FY2018-01A Amending Ordinance No. FY2018-01, FY2018 Budget1
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Introduced by: Borough Manager
Drafted by: Finance Director
Introduced on: 10/19/17
Public Hearing Date: 11/02/17
Adopted on: 11/02/17
KODIAK ISLAND BOROUGH
ORDINANCE NO. FY2018-01A
AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING
ORDINANCE NO. FY2018-01, FISCAL YEAR 2018 BUDGET, BY AMENDING BUDGETS TO
ACCOUNT FOR VARIOUS REVENUES THAT ARE OVER BUDGET, PROVIDING FOR
ADDITIONAL EXPENDITURES AND MOVING FUNDS BETWEEN PROJECTS.
WHEREAS, Fire Protection Area #1 received an Assistance to Firefighters Grant award of
$154,762. This grant will be used to purchase 27 new Scott Minute Self -Contained Breathing
Apparatus's and spare bottles; and
WHEREAS, the Borough received a $600,000 grant award from the U.S. Environmental
Protection Agency Cooperative Agreement for a Brownfield Site Revitalization Program. The
project period is 10/01/2017 - 09/30/2020 and provides funding to inventory, characterize,
assess and conduct cleanup planning and community involvement related activities for
Brownfield sites; and
WHEREAS, the Solid Waste Collection and Disposal fund will need to increase expenses by
$85,000 for the design of the electrical transfer stations, emergency power panels and sizing of
the generator for the Leachate Treatment Plant. The plant currently has no backup power and a
prolonged loss of power would have a severe impact on the operation of the plant. There are
Alaska Department of Environmental Conservation (DEC) loan funds available, however, if DEC
does not approve use of funds for this purpose, there are revenue bond funds available; and
WHEREAS, in May 2017 the Assembly voted to approve the use of $565,000 from the Solid
Waste Collection and Disposal fund to replace the roof and siding at the Baler Building. Rather
than use enterprise funds, there are revenue bonds available from the recent Landfill Expansion
project that would be better suited to fund this project. The project scope has also been
increased to address other deficiencies at the building, and the revised project estimate is
$750,000; and
WHEREAS, the Kodiak Electric Association (KEA) has agreed to reimburse KIB for the design
and purchase to install an electric boiler which would alleviate immediate concerns about boilers
failing at the Kodiak Middle School. The budget for this work is $275,000 and KEA has provided
a letter of intent to enter into a Memorandum of Agreement for this; and
WHEREAS, the Borough and Providence Health & Services Alaska (Providence) have
entered into a new lease agreement whereby Providence will lease and manage the hospital
Kodiak Island Borough, Alaska Ordinance No. FY2018-01A
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operations. The new lease does not require the Borough to retained ownership of specific
disposable inventory items should Providence default and the Borough had to take back
hospital operations. This will remove $277,007 of inventoried assets from Borough financials;
and
WHEREAS, in September of 2016, a third water event in as many years made emergency
repairs to a culvert running under the East Elementary ball field necessary in order to eliminate
the danger of flooding to area homes. The $120,355 of funds to pay for this project will be paid
from the Renewal and Replacement fund; and
WHEREAS, the FY2018 budget was finalized in June 2017, the lease agreement between
the Borough and Providence Health & Services Alaska was not completed so an estimate was
used. Since the budget adoption, an agreement has been signed which requires a decrease the
budgeted revenue to the Hospital Facility fund by $115,728; and
WHEREAS, the FY2018 budget was finalized in June 2017, the new Long -Term
Care enterprise fund had not been created so revenues and expenses were budgeted in
Hospital Facility fund. This will move the $1,143,322 of budgeted revenues and $704,688 of
expenses from the Hospital Facility fund to the Long -Term Care fund; and
WHEREAS, the Assembly granted two entities renting space in the Borough Annex building a
'rent holiday' for FY2018. This will decrease the revenues and decrease expense in the Building
& Grounds fund by $13,387.20; $7,176 for American Red Cross and $6,211.20 for Teen Court.
NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
Section 1: This ordinance is NOT of permanent nature and shall NOT become a part of the
Kodiak Island Borough Code of Ordinances.
Section 2: The budgeted revenues and expenses to Fire Protection Area #1 will be
increased by $154,762;
Section 3: A new project with budgeted revenues and expenses of $600,000 will be created
for a Brownfield Site Revitalization Program;
Section 4: The Solid Waste Collection and Disposal fund budgeted expenses will be
increased by $85,000;
Section 5: The budget revenues and expenses for the Roof and Siding project for Solid Waste
Collection and Disposal fund Baler Building will be increased by $185,000;
Section 6: A new project with budgeted revenues and expenses of $275,000 for the installation
of an electric boiler and the Kodiak Middle School will be created;
Kodiak Island Borough, Alaska Ordinance No. FY2018-01A
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Section 7: Inventoried hospital supplies of $277,007 will be removed from the Hospital
Facility fund;
Section 8: Renewal and replacement fund Project #13006 - Borough Building will be
reduced by $120,355 and used to pay for Project #17000 - East Elementary Ball Field Drainage;
Section 9: The budgeted revenues to the Hospital Facility fund will be reduced by $115,728;
Section 10: The budgeted $1,143,322 of revenues and $704,688 of expenses in the Hospital
Facility fund will be moved to the Long -Term Care fund;
Section 11: The budgeted revenues and expenses in the Building & Grounds fund will be
reduced by $13,387.20.
Effective Date: This ordinance takes effect upon adoption.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS SECOND DAY OF NOVEMBER, 2017.
KODIAK ISLAND BOROUGH
Daniel A. Rohrer, Mayor
VOTES:
Ayes: Crow, Kavanaugh, Schroeder, Smiley, Van Daele
Noes: Skinner, Symmons
Kodiak Island Borough, Alaska
ATTEST:
AA
Nova M. Javier, MMC, Terk
Ordinance No. FY2018-01A
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