DENALI BOROUGH, ALASKA

ORDINANCE NO.   96-10                 

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 1997.

 

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, 1996 through June 30, 1997 and made a matter of public record.

 

 

           

REVENUES                                                                                           FY '97   BUDGETED FY '96   ACTUAL FY '95

 

   Taxes:                 

            Overnight Accommodations                                             $ 1,280,000               $ 1,000,000                 $ 651,378

            Severance Tax                                                                      75,000                      75,000                      73,799

 

   Intergovernmental, Federal:

            PILT Act                                                                               85,000                      89,850                      89,850

 

   Intergovernmental, State:

            Municipal Assistance                                                            60,000                      70,000                      72,601

            State Revenue Sharing                                                           29,500                      31,788                      31,788

            Electricity/Telephone Co-op Tax                                              80,000                      20,000                      22,721

Amusement/Game Share                                                                      100                              0                            96

 

   Other:

            Interest Income                                                                     48,000                      40,000                      46,204

            Miscellaneous Income                                                                240                           240                          274

 

            REVENUE TOTAL                                                           $1,657,840                $1,326,878                 $ 988,711

 

 

 

PROJECTED CARRY FORWARD FROM FY 96 $1,326,878

 

 

 

 


EXPENSES                                                                                       FY '97         BUDGETED FY '96      ACTUAL FY '95

 

   Assembly:

Assembly Members Stipend (0.33%)                                                $  5,400                    $  5,400                     $ 4,950

            Assembly Members Benefits (0.06%)                                       1,025                        1,025                          721

Clerk Salary (2.17%)                                                                          35,870                      34,825                      34,102

            Clerk Benefits (0.75%)                                                           12,400                      10,000                      13,809            Assembly/Clerk Travel (0.30%)                                                 5,000                        5,000                       2,078

            Assembly/Clerk Per Diem (0.18%)                                            3,000                        2,800                          479

            Rent (1.02%)                                                                         16,820                      16,820                       2,803

            Utilities (0.39%)                                                                      6,500                        6,000                       5,589

            Postage (0.21%)                                                                     3,400                        3,400                       3,494

            Dues/Subscriptions/Advertisement (0.30%)                               5,000                        5,000                       3,950

            Elections (0.30%)                                                                    5,000                        5,000                       1,806

            Equipment (1.33%)                                                                22,000                        7,000                       3,939

            Equipment Maintenance (0.12%)                                              2,000                        2,000                       1,195

            Codifying Software                                                                         0                              0                       1,000

            Equipment Rental (0.06%)                                                          960                           960                              0

            Supplies (0.30%)                                                                     5,000                        5,400                       4,140

            Personnel Committee (0.21%)                                                  3,500                        2,000                              0

            Land Use Planning (5.29%)                                                    87,470                      54,500                      37,013

            Finance Committee (0.18%)                                                     3,000                        4,000                          168

            Denali Borough Economic Dev. Fund (1.21%)                          20,000                     20,000                             0

            Contingency                                                                                  0                        5,000                       1,620

            Assembly Budgetary Reserve (13.83%)                                 228,463                              0                              0

 

            ASSEMBLY TOTAL                                                           $471,808 (29%)          $196,130                 $ 122,856

 

   Mayor:

            Mayor Salary (1.82%)                                                         $ 30,000                    $ 30,000                   $ 30,000

            Mayor Benefits (0.73%)                                                          12,000                      12,000                      10,656

            Administrative Staff Salary (1.79%)                                         29,500                      40,500                      23,733

            Administrative Staff Benefits (0.74%)                                       12,150                      19,000                       9,810

            Staff Leave Replacement (0.36%)                                             6,000                        6,000                              0

            ESC Insurance Reimbursement   (0.42%)                                  7,000                        7,384                            12

            Mayor/Staff Travel (0.42%)                                                       7,000                        6,000                       3,979

            Mayor/Staff Per Diem (0.24%)                                                  4,000                        3,200                       2,340

            Audit (0.36%)                                                                          6,000                        7,000                       7,926

            Bonding & Insurance (0.33%)                                                   5,500                        5,000                       4,558

            Attorney Fees (1.82%)                                                           30,000                      30,000                      20,394

            Consultant Fees (0.30%)                                                         5,000                        5,000                       3,223

            Bank Fees (0.02%)                                                                    300                           200                          162

            State Funding to Communities (1.92%)                                   31,720                      31,788                      32,368

            Borough Funding to Fire Depts.  (2.26%)                                 37,386                      37,386                      37,386

Cantwell Volunteer Fire Dept.  (0.42%)                                                  7,000                        7,000                       7,000

            Contribution to Railbelt MH (0.30%)                                          5,000                        5,000                              0

Contribution to McKinley PCC & FD                                                      2,800                        2,400                              0

Contribution to TVVFD (3.63%)                                                           60,000                      47,000                              0

Community Libraries (0.30%)                                                               5,000                              0                              0

            Contingency (0.30%)                                                               5,000                        5,000                       2,212

 

            MAYOR TOTAL                                                                 $308,356 (18%)          $306,858                 $ 195,759

 

   Denali Borough School District:

            School Funding                                                                          $ 0                            $ 0                           $ 0

            Local Community Schools Fund                                                     0                              0                      34,532

            Capital Projects Fund                                                                   0                              0                    299,952

            School Operating Fund (48.12%)                                           867,764                     556,201                    108,145

            Major School Maintenance Fund (4.84%)                                 40,000                      25,000                              0

            SCHOOL DISTRICT TOTAL                                               $907,764 (53%)          $581,201                 $ 442,629

 

                Denali Borough PIF                                                                   0                              0                              0

 

   Matching Grants:

            Matching Grants                                                                         $ 0                            $ 0                           $ 0

            MATCHING GRANTS TOTAL                                                     $ 0                            $ 0                           $ 0

 

 

            EXPENSES TOTAL                                                       $ 1,687,928               $ 1,084,189                  $761,244

 

                      

            Over Carry Forward/Reserves                                                       $ 0

 

Projected Carry Forward to FY '98            $1,296,790

 

 

Section 3.  Authorization and Appropriation.

        The appropriations are adopted and authorized for the period July 1, 1996 through June 30, 1997 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 based on revenues at 7%.

 

2.)        SEVERANCE TAX - The FY 1997 budget figure is based on the projected FY 1996 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 expected to decrease slightly in FY 1997.

 

4.)        MUNICIPAL ASSISTANCE - This amount is based on FY 1996 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 1996, with a small expected reduction.

 

6.)        ELECTRICITY/TELEPHONE CO-OP TAX - This figure is higher because since incorporation the Borough has only been receiving the telephone portion of this.  It is estimated the Borough will receive the amount due for the past five years, as well as the usual amount we have always received.

 

7.)        AMUSEMENT/GAME SHARE - The FY 1996 revenue amount is based on what was received during FY 1996 which was close to $100.

 

8.)        INTEREST INCOME - This figure is based on FY 1996 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 1996 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 16.06%.

 

3.)        CLERK SALARY - This amount reflects an increase effective July 1, 1996 of 3%.

 

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 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 as well as miscellaneous travel throughout the year.

 

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, 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 1997.

 

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

 

13.)     EQUIPMENT MAINTENANCE - The new copier would need a maintenance agreement since we live so far away from a service technician.  Also, other office equipment may need 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 and 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 1996.  A large portion of the supply cost is incurred during 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.

 

17.)     LAND USE PLANNING - This figure has been based on the funding request received from the Land Use Planning Committee (LUPC) as follows.

 

Municipal Land Management                                                $ 14,700

Committee Training/Travel                                                          5,000

Land Selection/Adjudication/Fees                                           13,160

Land Status Research                                                                 5,000

Technician/Training/Travel                                                          5,000

Meetings/Travel/Reimbursement                                               2,500

Planning Technician salary                                                       24,960

Planning Technician benefits                                                    14,650

Contingency                                                                                  2,500

SUBTOTAL                                                                              $87,470                   

 

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.  This number is the same as last year.

 

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 1996 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 full time status employment category move and a raise for the Clerk/Typist as her duties and responsibilities have increased.  The raise will be from her current amount of $9 per hour to $9.50 from July through December, and $10 per hour on January 1, 1997.    This also includes hiring a part-time person for two days a week at 8.50 per hour.  This person replaces the time that was allotted last year by sharing the LUPC Clerk.

 

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 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 on a quarterly basis from Kohler, Schmitt and Hutchison, as well as any other consultants that may be needed for the computer.

 

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 ($31,720 received by the Borough in FY 1996) will be divided among four groups evenly as follows:

 

Panguingue Creek Homeowners -    $ 7,930

Tri-Valley Library -                                    7,930

McKinley Community Club -                7,930

Community of Cantwell, Inc. -             7,930

TOTAL -                                          $31,720

 

15.)     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

 

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

 

17.)     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.

 

18.)     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 will be $2,800.

 

19.)     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.)     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.

 

 

 

 

 

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

 

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 $40,000 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.  There was nothing budgeted for this line item at the time this budget was introduced.

 

CAPITAL MATCHING GRANTS -

 

1.)        MATCHING GRANTS - The FY 1997 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.

 

HEALY HOCKEY ADDITION PROJECT  - This line item for 1997 includes an addition project for the Healy Hockey Association Recreational Center.  The State share asked for is $55,000 and the local share amount is $30,500.

 

 

Section 5.  Effective Date.

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

 

                                   DATE INTRODUCED:    April 14, 1996         

                                   FIRST READING:      April 14, 1996 

 

                                   PUBLIC HEARING:     May 12, 1996   

 

 

PASSED and APPROVED by the DENALI BOROUGH ASSEMBLY this 12th day of May, 1996.

 

                                                                                                                    

                                           SIGNATURE ON FILE

                                                  Borough Mayor

 

ATTEST:                        SIGNATURE ON FILE                                                  

                                                 Borough Clerk