DENALI BOROUGH, ALASKA

ORDINANCE NO. 98-04

INTRODUCED BY: Mayor John C. Gonzales

AN ORDINANCE FOR THE DENALI BOROUGH PROVIDING FOR THE ESTABLISHMENT AND ADOPTION OF THE BUDGET FOR THE FISCAL YEAR 1999.

BE IT ENACTED BY THE ASSEMBLY OF THE DENALI BOROUGH:

Section l. Classification.

This is a non‑code ordinance.

Section 2. General Provisions.

The budget lists the authorized revenues and expenditures and the change in cash balances for the period July 1, 1998 through June 30, 1999 and made a matter of public record.

REVENUES FY '99 BUDGETED FY '98 ACTUAL FY '97

Taxes:

Overnight Accommodations $ 1,375,000 $ 1,300,000 $ 1,374,260

Severance Tax 70,000 75,000 71,480

Intergovernmental, Federal:

PILT Act 85,000 85,000 94,953

Intergovernmental, State:

Safe Communities 50,000 57,000 55,994

State Revenue Sharing 27,000 31,317 31,317

Electricity/Telephone Co-op Tax 40,000 20,000 43,921

Amusement/Game Share 100 100 319

Other:

Interest Income 80,000 60,000 77,247

Miscellaneous Income 200 300 265

Land Leases 500 0 0

REVENUE TOTAL 1,727,800 $1,628,717 $ 1,749,756

EXPENSES FY '99 BUDGETED FY '98 ACTUAL FY '97

Assembly:

Assembly Members Stipend (.27%) $ 5,400 $ 5,400 $ 4,900

Assembly Members Benefits (.04%) 900 1,138 755

Clerk Salary (2%) 38,400 36,210 36,153

Clerk Benefits (1%) 17,715 14,450 6,650

Assembly/Clerk Travel (.29%) 5,700 5,700 3,685

Assembly/Clerk Per Diem (.16%) 3,200 3,200 1,908

Rent (1%) 18,000 17,200 17,040

Utilities (.43%) 8,500 7,000 5,938

Postage (.17%) 3,400 3,400 2,780

Dues/Subscriptions/Advertisement (.25%) 5,000 5,000 4,210

Elections (.25%) 5,000 5,000 2,077

Equipment (.25%) 5,000 20,000 22,205

Equipment Maintenance (.12%) 2,500 2,500 1,956

Equipment Rental (.02%) 500 960 0

Supplies (.25%) 5,000 5,000 4,534

Personnel Committee (.12%) 2,500 2,900 127

Land Use Planning (0) 0 95,095 46,874

Municipal Land Mgmt. (2%) 41,500 0 0

Committee Training/Travel (.25%) 5,000 0 0

Land Selection/Adjudication/Fees (.25%) 5,000 0 0

Land Status Research (.12%) 2,500 0 0

Technician/Training/Travel (.20%) 4,000 0 0

Technician salary (2%) 30,300 0 0

Technician Benefits (1%) 19,000 0 0

Finance Committee (.15%) 3,000 3,000 192

Assembly Contingency(.20%) 4,000 4,000 0

Assembly Budgetary Reserve (14%) 281,231 271,965 0

ASSEMBLY TOTAL $522,246 $509,118 $ 161,984

Mayor:

Mayor Salary (2%) $ 30,000 $ 30,000 $ 30,000

Mayor Benefits (1%) 12,700 12,650 10,692

Administrative Staff Salary (2%) 38,500 33,510 24,197

Administrative Staff Benefits (1%) 21,100 12,500 8,552

Staff Leave Replacement (.30%) 6,000 6,000 0

ESC Insurance Reimbursement (.35%) 7,000 7,000 262

Mayor/Staff Travel (.35%) 7,000 7,000 5,833

Mayor/Staff Per Diem (.25%) 5,000 4,500 2,380

Annual Audit (1%) 10,000 8,000 5,854

Overnight Accommodations Audits (.20%) 4,000 4,000 0

Bonding & Insurance (.28%) 5,500 5,500 4,209

Attorney Fees (1%) 20,000 20,000 9,680

Consultant Fees (.25%) 5,000 5,000 8,197

Bank Fees (.03%) 700 700 193

State Funding to Communities (2%) 30,996 31,317 31,720

Borough Funding to Fire Depts. (2%) 37,386 37,386 37,386

Cantwell Volunteer Fire Dept. (.35%) 7,000 7,000 13,240

Contribution to Railbelt MH (.25%) 5,000 5,000 5,000

Contribution to McKinley PCC & FD (.14%) 2,800 4,000 2,800

Contribution to Anderson VFD (.7%) 14,213 0 7,785

Contribution to TVVFD (3%) 61,950 60,000 60,000

Community Libraries (.25%) 5,000 5,000 5,000

Contingency (.25%) 5,000 5,000 1,688

MAYOR TOTAL $ 341,845 $311,063 $ 274,668

Denali Borough School District:

School Funding $ 0 $ 0 $ 0

Local Community Schools Fund 0 0 0

Capital Projects Fund (3%) 67,161 67,161 66,609

School Operating Fund (53%) 1,072,943 981,736 822,895

Major School Maintenance Fund 0 42,680 0

SCHOOL DISTRICT TOTAL $ 1,140,104 $1,091,577 $ 889,504

Denali Borough PIF 0 0 0

EXPENSES, continued FY '99 BUDGETED FY '98 ACTUAL FY '97

Matching Grants:

Matching Grants $ 0 $ 0 $ 0

MATCHING GRANTS TOTAL $ 0 $ 0 $ 0

Permanent Investment Fund 0 0 0

EXPENSES TOTAL $ 2,004,195 $ 1,911,758 $1,326,156

Over Carry Forward/Reserves $ 0

Section 3. Authorization and Appropriation.

The appropriations are adopted and authorized for the period July 1, 1998 through June 30, 1999 and are the budget for that period. Subject to assembly approval by resolution, the Mayor may (1) establish line item expenditures within an authorized appropriation, and/or (2) transfer from one authorized expenditure to another any amount which would not annually exceed 10 percent of one authorized expenditure or $10,000, whichever is less.

Section 4. Budget Narrative.

The following is a line item breakdown narrative of the Fiscal Year 1999 budget.

REVENUES

1.) OVERNIGHT ACCOMMODATIONS TAX - This amount is based on revenues at 7% collected from the Borough’s Overnight Accommodation tax.

2.) SEVERANCE TAX - The FY 1999 budget figure is based on the projected FY 1998 amount. A similar year of resources sold is expected.

3.) PILT Act - The Payment In Lieu of Taxes (PILT) Act money is Federal funding that comes to the Borough based on Borough population. This money is paid to a municipality "in lieu of property taxes" on Federal land. Although the Denali Borough does not collect a property tax, it is still eligible for PILT funding.

4.) MUNICIPAL ASSISTANCE - This amount is based on FY 1998 funding less a possible decrease. The name for this funding has been changed to “Safe Communities”.

5.) STATE REVENUE SHARING - This amount is based on the amount the Borough received in FY 1998.

6.) ELECTRICITY/TELEPHONE CO-OP TAX - This figure is based on what the Borough normally receives.

7.) AMUSEMENT/GAME SHARE - The FY 1999 revenue amount is based on what was received during FY 1998.

8.) INTEREST INCOME - This figure is based on FY 1998 interest earnings, which increase every year due to the increase in the amount of funds in the general fund.

9.) MISCELLANEOUS INCOME - This figure is based on projected FY 1999 amounts. Miscellaneous revenues include copying charges, fax charges, charges for copies of the Borough reference books, etc.

EXPENSES

ASSEMBLY BUDGET -

1.) ASSEMBLY MEMBERS STIPEND - This number is based on 9 assembly members receiving monthly stipends of $50.

2.) ASSEMBLY MEMBERS BENEFITS - Elected Officials are eligible to be enrolled in the State Public Employees Retirement System (PERS). The projected FY 1999 PERS contribution rate is 15.92%.

3.) CLERK SALARY - This amount reflects an increase effective July 1, 1998 of 6%.

4.) CLERK BENEFITS - This amount reflects the PERS employer contribution rate, as well as the Medicare, Worker's Compensation, and health insurance costs. This amount also includes the liability of earned sick leave and vacation pay for the year.

5.) ASSEMBLY/CLERK TRAVEL - This figure is budgeted to allow 4 Assembly members and the Clerk to attend the annual AML conference, as well as attending other training classes.

6.) ASSEMBLY/CLERK PER DIEM - This amount will allow for per diem for the Clerk and Assembly members while attending their respective conferences as well as miscellaneous travel throughout the year.

7.) RENT - This amount represents the amount needed for rent for the Borough offices at the Tri-Valley Community Center plus a slight increase.

8.) UTILITIES - The utility budget item is based on custodial fees of $200 per month, the cost of the phone/fax/modem/internet lines, the monthly Internet connection, and the monthly Home Page update cost.

9.) POSTAGE - This budget for postage includes an annual bulk mail permit fee, approximately four resident mail-outs, as well as daily postage charges.

10.) DUES/SUBSCRIPTIONS/ADVERTISING - This line item includes Alaska Municipal League (AML) dues, monthly posting charges for the Valley Advocate, Clerk and Mayor's Association dues, conference registration fees, newspaper subscriptions, and posting the agenda in the local papers.

11.) ELECTIONS - This line item allows the funding for two Borough-wide elections in FY 1999.

12.) EQUIPMENT - The line item for equipment will allow the staff to purchase minimal equipment if needed.

13.) EQUIPMENT MAINTENANCE - The copier maintenance agreement is a large part of this expense, and since we live so far away from a service technician, this is necessary. Also, other office equipment may need servicing.

14.) EQUIPMENT RENTAL - This line item is a breakdown of the yearly maintenance fee, and in case our equipment needs maintenance and we have to rent other equipment.

15.) SUPPLIES - This figure is based on projected supply spending for FY 1998. A large portion of the supply cost is incurred by the purchase of paper, pens, envelopes for mailing, etc.. This may also include toner for the printer and copier.

16.) PERSONNEL COMMITTEE - This figure represents the funds needed to pay travel expenses for the Personnel Clerk and the committee members. This also includes possible education for committee members on personnel issues.

17.) LAND USE PLANNING - The following is a breakdown of the Land Use Planning Committee FY99 budget.

ACCOUNT 4101 ($41,500) Municipal Land Management: This budget item is will be used for the following items:

1.) Land Surveying: These funds will be used to survey State lands patented to the Borough. $30,000

2.) Computer Consultant: These funds will be used on an as-needed basis for a consultant to work on the computer. $1,500

3.) Engineering/Soils/Wetland/Wildlife Consultant: These funds will be used for a consultant in these areas of expertise. $2,000

4.) Purchase of a plotter: Purchase of this piece of equipment will make producing a detailed map of lands in the Borough possible. $8,000

ACCOUNT 4102 ($5,000) Committee Training and Travel: These funds are requested to allow for committee training and travel to APA conferences and other relevant education opportunities.

ACCOUNT 4103 ($5,000) Land Selection/Adjudication and Fees: This budget item is for expenses charged by DNR to process the Borough’s Municipal Entitlement Lands. Costs are based on advertising, recording fees, etc.

ACCOUNT 4104 ($2,500) Land Status Research: This budget item is for expenses relating to conducting research by phone, fax, or modem. This also includes annual fees to DNR for access to their Land Administration System (LAS).

ACCOUNT 4106 ($4,000) Land Technician Training and Travel: This budget item will allow the Technician to attend training seminars such as the APA Conferences and other educational seminars.

ACCOUNT 4107 ($30,300) Land Technician Salary: This budget item allows for the Technician to work 32 hours a week at $16.60 per hour.

ACCOUNT 4108 ($19,000) Land Technician Benefits: this budget item is for employee benefits such as Aetna Health Insurance and participation in the PERS Retirement System.

Municipal Land Management $ 41,500

Committee Training/Travel 5,000

Land Selection/Adjudication/Fees 5,000

Land Status Research 2,500

Technician/Training/Travel 4,000

Technician salary 30,300

Planning Technician benefits 19,000

TOTAL $107,300

18.) FINANCE COMMITTEE - This figure will be available for committee member and clerk travel as well as committee education concerning financial issues.

19.) CONTINGENCY - Contingency money is used to pay for unforeseen expenditures. This money can also be used to cover any over-expenditures without having to amend the budget.

20.) ASSEMBLY BUDGETARY RESERVE - This line item was established by

Ordinance 96-01. The amount of this fund is determined by the 15% of the amount of funds available for budgeting on January 1st.

MAYOR BUDGET -

1.) MAYOR SALARY - This amount is the same as the FY 1998 budgeted amount.

2.) MAYOR BENEFITS - Benefits for the Mayor are based on the Mayor's salary and in the PERS employer contribution rate, as well as the Medicare, Worker's Compensation, and health insurance costs.

3.) ADMINISTRATIVE STAFF SALARY - This includes a 5% raise for the full-time Administrative Staff person to commence on July 1, 1998, and a raise of 5% effective commencing on July 1, 1998 for our receptionist.

4.) ADMINISTRATIVE STAFF BENEFITS - The benefits are based on the salaries of both the Administrative Staff and include PERS, Medicare, Worker's Compensation, health insurance costs, and the liability of vacation and sick leave accrual.

5.) STAFF LEAVE REPLACEMENT - This money is available in order to provide in-house and hired staff replacements while full-time staff uses leave time.

6.) ESC INSURANCE REIMBURSEMENT - The Denali Borough has opted to reimburse the State for unemployment claims for former Borough employees rather than contributing to unemployment claims from the program every payroll. This liability figure will cover the maximum benefits for one employee.

7.) MAYOR STAFF/TRAVEL - This funding will allow for the Mayor's attendance to the AML Conferences as well as possible trips to Juneau to lobby for the Borough issues. This will also include attendance to Alaska Conference of Mayor’s Conferences. Administrative Staff travel will also be included in this line item.

8.) MAYOR STAFF/PER DIEM - This amount will allow for per diem for the Mayor and Staff while attending training and conferences.

9.) ANNUAL AUDIT - This amount reflects the approximate amount needed to perform the annual audit of the Denali Borough financial records. This amount was increased due to a different type of audit being required because the Borough exceeded receiving $100,000 in grant funds, i.e. the funds for the landfill project.

10.) OVERNIGHT ACCOMMODATIONS AUDIT - This amount reflects audits performed by Kohler, Schmitt, and Hutchison on any specific Merchant.

11.) BONDING & INSURANCE - The insurance carrier for the Denali Borough is the Alaska Municipal League/Joint Insurance Association (AML/JIA).

12.) ATTORNEY FEES - This line item is based on a pending contract with Hughes, Thorsness, Gantz, Powell, & Brundin allowing for a monthly fee of $800, leaving additional funding for any future litigation.

13.) CONSULTANT FEES - This amount will allow for professional services on a quarterly basis from Kohler, Schmitt and Hutchison, as well as any other consultants that may be needed.

14.) BANK FEES - These fees include the bank service charges as well as the cost of checks.

15.) STATE FUNDING TO COMMUNITIES - The State revenue sharing funding will be divided among four groups evenly as follows:

Panguingue Creek Homeowners - $ 7,749

Tri-Valley Library - 7,749

McKinley Community Club - 7,749

Community of Cantwell, Inc. - 7,749

TOTAL - $30,996

16.) BOROUGH FUNDING TO FIRE DEPARTMENTS - Funding is based on $8 per person provided Fire service and $10 per person provided EMS service. There are 2,077 residents in the Borough. This breaks down as follows:

City of Anderson, EMS/Fire Department - $ 16,720.00

Tri-Valley Volunteer Fire Department - 15,888.00

McKinley Park Volunteer Fire Department - 1,464.00

Cantwell Volunteer Fire Department - 3,314.00

TOTAL - $ 37,386.00

17.) CANTWELL VOLUNTEER FIRE DEPARTMENT - Additional funding to be distributed to the Cantwell Volunteer Fire Department will be $7,000.

18.) CONTRIBUTION TO RAILBELT MENTAL HEALTH - This figure represents a funding request made by Railbelt Mental Health for funds to help this group retain their clinic in Healy. ($5,000)

19.) CONTRIBUTION TO MCKINLEY PARK COMMUNITY CLUB AND MCKINLEY PARK VOLUNTEER FIRE DEPARTMENT - Additional funding to be distributed to the McKinley Park Community Club and McKinley Park Volunteer Fire Department. ($2,800)

20.) ANDERSON VOLUNTEER FIRE DEPARTMENT - Additional funding to be distributed to the Anderson Volunteer Fire Department will be $14,213.

21.) CONTRIBUTION TO TRI-VALLEY VOLUNTEER FIRE DEPARTMENT - This line item is to fund the Summer EMT/Fire Department Program for Healy and the surrounding area. ($61,950)

22.) CONTRIBUTION TO COMMUNITY LIBRARIES - This line item is broken down as follows:

Tri-Valley Library 2,500

Anderson Library 1,500

Cantwell Library 1,000

TOTAL $5,000

23.) CONTINGENCY - Contingency money is used to pay for unforeseen expenditures. This money could also be used to cover any over-expenditures without having to amend the budget.

DENALI BOROUGH SCHOOL DISTRICT BUDGET -

1.) LOCAL COMMUNITY SCHOOLS FUND - This is a line item with no appropriation at the time the budget was introduced.

2.) CAPITAL PROJECTS FUND - This line item amount is 67,161.

3.) SCHOOL OPERATING FUND - This would fund basic needs of the operation of the Denali Borough School District.

4.) MAJOR SCHOOL MAINTENANCE RESERVE FUND - This line item would add $0 to the established account in the same name.

DENALI BOROUGH PERMANENT INVESTMENT FUND

1.) DENALI BOROUGH PERMANENT INVESTMENT FUND - This line item would contribute funds to the already established Denali Borough Permanent Investment Fund.

CAPITAL MATCHING GRANTS -

1.) MATCHING GRANTS - The FY 1999 Capital Matching Grants and funding shares, listed by priority, are as follows. Please note that actual Borough costs are zero, except for administrative costs, which will not be reported in this category.

A.) Cantwell Community Hall Addition: local share amount $3,750

Project total - $28,750

B.) Tri-Valley Leadership Track and Multi-purpose Track: local share amount $3,150 Project total - $24,150

Section 5. Effective Date.

This ordinance becomes effective upon its adoption by the Denali Borough Assembly.

DATE INTRODUCED: April 19, 1998

FIRST READING: April 19, 1998

PUBLIC HEARING: May 17,1998

PASSED and APPROVED by the DENALI BOROUGH ASSEMBLY this 17th day of May, 1998.

SIGNATURE ON FILE

Borough Mayor

ATTEST: SIGNATURE ON FILE

Borough Clerk