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Home My WebLink About2013-04-11 Airport Commission PacketKENAI AIRPORT COMMISSION APRIL 11, 2013 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. AGENDA 1. CALL TO ORDER AND ROLL CALL 2. AGENDA APPROVAL 3. APPROVAL OF MEETING SUMMARY — February 14, 2013 ... 4. PERSONS SCHEDULED TO BE HEARD 5. UNFINISHED BUSINESS a. Update 13`h Annual KPAF — Airport Manager .................... 6. NEW BUSINESS Pg 3 .......Pg 5 a. Discussion — FY14 Airport Budget ............................... .............................Pg 9 7. REPORT a. Commission Chair b. Airport Manager C. City Council Liaison 8. NEXT MEETING ATTENDANCE NOTIFICATION —May 9, 2013 9. COMMISSIONER COMMENTS AND QUESTIONS 10. PERSONS NOT SCHEDULED TO BE HEARD 11. INFORMATION ITEMS a. February 2013 Airport Managers Report .................... .............................Pg 37 b. March 2013 Airport Managers Report ........................ .............................Pg 38 C. 2013 Enplanement Report ............................................................ .......... Pg 39 d. February 2013 Alaska Aviation Fact Sheet ................ .............................Pg 40 12. ADJOURNMENT PLEASE CONTACT US IF YOU WILL NOT BE ABLE TO ATTEND THE MEETING: COREY -- 283 -8231 OR MARY -- 283 -7951 THIS PAGE IS INTENTIONALLY LEFT BLANK KENAI AIRPORT COMMISSION FEBRUARY 14, 2013 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. CHAIR HENRY KNACKSTEDT, PRESIDING MEETING SUMMARY 1. CALL TO ORDER AND ROLL CALL Chair Knackstedt called the meeting to order at 7:00 p.m. Roll was confirmed as follows: Commissioners present: Chair H. Knackstedt, J. Bielefeld, G. Feeken, K. Roser, A. McClure Commissioners absent: J. Zirul, L. Porter Staff /Council Liaison present: Airport Manager M. Bondurant, Assistant E. Shinn, Council Member B. Gabriel A quorum was present. Knackstedt requested 6 -a be moved before 5 -a. MOTION: Commissioner Bielefeld MOVED to approve the agenda as amended and Commissioner Feeken SECONDED the motion. There were no objections. SO ORDERED. 3. APPROVAL OF MEETING SUMMARY — January 10, 2013 MOTION: Commissioner Bielefeld MOVED to approve the meeting summary of January 10 and Commissioner McClure SECONDED the motion. There were no objections. SO ORDERED. 4. PERSONS SCHEDULED TO BE HEARD — None. 5. UNFINISHED BUSINESS a. Airport Regulations Airport Manager Bondurant reported all corrections and updates had been made. General discussion occurred and other changes were suggested. MOTION: Commissioner Bielefeld MOVED to accept the updated Airport Regulations with the changes discussed. Commissioner Roser SECONDED the motion. There were no objections. SO ORDERED. b. 13" Annual Kenai Peninsula Air Fair Bondurant noted due to notification the Air Force Band of the Pacific would not be available, the commission discussed recommendations on alternate music options. Page 3 of 40 6. NEW BUSINESS a. Review of Structure, Duties, Procedures, and Responsibilities City Clerk Sandra Modigh addressed the Commission regarding membership, scheduling, attendance and duties. Information would be compiled and returned to the Commission for their review. REPORT a. Airport Manager — Bondurant reported the tree removal project was still under review; FY14 budget was drafted; and, she would be attending the Kenai Industry Education Forum to promote the Industrial Park. b. Commission Chair — Knackstedt reported the Comprehensive Plan draft was available online and a work session had been scheduled for February 26, 2013. C. City Council Liaison — Council Member Gabriel reported on the February 6 Council meeting. 8. NEXT MEETING ATTENDANCE NOTIFICATION — March 14, 2013 No commissioners requested an excused absence from the March 14 meeting. 9. COMMISSIONER COMMENTS AND QUESTIONS — None. 10. PERSONS NOT SCHEDULED TO BE HEARD — None. 11. INFORMATION ITEMS a. January 2013 Enplanements b. January 2013 Airport Manager's Report 12. ADJOURNMENT MOTION: Commissioner Bielefeld MOVED to adjourn and Commissioner McClure SECONDED the motion. There were no objections. SO ORDERED. There being no further business before the Commission, the meeting was adjourned at 8:52 p.m. Meeting summary prepared and submitted by: Hall, CMC, Deputy City Clerk Page 4 of 40 AIRPORT COMMISSION MEETING FEBRUARY 14, 2013 PAGE 2 .a- "SerVC *Wd1 oreatP'r'Xenailftvi+, vine na 305N.W81OWSESURE200 KENAI, ALASKA 99611 TELEPHONE 907,283.7951 Municipal Airport Memo To: Airport Commission From: Mary Bondurant — Airport Date: April 3, 2013 Subject: 13`h Annual KPAF- Military Participation Please review the attached emails from the Air Force and the Army, denying a request for military participation during the 130' annual KPAF. I also received a call from the USCG - Kodiak on Monday, April 1 regretfully denying the request. We are looking for ideas or suggestions on how to fill the void of the Military Appreciation Event and the popular military static displays. If you have any questions, please contact me at 283 -7951. Attachment www.kenaiairport.com Page 5 of 40 From: Gonzalez, Kris M CIV (US) [kris.m.gonzalez.civ @mail,mill Sent: Thursday, March 28, 2013 5:34 AM To: Mary Bondurant Cc: guy.hayes @alaska.gov; Ramsey, Maureen C CIV (US) Subject: Declined: Army aircraft static display support for 08 June 2013 Annual Kenai Peninsula Air Fair in Kenai, Alaska Good morning Ms. Bondurant, This email serves as official notification that the following request for Army aircraft static display support is declined: 08 June 2013 Annual Kenai Peninsula Air Fair in Kenai, Alaska Given the sequestration and the on -going overall budget uncertainty, the Department of Defense has taken a number of steps to reduce spending. This includes the suspension of all aerial demonstrations, including flyovers, jump team demonstrations, aircraft static displays and participation in civilian air shows and military open houses. The suspension is effective April 1, 2013. The Army's aviation force is stressed and these steps were taken to conserve personnel, aircraft, and flying hours in order to meet operational requirements and pre - deployment training. while the Army recognizes aerial demonstrations have high value for recruitment, public engagement and the demonstration of national pride, these benefits were weighed carefully against the Army's ability to support the warfight and wartime demands placed on these assets. Therefore, requests for Army aviation support to events in the public domain will not be approved. This policy also applies to Active, Army National Guard and Army Reserve units. Very Respectfully, Kris Kris Gonzalez Office of the Chief of Public Affairs Army Outreach Division 1500 Army Pentagon, 1D470 Washington, D.C., 20310 -1500 Office: 703 - 695 -6447 BB: 571 -594 -0422 Cell: 571- 882 -4606 Kris.M.Gonzalez.civ(@mail.mil Page 6 of 40 Mary Bondurant From: Erica Shinn ient: Monday, March 11, 2013 8:08 AM To: Mary Bondurant Subject: FW: Jun 8 - 2013 Kenai, AK Request for Military Aerial Support (4EAC9ACC505) From: Aerial Event System [mailto: aerial .events(o)pentagon.af.mil] Sent: Monday, March 11, 2013 7:33 AM To: Erica Shinn Cc: aerial.eventsOpentagon.af.mil Subject: Jun 8 - 2013 Kenai, AK Request for Military Aerial Support (4EAC9ACC505) Thank you for your request for Air Force aviation support during Kenai Peninsula Air Fair on 08 Jun 2013 in Kenai, AK. On Friday, 1 March 2013, the Department of Defense has directed the Air Force, and all the services, to cancel aviation support to public events for at least the remainder of the fiscal year. Additionally, the Air Force will stand down the Thunderbirds aerial demonstration team. Unfortunately, this decision means that the Air Force will not be able to determine your 2013 aerial events request eligible for Air Force support. Active -duty, Reserve and Guard units will cease all aviation support to the public. This includes the cancellation of support to all air shows, tradeshows, and flyovers (including funerals, military graduations). 4dditionally, the Air Force will cancel the Thunderbirds' entire 2013 season beginning April 1. The cancellation of aviation support is a direct response to the Air Force's need to reduce flying hours by as much as 18 percent, or approximately 203,000 hours. Because aerial support to public events are flown using already allotted flying hours, there is no additional cost to the taxpayers. The limited flying hours remaining will now be prioritized to support only flying that is in direct support to combat readiness. Longer, cross - country flights, will be drastically scaled back, and thus limit our ability to fly over community events. Training missions will be shorter and focused on meeting the basic acceptable tactics to maintain proficiency. Engaging with the public is a core Air Force mission and communicating and connecting with the public is more important today than ever before. The Air Force will continue to seek ways to remain engaged with the American public. For more information, please contact Air Force Public Affairs at 703 - 695 -9664 or aerial.events @pentaaon.af.mil, or visit www.af.mil for additional stories and information. Page 7 of 40 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 8 of 40 "Sew+•+��Gs' K.P,vuz.+� �e,►tiivraula:' nai 305 N. WILLOW Sr. SUITE 200 KENAI, ALASKA 99611 TELEPHONE 907,2637951 Airport FAX 907.283 -=7 Memo To: Airport Commission From: Mary Bondurant — Airport Manage Date: April 3, 2013 Subject: FY14- Airport Budget For your review are the Airport budget pages from the July 1, 2013 — June 30, 2014 City of Kenai budget document. The City Manager will be on hand to discuss the proposed Airport budget. If you have any questions, please contact me at 283 -7951. attachments www.ci.kenai.ak.us. Page 9 of 40 ^`t KENA19 ALASKA March 27. 2013 "Villaye with a Past, G10` with a Future FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014 Mayor, Council Members, City of Kenai Citizens: In accordance with the provisions of Chapter 7.25 of the Kenai Municipal Code, the Fiscal Year 2014 (FY14) Operating Budget of the City of Kenai is hereby presented for your approval. The budget contains the operating budgets for the General Fund; two enterprise funds (Congregate Housing Fund and Capital Projects Management Fund); four special revenue funds (Personal Use Fishery Fund, Water and Sewer Fund, Airport Fund, and Senior Citizens Fund); the Debt Service Fund, and two permanent funds (General Land Sales and Airport Land Sales). Budget Comparison FY 2013 to FY 2014 And Contribution To (From) Fund Balance Change Original Current FY 2014 Percent FY 2013 FY 2013 Proposed Fund Sal. Buda et Budget Budge General Fund $15,094,517 $17,428,010 $15,210,754 Congregate Housing 439,693 450,263 472,508 Capital Projects Management 109,259 109,259 102,910 Permanent Funds 1,175,479 1,175,479 1,228,304 Water and Sewer 2,251,154 2,251,333 2,643,885 Airport Fund 2,735,110 2,759,438 2,827,236 Senior Citizens Fund 835.625 842,119 898,853 Personal Use Fishery Fund - 483,152 Debt Service Fund 175.648 175.848 175.848 Change Contribution From FY2013 Percent To (From) Original Change Fund Sal. $116,237 0.77% $(660,940) 32,815 7.46% (122,028) (6,349) -5.81% 117,047 52,825 4.49% 517,077 392,731 17.45% (141,275) 92,126 3.37% 218,052 63,228 7.57% (136,807) 483.152 2.750 1.56° - Total S22.B1fi.685 $ 5.to1 748 824.046.200 S1 229 51 F, 539% c! 088741 GENERAL OVERVIEW The total budget for the City is $24,046,200, which is an increase of $1,229,515 or 5.39% from last year. Several factors contributing to the increase include staffing changes, a cost of living adjustment to the City's salary schedule, an increase in Fire and Police Department overtime, an increase in employee health care costs, increased utility costs, and the establishment of a new fund to account for annual operations of the Personal Use Fishery. Page 10 of 40 This budget includes a 2,00% cost of living increase to the salary schedule. The 2.00% increase is based upon the increase in Anchorage's Consumer Price Index for 2012 as there is no such index available for the City or Kenai Peninsula Borough. The budgetary impact of the cost of living increase is $237,501 for all funds comprised of $152,516 in employee pay increases and $84,985 in associated benefits. The following personnel changes are also included: Police Department: The budget for departmental overtime has always been reduced in anticipation of staffing vacancies resulting from employee initiated changes such as retirement or career changes. In the past these employee initiated changes have provided sufficient funds in regular wages to cover overages in department overtime. This trend appears to be ending due to the lower average age of department staff. As a result overtime has increased this year to the department's expected level with no anticipated reduction for employee vacancies. The estimated cost of this new level of overtime with associated benefits is $57,210. Fire Department: To enhance the department's response capabilities, each Firefighter is trained to drive and operate all department apparatus. The department is requesting this additional level of responsibility be compensated with a new qualification pay item entitled DriverlOperator Qualified. Driver/Operator Qualified firefighters would receive a one pay range increase from range 13 to range 14. The estimated cost of this new qualification pay item with associated benefits is $28,693. Each of the last two fiscal years, the Department's budget has required supplemental funding as overtime expenditures have risen due to staffing changes and greater call volume. The City's Administration carefully analyzed the Department's overtime expenditures to determine the proper amount for future budgets. The increased level being budgeted is expected to be sufficient under current operations. The estimated cost of this new overtime with associated benefits is $138,203. Senior Center: Increase the Kitchen Assistant position from 35 hours per week to 40 hours due to growth in meals served. The estimated cost of the increased hours with associated benefits is $5,398. Increase half -time Meals Driver position from 20 to 24 hours per week due to increased demand for delivered meals. The estimated cost of the increased hours with associated benefits is $5,033. Due to the increase in meals served and delivered, the department is requesting an additional 14 hour per week Meals Driver. The estimated cost of this new position with associated benefits is $12,573. Water & Sewer: As a result of increased demands with the addition of the new Water Treatment Facility, the department is requesting an additional Water and Sewer Operator. The estimated cost of this new position with associated benefits is $102,548. Page 11 of 40 COLA @ 2.0% Police Department Overtime Increase Driver /Operator Qualified Qualification Pay Fire Department Overtime Increase Increase Kitchen Assistant to 40 hours /week Increase Meats Driver to 24 hourstweek Addition of 14 hourAveek Meals Driver Addition of Water Sewer Operator Total 57,210 - - - - - - 57,210 28,693 - - - - - - 28,693 138,203 - - - - - 138,203 5,398 - 5,398 5,033 - - 5,033 12,573 - - 12,573 102.548 - 102.548 GENERALFUND The General Fund budget of $15,210,754 is up $116,237 or 0.77% from last year. This includes an increase of $437,406 in Personal Services, an increase of $2,653 in Maintenance and Operations and a decrease of $323,822 in Capital Outlay and Transfers. Revenues and transfers in for FY14 are projected to be $14,549,814 up $120,653 compared to the FY13 adopted budget. Sales tax projection for FY14 is $6.8 million, which is $100,625 more than FY13 budgeted revenues. Sales tax revenue is projected to increase 1.5% over FY13 estimated amounts. Property taxes, absent the new Cook Inlet Natural Gas Storage Alaska (CINGSA) facility, are up 0.8% on average. The assessed, real property value of CINGSA is approximately $124.15 million resulting in an overall 6.89% increase in real property values. Oil and gas (AS 43.56) property increased $19.3 million, 62.33% in value. Of the total $50.2 million in oil and gas (AS 43.56) property, $23.1 million is from production and office facilities, $3.1 million represents transmission pipelines, and $24.0 million is drilling rigs and the assets of oifeld service companies. The $24.0 million of assessed value resulting from drilling rigs and oilfield service company assets should be closely monitored as it is transient in nature and could be absent from the property rolls in future years. Overall property tax values are estimated to have increased 9.72% an increase of $249,927 with no mill rate change. The FY13 Community Revenue Sharing program received an additional $25.0 million from the legislature an act that has not yet been repeated for FY14. As a result, the City expects to receive $190,138 less than the FY13 budgeted amount of $623,676. A Page 12 of 40 Summary of Personnel Changes by Fund Personal Capital Use Water B Senior Congregate Project General Fishery Sewer Airport Citizen Housing Management Fund Fund Fund Fund Fund Fund Fund Total $196,807 $2,865 $15,389 $12,368 $7,746 $940 $1,386 $237,501 57,210 - - - - - - 57,210 28,693 - - - - - - 28,693 138,203 - - - - - 138,203 5,398 - 5,398 5,033 - - 5,033 12,573 - - 12,573 102.548 - 102.548 GENERALFUND The General Fund budget of $15,210,754 is up $116,237 or 0.77% from last year. This includes an increase of $437,406 in Personal Services, an increase of $2,653 in Maintenance and Operations and a decrease of $323,822 in Capital Outlay and Transfers. Revenues and transfers in for FY14 are projected to be $14,549,814 up $120,653 compared to the FY13 adopted budget. Sales tax projection for FY14 is $6.8 million, which is $100,625 more than FY13 budgeted revenues. Sales tax revenue is projected to increase 1.5% over FY13 estimated amounts. Property taxes, absent the new Cook Inlet Natural Gas Storage Alaska (CINGSA) facility, are up 0.8% on average. The assessed, real property value of CINGSA is approximately $124.15 million resulting in an overall 6.89% increase in real property values. Oil and gas (AS 43.56) property increased $19.3 million, 62.33% in value. Of the total $50.2 million in oil and gas (AS 43.56) property, $23.1 million is from production and office facilities, $3.1 million represents transmission pipelines, and $24.0 million is drilling rigs and the assets of oifeld service companies. The $24.0 million of assessed value resulting from drilling rigs and oilfield service company assets should be closely monitored as it is transient in nature and could be absent from the property rolls in future years. Overall property tax values are estimated to have increased 9.72% an increase of $249,927 with no mill rate change. The FY13 Community Revenue Sharing program received an additional $25.0 million from the legislature an act that has not yet been repeated for FY14. As a result, the City expects to receive $190,138 less than the FY13 budgeted amount of $623,676. A Page 12 of 40 Shared fisheries tax is projected to decrease $75,000 from FY13 based upon a weaker salmon year in 2012. Revenues associated with Personal Use Fishery fees have been removed from the General Fund and now exist as the funding source for the newly created Personal Use Fishery Special Revenue Fund. The result is a decrease of $307,000 in General Fund revenues compared to FY13 amounts. The Kenai Community Library has over 11,000 registered borrowers. Approximately 65% of those registered borrowers do not live in the city limits. This budget includes a new fee of $20.00 for non - residents of the City for full access to the collection. As part of the new comprehensive plan, Kenai residents were surveyed and supported a charge for non - residents to use the library. This adoption of such a fee was also recommended by Kenai Library Commission. The modest fee will help the library continue to provide service to the broader community. The fee is projected to generate $40,000 in revenue for FY14. Projections of General Fund revenues and expenditures for the three years following this budget year are included. Property values and sales tax are forecasted to increase at 3.0 %. Other revenues are projected to grow 3.0% annually. Expenditures are forecasted to increase 3.0% for all years. These future projections are purely estimates, the actual changes in the budget will depend on a number of factors that are not predictable with a high degree of certainty. The City maintains two enterprise funds. Congregate Housing Fund The Congregate Housing Fund's budget increased $32,815 (7.46 %) to $472,508 from FY13 budgeted amounts. The Congregate Housing Fund's revenue sources are rent and interest. Using the results of a rent study commissioned by the City to determine the market value of rents for comparable units, the City is implementing a plan which will raise rents $50.00 per unit in FY14 and by a percentage equal to Anchorage's Consumer Price Index for the preceding calendar year to a maximum of $35.00 per unit in subsequent until each unit reaches fair market value as determined by a rate study to be completed on years ending in zero or five. This increase will result in a projected increase of rental revenue in FY14 of $22,750. Even with this increase, rents will only be funding 7.9% of the facilities depreciation. Depreciation represents the accumulation of funds for the replacement and upgrade of major building components to assure the facility is available and in its current condition for future generation of Kenai seniors. Capital Project Management Fund The Capital Projects Management Fund was established to manage the significant number of major capital projects of the City. The single employee of the fund has combined project management duties with Public Works Manager duties. The FY14 budget once again includes only half of the positions costs. The Fund's intent remains to recover the cost of managing projects through an hourly billing rate. The FY14 billing rate is estimated at $238.31 per hour. Page 13 of 40 SPECIAL REVENUE FUNDS The City maintains four special revenue funds Personal Use Fishery Fund The proposed budget includes a new fund for FY14. The Personal Use Fishery Fund will account for the operational costs of the City protecting the assets of its residents from the State of Alaska's Personal Use Fishery that brings tens -of- thousands of Alaskan's to the beaches and City Dock of Kenai each July 10 — 31. Departments providing direct operations support include Public Safety (Police, Fire, and Communications), Streets, the City Dock, and Parks, Recreation and Beautification. Indirect support is provided by many City departments and will be recovered through an administrative service fee. The proposed administrative service fee is the same fee charged to all other special revenue and enterprise funds of the City. User fees for the 2014 Personal Use Fishery are proposed to increase. The increased fees will provide funding for a new management plan designed to reduce the amount of fish waste on the City's north and south beaches. Fees for the fishery are set to assure the residents of Kenai are not bearing the cost of this State imposed fishery. Proposed fees for the 2014 with a comparison to 2013 rates are as follows: FY13 FY14 Parking (North & South Beaches) $15.00 $20.00 Camping (North & South Beaches) $20.00 $25.00 Dock Parking $10.00 $15.00 Dock Launch and Parking $20.00 $25.00 Airport Special Revenue Fund The Airport Fund budget is $2,827,236, an increase of $92,126, 3.37% from last year. The fund is projected to have an adjusted surplus of $331,207. This budget includes increased revenues resulting from a 2% increase in landing fees and tenant rents. This increase is equal to the change in Anchorage's Consumer Price Index for 2012 and is a conservative estimate of the upcoming change in landing fee costs. The City is in the process of renegotiating its airport operating agreements with its two signatory airlines which includes a rate comparison with other similar airports. The actual increase in terminal rents and landing fees may be higher as the City intends for its terminal rents and landing fees to be comparable with market rents at other comparable airport. One of the primary revenue sources of the Airport Fund are earnings from the Airport Land Sale Permanent Fund ( ALSPF). Due to excellent performance of the ALSPF under the new management method employed in late 2009, the revenue received from the ALSPF is projected to be $1,090,572. Fuel flowage is a fee for fuel bought and sold on the airport. Currently a $0.02 per gallon fuel flowage fee is charged for all non -bulk (fuel into the wing of aircraft) fuel sold on the airport. In addition there is a $0.02 fuel dispensing fee charged for all fuel sold by non - signatory sellers. The fuel dispensing fee is charged on both bulk and non -bulk fuel sales. The proposed budget for FY14 makes changes to the fuel flowage and fuel dispensing fee schedule. The proposed schedule creates different fee levels based upon the airport status (signatory vs non - signatory) for both the seller and buyer of fuel. This new matrix recognizes the investment of both Page 14 of 40 signatory sellers and buyers on the airport in the form of reduced fees. The following is a proposed matrix: Vendor Status Customer Status Signatory Signatory Signatory Non - Signatory Non - Signatory Signatory Non - Signatory Non - Signatory Non -bulk Fuel Flowage Fee Per Gallon Present Proposed $0.02 $0.03 $0.02 $0.06 $0.04 $0.05 $0.04 $0.08 Bulk Fuel Flowage Fee Per Gallon Present Proposed $0.00 $0.03 $0.00 $0.06 $0.02 $0.05 $0.02 $0.08 This proposed change in fuel flowage and dispensing fees is estimated to increase revenue from these fees by $30,000 (50 %) in FY14. The FY2014 budget represents the fourth consecutive year the Airport Fund is projected to have a surplus. Water & Sewer Special Revenue Fund The Water and Sewer Fund appropriation of $2,643,885 is up $392,731, 17.45% from FY13 and the Fund is expected to produce an adjusted deficit of $12,222. The FY14 proposed budget continues implementation of rate increases recommended by the FYI water and sewer rate study. The recommended 12% Increase in water rates will increase rates $2.73 per month or from $22.78 per month to $25.51 for an unmetered residential customer. The recommended 3% increase in sewer rates will increase rates $1.35 per month or from $45.28 per month to $46.63 for an unmetered residential customer. The proposed budget includes the addition of one full -time water and sewer operator position. Workload has increased with the opening of the new Water Treatment Facility and the department is requesting an additional position to assure the current level of service to customers is maintained. The estimated cost of this new position with associated benefits is $102,548. The FY14 proposed budget also includes a transfer to the Water & Sewer Capital Project fund of $223,500 to provide the 30% local match required by the State of Alaska Municipal Matching Grant that will replace a 10" AC water main from the City's production well #3 to Swires Road. The current AC line is failing and installation of a new line will maintain the redundancy within the system to bring water into town from the City's production wells. The total cost of the project is estimated at $745,000. Senior Citizen Fund Funding for the City's Senior Center is largely dependent upon grants from the State of Alaska, grants from the Kenai Peninsula Borough, and Choice Waiver meal reimbursement rates. For many years these grants and meal reimbursement rates remained unchanged resulting in increased levels of annual funding from the City's General Fund. Funding from State of Alaska grants remained almost unchanged and may shrink due to Federal Sequestration. Choice Waiver meal reimbursement rates have seen substantial Increases since 2012. The Kenai Senior Center and other senior centers in the state demonstrated that 2012 rates were grossly insufficient to cover the cost of providing a meal. Choice waiver rates have increased substantially and the FY14 revenue from Choice Waiver is projected to be approximately 100% higher than the FY2011 actual amount. Page 15 of 40 The grant from the Kenai Peninsula Borough is dependent upon total funding for senior centers within the borough and the population served, as determined by the most recent U.S. Census. The projected FY14 grant from the Borough is $126,207. The transfer from the General Fund to support these programs decreased to $0 for FY14, the decrease was made possible by the increase in meal reimbursement rates and utilization of $113,843 in fund balance of the Senior Citizens Funds. Had no Fund Balance been available, the General Fund contribution would have been $113,843 higher. With a projected beginning fund balance of $251,341 no transfer is projected through FY15 but transfers will be needed in the future to maintain the current level of service to area seniors. DEBT SERVICE FUND 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 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 20 years. The bonds were issued under authority of the American Recovery and Reinvestment Act Recovery Zone Economic Development Bond Program, The Program entitles the city to a 45% subsidy on its interest payments. Recent Federal Sequestration is projected to reduce the City's overall subsidy by $3,265. The status of future subsidies are in question due to Federal Sequestration. The FY13 budget includes $178,598 in debt service. Debt service is being funded by a transfer from the General Fund in the amount of $144,334 and a 35% federal interest subsidy (reduced by Federal Sequestration from 45 %) through the American Recovery and Reinvestment Act's Recovery Zone Economic Development Bond Program of $34,264. Future debt payments will range from $178,798 and $143,560 with the City receiving federal interest subsidies, subject to reductions by Federal Sequestration, ranging from $37,529 to $3,852. APPENDIX The Appendix section of the budget includes the Equipment Replacement and Major Building Maintenance schedules. The building maintenance schedule details the cost and dates of major maintenance projects for the next five years. The equipment replacement schedule shows the anticipated year of replacement of equipment costing more than $50,000 and the estimated cost of the replacement. ACKNOWLEDGMENT The process of developing a budget is labor intensive and often difficult due to requests exceeding the ability to finance them. This budget was compiled with the full involvement and cooperation of city staff. Page 16 of 40 CONCLUSION The economic outlook for the City is positive. The City is in excellent financial condition, which enables us to weather short-term economic challenges. We all realize that services provided by the City have a direct impact on the quality of life of our residents. The challenge is to balance the provision of these services with the cost of providing them, so that residents feel their tax dollars are well invested. We believe that with the resources provided by this budget we will reach our goal of providing the services outlined herein in an efficient and excellent manner. Respectfully Submitted, Rick R. Koch City Manager M Page 17 of 40 Terry A. Eubank, CPA Finance Director City of Kenai Fiscal Year 2014 Operating Budget Budget Projection Fund: 008 - Airport Fund Usage Fees Fuel Sales Original 21,506 Manager Actual Actual Budget Projection Proposed FY 2011 FY 2012 FY 2013 FY 2013 FY 2014 Float Plane Revenues 1,428 1,800 1,800 State 8 Federal Grants $ 42,518 $ 57,730 $ 70,595 $ 70,595 $ 71,943 Usage Fees Fuel Sales 18,754 21,506 12,000 20,000 20,000 Fuel Flowage 38,448 80,376 60,000 60,000 90,000 Float Plane 2,609 1,428 1,800 1,800 1,800 Tie Down 10,274 12,489 10,000 10,000 10,000 Landing 300,004 358,010 329,423 329,423 336,011 Plane Parking 26,335 15,209 25,000 15,000 15,000 Total Usage Fees 396,424 489,018 438,223 436,223 472,811 Total Terminal Revenue 558,177 Rents and Leases 623,248 646,748 701,109 Land 527,921 591,423 552,761 675,000 707,849 Fish Hauling 4,458 836 5,000 - 1,000 Total Rents and Leases 532,379 592,259 557,761 675,000 708,849 1,033,243 Total Transfers In Miscellaneous 1,011,485 1,033,243 1,031,773 1,033,243 Penalty and Interest 6,223 11,759 3,000 11,500 11,500 Interest on Investments 22,986 13,296 55,243 25,000 30,833 Other 38,301 14,929 15,000 15,000 15,000 Total Miscellaneous 67,510 39,984 73,243 51,500 57,333 Terminal Revenue Parking Fees 191,147 200,909 190,000 200,000 240,000 Rents and Leases 196,759 190,921 240,748 240,748 255,109 Penalty and Interest 7,108 6,557 1,000 1,000 1,000 Car Rental Commissions 150,292 180,243 180,000 195,000 195,000 Advertising Commissions 3,538 3,534 5,000 3,500 3,500 Grants - - - - - Miscellaneous 9,333 14,064 6,500 6,500 6,500 Total Terminal Revenue 558,177 596,228 623,248 646,748 701,109 Transfers In Capital Project Fund 54,747 - - - - Airport Land Trust Fund 999,976 1,011,485 1,033,243 1,031,773 1,033,243 Total Transfers In 1,054,723 1,011,485 1,033,243 1,031,773 1,033,243 Total Revenues 2,651,731 2,786,704 2,796,313 2,911,839 3,045,288 Expenditures Airport Tenn inal 517,071 575,759 609,872 609,914 676,217 Airport Airfield 1,454,334 1,551,142 1,574,721 1,578,916 1,667,941 Airport Administration 233,276 274,984 334,449 334,510 311,557 Airport Other Buildings and Areas 328,871 177,797 173,318 193,348 136,857 Airport Training Facility 63,483 41,373 42,750 42,750 34,664 Total Expenditures 2,597,035 2,621,055 2,735,110 2,759,438 2,827,236 123 Page 18 of 40 City of Kenai Fiscal Year 2014 Operating Budget Budget Projection Fund: 008 - Airport Fund 124 Page 19 of 40 Original Manager Actual Actual Budget Projection Proposed FY 2011 FY 2012 FY 2013 FY 2013 FY 2014 Contribution Tol(From) Fund Balance: 54,696 165,649 61,203 152,401 218,052 Projected Lapse (6 %) - 110,406 110,665 113,155 Adjusted (Deficit) /Surplus 171,609 263,066 331,207 Beginning Fund Balance 3,627,645 3,682,341 3,682,850 3,847,990 4,111,056 Ending Fund Balance $ 3.682,341 $ 3,847,990 $ 3,854,459 $ 4,111,056 $ 4,442,263 124 Page 19 of 40 City of Kenai Fiscal Year 2014 Operating Budget Airport Fund Summary by Line Item 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 977,301 Five year Original $ 1,093,399 Manager Increase (0.12 %) Account Expense FY2012 Historical Budget Amended Proposed (Decrease) % Numbs Description Actual Average FY2013 Budget FY2014 FY13 Original Change - Salaries and Benefits - - - - - 8062 Buildings 0100 Salaries $ 361,453 $ 331,957 $ 391,265 $ 391,265 $ 396,225 $ 4,960 1.27% 0200 Overtime 44,704 41,138 33,500 33,500 42,130 8,630 25.76% 0250 Holiday Pay - - - - - - - 0300 Leave 4,872 10,340 14,899 14,899 16,627 1,728 11.60% 0400 Medicare 5,674 5,491 6,377 6,377 6,599 222 3.48% 0450 Social Security 631 396 - - 464 464 - 0500 PERS 127,177 116,360 149,149 149,149 153,734 4,585 3.07% 0600 Unemployment Insurance 4,546 1,198 2,198 2,198 2,276 78 3.55% 0700 Workers Compensation 8,081 11,643 9,991 9,991 12,545 2,554 25.56% 0800 Health & Life Insurance 91,838 71,216 82,465 82,653 98,682 16,217 19.67% 0900 Supplemental Retirement 8,212 8,197 8,007 8,007 8,710 703 8.78% Total Salaries & Benefits $ 657,188 $ 597,936 $ 697,851 $ 698,039 $ 737,992 $ 40,141 5.75% Maintenance and Operations 2021 Office Supplies 2,252 1,780 2,450 2,450 1,950 (500) (20.41 %) 2022 Operating & Repair Supplies 194,002 174,343 198,040 198,040 204,000 5,960 3.01% 2024 Small Tools /Minor Equipment 35,632 24,333 43,120 43,120 30,850 (12,270) (28.46°/x) 2025 Snack Bar Supplies - - - - - - - 2026 Computer Software 329 678 1,369 1,369 1,560 191 13.95% 4531 Professional Services 35,588 51,546 31,071 31,071 28,500 (2,571) (8.27 %) 4532 Communications 23,637 22,526 30,682 31,372 17,148 (13,534) (44.11 %) 4533 Travel & Transportation 19,012 11,215 13,164 13,164 13,628 464 3.52% 4534 Advertising 8,063 7,915 12,300 12,600 11,550 (750) (6.10 %) 4535 Printing & Binding 1,987 2,652 4,230 4,230 4,030 (200) (4.73 %) 4536 Insurance 67,251 91,479 89,417 89,417 93,370 3,953 4.42% 4537 Utilities 304,990 277,102 324,081 324,081 344,778 20,697 6.39% 4538 Repair & Maintenance 270,947 284,579 281,210 284,660 279,250 (1,960) (0.70 %) 4539 Rentals 11,332 12,214 15,685 15,685 14,250 (1,435) (9.15 %) 4540 Equip. Fund Pmts. - - - - - - - 4541 Postage - - - - - - - 4666 Books - 119 400 400 400 - - 4667 Dues & Publications 345 350 640 755 630 (10) (1.56%) 4999 General Contingency - - 40,000 39,585 40,000 - - 5041 Miscellaneous 1,934 17,287 1,400 1,400 2,050 650 46.43% 5045 Depreciation 5047 Grants to Agencies 125 Page 20 of 40 Total Maint. and Operations $ 977,301 $ 980,118 $ 1,089,259 $ 1,093,399 $ 1,087,944 $ (1,315) (0.12 %) Capital Outlay & Transfers 8061 Land - 20,600 - - - - - 8062 Buildings 29,024 24,805 48,000 48,000 40,000 (8,000) (16.67 %) 8063 Improvements - 38,759 5,000 5,000 20,000 15,000 300.00% 8064 Machinery & Equipment - 7,861 - - - - - 9090 Transfers 957,542 1,020,773 895,000 915,000 941,300 46,300 5.17% Total Capital Outlay and Transfers $ 986,566 $ 1,112,798 $ 948,000 $ 968,000 $ 1,001,300 $ 53,300 5.62% Department Total: $ 2,621,055 $ 2,690,852 $ 2,735,110 $ 2,759,438 $ 2,827,236 $ 92,126 3,37°/ 125 Page 20 of 40 DEPARTMENT NARRATIVE AIRPORT FUND — TERMINAL The Airport Manager manages the terminal building under the direction of the City Manager with assistance from the Administrative Assistant Il. The Administrative Assistant II is the primary contact for the public, manages the City's Disadvantaged Business Enterprise Program (DBE), security and janitorial contracts and oversees enforcement of the vehicle pay parking lot. One - half of this Administrative Assistant II position is charged to the Administration budget and one - half to Terminal budget to properly account for the duties and responsibilities. The Kenai Airport Terminal is a two -story building, which was constructed in 1968, expanded in 1983, and renovated in 1989 and 2001. The terminal has three enplanement gates and one deplanement gate to accommodate approximately 95,000 enplanements per year. The ground floor of the terminal has ticket counter, office, and baggage handling space for four commuter airlines. Currently, ERA and Grant Aviation lease space in the terminal and provide approximately 30 flights per day to and from Anchorage. Charter flights are provided by other carriers, primarily Kenai Aviation. Baggage check -in is handled at the ticket counters and there is a separate baggage claim area with a continuous conveyor belt. Additional lease spaces are occupied by two rental car agencies, a restaurant, real estate office, and a business office. The second floor is leased as a bar /lounge. The terminal automobile parking area provides 529 parking spaces and is divided into three distinct areas by a looping one -way terminal loop road, which provides passenger loading and unloading areas in front of the terminal. The northern section is designated for long -term, permit and employee parking. The southern section provides spaces for rental cars, additional employee parking, and restaurant/lounge patrons. Two emergency generators located in the generator building to the south of the terminal provide full emergency power to both the terminal and the airfield lighting systems. The City's Police and Fire Departments supply all the necessary emergency services for the terminal. A contract security company is employed to provide supplemental patrol capability. Custodial services and the snow plowing services are also provided by contract. The City's General Fund is reimbursed from Airport funds for services provided by general fund departments performing airport duties. In some instances the airport funds are charged directly for salary and benefits of personnel reporting to other departments but working on airport related tasks. Airport tasks are ensured priority when necessary to meet FAA mandated requirements for safety and security. 126 Page 21 of 40 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 2014 Operating Budget Fund: 008 - Airport Fund Department: 61 -Airport Terminal 5045 Depreciation 5047 Grants to Agencies Five year Original 372,213 Manager Increase $ FY2012 Historical Budget Amended Proposed (Decrease) % Actual Avem9e FY2013 Budoet FY2014 FY13 Original Change 16,251 $ 60,633 $ 54,876 $ 65,732 $ 65,732 $ 66,262 $ 530 0.81% 664 2,900 1,250 1,250 3,317 2,067 165.36% 19 1,559 2,455 2,455 2,451 (4) (0.16 %) 908 859 1,007 1,007 1,045 38 3.77% 25,630 20,196 24,005 24,005 24,825 820 3.42% 2,273 599 347 347 361 14 4.03% 1,542 2,264 1,810 1,810 2,363 553 30.55% 17,627 13,649 18,503 18,545 19,872 1,369 7.40% 1,726 1,534 1,750 1,750 1,755 5 0.29% $ 111,022 $ 98,436 $ 116,859 $ 116,901 $ 122,251 $ 5,392 4.61% 5045 Depreciation 5047 Grants to Agencies Maintenance and Operations $ 372,213 $ 352,104 $ 381,513 $ 2021 Office Supplies 229 108 250 250 250 - - 2022 Operating & Repair Supplies 17,970 16,251 24,090 24,090 25,000 910 3.78% 2024 Small Tools /Minor Equipment 4,285 3,109 3,760 3,760 11,500 7,740 205.85% 2025 Snack Bar Supplies - - - - - - - 2026 Computer Software - 85 - - - - - 4531 Professional Services - 1,264 1,500 1,500 1,500 - - 4532 Communications 4,988 4,687 4,400 4,400 6,343 1,943 44.16% 4533 Travel & Transportation 2,275 1,408 3,928 3,928 3,428 (500) (12.73 %) 4534 Advertising 229 512 1,000 1,000 900 (100) (10.00°/x) 4535 Printing & Binding 133 331 370 370 370 - - 4536 Insurance 5,830 8,504 7,431 7.431 7,470 39 0.52% 4537 Utilities 132,526 119,515 139,679 139,679 154,365 14,686 10.51% 4538 Repair & Maintenance 197,012 190,581 178,050 178,050 192,000 13,950 7.83% 4539 Rentals 6,360 5,123 7,055 7,055 6,540 (515) (7.30 %) 4540 Equip. Fund Pmts. - - - - - - - 4541 Postage - - - - - - - 4666 Books - - - - - - - 4667 Dues & Publications - - - - - - - 4999 Contingency - - 10,000 10,000 10,000 - - 5041 Miscellaneous 376 626 - - 500 500 - 5045 Depreciation 5047 Grants to Agencies 127 Page 22 of 40 Total Maint- and Operations $ 372,213 $ 352,104 $ 381,513 $ 381,513 $ 420,166 $ 38,653 10.13% Capital Outlay & Transfers 8061 Land - - - - - - - 8062 Buildings 29,024 5,805 48,000 48,000 60,000 12,000 25.00% 8063 Improvements - 3,183 5,000 5,000 - (5,000) (100.00 %) 8064 Machinery & Equipment - - - - - - - 9090 Transfers Out 63,500 56,920 58,500 58,500 73,800 15,300 26.15% Total Capital Outlay and Transfers $ 92,524 $ 65,908 $ 111,500 $ 111,500 $ 133,800 $ 22,300 20.00% Department Total: $ 575,759 $ 516,448 $ 609,872 $ 609,914 $ 676,217 $ 66,345 10.88% 127 Page 22 of 40 City of Kenai Fiscal Year 2014 Operating Budget Fund: 008 - Airport Fund Department: 61 - Airport Terminal Account Manager Number Description Proposed 2022 Operating and Repair Supplies Generator Diesel fuel 6,000 Janitorial supplies 9,000 Vehicle parking pennits 400 Air filters - terminal air handling units 800 Flowers 3,200 Winter receipt paper - LUKE 600 Misc. parts plumbing repairs 5,000 25,000 2024 Small Tools and Minor Equipment Camera maintenance 1,500 Backup LUKE Parts 10,000 11,500 4533 Transportation DBE conference, Alaska Airmens Fed Ex Trade show and ANTN Digicast Subscription 3,428 4538 Repairs and Maintenance Janitorial Services 70,000 Security services 60,000 Snow Plowing Contract 25,000 Christmas decorations 4,000 Holiday window painting 1,500 Otis Elevator Service Contract 2,300 SOA elevator inspection 350 Sprinkler system startup and shutdown 500 Quarterly drain flush 800 Landscape maintenance /flowers 2,000 LUKE warranty 1,100 LUKE Monitoring 980 Painting (walls, stairway walls, lobby walls, etc.) 2,500 Annual fire test, inspection, mist. repairs, boiler inspection 3,500 Miscellaneous repairs 17,470 192,000 4539 Rentals FY14 Plant lease 6,540 8062 Buildings Recarpel Terminal lobby 45,000 Boiler repair 15,000 60,000 9090 Transfer to Other Funds Transfer to General Fund: Central Administrative Costs 73,800 128 Page 23 of 40 City of Kenai Fiscal Year 2014 Operating Budget Fund: 008 - Airport Fund Department: 61 -Airport Terminal Account 6,540 Manager Number Description Proposed 2022 Operating and Repair Supplies 60,000 Generator Diesel fuel 6,000 Transfer to General Fund: Central Administrative Costs Janitorial supplies 9,000 73,800 Vehicle parking permits 400 Air filters - terminal air handling units 800 Flowers 3,200 Winter receipt paper - LUKE 600 Misc. parts plumbing repairs 5,000 25,000 2024 Small Tools and Minor Equipment Camera maintenance 1,500 Backup LUKE Parts 10,000 11,500 4533 Transportation DBE conference Airmens Fed Ex Trade show and ANTN Digicasl Subscription 3,428 4538 Repairs and Maintenance Janitorial Services 70,000 Security services 60,000 Snow Plowing Contract 25,000 Christmas decorations 4,000 Holiday window painting 1,500 Otis Elevator Service Contract 2,300 SOA elevator inspection 350 Sprinkler system startup and shutdown 500 Quarterly drain Flush 800 Landscape maintenancellowers 2,000 LUKE warranty 1,100 LUKE Monitoring 980 Painting (walls, stairway walls, lobby walls, etc.) 2,500 Annual fire test, inspection, misc. repairs, boiler inspection 3,500 Miscellaneous repairs 17,470 192,000 4539 Rentals FY14 Plant lease 6,540 8062 Buildings Recarpet Terminal lobby 45,000 Boiler repair 15,000 60,000 9090 Transfer to Other Funds Transfer to General Fund: Central Administrative Costs 73,800 128 Page 24 of 40 AIRPORT FUND - AIRFIELD The Kenai Municipal Airport is the primary commercial service airport on the Kenai Peninsula and is owned and operated by the City of Kenai. It has a grooved 7,830 ft. x 150 -ft. CAT III runway, a 4,500 -ft. x 150 -ft. floatplane facility, and a 2,000 -ft. x 60 -ft. gravel runway. A full length parallel taxiway was completed in 2006 and major renovations to the runway were com- pleted in 2007. An apron rehab and extension was completed in 2010. Itinerant aircraft parking is provided at the southern end of the apron. The apron north of the terminal is designated for helicopter, medivacs, and large aircraft operations. A gravel runway is located in the northeast comer of the airport and has access to the primary taxiways and apron by a taxiway along its west side. A gravel tiedown area and vehicle parking area parallels the gravel runway along the east side. The gravel tiedown area has 17 tiedowns and parking areas are accessible by road through a secure gate at the north end of Willow Street. Secondary taxiways provide access to the general aviation area on the southeast corner of the airport. The general aviation area offers aircraft parking and aviation related leases to individu- als and fixed base operators. The airport owns and operates a long -term aircraft - parking apron providing tiedown spaces for forty (40) aircraft; fifteen (15) of which were upgraded to provide electrical plug -ins. The Airport Manager is responsible for overall management of the airport. The Airport Opera- tion's Supervisor position is responsible for the day -to -day maintenance and operations of the airport including daily inspections, planning and allocation of resources, overseeing contractors, addressing complaints, interfacing with airport tenants and users. The Operations Supervisor participates in snow removal and maintenance activities as well as supervising City employees working on airport maintenance. There is also an Airport Operations Specialist position that is split evenly between the Airfield and Terminal accounts. The City's General Fund is reimbursed from Airport funds for services provided by general fund departments performing airport duties. In some instances the Airport funds are charged directly for salary and benefits of personnel reporting to other departments but working on airport relat- ed tasks. Airport tasks are ensured priority when necessary to meet FAA mandated require- ments for safety and security. 129 Page 25 of 40 City of Kenai Fiscal Year 2014 Operating Budget Fund: 008 -Airport Fund Department: 62 -Airport Airfield 5045 Depreciation 5047 Grants to Agencies Total Main. and Operations $ Five year Original 456,667 Manager Increase $ Account Expense FY2012 Historical Budget Amended Proposed (Decrease) % Number Description Actual Avean FY2013 Buda FY2014 FY13 Original Chance Salaries and Benefits Land - - - 0100 Salaries $ 143,520 $ 126,683 $ 136,799 $ 136,799 $ 159,068 $ 22,269 16.28% 0200 Overtime 42,595 37,338 31,000 31,000 36,500 5,500 17,74% 0250 Holiday Pay - - - - - - - 0300 Leave - 2,451 4,392 4,392 6,705 2,313 52.66% 0400 Medicare 2,317 2,321 2,497 2,497 2,933 436 17.46% 0450 Social Security 631 334 - - 464 464 - 0500 PERS 45,853 46,634 60,138 60,138 67,110 6,972 11.59% 0600 Unemployment Insurance - - 860 860 1,011 151 17.56% 0700 Workers Compensation 5,352 7,719 6,730 6,730 8,747 2,017 29.97% 0800 Health & Life Insurance 36,385 28,598 23,925 23,980 39,066 15,141 63.29% 0900 Supplemental Retirement 2,739 2,952 2,250 2,250 3,450 1,200 53.33% 1,578,916 Total Salaries & Benefits $ 279,392 $ 255,030 $ 268,591 $ 268,646 $ 325,054 $ 56,463 21.02% Maintenance and Operations 2021 Office Supplies 492 415 500 500 500 - - 2022 Operating & Repair Supplies 157,961 144,192 159,450 159,450 165,000 5,550 3.48% 2024 Small Tools /Minor Equipment 27,417 17,096 23,860 23,860 17,125 (6,735) (28.23 %) 2025 Snack Bar Supplies - - - - - - 2026 Computer Software - 75 - - 520 520 - 4531 Professional Services 3,411 1,056 4,000 4,000 4,500 500 12.50% 4532 Communications 11,781 13,753 13,360 14,050 8,520 (4,840) (36.23 %) 4533 Travel & Transportation 5,710 3,363 3,356 3,356 4,000 644 19.19% 4534 Advertising 170 115 300 600 500 200 66.67% 4535 Printing & Binding 495 449 1,120 1,120 1,120 - - 4536 Insurance 60,055 81,362 80,205 80,205 84,135 3,930 4.90% 4537 Utilities 150,894 138,057 155,469 155,469 168,757 13,288 8.55% 4538 Repair & Maintenance 54,722 50,868 73,160 76,610 60,800 (12,360) (16.89 %) 4539 Rentals 3,742 5,631 4,900 4,900 3,960 (940) (19.18 %) 4540 Equip. Fund Pmts. - - - - - - - 4541 Postage - - - - - - - 4666 Books - 68 150 150 150 - - 4667 Dues & Publications - - - - - - - 4999 Contingency - - 10,000 9,700 10,000 - - 5041 Miscellaneous - 167 - - - - - 5045 Depreciation 5047 Grants to Agencies 130 Page 26 of 40 Total Main. and Operations $ 476,850 $ 456,667 $ 529,830 $ 533,970 $ 529,587 $ (243) (0.05 %) Capital Outlay & Transfers 8061 Land - - - - - - - 8062 Buildings - - - - (20,000) (20,000) - 8063 Improvements - 3,480 - 20,000 20,000 - 8064 Machinery & Equipment - - - - - - - 9090 Transfers Out 794,900 778,765 776,300 776,300 813,300 37,000 4.77% Total Capital Outlay and Transfers $ 794,900 $ 782,245 $ 776,300 $ 776,300 $ 813,300 $ 37,000 4.77% Department Total: $ 1,551,142 $ 1,493,942 $ 1,574,721 $ 1,578,916 $ 1,667,941 $ 93,220 5.92% 130 Page 26 of 40 City of Kenai Fiscal Year 2014 Operating Budget Fund: 008 - Airport Fund Department: 62 - Airport Airfield Account Manager Number oescription proposed 2022 Operatna and Repair Suppllea Cracksealing material 10,000 Broom bristles 12,000 Fuel 48,000 Equipment blades 20,000 Runway lights/signs 10,000 Gate parts 5,000 Urea 22,500 Clearway E36 25,000 Cracker shells, pyrotechniques 1,000 Propane ARFF training at Beacon 5,000 Snowblower cutting edges 2,500 Nitrogen -ARFF 1,000 Personal protection gear 1,000 Replace M RunwaylleAway sign 2,000 165,000 2024 Small Tools and Minor Equipment Windsock kits 2,500 Wireless Access Point 725 Conex 5,700 Radios 1,500 ARFF Gear 5,700 Miscellaneous 1,000 17,125 4531 Professional Services DOT physicals, pre- employment tests 1,500 Miscellaneous engineering services 3,000 4,500 4533 Transportation Part 139 Operations training /SeminarsWHA trainer class 3,144 ANTN Digicast Subscription 12 cost 856 4,000 4538 Repairs and Maintenance Annual fire test and inspection 2,000 Install lighted windsock 500 Boiler inspections 700 Credksealing - 2 pallets 15,000 Fence repairs 1,500 Hydroaxing 6,000 Misc. overhead door repairs and heating repairs 10,000 Calibrate bownmonk and tapiey meters 1,500 Misc. automatic gate repairs 2,500 Replace bulbs in light poles Soo Miscellaneous repairs 15,000 Craneinspection 50o Miscellaneous painting 5,000 60,800 4539 Rentals Portable toilets 1,850 Stage Air FaidTent - KPAF 800 Tables /Chairs - KPAF 400 Portable toilets - KPAF 210 Compactor 700 3,960 9090 Transfer to Other Funds Transfer to General Fund: Central Administrative Costs 813,300 131 Page 27 of 40 DEPARTMENT NARRATIVE AIRPORT FUND — ADMINISTRATION The Airport Manager works under the direction of the City Manager and is responsible for Federal Aviation Administration compliance, grant eligibility, airport development, general management and operation of the Kenai Municipal Airport. The Airport Manager receives secretarial support and assistance with public contact, terminal lease agreements, and FAA compliance from one Administrative Assistant II. The Administrative Assistant has the responsibility for the City's Disadvantaged Business Enterprise Program (DBE), terminal janitorial and security contracts and the terminal parking lot enforcement. One -half of this Administrative Assistant II position is charged to Airport Administration and one -half to Airport terminal to properly account for the duties and responsibilities. Support for legal, finance, engineering, planning, public works, police and fire is funded through transfers to the City's Central Administration budget. The City Manager's Assistant supports the City Managers oversight of airport lands and one -half of that position is charged directly to the Airport Lands budget. Airport capital improvement projects (ACIP) are primarily funded through airport entitlement monies and discretionary funds received from the Federal Aviation Administration. Funding for these projects is not a part of the annual budget process and is accounted for separately in capital projects funds. 132 Page 28 of 40 City of Kenai Fiscal Year 2014 Operating Budget Fund: 008 - Airport Fund Department: 63 -Airport Administration 5045 Depreciation 5047 Grants to Agencies Total Maint and Operations $ 33,304 $ 28,989 $ 65,162 $ 65,162 $ 39,300 $ (25,862) 3( 9.69 %) Capital Outlay & Transfers Five year Original Land Manager Increase 8062 Account Expense FY2012 Historical Budget Amended Proposed (Decrease) % Number Description Actual Averaa FY2013 Budget FY2014 FY13 original Chanae Salaries and Benefits and Transfers $ 53,700 $ 48,880 $ 60,200 $ 60,200 $ 54,200 $ (6,000) Department Total: $ 274,984 $ 247,948 $ 334,449 $ 334,510 $ 311,557 $ (22,892) (6.84 1/6) 0100 Salaries $ 111,258 $ 104,712 $ 125,927 $ 125,927 $ 129,116 $ 3,189 2.53% 0200 Overtime 1,053 659 - - 2,100 2,100 - 0250 Holiday Pay - - - - - - - 0300 Leave 4,834 5,804 5,813 5,813 5,962 149 2.56% 0400 Medicare 1,785 1,649 1,911 1,911 1,990 79 4.13% 0450 Social Security - 62 - - - - - 0500 PERS 39,749 34,531 45,132 45.132 46,817 1,685 3.73% 0600 Unemployment Insurance - - 659 659 686 27 4.10% 0700 Workers Compensation 463 665 508 508 521 13 2.56% 0800 Health & Life Insurance 26,312 19,448 26,637 26,698 28,365 1,728 6.49% 0900 Supplemental Retirement 2,526 2,549 2.500 2,500 2,500 Total Salaries & Benefits $ 187,980 $ 170,079 $ 209,087 E 209,148 5 218,057 $ 8,970 4.29% Maintenance and Operations 2021 Office Supplies 1,158 997 1,500 1,500 1,000 (500) (33.33 %) 2022 Operating & Repair Supplies 138 360 1,000 1,000 1,000 - - 2024 Small Tools /Minor Equipment 3,251 3,031 15,500 15,500 2,225 (13,275) (85.65 %) 2025 Snack Bar Supplies - - - - - - - 2026 Computer Software 329 453 1,369 1,369 1,040 (329) (24.03 %) 4531 Professional Services 1,845 2,292 2,600 2,600 2,500 (100) (3.85 %) 4532 Communications 4,975 3,654 11,622 11,622 1,070 (10,552) (90.79 %) 4533 Travel & Transportation 11,027 6,444 5,880 5,880 6,200 320 5.44% 4534 Advertising 6,992 7,144 10,000 10,000 8,650 (1,350) (13.50 %) 4535 Printing & Binding 984 1,797 1,620 1,620 1.420 (200) (12.35 %) 4536 Insurance 1,366 1,613 1,781 1,781 1,765 (16) (0.90 %) 4537 Utilities - - - - - - - 4538 Repair &Maintenance - - - - - - 4539 Rentals - - - - - - - 4540 Equip. Fund Pmts. - - - - - - - 4541 Postage - - - - - - - 4666 Books - 51 250 250 250 - - 4667 Dues & Publications 345 350 640 755 630 (10) (1.56 %) 4999 Contingency - 10,000 9,885 10,000 - - 5041 Miscellaneous 894 803 1,400 1,400 1,550 150 10.71% 5045 Depreciation 5047 Grants to Agencies Total Maint and Operations $ 33,304 $ 28,989 $ 65,162 $ 65,162 $ 39,300 $ (25,862) 3( 9.69 %) 133 Page 29 of 40 Capital Outlay & Transfers 8061 Land - - - - - - - 8062 Buildings - - - - - - - 8063 Improvements - - - - - - - 8064 Machinery & Equipment - - - - - - - 9090 Transfers Out 53,700 48,880 60,200 60,200 54,200 (6,000) (9.97%) Total Capital Outlav and Transfers $ 53,700 $ 48,880 $ 60,200 $ 60,200 $ 54,200 $ (6,000) Department Total: $ 274,984 $ 247,948 $ 334,449 $ 334,510 $ 311,557 $ (22,892) (6.84 1/6) 133 Page 29 of 40 City of Kenai Fiscal Year 2014 Operating Budget Fund: 008 - Airport Fund Department: 63 - Airport Administration Account Manager Number Description Proposed 2022 Operating and Repair Supplies Miscellaneous 300 Fuel, Apt Mgr. Vehicle 700 1,000 2024 Small Tools and Minor Eauipment Replacement computer 1,500 Wireless access point 725 2,225 4531 Professional Services 430 KMA website maintenance 550 AIT domain host fee 100 AIT domain name renewal fee 150 Miscellaneous 1,700 10th Annual DBE Business Summit 2,500 4533 Transportation ANTN Digicast Subscription 430 NWAAAE Annual Conference 2,500 Car allowance 360 2013 WRAPm Conference 1,500 FedEx Trade Show 500 10th Annual DBE Business Summit 250 Misc. travel coupons 660 6,200 5041 Miscellaneous Miscellaneous shipping fees 150 Water dispenser /water 700 Refreshments for meetings 700 1,550 9090 Transfer to Other Funds Transfer to General Fund: Central Administrative Costs 54,200 134 Page 30 of 40 DEPARTMENT NARRATIVE AIRPORT FUND — OTHER BUILDINGS AND AREAS Airport Land is the real estate that lies within the boundary of the lands deeded to the City of Kenai by the Federal Aviation Administration (FAA) in 1963. The acquisition gave the City title to nearly 2,000 acres. Most of the land is located in the business district surrounding the airport. The FAA requires that revenues from airport land sales be deposited in the Airport Land Sale Permanent Fund. The principal of the fund cannot be spent; however, interest generated on the principal is available to support the Kenai Municipal Airport. The Administrative Assistant III position that is physically located at City Hall is responsible for the administration of airport lands under the direction of the City Manager. One -half of this position is charged to the Other Buildings and Areas budget. This reflects the duties of the position as an Assistant to the City Manager as well as supporting the administration of airport lands. The Float Plane Basin encompasses a 4,500 foot water way for landing and take -off operations and a separate water lane for taxiing with parking slips. A major expansion of the landing channel was started in 2006 and competed in fall of 2007. Separate tie -down areas are available for private and commercial users and a 24 hr. self fueling station is maintained by the airport on the basin. Transient parking and camping spots are available. Current KMC code prohibits the collection of landing fees for float planes; therefore, the only income from this area is from monthly and daily parking fees. The basin is closed to all operations during winter months. 135 Page 31 of 40 Account Expense Number Description City of Kenai Fiscal Year 2014 Operating Budget Fund: 008 - Airport Fund Department: 64 - Other Buildings and Areas Five year Original FY2012 Historical Budget Amended Actual Average FY2013 Budget Manager Increase Proposed (Decrease) % FY2014 FY13 Onoinal Change $ 46,042 $ 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 962 Total Salaries & Benefits City of Kenai Fiscal Year 2014 Operating Budget Fund: 008 - Airport Fund Department: 64 - Other Buildings and Areas Five year Original FY2012 Historical Budget Amended Actual Average FY2013 Budget Manager Increase Proposed (Decrease) % FY2014 FY13 Onoinal Change $ 46,042 $ 45,686 $ 62,807 $ 62,807 $ 41,779 $ (21,028) (33.48 %) 392 241 1,250 1,250 213 (1,037) (82.96 %) 19 526 2,239 2,239 1,509 (730) (32.60 %) 664 662 962 962 631 (331) (34.41 %) 15,945 14,999 19,874 19,874 14,982 (4,892) (24.62 %) 2,273 599 332 332 218 (114) (34.34 %) 724 995 943 943 914 (29) (108 %) 11,514 9,521 13,400 13,430 11,379 (2,021) (15.08 %) 1,221 1,162 1,507 1,507 1,005 (502) (33.31 %) $ 78,794 $ 74,391 $ 103,314 $ 103,344 $ 72,630 $ (30,684) (29.70% 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations Capital Outlav & Transfers 8061 Maintenance and Operations 8062 Buildings 8063 Improvements 8064 2021 Office Supplies 373 260 200 200 200 2022 Operating & Repair Supplies 17,933 13,279 13,500 13,500 13,000 2024 Small Tools /Minor Equipment 679 1,097 - - - 2025 Snack Bar Supplies - - - - - 2026 Computer Software - 65 - - - 4531 Professional Services 16,053 19,067 22,971 22,971 20,000 4532 Communications 969 247 1,300 1,300 1,215 4533 Travel & Transportation - - - - 4534 Advertising 672 144 1,000 1,000 1,500 4535 Printing & Binding 375 75 1,120 1,120 1,120 4536 Insurance - - - - - 4537 Utilities 3,792 5,062 2,683 2,683 2,442 4538 Repair & Maintenance 10,821 9,904 13,500 13,500 11,000 4539 Rentals 1,230 1,460 3,730 3,730 3,750 4540 Equip. Fund Pmts. - - - - - 4541 Postage - - - - - 4666 Books - - - - - 4667 Dues & Publications - - - - - 4999 Contingency - - 10,000 10,000 10,000 5041 Miscellaneous 664 15,588 - - - 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations Capital Outlav & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Out Total Capital Outlav and Transfers Department Total: (500) (3.70% (2,971) (12.93%) (85) (6.54 %) 500 50.00% (241) (8.98 %) (2,500) (18.52 %) 20 0.64% $ 53,561 $ 66,248 $ 70,004 $ 70,004 $ 64,227 $ (5,777) (8.25 %) 20,600 19,000 - 32,096 - - 7,861 - - 45,442 126,408 20.000 $ 45,442 $ 205,965 $ - $ 20,000 $ - $ $ 177,797 $ 346,604 $ 173,318 $ 193,348 $ 136,657 $ 36,461 (21.04°/ ) 136 Page 32 of 40 City of Kenai Fiscal Year 2014 Operating Budget Fund: 008 - Airport Fund Department: 64 - Airport Other Buildings Account Manager Number Description Proposed 2022 Operating and Repair Supplies Bldg and ground maintenance 3,000 100 LL Fuel - FPS 10,000 13,000 4531 Professional Services Misc. Appraisals, Surveying 15,000 Storm water sampling - Spring and Fall 5,000 20,000 4535 Printing & Bindino Group B Service - Konica Minolta 120 Misc. brochures, etc. 1,000 1,120 4538 Repairs and Maintenance Misc. maintenance 2,500 Snowplowing/sanding 6,500 Annual fire test, inspection, and misc. repairs 2,000 11,000 4539 Rentals Porta- toilets 1,250 Slip Maintenance 2,500 3,750 137 Page 33 of 40 DEPARTMENT NARRATIVE AIRPORT FUND — ALASKA FIRE TRAINING FACILITY The 23,460 square foot Alaska Fire Training Facility was built in 1997. The facility was designed to facilitate hands -on training of fire response personnel in scenarios replicating actual emergencies involving aircraft and structural /industrial settings. The first floor is currently leased to Beacon Occupational Health and Safety Services (Beacon). Beacon also leases approximately 625 square feet on the second floor. The current contract with Beacon expires December 31, 2012 but shall annually renew automatically absent 180 day notice of termination by either the City or Beacon. Approximately 3,800 square feet of the second floor is leased to Homer Electric Association (HEA). The current lease expires August 31, 2015 and allows two extensions of one year each, approved by mutual consent of the City and HEA. Revenue from these leases is retained by the Airport Fund for operations 138 Page 34 of 40 City of Kenai Fiscal Year 2014 Operating Budget Fund: 008 - Airport Fund Department: 65 -Airport Training Facility Five year Original Manager Increase Account Expense FY2012 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2013 Budget FY2014 FY13 Original Change 139 Page 35 of 40 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 - 261 - - - - - 2024 Small Tools/Minor Equipment - - - - - - - 2025 Snack Bar Supplies - - - - - - - 2026 Computer Software - 4531 Professional Services 14,279 27,867 - - - - - 4532 Communications 924 185 - - - - - 4533 Travel & Transportation - - - - - - - 4534 Advertising - - - - - - - 4535 Printing & Binding - - - - - - - 4536 Insurance - - - - - - - 4537 Utilities 17,778 14,468 26,250 26,250 19,214 (7,036) (26.80 %) 4538 Repair &Maintenance 8,392 33,226 16,500 16,500 15,450 (1,050) (6.36 %) 4539 Rentals - - - - - 4540 Equip. Fund Pmts. - 4541 Postage - 4666 Books - - - - - - - 4667 Dues & Publications - 4999 Contingency - 5041 Miscellaneous - 103 - - - - - 5045 Depreciation - - - - - - - 5047 Grants to Agencies - - - - Total Maint. and Operations $ 41,373 E 76,110 $ 42,750 $ 42,750 $ 34,664 $ (8,086) (18.91%) Capital Outlay & Transfers 8061 Land - - - - - - 8062 Buildings 8063 Improvements 8064 Machinery & Equipment - - 9090 Transfers Out 9,800 - Total Capital Outlay and Transfers $ $ 91800 $ - $ - $ - $ Department Total: $ 41,373 $ 85,910 $ 42,750 $ 42,750 $ 34,664 $ 8,086 118.91 %) 139 Page 35 of 40 City of Kenai Fiscal Year 2014 Operating Budget Fund: 008 - Airport Fund Department: 65 - Airport Training Facility Account Manager Number Description Proposed 4538 fairs and Maintenance Fire test, inspection & misc. repairs 2.000 FY14 snow plow contract 6,500 FY14 Elevator contract 1,950 Miscellaneous repairs 5,000 15,450 140 Page 36 of 40 Municipal Airport Airport Improvement Proaram: February 2013 Airport Manager's Report Master Plan — On January 30, the FAA sent back comments on the Phase 1 report. Overall they felt the report was a pretty good job and they are looking forward to Phase 2. None of their recommendations warrant a special edit so any changes will be included with the Phase 2 report. Tree Obstruction Clearing Proiect: The FAA is conducting their final review of the plans and specs. The project will be bid when approved by the FAA. Airfield Marking — Plans and specs are complete and the City's front -end bid documents are being prepared by the Airport and City Administration. The project will be advertised and bid with painting to start next summer. In- house: Training: Airport Staff completed the mandatory Sexual Harassment Training held on Monday, February 11 at City Hall. FY14 — Staff is continuing work and review of the budget. A comprehensive review of the fee schedule is continuing and any changes will presented to Administration during the budget process. Peninsula Winter Games: Thanks to the master ice carvers on the airports ice sculpture. The airport has received many compliments. 2013 -002 Page 37 of 40 1=177 ^4 Airport Airport Improvement Program: March 2013 Airport Manager's Report Master Plan —Work is continuing with the Phase 2 Report. Tree Obstruction Clearing Project: The FAA has completed their review and returned comments to adjust the plans and spec. The project will be prepared for bid to start after July 15. Airfield Marking — Plans and specs are complete and the City's front -end bid documents are being prepared. The project will be advertised and bid with painting to start this summer. Wildlife Hazard Assessment - This year long project is coming to a close and March 15 is the last day for the wildlife biologist conducting on -site observations and surveys at the airport. Kyle Waters with the United States Department of Agriculture has completed the assessment. A Wildlife Hazard Management Plan will be developed based on the assessment with the recommendations for habitat modification, management needs, and population management strategies to minimize wildlife hazards on the airport. In- house: 13`h Annual Kenai Peninsula Air Fair — The committee has encountered another problem for the event; notice was received on March 11 that all aviation support to public events for at least the remainder of the fiscal year are cancelled. This cancellation includes all air shows, tradeshows, and flyovers (including funerals, military graduations). The elimination of the military personnel and aircraft presence leaves a big hole in the afternoon at the Kenai Airport. If you have any ideas to fill the agenda please contact the Airport Administrative Office at 283 -7951. Winter Snow Operations: Snow and ice conditions have slowed down and crews are putting their efforts towards maintenance and spring cleanup. Snow piles are being moved for faster melting and flowers have been ordered. Crews are anxious to pickup sand. 2013 -003 Page 38 of 40 March 2013 Enplanements ena 28.69% GRANT MmnlclPat Airport L 2,190 Ift ERA 5,471 71.41% Month ERA AVIATION GRANT AVIATION Total YTD in 2013 2012 Change from 2012 KENAI AVIATION Combined Month Total January 5,641 2,089 7,730 7,615 115 137 7,867 February 4,993 2,181 7,174 7,498 -324 130 7,304 March 5,471 2,190 7,661 7,525 136 139 7,800 April 10000 6,970 0 May -- 7500 8,491 0 June 5000 8,008 0 July 2500 - - 11,294 0 August 0 10,630 0 September 7,535 0 October 8,145 0 November 7,646 0 December 7,523 1 1 0 Totals 16,105 6,460 22,565 98,880 -73 406 22,971 Tenninal - Vehicle Parking Revenues March 2012 1 $16,792 FY12 Total $204,669 2013 $18,939 FY13 YTD $154,321 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Page 39 of 40 • FY12 • FY33 Vehicle Parking Revenues 30000 27500 25000 - 22500 20000 - -- - 17500 15000 12500 10000 - -- 7500 5000 - 2500 - - - 0 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Page 39 of 40 • FY12 • FY33 Federal Aviation Administration February 2013 Subject: Alaska Aviation Fact Sheet Alaska's 591,004 square miles of land and 2,427,971 square miles of airspace are served by: 3 Flight Standards district offices 1 certificate management office 1 FAA Safety Team I aircraft certification office 133 automated weather monitoring systems 8 FAA control towers and 4 military towers 2 terminal radar approach control facilities 1 air route traffic control center 195 aviation weather camera sites 17 Flight Service Stations I commercial space port Pilots, Mechanics, & Aircraft: There are 8,202 active pilots, 2,849 air frame and power plant mechanics of which 775 have inspection authorizations, and 10,423 registered aircraft in Alaska. Airports: Alaska has 405 public use land -based airports, 54 heliports, and approximately 855 recorded landing areas (private, public, and military) total. Of course pilots land on many of the thousands of lakes and gravel bars across the state where no constructed facility exists. Air Commerce The number of enphwements (4.65 million) in Alaska is 6.4 times the state population compared to 2.3 times the U.S. population for all states. There are 290 certified air carriers in Alaska providing scheduled and on- demand services. Seaplanes: Lake Hood in Anchorage is the world's largest and busiest seaplane base and the only seaplane base with primary airport status in the U.S. It accommodates an average of 172 daily takeoffs and landings with nearly 400 on a peak summer day. There were approximately 63,000 operations in 2012, when combined with the Lake Hood gravel strip. Alaska has the most seaplane bases in the country — 184 Air Traffic Control Tower Activity in 2012: Ted Stevens, Anchorage— 284,095 Lake Hood — — 63,000 Fairbanks— 129,389 Juneau — 91,176 Merrill Field, Anchorage— 131,777 Airport Improvement: Since 1982 the federal Airport Improvement Program has provided over $3.5 billion for airport construction, development and planning in Alaska. This funding was provided via approximately 1,407 grants within Alaska. In fiscal year 2012, the FAA Alaskan Region distributed $225.8 million in 42 grants to State and other "local " airport sponsors. Page 40 of 40