1990-02-27 Work SessionN
C
KODIAK ISLAND BOROUGH
SERVICE DISTRICT NO. 1 ADVISORY BOARD
Tuesday, February 27, 1990 - 7:30 p.m.
WORKSESSION
The worksession was called to order by Vice Chairman Jim Fisk at 7:42 p.m, on
February 27, 1990. Roll call was taken:
MEMBERS PRESENT
Scott Arndt
Jim Berg
Vern Berns
Okey Chandler
Jim Fisk, Vice Chairman
Earl Smith
MEMBERS ABSENT
Tony Perez, Chairman
STAFF PRESENT
Ray Camardella
Donna Smith
The agenda for this meeting was to develop the fiscal year work program. By
March 31, a public hearing will have to be held.
Mr. Karl Short, KIB Accountant, was present to answer any questions from the
Board. Mr. Short explained that new this year to the budget process is a
budget with goals and objectives for the coming fiscal year. For example,
Service District No. 1 Roads budget would explain the ditching, grading, and
snow removal. Mr. Short had a current balance sheet for the Board to review.
Mr. Arndt asked Mr. Short about depreciation of the water and sewer projects.
He went on to say there is no way to justify an increase in assessment to cover
depreciation. Mr. Short explained that depreciation is called "another source
of funds". On the balance sheet, it is carried as contributions from the State
of Alaska. Assets are depreciated and contributions of earnings are amortized.
The balance sheet reflects revenue after expenses.
Mr. Arndt said that before Mr. Crowe left, he wrote a memo which said the
Borough had taken money out of grant monies and transferred them to other than
Service District use. Staff was directed to search previous meeting minutes
for the memo dated September 1988 or later.
Mr. Short said the District has $650,000 - $700,000 to work with. There is
$450,000 in capital projects and $250,000 in the water fund that could be moved
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to capital projects. The $56,000 in the water fund is for day-to-day
operations. He also reported on how late charges are billed per Title 16.
Mr. Smith stated that staff wages for the Engineering/Facilities Department,
Finance Department, and Data Processing Department need to be included in the
budget. Mr. Short said that 5% of the Finance and Data Processing Department's
time is spent on Service District #1 utilities and garbage for a 15% total
charge. This is spread to the water, sewer, and garbage accounts for a total
of approximately $1,000 a month charged to each account.
The Board discussed each of the three funded accounts. It was decided to raise
the mil rate one-fourth to off -set the increase in the snow removal line item
to $54,000.
The next regular meeting was scheduled for March 20, 1990, at 7:30 p.m. with a
public hearing on the budget to be held as part of the regular meeting.
The meeting adjourned at 10:10 p.m.
Donna Smith, Secretary
Date
Service District No. 1 - 2/27/90 Worksession
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