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Home My WebLink About2009-03-30 Council Packet - Budget Work SessionKENAI CITY COUNCIL WORK SESSION MARCH 30, 2009 6:00 P.M. KENAI CITY COUNCIL CHAMBERS MAYOR PAT PORTER, PRESIDING Council Members Present: Student Representative: Staff Present: NOTES P. Porter, J. Moore, R. Molloy, M. Boyle, H. Smalley, R. Ross, and B. Eldridge M. Johnson C. Freas, C. Graves, M. Tilly, M. Bondurant, G. Sandahl, B. Frates, T. Eubank, R. Craig, M. Joiner, R. Koch, W. Ogle City Manger Koch reviewed information included in his memorandum distributed noting items included in the proposed general fund budget that could be considered for removal /reduction and items requested, but not included; Boys & Girls Club request for a $45,000 donation; Stimulus money available for energy efficiency grants; Municipal Revenue Sharing. General Overview of All Funds -- General Overview: Finance Director Eubank provided an overview of the draft budget, providing handouts, indicating changes from the FY 2009 budget, etc. and reviewed the transmittal letter included in the budget document. BREAK TAKEN: 7:26 P.M. BACK TO ORDER: 7:38 P.M. Budget Review: Council reviewed items from the memorandum, i.e. items included and those removed by administration. Comments included: Fire, Ambulance Billing Services -- Leave in. Recreation, Soccer Goals -- It was expected costs would be covered from donations. Buildings, Recreation Center Locker Rooms remodel and lighting improvements -- Noted they were in bad shape. Cathodic Protection System -- Funds were included in the budget for a review of the pilings. KENAI COUNCIL BUDGET WORK SESSION MARCH 30, 2009 PAGE 2 Warming Shack at Marathon Pond -- Funds were included for a Master Plan, however interest has been expressed by service organizations to donate to the project. Kenai Chamber of Commerce /Fireworks -- Consensus was to put the $3,500 in the budget. CARTS -- Consensus was to put the $5,000 requested in the budget. Clerk /Computer Upgrade -- Include the $2,000. Visitors Center brochure -- Consensus was to include $10,000 for eight pages of advertising. Library -- Decrease in books, time management software -- Left out. Recreation Center Roof Repair -- Left out. Senior Housing -- Request made for estimated cost of sprinkler system. Buildings /Replacement of Metal Halide Lights -- To be revisited. Beautification /Decrease Winter Pole Decorations -- No change. Dock /Boat Launch Fee -- Revisit. COLA -- Administration suggested 4.5% -- Consensus was to leave at 4.5 %. Work session ended at approximately 8:28 p.m. Notes prepared by: Carol L. Freas, City Clerk CITY COUNCIL BUDGET WORK SESSION MARCH 30, 2009 PACKET the ALASKA Village with a Past, Cc EVIO: with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 TO: City Council tFROM: Rick Koch DATE: March 12, 2009 SUBJECT: FY 2010 Proposed Budget This purpose of this correspondence is to discuss the proposed FY10 budget. General Fund The general fund budget, as presented, results in revenues over expenditures of $ 176,286, therefore no transfer from fund balance is required. The Governor's submitted budget containing state revenue sharing has been transmitted to the Legislature, and provides $ 465,343 in revenue sharing to the City of Kenai. The city manager's proposed . budget includes $ 465,343 from state revenue sharing. I do not expect revenue sharing to change as the amount is calculated as a function of last year's natural resource revenues. The following are items included in the administration's proposed FY 10 general fund . budget that could be considered for removal/reduction to achieve a greater budget surplus: 1. Salaries 4.5% cost of living adjustment (COLA) (All Funds $ 255,430) 2. Benefits, increase due to COLA (All Funds $ 100,070) 3. Clerk, Laserfiche/Weblink, 01 -8064 4. Legislative, Outsource Broadcast Services, 11 -4531 5. Legislative, Newsletter, 11 -4534 6. Legislative, Souvenirs, 11 -4534 7. City Manager, State of the City Publication, 13 -4534 8. Land Admin., Misc. Engineering, 16 -4531. 9. Non- Dept., Bandwidth for Audio Streaming, 18 -4532 $ 212,707 86,344 14,469 9,000 6,000 1,000 3,500 10,000 4,000 AeOnerceCY* LIIIFI 1992 10. P & Z, GIS Computer, 19 -2024 2,200 11. P & Z, Junk Vehicle Disposal, 19 -5041 $ 3,000 12. Police, Patrol Vehicle (2), 21 -8064 52,500 13. Police, Patrol Vehicle Equipment, 21 -8064 10,000 14. Police, Evidence Storage Improvements, 21 -8064 1,000 15. Fire, Two Mobile Data Terminals, 22 -2024 8,000 16. Fire, Server, 22 -2024 3,500 17. Fire, New Computer, 22 -2024 1,400 18. Fire, Ambulance Billing Services, 22 -4531 20,000 19. Fire, RMS /EMS Software, 22 -8064 18,000 20. Fire, Bunker Gear Washer & Dryer, 22 -8064 20,000 21. Shop, New Man Doors, Roll -Up Doors, 22 -8064 4,000 22. Shop, Incinerator for Haz -Mat & Police Property, 32 -2022 4,000 23. Shop, Heavy Equip. Engine Analyzer, 32 -8064 7,000 24. Shop, Used Rough Terrain Forklift, 32 -8064 33,000 25. Buildings, Rec. Center Locker Rms Remodel, 34 -4538 34,000 26. Buildings, Rec. Center Lighting Improv., 34 -4538 35,000 27. Boating, Engineering Corrosion Protection, 36 -4531 15,000 28. Recreation, Soccer Goal Replacement Nets, 45 -2022 1,000 29. Recreation, MPF Rubber Flooring, 45 -2024 3,500 30. Recreation, Install Ventilation Fan, 45 -4538 2,500 31. Recreation, Soccer Goals 2�4 064 6,500 32. Parks, Replace Bridge Cemetera, 46 -8064 25,000 33. Parks, Fence for South Shore Dunes, 46 -2022 8,500 34. Parks, Lawton Dr. Field Improvements (Gazebo), 46 -2022 10,000 35. Parks, Bear Proof Receptacles, 46 -2024 3,500 36. Parks, Marathon Lake Park Master Plan, 46 -4531 10,000 37. Parks, Park Strip Shelter Add'n, 46 -8063 30,000 38. Parks, Slcatepark Improvements, 46 -8064 15,000 39. Parks, Playground Equip. Beaver Creek, 46 -8064 15,000 40. Beautification, Banners, 47 -2024 2,000 41. Beautification, Winter Pole Decorations, 47 -2024 5,000 42. Beautification, Circle Planters Decorations, 47 -2024 3,000 43. Beautification, Small Mower, 47 -2024 4,500 Total $ 763,620 The following are some items which were considered but not included in the administrations proposed FY 10 general fund budget. These items may have been requested by the departments, city clerk, or members of the council: 1. City Clerk, Computer Upgrade, 01 -2024 $ 2,000 2. Legislative, Chamber - Christmas Fireworks, 11 -5041 3,500 J. Legislative, CARTS Donation, 11 -5041 5,000 . P & Z, Update Comprehensive Plan, 19 -4531 60,000 4. Shop, New Shop Building, 32 -8062 3,000,000 5. Streets, Replacement Water Tank, 33 -8064 44,135 6. Streets, 4x4 Flatbed. W/U -Plow, 33 -8064 38,753 7. Buildings, PSB Upgrade Heating System, 34 -4538 85,000 8. Buildings, Rec. Center Roof Repairs, 34 -4538 25,000 9. Buildings, Replace Remaining Metal Halide Lights, 34 -4538 60,000 10. Construct Cathodic Protection System, 36 -4538 200,000 11. Library, Time Management Software, 40 -2026 3,000 12. Library, Decrease Books - Multimedia - Subscriptions, 40 -4666 5,000 13. Recreation, Ice painting Machine, 45 -2024 3,500 14. Parks, Decrease Lawton Dr. Field improv., 46 -2022 13,700 15. Parks, Utility Service to Municipal Park, 46 -4538 20,000 16. Parks, Underground Irrigation Lawton Dr., 46 -4538 15,000 17. Parks, Underground Irrigation Soccer Fields, 46 -4538 70,000 18. Parks, Decrease Park Strip Shelter Add'n, 46 -8063 10,000 19. Parks, Lawton Drive Improvements, 46 -8063 29,500 20. Parks, Decrease Skatepark Improvements, 46 -8064 5,000 21. Parks, Decrease Playground Equip. Beaver Cr., 46 -8064 7,500 22. Beautification, Decrease Winter Pole Decorations, 47 -2024 5,000 23. Beautification, Decrease Circle Planter Deco., 47 -2024 3,000 24. Beautification, Electrical to Circle Planters, 47 -4538 2,000 Total $ 3,704,888 The general fund budget includes an increase in boat launch fees from $ 15 to $ 20. This results in an estimated increase in revenue of $ 5,000. Airport Fund The airport fund has operated at a deficit from FY 2003 through FY 2009 as follows: Fiscal Year Deficit 2003 $ 342,842 2004 871,968 2005 727,730 2006 742,221 2007 659,866 2008 124,276 2009 As Adopted 2009 Projected 542,540 1,720,005 The primary difference between the FY 2009 adopted budget and the projected budget performance is as follows: 1. A decrease of $ 550,000 in anticipated interest on investments. We do not anticipate any interest income from our investment account. 2. A $ 225,000 expenditure for the construction of a parking lot on airport property next to the Alaska Courthouse. The Alaska Court System will lease this parking lot beginning in late spring 2009. The calculated payback on this investment is eight years, and the lease is for twenty years. 3. A $ 325,000 expenditure for the purchase of improvements and the termination of a lease with the University of Alaska MAPTS. 4. The majority of the remaining difference ( +/- $ 77,000) is the local match (2.5 %) on Airport AIP projects ( + / -$ 3,000,000). The FY 10 Airport Fund budget as presented includes the following increases to fees: 1. Ten percent (10 %) increase to landing fees 2. Ten percent (10 %) increase to terminal rents The fee increase for landing fees will be applied to all aircraft above 4,000 lbs. certified gross take -off weight (CGTOW). The fee increase for terminal rents will be applied to the signatory airlines and to future leases /rentals and lease /rental re-newels in the airport terminal. Both of these fee increases are included in the agreements (10% per year for 5 years) between the City and the signatory airlines. The FY10 budget also includes a reduction in fuel flowage revenues as a result of decreasing the fuel flowage fee from$ 0.03 per gallon to $ 0.02 per gallon. The volume of fuel delivered to the Kenai Municipal Airport is calculated to exceed the FY09 estimate by approximately 1,000,000 gallons. The budget for FY09 was calculated on 2,500,000 gallons @ $ 0.03 /gallon= $ 75,000. The estimated revenue for FY10 is calculated on 3,400,000 gallons @ $ 0.02 /gallon =$ 68,000. Fire Department coverage at the airport has been reduced. FAA regulation Part 139 requires staffing at the airport when aircraft seating 31. passengers are approaching the airport, at the airport and leaving the airport. We are reducing airport coverage to twelve hours per day for eight months per year. The costs associated with this change are shifted to the general fund as it is still necessary to maintain minimum coverage of four firefighters. This reduction to the airport budget and increase to the general fund budget is approximately $ 100,615. Given the present instability in the equity market the estimated FY10 investment income is $ 300,000. This represents a return on investment of approximately 1.76 %. It is difficult to estimate with any confidence the overall rate of return. A range of 0% to 8% is a reasonable projection which would result in a range of $ 0 to $ 1,360,000. The inclusion of the above in the proposed budget results in an estimated FY 10 deficit of $ 653,926. Administration's goal is to within four years make the airport fund. self - sustaining. The prime components of this effort continue to be, development of airport properties, cost savings through reduction of expenses, and further graduated increases in user fees to adjust to the market. Water and Sewer Fund The Water and Sewer Fund does not contain any significant budget changes from the previous fiscal year. There are a few items of note as follows: 1. Estimated interest income is substantially less than FY 07 and FY08, and slightly less than FY09. 2. The budgeted surplus for the fund in FY09 was $ 189,504, the projected FY09 surplus is $ 137,900, and the budgeted surplus for FYI0 is $ 55,416. The water and sewer utilities have absorbed operational cost increases (electricity, natural gas, chemicals & materials) since July 1., 2005, the last utility rate increase. It is important to grow fund balance in this fund in order to replace aging utility system components and construct new utility system improvements. An expense item to support a rate study is not included in this year's proposed budget, but we may wish to consider it this year, or next. I estimate a rate study for the water and sewer utility will cost approximately $ 30,000. Senior Citizen Title 1I1 Grant Fund There are no significant changes to the proposed FY10 budget in this fund. There is an increase in revenues from the State of Alaska of $ 16,396, and a decrease in estimated revenue required from the general fund of $ $ 33,452. Senior Citizen Fund There are no significant changes to the proposed FY10 budget in this fund. This fund continues to operate at a deficit, requiring an annual transfer from fund balance of approximately $ 40,000. Based on the FY10 estimates, less than $ 40,000 will remain in fund balance and beginning in FY11 a contribution from the general fund is expected to be necessary. Thank you for your attention and review of this document. Should you have any questions and /or require additional information, please contact me at your earliest convenience. .10111, 011A, FISCAL YEAR 2010 OF NAI 3 Budge entation Marc General Fund Congregate Housing Permanent Funds Water and Sewer Airport Fund Senior Citizens Title III Senior Citizens Fund Total Budget Com And Contribution Original FY 2009 Budget $12,608,129 482,586 13,000 1,872,316 2,597,808 534,627 192,371 $18,300,837 ison FY 2009 to FY 2010 rom) Fund Balance Current FY 2009 Budget $13,263,933 814,501 13,000 1,905,937 3,349,318 550,159 192,371 Change Contribution m FY2009 Percent To (From) Change Fund Bal. ($1 "` " "'$:t : • -1.23% $ 176,286 (104, - 21.60% 72,999 290,00: 7% 10,000 70,868 53,644 (53,331) ° « •53,926) 18,885 0) 4,372 FY 2010 Budget $12,453,610 378,339 303,000 1,943,184 2,544,477 553,512 1 96,743 $20,089,219 $18,372,865 $72,028 Significant C , . • $ es in Expenditures Total Expenses /Expenditures ' ' creased $72,028 0.39 %. • A decrease of ($667,510) in PE behalf expenditures. • Change in accounting method for Airport La Permanent Fund investment earnings resu $290,000 increase in expenditures. • Citywide utility expenditure increase of $218,438. • 4.50% Cost of Living Adjustment increase to City's salary schedule resulting in a citywid increase of $355,500. Staf l Changes • Airport: reclassified grounds an "$ eld maintenance, range 3 to airport operations spec`bt, range 11. $14,915. • Police: addition of one patrol office positi 16. The new position will replace the vacancy by assigning one of the department's senior offi the Alaska State Troopers Bureau of Highway traffic team. Grant revenue to fund this position in amount of $113,549 is also budgeted. • Library: addition of 260 hours of library aide tim which will fund a 13 week part -time, 20 hour per wee summer library aide position. $4,875. City of Kenai scal Year 2010 Operating Budget Revenue an penditure Summary of All Funds REVENUES 'Taxes II State /Federal I Interest Other I Transfers In 'Total Revenues Genera Special Enterprise Permanent Total I Fund venue Funds Funds All Funds $ 8,059,685 $ $ $- $ 8,059,685 1,043,394 371602 - 1,414,996 300,000 130,000 5,0 1,449,035 1,162,613 12,014,727 313,000 3,366,617 j 320,338 450,227 4,318,446 748,000 5,135, 990 12,840 325,338 313,000 EXPENDITUES /EXPENSES 12,453,610 ' 5,237,916 378,339 1 303,000 Contributions to (from) Fund }Balance /Retained Earnings (438,883) (919 470): (53,001)' 10,000 Add Credit From Depreciation - 126,000 - Projected lapse /encumbrances 615,169 1 269,260 Adjusted Deficit /Surplus 176,286 (650,210)' 72,999 10,000 II 'Beginning Fund Balance/ 'Net Assets j 11,002,117 5,552,434 'Ending Fund Balance/ !Net Assets € $ 11,178,403 Budget Document Page 1 $ 4,902,224 240,022 19,909,589 (1,4 126 884,42 (390,925) 36,704,162 $ 36,313,237 Transfers In 8.78% Other 27.95% Rev es - All Funds $18,:_.; 865 Fund Balance 7.63% Taxe 43.87% Interests State /Federal 4.07% 7.70% Expenditulr- ® All Funds by Object $18, 865 Capital Outlay & Transfers 10.74% Maintenance and Operations 32.78% Sal Be 56.4 GENERS FUND Reven - - General Fund $12,4 610 Central Admin. 9.31% Other Revenue '11.64% Interest 2.41% Fund Bala •.e I- 3.52% Property Tax 20.45% / Transfers 0.02% State Revenue 8.38% Sales Tax 44.26% Significant nges in Revenues • A decrease of ($625,110 in PERS on behalf revenues. • General Fund mill rate reduce by mills to 4.00 mills. Each mill generates $620,900 in ue. • Other revenues increased $200,000 for fin ent of Visitor Center Heating Replacement cla lawsuit. Payment is expected in late 2009. • Interest revenue is down due to the market ra interest that is projected. Current projections ar rate of 2.5 %. • Sales taxes are projected using a 3.0% increase FY2008 actual revenues and have not included an projections for potential revenues generated from the opening of Waimart. BUDGET PROJECTION - GENERAL FUND Original ' I Actual Budget FYt07. I FY2008 FY2009 TOTAL ASSESSED VALUE Projection FY2009 $ 456,240,429 1 284,911. $ 518,700,000 $ 595,097,427 1 MILL RATE; 4 50 4 4.50 II , REVENUES 'Property & Sales Taxes I !Property Tax 2,160,687 ! 2,331 712 I 2,367,2 Sales Tax I 4,631,812 I 5,196 046 1 5,096,000 I I ITotal Property & Sales Taxes ; 6,792,499 I 7,527,758` 7,463,2001 4.50 Budget FY2010 $ 620,900,000 4 00! 2,682,100 ! 2,547,200 51,927 5,512,485 ;State/Federal Revenue: I IPERS Funding I !Municipal Assistance 340,760 397,460 I 460,000 1 455,457 Fish Tax , 132,050 ' 110,000 ' 143,248 ,Other 150,654 ; 147,787 50,000 116,513 I Total State /Federal Revenue 733,792 1,369,122 1,549,612 '; 1,644,830 27 8,059,685 199,744 691,825 ; 929,612 929,6 502 Other Revenue =Licenses and Permits `Ambulance Fees Interest Other i !Total Other Revenue Total Revenues 9,596,941. 11,173,142 F Transfer From Other Funds ,Charges to other funds 998,000 1,064,900 1,310,613 1 1,310 613 !Capital Projects / Special Revenue 15,071 38,318 - Enterprise 10000 31,500 40,000 88,044 !Trust Fund 7,168 2,688 1 3,000 j 3,000 j 'Total Transfers 1 030 239 I 1 137 406 1 353 613 ■ 1 401 657 10,627,180 1 12,310,548 I 11,993,460 ' 12,631,570 97,444 270,790 84,000 I 185,200 243,520 290,058 245,000 265,000 679,371 1 689,485 450,000 250,000 1,050,315 1,025,929 848,035 850,856 2,070,650 2,276,262 1,627,035 1 1,551,056 10,639,847 11,229,913 'Total Revenues and Transfers Budget Document Page 14 8 275, 300,0 1,090 03 1,749,035 10, 852,115 1,159,613 3,000 1,1626131 12,014,728 Expenditur- - General Fund by Function $ ' 453,610 Parks, Recreation & Cultural 13.98% $1,741,356 Public Works 19.08% $2,375,572 Transfers o Operating 1.21% $150,227 Government 0 Public Safety 45.82% $5,705,704 Expenditures eneral Fund by Object $12, 610 Maintenance and Ope rations 27.40% $3,412,089 Capital Outlay & Transfers 126% $406,196 Salaries and Bene 69.34% $8,635,325 13 Significant C es in Expenditures Total General Fund Expenditures — de ; -ased ($154,519) Salaries and Benefits — decrease ($240,432) • A decrease of ($625,110) in PERS on behalf exp==; ' . res. • 4.50% Cost of Living Adjustment increase to the schedule resulting in a General Fund increase of salaries and benefits. • Projecting a 10% increase in health insurance rate. FY were Tess than originally projected resulting in minimal incre total health insurance expenditures. ary Maintenance and Operations — increase $72,396 • Utility increase of $61,827. Capital Outlay & Transfers — increase $13,517 UDGET PROJECTION - GENERAL FUND Original Actual Ac 'tu.aI Budget Projection Budget FY2007 FY2008 NJ FY2009 FY2009 FY2010 EXPENDITURES /APPROPRIATIONS j 1 ,General Government 1,789,004 ?; 2,586,591 I 3,057, Public Safety 1 4,706,966 4,899,317 1 5,323,56 1 Public Works 2,005,101 2,106,810: 2,382,499 Parks, Recreation & Cultural 1,447 474 1 1,404,077E 1,660,596 3,087,475 2,480,748 5,400,270 5,705,705 0,865 j 2,375,574 1,741,356 Total Operating Expenditures 9,948,545 I 10,996,795 12 424,450 l 12,6 Transfers or Non - Operating 107,142 274,641 . 183,679 303.383 658,7 Total Expenditures /Appropriations 10,055,687 i 11,271,436 ! 12,608,129 13,263,933 Total Surplus (Deficit) 571,493 1,039,112 , (614,669) (632,363) Projected Lapse - 5% •, 621,223 ! 630,261 Adjusted Surplus (Deficit) E 571,493 1 1 039,112 6,554 (2,102), ;Beginning Fund Balance 9,393,614 I 9,965,107 i 10,285,517 11,004,219' ;Ending Fund Balance 9,965 107 i 11,004,219 r 10,292 071 11,002,117 Encumbrances _ (166,593)1 (200,645)1 (200,000) (200,000) ,Reserves and Designations (2,801,691); (2,757,050): (2,286,090)1 (2,769,308), ' ;Unreserved Fund Balance ' $ 6,996,823 ,. $ 8,046,524 1, $ 7,805,981 1 $ 8,032,809 ' $ 11,178 (200 2,548 Budget Document Page 14 8,429,9 GENE ' • L FUND $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0- Prominen " - °venue Sources e pa P� p ay Pa P a^ P a P a Ja •)^ Ja^ � N).& ^ .)e r Pa. P' PC P Pa c f) (P p 9 9 p^ $" ct p5 pp Jra\ p F 4 F 1 F Q - F -0O 0' p 0' p 0' `p 0' p 0' p `p <<-<-«- (<444*4 ® Property Tax NO' 6- Q,4' Q`0C. «,. ( A 11. y�p ^p e Sales Tax ❑ Rev. Sharing & Muni Assit. o PERS Aide 16 GENN; L FUND $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 Revenues, Expenditur- .> and Fund Balance • • 6.4 J a� J a\ J • J J J J 69- J a 45� r l oP i �'P l ° °P o ° °P o ° ^ o °�P o ° °P o °�P o °�P o °oP o ° o °oP 41000 ti °^°) 4 4 4 4 4 4 41, 4 � �� 4lti 44 , 4-it 41L 441, 4ll 4Arl, 4 ck Total Revneues to Total Expenditures Fund Balance Q 17 SPECHH.b, REVENUE FUN • Water and Sewer Fund • Airport Fund • Senior Citizen Fund WATE:.. *H D SEWER FUN T PROJECTION - WATER & SEWER FUND Revenues PERS Grant Actual i' Actual FY 2007 F\(2008 Original Manager Budget Projection Proposed j FY 2009 I FY 2009 FY 2010 12,502 $ 57,546 $'1,481 I $ 81,481 $ 25,4571 I Usage Fees i Service Hook -up Residential Water Commercial Water Residential Sewer I Commercial Sewer Total Usage Fees I I Miscellaneous Revenues Penalty and Interest ISpecial Assessment Principal }Sale of Assets `Interest Earnings ;other ITotal Miscellaneous Revenues .,....E 'Total Revenues 11,800. 4,000 ; 5,000 000 5,000 312,997 316,100 313,000 ; g I 319,2601 141,050 i 140,601 140,000 142,800' 909,599 3 914,876 1 915,000 9 ° '* 000 I 369,014 I 385,588 r 386,000 386, s 4 1,744,460 1 1,761,165 1,759,000 1,759,0 26,432 26,164 26,000 26,000 3,000 159,906 167,344 80,000 60,000 3,487 2,636 , 3,000 3,000 Budget Document Page 100 192,825 196,144 109,000 89,000 1,949,787 2,014,855 1,949,481 1,929,481 1,880 Significant • nges in Revenues • A decrease of ($56,024) i .N' ERS on behalf revenues. • Interest revenue is down due to the rate of interest that is projected. projections are a rate of 2.5 %. ET PROJECTION — WATER & SEWER FUND Expenditures i Water Department 550,378 1,152,285 6 640,916 679,172 i Sewer Department 465,938 290,680 399,6 419,711 373,579 Wastewater Treatment Plant Department 690,900 723,942 839,721 10 . 890,436 Original Manager Actual Actu: Budget 1 Projection Proposed FY2007 1 FY2008 FY 2009 FY2009 1 FY2010 ; I Total Expenditures 1,707,216 2,166,907 1 1,872,316 t ee i e Contribution To/(From) Fund Balance: 242,571 (152,052) 77,165 ', 23, ! ; i Projected Lapse (6°70) 1 - - 112,339 ; 114,356 43,187 ; Adjusted (Deficit)/Surplus 189,504 ; 137,900 1 Beginning Fund Balance 1,800,329 2,048,441 2,277,632 ; 1,896,3E39 ;Residual Equity Transfers 5,541 - Ending Fund Balance ; $ 2,048,441 , $ 1,896,389 $ 2,467,136 1 $ 2,034,289 $ 2,08 Budget Document Page 100 Significant C 1 es in Expenditures Total Water & Sewer Fund Expen • res — increased $70,868 Salaries and Benefits — decrease ($55,5 • A decrease of ($56,024) in PERS on behal ?. •enditures. • 4.50% Cost of Living Adjustment increase to schedule resulting in a Water and Sewer Fun $25,207 in salaries and benefits. Maintenance and Operations — increase $100,081 • Utility increase of $79,349. • Operating and Repair Supplies increased $14,000 for incl of fuel in department budget for FY2010. y's salary se of Capital Outlay & Transfers — increase $26,300 • Replace and outfit department pick -up $34,000 • Purchase spare water pump for pump house $26,000 AIRPO'H FUND t DGET PROJECTION - AIRPORT FUND Revenues State & Federal Grants Total Usage Fees Original 1 Man ger r"----ketual 1 Actual Budget Projection 1 Proposed ' FY 2067\1 FY 2008 FY 2009 FY 2009 FY 2010 l 40,055 , $ 66,1 68,800 $ 68,800 $ 26,782 137,471 156,398 00 330,300 345,800 Total Rents and Leases 392,392 403,802 408,000 Miscellaneous Penalty and Interest Interest on Investments 1Other Total Miscellaneous Total Terminal Revenue Transfers In 'General Fund Capital Project Fund 'Airport Land Trust Fund Total Transfers in Total Revenues Budget Document Page 111. 954 432,000 2,063 2,236 I 3,000 935,867 971,333 610,000 32,057 2,000 969,987 973,569 1 615,000 68,000 tat 370,652 403,862 492,800 518,300 I 110,000 9,500 1 1,000 152,536 14,075 1. 11,540 10,000 10,000 30 14,075 1 274,076 19,500 11,000 1,924,632 2,277,877 1,899,400 1,428,354 1,737, Significant nges in Revenues • A decrease of ($42,018) in "u RS on behalf revenues. • Usage fees increase $50,500 due t planned 10% increase in landing fees decrease in the fuel flowage fee from $ per gallon to $0.02 per gallon. • Interest on investments is down due to a change in accounting method and due to market performance. Airport Fund — rest on Investments ® FY2009 switch to percent of market va :k� method (POMV) for determining funds available for operations 1 the Airport Land Sales Permanent Fund (APLSPF). ® Due to market conditions and performance the ex eturn for FY2009 is $0, a decrease of $600,000 from budget and FY2010 is projected to be $300,000. • A change in accounting method is employed as earning the APLSPF were previously reported in the Airport Fun are now shown in the APLSPF and an operating transfe recorded to transfer the earnings available under the PO method. The result will be Interest on Investments in FY20 and future years to be significantly lower than historical amoun and Transfers In (Transfer from the APLSPF) seeing a simila increase as compared to historic amounts. DGET PROJECTION — AIRPORT FUND Original Actual Actual Budget FY 2007 1 2008 FY 2009 Expenditures Airport Terminal 1 Airport Airfield 1 Airport Administration Airport Other Buildings and Areas Airport Training Facility Total Expenditures Contribution To /(From) Fund Balance: ojected Lapse (6 %) ' 1 1 Adjusted (Deficit) /Surplus Beginning Fund Balance 1 Ending Fund Balance Budget Document Page 111 -112 440,551 1,377,948 211,235 445,041 109,723 Projection FY 2009 Manager Proposed FY 2010 478,847 ; W 5,312 j 535,851 560,304 ,475,116 `. 1 ,50 , 1,463,726 214,171 '. 310,7• 312,357 1 266,061 159,973 i 158,277 s 74 1 171 925 74,046 84,000 82,460 2,584,498 « 2,402,153 ! 2,597,808 i 3,349 (659,866)1 (124,276)1 (698,408)1 (1,920,96 i 5,936,075 i 5,276,209 4,826,174 5,151,933 i 1 $ 5,276,209 I $ 5,151,933 "s $ 4,283,634 $ 3,431,928 $2 77 ®j ; 155,868 200,959 (542,540) (1,720,005) Significant C ' • •es in Expenditures Total Airport Fund Expenditures - in ased $70,868 Salaries and Benefits — decrease ($2,630) • A decrease of ($42,018) in PERS on behalf expenditures. • 4.50% Cost of Living Adjustment increase to the City's salary schedul Fund increase of $18,694 in salaries and benefits. • Reclassified grounds and field maintenance, range 3 to airport operations 11. $14,915. in a Airport Maintenance and Operations — increase $73,799 • Utility increase of $65,910. Capital Outlay & Transfers — decrease ($124,500) • Transfer to the City's General Fund for Central Administrative charges decrea ($137,200) due to reducing the allocation of fire personnel to the Airport by one F ($90,800). This change is possible due to the new aircraft being operated by commerci carriers of the Airport. Other City administrative costs are allocated based on expenditu level. The overall decrease in expenditures in the Airport and increase in other City Fund accounts for the remainder of this decrease. e SENIOR C EN FUND ET PROJECTION - SENIOR CITIZEN FUND Revenues 'State Grants USDA Grant € KPB Grant United Way Rents and Leases Donations Meal Donations Transfer from Borough Grant Fund Transfer from General Fund In -Kind Support Total Revenue Expenditures Senior Citizen Access I Congregate Meals Home Meals i Senior Transportation Total Expenditures CITIZENS TITLE III GRANT FUND Original Manager Ac l 1 Actual Budget Projection Proposed FY 200t-. FY 2008 FY 2009 = FY 2009 FY 2010 $ 108,942 $ 117,093 "4133,096 $ 137,432 ' $ 153,828 10,706 I 12,187 1 fir 000: 12,000 ! 12,000 - 1 1.04 1�: 115,337 , 115,337 35,00 34,400 34,400 17,000 , +00 17,000 15,000 0,000 Contribution To /(From) Fund Balance: Beginning Fund Balance Ending Fund Balance Budget Document Page 130 2,500 - 50,914 ` 46,678 50,000 1,062 30,855 - s - i 182,679 182,67 10,850 10,850 182,474 1 220,163 534,627 1 558,848 54,610 68,688 199,868 211,684 199 61,761 65,364 142,909 ! 146,205 147,1 56,945 70,411 ( 107,708 j 108,128 118,70 9,158 '„ 17,671 1 84,142 k 84,142 88,246 182,474 222,134 ! 534,627 I 550,159 553,510 (1,971)1 $ (1,971), $ 8,689 ' (6,718) (1,971)1 6,718 $ 6,718I$ - s 11 ant Changes in Revenues xpenditures Total Revenues - increase • '12,165 • State Title III Grant funds are proj=z d to increase $20,732 over the FY09 Original Budge • Donations are projected at $15,00+x. Y09 projections were $0. • Grant funds received from the Kenai Pe Borough increase $10,485 over FY09 0 Budget. • Transfer from the General Fund decreas ($33,452). Total Expenditures - increased $8,297. BUDGET PROJECTION - SENIOR CITIZEN FUND 025 - SENIOR CITIZENS FUND Revenues PERS Grant KPB Grant United Way Choice Waiver State Grants MAAST Grant State Grants - Other Rents and Leases Donations Other Transfer from General Fund Total Revenue Expenditures 1 Senior Center Choice Waiver MAAST Grant Total Expenditures Contribution To /(From) Fund Balance: Beginning Fund Balance Ending Fund Balance Budget Document Page 141 Ac I Actual FY 2007 FY 2008 Original Budget FY 2009 1 I Manager Projection Proposed FY 2009 g FY 2010 $ 4,305 $ 14,835 95,352 104,852 21,000 35,000 133,047 126,391 123,000 19,282 16,144 24,631 8,359 $ 8,359 $ 2,669 I 3,000. 123,000 49,996 13,394 18,064 23,328 14,537 6,878 117 32,142 36,000 348,728 415,936 155,990 27,866 191,813 ' 271,186 111,553 ': 125,162 167,740 3 167,740 19,282 [ 16,144 ; 24,631 3 24,631 168,877 322,648 ? 412,492 192,371 27,866 192,371 196,743 I _ 1 26,080 ` 3,444 ? (36,381)! (36,381), (43208)1 3 � s 86,356 112,436 1 59,783 115,880 79,499 $112,436 $ 115,880 $ 23,402 $ 79,499 ; $ 36,291 icant Changes in Revenues xpenditures Total Revenues - decreased ($ , &! 55) • State MAAST Grant funds are projected to ease $3,235 over the FY09 Original Budget. • A decrease of ($5,690) in PERS on behalf _ ` and expenditures. Total Expenditures -- increased $4,372. CON' GATE HOUSING ' ND BU ROJECTION - CONGREGATE HOUSING FUND Revenues Rents and Leases ! Interest on Investments Miscellaneous ;Total Revenues 1 Original Manager Actual Actual Budget 1 Projection Proposed FY 2007 2008 FY 2009 FY 2009 FY 2010 $ 279,102 j $ 299,563. 19,000 G $ 319,000 i_ $ 319,000 29,312 30,371 �r '0 ' 7,500 ` 5,000 714( 2,3421 3. 3,2181 1,338E 309,128 332,2761 342,21: s. •,718 325,338 374,688 I 401,066 1 Expenses 482,586 8 I Net Income (loss) (65,560); (68,790); (140,368); (484,78 Beginning Retained Earnings 483,769 + 542,296 I 516,145 , 598,805 Credit for Depreciation 124,087 ? 125,299 126,000 I 126,000 3 I Ending Retained Earnings Budget Document Page 152 542,296 ' $ 598,805 ` $ 501,777 $ 240,022 $ leant Changes in Revenue Expenses Total Revenues - decreased ($ x.:;880) • Interest revenue is down due to the market ; of interest that is projected. Current projections are a rate of 2 Revenue is also down due to the decrease in cash balanc• `ing form capital projects initiated in FY2009. Total Expenses - decreased ($104,247) • Utilities increased $8,483. • Repair and Maintenance decreased ($76,125). • Transfer to the General Fund for excess cash balance o $500,000 not required ($40,000). PERMAN T FUNDS • Airport 1 ,and Sale Perman- and • General Land Sale Permanent GET PROJECTION - AIRPORT LAND SALE PERMANENT FUND IFUND 082 -52 Airport Land Sales Permanent Fund <i €Revenues ;Acct. 36610 Interest on Investments $ - $ j Acct. 36645 Interest on Land Sale Contracts 14,075 11,540 I 10,00 Acct. 33640 Land Sales _ 11,313 5,623,413 Total Revenue I Original Council Actual 'Actual Budget FY2009 '. Approved FY2007 08 i FY2009 Projection FY2010 ;Expenses ! !Transfer to Airport Land System Fund ;Contributions To /(From) Fund Balance Beginning Fund Balance E_{ I' (Ending Fund Balance $ 300,000 10,000 10,000 25,388 5,634,953 10,000 310,000 14,075 11,540 10,000 10, 1,313 11,766,312 5,623,413 11,777,625 13,397,62 Budget Document Page 157 $11,777,625 `: $17,401,038 $13,397,625 17,401,038 $ 17,401,038 GET PROJECTION - GENERAL LAND SALE PERMANENT FUND 1 I Original Council ■ Actual Ac FY2007 FY2008�I FY2009 Projection FY2010 Budget FY2009 Approved i 'FUND 081 -52 General Land Sales Permanent Fund (Revenues !Acct. 36645 Interest on Land Sale Contracts $ iAcct. 33640 Land Sales 7,168 I $ 2,688 67,571 10,407 ITotal Revenue Expenses 74,739 ? 13,095 j Transfer to General Fund Budget Document Page 157 3.000 3,000 ; $ 3,000 3,000 3,000 7,168 2,688 ` 3,000 iContributions To/(From) Fund Balance 67,571 10,407 ;Beginning Fund Balance 1 2,430,573 2,498,144 2,507,144 2,508,551 $ 2,508,551 1 $ 2