HomeMy WebLinkAboutOrdinance No. 2164-2006Suggested by: Administration
CITY OF KENAI
ORDINANCE NO. 2164-2006
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY $60,000 IN THE AIRPORT LAND
SYSTEM SPECIAL REVENUE FUND AND THE RUNWAY SAFETY AREA
IMPROVEMENT CAPITAL PROJECT FUND FOR ENGINEERING SERVICES.
WHEREAS, the FAA requires projects to be bid prior to awarding a grant; and,
WHEREAS, the Runway Safety Area Improvement Project needs an additional $60,000
for engineering to carry the project through grant submission; and,
WHEREAS, upon adoption of this ordinance the total amount appropriated to date is
~i300,000, all of which is grant eligible; and,
WHEREAS, funds are available in the fund balance of the Airport Land System Special
Revenue fund.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that estimated revenues and appropriations be increased as follows:
Airport Land System Special Revenue Fund
Increase Estimated Revenues:
Appropriation of Flznd Balance $60,000
Increase Appropriations:
Transfer to Capital Project Fland $60,000
Runway Safetv Area Improvements Capital Proiect Fund
Increase Estimated Revenues:
Transfer from Special Revenue Fund $60,000
Increase Appropriations:
Engineering $60,000
Ordinance No. 2164-2006
Page Two
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of May,
2006. ~ ~~~L/
PAT PORTER, MAYOR
ATTEST:
~~~ ~~~~~~
Carol L. Freas, ity Clerk
Approved by Finance:_k~
(03/27/2006) hl
Introduced: May 03, 2006
Adopted: May 17, 2006
Effective: May 17, 2006
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Nlunicipal Airport
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30.''iN.WILLOWST.SU1TE200 l~VAI~ALASKA~619
TELEPHONE 907283-7951
FAX 907-2833737
To: Larry Semmens - Finance Director
From: Rebecca Cronkhite - Airport Manager ~~-
Date: Aprii 26, 2006
Subject: Airport Project Funding
In recent years the FAA Airports Division has changed their policy on project
grants to require the Airport to engineer, design and bid the project rior to
applying for the grant. There is a preliminary cost estimate and a process where
the FAA "programs" the funds for the project. This programming acknowledges
FAA concurrence with the need for the project and places the funds in a budget;
however the sponsor (Kenai) is required to forward fund the preliminary costs.
All of the incurred costs are eligible for reimbursement from the grant at 95%
Federal and an additional 2.5% State match.
The project was started with $240,000 from the airport fund. This amount was
based on 2.5% of 9.5 miilion, which was the preliminary cost estimate for the
project. The cost of engineering, design and bid document preparation will
exceed the budgeted amount and therefore a transfer from airport fund balance
is required to complete the process and apply for the grant. Once the project is
complete any funds in excess of the required 2.5% match will be deposited back
in the airport fund.
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