DENALI BOROUGH, ALASKA

ORDINANCE NO.   97-03                

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 1998.

 

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, 1997 through June 30, 1998 and made a matter of public record.

 

 

           

REVENUES                                                                   FY '98   BUDGETED FY '97   ACTUAL FY '96

 

   Taxes:                 

            Overnight Accommodations                                             $ 1,300,000               $ 1,280,000              $ 1,228,345

            Severance Tax                                                                      75,000                      75,000                      91,770

 

   Intergovernmental, Federal:

            PILT Act                                                                               85,000                      85,000                      86,204

 

   Intergovernmental, State:

            Municipal Assistance                                                            57,000                      60,000                      65,948

            State Revenue Sharing                                                           31,317                      29,500                      31,720

            Electricity/Telephone Co-op Tax                                              20,000                      80,000                      90,193

Amusement/Game Share                                                                      100                           100                          219

 

   Other:

            Interest Income                                                                     60,000                      48,000                      65,217

            Miscellaneous Income                                                                300                           240                          470

 

            REVENUE TOTAL                                                            1,628,717                $1,657,840              $ 1,660,086

 

 

 

 

 

 

 


EXPENSES                                                                                       FY '98         BUDGETED FY '97      ACTUAL FY '96

   Assembly:

            Assembly Members Stipend (0.30%)                                    $  5,400                    $  5,400                     $ 5,000

            Assembly Members Benefits (0.07%)                                       1,138                        1,025                          757

            Clerk Salary (2.01%)                                                              36,210                      35,870                      32,087

            Clerk Benefits (0.81%)                                                           14,450                      12,400                       9,452            Assembly/Clerk Travel (0.32%)                                                 5,700                        5,000                       2,457

            Assembly/Clerk Per Diem (0.18%)                                            3,200                        3,000                          630

            Rent (0.96%)                                                                         17,200                      16,820                      16,820

            Utilities (0.39%)                                                                      7,000                        6,500                       5,587

            Postage (0.33%)                                                                     3,400                        3,400                       1,837

            Dues/Subscriptions/Advertisement (0.19%)                               5,000                        5,000                       3,618

            Elections (0.28%)                                                                    5,000                        5,000                       2,173

            Equipment (0.28%)                                                                20,000                      22,000                       4,818

            Equipment Maintenance (0.14%)                                              2,500                        2,000                       1,205

            Equipment Rental (0.06%)                                                          960                           960                          399

            Supplies (0.28%)                                                                     5,000                        5,000                       5,628

            Personnel Committee (0.16%)                                                  2,900                        3,500                          274

            Land Use Planning (5.28%)                                                    95,095                      87,470                      14,002

            Finance Committee (0.17%)                                                     3,000                        3,000                              0

            Denali Borough Economic Dev. Fund (0%)                                       0                     20,000                             0

            Assembly Contingency(0.23%)                     4,000                          0                        1,506

            Assembly Budgetary Reserve (15%)                                      271,965                      56,723                              0

 

            ASSEMBLY TOTAL                                                           $509,118                   $300,068                 $ 108,241

                                                                                                                                                                                

   Mayor:

            Mayor Salary (1.67%)                                                         $ 30,000                    $ 30,000                   $ 30,000

            Mayor Benefits (0.71%)                                                          12,650                      12,000                      11,859

            Administrative Staff Salary (1.86%)                                         33,510                      29,500                      22,458

            Administrative Staff Benefits (0.70%)                                       12,500                      12,150                      10,068

            Staff Leave Replacement (0.34%)                                             6,000                        6,000                              0

            ESC Insurance Reimbursement   (0.39%)                                  7,000                        7,000                              0

            Mayor/Staff Travel (0.39%)                                                       7,000                        7,000                       5,353

            Mayor/Staff Per Diem (0.25%)                                                  4,500                        4,000                       2,313

            Annual Audit (0.45%)                                                               8,000                        6,000                       6,056

            Overnight Accommodations Audits (0.23%)                               4,000                              0                              0

            Bonding & Insurance (0.31%)                                                   5,500                        5,500                       4,727

            Attorney Fees (1.11%)                                                           20,000                      30,000                      12,193

            Consultant Fees (0.28%)                                                         5,000                        5,000                       4,385

            Bank Fees (0.04%)                                                                    700                           300                          626

            State Funding to Communities (1.74%)                                   31,317                      31,720                      31,788

            Borough Funding to Fire Depts.  (2.08%)                                 37,386                      37,386                      37,386

            Cantwell Volunteer Fire Dept.  (0.39%)                                      7,000                        7,000                       7,000

            Contribution to Railbelt MH (0.28%)                                          5,000                        5,000                       5,000

            Contribution to McKinley PCC & FD (0.16%)                             4,000                        2,800                       2,400

            Contribution to TVVFD (3.33%)                                               60,000                      60,000                      47,000

            Community Libraries (0.28%)                                                   5,000                        5,000                              0

            Contingency (0.28%)                                                               5,000                        5,000                       1,900

 

            MAYOR TOTAL                                                                $ 311,063                   $308,356                 $ 242,512

                                                                                                                                                

   Denali Borough School District:

            School Funding                                                                          $ 0                            $ 0                           $ 0

            Local Community Schools Fund                                                     0                              0                      35,803

            Capital Projects Fund (3.73%)                                               67,161                              0                    323,973

            School Operating Fund (54.45%)                                           981,736                     889,504                    196,425

            Major School Maintenance Fund                                             42,680                      40,000                      25,000

            SCHOOL DISTRICT TOTAL                                           $ 1,091,577                   $907,764                 $ 581,201

 

    Denali Borough PIF                                                                     0         0                              0

 

            EXPENSES, continued                                                         FY '98       BUDGETED FY '97      ACTUAL FY '96

 

   Matching Grants:

            Matching Grants                                                                         $ 0                            $ 0                           $ 0

            MATCHING GRANTS TOTAL                                                     $ 0                            $ 0                           $ 0

 

   Permanent Investment Fund                                                                    0                     150,000                              0

 

 

            EXPENSES TOTAL                                                       $ 1,911,758               $ 1,687,928                  $906,954

 

                      

            Over Carry Forward/Reserves                                                       $ 0

 

 

Section 3.  Authorization and Appropriation.

        The appropriations are adopted and authorized for the period July 1, 1997 through June 30, 1998 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 1998 budget.

 

REVENUES

 

1.)        OVERNIGHT ACCOMMODATIONS TAX - This amount was based on revenues at 7%.

 

2.)        SEVERANCE TAX - The FY 1998 budget figure is based on the projected FY 1997 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 1997 funding less a possible decrease. 

 

5.)        STATE REVENUE SHARING - This amount is based on the amount the Borough received in FY 1997, with a small expected reduction.

 

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

 

7.)        AMUSEMENT/GAME SHARE - The FY 1998 revenue amount is based on what was received during FY 1997.

 

8.)        INTEREST INCOME - This figure is based on FY 1997 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 1998 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 1998 PERS contribution rate is 21.06%.

 

3.)        CLERK SALARY - This amount reflects an increase effective July 1, 1997 of 4%.

 

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 based on the FY 97 budget with a slight increase.  The figure is budgeted to allow 3 Assembly members, preferably ones that have not attended before, to attend the annual AML conference, as well as the Clerk attending the AML Conference and various training classes. 

 

6.)        ASSEMBLY/CLERK PER DIEM - This amount will allow for 35 days of per diem for the Clerk or Assembly members while attending their respective conferences as well as miscellaneous travel throughout the year.

 

7.)        RENT - The rent for the Borough offices at the Tri-Valley Community Center is $1,430.00 per month.

 

8.)        UTILITIES - The utility budget item is based on custodial fees of $200 per month and phone/fax/modem and the Internet connection.

 

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 1998.

 

12.)     EQUIPMENT - The line item for equipment will allow the staff to purchase  new office chairs, file cabinet and various small items needed to update the office.   

 

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 1997.  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.  The amount of paper and toner needed is unknown, due to the number of elections, mail-outs, special projects, etc.

 

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 - This figure has been based on the funding request received from the Land Use Planning Committee (LUPC).

 

Municipal Land Management                                                $ 36,000

Committee Training/Travel                                                          4,000

Land Selection/Adjudication/Fees                                             5,000

Land Status Research                                                                 2,500

Technician/Training/Travel                                                          4,000

Meetings/Travel/Reimbursement                                               2,000

Planning Technician salary                                                       26,770

Planning Technician benefits                                                    14,825

 

TOTAL                                                                                      $95,095                   

 

18.)     FINANCE COMMITTEE - This figure will be available for committee member travel and fees incurred with the research needed for the landfill project, the capital improvement fund as well as the investment options.

 

19.)     DENALI BOROUGH ECONOMIC DEVELOPMENT FUND - No funds have been appropriated to this line item at this time.

 

20.)     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.

 

21.) 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 1997 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 4% raise for the full-time Clerk/Typist to commence on July 1, 1997, and a raise of 4% effective January 1, 1998 for our part-time receptionist.

 

4.)        ADMINISTRATIVE STAFF BENEFITS - The benefits are based on the salaries of 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 number will allow for per diem, including 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.

 

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, Grantz, 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.  This amount also includes an yearly Overnight Accommodations audit.

 

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 ($31,317 received by the Borough in FY 1997) will be divided among four groups evenly as follows:

 

Panguingue Creek Homeowners -                                         $ 7,829

Tri-Valley Library -                                                                        7,829

McKinley Community Club -                                                        7,829

Community of Cantwell, Inc. -                                                      7,829

TOTAL -                                                                                    $31,317

 

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. ($4,000)

 

20.)     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. ($60,000)

 

21.) 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

 

22.)     CONTINGENCY - Contingency money is used to pay for unforseen

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 $67,161.

 

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

 

4.)        MAJOR SCHOOL MAINTENANCE RESERVE FUND - This line item would add $42,680 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 1998 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.

 

PANGUINGUE ROAD PROJECT  - This line item for 1998 is a road project for the Panguingue Creek Subdivision.  The State share asked for is $33,150 and the Grant Match Share from PCHA is $5,850.

 

 

Section 5.  Effective Date.

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

 

                                   DATE INTRODUCED:   APRIL 13, 1997

                                   FIRST READING:     APRIL 13, 1997   

                                   PUBLIC HEARING:    MAY 18, 1997  

 

PASSED and APPROVED by the DENALI BOROUGH ASSEMBLY this 18th day of MAY, 1997.

                                                                                                                          SIGNATURE ON FILE     

                                                  Borough Mayor

 

ATTEST:                                    SIGNATURE ON FILE                                                                    Borough Clerk