DENALI BOROUGH, ALASKA

ORDINANCE NO. 95-08 DRAFT #2

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 1996.

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, 1995 through June 30, 1996 and made a matter of public record.

REVENUES FY '96 BUDGETED FY '95 ACTUAL FY '94

Taxes:

Overnight Accommodations $ 1,000,000 $ 550,000 $ 550,757

Severance Tax 75,000 75,000 80,381

Intergovernmental, Federal:

PILT Act 89,850 89,850 89,850

Intergovernmental, State:

Municipal Assistance 70,000 37,795 75,589

State Revenue Sharing 31,788 29,131 32,368

Electricity/Telephone Co-op Tax 20,000 24,808 22,685

Amusement/Game Share 0 170 0

Other:

Interest Income 40,000 22,500 26,880

Transfer from MSMRF 25,410 0

Miscellaneous Income 240 160 231

REVENUE TOTAL $ 1,326,878 $ 854,825 $ 878,741

PROJECTED CARRY FORWARD FROM FY 95 $ 1,084,189

EXPENSES FY '96 BUDGETED FY '95 ACTUAL FY '94

Assembly:

Assembly Members Stipend $ 5,400 $ 5,400 $ 4,800

Assembly Members Benefits 1,025 820 498

Clerk Salary 34,825 33,800 32,459

Clerk Benefits 10,000 11,000 10,207

Assembly/Clerk Travel 5,000 5,000 4,881

Assembly/Clerk Per Diem 2,800 2,800 2,727

Rent, Utilities & Postage 0 0 37,766

Rent 16,820 2,803 0

Utilities 6,000 5,300 0

Postage 3,400 3,848 0

Dues/Subscriptions/Advertisement 5,000 5,000 4,419

Elections 5,000 3,500 1,835

Equipment 7,000 6,000 5,823

Equipment Maintenance 2,000 1,700 0

Codifying Software 0 4,000 0

Equipment Rental 960 0 0

Supplies 5,400 5,500 3,999

Personnel Committee 2,000 0 0

Land Use Planning 54,500 62,446 682

Finance Committee 4,000 5,000 0

Denali Borough Economic Dev. fund 20,000 5,000 1,596

Contigency 5,000 0 0

ASSEMBLY TOTAL $196,130 $ 168,917 $ 111,692

Mayor:

Mayor Salary $ 30,000 $ 30,000 $ 30,000

Mayor Benefits 12,000 11,450 0

Administrative Staff Salary 40,500 30,000 23,305

Administrative Staff Benefits 19,000 11,250 0

Mayor/Staff Benefits 0 0 19,614

Staff Leave Replacement 6,000 5,000 0

ESC Insurance Reimbursement 7,384 5,384 0

Mayor/Staff Travel 6,000 4,000 3,240

Mayor/Staff Per Diem 3,200 2,500 1,620

Audit 7,000 8,000 6,961

Bonding & Insurance 5,000 5,000 1,591

Attorney Fees 30,000 17,000 14,401

Consultant Fees 5,000 2,500 2,217

Bank Fees 200 200 157

State Funding to Communities 31,788 32,368 0

Borough Funding to Fire Depts. 37,386 37,386 0

Cantwell Volunteer Fire Dept. 7,000 7,000 0

Contribution to Railbelt MH 5,000 0 0

Contribution to McKinley PCC & FD 2,400 0 0

Local Emergency Planning Committee 0 5,000 0

Contribution to TVVFD 47,000 0 32,600

Distribution to Communities 0 0 73,478

Contingency 5,000 5,000 385

MAYOR TOTAL $ 306,858 $ 219,038 $ 209,569

Denali Borough School District:

School Funding $ 0 $ 0 $ 0

Local Community Schools Fund 0 34,532 33,058

Capital Projects Fund 0 299,952 85,143

School Operating Fund 556,201 108,145 119,555

Major School Maintenance Fund 25,000 0 100,000

SCHOOL DISTRICT TOTAL $ 581,201 $ 442,629 $ 337,756

Denali Borough PIF 0 0 0

EXPENSES, continued FY '96 BUDGETED FY '95 ACTUAL FY '94

Matching Grants:

Matching Grants $ 0 $ 0 $ 0

MATCHING GRANTS TOTAL $ 0 $ 0 $ 0

EXPENSES TOTAL $ 1,084,189 $ 830,584 $ 659,017

Operating Excess/(Shortfall)

Over Carry Forward/Reserves $ 0

Projected Carry Forward to FY '97 1,326,880

Section 3. Authorization and Appropriation.

The appropriations are adopted and authorized for the period July 1, 1995 through June 30, 1996 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 1996 budget.

REVENUES

1.) OVERNIGHT ACCOMMODATIONS TAX - This amount was increased due to projected FY 1996 revenues being higher due to the increase of the overnight accommodations tax to 7%, as well as the increase in the rooms and structures that rent overnight accommodations.

2.) SEVERANCE TAX - The FY 1996 budget figure is based on the projected FY 1995 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. This figure is the same as the FY 1995 funding amount.

4.) MUNICIPAL ASSISTANCE - This amount is based on FY 1995 funding less a possible decrease in State Municipal Assistance.

5.) STATE REVENUE SHARING - This amount is based on the amount the Borough received in FY 1995.

6.) ELECTRICITY/TELEPHONE CO-OP TAX - This figure is not likely to change from the FY 1995 level.

7.) AMUSEMENT/GAME SHARE - The FY 1996 revenue amount is based on what was received during FY 1995 which was zero.

8.) INTEREST INCOME - This figure is based on FY 1995 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 1995 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 1996 PERS contribution rate is 18.92%.

3.) CLERK SALARY - This amount reflects an increase effective July 1, 1995 through October 31, 1995 to the amount of $32,500. This number also reflects an increase of 4% effective November 1, 1995 to $35,152.

4.) CLERK BENEFITS - This amount reflects the PERS employer contribution rate, as well as the Medicare, Worker's Compensation, and health insurance costs.

5.) ASSEMBLY/CLERK TRAVEL - This figure is the same as the FY 1995 budget. 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 an AML Conference.

6.) ASSEMBLY/CLERK PER DIEM - This amount will allow for 31 days of per diem for the Clerk or Assembly members while attending their respective conferences.

7.) RENT - The rent for the Borough offices at the Tri-Valley Community Center is $1,401.60 per month.

8.) UTILITIES - The utility budget item is based on custodial fees of $150 per month and phone/fax bills averaging $350 per month.

9.) POSTAGE - This budget for postage includes the 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, and newspaper subscriptions.

11.) ELECTIONS - This line item allows the funding for two Borough-wide elections in FY 1995.

12.) EQUIPMENT - The line item for equipment will allow the staff to purchase a desk, fire safe file cabinet, and various small items needed to update the office. An additional computer may be needed also.

13.) EQUIPMENT MAINTENANCE - The Denali Borough has an maintenance/repair agreement with Copier Care Plus for the copy machine. Also, other office equipment is in need of servicing.

14.) EQUIPMENT RENTAL - This line item is a breakdown of the leasing of the postage meter which was included in the postage line item in FY 1995. This cost is $80 per month.

15.) PERSONNEL COMMITTEE - This figure represents the funds needed to pay travel expenses for the Clerk, as well as travel for the committee members. This also includes possible education for committee members on personnel issues.

16.) SUPPLIES - This figure is based on projected supply spending for FY 1995. A large portion of the supply cost is incurred during the purchase of paper and 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.

17.) LAND USE PLANNING - This figure has been based on the funding request received from the Land Use Planning Committee (LUPC) as follows. The committee adopted this budget during their February 1995 meeting.

Municipal Land Management $ 45,000

Committee Training/Travel 7,000

Land Selection/Adjudication/Fees 15,000

Land Status Research 7,500

Clerk/Training/Travel 5,000

Meetings/Travel/Reimbursement 5,000

SUBTOTAL $84,500

COMPLETION OF CLUP RDA GRANT -$30,000

Total budgeted for LUPC $ 54,500

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

19.) DENALI BOROUGH ECONOMIC DEVELOPMENT FUND - This line item will be used to fund economic development projects on an as needed basis.

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.

MAYOR BUDGET -

1.) MAYOR SALARY - This amount is the same as the FY 1995 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 raise (from $11.75 to $12.50 per hour) for the Deputy Borough Clerk/Land Use Clerk. It also allows for a part-time staff person working approximately 32 hours per week at $8.50 per hour.

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

5.) STAFF LEAVE REPLACEMENT - This money is available in order to provide 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 figure has been changed due to an increase in the need for the Mayor to 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. Administrative Staff travel will also be included in this line item.

8.) MAYOR STAFF/PER DIEM - This number will allow for approximately 35 days of per diem, including Mayor and Staff per diem while attending training and conferences.

9.) AUDIT - This amount reflects the approximate amount needed to perform the annual audit of the Denali Borough financial records.

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

11.) 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.

12.) CONSULTANT FEES - This amount will allow for professional services as may be needed for the computer and new software.

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

14.) STATE FUNDING TO COMMUNITIES - The State revenue sharing funding ($31,788 received by the Borough in FY 1995) will be divided among four groups evenly as follows:

Panguingue Creek Homeowners - $ 7,947

Tri-Valley Library - 7,947

McKinley Community Club - 7,947

Community of Cantwell, Inc. - 7,947

TOTAL - $31,788

15.) BOROUGH FUNDING TO COMMUNITIES - This is a line item with no appropriation at the time the budget was introduced.

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.

19.) CONTRIBUTION TO MCKINLEY PARK COMMUNITY CLUB AND MCKINLEY PARK VOLUNTEER FIRE DEPARTMENT - This one time expense will help pay for the electrification of the Community Center.

20.) LOCAL EMERGENCY PLANNING COMMITTEE - This is a line item with no appropriation at the time the budget was introduced.

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.

21.) DISTRIBUTION TO COMMUNITIES - This is a line item with no appropriation at the time the budget was introduced.

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.

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 is a line item with no appropriation at the time the budget was introduced.

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 $25,00 to the established account in the same name. There is a separate Borough account established by the Borough Assembly in the amount of $75,000.

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 1996 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. Project Chamber - to construct a Chamber of Commerce building.

STATE SHARE $68,000

LOCAL SHARE $17,715

PROJECT TOTAL $85,715

B. Panguingue Creek Road Construction of 120 feet of platted road.

STATE SHARE $10,540

LOCAL SHARE $1,860

PROJECT TOTAL $12,400

Section 5. Effective Date.

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

DATE INTRODUCED: April 9, 1995

FIRST READING: April 9, 1995

PUBLIC HEARING: May 21, 1995

PASSED and APPROVED by the DENALI BOROUGH ASSEMBLY this th day of , 1995.

SIGNATURE ON FILE

Borough Mayor

ATTEST: SIGNATURE ON FILE

Borough Clerk