HomeMy WebLinkAboutOrdinance No. 2452-2009Lire rd of
KENAI, SKA
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY S110,278 IN THE CAPITAL
PROJECTS MANAGEMENT FUND FOR THE ESTABLISHMENT OF THE FUND.
WHEREAS, the City of Kenai has recently committed to hiring a Capital Projects
Manager to oversee the City's projects; and,
WHEREAS, the creation of an internal service fund to account for the expenses and
billings for the position will assure projects are charged for the actual cost of
managing the project including personnel, operating supplies, and equipment; and,
WHEREAS, costs will be recovered from the various projects based upon a calculated
billing rate plus a charge for the department vehicle to be determined annually based
upon the department budget.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA that estimated revenues and appropriations be increased as follows:
Capital Projects Management Fund
Increase Estimated Revenues:
Charge for Services
Charge for Equipment
State Grants
Increase Appropriations:
Salaries
Overtime
Leave
Medicare
PERS
Unemployment
Workers Compensation
Health 84 Life Insurance
Supplemental Retirement
Office Supplies
Operating Supplies
Small Tools
Computer Software
Communications
Insurance
Repair 84 Maintenance
Miscellaneous
CITY OF KENAI
ORDINANCE NO. 2452 -2009
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Suggested by: Administration
$91,716
8,000
10 562
110,_278
55,158
2,400
5,181
910
23,225
314
489
8,040
561
500
2,500
3,500
1,000
500
500
1,000
500
Ordinance No. 2452 -2009
Page 2 of 2
Depreciation 4,000
$110.2'78
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fourth day of
November, 2009.
ATTEST:
Carol L. Freas, City Clerk
Approved by Finance:
PAT PORTER, MAYOR
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Introduced: October 21, 2009
Adopted: November 4, 2009
Effective: November 4, 2009
"Vi (aye with a Past, Ci y with a Future
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 283 -7535 ext 221 FAX: 907 283 -3014
the n of
KENAA� SKA
Rick Koch, City Manager
From: Terry Eubank, Finance Director
Date: October 15, 2009
Re: Creation and budget establishment for the Capital Project Management Fund
With the authorization to hire a Capital Projects Manager comes the need to establish a fund to
account for the expenses of the position and to account for the reimbursement charged to the
projects being managed. Proposed Ordinance 2452 -2009 will create an internal service fund to
account for the expenses and revenues of the position. Internal service funds are used to account
for funds that provide goods and services to other funds on a cost-reimbursement basis.
Total costs for the remainder of fiscal year 2010 are expected to be $11.0,278 and include
everything from payroll related expenses as well as equipment needs for the department. It is
being proposed to purchase a computer and printer for the new position as well as a vehicle for
use by the manager. Similar to purchases from the equipment replacement fund, a separate
resolution will be prepared to authorize the purchase of the departments vehicle. The cost of the
vehicle to be purchased will be recovered over a five year period due to its cost. Other costs of
the department will be recovered in the year incurred.
Funding for the fund will be from charges to projects being managed for both manager time and
rental of the department vehicle as well as grant funds from the State of Alaska for Public
Employee Retirement System on behalf funding. Funding for PERS on behalf is expected to be
$10,562 or 18.35% of budgeted wages subject to PERS.
Equipment reimbursement is based upon recovering the cost of a $20,000 vehicle with annual
operating cost of $8,000 for fuel, insurance, and maintenance. Expected recovery is $1,000 per
month and will be allocated to projects based upon hours billed each month.
Charge for services is based upon total department costs less PERS on behalf reimbursement and
vehicle costs. This net amount will be divided by the available billable hours in a year (typically
total work hours less holidays and expected vacation days, training hours, etc.). For the
remainder of fiscal year 2010 the project billing rate will be $67.04 per hour as shown in the
following calculation:
Total Department Budget 110,278
(Less Vehicle Recovery) (8,000)
(Less PERS Grant) (10,562)
Total to be recovered 91.716
(Cost to be recovered divided by available hours) $91,716/1,368 hours $67.04 per hour
Recovery in subsequent years will be adjusted based upon over or under recovery in the
preceding fiscal year. As this is the first year there is no under or over recovery adjustment.