The Kodiak City Council on Thursday approved the first reading of $8 million in supplemental appropriations for the fiscal year 2019 budget, from July 2019 to June 2020.
“These adjustments are for the operating funds as well as additions to project funds for grant revenues received and additional expenditures needed that were not known at the time the original budget was adopted,” said City Manager Mike Tvenge.
A portion of the supplemental appropriation came from increased legal fees from citywide legal services related to updated contracts and agreements, past-due sales tax, pending litigation and other general legal consultations, according to a memo from Tvenge to the city council.
Other changes in the appropriation include increased revenue from the Alaska Jail Contract, the amount received from the Alaska Fisheries Business tax and from property taxes, as well as from discounts received for a health insurance premium holiday for January and February 2020, and federal and state grants.
Some of the grants included funding for police equipment, outdoor warning sirens, emergency shelter bedding and training for the police department.
Changes to the budget also include a $5,435,000 loan from the Alaska Clean Water Fund for the Wastewater Treatment Plant Ultra UltraViolet Disinfection Facility and the use of $56,300 from the Streets Improvement Fund for the purchase of above-ground fuel dispensing tanks.
An additional $48,912 was added because of the increased need for street repairs and maintenance due to heavy use of snow-removal equipment during the winter season.
The city council also authorized the appropriation of $22,000 from the General Fund, $10,000 from the Trident Basin unassigned fund balance and $12,000 from the shipyard unassigned fund balance for appraisal services of city-owned property.
Additional appraisal services for the Kodiak Barn cost the city an extra $25,000.
Additional spending also included $155,000 for the marine travel lift operator and the purchase of straps for the marine travel lift; and $603,108 in the E911 Emergency Services fund for dispatch personnel.
The changes, which amounted to $8,040,649, bring the amended budget to $52,364,621.
“The ordinance makes a number of changes in the FY2020 budget reflecting increased revenues and expenditures, new project and grant funding, and movement of funds to more accurately reflect current City operations,” said the memo.
According to Twenge, the city traditionally adopts one major budget amendment each fiscal year to make necessary adjustments to cover changes to projects, receipt of additional revenues and balanced operating expenses.
All adjustments accounted for leave a current budget surplus of approximately $226,000 for FY2020, said the memo.