) inventories of materials and supplies that may be considered expenditures either when purchased or when used, and (2) prepaid insurance and similar items that may be considered expenditures either when paid for or when consumed. All governmental funds, expendable trust funds and agency funds are accounted for using themodified accrual basis of accounting. Mutual Aid - Reciprocal assistance by emergency services under a prearranged plan. Not an automatic response, but a requested response. Request identifies resources requested and manning. Does not need to bea defined area but generally is between adjacent entities or those relatively close in proximity of each other. Non -Departmental - Refers to a group of governmental activities, which are not associated with and cannot be allocated to any particular department. Ordinance - A formal legislative enactment by the legislative body which, if not in conflict with any higher form of law, has the full force and effect of law within theboundaries of the municipality to which it applies. The difference between an ordinance and a resolution is that the latter requires less legal formality and has a lower legal status. Revenue raising measures, such as the imposition of taxes, special assessments and service charges, universally require ordinances. Other Financing Sources — Increase in current financial resources that is reported separately from revenues to avoid distorting revenue trends. Governmental fund general long-term debt proceeds, land lease payments, land sale payments, proceeds from the sale of fixed assets, operating transfers in, service charges, and fees for governmental services. Performance Measures - Specific quantitative productivity measures of work performed within an activity or program. Also, a specific quantitative measure of results obtained through a program or activity. Personnel Services - Items of expenditures in the operating budget for salaries and wages paid for services performed by City employees, including employee benefit costs such as the City's contribution for retirement, social security, and health and life insurance. Program - Group activities, operations or organizational units directed to attaining specific purposes or objectives. Property Tax - A tax levied on the assessed value of property. Proprietary Funds - A type of fund that accounts for governmental operations that are financed and operated in a manner similar to private business enterprises. Proprietary fund types used by the City include the enterprise and internal service funds. Purchase Order - A document authorizing the deliveryof specified merchandise or the rendering of certain services for a stated estimated price. Outstanding purchase orders at the end of the fiscal year are called encumbrances. Replacement Cost - The amount of cash or other consideration that would be required today to obtain the same asset or its equivalent. 342 Retained Earnings - An equity account reflecting the accumulated earning of an enterprise or internal service fund. Revenue - Increases in the net current assets of a governmental fund type other than expenditure refunds and residual equity transfers. General long-term debt proceeds and operating transfers are classified as 'other financing sources' rather than as revenues. Increases in the net total assets of a proprietary fund type other than expense refunds, capital contributions, and residual equity transfers. Operating transfers, as in governmental fund types, are classified separately from revenues. Sales Tax - State legislation allows local governments to levy a sales tax on retail sales in its jurisdiction. The City currently levies 3% on all taxable retail within the City. Single Audit - An audit performed in accordance with the single audit act of 1984 and the office of management and budget (OMB) circular a-128, audits of state and local governments. The single audit act allows or requires governments (depending on the amount of federal assistance received) to have one audit performed to meet the needs of all federal grantor agencies. Special Revenue Fund - A fund used to account for the proceeds of specific revenue sources (other than expendable trust or major capital projects) that are legally restricted to expenditure for specified purposes. Tax Levy - The total dollar amount of tax that optimally should be collected based on tax rates and assessedvalues of personal and real properties. 343