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2018-02-03 Work Session Kodiak Island Borough Assembly Special Work Session Saturday, February 3, 2018, 9 a.m. Borough Assembly Chambers Work Sessions are informal meetings of the Assembly where Assembly members review the upcoming regular meeting agenda packet and seek or receive information from staff. Although additional items not listed on the work session agenda are discussed when introduced by the Mayor, Assembly, or staff, no formal action is taken at work sessions and items that require formal Assembly action are pla Page 1. (Limited to Three Minutes per Speaker) 2. AGENDA ITEMS 2a. FY2019 BudgetWork Session Budget Documents Link Visit our website at www.facebook.com/Kodiakislandborough @KodiakBorough www.kodiakak.us Page 1 of 2 AGENDA ITEM #2.a. You may follow the development of the Borough budget by accessing the information available on the Kodiak Island Borough website: www.kodiakak.us Direct link to budget documents: https://kodiakak.civicweb.net/Portal/MeetingInformation.aspx?Id=926 We encourage you to subscribe to e-updates to receive notification once information becomes available. You may sign up by following this link: https://kodiakak.civicweb.net/Portal/Subscribe.aspx The Kodiak Island Borough Fiscal Year begins on July 1. The FY2019 Budget is currently underway. The budget, the budget message, and supporting schedules are public record and open to public inspection by anyone. On or before the thirtieth of April of each year, the manager submits the budget and capital program to the assembly. The budget and budget message contain the proposed appropriation and tax levy ordinance. The budget shall be adopted not later than the tenth of June prior to the beginning of the budget year. Should the assembly take no action or prior to such day, the budget, as submitted, shall be deemed to have been finally adopted by the assembly. Community input is an important part of the budget process as it provides valuable direction to the Assembly prior to the adoption of the Borough Budget. Page 2 of 2 FY2019 Budget Work Session Kodiak Island Borough Finance Department Memorandum TO: Mayor and members of the Assembly FROM: Dora Cross, Finance Director SUBJECT: FY19 Level 1 Budget Introduction DATE: February 3, 2018 This memo is regarding the draft level 1 budget you are reviewing today. There are two topics I would like to address with memo. Budget —staff items • General Fund: Revenues— Estimates for revenues are based on prior year trends and current year information. At this early date, revenue projections are more 'art' than 'science'. Some of the more significant revenues the Borough receives are from State and Federal sources that have not determined what appropriations will be made for FY19. In addition, if our assembly chooses to change the mill rate, which will alter the severance tax rate, will change the predicted revenues as well. • In addition to beginning the budget process earlier this year than prior years, I asked department directors to take on two additional responsibilities. One of those was to budget for salaries and benefits for their department, and the second was to complete a Program Budget Summary for their department. Although I believe staff did a wonderful job of rising to the challenge for both items, staff's newness in budgeting for salaries and benefits has created a few imperfections within the document you are reviewing today. I will continue to work with staff to make any corrections necessary before the next time you review budget documents. Budget - policy questions Staff is requesting guidance regarding budgeting for the following items: • General Fund: Rent - Where to budget any additional funds the assembly wants to collect for future repairs or remodeling to the Borough building. • General Fund: Legal Fees — Whether to budget and account for these fees centrally, in the Borough Attorney fund, or within individual departments. • Special Revenue Fund: Facility Fund — Define the term 'Income' for the purpose of calculating funds available to use. Does income mean the interest income, money the Borough actually received, or does it mean interest income plus change of market value, which is a valuation of the investment at one point in time according to the market. 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