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2019-10-03 Regular Meeting AGENDA ITEM #5.A. KODIAK ISLAND BOROUGH Assembly Regular Meeting September 19, 2019 APPROVAL OF AGENDA AND CONSENT AGENDA APPROVAL OF MINUTES CITIZENS' COMMENTS AWARDS AND PRESENTATIONS COMMITTEE REPORTS PUBLIC HEARING AGENDA ITEM #5.A. BOROUGH MANAGER'S REPORT MESSAGES FROM THE BOROUGH MAYOR UNFINISHED BUSINESS NEW BUSINESS Contracts Resolutions Ordinances For Introduction AGENDA ITEM #5.A. Other Items CITIZENS' COMMENTS ASSEMBLY MEMBER’S COMMENTS Announcements EXECUTIVE SESSION ADJOURNMENT AGENDA ITEM #5.A. AGENDA ITEM #7.A. Office of the Mayor Kodiak Island Borough, Alaska In witness whereof, I have hereunto set my Hand and cause this seal to be affixed. ___________________________ Daniel Rohrer, Borough Mayor Attest:_______________________ Date: _______________________ AGENDA ITEM #9.A. KODIAK ISLAND BOROUGH STAFF REPORT OCTOBER 3, 2019 ASSEMBLY REGULAR MEETING SUBJECT: ORIGINATOR: RECOMMENDATION: DISCUSSION: Accessory Buildings and Accessory Dwelling UnitsRR -Rural ResidentialRR1- Rural Residential One District ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: AGENDA ITEM #9.A. KODIAK ISLAND BOROUGH Community Development Department AGENDA ITEM #9.A. VERSION 2 KODIAK ISLAND BOROUGH ORDINANCENO. FY2019-20 AN ORDINANCEOF THE ASSEMBLY OF THE KODIAK ISLANDBOROUGH AMENDING CHAPTER 17.160 KIBC (ACCESSORY BUILDINGS AND ACCESSORY DWELLING UNITS), AND RELATED CHAPTERS 17.65 KIBC (RR – RURAL RESIDENTIAL) AND CHAPTER 17.70 (RR1 – RURAL RESIDENTIAL ONE DISTRICT) TO CHANGE PERMITTED USES, CONDITIONAL USES AND DEVELOPMENT STANDARDS RELATED TO PARKING AND SIZE LIMIT WHEREAS, WHEREAS, WHEREAS, WHEREAS, NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: Section 2: Chapter 17.65 RR– RURAL RESIDENTIAL DISTRICT 17.65.030 Permitted accessoryuses and structures. AGENDA ITEM #9.A. ; ; and D. Accessory dwelling units (ADUs). 17.65.040 Conditional uses. Chapter 17.70 RR1 – RURAL RESIDENTIAL ONE DISTRICT 17.70.020 Permitted uses. 17.70.030 Conditional uses. and . Chapter 17.160 ACCESSORY BUILDINGS AND ACCESSORY DWELLING UNITS 17.160.070 Accessory dwelling units. AGENDA ITEM #9.A. c. Chapter 17.65 KIBC, RR – Rural Residential District; d. e. f. a. Parking. a. Five off-street parking spaces are required for any lot with an ADU that is 600 square feet or less (3 for the existing dwelling unit and 2 for the ADU). b. Six off-street parking spaces are required for any lot with an ADU that is greater than 600 square feet (3 for the existing dwelling unit and 3 for the ADU). An ADU shall be limited to575 square feet or less in the R1 and R2 Districts. In all other districts an ADU shall be limited to 725 square feet or less. AGENDA ITEM #9.A. Nothing in this section guarantees any property owner the right to create an accessory dwelling unit unless it conforms to all provisions in thissection and in the section for the zoning designation of the specified lot. Limitations due to natural features, lot size, lot dimensions, building layout, or other physical or environmental factors shall not be reasons for granting a variance from the standards and provisions of this section and the section for the zoning designation of the specified lot. No variances shall be granted for the creation of an attached or detached accessory dwelling unit. Effective Date: ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS __________ DAY OF _______________, 2019. VOTES: AGENDA ITEM #9.B. LPEJBL!JTMBOE!CPSPVHI TUBGG!SFQPSU PDUPCFS!4-!312: BTTFNCMZ!SFHVMBS!NFFUJOH TVCKFDU; PSJHJOBUPS; SFDPNNFOEBUJPO; EJTDVTTJPO; BMUFSOBUJWFT; GJTDBM!JNQBDU; PUIFS!JOGPSNBUJPO; AGENDA ITEM #9.B. KODIAK ISLAND BOROUGH ORDINANCENO. FY2020-04 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGHAMENDING KODIAK ISLAND BOROUGH CODE TITLE 3 REVENUE AND FINANCE, CHAPTER 3.35 REAL PROPERTY TAX, SECTION 3.35.030 REAL AND PERSONAL PROPERTY EXEMPTED FROM TAXATION WHEREAS, WHEREAS, WHEREAS, NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: Section 2: AGENDA ITEM #9.B. , AGENDA ITEM #9.B. AGENDA ITEM #9.B. 1. 2.“Good cause” shall mean extraordinary circumstances beyond the control of the applicant, including but not limited to a medical condition or disability, impaired mental capacity, family emergency, death in the family, or similar serious condition or event that substantially impaired the applicant’s ability to file a timely application. “Good cause” shall not mean late filing due to the applicant’s inadvertence, oversight, or lack of knowledge regarding the filing requirements or deadline, financial hardship or failure to pick up or read mail or to make arrangements for an appropriate and responsible person to pick up or read mail. AGENDA ITEM #9.B. (D) AGENDA ITEM #9.B. Administrative Review for all exemptions except community purpose 1.If the assessor, after review of the application for exemption determines that the property does not qualify for the exemption, the assessor will notify the applicant in writing denying the exemption and providing the reasons for the assessor’s decision. 2.The owner of record may request a formal review meeting withthe assessor within 30 days of the date of the assessor’s letter denying the exemption. a.The assessor will notify the owner of record with the date of the of that meeting. b.The owner ofrecord may presentadditional documentation and other evidence supporting their claim of exemption atthe review meetingfor consideration by the assessor. c.The assessor, within 30 days of the meeting, will issue a letter with their final determination. d.The assessor’s final determination after a review meeting is a final administrative decisionon the exemptionand can be appealed as provided in subsection (H) of this section. 3.Community Purpose Exemptions are reviewed in accordance with subsection (I)(7) of this section. H. .Having exhausted the administrative review,o State ofin accordance with Alaska Rule of Appellate Procedure 602 and AS 29.45.200(c) I. as allowed under AS 29.45.050(a)(1)(A) AGENDA ITEM #9.B. AGENDA ITEM #9.B. AGENDA ITEM #9.B. Pursuant to the process in subsection (I)(3) of this section, cKodiak Rodeoand State FairAssociation d e Effective Date: ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS __________ DAY OF _______________, 2020. VOTES: AGENDA ITEM #9.C. LPEJBL!JTMBOE!CPSPVHI TUBGG!SFQPSU PDUPCFS!4-!312: BTTFNCMZ!SFHVMBS!NFFUJOH TVCKFDU; PSJHJOBUPS; SFDPNNFOEBUJPO; EJTDVTTJPO; BMUFSOBUJWFT; GJTDBM!JNQBDU; PUIFS!JOGPSNBUJPO; AGENDA ITEM #9.C. Kodiak Island Borough Community Development Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486-9363 Fax (907) 486-9396 www.kodiakak.us Memorandum Date: September 5, 2019 To: Mr. Michael Powers, Borough Manager From: Erin Welty, Acting Director RE: Transmittal of City of Kodiak Near Island Development Plan, Case 20-01, for adoption by Ordinance FY2020-06. The Kodiak Island Borough Planning and Zoning Commission, as required per KIBC 2.105.030.A, hereby transmits the August 21, 2019 meeting materials, and their recommendation for adoption, for the consideration of the Kodiak Island Borough Assembly. The P&Z Commission recommends adoption of this development plan, to be incorporated into the Kodiak Island Borough Comprehensive plan. The Planning and Zoning Commission at their meeting on August 21, 2019 moved to forward the request, recommending adoption, to the Borough Assembly. The Commission perceived no major policy implications related to this request, and found the request to be generally consistent with the goals and objectives of the adopted comprehensive plan. Attachments: Draft Agenda Statement; Development Plan; P&Z Decision Letter; P&Z Minutes; P&Z Case Packet 20-01. AGENDA ITEM #9.C. KODIAK ISLAND BOROUGH ORDINANCENO. FY2020-06 AN ORDINANCEOF THE ASSEMBLY OF THE KODIAK ISLANDBOROUGHAMENDING TITLE 17 ZONING OF THE KODIAK ISLAND BOROUGH CODE OF ORDINANCES BY AMENDING SECTION 17.10.030 COMPREHENSIVE PLANTO INCORPORATE THE 2017 CITY OF KODIAK NEAR ISLAND DEVELOPMENT PLAN – CONCEPT A, MINIMUM DEVELOPMENT. (P&Z CASE 20-001) WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: Section 2:Zoning 17.10.030 Comprehensive plan. AGENDA ITEM #9.C. Effective Date: ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS __________ DAY OF _______________, 2019. 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MEMORANDUM DATE: August 1, 2019 TO: KIB Planning and Zoning Commission FROM: Community Development Department SUBJECT: Information for the August 21, 2019 Regular Meeting CASE: 20-001 APPLICANT: City of Kodiak AGENT: Mike Tvenge REQUEST: A review, according to KIBC 2.105.030.A, of the Near Island Development Plan – Concept A – Minimized Development, as adopted by the City of Kodiak, as a proposed new element of the Kodiak Island Borough Comprehensive Plan once adopted by the Assembly. LOCATION: Near Island ZONING: Various Applicable Regulations 2.105.030 Powers and duties. The commission shall accomplish the following: A.Develop, adopt, alter or revise, subject to approval of the assembly, a comprehensive plan for the physical development of the borough. Such comprehensive plan, with accompanying maps, plats, charts, descriptive and explanatory matter, shall show the commission’s recommendations for the development of the borough territory and may include among other things: 1.Development of the type, location, and sequence of all public improvements; 2.The relocation, removal, extension, or change of use of existing or future public ways, grounds, spaces, buildings, properties, and utilities; and 3.The general extent and location of rehabilitation areas. When a comprehensive plan for the borough has been approved by the assembly, amendments, revisions and extensions thereof may be adopted by the assembly after consideration and report of the commission. All amendments, revisions, or extensions shall correspond to major geographical divisions of the borough or to functional divisions of the subject matter of the plan. AGENDA ITEM #9.C. When such comprehensive plan has been approved by the assembly, no amendments, revisions, or extensions thereto shall be approved, except upon the affirmative vote of four members of the assembly; 17.10.010 Definitions The comprehensive plan for the borough is that compilation of adopted policy statements, goals, standards, and maps for guiding the physical, social, and economic development, both public and private, of the borough, which may include, but are not limited to, the following topics: A. History; B. Local government; C. Topography; D. Geology; E. Climate; F. Soils; G. Vegetation; H. Fish and wildlife; I. Natural hazards; J. Land ownership; K. Land use; L. Population; M. Housing; N. Economy; O. Transportation; P. Community facilities; Q. Utilities; and R. Growth requirements. \[Ord. 85-19-O §1, 1985: Ord. 85-9-O §1, 1985: Ord. 84-67-O §1, 1984: Ord. 82-44-O §1, 1982. Formerly §17.02.010\]. AGENDA ITEM #9.C. 17.10.030 Comprehensive plan. For the purpose of this title, the Kodiak Island Borough comprehensive plan consists of the following documents: C. Near Island Comprehensive Development Plan. Prepared by the Near Island task force, city of Kodiak and the Kodiak Island Borough, dated August 27, 1987. (Adopted by Ordinance No. 87- 31-O, dated November 5, 1987. COMMENTS The City of Kodiak acquired Near Island in 1968. There was no development on the small island until 1974. Except for a Trails Development Plan in 1999, the last comprehensive planning effort for Near Island was thirty-two years ago, in 1987, with the adoption of the Near Island Comprehensive Development Plan. This was shortly after the installation of the Fred Zharoff Memorial Bridge, which connected Near Island to the City of Kodiak. Since then, there has been significant development on Near Island, including the sale of some property to private individuals. Recognizing the need for an updated planning document, the City of Kodiak engaged DOWL to create an updated development plan. The new plan is intended to provide the City of Kodiak with the following: Encourages revenue generation via balancing development and land conservation. Allows the City of Kodiak to anticipate and plan for the future development of Near Island. Specifically, which types of uses are desired and where areas of development and non- development should occur. Provides clear goals and recommendations with clear steps for implantation. The City established a technical advisory committee with members from a variety of local agencies and organizations to provide feedback regarding existing conditions, practicality of new ideas and insight on conflicts. Two TAC meetings were held in the first half of 2016. The City also held two public meetings in which they introduced the planning project and then solicited comments regarding desired development on Near Island. Common themes emerged from the process and the city was ultimately presented with three concepts with different levels of proposed future development. The city chose Concept A -Minimized Development, which does not expand or add any industrial, commercial or institutional uses on Near Island. The City Council approved by consensus the Near Island Development Plan – Concept A – minimum development and now requests that it be adopted as a component of the Kodiak Island Borough 2008 Comprehensive Plan AGENDA ITEM #9.C. RECOMMENDATION Staff believes that this request should be forwarded to the Assembly with the recommendation to be adopted as a component of the Kodiak Island Borough 2008 Comprehensive Plan. APPROPRIATE MOTION Should the Commission agree with the staff recommendation, the appropriate motion is: Move to recommend to the Borough Assembly to review the Near Island Development Plan Concept A – Minimum Development, December 2017 by the City of Kodiak and DOWL and that it be adopted as a component to the Kodiak Island Borough 2008 Comprehensive Plan Update and to adopt the findings in the staff memo dated August 1, 2019 as “Findings of Fact” for Case 20-001. FINDINGS OF FACT (KIBC 17.195.050.A.1-6) 1.The City of Kodiak has forwarded to the Planning and Zoning commission a request to adopt the Near Island Development Plan 2017 Concept A – Minimum Development. 2.The Commission recognized the substantial public input and quality of this work product by DOWL and the City of Kodiak in the development of this plan. 3.The Commission finds that the Near Island Development Plan 2017 Concept A – Minimum Development is a significant document to guide the future development of Near Island. AGENDA ITEM #13.A.1. LPEJBL!JTMBOE!CPSPVHI TUBGG!SFQPSU PDUPCFS!4-!312: BTTFNCMZ!SFHVMBS!NFFUJOH TVCKFDU; PSJHJOBUPS; SFDPNNFOEBUJPO; EJTDVTTJPO; BMUFSOBUJWFT; GJTDBM!JNQBDU; PUIFS!JOGPSNBUJPO; AGENDA ITEM #13.A.1. Nbutpo!Obwjhbujpo!Dpnqboz!pg!Bmbtlb-!MMD/ TFSWJDF!DPOUSBDU!OP/!B1192.4 AGENDA ITEM #13.A.1. AGENDA ITEM #13.A.1. AGENDA ITEM #13.A.1. BQQFOEJY!B NJOJNVN!WPMVNF!DPNNJUNFOU; MJRVJEBUFE!EBNBHFT; EVSBUJPO; SBUFT;!)TPVUICPVOE* EftujobujpoTWDSbuf!qfs!DXUNjojnvn!XfjhiuFROpuft TVSDIBSHFT; B/GVFM!TVSDIBSHFT; C/UFSNJOBM!IBOEMJOH!DIBSHFT; D/IB\[BSEPVT!NBUFSJBMT!TVSDIBSHF; PUIFS; E/HFOFSBM!SBUF!JODSFBTFT; AGENDA ITEM #13.A.1. AGENDA ITEM #13.A.1. AGENDA ITEM #13.A.1. AGENDA ITEM #13.A.1. AGENDA ITEM #13.B.1. LPEJBL!JTMBOE!CPSPVHI TUBGG!SFQPSU PDUPCFS!4-!312: BTTFNCMZ!SFHVMBS!NFFUJOH TVCKFDU; PSJHJOBUPS; SFDPNNFOEBUJPO; EJTDVTTJPO; BMUFSOBUJWFT; GJTDBM!JNQBDU; PUIFS!JOGPSNBUJPO; AGENDA ITEM #13.B.1. KODIAK ISLAND BOROUGH COMMUNITY DEVELOPMENT AGENDA ITEM #13.B.1. LJCD!29/31/141!Sfwjfx!cz!qmboojoh!dpnnjttjpo!—Bttfncmz!bqqspwbm/! B/ C/ LJCD!29/31/281!Efgjojujpot! SFDPNNFOEBUJPO BQQSPQSPQSJBUF!NPUJPO AGENDA ITEM #13.B.1. AGENDA ITEM #13.B.1. AGENDA ITEM #13.B.1. FYIJCJU!B ° ° ° ° ° AGENDA ITEM #13.B.1. FYIJCJU!C AGENDA ITEM #13.B.1. FYIJCJU!C AGENDA ITEM #13.B.1. AGENDA ITEM #13.B.1. AGENDA ITEM #13.B.1. GPS!SFDPSEBUJPO!JO!UIF!LPEJBLSFDPSEJOH!EJTUSJDU BDDFTT!FBTFNFOU UIJT!FBTFNFOU XJUOFTTFUI XIFSFBT-! Fyijcju!B XIFSFBT-! XIFSFBT-! XIFSFBT-! XIFSFBT-! XIFSFBT-! AGENDA ITEM #13.B.1. OPX-!UIFSFGPSF-! TFDUJPO!POF SJHIU!PG!FOUSZ!VQPO!UIF!TVSGBDF Fyijcju!B TFDUJPO!UXP CJOEJOH!FGGFDU TFDUJPO!UISFF IPME!IBSNMFTT AGENDA ITEM #13.B.1. TFDUJPO!GPVS NPEJGJDBUJPO HSBOUPS `````````````````````````````````````````````` AGENDA ITEM #13.B.1. BDDFQUBODF!PG!FBTFNFOU !!!!!!!! !!!!!!!HSBOUFF !!!``````````````````````````````````````````````````` !!!!!!! AGENDA ITEM #13.B.1. FYIJCJU!B ° ° ° ° ° AGENDA ITEM #13.B.1. KODIAK ISLAND BOROUGH RESOLUTIONNO. FY2020-11 A RESOLUTIONOF THE ASSEMBLY OF THE KODIAK ISLANDBOROUGHGRANTING A NONEXCLUSIVE EASEMENT FOR ACCESS, BOTH TO INGRESS AND EGRESS, FOR VEHICULAR AND PEDESTRIAN TRAFFIC, AND IN FAVOR OF PEGGY J. PURDY AND ANY SUCCESSORS AND ASSIGNEES UPON THE PROPERTY DESCRIBED IN EXHIBIT “A” FOR THE BENEFIT OF LOT 4, BLOCK 8, MONASHKA BAY SUBDIVISION AND ANY FUTURE SUBDIVISIONS OF THAT PARCEL. WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, AGENDA ITEM #13.B.1. NOW, THEREFORE, BE IT RESOLVEDBY THE ASSEMBLYOFTHE KODIAK ISLAND BOROUGH ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS __________ DAY OF _______________, 2019. VOTES: AGENDA ITEM #13.C.1. LPEJBL!JTMBOE!CPSPVHI TUBGG!SFQPSU PDUPCFS!4-!312: BTTFNCMZ!SFHVMBSNFFUJOH TVCKFDU; PSJHJOBUPS; SFDPNNFOEBUJPO; EJTDVTTJPO; AGENDA ITEM #13.C.1. LPEJBL!JTMBOE!CPSPVHI TUBGG!SFQPSU PDUPCFS!4-!312: BTTFNCMZ!SFHVMBS!NFFUJOH BMUFSOBUJWFT; GJTDBM!JNQBDU; PUIFS!JOGPSNBUJPO; AGENDA ITEM #13.C.1. AGENDA ITEM #13.C.1. AGENDA ITEM #13.C.1. AGENDA ITEM #13.C.1. AGENDA ITEM #13.C.1. AGENDA ITEM #13.C.1. AGENDA ITEM #13.C.1. AGENDA ITEM #13.C.1. AGENDA ITEM #13.C.2. LPEJBL!JTMBOE!CPSPVHI TUBGG!SFQPSU PDUPCFS!4-!312: BTTFNCMZ!SFHVMBS!NFFUJOH TVCKFDU; PSJHJOBUPS; SFDPNNFOEBUJPO; EJTDVTTJPO; Policy Considerations for Fund Balance Minimums and Reserves Policies for fund balance should: Establish which funds need minimum levels (or designated funds) to ensure stable service delivery and protect against financial instability, o Which funds are major operating funds? o Does interdependence exist between funds which may require the use of general fund, or other major fund, resources? State the purpose for the minimum fund balance/reserve amount, Clearly state how the minimum fund balance will be replenished and how quickly. Due to the cyclical nature of local governmental revenues maintaining sufficient minimum fund balance for the low points of the income cycle is critical for maintaining normal operations Policies for reserves should: Establish a minimum level of reserve funding, Define the problem or potential problem that could trigger a need to use reserves, Clearly state how reserves will be replenished and how quickly. Current Kodiak Island Borough Reserve Policy KIBC 3.05.080 Reserve policies. The borough will maintain a fund balance designated for fiscal cash liquidity purposes (i.e., fiscal reserve) that will provide sufficient cash flow to minimize the potential of short-term tax anticipation borrowing. The borough will maintain appropriated contingencies to provide for unanticipated expenditures. The three contingencies and their recommended minimum funding levels are: Emergency contingency: one percent of general fund. Personnel contingency: one-half percent of general fund. Litigation contingency: one-quarter percent of general fund. The borough will maintain sufficient self-insurance reserves as established by professional judgment based on the funding techniques utilized and the recorded losses. \[Ord. 90-10 §2, 1990. Formerly AGENDA ITEM #13.C.2. LPEJBL!JTMBOE!CPSPVHI TUBGG!SFQPSU PDUPCFS!4-!312: BTTFNCMZ!SFHVMBS!NFFUJOH §3.01.080\]. Using the contingency percentages currently in code for fiscal year 2019, the following is the minimum amounts needed to satisfy the Borough's reserve policy for FY2020: Emergencies - $54,296 Personnel - $27,148 Litigation - $13,574 The total of those minimum funding amounts is $95,018. Although not quantified in the above Borough policy, GFOA recommends a ŭĻƓĻƩğƌ ƚƦĻƩğƷźƓŭ ƩĻƭĻƩǝĻ (which is listed above as Ņźƭĭğƌ ƩĻƭĻƩǝĻ) to be no less than two months of regular general fund operating revenues or regular general fund operating expenditures which would equate to $1,464,642. GFOA (Government Finance Officers Association) Policy Recommendations Establish a formal policy on the level of unrestricted fund balance that should be maintained in the general fund, how the government would increase or decrease the level and how resources will be directed to replenish the fund balance should the level fall below the specified level. Determine appropriate level - GFOA recommends a minimum of no less than two months of regular general fund operating revenues or regular general fund operating expenditures. The choice of revenues or expenditures as a basis of comparison may be dictated by what is more predictable. Consideration should be given to: Predictability of revenues and volatility of expenditures. Perceived exposure to significant one-time outlays. Potential drain on general fund resources from other funds. Potential impact on bond ratings and corresponding increased cost of borrowed funds. Current commitments and assignments to other funds or projects. Use and Replenishment - Policy should define conditions of use, and if a fund balance falls below policy level, a plan to replenish it. The policy should: Define the time period which and contingencies for which fund balances will be used. Describe how the governments expenditures and/or revenue levels will be adjusted to match any new economic realities that are behind the use of fund balance as a financing bridge. Describe the time period over which the components of fund balance will be replenished and the means by which they will be replenished. Generally, balances should be replenished within one to three years. Factors influencing the replenishment timing include: The budgetary reasons behind the fund balance targets. Recovering from an extreme event. Political continuity. Financial planning time horizons. Long-term forecasts and economic conditions. External financing expectations. AGENDA ITEM #13.C.2. LPEJBL!JTMBOE!CPSPVHI TUBGG!SFQPSU PDUPCFS!4-!312: BTTFNCMZ!SFHVMBS!NFFUJOH PROPOSED RESERVE POLICY Fund balance is the uncommitted resources of a fund. Borough policy is to construct the various fund balance budgets in such a way that there will be sufficient uncommitted resources to cover cash flow needs at all times, regardless of seasonal fluctuations in expenditures or reserves and to provide adequate reserves for emergency needs. financial management strategy and a ke financial strength. Maintenance of fund balance for each accounting fund assures adequate resources for cash flow and to mitigate short term effects of revenue shortages. Reserve funds are necessary to enable to Borough to deal with unforeseen emergencies or changes in economic conditions. The Borough maintains reserves required by law, ordinance and/or bond covenants. All expenditures drawn from reserve accounts require prior assembly approval unless previously authorized by the below the required level set by the policy, the assembly shall include within its annual budget a plan to restore reserves and or fund balance to the required levels. The fund balance reserve policy specifies individual fund requirements as follows. Contingency Fund Reserves: The borough maintains a contingency fund reserve equal to $1,000,000.00 to provide a financial cushion to cover revenue shortfalls resulting from unexpected economic changes or to provide funds in the event of a major unplanned expenditure the Borough could face as a result of landslide, earthquake, tsunami, or other natural disaster. General Fund Operating Reserves: The borough maintains a general fund operating reserve to provide for adequate cash flow, budget contingencies, and insurance reserves. The cash flow reserve within the general fund is an amount equal to six months of budgeted operating expenditures and one-half the current liability insurance deductible amount. Education Support Fund: The Borough maintains a special revenue fund reserve to provide for unexpected revenue shortfalls. The cash flow reserve within the education support fund is equal to $75,000.00. Debt Service Fund: The Borough maintains a special revenue fund reserve to provide for unexpected revenue shortfalls. The cash flow reserve within the debt service fund is equal to $275,000.00. Solid Waste Disposal & Collection Fund: The Borough maintains an enterprise fund reserve to provide for adequate cash flow, budget contingencies and loan payment reserves. The cash flow reserve within the solid waste disposal and collection fund is an amount equal to six months of budgeted operating expenditures and the following years total loan payments. AGENDA ITEM #13.C.2. LPEJBL!JTMBOE!CPSPVHI TUBGG!SFQPSU PDUPCFS!4-!312: BTTFNCMZ!SFHVMBS!NFFUJOH Calculation Example Using the proposed reserve policy, the following is the minimum amounts needed to satisfy the policy for FY2020: General Fund Reserve Total $5,443,926.00 Contingency Reserve - $1,000,000.00 Operating Reserve Total $4,443,926.00 o Six months of prior year operating expenses - $4,393,926.00 o One half liability insurance deductible - $50,000.00 Education Support Fund Reserve - $75,000.00 Debt Service Fund Reserve - $275,000.00 Solid Waste Disposal & Collection Fund Reserve Total $2,703,705.00 Operating Reserve - $1,625,955.00 Following years total loan payments - $1,077,750.00 BMUFSOBUJWFT; GJTDBM!JNQBDU; PUIFS!JOGPSNBUJPO; AGENDA ITEM #13.C.2. REVENUE AND FINANCE FISCAL POLICYRESERVE POLICIES AGENDA ITEM #13.C.2. AGENDA ITEM #13.C.2. Date: October 3, 2019 To: Borough of Kodiak From: Charley Wilmoth 3989 Woodland 1 am in support of the proposed ADU ordinance amendment that adds the Rural Residential zone to the Permitted uses and increases the ADU's size in our district to at lease 72 5 square feet. The parking should stay at one additional parking space. Thank you, www.kodiakak.us www.facebook.com/KodiakIslandBorough @KodiakBorough Kodiak Island Borough Assembly Newsletter PROCLAIMED AMENDED, ADOPTED ADOPTED ADOPTED AUTHORIZED ADOPTED ADVANCED ADVANCED APPROVED