HomeMy WebLinkAbout02122024 City Council Laydown - Finance Dept LAYDOWN Finance Department for February 12,2024 meeting
Summary of the FY23_24 Mid-Cycle Budget adjustments.
Various Funds:
Interest on investments increased across most funds due to a positive interest rate
environment and an overall increase in investment returns.
- Utility expenses increased across many funds due to the overall increase in utility
expenses and usage and the City's increase in electric rates.
General Fund:
- Closing of the Jail results in decreased expenses in the jail department (1211) and decreased
revenue in the general fund for the administrative fees paid and the jail contract received.
- The Animal Shelter construction fund is being closed, and the residual fund balance is
transferred to the General Fund.
- Audit contract renegotiated in 2023, resulting in a budget amendment in 2023, but wasn't
adjusted previously for the 2024 budget.
- Various personnel changes due to employee changes, staffing levels or department
adjustments to where salaries are being paid.
- Increase in expense for Outsourcing of utility billing services, not budgeted for 2024.
- A vacant position in the police department requested to be filled, and the overtime budget
increased due to ongoing significant overtime costs.
- The Firefighter position was not budgeted as FY 24 adjustment necessary on personnel
costs.
- Adjustment decreasing on the Gravel sales due to one-time revenue.
Harbor Fund:
Revenue increases due to the investment interest and the electric rate.
- Increase the expenditure for anticipated director retirement and the power cost increase.
SMIC Fund:
- Moorage and Wharfage revenue increased due to increased activity.
Power for resale expense increased due to increased power rates.
Parking Fund:
- Increase in certain lot fees due to increased activity in 2023 and planned enforcement
measures in 2024.
Electric Fund:
- Increase of the electric utility charges due to increase in rates. The calculation of the increase
in operating revenue of$3,484,454 is based on the consumption in KwH for FY23.
- Increase of the proposed contribution to the MRRF. The rate study proposed $350,000 due to
the necessity to complete Phase 2 as part of the strategic plan for the infrastructure project. Is
proposed to increase the contribution for the MRRF to $650,000.
- Increase the contracted services to anticipate the contract with MEA and the Right-Of-Way
Clearing.
- Increase in power purchase fees due to increase in charges from Chugach.
- Bank and credit card fees were anticipated to be passed along to customers, so they were
budgeted significantly lower than needed. Adjusted to correct for actual activity.
- Expenses of the operating supplies increased due to the increase of the Work and Job orders.
The projection of the capitalized operating supplies expenses for the infrastructure project is
$1,673,940.47. The total construction in progress is $11,069,670.83 based on infrastructure
expenditures, capital equipment, and contracted engineering services. Numbers are not
audited and are not final.