DENALI BOROUGH, ALASKA

ORDINANCE NO.   99-02                

 

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 2000.

 

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, 1999 through June 30, 2000 and made a matter of public record.

 

 

           

REVENUES                                                                         FY '2000   BUDGETED FY '99   ACTUAL FY '98

 

   Taxes:                 

            Overnight Accommodations                                $ 1,425,000           $ 1,375,000          $ 1,421,285

            Severance Tax                                                               70,000                    70,000                   75,253

 

   Intergovernmental, Federal:

            PILT Act                                                                          95,000                    85,000                   99,137

 

   Intergovernmental, State:

            Safe Communities                                                        50,000                    50,000                   50,664

            State Revenue Sharing                                                 29,000                    27,000                   30,996

            Electricity/Telephone Co-op Tax                                  40,000                    40,000                   28,375

            Amusement/Game Share                                                  100                         100                         146

 

   Other:

            Interest Income                                                               80,000                    80,000                   91,159

            Miscellaneous Income                                                        200                         200                     1,947

            Land Leases                                                                        500                         500                         458

            Penalties and Interest                                                              0                              0                         278

 

            REVENUE TOTAL                                                 1,789,800            $1,727,800          $ 1,799,698

 

 

 

 

 

 

 


EXPENSES                                                               FY '2000         BUDGETED FY '99      ACTUAL FY '98

   Assembly:

            Assembly Members Stipend (.26%)                          $  5,400                  $  5,400                  $ 4,950

            Assembly Members Benefits (.06%)                             1,270                         900                         824

            Clerk Salary (1.95%)                                                     39,700                    38,400                   32,056

            Clerk Benefits (1.2%)                                                    25,000                    17,715                     9,917             

            Assembly/Clerk Travel (.28%)                                        5,700                      5,700                     5,678

            Assembly/Clerk Per Diem (.15%)                                  3,200                      3,200                     2,910

            Rent (.88%)                                                                     18,000                    18,000                   17,314

            Utilities (.41%)                                                                  8,500                      8,500                     5,887

            Postage (.16%)                                                                3,400                      3,400                     2,377

            Dues/Subscriptions/Advertisement (.24%)                   5,000                      5,000                     3,606

            Elections (.24%)                                                               5,000                      5,000                     1,870

            Equipment (.24%)                                                            5,000                      5,000                   12,854

            Equipment Maintenance (.12%)                                     2,500                      2,500                     1,850

            Equipment Rental (.04%)                                                1,000                         500                             0

            Supplies (.24%)                                                                5,000                      5,000                     3,572

            Personnel Committee (.12%)                                         2,500                      2,500                             0

            Land Use Planning                                                                  0                              0                   72,082

            Municipal Land Mgmt. (1.23%)                                    25,000                    41,500                             0

            Committee Training/Travel (.12%)                                 2,500                      5,000                             0

            Land Selection/Adjudication/Fees (.12%)                    2,500                      5,000                             0

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

            Technician/Training/Travel (.12%)                                  2,500                      4,000                             0

            Technician salary (1.4%)                                               28,500                    30,300                             0

            Technician Benefits (.98%)                                           20,000                    19,000                   0         

            Finance Committee (.14%)                                             3,000                      3,000                             0

            Assembly Contingency(.19%)                                        4,000                      4,000                     1,934

            Assembly Budgetary Reserve (15%)                        302,892                  281,231                             0

 

            ASSEMBLY TOTAL                                                $529,562               $522,246              $ 179,681

                                                                                                                                                                                

   Mayor:

            Mayor Salary (1.47%)                                                $ 30,000                 $ 30,000                $ 30,000

            Mayor Benefits (.73%)                                                   15,000                    12,700                   12,684

            Administrative Staff Salary (2.3%)                               46,800                    38,500                   26,716

            Administrative Staff Benefits (1.5%)                            30,800                    21,100                     9,207

            Staff Leave Replacement (.29%)                                   6,000                      6,000                     1,422

            ESC Insurance Reimbursement   (.34%)                      7,000                      7,000                           39

            Mayor/Staff Travel (.34%)                                                7,000                      7,000                     7,072

            Mayor/Staff Per Diem (.24%)                                         5,000                      5,000                     2,594

            Annual Audit (.49%)                                                       10,000                    10,000                     7,777

            Overnight Accommodations Audits (.19%)                   4,000                      4,000                     3,837             

            Bonding & Insurance (.27%)                                           5,500                      5,500                     3,765

            Attorney Fees (.98%)                                                    20,000                    20,000                   11,510

            Consultant Fees (.24%)                                                   5,000                      5,000                     4,510

            Bank Fees (.03%)                                                               700                         700                         279

            State Funding to Communities (1.5%)                        30,617                    30,996                   31,316

            Borough Funding to Fire Depts.  (1.8%)                     37,386                    37,386                   37,386

            Cantwell Volunteer Fire Dept.  (.34%)                           7,000                      7,000                     7,000

            Contribution to Railbelt MH (.24%)                                 5,000                      5,000                     5,000

            Contribution to McKinley PCC & FD (.13%)                 2,800                      2,800                     4,000

            Contribution to Anderson VFD (.56%)                        11,500                    14,213                             0

            Contribution to TVVFD (3%)                                        66,950                    61,950                   60,000

            Community Libraries (.24%)                                           5,000                      5,000                     5,000

            Contingency (.24%)                                                         5,000                      5,000                         290

 

            MAYOR TOTAL                                                       $ 364,053               $341,845              $ 271,404

                                                                                                                                                

   Denali Borough School District:

            School Funding                                                                     $ 0                           $ 0                          $ 0

            Local Community Schools Fund                                            0                              0                            0

            Capital Projects Fund (3%)                                         68,035                    67,161                   67,161

            School Operating Fund (53%)                                1,071,127              1,072,943                 981,736

            Major School Maintenance Fund                                           0                              0                             0

            SCHOOL DISTRICT TOTAL                             $ 1,139,162            $1,140,104          $ 1,048,897

 

    Denali Borough PIF                                                               0        0                              0

 

            EXPENSES, continued                                          FY '2000       BUDGETED FY '99      ACTUAL FY '98

 

   Matching Grants:

            Matching Grants                                                                    $ 0                           $ 0                          $ 0

            MATCHING GRANTS TOTAL                                          $ 0                           $ 0                          $ 0

 

   Permanent Investment Fund                                                            0                              0                             0

 

 

            EXPENSES TOTAL                                            $ 2,032,777           $ 2,004,195           $1,499,982

 

                      

            Over Carry Forward/Reserves                                            $ 0

 

 

Section 3.  Authorization and Appropriation.

        The appropriations are adopted and authorized for the period July 1, 1999 through June 30, 2000 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 2000 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 2000 budget figure is based on the projected FY 1999 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.)        SAFE COMMUNITIES - This amount is based on FY 1999 funding less a possible decrease.   

 

5.)        STATE REVENUE SHARING - This amount is based on the amount the Borough received in FY 1999.

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

 

7.)        AMUSEMENT/GAME SHARE - The FY 2000 revenue amount is based on what was received during FY 1999.

 

8.)        INTEREST INCOME - This figure is based on FY 1999 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 2000 amounts.  Miscellaneous revenues include copying charges, fax charges, charges for copies of the Borough reference books, etc.

 

10.) LAND LEASES - This amount is based on what the Borough expects to

receive for lands it leases to different entities.

 

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 2000 PERS contribution rate is estimated to be 23.34%.

 

3.)        CLERK SALARY - This amount reflects a 3% increase effective July 1,1999.

 

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, the National Association of Counties 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 2000.

 

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 portion of this line item.

 

14.)     EQUIPMENT RENTAL - This line item is for the rental fee for the electronic postage scale and rental cost of other equipment as needed.

 

15.)     SUPPLIES - This figure is based on projected supply spending for FY 1999.  A large portion of the supply cost is incurred by the purchase of paper, pens, envelopes for mailing, etc.. This also includes toner for the printers and the 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. (2,500)

 

17.)     LAND USE PLANNING - The following is a breakdown of the Land Use Planning Committee FY 2000 budget.

 

ACCOUNT 4101 ($25,000)  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.  $22,500

2.)  Equipment/paper/cartridges: $2,500

 

ACCOUNT 4102 ($2,500) 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 ($2,500) 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 ($2,500) 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 amount includes a 3% raise for the Technician.

 

ACCOUNT 4108 ($20,000) 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                                                $ 25,000

Committee Training/Travel                                                          2,500

Land Selection/Adjudication/Fees                                             2,500

Land Status Research                                                                 2,500

Technician/Training/Travel                                                          2,500

Technician salary                                                                       28,500

Planning Technician benefits                                                    20,000

 

TOTAL                                                                                      $83,500                   

 

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 1999 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 amount includes a 3% raise for the Executive Assistant, and a raise to $10.45 per hour for the Administrative Clerk.

 

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/ACOM Conferences as well as trips to Juneau to lobby for the Borough issues.  Administrative Staff travel is also 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 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 -                                         $ 7,654

Tri-Valley Library -                                                                        7,654

McKinley Community Club -                                                        7,654

Community of Cantwell, Inc. -                                                      7,654

TOTAL -                                                                                    $30,617

 

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 $11,500.  

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 68,035.

 

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 2000 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.)  Chamber Building, Phase II: local share amount $1,950

     Project total - $14,950

 

B.)  Foundation repairs to Kids Stop: local share amount $1,500              Project total - $11,500

 

C.)  Community Well for Panguingue Creek Homeowner’s Association: local       share amount $1,950

     Project total - $14,950

 

D.)  Improvements to Healy hockey rink: local share amount $1,500

          Project total - $11,500

 

 

Section 5.  Effective Date.

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

 

 

                                   DATE INTRODUCED:    April 11, 1999 

                                   FIRST READING:      April 11, 1999    

                                   PUBLIC HEARING:     May 16, 1999   

 

 

PASSED and APPROVED by the DENALI BOROUGH ASSEMBLY this 16 th day of May, 1999.

                                                                                                                  

 

                                                                     SIGNATURE ON FILE     

                                                                         Borough Mayor

 

ATTEST:                                                                                                         SIGNATURE ON FILE                                                           

                                                                                                                             Borough Clerk