City of. Ketchikan, Alaska 2017 GENERAL GOVERNMENT OPERATING AND CAPITAL BUDGET

Transcription

1 City of Ketchikan, Alaska 2017 GENERAL GOVERNMENT OPERATING AND CAPITAL BUDGET

2 Ward Lake Water Lilies Photograph by Carlos Rojas Reproduction strictly prohibited without permission

3 , ALASKA 2017 GENERAL GOVERNMENT OPERATING & CAPITAL BUDGET TABLE OF CONTENTS Resolution No Adopting 2017 Budget... A-1 Transmittal Letter... B-1 Budget Overview Reports: Revenues and Appropriations Summary By Fund All Funds... C-1 Comparative Schedule of Reserves All Funds... C-2 Revenues and Appropriations Summary by Department All Funds... C-3 Revenues and Appropriations Summary by Major Expenditure Categories - All Funds... C-5 Comparative Schedule of Appropriations by Department C-7 Comparative Schedule of Revenues All Funds C-10 Comparative Schedule of Revenues-Charges for Services-All Funds C-11 Comparative Schedule of Employees C-13 Schedule of Assessed Valuation and Property Tax Revenues C-14 Schedule of Sales Tax Revenues C-15 Schedule of General Fund Share State Revenues C-16 Schedule of Annual Debt Service to Maturity... C-17 Departmental Appropriations and Personnel Schedules: Mayor and Council Departmental Summary... D-1 City Council Operations... D-2 Community Grant Program... D-5 City Attorney Departmental Summary... E-1 City Attorney Operations... E-2 City Clerk Departmental Summary... F-1 City Clerk Operations... F-2 City Manager Departmental Summary... G-1 City Manager Operations... G-2 Human Resources Operations... G-8 Finance Departmental Summary... H-1 Operations... H-2 Finance Capital... H-9 Information Technology Departmental Summary... I-1 Information Technology... I-2 Information Technology - Capital... I-7 i

4 , ALASKA 2017 GENERAL GOVERNMENT OPERATING & CAPITAL BUDGET TABLE OF CONTENTS Fire Departmental Summary... J-1 Operations... J-3 Grants... J-11 Fire - Capital... J-15 Police Departmental Summary... K-1 Police Operations... K-3 E-911 Central Dispatch... K-10 Parking Enforcement... K-15 Grants... K-19 Police Capital... K-21 Public Health Departmental Summary... L-1 Health Center Operations... L-2 Hospital Operations... L-7 Public Health Capital... L-9 Library Departmental Summary... M-1 Adult/Technical Services... M-3 Outreach Services... M-9 Children's Programming Services... M-14 First City Libraries... M-21 UAS Library... M-24 Ketchikan Public Library O&M... M-28 Grants... M-31 Museum Departmental Summary... N-1 Collections... N-3 Programs... N-8 Centennial Building O & M... N-15 Heritage Center O & M... N-17 Historical Commission... N-19 Grants... N-20 Museum Capital... N-21 Civic Center Departmental Summary... O-1 Civic Center Operations... O-2 Civic Center Capital... O-9 ii

5 , ALASKA 2017 GENERAL GOVERNMENT OPERATING & CAPITAL BUDGET TABLE OF CONTENTS Tourism and Economic Development Departmental Summary... P-1 Tourism & Economic Development - Operations... P-2 Tourism & Economic Development - Capital... P-4 Engineering Departmental Summary... Q-1 Engineering - Operations... Q-3 Building Inspection... Q-11 KPU Administration Building O&M... Q-16 Engineering Capital... Q-18 Cemetery Departmental Summary... R-1 Cemetery... R-2 Cemetery - Capital... R-5 Streets Departmental Summary... S-1 Streets - Operations... S-2 Streets - Seasonal Litter Program... S-8 Streets - Capital... S-11 Garage and Warehouse Departmental Summary... T-1 Garage and Warehouse... T-2 Garage Capital... T-8 Building Maintenance Departmental Summary... U-1 Buildings - Operations... U-2 Buildings City Hall O&M... U-8 Buildings Shoreline Maintenance Building O&M... U-11 Buildings Orphaned Buildings... U-13 Building Maintenance - Capital... U-16 Solid Waste Departmental Summary... V-1 Solid Waste Disposal... V-2 Solid Waste Recycling... V-10 Solid Waste Collections... V-14 Solid Waste - Capital... V-19 Wastewater Departmental Summary... W-1 Wastewater Collection and Disposal... W-2 Wastewater Collection and Disposal-Capital... W-11 iii

6 , ALASKA 2017 GENERAL GOVERNMENT OPERATING & CAPITAL BUDGET TABLE OF CONTENTS Harbors Departmental Summary... X-1 Harbor Operations... X-3 Harbor Operations - Capital... X-11 Port Development Departmental Summary... Y-1 Port Facility... Y-2 Port Facility-Capital... Y-11 Risk Management... Z-1 Debt Service... AA-1 Transfers... AB-1 iv

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11 November 3, 2016 The Honorable Mayor Lew Williams III and Members of the City Council City of Ketchikan, Alaska 334 Front Street Ketchikan, Alaska Pursuant to Section 5 2 of the Ketchikan City Charter, the proposed 2017 General Government Operating and Capital Budget (the 2017 Budget ) is respectfully submitted. In accordance with Section 5 4 of the Charter, the City Council must adopt a final spending plan no later than the third day before the beginning of the next fiscal year, which is December 29, At least one public hearing on the proposed budget is required prior to adoption of the final spending plan. INTRODUCTION AND EXECUTIVE OVERVIEW The 2017 Budget represents the City s plan for how it proposes to accumulate and spend the financial resources necessary to support cost effective programs and services consistent with the City Council s stated goal of preserving and enhancing the quality of life currently enjoyed by the citizens of Ketchikan. The development of a financially sound spending plan for the City began by considering the expectations that the citizens of the community have for its local government, the City s role in the local economy and the state of the economy of the community that the City serves. The programs and services contained within the proposed spending plan for 2017 were developed by the various departments and were subsequently reviewed and modified as necessary by the Offices of the City Manager and the Finance Director. Direction from the City Council, the various City Advisory Boards and the general public were considered prior to finalization of the proposed spending plan. Department goals and programs were predicated on the continuation of basic service delivery and long range issues that have manifested themselves over the course of the past year and during the development of the capital improvement program. Key Budget Assumptions In order to present a complete spending plan for 2017, it was necessary for management to make certain assumptions regarding the operations and finances of General Government. Management recognizes that some of the assumptions will require further direction from the City Council and that the direction provided may result in different assumptions, which could materially affect the B - 1

12 proposed spending plan. The key assumptions used to compile the spending plan for 2017 are as follows: Staffing levels remained the same as Step increases have been programmed for all employees. A 2% cost of living adjustment has been programmed for all represented employees as required by the terms of existing collective bargaining agreements. In accordance with tradition, the same cost of living adjustment, 2%, that has been granted to represented employees has also been programmed for non represented employees. Certain employee benefit costs have been programmed to increase effective July 1, Health insurance premiums are expected to rise by 10%. Workers compensation premiums in total have been programmed to increase by 5% but because premiums are developed by rate class the impact to the departments may vary. Increases in retirement costs will be limited to rising salaries and wages caused by cost of living adjustments and step increases and assumes that the State of Alaska will not raise the current PERS employer contribution rate of 22 percent. No increases in property or sales taxes have been programmed. The property tax mill rate will remain at the current rate of 6.7. The sales tax rate will remain at the current rate of 4%. The assessment roll is expected to remain unchanged from Despite the expected increase in the number of cruise ship passengers scheduled to visit Ketchikan in 2017, sales tax revenues are projected to remain comparable to The decision not to increase the projection for sales tax revenue is due to some contraction in the local year round retail industry and increasing competition from internet retailers. A 7% harbor rate increase has been programmed to take effect September 1, This increase is based on the Council s policy of raising harbor rates by 7% for each million dollar of debt issued. As of November 2016, the City will have sold $5 million of bonds, the total amount authorized by the voters in Four 7% rate increases have been approved and one more 7% rate increase is required, in order to be in compliance with the Council s policy and keep the Small Boat Harbor Fund solvent. Pursuant to direction from the City Council, no utility rate increases have been programmed. Approximately 1 million cruise ship passengers are projected to visit Ketchikan in The revenues and expenses of the Port Enterprise Fund have been programmed accordingly. The biggest impact will be on revenues from the City s $7 passenger wharfage fee and the lease payments that will be required for Berth IV. Annual debt service will change. Debt service for the Harbor Department will increase by $142,150 due to the issuance of a $2 million bond for harbor improvements in November Debt service for the Port will decrease by about $350,000 due to the successful refunding of the 2006 Port Bond that took place in All other debt service should remain consistent with B - 2

13 Due to the State s fiscal challenges, funding for the State Revenue Sharing Program has been substantially reduced. With the exception of 2011 and 2012 when the State temporarily increased revenue sharing payments to the City by about $200,000, payments to City have been averaging about $482,000 annually. In 2016, the payment was reduced to $309,208 and has been projected by the State to decrease to $188,500 in 2017, the amount which has been programmed in the City s budget for Staff recognizes that some of the assumptions may require modification as more information becomes available and further direction is provided by the City Council. In particular, the projections for sales tax revenues may need revision pending the outcome of third quarter sales tax collections. This information will not be available until December Changes and Other Issues that Impacted or May Impact the Proposed 2017 Budget and Beyond In preparing the proposed 2017 Budget, certain changes were made to improve accountability and financial reporting. Staff also identified issues that may have the potential to impact the long term finances of the City, its operations and/or the proposed 2017 Budget. Staff believes that the City Council should be aware of these changes and issues and may want to consider them during its budget deliberations. Wastewater Rates Although the City Council has pursued a plan to address the financial needs of the City s wastewater utility system through a series of rate increases, the plan deviates from the recommendations of the FCS Group, a consulting firm hired to prepare of cost of service and revenue requirements study. The study recommended rate increases of 12% annually beginning in 2013 and continuing through Beginning in 2016, the study recommended rate increases of 7% annually for a five year period. Since the study, the City has taken the following action: Recommended Rate Year By FCS Increase % 5.0% % 10.0% % 4.0% % 8.0% % 8.0% % 0.0% * *As directed by the City Council, no rate increases have been proposed for The failure to raise rates as recommended by management and FCS puts the City at risk for higher rate increases and, more importantly, restricts the City s ability to adequately finance the capital B - 3

14 improvement programs necessary to address the deteriorated state of the municipal wastewater utility infrastructure. Absent rate increases and the lack of grant funding from the State, the City is forced to rely upon the reserves of the Wastewater Fund and debt to finance the utility s capital improvements program. Unfortunately, there is a limit as to how long this strategy can be sustained before it leads to deferred maintenance. This became evident during management s review of the first draft of the 2017 Budget for the Wastewater Division. The division s initial request for appropriations would have required a $305,000 draw down of the reserves of the Wastewater Enterprise Fund, which would have left the fund with end of the year reserves of $462,000. Reserves at this level are inadequate for meeting the needs and contingencies of a very antiquated wastewater utility system. Ideally, reserves should be no less than $1.1 million, assuming that rates are sufficient to cover both operating and capital needs. To address this management deferred capital projects totaling about $335,000 to future years. This action increased reserves to about $803,000. Addressing funding shortfalls by deferring capital projects is not a sound financial practice because it (1) guarantees higher operating and capital costs in future years and (2) it shifts the higher costs to future users of the utility system. Management is recommending that the City Council reconsider its decision not to raise wastewater rates in 2017 and follow the recommendations of its consultant, the FCS Group, and direct staff to program a 7% increase in wastewater rates for Harbor Rates On June 26, 2012, the voters of Ketchikan authorized the issuance of up to $5 million of general obligation bonds that will be used as matching funds to secure grant funding for $10 million of capital improvements planned for the City harbors. At the time the bonds were passed, the City Council adopted a plan to pay the annual debt service bonds. The plan requires that harbor rates be increased by 7% for each million dollar of debt issued. As of December 31, 2016, the City will have issued $5 million of bonds for harbor improvements. Under the plan adopted by the City Council, five consecutive 7% annual rate increases are required. The first four have already been adopted and implemented to cover the debt service required for the bonds that have been issued. Included in the 2017 Budget is the fifth and final rate increase of 7% with an effective date of September 1, With this rate increase, the Small Boat Harbor Fund will generate a small budgetary surplus of about $22,000 so it is imperative that the rate increase be approved. State of Alaska Fiscal Challenges With the market price for oil falling and production from existing oil fields declining, the State of Alaska is entering into a period of uncertainty that could impact the economy of the community and the City s ability to balance its own budget. During budget deliberations the City Council may want to evaluate the following areas of concern, in order to assess their impact, if any, on the 2017 Budget and future budgets that the City Council will be required to adopt. The impact of the decline in the annual revenue sharing payments. The amount of the payments has declined from their most recent average of about $482,000 annually to $188,500. This represents a revenue loss of $293,500 for the City s general fund. The loss equates to a property mill rate of approximately.4 mills. B - 4

15 State employees account for approximately 9.2% of the local labor force. The loss of State jobs in the community has the potential to impact all sectors of the local economy, property values and tax revenues. Nearly all municipalities in the State of Alaska participate in the Alaska Public Employees Retirement System. Currently, each employer contributes to the PERS at the rate of 22% of wages. The actuarially required contribution (ARC) is generally considerably higher and varies from year to year. The ARC is the amount that is required to keep the PERS solvent. The State currently pays the difference between the ARC and the employer contribution rate of 22% in the form of on behalf payments to the PERS. The State Legislature could potentially change the statutes to require municipalities to pay a higher contribution rate. In 2015, the City s employer contribution of 22% required a payment to PERS in the amount of $2.07 million. A one percent increase in the employer contribution rate would cost the City about $91,000. The State is considering a multitude of options to address its fiscal challenges. Some of the options include a state sales tax, state income tax and tapping into the Alaska Permanent Fund. All of these options have the potential to reduce disposable income and potentially affect retail sales and jobs in the community. The rest of this transmittal letter is devoted to a detailed financial overview of the 2017 Budget. The overview is intended to provide for a better understanding of how the financial component of the budget was developed and identify opportunities to make changes that bring the proposed spending plan more in line with the goals and objectives of the City Council and the community at large. B - 5

16 FINANCIAL OVERVIEW OF THE 2017 GENERAL GOVERNMENT ANNUAL BUDGET The 2017 Budget includes all governmental funds and all proprietary funds of the City, except for Ketchikan Public Utilities. A separate budget has been prepared for Ketchikan Public Utilities. The table below summarizes the 2017 Budget and compares it with the 2016 Budget Budget Estimates Budget Estimated Beginning Reserves, Jan 1 $41,005,054 $ 41,967,143 $40,675,095 Revenues and Transfers: Taxes 17,371,825 17,523,873 17,523,873 PILOT 1,195,000 1,220,000 1,210,000 Intergovernmental Revenues 14,213,435 12,490,548 5,507,820 Charges for Services 19,077,609 19,014,686 19,716,760 Other Revenues 481,952 1,025, ,227 Bond Proceeds 1,483, ,610 Interdepartmental Revenues 5,075,015 4,756,960 5,146,780 Total Revenues 57,414,836 57,514,239 50,292,070 Transfers from Other Funds 7,516,197 7,330,529 7,239,249 Interfund Advances 589, , ,479 Total Revenues and Transfers 65,520,390 65,434,125 58,060,798 Total Funds Available 106,525, ,401,268 98,735,893 Expenditures and Transfers: Operating Expenditures 40,528,816 39,767,392 41,337,146 Capital Expenditures 23,450,583 19,315,752 15,193,920 Total Expenditures 63,979,399 59,083,144 56,531,066 Transfers to Other Funds 7,516,197 7,330,529 7,239,249 Advances to Other Funds 312, , ,547 Total Expenditures and Transfers 71,808,096 66,726,173 64,011,862 Estimated Ending Reserves, Dec 31 $34,717,348 $40,675,095 $34,724,031 Total funds available for appropriations in 2017, included beginning reserves of $40.7 million, is $98.7 million. The amount requested for appropriations in 2017 is $64 million; or $7.8 million less than Operating expenditures increased by $808,330, capital expenditures decreased by $8.3 million, advances to other funds decreased by $70,953 and transfers to other funds decreased by $276,948. The 2017 Budget will require a $6 million drawdown of total General Government reserves. B - 6

17 This overview contains a review of the proposed spending plan for 2017 and will include a discussion of the following areas: (1) Revenues All Funds; (2) Transfers In from Other Funds All Funds; (3) Operating and Capital Expenditures All Funds; (4) Transfers Out and Advances to Other Funds All Funds; (5) Review of Major Funds; (6) Capital Improvement Program; and (7) Debt Management. REVENUES ALL FUNDS The revenues of the City come from a variety of sources. Most of the revenues are from external sources such as taxes and charges for services. Some of the revenues such as interdepartmental charges are internal to the City. This section includes a discussion of the major revenues realized by the City and information on major factors affecting the revenue sources. The table below summarizes the major revenues of the City Budget Estimate Budget Operating Revenues: Taxes $ 17,371,825 $ 17,523,873 $ 17,523,873 Payment in Lieu of Taxes 1,195,000 1,220,000 1,210,000 Licenses and Permits 75, , ,100 Revenue from Other Governments Operating 3,058,911 3,012,199 2,899,316 Charges for Services 19,077,609 19,014,686 19,716,760 Fines and Forfeitures 163, , ,000 Interdepartmental 5,075,015 4,756,960 5,146,780 Other Revenue Miscellaneous 243, , ,127 Total Operating Revenues 46,260,312 46,552,890 47,195,956 Non Operating Revenues: Revenue from Other Governments Capital 11,154,524 9,478,349 2,608,504 Other Revenue Bond Proceeds 1,483, ,610 Other Revenue PeaceHealth Total Non Operating Revenues 11,154,524 10,961,349 3,096,114 Total Revenues $ 57,414,836 $ 57,514,239 $ 50,292,070 The City is projecting that its operating revenues for 2017 will total $47.2 million, an increase of $935,644. Non operating revenues will total $3.1 million, a decrease of $8.1 million. The significant changes to revenues will be discussed below. The following chart identifies the major revenue sources of the City and their respective percentage of the total revenues projected for B - 7

18 2017 Total Revenues Revenue from Other Gov'ts Capital 5.19% Other Revenue Bond Proceeds 0.97% Operating Revenues 94.84% The following chart identifies the operating revenues of the City and their respective percentage of total operating revenues projected for Charges for Services 38.92% 2017 Operating Revenues Fines and Forfeitures 0.34% Interest Income 0.28% Bond Proceeds 0.71% Other Revenues 0.55% Interfund Advances 1.04% Interdepartmental 10.11% Intergovernmental Revenues 10.87% Licenses and Permits 0.21% Payments in Lieu of Tax 2.39% Taxes 34.58% Taxes: At 37.1%, tax revenues are the second highest category of operating revenues collected by the City. Tax revenues are used to finance the programs of the City s General Fund, its two sales tax funds and transient tax fund. The City currently assesses three types of taxes: (1) ad valorem real and personal property taxes; (2) 4% consumer sales tax; and (3) 7% transient occupancy tax. The table below summarizes the major tax revenues of the City. B - 8

19 Budget Estimate Budget Property Taxes $5,416,325 $5,563,373 $5,563,373 Sales Taxes 11,450,000 11,450,000 11,450,000 Transient Occupancy Taxes 370, , ,000 Other Taxes 135, , ,500 Total $17,371,825 $17,523,873 $17,523,873 Other taxes include automobile and liquor taxes shared by the State of Alaska with the City. Property Taxes Revenues from property taxes are a function of assessed property values and the mill rate. Assessed property values are determined by the Ketchikan Gateway Borough Assessment Department and certified by the Borough Assembly acting as the Board of Equalization. The Borough reappraises property located within the City on a four year cycle as follows: Cycle 1 residential zoned property from Schoenbar Bypass to the south City limits. Cycle 2 commercial and industrial zoned property. Cycle 3 no city property appraised in Cycle 3. Cycle 4 residential zoned property from Schoenbar Bypass to the north City limits. In 2017, the Ketchikan Gateway Borough will reappraise all Cycle 2 properties. Properties not scheduled for reappraisal are generally subject to a market analysis and adjusted accordingly. In discussions with the Ketchikan Gateway Borough Director of Assessment, it appears that the real estate market has been relatively flat and there is no indication that the market analysis will result in any significant adjustments to the City s assessment roll in Assessed values have been programmed to remain at the same values as The actual assessed property values will not be known until the Ketchikan Gateway Borough Board of Equalization certifies the assessment roll in May of The City is required to adopt its annual mill levy by June 15. The City currently receives $6.70 per $1,000 of assessed valuation from property owners located within the City limits. As directed by the City Council, the proposed 2017 Budget does not include a property tax increase. The property tax rate remains at 6.7 mils. Sales Taxes Sales tax revenues are generated from a 4 percent sales tax imposed on retail sales within the City limits. Sales tax revenues are accounted for in three separate funds as follows: General Fund 1.5% Hospital Sales Tax Fund 1% Public Works Sales Tax Fund 1.5% For 2017, sales tax revenues have been projected to total $11.45 million or the same as the estimate for Although retail sales are expected to increase in 2017 due to an increase in the number of visitors arriving by cruise ship, local retailers are facing more competition from internet sales and retailers in the lower 48. B - 9

20 Sales Tax Revenues ,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000, A 7 percent transient occupancy tax is assessed against consumers using overnight lodging facilities located within the City limits. This tax is used to provide financial support to the Ted Ferry Civic Center and community promotion. Payment in Lieu of Taxes (PILOT): Governments are exempt from property taxes, however, many municipalities, including the City, have a policy of requiring their enterprise funds to pay an amount in lieu of property taxes. The payments in lieu of taxes are based on the estimated assessed values of enterprise fund properties located within the City limits and the proposed mill rate Budget Estimate Budget Ketchikan Public Utilities $786,000 $786,000 $786,000 Port of Ketchikan 319, , ,000 Wastewater 80,000 80,000 80,000 Affordable Housing Programs 10,000 35,000 25,000 Total $1,195,000 $1,220,000 $1,210,000 Included in the PILOT is an estimate of the payment in lieu of taxes that will be made by certain organizations administering affordable housing programs. Revenues From Other Governments: The City receives a substantial amount of revenues from other governments. The majority of this revenue comes from the State of Alaska and is usually in the form of grants for infrastructure. The following table below summarizes the major sources of revenues from other governments. B - 10

21 Budget Estimate Budget Operating: License Refunds $ 30,000 $ 30,000 $ 30,000 State Grants Shared Fisheries Tax 30,000 16,000 16,000 State Raw Fish Tax 246, , ,000 Federal and State Grants Public Safety 140, , ,814 State Revenue Sharing 408, , ,502 State CPV 2,030,000 2,141,633 2,141,000 State Other 44,650 38,732 44,500 ERZD Bond Interest Rebate 129, , ,500 3,058,911 3,012,199 2,899,316 Capital: Borough Grants 235,750 State Grants 10,978,724 9,242,599 2,376,656 Federal Grants 175, ,848 11,154,524 9,478,349 2,608,504 Total $14,213,435 $12,490,548 $5,507,820 Changes in capital grants are subject to the availability of funding and tend to be project specific. All of the proposed $2.6 million programmed has been awarded to the City except for a $627,000 grant from the State of Alaska for harbor improvements planned for Bar Harbor. All of the capital grants will be used to finance port, harbor, fire and street projects. The raw fish tax is subject to harvest volumes and market prices for fish, which tends to make the amount the City receives a challenge to project. All but $100,000 of the raw fish tax is dedicated for harbor infrastructure improvements. The $100,000 that is not dedicated for harbor improvements is accounted for in the KPU Enterprise Fund and is used to subsidize water rates for fish processors. State revenue sharing for 2017 is predicated on the State funding the FY 2018 State Revenue Sharing Program at the reduced levels that were announced during the last session of the Alaska State Legislature. In prior years, normal funding of the State Revenue Sharing Program required that oil prices remain above $90 per barrel. The State CPV Excise Tax that is shared with the City is based on the number of cruise ship passengers visiting the State of Alaska. The City receives $2.50 per passenger. Charges For Services: Charges for services is the City s single largest source of operating revenues. It includes user fees for general and utility services provided by the City. Fees for services include building inspection and plan review, parking, ambulance, harbor moorage, port dockage, library services to nonresidents of the City and the University of Alaska, solid waste collection and disposal, wastewater and other fees charged to identifiable users of government services. The following table summarizes the major categories of charges for services. B - 11

22 Budget Estimate Budget Parking $80,000 $80,000 $80,000 Ambulance 575, , ,000 E 911 Services 420, , ,000 Borough Library Services 426, , ,960 UAS Library Services 194, , ,200 Civic Center 98,200 98,200 98,200 Solid Waste Fees 3,364,350 3,325,000 3,427,000 Wastewater Fees 2,980,829 2,984,370 3,040,500 Harbor Fees 1,421,345 1,428,700 1,512,000 Port Fees 9,080,500 9,069,700 9,508,000 Museum Fees 212, , ,900 Tideland Leases 60,000 55,000 55,000 Other 163, , ,000 Total $19,077,609 $19,014,686 $19,716,760 Charges for services have been projected to remain unchanged for 2017, except for the following: Solid waste revenues have been projected to increase by $62,650 as a result of the recent renewal of the City s solid waste transportation and disposal agreement with a regional landfill operator in Washington State, which increased the cost of transporting and disposing of the community s putrescible solid waste by 28%. Tipping and residential areawide solid waste and were raised in early 2016 in order to cover the cost of the new agreement. Solid waste collection fees were also increased at the same time. No rate increases have been programmed for Harbor revenues have been projected to increase by about $91,000 as a result of the current policy to increase harbor rates by 7% for each $1 million of debt issued for harbor capital improvements. Four 7% rate increases have already been approved. A fifth and final rate increase of 7%, effective September 1, 2017, which has yet to be approved by the City Council, has been programmed in the 2017 Budget to complete the financing plan for the $5 million general obligation bond that was ratified by the voters in 2012 for harbor improvements. Wastewater revenues have been projected to increase by about $60,000 as a result of raising wastewater fees early last year. No rate increases have been programmed for Port revenue fees have been projected to increase by about $428,000 in anticipation of a 7% increase in cruise ship passenger traffic in Nearly all of the increase will come from the City s $7 passenger wharfage fee. Interdepartmental Charges: Interdepartmental charges are fees assessed against the revenue generating and enterprise funds that collect fees from users and other funds of the City. The General Fund and the Self Insurance Fund provides certain services for these funds. The services include City Council, City Clerk, Legal, Engineering, Central Garage, Finance, Information Technology, Human B - 12

23 Resources, and Risk Management. Since KPU maintains a separate garage, it is not charged for this service Budget Estimate Budget KPU $2,264,075 $2,171,100 $2,359,320 Port Fund 184, , ,520 Harbor Fund 176, , ,420 Solid Waste Fund 474, , ,900 Wastewater Fund 452, , ,120 Self Insurance Fund 1,523,000 1,327,810 1,532,500 Total $5,075,015 $4,756,960 $5,146,780 Interdepartmental charges are determined using a variety of methods. The amount charged for cost of services provided to KPU is based on a model developed by a consultant engaged by the KPU Telecommunications Division. Services charged to other revenue generating operations of the City are based on labor. Interdepartmental charges are projected to increase by $71,765 in 2017 due to the general increase in the cost of doing business. TRANSFERS IN FROM OTHER FUNDS ALL FUNDS Transfers in from other funds include operating subsidies, the movement of financial resources from one fund to another, in order to share the cost of programs or activities accounted for in another fund and the transfer of financial resources for debt service. For 2017, $7.2 million has been programmed for transfers in from other funds Budget Estimate Budget General Fund $ 2,871,235 $ 2,844,484 $ 2,877,206 Community Grant Fund 307, , ,000 CPV Fund Major Capital Improvements Fund 395, , ,000 Harbor Construction Fund GO Bond Debt Service Fund 3,420,114 3,420,114 3,429,043 Port Repair & Replacement Fund 522, , ,000 Total $ 7,516,197 $ 7,330,529 $ 7,239,249 For more information about transfers in, please refer to the Transfers and Advances section of the 2017 Budget. B - 13

24 OPERATING AND CAPITAL EXPENDITURES ALL FUNDS Total operating and capital expenditures in the amount of $56.5 million has been programmed for The table below summarizes the major expenditures of the City and compares 2017 with Budget Estimate Budget Personnel Services $19,874,827 $19,044,366 $20,687,285 Supplies 2,092,037 1,916,667 2,047,240 Contractual and Purchased Services 6,764,121 6,576,680 7,151,185 Interdepartmental Charges 1,883,273 1,781,230 1,853,740 Payment In Lieu of Taxes 565, , ,000 Leases Berth IV 2,425,000 2,400,000 2,490,000 Capital Outlay Minor 266, , ,870 Debt Service 6,657,676 7,229,212 6,269,826 Total Operating Expenditures 40,528,816 39,767,392 41,337,146 Capital Outlay Major 23,450,583 19,315,752 15,193,920 Total Operating and Capital Expenditures $ 63,979,399 $ 59,083,144 $ 56,531,066 Total operating expenditures for 2017 are projected to increase by $808,330 from Capital outlay major is projected to decrease by $8.3 million. Total operating and capitals expenditures are projected to decrease by $7.4 million. The following chart summarizes the major categories of operating expenditure Operating Expenditures Debt Service 15.18% Personnel Services 50.00% Capital Outlay Minor 0.66% Leases Berth IV 6.03% Payment in Lieu of Taxes 1.37% Interdepartmental Charges 4.48% Supplies and Services 22.28% B - 14

25 Personnel Services: The cost of personnel is projected to consume 50% of the City s annual operating expenses, an increase from 49% in This category includes salaries and wages for regular and temporary employees, overtime and employee benefits. Employee benefits include health insurance, life insurance, retirement, workers compensation, social security, unemployment, accrued leave and allowances for uniforms and clothing. The cost of personnel services is summarized as follows: Budget Estimate Budget Salaries and Wages Regular Employees $10,733,821 $10,471,140 $11,152,700 Salaries and Wages Temporary Employees 1,092, ,100 1,061,160 Overtime 805, , ,950 Payroll Taxes 966, , ,660 Pension Benefits 2,295,180 2,220,252 2,367,530 Health Insurance Benefits 3,098,800 2,922,749 3,336,620 Workers Compensation 497, , ,895 Other Benefits 282, , ,030 Allowances 102, , ,740 Total $19,874,827 $19,044,366 $20,687,285 Number of Employees (FTE) The chart below shows how the FTE employees are distributed among the various City departments. Police 20.08% Library 7.25% Museum 4.67% Civic Center 1.71% Engineering 6.83% Streets 7.40% Garage & Warehouse 2.28% Building Maintenance 1.14% Solid Waste 6.26% Small Boat Harbors 2.96% Wastewater 4.55% Fire 10.81% Port Development 2.73% Info Tech 3.41% Finance 9.10% City Manager 2.56% Law 0.57% City Clerk 1.14% Mayor & Council 4.55% B - 15

26 The proposed level of staffing for 2017 is FTE, an increase of.03 FTE from the 2016 Adopted Budget. The table below summarizes by department the proposed changes to personnel. Department Position Action FTE Information Technology Senior Programmer Abolish (0.34) Information Technology Network Security Admin. Abolish (0.08) Library UAS Librarian Abolish (0.26) Library UAS Library Asst II Add 0.21 Museum Curator of Exhibits Add 0.50 Public Works, Engineering Survey Field Technician Abolish (1.00) Public Works, Engineering Public Works Inspector Add 1.00 Public Works, Engineering Sr. Engineering Technician Abolish (1.00) Public Works, Engineering Engineering Technician Add 1.00 Total 0.03 The reduction in Information Technology staffing was due to a reorganization arising from retirements and the changes taking place in type and delivery of information technology services. In recent years the City has been moving away from the IBM iseries platform to a Microsoft platform supporting the Windows environment. The skills required by staff for the new platform and how services are delivered are different from the requirements of the iseries platform. Due to fiscal challenges facing the State of Alaska and University of Alaska Southeast (UAS), the City s contract with UAS to manage the University s Ketchikan campus library was restructured to lower its overall costs. Part of restructuring involved the making changes to the staffing plan to lower the cost of personnel services. The number of hours worked and wages were reduced, which resulted in a reduction in Library staffing. The Museum Department s staff increased as a result of funding the positon of the Curator of Exhibit for a full year in The position was only funded for six months in Regular salaries and wages are projected to increase by $418,879 to $11.2 million in The increase is due to step increases, a 2 percent cost of living adjustment for non represented employees and all represented employees effective January 1, 2017 except those employees covered by the Public Safety Employee Association (PSEA) collective bargaining agreement. Employees belonging to the PSEA collective bargaining unit will receive a 2 percent cost of living adjustment effective July 1, While health insurance benefit costs in 2016 did not increase as much as projected because premium increases were significantly lower, the City anticipates that premiums will increase by 10% in Since the City has enjoyed two consecutive renewals with premium increases of less than 10%, the odds of this occurring again in 2017 are low. Workers compensation insurance premiums are expected to increase about 5%, effective July This increase is not evident from reviewing the above table due to an error that occurred in developing the workers compensations figures that were used for the 2016 Budget. The estimate for 2016 in the above table approximates the correct amount. Workers compensation insurance premiums are established by the National Council on Compensation Insurance and based on claims, which have been increasing nationally in recent years. B - 16

27 Supplies: Supplies include office and operating supplies, maintenance materials, fuel, postage, books and publications, chemicals and similar expendable items used in operations. This category accounts for 5.0% of operating expenditures. The amount requested for supplies in 2017 is $44,797, or 2.1%, less than the amount requested in Contractual and Purchased Services: Contractual and purchased services include travel, training, advertising, maintenance services, software and equipment maintenance agreements, leases and rentals of property and equipment, professional services, utilities and technical services. This category accounts for 17.3% of operating expenditures. The amount requested for contractual and purchased services in 2017 is $387,064, or 5.7%, more than the amount requested in Capital Outlay: The amount requested for major capital outlay has been programmed to decrease by $8.3 million to $15.2 million. The amount requested for minor capital outlay has increased by $5,988 to $272,870. The chart below identifies the source of funding for the capital projects proposed for For more information regarding the City s capital spending plans for 2017, please see the Capital Improvement Program. Source of Funding for 2017 Capital Budget CPV Funds 1.5% Grants 20.1% Bonds 7.4% Local Revenue 71.0% Debt Service: Debt service accounts for 15.2% of operating expenses. The amount requested for debt service in 2017 is $387,850, or 5.8% less than the amount requested in The decrease is due to the successful refunding of the 2016 Port Revenue Bond. Please see the discussion under Debt Management, which begins on page B 28, for further information about the City's debt obligations. The General Government Budget Overview Report Section beginning with page C 1 provides additional analyses for expenditures. B - 17

28 TRANSFERS OUT AND ADVANCES TO OTHER FUNDS Transfers out from other funds include operating subsidies, the movement of financial resources from one fund to another in order to share the cost of programs or activities accounted for in another fund and the transfer of financial resources for debt service. For 2017, $7.24 million has been programmed for transfers out from other funds and $241,547 has been programmed for advances Budget Estimate Budget Transfers Out: General Fund $849,037 $849,037 $841,127 Hospital Sales Tax Fund 3,031,500 3,031,500 3,035,732 Public Works Sales Tax Fund 2,073,125 2,073,125 2,069,184 Transient Tax Fund 351, , ,172 Bayview Cemetery O & M Fund 5,000 5,000 5,000 Shoreline Fund 6,374 6,374 6,374 CPV Fund 483, , ,660 Community Facilities Development Fund 194, , ,000 Port Enterprise Fund 522, , ,000 Total Transfers Out 7,516,197 7,330,529 7,239,249 Advances: Harbor Construction Fund 312, , ,547 Total Advances 312, , ,547 Total Transfers Out and Advances $7,828,697 $7,643,029 $7,480,796 The transfers out of one fund to another fund programmed for 2017 are comparable to 2016 with a few minor exceptions. The transfer from the CPV Fund decreased by $243,590 due the decision to curtail CPV spending until projects eligible for CPV funding have been properly vetted by the City Council, the cruise line industry and the general public. The transfer from the Community Facilities Development Fund decreased by $32,300 because the remaining proceeds from the bond issued to finance the Bawden Street Fire Station that were being used to service the debt service were exhausted. The current year transfer represents funds remaining from a Rasmuson Foundation grant and contributions from the Friends of the Library for the Copper Ridge Library that will be used to service the annual debt service on the bond that was issued to finance its construction. Advances have been programmed to decrease by $70,953 because the amount required for the final repayment of the loan from the Economic Development and Parking Fund to the Harbor Construction Fund to finance the construction of the drive down float will mature. The final payment of $241,547 will pay off the balance of the $1.25 million loan. For more information about transfers out and advances, please refer to the Transfers and Advances section of the 2017 Budget. B - 18

29 REVIEW OF MAJOR FUNDS This section contains a review of the major funds of the City. Included are the following funds: General Fund Sales Tax Funds o Public Works Sales Tax o Hospital Sales Tax Special Revenue Generating Funds o Small Boat Harbor o Solid Waste Services Enterprise Funds o Wastewater o Port The funds listed above account for 89.8%, or $42.6 million of the City of Ketchikan s total operating revenue, 86.2%, or $35.6 million of the City s total operating expenditures and 100% of all personnel that has been programmed for For information about the City s other major fund, the KPU Enterprise Fund, please see the 2017 KPU Operating and Capital Budget. General Fund: The General Fund is the main operating fund of the City and is considered its most important fund. This fund provides the financial resources for the administration of the City and many of its vital services such as fire and police protection, library, museum and civic center facilities, public health, street and cemetery operations and maintenance, and the maintenance of the City s rolling stock and buildings. The General Fund accounts for: of the City s general government employees and 81.1% of its annual general government payroll 37.4% of the City s annual operating revenues 51.3% of the City s annual operating expenses for general government A summary of the proposed 2017 Budget for the General Fund, with a comparison to 2016 and 2015 is provided below. B - 19

30 Actual Budget Estimate Budget Revenues Taxes: Property $ 5,415,423 $ 5,416,325 $ 5,563,373 $ 5,563,373 Sales 4,285,469 4,293,750 4,293,750 4,293,750 Other 133, , , ,000 Total Taxes 9,834,438 9,815,075 9,967,123 9,967,123 PILOT 1,197,164 1,195,000 1,220,000 1,210,000 Licenses and Permits 82,917 75, , ,100 Intergovernmental 624, , , ,816 Charges for Services 2,081,898 2,154,085 2,137,416 2,159,760 Fines & Forfeitures 150, , , ,000 Other 209,107 97, , ,820 Interdepartmental Charges 3,138,615 3,509,865 3,387,000 3,572,130 Total Revenues 17,319,049 17,612,249 17,595,638 17,740,749 Transfers In Tax Funds 2,731,193 2,771,611 2,755,660 2,778,172 Transfers In Other Funds 77,011 99,624 88,824 99,034 Total Revenues and Transfers 20,127,253 20,483,484 20,440,122 20,617,955 Expenditures Personnel Services 15,073,674 16,144,120 15,402,066 16,857,434 Supplies 958,073 1,276,421 1,167,706 1,258,313 Contract & Purchased Services 1,927,282 2,320,609 2,325,631 2,502,276 Capital Outlay Minor 188, , , ,920 Public Safety Grants 88, , , ,814 Interdepartmental Charges 174, , , ,650 Capital Outlay Major 87, ,000 94,000 74,000 Total Expenditures 18,497,553 20,357,399 19,459,292 21,295,407 Transfers Out 689, , , ,127 19,186,685 21,206,436 20,308,329 22,136,534 Surplus (Deficit) $ 940,568 $ (722,952) $ 131,793 $ (1,518,579) Reserves at December 31 $ 5,047,633 $ 3,557,093 $ 5,179,426 $ 3,660,847 Number of Employees The General Fund relies heavily on tax revenues to finance its operations. Between tax revenues that are deposited directly into the General Fund, tax revenues transferred from other funds, and the PILOT that is assessed against enterprise funds of the City, a total of about $14 million of tax revenues has been programmed to finance 63% of the General Fund s $22.1 million budget for Charges for services and interdepartmental revenues have been forecasted to finance $5.71 million, or 25.9% of the General Fund s 2017 Budget. For more information about tax revenues and charges for services, see pages B 9, B 10, B 11 and B 12. B - 20

31 The biggest expenditure of the General Fund is personnel services, which amounts to $16.86 million and accounts for 76.2% of the General Fund s proposed budget for Since the General Fund s labor force is relatively static, the primary cost drivers are step increases, cost of living adjustments and retirement and health insurance costs. Contribution rates to retirement plans have remained unchanged since The cost of employee benefits is approximately 59.5% of compensation. For more information about the cost of personnel services, see page B 15 and B 16. Although a deficit of $1.5 million has been programmed for the General Fund in 2017, it is highly unlikely that it will occur because the City rarely comes close to spending all the appropriations of the General Fund. Assuming that past trends continue, the City s General Fund will most likely end 2017 with a deficit between $400,000 and $600,000. Sales Tax Funds: The City s sales tax rate is 4%. Sales tax collections are accounted for in the General Fund and the City s two sales tax funds. The proceeds from the 1.5% City Public Works Sales Tax are accounted for in the Public Works Sales Tax fund. The proceeds from the 1% City Hospital Sales Tax are accounted for in the Hospital Sales Tax Fund. The remaining 1.5% goes into the General Fund. The Public Work Sales Tax Fund is the primary source of local funding for major maintenance and capital projects for functions that are not supported by the revenue generating or enterprise funds of the City. An annual transfer of $2 million is made from the Public Works Sales Tax Fund to the General Fund to support public work functions accounted for in the General Fund. The total cost of the public works functions accounted for in the General Fund is $4.78 million. A summary of the proposed 2017 Budget for the Public Works Sales Tax Fund, with a comparison to 2016 and 2015 is provided below Actual Budget Estimate Budget Revenues Sales Taxes $ 4,297,909 $ 4,311,750 $ 4,311,750 $ 4,311,750 Other 220,732 20,524 6,000 Total Revenues 4,518,641 4,332,274 4,311,750 4,317,750 Expenditures General Government 20,000 5,000 20,000 Fire and Police 292, , ,382 1,358,526 Library, Museum and Civic Center 170, ,484 1,068, ,000 Public Works 1,256,665 2,150,000 1,621,956 1,920,000 Transfers to General Fund 2,000,000 2,000,000 2,000,000 2,000,000 Transfers to Community Grant Fund 73,125 73,125 73,125 69,184 Total Expenditures 3,793,269 5,561,911 4,977,585 5,647,710 Surplus (Deficit) $ 725,372 $ (1,229,637) $ (665,835) $ (1,329,960) Reserves at December 31 $ 4,765,718 $ 3,005,796 $ 4,099,883 $ 2,769,923 The proposed budget for the Public Works Sales Tax Fund is expected to generate a $1.33 million deficit. This is a significant improvement over the $2.93 million deficit programmed in the first draft of the budget for this fund. Approximately 63% of the expenditures programmed for this fund are for B - 21

32 major maintenance or capital improvements. The actual disbursement of these expenditures is contingent on such factors as the weather, the availability of contractors to perform the work, and project coordination with other City departments and the State of Alaska. The transfers to the General Fund and the Community Grant Fund will occur as programmed. The $2 million transfer to the General Fund is used to offset the cost of the Public Works functions accounted for in the General Fund and is necessary in order to keep the mill rate at 6.7 mils. The Public Works Sales Tax Fund is projected to end 2017 with $2.77 million in reserves. Management recommends no less than $2.5 million. This recommendation is based on the age of the City s infrastructure and the limited availability of funding to finance capital improvements for functions that are not supported by user charges. The Hospital Sales Tax Fund is primarily used to accumulate and account for resources to be used to acquire, operate and maintain health care facilities and programs. Resources not required to satisfy its primary purpose may, at discretion of the City Council be used for public works purposes or to partially pay for the general operational cost of the City government. Currently, the Hospital Sales Tax Fund is providing the resources required for the annual debt service on the 1997 and 2014 Hospital General Obligation Bonds and a $420,000 transfer to the General Fund that is used to help hold the mill rate at 6.7 mills. The fund is also used to cover the cost of major maintenance that may be required for the Ketchikan Medical Center. A summary of the proposed 2017 Budget for the Hospital Sales Tax Fund, with a comparison to 2016 and 2015 is provided below Actual Budget Estimate Budget Revenues Sales Taxes $ 2,865,453 $ 2,875,000 $ 2,875,000 $ 2,875,000 Other 3,457 7,000 Total Revenues 2,868,910 2,875,000 2,875,000 2,882,000 Expenditures Hospital Maintenance 38,800 38,740 38,740 Healthcare Facility Improvements 225,000 43, ,000 Transfers to General Fund 420, , , ,000 Transers to Community Grant Fund 48,750 48,750 48,750 45,632 Transfers to GO Debt Service Fund 2,524,389 2,562,750 2,562,750 2,570,100 Total Expenditures 2,993,139 3,295,300 3,113,751 3,704,472 Surplus (Deficit) $ (124,229) $ (420,300) $ (238,751) $ (822,472) Reserves at December 31 $ 4,996,410 $ 4,511,417 $ 4,757,659 $ 3,935,187 A deficit of $822,472 has been programmed for the Hospital Sales Tax Fund for This is beginning to raise concerns because over a three year period, including the proposed spending for 2017, reserves will have declined by about $1.2 million. If this level of spending continues, the City will not be able to keep its promise to the community that the issuance of the 2014 Hospital General Obligation Bond would not result in an increase in the 1% Hospital Sales Tax or property taxes. Currently, about 89% of sales tax revenues of the Hospital Sales Tax Fund go towards debt service on B - 22

33 all the hospital bonds. Given the volatility of sales tax revenues, maintaining an adequate level of reserves is important if the City still desires to avoid tax increases to pay for hospital bonds. To illustrate the sensitivity, a decline of more than 10% of the current projection for sales tax revenues would require the City to begin using reserves to meet its debt service obligations. Special Revenue Generating Funds: The City has two special revenue generating funds. They are the Small Boat Harbor Fund and the Solid Waste Services Fund. A summary of the proposed 2017 Budget for the Small Boat Harbor Fund, with a comparison to 2016 and 2015 is provided below Actual Budget Estimate Budget Revenues Charges for Services $ 1,329,984 $ 1,421,345 $ 1,428,700 $ 1,512,000 Shared Fisheries Tax 30,608 30,000 16,000 16,000 Other 56,341 6,000 2,000 5,200 Total Revenues 1,416,933 1,457,345 1,446,700 1,533,200 Expenditures Personnel Services 565, , , ,048 Supplies 61,737 70,390 70,390 70,390 Contract/Purchased Services 254, , , ,696 Minor Capital Outlay ,000 19,000 15,000 Major Capital Outlay 75,972 17,000 Interdepartmental Charges 200, , , ,960 Debt Service 203, , , ,250 Total Expenditures 1,362,959 1,531,810 1,369,798 1,511,344 Surplus (Deficit) $ 53,974 $ (74,465) $ 76,902 $ 21,856 Reserves at December 31 $ 976,847 $ 772,679 $ 1,053,749 $ 1,075,605 Number of Employees The Small Boat Harbor Fund is used to account for the resources required to operate and maintain City owned and managed harbors. It relies primarily on user fees to support its operations and provide for debt service. The fund is able to support minor capital outlay but the current rate structure is not adequate enough to support large scale capital projects without a combination of funding from raw fish tax revenues, grants and bonds. Most of the major capital outlay is accounted for in the Harbor Construction Fund. A small surplus of $21,856 has been programmed for the Small Boat Harbor Fund for The surplus is dependent on approval of a fifth and final proposed 7% rate increase required to support the $5 million bond issued to finance improvements for the harbors. This proposed rate increase is consistent with the financing plan developed for the $5 million bond and won t become effective until September 30, The Small Boat Harbor Fund is projected to have reserves totaling $1.07 B - 23

34 million on hand by the end of The minimum amount recommended under the City s fund balance policy is $1.38 million. It is important to note that without additional rate increases beyond 2017 the Harbor Department will have to rely solely on the Raw Fish Tax, grants and bonds to finance major capital improvements for the City s harbors. As is evident from the table above, the current rate structure will only support about $50,000 annually in capital spending. The City must keep the Harbor Department s capital improvement program current and relevant in order to ensure that there will be an appropriate funding mechanism in place to finance future major maintenance and capital improvements. A summary of the proposed 2017 Budget for the Solid Waste Services Fund, with a comparison to 2016 and 2015 is provided below Actual Budget Estimate Budget Revenues Charges for Services $ 2,809,864 $ 3,364,350 $ 3,325,000 $ 3,427,000 Other 53,361 42,150 45,150 49,150 Total Revenues 2,863,225 3,406,500 3,370,150 3,476,150 Expenditures Personnel Services 1,093,466 1,192,628 1,162,655 1,204,753 Supplies 216, , , ,907 Contract/Purchased Services 1,063,159 1,176,620 1,169,630 1,199,735 Minor Capital Outlay 15,313 27,950 27,350 27,950 Major Capital Outlay 764, , , ,500 Interdepartmental Charges 420, , , ,120 Total Expenditures 3,573,753 3,699,202 3,254,051 3,724,965 Surplus (Deficit) $ (710,528) $ (292,702) $ 116,099 $ (248,815) Reserves at December 31 $ 3,028,040 $ 2,690,971 $ 3,144,139 $ 2,895,324 Number of Employees The Solid Waste Services Fund is used to account for the resources required to operate and maintain the municipal solid waste landfill and solid waste collection and recycling services. It relies solely on user fees to support its operations and provide for capital improvements. Although a deficit of $248,815 has been programmed for the Solid Waste Services Fund for 2017, the fund has essentially been breaking even for a number of years. The deficit programmed for 2017 is the result of the continuation of the Solid Waste Division s aggressive capital improvement plan to improve its solid waste facilities. For 2017, the division is anticipating that it will spend $317,500 to replace an excavator and maintenance truck, $100,000 for cover material and $182,000 to begin the design for the building extension of the SWRHF. The total cost of the building extension is about $883,000 and construction is planned to begin in B - 24

35 The Solid Waste Services Fund has sufficient reserves and can absorb this deficit for The fund is projected to have reserves totaling $2.9 million on hand by the end of The minimum amount recommended under the City s fund balance policy is $1.1 million plus $960,000 that is required for closing the landfill for a total of $2.1 million. It should be noted that Solid Waste s CIP is requesting $635,000 from the reserves of the Solid Waste Services Fund in 2018 to finance the construction of an $883,000 building extension for the SWRHF. Assuming that funding for the design of the building extension is approved in 2017 and the City decides to move forward with construction in 2018, reserves will mostly likely decline to about $2.1 million by the end of Enterprise Funds: The City has two enterprise funds. They are the Wastewater Fund and the Port Fund. A summary of the proposed 2017 Budget for the Wastewater Fund, with a comparison to 2016 and 2015 is provided below Actual Budget Estimate Budget Revenues Charges for Services $ 2,757,661 $ 2,980,829 $ 2,984,370 $ 3,040,500 Grants and Bond Proceeds 209,325 1,323,000 Total Revenues 2,966,986 2,980,829 4,307,370 3,040,500 Expenditures Personnel Services 800, , , ,705 Supplies 290, , , ,675 Contract/Purchased Services 282, , , ,375 Minor Capital Outlay 48,921 53,500 53,500 53,500 Major Capital Outlay 212,908 1,320,200 2,816, ,000 Interdepartmental Charges 464, , , ,440 Debt Service 131, , , ,683 Payment in Lieu of Taxes 80,000 80,000 80,000 80,000 Total Expenditures 2,310,454 3,655,735 5,127,694 3,004,378 Surplus (Deficit) $ 656,532 $ (674,906) $ (820,324) $ 36,122 Reserves at December 31 $ 1,587,673 $ 1,265,802 $ 767,349 $ 803,471 Number of Employees The Wastewater Fund is used to account for the resources required to operate and maintain the municipal wastewater utility. It relies solely on user fees to support its operations and provide for capital improvements. Grants from the State of Alaska are also used to help fund capital improvements. A small surplus has been programmed for the Wastewater Fund for 2017 but only after completely revamping the capital improvement after the first draft of the budget for the Wastewater Division was submitted. Originally, a deficit of $305,100 had been programmed. The original capital improvement program was revised to bring capital spending in line with existing resources while at the same time holding reserves constant. Based on the resources required for operations, it was B - 25

36 determined that approximately $600,000 can be spent annually for capital projects without the need to use reserves and the Wastewater Division s Capital Improvement Program was modified accordingly. While the action taken for 2017 was prudent in order to preserve reserves for emergencies and contingencies, it puts the utility at risk for deferred maintenance and does not address the overall assessment that the wastewater infrastructure is old and in need of replacement. The Wastewater Division s original Capital Improvement Program as presented by the Public Works Director totaled $16.4 million. It has been trimmed back to $3 million in order to balance operating and capital spending against available financial resources. The Wastewater Fund is projected to end the year with reserves of about $803,000. The minimum amount recommended under the City s fund balance policy is $1.05 million. For a number of years, management has been recommending rate increases for wastewater utility services. An independent review by the FCS Group, an outside consulting firm, also concluded that if the City intends to pursue a proactive plan of capital improvements for its wastewater utility, rate increases would be required in order to avoid deficit spending and negative reserves. The contractor that conducted the original review is currently under contract to update their revenue requirements and rate study. For more information about rate increases for the wastewater utility, please see page B 3. Failing to address the rate structure for the wastewater utility could also potentially affect the City s ability to issue bonds to finance capital improvements. The City s lowest cost alternative for debt financing is through the Alaska Department of Environmental Conservation s Clean Water Loan Program. ADEC generally conducts a credit analysis prior to approving loan applications. In April 2014, ADEC reviewed the finances of the Wastewater Fund and confirmed the recommendations of management and the FCS Group that rate increases were warranted. If the City fails to take any action, it may not be able to issue bonds through ADEC. This would result in substantially higher borrowing costs. B - 26

37 A summary of the proposed 2017 Budget for the Port Fund, with a comparison to 2016 and 2015 is provided below Actual Budget Estimate Budget Revenues Charges for Services $ 9,070,932 $ 9,080,500 $ 9,069,700 $ 9,508,000 Grants and Bond Proceeds 937,000 1,633, ,399 1,499,601 Other 108, , , ,900 Total Revenues 10,115,932 10,821,500 9,345,099 11,124,501 Expenditures Personnel Services 1,010,413 1,098,229 1,022,590 1,112,170 Supplies 61,595 86,095 86,095 91,595 Contract/Purchased Services 506, , , ,467 Berth IV Lease 2,368,087 2,490,000 2,490,000 2,561,000 Minor Capital Outlay 1,964 12,500 12,500 8,500 Major Capital Outlay 1,151,652 2,022, ,494 4,727,651 Interdepartmental Charges 343, , , ,830 Debt Service 2,571,740 2,579,050 3,293,267 2,228,350 Property Taxes 484, , , ,000 Transfer to CPV Fund Transfer to Port R&R Fund 522, , , ,000 Total Expenditures 9,021,810 10,177,743 9,204,459 12,598,563 Surplus (Deficit) $ 1,094,122 $ 643,757 $ 140,640 $ (1,474,062) Reserves at December 31 $ 6,546,794 $ 7,186,673 $ 6,687,434 $ 5,213,372 Number of Employees The Port Fund is used to account for the resources required to operate and maintain the Port of Ketchikan. It relies solely on user fees to support its operations and provide for capital improvements. Grants from the State of Alaska are also used to help fund capital improvements. A deficit of $1.47 million has been programmed for the Port Fund for The primary reason for the deficit is a substantial increase in capital spending that will be financed solely from the revenues and reserves of the Port Fund. For the past several years, a substantial portion of the Port s capital spending was financed by grants from the State of Alaska. For 2017, capital spending financed by revenues and reserves will total $3.23 million. Included in this total are capital improvements planned for Berth III totaling $3.15 million. The City is projecting that the Port will serve about 1,015,000 passengers in 2017, which, if achieved, would be an all time record. As a result, revenues from charges for services will increase by $427,500, or 4.7%. Most of the increase will come from the City s passenger wharfage fee of $7 per passenger. The Berth IV lease payment is also projected to increase because the City is required to pay additional sums if the number of passengers exceeds 820,000. The lease agreement between the City and the owners of Berth IV contains a three tier structure based on passenger volume for determining the annual lease payment for Berth IV. The successful refunding of the 2006 Port Revenue Bond resulted in annual debt service savings of approximately $350,000, or $6.6 million over B - 27

38 the remaining term of the bond. All other operating expenses projected for the Port in 2017 are comparable to The Port Fund is projected to have reserves totaling $5.2 million on hand by the end of The minimum reserve balance for the Port is $5.8 million. This includes an operating contingency of $2 million, a capital contingency of $1.6 million and a debt service contingency of $2.2 million. The debt service contingency is in place to ensure that the Port will be able to make the required annual debt service payment on the 2016 Port Revenue Refunding Bond during an extended downturn of the tourism industry. The contingency for the debt was based on average debt service to maturity for the 2016 Port Revenue Refunding Bond. Please see page C 17 for additional information on debt service maturity. CAPITAL IMPROVEMENT PROGRAM The proposed Capital Improvement Program (CIP) was developed to address the longterm capital needs of the community and ensure the proper maintenance of the City s infrastructure. The estimated cost of the CIP for the five year period ending December 31, 2021 is $55.2 million. The first year of the CIP, also known as the Capital Budget, has been incorporated into the 2017 General Government Operating and Capital Budget. The cost of the 2017 Capital Budget is $15.2 million. For detailed information regarding specific projects, please refer to the CIP, which contains cost estimates and narratives for each project. DEBT MANAGEMENT In 2017, the City will have to fund the annual debt service for ten general obligation bonds totaling $59,486,578 and two revenue bond issues totaling $27,306,915. The table below summarizes the City s 12 outstanding bond issues and their annual debt service requirements. B - 28

39 Annual Debt Service Requirements Balance Final Issue Jan 1, 2017 Maturity Type Budget Estimate Budget 2006 Port $ Revenue $ 2,579,050 $ 2,578,613 $ 2016 Port Refund 27,025, Revenue 714,654 2,228, Hospital Refund 1,540, GO 809, , ,400 Wastewater , GO 52,448 52,448 52,447 Wastewater , GO 17,933 17,933 17,933 Wastewater , GO 18,465 18,465 18,465 Wastewater , GO 48,648 67,188 36,907 Wastewater , Revenue 17,931 17,931 17, Fire Station 5,770, GO 628, , , Library 4,285, GO 358, , , Harbor 2,635, GO 205, , , Hospital 41,320, GO 1,753,700 1,753,700 1,753, Harbor 1,765, GO 168,000 6, ,150 Total $ 86,793,493 $ 6,657,676 $ 7,229,212 $ 6,269,826 All of the bonds have been issued through the Alaska Municipal Bond Bank with the exception of the ADEC Wastewater Bonds. The Wastewater Bonds were issued through the Alaska Department of Environmental Conservation s Clean Water Loan Fund. Bonds issued through the Bond Bank permit the City to take advantage of the Bond Bank s AAA credit rating and lower issuance costs. The ADEC loans are subsidized by the federal government and carry an interest rate of 1.5%. In 2016, the City issued one general obligation bond totaling $1.77 million to finance improvements for the City owned harbor facilities and one revenue bond to refinance the 2006 Port Revenue Bond. The refinancing of the port bond resulted in an overall decrease of $387,850 in the City s annual debt service. The table below summarizes where the funds will come from to pay for the annual debt service. Source Amount Port Revenues $ 2,228,350 Hospital Sales Tax 2,570,100 Wastewater Revenues 143,683 Property Taxes 696,943 Harbor Revenues 344,250 IRS Rebate 124,500 Contributions 162,000 Total $ 6,269,826 Total annual debt service in the amount of $6,269,826 has been programmed in the 2017 Budget. On January 1, 2017, the total debt service required to maturity, including interest of $48,864,070, will be $135,657,563. Please see page C 17 for schedule of the City s debt obligations. For information regarding bonds issued for KPU, please see page C 7 of the 2017 KPU Operating and Capital Budget. B - 29

40 (Note: This transmittal letter does not reflect any subsequent action taken by the City Council during its budget deliberations to modify the spending plan proposed for 2017.) B - 30

41 , ALASKA 2017 ANNUAL BUDGET REVENUES AND APPROPRIATIONS SUMMARY BY FUND ALL FUNDS Est Funds Appropriated Available Revenues Appropriations Reserves Fund Jan 1, 2017 Operating Capital Grants Bond Proceeds Transfers In Advances Operating Capital Transfers Out Advances Dec. 31, 2017 C General 5,134,186 17,703,479 2,831,961 21,126,716 74, ,127 3,702,783 Special Revenue Tax Funds 110 Hospital Sales Tax 4,757,659 2,882,000 38, ,000 3,035,732 3,935, Public Works Sales Tax 4,670,158 4,317,750 4,156,426 2,069,184 2,762, Transient Tax 388, , , ,318 Special Revenue Funds Revenue Generating 220 Solid Waste Services 3,144,139 3,476,150 3,123, ,500 2,897, Small Boat Harbor 1,053,749 1,533,200 1,493,454 17,000 1,076, Bayview Cemetery O & M 56,353 3,100 5,000 54, Bayview Development 54,428 10,100 51,000 13, Cemetery Endowment 18,653 1,500 20,153 Special Revenue Funds Other 112 Shoreline 117, , , Community Grant Fund 12, , , , Economic & Parking Development 885, , , , CPV Fund 1,772,318 2,141,000 40, ,415 3,653, US Marshall Property Seizure 182,552 15, , Federal and State Grant 231, ,848 Debt Service Funds 410 GO Bond Debt Service 124,500 3,429,043 3,553,543 Capital Project Funds 310 Major Capital Improvements 84,457 50, , ,000 84, Harbor Construction Fund 660, , , ,610 1,337, , , Community Facilities Development 2,894,027 10, , , ,000 2,662, Hospital Construction Fund 2,694,860 2,694,860 Enterprise and Internal Service Funds 505 Wastewater Services 772,025 3,040,500 2,401, , , Ketchikan Port Fund 6,693,215 9,624,900 1,499,601 7,349,082 4,713, ,000 5,233, Port Repair & Replacement Fund 4,665,308 4, ,000 5,191, Self Insurance Fund 526,023 1,556, ,998 1,532, ,021 Total 41,238,211 47,198,886 2,408, ,610 7,144, ,479 41,162,105 15,614,447 7,144, ,547 34,844,591

42 , ALASKA 2017 ANNUAL BUDGET COMPARATIVE SCHEDULE OF RESERVES All FUNDS Fund 2016 Budget Budget Estimate 2017 C General 4,635,284 3,686,537 3,350,096 4,085,125 5,047,633 3,557,093 5,134,186 3,702,783 Special Revenue Funds Tax 110 Hospital Sales Tax 3,089,521 2,997,529 5,157,513 5,097,870 4,996,410 4,511,417 4,757,659 3,935, Public Works Sales Tax 5,919,783 5,390,724 4,097,688 3,908,154 4,765,718 3,005,796 4,670,158 2,762, Transient Tax 80,242 78, , , , , , ,318 Special Revenue Funds Revenue Generating 220 Solid Waste Services 3,521,514 3,486,202 3,496,051 3,739,148 3,028,040 2,690,971 3,144,139 2,897, Boat Harbor 781, , , , , ,029 1,053,749 1,076, Bayview Cemetery O & M 67,023 65,902 63,850 60,234 58,353 60,234 56,353 54, Bayview Development 50,453 46,279 53,741 63,603 54,428 20,603 54,428 13, Cemetery Endowment 12,038 13,382 14,447 16,343 17,153 19,343 18,653 20,153 Special Revenue Funds Other 112 Shoreline 149, , , , , , , , Community Grant , , Economic and Parking Development 1,590,382 2,004, , , , , , , Special Assessment Guarantee 406, CPV Fund (101,672) 1,404,137 1,772,318 3,653, US Marshall Property Seizure 25,267 5,270 10, , , , , , Federal State and Grant Debt Service Funds 410 GO Bond Debt Service Capital Improvement Funds 310 Major Capital Improvements 74,919 74,116 74,116 74,774 84,457 54,792 84,457 84, Harbor Construction 749, , ,933 1,665, , , , , Community Facilities Development 2,118,028 4,590,840 3,150,517 2,821,106 2,794,118 2,893,724 2,894,027 2,662, Hospital Construction 4,009,205 5,042, ,323 2,694,860 Enterprise and Internal Service Funds 505 Wastewater 2,250,114 1,324,048 1,137,085 1,621,359 1,587,673 1,263, , , Port 3,170,207 4,170,785 4,537,478 7,019,598 6,546,794 7,186,673 6,693,215 5,233, Port Repair & Replacement 2,088,610 2,613,392 3,137,625 3,664,611 4,192,162 4,582,551 4,665,308 5,191, Self Insurance 1,077,161 1,117, , , , , , ,021 Total All Funds 31,856,855 33,164,864 30,675,692 39,768,059 41,967,143 34,717,348 41,238,211 34,844,591

43 , ALASKA 2017 ANNUAL BUDGET REVENUES AND APPROPRIATIONS SUMMARY BY DEPARTMENT ALL FUNDS Economic & Bayview US Marshal Hospital Public Works Shoreline Community Parking Transient Solid Waste Ketchikan Cemetery Cemetery Cemetery CPV Property General Sales Tax Sales Tax Area Grant Development Sales Tax Services Boat Harbor O & M Development Endowment Fund Seizure Beginning Reserves, January 1 5,134,186 4,757,659 4,670, ,411 12, , ,490 3,144,139 1,053,749 56,353 54,428 18,653 1,772, ,552 Revenues Taxes 9,967,123 2,875,000 4,311, ,000 Payments in Lieu of Tax 1,210,000 Licenses and Permits 107,100 Intergovermental 427,896 16,000 2,141,000 Charges for Services 2,214,760 3,427,000 1,512,000 3,000 10,000 1,500 Fines and Forfeitures 152,000 4,000 15,000 Other Revenues 59,820 7,000 6, ,000 7,000 1, Bond Proceeds Interfund Advances 241,547 Interdepartmental Charges 3,564,780 42,150 Total Revenues 17,703,479 2,882,000 4,317, , , ,000 3,476,150 1,533,200 3,100 10,100 1,500 2,141,000 15,230 Transfers In 2,831, ,000 Funds Available 25,669,626 7,639,659 8,987, , ,407 1,127, ,490 6,620,289 2,586,949 59,453 64,528 20,153 3,913, ,782 C - 3 Expenditures Mayor Council 194, ,407 Law 365,437 Clerk 319,407 Manager 736,422 Finance 2,128,193 20,000 Information Technology 1,020,691 Fire 3,623, ,726 Police 5,187, ,800 Library 1,404,685 Museum 1,031,596 Civic Center 457, ,900 Tourism & Economic Development 162,450 40,000 Public Health Center 14, ,740 Public Works Engineering 1,815, ,000 Public Works Streets 1,799,520 2,135,000 Public Works Solid Waste 3,723,175 Public Works Cemetery 85,720 27,000 51,000 Public Works Garage 547,732 71,000 Public Works Wastewater Public Works Building Maintenance 468, ,000 Small Boat Harbors 1,510,454 Port Risk Management Debt Service Transfers 766,127 3,035,732 2,069,184 6, ,172 5, ,415 Advances Total Expenditures 21,966,843 3,704,472 6,225,610 6, , , ,172 3,723,175 1,510,454 5,000 51, ,415 Ending Reserves, December 31 3,702,783 3,935,187 2,762, , , ,318 2,897,114 1,076,495 54,453 13,528 20,153 3,653, ,782 Page 1 of 2

44 , ALAS 2017 ANNUAL BUDGET REVENUES AND APPROPRIIATIONS SUMMARY BY DEPARTMENT ALL FUNDS C - 4 Beginning Reserves, January 1 Revenues Taxes Payments in Lieu of Tax Licenses and Permits Intergovermental Charges for Services Fines and Forfeitures Other Revenues Bond Proceeds Interfund Advances Interdepartmental Charges Total Revenues Transfers In Funds Available Expenditures Mayor Council Law Clerk Manager Finance Information Technology Fire Police Library Museum Civic Center Tourism & Economic Development Public Health Center Public Works Engineering Public Works Streets Public Works Solid Waste Public Works Cemetery Public Works Garage Public Works Wastewater Public Works Building Maintenance Small Boat Harbors Port Risk Management Debt Service Transfers Advances Total Expenditures Ending Reserves, December 31 General Port Federal & Major Community Obligation Repair State Capital Harbor Facilities Hospital Debt Wastewater Ketchikan and Self Grant Improvements Construction Development Construction Service Services Port Replacement Insurance Total 84, ,083 2,894,027 2,694, ,025 6,693,215 4,665, ,023 41,238,211 17,523,873 1,210, , ,848 50, , ,500 1,499,601 5,318,100 3,040,500 9,508,000 19,716, ,000 10, ,900 4,300 24, , , , , , ,479 1,532,500 5,139, ,848 50,000 1,314, , ,500 3,040,500 11,124,501 4,300 1,687,498 50,624, ,000 3,429, ,000 7,144, , ,457 1,974,948 3,061,038 2,694,860 3,553,543 3,812,525 17,817,716 5,191,608 2,213,521 99,006, , , , ,422 2,148,193 1,020, ,848 4,732,539 5,668,876 1,404, , ,000 1,445, , ,450 2,694,860 3,377,925 1,962,628 50,000 3,984,520 3,723, , ,732 3,006,214 3,006, ,476 1,337,705 2,848,159 12,062,514 12,062,514 1,532,500 1,532,500 3,553,543 3,553, , ,000 7,144, , , , ,000 1,579, ,000 2,694,860 3,553,543 3,006,214 12,584,514 1,532,500 64,162,103 84, ,696 2,662, ,311 5,233,202 5,191, ,021 34,844,591 Page 2 of 2

45 , ALASKA 2017 ANNUAL BUDGET REVENUES AND APPROPRIATIONS SUMMARY BY MAJOR EXPENDITURE CATEGORIES ALL FUNDS Economic & Bayview Hospital Public Works Shoreline Community Parking Transient Solid Waste Ketchikan Cemetery Cemetery Cemetery General Sales Tax Sales Tax Area Grant Development Sales Tax Services Boat Harbor O & M Development Endowment Beginning Reserves, January 1 5,134,186 4,757,659 4,670, ,411 12, , ,490 3,144,139 1,053,749 56,353 54,428 18,653 Revenues Taxes 9,967,123 2,875,000 4,311, ,000 Payments in Lieu of Tax 1,210,000 Licenses and Permits 107,100 Intergovermental 427,896 16,000 Charges for Services 2,214,760 3,427,000 1,512,000 3,000 10,000 1,500 Fines and Forfeitures 152,000 4,000 Other Revenues 59,820 7,000 6, ,000 7,000 1, Bond Proceeds Interfund Advances 241,547 Interdepartmental Charges 3,564,780 42,150 Total Revenues 17,703,479 2,882,000 4,317, , , ,000 3,476,150 1,533,200 3,100 10,100 1,500 C - 5 Transfers In Transfers From Other Funds 2,831, ,000 Total Transfers In 2,831, ,000 Funds Available 25,669,626 7,639,659 8,987, , ,407 1,127, ,490 6,620,289 2,586,949 59,453 64,528 20,153 Expenditures Personnel Services 16,803,513 1,204, ,048 Supplies 1,262,613 15, ,907 70,390 Contract & Purchase Services 2,489,046 23, , ,450 1,199, ,696 Capital Outlay Minor 177,920 27,950 15,000 Operating Grants (Police & Fire) 164,894 Interdepartmental Charges 228, , ,070 Debt Service 344,250 Risk Management Payment In Lieu of Taxes Total Operating Expenditures 21,126,716 38, , ,450 3,123,675 1,493,454 Capital Outlay Major 74, ,000 4,156, ,500 17,000 51,000 Transfers Out 766,127 3,035,732 2,069,184 6, ,172 5,000 Advances to Other Funds Total Expenditures 21,966,843 3,704,472 6,225,610 6, , , ,172 3,723,175 1,510,454 5,000 51,000 Ending Reserves, December 31 3,702,783 3,935,187 2,762, , , ,318 2,897,114 1,076,495 54,453 13,528 20,153 Page 1 of 2

46 , ALASKA 2017 ANNUAL BUDGET REVENUES AND APPROPRIAT IONS SUMMARY BY MAJOR EXPENDITURE CATEGORIES ALL FUNDS C - 6 Beginning Reserves, January 1 Revenues Taxes Payments in Lieu of Tax Licenses and Permits Intergovermental Charges for Services Fines and Forfeitures Other Revenues Bond Proceeds Interfund Advances Interdepartmental Charges Total Revenues Transfers In Transfers From Other Funds Total Transfers In Funds Available General Port US Marshal Federal & Major Community Obligation Repair CPV Property State Capital Harbor Facilities Hospital Debt Wastewater Ketchikan and Self Fund Seizure Grant Improvements Construction Development Construction Service Services Port Replacement Insurance Total 1,772, ,552 84, ,083 2,894,027 2,694, ,025 6,693,215 4,665, ,023 41,238,211 17,523,873 1,210, ,100 2,141, ,848 50, , ,500 1,499,601 5,318,100 3,040,500 9,508,000 19,716,760 15, , , ,900 4,300 24, , , , , , ,479 1,532,500 5,139,430 2,141,000 15, ,848 50,000 1,314, , ,500 3,040,500 11,124,501 4,300 1,687,498 50,624, ,000 3,429, ,000 7,144, ,000 3,429, ,000 7,144,004 3,913, , , ,457 1,974,948 3,061,038 2,694,860 3,553,543 3,812,525 17,817,716 5,191,608 2,213,521 99,006,694 Expenditures Personnel Services Supplies Contract & Purchase Services Capital Outlay Minor Operating Grants (Police & Fire) Interdepartmental Charges Debt Service Risk Management Payment In Lieu of Taxes Total Operating Expenditures Capital Outlay Major Transfers Out Advances to Other Funds Total Expenditures Ending Reserves, December ,705 1,112,170 20,599, ,675 91,595 2,033, ,375 3,082,467 7,908,176 53,500 8, , , , ,000 1,806,470 3,553, ,683 2,228,350 6,269,826 1,532,500 1,532,500 80,000 1,007,000 1,087,000 3,553,543 2,401,538 7,871,082 1,532,500 41,684,105 40, , ,000 1,337, ,000 2,694, ,676 4,713,432 15,614, , ,000 6,622, , , , , ,000 1,579, ,000 2,694,860 3,553,543 3,006,214 12,584,514 1,532,500 64,162,103 3,653, ,782 84, ,696 2,662, ,311 5,233,202 5,191, ,021 34,844,591 Page 2 of 2

47 , ALASKA 2017 ANNUAL BUDGET COMPARATIVE SCHEDULE OF APPROPRIATIONS BY DEPARTMENT C ADOPTED AMENDED ADOPTED BUDGET BUDGET ESTIMATES BUDGET % INCR(DECR) Operating Expenditures Mayor & Council 566, , , , , , , % City Law 334, , , , , , , % City Clerk 233, , , , , , , % City Manager 648, , , , , , , % Finance 1,802,494 1,799,638 1,712,999 1,960,594 1,960,594 1,826,030 2,128, % Information Technology 969,266 1,002,880 1,046, , , , , % Fire 3,137,249 3,141,266 3,242,404 3,387,599 3,406,599 3,330,860 3,623, % Police 4,519,210 4,536,040 4,558,609 4,891,974 4,996,220 4,779,529 5,187, % Library 1,285,403 1,226,979 1,315,203 1,417,656 1,422,956 1,345,658 1,404, % Museum 805, , , , , ,796 1,031, % Civic Center 402, , , , , , , % Tourism & Economic Development 175, , , , , , , % Public Health 55,611 33,980 19,959 53,125 53,125 50,180 53, % PW Engineering & Bldg Inspection 1,539,924 1,450,178 1,520,816 1,804,022 1,804,022 1,685,122 1,815, % PW Streets 1,629,236 1,605,185 1,549,566 1,810,674 1,810,674 1,574,860 1,799, % PW Solid Waste 2,692,338 2,691,126 2,813,475 3,148,702 3,148,702 3,041,121 3,123, % PW Cemetery 76,814 76,969 78,073 81,485 81,485 80,945 85, % PW Garage & Warehouse 447, , , , , , , % PW Wastewater 1,998,172 2,071,785 2,097,546 2,335,535 2,335,535 2,311,307 2,401, % PW Building Maintenance 346, , , , , , , % Small Boat Harbors 1,028,836 1,172,104 1,286,987 1,531,810 1,531,810 1,369,798 1,493, % Port Development 8,192,518 7,302,154 7,348,158 7,633,211 8,334,211 8,240,965 7,349, % Risk Management 1,178,147 1,286,240 1,255,552 1,523,000 1,523,000 1,327,810 1,532, % Debt Service 1,837,857 2,624,672 3,541,495 3,549,501 3,549,501 3,549,501 3,553, % Total Operating 35,902,869 35,921,853 37,936,892 40,528,816 41,407,418 39,743,661 41,162, % Page 1 of 3

48 , ALASKA 2017 ANNUAL BUDGET COMPARATIVE SCHEDULE OF APPROPRIATIONS BY DEPARTMENT ADOPTED AMENDED ADOPTED BUDGET BUDGET ESTIMATES BUDGET % INCR(DECR) C - 8 Capital Expenditures Mayor & Council 4, % City Law % City Clerk 3, % City Manager 13,129 12, % Finance 18,355 7,452 (1,200) 20,000 20,000 5,000 20, % Information Technology 76,650 78,993 87, , ,000 94,000 74, % Fire 218, , , , ,106 72,422 1,108, % Police 168, , , , , , , % Library 110, % Museum 56, ,668 69,059 1,100,559 1,397,353 1,375, , % Civic Center 51, , , , , , , % Tourism & Economic Development 42, ,344 3,785,821 40,000 40,000 40, % Public Health 398,995 48,113,845 5,264,710 5,753,900 5,753,900 2,877,551 3,324, % PW Engineering & Bldg Inspection 186,148 60,696 60, , ,250 58, , % PW Streets 1,063, ,077 1,167,104 11,308,200 11,329,916 10,255,007 2,185, % PW Solid Waste 198,613 15, , , , , , % PW Cemetery 4,380 5,700 15,534 39,000 39,000 10,000 78, % PW Garage & Warehouse 12,614 8,698 71,000 NA PW Wastewater 750, , ,908 1,320,200 2,903,387 2,811, , % PW Building Maintenance 3,021, ,703 98,596 24,000 23, ,000 NA Small Boat Harbors 5,842,791 6,004,261 4,200, , , ,573 1,354, % Port Development 10,084,264 83,372 1,151,652 2,022,532 2,022, ,867 4,713, % Total Capital 22,326,637 57,938,225 17,271,318 23,450,583 25,564,019 18,897,850 15,614, % Page 2 of 3

49 , ALASKA 2017 ANNUAL BUDGET COMPARATIVE SCHEDULE OF APPROPRIATIONS BY DEPARTMENT ADOPTED AMENDED ADOPTED BUDGET BUDGET ESTIMATES BUDGET % INCR(DECR) Transfers Out Transfers/Advances to Other Funds 4,723,229 6,641,846 12,963,305 7,828,697 7,828,697 7,597,139 7,385, % Total Transfers Out 4,723,229 6,641,846 12,963,305 7,828,697 7,828,697 7,597,139 7,385, % C - 9 Combined Operating, Capital and Transfers Out Mayor & Council 570, , , , , , , % City Law 335, , , , , , , % City Clerk 236, , , , , , , % City Manager 661, , , , , , , % Finance 1,820,849 1,807,090 1,711,799 1,980,594 1,980,594 1,831,030 2,148, % Information Technology 1,045,916 1,081,873 1,134,034 1,096,723 1,096,723 1,055,275 1,020, % Fire 3,356,093 3,686,215 3,360,598 3,750,961 3,774,705 3,403,282 4,732, % Police 4,687,489 4,871,622 4,686,809 5,080,714 5,197,605 4,959,114 5,668, % Library 1,395,736 1,226,979 1,315,203 1,417,656 1,422,956 1,345,658 1,404, % Museum 861,189 1,069, ,818 2,064,015 2,365,529 2,253,301 1,445, % Civic Center 453, , , , , , , % Tourism & Economic Development 217, ,344 3,948, , , , , % Public Health 454,606 48,147,825 5,284,669 5,807,025 5,807,025 2,927,731 3,377, % PW Engineering & Bldg Inspection 1,726,072 1,510,874 1,581,774 1,971,022 1,974,272 1,743,372 1,962, % PW Streets 2,692,533 2,362,262 2,716,670 13,118,874 13,140,590 11,829,867 3,984, % PW Solid Waste 2,890,951 2,706,496 3,578,463 3,699,202 3,699,202 3,254,051 3,723, % PW Cemetery 81,194 82,669 93, , ,485 90, , % PW Garage & Warehouse 460, , , , , , , % PW Wastewater 2,748,986 2,577,339 2,310,454 3,655,735 5,238,922 5,123,018 3,006, % PW Building Maintenance 3,367, , , , , , , % Small Boat Harbors 6,871,627 7,176,365 5,487,806 1,759,475 1,919,475 1,691,371 2,848, % Port Development 18,276,782 7,385,526 8,499,810 9,655,743 10,356,743 8,729,832 12,062, % Risk Management 1,178,147 1,286,240 1,255,552 1,523,000 1,523,000 1,327,810 1,532, % Debt Service 1,837,857 2,624,672 3,541,495 3,549,501 3,549,501 3,549,501 3,553, % Transfers/Advances to Other Funds 4,723,229 6,641,846 12,963,305 7,828,697 7,828,697 7,597,139 7,385, % Total Expenditures 62,952, ,501,924 67,530,210 71,808,096 74,800,134 66,238,650 64,162, % Page 3 of 3

50 , ALASKA 2017 ANNUAL BUDGET COMPARATIVE SCHEDULE OF REVENUES ALL FUNDS ADOPTED AMENDED ADOPTED 2017 Revenues BUDGET BUDGET ESTIMATES BUDGET % INCR(DECR) C - 10 Revenues Taxes Real Property 4,947,480 5,037,316 5,041,214 5,038,600 5,038,600 5,164,032 5,164, % Business Personal 402, , , , , , , % Sales 10,201,585 10,796,715 11,427,918 11,450,000 11,450,000 11,450,000 11,450,000 Transient 386, , , , , , ,000 Other 136, , , , , , , % Payments in Lieu of Tax 1,196,095 1,196,896 1,197,164 1,195,000 1,195,000 1,220,000 1,210, % Licenses and Permits 91,516 97,998 82,917 75,100 75, , , % Intergovermental 18,226,056 23,195,319 12,570,417 14,213,435 14,453,185 12,612,032 5,318, % Charges for Services General Fund Services 2,143,100 2,171,331 2,136,266 2,214,085 2,218,585 2,192,416 2,214, % Solid Waste 2,851,957 2,907,531 2,809,864 3,364,350 3,364,350 3,325,000 3,427, % Wastewater 2,466,691 2,579,284 2,777,419 2,980,829 2,980,829 2,984,370 3,040, % Small Boat Harbor 1,191,051 1,247,811 1,329,984 1,421,345 1,421,345 1,428,700 1,512, % Port 9,145,724 8,578,032 9,032,271 9,080,500 9,080,500 9,069,700 9,508, % Other 15,888 18,844 9,570 16,500 16,500 14,500 14, % Fines and Forfeitures 182, , , , , , , % Other Revenues 309,888 2,400,329 2,223, , , , , % Bond Proceeds 1,314,140 45,919,268 3,858,491 1,483,000 1,483, ,610 NA Interfund Advances 88, , , , , , % Interdepartmental Charges Administration 3,179,157 3,073,583 3,180,765 3,552,015 3,552,015 3,429,150 3,606, % Insurance 1,178,147 1,286,241 1,255,552 1,523,000 1,523,000 1,327,810 1,532, % Total Revenues 59,566, ,719,616 60,746,948 57,727,336 59,454,806 57,948,223 50,624, %

51 , ALASKA 2017 ANNUAL BUDGET COMPARATIVE SCHEDULE OF REVENUES CHARGES FOR SERVICES ALL FUNDS ADOPTED AMENDED ADOPTED/ BUDGET BUDGET ESTIMATES BUDGET % INCR(DECR) C - 11 Revenues Charges for Services General Fund Civic Center 122,490 90, ,400 98,200 98,200 98,200 98, % Ambulance 515, , , , , , , % Parking Revenue 79,310 75,920 81,230 80,000 80,000 80,000 80, % Fees for Service 14,884 15,548 16,582 17,000 17,000 13,000 15, % Borough Library Service 413, , , , , , , % UAS Library Services 198, ,115 1, % Library Services to KGBSD 40,824 52,305 15,113 15,000 15,000 15,000 15, % 911 Services 429, , , , , , , % Museum Services & Admission Fees 239, , , , , , , % Tideland Leases 61,972 52,091 51,690 60,000 60,000 55,000 55, % Other 27,781 68, , , , , , % General Fund Total 2,143,100 2,171,331 2,136,266 2,214,085 2,218,585 2,192,416 2,214, % Solid Waste Recycling 68,056 58,476 26,549 60,000 60,000 30,000 30, % Fees for Services 56,657 59,571 62,224 60,000 60,000 60,000 60, % Residential Collections 300, , , , , , , % Business Collections 552, , , , , , , % Sanitary Landfill Charges 842, , ,836 1,019,000 1,019,000 1,035,000 1,100, % Residential Access Fees 1,018,684 1,026,392 1,031,457 1,220,000 1,220,000 1,228,000 1,245, % Other 13,565 3,036 18,320 13,000 13,000 13,000 13, % Solid Waste Total 2,851,957 2,907,531 2,809,864 3,364,350 3,364,350 3,325,000 3,427, % Wastewater Residential Sewer Service 1,459,436 1,623,377 1,770,378 1,910,279 1,910,279 1,913,000 1,949, % Business Sewer Service 960, , ,268 1,057,250 1,057,250 1,057,000 1,077, % Other 46,437 4,147 20,773 13,300 13,300 14,370 14, % Wastewater Total 2,466,691 2,579,284 2,777,419 2,980,829 2,980,829 2,984,370 3,040, % Page 1 of 2

52 , ALASKA 2017 ANNUAL BUDGET COMPARATIVE SCHEDULE OF REVENUES CHARGES FOR SERVICES ALL FUNDS ADOPTED AMENDED ADOPTED/ BUDGET BUDGET ESTIMATES BUDGET % INCR(DECR) Small Boat Harbor Electrical Service 84,018 90,775 95,723 85,600 85,600 90,000 90, % Solid Waste Fees 49,549 55,185 69,522 48,150 48,150 69,000 69, % Reserved Moorage 661, , , , , , , % Transient Moorage 336, , , , , , , % Other 59,910 60,729 54,881 78,645 78,645 70,000 70, % Small Boat Harbor Total 1,191,051 1,247,811 1,329,984 1,421,345 1,421,345 1,428,700 1,512, % Cemetery Burial & Endowment Fees 15,888 18,844 9,570 16,500 16,500 14,500 14, % Total 15,888 18,844 9,570 16,500 16,500 14,500 14, % C - 12 Port Electric Service 60,184 52,437 36,427 65,000 65,000 50,000 50, % Additional Docking Fees 778, , , , , , , % Wharfage 6,556,500 6,110,005 6,504,788 6,580,000 6,580,000 6,580,000 6,987, % Water 253, , , , , , , % Parking Revenue 61,560 61,100 62,930 61,000 61,000 62,000 62, % Rental Income 315, , , , , , , % Transient Docking Fees 1,098,571 1,035,060 1,028,619 1,042,000 1,042,000 1,042,000 1,049, % Other 21,784 8,548 93,103 7,500 7,500 40,700 13, % Port Total 9,145,724 8,578,032 9,032,271 9,080,500 9,080,500 9,069,700 9,508, % Total Charges for Services 17,814,411 17,502,833 18,095,374 19,077,609 19,082,109 19,014,686 19,716, % Page 2 of 2

53 , ALASKA 2017 ANNUAL BUDGET COMPARATIVE SCHEDULE OF EMPLOYEES Department/Division Actual Actual Actual Adopted Amended Estimate Budget Incr(Decr) % C Mayor and Council % 1120 Law % 1130 Clerk % 1140 City Manager % 1150 Finance % 1160 Information Technology (0.420) 6.54% 1210 Fire % 1220 Police % 1410 Library (0.050) 0.39% 1420 Museum % 1430 Civic Center % 1510 Engineering % 1530 Streets % 1540 Garage and Warehouse % 1550 Building Maintenance % 1560 Solid Waste % 3000 Wastewater % 1710 Harbor % 4000 Port Development % TOTAL %

54 , ALASKA 2017 OPERATING AND CAPITAL BUDGET SCHEDULE OF ASSESSED VALUATION AND PROPERTY TAX REVENUES Total Assessed Millage Property Year Valuation Rate Tax Revenue C ,823, ,377, ,858, ,333, ,989, ,385, ,803, ,429, ,216, ,886, ,304, ,816, ,537, ,773, ,361, ,733, ,968, ,807, ,321, ,053, ,332, ,253, ,741, ,689, ,108, ,868, ,956, ,885, ,175, ,967, ,516, ,012, ,398, ,744, ,827, ,827, ,497, ,852, ,729, ,021, ,729,700 * 6.7 6,021,500 *Estimated

55 , ALASKA 2017 OPERATING AND CAPITAL BUDGET SCHEDULE OF SALES TAX REVENUES Hospital Public Works Total Sales General Sales Tax Sales Tax Year Tax Revenues Fund Fund Fund C ,436,017 1,838,862 1,838,862 2,758, ,561,037 1,874,582 1,874,582 2,811, ,748,899 1,928,257 1,928,257 2,892, ,862,729 1,960,767 1,960,767 2,941, ,392,507 2,112,145 2,112,145 3,168, ,311,908 2,089,116 2,089,117 3,133, ,870,467 2,248,705 2,248,705 3,373, ,510,327 2,431,522 2,431,522 3,647, ,066,564 2,590,447 2,590,447 3,885, ,084,670 2,595,620 2,595,620 3,893, ,581,723 2,737,635 2,737,635 4,106, ,330,443 2,951,555 2,951,555 4,427, ,491,524 2,711,864 2,711,864 4,067, ,217,764 2,633,647 2,633,647 3,950, ,965,173 2,847,192 2,847,192 4,270, ,131,203 2,894,745 2,894,745 4,341, ,201,586 2,914,739 2,914,739 4,372, ,796,715 3,746,390 2,820,130 4,230, ,427,918 4,285,469 2,856,980 4,285, (1) 11,450,000 4,293,750 2,862,500 4,293, (1) 11,450,000 4,293,750 2,862,500 4,293,750 (1) Estimated

56 , ALASKA 2017 ANNUAL BUDGET SCHEDULE OF SHARED STATE REVENUES Shared Other Liquor Total State Safe Revenue Raw Fisheries State License Year Revenues Communities Sharing Fish Tax Business Tax Assistance Refunds C , , , ,795 5,769 38, , , , ,987 18,383 44, , , , ,794 12,505 37, , , , ,763 27,319 44, , , , ,049 24,005 34, , , , ,572 11,389 45, , ,258 53, ,758 20,377 32, , ,925 14,314 41, , ,411 20,911 33, , ,279 21, ,538 (2) 38, , ,757 20, ,949 (2) 31, , , ,399 11,617 45, , , ,560 20,473 31, ,036, , ,158 11, ,630 (3) 49, ,137, , ,942 23,288 27, ,197, , ,507 27,744 45, ,002, , ,435 25,872 32, ,308, , ,083 43,781 30, , , ,875 30,608 31, (1) 508, , ,564 (4) 16,000 30, (1) 434, , ,200 (4) 16,000 30,000 (1) Estimated (2) Municipal Energy Assistance (3) State Stimulus Funds (4) Does not include the portion accounted for in the KPU Enterprise Fund for the Water Division

57 , ALASKA 2017 ANNUAL BUDGET SCHEDULE OF ANNUAL DEBT SERVICE TO MATURITY General Obligation Bonds Revenue Bonds ADEC ADEC ADEC ADEC Wastewater Wastewater Wastewater Wastewater ADEC Tongass Ave Tongass Ave Tongass Ave Jackson & Wastewater 2006 Year Hospital Phase I Phase II Phase II Monroe Fire Station Library Harbor Hospital Harbor Alaska Ave Port Total C ,400 52,447 17,933 18,465 36, , , ,100 1,753, ,150 17,931 2,228,350 6,269, ,447 17,933 18,465 36, , , ,925 2,533, ,500 17,931 2,236,500 6,235, ,447 17,933 18,465 36, , , ,050 2,532, ,500 17,931 2,240,000 6,235, ,447 17,933 18,465 36, , , ,925 2,529, ,250 17,931 2,236,000 6,224, ,447 17,933 18,465 36, , , ,550 2,529, ,000 17,931 2,234,750 6,211, ,447 17,933 18,465 36, , , ,925 2,532, ,500 17,931 2,236,000 6,209, ,447 17,933 18,465 36, , , ,925 2,532, ,750 17,931 2,234,500 6,196, ,447 17,933 18,465 36, , , ,550 2,529, ,000 17,931 2,235,250 6,191, ,447 17,933 18,465 36, , , ,925 2,529, ,000 17,931 2,233,000 6,178, ,447 17,933 18,465 36, , , ,925 2,531, ,750 17,931 2,232,750 6,172, ,447 17,933 18,465 36, , , ,550 2,530, ,250 17,931 2,234,250 6,161, ,447 17,933 18,465 36, , , ,600 2,533, ,500 17,931 2,237,250 6,153, ,447 17,933 18,465 36, , , ,100 2,529, ,500 17,931 2,231,500 6,140, ,447 17,933 18,465 36, , , ,400 2,534, ,250 17,931 2,237,250 6,129, ,447 17,933 18,465 36, , ,500 2,531, ,750 17,931 2,233,750 5,619, ,224 17,933 18,465 36, ,300 2,530, ,000 17,931 2,236,250 5,234, ,933 18,465 36, ,800 2,533, ,000 17,931 2,234,250 5,205, , ,000 2,532, ,750 2,237,750 5,160, ,907 2,530, ,000 2,231,250 4,945, ,534,300 2,534, ,530,700 2,530, ,534,100 2,534, ,529,400 2,529, ,531,500 2,531, ,530,200 2,530, ,530,400 2,530, ,531,900 2,531, ,529,600 2,529,600 Total 816, , , , ,233 7,998,062 5,401,046 3,665,050 70,101,250 2,777, ,827 42,460, ,657,563

58 Mayor and Council Summary As the elected governing board, the Mayor and City Council are charged with the responsibility of working together to represent the interests of the City of Ketchikan, uniting together to facilitate the effective management, growth and sustainability of the community at large. Mayor and City Council City Clerk City Manager City Attorney KPU General Manager The Mayor and City Council is comprised of one operating division and oversees the Community Grant Program. DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Operations 151, , , , ,821 17, % Community Grant Program 366, , , , ,407 19, % Total 517, , , , ,228 37, % Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 81,681 92,330 92,330 83,740 92,250 (80) 0.1% Supplies 788 1,050 1,050 1,050 1, % Contract/Purchased Services 434, , , , ,178 36, % Minor Capital Outlay 2,000 1,490 1,800 1,800 NA Interdepartmental Charges 525 1,200 1, (250) 20.8% Total 517, , , , ,228 37, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund 248, , , , ,525 (110,168) 43.8% Hospital Sales Tax Fund 48,750 48,750 48,750 48,750 45,632 (3,118) 6.4% Public Works Sales Tax Fund 73,125 73,125 73,125 73,125 69,184 (3,941) 5.4% Community Grant Fund 12,407 12,407 New Solid Waste Fund 5,258 6,140 6,680 6,320 6, % Harbor Fund 2,864 3,340 3,640 3,440 3, % Wastewater Fund 4,001 4,670 5,080 4,810 5, % Port Fund 4,349 5,080 5,530 5,230 5, % KPU Enterprise Fund 131, , , , , , % Total 517, , , , ,228 37, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Operations , % Total , % D - 1

59 Mayor and Council Operations DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 81,681 92,330 92,330 83,740 92,250 (80) 0.1% Supplies 788 1,050 1,050 1,050 1, % Contract/Purchased Services 68,554 82,400 96,021 95,271 98,771 16, % Minor Capital Outlay 2,000 1,490 1,800 1,800 NA Interdepartmental Charges 525 1,200 1, (250) 20.8% Total Expenditures 151, , , , ,821 17, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund 56,271 65,720 71,521 67,641 72,341 6, % Solid Waste Fund 5,258 6,140 6,680 6,320 6, % Wastewater Fund 4,001 4,670 5,080 4,810 5, % Harbor Fund 2,864 3,340 3,640 3,440 3, % Port Fund 4,349 5,080 5,530 5,230 5, % KPU Enterprise Fund 78,805 92, ,150 94, ,310 1, % Total Funding 151, , , , ,821 17, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Mayor , % Council , % Total , % 0.5% 2017 Expenditures by Type 51.2% 47.8% Personnel Services and Benefits Supplies Contract/Purchased Services Interdepartmental Charges 0.5% D - 2

60 Mayor and Council Operations OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Community Promotion (Account No ) increased by $11,500, or by 82.1%, to reflect the City's contribution to the cost of publishing Our Town in 2017 ($10,000) and the cost of replenishing the supply of City lapel pins ($1,500). Assn. Membership Dues and Fees (Account No ) increased by $5,621, or by $65.4%, to reflect the cost of City membership in Southeast Conference. DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 63,173 73,170 73,170 66,000 73, % Payroll Taxes 5,583 5,600 5,600 5,570 5, % Pension 2,703 2,000 2, ,980 (20) 1.0% Workers Compensation (60) 15.0% Allowances Expense 9,906 11,160 11,160 11,160 11, % Personnel Services and Benefits 81,681 92,330 92,330 83,740 92,250 (80) 0.1% Supplies Office Supplies 788 1,000 1,000 1,000 1, % Postage % Supplies 788 1,050 1,050 1,050 1, % Contract/Purchased Services Travel Business 8,264 8,148 8,148 8,000 8,000 (148) 1.8% Ads and Public Announcements % Community Promotion 8,349 14,000 22,000 22,000 25,500 11, % Assn. Membership Dues & Fees 8,371 8,600 14,221 14,221 14,221 5, % Software Maintenance Services 6,800 6,800 6,500 6,500 (300) 4.4% Machinery & Equip Maint Services (52) 6.1% Technical Services NA Management and Consulting Services 42,000 42,000 42,000 42,000 42, % Telecommunications 745 1,250 1,250 1,000 1,000 (250) 20.0% Contract/Purchased Services 68,554 82,400 96,021 95,271 98,771 16, % Minor Capital Computers, Printers & Copiers 2,000 1,490 1,800 NA Minor Capital Outlay 2,000 1,490 1,800 NA Interdepartmental Charges/ Reimbursable Credits Interdepartmental Insurance 525 1,200 1, (250) 20.8% Interdepartmental Charges 525 1,200 1, (250) 20.8% Total Expenditures by Type 151, , , , ,821 17, % D - 3

61 Mayor and Council Operations NARRATIVE Regular Salaries and Wages: $73,170 This account provides for the compensation paid to the Mayor and City Councilmembers for attending Council meetings. It includes compensation for the Mayor in the amount of $330 per regular meeting and $ per special meeting. It also includes compensation for the Councilmembers in the amount of $300 per regular meeting and $150 per special meeting. Twelve special meetings have been budgeted Payroll Taxes: $5,600 This account provides for employer contributions to Social Security and Medicare and other similar payroll taxes Pension: $1,980 This account provides for employer contributions to retirement plans Insurance Workers Compensation: $340 This account provides for employer contributions to workers compensation Allowances Expense: $11,160 This account provides for taxable allowances for the Mayor and Councilmembers Office Supplies: $1,000 This account provides for the cost of expendable supply items used by the City Clerk s office in support of the Mayor and Council Postage: $50 This account provides for the cost of postal related services such as postage and mailing materials Travel Business: $8,000 This account provides for expenditures for transportation, lodging, meals, per diems and other incidental expenses associated with the travel of the Mayor and City Councilmembers for business meetings Advertising and Public Announcements: $750 This account provides for expenditures for public services announcements and community issues Community Promotion: $25,500 This account provides for expenditures for promotion of community activities and programs and the annual fireworks display Assn. Membership Dues & Fees: $14,221 This account provides for expenditures for membership in the Alaska Municipal League, Alaska Conference of Mayors, Southeast Conference and the Alaska Miners Association Software Maintenance Services: $6,500 This account provides for the cost of the Granicus software that is used to stream City Council meetings live and post meeting video storage Machinery & Equipment Maintenance Services: $800 This account provides for services for routine and non routine maintenance associated with equipment located on the 3rd and 4th floor Management & Consulting Services: $42,000 This account provides for expenditures for engaging a state lobbyist to represent General Government and Ketchikan Public Utilities for the legislative year Telecommunications: $1,000 This account provides for expenditures for the Mayor and City Council s monthly telephone charges, long distance services, line rentals and maintenance of the telephone systems Computers, Printers and Copiers: $1,800 This account provides for the replacement of three Councilmember ipads Interdepartmental Charges Insurance: $950 This account provides for expenditures for risk management services. D - 4

62 Mayor and Council Community Grant Program The Community Grant Program was established to provide financial support to community based non profit humanitarian agencies. The level of funding has traditionally been determined annually and is based on a percentage of the City s annual sales tax revenues. Prior to 2016, the City Council determined that funding would be budgeted at 3.24 percent of annual sales tax revenue for the year ending September 30th. For the year 2017, staff is recommending that the amount of community agency funding be restored to its annually adjusted amount had it not been capped in Prior to the freeze, the City of Ketchikan provided fifty percent of the annual funding with Ketchikan Public Utilities providing the remaining fifty percent. The City s contribution has traditionally come from the General Fund and its two sales tax funds. Funding proposed for 2017 follows the City Council authorized formula adjusted for KPU s contribution comes from the KPU Enterprise Fund. Applications for funding are reviewed by the Community Grant Committee and are awarded in February. PROGRAM SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Contract/Purchased Services 366, , , , ,407 19, % Total Expenditures 366, , , , ,407 19, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund 191, , , ,973 69,184 (116,789) 62.8% Hospital Sales Tax Fund 48,750 48,750 48,750 48,750 45,632 (3,118) 6.4% Public Works Sales Tax Fund 73,125 73,125 73,125 73,125 69,184 (3,941) 5.4% KPU Enterprise Fund 52,560 52,560 52,560 52, , , % Community Grant Fund 12,407 12,407 NA Total Funding 366, , , , ,407 19, % 2017 Expenditures by Type Contract/Purchased Services 100.0% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. D - 5

63 Mayor and Council Community Grant Program Changes in the amount of $19,999 reflected in this cost center are the result of the impact of actual earned sales tax revenues. PROGRAM OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Contract/Purchased Services Community Agency Grants 366, , , , ,407 19, % Contract/Purchased Services 366, , , , ,407 19, % Total Expenditures by Type 366, , , , ,407 19, % NARRATIVE Community Agency Grants: $380,407 This account provides for expenditures for the Mayor and City Council's Community Agency Grant Program. D - 6

64 City Attorney Summary The City Attorney provides certain legal services to the City Council, General Government and Ketchikan Public Utilities; provides legal representation to General Government and Ketchikan Public Utilities on matters where legal representation is not otherwise provided; drafts contracts, ordinances and other legal documents for the General Government and Ketchikan Public Utilities; and interprets, applies and prosecutes the ordinances and policies of the General Government and Ketchikan Public Utilities. This office does not provide legal services or advice to private individuals. The City Attorney's Office is comprised of one operating division. DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Operations 334, , , , ,437 18, % Total 334, , , , ,437 18, % Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 111,462 78,636 93,136 88,870 98,025 19, % Supplies 18,058 28,800 28,800 28,800 28, % Contract/Purchased Services 203, , , , ,402 (1,000) 0.4% Minor Capital Outlay 1,359 5,500 5,500 5,500 5, % Interdept'l Charges (190) 21.1% Total 334, , , , ,437 18, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund 136, , , , ,404 6, % Solid Waste Services Fund 10,922 11,180 11,685 11,667 11, % Wastewater Fund 8,309 8,510 8,890 8,877 8, % Harbor Fund 5,949 6,090 6,364 6,355 6, % Port Fund 9,033 9,250 9,664 9,650 9, % KPU Enterprise Fund 163, , , , ,027 9, % Total 334, , , , ,437 18, % Adopted/2017 Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Operations , % Total , % E - 1

65 City Attorney Operations MISSION STATEMENT It is the mission of the Law Department to: Provide advice on legal matters to the City Council and all of the departments of General Government and Ketchikan Public Utilities; Provide legal representation to General Government and Ketchikan Public Utilities on legal matters when representation is not otherwise provided; Interpret, apply and prosecute the ordinances and policies of General Government and Ketchikan Public Utilities; and Draft contracts, ordinances and other legal documents for General Government and Ketchikan Public Utilities. City Attorney Paralegal GOALS FOR 2017 The Law Department is perhaps unique in that it has less control over its direction and goals than other departments. Unlike policy making departments or the departments providing direct services to the public, the Law Department finds itself most often in the role of supporting and achieving the goals set by other departments. For these reasons the primary goal of the Law Department is to effectively advance the goals and objectives of the City Council, the managers and the various departments. General goals for 2016 include the following: Maintain accessibility to City Officers, Councilmembers and employees; and Continue to update and streamline office procedures. E - 2

66 City Attorney Operations ACCOMPLISHMENTS FOR 2016 Devoted substantial efforts towards reimbursement of the costs associated with the demolition of the building located at 420/422 Water Street; Devoted extensive research and effort concerning legalization of marijuana and the rules, regulations and taxation associated with commercial production and sale of marijuana; Devoted substantial efforts concerning various personnel and labor grievances and arbitrations; and Other accomplishments which have been set forth in periodic reports to the City Council. DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 111,462 78,636 93,136 88,870 98,025 19, % Supplies 18,058 28,800 28,800 28,800 28, % Contract/Purchased Services 203, , , , ,402 (1,000) 0.4% Minor Capital Outlay 1,359 5,500 5,500 5,500 5, % Interdepartmental Charges (190) 21.1% Total Expenditures 334, , , , ,437 18, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund 136, , , , ,404 6, % Solid Waste Fund 10,922 11,180 11,685 11,667 11, % Wastewater Fund 8,309 8,510 8,890 8,877 8, % Harbor Fund 5,949 6,090 6,364 6,355 6, % Port Fund 9,033 9,250 9,664 9,650 9, % KPU Enterprise Fund 163, , , , ,027 1, % Total Funding 334, , , , ,437 18, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Paralegal , % Legal Secretary (1.00) 100.0% Total , % E - 3

67 City Attorney Operations % 0.19% 2017 Expenditures by Type 26.82% 7.88% Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges 63.60% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $19,389, or by 24.7%, due to annual employee step increases and reclassification of the legal secretary to paralegal; a 2.0% cost of living adjustment for non represented employees that will become effective January 1, 2017; increased employee health insurance co pays for non represented employees that became effective July 1, 2016; and to reflect the change in employee health insurance coverage. DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 57,239 48,326 48,326 47,800 51,845 3, % Temporary Wages 1,149 6,500 6,500 4,230 6, % Payroll Taxes 6,015 4,170 4,170 3,620 4, % Pension 13,500 10,600 10,600 10,490 11, % Health and Life Insurance 26,333 7,300 21,800 21,020 21,920 14, % Workers Compensation (40) 12.9% Other Benefits 6,874 1,430 1,430 1,430 1, % Personnel Services and Benefits 111,462 78,636 93,136 88,870 98,025 19, % Supplies Office Supplies 1,907 2,700 2,700 2,700 2, % Small Tools and Equipment % Postage % Professional and Trade Publications 15,962 25,000 25,000 25,000 25, % Supplies 18,058 28,800 28,800 28,800 28, % E - 4

68 City Attorney Operations Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Contract/Purchased Services Travel Business 2,000 2,000 2,000 2, % Travel Training 1,000 1,000 1,000 1, % Travel Training and Education 1,000 2,000 2,000 1,000 1,000 (1,000) 50.0% Ads & Public Announcements 217 2,000 2,000 2,000 2, % Professional and Technical Licenses % Service Charges and Fees 642 3,700 3,700 3,700 3, % Machinery & Equipment Maint Services % Legal and Accounting Services 199, , , , , % Management & Consulting Services NA Telecommunications 1,229 2,000 2,000 2,000 2, % Electric, Water, Sewer & Solid Waste % Contract/Purchased Services 203, , , , ,402 (1,000) 0.4% Minor Capital Furniture and Fixtures 260 1,000 1,000 1,000 1, % Machinery & Equipment % Computers, Printers and Copiers 1,099 3,500 3,500 3,500 3, % Software % Minor Capital Outlay 1,359 5,500 5,500 5,500 5, % Interdepartmental Charges Insurance Premiums and Claims (190) 21.1% Interdepartmental Charges (190) 21.1% Total Expenditures by Type 334, , , , ,437 18, % NARRATIVE Regular Salaries and Wages: $51,845 This account provides for the cost of the annual salary paid to the Law Department s Paralegal Temporary Wages: $6,500 This account provides for compensation paid for temporary personnel services for those occasions when the Paralegal or LegalSecretaryisabsent Payroll Taxes: $4,470 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $11,410 This account provides for employer contributions to retirement plans Health and Life Insurance: $21,920 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $270 This account provides for employer contributions toworkers compensation Other Benefits: $1,610 This account provides for expenditures for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Office Supplies: $2,700 This account provides for paper, pens, pencils, adding machine ribbons and tape, note pads, file folders, scotch tape, toner, ink cartridges, photocopy charges, small desk accessories and minor office equipment such as adding machines, staplers, comb binding machines and tape dispensers. E - 5

69 City Attorney Operations Small Tools and Equipment: $300 This account provides for minor tools and operating and office equipment with a value of less than $1,000. Included are computer accessories, space heaters, calculators, file cabinets and similar types of minor tools and equipment Postage: $800 This account provides for postal related services such as postage, express delivery and mailing materials Professional and Technical Publications: $25,000 This account provides for subscription costs to professional and technical publications. Included are electronic subscription services for legal research (BNA Labor and Employment Law Resource Center, Westlaw Database) as well as subscriptions to maintain the Law Department s library; i.e., Alaska Statutes, Alaska Digest, Alaska Administrative Code and Pacific Reporter. The total costs of the BNA Labor and Employment Law Resource Center is to be split between the Law Department and the Human Resources Division Travel Business: $2,000 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for business or litigation Travel Training: $1,000 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training Travel Training and Education: $1,000 This account provides for registration fees, training fees, training materials, tuition reimbursements and other incidental expenses associated with training and educating employees; and onpremises training programs provided by staff or third parties Ads and Public Announcements: $2,000 This account provides for advertising and announcements in publications, newspapers, trade journals, Internet or broadcasts over radio and television. Included are legal notices and recruiting Professional and Technical Licenses: $100 This account provides for licensing professional, technical and other employees requiring a license in order to perform their duties. Included are fees paid for the Paralegal s Notary Public Commission Service Charges and Fees: $3,700 This account provides for payment of fees and services provided by the state and local process servers. Included are filing fees paid to the state for opening civil cases, fees paid to Department of Motor Vehicles for re titling of vehicles taken through the DWI forfeiture process, recording of documents and fees charged by local process servers Machinery and Equipment Maintenance Services: $700 This account provides for the repair and maintenance of office equipment, machinery and other operating equipment owned or leased by the Law Department. This account includes labor and materials required to provide the service to the Law Department s facsimile and color copier Legal and Accounting Services: $219,802 This account provides for legal services. Included are contract attorney services, public defender services, specialized legal services for complex issues that cannot be addressed by the Law Department and other legal services Telecommunications: $2,000 This account provides for telecommunication services. Included are charges for wired and wireless telecommunications services, Internet, long distance and toll free numbers Electric, Water, Sewer & Solid Waste: $100 This account provides for solid waste utility services associated with incineration of Law Department files that are no longer retained according to the retention schedule Furniture and Fixtures: $1,000 This account provides for acquisition of furniture and fixtures. Included are desks, chairs, tables, workstations, file cabinets and storage cabinets. E - 6

70 City Attorney Operations Machinery and Equipment: $500 This account provides for the acquisition of machinery and equipment usually composed of a complex combination of parts. Included are office and operating equipment required to provide services or maintain capital assets Computers, Printers and Copiers: $3,500 This account provides for the computers, printers and copiers that may be required to be replaced during the course of the year Software: $500 This account provides for acquisition of software systems and upgrades not covered by maintenance agreements Interdepartmental Charges Insurance: $710 This account provides for risk management services and claims. E - 7

71 City Clerk Summary The City Clerk s Office makes every effort to provide quality administrative support to the City s elected officials and staff, and to serve the public by providing a liaison between the community and government through the dissemination of information. The City Clerk is appointed by the Mayor and City Council. The City Clerk s Office is comprised of one operating division. DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Operations 260, , , , ,407 29, % Total 260, , , , ,407 29, % Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 223, , , , ,427 15, % Supplies 2,692 6,870 3,920 3,920 6, % Contract/Purchased Services 31,554 47,200 48,200 48,200 63,350 16, % Minor Capital Outlay 2,500 2,000 2,050 2,000 (2,000) 100.0% Interdept'l Charges 910 2,100 2,100 1,140 1,760 (340) 16.2% Total 260, , , , ,407 29, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund 96, , , , ,597 11, % Solid Waste Services Fund 9,048 10,060 10,090 10,050 11,080 1, % Wastewater Fund 6,884 7,650 7,680 7,650 8, % Harbor Fund 4,928 5,480 5,500 5,470 6, % Port Fund 7,484 8,320 8,350 8,310 9, % KPU Enterprise Fund 135, , , , ,090 15, % Total 260, , , , ,407 29, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Operations , % Total , % F - 1

72 City Clerk Operations MISSION STATEMENT The mission of the City Clerk s Office is to provide quality services and staff support efficiently and effectively to the public at large, to the City Council and to the City and KPU staff. Additionally, the City Clerk s Office oversees municipal elections and other such elections as may be required by law or ordinance. The City Clerk serves as the clerical officer to the City Council. The City Clerk s Office records the minutes of all proceedings of the City Council and maintains resolutions and ordinances as may be adopted. The City Clerk is the custodian of such documents, records and archives as may be provided by law or ordinance. City Clerk Deputy City Clerk GOALS FOR 2017 Maintain the same level of service to the City Council, staff and citizens of Ketchikan. Continue to operate the City Clerk s Office in a manner that reflects positively on the City of Ketchikan. Complete the inventory and, as appropriate, destruction of many departments records that are stored at the Public Works building. Continue an effort toward as much transparency as possible in order to engage the public in many aspects of Council and City operations. ACCOMPLISHMENTS FOR 2016 Conducted a regular election on October 4, Two councilmembers were elected for a three year term each. Continued training on the City wide records program with multiple departments and divisions. As part of the City wide records program, began an extensive inventory and, as appropriate, destruction of many departments records that are stored at the Public Works building. Provided extensive assistance to the State of Alaska in running its primary and general elections. DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 223, , , , ,427 15, % Supplies 2,692 6,870 3,920 3,920 6, % Contract/Purchased Services 31,554 47,200 48,200 48,200 63,350 16, % Minor Capital Outlay 2,500 2,000 2,050 2,000 (2,000) 100.0% Interdepartmental Charges 910 2,100 2,100 1,140 1,760 (340) 16.2% Total Expenditures 260, , , , ,407 29, % F - 2

73 City Clerk Operations Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund 96, , , , ,597 11, % Solid Waste Fund 9,048 10,060 10,090 10,050 11,080 1, % Wastewater Fund 6,884 7,650 7,680 7,650 8, % Harbor Fund 4,928 5,480 5,500 5,470 6, % Port Fund 7,484 8,320 8,350 8,310 9, % KPU Enterprise Fund 135, , , , ,090 14, % Total Funding 260, , , , ,407 29, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Clerk , % Deputy Clerk , % Total , % 2017 Expenditures by Type 19.83% 0.55% 2.15% Personnel Services and Benefits Supplies Contract/Purchased Services Interdepartmental Charges 77.47% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $15,792, or by 6.8%, due to annual employee step increases; a 2.0% cost of living adjustment for non represented employees that will become effective January 1, 2017; increased employee health insurance co pays for non represented employees that became effective July 1, 2016 and paid leave benefits for employees that are eligible for retirement. Rents and Leases Machinery & Equipment (Account ) increased by $15,000 because of the need to lease voting equipment for the local municipal election. Telecommunications increased by $500 due to the need to purchase new phones for the City Clerk's Office relative to the Telecommunications Division changing from the old feature switch to a new one that was installed last year. City Hall is scheduled to be upgraded to the new switch during 2016/2017. F - 3

74 City Clerk Operations DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 127, , , , ,957 5, % Overtime Wages 1,139 1,500 1,500 1,500 1, % Temporary Wages 2,137 2,900 1,900 1,900 2, % Payroll Taxes 9,643 10,390 10,220 10,220 10, % Pension 30,396 29,190 29,660 29,640 30,470 1, % Health and Life Insurance 50,448 51,000 50,700 50,700 52,190 1, % Workers Compensation (80) 11.0% Other Benefits 1,017 3,710 3,710 3,710 11,190 7, % Allowances Expense % Personnel Services and Benefits 223, , , , ,427 15, % Supplies Office Supplies 2,510 4,000 2,600 2,600 4, % Operating Supplies 27 2, , % Postage % Periodicals % Supplies 2,692 6,870 3,920 3,920 6, % Contract/Purchased Services Travel Training 5,193 6,500 6,500 6,500 6, % Travel Training and Education 1,985 2,400 2,400 2,400 2, % Advertising & Public Announcements 10,276 13,000 13,000 13,000 13, % Printing and Binding 2,085 2,100 2,100 2,100 2, % Professional and Technical Licenses New Assn. Membership Dues & Fees % Government Contractual Services 1,345 1,750 1,750 1,750 1, % Software Maintenance Services 2,194 9,100 10,350 10,350 9, % Machinery & Equipment Maint Services % Technical Services 6,289 9,300 8,050 8,050 9, % Rents and Leases Machinery & Equipment 15,000 15,000 New Telecommunications 1,497 1,500 2,500 2,500 2, % Electric, Water, Sewer & Solid Waste % Contract/Purchased Services 31,554 47,200 48,200 48,200 63,350 16, % Minor Capital Machinery & Equipment 2, NA Computers, Printers & Copiers 2,000 2,000 2,000 (2,000) 100.0% Minor Capital Outlay 2,500 2,000 2,050 2,000 (2,000) 100.0% Interdepartmental Charges Insurance Premiums and Claims 910 2,100 2,100 1,140 1,760 (340) 16.2% Interdepartmental Charges 910 2,100 2,100 1,140 1,760 (340) 16.2% Total Expenditures by Type 260, , , , ,407 29, % F - 4

75 City Clerk Operations NARRATIVE Regular Salaries and Wages: $136,957 This account provides for compensation paid to all regular salaried and hourly employees of the City Clerk s Office Overtime Wages: $1,500 This account provides for compensation paid to the Deputy Clerk for hours worked in excess of a regular working cycle Temporary Wages: $2,900 This account provides for compensation paid for fill in assistance when the City Clerk and Deputy Clerk are out of the office Payroll Taxes: $10,820 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $30,470 This account provides for employer contributions to retirement plans Health and Life Insurance: $52,190 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $650 This account provides for employer contributions to workers compensation Other Benefits: $11,190 This account provides for expenditures for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Allowances Expense: $750 This account provides for the cost of the $25 per meeting vehicle expense stipend granted to the City Clerk for attending City Council meetings as well as other incidental expenses Office Supplies: $4,000 This account provides for paper, pens, pencils, adding machine ribbons and tape, note pads, file folders, scotch tape, toner, toner cartridges, photocopy charges, small desk accessories and minor office equipment such as adding machines, staplers, comb binding machines, and tape dispensers Operating Supplies: $2,400 This account provides for minutes, resolution and ordinance books; specialized supplies for archival records and election supplies Postage: $300 This account provides for postal related services such as postage, express delivery, and mailing materials for the City Clerk s Office, including elections Periodicals: $170 This account provides for a subscription to the Ketchikan Daily News Travel Training: $6,500 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training. Both the City Clerk and Deputy City Clerk attend the International Institute of Municipal Clerks Annual Conference as well as the Alaska Association of Municipal Clerks Annual Conference Training and Education: $2,400 This account provides for registration fees for both the City Clerk and Deputy City Clerk to attend the International Institute of Municipal Clerks Annual Conference as well as the Alaska Association of Municipal Clerks Annual Conference Advertising and Public Announcements: $13,000 This account provides for advertising and announcements primarily in the local newspaper. Included are legal notices, election notices, agenda advertisements, special meeting announcements, etc. F - 5

76 City Clerk Operations Printing and Binding: $2,200 This account provides for job printing and binding services. Included is the printing of election ballots Professional and Technical Licenses: $550 This account provides for the fees incurred in obtaining certification as a Master Municipal Clerk and in renewing a notary bond Assn. Membership Dues & Fees: $750 This account provides for memberships for the City Clerk and Deputy Clerk in both the International Institute of Municipal Clerks and the Alaska Association of Municipal Clerks Governmental Contractual Services: $1,750 This account provides for the reimbursement paid to the Ketchikan Gateway Borough for compensation paid to election workers Software Maintenance Services: $9,100 This account provides for maintenance agreements to support specific software the City Clerk s Office uses as well as the maintenance agreement for the color scanner in the Clerk s Office Machinery & Equipment Maintenance Services: $500 This account provides for services for the repair and maintenance of office equipment such as transcribers and recorders Technical Services: $9,300 This account provides for programming of the memory cards for elections as well as codification updates to the Ketchikan Municipal Code Rents and Leases Machinery & Equipment: $15,000 This account provides for lease of voting equipment needed for the local municipal election Telecommunications: $2,000 This account provides for telecommunication services. Included are charges for wired and wireless telecommunications services, long distance, and the ipad 4G network Electric, Water, Sewer & Solid Waste: $300 This account provides primarily for the disposal of records of the City Clerk s Office that have reached the end of retention life Interdepartmental Charges Insurance: $1,760 This account provides for risk management services and claims. F - 6

77 City Manager Summary The City Manager serves as the chief executive of the City of Ketchikan municipal government. The office oversees the daily operation of eleven (11) separate departments and numerous operating divisions that have a combined budget in excess of $63.1 million annually. City Manager Civic Center 3 FTEs Finance 16 FTEs Fire 19 FTEs Information Technology 6 FTEs Library FTEs Museum 8.2 FTEs Police 35.3 FTEs Port & Harbors 10 FTEs Public Works 50.5 FTEs The City Manager's Office is comprised of two operating divisions and oversees one Capital Improvement Program. DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Operations 280, , , , ,610 11, % Human Resources 335, , , , ,812 25, % Total 615, , , , ,422 37, % Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 552, , , , ,282 18, % Supplies 23,423 32,465 33,240 31,375 31,965 (500) 1.5% Contract/Purchased Services 37,861 96,665 90,615 84, ,175 20, % Minor Capital Outlay 3,851 1,000 4,700 3,700 1, % Interdept'l Charges/Reimbursable Credits (2,507) (2,000) (2,000) (4,780) (3,000) (1,000) 50.0% Total 615, , , , ,422 37, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund 417, , , , ,392 23, % Solid Waste Fund 21,354 24,257 24,427 23,698 25,550 1, % Wastewater Fund 16,247 18,455 18,584 18,029 19, % Harbor Fund 11,631 13,212 13,304 12,907 13, % Port Fund 17,662 20,063 20,203 19,600 21,140 1, % KPU Enterprise Fund 130, , , , ,970 10, % Total 615, , , , ,422 37, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Operations , % Human Resources , % Total , % G - 1

78 City Manager Operations Division MISSION STATEMENT The mission of the City of Ketchikan government is to provide quality municipal services as efficiently and effectively as possible within guidelines established by federal and state law; the Charter of the City of Ketchikan; the Ketchikan Municipal Code; and the citizens of Ketchikan as represented by the City Council. The City Manager s Office exercises line authority over all municipal departments with combined operating and capital improvement budgets in support of daily service delivery and furtherance of long range goals. The City Manager s Office ensures implementation, supervision and evaluation of all municipal activities, programs and facilities. This includes the normal range of programs and projects associated with all City departments and special projects and/or tasks that do not fall within the scope of the City s traditional departmental structure. The mission of this office is to ensure that these responsibilities and duties are carried out in a timely and efficient manner that reflects positively on the City of Ketchikan. City Manager Assistant City Manager Executive Assistant GOALS FOR 2017 Provide timely information and recommendations to the City Council. Follow through on direction provided by the City Council as the result of business conducted at regular meetings of the City Council or through enactment of policies provided for in the 2017 General Government Operating and Capital Budget. Continue management oversight of Ketchikan Public Utilities. Coordinate and improve citizen participation and public information efforts. Coordinate and improve employee outreach and recognition programs. Strengthen employee focus on customer service and improvement of all municipal programs and services. Encourage team building among staff. Work with the department heads, in order to move forward with City Council approved Capital Improvement Programs. Work with the Alaska Department of Transportation, in order to ensure that the construction of the replacement Water Street Trestle No. 2 meets the needs of the adjacent residents and community at large. Work with NAC Architecture, DOWL and Layton Dawson Joint Venture Constructors, in order to complete Phase II of the Ketchikan Medical Center Expansion Project. Resolve any outstanding issues associated with Phase I. Complete the transfer of the buildings and grounds of the former Gateway Center for Human Services to Akeela, Inc. G - 2

79 City Manager Operations Division Work with the Port & Harbors Director, the cruise ship industry and Moffatt & Nichol, in order to develop a capital improvement and financing plan to accommodate the next class of cruiseship vesselsentering the Alaska market. Work with the City s legislative lobbyist, in order to ensure the continued distribution of state Commercial Passenger Vessel (CPV) tax revenues to the City of Ketchikan. Prepare the draft 2018 General Government Annual Budget. Evaluate traditional service delivery in light of continued reductions in state programs and/or direct assistance to municipalities. If offers of employment have not been accepted by the end of the year, continue recruitment efforts to fill the vacant positions of Library Director and Museum Director. Work with the Human Resources Division and Victor Four Labor Relations to begin the process of negotiating new collective bargaining agreements for those contracts that expire December 31, Continue working with the Engineering Division, the Fire Department and the City Attorney s Office to address abandoned and/or blighted buildings within City limits. ACCOMPLISHMENTS FOR 2016 Continued management and oversight responsibility of Ketchikan Public Utilities. Submitted the draft 2016 General Government Operating and Capital Budget to the City Council. Worked closely with state lobbyist Ray Matiashowski and representatives of the Alaska Department of Transportation and Public Facilities, in order to secure the necessary funding for the replacement of Water Street Trestle No. 2 at no cost to City taxpayers. Worked closely with state lobbyist Ray Matiashowski, in order to secure continued state CPV funding for Worked with NAC Architecture, DOWL and Layton Dawson Joint Venture Constructors, in order to complete Phase I of the Ketchikan Medical Center Expansion Project. Worked with the Engineering Division and Museum Department staff to award a contract to Dawson Construction LLC for the Centennial Building Restroom and Gallery Expansion Project. Worked with the Port & Harbors Director, in order to complete timely repairs to Berth III after it had been struck by the Celebrity cruise ship Infinity. It is anticipated that insurance will cover the cost of repairs and lost Port revenues. Worked with the Human Resources Division and Victor Four Labor Relations to successfully negotiate a new collective bargaining agreement with the Public Safety Employees Association. Continued to participate as staff to the Ketchikan Gateway Borough/City of Ketchikan Cooperative Relations, Lobbying Executive and Legislative Liaison Committees. G - 3

80 City Manager Operations Division DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr (Decr) % Personnel Services and Benefits 263, , , , ,140 12, % Supplies 7,180 11,625 11,625 10,625 11,125 (500) 4.3% Contract/Purchased Services 12,271 20,445 18,745 17,595 20,095 (350) 1.7% Minor Capital Outlay 1,488 1,000 1, , % Interdept' Charges/Reimbursable Credits (3,946) (5,300) (5,300) (6,550) (5,750) (450) 8.5% Total 280, , , , ,610 11, % Funding Source Actual Adopted Amended Estimate Budget Incr (Decr) % General Fund 249, , , , ,930 10, % Solid Waste Fund 9,718 10,035 10,035 9,803 10, % Wastewater Fund 7,393 7,635 7,635 7,459 7, % Harbor Fund 5,293 5,466 5,466 5,340 5, % Port Fund 8,037 8,300 8,300 8,108 8, % Total 280, , , , ,610 11, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr (Decr) % City Manager , % Assistant City Manager , % Executive Assistant , % Total , % 2017 Expenditures by Type 3.6% 6.6% 0.3% Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay 89.5% G - 4

81 City Manager Operations Division OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $12,720, or by 4.9%, due to annual employee step increases; a 2.0% cost of living adjustment for the City Manager and non represented employees that will become effective January 1, 2017; increased employee health insurance co pays for non represented employees that became effective July 1, 2016, and a $4,419 increase to the City Manager's salary. DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr (Decr) % Personnel Services and Benefits Regular Salaries and Wages 165, , , , ,720 8, % Overtime Wages 270 1,000 1, , % Temporary Wages 677 2,000 2,000 1,800 2, % Payroll Taxes 11,150 13,350 13,350 13,260 13, % Pension 39,289 37,800 37,960 37,960 39,760 1, % Insurance Benefits Health/Life 28,832 30,500 30,500 29,040 31, % Insurance Benefits Workers Comp (80) 8.7% Other Benefits 16,541 4,620 4,620 4,620 5, % Allowances Add'l Life Benefit % Personnel Services and Benefits 263, , , , ,140 12, % Supplies Office Supplies 6,275 9,500 9,500 8,500 9,000 (500) 5.3% Vehicle Maintenance Materials % Postage % Vehicle Motor Fuel & Lubricants % Business and Meal Expenses 397 1,000 1,000 1,000 1, % Supplies 7,180 11,625 11,625 10,625 11,125 (500) 4.3% Contract/Purchased Services Travel Business 2,983 6,875 5,175 5,175 6, % Advertising and Public Announcements % Assn. Membership Dues & Fees 3,586 3,325 3,325 3,325 3, % Bank & Merchant Fees 45 NA Service Charges and Fees 34 NA Machinery & Equip Maint Services 2,262 6,650 6,650 5,500 5,500 (1,150) 17.3% Telecommunications 3,361 3,200 3,200 3,200 3, % Electric, Water, Sewer & Solid Waste % Contract/Purchased Services 12,271 20,445 18,745 17,595 20,095 (350) 1.7% Minor Capital Furniture and Fixtures 787 1,000 1,000 1, % Computers, Printers & Copiers NA Minor Capital Outlay 1,488 1,000 1, , % G - 5

82 City Manager Operations Division Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr (Decr) % Interdepartmental Charges/ Reimbursable Credits Interdepartmental Insurance 1,190 2,700 2,700 1,450 2,250 (450) 16.7% Reimbursable Credits (5,136) (8,000) (8,000) (8,000) (8,000) 0.0% Interdepartmental Charges (3,946) (5,300) (5,300) (6,550) (5,750) (450) 8.5% Total Expenditures by Type 280, , , , ,610 11, % NARRATIVE Regular Salaries and Wages: $179,720 This account provides for the cost of the annual salaries paid to the employees of the City Manager s Office Overtime Wages: $1,000 This account provides for the compensation paid to the Executive Assistant for hours worked in excess of a regular working cycle. These excess hours typically occur during budget and legislative preparation periods Temporary Wages: $2,000 This account provides for the compensation paid for temporary secretarial/clerical help for those occasions when the Executive Assistant is on leave or for additional hours worked when workloads are unusually heavy Payroll Taxes: $13,980 This account provides for employer contributions to Social Security and Medicare and other similar payroll taxes Pension: $39,760 This account provides for employer contributions to retirement plans Insurance Benefits Health: $31,080 This account provides for employer contributions to employee health and life insurance plans Insurance Benefits Workers Compensation: $840 This account provides for employer contributions to workers compensation Other Benefits: $5,460 This account provides for expenditures for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Allowances Add'l Life Benefit: $300 This account provides for the reimbursement of life insurance premiums paid by the City Manager Office Supplies: $9,000 This account provides for expendable office supply items such as pens, markers, paper, tape, paperclips, staples, envelopes, notepads, correction tape, post its, etc. It also provides funds to supply all departments housed at City Hall with their copy paper needs Vehicle Maintenance Materials: $300 This account provides for the cost associated with the materials to maintain the department s vehicle Postage: $200 This account provides for the cost of postal related services such as postage and mailing materials Vehicle Motor Fuel and Lubricants: $625 This account provides for expenditures that involve the purchase of gasoline and other lubricants used for the operations of the division s vehicle. G - 6

83 City Manager Operations Division Business and Meal Expenses: $1,000 This account provides forgeneral expenses incurred by the City Manager s staff during thecourseoftheyear Travel Business: $6,875 This account provides for the cost associated with business travel by the City Manager and office staff Advertising and Public Announcements: $300 This account provides for public notice and classified advertising expenses. Expenses include City Hall holiday closure notices, parking advisories, community agency funding ads, and low speedvehicle postings Assn. Membership Dues & Fees: $3,625 This account provides for the cost of membership in the International City/County Management Association and the Alaska Municipal League Machinery & Equipment Maintenance Services: $5,500 This account provides for services for routine and non routine maintenance associated with equipment located in the 3 rd and 4 th floor copier rooms Telecommunications: $3,700 This account provides for monthly charges, long distance services, long distance facsimile transmission, line rentals and maintenance of the phone system in the City Manager s Office Electric, Water, Sewer & Solid Waste: $95 This account provides for the cost associated with the destruction of records from the City Manager s Office that have reached the end of their retention life Furniture and Fixtures: $1,000 This account provides for the cost of office equipment and furniture Interdepartmental Charges Insurance: $2,250 This account provides for the cost for risk management services Reimbursable Credits: ($8,000) This account provides for reimbursements from other departments for their share of the cost of operating the large volume copiers at City Hall, including copy paper. G - 7

84 City Manager Human Resources Division MISSION STATEMENT The mission of the Human Resources Division is to assist management staff and employees of both General Government and Ketchikan Public Utilities, in order to attract and retain a work force that can provide efficient and cost effective services to the community. The division provides centralized personnel and employment services to all City and KPU departments including, but not limited to: employee recruitment and selection; establishing and maintaining job descriptions; updating the employee performance evaluation system and notifying supervisors when evaluations are due; administering the compensation plan; developing and administering personnel policies and procedures; ensuring compliance with state and federal labor, safety and health laws; assisting managers in eliminating time losses from accidents; maintaining employee records; assisting managers with grievance resolution and disciplinary actions; serving as a member of the City and KPU's collective bargaining teams; ensuring that the City and KPU have well trained work forces; and managing employee recognition programs. City Manager Human Resources Manager Administrative Assistant Safety Coordinator GOALS FOR 2017 Continue to update and maintain all City/KPU policies and procedures. Assist the City Manager s Office and Victor Four Labor Relations in negotiating successor collective bargaining agreements with the International Brotherhood of Electrical Workers representing the Ketchikan Public Utilities and Public Works and Clerical employees. Continue to enhance and streamline HumanResources Divisionsystems, processes, records and work environment. Continue Matrix Consulting recommendations as necessary in all Human Resources Division areas. Continue restructuring of retention files and move storage room into closer proximity to the Human Resources Division Office. Continue 3 5 year rotational review of all City/KPU job descriptions and revise as necessary. Collaborate with departments/divisions to provide education and training on issues related to Human Resources, Workers Compensation, FMLA and Payroll. Develop a plan to identify progression opportunities for all City/KPU employees. Continue to promote the City of Ketchikan as a great place to work and live. Implement new supervisory development program designedfor newly promoted supervisors and/or current supervisors. G - 8

85 City Manager Human Resources Division Continue to maintain the average return of seven (7) days on background check completions. Implement employee identification badges for all KPU and City of Ketchikan employees. Complete the recruitment efforts for the Museum Director. Complete the recruitment efforts for the Library Director. ACCOMPLISHMENTS FOR 2016 Assistedvarious departments anddivisions withpositionrecruitmentconsisting of twomanagement; thirty three non management; eighty nine temporary; nine promotions; and eight transfers. Recruitment efforts included advertising, conducting thorough background checks and orientation for all new employees. Assisted the City Manager s Office and Victor Four Labor Relations in negotiating a new successor collective bargaining agreement with the Public Safety Employees Association (PSEA) representing Police Officers and Dispatchers, and the International Brotherhood of Electrical Workers (IBEW) Local 1547, representing Ketchikan Public Utilities Employees. Conducted monthly audits on sick leave usage, FMLA usage and premium pay. Continued to revise and update Human Resources Division forms. Continued the Employee Service Award program. Continued to monitor the employee evaluation program. Continued support of the Horton Health Initiative for all City/KPU employees. Continued to conduct a portion of the background check process; Human Resources Division staff conducted the employer and/or reference check portion of the background check process. Attended the Seattle job fair and the local job fair. Continued OSHA required safety training for General Government and KPU employees. Successfully administered the City s random alcohol and drug testing program. Assisted the City Manager s Office in completing the recruitment for the position of Public Works Director. Mark Hilson of Enola, Pennsylvania was appointed to the position effective December 31, Assisted the Electric Division Manager in completing the recruitment for the position of Electric Systems Managing Engineer. Jeremy Bynum of Portland, Oregon was appointed to the position effective September 12, Assisted the Public Works Director in completing the recruitment for the position of Streets Division Supervisor. Nicholas Kepler of Sitka, Alaska was appointed to the position effective September 12, Assisted the Fire Chief in completing the recruitment for the position of Assistant Fire Chief. Scott Brainard of Keno, Oregon was appointed to the position effective November 30, Completed the recruitment for the position of Administrative Assistant for the Human Resources Division. Vanessa Booth of Ketchikan, Alaska was appointed to the position effective May 16, G - 9

86 City Manager Human Resources Division DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr (Decr) % Personnel Services and Benefits 289, , , , ,142 5, % Supplies 16,243 20,840 21,615 20,750 20, % Contract/Purchased Services 25,590 76,220 71,870 66,588 97,080 20, % Minor Capital Outlay 2,363 3,300 3,300 NA Interdept' Charges/Reimbursable Credits 1,439 3,300 3,300 1,770 2,750 (550) 16.7% Total Expenditures 335, , , , ,812 25, % Funding Source Actual Adopted Amended Estimate Budget Incr (Decr) % General Fund 168, , , , ,462 12, % Solid Waste Fund 11,637 14,222 14,392 13,894 15, % Wastewater Fund 8,853 10,821 10,949 10,571 11, % Harbor Fund 6,338 7,747 7,839 7,568 8, % Port Fund 9,625 11,763 11,903 11,492 12, % KPU Enterprise Fund 130, , , , ,970 8, % Total Funding 335, , , , ,812 25, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr (Decr) % Human Resources Manager , % Safety Coordinator , % Administrative Assistant , % Total , % 2017 Expenditures by Type 22.3% 0.6% Personnel Services and Benefits Supplies 4.8% Contract/Purchased Services 72.3% Interdept' Charges/Reimbursable Credits G - 10

87 City Manager Human Resources Division OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $5,633, or by 1.8%, due to annual employee step increases; a 2.0% cost of living adjustment for non represented employees that will become effective January 1, 2017; and increased employee health insurance co pays for non representedemployees that became effectivejuly 1, Technical Services (Account No ) decreased by $6,000, or by 20.0%, due to a decrease in employee participation in the Horton Health Initiative Program. Management and Consulting Services (Account No ) increased by $26,500, or by 353.3% due to the renewal of a professional services agreement with Victor Four Labor Relations for services associated with negotiating new collective bargaining agreements with the International Brotherhood of Electrical Works, Local 1547 both for General Government and Ketchikan Public Utilities. DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr (Decr) % Personnel Services and Benefits Regular Salaries and Wages 199, , , , ,402 (1,067) 0.5% Temporary Wages 1,846 4,000 4,000 4,000 2,500 (1,500) 37.5% Payroll Taxes 15,025 16,310 16,310 15,670 16,200 (110) 0.7% Pension 47,228 45,900 45,900 44,280 45,630 (270) 0.6% Insurance Benefits Health/Life 27,255 27,900 33,050 32,870 36,120 8, % Insurance Benefits Workers Comp 869 1,120 1,120 1, (140) 12.5% Other Benefits (1,682) 5,810 5,810 5,810 6, % Personnel Services and Benefits 289, , , , ,142 5, % Supplies Office Supplies 1,864 3,865 3,865 3,500 3, % Operating Supplies 10,134 12,000 12,775 12,500 12, % Safety Program Supplies 537 1,000 1,000 1,000 1, % Postage % Professional & Technical Publications 3,570 3,725 3,725 3,500 3, % Supplies 16,243 20,840 21,615 20,750 20, % Contract/Purchased Services Travel Training 6,000 6,000 6,000 6, % Training and Education ,000 11,000 11,000 11, % Ads & Public Announcements NA Assn. Membership Dues & Fees % Machinery & Equipment Maint Services 864 2,560 2,560 2,560 2, % Technical Services 6,335 30,000 29,000 24,000 24,000 (6,000) 20.0% Legal and Accounting Services 1,227 16,500 9,250 9,000 16, % Management and Consulting Services 14,384 7,500 10,600 10,600 34,000 26, % Telecommunications 2,094 1,820 1,820 1,820 2, % Electric, Water, Sewer & Solid Waste % Contract/Purchased Services 25,590 76,220 71,870 66,588 97,080 20, % G - 11

88 City Manager Human Resources Division Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr (Decr) % Minor Capital Furniture and Fixtures 1,264 NA Computers, Printers & Copiers 1,099 3,300 3,300 NA Minor Capital Outlay 2,363 3,300 3,300 NA Interdepartmental Charges Interdepartmental Charges Insurance 1,439 3,300 3,300 1,770 2,750 (550) 16.7% Interdepartmental Charges 1,439 3,300 3,300 1,770 2,750 (550) 16.7% Total Expenditures by Type 335, , , , ,812 25, % NARRATIVE Regular Salaries & Wages: $207,402 This account provides for the cost of the annual salaries paid to the employees of the Human Resources Division Temporary Wages: $2,500 This account provides for the compensation paid for temporary secretarial/clerical help for those occasions when the Administrative Assistant is on leave or for additional hours worked when workloads are unusually heavy Payroll Taxes: $16,200 This account provides for employer contributions to Social Security, Medicare and other similar payroll taxes Pension: $45,630 This account provides for employer contributions to retirement plans Insurance Benefits Health: $36,120 This account provides for employer contributions to employee health and life insurance plans Insurance Benefits Workers Compensation: $980 This account provides for employer contributions to workers compensation Other Benefits: $6,310 This account provides for expenditures for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Office Supplies: $3,865 This account provides for expendable office supply items such as pens, markers, paper, tape, paperclips, files, staples, envelopes, notepads, correction tape, post its,etc Operating Supplies: $12,000 This account provides for costs associated with service recognition pins and retirement watches awarded to employees; employee recognition gifts; new and updated State and Federal Labor Compliance poster kits; printing of forms such as PAF s; maintenance items for department printer; and supplies for the annual employee Christmas party Safety Program Supplies: $1,000 This account provides for the cost of supplies utilized to conduct ongoing safety programs for both General Government and Ketchikan Public Utilities Postage: $250 This account provides for the costs of postal related services such as postage and mailing materials Professional & Technical Publications: $3,725 This account provides for costs associated with subscriptions to the Alaska Labor & Employment Law, Personnel Problems in Alaska, updates to the Fair Labor Standards Act, and the Family Medical Leave Handbook. G - 12

89 City Manager Human Resources Division Travel Training: $6,000 This account provides for the costs associated with transportation, lodging, per diem/meals and other incidental travel expenses by the Human Resources Manager and staff to attend the annual IPMA or SHRM conference Training & Education: $11,000 This account provides for the costs associated with registration, training and tuition fees and materials for the Human Resources Manager and staff to attend the annual IPMA or SHRM conference ($3,300). This account also provides for University of Alaska Southeast Ketchikan to conduct follow up leadership and management training for managers and supervisors ($5,000) and quarterly workplace training courses for employees ($2,700). This is a continuation of training recommended by the Matrix Consulting Group Assn. Membership Dues & Fees: $740 This account provides for the costs associated with the membership in the Society for Human Resources Management Association and the International Personnel Management Association, as well as annual consortium fees for Tongass Substance Screening Machinery & Equipment Maintenance Services: $2,560 This account provides for services for routine and non routine maintenance associated with equipment located in the 3rd floor copier room Technical Services: $24,000 This account provides for the expenses associated with employee background checks and drug testing services for all random, post accident and DOT screens for current employees ($16,000). This account also provides for employee participation fees in the Horton Health Initiative Program ($14,000) Legal & Accounting Services: $16,500 This account provides for the expense of grievance and disciplinary appeal arbitration hearings for General Government and KPU employees, including transcription servicesfor larger internal investigations Management & Consulting Services: $34,000 This account provides for the annual costs associated with routine job description reviews conducted by Ralph Andersen & Associates ($5,000). This account also provides for renewal of a professional services agreement with Victor Four Labor Relations for services associated with negotiating new collective bargaining agreements with the International Brotherhood of Electrical Works, Local 1547 both for General Government and Ketchikan Public Utilities ($26,500) Telecommunications: $2,180 This account provides for monthly charges, long distance services, long distance facsimile transmissions, line rentals and maintenance of the phone system in the Human Resources Offices Electric, Water, Sewer & Solid Waste: $100 This account provides for the costs associated with the destruction of records for the division, which have reached the end of their retention life Interdepartmental Charges Insurance: $2,750 This account for the division s share of the City s risk management program. G - 13

90 Finance Summary The Finance Department is committed to supporting the citizens of Ketchikan, the City Council and the City management team by providing accurate, timely and reliable financial services. Finance General Accounting Treasury & Customer Service Budgets, Public Finance and Risk Management The Finance Department is comprised of one operating division that encompasses three functional units and one capital improvement program. DEPARTMENT EXECUTIVE SUMMARY Adopted /2017 Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Operations 1,712,999 1,960,594 1,960,594 1,826,030 2,128, , % Capital Improvement Program (1,200) 20,000 20,000 5,000 20, % Total 1,711,799 1,980,594 1,980,594 1,831,030 2,148, , % Adopted /2017 Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 1,479,108 1,717,614 1,714,314 1,588,480 1,812,393 94, % Supplies 26,622 24,900 27,400 26,700 26,700 1, % Contract/Purchased Services 195, , , , ,200 75, % Minor Capital Outlay 4,791 7,000 7,000 7,000 5,000 (2,000) 28.6% Interdepartmental Charges 7,427 16,500 16,500 8,950 13,900 (2,600) 15.8% Major Capital Outlay (1,200) 20,000 20,000 5,000 20, % Total 1,711,799 1,980,594 1,980,594 1,831,030 2,148, , % Adopted /2017 Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund 715, , , , ,523 69, % Public Works Sales Tax Fund (1,200) 20,000 20,000 5,000 20, % Solid Waste Fund 59,440 68,030 68,030 63,360 73,850 5, % Wastewater Fund 45,220 51,760 51,760 48,210 56,180 4, % Harbor Fund 32,380 37,060 37,060 34,510 40,220 3, % Port Fund 49,160 56,270 56,270 52,410 61,080 4, % KPU Enterprise Fund 811, , , ,170 1,008,340 79, % Total 1,711,799 1,980,594 1,980,594 1,831,030 2,148, , % Adopted /2017 Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Operations ,118, % Total ,118, % H - 1

91 Finance Operations Division MISSION STATEMENT The Finance Department is committed to providing accurate, timely and reliable financial services to the general public and all departments of General Government and Ketchikan Public Utilities. The department s services include accounting, billing, budgeting, cash management, debt service management, financial planning and forecasting, financial reporting, grants administration, risk management and customer services. The Finance Department s mission is to ensure that the quality of these services meets or exceeds the highest professional standards; the level of these services meets the needs of all departments of General Government and Ketchikan Public Utilities; and that the delivery of these services reflects positively on the City of Ketchikan. Finance Director Controller Budgets, Public Finance & Risk Management General Accounting Treasury & Customer Service Budgeting Risk Management and Insurance Financial Planning Debt Service Investments Accounts Payable Accounting Services Financial Reporting Payroll Grants Audit Capital Assets Accounting & Billing System Support Accounts Receivable/Billings Collections Electronic Banking Cash Management Customer Service Bank Reconciliations GOALS FOR 2017 Complete the City s 2016 Financial and Compliance Audit by April 30, 2017 as required by the City Charter and issue the City s 2016 Comprehensive Annual Financial Report by June In conjunction with the office of City Manager/KPU General Manager, prepare the proposed 2018 General Government and KPU Operating and Capital Budgets and their respective Capital Improvement Programs. H - 2

92 Finance Operations Division Continue to provide post implementation support for the City s new accounting, human resources and utility billing systems and expand the support to include internal help desk services and more user training. Implement the electronic personal action forms, capital assets and e suites functions of the City s financial and accounting information system. Begin the process of updating and documenting written procedures to incorporate the City's new accounting, human resources and utility billing systems. Expand the procurementcard program to all departments. Continue to develop and distribute financial statements using data from the City's new financial and accounting information system. Complete thedevelopment of budget and encumbrance policies based on best municipal business practices. Issue a revenue bond to finance improvements planned for the City s water and wastewater utilities. Completethedevelopmentofcapital asset policies and procedures. Address anticipated revisions to the heath insurance reporting requirements of the Affordable Care Act. The City has been advised that the Internal Revenue Services will be introducing new or modified reportingrequirements. Complete the water and wastewater rate study update in anticipation of the City's move to a metered rate structure for certain large commercial customers. ACCOMPLISHMENTS FOR 2016 Completed the City s 2015 Financial and Compliance Audit. The City received a clean opinion and there were no single audit findings. Issued a $2 million general obligation bond to finance improvements for the City s small boat harbors, a $1.2 million revenue bond to finance improvements for the municipal water utility operated by KPU and a $1.3 million revenue bond to finance improvements for the municipal wastewater utility. Successfully refunded the KPU Series T Revenue Bond and the 2006 Port Bond and realized savings in excess of $7.7 million. Completed, in conjunction with the office of City Manager/KPU General Manager, the proposed 2017 General Government and KPU Operating and Capital Budgets and their respective Capital Improvement Programs. Received a certificate of achievement for excellence in financial reporting from the Government Finance Officers Association. This is the City s 37 th certificate, the most awarded to a municipality in the State of Alaska. Resumed the issuance of financial reports to the City Council on a quarterly basis. Successfully implemented GASB StatementNo.68, Accounting and Financial Reporting for Pensions. This new accounting pronouncement requires municipalities to report in their financial statements unfunded pension liabilities. Developed new internal policies for accounting for insurance costs and charging departments for their share of the City's risk management program. H - 3

93 Finance Operations Division Successfully brought the City into compliance with the new health insurance reporting requirements of the Affordable Care Act. For the first time the City was required to report certain information about employee health insurance coverage to the Internal Revenue Service. Successfully hired local candidates to fill the Treasury and Customer Service Supervisor and the Financial Accounting System Specialist positions. Continued working on a water and wastewater rate study update in anticipation of the City's move to a metered rate structure for certain large commercial customers. DIVISION SUMMARY Adopted /2017 Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 1,479,108 1,717,614 1,714,314 1,588,480 1,812,393 94, % Supplies 26,622 24,900 27,400 26,700 26,700 1, % Contract/Purchased Services 195, , , , ,200 75, % Minor Capital Outlay 4,791 7,000 7,000 7,000 5,000 (2,000) 28.6% Interdepartmental Charges 7,427 16,500 16,500 8,950 13,900 (2,600) 15.8% Total Expenditures 1,712,999 1,960,594 1,960,594 1,826,030 2,128, , % Adopted /2017 Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund 715, , , , ,523 69, % Solid Waste Fund 59,440 68,030 68,030 63,360 73,850 5, % Wastewater Fund 45,220 51,760 51,760 48,210 56,180 4, % Harbor Fund 32,380 37,060 37,060 34,510 40,220 3, % Port Fund 49,160 56,270 56,270 52,410 61,080 4, % KPU Enterprise Fund 811, , , ,170 1,008,340 79, % Total Funding 1,712,999 1,960,594 1,960,594 1,826,030 2,128, , % H - 4

94 Finance Operations Division Adopted /2017 Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Finance Director , % Controller , % Accounting Manager 1.00 NA Treasury & Customer Service Supervisor , New Senior Accountant Telecom , % Senior Accountant Electric/Water , % Senior Accountant General Gov't ,771 (1.00) 50.0% Staff Accountant , % Financial Analyst , % Accounting Tech Finance 1.00 NA Financial Accounting System Specialist , % Office Services Manager 1.00 NA Accounts Payable Coordinator , % Payroll Coordinator , % Accounts Payable Finance , % Customer Services Rep II Finance , % Office Services Technician , % Total ,118, % 2017 Expenditures by Type 1.2% 12.7% 0.2% 0.7% Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges 85.2% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $94,779, or by 5.5%, due to annual employee step increases; a 2.0% cost of living adjustment for IBEW, Local 1547 employees and non represented employees that will become effective January 1, 2017; increased employee health insurance co pays for non represented employees that became effective July 1, 2016; paid leave benefits for employees that are eligible for retirement; and employee turnover, which has required adjustments to starting wages and health insurance coverage. Bank & Merchant Fees (Account No ) increased by $72,520, or by 15,108%, due to a change in the method of accounting for account maintenance fees for the City's primary bank account. Previously, these fees, which run about $6,000 per month, were netted against interest income. While this practice may have been sufficient for budgeting purposes, it is not an acceptable accounting practice. A significant portion of these fees will be recovered through interdepartmental charges for the services the Finance Department provides to the revenue generating departments of the City. H - 5

95 Finance Operations Division DIVISION OPERATING BUDGET DETAIL Budget Adopted /2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 932,358 1,070,094 1,061,194 1,005,000 1,118,553 48, % Overtime Wages 3,449 2,000 12,000 10,500 5,000 3, % Temporary Wages 797 3,000 3,000 2,600 2,500 (500) 16.7% Payroll Taxes 68,047 82,280 81,780 76,000 86,200 3, % Pension 206, , , , ,100 8, % Health and Life Insurance 231, , , , ,700 7, % Workers Compensation 4,056 5,580 5,580 5,000 5,080 (500) 9.0% Other Benefits 32,721 29,230 29,230 29,230 54,110 24, % Allowances Medical Expenses % Personnel Services and Benefits 1,479,108 1,717,614 1,714,314 1,588,480 1,812,393 94, % Supplies Office Supplies 14,566 13,000 14,000 14,000 14,000 1, % Operating Supplies 182 1, (1,300) 72.2% Small Tools and Equipment % Postage 8,636 7,100 9,600 9,500 9,500 2, % Bulk Mailing (300) 60.0% Professional and Technical Publications 2,620 2,000 2,000 2,000 2, % Supplies 26,622 24,900 27,400 26,700 26,700 1, % Contract/Purchased Services Travel Training 7,400 7,400 7,400 7, % Training and Education 5,638 9,700 9,700 9,700 9, % Ads and Public Announcements % Professional Licenses & Certifications % Assn. Membership Dues & Fees 1,144 1,350 1,350 1,350 1, % Bank & Merchant Fees ,000 72, % Service Charges and Fees 3,790 3,800 3,800 3,800 3, % Software Maintenance Services 73,020 75,600 75,600 75,600 77,900 2, % Machinery & Equipment Maintenance Ser 9,014 9,300 9,300 9,300 9, % Technical Services % Legal and Accounting Services 93,928 78,000 78,000 78,000 78, % Information Technology Services % Rents and Leases Machinery & Equip 984 1,000 1,000 1,000 1, % Telecommunications 6,408 6,000 6,800 6,800 6, % Electric, Water, Sewer & Solid Waste % Contract/Purchased Services 195, , , , ,200 75, % Minor Capital Furniture and Fixtures 1,000 1,000 1,000 1, % Computers, Printers & Copiers 4,791 6,000 6,000 6,000 4,000 (2,000) 33.3% Minor Capital Outlay 4,791 7,000 7,000 7,000 5,000 (2,000) 28.6% Interdepartmental Charges/ Reimbursable Credits Interdepartmental Insurance 7,427 16,500 16,500 8,950 13,900 (2,600) 15.8% Interdepartmental Charges 7,427 16,500 16,500 8,950 13,900 (2,600) 15.8% Total Expenditures by Type 1,712,999 1,960,594 1,960,594 1,826,030 2,128, , % H - 6

96 Finance Operations Division NARRATIVE Regular Salaries and Wages: $1,118,553 This account provides for compensation paid to regular employees for personnel services Overtime Wages: $5,000 This account provides for compensation paid to non exempt regular and temporary employees for hours worked in excess ofa regular working cycle Temporary Wages: $2,500 This account provides for compensation paid for temporary help during staff absences or during periods when workloads are unusually heavy Payroll Taxes: $86,200 This account provides for employer contributions for Social Security and Medicare and other similar payroll taxes Pension: $229,100 This account provides for employer contributions to retirement plans Health and Life Insurance: $311,700 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $5,080 This account provides for employer contributions for mandatory workers compensation insurance Other Benefits: $54,110 This account provides for the reimbursement of direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Allowances Medical Expenses: $150 This account provides for employee medical exams paid directly to employees Office Supplies: $14,000 This account provides for expendable office supplies Operating Supplies: $500 This account provides for supplies that are not of a maintenance nature and are required to support division operations Small Tools and Equipment: $500 This account provides for calculators, space heaters and minor computer accessories Postage: $9,500 This account provides for postage and mailing materials used for customer invoices and statements for City services and general correspondence Bulk Mailing: $200 This account provides for the mailing of statements for City services that are eligible for bulk mailing Professional and Technical Publications: $2,000 This account provides for professional literature, technical publications and a subscription to an electronic data base used to keep current with accounting and auditing standards and financial management practices Travel Training: $7,400 This account provides for transportation, lodging, meals, per diems and other incidental expenses incurred by employees to attend training and educational opportunities not available in the community Training and Education: $9,700 This account provides for the registration fees, training materials and fees for training programs. Included are an annual governmental accounting update for the professional staff, industry specific training for the utility accountants, and training for the new financial and accounting information system Ads and Public Announcements: $550 This account provides for legal notices and community information notices. H - 7

97 Finance Operations Division Professional Licenses and Certifications: $300 This account provides for state licenses required for certain members of the professional staff Assn. Membership Dues & Fees: $1,350 This account provides for membership fees for the American Institute of Certified Public Accountants, Government Finance Officers Association, Northern Credit Bureau, Public Risk Management Association, American Payroll Association and American Accounts Payable Association Bank & Merchant Fees: $73,000 This account provide for account maintenance fees for the City's primary bank account, credit card equipment and transaction fees, and feesfor storing customer credit card information Service Charges and Fees: $3,800 This account provides for application fees required for the review of the City s Comprehensive Annual Financial Report by the Government Finance Officers Association, escrow fees for the source code for the financial management and accounting system and mandatory fees paid to the State of Alaska for administering the Statewide FICA Program Software Maintenance Services: $77,900 This account provides for the annual software maintenance support agreement for the financial management and accounting system Machinery and Equipment Maintenance Services: $9,300 This account provides for the maintenance service agreementsfor office equipment, copiers and document scanners Technical Services: $300 This account provides for monitoring services required for the silent alarm system Legal and Accounting Services: $78,000 This account provides for the annual audit of the City s financial statements and other professional accounting and legal services. Legal services generally include bond and payroll tax matters Information Technology Services: $600 The account provides for technical assistance required to install upgrades to the financial accounting and management system Rents and Leases Machinery and Equipment: $1,000 This account provides for the lease of the postage meter Telecommunications: $6,800 This account provides for the monthly charges, long distance services, long distance facsimile transmission, line rentals and maintenance of the phone system Electric, Water, Sewer & Solid Waste: $200 This account provides for disposal of records that have reached the end of their retention life Furniture and Fixtures: $1,000 This account provides for replacement of miscellaneous office furniture and fixtures Computers, Printers and Copiers: $4,000 This account provides for the replacement of three personal computers as recommended by the IT Department Interdepartmental Charges Insurance: $13,900 This account for the department s share of the City s risk management program. H - 8

98 Finance Capital Budget Budget Adopted /2017 Major Capital Projects Actual Adopted Amended Estimate Budget Amount % Software (1,200) 20,000 20,000 5,000 20, % Total Major Capital Outlay (1,200) 20,000 20,000 5,000 20, % 2017 Capital Improvement Projects Funding Sources Project # Project PW Sales Tax Total Software Financial & Accounting System Replacement 20,000 20,000 Total Machinery and Equipment 20,000 20,000 Total 2017 Capital Budget 20,000 20,000 Expenditures by Type Expenditures by Funding Source Software PW Sales Tax 100% 100% H - 9

99 Information Technology Summary The Information Technology Department is committed to matching advances in technology with the needs of other City departments and analyzing benefits and costs to ensure that the new technology is cost effective. These services include collecting, processing and distributing data via the City's central computer; supporting personal computers and wide area networks; programming, evaluating and designing systems; and maintaining the integrity of the department's hardware and the data flowing through its information systems. The Information Technology Department is comprised of one operating division and oversees a Capital Improvement Program. DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Operations 1,046, , , , ,691 (38,032) 3.9% Capital Improvement Program 87, , ,000 94,000 74,000 (38,000) 33.9% Total 1,134,034 1,096,723 1,096,723 1,055,275 1,020,691 (76,032) 6.9% Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 844, , , , ,871 (33,677) 4.4% Supplies 12,723 11,900 15,950 14,940 10,900 (1,000) 8.4% Contract/Purchased Services 173, , , , ,400 (2,075) 1.1% Minor Capital Outlay 6,747 8,800 8,800 8,800 8, % Interdepartmental Charges 8,415 10,000 10,000 6,490 8,720 (1,280) 12.8% Major Capital Outlay 87, , ,000 94,000 74,000 (38,000) 33.9% Total 1,134,034 1,096,723 1,096,723 1,055,275 1,020,691 (76,032) 6.9% Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund 375, , , , ,151 (25,192) 6.9% Solid Waste Fund 39,350 38,060 38,060 36,620 35,420 (2,640) 6.9% Wastewater Fund 29,940 28,950 28,950 27,860 26,950 (2,000) 6.9% Harbor Fund 21,430 20,730 20,730 19,940 19,290 (1,440) 6.9% Port Fund 32,550 31,480 31,480 30,290 29,290 (2,190) 7.0% KPU Enterprise Fund 635, , , , ,590 (42,570) 6.9% Total 1,134,034 1,096,723 1,096,723 1,055,275 1,020,691 (76,032) 6.9% Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Operations ,241 (0.42) 6.5% Total ,241 (0.42) 6.5% I - 1

100 Information Technology Operations Division MISSION STATEMENT The mission of the Information Technology Department is to provide efficient and timely computing services and support to all departments of General Government and Ketchikan Public Utilities. These services include collecting, processing and distributing data through the City's central computer systems; supporting personal computers and local and wide area networks; evaluating, designing and programming systems; and maintaining the security and the integrity of the data flowing through the City s information systems while providing external vendor access to needed applications. The department is committed to matching advances in technologies with the needs of City and Utility departments and analyzing benefits and costs to ensure that the new technologies are cost effective. Information Technology Director Sr. Programmer/Analyst Microsoft Server Administrator Network Server Administrator PC/Network Technician (2.0) GOALS FOR 2017 Replace SAN disk storage system. The department has 3 SAN s with staggered end of life dates. One is end of life next year. Add additional blade servers to blade chassis. The new servers will replace the oldest rack mount servers in the department's virtual environment. Assist KPU Telecommunications with the launch of the Telephone customer web portal. Assist Finance with the launch of its Utility Billing customer web portal. Maintain 300 PCs, multiple mobile devices, 35 servers and 100 printers. ACCOMPLISHMENTS FOR 2016 Upgraded the AS400 Platform. As the equipment gets older, the maintenance costs outweigh the cost of upgrade. Set up Blade Server environment to simplify upgrades and reduce cost of ownership. Upgraded Hansen 7 server and deployed on Virtual server. Upgraded Voicent Dialer server for KPU customer notifications (expiring credit cards, cut offs, etc.). Reduced personnel by one Programmer Analyst position to address changing computer environment. I - 2

101 Information Technology Operations Division DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 844, , , , ,871 (33,677) 4.4% Supplies 12,723 11,900 15,950 14,940 10,900 (1,000) 8.4% Contract/Purchased Services 173, , , , ,400 (2,075) 1.1% Minor Capital Outlay 6,747 8,800 8,800 8,800 8, % Interdepartmental Charges 8,415 10,000 10,000 6,490 8,720 (1,280) 12.8% Total Expenditures 1,046, , , , ,691 (38,032) 3.9% Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund 346, , , , ,641 (12,602) 3.9% Solid Waste Fund 36,301 34,170 34,170 33,360 32,850 (1,320) 3.9% Wastewater Fund 27,618 26,000 26,000 25,380 24,990 (1,010) 3.9% Harbor Fund 19,772 18,610 18,610 18,170 17,890 (720) 3.9% Port Fund 30,024 28,260 28,260 27,590 27,170 (1,090) 3.9% KPU Enterprise Fund 585, , , , ,150 (21,290) 3.9% Total Funding 1,046, , , , ,691 (38,032) 3.9% Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Information Technology Director , % Sr. Programmer/Analyst ,636 (0.34) 25.4% Microsoft Server Administrator , % Network/Security Administrator ,076 (0.08) 7.4% PC/Network Technician , % Total ,241 (0.42) 6.5% 2017 Expenditures by Type 20.4% 0.9% 0.9% 1.2% 76.6% Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges I - 3

102 Information Technology Operations Division OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits decreased by $33,677, or by 4.4%, as a result of the City Council approved reorganization of the Information Technology Department, which resulted in the elimination of a Programmer Analyst position in The savings were partially offset by a 2% cost of living adjustment for IBEW, Local 1457 employees and non represented employees that willbecome effective January 1, 2017 and increased employee health insurance co pays for non represented employees that became effective July 1, DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 506, , , , ,241 (21,707) 4.6% Overtime Wages 565 4,000 4,000 1,800 4, % Payroll Taxes 38,525 36,060 34,010 31,640 34,370 (1,690) 4.7% Pension 115,404 98,600 98,600 96,540 93,570 (5,030) 5.1% Health and Life Insurance 146, , , , ,110 (5,590) 4.1% Workers Compensation 2,278 2,440 2,640 2,630 2,060 (380) 15.6% Other Benefits 34,341 12,800 12,800 12,800 13, % Personnel Services and Benefits 844, , , , ,871 (33,677) 4.4% Supplies Office Supplies 1,304 3,000 3,000 2,000 2,000 (1,000) 33.3% Operating Supplies 3,076 3,000 3,000 3,000 3, % Machinery & Equip Maint Materials 3,251 5,000 9,050 9,040 5, % Postage % Vehicle Motor Fuel & Lubricants % Allowances Moving Exp non taxed 5,000 NA Supplies 12,723 11,900 15,950 14,940 10,900 (1,000) 8.4% Contract/Purchased Services Travel Training 2,999 8,000 6,800 6,800 8, % Training and Education 5,102 7,000 8,200 8,200 7, % Ads and Public Announcements 253 NA Vehicle Licenses % Bank and Merchant Charges % Software Maintenance Services 62,175 75,000 72,700 71,000 71,000 (4,000) 5.3% Machinery & Equipment Maintenance 39,159 38,500 38,500 38,500 38, % Telecommunications 63,804 66,875 66,875 66,875 68,500 1, % Electric, Waste, Sewer & Garbage % Contract/Purchased Services 173, , , , ,400 (2,075) 1.1% I - 4

103 Information Technology Operations Division Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Minor Capital Furniture and Fixtures % Machinery and Equipment 4,707 5,000 5,000 5,000 5, % Computers, Printers & Copiers 1,346 2,000 2,000 2,000 2, % Software 216 1,000 1,000 1,000 1, % Minor Capital Outlay 6,747 8,800 8,800 8,800 8, % Interdepartmental Charges Interdepartmental Insurance 3,838 7,600 7,600 4,090 6,320 (1,280) 16.8% Interdepartmental Garage 4,577 2,400 2,400 2,400 2, % Interdepartmental Charges 8,415 10,000 10,000 6,490 8,720 (1,280) 12.8% Total Expenditures by Type 1,046, , , , ,691 (38,032) 3.9% NARRATIVE Regular Salaries and Wages: $445,241 This account provides for compensation paid to all regular salaried and hourly employees for personnel services Overtime Wages: $4,000 This account provides for compensation paid to all regular and temporary hourly employees for hours worked in excess of a regular working cycle. IT supports the following departments that provide services after standard work hours: KPU Telecom, KPU Customer Service in the Mall, Police, Fire and Library. In addition, some tasks are scheduled after normal work hours to reduce the effect on City personnel Payroll Taxes: $34,370 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $93,570 This account provides for employer contributions to retirement plans Health and Life Insurance: $132,110 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $2,060 This account provides for employer contributions to workers compensation Other Benefits: $13,520 This account provides for expenditures for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Office Supplies: $2,000 This account provides for toner, laser printer maintenance kits, and minor office equipment and supplies such as staplers, and note pads Operating Supplies: $3,000 This account provides for supplies that are normally not of a maintenance nature and are required to support department operations. Copy paper and envelopes are included for miscellaneous billing Machinery and Equipment Maintenance Materials: $5,000 This account provides for the materials used to the repair personal computers and networks maintained or operated by Information Technology. Included are personal computer replacement components, computer network cables and other information technology parts required to maintain computer systems. $ I - 5

104 Information Technology Operations Division Postage: $400 This account provides for postal services to ship computer equipment to vendors for return or repair service Vehicle Motor Fuel and Lubricants: $500 This account provides for gasoline and lubricants used by Information TechnologyDepartment vehicles Travel Training: $8,000 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training Training and Education: $7,000 This account provides for registration fees, training fees, training materials, tuition reimbursements and other incidental expenses associated with training and educating employees; and on premises training programs provided by staff or third parties. Combined with Account No , the division needs to continually train staff to ensure proper support for its computing environment Vehicle Licenses: $20 This account provides for licensing Information Technology Department vehicles for operations on public highways Bank and Merchant Fees: $80 This account provides for bank service fees, including IT's annual fee for data storage Software Maintenance Services: $71,000 This account provides for maintenance agreements to support licensed software systems. Includes hosted web services (City's Website, LogMeIn, ShareFile, etc.), mail system maintenance, VM Ware support, and other software maintenance Machinery and Equipment Maintenance Services: $38,500 This account provides for services required to repair and maintain office equipment, computers, networks, servers and other operating equipment owned or leased by the Information Technology Department. This account includes contract labor and materials required to provide the service for hardware systems such as the iseries, Dell SANS, Evault backup system, Pitney Bowes inserter and other hardware systems Telecommunications: $68,500 This account provides for telecommunication services. Included are land line and cell phones, and long distance. $1,600 has been added this year to provide funding for IP phone replacement by KPU Telecom. The majority of this account funds wide area network connections between City facilities and Internet bandwidth for all City departments Garbage: $300 This account provides for landfill fees for obsolete computer equipment disposal Furniture and Fixtures: $800 This account provides for acquisition of furniture and fixtures. IT will replace miscellaneous office fixtures next year Machinery and Equipment: $5,000 This account provides for acquisition of machinery and equipment usually composed of a complex combination of parts, including devices to maintain the City s network infrastructure such as switches, routers, test equipment, etc Computers, Printers and Copiers: $2,000 This account provides for the acquisition of computers, printers and copiers. IT plans to purchase one staff PC. Assuming a 4 year life cycle, IT should replace 2 PCs each year Software: $1,000 This account provides for acquisition of software systems and upgrades not covered by maintenance agreements. IT uses many software utilities like Adobe Acrobat, FTP software, Conversion utilities, etc. These software programs need to be upgraded periodically Interdepartmental Charges Insurance: $6,320 This account provides for risk management services and claims Interdepartmental Charges Garage: $2,400 This account provides for fleet maintenance services provided by the Public Works Department Garage Division. I - 6

105 Information Technology Capital Budget Budget Adopted/2017 Major Capital Projects Actual Adopted Amended Estimate Budget Incr(Decr) % Machinery & Equipment 87, , ,000 94,000 74,000 (38,000) 33.9% Total Major Capital Outlay 87, , ,000 94,000 74,000 (38,000) 33.9% 2017 Capital Improvement Projects Funding Sources Project # Project General Fund Total Machinery & Equipment SAN Replacement 42,000 42,000 Blade Servers 32,000 32,000 Total Machinery and Equipment 74,000 74,000 Total 2017 Capital Budget 74,000 74,000 Expenditures by Type Expenditures by Funding Source Machinery & Equipment General Fund 100% 100% I - 7

106 Fire Summary The Ketchikan Fire Department is dedicated to protecting lives, property and the environment through the delivery of fire suppression, emergency medical and hazardous materials response. Disaster management, fire prevention and public education services are provided by well trained, professional and dedicated personnel. Fire Operations Grants Program Capital Improvement Program The Fire Department is comprised of one operating division and oversees a Grant Program and a Capital Improvement Program. DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Operations 3,156,896 3,279,225 3,294,225 3,222,202 3,461, , % Grants 85, , , , ,394 54, % Capital Improvement Program 118, , ,106 72,422 1,108, , % Total 3,360,598 3,750,961 3,774,705 3,403,282 4,732, , % Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 2,720,451 2,795,454 2,789,793 2,751,255 2,916, , % Supplies 131, , , , ,986 1, % Contract/Purchased Services 276, , , , ,703 66, % Minor Capital Outlay 22,020 11,500 9,300 8,857 15,580 4, % Interdepartmental Charges 91,959 73, , , ,480 44, % Major Capital Outlay 118, , ,106 72,422 1,108, , % Total 3,360,598 3,750,961 3,774,705 3,403,282 4,732, , % J - 1

107 Fire Summary Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Tax Support 1,152,747 1,216,475 1,235,475 1,159,452 1,428, , % Charges for Services 560, , , , , % Public Safety Sales Tax 1,413,680 1,431,250 1,431,250 1,431,250 1,431, % Public Works Sales Tax Fund 118, , ,782 72, , , % Federal and State Grants 115, , , , ,242 59, % Total 3,360,598 3,750,961 3,774,705 3,403,282 4,732, , % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Operations ,516, % Total ,516, % J - 2

108 Fire Operations MISSION STATEMENT The Ketchikan Fire Department is dedicated to the community through safety, service, and excellence. Fire Chief Physician Sponsor Administrative Assistant Assistant Fire Chief Fire Marshal MRC/CERT Volunteer Coordinator A Shift Captain B Shift Captain C Shift Captain CERT Members Senior Medic (1.0) Firefighter Medic (3.0) Senior Medic (1.0) Firefighter Medic (3.0) Senior Medic (1.0) Firefighter Medic (2.0) Firefighter/EMT (1.0) Volunteers Volunteers Volunteers Cadets Cadets Cadets GOALS FOR 2017 Continue to use performance standards to ensure proficiency in both career and volunteer members and develop performance based standards to be used for evaluations and promotions. Continue to provide training, guidance and support for the department s future leaders as part of a succession planning program. Continue to provide an EMT III or higher levelof care or greater on all primary (frontline) EMS responses. Continue to assemble on scene, twenty (20) interior qualified and equipped fire suppression personnel within 20 minutes of an alarm for all reported structure fires. Continue to pursue FEMA, DHS, CDC and/or AFG Grants and other state grant funding for the department and community. Continue to train and drill quarterly with mutual aid fire departments to assure safety and continuity of operations at all fires and emergency scenes. Continue to provide a joint KFD/KPD Arson Investigation Team to identify the origin and cause of all fires in the community. Continue to provide a joint KFD/KPD Dive Team for water rescue and evidence recovery situations. J - 3

109 Fire Operations ACCOMPLISHMENTS FOR 2016 Responded to an estimated 2,200 calls for service in 2016 Conducted seven (7) CPR classes and trained sixty three (63) staff members for other City and KPU Departments. Trained and drilled quarterly with mutual aid departments to assure safety and continuity of operations at all fire and emergency scenes. Coordinated 450 business inspections within the City limits; and generated more than $9,600 in revenue from special permits and seasonal business inspections. The department collected 99% of seasonal inspection fees. Applied for and was awarded $110,000 in new grant funding through State and Federal grant programs. Participated in Alaska Shield 2016; conducted a local table top exercise on cybersecurity, a functional exercise to test the department's ability to communicate with the State Emergency Operations Center using alternate communications methods, and participated in the Statewide Hazardous Material Response Team exercise. Graduated six (6) new paramedics including four (4) paid staff members and two (2) volunteer staff members. Applied for and selected to participate in a volunteer recruitment and retention pilot program through the International Association of Fire Chiefs (IAFC) Volunteer Workforce Solutions (VWS) Program. Participation in this program provides $20,000 in funding over two years. During the initial recruitment drive KFD received 20+ applications for new volunteers. Volunteers attended and actively participated in more than 612 man hours of training, drills and exercises and 750 manhours of in house ride time. Conducted fire prevention talks, fire extinguisher training and station tours for more than 1,200 members of the general public including a Fire Department Open House during Fire Prevention Week. The department also conducted fire prevention programs for elementary and pre school aged children in the community schools and in the fire stations. DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 2,698,942 2,780,318 2,743,318 2,704,780 2,888, , % Supplies 119, , , , ,860 1, % Contract/Purchased Services 229, , , , ,610 22, % Minor Capital Outlay 16,349 9,500 8,900 8,857 15,580 6, % Interdepartmental Charges 91,959 73, , , ,480 44, % Total Expenditures 3,156,896 3,279,225 3,294,225 3,222,202 3,461, , % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund 1,152,747 1,216,475 1,231,475 1,159,452 1,428, , % Public Safety Sales Tax 1,413,680 1,431,250 1,431,250 1,431,250 1,431, % Fire Marshal Fees 45,311 36,500 36,500 36,500 36, % Ambulance Fees 515, , , , , % Borough Emergency Management Services 15,000 15,000 15,000 15,000 New Federal and State Grant 30,000 30,000 30,000 30,000 (30,000) 100.0% Total Funding 3,156,896 3,279,225 3,294,225 3,222,202 3,461, , % J - 4

110 Fire Operations Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Fire Chief , % Assistant Fire Chief , % Fire Marshal , % Administrative Assistant , % Captain , % Senior Medic , % Firefighter/Medic , % Firefighter/EMT ,227 (1.00) 50.0% Subtotal ,516, % Less Salaries & Wages Reported in Grant Program (16,730) Total 1,499, Expenditures by Type 7.93% 0.45% 3.39% 4.79% Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges 83.44% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $107,723, or by 3.9%, due to annual employee step increases; noncompetitive promotion of one (1) FF/EMT to FF/Medic; a 2.0% cost of living adjustment for International Association of Firefighters, Local 2761 and non represented employees that will become effective January 1, 2017; and increased employee health insurance co pays for non represented employees that became effective July 1, Travel Training (Account No ) decreased by $5,200, or by 35.9%, due to historical use of these funds. The savings were used to offset a portion of the increase in Training and Education. Training and Education (Account No ) increased by $15,120, or by 65.4%. Of this amount, $11,120 is due to the start of the tuition repayment for the four (4) paramedic students that will complete the program in The remaining $4,000 increase is to deliver training and education locally and was offset by the reduction in Travel Training (Account No ). Interdepartmental Charges Insurance (Account No ) increased by $6,780, or by 13.4%, due to a rebate from the insurance pool that was not factored in. Interdepartmental Charges Garage (Account No ), increased by $37,500, or 166.7%, due to historical spending in this budget area. J - 5

111 Fire Operations DIVISION OPERATING BUDGET DETAIL Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 1,377,874 1,470,888 1,414,188 1,413,550 1,499,356 28, % Overtime Wages 202, , , , ,000 40, % Temporary Wages 65,552 72,000 62,000 58,720 72, % Payroll Taxes 129, , , , ,480 2, % Pension 375, , , , ,880 6, % Insurance Benefits Health/Life 348, , , , ,040 48, % Insurance Benefits Workers Comp 114, , , , ,595 (24,335) 18.6% Other Benefits 68,279 41,570 66,870 66,870 47,230 5, % Allowances Meals 16,500 16,500 16,500 16,500 16, % Moving Expense Taxed % Personnel Services and Benefits 2,698,942 2,780,318 2,743,318 2,704,780 2,888, , % Supplies Office Supplies 3,129 2,900 2,900 2,900 3, % Operating Supplies 35,221 38,300 33,700 33,700 33,500 (4,800) 12.5% Safety Program Supplies 14,643 23,200 30,200 29,500 23,070 (130) 0.6% Janitorial Supplies 2,258 2,500 2,500 2,494 4,800 2, % Small Tools & Equipment ,000 1, % Food/Catering 490 1,750 1, , % Vehicle Maintenance Materials 1,058 1,425 1, , % Building & Grounds Maint Materials 3, ,502 3,390 3,250 2, % Furniture and Fixtures Maint Materials % Machinery & Equipment Maint Materials 4,953 4,600 4,600 4,549 4, % Postage 1,388 1,200 1,200 1,101 1, % Heating Fuel 10,303 46,578 11,156 9,000 43,200 (3,378) 7.3% Vehicle Motor Fuel & Lubricants 12,744 16,952 16,451 11,445 16,800 (152) 0.9% Machinery & Equip Fuel & Lubricants 1,000 1, , % Professional and Technical Publications 1, ,590 1, % Moving Expense Non Taxed 14,727 15,000 15, % Uniforms/Badges/Clothing 5,931 9,400 6,900 6,200 10,600 1, % Special Protective Clothing 7,295 12,050 12,050 11,000 12,000 (50) 0.4% Supplies 119, , , , ,860 1, % J - 6

112 Fire Operations Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Contract/Purchased Services Travel Business 4,512 7,600 7,600 7,582 7,200 (400) 5.3% Travel Training 7,154 14,500 14,500 14,044 9,300 (5,200) 35.9% Training and Education 4,721 23,120 21,830 21,830 38,240 15, % Ads and Public Announcements 1,220 2,900 2,900 2,602 2,400 (500) 17.2% Professional Licenses and Certifications 1,908 1,400 1,400 1,167 3,640 2, % Assn. Membership Dues & Fees 1,608 2,000 2,000 1,700 1,840 (160) 8.0% Building & Operating Permits % Vehicle Licenses (40) 13.3% Bank & Merchant Fees % Service Charges and Fees 10,958 10,000 10,000 9,363 10, % Janitorial and Cleaning Services 953 1,000 1,000 1,000 1, % Vehicle Maintenance Services , % Software & Equip Maintenance Services 1,457 6,500 6,500 6,500 8,800 2, % Building & Grounds Maint Services 6,402 6,000 11,101 10,727 6, % Machinery & Equipment Maintenance Ser 5,712 4,600 11,199 10,209 7,910 3, % Technical Services 46,535 35,000 33,071 33,019 38,600 3, % Medical Services 11,250 14,000 14,000 13,500 14, % Rents and Leases Land and Buildings 6,057 6,057 6,057 4,038 6, % Rents and Leases Infrastructure 1,402 1,405 1,505 1,499 1, % Telecommunications 35,639 38,300 38,300 38,121 34,600 (3,700) 9.7% Electric, Water, Sewer & Solid Waste 81,716 76,000 76,000 70,456 80,400 4, % Contract/Purchased Services 229, , , , ,610 22, % Minor Capital Furniture and Fixtures 905 1,500 1,500 1,457 3,500 2, % Machinery & Equipment 15,444 3,500 2,900 2,900 7,580 4, % Computers, Printers & Copiers 4,000 4,000 4,000 4, % Software (500) 100.0% Minor Capital Outlay 16,349 9,500 8,900 8,857 15,580 6, % Interdepartmental Charges Interdepartmental Charges Insurance 32,724 50,700 50,700 43,010 57,480 6, % Interdepartmental Charges Garage 59,235 22,500 84,500 84,200 60,000 37, % Interdepartmental Charges 91,959 73, , , ,480 44, % Total Expenditures by Type 3,156,896 3,279,225 3,294,225 3,222,202 3,461, , % NARRATIVE Regular Salaries and Wages: $1,499,356 This account provides for compensation paid to all regular salaried and hourly employees of the department Overtime Wages: $226,000 This account provides for compensation paid to all regular and temporary hourly employees for hours worked in excess ofa regular working cycle Temporary Wages: $72,960 This account provides for compensation paid to temporary employees during extended absences of full time staff, and in support of approved department programs such as the paramedic program, fire prevention program, etc Payroll Taxes: $134,480 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes. J - 7

113 Fire Operations Pension: $370,880 This account provides for employer contributions to retirement plans Health and Life Insurance: $414,040 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $106,595 This account provides for employer contributions to workers compensation Other Benefits: $47,230 This account provides for expenditures for direct claims from former employees for unemployment benefits paid bythe Stateof Alaska and accrued vacation and sick leave Allowances Meals: $16,500 This account provides for employer provided semi annual meal stipends to employees of the Fire Department. These benefits are taxable to the employees Office Supplies: $3,100 This account provides for copy paper, pens, pencils, note pads, file folders, toner, ink cartridges, photocopy charges, small desk accessories and minor office equipment such as adding machines, staplers and tape dispensers Operating Supplies: $33,500 This account provides for supplies that are normally not of a maintenance nature and are required to support department operations. Included are supplies such as expendable medical supplies for ambulance and rescue type calls, inspection supplies, smoke detectors, flags and public education supplies, and other departmental supplies used by the division during the course of a year Safety Program Supplies: $23,070 This account provides for the City safety program. Included are safety training audio and video programs, safety equipment, physical fitness equipment, OSHA required medical exams, immunizations, specialized hazardous materials handling and disposal information, and traffic control items Janitorial Supplies: $4,800 This account provides for cleaning and sanitation supplies such as paper towels, toilet paper, cleaning solutions, etc.usedby in house and contractedjanitors Small Tools and Equipment: $2,000 This account provides for minor tools, operating and office equipment with a value of less than $1,000. Included are hand tools, chain saws, blow torches, hydraulic jacks, sump pumps, computer accessories, space heaters, kitchen and dining equipment, radios, calculators, file cabinets and similar types of minor tools and equipment Food/Catering: $1,800 This account provides for food or catering services during extended training exercises or emergencies Vehicle Maintenance Materials: $1,500 This account provides for the repair and maintenance of vehicles owned or leased and operated by the department. Included are licensed and unlicensed rolling stock and boats Building and Grounds Maintenance Materials: $3,250 This account provides for the repair and maintenance of buildings and upkeep of the grounds used by the department. Salt, paint and caulk are examples of purchases under this line item Furniture and Fixtures Maintenance Materials: $500 This account provides for the repair and maintenance of furniture and building fixtures owned or leased and operated by the division Machinery and Equipment Maintenance Materials: $4,750 This account provides for the repair and maintenance of machinery and equipment owned or leased and operated by the division. Included are office equipment, operating equipment, computer networks and computers Postage and Freight: $1,400 This account provides for postal related services such as postage, express delivery, barge line freight and mailing materials Heating Fuel: $43,200 This account provides for heating fuel used to heat facilities owned or leased and operated by the department Vehicle Motor Fuel and Lubricants: $16,800 This account provides for gasoline, diesel fuel and lubricants used in the operations of division vehicles and boats. J - 8

114 Fire Operations Machinery and Equipment Fuel and Lubricants: $1,000 This account provides for gasoline, diesel fuel, propane and lubricants usedin theoperations ofdepartment machinery, equipment and generators Professional and Technical Publications: $2,590 This account provides for professional and technical publications. Included are professional handbooks, print and electronic subscription services for management, building codes, professional standards and technical journals Allowances Uniforms/Badges/Clothing: $10,600 This account provides for direct purchases of or reimbursements to employees for work related clothing required by department policies. Included are work clothes, collar insignia, patches, raingear, hats, boots and badges Allowances Special Protective Clothing: $12,000 This account provides for direct purchases of or reimbursements to employees for special protective clothing required by department policies Travel Business: $7,200 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for business and trade meetings Travel Training: $9,300 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training and education not locally available Training and Education: $38,240 This account provides for registration fees, training fees, training materials, tuition reimbursements and other incidental expenses associated with training and educating employees; and on premises training programs provided by staff or third parties Ads and Public Announcements: $2,400 This account provides for advertising and announcements in publications, newspapers, trade journals, Internet or broadcasts over radio and television. Included are public service announcements, community issues, recruiting, requests for proposals and vacancies Professional Licenses and Technical Certifications: $3,640 This account provides for licensing professional, technical and other employees requiring a license in order to perform their duties. Included are fees paid to licensed Paramedics; and fees paid for technicalcertifications required by medical technicians, divers and operators of special equipment Assn. Dues and Membership Fees: $1,840 This account provides for memberships in professional and trade associations and regional organizations Vehicle Licenses: $260 This account provides for licensing division vehicles for operations on public highways Bank and Merchant Charges: $260 This account provides for monthly bank account service charges, merchant fees for use of credit and debit cards, wire transfer fees and other fees for banking services Licenses and Fees Service Charges and Fees: $10,800 This account provides for payment of fees that are charged by the Ketchikan Gateway Borough for medical transport to and from the Ketchikan International Airport Janitorial and Cleaning Services: $1,000 This account provides for services to clean facilities and equipment owned by the department Vehicle Maintenance Services: $1,500 This account provides for the repair and maintenance of department vehicles and boats by outside maintenance facilities Software and Equipment Maintenance Services: $8,800 This account provides expenditures for maintenance agreements to support licensed software systems and other technology based systems that include both software and hardware components. Included are expenses for R911 annual software support, Firehouse annual license and support fees and Basecamp annual license and support fees Buildings and Grounds Maintenance Services: $6,290 This account provides for contractual services required to repair and maintain buildings and the upkeep of grounds owned or leased by the department. This account includes contract labor and materials required to provide the service. It also includes annual Otis Elevator contract and sprinkler/backflow testing. J - 9

115 Fire Operations Machinery and Equipment Maintenance Services: $7,910 This account provides for contractual services required to repair and maintain office equipment, machinery and other operating equipment owned or leased by the department. This account includes contract labor and materials required to provide the service. It also includes maintenance service agreements and monitoring services from Johnson Controls as well as a copier contract with Tongass Business Center Technical Services: $38,600 This account provides for services that are not regarded as professional but require technical or special knowledge provided under written contract and/or purchase order. Included are service contracts on monitor/defibrillators, radio repairs, alarm monitoring, R 911 annual software support, background checks, employee drug testing, database management, website maintenance, pest control and contract Ambulance Billing with Systems Design Medical Services: $14,000 This account provides expenditure for services provided by medical practitioners and medical facilities. Included are services provided by physicians for Medical Director services Rents and Leases Land and Buildings: $6,060 This account provides for the costs of leasing storage space at Fire Station No. 3 from the Public Works Building Maintenance Department Rents and Leases Infrastructure: $1,510 This account provides for expenditures for the rent and lease of infrastructure, including rental of Harbor facilities for the fireboat, Harry Newell Telecommunications: $34,600 This account provides for telecommunication services. Included are charges for wired and wireless telecommunications services, cell phones, Internet, long distance and toll free numbers Electric, Water, Sewer & Solid Waste: $80,400 This account provides for electric, water, sewer and solid waste utility services Furniture and Fixtures: $3,500 This account provides for acquisition of furniture and fixtures. Included are desks, chairs, tables, workstations, file cabinets, storage cabinets and building fixtures Machinery and Equipment: $7,580 This account provides for the acquisition of machinery and equipment usually composed of a complex combination of parts. Included are office equipment, computer equipment, IPad(s) for in cab dispatching, and operating equipment required to provide services or maintain capital assets Computers, Printers, & Copiers: $4,500 This account provides for desktop, laptops, and tablet computers; computer printers and scanners, photocopiers and fax machines. The 2016 PC Replacement Schedule includes 1 laptop and 1 desktop computer Interdepartmental Charges Insurance: $57,480 This account provides for risk management services and claims Interdepartmental Charges Garage: $60,000 This account provides for fleet maintenance services provided by the Public Works Department Garage Division. J - 10

116 Fire Grants Program MISSION STATEMENT The Ketchikan Fire Department is looked upon by its peers as being one of the leaders in Alaska s Fire Service, EMS and Hazardous Materials response. Every year management seeks out additional funding sources to ensure the community is prepared for not only the routine day to day calls, but for any incident that goes beyond the norm. If the department is prepared for those extreme events, personnel will be better equipped to handle the common, day to day incidents. GOALS FOR 2017 The department will apply to Alaska Department of Homeland Security and Emergency Management (ADHS&EM) for 2017 EMPG, LEPC and SHSP grants. Staff will continue to utilize monies from the 2012SAFER Grant (FEMA) for volunteer incentives and retention. Staff will continue to utilize monies from the 2016 ADHS&EM, LEPC and EMPG grants for public outreach, emergency management training and education. ACCOMPLISHMENTS FOR 2016 In 2015, grant funds received by the Ketchikan Fire Department provided the department with a variety of training opportunities. Department members evaluated and exercised their Hazmat skills with Hazmat teams from all over Alaska during an exercise held in Anchorage. The Alaska Department of Environmental Conservation (ADEC) granted the department $7,000 for Hazmat equipment maintenance and training. These funds replaced aging equipment and provided funds for required testing/maintenance. In 2016, the City was awarded $30,000 from the ADHS&EM for emergency management activities. In 2016, the City was also awarded $18,140 from ADHS&EM grant program for management of the LEPC. A four year grant of $175,000 from the SAFER program for volunteer recruitment and retention continued to be utilized for college scholarships for 5 volunteers. The department also received a new SHSP grant award of $35,524 to purchase and install an additional all hazard warning siren. OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. All changes in this cost center are a result of the impact of anticipated grant funding availability and or award amounts actually received. J - 11

117 Fire Grants Program DIVISION OPERATING BUDGET DETAIL Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 13,092 5,710 28,234 28,234 16,730 11, % Overtime Wages 8,426 (8,426) 100.0% Temporary Wages 1,000 1, % Payroll Taxes 974 2,101 2,101 1,240 1,240 New Pension 2,880 6,212 6,212 3,680 3,680 New Insurance Benefits Health/Life 3,665 7,689 7,689 4,450 4,450 New Insurance Benefits Workers Comp 897 2,239 2,239 1,075 1,075 New Personnel Services and Benefits 21,509 15,136 46,475 46,475 28,175 13, % Supplies Operating Supplies 4, ,714 6, % Safety Program Supplies 6,991 22,342 11,051 11,049 2,002 (20,340) 91.0% Special Protective Clothing 1,600 1,590 13,410 13,410 New Supplies 11,918 23,242 12,801 12,785 23,126 (116) 0.5% Contract/Purchased Services Travel Business 17,222 6,000 6,000 2,680 (14,542) 84.4% Travel Training 6,056 4,824 2,874 2,000 3,200 (1,624) 33.7% Training and Education 34,605 43,750 37,194 36,973 99,326 55, % Ads and Public Announcements 4, ,030 3,023 4,287 3, % Insurance Premiums Liability 1,003 1,200 3,200 1,003 1, % Telecommunications % Contract/Purchased Services 46,410 67,996 52,698 49, ,093 43, % Minor Capital Machinery & Equipment 5,671 2, (2,000) 100.0% Minor Capital Outlay 5,671 2, (2,000) 100.0% Total Expenditures by Type 85, , , , ,394 54, % 2017 Expenditures by Type 17.3% 14.2% Personnel Services and Benefits 68.5% Supplies Contract/Purchased Services J - 12

118 Fire Grants Program Grant Program Actual Adopted Amended Estimate Budget Incr(Decr) % NAACHO 3,318 7,300 7,300 2,000 6,700 (600) 8.2% Safer Grant 32,883 43,750 30,000 30,000 96,799 53, % EMPG 12,324 23,149 23,149 27,175 27,175 NA ADEC 6,991 7,000 (7,000) 100.0% 2013 SHSP 8,806 20,288 17,889 16,000 (20,288) 100.0% 2015 LEPC 20,424 15,018 15,018 11,572 (15,018) 100.0% 2016 LEPC ,018 19,018 19,018 (15,018) 100.0% 2017 LEPC 13,640 13,640 New VWS PILOT 18,080 18,080 New Total Expenditures by Grant Program 85, , , , ,394 54, % NARRATIVE Regular Salaries and Wages: $16,730 This account provides for compensation paid to all regular salaried and hourly employees of the Grants Program Division Temporary Wages: $1,000 This account provides for compensation paid to all temporary salaried and hourly employees of the Grants Program Division Payroll Taxes: $1,240 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $3,680 This account provides for employer contributions to retirement plans Health and Life Insurance: $4,450 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $1,075 This account provides for employer contributions to workers compensation Operating Supplies: $7,714 This account provides for supplies that are normally not of a maintenance nature and are required to support department operations. Included are supplies such as expendable medical supplies including but not limited to medications, intubation devices, disposable pads, sharps containers, rubber gloves, etc. for ambulance and rescue type calls, and other departmental supplies used by the division during the course of a year Safety Program Supplies: $2,002 This account provides for the City safety program. Included are safety training audio and video programs, safety equipment, physical fitness equipment, OSHA required medical exams, specialized hazardous materials handling and disposal information, specialized protective safety clothing and traffic control items Allowances Special Protective Clothing: $13,410 This account provides for direct purchases of or reimbursements to employees for special protective clothing required by department policies Travel Business: $2,680 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for business and trade meetings. J - 13

119 Fire Grants Program Travel Training: $3,200 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training Travel Training and Education: $99,326 This account provides for registration fees, training materials and tuition reimbursements and other incidental expenses associated with training and educating employees Ads and Public Announcements: $4,287 This account provides for advertising and announcements in publications, newspapers, trade journals, Internet or broadcasts over radio and television. Included are public service announcements, community issues, recruiting, requests for proposals and vacancies Insurance Premiums Liability: $1,200 This account provides for a KFD Volunteer supplemental insurance program Telecommunications: $400 This account provides for telecommunications services. Included are charges for wired and wireless telecommunications services, cell phones, Internet, long distance and toll free numbers. J - 14

120 Fire Capital Budget Major Capital Projects Actual Adopted Amended Estimate Budget Incr(Decr) % Improvements to Land 147, ,000 62, , , % Vehicles and Moving Equipment 118,194 5,562 10,306 9, , , % Machinery and Equipment 210, , ,324 35, % Total Major Capital Outlay 118, , ,106 72,422 1,108, , % 2017 Capital Improvement Projects Funding Sources Project # Project PW Sales Tax Fund Federal & State Grant Bonds Total Improvements to Land Repair/Renovate Station 2 300, ,000 Station 1 Cardlock Integration 15,000 15,000 Total Improvements to Land 315, , Vehicles and Moving Equipment Replace 752 (Ladder#2) 500, ,000 Replace 760 (Command#2) 47,250 47,250 Total Vehicles and Moving Equipment 547, , Machinery and Equipment All Hazard Warning Siren #4 14,476 20,524 35,000 All Hazard Warning Siren #5 35,524 35,524 Saxman Backup Generator 175, ,800 Total Machinery and Equipment 14, , ,324 Total 2017 Capital Budget 876, ,848 1,108,574 Expenditures by Type Expenditures by Funding Source 22.22% 28.41% 20.91% Improvements to Land 49.37% Vehicles and Moving Equipment Machinery and Equipment 79.09% PW Sales Tax Fund Federal & State Grant J - 15

121 Police Summary It is the mission of the Ketchikan Police Department, together with all the residents of the City, to make the community a safe place within which to live and work. Police Operations E911 Central Communications Parking Enforcement The Police Department is comprised of three operating divisions and oversees a Grant Program and a Capital Improvement Program. DEPARTMENT EXECUTIVE SUMMARY Adopted 2016/2017 Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Operations 3,499,058 3,676,689 3,759,938 3,585,120 3,918, , % E911 Central Communications 977,311 1,121,572 1,136,569 1,095,920 1,172,416 50, % Parking Enforcement 79,740 91,213 97,213 95,989 94,137 2, % Grants 2,500 2,500 2,500 2,500 2, % Capital Improvement Program 128, , , , , , % Total 4,686,809 5,080,714 5,197,605 4,959,114 5,668, , % Adopted 2016/2017 Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 4,111,386 4,289,657 4,368,093 4,216,270 4,582, , % Supplies 103, , , , ,100 (5,902) 4.4% Contract/Purchased Services 233, , , , ,160 16, % Minor Capital Outlay 31,398 35,200 43,200 37,900 32,000 (3,200) 9.1% Interdepartmental Charges 78,755 97,450 97,450 76,460 92,660 (4,790) 4.9% Major Capital Outlay 128, , , , , , % Total 4,686,809 5,080,714 5,197,605 4,959,114 5,668, , % K - 1

122 Police Summary Adopted 2016/2017 Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Tax Support 2,561,697 2,811,974 2,916,220 2,727,529 3,135, , % Public Safety Sales Tax 1,413,680 1,472,500 1,472,500 1,472,500 1,472, % Charges for Services 433, , , , ,000 (10,000) 2.2% Fines and Forfeitures 112, , , , ,000 (18,000) 11.3% US Marshal Fund 35, % Federal and State Grants 2,500 2,500 2,500 2,500 2, % Public Works Sales Tax 128, , , , , , % Total 4,686,809 5,080,714 5,197,605 4,959,114 5,668, , % Adopted 2016/2017 Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Operations ,055, % E911 Central Communications , % Parking Enforcement , % Total ,567, % K - 2

123 Police Operations Division MISSION STATEMENT To protect and serve the City of Ketchikan and its citizens by providing progressive public safety services. Police Chief Deputy Chief Administrative Assistant Lieutenant Sergeant Sergeant Sergeant Sergeant Building Janitor Evidence Custodian Sergeant Patrol Team (3.0) Patrol Team (3.0) Patrol Team (3.0) Patrol Team (3.0) Detectives (3.0) GOALS FOR 2017 Expand in house training and provide more scenario based training. Begin working with department supervisors for succession training. Host a Citizen s Academy. ACCOMPLISHMENTS FOR 2016 Held contest for elementary students to draw department s Christmas card cover. Winner became a Junior Officer for the afternoon. Presented at the Schoenbar Job Fair. Conducted multiple classes at the Ketchikan High School. Provided all officers with Law Enforcement Terrorism Prevention and Advanced Roadside Impaired Driving Enforcement training. Provided citizens, businesses and City departments with safety assessments and briefings. Continued in house training program including a class on ethics. Deployed body worn cameras. Assisted the United States Coast Guard with an active shooter drill. Began using cloud based storage for all digital evidence. Started a department REACT Team. K - 3

124 Police Operations Division DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 3,128,438 3,237,344 3,313,383 3,185,420 3,483, , % Supplies 93, , ,690 91, ,300 (5,390) 4.5% Contract/Purchased Services 181, , , , ,500 5, % Minor Capital Outlay 26,607 27,000 29,000 28,300 24,000 (3,000) 11.1% Interdepartmental Charges 68,437 86,100 86,100 69,950 83,300 (2,800) 3.3% Total Expenditures 3,499,058 3,676,689 3,759,938 3,585,120 3,918, , % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Tax Support 2,006,267 2,149,189 2,232,438 2,050,620 2,383, , % Public Safety Sales Tax 1,413,680 1,472,500 1,472,500 1,472,500 1,472, % Fines and Forfeitures 43,822 55,000 55,000 62,000 62,000 7, % US Marshal Fund 35, % Total Funding 3,499,058 3,676,689 3,759,938 3,585,120 3,918, , % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Police Chief , % Deputy Chief , % Lieutenant , % Sergeant , % Corporal , % Police Officer , % Detective/Investigations , % Administrative Assistant , % Evidence Custodian , % Custodian , % Total ,055, % 2017 Expenditures by Type 2.9% 5.5% 0.6% 2.1% Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges 88.9% K - 4

125 Police Operations Division OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $246,579, or by 7.6%, due to annual employee step increases; a cost of living adjustment for Public Safety Employees Association members that will be effective July 1, 2017; a 2.0% cost of living adjustment for non represented employees that will become effective January 1, 2017; and increased employee health insurance co pays for non represented employees that became effective July 1, DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 1,830,054 1,907,864 1,947,447 1,888,380 2,055, , % Overtime Wages 158, , , , , % Temporary Wages 4,653 14,000 1,400 NA Payroll Taxes 150, , , , ,450 11, % Pension 469, , , , ,060 32, % Health and Life Insurance 368, , , , ,860 41, % Workers Compensation 62,191 74,030 75,940 66,620 77,700 3, % Other Benefits 39,007 53,300 49,556 49,550 64,230 10, % Allowances Police Uniforms 45,043 50,000 50,000 48,500 50, % Allowances Medical Expenses 200 1,600 1, , % Personnel Services and Benefits 3,128,438 3,237,344 3,313,383 3,185,420 3,483, , % Supplies Office Supplies 9,271 7,740 7,590 7,200 7,500 (240) 3.1% Operating Supplies 21,190 22,000 22,000 22,000 22, % Safety Program Supplies 4,137 5,000 5,000 3,500 5, % Janitorial Supplies 3,301 2,750 2,900 2,900 2, % Building & Grounds Maint Materials 2,179 6,000 6,000 5,000 6, % Machinery & Equip Maint Materials 103 1,000 1, , % Postage 3,991 4,200 4,200 2,800 3,500 (700) 16.7% Heating Fuel 16,434 25,000 17,000 16,500 25, % Vehicle Motor Fuel & Lubricants 32,293 43,000 41,000 30,000 40,000 (3,000) 7.0% Allowances Uniforms/Badges/Clothing 908 4,000 4, ,500 (1,500) 37.5% Supplies 93, , ,690 91, ,300 (5,390) 4.5% K - 5

126 Police Operations Division Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Contract/Purchased Services Travel Business 1,442 1,500 1,500 1,500 1, % Travel Training 22,627 20,000 20,000 20,000 20, % Training and Education 6,870 12,500 12,500 12,500 12, % Ads and Public Announcements 1,656 3,000 3,500 3,500 3, % Community Promotion 4,194 5,000 4,500 3,300 5, % Assn. Membership Dues & Fees 2,880 3,000 3,000 2,800 3, % Towing of Impounded Property 80 2,000 2, , % Vehicle Licenses % Bank & Merchant Fees 1,133 1,000 1, , % Government Contractual Services 25,429 26,000 26,000 25,000 26, % Software & Equip Maint Services 15,760 20,000 20,000 18,000 20, % Building & Grounds Maint Services 1,276 1,000 16,210 15,500 5,500 4, % Machinery & Equipment Maintenance Ser 7,340 7,500 7,500 7,000 7, % Investigation Services 9,898 10,000 10,000 9,500 10, % Medical Services 461 3,000 2,055 2,000 (1,000) 33.3% Telecommunications 34,087 42,055 43,000 43,000 43, % Electric, Water, Sewer & Solid Waste 46,486 47,500 47,500 47,000 49,000 1, % Contract/Purchased Services 181, , , , ,500 5, % Minor Capital Furniture and Fixtures 4,072 3,000 3,000 2,300 3, % Machinery and Equipment 20,204 20,000 14,000 14,000 15,000 (5,000) 25.0% Computers, Printers & Copiers 2,331 4,000 12,000 12,000 6,000 2, % Minor Capital Outlay 26,607 27,000 29,000 28,300 24,000 (3,000) 11.1% Interdepartmental Charges Interdepartmental Insurance 27,075 46,100 46,100 29,950 43,300 (2,800) 6.1% Interdepartmental Garage 41,362 40,000 40,000 40,000 40, % Interdepartmental Charges 68,437 86,100 86,100 69,950 83,300 (2,800) 3.3% Total Expenditures by Type 3,499,058 3,676,689 3,759,938 3,585,120 3,918, , % NARRATIVE Regular Salaries and Wages: $2,055,023 This account provides for compensation paid to all regular salaried and hourly employees for personnel services Overtime Wages: $160,000 This account provides for compensation paid to all regular and temporary hourly employees for hours worked in excess ofa regular working cycle Payroll Taxes: $169,450 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $ 485,060 This account provides for employer contributions to retirement plans Health and Life Insurance: $420,860 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $77,700 This account provides for employer contributions toworkers compensation. K - 6

127 Police Operations Division Other Benefits: $64,230 This account provides for expenditures for direct claims from former employees for unemployment benefits paid bythe Stateof Alaska and accrued vacation and sick leave Allowances Police Uniforms: $50,000 This account provides for employer provided uniform allowances paid directly to police officers pursuant to collective bargaining agreements or the Personnel Rules Allowances Medical Expenses: $1,600 This account provides for employee medical exams paid directly to employees. These benefits are taxable to the employees Office Supplies: $7,500 This account provides for paper, pens, pencils, note pads, file folders, scotch tape, toner, ink cartridges, photocopy charges, small desk accessories and minor office equipment such as staplers and tape dispensers Operating Supplies: $22,000 This account provides for supplies that are normally not of a maintenance nature and are required to support department operations. Included are supplies such as CDs, DVDs, batteries, narcotic test kits, training materials, crime scene investigation materials, taser cartridges, pepper spray, ammunition, targets and armor supplies Safety Program Supplies: $5,000 This account provides supplies for the department safety program. Included are safety information brochures, safety training audio and video programs, soft body armors, ballistic vests, safety equipment, OSHA required medical exams, specialized hazardous materials handling and disposal information, specialized protective safety clothing and traffic control accessories Janitorial Supplies: $2,800 This account provides for cleaning and sanitation supplies used by the in house janitor Building and Grounds Maintenance Materials: $6,000 This account provides for materials required to repair and maintain the building and the upkeep of the grounds at the Police Station Machinery and Equipment Maintenance Materials: $1,000 This account provides for the materials required to repair and maintain machinery and equipment owned or leased and operated by the department. Included are office equipment, operating equipment, computer networks and computers Postage: $3,500 This account provides for postal related services such as postage, express delivery and mailing materials Heating Fuel: $25,000 This account provides for heating fuel for the Police Department Vehicle Motor Fuel and Lubricants: $40,000 This account provides for gasoline and lubricants used for the operation of Police vehicles Allowances Uniforms/Badges/Clothing: $2,500 This account provides for direct purchases of or reimbursements to employees for work related clothing required by department policies. Included are badges, collar insignia, patches and department awards Travel Business: $1,500 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for department business Travel Training: $20,000 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training Training and Education: $12,500 This account provides for registration fees, training fees, training materials, tuition reimbursements and other incidental expenses associated with training and educating employees; and on premises training programs provided by staff or third parties. K - 7

128 Police Operations Division Ads and Public Announcements: $3,000 This account provides for advertising and announcements in publications, newspapers, trade journals, Internet or broadcasts over radio and television. Included are legal notices, public service announcements, community issues and recruiting Community Promotion: $5,000 This account provides for the promotion of community activities and programs. Included activities are National Night Out, Health Fair and Halloween Safety Assn. Dues and Membership Fees: $3,000 This account provides for memberships in professional and trade associations such as the FBI National Academy Associates, Alaska Association of Chiefs of Police, International Association of Chiefs of Police and others Towing of Impounded Property: $2,000 This account provides for towing and/or storing of impounded vehicles Vehicle Licenses: $500 This account provides for licensing department vehicles for operations on public highways Bank and Merchant Fees: $1,000 This account provides for monthly merchant fees for use of credit and debit cards associated with payment of parking tickets and fines Government Contractual Services: $26,000 This account provides for services provided by federal, state and local governments. Included are prisoner charges and fees paid for services provided by federal, state and local governments Software and Equipment Maintenance Services: $20,000 This account provides for maintenance agreements to support licensed software systems and other technology based systems that include both software and hardware components. The agreements in place for the division include support and updates for the JUDG Digital Evidence Management system, Cellebrite Universal Forensic Electronic Device (UFED) and body worn cameras Building and Grounds Maintenance Services: $5,500 This account provides for services required to repair and maintain the building and the upkeep of the grounds at the Police Station Machinery and Equipment Maintenance Services: $7,500 This account provides for the contractual services required to repair and maintain office equipment, machinery and other operating equipment owned or leased by the department. This account includes contract labor and materials requiredto provide the service. It also includes maintenance service agreements Investigation Services: $10,000 This account provides for major criminal investigations, undercover operations and other types of investigation and inspection services Medical Services: $2,000 This account provides for the costs of medical examinations for individuals held in protective custody, medical screenings for arrestees and DUI blood draws Telecommunications: $43,000 This account provides for telecommunication services. Included are charges for wired and wireless telecommunications services, cell phones, Internet, long distance and toll free numbers Electric, Water, Sewer & Solid Waste: $49,000 This account provides for electric, water, sewer and solid waste utility services Furniture and Fixtures: $3,000 This account provides for acquisition of furniture and fixtures. Included are desks, chairs, tables, workstations, file cabinets, storage cabinets and building fixtures Machinery and Equipment: $15,000 This account will provide for the acquisition of replacement X2 Tasers, body worn cameras and vehicle cameras Computers, Printers and Copiers: $6,000 This account provides for acquisition of two replacement PC s and two laser printers. K - 8

129 Police Operations Division Interdepartmental Charges Insurance: $43,300 This account provides for risk management services and claims Interdepartmental Charges Garage: $40,000 Expenditures for fleet maintenance services provided by the Public Works Department Garage Division. K - 9

130 Police E911 Central Communications Division MISSION STATEMENT It is the mission of the E 911 Central Communications Division to maintain 24 hour emergency dispatch services for the community, in order to provide for expedited and professional responses from Police, Fire and EMS. Police Chief Deputy Chief Dispatch Supervisor Administrative Assistant Lieutenant Dispatcher (8.0) Evidence Custodian GOALS FOR 2017 Continue providing monthly training and skill building for the dispatchers of the Central Communications Division to increase their skills, knowledge and confidence. Maintain APCO and State certification for Emergency Medical dispatching. Upgrade and install a new CAD server for central dispatch. Actively manage overtime budget to insure fiscal responsibility. ACCOMPLISHMENTS FOR 2016 Purchased and upgraded dispatch consoles in order to maintain safety, health and welfare of dispatchers. Provided monthly training and skill building for the dispatchers of the Central Communications Division to increase their skills, knowledge and confidence. Reduced the amount of overtime by utilizing other trained Police Department staff. Implemented new technology to assist with medical dispatching. Communication Dispatchers obtained Emergency Medical dispatching certification at the State level. K - 10

131 Police E911 Central Communications Division DIVISION SUMMARY Adopted 2016/2017 Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 917, , , ,030 1,015,796 43, % Supplies 4,470 8,000 8,000 5,450 7,000 (1,000) 12.5% Contract/Purchased Services 46, , , , ,800 10, % Minor Capital Outlay 4,791 8,200 8,200 3,600 8,000 (200) 2.4% Interdepartmental Charges 4,547 9,700 9,700 5,040 7,820 (1,880) 19.4% Total Expenditures 977,311 1,121,572 1,136,569 1,095,920 1,172,416 50, % Adopted 2016/2017 Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Tax Support 544, , , , ,416 60, % Charges for Services Borough 15,000 15,000 15,000 15,000 15, % Charges for Services E , , , , ,000 (10,000) 2.3% Total Funding 977,311 1,121,572 1,136,569 1,095,920 1,172,416 50, % Adopted 2016/2017 Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Police Chief , % Deputy Chief , % Administrative Assistant , % Dispatch Supervisor , % Dispatcher , % Evidence Custodian , % Total , % 0.6% 11.4% 0.7% 0.7% 2017 Expenditures by Type Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges 86.6% K - 11

132 Police E911 Central Communications Division OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $43,424, or by 4.5%, due to annual employee step increases; a cost of living adjustment for Public Safety Employees Association members that will be effective July 1, 2017; a 2.0% cost of living adjustment for non represented employees that will become effective January 1, 2017; and increased employee health insurance co pays for non represented employees that became effective July 1, Software & Equip Maint Services (Account No ) increased by $13,000, or 13.4%, due to new maintenance agreements and the increased cost of current maintenance agreements. DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 423, , , , ,976 21, % Overtime Wages 124, , , , ,000 12, % Temporary Wages 22,504 40,000 27,500 24,750 40,000 40, % Payroll Taxes 44,842 47,220 47,830 45,160 48,880 1, % Pension 127, , , , ,780 4, % Health and Life Insurance 150, , , , , % Workers Compensation 4,923 5,560 5,760 5,210 5,300 (260) 4.7% Other Benefits 11,350 13,140 13,390 13,390 15,190 2, % Allowances Dispatch Uniforms 8,108 7,000 7,900 7,850 7, % Personnel Services and Benefits 917, , , ,030 1,015,796 43, % Supplies Operating Supplies 3,443 7,000 7,000 4,600 6,000 (1,000) 14.3% Uniforms/Badges/Clothing 1,027 1,000 1, , % Supplies 4,470 8,000 8,000 5,450 7,000 (1,000) 12.5% Contract/Purchased Services Travel Training 3,000 3,000 3,000 3, % Training and Education 2,596 4,000 4,000 4,000 4, % Ads and Public Announcements % Software Licenses 694 5,500 5,500 5,500 6, % Software & Equip Maint Services 35,891 97, , , ,000 13, % Machinery & Equip Maint Services 2,914 4,000 4,000 3,000 4, % Subscription Services 1,063 4,000 4,000 3,000 3,000 (1,000) 25.0% Telecommunications 2,159 5,000 5,000 1,250 3,000 (2,000) 40.0% Contract/Purchased Services 46, , , , ,800 10, % Minor Capital Furniture and Fixtures 2,724 3,200 3,200 1,250 3,000 (200) 6.3% Machinery & Equipment 2,067 3,000 3,000 1,600 3, % Computers, Printers & Copiers NA Software 2,000 2, , % Minor Capital Outlay 4,791 8,200 8,200 3,600 8,000 (200) 2.4% K - 12

133 Police E911 Central Communications Division Interdepartmental Charges Interdepartmental Charges Insurance 4,547 9,700 9,700 5,040 7,820 (1,880) 19.4% Interdepartmental Charges 4,547 9,700 9,700 5,040 7,820 (1,880) 19.4% Total Expenditures by Type 977,311 1,121,572 1,136,569 1,095,920 1,172,416 50, % NARRATIVE Regular Salaries and Wages: $473,976 This account provides for compensation paid to all regular salaried and hourly employees for personnel services Overtime Wages: $125,000 This account provides for compensation paid to all regular and temporary hourly employees for hours worked in excess ofa regular working cycle Temporary Wages: $40,000 This account provides for compensation paid to hourly employees for temporary personnel services Payroll Taxes: $48,880 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $131,780 This account provides for employer contributions to retirement plans Health and Life Insurance: $168,670 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $5,300 This account provides for employer contributions toworkers compensation Other Benefits: $15,190 This account provides for expenditures for direct claims from former employees for unemployment benefits paid bythe Stateof Alaska and accrued vacation and sick leave Allowances Dispatch Uniforms: $7,000 This account provides for employer provided uniform allowances paid directly to police dispatchers pursuant to collective bargaining agreements or the Personnel Rules Operating Supplies: $6,000 This account provides for supplies that are normally not of a maintenance nature and are required to support department operations. Included are supplies such as communications wireless bases and headsets, batteries, employee awards and recognition pins, brochures, medical supplies, and general materials for classes and public programs Allowances Uniforms/Badges/Clothing: $1,000 This account provides for direct purchases of or reimbursements to employees for work related clothing required by department policies. Included are work clothes, collar insignia, patches, badges, name plates, boots, shoes and branded logo wear Travel Training: $3,000 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training Training and Education: $4,000 This account provides for registration fees, training fees, training materials, tuition reimbursements and other incidental expenses associated with training and educating employees; and on premises training programs provided by staff or third parties Ads and Public Announcements: $800 This account provides for advertising and announcements in publications, newspapers, trade journals, Internet or broadcasts over radio and television. Included are legal notices, public service announcements, community issues, recruiting, requests for proposals and contracts Software Licenses: $6,000 This account provides for acquiring licenses for the right to use proprietary software such as Adobe. K - 13

134 Police E911 Central Communications Division Software and Equipment Maintenance Services: $110,000 This account provides for maintenance agreements to support licensed software systems and other technology based systems that include both software and hardware components. The agreements in place for the division include support and updates for the computer aided dispatch system, records management system, recording system interface for the dispatch consoles and remote monitoring, dispatch consoles and the ASPIN criminal justice information system for Alaska Machinery and Equipment Maintenance Services: $4,000 This account provides for the contractual services required to repair and maintain office equipment and operating equipment. It also includesmaintenance service agreements Subscription Services: $3,000 This account provides for subscriptions for access to telephonic and web based services. Included are Alaska Public Safety Information System, Department of Motor Vehicles Photo Site, on line reference databases, Statewide Gateway for APSIN, NCIC and Statewide Library Electronic Doorway Telecommunications: $3,000 This account provides for telecommunication services. Included are charges for wired and wireless telecommunications services, Internet and long distance Furniture and Fixtures: $3,000 This account provides for acquisition of furniture and fixtures. Included are desks, chairs, tables, workstations, file cabinets, storage cabinets and building fixtures Machinery and Equipment: $3,000 This account will provide for replacement of minor machinery and equipment, such as wireless base stations for E911 Central Communications and Department owned wireless headsets Software: $2,000 This account provides for acquisition of software systems and upgrades not covered by maintenance agreements Interdepartmental Charges Insurance: $7,820 This account provides for risk management services and claims. K - 14

135 Police Parking Enforcement Division MISSION STATEMENT The mission of the Parking Enforcement Division is to provide parking enforcement in the City Center District as well as all other areas within City jurisdiction in a fair and equitable manner and in accordance with the Ketchikan Municipal Code. Police Chief Lieutenant Parking Enforcement GOALS FOR 2017 Identify parking issues within the City of Ketchikan. Monitor abandoned vehicles and remove them from City streets to alleviate parking congestion. Replaced outdated hand held ticket computers. Transitioned to new program to track parking citations. ACCOMPLISHMENTS FOR 2016 Hired and trained Seasonal Parking Enforcement Specialist, who also assisted in enforcement of the City's new hawking and barking ordinance. The Parking Enforcement Division issued about 3,000 citations as of August DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 65,543 79,941 79,841 78,820 82,437 2, % Supplies 5,173 5,312 5,312 5,300 5, % Contract/Purchased Services 3,253 4,310 4,410 4,399 4, % Interdepartmental Charges 5,771 1,650 1,650 1,470 1,540 (110) 6.7% Total Expenditures 79,740 91,213 97,213 95,989 94,137 2, % K - 15

136 Police Parking Enforcement Division Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Tax Supported (Rev. Producing) 11,297 (13,787) (7,787) 15,989 14,137 27, % Fines and Forfeitures 68, , ,000 80,000 80,000 (25,000) 23.8% Total Funding 79,740 91,213 97,213 95,989 94,137 2, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Parking Enforcement Specialist , % Total , % 2017 Expenditures by Type 6.2% 4.6% 1.6% Personnel Services and Benefits Supplies Contract/Purchased Services Interdepartmental Charges 87.6% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below: Personnel Services and Benefits increased by $2,496, or by 3.1%, due to annual employee step increases; and a 2.0% cost of living adjustment for IBEW, Local 1547 employees that will become effective January 1, K - 16

137 Police Parking Enforcement Division DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 34,828 37,041 37,041 37,040 38,357 1, % Overtime NA Temporary Wages 10,000 9,870 9,490 10, % Payroll Taxes 2,494 3,600 3,600 3,420 3, % Pension 5,950 6,300 6,300 6,300 6, % Health and Life Insurance 18,371 19,200 19,200 19,110 19, % Workers Compensation 1,108 1,800 1,800 1,430 1, % Other Benefits 1,612 1,000 1,000 1,000 1, % Allowances Police Uniforms 1,010 1,000 1,000 1,000 1, % Personnel Services and Benefits 65,543 79,941 79,841 78,820 82,437 2, % Supplies Office Supplies 2,910 3,000 3,000 3,000 3, % Operating Supplies % Postage 1,706 1,512 1,512 1,500 1,500 (12) 0.8% Vehicle Motor Fuel & Lubricants % Supplies 5,173 5,312 5,312 5,300 5, % Contract/Purchased Services Ads and Public Announcements % Vehicle Licenses % Software & Equip Maint Services 2,693 3,600 3,600 3,600 3, % Telecommunications % Contract/Purchased Services 3,253 4,310 4,410 4,399 4, % Minor Capital Machinery & Equipment 6,000 6,000 NA Minor Capital Outlay 6,000 6,000 NA Interdepartmental Charges Interdepartmental Charges Insurance (110) 12.2% Interdepartmental Charges Garage 5, % Interdepartmental Charges 5,771 1,650 1,650 1,470 1,540 (110) 6.7% Total Expenditures by Type 79,740 91,213 97,213 95,989 94,137 2, % NARRATIVE Regular Salaries and Wages: $38,357 This account provides for compensation paid to all regular salaried and hourly employees for personnel services Temporary Wages: $10,000 This account provides for compensation paid to hourly employees for temporary personnel services Payroll Taxes: $3,700 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $6,520 This account provides for employer contributions to retirement plans. K - 17

138 Police Parking Enforcement Division Health and Life Insurance: $19,850 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $1,800 This account provides for employer contributions to workers compensation Other Benefits: $1,210 This account provides for expenditures for direct claims from former employees for unemployment benefits paid bythe Stateof Alaska and accrued vacation and sick leave Allowances Public Works Clothing: $1,000 This account provides for employer provided protective clothing allowances paid directly to represented employees of Parking Enforcement pursuant to collective bargaining agreements or the personnel rules Office Supplies: $3,500 This account provides for the cost of monthly, annual and temporary City parking permits, past due notice forms and envelopes, new parking ticket stock,printer cartridges and other supplies Operating Supplies: $300 This account provides for supplies for the division during the course of the year Postage: $1,500 This account provides for postal related services such as postage, express delivery and mailing materials Vehicle Motor Fuel and Lubricants: $500 This account provides for gasoline, diesel fuel, propane and lubricants used in the operation of the Parking Enforcement Vehicle Ads and Public Announcements: $250 This account provides for advertising and announcements in publications and newspapers Vehicle Licenses: $10 This account provides for licensing City vehicles for operations on public highways Software Maintenance Services: $3,600 This account provides for maintenance agreements to support licensed software systems Telecommunications Services: $500 This account provides for telecommunication services Interdepartmental Charges Insurance: $790 This account provides for risk management services and claims Interdepartmental Charges Garage: $750 This account provides for fleet maintenance services provided by the Public Works Department Garage Division. K - 18

139 Police Grants Program MISSION STATEMENT The Ketchikan Police Department prides itself in being one of the leaders in Alaska s law enforcement community. Every year the department seeks out additional funding sources to ensure the community is prepared for routine, day to day calls, and any incidents that go beyond the norm. In the past, the department has received funds to help offset the cost of officer bullet proof vests, bicycle helmets and gun locks, as well as the new dispatch console. The department has also received funding to enhance law enforcement training programs from state and federal sources. GOALS FOR 2017 Actively pursue new state and federal grant funding opportunities Continue to solicit funding from the Alaska Police Standards Council for training and training equipment. ACCOMPLISHMENTS FOR 2016 Provided for department wide Advanced Roadside Impaired Driver Enforcement training. DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Contract/Purchased Services Travel Training 2,500 2,500 2,500 2,500 2, % Contract/Purchased Services 2,500 2,500 2,500 2,500 2, % Total Expenditures by Type 2,500 2,500 2,500 2,500 2, % 2017 Expenditures by Type Contract/Purchased Services 100.0% K - 19

140 Police Grants Program Budget Adopted/2017 Grant Program Actual Adopted Amended Estimate Budget Incr(Decr) % APSC Training Grant 2,500 2,500 2,500 2,500 2, % Total Expenditures by Grant Program 2,500 2,500 2,500 2,500 2, % OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. All changes in this cost center are a result of the impact of anticipated grant funding availability and or award amounts actually received. NARRATIVE Travel Training: $2,500 This account is funded by the Alaska Police Standards Council and provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training. K - 20

141 Police Capital Budget Budget Adopted/2017 Major Capital Projects Actual Adopted Amended Estimate Budget Incr(Decr) % Buildings 12,645 12, , ,000 NA Vehicles and Moving Equipment 73, , , ,440 90,000 (34,440) 27.7% Machinery and Equipment 7,259 55,800 55,800 42,500 13,300 (42,500) 76.2% Software 47,090 8,500 8,500 8, % Total Major Capital Outlay 128, , , , , , % 2017 Capital Improvement Projects Funding Sources Project # Project PW Sales Tax Fund Total Buildings Police Station Roof Replacement 370, ,000 Total Buildings 370, , Vehicles and Moving Equipment Two Marked Patrol Vehicles 90,000 90,000 Total Vehicles and Moving Equipment 90,000 90, Machinery and Equipment Radio Engineering Assessment 13,300 13,300 Total Machinery and Equipment 13,300 13, Software E911 Interface Software 8,500 8,500 Total Software 8,500 8,500 Total 2017 Capital Budget 481, ,800 Expenditures by Type Expenditures by Funding Source 18% 3% 2% Buildings 77% Vehicles and Moving Equipment Machinery and Equipment Software 100% Public Works Sales Tax Fund K - 21

142 Public Health Summary The Public Health Department is comprised of two operating divisions and oversees a Capital Improvement Program. Public Health Public Health Center Operations Health Care Operations DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Public Health Center 6,615 14,325 14,325 11,440 14, % Health Care Operations 13,344 38,800 38,800 38,740 38,740 (60) 0.2% Capital Improvement Program 5,264,710 5,753,900 5,753,900 2,877,551 3,324,860 (2,429,040) 42.2% Total 5,284,669 5,807,025 5,807,025 2,927,731 3,377,925 (2,429,100) 41.8% Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies 1,546 21,000 21,000 18,760 21, % Contract/Purchased Services 14,928 29,825 29,825 29,450 29, % Minor Capital Outlay 1,500 1,500 1,230 1, % Interdepartmental Charges 3, (60) 7.5% Major Capital Outlay 5,264,710 5,753,900 5,753,900 2,877,551 3,324,860 (2,429,040) 42.2% Total 5,284,669 5,807,025 5,807,025 2,927,731 3,377,925 (2,429,100) 41.8% Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund 6,615 14,325 14,325 11,440 14, % Hospital Sales Tax Fund 13, , ,800 82, , , % General Obligation Bonds 3,764,710 5,528,900 5,528,900 2,834,040 2,694,860 (2,834,040) 51.3% Private Contributions 1,500,000 NA Total 5,284,669 5,807,025 5,807,025 2,927,731 3,377,925 (2,429,100) 41.8% L - 1

143 Public Health Public Health Center Operations MISSION STATEMENT The mission of the Ketchikan Public Health Center (KPHC) is: Protecting and improving the health of Alaskans through partnering with individuals, communities and systems while championing self reliance, dignity and cultural integrity. The KPHC provides a multitude of essential services to Ketchikan residents as well as the greater Ketchikan population area including Hyder and Metlakatla. The KPHC Nurse Manager also oversees clinic operations and provides staff supervision to health centers throughout Southern Southeast Alaska in the communities of Craig, Wrangell and Petersburg. KPHC also employs an Advanced Nurse Practitioner who travels to provide women s health services in the communities of Craig, Haines, Juneau, Petersburg, Sitka and Wrangell. Public Health services include home visits to prenatal and postpartum women; well child exams; immunizations; pregnancy testing; family planning services; communicable disease screening; treatment and surveillance; HIV screening; TB screening and case management; educational presentations; and a genetics clinic for families with special needs. In addition, Public Health Nurses regularly provide outreach to Ketchikan area schools and Senior Service Centers. KPHC is also involved in community coalitions including the Ketchikan Wellness Coalition, Substance Abuse Task Force, Building a Healthy Community, Promoting Respectful Relationships, Southeast Alaska Networking Elderly Topics (SEANET), Family, Infant, Toddler Court Team, KGBSD Wellness Committee, Diabetes Advisory Board, Alaska Shield and the Disability Abuse Response Team. KPHC staff collaborates with community partners in disaster preparedness and to utilize available resources, in order to promote optimum health care for Ketchikan residents. GOALS FOR 2017 KPHC will continue to work toward fulfilling the goals as outlined in the Section of Public Health Nursing (SOPHN) Strategic Plan; improving immunization rates, screening for healthy lifestyle, height and weight; screening and brief intervention for risky alcohol and substance use behavior; screening and referrals for Domestic Violence, reducing rates of Chlamydia, collaborating in community health assessments for health improvement process, reduce health inequities by addressing root causes, engage in meaningful flow of information and hold ourselves accountable for honest and respectful communication at all levels, and practice exceptional stewardship of resources through continuous quality improvement. KPHC will continue to assess Ketchikan s public health care needs through work with the Ketchikan Wellness Coalition steering committee and the 5 active task force groups. KPHC will continue to participate in numerous community and state coalitions and committees such as: The Ketchikan Wellness Coalition, Substance Abuse Task Force, Building a Healthy Community, Promoting Respectful Relationships, Southeast Alaska Networking Elderly Topics (SEANET), Family, Infant, Toddler Court Team, KGBSD Wellness Committee, Diabetes Advisory Board, Alaska Shield, LEPC and the Disability Use Response Team. KPHC staff will continue to participate in local and statewide disaster preparedness trainings. KPHC will continue to provide seasonal flu vaccines to individuals in need meeting State criteria. KPHC will work with community partners to ensure that the vaccine is available to the community and provide technical support through an Immunization Coalition for the Greater Ketchikan area. KPHC will continue screening, treatment, education and surveillance of communicable diseases with a focus on ACCOMPLISHMENTS FOR 2016 KPHC continued to provide office and storage space for the Women, Infants and Children (WIC) Nutritional Program. The KPHC Staff screened 219 women, infants and children for the WIC Program. Provided Public Health services through 2,455 visits for 1,341 clients. L - 2

144 Public Health Public Health Center Operations Provided support to the Wellness Coalition through provision of meeting and interview space. The KPHC strives to ask all clients if they have encountered family violence/domestic violence. Family violence/domestic violence screenings were done on 1,834 visits with 7 positives and 1 suspected positive for violence. Clients involved in family violence/domestic violence are offered referrals to WISH and other community resources. If appropriate, a report is made to the Office of Children s Services. KPHC participated in community coalitions including the Ketchikan Wellness Coalition, Substance Abuse Task Force, Building a Healthy Community, Promoting Respectful Relationships, Southeast Alaska Networking Elderly Topics (SEANET), Family, Infant, Toddler Court Team, KGBSD Wellness Committee, Diabetes Advisory Board, Alaska Shield and the Disability Abuse Response Team. Provided 317 pregnancy tests with 52 positive. KPHC provided prenatal consultation visits for at risk pregnant families. KPHC staff coordinated care for pregnant women and provided outreach for thedenali Kid Care Program. Disaster preparedness continues to be the focus of many KPHC meetings and trainings. KPHC participates in the Local EmergencyPlanning Committee (LEPC). For 2016, KPHC collaborated with state and local partners to bring the Earthquake cabin to Ketchikan and promote this event around a Saturday preparedness fair at the plaza mall. KPHC also collaborated with the KGBSD to sign an OPEN Point of Dispensing agreement in case of mass antibiotic dispensing is needed from the national strategic stockpile. Provided infant and children s services through newborn home visits to new parents as well as home visits to families in need of parenting assistance. Clinic services were provided to infants and children. 920 children received services with a total of 1,212 visits. Provided health promotion and education to citizens through individual encounters, radio spots, newspaper articles and classes at the schools, immunization clinics, civic groups and the local health fair. 861immunizations were given to adults and children. 223 flu vaccines were given to individuals of all ages based upon need and lack of alternate resource availability. Assisted the school population by consulting with the school administration and supplementing the health curriculum with presentations by a public health nurse. The KPHC has served as consultants on issues such as reproductive health, lice, scabies, immunizations, communicable diseases and blood borne pathogens. Public Health Nurses also worked with the counselors and referred students to other resources as needed. Investigated and followed up on communicable diseases. TB tests were administered to 228 clients. Public Health Nurses continued to case manage TB clients and dispense TB medication. Participated in the Little Alaskan Dream Box project in partnership with Peace Health and First Bank. Provided screening, diagnosis and treatment for persons with sexually transmitted infections(sti);434 clients were screened for an STI. Provided HIV testing for 172 visits. The KPHC continues to record no new positive HIV tests although it did follow up with 37 cases of Chlamydia. There were 0 positive gonorrhea cases. Provided women s health care (family planning, cancer screening and other services) for 235 clients with 656 visits. The KPHC continues to provide family planning services in Petersburg, Wrangell and Craig Public Health Centers. L - 3

145 Public Health Public Health Center Operations DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies 1,546 6,000 6,000 3,760 6, % Contract/Purchased Services 5,069 6,825 6,825 6,450 6, % Minor Capital Outlay 1,500 1,500 1,230 1, % Total Expenditures 6,615 14,325 14,325 11,440 14, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Tax Support 6,615 14,325 14,325 11,440 14, % Total Funding 6,615 14,325 14,325 11,440 14, % 2017 Expenditures by Type 10.5% 41.9% Supplies 47.6% Contract/Purchased Services Minor Capital Outlay OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. There are no significant changes between the adopted operating budget for 2016 and the proposed operating budget for L - 4

146 Public Health Public Health Center Operations DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Office Supplies 181 1,000 1, , % Operating Supplies 729 4,000 4,000 2,000 4, % Building & Grounds Maint Materials % Furniture & Fixtures Maint Materials % Machinery & Equip Maint Materials % Professional and Technical Publications % Supplies 1,546 6,000 6,000 3,760 6, % Contract/Purchased Services Ads and Public Announcements % Professional Licenses & Certifications % Building & Grounds Maintenance Services 5,039 5,325 5,325 5,200 5, % Contract/Purchased Services 5,069 6,825 6,825 6,450 6, % Minor Capital Furniture and Fixtures 1,000 1, , % Machinery and Equipment % Software % Minor Capital Outlay 1,500 1,500 1,230 1, % Total Expenditures by Type 6,615 14,325 14,325 11,440 14, % NARRATIVE Office Supplies: $1,000 This account provides for paper, pens, pencils, adding machine ribbons and tape, note pads, file folders, scotch tape, toner, ink cartridges, photocopy charges, small desk accessories and minor office equipment such as adding machines, staplers, comb binding machines and tape dispensers Operating Supplies: $4,000 This account provides for supplies that are normally not of a maintenance nature and are required to support department operations. Included are supplies such as brochures, medical supplies, laboratory supplies, posters and general materials for classes and public programs Building and Grounds Maintenance Materials: $100 This account provides for materials required for the repair and maintenance of buildings and upkeep of the grounds owned or leased and operated by the State of Alaska Department of Health and Social Services Furniture and Fixtures Maintenance Materials: $100 This account provides for materials required for the repair and maintenance of furniture and building fixtures owned or leased and operated by the State of Alaska Department of Health and Social Services Machinery and Equipment Maintenance Materials: $300 This account provides for materials required for the repair and maintenance of machinery and equipment owned or leased and operated by the State of Alaska Department of Health and Social Services. Included are office equipment, operating equipment, computer networks and computers Professional and Technical Publications: $500 This account provides for professional and technical publications. Included are professional handbooks, print and electronic subscription services and professional standards and technical journals. L - 5

147 Public Health Public Health Center Operations Ads and Public Announcements: $750 This account provides for advertising and announcements in publications, newspapers, Internet or broadcasts over radio and television. Included are legal notices, public service announcements and community issues Professional and Technical Licenses: $750 This account provides for licensing professional, technical and other employees requiring a license in order to perform their duties. Included are fees paid for technicalcertifications required by medical technicians Buildings and Grounds Maintenance Services: $5,325 This account provides for contractual services required for the repair and maintenance of buildings and the upkeep of grounds owned or leased by the State of Alaska Department of Health and Social Services. This account includes contract labor and materials required to provide the service Furniture and Fixtures: $1,000 This account provides for acquisition of furniture and fixtures. Included are desks, chairs, tables, workstations, file cabinets, storage cabinets and building fixtures Machinery and Equipment: $250 This account provides for the acquisition of machinery and equipment usually composed of a complex combination of parts. Included are office equipment, computer equipment and operating equipment required to provide services or maintain capital assets Software: $250 This account provides for acquisition of software systems and upgrades not covered by maintenance agreements. L - 6

148 Public Health Health Care Operations DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies 15,000 15,000 15,000 15, % Contract/Purchased Services 9,859 23,000 23,000 23,000 23, % Interdepartmental Charges 3, (60) 7.5% Total Expenditures 13,344 38,800 38,800 38,740 38,740 (60) 0.2% Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % Hospital Sales Tax Fund 13,344 38,800 38,800 38,740 38,740 (60) 0.2% Total Funding 13,344 38,800 38,800 38,740 38,740 (60) 0.2% 2017 Expenditures by Type 1.9% 59.4% 38.7% Supplies Contract/Purchased Services Interdepartmental Charges OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. There are no significant changes between the adopted operating budget for 2016 and the proposed operating budget for DIVISION OPERATING BUDGET DETAIL Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Building & Grounds Maint Materials 15,000 15,000 15,000 15, % Supplies 15,000 15,000 15,000 15, % Contract/Purchased Services Buildings & Grounds Maint Services 9,859 23,000 23,000 23,000 23, % Contract/Purchased Services 9,859 23,000 23,000 23,000 23, % L - 7

149 Public Health Health Care Operations Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Interdepartmental Charges Interdepartmental Charges Insurance 3, (60) 7.5% Interdepartmental Charges 3, (60) 7.5% Total Expenditures by Type 13,344 38,800 38,800 38,740 38,740 (60) 0.2% NARRATIVE Building and Grounds Maintenance Materials: $15,000 This account provides for the materials required for minor repair and maintenance of buildings and upkeep of the grounds of the Ketchikan Medical Center Buildings and Grounds Maintenance Services: $23,000 This account provides for contractual services required for the minor repair and maintenance of buildings and the upkeep of grounds of the Ketchikan Medical Center. This account includes contract labor and materials required to provide the service Interdepartmental Charges Insurance: $740 This account provides for a policy to protect the City from pollution liability claims arising from the existence of an underground oil tank located near the Ketchikan Medical Center. L - 8

150 Public Health Capital Budget Budget Adopted/2017 Major Capital Projects Actual Adopted Amended Estimate Budget Incr(Decr) % Buildings 5,264,710 5,528,900 5,528,900 2,877,551 3,099,860 (2,429,040) 43.9% Other Capital Assets 225, , , % Total Major Capital Outlay 5,264,710 5,753,900 5,753,900 2,877,551 3,324,860 (2,429,040) 42.2% 2017 Capital Improvement Projects Funding Sources Project # Project Hospital Sales Tax Grants Bonds Total Buildings Ketchikan Medical Center Expansion Phase II 2,694,860 2,694,860 KMC Long Term Care Unit Roof Repair 405, ,000 Total Buildings 405,000 2,694,860 3,099, Other Capital Assets GCHS Bldg & Grounds Renovations 225, ,000 Total Other Capital Assets 225, ,000 Total 2017 Capital Budget 630,000 2,694,860 3,324,860 Expenditures by Type 7% Expenditures by Funding Source 19% 93% Buildings Other Capital Assets 81% Hospital Sales Tax Bonds L - 9

151 Library Summary The Ketchikan Public Library provides informational, educational and recreational materials and services for the people of Ketchikan. This is accomplished through development, maintenance, and promotion of materials, physical spaces, and programs receptive to the diverse interests and needs of the community. Library Adult/Technical Services Outreach Services Children's Services First City Libraries UAS Library Library Building O&M Capital Improvement Program The Library Department is comprised of six operating divisions and oversees one Capital Improvement Program. DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Adult Technical Services 584, , , , ,672 6, % Outreach Services 89,263 94,419 94,119 82,733 94,083 (336) 0.4% Children's Services 300, , , , ,936 7, % First City Libraries 45,440 52,475 52,475 46,702 58,947 6, % UAS Library 168, , , , ,197 (25,608) 12.9% Library Building O&M 118, , , , ,850 (6,309) 5.2% Grants 9,050 9,650 16,550 16,550 9,000 (650) 6.7% Total 1,315,203 1,417,656 1,422,956 1,345,658 1,404,685 (12,971) 0.9% Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 971,816 1,033,849 1,024, ,706 1,044,859 11, % Supplies 154, , , , ,570 (4,891) 2.9% Contract/Purchased Services 175, , , , ,979 (14,067) 7.5% Minor Capital Outlay 8,204 14,300 13,430 10,840 4,550 (9,750) 68.2% Interdepartmental Charges/Reimb Credits 5,534 11,000 13,269 8,180 15,727 4, % Total 1,315,203 1,417,656 1,422,956 1,345,658 1,404,685 (12,971) 0.9% Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Property Taxes 720, , , , , % Charges for Services KGB 381, , , , ,962 10, % Charges for Services KGBSD 21,603 22,800 22,800 20,300 25,620 2, % Charges for Services UAS 168, , , , ,197 (25,608) 12.9% Charges for Services Other 13,587 13,200 13,200 13,200 13, % Grants 9,050 9,650 16,550 16,550 9,000 (650) 6.7% Total 1,315,203 1,417,656 1,422,956 1,345,658 1,404,685 (12,971) 0.9% M - 1

152 Library Summary Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Adult Technical Services , % Outreach Services , % Children's Services , % UAS Library ,964 (0.050) 2.9% Total ,839 (0.050) 0.4% M - 2

153 Library Adult/Technical Services Division MISSION STATEMENT The Adult and Technical Services Division serves the needs of the community in three ways. It makes books, ebooks, magazines, videotapes, audiobooks, CDs, DVDs and electronic resources of the Internet available to library users. It provides reference and readers advisory services to meet the needs of patrons. The division also performs the cataloging, processing and repair functions required to categorize and classify materials, in order to prepare them for circulation and to return them to circulation if they are damaged. Collection areas receiving special attention are Alaskana, popular fiction, crafts, do it yourself, marine, travel, small business, health, consumer electronics and the Internet. Materials are selected from professional reviews and from patron requests. The collection is regularly evaluated for currency and relevancy. Staff of the Adult and Technical Services Division do the majority of cataloging, processing and repairing of library materials for the entire department. Library Director Adult/Tech Librarian Office Manager Library Assistant II (1.0) Library Assistant I (2.5) Page (.75) GOALS FOR 2017 Expand offering of educational programs for adults. Continue staff development and training by having all staff attend the 2017 Alaska Library Association Conference. Partner with local organizations to present adult programming. Maintain currency and relevancy of adult collection. Conduct inventory of entire library collection. ACCOMPLISHMENTS FOR 2016 Circulated over 174,000 items, with a per capita circulation rate of This is almost double the average per capita circulation for Alaskan libraries with a service population over 10,000 (Alaska Public Library Statistics, Welcomed over 94,000 people into the library, with a monthly average of 7,304 visitors during the winter and 9,750 visitors during the summer. Provided Internet access for over 10,000 people to file PFD applications, take online classes, print tax forms, download ebooks, make travel arrangements, pay bills, check Facebook and fulfill other educational, personal and entertainment needs. Created 768 new patron accounts in the past year, including 120 temporary patrons. This is a 10% increase in new library users. M - 3

154 Library Adult/Technical Services Division Registered 111 patrons for the Adult Summer Reading Club, which encourages adults to expand their normal reading tastes and format use. The theme for this year s club was Exercise Your Mind. Encouragedstaff development and training with anumber of different educational opportunities: o All staff participated in first aid and CPR training, as well as training on the use of the AED defibrillator. o The Adult Services Librarian attended the Public Library Association annual conference, attending sessions on staff training, reader s advisory, library services for veterans and senior citizens, library technologies and self publishing. o Staff received training on the checkout and use of Ketchikan Volunteer Rescue Squad SPOT GPS locator beacons. The library is one of 3 distribution sites for the beacons. o Staff received refreshertraining on using the Mango Languages database. Circulated over 13,000 digital ebooks and audiobooks through the Alaska Digital Library consortium, which was originally called ListenAlaska. This is 38% increase from last year. Partnered with the Ketchikan Volunteer Rescue Squad to be a distribution site for SPOT locator beacons. These GPS devices were checked out over 100 times during 2016 to hikers, hunters, kayakers and fishermen. Provided meeting space to dozens of different community organizations, including PeaceHealth, Ketchikan Killer Whales, SE AHEC, Southeast Strummers, SEANET, Food Bank of Alaska, AARP, KGB School District, Boy Scouts, Girl Scouts, the Ketchikan Community Foundation, the Ketchikan Garden Club, the Breastfeeding Support Group and the Ketchikan Kanayama Exchange. Library meeting rooms were used by community groups an average of 22 times a month in 2016, a 29% increase from Hosted 6 author events, which wereattended byover 190people. Partnered with the Ketchikan Wellness Coalition to present a series of films and group discussions during Suicide Awareness Month. Taught 6 Introduction to Computers classes, covering basic computer use, , Facebook and Internet searching. Partnered with local gardeners to offer the first ever Community Seed Swap, as well as the Second Annual Solstice Flower Show. Provided quiet study rooms to over 800 people. Promoted library services and registered new military families for library accounts at the Coast Guard "Welcome to Ketchikan" night. Proctored over two dozen exams for patrons engaged in distance education opportunities. Sent 1,388 items to local area schools for the use of students and teachers during the school year, an average of 154 items per month. Updated the library's collection of language learning and ESL materials, as well as conducting a tour of library services for the local ESL class. Conducted inventory of entire adult library collection, approximately 50,000 items. DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 484, , , , ,356 15, % Supplies 82,172 95,476 93,476 84,875 89,750 (5,726) 6.0% Contract/Purchased Services 14,804 12,926 20,186 16,381 10,466 (2,460) 19.0% Minor Capital Outlay 587 NA Interdepartmental Charges 2,160 5,000 5,000 2,640 4,100 (900) 0.0% Total Expenditures 584, , , , ,672 6, % M - 4

155 Library Adult/Technical Services Division Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Property Taxes 370, , , , ,872 (415) 0.1% Charges for Services KGB 200, , , , ,600 6, % Charges for Services Other 13,587 13,200 13,200 13,200 13, % Total Funding 584, , , , ,672 6, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Director , % Adult Technical Services Librarian , % Library Office Manager , % Library Assistant II , % Library Assistant I , % Page , % Total , % 14.32% 1.67% 0.65% 2017 Expenditures by Type Personnel Services and Benefits Supplies Contract/Purchased Services Interdepartmental Charges 83.36% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $15,521, or by 3.1%, due to annual employee step increases; a 2.0% cost of living adjustment for IBEW, Local 1547 employees and non represented employees that will become effective January 1, 2017; and increased employee health insurance co pays for non represented employees that became effective July 1, M - 5

156 Library Adult/Technical Services Division DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 287, , , , ,476 9, % Temporary Wages 14,998 17,000 17,000 14,990 17, % Payroll Taxes 21,726 24,230 24,230 22,600 24, % Pension 52,001 51,460 51,460 51,100 52,770 1, % Health and Life Insurance 100, , , , ,150 2, % Workers Compensation 1,306 1,650 1,650 1,520 1,510 (140) 8.5% Other Benefits 6,569 8,350 8,350 8,350 9,470 1, % Personnel Services and Benefits 484, , , , ,356 15, % Supplies Office Supplies 3,924 6,800 6,800 6,600 6,500 (300) 4.4% Operating Supplies 8,920 7,600 7,600 7,000 8, % Small Tools and Equipment % Food/Catering % Postage 3,276 3,100 3,100 3,000 3,000 (100) 3.2% Library Books 34,947 56,000 55,300 48,000 52,000 (4,000) 7.1% Periodicals 4,225 5,700 6,200 6,000 6, % Movies and Visual Series 4,325 6,000 4,000 4,000 4,200 (1,800) 30.0% Audio and Digital Books 19,943 8,126 8,126 8,000 8,000 (126) 1.6% Music 1,843 1,500 1,500 1,500 1,200 (300) 20.0% Business and Meal Expenses % Supplies 82,172 95,476 93,476 84,875 89,750 (5,726) 6.0% Contract/Purchased Services Travel Training 4,994 2, (2,200) 100.0% Training and Education 2, ,500 1, % Ads and Public Announcements ,310 9, % Assn. Membership Dues & Fees 1,654 1,200 1,200 1,000 1, % Bank and Merchant Fees % Broadcast Content Fees % Software Licenses % Service Charges and Fees % Subscription Services 3,400 5,600 5,600 4,400 4,500 (1,100) 19.6% Technical Services 1,533 2,250 2, ,000 (250) 11.1% Contract/Purchased Services 14,804 12,926 20,186 16,381 10,466 (2,460) 19.0% Minor Capital Furniture and Fixtures 115 NA Computers, Printers & Copiers 472 NA Minor Capital Outlay 587 NA Interdepartmental Charges Interdepartmental Insurance 2,160 5,000 5,000 2,640 4,100 (900) 18.0% Interdepartmental Charges 2,160 5,000 5,000 2,640 4,100 (900) 18.0% Total Expenditures by Type 584, , , , ,672 6, % M - 6

157 Library Adult/Technical Services Division NARRATIVE Regular Salaries and Wages: $309,476 This account provides for compensation paid to all regular salaried and hourly employees of the Adult/Technical Services Division Temporary Wages: $17,000 This account provides for compensation paid to salaried and hourly employees for temporary personnel services. Substitute library assistants, who are called in year round to fill in when regular staff are sick or on vacation, are paid from this account Payroll Taxes: $24,980 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $52,770 This account provides for employer contributions to retirement plans Health and Life Insurance: $107,150 This account provides for employer contributions to employee health and life insurance plans. Included are contributions to health plans administered by Blue Cross and the IBEW Alaska Health and Welfare Trust, and employee life insurance plans Workers Compensation: $1,510 This account provides for employer contributions to workers compensation Other Benefits: $9,470 This account provides for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Office Supplies: $6,500 This account provides for paper, pens, pencils, adding machine ribbons and tape, note pads, file folders, scotch tape, toner, ink cartridges, photocopy charges, small desk accessories and minor office equipment such as adding machines, staplers, comb binding machines and tape dispensers Operating Supplies: $8,000 This account provides for supplies that are normally not of a maintenance nature and are required to support library operations. This includes supplies associated with the processing of books, videos, CDs, and other library materials to prepare them for circulation or for mending damaged items, such as plastic covers, special glues and tape, stamps, labels, plastic boxes, cleaning equipment and supplies, and security system supplies. The account also covers general materials for classes and public programs Small Tools and Equipment: $100 This account provides for minor tools, operating and office equipment with a value of less than $1, Food/Catering: $250 This account provides for food for library programs, such as coffee and cookies during author presentations Postage: $3,000 This account provides for the cost of mailing interlibrary loan items, library mailings, overdue and lost item notices to patrons, and monthly event calendars to local organizations Library Books: $52,000 This account provides for the acquisition of books and print materials for the library collection. Included are books, maps, nautical charts, and other print materials Periodicals: $6,000 Thisaccount providesfor newspapers, magazines, and trade journals Movies and Visual Series: $4,200 This account provides for the acquisition of DVDs for the library collection. Included are educational and entertainment selections Audio and Digital Books: $8,000 This account provides for the acquisition of books in electronic or digital format for patron use. Included are books on CDs, Playaways, e books, online audiobooks, online music, and other similar forms of electronic media. M - 7

158 Library Adult/Technical Services Division Music: $1,200 This account provides for the acquisition of music CDs for the library collection Business and Meal Expenses: $500 This account provides for reimbursement to employees for mileage for use of personal vehicle used to empty the bookdrop at the Plaza Mall, delivery of Interlibrary Loan packages to the post office, and document delivery and pickup to and from the Library and City Hall Training and Education: $1,500 This account provides for registration fees for conferences associated with training and educating employees. Ketchikan will be hosting the annual Alaska Library Association conference in February 2017, and staff will therefore not need to travel. This budget line item includes registration for the library conference in Ketchikan. Because this is a low cost opportunity to participate in a variety oflibrary related workshops, all the staff will be registered for this conference Ads and Public Announcements: $350 This account provides for advertising and announcements in publications, newspapers, trade journals, Internet or broadcasts over radio and television. This will cover recruitment to fill library positions if they become vacant Assn. Dues and Membership Fees: $1,200 This account provides for memberships in professional associations, such as the Alaska Library Association, the Association of Rural and Small Libraries, and the Alaska Library Network. These memberships allow staff to stay current in the field and provide discounts for training and educational opportunities Bank and Merchant Fees: $140 This account provides for the service fees charged to the library for providing the library with the ability to receive fines and fees payments from patrons using their debit or credit cards Broadcast Content Fees: $250 This account provides for the right to broadcast copyrighted intellectual property. The library has a license to show films during public programs Software Licenses: $426 This account provides for acquiring licenses for the right to use proprietary software. The library uses PC Reservation to allocate public access on the library computers Service Charges and Fees: $100 This account provides for miscellaneous service charges and fees. Included are service charges for collection agency services used to recover outstanding debts for lost and damaged materials Subscription Services: $4,500 This account provides for subscriptions for access to web based services. The library provides patron access to Alaska Digital Library, Mango Languages, Home Improvement Collection, Cypress Resume and Gale LegalForms Technical Services: $2,000 This account provides for contractual services not identified in the count classifications under contractual services, such as fees for visiting authors and instructors of educational programs for adults Interdepartmental Charges Insurance: $4,100 This account provides for risk management services and claims. M - 8

159 Library Outreach Services Division MISSION STATEMENT The Outreach Services Division of the Ketchikan Public Library provides services to the blind, physically handicapped, the homebound and to the residents of institutions such as the Pioneer Home, New Horizons Long Term Care, SeaView Terrace, The Manor Assisted Living Center, and to the inmates of the Ketchikan Correctional Center. The Outreach Librarian maintains the Correctional Center Library, the large print collection at the Public Library and is the local coordinator for the Alaska State Talking Book program. Library Director Outreach Librarian GOALS FOR 2017 Discover new homebound patrons. Encourage those who obtain release from correctional center to visit the library. Provide appropriate magazines to Pioneer Home, New Horizons and The Manor. Continue to service the Bookshare locations and be vigilant for new opportunities for that service. Continue to facilitate meetings of agencies and organizations that assist seniors and others with physical challenges. Present slide programs on interesting topics for persons with limited accessibility to community events. Lead an educational program on downloading e books from Alaska Digital Library to Kindles and other devices. Distribute appropriate donated and discarded materials to WISH, KCC and gathering places for seniors. Maintain library Twitter and Tumblr accounts. Assist other library divisions and activities whenever needed. ACCOMPLISHMENTS FOR 2016 Continued to facilitate meetings of agencies and organizations that assist seniors and others with physical challenges, including participating in the annual Senior Picnic and the second annual Resource Fair. Serviced the Bookshare locations at South Tongass Service Station and Ketchikan Recreation Center. Provided service to new patrons. Presented slide show programs at Ketchikan Pioneer Home, Ketchikan Correctional Center, Ketchikan Regional Youth facility and Ketchikan Public Library on trip to Cuba. Assisted patrons with accessing the library through Alaska Digital Library on an assortment of devices. Assisted patrons with the transition of the Talking Book Center from the State Library to an outside provider. Delivered Talking Books to patron without mail access. Assisted new patrons with using the Talking Book service. M - 9

160 Library Outreach Services Division Worked diligently at improving customer service skills, including completion of an online course and attendance at a Mental Health First Aid course. Distributed select discarded and donated materials to The Manor, WISH, KCC, KRYF and the KIC senior lunch program. Maintained Twitter and Tumblr accounts of the Ketchikan Public Library, posting library news and activities and providing a variety of inspirational, informative or humorous postings passed 2000 post milestone on both accounts. DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 77,287 82,461 79,501 68,980 82, % Supplies 7,861 8,623 8,623 8,348 8,070 (553) 6.4% Contract/Purchased Services 1,211 1,535 1,926 1, (1,175) 76.5% Minor Capital Outlay % Interdepartmental Charges 2,432 1,800 4,069 3,580 2,890 1, % Total Expenditures 89,263 94,419 94,119 82,733 94,083 (336) 0.4% Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Property Taxes 59,465 60,669 60,249 53,533 59,763 (906) 1.5% Charges for Services KGB 29,798 33,750 33,870 29,200 34, % Total Funding 89,263 94,419 94,119 82,733 94,083 (336) 0.4% Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Director , % Outreach Librarian , % Total , % 2017 Expenditures by Type 8.58% 0.38% 3.07% Personnel Services and Benefits Supplies 87.97% Contract/Purchased Services Interdepartmental Charges M - 10

161 Library Outreach Services Division OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. There are no significant changes between the adopted operating budget for 2016 and the proposed operating budget for DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 48,856 54,321 51,361 46,130 54, % Payroll Taxes 3,482 4,130 4,130 3,340 4, % Pension 9,726 10,400 10,400 8,730 10,320 (80) 0.8% Health and Life Insurance 9,394 9,400 9,400 7,050 9, % Workers Compensation 1,948 2,700 2,700 2,220 2,520 (180) 6.7% Other Benefits 3,881 1,510 1,510 1,510 1, % Personnel Services and Benefits 77,287 82,461 79,501 68,980 82, % Supplies Office Supplies % Operating Supplies % Vehicle Motor Fuel and Lubricants % Library Books 6,985 7,123 7,123 7,123 6,900 (223) 3.1% Periodicals % Audio and Digital Books (630) 84.0% Business and Meal Expenses New Supplies 7,861 8,623 8,623 8,348 8,070 (553) 6.4% Contract/Purchased Services Travel Training 894 1, (1,200) 100.0% Training and Education % Ads and Public Announcements New Assn Membership Dues and Fees (50) 50.0% Vehicle Licenses % Service Charges and Fees % Contract/Purchased Services 1,211 1,535 1,926 1, (1,175) 76.5% Minor Capital Computers, Printers & Copiers 472 NA Minor Capital Outlay 472 NA Interdepartmental Charges Interdepartmental Charges Insurance 499 1,000 1, (110) 11.0% Interdepartmental Charges Garage 1, ,069 3,000 2,000 1, % Interdepartmental Charges 2,432 1,800 4,069 3,580 2,890 1, % Total Expenditures by Type 89,263 94,419 94,119 82,733 94,083 (336) 0.4% M - 11

162 Library Outreach Services Division NARRATIVE Regular Salaries and Wages: $54,403 This account provides for compensation paid to all regular salaried and hourly employees of the Outreach Services Division Payroll Taxes: $4,170 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $10,320 This account provides for employer contributions to retirement plans Health and Life Insurance: $9,690 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $2,520 This account provides for employer contributions toworkers compensation Other Benefits: $1,660 This account provides for expenditures for direct claims from former employees for unemployment benefits paid bythe Stateof Alaska and accrued vacation and sick leave Office Supplies: $50 This account provides for paper, pens, pencils, note pads, file folders, scotch tape, toner, ink cartridges, and small desk accessories such as staplers and tape dispensers Operating Supplies: $50 This account provides for supplies that are normally not of a maintenance nature and are required to support department operations. Included are supplies such as brochures, library circulation preparation materials, posters, and general materials for classes and programs Vehicle Motor Fuel and Lubricants: $150 This account provides for gasoline and lubricants used in the operation of the library van Library Books: $6,900 This account provides for the acquisition of large print books for the library collection Periodicals: $525 This account provides for newspapers and magazines Audio and Digital Books: $120 This account provides for the acquisition of books in electronic or digital format for patron use. Included are books on CDs, Playaways, e books, online audiobooks, online music and other similar forms of electronic media Business and Meal Expenses: $275 This account provides for reimbursement to employees for mileage for use of personal vehicle used to empty the bookdrop at the Plaza Mall, and to deliver library materials to homebound patrons and various institutions Training and Education: $200 This account provides for registration fees for conferences associated with training and educating employees. Ketchikan will be hosting the annual Alaska Library Association conference in February 2017, and the Outreach Librarian will therefore not need to travel. This budget line item includes registration for the library conference in Ketchikan Assn Membership Dues and Fees: $50 This account provides for memberships in professional and trade associations. Included are membership dues for the Alaska Library Association, the Association of Bookmobile and Outreach Services and the Association of Rural and Small Libraries Vehicle Licenses: $10 This account provides for licensing the library van for operations on public highways Service Charges and Fees: $100 This account provides for miscellaneous service charges and fees. Included are service charges for collection agency services used to recover outstanding debts for lost and damaged materials. M - 12

163 Library Outreach Services Division Interdepartmental Charges Insurance: $890 This account provides for risk management services and claims Interdepartmental Charges Garage: $2,000 This account provides for library van maintenance services provided by the Public Works Department Garage Division. M - 13

164 Library Children's Services Division MISSION STATEMENT The Children's Services Division serves all the children and teens of the community with recreational and informational materials. Instilling a love of books and reading at an early age is the best way to combat illiteracy. In addition to children, the division serves all those who need children's materials in a variety of print and electronic formats, including parents and early childhood educators. The Children s Services Division strives to offer dynamic, educational programming that promotes library use as well as family and community engagement. Library Director Children's Librarian Library Assistant II (1.0) Library Assistant I (.925) Page (.30) Programming: GOALS FOR 2017 Increase participation in the children s winter reading program; Continue to collaborate with Ketchikan Gateway Borough Parks and Recreation to provide structured weekly programs to summer camp participants and to offer support services for an after school homework program; Partner with local artists to offer art themedprogramsfor youth; Partner with dance, yoga and gymnastic instructors to provide movement programs for preschoolers; Offer daily activities during winter and spring break for school age children; and Bring dynamic performers and authors to the library during the summer of 2017 to increase awareness of, and participation in, the summer reading program. Library Services: Apply for a grant to build a small community garden to be used for children s programming purposes; Provide a library presence at community events such as the Back to School Round Up, Coast Guard Meet and Greet, Pet and Doll Parade and the Head Start Carnival; Continue working with Community Connections to expand and promote the Ketchikan Passport for Kids and Watch Me Grow child development programs; and Develop, maintain and update the children s and young adult collections in response to community needs. M - 14

165 Library Children's Services Division Professional Development: Have children s library staff attend the Alaska Library Association Annual Conference, which will be held in Ketchikan in 2017; and Participate in continuing education courses and webinars relevant to the library profession, specifically children's services, crowd/classroom management, storytime related topics and pre teenservices. Improved Public Programming: ACCOMPLISHMENTS FOR 2016 Partnered with community agencies and organizations to present a monthly, educational Family Night program for schoolage children and their families. Participating organizations included: o City of Ketchikan Museum Department o Community Connections Early Learning Program o Financial Foundations Task Force (Ketchikan Wellness Coalition) o Island to Island Veterinary Clinic o Ketchikan Gateway Borough Animal Protection o Ketchikan Humane Society o Ketchikan Volunteer Search and Rescue Squad o SARDFA (Southeast Alaska Regional Dive Fisheries Association) o South Tongass Service o USDA Forest Service Partnered with the Ketchikan Theatre Ballet to provide Introduction to Ballet classes for youth, as well as performances of Winnie the Pooh, Sleeping Beauty and The Nutcracker ; Offered 116 after school and weekend activities to 3,485 children; Registered497childrenunder the age of12 for the annual Summer Reading Program; Offered 90 public storytime programs to 4,274 participants; Registered 74school age children for a Winter Break Reading Program; Participated in the national Hour of Code program for kids, offering a computer coding class for 8 12year olds; Partnered with the City of Ketchikan Fire Department and Police Department to provide educational programs for young children; Collaborated with Community Connections Early Learning Program to offer free developmental screenings for 0 3 year olds and baby massage classes at the library throughout the year; Received a grant from the Friends of the Ketchikan Public Library to purchase prizes and supplies for summer reading program events; Began to consistently offer monthly pre teen programming for kids ages 9 12; Made storytime more educational by focusing on STEM (science, technology, engineering and math) themes throughout the summer and early literacy themes throughout the school year; Provided 46 storytime programs to 662 Tlingit/Haida and Ketchikan Head Start students; Successfully solicited local organizations and individuals to provide supplies free of charge for children s crafts and activities; Visited every school in Ketchikan and spoke to nearly every school age child to promote the library s Summer Reading Program; Partnered with a local musician to provide music workshops for school age children; Participated in thestatewide Battle ofthe Books in conjunction with the Ketchikan Gateway Borough School District libraries; Provided 44 preschool crafts to 908 children under the age of 5; Hosted 19 class visits for 300 K 12 students; Offered digital skills training for children on AWE early literacy stations; Hosted 10 library visits for 460 Ketchikan Gateway Borough Summer Camp participants; and Continued and expanded the Read Away Your Fines program, allowing 380 children to read away $948 in fines. M - 15

166 Library Children's Services Division Library Services: Received a grant from First City Rotary to purchase 400+ books to be distributed to local children through the library s Family Night program; Updated the children s picture book, board book, juvenile fiction and teen collections; Continued the Born to Read program, providing board books and early literacy information to new parents at the Peace Health Ketchikan Medical Center; Receiveda state grant toprovide Alaska themed books for the children s library; Conducted an inventory of the entire children s and young adult collections; and Received an early literacy grant to provide new board books for the children s library. Professional Development: Children s Librarian attended the statewide Alaska Library Association Annual Conference; Children s Librarian obtained a Continuing Education grant to attend the national Public Library Association Conference; Children s Librarian completed the 6 week course Library Space and Behavior and the 4 week course Building Collections Library Assistant II participated in a space related webinar hosted by NASA; and Children s Librarian attended the webinars: Supervising the Youth Services Department, Communication in the Youth Services Department and Money Smart Week DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 257, , , , ,586 7, % Supplies 31,978 33,463 31,663 29,975 33,400 (63) 0.2% Contract/Purchased Services 6,349 10,850 13,580 9,120 10, % Minor Capital Outlay 3,368 1,000 1,000 1,000 1, % Interdepartmental Charges 1,077 2,500 2,500 1,330 2,060 (440) 17.6% Total Expenditures 300, , , , ,936 7, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Property Taxes 198, , , , ,946 2, % Charges for Services KGB 101, , , , ,990 4, % Total Funding 300, , , , ,936 7, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Director , % Children's Librarian , % Library Assistant II , % Library Assistant I , % Page , % Total , % M - 16

167 Library Children's Services Division Expenditures by Type 10.2% 3.3% 0.3% 0.6% Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges 85.6% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $7,488, or by 2.7%, due to annual employee step increases; a 2.0% cost of living adjustment for IBEW, Local 1547 employees and non represented employees that will become effective January 1, 2017; and increased employee health insurance co pays for non represented employees that became effective July 1, Other Contractual Services (Account No ) increased by $5,200, or by 260%, due to an overwhelming response to programs for children by visiting performers. This is offset by a $5,300 decrease in travel and training funds, because the 2017 state library association conference will be held in Ketchikan. DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 144, , , , ,996 4, % Temporary Wages 5,799 8,500 8,500 6,560 8, % Payroll Taxes 10,837 12,210 12,210 11,220 12, % Pension 28,309 28,320 28,320 27,330 29, % Health and Life Insurance 67,237 69,300 69,300 63,780 71,010 1, % Workers Compensation (70) 8.4% Other Benefits 539 4,140 4,140 4,140 4, % Personnel Services and Benefits 257, , , , ,586 7, % Supplies Office Supplies 1,254 1,100 1,100 1,100 1, % Operating Supplies 4,257 4,500 4,250 4,250 4, % Small Tools and Equipment % Food/Catering % Library Books 14,294 18,900 18,900 18,000 20,000 1, % Periodicals 1,010 1,000 1,000 1,000 1, % Movies and Visual Series 3,773 4,163 2,613 2,000 2,400 (1,763) 42.3% Audio and Digital Books 5,339 2,000 2,000 2,000 2, % Music 1,133 1,000 1,000 1,000 1, % Software (100) 100.0% Business and Meal Expenses % Supplies 31,978 33,463 31,663 29,975 33,400 (63) 0.2% M - 17

168 Library Children's Services Division Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Contract/Purchased Services Travel Training 2,533 5,000 3, (4,300) 86.0% Training and Education 1,464 2,500 2,500 1,000 1,500 (1,000) 40.0% Ads and Public Announcements ,330 1, % Assn Membership Dues & Fees % Bank and Merchant Fees % Broadcast Content Fees % Service Charges and Fees % Other Contractual Services 1,165 2,000 5,000 5,000 7,200 5, % Contract/Purchased Services 6,349 10,850 13,580 9,120 10, % Minor Capital Furniture and Fixtures 2,911 1,000 1,000 1,000 1, % Computers, Printers & Copiers 457 NA Minor Capital Outlay 3,368 1,000 1,000 1,000 1,000 NA Interdepartmental Charges Interdepartmental Charges Insurance 1,077 2,500 2,500 1,330 2,060 (440) 17.6% Interdepartmental Charges 1,077 2,500 2,500 1,330 2,060 (440) 17.6% Total Expenditures by Type 300, , , , ,936 7, % NARRATIVE Regular Salaries and Wages: $154,996 This account provides for compensation paid to all regular salaried and hourly employees of the Children's Services Division Temporary Wages: $8,500 This account provides for compensation paid to temporary salaried and hourly employees of the Children's Services Division Payroll Taxes: $12,510 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $29,060 This account provides for employer contributions to retirement plans Health and Life Insurance: $71,010 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $760 This account provides for employer contributions to workers compensation Other Benefits: $4,750 This account provides for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Office Supplies: $1,100 This account provides for paper, pens, pencils, note pads, file folders, scotch tape, toner, ink cartridges, photocopy charges, small desk accessories, and minor office equipment such as staplers, scissors, and tape dispensers Operating Supplies: $4,500 This account provides for supplies that are normally not of a maintenance nature and are required to support department operations. Included are the majority of arts and crafts supplies for the numerous children s and teen programs, as well as promotional materials, educational games and toys for the children and teen areas, and small prizes. M - 18

169 Library Children's Services Division Small Tools and Equipment: $300 This account provides for minor tools, operating and office equipment with a value of less than $1, Food/Catering: $200 This account provides for food or catering services for children s programs Library Books: $20,000 This account provides for the acquisition of books and print materials for the library collection. Included are books and other print materials Periodicals: $1,000 This account provides for newspapers, magazines and trade journals Movies and Visual Series: $2,400 This account provides for the acquisition of DVD and other format films and television series for the library collection. Included are education and entertainment selections Audio and Digital Books: $2,700 This account provides for the acquisition of books in electronic format for the library. Included are books on CDs, Playaways, e books, online audiobooks, online music and other similar forms of electronic media Music: $1,000 This account provides for the acquisition of music CDs for the library collection Business and Meal Expenses: $200 This account provides for reimbursement to employees for mileage for use of personal vehicle used to empty the bookdrop at the Plaza Mall, distribute promotional library promotional posters throughout Ketchikan and deliver Born to Read materials to the Ketchikan Medical Center Travel Training: $700 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training. This amount is significantly less than in The Alaska Library Association's annual conference will be held in Ketchikan in 2017, negating the need for extensive travel Training and Education: $1,500 This account provides for registration fees and training programs provided by staff or third parties. Includes registration for library conferences and for continuing education classes Ads and Public Announcements: $400 This account provides for announcements in publications, newspapers, trade journals, Internet or broadcasts over radio and television. Included are public service announcements, community issues and recruiting Assn. Dues and Membership Fees: $600 This account provides for membership in professional organizations, such as the Alaska Library Association, the American Library Association, the Public Library Association, the Young Adult Library Services Association and the Association of Library Service to Young Children. These memberships provide access to information and discounts on continuing education classes that increase staff skills and resources Bank and Merchant Fees: $140 This account provides for merchant fees for use of credit and debit cards Broadcast Content Fees: $250 This account provides for the right to broadcast copyrighted intellectual property. Included in this are licenses from Movie Licensing USA and Motion Picture Licensing Corporation Service Charges and Fees: $100 This account provides for miscellaneous service charges and fees. Included are service charges for collection agency services used to recover outstanding debts for lost and damaged materials Other Contractual Services: $7,200 This account provides for contractual services not identified in the account classifications under contractual services, such as fees for visiting authors and performers for children s programs. Due to an overwhelming response to programs for children by visiting performers, this amount has increased since Also, much of the travel training funding that will not be necessary in 2017 was moved to this account Furniture and Fixtures: $1,000 This account provides for acquisition of furniture and fixtures. Included are educational and skill developing play structures for the Children s Area, as well as lamps, chairs, tables and storage cabinets for both the Children's Room and the Teen Room. M - 19

170 Library Children's Services Division Interdepartmental Charges Insurance: $2,060 This account provides for risk management services and claims. M - 20

171 Library First City Libraries Division MISSION STATEMENT The mission of the First City Libraries Consortium is to provide informational, educational and recreational materials and services for the residents of the City of Ketchikan and the Ketchikan Gateway Borough. This is accomplished through development, maintenance, and promotion of materials, physical spaces and programs responsive to the diverse interests and needs of the community. This consortium is a cooperative effort among the City of Ketchikan, the Ketchikan Gateway Borough School District, and the University of Alaska Southeast Ketchikan Campus Library. It links all of Ketchikan s libraries, thereby giving all citizens access to materials. GOALS FOR 2017 Organize and host the 2017 Alaska Library Association annual conference. Continue promoting library use amongst all Consortia libraries. Develop supportive peer relationships between Consortia staff through meetings and training collaborations. ACCOMPLISHMENTS FOR 2016 Upgraded Symphony ILS software to latest version. Loaned 3,958 items between consortium members during the 2015/2016 school year. Fostered collabortation and training on Consortium resources and policies with biannual Consortium wide meetings. DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies % Contract/Purchased Services 52,853 59,425 59,425 53,802 61,500 2, % Interdepartmental Charges (7,454) (7,300) (7,300) (7,300) (2,903) 4, % Total Expenditures 45,440 52,475 52,475 46,702 58,947 6, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Property Taxes 13,698 18,665 18,995 17,082 21,167 2, % Charges for Services KGB 10,139 11,010 10,680 9,320 12,160 1, % Charges for Services KGBSD 21,603 22,800 22,800 20,300 25,620 2, % Total Funding 45,440 52,475 52,475 46,702 58,947 6, % M - 21

172 Library First City Libraries Division Expenditures by Type 94.98% Supplies Contract/Purchased Services Interdepartmental Charges 0.54% 4.48% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. There are no significant changes between the adopted operating budget for 2016 and the proposed operating budget for DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Office Supplies (50) 50.0% Operating Supplies % Supplies % Contract/Purchased Services Software and Equipment Maintenance 29,997 27,905 27,905 27,905 29,800 1, % Subscription Services 5,738 6,011 6,011 5,897 6, % Telecommunications 17,118 25,509 25,509 20,000 25,500 (9) 0.0% Contract/Purchased Services 52,853 59,425 59,425 53,802 61,500 2, % Interdepart'l Charges/Reimbursable Credits Interdepart'l Charges Information Technology 7,500 7,500 7,500 7, % Reimbursable Credits (7,454) (14,800) (14,800) (14,800) (10,403) 4, % Interdepart'l Charges/Reimbursable Cr (7,454) (7,300) (7,300) (7,300) (2,903) 4, % Total Expenditures by Type 45,440 52,475 52,475 46,702 58,947 6, % M - 22

173 Library First City Libraries Division NARRATIVE Office Supplies: $50 This account provides for paper and toner used for Consortium operations Operating Supplies: $300 This account provides for supplies that are normally not of a maintenance nature and are required to support department operations. Included are supplies such as barcodes, security strips and carbon overdue mailers Software and Equipment Maintenance Services: $29,800 This account provides for maintenance agreements to support licensed software systems. Included is the yearly hardware and software system renewal for the SirsiDynix server Subscription Services: $6,200 This account provides for a subscription for access to the Online Computer Library Center (OCLC). The OCLC provides for unlimited cataloging, interlibrary loans and access to WorldCat (a catalog which itemizes the collections of 71,000 libraries in 112 countries) Telecommunications: $25,500 This account provides for telecommunication services. Included are charges for the library server connection and server hosting and power Interdepartmental Charges Information Technology: $7,500 This account provides for information technology services provided by the Information Technology Department. The IT Department maintains the Consortium server Reimbursable Credits: ($10,403) A contra expense account for crediting First City Libraries Division for operatingcosts to be paid by the UAS Library. M - 23

174 Library UAS Library Division MISSION STATEMENT The UAS Ketchikan Campus Library provides UAS students and faculty, without regard to their geographic location, a full range of library services and resources. The library supports the instructional programs of the University and strives to meet the informational and research needs of the Ketchikan community. The library offers access to high quality resources, services and gateways to information, and is an active member of the First City Libraries Consortium. Library Director Librarian (.70) Library Assistant II (.91) GOALS FOR 2017 To teach members of the UAS Ketchikan community regardless of their geographic location to be effective users and producers of information, in order to meet their current academic needs, and to prepare them for a lifetime of learning and of responsible leadership; To improve and increase library outreach to students, faculty and the UAS Ketchikan community; To serve as an information and referral resource to the entire community; and To provide a comfortable, stimulating and vital information center for the community, supporting the academic programs and curricula of the university. ACCOMPLISHMENTS FOR 2016 Continued to increase awareness of the library s resources and services by: Working with campus faculty to ensure that information literacy skills are acquired by students according to UAS guidelines, the campus librarian conducted 22 library instruction sessions and presentations with a total attendance of 341 students; Reconfigured space in the campus library and introduced a new area for individual study space, including five moveable desks made from local cedar, with lighting and electrical and USB outlets for each; and In order to focus efforts and resources on the campus library s mission statement, i.e., serving UAS students and faculty, with fewer hours of staff time and a diminished budget, the decision was made to discontinue the campus library s status as a federal depository library, thus saving staff time. Working with the Federal Depository Library Program, library personnel completed all of the steps required by the FDLP in order to end that relationship. Maintained currency and relevancy of the collections by: Yearly evaluating the collection for worn, outdated or unneeded items in consultation with the faculty; Selecting and purchasing new materials based on a review of sources and faculty consultations; and Processing 308 physical items into the print and media collections. M - 24

175 Library UAS Library Division Encouraged community support and enrollment for the Campus by: Encouraging Ketchikan Gateway Borough School District faculty and students to use the Library; Participating in the Library Department's weekly newspaper column; and Hosting eight successful Ask UAS: Where Ketchikan Finds Answers events throughout the school year, sharing the expertise of UAS Ketchikan faculty and community experts with the Ketchikan community, attended by a total of 337 people. DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 151, , , , ,154 (12,301) 7.2% Supplies 1,749 2,050 2,550 1,850 (2,050) 100.0% Contract/Purchased Services 11,355 17,900 18,420 16,180 12,763 (5,137) 28.7% Minor Capital Outlay 2,603 5,800 4,930 2,340 (5,800) 100.0% Interdepartmental Charges 679 1,600 1, ,280 (320) 20.0% Total Expenditures 168, , , , ,197 (25,608) 12.9% Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Charges for Services UAS 168, , , , ,197 (25,608) 12.9% Total Funding 168, , , , ,197 (25,608) 12.9% Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Director , % Librarian ,976 (0.26) 27.1% Library Assistant II , % Total ,964 (0.05) 2.9% 7.41% 0.74% 2017 Expenditures by Type Personnel Services and Benefits Contract/Purchased Services Interdepartmental Charges 91.85% M - 25

176 Library UAS Library Division OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits decreased by $12,301, or 7.2%, due to a change in the number of hours worked by the Senior Librarian from.96 to.70 FTE and a change in the Library Assistant II hours from.70 to.91 FTE. These changes have been made to lower the cost of library operations for UAS and to accommodate the Senior Librarian's gradual move into retirement. DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 86,048 96,415 96,165 93,908 85,964 (10,451) 10.8% Temporary Wages 2,484 2,000 2,000 1,500 2, % Payroll Taxes 6,688 7,500 7,500 7,060 6,730 (770) 10.3% Pension 18,776 19,690 19,690 19,340 17,140 (2,550) 13.0% Health and Life Insurance 39,620 41,700 41,700 41,020 43,290 1, % Workers Compensation (100) 19.6% Other Benefits (2,125) 2,640 2,740 2,660 2,620 (20) 0.8% Personnel Services and Benefits 151, , , , ,154 (12,301) 7.2% Supplies Office Supplies (600) 100.0% Operating Supplies (500) 100.0% Food/Catering (450) 100.0% Postage (500) 100.0% Supplies 1,749 2,050 2,550 1,850 (2,050) 100.0% Contract/Purchased Services Travel Training 1,350 1,000 1, (1,000) 100.0% Training and Education 363 1,000 1, (1,000) 100.0% Ads & Public Announcements 1, NA Printing and Binding (600) 100.0% Government Contractual Services 7,454 14,800 14,800 14,800 12,403 (2,397) 16.2% Machinery & Equipment Maintenance Services (140) 28.0% Contract/Purchased Services 11,355 17,900 18,420 16,180 12,763 (5,137) 28.7% Minor Capital Furniture and Fixtures 2,529 1,000 1,000 (1,000) 100.0% Computers, Printers and Copiers 74 4,800 3,930 2,340 (4,800) 100.0% Minor Capital Outlay 2,603 5,800 4,930 2,340 (5,800) 100.0% Interdepartmental Charges Interdepartmental Insurance 679 1,600 1, ,280 (320) 20.0% Interdepartmental Charges 679 1,600 1, ,280 (320) 20.0% Total Expenditures by Type 168, , , , ,197 (25,608) 12.9% M - 26

177 Library UAS Library Division NARRATIVE Regular Salaries and Wages: $85,964 This account provides for compensation paid to regular salaried and hourly employees of the UAS Library Division Temporary Wages: $2,000 This account provides for compensation paid to temporary salaried and hourly employees of the UAS Library Division Payroll Taxes: $6,730 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension Benefits: $17,140 This account provides for employer contributions to retirement plans Health and Life Insurance: $43,290 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $410 This account provides for employer contributions toworkers compensation Other Benefits: $2,620 This account provides for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Government Contractual Services: $12,403 This account provides for contractual services provided by federal, state, and local governments. Included are fees paid for library services provided by the City to UAS Machinery and Equipment Maintenance Services: $360 This account provides for maintenance services required for the photocopier and facsimile machine utilized by the division Interdepartmental Charges Insurance: $1,280 This account provides for risk management services and claims. M - 27

178 Library Ketchikan Public Library O&M COST CENTER SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies 27,200 27,499 25,899 18,066 27,000 (499) 1.8% Contract/Purchased Services 83,426 78,760 78,760 75,760 78,000 (760) 1.0% Minor Capital 774 7,500 7,500 7,500 1,550 (5,950) 79.3% Interdepartmental Charges 6,640 7,400 7,400 7,110 8, % Total Expenditures 118, , , , ,850 (6,309) 5.2% Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Property Taxes 78,636 76,189 76,540 70,162 72,958 (3,231) 4.2% Charges for Services KGB 39,404 44,970 43,019 38,274 41,892 (1,127) 6.8% Total Funding 118, , , , ,850 (6,309) 5.2% 1.3% 7.2% 2017 Expenditures by Type 23.6% Supplies Contract/Purchased Services Minor Capital Interdepartmental Charges 67.9% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. There is a $5,950 decrease in Computers, Printers, and Copiers (Account No ), which is a 79.3% change from Last year, the library purchased a new public copier to replace an aging unit. There are no plans to purchase any equipment in 2017 other than two computers to replace 5 yr old workstations. M - 28

179 Library Ketchikan Public Library O&M DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Janitorial Supplies 5,031 3,600 4,400 4,400 4, % Small Tools & Equipment (175) 36.8% Building & Grounds Maint Materials (524) 0.0% Furniture & Fixtures Maint Materials 2,405 1,500 1,500 1,500 1, % Machinery & Equip Maint Materials 1,115 1,000 1,041 1,041 1, % Infrastructure & Plant Maint Materials 1, (300) 30.0% Heating Fuel 11,316 15,000 13,400 6,000 14,000 (1,000) 6.7% Machinery & Equip Fuel & Lubricants 5,961 4,000 4,000 4,000 4, % Supplies 27,200 27,499 25,899 18,066 27,000 (499) 1.8% Contract/Purchased Services Janitorial and Cleaning Services 23,628 23,800 20,800 20,600 20,600 (3,200) 13.4% Bldg & Grounds Maint Services % Machinery & Equip Maint Services 3,494 5,000 4,600 3,000 2,800 (2,200) 44.0% Technical Services 1,152 1,000 1,400 1,200 1, % Rents and Leases Land and Buildings 2,100 2,100 2,100 2,100 2, % Telecommunications 18,394 16,260 16,260 16,260 17,400 1, % Electric, Water, Sewer & Solid Waste 33,758 30,000 33,000 32,600 33,000 3, % Contract/Purchased Services 83,426 78,760 78,760 75,760 78,000 (760) 1.0% Minor Capital Computers, Printers, and Copiers 7,500 7, ,550 5, % Software 774 NA Minor Capital Outlay 774 7,500 7,500 7,500 1,550 5, % Interdepartmental Charges Interdepartmental Insurance 6,640 7,400 7,400 7,110 8, % Interdepartmental Charges 6,640 7,400 7,400 7,110 8, % Total Expenditures by Type 118, , , , ,850 (6,309) 5.2% NARRATIVE Janitorial Supplies: $4,500 This account provides for cleaning and sanitation supplies used by contractedjanitors Small Tools and Equipment: $300 This account provides for minor tools and operating equipment with a value of less than $1, Building and Grounds Maintenance Materials: $400 This account provides for the repair and maintenance of buildings and upkeep of the grounds owned or leased and operated by the City Furniture and Fixtures Maintenance Materials: $1,500 This account provides for the repair and maintenance of furniture and building fixtures owned or leased and operated by the City Machinery and Equipment Maintenance Materials: $1,100 This account provides for the repair and maintenance of machinery and equipment owned and operated by the City. Included are the library s computers. M - 29

180 Library Ketchikan Public Library O&M y q p p y y y p Infrastructure and Plant Maintenance Materials: $700 This account provides for the repair and maintenance of infrastructure and plant owned and operated by the City. Included are sidewalks, parking lots and the wood pellet boiler Heating Fuel: $14,000 This account provides for wood pellets to heat the library building Machinery and Equipment Fuel and Lubricants: $4,500 This account provides for the propane used to operate the fireplace Janitorial and Cleaning Services: $20,600 This account provides for services to clean the library building Buildings and Grounds Maintenance Services: $600 This account provides for the repair and maintenance of buildings and the upkeep of grounds owned or leased by the City. This account includes contract labor and materials required to provide the service Machinery and Equipment Maintenance Services: $2,800 This account provides for the repair and maintenance of office equipment, machinery and other operating equipment owned or leased by the City. This account includes contract labor and materials required to provide the service. It also includes maintenance service agreements for the public access copier machine and two microfilm readers. The library pays an annual fee for the propane tank; also included in this account is maintenance for the security camera system Technical Services: $1,500 This account provides for services that are not regarded as professional but require technical or special knowledge, including fire extinguisher inspections, fire alarm inspection and monitoring and fire sprinkler inspection Rents and Leases Land and Buildings: $2,100 This account provides for the rent of heated offsite storage at the Heckman Building for reference materials, repository documents and seasonal items and supplies Telecommunications Services: $17,400 This account provides for wired and wireless telecommunication services. Included are landline services, network and data services, internet and long distance Electric, Water, Sewer & Solid Waste: $33,000 This account provides for electric, water, sewer and solid waste utility services Computers, Printers, and Copiers: $1,550 This account provides for desktop, laptops, and tablet computers; computer printers and scanners, photocopiers and fax machines. Two aging staff computer workstations are scheduled to be replaced this year Interdepartmental Charges Insurance: $8,300 This account provides for risk management services and claims. M - 30

181 Library Grants Program MISSION STATEMENT A major tenet of the code of ethics in librarianship is a belief in lifelong learning. The Alaska State Library strongly supports continuing education for librarians, a profession of knowledgeable workers devoted to providing information in multiple formats to users. Librarians inhabit a world of change and libraries are not exempt from these forces. Grants allow staff to attend continuing education to enhance their knowledge of technology and learn about new sources of high quality information, so they can quickly navigate the ever changing information landscape and efficiently lead people to reliable information they need for school, work, life challenges and recreation. GOALS FOR 2017 Apply for a FY2018 Interlibrary Cooperation Grant to construct an educational Children's Garden at the library. Apply for the FY2018 Public Library Assistance grant. ACCOMPLISHMENTS FOR 2016 Applied for and received the FY2017 Public Library Assistance grant, which provides funding for collection development. Applied for and received two Continuing Education grants for two staff members to attend the Public Library Association annual conference in Denver, Colorado. DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Library Books 3,000 13,250 13,250 7,000 4, % Periodicals 1, % Movies and Visual Series 1, % Supplies 3,000 3,000 13,250 13,250 7,000 4, % Contract/Purchased Services Travel Training 5,150 6,150 3,300 3,300 (6,150) 100.0% Telecommunications (500) 0.0% Contract/Purchased Services 5,650 6,650 3,300 3,300 (6,650) 100.0% Minor Capital Furniture & Fixtures 400 2,000 2,000 NA Minor Capital 400 2,000 2,000 NA Total Expenditures by Type 9,050 9,650 16,550 16,550 9,000 (650) 6.7% M - 31

182 Library Grants Program 2017 Expenditures by Type 0.00% 22.2% Supplies Minor Capital Contract/Purchased Services 77.8% Budget Adopted/2017 Grant Program Actual Adopted Amended Estimate Budget Incr(Decr) % USD Education Continuing Education Grant 2,000 3,000 3,000 3,000 (3,000) NA FY2018 Public Library Assistance Grant 7,000 7,000 NA FY2017 Public Library Assistance Grant 6,900 6,900 NA FY2016 Public Library Assistance Grant 6,650 6,650 6,650 (6,650) NA FY2015 Public Library Assistance Grant 6,650 NA 2015 Early Literacy Grant 400 2,000 2,000 NA Total Expenditures by Grant Program 9,050 9,650 16,550 16,550 9,000 (650) 6.7% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. All changes in Grant Programs are a result of grant funding availability and/or award amounts actually received. NARRATIVE Library Books: $7,000 This account provides for the acquisition of books and print materials for the library collection. Included are books, maps, nautical charts and other print materials Furniture and Fixtures: $2,000 This account provides for a new educational Children's Garden to be placed outside the library building. M - 32

183 Museum Summary Ketchikan Museums collect, preserve, interpret and creatively share the history and culture of the region to serve, educate, engage and enrich the community. The department operates two museums: the Tongass Historical Museum and the Totem Heritage Center. Together, the museums offer a wide array of permanent and temporary exhibitions, public presentations, educational programs, classes and workshops. Museum Collections Programs Centennial Building O&M Heritage Center Building O&M Historical Commission The Museum Department is comprised of four operating divisions, a Historical Commission Program and oversees one Capital Improvement Program. DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Collections 243, , , , ,079 11, % Programs 428, , , , ,267 66, % Centennial Building O&M 66,211 88,650 88,650 71,940 86,890 (1,760) 2.0% THC Building O&M 45,374 60,650 60,650 51,397 60,435 (215) 0.4% Historical Commission 1,425 1, , % Grants 42,832 42,832 20,268 35,500 (7,332) 17.1% Capital Improvement Program 69,059 1,100,559 1,397,353 1,375, ,000 (686,559) 62.4% Total 852,818 2,064,015 2,365,529 2,253,301 1,445,596 (618,419) 30.0% Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 589, , , , ,103 69, % Supplies 61,958 92,298 95,908 75,058 91,723 (575) 0.6% Contract/Purchased Services 117, , , , ,050 (3,254) 2.2% Minor Capital Outlay 3,488 17,832 17,832 7,832 20,390 2, % Interdepartmental Charges 10,727 15,200 15,200 11,960 15, % Major Capital Outlay 69,059 1,100,559 1,397,353 1,375, ,000 (686,559) 62.4% Total 852,818 2,064,015 2,365,529 2,253,301 1,445,596 (618,419) 30.0% Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund General Fund Support 568, , , , ,096 75, % Charges for Services 215, , , , , % Public Works Sales Tax 69, , , ,672 (705,559) 100.0% Grants 42,832 42,832 20,268 35,500 (7,332) 17.1% Ketchkan Gateway Borough 235, ,750 NA Community Facilities Development Fund 237, ,000 New CPV Funds 395, , , ,000 (218,000) 55.2% Total 852,818 2,064,015 2,365,529 2,253,301 1,445,596 (618,419) 30.0% N - 1

184 Museum Summary Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Collections , % Programs , % Total , % N - 2

185 Museum Collections Division MISSION STATEMENT The Collections Division of the Museum Department acquires, researches, documents and preserves objects and archival materials relating to the history and culture of the Ketchikan area. The division provides efficient access to the Museum s collections for researchers, staff and the public. Museum Director Sr. Curator Collections Administrative Secretary Registrar GOALS FOR 2017 Oversee the renovation of the first floor of the Centennial Building and manage the return of building supplies and artifacts when construction is finished. Manage the intellectual and physical integrity of the collection, especially the artifacts moving off site, during the Centennial Building renovation. Convert the former Director and Administrative Secretary offices into artifact storage and collections prep space. Participate in the development and installation of a temporary exhibit at the Tongass Historical Museum for summer Participate in the development of the permanent exhibit at the Tongass Historical Museum for Continue to inventory the collections at the Tongass Historical Museum and Totem Heritage Center. Continue to update collections policies and procedures, as well as review the 1990 MOA with the Tongass Historical Society. Fully catalog and photograph recent acquisitions. Utilize PastPerfect s Virtual Exhibit and PastPerfect Online to make collections accessible in a digital format for the public. ACCOMPLISHMENTS FOR 2016 Emptied the first floor of the Centennial Building and collections storage in preparation for the building renovation. Actively participated in the design development and finishes for the renovation of the first floor of the Centennial Building. Oversaw numerous improvements of the Centennial Building s basement, including the installation of a new electrical transformer; the renovation of large object storage to accommodate the new electrical infrastructure; installed new solid core doors to collections storage rooms; replaced old ceiling tile and baseboards; and painted the hallway. Successfully relocated and covered collections during the installation of a new electrical transformer in the Centennial Building. Reviewed 75 donation offers, including numerous backlogged items, from September 2015 to September Maintained public access to collections and archives, providing timely and thorough responses to requests for research and historical photograph reproduction. As of September 2016, the department has completed 176 research, information and photo requests for a variety of personal, scholarly or municipal inquiries. Received a Collections Management Fund Grant for 2 new storage cabinets and archival supplies to rehouse the totem pole fragments at the Totem Heritage Center. N - 3

186 Museum Collections Division Launched Artifact of the Month, a monthly article highlighting objects, photos and archival documents in the collection. Installed an historic photo exhibit at the University of Alaska Southeast Library. Collaborated with Public Works to reproduce salmon can labels on the Mission Street Welcome Arch sign posts and Port & Harbors to reproduce historic photos on Berths I and II. Hired renowned wood conservator Andrew Todd to assess the Chief Johnson totem pole. Reorganized the Research Library to include the Registrar and Curator of Exhibits offices (permanently) and the Director and Administrative Secretary offices (temporarily). Loaned Carla Potter s sculpture Prowling Bride II and Evon Zerbetz s Raven Wheel Triptych to the Rasmuson Foundation. The loan duration is until November Developed Collections Division functional responsibilities. Sr. Curator of Collections Hayley Chambers was awarded a fellowship to attend the American Alliance of Museums annual conference in Washington D.C. in May Registrar Erika Brown received a scholarship to attend the Museums Alaska annual conference in Juneau in September Sr. Curator of Collections Hayley Chambers served a second year as Secretary of the Museums Alaska board of directors and was a liaison for Museums United, an initiative to promote communication between state museum associations. She also cochaired the 2016 Program Committee and attended the annual conference in Juneau in September. Collections Division utilized 361 volunteer hours between September 2015 September 2016 to assist with cataloging, inventory, rehousing and organizing vertical files. DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 224, , , , ,061 8, % Supplies 4,654 4,268 4,488 4,488 4, % Contract/Purchased Services 11,774 13,434 18,917 17,746 13,225 (209) 1.6% Minor Capital Outlay 2,110 3,050 3,050 New Interdepartmental Charges 1,164 2,500 2,500 1,360 2,100 (400) 0.0% Total Expenditures 243, , , , ,079 11, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Support 243, , , , ,079 11, % Total Funding 243, , , , ,079 11, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Director , % Administrative Secretary , % Sr. Curator Collections , % Registrar , % Total , % N - 4

187 Museum Collections Division Expenditures by Type 1.7% 4.7% 0.8% 1.1% Personnel Services and Benefits Supplies Contract/Purchased Services Interdepartmental Charges Minor Capital Outlay 91.7% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $8,272, or by 3.3%, due to annual employee step increases; a 2.0% cost of living adjustment for IBEW Local 1547 employees and non represented employees that will become effective January 1, 2017; and increased employee health insurance co pays for non represented employees that became effective July 1, DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 147, , , , ,841 6, % Overtime Wages % Payroll Taxes 10,950 11,750 11,750 11,480 12, % Pension 31,183 30,430 30,160 29,530 30, % Health and Life Insurance 33,083 47,300 41,817 33,730 48,420 1, % Workers Compensation (70) 8.6% Other Benefits 826 4,250 8,520 8,520 4, % Moving Expense Taxed 15, % Personnel Services and Benefits 224, , , , ,061 8, % Supplies Office Supplies 1,290 1,425 1,425 1,425 1, % Operating Supplies 2,348 2,200 2,420 2,420 2, % Artifacts % Library Books % Periodicals % Supplies 4,654 4,268 4,488 4,488 4, % N - 5

188 Museum Collections Division Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Contract/Purchased Services Travel Business 5,483 4,325 NA Travel Training 320 1,025 1,025 1, (325) 31.7% Training and Education % Assn. Membership Dues & Fees % Software Maintenance Services % Machinery & Equip Maint Services (13) 4.2% Subscription Services % Telecommunications 9,942 10,600 10,600 10,600 10, % Contract/Purchased Services 11,774 13,434 18,917 17,746 13,225 (209) 1.6% Minor Capital Machinery and Equipment 2,700 2,700 New Computers, Printers & Copiers 1, New Software 247 NA Minor Capital Outlay 2,110 3,050 3,050 New Interdepartmental Charges Interdepartmental Insurance 1,164 2,500 2,500 1,360 2,100 (400) 16.0% Interdepartmental Charges 1,164 2,500 2,500 1,360 2,100 (400) 16.0% Total Expenditures by Type 243, , , , ,079 11, % NARRATIVE Regular Salaries and Wages: $158,841 This account provides for the annual wages of the employees of the Collections Division Overtime Wages: $500 This account provides for the cost of overtime incurred by Collections Division staff during the course of the year Payroll Taxes: $12,190 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes for Collections Division staff Pension: $30,550 This account provides for employer contributions to retirement plans Health and Life Insurance: $48,420 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $740 This account provides for employer contributions toworkers compensation Other Benefits: $4,820 This account provides for expenditures for direct claims from former employees for unemployment benefits paid bythe Stateof Alaska and accrued vacation and sick leave Office Supplies: $1,425 This account provides for paper, pens, pencils, note pads, file folders, tape, toner, ink cartridges, photocopy charges, small desk accessories and minor office equipment Operating Supplies: $2,200 This account provides for collection storage containers; acid free paper, foam; archival adhesives; curatorial cleaning supplies; blotting paper; document boxes; and other collections items. N - 6

189 Museum Collections Division Artifacts: $800 This account provides for the acquisition of artifacts, artwork and other items for the permanent collections and costs associated with acquisitions Library Books: $140 This account provides for the acquisition of books and print materials for the Museum s library. Included are books, large print items, maps, charts and other printed materials Periodicals: $78 This account provides for 1/2 an annual subscription to the Ketchikan Daily News, and subscriptions to Native arts and culture magazines Travel Training: $700 This account provides for transportation, lodging, meals, per diem and incidental expenses associated with participation in state museum meetings Training and Education: $345 This account provides for a staff member's registration for the Museums Alaska conference and 1/2 registration to training website Assn. Dues and Membership Fees: $298 This account provides for 1/2 of the cost of the department's memberships in Museums Alaska, Alaska Historical Society and other professional associations Software Maintenance Services: $432 This account provides for maintenance agreements in support of the department s collections management software, PastPerfect Machinery and Equipment Maintenance Services: $300 This account provides for the repair and maintenance of office equipment, machinery and other operating equipment used by the Collections Division Subscription Services: $550 This account provides for annual subscriptions to Ancestry.com, an on line genealogy research database, and PastPerfect Online, a service providing Web access to museum collections Telecommunications: $10,600 This account provides for telecommunication services for voice, alarm and data transfer lines at the Centennial Building. This includes a one time expense for an additional switchboard related to the main floor renovation Machinery and Equipment: $2,700 This account provides for the acquisition of a new phone system Computers, Printers & Copiers: $350 This account provides for 1/2 the cost of a new printer/copier/scanner for the main floor of the Centennial Building Interdepartmental Charges Insurance: $2,100 This account provides for risk management services and claims. N - 7

190 Museum Programs Division MISSION STATEMENT The Programs Division supports the Ketchikan Museums mission by fostering the preservation, understanding and dissemination of knowledge of the history and culture of the Ketchikan region through exhibits, classes, workshops, lectures, publications, gallery talks, interpretive tours and other public programs. The division strives to reach the broadest possible audience by designing, publicizing and carrying out a variety of interpretive programs that match the interests and abilities of people of all ages and walks of life. Museum Director Sr. Curator Programs Administrative Secretary Curator of Exhibits Program Coordinator Program Assistant Museum Attendant Seasonal Tour Guides GOALS FOR 2017 Expand awareness of the Ketchikan Museums as an educational and historical resource for the entire community. Assist staff housed at the Tongass Historical Museum with development of renovated space to provide efficient and engaging service to museum visitors. Develop the newly renovated Programs space at the Tongass Historical Museum for multiple uses. Assist the Collections Division with moving artifacts and archives displaced by Centennial Building renovation. Plan, research and produce a high quality, engaging and informative temporary exhibit at the Tongass Historical Museum by projected May 2017 opening. Research and develop a permanent exhibit for the Tongass Historical Museum for installation in Update exhibit components at the Totem Heritage Center. Collaborate with area educators to continue to develop Museum related programs and printed educational materials pertinent to various grade levels and units of study throughout the school district. Develop exhibit related educational and public programs that will attract new audiences and stimulate the participation of community members interested in local history and culture. Strengthen cooperative relationships with UAS Ketchikan, Ketchikan Gateway Borough, Native corporations, tribal N - 8

191 Museum Programs Division organizations and other community organizations for promotion of classes at the Totem Heritage Center and exhibitrelated activities at the Tongass Historical Museum. Identify new sources of financial support and apply for funding from both public and private sources to support exhibits, interpretive programs and other Museum activities. Increase walk in traffic and commercial tours through marketing efforts targeting cruise ship and ferry passengers and independent travelersand through newand continued partnerships with local organizations. ACCOMPLISHMENTS FOR 2016 The Museum Department presented three exhibits at the Tongass Historical Museum. OurTown:TheLifeandTimesof Ketchikan and First People (May September) provided a general overview of Ketchikan history for summer visitors and locals alike. Programs Division staff assisted in refreshing both of these exhibits for the summer season, including mounting photos and labels and re installing artifacts. Then and Now, is a community photography exhibit connecting Ketchikan s past to the present through the recreation of historic photos. The opening reception for Then & Now was one of the best attended receptions in the Museum's history. Many summer visitors expressed that they were going to ask their own local museums to recreate the exhibit in their city. Programs Division staff updated Museum content on the new City website. 10 Northwest Coast Native Art classes were offered at the Totem Heritage Center with 87 students participating. Exceptional local and visiting instructors taught the traditional Northwest Coast arts of weaving, carving, design and regalia making. THC's weekly Open Craft Nightsaw an increase in participation up to 190 individuals in the winter and spring. The Programs Division staff collaborated with the University of Alaska Southeast Ketchikan Campus to offer optional university credit for Totem Heritage Center classes that met university requirements. The Programs Division staff introduced a variety of cultural perspectives to a wide range of visitors by presenting group toursand interpretive services, as well asproviding answers to visitor questions and information on local attractions. Six seasonal tour guides were recruited and trained to provide interpretive tours and visitor services at the Totem Heritage Center and the Tongass Historical Museum from May through September. As of August 30, 2016, the Totem Heritage Center conducted one hour in depth interpretive tours as part of Holland America Princess Tours Cultural Discovery Tour and a Family Fun Tour for 3,264 visitors. Other local tour providers also made the Ketchikan Museums a highlight for their guests interested in history and Native culture. Staff provided both general and focused tours of the Totem Heritage Center and Tongass Historical Museum for 518 students and adults from local schools, as well as schools from surrounding communities. Programs staff also hosted adult educational programs such as artist presentations and the ongoing Thursday Night OpenCraftNightattheTotemHeritage Center. Ketchikan Museums attendance totaled 54,579 as of September 1, 2016, including educational programming, guided tours, independent visits and local residents. Ketchikan Museums staff provided technical assistance to community non profits, including Historic Ketchikan and the Tongass Historical Society. The Museum also participated in community events, including the Blueberry Arts Festival and the Celebration of the Sea and Winter Art Walk. Programs staff provided activities for partners such as Tongass School of Arts and Sciences' DaVinci Night and the Ketchikan Public Library's Family Night. Staff continued to develop and promote the Totem Heritage Center library as a resource for instructors, students, tour guides and researchers investigating topics related to Northwest Coast Native culture, art and artists. N - 9

192 Museum Programs Division Programs Division staff increased public awareness of Museum Department activities and programs through display posters, publications, monthly radio shows and web presence, including Facebook pages for both museums. Four newsletters were published, highlighting exhibits and Museum collection and program activities. Programs Division staff provided updated schedules of Northwest Coast Native Art classes, Museum newsletters and program announcements for community calendars. Programs Division staff participated in Centennial Building renovation planning, preparation, the moving of supplies and artifacts and thede install of exhibits. Senior Curator of Programs Anita Maxwell served as the Acting Director beginning May 13, In addition, she participated in the recruitment, hiring and training of Steven Villano who filled the Curator of Exhibits position. Mr. Villano started on July 5, 2016 per the City Council's December 2015 reinstatement of the position. A new Museum Attendant, Lance Bifoss, started in March Most notably, the Totem Heritage Center celebrated its 40th anniversary in Programs Division staff hosted an Open House in September to showcase 40 years of classes as well as the upcoming season. DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 365, , , , ,042 61, % Supplies 15,396 14,280 18,743 18,743 17,830 3, % Contract/Purchased Services 43,851 42,495 56,183 54,299 42,325 (170) 0.4% Minor Capital Outlay 1,378 2,340 2,340 NA Interdepartmental Charges 1,891 4,100 4,100 2,410 3,730 (370) 9.0% Total Expenditures 428, , , , ,267 66, % Funding Source Actual Adopted Amended Estimate Budget Amount % General Fund General Fund Support 212, , , , ,267 66, % Charges for Services 215, , , , , % Total Funding 428, , , , ,267 66, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Director , % Administrative Secretary , % Sr. Curator Programs , % Curator of Exhibits , % Program Coordinator , % Museum Attendant , % Program Assistant , % Total , % N - 10

193 Museum Programs Division Expenditures by Type 3.1% 7.4% 0.7% 0.4% Personnel Services and Benefits Supplies Contract/Purchased Services Interdepartmental Charges Minor Capital Outlay 88.4% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $61,009, or by 13.8%, due to annual employee step increases; a 2.0% cost of living adjustment for IBEW, Local 1547 employees and non represented employees that will become effective January 1, 2017; increased employee health insurance co pays for non represented employees that became effective July 1, 2016; and the reinstatement of the Curator of Exhibits position effective July 1, DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 196, , , , ,832 37, % Overtime Wages % Temporary Wages 47,520 50,000 50,000 50,000 50, % Payroll Taxes 18,214 21,420 21,420 20,010 24,300 2, % Pension 40,568 44,620 44,620 41,740 51,120 6, % Health and Life Insurance 59,410 87,000 79,830 50,770 99,240 12, % Workers Compensation 1,057 1,410 1,500 1,500 1, % Other Benefits 1,844 6,360 11,580 11,580 8,340 1, % Personnel Services and Benefits 365, , , , ,042 61, % Supplies Office Supplies 3,465 3,300 3,263 3,263 3, % Operating Supplies 7,069 7,050 7,050 7,050 8, % Small Tools and Equipment % Food/Catering (300) 37.5% Inventory for Resale 113 4,500 4,500 3,250 3,250 New Postage % Bulk Mailing 2,200 2,200 2,200 2,200 1,600 (600) 27.3% Freight Material and Supplies % Library Books % Periodicals % Supplies 15,396 14,280 18,743 18,743 17,830 3, % N - 11

194 Museum Programs Division Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Contract/Purchased Services Travel Business 7,170 5, Travel Training 1,197 1,900 1,900 1, (1,200) 63.2% Training and Education % Ads and Public Announcements ,858 5, (275) 39.3% Marketing 5,671 3,580 4,940 4,940 3, % Printing and Binding 8,441 8,000 8,000 8,000 9,000 1, % Assn Membership Dues & Fees % Building and Operating Permits % Bank and Merchant Charges 1,065 1,000 1,000 1,000 1, % Machinery and Equip Maint Services % Technical Services 16,510 16,915 16,915 16,915 17, % Telecommunications 9,434 9,550 9,550 9,550 9, % Contract/Purchased Services 43,851 42,495 56,183 54,299 42,325 (170) 0.4% Minor Capital Computers, Printers & Copiers 1,378 1,500 New Software % Minor Capital Outlay 1,378 2,340 2,340 New Interdepartmental Charges Interdepartmental Charges Insurance 1,891 4,100 4,100 2,410 3,730 (370) 9.0% Interdepartmental Charges 1,891 4,100 4,100 2,410 3,730 (370) 9.0% Total Expenditures by Type 428, , , , ,267 66, % NARRATIVE Regular Salaries and Wages: $266,832 This account provides for the annual wages of the employees of the Programs Division Overtime Wages: $750 This account provides for the cost of overtime incurred by Programs Division staff during the course of the year Temporary Wages: $50,000 This account provides for the compensation of five to six seasonal tour guides who are employed hours per week at the Totem Heritage Center during the tour season Payroll Taxes: $24,300 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes for Programs Division staff Pension: $51,120 This account provides for employer contributions to retirement plans Health and Life Insurance: $99,240 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $1,460 This account provides for employer contributions to workers compensation Other Benefits: $8,340 This account provides for expenditures for direct claims from former employees for unemployment benefits paid bythe Stateof Alaska and accrued vacation and sick leave. N - 12

195 Museum Programs Division Office Supplies: $3,300 This account provides for general office supplies used by the Programs Division and the department s administrative office, including, paper, pens, pencils, ink cartridges, toner and small desk accessories Operating Supplies: $8,000 This account provides for supplies for the Native Arts Studies program, exhibit related programs and general supplies for the Museum Department. It also provides for the purchase of paint, lumber, Plexiglas, mountings, frames and other materials for exhibit production at both facilities Small Tools and Equipment: $500 This account provides for the purchase of tools for the Native Arts Studies Program and exhibit production Food/Catering: $500 This account provides for food or catering services for special and public programs such as exhibit openings, lectures, meetings and gatherings, etc Inventory for Resale: $3,250 This account provides for the purchase of the Native arts/crafts materials, which are sold to students participating in Totem Heritage Center classes. Expenditures under this account are fully recovered through sales Postage: $250 This account provides for general postage for all Museum Department operations Bulk Mailing: $1,600 This account provides for bulk mailing of exhibit and program announcements and newsletters for the Museum Department Freight Materials and Supplies: $200 This account provides for shipping or transporting supplies and program materials to and from vendors, as well as shipping for traveling exhibits Library Books: $150 This account provides for the purchase of resource books for the Totem Heritage Center Library Periodicals: $80 This account provides for 1/2 an annual subscription to the Ketchikan Daily News and subscriptions to Native arts and museum magazines Travel Training: $700 This account provides for transportation, lodging, meals, per diem and incidental expenses associated with the Museum Director or Programs Division staff travel to the annual Museums Alaska Conference or other program related training opportunities Training and Education: $420 This account provides for registration fees, training fees, training materials and other incidental expenses associated with the annual Museums Alaska Conference or other program related training opportunities. Training in interpretive techniques and customer service skills for seasonal tour guides is also funded from this account. It also provides for 1/2 registration to a training website Advertising and Public Announcements: $425 This account provides for commercial advertising, including recruitment ads associated with position vacancies, including seasonal tour guides Marketing: $3,580 This account provides for advertising in local Walking Tour map and domain name registrations Printing and Binding: $9,000 This account provides for printing of the Ketchikan Museums quarterly newsletter, exhibit related printing, the Native Arts Studies class brochure, the Totem Heritage Center interpretive brochure and other educational materials Assoc. Membership Dues & Fees: $300 This account provides for 1/2 of the cost of the department's memberships in Museums Alaska, Alaska Historical Society and other professional and trade associations Bank and Merchant Charges: $1,100 This account provides for bank card fees and credit card discount charges associated with class registration fees, retail sales and program admissions. N - 13

196 Museum Programs Division Machinery and Equipment Maintenance Services: $250 This account provides for services for routine and non routine maintenance on the Programs Division s copiers, printers,personal computers,etc Technical Services: $17,000 This account provides for Native Arts Studies instructor fees and expenses, and interpreters for history and exhibit related programs Telecommunications: $9,550 This account provides for telephone lines for voice, credit card machine, and alarms at the Totem Heritage Center, as well as data transmission links between the Heritage Center and the Centennial Building and City Hall Computers, Printers and Copiers: $1,500 This account provides for a new computer for the Museum Attendant at the renovated reception desk Software: $840 This account provides for access to the Adobe Creative Cloud for design of exhibits and promotional materials Interdepartmental Charges Insurance: $3,730 This account provides for risk management services and claims. N - 14

197 Museum Centennial Building O&M COST CENTER OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Operating Supplies 7,078 5,000 3,927 3,927 5, % Building & Grounds Maint Materials 920 2,500 2,500 2,500 2, % Heating Fuel 17,168 29,000 29,000 19,000 29, % Supplies 25,166 36,500 35,427 25,427 36, % Contract/Purchased Services Janitorial and Cleaning Services 12,200 17,250 17,250 13,800 15,000 (2,250) 13.0% Building & Grounds Maint Services 4,725 5,000 6,073 6,073 5, % Electric, Water, Sewer and Solid Waste 19,773 25,000 25,000 22,000 25, % Contract/Purchased Services 36,698 47,250 48,323 41,873 45,000 (2,250) 4.8% Interdepartmental Charges Interdepartmental Charges Insurance 4,347 4,900 4,900 4,640 5, % Interdepartmental Charges 4,347 4,900 4,900 4,640 5, % Total Expenditures by Type 66,211 88,650 88,650 71,940 86,890 (1,760) 2.0% 6.20% 2017 Expenditures by Type 42.01% Notary Public and Alaska My in for Supplies Contract/Purchased Services Interdepartmental Charges 51.79% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. There are no significant changes between the adopted operating budget for 2016 and the proposed operating budget for NARRATIVE Operating Supplies: $5,000 This account provides for consumable supplies that are normally not of a maintenance nature. Included are paper towels, toilet tissue, soap, trash can liners, light bulbs, etc. N - 15

198 Museum Centennial Building O&M Building and Grounds Maintenance Materials: $2,500 This account provides for materials for the repair and maintenance of the Centennial Building and the upkeep of the grounds HeatingFuel: $29,000 This account provides for heating fuel to heat the Centennial Building Janitorial and Cleaning Services: $15,000 This account provides for services to clean the Centennial Building. Cleaning services for 2017 will not be needed during renovation (Jan Mar) but will increase for summer season based on expanded restrooms Buildings and Grounds Maintenance Services: $5,000 This account provides for contractual services such as fire and intrusion alarm maintenance & repair, annual inspections, boiler maintenance, broken window replacement, etc Electric, Water, Sewer & Solid Waste: $25,000 This account provides for electric, water, sewer and solid waste utility services Interdepartmental Charges Insurance: $5,390 This account provides for risk management services and claims. N - 16

199 Museum Heritage Center Building O&M COST CENTER OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Operating Supplies 1,498 1,600 1,600 1,600 1, % Building & Grounds Maint Materials 1,327 2,300 2,300 2,300 2, % Heating Fuel 13,917 17,850 17,850 15,000 17, % Supplies 16,742 21,750 21,750 18,900 21, % Contract/Purchased Services Janitorial and Cleaning Services 6,935 8,625 8,625 6,947 8,000 (625) 7.2% Building & Grounds Maint Services 9,652 16,175 16,175 13,000 16, % Electric, Water, Sewer & Solid Waste 8,720 10,400 10,400 9,000 10, % Contract/Purchased Services 25,307 35,200 35,200 28,947 34,575 (625) 1.8% Interdepartmental Charges Interdepartmental Charges Insurance 3,325 3,700 3,700 3,550 4, % Interdepartmental Charges 3,325 3,700 3,700 3,550 4, % Total Expenditures by Type 45,374 60,650 60,650 51,397 60,435 (215) 0.4% 6.8% 2017 Expenditures by Type 36.0% Supplies Contract/Purchased Services Interdepartmental Charges 57.2% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. There are no significant changes between the adopted operating budget for 2016 and the proposed operating budget for NARRATIVE Operating Supplies: $1,600 This account provides for supplies that are normally not of a maintenance nature and are required to support department operations. Included are paper towels, toilet tissue, soap, trash can liners, light bulbs and tubes, etc. N - 17

200 Museum Heritage Center Building O&M Building and Grounds Maintenance Materials: $2,300 This account provides for materials for the repair and maintenance of the Totem Heritage Center and upkeep of the grounds HeatingFuel: $17,850 This account provides for heating fuel to heat the Totem Heritage Center Janitorialand Cleaning Services: $8,000 This account provides for services to clean the Totem Heritage Center Buildings and Grounds Maintenance Services: $16,175 This account provides for contractual services such as fire and intrusion alarm maintenance & repair, carpet replacement, landscaping, and broken window repair, etc. Included are preventive maintenance measures Electric, Water, Sewer & Solid Waste: $10,400 This account provides for electric, water, sewer and solid waste utility services at the Totem Heritage Center Interdepartmental Charges Insurance: $4,110 This account provides for risk management services and claims. N - 18

201 Museum Historical Commission COST CENTER OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Operating Supplies % Supplies % Contract/Purchased Services Ads and Public Announcements % Other Contractual Services % Contract/Purchased Services % Total Expenditures by Type 1,425 1, , % 2017 Expenditures by Type 35.1% 64.9% Supplies Contract/Purchased Services NARRATIVE Operating Supplies: $500 This account provides for supplies for public meetings and the production of informational materials Ads and Public Announcements: $500 This account provides for advertising and announcements in publications, newspapers, trade journals, Internet or broadcasts over radio and television. Included are requests for proposals, meeting announcements, membership, etc Other Contractual Services: $425 This account provides for contractual services such as production of historical markers or historical surveys. N - 19

202 Museum Grants Program DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Artifacts 15,000 15,000 7,500 10,500 (4,500) 30.0% Supplies 15,000 15,000 7,500 10,500 (4,500) 30.0% Contractual Services Other Contractual Services 10,000 10,000 4,936 10, % Contractual Services 10,000 10,000 4,936 10, % Minor Capital Furniture & Fixtures 17,832 17,832 7,832 15,000 (2,832) 15.9% Minor Capital 17,832 17,832 7,832 15,000 (2,832) 15.9% Total Expenditures 42,832 42,832 20,268 35,500 (7,332) 17.1% 2017 Expenditures by Type 42.2% 29.6% 28.2% Supplies Contractual Services Minor Capital Budget Adopted/2017 Grant Program Actual Adopted Amended Estimate Budget Incr(Decr) % Rasmuson Art Acquisition 25,000 25,000 7,500 20,500 (4,500) 18.0% Museums Alaska 7,832 7,832 7,832 5,000 (2,832) 36.2% Grant in Aid 10,000 10,000 4,936 10, % Total Expenditures by Grant Program 42,832 42,832 20,268 35,500 (7,332) 17.1% NARRATIVE Artifacts: $10,500 This account provides for the acquisition of grant funded artifacts, artwork and other items for the permanent collection Other Contractual Services: $10,000 This account provides for grant funded services or materials associated with the planning and installation of a permanent exhibit at the Tongass Historical Museum Furniture and Fixtures: $15,000 This account provides for the acquisition of grant funded collections storage furniture, supplies, and other items associated with the improved storage of collections. N - 20

203 Museum Capital Budget Budget Adopted/2017 Major Capital Projects Actual Adopted Amended Estimate Budget Incr(Decr) % Buildings 69,059 1,090,559 1,387,353 1,368, ,000 (746,559) 68.5% Infrastructure and Plant 10,000 10,000 7,499 70,000 60, % Total Major Capital Outlay 69,059 1,100,559 1,397,353 1,375, ,000 (686,559) 62.4% 2017 Capital Improvement Projects Funding Sources Project # Project PW Sales Tax Fund CPV Funds Comm. Facility Dev. Fund Total Buildings Centennial Building Permanent Exhibit 100, , ,000 CentennialBuilding Fire Sprinkler System 30,000 30,000 Centennial Building HVAC 100, ,000 Centennial Building Public Art 5,000 5,000 10,000 Totem Heritage Center Wm's Restroom ADA Update 2,000 2,000 4,000 Total Buildings 107, , , Infrastructure and Plant Clean and Repair Totem Poles 70,000 70,000 Total Infrasture and Plant 70,000 70,000 Total 2017 Capital Budget 177, , ,000 Expenditures by Type Expenditures by Funding Source 16.9% 42.8% 57.2% 83.1% Comm. Facility Dev. Fund CPV Funds Buildings Infrastructure and Plant N - 21

204 Civic Center Summary The Ted Ferry Civic Center is a multi purpose public facility intended to encourage a balance of uses to meet the economic, social, cultural and convention needs of the Ketchikan community. The Civic Center staff is committed to ensuring that the facility and services provided reflect favorably on the City of Ketchikan. The Civic Center Department is comprised of one operating division and oversees one Capital Improvement Program. DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Operations 408, , , , ,022 7, % Capital Improvement Program 137, , , , ,900 60, % Total 545, , , , ,922 68, % Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 287, , , , ,227 6, % Supplies 41,585 66,455 62,605 55,070 66, % Contract/Purchased Services 67,964 77,723 85,073 81,310 78, % Minor Capital Outlay 6,672 13,300 9,800 9,800 13, % Interdepartmental Charges 4,783 6,600 6,600 5,140 6,530 (70) 1.1% Major Capital Outlay 137, , , , ,900 60, % Total 545, , , , ,922 68, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Charges for Services 116,771 98,200 98,200 95,200 98, % Public Works Sales Tax 137, , , , ,900 60, % Transient Sales Tax 291, , , , ,822 7, % Total 545, , , , ,922 68, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Operations , % Total , % O - 1

205 Civic Center Civic Center Operations MISSION STATEMENT It is the mission of the Ted Ferry Civic Center staff to operate the Civic Center in a courteous and professional manner; to ensure that the building is well maintained, available and operationally ready to meet the needs of those desiring to use it; to assist the public in coordination and production of events from booking through final billing; and to provide flexible and technologically current services to those with special needs. Civic Center Manager Administrative Secretary Building Superintendent Event Staff GOALS FOR 2017 Continue to provide well trained staff for all types of events. Ensure facility is maintained and operationally ready to meet the needs of the community, out of town conventions and visitors. Continue marketing via the Internet through the City s website, Facebook, Twitter, Linked In and via the Ketchikan Visitor Bureau s new website for members. Keep current on trends in social media for the Civic Center to provide information to the community regarding current events at the facility, availability of the facility and event planning tips & guidelines. Continue working with the KVB on marketing strategies and increasing the economic impact of the Civic Center. Increase facility use by local individuals, businesses and organizations through exceptional customer service, facility promotions and local advertising. ACCOMPLISHMENTS FOR 2016 During 2016, the Ted Ferry Civic Center was booked for 151 days for various meetings, banquets, ceremonies, auctions, fundraisers and artistic events. In the spring of 2016 the Ted Ferry Civic Center underwent a structural survey to evaluate the building for future repairs and improvements. In August of 2016 the Ted Ferry Civic Center underwent a mechanical survey to evaluate the heating and ventilation system for future repairs and improvements. The tritium exit signs for the Ted Ferry Civic Center were successfully replaced in March of Work to address inconsistencies with the Ted Ferry Civic Center relay lighting system are scheduled to be completed in the fall of The replacement of the underground oil tank at the Ted Ferry Civic Center is scheduled to be replaced in September of Six exterior doors are scheduled to be replaced in the fall of There are 79 days prebooked for 2017 (39 events) for a variety of meetings, banquets, ceremonies, auctions, fundraisers and artistic events. O - 2

206 Civic Center Civic Center Operations DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 287, , , , ,227 6, % Supplies 41,585 66,455 62,605 55,070 66, % Contract/Purchased Services 67,964 77,723 85,073 81,310 78, % Minor Capital Outlay 6,672 13,300 9,800 9,800 13, % Interdepartmental Charges 4,783 6,600 6,600 5,140 6,530 (70) 1.1% Total Expenditures 408, , , , ,022 7, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Charges for Services 116,771 98,200 98,200 95,200 98, % Transient Sales Tax 291, , , , ,822 7, % Total Funding 408, , , , ,022 7, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Civic Center Manager , % Administrative Secretary , % Building Superintendent , % Total , % 2017 Expenditures by Type 14.57% 17.15% 2.91% 1.43% 63.94% Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges O - 3

207 Civic Center Civic Center Operations OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $6,494, or 2.3%, due to annual employee step increases; a 2.0% cost of living adjustment for non represented employees that will become effective January 1, 2017; and increased employee health insurance co pays for non represented employees that became effectivejuly 1, DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 135, , , , ,817 5, % Overtime Wages 1,224 2,100 2,100 1,100 2, % Temporary Wages 38,944 36,000 36,000 36,000 36, % Payroll Taxes 13,004 13,410 13,410 12,870 13, % Pension 32,291 30,690 30,690 30,210 31,890 1, % Health and Life Insurance 52,771 53,600 53,600 52,280 53, % Workers Compensation 8,767 10,660 10,660 8,550 7,250 (3,410) 32.0% Other Benefits 4,927 2,270 2,270 2,270 4,520 2, % Personnel Services and Benefits 287, , , , ,227 6, % Supplies Office Supplies 1,212 1,000 1,500 1,500 2,000 1, % Operating Supplies 2,209 2,100 2,100 2,100 2, % Safety Program Supplies (25) 10.0% Janitorial Supplies 3,690 4,000 4,000 3,900 4, % Small Tools and Equipment 3,531 3,500 3,500 3,500 3, % Inventory for Resale 3,985 4,000 6,000 6,000 5,000 1, % Building & Grounds Maint Materials 4,379 4,500 4,500 4,500 4, % Furniture & Fixtures Maint Materials 2,510 2,700 2,700 2,600 2, % Machinery & Equip Maint Materials 1,739 1,200 1,200 1,200 1, % Infrastructure Maintenance Materials 1,578 3,500 3,500 3,450 3, % Postage % Heating Fuel 15,559 38,760 32,185 25,000 36,760 (2,000) 5.2% Machinery & Equipment Fuel % Periodicals % Business and Meal Expenses % Uniforms/Badges/Clothing % Supplies 41,585 66,455 62,605 55,070 66, % O - 4

208 Civic Center Civic Center Operations Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Contract/Purchased Services Travel Business 1,500 1,450 1, % Travel Training 1,500 1,500 1, % Training and Education 1, % Ads and Public Announcements % Marketing (200) 25.0% Printing and Binding % Assn. Membership Dues & Fees % Bank and Merchant Charges % Janitorial and Cleaning Services 6,675 6,000 6,000 6,000 6, % Software Maintenance Services 1,421 1,500 1,500 1,500 1, % Furniture & Fixtures Maint Services % Building & Grounds Maint Services 6,016 6,000 8,000 8,000 6, % Machinery & Equip Maint Services 2,096 2,250 2,250 2,250 2, % Technical Services 5,520 4,000 4,000 4,000 4, % Engineering & Architectural Svcs 7,000 7, % Rents and Leases Machinery & Equip ,000 1, % Telecommunications 10,501 11,910 11,910 11,910 12, % Electric, Water, Sewer & Solid Waste 33,456 38,500 36,300 36,000 38, % Contract/Purchased Services 67,964 77,723 85,073 81,310 78, % Minor Capital Furniture and Fixtures 3,016 2,500 2,500 2,500 2, % Machinery and Equipment 3,656 8,000 3,750 3,750 8, % Computers, Printers and Copiers 2,000 2,750 2,750 2, Software % Minor Capital Outlay 6,672 13,300 9,800 9,800 13, % Interdepartmental Charges Interdepartmental Insurance 4,689 6,600 6,600 5,140 6,530 (70) 1.1% Interdepartmental Garage 94 NA Interdepartmental Charges 4,783 6,600 6,600 5,140 6,530 (70) NA Total Expenditures by Type 408, , , , ,022 7, % NARRATIVE Regular Salaries and Wages: $142,817 This account provides for compensation paid to all regular salaried and hourly employees of the Ted Ferry Civic Center Overtime Wages: $2,100 This account provides for compensation paid to all regular and temporary hourly employees for hours worked in excess of a regular working cycle Temporary Wages: $36,000 This account provides for compensation paid to temporary salaried and hourly employees of the Ted Ferry Civic Center Payroll Taxes: $13,840 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes. O - 5

209 Civic Center Civic Center Operations Pension: $31,890 This account provides for employer contributions to retirement plans for which the City participates Health and Life Insurance: $53,810 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $7,250 This account provides for employer contributions toward workers compensation Other Benefits: $4,520 This account provides for expenditures for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Office Supplies: $2,000 This account provides for expenditures for office supply items including paper, pens, file folders, scotch tape, toner, ink cartridges, and minor office equipment such as staplers and adding machines Operating Supplies: $2,100 This account provides for supplies that are normally not of a maintenance nature and are required to support department operations. Included are supplies such as brochures, medical supplies, posters, convention center materials, batteries for radios and cordless microphones, public trash cans and public benches Safety Program Supplies: $225 This account provides for the City safety program. Included are safety information brochures, safety training audio and video programs, safety equipment, OSHA required medical exams, specialized hazardous materials handling and disposal information and specialized protective safety clothing Janitorial Supplies: $4,000 This account provides for cleaning and sanitation supplies Small Tools and Equipment: $3,500 This account provides for minor tools, operating and office equipment with a value of less than $1,000. Included are hand tools, computer accessories, space heaters, kitchen and dining equipment, radios, calculators, file cabinets and similar types of minor tools and equipment Inventory for Resale: $5,000 This account provides for inventory purchases that are to be resold or rented to end users. Included are video and media equipment, and beverages and snacks Building and Grounds Maintenance Materials: $4,500 This account provides for the materials required for the repair and maintenance of the Ted Ferry Civic Center and upkeep of the grounds around the TFCC Furniture and Fixtures Maintenance Materials: $2,700 This account provides for the materials required for the repair and maintenance of furniture and building fixtures in the TFCC Machinery and Equipment Maintenance Materials: $1,200 This account provides for the materials required for the repair and maintenance of machinery and equipment owned or leased and operated by the City. Included are office equipment, operating equipment, computer networks and computers Infrastructure Maintenance Materials: $3,500 This account provides for the materials required for the repair and maintenance of infrastructure owned or leased and operated by the City. Included are streets, sidewalks and parking lots Postage: $155 This account provides for postal related services such as postage, express delivery and mailing materials Heating Fuel: $36,760 This account provides for heating fuel at the TFCC Machinery and Equipment Fuel and Lubricants: $100 This account provides for gasoline, diesel fuel, propane and lubricants used in the operation of TFCC machinery and equipment. O - 6

210 Civic Center Civic Center Operations Periodicals: $165 This account provides for newspapers, magazines and trade journals Business and Meal Expenses: $400 This account provides for reimbursements to employees for business and job related meals, mileage reimbursements and other business related expenses Allowances Uniforms/Badges/Clothing: $300 This account provides for uniforms, badges and clothing purchased for the use by department personnel Travel Business: $1,500 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for business and trade meetings Travel Training: $1,500 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training. Trade meetings for which training and education make up a substantial portion of the meeting should be charged to this account instead of Account Training and Education: $500 This account provides for registration fees, training fees, training materials, tuition reimbursements and other incidental expenses associated with training and educating employees; and on premises training programs provided by staff or third parties Ads and Public Announcements: $500 This account provides for advertising and announcements in publications, newspapers, trade journals, Internet or broadcasts over radio and television. Included are recruiting, requests for proposals and contracts Marketing: $600 This account provides for expenditures for announcements in publications, newspapers, trade journals, internet, or broadcasts over radio and television for marketing and promoting competitive services offered by the TFCC Printing and Binding: $650 This account provides for job printing and binding services. Included are the designing and printing of forms, posters and large printing orders such as the TFCC Rental Guidelines Assn. Membership Dues and Fees: $650 This account provides for memberships in the International Association of Venue Managers and Meeting Professionals International Bank and Merchant Charges: $650 This account provides for monthly merchant fees for use of credit and debit cards for payments of TFCC services Janitorial and Cleaning Services: $6,000 This account provides for carpet cleaning and laundry services Software Maintenance Services: $1,500 This account provides for maintenance agreements to support the two licensed software systems, Caterease & Meeting Matrix, the Civic Center uses for invoicing and room set up diagrams Furniture and Fixtures Maintenance Services: $500 This account provides for the services required for repair and maintenance of furniture and building fixtures by outside contractors. This account includes contract labor and materials required to provide the service Buildings and Grounds Maintenance Services: $6,000 This account provides for the services required for repair and maintenance of buildings and the upkeep of grounds. This account includes contract labor and materials required to provide the service. O - 7

211 Civic Center Civic Center Operations Machinery and Equipment Maintenance Services: $2,250 This account provides for the services required for the repair and maintenance of office equipment, machinery and other operating equipment owned or leased by the City. This account includes contract labor and materials required to provide the service. It also includes maintenance service agreements for equipment that does not require software support and are paid on either a fixed fee or a fee based on usage Technical Services: $4,000 This account provides for services that are not regarded as professional but require technical or special knowledge. Included are data processing, background checks, employee drug testing, water and wastewater testing, data base management, video camera operators, website maintenance, framing, pest control, security and alarm monitoring and testing Rents and Leases Machinery & Equipment: $500 This account provides for the rent and lease of machinery and equipment Telecommunications: $12,560 This account provides for telecommunication services. Included are charges for wired and wireless telecommunications services, cell phones, Internet, long distance and toll free numbers Electric, Water, Sewer & Solid Waste: $38,500 This account provides for electric, water, sewer and solid waste utility services Furniture and Fixtures: $2,500 This account provides for acquisition of furniture and fixtures. Included are desks, chairs, tables, workstations, file cabinets, storage cabinets and building fixtures Machinery and Equipment: $8,000 This account provides for the acquisition of machinery and equipment usually composed of a complex combination of parts. Included are office equipment and operating equipment required to provide services or maintain capital assets Computers, Printers, and Copiers: $2,000 This account provides for desktops, laptops, and tablet computers Software: $800 This account provides for acquisition of software systems and upgrades not covered by maintenance agreements Interdepartmental Charges Insurance: $6,530 This account provides for risk management services and claims. O - 8

212 Civic Center Capital Budget Budget Adopted/2017 Major Capital Projects Actual Adopted Amended Estimate Budget Incr(Decr) % Buildings 155, ,000 52, ,600 37, % Furniture and Fixtures 11,840 61,925 69,025 13,950 35,500 (26,425) 42.7% Machinery and Equipment 125,530 20,000 60,000 45,200 69,800 49, % 137, , , , ,900 60, % Total Major Capital Outlay 2017 Capital Improvement Projects Funding Sources Project # Project PW Sales Tax Fund Total Buildings Update Fire Alarm System 60,000 60,000 Operable Wall Maintenance and Repair 20,000 20,000 Repaint Exterior of Building 105, ,000 Replacee Doors 7,600 7,600 Total Buildings 192, , Furniture and Fixtures Interior Lighting Improvements 35,500 35,500 Total Furniture and Fixtures 35,500 35, Machinery and Equipment Heating and Ventilation System Upgrades 60,000 60,000 Replace Underground Oil Tank 9,800 9,800 Total Machinery & Equipment 69,800 69,800 Total 2017 Capital Budget 297, , % Expenditures by Type Expenditures by Funding Source 23.4% 64.7% Buildings Machinery and Equipment 100% PW Sales Tax Fund Furniture and Fixtures O - 9

213 Tourism and Economic Development Summary Tourism and Economic Development is comprised of one operating division and one capital improvement program. A significant portion of the funding for many of the programs administered by Tourism and Economic Development are funded from the State Commercial Vessel Passenger Excise Tax. DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Operations 162, , , , , % Capital Improvement Program 3,785,821 40,000 40,000 40, % Total 3,948, , , , , % Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Contract/Purchased Services 162, , , , , % Major Capital Outlay 3,785,821 40,000 40,000 40, % Total 3,948, , , , , % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % Economic/Parking Dev Fund 162, , , , , % CPV Fund 3,785,821 40,000 40,000 40,000 40, % Total 3,948, , , , , % P - 1

214 Tourism and Economic Development Operations Division DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Contract/Purchased Services 162, , , , , % Total Expenditures 162, , , , , % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % Economic/Parking Dev Fund 162, , , , , % Total Funding 162, , , , , % 2017 Expenditures by Type Contract/Purchased Services % OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. There are no other significant changes between the adopted operating budget for 2016 and the proposed operating budget for DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Contract/Purchased Services Marketing Services 162, , , , , % Contract/Purchased Services 162, , , , , % Total Expenditures by Type 162, , , , , % P - 2

215 Tourism and Economic Development Operations Division NARRATIVE Marketing Services: $162,450 This account provides for services provided by the Ketchikan Visitors Bureau to market and promote the community of Ketchikan. Forty nine percent, or $162,450, of the Ketchikan Visitors Bureau annual contract is paid by the Economic and Parking Development Fund and fifty one percent is paid by the Port Enterprise Fund. P - 3

216 Tourism & Economic Development Capital Budget Budget Adopted/2017 Major Capital Projects Actual Adopted Amended Estimate Budget Amount % Infrastructure & Plant 3,785,821 NA Other Assets 40,000 40,000 40, % Total Major Capital Outlay 3,785,821 40,000 40,000 40, % 2017 Capital Improvement Projects Funding Sources Project # Project Commercial Passenger Vessel Funds Grants Total Other Assets Timber and Wood Products Interpretive Exhibit 15,000 15,000 Stamp Mill Interpretive Exhibit 25,000 25,000 Total Other Assets 40,000 40,000 Total 2017 Capital Budget 40,000 40,000 Expenditures by Type Expenditures by Funding Source 100% Other Assets 100% Commercial Passenger Vessel Funds P - 4

217 Public Works Engineering Summary The Engineering Department is led and managed by registered professional civil engineers overseeing design, mapping and surveying technicians, two building inspectors and support staff for a total of twelve (12.0) full time employees. Additionally, the department manages all forms of site development, construction permits, building inspections, derelict building demolition, infrastructure inspections and emergency responses to all facets of the City s Public Works Department infrastructure. Public Works Engineering Operations Building Inspection KPU Administration Building O&M Capital The Public Works Engineering Department is comprised of two operating divisions and oversees a Capital Improvement Program. DEPARTMENT EXECUTIVE SUMMARY Adopted /2017 Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Engineering 1,204,005 1,462,188 1,462,188 1,366,157 1,470,436 8, % Building Inspection 243, , , , ,212 (5,407) 2.1% KPU Administration Building O&M 73,682 89,215 89,215 88,985 97,980 8, % Capital Improvement Program 60, , ,250 58, ,000 (20,000) 12.0% Total 1,581,774 1,971,022 1,974,272 1,743,372 1,962,628 (8,394) 0.4% Adopted /2017 Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 1,254,057 1,534,117 1,497,617 1,399,455 1,537,438 3, % Supplies 52,615 59,930 78,480 74,874 43,100 (16,830) 28.1% Contract/Purchased Services 188, , , , ,700 4, % Minor Capital Outlay 13,539 15,200 21,700 16,638 37,700 22, % Interdepartmental Charges/Reimb Credits 11,721 20,800 20,800 12,950 18,690 (2,110) 10.1% Major Capital Outlay 60, , ,250 58, ,000 (20,000) 12.0% Total 1,581,774 1,971,022 1,974,272 1,743,372 1,962,628 (8,394) 0.4% Adopted /2017 Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Tax Support 730, , , , ,650 (23,107) 2.6% Licenses and Permits 81,172 73,500 73,500 73,500 73, % Charges for Services 8,397 10,000 10,000 10,000 10, % Public Works Sales Tax Fund 60, , ,250 58, ,000 (20,000) 12.0% Solid Waste Fund 207, , , , ,160 10, % Wastewater Fund 242, , , , ,440 11, % Harbor Fund 64,840 82,000 82,000 76,670 85,280 3, % Port Fund 41,575 51,000 51,000 47,685 53,040 2, % KPU Enterprise Fund 144, , , , ,558 7, % Total 1,581,774 1,971,022 1,974,272 1,743,372 1,962,628 (8,394) 0.4% Q - 1

218 Public Works Engineering Summary Adopted /2017 Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Engineering , % Building Inspection , % Total , % Q - 2

219 2017 ANNUAL BUDGET Public Works Engineering Operations MISSION STATEMENT The mission of the Engineering Division is to consistently provide high quality administrative and engineering support to City residents and to each of the operating divisions of General Government and Ketchikan Public Utilities. The Engineering Division is responsible for providing design engineering; contract administration; project management; mapping; inspection and surveying; plan reviews and building inspection; administration of cemetery operations and hospital infrastructure contracts; management ofcapital improvement projects; and long range infrastructure replacement planning. Public Works Director / Engineering Manager 2014 Adopted Budget 2014 Amended Budget Assistant Public Works Director Administrative Assistant Sr. Project Engineer Contract/Grants Administrator Sr. Engineering Technician Construction/Survey Coordinator on of Dang PWST Engineering Technician CADD & GIS Engineering Technician Project Inspector GOALS FOR 2017 The Public Works Engineering Division will provide complete engineering services, including design, drafting, maps, plans and specifications; bidding services and clerical support; project inspections; and construction management for capital improvement projects (CIP's) for the departments of General Government and the divisions of Ketchikan Public Utilities. Continue to improve data management of all municipal facilities and properties. Focus on in house design in order to reduce consultant expenditures. Provide excellent customer service to all City departments/kpu divisions and residents of the community. Design and solicit bids for numerous CIP's as authorized by the City Council. Bid and construct all budgeted CIP's by year end. Continue to provide cross training to ensure consistent service levels during annual leave and other absences. Provide technicalassistance to other City departments/kpudivisions in a professional, timely and accurate manner. Assist other departments/divisions in order to help them self perform in order to offset fiscal constraints. Q - 3

220 2017 ANNUAL BUDGET Public Works Engineering Operations ACCOMPLISHMENTS FOR 2016 Continued responsibility for general engineering management and contract administration for the departments/divisions of General Government and Ketchikan Public Utilities. Continued upgrade of the division s current mapping system and provided maps for public and private sector use. Reviewed and issued excavation and sewer permits for work in the public right of way. Administered the Bayview Cemetery Operations and Maintenance Contract. Successfully completed the 2016 Spring Cleanup. Drafted and submitted numerous Federal and State grant proposals. Provided support to the Law Department in claims investigations and development of legal descriptions for easements and deeds. Prepared ADEC and administrative grant applications. Managed ongoing bridge maintenance activities. Continued administration of the ongoing PeaceHealth Ketchikan Medical Center (PHKMC) Addition and Alterations Project. Continued ongoing administration of the DOWL project management contract for the PHKMC Expansion Project. Continued ongoing administration of the PHKMC subdivision survey to create distinct parcels for the PHKMC Expansion Project. Completed design and administration of the Mill Street Water Main Project. Administered 2016 Safer Street and Sidewalks Projects, with notable improvements on Baranof Avenue. Completed administration and project management for removal of Underground Storage Tank at the Wastewater Treatment Plant. Continued administration and assisted with recommendations for the Centennial Building Analysis and Design Project. Facilitated repairs of municipally owned buildings and facilities, including the sprinkler system of the Civic Center. Disposed of City surplus equipment and vehicles. Administered vehicle and equipment procurementcontracts. Identified anddesigned solutions to neighborhood storm drainage problems. Administered the Hopkins Alley Trestle Repair Project. Administered 2016 Asphalt Overlay Projects. Provided surveying services for General Government and KPU. Provided numerous parking, restriping and re signing upgrades including the installation of a new radar speed sign. Designed, bid and administered the demolition of the derelict building at 2415/2417 Fifth Avenue. DIVISION SUMMARY Adopted /2017 Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 1,058,058 1,311,103 1,274,903 1,193,665 1,311, % Supplies 43,940 52,575 71,125 68,199 36,800 (15,775) 30.0% Contract/Purchased Services 80,936 70,110 81,260 80,975 73,060 2, % Minor Capital Outlay 13,539 13,500 20,000 14,938 36,000 22, % Interdepartmental Charges 7,532 14,900 14,900 8,380 12,830 (2,070) 13.9% Total Expenditures 1,204,005 1,462,188 1,462,188 1,366,157 1,470,436 8, % Q - 4

221 2017 ANNUAL BUDGET Public Works Engineering Operations Adopted /2017 Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Tax Supported 517, , , , ,556 (23,632) 3.6% Charges for Services 8,397 10,000 10,000 10,000 10, % Solid Waste Fund 207, , , , ,160 10, % Wastewater Fund 242, , , , ,440 11, % Harbor Fund 64,840 82,000 82,000 76,670 85,280 3, % Port Fund 41,575 51,000 51,000 47,685 53,040 2, % KPU Enterprise Fund 122, , , , ,960 4, % Total Funding 1,204,005 1,462,188 1,462,188 1,366,157 1,470,436 8, % Adopted /2017 Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Director/Engineering Manager , % Assistant Public Works Director , % Sr. Project Engineer , % Survey Field Technician (1.00) 100.0% Construction/Survey Coordinator , % Contract/Grants Administrator , % Public Works Inspector , NA Sr. Engineering Technician ,020 (1.00) 50.0% Engineering Technician , NA Engineering Tech/CADD & GIS , % Administrative Assistant , % Total , % 2.5% 5.0% 2.4% 0.9% 2017 Expenditures by Type Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges 89.2% Q - 5

222 2017 ANNUAL BUDGET Public Works Engineering Operations OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $643, or by 0.0%, due to annual employee step increases; a 2.0% cost of living adjustment for IBEW, Local 1547 employees and non represented employees that will become effective January 1, 2017; and increased employee health insurance co pays for non represented employees that became effective July 1, Moving Expenses (Account No ) decreased by $15,000, or by 100.0%, in anticipation that no moving expenses associated with filling vacant positions will occur. Furniture and Fixtures (Account ) increased by $5,500, or by 366.7%, due to the planned replacement of worn or obsolete office furniture. Computers, Printers & Copiers (Account ) increased by $17,000, or by 212.5%, due to the need to replace the current plotter, which has reached the end of its useful life, and the replacement of desktop computers as recommended by the Information Technology Department. DIVISION OPERATING BUDGET DETAIL Budget Adopted /2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 653, , , , ,661 13, % Overtime Wages 33,358 50,000 45,000 40,000 50, % Temporary Wages 15,044 55,600 33,750 24,500 35,000 (20,600) 37.1% Payroll Taxes 51,350 64,870 64,870 58,990 64,660 (210) 0.3% Pension 126, , , , ,050 1, % Health and Life Insurance 171, , , , ,850 2, % Workers Compensation 11,991 14,220 14,220 14,220 14, % Other Benefits (6,910) 20,810 20,810 20,810 23,470 2, % Allowances PW Clothing 1,461 2,000 2,000 2,000 2, % Moving Expenses Taxed Allowances Medical Expenses % Personnel Services and Benefits 1,058,058 1,311,103 1,274,903 1,193,665 1,311, % Q - 6

223 2017 ANNUAL BUDGET Public Works Engineering Operations Budget Adopted /2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Office Supplies 14,492 14,000 17,400 17,399 16,000 2, % Operating Supplies 5,206 5,000 5,000 5,000 5, % Safety Program Supplies 1,508 2,000 2,000 2,000 2, % Small Tools and Equipment 2,783 3,500 3,500 3,500 3, % Vehicle Maintenance Materials % Machinery & Equip Maint Materials 1,800 1,800 1,000 1,000 (800) 44.4% Postage ,000 1,000 1, % Vehicle Motor Fuel & Lubricants 3,380 7,125 7,125 5,000 5,000 (2,125) 29.8% Professional and Technical Publications % Moving Expenses 15,000 15,000 30,000 30,000 (15,000) 100.0% Business and Meal Expenses 18 2,000 2,000 2,000 2, % Supplies 43,940 52,575 71,125 68,199 36,800 (15,775) 30.0% Contract/Purchased Services Travel Business 4,339 5,000 5,000 5,000 5, % Travel Training 2,809 6,000 6,000 6,000 6, % Training and Education 1,810 6,000 6,000 6,000 6, % Ads and Public Announcements 9,378 11,000 10,005 10,000 10,000 (1,000) 9.1% Professional & Technical Licenses 550 1,500 1,500 1,500 1, % Assn. Membership Dues & Fees 750 1,000 1,000 1,000 1, % Buildings & Operating Permits % Vehicle Licenses % Software Licenses 425 4,250 4,250 4,250 4, % Service Charges & Fees 1, New Gov't Contractual Services % Software Maintenance Services 14,825 16,000 17,470 17,470 17,500 1, % Machinery & Equipment Maintenance Ser 300 1,200 1,200 1,000 1,000 (200) 16.7% Engineering & Architectural Services 2,580 2,500 2,500 2,500 2, % Management and Consulting Services 30,658 4,250 14,250 14,200 4, % Telecommunications 10,150 11,000 11,030 11,000 13,000 2, % Contract/Purchased Services 80,936 70,110 81,260 80,975 73,060 2, % Minor Capital Furniture and Fixtures 1,550 1,500 6,500 1,500 7,000 5, % Computers, Printers & Copiers 11,989 8,000 9,500 9,438 25,000 17, % Software ` 4,000 4,000 4,000 4, % Minor Capital Outlay 13,539 13,500 20,000 14,938 36,000 22, % Interdepartmental Charges/ Reimbursable Credits Interdepartmental Insurance 7,532 14,900 14,900 8,380 12,830 (2,070) 13.9% Interdepartmental Charges 7,532 14,900 14,900 8,380 12,830 (2,070) 13.9% Total Expenditures by Type 1,204,005 1,462,188 1,462,188 1,366,157 1,470,436 8, % Q - 7

224 2017 ANNUAL BUDGET Public Works Engineering Operations NARRATIVE Regular Salaries & Wages: $756,661 This account provides for compensation paid to all regular salaried and hourly employees of the Engineering Division Overtime Wages: $50,000 This account provides for compensation paid to all regular and temporary hourly employees for hours worked in excess of a regular working cycle Temporary Wages: $35,000 This account provides for compensation paid to temporary salaried and hourly employees of the Engineering Division Payroll Taxes: $64,660 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $145,050 This account provides for employer contributions to retirement plans Health & Life Insurance: $219,850 This account provides for employer contributions to employee health and life insurance plans Workers' Compensation: $14,980 This account provides for employer contributions to workers' compensation Other Benefits: $23,470 This account provides for expenditures for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Allowances Public Works Clothing: $2,000 This account provides for employer provided protective clothing allowances paid directly to represented employees of Public Works pursuant to collective bargaining agreements or the Personnel Rules Allowances Medical Expenses: $75 This account provides for employee medical exams paid directly to employees. These benefits are taxable to the employee Office Supplies: $16,000 This account provides for paper, pens, pencils, adding machine ribbons and tape, note pads, file folders, scotch tape, toner, ink cartridges, photocopy charges, small desk accessories and minor office equipment such as adding machines, staplers, comb binding machines and tape dispensers Operating Supplies: $5,000 This account provides for supplies that are normally not of a maintenance nature and are required to support department operations. Included are supplies such as employee awards and recognition pins, brochures, posters, general materials for public programs, engineering materials, paint, and solvents Safety Program Supplies: $2,000 This account provides for safety training audio and video programs, safety equipment, specialized hazardous materials handling and disposal information, specialized protective safety clothing and traffic control Small Tools & Equipment: $3,500 This account provides for minor tools, operating and office equipment with a value of less than $1,000. Included are hand tools, snow removal equipment, computer accessories, space heaters, fans, radios, calculators, file cabinets, and similar types of minor tools and equipment Vehicle Maintenance Materials: $800 This account provides for the repair and maintenance of vehicles owned or leased and operated by the Public Works Engineering Division Machinery & Equipment Maintenance: $1,000 This account provides for repair and maintenance of machinery and equipment owned or leased by the City. Included are office equipment, surveying equipment, GPS and data collection equipment and computers Postage: $1,000 This account provides for postal related services such as postage, express delivery and mailing materials Vehicle Motor Fuel & Lubricants: $5,000 This account provides for gasoline, diesel fuel, propane and lubricants used in the operations of City vehicles. Q - 8

225 2017 ANNUAL BUDGET Public Works Engineering Operations Professional & Technical Publications: $500 This account provides for professional and technical publications. Included are professional handbooks, print and electronic subscription services for management, engineering, building codes, professional standards and technical journals Business & Meal Expenses: $2,000 This account provides for reimbursements to employees for business and job related meals, mileage for use of personal vehicles, and other business related expenses Travel Business: $5,000 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for business Travel Training: $6,000 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training Training & Education: $6,000 This account provides for registration fees, training fees, training materials, tuition reimbursements and other incidental expenses associated with training and educating employees; and on premises training programs provided by staff or a third party Ads & Public Announcements: $10,000 This account provides for advertising and announcements in publications, newspapers, trade journals, Internet or broadcasts over radio and television. Included are legal notices, public service announcements, community issues, recruiting, etc Professional & Technical Licenses: $1,500 This account provides for licensing professional, technical and other employees requiring a license in order to perform their duties. Included are fees paid to license engineers, and fees paid for technical certifications required by survey staff and operators of special equipment Assn. Membership Dues & Fees: $1,000 This account provides for memberships in professional and trade associations such as the American Concrete Institute, American Society of Civil Engineers, National Society of Professional Surveyors and Solid Waste Association of North America Building & Operating Permits: $350 This account provides for permits required for construction, right of ways, easements, environmental, occupancy and operations Vehicle Licenses: $60 This account provides for licensing City vehicles for operations on public highways Software Licenses: $4,250 This account provides for acquiring licenses for the right to use proprietary software Service Charges & Fees: $650 This account provides for miscellaneous service charges and fees. Included are filing fees, recording fees and fees not accounted for in other accounts Software Maintenance Services: $17,500 This account provides for maintenance agreements to support licensed software systems, including AutoCAD (DLT Solutions), ESRI, equorum, Bluebeam Software and other design programs Machinery & Equipment Maintenance Services: $1,000 This account provides for contractual services for the repair and maintenance of office equipment, machinery and other operating equipment owned or leased by the department. This account includes contract labor and materials required to provide the service. It also includes maintenance service agreements Engineering & Architectural Services: $2,500 This account provides for engineering and architectural services, such as asbestos clearance monitoring Management & Consulting Services: $4,250 This account provides for management and consulting services. Included are project management services, rate studies, management studies and other management and consulting services requiring persons or firms with specialized skills and knowledge Telecommunications: $13,000 This account provides for telecommunication services. Included are charges for wired and wireless telecommunications services, cell phones, Internet and long distance Furniture & Fixtures: $7,000 This account provides for acquisition of furniture and fixtures. Included are desks, chairs, tables, conference room chairs, workstations, file cabinets, storage cabinets and building fixtures. Q - 9

226 2017 ANNUAL BUDGET Public Works Engineering Operations Computers, Printers & Copiers: $25,000 Expenditures for desktop, laptops, and tablet computers; computer printers and scanners, mapping plotter, photocopiers and fax machines Software: $4,000 This account provides for acquisition of software systems and upgrades not covered by maintenance agreements. Included are updates such as Adobe Acrobat Professional, and at least two AutoCAD seats to a higher classification to accommodate mapping upgrades Interdepartmental Charges Insurance: $12,830 This account provides for risk management services and claims. Q - 10

227 2017 ANNUAL BUDGET Public Works Engineering Building Inspection MISSION STATEMENT The mission of the Building Inspection Division is to ensure minimum code compliance standards for all new building construction and alterations to existing structures. The Building Inspection Division now performs the life/safety plan reviews previously performed by the State Fire Marshal's office. The inspection services, information sharing and coordination with citizens and other agencies are the division s daily responsibility. Public Works Director/Engineering Manager 2014 Adopted Budget 2014 Amended Budget on of Dang PWST Building Official Building Inspector GOALS FOR 2017 Administer the adopted codes and provide the general public, design professionals and builders with supplemental information to aid them during the transition process. Continue to update the building department web page to inform the public of the manner in which to navigate the building permit and inspection process. Continue to update and enforce the provisions of the dangerous building code in accordance with the City's life/safety regulations. Upgrade the record keeping system within the Building Inspection Division to improve associated processes. ACCOMPLISHMENTS FOR 2016 The building department successfully maintained the City's deferred status by adopting the more current versions of the building and fire codes. Continued to be an approved municipality by Alaska Housing Finance Corporation, resulting in cost savings for inspection fees to the new home builder. Continued to assist the City in maintaining a high ISO rating. Continued to maintain the deferred City status from the State Fire Marshal s office,thus continuing the City's one stop plan review process and capturing the additional permit fees. Updated and provided new information to the general public on the City web site for better public awareness and ease of navigating the permit process. Q - 11

228 2017 ANNUAL BUDGET Public Works Engineering Building Inspection DIVISION SUMMARY Adopted /2017 Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 195, , , , ,692 2, % Supplies 6,236 3,480 3,480 2,800 2,800 (680) 19.5% Contract/Purchased Services 39,610 21,825 22,125 18,230 14,790 (7,035) 32.2% Minor Capital Outlay 1,700 1,700 1,700 1, % Interdepartmental Charges 1,284 2,600 2,600 1,460 2,230 (370) 14.2% Total Expenditures 243, , , , ,212 (5,407) 2.1% Adopted /2017 Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund General Fund Support 161, , , , ,712 (5,407) 3.0% Licenses and Permits 81,172 73,500 73,500 73,500 73, % Total Funding 243, , , , ,212 (5,407) 2.1% Adopted /2017 Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Building Official , % Building Inspector , % Total , % 2017 Expenditures by Type 1.1% 6.0% 0.7% 0.9% Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges 91.3% Q - 12

229 2017 ANNUAL BUDGET Public Works Engineering Building Inspection OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $2,678, or by 1.2%, due to annual employee step increases; and a 2.0% cost of living adjustment for IBEW, Local 1547 employees that will become effective January 1, DIVISION OPERATING BUDGET DETAIL Budget Adopted /2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 112, , , , ,672 1, % Overtime Wages 5,879 15,000 14,700 5,970 15, % Temporary Wages 7,877 5,000 5,000 1,670 5, % Payroll Taxes 9,225 10,800 10,800 9,440 10, % Pension 16,769 19,500 19,500 17,830 19,480 (20) 0.1% Health and Life Insurance 37,134 38,500 38,500 38,310 39,700 1, % Workers Compensation 6,624 8,500 8,500 7,220 7,500 (1,000) 11.8% Other Benefits (508) 3,400 3,400 3,400 3, % Allowances PW Clothing % Personnel Services and Benefits 195, , , , ,692 2, % Supplies Office Supplies (200) 40.0% Safety Program Supplies % Small Tools & Equipment (280) 73.7% Vehicle Motor Fuel & Lubricants 775 1,000 1,000 1,000 1, % Professional & Technical Publications 1,915 1,200 1,200 1,000 1,000 (200) 16.7% Moving Expenses 2, % Uniforms/Badges/Clothing % Supplies 6,236 3,480 3,480 2,800 2,800 (680) 19.5% Contract/Purchased Services Travel Training 8,532 6,000 6,000 3,000 3,000 (3,000) 50.0% Training and Education 3,570 2,800 2,800 2,150 2,000 (800) 28.6% Advertising & Publishing Marketing % Professional & Technical Licenses % Assn. Membership Dues & Fees (15) 2.3% Vehicle License Fees % Bank & Merchant Fees % Software & Equip Maint Services % Management and Consulting Services 24,409 10,000 9,500 9,500 6,000 (4,000) 40.0% Telecommunications 1,816 1,500 1,800 1,800 2, % Contract/Purchased Services 39,610 21,825 22,125 18,230 14,790 (7,035) 32.2% Q - 13

230 2017 ANNUAL BUDGET Public Works Engineering Building Inspection Budget Adopted /2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Minor Capital Furniture and Fixtures % Computers, Printers & Copiers 1,000 1,000 1,000 1, % Software % Minor Capital Outlay 1,700 1,700 1,700 1, % Interdepartmental Charges Interdepartmental Charges Insurance 1,284 2,600 2,600 1,460 2,230 (370) 14.2% Interdepartmental Charges 1,284 2,600 2,600 1,460 2,230 (370) 14.2% Total Expenditures by Type 243, , , , ,212 (5,407) 2.1% NARRATIVE Regular Salaries & Wages: $123,672 This account provides for compensation paid to all regular salaried and hourly employees of the Building Inspection Division Overtime Wages: $15,000 This account provides for compensation paid to all regular and temporary hourly employees for hours worked in excess of a regular working cycle Temporary Wages: $5,000 This account provides for compensation paid to temporary salaried and hourly employees of the Building Inspection Division Payroll Taxes: $10,990 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $19,480 This account provides for employer contributions to retirement plans Health & Life Insurance: $39,700 This account provides for employer contributions to employee health and life insurance plans Workers' Compensation: $7,500 This account provides for employer contributions to workers' compensation Other Benefits: $3,850 This account provides for expenditures for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Allowances Public Works Clothing: $500 This account provides for employer provided protective clothing allowances paid directly to represented employees of the Public Works Department pursuant to collective bargaining agreements or the Personnel Rules Office Supplies: $300 This account provides for paper, pens, pencils, adding machine ribbons and tape, note pads, file folders, scotch tape, toner, ink cartridges, photocopy charges, small desk accessories and minor office equipment such as adding machines, staplers and tape dispensers Safety Program Supplies: $400 This account provides for safety training audio and video programs, safety equipment, specialized hazardous materials handling and disposal information and specialized protective safety clothing Small Tools & Equipment: $100 This account provides for minor tools, operating and office equipment with a value of less than $1,000. Included are hand tools, flashlights, inspection equipment, computer accessories, space heaters, radios, calculators, file cabinets and similar types of minor tools and equipment Vehicle Motor Fuel & Lubricants: $1,000 This account provides for gasoline, diesel fuel, propane and lubricants used in the operations of City vehicles. Q - 14

231 2017 ANNUAL BUDGET Public Works Engineering Building Inspection Professional & Technical Publications: $1,000 This account provides for professional and technical publications. Included are professional handbooks, print and electronic subscription services for building codes, professional standards and technical journals Travel Training: $3,000 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training Training & Education: $2,000 This account provides for registration fees, training fees, training materials, tuition reimbursements and other incidental expenses associated with training and educating employees; and on premises training programs provided by staff or a third party Professional & Technical Licenses: $400 This account provides for recertification fees for employees requiring a license in order to perform their duties Assn. Membership Dues & Fees: $650 This account provides for memberships in professional and trade associations such as the International Code Council, Southern Southeast Alaska Building Association, National Fire Sprinkler Association and National Fire Protection Association Vehicle Licenses: $40 This account provides for licensing City vehicles for operations on public highways Bank & Merchant Fees: $500 This account provides for merchant fees for use of credit and debit cards for building permit fees Software & Equipment Maintenance Services: $200 This account provides expenditures for maintenance agreements to support licensed software systems and other technology based systems that include both software and hardware components Management & Consulting Services: $6,000 This account provides for management and consulting services. Included are consulting services requiring persons or firms with specialized knowledge for work such as structural or seismic plan reviews Telecommunications: $2,000 This account provides for telecommunication services. Included are charges for wired and wireless telecommunications services, cell phones, Internet, and long distance Furniture & Fixtures: $500 This account provides for acquisition of furniture and fixtures. Included are desks, chairs, tables, workstations, file cabinets, storage cabinets and building fixtures Computers, Printers & Copiers: $1,000 This account provides expenditures for desktop, laptops, and tablet computers; computer printers and scanners, photocopiers and fax machines Software: $200 This account provides for acquisition of software systems and upgrades not covered by maintenance agreements Interdepartmental Charges Insurance: $2,230 This account provides for risk management services and claims. Q - 15

232 2017 ANNUAL BUDGET Public Works Engineering KPU Administration Building O&M MISSION STATEMENT The KPU Administration Building O&M cost center accounts for the cost of operating and maintaining the KPU Administration Building. This facility houses the offices of the City Public Works Department and the KPU Water Division administrative offices. The cost of operating and maintaining the Administration Building is shared by the City Public Works Department and the KPU Water Division and is based on the square footage occupied by the each department/division. Public Works currently occupies 70 percent of the office space and the Water Division occupies 30 percent of the office space. Operating and maintaining the Administration Building is a Public Works Department 2014 Adopted Budget 2014 Amended Budget function. The Water Division is assessed an interdepartmental charge for its share of the costs. COST CENTER SUMMARY Adopted /2017 Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies 2,439 3,875 3,875 3,875 3,500 (375) 9.7% Contract/Purchased Services 68,338 82,040 82,040 82,000 90,850 8, % Interdepartmental Charges 2,905 3,300 3,300 3,110 3, % Total Expenditures 73,682 89,215 89,215 88,985 97,980 8, % Adopted /2017 Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund General Fund Support 51,577 62,450 62,450 62,400 68,382 5, % KPU Enterprise Fund 22,105 26,765 26,765 26,585 29,598 2, % Total Funding 73,682 89,215 89,215 88,985 97,980 8, % 2017 Expenditures by Type 3.7% 3.6% Supplies Contract/Purchased Services Interdepartmental Charges 92.7% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Building & Grounds Maintenance Services (Account ) increased $5,450, or by 27.9%, due to the current Grounds Maintenance contractor retiring and the subsequent solicitation of a new contractor. Q - 16

233 2017 ANNUAL BUDGET Public Works Engineering KPU Administration Building O&M DIVISION OPERATING BUDGET DETAIL Budget Adopted /2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Building & Grounds Maint Materials 2,439 3,875 3,875 3,875 3,500 (375) 9.7% Supplies 2,439 3,875 3,875 3,875 3,500 (375) 9.7% Contract/Purchased Services Janitorial & Cleaning Services % Building & Grounds Maint Services 15,226 19,550 19,550 19,550 25,000 5, % Telecommunications 16,693 16,640 20,040 20,000 20,000 3, % Electric, Water, Sewer & Solid Waste 36,419 45,000 41,600 41,600 45, % Contract/Purchased Services 68,338 82,040 82,040 82,000 90,850 8, % Interdepartmental Charges Interdepartmental Charges Insurance 2,905 3,300 3,300 3,110 3, % Interdepartmental Charges 2,905 3,300 3,300 3,110 3, % Total Expenditures by Type 73,682 89,215 89,215 88,985 97,980 8, % NARRATIVE Building and Grounds Maintenance Materials: $3,500 This account provides for materials required for the repair and maintenance of the KPU Administration Building and the upkeep of its grounds Janitorial and Cleaning Services: $850 Expenditures for contractual services for carpet cleaning and other miscellaneous cleaning services at the KPU Administration Building Buildings and Grounds Maintenance Services: $25,000 This account provides for contractual services required for the repair and maintenance of the KPU Administration Building and the upkeep of its grounds Telecommunications: $20,000 This account provides for telecommunication services. Included are charges for wired and wireless telecommunications services and Internet Electric, Water, Sewer & Solid Waste: $45,000 This account provides for electric, water, sewer and solid waste utility services Interdepartmental Charges Insurance: $3,630 This account provides for risk management services and claims. Q - 17

234 Public Works Engineering Capital Budget Budget Adopted /2017 Major Capital Projects Actual Adopted Amended Estimate Budget Incr(Decr) % Land 60, , ,000 45, ,000 (45,000) 30.0% Buildings 17,000 20,250 13,250 7,000 (10,000) 58.8% Vehicles and Moving Equipment 35,000 35,000 New Total Major Capital Outlay 60, , ,250 58, ,000 (20,000) 12.0% 2017 Capital Improvement Projects Funding Sources PW Sales Tax Land Dangerous Bldg Abatement/Foreclosed Property Remediation 105, ,000 Total Land 105, , Buildings KPU Admin Building HVAC Valve Replacement 7,000 7,000 Total Building 7,000 7, Vehicles and Moving Equipment Replacement Vehicle for Engineering Staff 35,000 35,000 Total Vehicles & Moving Equipment 35,000 35,000 Total 2017 Capital Budget 147, ,000 Expenditures by Type Expenditures by Funding Source 23.81% 4.76% 71.43% Land Buildings Vehicles and Moving Equipment 100.0% PW Sales Tax Q - 18

235 Public Works Cemetery Summary The Bayview Cemetery is owned and operated by the City of Ketchikan. The Public Works Cemetery Department is comprised of one operating division and oversees a Capital Improvement Program. DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Operations 78,073 81,485 81,485 80,945 85,720 4, % Capital Improvement Program 15,534 39,000 39,000 10,000 78,000 39, % Total 93, , ,485 90, ,720 43, % Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies 4,685 6,080 5,715 5,475 6, % Contract/Purchased Services 72,645 74,105 74,470 74,470 78,300 4, % Minor Capital Outlay % Interdepartmental Charges % Major Capital Outlay 15,534 39,000 39,000 10,000 78,000 39, % Total 93, , ,485 90, ,720 43, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Tax Supported 82,907 76,485 76,485 75,945 80,720 4, % Cemetery O&M Fund 5,000 5,000 5,000 5,000 5, % Cemetery Development Fund 5,700 39,000 39,000 10,000 51,000 12, % Public Works Sales Tax Fund 27,000 27,000 New Total 93, , ,485 90, ,720 43, % R - 1

236 Public Works Cemetery Operations Division MISSION STATEMENT To provide a respectful and appropriate resting place for Ketchikan s loved ones in a manner that reflects positively on the City of Ketchikan. GOALS FOR 2017 Resurfacing of walkway and surrounding of "New Garden Mausoleum". Surface paving of parking area for "New Garden Mausoleum". Levelinga portion of Section6whichhas experienceda numberof plot cave ins, usually due to casket deterioration. ACCOMPLISHMENTS FOR 2016 To date, there have been 8 full casket and 15 cremains interments. Removed two Mountain Ash trees which were dying. Completed the leveling project in Section 6A, which for this year required the following: filling low areas with top soil, patching, fertilizing and seeding to grass. Surveyed and returned 224 headstones to graves. A number of the stones required repair or replacing concrete bases. A half dozen stones exceeded 400 pounds a piece and the total estimated weight of all stones placed exceeds ten tons. All work was done by hand. Even with the normal Ketchikan rainfall, there were not any events of floating caskets. DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies 4,685 6,080 5,715 5,475 6, % Contract/Purchased Services 72,645 74,105 74,470 74,470 78,300 4, % Minor Capital Outlay % Interdepartmental Charges % Total Expenditures 78,073 81,485 81,485 80,945 85,720 4, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund 73,073 76,485 76,485 75,945 80,720 4, % Cemetery O&M Fund 5,000 5,000 5,000 5,000 5, % Total Funding 78,073 81,485 81,485 80,945 85,720 4, % R - 2

237 Public Works Cemetery Operations Division Expenditures by Type 0.6% 1.0% 7.1% Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges 91.3% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. There are no significant changes between the adopted operating budget for 2016 and the proposed operating budget for DIVISION OPERATING BUDGET DETAIL Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Operating Supplies % Building & Grounds Maint Materials 3,287 3,800 3,800 3,600 3, % Heating Fuel 1,398 2,090 1,725 1,725 2, % Supplies 4,685 6,080 5,715 5,475 6, % Contract/Purchased Services Bank & Merchant Fees New Building & Grounds Maint Services 70,114 71,230 71,230 71,230 75,000 3, % Machinery & Equip Maint Services % Telecommunications 1,352 1,235 1,540 1,540 1, % Electric, Water, Sewer & Solid Waste 1,125 1,140 1,200 1,200 1, % Contract/Purchased Services 72,645 74,105 74,470 74,470 78,300 4, % Minor Capital Machinery and Equipment % Minor Capital Outlay % Interdepartmental Charges Interdepartmental Insurance % Interdepartmental Charges % Total Expenditures by Type 78,073 81,485 81,485 80,945 85,720 4, % R - 3

238 Public Works Cemetery Operations Division NARRATIVE Operating Supplies: $190 This account provides for supplies that are normally not of a maintenance nature and are required to support Cemetery Division operations Building & Grounds Maintenance Materials: $3,800 This account provides for materials required for the repair and maintenance of buildings and upkeep of the cemetery grounds Heating Fuel: $2,090 This account provides for heating fuel to heat the caretaker s building owned and operated by the City Bank & Merchant Fees: $100 This account provides for monthly bank account service charges, merchant fees paid to banks for customer use of credit and debit cards and other fees for banking services Buildings & Grounds Maintenance Services: $75,000 This account provides for contractual services required for the repair and maintenance of buildings and the upkeep of cemetery grounds. This account includes contract labor and materials required to provide the service Machinery & Equipment Maintenance Services: $400 This account provides for contractual services required for the repair and maintenance of machinery and other operating equipment owned or leased by the division. This account includes contract labor and materials required to provide the service. It also includes maintenance service agreements Telecommunications: $1,600 This account provides for telecommunication services. Included are charges for wired and wireless telecommunications services, cell phones, Internet and long distance Electric, Water, Sewer & Solid Waste: $1,200 This account provides for electric, water, sewer and solid waste utility services Machinery & Equipment: $500 This account provides for the rental of specialized equipment occasionally needed to access the upper crypts and to open saturated and/or frozen burial sites Interdepartmental Charges Insurance: $840 This account provides for risk management services and claims. R - 4

239 Public Works Cemetery Capital Budget Budget Adopted/2017 Major Capital Projects Actual Adopted Amended Estimate Budget Incr(Decr) % Infrastructure and Plant 15,534 39,000 39,000 10,000 78,000 39, % Total Major Capital Outlay 15,534 39,000 39,000 10,000 78,000 39, % 2017 Capital Improvement Projects Funding Sources Public Project # Project Cemetery Develop't Works Sales Tax Total Infrastructure and Plant Grading and Drainage Improvements 24,000 24,000 Paving Improvements 27,000 27,000 54,000 Total Infrastructure and Plant 51,000 27,000 78,000 Total 2017 Capital Budget 51,000 27,000 78,000 Expenditures by Type Expenditures by Funding Source 100% Infrastructure and Plant 100% Cemetery Develop't R - 5

240 Public Works Streets Summary The Public Works Streets Division provides preventative maintenance on City streets, sidewalks, boardwalks and the municipal storm drainage system. Public Works Streets Streets and Sidewalks Bridges and Trestles Stormwater The Public Works Streets Division is comprised of one operating division, provides for a Seasonal Litter Program and oversees a Capital Improvement Program. DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Operations 1,483,929 1,722,624 1,722,624 1,543,300 1,757,105 34, % Seasonal Litter Program 65,637 88,050 88,050 31,560 42,415 (45,635) 51.8% Capital Improvement Program 1,167,104 11,308,200 11,329,916 10,255,007 2,185,000 (9,123,200) 80.7% Total 2,716,670 13,118,874 13,140,590 11,829,867 3,984,520 (9,134,354) 69.6% Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 1,227,297 1,407,919 1,407,919 1,221,010 1,427,810 19, % Supplies 185, , , , ,100 2, % Contract/Purchased Services 64,434 46,800 52,750 50,205 44,580 (2,220) 4.7% Minor Capital Outlay 15,120 11,500 11,350 11,350 21,500 10, % Interdepartmental Charges 57,377 64,950 64,950 16,570 23,530 (41,420) 63.8% Major Capital Outlay 1,167,104 11,308,200 11,329,916 10,255,007 2,185,000 (9,123,200) 80.7% Total 2,716,670 13,118,874 13,140,590 11,829,867 3,984,520 (9,134,354) 69.6% Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund 1,412,281 1,722,624 1,722,624 1,543,300 1,757,105 34, % Public Works Sales Tax Fund 1,238,752 1,983,000 2,004, ,807 2,135, , % CPV Funds 65,637 88,050 88,050 31,560 42,415 (45,635) 51.8% Grants 9,325,200 9,325,200 9,275,200 50,000 (9,275,200) 99.5% Total 2,716,670 13,118,874 13,140,590 11,829,867 3,984,520 (9,134,354) 69.6% Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Operations , % Total , % S - 1

241 Public Works Streets Operations Division MISSION STATEMENT The mission of the Streets Division is to provide sufficient preventative maintenance in a cost effective manner to City streets, sidewalks, boardwalks and the municipal storm drainage system, in order to prevent injury to citizens and damage to public and private property from accidents and flooding. PW Director/Engineering Manager Streets Division Supervisor Senior Maintenance Technician (4.0) Maintenance Technician (8.0) GOALS FOR 2017 Continue program to rebuild City staircases. Replace failing sidewalks. Continue maintenance and repair of bridges and trestles. Maintain City streets during winter months by providing adequate snow removal, sanding and de icing materials. Perform paving prep work for annual paving project. Perform storm pipe replacement. Maintain and install street signs. Maintain a program of cleaning and repairing storm drainage systems. Perform street crack sealing. Perform in house power washing services. Continue with providing support for community service projects. Provide support to all other City departments. Continue updating and improving the safety program. Respond in a timely manner to citizen complaints and concerns. ACCOMPLISHMENTS FOR 2016 Completed rebuild of the Upland Street staircase. Installed six concrete footings, and replaced six piling on Hopkins Alley. Replaced the chain link fence at Ketchikan Lakes Road. Power washed ropes and bollards along Front and Mill Streets. Power washed Harborview Park. Transported and installed "Thundering Wings" totem across from City Hall. Curbside pick up of 80 tons of trash during Spring clean up week. Poly patched and crack sealed various streets prior to asphalt overlay. Stripped existing asphalt and prepped subgrade on Densley Drive and Rex Allen Drive prior to asphalt overlay. Assisted other City departments as needed. Provided support for community service projects and events. S - 2

242 Public Works Streets Operations Division Prepped and painted the downtown Welcome Arch. Completed emergency repairs on sections of Married Man's Trail. Moved materials and assisted with the City's surplus auction. On going maintenance of infrastructure, including: street sweeping, flushing, crosswalks, non skid, brushing, snow and ice control signs, storm drain cleaning, etc. DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 1,206,843 1,367,119 1,367,119 1,198,350 1,404,895 37, % Supplies 182, , , , ,300 (1,705) 0.6% Contract/Purchased Services 64,434 46,800 52,750 50,205 44,580 (2,220) 4.7% Minor Capital Outlay 15,120 11,500 11,350 11,350 11, % Interdepartmental Charges 14,961 22,200 22,200 16,070 22, % Total Expenditures 1,483,929 1,722,624 1,722,624 1,543,300 1,757,105 34, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund 1,483,929 1,722,624 1,722,624 1,543,300 1,757,105 34, % Total Funding 1,483,929 1,722,624 1,722,624 1,543,300 1,757,105 34, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Supervisor , % Senior Maintenance Technician , % Maintenance Technician , % Total , % 2017 Expenditures by Type 15.5% 2.5% 0.7% 1.3% Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges 80.0% S - 3

243 Public Works Streets Operations Division OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $37,776, or by 2.8%, due to annual employee step increases; a 2.0% cost of living adjustment for IBEW, Local 1547 employees and non represented employees that will become effective January 1, 2017; andincreased employee healthinsurance co pays for non representedemployees that became effective July1, DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 633, , , , ,975 12, % Overtime Wages 45,090 96,500 96,500 46,520 96, % Temporary Wages 44,993 67,500 67,500 66,360 67, % Payroll Taxes 56,386 65,610 65,610 55,490 66, % Pension 111, , , , ,790 (630) 0.5% Health and Life Insurance 224, , , , ,470 27, % Workers Compensation 36,851 47,880 47,880 34,420 42,480 (5,400) 11.3% Other Benefits 50,715 19,740 19,740 19,740 22,220 2, % Allowances PW Clothing 3,000 3,250 3,250 3,250 3, % Allowances Medical Expenses % Personnel Services and Benefits 1,206,843 1,367,119 1,367,119 1,198,350 1,404,895 37, % Supplies Office Supplies 1,406 1,425 1,425 1,425 1,400 (25) 1.8% Operating Supplies 14,957 16,000 15,000 15,000 16, % Safety Program Supplies 6,618 7,000 7,000 7,000 7, % Janitorial Supplies % Small Tools & Equipment 5,917 7,000 7,000 7,000 7, % Vehicle Maint Materials 1,895 1,000 1,000 1,000 1, % Machinery & Equip Maint Materials 1,000 1,000 1,000 1, % Infrastructure Maintenance Materials 117, , , , ,000 (1,680) 0.9% Postage % Freight Material & Supplies 364 2,000 2,000 2,000 2, % Vehicle Motor Fuel & Lubricants 33,446 56,000 56,000 56,000 56, % Machinery & Equip Fuel & Lubricants 1,000 1,000 1,000 1, % Supplies 182, , , , ,300 (1,705) 0.6% S - 4

244 Public Works Streets Operations Division Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Contract/Purchased Services Travel Training 4,100 4,100 4,100 4, % Training & Education 1,900 1,900 1,900 1, % Ads & Public Announcements 3,283 2,925 6,725 6,725 3, % Professional Licenses & Certificates % Vehicle Licenses % Software Licenses % Government Contractual Services 37,592 NA Machinery & Equipment Maint Services 1,251 1,000 1,000 1,000 1, % Infrastructure Maintenance Services 4,484 15,000 15,000 15,000 15, % Rents & Leases Machinery & Equip 117 1,425 3,425 3,400 1,000 (425) 29.8% Telecommunications 7,312 8,000 8,000 7,500 7,500 (500) 6.3% Electric, Water, Sewer & Solid Waste 9,940 12,000 12,000 10,000 10,000 (2,000) 16.7% Contract/Purchased Services 64,434 46,800 52,750 50,205 44,580 (2,220) 4.7% Minor Capital Furniture & Fixtures % Machinery & Equipment 13,394 10,000 10,000 10,000 10, % Computers, Printers & Copiers 1,726 1,000 1,000 1,000 1, % Software 0.0% Minor Capital Outlay 15,120 11,500 11,350 11,350 11, % Interdepartmental Charges/ Reimbursable Credits Interdepartmental Insurance 14,961 22,200 22,200 16,070 22, % Interdepartmental Charges 14,961 22,200 22,200 16,070 22, % Total Expenditures by Type 1,483,929 1,722,624 1,722,624 1,543,300 1,757,105 34, % NARRATIVE Regular Salaries & Wages: $705,975 This account provides for compensation paid to all regular salaried and hourly employees of the Streets Division Overtime Wages: $96,500 This account provides for compensation paid to all regular and temporary hourly employees for hours worked in excess ofa regular working cycle Temporary Wages: $67,500 This account provides for compensation paid to temporary salaried and hourly employees of the Streets Division Payroll Taxes: $66,560 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $131,790 This account provides for employer contributions to retirement plans Health & Life Insurance: $268,470 This account provides for employer contributions to employee health and life insurance plans Workers' Compensation: $42,480 This account provides for employer contributions to workers' compensation. S - 5

245 Public Works Streets Operations Division Other Benefits: $22,220 This account provides for expenditures for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Allowances Public Works Clothing: $3,250 This account provides for employer provided protective clothing allowances paid directly to represented employees of the Public Works Department pursuant to collective bargaining agreements or the Personnel Rules Allowances Medical Expenses: $150 This account provides for employee medical exams paid directly to employees. These benefits are taxable to the employees Office Supplies: $1,400 This account provides for paper, pens, pencils, adding machine ribbons and tape, note pads, file folders, scotch tape, toner, ink cartridges, photocopy charges, small desk accessories and minor office equipment such as adding machines, staplers, comb binding machines and tape dispensers Operating Supplies: $16,000 This account provides for supplies that are normally not of a maintenance nature and are required to support department operations. Included are supplies such as medical supplies, public trash cans, public benches and cigarette disposal urns Safety Program Supplies: $7,000 This account provides for safety information brochures, safety training audio and video programs, safety equipment, specialized hazardous materials handling and disposal information, specialized protective safety clothing and traffic control supplies Janitorial Supplies: $850 This account provides for cleaning and sanitation supplies used by the in house janitor Small Tools & Equipment: $7,000 This account provides for minor tools, operating and office equipment with a value of less than $1,000. Included are hand tools, chain saws, blow torches, hydraulic jacks, sump pumps, computer accessories, space heaters, radios, calculators, file cabinets and similar types of minor tools and equipment Vehicle Maintenance Materials: $1,000 This account provides for the materials required for maintaining vehicles such as tires Machinery & Equipment Maintenance Materials: $1,000 This account provides for materials required for maintaining machinery and equipment such as office equipment and operating equipment Infrastructure Maintenance Materials: $180,000 This account provides for materials for the repair and maintenance of infrastructure owned by the City. Infrastructure includes streets, bridges, sidewalks, parking lots, promenades, storm drainage, stairways and boardwalks. Materials include sand, salt, asphalt, concrete, treated wood, gravel, signs, posts, bollards, paint, asphalt patching materials and pavement striping Postage: $50 This account provides for postal related services such as postage, express delivery and mailing materials Freight Materials & Supplies: $2,000 This account provides for shipping or transporting supplies and material to and from vendors Vehicle Motor Fuel & Lubricants: $56,000 This account provides for gasoline, diesel fuel, propane and lubricants used in the operations of City vehicles Machinery & Equipment Fuel & Lubricants: $1,000 This account provides for gasoline, diesel fuel, propane and lubricants used in the operations of City machinery and equipment Travel Training: $4,100 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training. S - 6

246 Public Works Streets Operations Division Training & Education: $1,900 This account provides expenditures for registration fees, training fees, training materials, tuition reimbursements and other incidental expenses associated with training and educating employees; and onpremises training programs provided by staff or a third party Advertising & Public Announcements: $3,500 This account provides for advertising and announcements in publications, newspapers, trade journals, Internet or broadcasts over radio and television. Included are public service announcements, community issues, recruiting, requests for proposals, contracts and sales ofproperty & equipment Professional Licenses & Certificates: $230 This account provides for expenditures for licensing professional, technical, and other employees requiring a license in order to perform their duties. Included are fees paid to license engineers, accountants, attorneys, commercial drivers; and fees paid for technical certifications required by medical technicians, notaries, surveyors, divers and operators of special equipment Vehicle Licenses: $250 This account provides for licensing department vehicles for operations on public highways Software Licenses: $100 This account provides for acquiring licenses for the right to use proprietary software Machinery & Equipment Maintenance Services: $1,000 This account provides for contractual services for the repair and maintenance of office equipment, machinery and other operating equipment used by the division. This account includes contract labor and materials required to provide the service. It also includes maintenance service agreements Infrastructure Maintenance Services: $15,000 This account provides for contractual services for the repair and maintenance of infrastructure owned or leased by the City. This account includes contract labor and materials required to provide the service. Infrastructure includes streets, bridges, sidewalks, parking lots, promenades, storm drainage, stairways and boardwalks. Services also include snow removal by outside contractors and pressure washing the downtown area in the spring Rents & Leases Machinery & Equipment: $1,000 This account provides for the rent and lease of machinery and equipment Telecommunications: $7,500 This account provides for telecommunication services. Included are charges for wired andwireless telecommunications services, cell phones, Internet, and long distance Electric, Water, Sewer & Solid Waste: $10,000 This account provides for electric, water, sewer and solid waste utility services Furniture & Fixtures: $500 This account provides for acquisition of furniture and fixtures. Included are desks, chairs, tables, workstations, file cabinets, storage cabinets and building fixtures Machinery & Equipment: $10,000 This account provides for the acquisition of machinery and equipment usually composed of a complex combination of parts. Included are office and operating equipment required to provide services or maintain capital assets Computers, Printers & Copiers: $1,000 This account provides expenditures for desktop, laptops, and tablet computers;computerprintersand scanners, photocopiers and fax machines Interdepartmental Charges Insurance: $22,830 This account provides for risk management services and claims. S - 7

247 Public Works Streets Seasonal Litter Program PROGRAM STATEMENT The Seasonal Litter Program was established to promote a litter free community with a focus on the downtown core. The program operates during the peak tourism season, which runs from May through September, and consists of a one to two person crew picking up litter and emptying waste receptacles throughout the community. GOALS FOR 2017 Maintain a clean, attractive community for residents and visitors. ACCOMPLISHMENTS FOR 2016 Successfully continued the implementation of the Seasonal Litter Program. PROGRAM SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 20,454 40,800 40,800 22,660 22,915 (17,885) 43.8% Supplies 2,767 4,500 4,500 8,400 8,800 4, % Minor Capital 10,000 10,000 New Interdepartmental Charges 42,416 42,750 42, (42,050) 98.4% Total Expenditures 65,637 88,050 88,050 31,560 42,415 (45,635) 51.8% Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % CPV Fund 65,637 88,050 88,050 31,560 42,415 (45,635) 51.8% Total Funding 65,637 88,050 88,050 31,560 42,415 (45,635) 51.8% 2017 Expenditures by Type 3.0% Personnel Services and Benefits Interdepartmental Charges 97.0% S - 8

248 Public Works Streets Seasonal Litter Program OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits decreased by $17,885, or by 43.8%, due to a reduction in staffing levels. Vehicle Motor Fuel & Lubricants (Account No ) increased by $5,000 to funds the fuel costs associated with division's vehicle. Vehicles & Moving Equipment (Account No ) increased by $10,000 to provide funding for the acquisition of the small compactor vehicle. Interdepartmental Charges Equipment Charges (Account ) decreased by $42,150. PROGRAM OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Overtime New Temporary Wages 18,166 35,800 35,540 19,800 20,000 (15,800) 44.1% Payroll Taxes 1,390 2,700 2,700 1,550 1,565 (1,135) 42.0% Workers Compensation 870 2,100 2,100 1,000 1,000 (1,100) 52.4% Other Benefits (150) 75.0% Personnel Services and Benefits 20,454 40,800 40,800 22,660 22,915 (17,885) 43.8% Supplies Operating Supplies 2,767 4,500 4,500 2,600 3,000 (1,500) 33.3% Vehicle Maintenance Materials N/A Vehicle Motor Fuel & Lubricants 5,000 5,000 5,000 N/A Supplies 2,767 4,500 4,500 8,400 8,800 4, % Minor Capital Vehicles & Moving Equipment 10,000 10,000 New Minor Capital 10,000 10,000 New Interdepartmental Charges Interdepartmental Charges Insurance % Interdepartmental Charges Equip Charges 42,150 42,150 42,150 (42,150) 100.0% Interdepartmental Charges 42,416 42,750 42, (42,050) 98.4% Total Expenditures by Type 65,637 88,050 88,050 31,560 42,415 (45,635) 51.8% NARRATIVE Overtime: $300 This account provides for compensation paid to temporary hourly employees for hours worked in excess of a regular working cycle. S - 9

249 Public Works Streets Seasonal Litter Program Temporary Wages: $20,000 This account provides for compensation paid to salaried and hourly employees for temporary personnel services Payroll Taxes: $1,565 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Workers' Compensation: $1,000 This account provides for employer contributions to workers' compensation Other Benefits: $50 This account provides for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Operating Supplies: $3,000 This account provides for supplies that are normally not of a maintenance nature and are required to support department operations. Included are supplies such as public trash cans, trash can liners and cigarette disposal urns Vehicle Maintenance Materials: $800 This account provides for the materials required for maintaining vehicles such as tires Vehicle Motor Fuel & Lubricants: $5,000 This account provides for gasoline, diesel fuel, propane and lubricants used in the operations of City vehicles Vehicles & Moving Equipment: $10,000 This account provides for the acquistion of a small compactor Interdepartmental Charges Insurance: $700 This account provides for risk management services and claims. S - 10

250 Public Works Streets Capital Budget Budget Adopted/2017 Major Capital Projects Actual Adopted Amended Estimate Budget Incr(Decr) % Buildings 15,000 (15,000) NA Infrastructure and Plant 1,167,104 11,293,200 11,329,916 10,255,007 2,185,000 (9,108,200) 80.7% Total Major Capital Outlay 1,167,104 11,308,200 11,329,916 10,255,007 2,185,000 (9,123,200) 80.7% 2017 Capital Improvement Projects Funding Sources Project # Project PW Sales Tax Fund CPV Funds Grants Total Infrastructure and Plant Safer Streets & Sidewalks Program 75,000 75,000 Staircase Reconstruction 50,000 50,000 Rock & Tree Maintenance 15,000 15,000 Pavement Overlay Surface Repair 600, ,000 Bawden/Spruce Mill Way Pavement Repair 200, ,000 Bridge Maintenance and Repair 25,000 25,000 Stormwater Facilities Reconstruction and Repair 50,000 50,000 Concrete Road Reconstruction and Repair 50,000 50,000 Harris St. Bridge Repaint and Repairs 400, ,000 Dunton Street Trestle Replacement 60,000 60,000 Sayles/Gorge Bridge Replacement 50,000 50,000 Downtown Crosswalk Improvements 50,000 50,000 Sea Level Reconstruction 520, ,000 Bucey Ave., Baker St., Larson St. Storm Component 20,000 20,000 Deer Mtn Ct., Bostwick Storm Component 20,000 20,000 Total Infrastructure and Plant 2,135,000 50,000 2,185,000 Total 2017 Capital Budget 2,135,000 50,000 2,185,000 Expenditures by Type Expenditures by Funding Source 2.29% % Infrastructure and Plant 97.71% PW Sales Tax Fund Grants S - 11

251 Public Works Garage & Warehouse Summary The Public Works Garage Division is comprised of one operating division and oversees a Capital Improvement Program. DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Operations 473, , , , ,732 14, % Capital Improvement Program 8,698 71,000 71,000 NA Total 481, , , , ,732 85, % Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 425, , , , ,322 24, % Supplies 119, , , , ,700 1, % Contract/Purchased Services 34,264 46,625 46,625 44,540 45,430 (1,195) 2.6% Minor Capital Outlay 1,018 5,500 5,500 5,500 5, % Interdepartmental Charges (107,088) (86,900) (86,900) (97,500) (97,220) (10,320) 11.9% Major Capital Outlay 8,698 71,000 71,000 NA Total 481, , , , ,732 85, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund General Fund Support 432, , , , ,082 14, % Public Works Sales Tax Fund 8,698 71,000 71,000 NA Solid Waste Services Fund 5,863 20,300 20,300 19,285 20, % Wastewater Fund 18,685 30,000 30,000 30,000 30, % Harbor Fund 9,826 8,850 23,000 23,000 8, % Port Enterprise Fund 6,289 3,500 22,000 22,000 3, % Total 481, , , , ,732 85, % Adopted/2017 Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Operations , % Total , % T - 1

252 Public Works Garage & Warehouse Operations Division MISSION STATEMENT The mission of the Garage&Warehouse Division is to provide professional quality maintenance and repairs to the City and Public Works Department s vehicle fleet and rolling stock. The division s goal is to ensure that the quality of these services meets or exceeds professional standards and that all equipment is readily available to respond in a safe condition. Public Works Director/ Engineering Manager Garage Supervisor Mechanic (3.0) GOALS FOR 2017 Utilize work management system to effectively manage division resources. Continue specialized training on vehicles and equipment and achieve related certification. Provide a level of service that will enhance the operation of other departments. Preserve and maintain the longevity of the equipment fleet to achieve maximum usable life of each piece. Evaluate the equipment fleet for units that are beyond their expected service life or are no longer safe. Continue corrosion control program to enhance the life of equipment and reduce future maintenance costs. Continue to reduce the quantity of hazardous materials used in Garage operations. ACCOMPLISHMENTS FOR 2016 Replaced tank and plumbing on oldest flush truck with materials not subject to the corrosive de icing agent. Continued to implement corrosion control measures to extend the life of all equipment. Completed another full year with no lost time accidents. Upgraded operating components on the Harbor boat "Hamilton". Upgraded lighting and fire fighting components on Fire boat "Harry Newell". T - 2

253 Public Works Garage & Warehouse Operations Division DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 425, , , , ,322 24, % Supplies 119, , , , ,700 1, % Contract/Purchased Services 34,264 46,625 46,625 44,540 45,430 (1,195) 2.6% Minor Capital Outlay 1,018 5,500 5,500 5,500 5, % Interdepartmental Charges (107,088) (86,900) (86,900) (97,500) (97,220) (10,320) 11.9% Total Expenditures 473, , , , ,732 14, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund General Fund Support 432, , , , ,082 14, % Solid Waste Services Fund 5,863 20,300 20,300 19,285 20, % Wastewater Fund 18,685 30,000 30,000 30,000 30, % Small Boat Harbor Fund 9,826 8,850 23,000 23,000 8, % Port Enterprise Fund 6,289 3,500 22,000 22,000 3, % Total Funding 473, , , , ,732 14, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Supervisor , % Mechanic , % Total , % 2017 Expenditures by Type 6.12% 19.90% 0.74% 13.10% 60.14% Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges T - 3

254 Public Works Garage & Warehouse Operations Division OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $24,719, or by 5.9%, due to annual employee step increases; a 2.0% cost of living adjustment for IBEW, Local 1547 employees and non represented employees that will become effective January 1, 2017; and increased employee health insurance co pays for non represented employees that became effective July 1, DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries & Wages 248, , , , ,642 17, % Overtime Wages 627 4,000 1,700 1,700 4, % Payroll Taxes 18,165 19,210 19,210 18,560 20,480 1, % Pension 42,790 42,620 42,620 42,070 42, % Health & Life Insurance 84,987 86,900 86,000 85,940 89,810 2, % Workers Compensation 12,439 14,490 14,490 13,660 13,500 (990) 6.8% Other Benefits 16,514 6,740 6,740 6,740 10,810 4, % Allowances PW Clothing 975 1,000 1,000 1,000 1, % Allowances Medical Expenses % Personnel Services and Benefits 425, , , , ,322 24, % Supplies Office Supplies % Operating Supplies 3,602 5,000 5,000 4,000 5, % Safety Program Supplies % Janitorial Supplies % Small Tools & Equipment 6,099 5,000 5,000 5,000 5, % Vehicle Maintenance Materials 87, , , , , % Building & Grounds Maint Materials 1,248 1,000 1,000 1,000 1, % Furniture & Fixtures Maint Materials % Machinery & Equip Maint Materials 590 1,500 1,500 1,400 1, % Postage % Freight Material & Supplies 388 1,500 1,500 1,100 1, % Heating Fuel 12,334 20,000 19,000 15,000 20, % Vehicle Motor Fuel & Lubricants 6,916 6,000 7,000 7,000 7,000 1, % Uniforms/Badges/Clothing % Supplies 119, , , , ,700 1, % T - 4

255 Public Works Garage & Warehouse Operations Division Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Contract/Purchased Services Travel Training 2,018 4,590 4,590 4,590 4,500 (90) 2.0% Training and Education 340 3,060 3,060 3,060 3,000 (60) 2.0% Assn. Membership Dues & Fees % Towing % Vehicle Licenses % Software Licenses 496 1,500 1,500 1,500 1, % Vehicle Maintenance Services % Machinery & Equip Maint Services 1,065 1,500 2,262 2,200 1, % Technical Services 1,252 1, ,200 (95) 7.3% Telecommunications % Electric, Water, Sewer & Solid Waste 28,076 33,000 33,000 31,000 32,000 (1,000) 3.0% Contract/Purchased Services 34,264 46,625 46,625 44,540 45,430 (1,195) 2.6% Minor Capital Machinery & Equipment 768 3,500 3,500 3,500 3, % Computers, Printers & Copiers 250 2,000 2,000 2,000 2, % Minor Capital Outlay 1,018 5,500 5,500 5,500 5, % Interdepartmental Charges Interdepartmental Insurance 5,443 8,100 8,100 6,050 7,930 (170) 2.1% Reimbursable Credits (112,531) (95,000) (95,000) (103,550) (105,150) (10,150) 10.7% Interdepartmental Charges (107,088) (86,900) (86,900) (97,500) (97,220) (10,320) 11.9% Total Expenditures by Type 473, , , , ,732 14, % NARRATIVE Regular Salaries & Wages: $263,642 This account provides for compensation paid to all regular salaried and hourly employees of the Garage & Warehouse Division Overtime Wages: $4,000 This account provides for compensation paid to all regular and temporary hourly employees for hours worked in excess ofa regular working cycle Payroll Taxes: $20,480 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $42,780 This account provides for employer contributions to retirement plans Health & Life Insurance: $89,810 This account provides for employer contributions to employee health and life insurance plans Workers' Compensation: $13,500 This account provides for employer contributions to employee health and life insurance plans, workers compensation and unemployment insurance Other Benefits: $10,810 This account provides for expenditures for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Allowances Public Works Clothing: $1,000 This account provides for employer provided protective clothing allowances paid directly to represented employees of the Public Works Department pursuant to collective bargaining agreements or the Personnel Rules. T - 5

256 Public Works Garage & Warehouse Operations Division Allowances Medical Expenses: $300 This account provides for employee medical exams paid directly to employees. These benefits are taxable to the employees Office Supplies: $300 This account provides for paper, pens, pencils, adding machine ribbons and tape, note pads, file folders, scotch tape, toner, ink cartridges, photocopy charges, small desk accessories and minor office equipment such as adding machines, and tape dispensers Operating Supplies: $5,000 This account provides for supplies that are normally not of a maintenance nature and are required to support departmentoperations. Included are supplies such as paint, solvents and shop materials Safety Program Supplies: $250 This account provides for the City safety program. Included are safety information brochures, safety training audio and video programs, safety equipment, OSHA required medical exams, specialized hazardous materials handling and disposal information, and specialized protective safety clothing Janitorial Supplies: $250 This account provides for cleaning and sanitation supplies used by in house and contracted janitors Small Tools & Equipment: $5,000 This account provides for minor tools, operating and office equipment with a value of less than $1,000. Included are hand tools, blow torches, hydraulic jacks, sump pumps, computer accessories, space heaters, radios, calculators, file cabinets and similar types of minor tools and equipment Vehicle Maintenance Materials: $105,000 This account provides for the cost of materials used for the repair and maintenance of vehicles owned or leased and operated by the division. Included are licensed and unlicensed rolling stock Building & Grounds Maintenance Materials: $1,000 This account provides for materials required for the repair and maintenance of buildings and upkeep of the grounds owned or leased and operated by the division Furniture & Fixtures Maintenance Materials: $250 This account provides for materials required for the repair and maintenance of furniture and building fixtures owned or leased and operated by the division Machinery & Equipment Maintenance Materials: $1,500 This account provides for materials and parts required for the repair and maintenance of City owned machinery and equipment used by the division Postage: $150 This account provides for postal related services such as postage, express delivery, mailing materials and the rent of post office boxes and postage machines Freight Materials & Supplies: $1,500 This account provides for shipping or transporting supplies and materials to and from vendors Heating Fuel: $20,000 This account provides for heating fuel to heat the garage and the warehouse Vehicle Motor Fuel & Lubricants: $7,000 This account provides for gasoline, diesel fuel, propane and lubricants used in the operations of the division Allowances Uniforms/Badges/Clothing: $500 This account provides for direct purchases of or reimbursements to employees for work related clothing required by department policies. Included are work clothes, raingear, hats, boots and gloves Travel Training: $4,500 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training Training & Education: $3,000 This account provides for registration fees, training fees, training materials, tuition reimbursements, and other incidental expenses associated with training and educating employees; and on premises training programs provided by staff or a third party. T - 6

257 Public Works Garage & Warehouse Operations Division Assn. Membership Dues & Fees: $220 This account provides for memberships in professional and trade associations Towing: $250 This account provides for towing of City vehicles Vehicle Licenses: $60 This account provides for acquiring licenses for vehicles for operations on public highways Software Licenses: $1,500 This account provides for acquiring licenses for the right to use proprietary software Vehicle Maintenance Services: $600 This account provides for contractual services required for the repair and maintenance of City vehicles by outside maintenance facilities. Included are licensed and unlicensed rolling stock. This account includes contract labor and materials requiredto provide the service Machinery & Equipment Maintenance Services: $1,500 This account provides for contractual services required for the repair and maintenance of machinery and other operating equipment used by the division. This account includes contract labor and materials required to provide the service. It also includes maintenance service agreements Technical Services: $1,200 This account provides for services that are not regarded as professional but require technical or special knowledge. Included are specialized automotive services Telecommunications: $600 This account provides for telecommunication services. Included are charges for wired andwireless telecommunications services, cell phones, Internet, and long distance Electric, Water, Sewer & Solid Waste: $32,000 This account provides for electric, water, sewer and solid waste utility services Machinery & Equipment: $3,500 This account provides for the acquisition of machinery and equipment usually composed of a complex combination of parts. Included are office and operating equipment required to provide services or maintain capital assets Computers, Printers & Copiers: $2,000 Expenditures for desktop, laptops, and tablet computers; computer printers and scanners, photocopiers and fax machines Interdepartmental Charges Insurance: $7,930 This account provides for risk management services and claims Reimbursable Credits: ($105,150) A contra expense account for crediting the Garage department for operating costs that will be paid by another General Fund department. T - 7

258 Public Works Garage & Warehouse Capital Budget Budget Adopted/2017 Major Capital Projects Actual Adopted Amended Estimate Budget Incr(Decr) % Buildings 8,698 NA Vehicles & Moving Equipment 47,000 47,000 New Infrastructure and Plant 24,000 24,000 New Total Major Capital Outlay 8,698 71,000 71,000 NA 2017 Capital Improvement Projects Funding Sources Project # Project PW Sales Tax Total Vehicles & Moving Equipment 3/4 Ton Shop Truck 47,000 47,000 Total Infrastructure and Plant 47,000 47, Infrastructure and Plant Maintenance Hoist 24,000 24,000 Total Infrastructure and Plant 24,000 24,000 Total 2017 Capital Budget 71,000 71,000 Expenditures by Type Expenditures by Funding Source 33.8% 66.2% Vehicles & Moving Equipment Infrastructure and Plant 100% PW Sales Tax T - 8

259 Public Works Building Maintenance Summary The Public Works Building Maintenance Division is responsible for maintenance of various City owned facilities. Public Works Building Maintenance The Public Works Building Maintenance Division is comprised of one operating division and oversees two cost centers and a Capital Improvement Program. DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Operations 255, , , , ,109 9, % City Hall O&M 79,896 96,300 96,300 91,863 96, % Shoreline Bldg O&M 5,302 8,317 8,317 7,557 8, % Orphaned Buildings 12,133 16,450 24,790 24,630 42,660 26, % Capital Improvement Program 98,596 24,000 23, , ,000 New Total 451, , , , , , % Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 215, , , , ,309 9, % Supplies 33,479 44,490 46,615 42,730 53,490 9, % Contract/Purchased Services 98, , , , ,254 14, % Minor Capital Outlay 880 3,300 3,300 3,200 3, % Interdepartmental Charges 5,010 9,643 11,533 7,223 12,123 2, % Major Capital Outlay 98,596 24,000 23, , ,000 New Total 451, , , , , , % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Tax Supported 346, , , , ,102 35, % Public Works Sales Tax Fund 51,954 24,000 23, , ,000 New Economic Parking Development Fund 46,642 NA Shoreline Fund 6,374 6,374 6,374 6,374 6, % Total 451, , , , , , % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Operations , % Total , % U - 1

260 Public Works Building Maintenance Operations Division MISSION STATEMENT The mission of the Building Maintenance Division is to maintain and operate as efficiently as possible the heating and ventilating, plumbing and electrical systems of General Government facilities, as well as to undertake interior and exterior building repairs when required. PW Director/Engineering Manager Building Maintenance Division Supervisor Maintenance Technician GOALS FOR 2017 Continue to troubleshoot and provide maintenance for all building systems and facilities within the responsibilities of the division. Continue upgrades to the Centennial Building as needed. Continue implementing moisture control recommendations at the Totem Heritage Center. Continue quality training for the Building Maintenance Division including HVAC systems. ACCOMPLISHMENTS FOR 2016 Completed hundreds of work orders for various repairs and improvements to City facilities. Performed building inspections of and pressure washed all City owned buildings and windows as needed. Provided snow removal on sidewalks at the Library, Old Fire Station No. 1, walking bridge at the Totem Heritage Center and at the Building Maintenance Division Warehouse. Completed other unforeseen repair/remodel requests. Recertified all backflow preventers, sprinkler systems, boilers and compressors as needed. Continued training on and operating the new pellet boiler system at the Ketchikan Public Library. Continued electrical upgrades at the Centennial Building. Addressed various painting, framing and plumbing issues. Remodeled downstairs, installed and removed cabinets and moved furniture and artifacts throughout building. U - 2

261 Public Works Building Maintenance Operations Division Completed numerous City Hall projects including: repainting of offices, hallways, doors and frames; replaced all EXIT signs; executed a building wide fire alarm drill and implemented annual fire alarm testing; and rewired and performed maintenance work on City Council Chambers audio/video system. Completed an HVAC walk through with outside engineer/contractor. Reframed and sheet rocked exterior windows to match existing windows at the Totem Heritage Center. Installed new dimmer switches. Continued various painting projects and moved a totem pole. Repaired roof leak at Police Station. Continued maintenance work on garage doors and garage lighting. Rebuilt and performed maintenance on latrines in two restrooms. Replaced variable air volume actuators. Continued maintenance on roll up doors and motors throughout Solid Waste Handling & Recycling Facility. Installed new roll up door/motor at loading bay. Replaced hot water heater in Scale House. Framed Connex container into new shop for Wastewater Treatment Facility. Replaced damaged bay door panels and tables at Fire Station No. 2. Converted apparatus lights to LED's in various rooms. Continued numerous KPU Administration Building projects including: complete construction of two new office spaces on the first floor and remodel of upstairs office spaces; and replaced ballasts lights to T8's as needed. DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 215, , , , ,309 9, % Supplies 13,424 18,540 16,265 16,090 18, % Contract/Purchased Services 24,755 34,403 36,678 35,250 37,150 2, % Minor Capital Outlay % Interdepartmental Charges 1,678 5,800 5,800 1,850 2,810 (2,990) 51.6% Total Expenditures 255, , , , ,109 9, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Tax Supported 255, , , , ,109 9, % Total Funding 255, , , , ,109 9, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Bldg Maintenance Supervisor , % Maintenance Technician , % Total , % U - 3

262 Public Works Building Maintenance Operations Division Expenditures by Type 11.57% 5.77% 0.09% 0.88% Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges 81.69% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $9,899, or by 3.9%, due to annual employee step increases; and a 2.0% cost of living adjustment for IBEW, Local 1547 employees that will become effective January 1, DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 106, , , , ,839 6, % Overtime Wages 909 3,600 3,600 2,120 3, % Temporary Wages 30,651 50,000 50,000 37,680 50, % Payroll Taxes 10,432 12,900 12,600 11,590 13, % Pension 16,401 17,500 17,500 17,240 17, % Health and Life Insurance 36,645 38,500 38,500 38,310 39,700 1, % Workers Compensation 7,225 10,300 10,300 8,870 9,370 (930) 9.0% Other Benefits 5,688 4,200 4,200 4,200 7,100 2, % Allowances PW Clothing % Allowances Medical Expenses % Personnel Services and Benefits 215, , , , ,309 9, % Supplies Office Supplies % Operating Supplies % Safety Program Supplies % Janitorial Supplies % Small Tools & Equipment 2,800 3,000 3,000 2,900 3, % Bldg & Grounds Maint Materials 7,639 11,700 9,700 9,700 11, % Postage % Freight Material and Supplies % Vehicle Motor Fuel & Lubricants 1,942 2,850 2,575 2,500 2, % Supplies 13,424 18,540 16,265 16,090 18, % U - 4

263 Public Works Building Maintenance Operations Division Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Contract/Purchased Services Travel Training 1,725 2,500 2,500 2,500 2, % Training and Education 1,055 3,000 3,000 3,000 3, % Vehicle Licenses (28) 6.5% Bldg & Grounds Maint Services 3,000 3,000 2,000 3, % Machinery & Equip Maint Services NA Technical Services 16,440 18,250 17,700 17,700 18, % Rents and Leases Machinery & Equip 2,000 2,000 1,900 2, % Telecommunications 5,515 5,225 7,500 7,500 8,000 2, % Contract/Purchased Services 24,755 34,403 36,678 35,250 37,150 2, % Minor Capital Machinery and Equipment % Minor Capital Outlay % Interdepartmental Charges Interdepartmental Insurance 1,678 3,300 3,300 1,850 2,810 (490) 14.8% Interdepartmental Garage 2,500 2,500 (2,500) 100.0% Interdepartmental Charges 1,678 5,800 5,800 1,850 2,810 (2,990) 51.6% Total Expenditures by Type 255, , , , ,109 9, % NARRATIVE Regular Salaries & Wages: $120,839 This account provides for compensation paid to all regular salaried and hourly employees of the Building Maintenance Division Overtime Wages: $3,600 This account provides for compensation paid to all regular and temporary hourly employees for hours worked in excess of a regular working cycle Temporary Wages: $50,000 This account provides for compensation paid to temporary salaried and hourly employees of the Building Maintenance Division Payroll Taxes: $13,350 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $17,550 This account provides for employer contributions to retirement plans Health & Life Insurance: $39,700 This account provides for employer contributions to employee health and life insurance plans Workers' Compensation: $9,370 This account provides for employer contributions to workers' compensation insurance Other Benefits: $7,100 This account provides for expenditures for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Allowances Public Works Clothing: $500 This account provides for employer provided protective clothing allowances paid directly to represented employees of the Building Maintenance Division pursuant to collective bargaining agreements or the Personnel Rules Allowances Medical Expenses: $300 This account provides for employee medical exams paid directly to employees. These benefits are taxable to the employees. U - 5

264 Public Works Building Maintenance Operations Division Office Supplies: $150 This account provides for expendable office supplies and equipment such as paper, pens, pencils, adding machine ribbons and tape, note pads, file folders, scotch tape, toner, ink cartridges, photocopy charges, small desk accessories and minor office equipment such as adding machines, staplers, comb binding machines and tape dispensers Operating Supplies: $345 This account provides for supplies that are normally not of a maintenance nature and are required to support department operations. Included are supplies such as adhesives, misc. fasteners, nails and screws, and bottled water service Safety Program Supplies: $300 This account provides for safety training audio and video programs, safety equipment, specialized hazardous materials handling and disposal information and specialized protective safety clothing and traffic control Janitorial Supplies: $50 This account provides for cleaning and sanitation supplies used for in house janitor duties Small Tools & Equipment: $3,000 This account provides for minor tools, operating and office equipment with a value of less than $1,000. Included are hand tools, chain saws, blow torches, hydraulic jacks, sump pumps, computer accessories, space heaters, radios, calculators, file cabinets and similar types of minor tools and equipment Building & Grounds Maintenance Materials: $11,700 This account provides for the repair and maintenance of buildings and upkeep of the grounds owned or leased and operated by the City Postage: $45 This account provides for postal related services such as postage, express delivery and mailing materials Freight Materials & Supplies: $100 This account provides for shipping or transporting supplies and materials to and from vendors Vehicle Motor Fuel & Lubricants: $2,850 This account provides for gasoline, diesel fuel, propane and lubricants used in the operations of vehicles Travel Training: $2,500 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training Training & Education: $3,000 This account provides for the registration fees, training materials and fees for onpremises training programs provided by a third party Vehicle Licenses: $400 This account provides for licensing City vehicles for operations on public highways Buildings & Grounds Maintenance Services: $3,000 This account provides expenditure for the repair and maintenance of buildings and the upkeep of grounds owned or leased by the City. This account includes contract labor and materials required to provide the service Technical Services: $18,250 This account provides for services that are not regarded as professional but require technical or special knowledge. Included are video camera operators, building security, pest control, elevator inspections and DDC Support Rents & Leases Machinery & Equipment: $2,000 This account provides for the rent and lease of vehicles. Both operating and capital leases are accounted for in this account Telecommunications: $8,000 This account provides expenditures for wired and wireless telecommunication services. Included are landline and cell phone services, network and data services, Internet, long distance and toll free numbers. Purchases of cell phones are also charged to this account. U - 6

265 Public Works Building Maintenance Operations Division Machinery & Equipment: $300 This account provides for the acquisition of machinery and equipment usually composed of a complex combination of parts. Included are office equipment and operating equipment required to provide services or maintain capital assets Interdepartmental Charges Insurance: $2,810 This account provides for risk management services and claims. U - 7

266 Public Works Building Maintenance City Hall O&M COST CENTER STATEMENT The City Hall Building O&M cost center was established to monitor the cost of operating and maintaining the City Hall Building. This facility houses the offices of the Mayor and Council, City Attorney, City Clerk, City Manager, Finance and Information Technology Departments. Operating and maintaining the City Hall Building is a Public Works Department function. COST CENTER SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies 11,073 14,200 15,700 12,690 14, % Contract/Purchased Services 61,953 72,700 71,200 70,073 72,000 (700) 1.0% Minor Capital 693 2,500 2,500 2,500 2, % Interdepartmental Charges 6,177 6,900 6,900 6,600 7, % Total Expenditures 79,896 96,300 96,300 91,863 96, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Tax Supported 79,896 96,300 96,300 91,863 96, % Total Funding 79,896 96,300 96,300 91,863 96, % 2.6% 8.0% 2017 Expenditures by Type 14.7% Supplies Contract/Purchased Services Minor Capital Interdepartmental Charges 74.7% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. There are no significant changes between the adopted operating budget for 2016 and the proposed operating budget for U - 8

267 Public Works Building Maintenance City Hall O&M COST CENTER OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Janitorial Supplies % Small Tools & Equipment 1,000 1, , % Bldg & Grounds Maint Materials 1,887 2,000 3,500 3,400 2, % Heating Fuel 9,186 11,000 11,000 9,000 11, % Supplies 11,073 14,200 15,700 12,690 14, % Contract/Purchased Services Janitorial and Cleaning Services 20,339 20,000 20,173 20,173 20, % Bldg & Grounds Maint Services 3,712 5,000 4,827 4,800 5, % Technical Services 11,295 12,000 12,000 11,500 12, % Engineering and Architectural Svcs 7,700 7,700 7,700 7,000 (700) New Telecommunications 1,770 2,000 2,000 1,900 2, % Electric, Water, Sewer & Solid Waste 24,837 26,000 24,500 24,000 26, % Contract/Purchased Services 61,953 72,700 71,200 70,073 72,000 (700) 1.0% Minor Capital Machinery & Equipment 693 2,500 2,500 2,500 2, % Minor Capital 693 2,500 2,500 2,500 2, % Interdepartmental Charges Interdepartmental Charges Insurance 6,177 6,900 6,900 6,600 7, % Interdepartmental Charges 6,177 6,900 6,900 6,600 7, % Total Expenditures by Type 79,896 96,300 96,300 91,863 96, % NARRATIVE Janitorial Supplies: $200 This account provides for cleaning and sanitation supplies used by the in house janitor Small Tools & Equipment: $1,000 This account provides for minor tools, operating and office equipment with a value of less than $1,000. Included are hand tools, chain saws, blow torches, hydraulic jacks, sump pumps, computer accessories, space heaters, radios, calculators, file cabinets and similar types of minor tools and equipment Building & Grounds Maintenance Materials: $2,000 This account provides materials for the repair and maintenance of City Hall and the upkeep of its grounds Heating Fuel: $11,000 This account provides for heating fuel toheat CityHall Janitorial & Cleaning Services: $20,000 This account provides for services to clean City Hall. Included are janitorial and carpet cleaning Buildings & Grounds Maintenance Services: $5,000 This account provides for the services to repair and maintain City Hall and the upkeep of its grounds Technical Services: $12,000 This account provides for services that are not regarded as professional but require technical or special knowledge. Included are video camera operators, building security, pest control, elevator inspections and DDC Support. U - 9

268 Public Works Building Maintenance City Hall O&M Engineering & Architectural Services: $7,000 This account provides for services for engineering and architectural services Telecommunications: $2,000 This account provides expenditures for wired and wireless telecommunication services. Included are landline and cell phone services, network and data services, Internet, long distance and toll free numbers. Purchases of cell phones are also charged to this account Electric, Water, Sewer & Solid Waste Services: $26,000 This account provides for electric, water, sewer and solid waste utility services for City Hall Machinery & Equipment: $2,500 This account provides for the acquisition of a key card system for the back door of City Hall in order to improve building security Interdepartmental Charges Insurance: $7,680 This account provides for risk management services and claims. U - 10

269 Public Works Building Maintenance Shoreline Maintenance Bldg O&M COST CENTER STATEMENT The Shoreline Maintenance Building O&M cost center was established to monitor the cost of operating and maintaining the Shoreline Maintenance Building. This facility houses the offices of the Building Maintenance Division and storage areas for the Fire Department. Operating and maintaining the Shoreline Maintenance Building is a Public Works function. COST CENTER SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies 2,467 5,200 5,200 4,500 5, % Contract/Purchased Services 8,290 8,474 8,474 8,474 8, % Interdepartmental Charges (5,455) (5,357) (5,357) (5,417) (5,347) % Total Expenditures 5,302 8,317 8,317 7,557 8, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Tax Supported 5,302 1,943 1,943 1,183 1, % Shoreline Fund 6,374 6,374 6,374 6, % Total Funding 5,302 8,317 8,317 7,557 8, % 2017 Expenditures by Type 27.3% 28.1% Supplies Contract/Purchased Services Interdepartmental Charges 44.6% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. There are no significant changes between the adopted operating budget for 2016 and the proposed operating budget for U - 11

270 Public Works Building Maintenance Shoreline Maintenance Bldg O&M COST CENTER OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Bldg & Grounds Maint Materials 496 2,200 2,200 1,500 2, % Heating Fuel 1,971 3,000 3,000 3,000 3, % Supplies 2,467 5,200 5,200 4,500 5, % Contract/Purchased Services Rents and Leases Land & Buildings 6,374 6,374 6,374 6,374 6, % Electric, Water, Sewer and Solid Waste 1,916 2,100 2,100 2,100 2, % Contract/Purchased Services 8,290 8,474 8,474 8,474 8, % Interdepartmental Charges/Reimbursable Credits Interdepartmental Charges Insurance % Reimbursable Credits (6,057) (6,057) (6,057) (6,057) (6,057) 0.0% Interdepartmental Charges/Reimbursabl (5,455) (5,357) (5,357) (5,417) (5,347) % Total Expenditures by Type 5,302 8,317 8,317 7,557 8, % NARRATIVE Building & Grounds Maintenance Materials: $2,200 This account provides materials for the repair and maintenance of the Shoreline Maintenance Building and the upkeep of its grounds Heating Fuel: $3,000 This account provides for heating fuel to heat the Shoreline Maintenance Building Rents & Leases Land & Buildings: $6,374 This account provides for the rent and lease of the Shoreline Maintenance Building Electric, Water, Sewer & Solid Waste: $2,100 This account provides for electric, water, sewer and solid waste utility services Interdepartmental Charges Insurance: $710 This account provides for risk management services and claims Reimbursable Credits: ($6,057) This is a contra expense account that provides for reimbursement for the Fire Department s share of the cost of operating and maintaining the Shoreline Maintenance Building. The cost will be shared equally but the Fire Department s share shall not exceed $6,057. U - 12

271 Public Works Building Maintenance Orphaned Buildings O&M COST CENTER STATEMENT The mission of the Building Maintenance Orphan Buildings O&M cost center is to provide a resource and tracking mechanism to preserve and maintain former/vacant City owned buildings as efficiently as possible. The heating and ventilating, plumbing and electrical systems of the facilities formerly known as Fire Station No. 1, former Ketchikan Regional Youth Facility (KRYF) and Akeela infrastructure (limited to roofs and mechanical) are included in this section along with required maintenance and inspections to keep the facilities functional until final disposition is determined by COST CENTER SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies 6,515 6,550 9,450 9,450 15,550 9, % Contract/Purchased Services 3,008 7,100 10,650 10,590 19,630 12, % Minor Capital % Interdepartmental Charges 2,610 2,300 4,190 4,190 6,980 4, % Total Expenditures 12,133 16,450 24,790 24,630 42,660 26, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % General Fund Tax Supported 12,133 16,450 24,790 24,630 42,660 26, % Total Funding 12,133 16,450 24,790 24,630 42,660 26, % 2017 Expenditures by Type 16.36% 1.17% 46.02% 36.45% Supplies Contract/Purchased Services Minor Capital Interdepartmental Charges OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Heating Fuel (Account No ) has increased by $7,000, or by 116.7%, in order to fund the estimated cost of heating the vacant Ketchikan Regional Youth Facility building. Electric, Water, Sewer & Solid Waste (Account No ) has increased by $7,010, or by 140.2%, in order to fund the estimated utility service charges associated with the vacant Ketchikan Regional Youth Facility building. U - 13

272 Public Works Building Maintenance Orphaned Buildings O&M COST CENTER OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Janitorial Supplies % Bldg & Grounds Maint Materials ,500 2, % Heating Fuel 6,063 6,000 8,500 8,500 13,000 7, % Supplies 6,515 6,550 9,450 9,450 15,550 9, % Contract/Purchased Services Janitorial and Cleaning Services % Bldg & Grounds Maint Services ,550 1,550 3,950 3, % Technical Services 634 1, , % Telecommunications 2,520 2,520 New Electric, Water, Sewer & Solid Waste 2,254 5,000 8,090 8,090 12,010 7, % Contract/Purchased Services 3,008 7,100 10,650 10,590 19,630 12, % Minor Capital Machinery & Equipment % Minor Capital % Interdepartmental Charges Interdepartmental Charges Insurance 2,610 2,300 4,190 4,190 6,980 4, % Interdepartmental Charges 2,610 2,300 4,190 4,190 6,980 4, % Total Expenditures by Type 12,133 16,450 24,790 24,630 42,660 26, % NARRATIVE Janitorial Supplies: $50 This account provides for limited cleaning and sanitation supplies used by in house and contracted janitors for former/vacant City owned buildings Building & Grounds Maintenance Materials: $2,500 This account provides for the repair and maintenance of buildings and upkeep of the grounds owned or leased and operated by the City Heating Fuel: $13,000 This account provides for heating fuel to heat former/vacant City owned buildings Janitorial & Cleaning Services: $50 This account provides for services to clean former/vacant City owned buildings Building & Grounds Maintenance Services: $3,950 This account provides for services incurred for the repair and maintenance of former/vacant City owned buildings and the upkeep of grounds Technical Services: $1,100 This account provides for services that are not regarded as professional but require technical or special knowledge. Included are video camera operators, building security, pest control and special inspections Telecommunications: $2,520 This account provides expenditures for needed telecommunications lines at the Ketchikan Regional Youth Facility Electric, Water, Sewer & Solid Waste: $12,010 This account provides for electric, water, sewer and solid waste services for former/vacant City owned buildings. U - 14

273 Public Works Building Maintenance Orphaned Buildings O&M Machinery & Equipment: $500 This account provides for the acquisition of machinery and equipment usually composed of a complex combination of parts. Included are office equipment and operating equipment required to provide services or maintain capital assets Interdepartmental Charges Insurance: $6,980 This account provides for risk management services and claims. U - 15

274 Public Works Building Maintenance Capital Budget Budget Adopted/2017 Major Capital Projects Actual Adopted Amended Estimate Budget Incr(Decr) % Buildings 21, , ,000 New Furniture & Fixtures 4,000 3,899 NA Vehicles and Moving Equipment 76,849 NA Machinery & Equipment 20,000 20,000 NA Total Major Capital Outlay 98,596 24,000 23, , ,000 New 2017 Capital Improvement Projects Funding Sources Project # Project PW Sales Tax Fund Total Buildings City Hall Mezzanine Restroom Renovation 40,000 40,000 City Hall HVAC Engineering and Design 60,000 60,000 Total Buildings 100, ,000 Total 2017 Capital Budget 100, ,000 Expenditures by Type Expenditures by Funding Source 100.0% Buildings 100% PW Sales Tax Fund U - 16

275 Public Works Solid Waste Summary The Public Works Solid Waste Division is responsible for providing safe and efficient handling of municipal solid waste, demolition debris and recyclable products. Public Works Disposal Recycling Collections The Solid Waste Division is comprised of three operating divisions and oversees a Capital Improvement Program. DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Disposal 1,964,881 2,109,513 2,140,943 2,096,212 2,106,061 (3,452) 0.2% Recycling 70, , ,668 92, ,850 (18,218) 11.4% Collections 778, , , , ,764 (3,357) 0.4% Capital Improvement Program 764, , , , ,500 49, % Total 3,578,463 3,699,202 3,699,202 3,254,051 3,723,175 23, % Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 1,093,466 1,192,628 1,192,614 1,162,655 1,204,753 12, % Supplies 216, , , , ,907 (18,407) 7.2% Contract/Purchased Services 1,067,869 1,176,620 1,179,845 1,169,630 1,199,735 23, % Minor Capital Outlay 15,313 27,950 27,950 27,350 27, % Interdepartmental Charges 420, , , , ,330 (41,860) 8.5% Major Capital Outlay 764, , , , ,500 49, % Total 3,578,463 3,699,202 3,699,202 3,254,051 3,723,175 23, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % Solid Waste Services Fund 3,578,463 3,699,202 3,699,202 3,254,051 3,723,175 23, % Total 3,578,463 3,699,202 3,699,202 3,254,051 3,723,175 23, % Full Time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Disposal , % Recycling , % Collections , % Total , % V - 1

276 Public Works Solid Waste Disposal Division MISSION STATEMENT The mission of the Solid Waste Disposal Division is to continue providing safe and economic solid waste disposal management and to offer such services in an environmentally sound manner while fostering recycling, composting and re use. The division strives to furnish customers with expedient and efficient service. PW Director/Engineering Manager Solid Waste Division Supervisor Mechanic (1.0) Solid Waste Facility Operator (2.0) Scale House Operator (1.0) GOALS FOR 2017 Provide solid waste disposal services in compliance with ADEC permit requirements and in a manner that reflects positively on the City of Ketchikan. Finalize design of the Solid Waste Handling and Recycling Facility expansion. Continue to address facility and grounds clean up with a focus on site drainage improvements and housekeeping efforts to ensure storm water run off continues to meet acceptable levels. Continue to ship putrescible solid waste. Work at reducing weights and volumes where possible by improving the recycling of materials. Provide safe and sanitary disposal of waste to ensure a better and cleaner environment. ACCOMPLISHMENTS FOR 2016 The City s household hazardous waste program collected and disposed of approximately 44,850 pounds of various hazardous materials. The 2016 community wide spring clean up program was a success. The division s staff handled the operation in a manner that was extremely efficient and provided direction and service for the disposal of a wide variety of materials. The total volume received in a one week period was 832,560 pounds ( tons). A total of 2,119 vehicles for that one week period was recorded at the division s scale station. The division provided support for the 4 th of July, Blueberry Arts Festival and the ALPAR program. Various Earth Day cleanup V - 2

277 Public Works Solid Waste Disposal Division projects were conducted. The division continued its focus on community cleanup programs involving various non profit and/or volunteer groups and has participated in areawide anti litter education. The division continues to work with the Forest Service in disposal of noxious weeds such as Tansy Ragwort. Worked with the Engineering Division to provide mapping and location for the design of the current disposal cell. The division continued to provide support in materials, manpower and equipment to other divisions of the City for projects as requested. The division has continued to work on the development of the cemetery as requested. The division has continued to work on a closure plan while keeping costs at a minimum. Completed installation of an oil/water separator system. Preparatory work was done by engineering staff with installation completed by the Solid Waste department at a significant cost savings to the City. The division with landfill equipment demolished and disposed of a derelict home on 1411 Ketchikan Lakes Rd. DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 537, , , , ,184 9, % Supplies 102, , , , , % Contract/Purchased Services 1,056,774 1,165,800 1,168,800 1,158,585 1,188,690 22, % Minor Capital Outlay 9,032 14,450 14,450 13,950 14, % Interdepartmental Charges 258, , , , ,470 (35,850) 11.5% Total Expenditures 1,964,881 2,109,513 2,140,943 2,096,212 2,106,061 (3,452) 0.2% Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % Solid Waste Services Fund 1,964,881 2,109,513 2,140,943 2,096,212 2,106,061 (3,452) 0.2% Total Funding 1,964,881 2,109,513 2,140,943 2,096,212 2,106,061 (3,452) 0.2% Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Solid Waste Supervisor , % Mechanic , % Solid Waste Facility Operator , % Scale House Operator , % Total , % V - 3

278 Public Works Solid Waste Disposal Division Expenditures by Type 0.69% 13.13% 23.89% 5.85% Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges 56.44% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $9,508, or by 1.9%, due to annual employee step increases; a 2.0% cost of living adjustment for IBEW, Local 1547 employees and non represented employees that will become effective January 1, 2017; increased employee health insurance co pays for non represented employees that became effective July 1, 2016, and a reduction in the workers compensation rate class for solid waste workers. DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 292, , , , ,944 7, % Overtime Wages 14,737 31,000 19,330 17,640 31, % Temporary Wages 20,865 32,000 23,090 17,410 32, % Payroll Taxes 24,084 23,660 23,860 23,850 24, % Pension 48,277 45,860 46,460 46,460 46, % Insurance Benefits Health/Life 102,241 91, , ,800 94,530 3, % Insurance Benefits Workers Comp 17,418 17,950 17,750 15,150 13,140 (4,810) 26.8% Other Benefits 16,038 4,520 9,230 9,230 7,760 3, % Allowances PW Clothing 1,362 1,250 1,250 1,250 1, % Allowances Medical Expenses % Personnel Services and Benefits 537, , , , ,184 9, % V - 4

279 Public Works Solid Waste Disposal Division Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Office Supplies 2,167 2,800 2,800 2,200 2,660 (140) 5.0% Operating Supplies 32,216 34,200 34,000 32,683 34, % Safety Program Supplies % Janitorial Supplies (33) 4.6% Small Tools & Equipment 2,544 2,000 2,200 2,170 2, % Vehicle Maintenance Materials 35,335 38,847 38,847 38,800 38,840 (7) 0.0% Building & Grounds Maint Materials 5,245 8,800 8,800 8,787 8, % Heating Fuel 20,342 27,000 27,000 23,500 27, % Vehicle Motor Fuel & Lubricants 3,753 8,000 8,000 5,000 7,900 (100) 1.3% Supplies 102, , , , , % Contract/Purchased Services Travel Training 2,000 2,000 2, % Training and Education 294 1,200 1,200 1, % Ads and Public Announcements 4,445 6,450 8,450 8,450 6, % Professional and Technical Licenses % Assn Membership Dues & Fees % Salvage & Disposal Impounded Prop 16,200 15,500 15,500 15,500 15, % Building and Operating Permits % Vehicle Licenses ,050 1,050 1,050 1, % Bank and Merchant Charges 3,772 3,500 3,500 3,500 3, % Bldg & Grounds Maint Services 850 1,000 1, , % Machinery & Equip Maint Services 3,579 4,750 4,750 1,160 4, % Disposal Services 955,255 1,061,000 1,061,000 1,058,000 1,081,390 20, % Technical Services 9,771 7,400 7,400 7,350 7, % Other Contractual Services 6,792 5,850 5,850 5,600 5, % Rents and Leases Machinery & Equip % Telecommunications 11,144 9,500 9,500 9,500 11,000 1, % Electric, Water, Sewer & Solid Waste 43,682 45,000 45,000 45,000 45, % Contract/Purchased Services 1,056,774 1,165,800 1,168,800 1,158,585 1,188,690 22, % Minor Capital Furniture and Fixtures % Machinery and Equipment 6,534 10,000 10,000 9,850 10, % Computers, Printers & Copiers 2,498 2,000 2,000 1,800 2, % Software 1,500 1,500 1,500 1, % Minor Capital Outlay 9,032 14,450 14,450 13,950 14, % Interdepartmental Charges Interdepartmental Administrative 17,300 18,440 18,440 18,045 19,840 1, % Interdepartmental Human Resources 6,024 7,010 7,010 6,847 7, % Interdepartmental Finance 29,290 33,530 33,530 31,225 36,400 2, % Interdepartmental Info Technology 19,255 18,760 18,760 18,045 17,460 (1,300) 6.9% Interdepartmental Engineering 155, , , , ,000 (43,000) 22.4% Interdepartmental KPU Billing Services 16,776 16,780 16,780 16,780 16, % Interdepartmental Insurance 10,197 10,500 11,310 11,630 14,230 3, % Interdepartmental Garage 4,075 15,300 10,300 9,785 15, % Interdepartmental Charges 258, , , , ,470 (35,850) 11.5% Total Expenditures by Type 1,964,881 2,109,513 2,140,943 2,096,212 2,106,061 (3,452) 0.2% V - 5

280 Public Works Solid Waste Disposal Division NARRATIVE Regular Salaries and Wages: $252,944 This account provides for compensation paid to all regular salaried and hourly employees of the Solid Waste Disposal Division Overtime Wages: $31,000 This account provides for compensation paid to all regular and temporary hourly employees for hours worked in excess of a regular working cycle TemporaryWages: $32,000 This account provides for compensation paid to temporary salaried and hourly employees of the Solid Waste Disposal Division Payroll Taxes: $24,170 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $46,140 This account provides for employer contributions to retirement plans Health and Life Insurance: $94,530 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $13,140 This account provides for employer contributions to employee workers compensation insurance Other Benefits: $7,760 This account provides for expenditures for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Allowances Public Works Clothing: $1,250 This account provides for employer provided protective clothing allowances paid directly to represented employees of the Public Works Department pursuant to collective bargaining agreements or the Personnel Rules Allowances Medical Expenses: $250 This account provides for employee medical exams Office Supplies: $2,660 This account provides for paper,scale tickets,pens,pencils,adding machine ribbons and tape, note pads, file folders, scotch tape, toner, ink cartridges, photocopy charges, small desk accessories and minor office equipment such as adding machines, staplers and tape dispensers Operating Supplies: $34,480 This account provides for the purchase of departmental supplies including cleaning materials, baler wire, disposal overalls, equipment wash, chains and cables, first aid materials, etc., which are used by the division during the course of the year Safety Program Supplies: $900 This account provides for the City safety program. This account traditionally is used to purchase materials and supplies necessary to conduct an ongoing safety program within the division. Included are safety information brochures, safety training audio and video programs, safety equipment, etc Janitorial Supplies: $687 This account provides for the cost of janitorial supplies used to maintain the SWRHF during thecourseoftheyear Small Tools and Equipment: $2,000 This account provides for minor tools. Included are hand tools, chain saws, blow torches, hydraulic jacks and similar types of minor tools and equipment Vehicle MaintenanceMaterials: $38,840 This account provides for the repair and maintenance of landfill vehicles and equipment. Included are licensed and unlicensed rolling stock. $ V - 6

281 Public Works Solid Waste Disposal Division Building & Grounds Maintenance Materials: $8,800 This account provides for the cost and supplies of materials including filters, light bulbs, paint, steel, ceiling tiles, electrical wire and parts, lumber and building supplies, etc., which are used by the division to maintain the SWRHF and grounds throughout the course of the year Heating Fuel: $27,000 This account provides for the cost of diesel fuel for SWRHF equipment & incinerator operation Vehicle Motor Fuel and Lubricants: $7,900 This account provides for gasoline, diesel fuel, lubricants associated with SWRHF vehicles and equipment Travel Training: $2,000 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training Training and Education: $1,200 This account provides for registration fees, training fees, training materials, travel, tuition reimbursements, and other incidental expenses associated with training and educating employees; and on premises training programs provided by staff or third parties Ads and Public Announcements: $6,450 This account provides for cost of legal advertisements, bid invitations and other regulatory notifications issued by the division during the course of the year. This account also provides for advertising costs incurred to educate the public regarding changes in operations Professional and Technical Licenses: $700 This account provides for the cost of staff professional licenses and certificates required for operating equipment Assn. Membership Dues and Fees: $400 This account provides for the cost of membership in the Solid Waste Association of North America (SWANA) and the price of subscriptions to publications that provide information for managing and operation of disposal systems. As members of SWANA, employees receive reduced admission to training programs in the fields of solid waste, hazardous materials and recycling Salvage and Disposal of Impounded Property: $15,500 This account provides for salvaging and/or disposing of junked vehicles and marine vessels. Although the funding in this line item is a cost to the division, the funds are managed by the Police Department Building and Operating Permits: $800 This account provides for state regulatory fees & charges Vehicle Licenses $1,050 This account provides for licensing City vehicles for operations on public highways Bank andmerchantcharges: $3,500 This account provides for merchant fees for use of credit and debit cards Buildings and Grounds Maintenance Services: $1,000 This account provides contractual services required for the repair and maintenance of buildings and the upkeep of grounds located at the SWRHF. This account includes contract labor and materials required to provide the service Machinery and Equipment Maintenance Services: $4,750 This account provides contractual services required for the repair and maintenance of office equipment, machinery and other operating equipment used at the landfill. This account includes contract labor and materials required to provide the service. It also includes maintenance service agreements Disposal Services: $1,081,390 This account provides for the disposal of putrescible waste, hazardous materials through the division's Household Hazardous Waste Program, freon disposal from refrigeration units, shipping and disposal of Harbor's generated used oil and other environmentally sensitive material. V - 7

282 Public Works Solid Waste Disposal Division Technical Services: $7,400 This account provides for services that are not regarded as professional but require technical or special knowledge. Included is the cost of outside professional expertise such as water quality testing, which is sometimes required for non routine specialty tasks. This account also provides for routine semi annual ADEC inspections required for permitting and general operations. The State of Alaska presently charges for services provided for managing the division s permit and review of the proposed closure plan Other Contractual Services: $5,850 This account provides for contractual services not identified in the account classifications under contractual services which include pest control, systems alarm monitoring, etc Rents and Leases Machinery & Equipment: $700 This account provides for the rent and lease of machinery and equipment Telecommunications: $11,000 This account provides for telecommunication services. Included are charges for wired and wireless telecommunications services, cell phones, Internet and long distance Electric, Water, Sewer & Solid Waste: $45,000 This account provides for electric, water, sewer and solid waste utility services Furniture and Fixtures: $950 This account provides for acquisition of furniture and fixtures. Included are desks, chairs, tables, workstations, file cabinets, storage cabinets and building fixtures Machinery and Equipment: $10,000 This account provides for the acquisition of interchangeable tools for landfill equipment Computers, Printers and Copiers: $2,000 This account provides for the acquisition a new computer for the Solid Waste Division staff Software: $1,500 This account provides for acquisition of software systems and upgrades not covered by maintenance agreements, which includes the purchase of a preventative maintenance program to track upcoming equipment maintenance and to provide for a record of previous repairs Interdepartmental Charges Administrative: $19,840 This account provides for administrative and management services provided by the departments of the City Council, City Clerk and City Attorney and the administrative office of the City Manager Interdepartmental Charges Human Resources: $7,460 This account provides for human resource services provided by the Human Resources Division Interdepartmental Charges Finance: $36,400 This account provides for financial, accounting, payroll, accounts payable, billing, customer service and budgeting services provided by the Finance Department Interdepartmental Charges Information Technology: $17,460 This account provides for information technology services provided by the Information Technology Department Interdepartmental Charges Engineering: $149,000 This account provides for engineering services provided by the Public Works Department EngineeringDivision Interdepartmental Charges KPU Billing Services: $16,780 This account provides for billing and collection services provided by the KPU Sales, Marketing and Customer Service Division Interdepartmental Charges Insurance: $14,230 This account provides for risk management services and claims. V - 8

283 Public Works Solid Waste Disposal Division Interdepartmental Charges Garage: $15,300 This account provides for fleet maintenance services provided by the Public Works Department Garage Division. V - 9

284 Public Works Solid Waste Recycling Division MISSION STATEMENT The Solid Waste Recycling Division is responsible for providing safe and efficient collection of recyclable products. The division attempts to make service beneficial to the public by maximizing recycling when economically feasible and improving the operation to better serve Ketchikan. It is the responsibility of the staff to help and assist the public. The division is responsible for promoting programs that reduce waste and educate the community. PW Director/Engineering Manager Solid Waste Division Supervisor Solid Waste Facility Operator (1.0) GOALS FOR 2017 Complete design for a possible expansion of the Solid Waste Handling and Recycling Facility. Expand current paper collection route to include high volume producers. Continue efforts at schools within the City to capture additional recycling volumes. Continue efforts to capture additional metal volumes from materials received at the landfill. ACCOMPLISHMENTS FOR 2016 The division provided collection of paper products from a residential drop site by means of a drop box. The division has used its six cubic yard packer to collect office paper using rolling carts at municipal offices and schools throughout the City. The division continues to bale and ship white goods (appliances) as recyclable material, thereby removing them from the waste stream. Staff will continue to educate the public about materials currently accepted at the Solid Waste Handling and Recycling Facility. The division collects and grinds clean wood products to be recycled at its composting operation. Some contractors and other industrial users continue to separate wood for more efficient processing. The division continues focusing on removal of scrap metal for additional recycling volumes. The division added a Bulb Eater VRS/U to be able to take compact fluorescent lamps for recycling. V - 10

285 Public Works Solid Waste Recycling Division DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 33,643 99,168 64,768 60, , % Supplies 36,038 51,100 48,100 22,790 32,100 (19,000) 37.2% Contract/Purchased Services % Minor Capital Outlay 8,000 8,000 8,000 8, % Interdepartmental Charges 414 1,000 1, (200) 20.0% Total Expenditures 70, , ,668 92, ,850 (18,218) 11.4% Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % Solid Waste Services Fund 70, , ,668 92, ,850 (18,218) 11.4% Total Funding 70, , ,668 92, ,850 (18,218) 11.4% Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Solid Waste Facility Operator , % Total , % 0.6% 5.6% 0.6% 2017 Expenditures by Type 22.6% 70.6% Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Inventory for Resale (Account No ) has increased by $5,500. This is a new budget in 2017 to provide for the purchase of recycling containers and drop boxes. Freight Material and Supplies (Account No ) decreased by $24,500, or by 61.3%, due to accounting procedures in the new disposal and recycling contract to deduct shipping expenses before payment of commodities. V - 11

286 Public Works Solid Waste Recycling Division DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 20,522 61,638 39,138 39,070 62,870 1, % Payroll Taxes 1,477 4,700 4,500 2,900 4, % Pension 3,288 8,500 7,900 5,740 8,470 (30) 0.4% Insurance Benefits Health/Life 7,105 19,200 10,000 9,930 19, % Insurance Benefits Workers Comp 1,220 3,800 1,900 1,550 2,590 (1,210) 31.8% Other Benefits 31 1,000 1,000 1,000 1, % Allowances PW Clothing % Allowances Medical Expenses % Personnel Services and Benefits 33,643 99,168 64,768 60, , % Supplies Small Tools & Equipment 1,147 2,000 2,000 1,690 2, % Inventory for Resale 5,225 5,500 5,500 New Vehicle Maintenance Materials 7,003 8,100 8,100 6,800 8, % Machinery & Equip Maint Materials 478 1,000 1, , % Freight Material and Supplies 22,185 40,000 37,000 13,500 15,500 (24,500) 61.3% Supplies 36,038 51,100 48,100 22,790 32,100 (19,000) 37.2% Contract/Purchased Services Training and Education % Contract/Purchased Services % Minor Capital Machinery and Equipment 8,000 8,000 8,000 8, % Minor Capital Outlay 8,000 8,000 8,000 8, % Interdepartmental Charges Interdepartmental Insurance 414 1,000 1, (200) 20.0% Interdepartmental Charges 414 1,000 1, (200) 20.0% Total Expenditures by Type 70, , ,668 92, ,850 (18,218) 11.4% NARRATIVE Regular Salaries and Wages: $62,870 This account provides for compensation paid to all regular salaried and hourly employees of the Recycling Division Payroll Taxes: $4,810 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $8,470 This account provides for employer contributions to retirement plans Insurance Benefits: $19,850 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $2,590 This account provides for employer contributions to workers compensation insurance. V - 12

287 Public Works Solid Waste Recycling Division Other Benefits: $1,230 This account provides for expenditures for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Allowances Public Works Clothing: $250 This account provides for employer provided protective clothing allowances paid directly to represented employees of the Public Works Department pursuant to collective bargaining agreements or the Personnel Rules Allowances Medical Expenses: $80 This account provides for employee medical exams paid directly to employees. These benefits are taxable to the employees Small Tools and Equipment: $2,000 This account provides for minor tools & equipment used by the division during thecourseofayear Inventory for Resale: $5,500 This account provides for the purchase of equipment such as recycling containers and drop boxes for recycling Vehicle Maintenance Materials: $8,100 This account provides for the cost of operating and maintaining vehicles and equipment operated by the division. This account will also be used to maintain drop boxes and the additional hardware required Machinery and Equipment Maintenance Materials: $1,000 This account provides for the cost of maintaining recycling containers Freight Materials and Supplies: $15,500 This account provides for shipping metal/oil recycled products to market Training and Education: $800 This account provides for registration fees, training fees, training materials, tuition reimbursements and other incidental expenses associated with training and educating employees; and on premises training programs provided by staff or third parties Machinery and Equipment: $8,000 This account provides for the acquisition of new or replacement recycling equipment that will be used on the division s 1 ton truck chassis Interdepartmental Charges Insurance: $800 This account provides for risk management services and claims. V - 13

288 Public Works Solid Waste Collection Division MISSION STATEMENT The Solid Waste Collection Division is responsible for providing safe and efficient collection of municipal solid waste, demolition debris and recyclable products. The operation continues to be beneficial to the public by maximizing recycling when economically feasible and improving operations to better serve Ketchikan. It is the responsibility of the staff to help and serve the public. The division is responsible for promoting programs that reduce waste and educate the community. The division follows regulatory guidelines and makes every effort to meet the requirements set forth by those regulations. It is the responsibility of the division to promote an active and positive image of solid waste collection. PW Director/Engineering Manager Solid Waste Division Supervisor Solid Waste Collector (5.0) GOALS FOR 2017 Continue solid waste audit of residential and commercial accounts. Ensure all are paying for collection service. Generate daily collection sheet to include residential households. Improve route efficiencies on existing routes with a strong focus on cost savings. Increase collection of recyclable materials by identifying customers that may have waste that can be diverted as recyclable materials in a cost effective solution. Continue working with Finance Department to improve the tracking of seasonal business operators signing up for service. ACCOMPLISHMENTS FOR 2016 Customer collection relations continued to be the division s number one priority. The collection staff is well informed about operations and services and is able toanswer questions with regardto recycling and the handling of special waste. Seasonal adjustment of the commercial route to 6:00 a.m. has resulted in a much cleaner downtown earlier and less complaints about collection vehicles blocking businesses and tourists. Collection crews have kept up with demand by working seven days a week during tourist season. The division provided containers and collection services for special events as requested. Staff also worked extra hours due to holidays and special events. The division worked with ordinances dealing with litter and directed efforts at cleaning up problematic areas. The community still has bear issues and staff will continue to work with KPD and wildlife specialists to help educate the general public. V - 14

289 Public Works Solid Waste Collection Division DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 521, , , , ,419 1, % Supplies 77,910 81,947 81,722 74,830 82, % Contract/Purchased Services 11,095 10,020 10,245 10,245 10, % Minor Capital Outlay 6,281 5,500 5,500 5,400 5, % Interdepartmental Charges 161, , , , ,060 (5,810) 3.2% Total Expenditures 778, , , , ,764 (3,357) 0.4% Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % Solid Waste Services Fund 778, , , , ,764 (3,357) 0.4% Total Funding 778, , , , ,764 (3,357) 0.4% Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Supervisor , % Solid Waste Collector , % Total , % 2017 Expenditures by Type 20.1% 1.2% 0.6% 9.4% 68.7% Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $1,635, or by 0.3%, due to annual employee step increases; a 2.0% cost of living adjustment for IBEW, Local 1547 employees and non represented employees that will become effective January 1, 2017; increased employee health insurance co pays for non represented employees that became effective July 1, 2016, anda reductionin theworkers compensation rate class for solid waste workers. V - 15

290 Public Works Solid Waste Collection Division Interdepartmental Engineering (Account No ) decreased by $10,000, or by 16.1%, due to the decline in the effort required to support the solid waste capital improvement program. DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 257, , , , ,274 5, % Overtime Wages 20,444 24,000 24,000 22,960 24, % Temporary Wages 40,288 56,400 56,400 52,360 56, % Payroll Taxes 23,413 27,760 27,760 26,480 28, % Pension 48,497 53,260 53,260 50,700 53, % Insurance Benefits Health/Life 105, , , , ,380 3, % Insurance Benefits Workers Comp 27,501 37,250 35,450 28,810 28,510 (8,740) 23.5% Other Benefits (2,631) 6,020 14,890 14,890 6, % Allowances PW Clothing 1,362 1,375 1,375 1,375 1, % Allowances Medical Expenses % Personnel Services and Benefits 521, , , , ,419 1, % Supplies Operating Supplies 1,905 2,000 2,000 1,940 2, % Safety Program Supplies % Small Tools & Equipment % Inventory for Resale 18,550 17,600 17,600 17,400 17, % Vehicle Maintenance Materials 31,988 33,047 32,822 30,640 33, % Machinery & Equip Maint Materials 1,593 1,000 1, , % Vehicle Motor Fuel & Lubricants 22,844 26,500 26,500 22,500 26, % Supplies 77,910 81,947 81,722 74,830 82, % Contract/Purchased Services Training and Education % Ads and Public Announcements % Professional and Technical Licenses % Vehicle Licenses % Bank and Merchant Charges 11,055 9,100 9,325 9,325 9, % Contract/Purchased Services 11,095 10,020 10,245 10,245 10, % Minor Capital Machinery and Equipment 6,281 5,500 5,500 5,400 5, % Minor Capital Outlay 6,281 5,500 5,500 5,400 5, % Interdepartmental Charges Interdepartmental Administrative 17,805 18,960 18,974 19,191 20,430 1, % Interdepartmental Human Resources 6,201 7,220 7,220 7,047 7, % Interdepartmental Finance 30,147 34,510 34,510 32,138 37,460 2, % Interdepartmental Info Technology 19,818 19,310 19,310 18,573 17,970 (1,340) 6.9% Interdepartmental Engineering 51,372 62,000 62,000 58,000 52,000 (10,000) 16.1% Interdepartmental KPU Billing Services 25,176 25,170 25,170 25,170 25, % Interdepartmental Insurance 6,356 9,700 9,700 7,140 10, % Interdepartmental Garage 4,442 5,000 10,000 9,500 5, % Interdepartmental Charges 161, , , , ,060 (5,810) 3.2% Total Expenditures by Type 778, , , , ,764 (3,357) 0.4% V - 16

291 Public Works Solid Waste Collection Division NARRATIVE Regular Salaries and Wages: $288,274 This account provides for compensation paid to all regular salaried and hourly employees of the Solid Waste Collection Division Overtime Wages: $24,000 This account provides for compensation paid to all regular and temporary hourly employees for hours worked in excess ofa regular working cycle Temporary Wages: $56,400 This account provides for compensation paid to temporary salaried and hourly employees of the Solid Waste Collection Division Payroll Taxes: $28,200 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $53,800 This account provides for employer contributions to retirement systems Insurance Benefits Health and Life Insurance: $114,380 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $28,510 This account provides for employer contributions to workers compensation Other Benefits: $6,080 This account provides for expenditures for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Allowances Public Works Clothing: $1,375 This account provides for employer provided protective clothing allowances paid directly to represented employees of the Public Works Department pursuant to collective bargaining agreements or the Personnel Rules Allowances Medical Expenses: $400 This account provides for employee medical exams Operating Supplies: $2,000 This account provides for the purchase of departmental supplies such as gloves, safety vests, safety glasses, back braces and first aid equipment used during the course of the year Safety Program Supplies: $900 This account provides for the City safety program. This account is traditionally used to purchase materials and supplies necessary to conduct an ongoing safety program within the division. Included are safety information brochures, safety training audio and video programs, safety equipment, etc Small Tools and Equipment: $900 This account provides for the purchase and or replacement of small tools and equipment used by the division during the course of the year Inventory for Resale: $17,600 This account provides for the purchase of equipment such as solid waste dumpsters and drop boxes that are utilized by both the Recycling and Collection Divisions. These in turn are sold to commercial customers of the Solid Waste Collection Division or placed in areas for the collection of recyclable materials from the general public Vehicle Maintenance Materials: $33,640 This account provides for the cost of operating and maintaining vehicles operated by the division. This account will also be used to maintain drop boxes and the additional hardware required Machinery and Equipment Maintenance Materials: $1,000 This account provides for the cost of supplies and materials such as shovels, fastening hardware, brooms, wheel cart parts, vehicle wash and brushes that are used by the division through the course of the year. V - 17

292 Public Works Solid Waste Collection Division Vehicle Motor Fuel and Lubricants: $26,500 This account provides for the purchase of gasoline, diesel fuel and lubricants associated with the division s use of vehicles Training and Education: $200 This account provides for registration fees, training fees, training materials, tuition reimbursements and other incidental expenses associated with training and educating employees; and on premises training programs provided by staff or third parties Ads and Public Announcements: $300 This account provides for advertising and announcements in newspapers or broadcasts over radio. This account also provides for educating the public about waste collection requirements, which includes notification and education to help manage bear problems within the City Limits Professional and Technical Licenses: $300 This account provides for cost of commercial driver s licenses and other certificates required for operating equipment Vehicle Licenses: $120 This account provides for the cost of various licenses and fees associated with the permitting of the division s vehicles Bank and Merchant Charges: $9,325 This account provides for merchant fees for use of credit and debit cards Machinery and Equipment: $5,500 This account provides for the purchase of replacement equipment such as cart tippers and other miscellaneous items for the collection vehicles Interdepartmental Charges Administrative: $20,430 This account provides for administrative and management services provided by the departments of the City Council, City Clerk and City Attorney and the administrative office of the City Manager Interdepartmental Charges Human Resources: $7,670 This account provides for human resource services provided by the Human Resources Division Interdepartmental Charges Finance: $37,460 This account provides for financial, accounting, payroll, accounts payable, billing, customer service and budgeting services provided by the Finance Department Interdepartmental Charges Information Technology: $17,970 This account provides for information technology services provided by the Information Technology Department Interdepartmental Charges Engineering: $52,000 This account provides for engineering services provided by the Public Works Department Engineering Division Interdepartmental Charges KPU Billing Services: $25,170 This account provides for billing and collection services provided by the KPU Sales, Marketing and Customer Service Division Interdepartmental Charges Insurance: $10,360 This account provides for risk management services and claims Interdepartmental Charges Garage: $5,000 This account provides for fleet maintenance services provided by the Public Works Department Garage Division. V - 18

293 Public Works Solid Waste Capital Budget Budget Adopted/2017 Major Capital Projects Actual Adopted Amended Estimate Budget Incr(Decr) % Buildings 182, , , % Improvements to Land 58, % Vehicles and Moving Equipment 268, , , ,500 49, % Machinery and Equipment 688, % Infrastructure and Plant 18, , , , % Total Major Capital Outlay 764, , , , ,500 49, % 2017 Capital Improvement Projects Funding Sources Project # Project Solid Waste Fund Grants Total Buildings Solid Waste Building & Design 182, ,000 Total Buildings 182, , Vehicles and Moving Equipment ZX210 Excavator 275, ,000 Maintenance Truck Replacement 42,500 42,500 Total Vehicles and Moving Equipment 317, , Infrastructure and Plant Cover Material 100, ,000 Total Infrastructure and Plant 100, ,000 Total 2017 Capital Budget 599, ,500 Expenditures by Type Expenditures by Funding Source 16.7% 30.3% 53.0% Buildings Vehicles and Moving Equipment 100% Solid Waste Fund Infrastructure and Plant V - 19

294 Public Works Wastewater Summary The Wastewater Division manages, operates and maintains the municipal sanitary wastewater system. The system consists of a secondary treatment plant, a collection system and seven pump stations located throughout its service area. The service area is limited to providing services to businesses and residents living within the boundaries of the City and the Ketchikan International Airport. Wastewater is a division of the Public Works Department. Public Works Department Wastewater Division The Wastewater Division is comprised of one operating division and oversees a Capital Improvement Program. DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Operations 2,097,546 2,335,535 2,335,535 2,311,307 2,401,538 66, % Capital Improvement Program 212,908 1,320,200 2,903,387 2,811, ,676 (715,524) 54.2% Total 2,310,454 3,655,735 5,238,922 5,123,018 3,006,214 (649,521) 17.8% Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 800, , , , ,705 25, % Supplies 290, , , , ,675 (8,900) 2.4% Contract/Purchased Services 282, , , , ,375 9, % Minor Capital Outlay 48,921 53,500 53,500 53,500 53, % Interdepartmental Charges 464, , , , ,600 52, % Debt Service 131, , , , ,683 (11,742) 7.6% Payment in Lieu of Taxes 80,000 80,000 80,000 80,000 80, % Major Capital Outlay 212,908 1,320,200 2,903,387 2,811, ,676 (715,524) 54.2% Total 2,310,454 3,655,735 5,238,922 5,123,018 3,006,214 (649,521) 17.8% Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % Wastewater Fund 2,310,454 3,655,735 3,915,922 3,800,018 3,006,214 (649,521) 17.8% Bonds 1,323,000 1,323,000 NA Total 2,310,454 3,655,735 5,238,922 5,123,018 3,006,214 (649,521) 17.8% Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Operations , % Total , % W - 1

295 Public Works Wastewater Operations Division MISSION STATEMENT It is the mission of the Wastewater Division to protect the environment through effective management, operation and maintenance of the sanitary wastewater system. Management s primary concern is for the health and safety of the citizens and employees. The division strives to provide the citizens of the City of Ketchikan with quality service using experienced, welltrained personnel and by continuing to upgrade the existing treatment plant, equipment and collection system components. Public Works Department Wastewater Division Supervisor Senior Wastewater Operator (2.0) Wastewater Operator (4.0) Wastewater Lab Analyst GOALS FOR 2017 Maintain the sewer system as efficiently as possible within the constraints of the Wastewater Division s budget. Continue to meet EPA parameters without exceeding limits for BOD, fecal coliform, chlorine residual, ph, dissolved oxygen, copper and zinc. Reduced chemical consumption by carefully monitoring use and placement to maximize efficiency. ACCOMPLISHMENTS FOR 2016 Removed underground fuel tank at Treatment Plant B located at 3925 Tongass Avenue. Upgraded Treatment Plant B tank deck illumination to LED lighting per energy audit. Constructed a new tool storage room freeing up space for safer chlorine storage. Upgraded laboratory illumination to LED lighting. Upgraded Pump Station No. 4 force main connection prior to major slip lining contract. W - 2

296 Public Works Wastewater Operations Division Upgraded underwater camera system. Continued to maintain the aging infrastructure of the wastewater system and stay within the constraints of the division's operating budget. DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 800, , , , ,705 25, % Supplies 290, , , , ,675 (8,900) 2.4% Contract/Purchased Services 282, , , , ,375 9, % Minor Capital Outlay 48,921 53,500 53,500 53,500 53, % Interdepartmental Charges 464, , , , ,600 52, % Debt Service 131, , , , ,683 (11,742) 7.6% Payment in Lieu of Taxes 80,000 80,000 80,000 80,000 80, % Total Expenditures 2,097,546 2,335,535 2,335,535 2,311,307 2,401,538 66, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % Wastewater Fund 2,097,546 2,335,535 2,335,535 2,311,307 2,401,538 66, % Total Funding 2,097,546 2,335,535 2,335,535 2,311,307 2,401,538 66, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Wastewater Supervisor , % Senior Wastewater Operator , % Wastewater Operator , % Wastewater Lab Analyst , % Total , % 6.0% 3.3% 2017 Expenditures by Type 24.2% 2.2% 12.6% 14.8% 36.9% Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges Debt Service Payment in Lieu of Taxes W - 3

297 Public Works Wastewater Operations Division OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $25,445, or 3.0%, due to annual employee step increases; a 2.0% cost of living adjustment for IBEW, Local 1547 employees and non represented employees that will become effective January 1, 2017; and increased employee health insurance co pays for non representedemployeesthat became effective July 1, Chemicals (Account No ) increased by $15,000, or 10.3%, due to continued increases in the cost of chemicals used in wastewater treatment. Infrastructure Maintenance Materials (Account No ) decreased by $30,000, or 28.4%, to account for the reclassification ofcertainexpenditurestothe Operating Supplies account (Account No ). Machinery & Equipment Maint Services (Account No ) increased by $7,000, or 87.5%, due to substantial increased costs of replacing old equipment. Interdepartmental Engineering (Account No ) increased by $45,000, or 15.7% due to the additional effort required to support the wastewater utility's capital improvement program. Debt Service Principal and Interest (Accounts Nos and ) have decreased by $6,986 and $4,756 respectively, due to finalizing the debt service schedule for the ADEC bond that was issued to finance the Jackson/Monroe wastewater improvements. DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries & Wages 434, , , , ,415 21, % Overtime Wages 37,463 50,000 45,000 44,500 50, % Temporary Wages 23,600 30,000 28,300 24,220 30, % Payroll Taxes 36,533 41,220 41,220 39,710 42,800 1, % Pension 96,259 84,650 84,650 81,320 85,840 1, % Health & Life Insurance 153, , , , ,220 5, % Workers Compensation 15,693 19,760 19,760 19,520 19,210 (550) 2.8% Other Benefits 1,918 8,230 8,230 8,230 4,620 (3,610) 43.9% Allowances Public Works Clothing 1,750 1,700 2,000 2,000 2, % Allowances Medical Expenses % Personnel Services and Benefits 800, , , , ,705 25, % W - 4

298 Public Works Wastewater Operations Division Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Office Supplies 2,508 2,500 2,500 2,500 2, % Operating Supplies 6,958 6,900 13,900 13,900 11,000 4, % Safety Program Supplies 6,908 7,000 7,000 7,000 7, % Janitorial Supplies 2,861 7,250 7,250 7,250 7, % Small Tools & Equipment 6,899 5,000 9,000 9,000 7,000 2, % Chemicals 144, , , , ,000 15, % Vehicle Maintenance Materials 8,281 10,000 9,000 9,000 10, % Machinery & Equip Maint Materials 15,269 18,300 18,300 18,300 18, % Infrastructure Maint Materials 57, ,625 85,625 85,625 75,625 (30,000) 28.4% Postage 4,684 4,000 4,000 4,000 4, % Heating Fuel 22,364 36,000 27,000 27,000 36, % Vehicle Motor Fuel & Lubricants 7,311 12,000 9,000 9,000 12, % Professional & Technical Publications % Business & Meal Expenses % Uniforms/Badges/Clothing 3,089 4,000 4,000 4,000 4, % Supplies 290, , , , ,675 (8,900) 2.4% Contract/Purchased Services Travel Training 6,332 10,000 10,134 10,134 10, % Training & Education 375 5,000 4,866 4,866 5, % Ads & Public Announcements 2,735 2,500 2,500 2,500 2, % Professional & Technical Licenses % Assn. Membership Dues & Fees % Building & Operating Permits 3,964 2,800 2,800 2,800 1,800 (1,000) 35.7% Vehicle Licenses % Bank & Merchant Charges 12,507 10,000 10,000 10,000 12,000 2, % Vehicle Maintenance Services 3,000 3,000 3,000 3, % Software Maintenance Services 2,664 4,500 4,500 4,500 4, % Bldg. & Grounds Maint Services 2,698 8,000 8,000 8,000 8, % Machinery & Equip Maint Services 8,918 8,000 15,000 15,000 15,000 7, % Infrastructure Maint Services 27,711 26,150 26,150 26,150 26, % Technical Services 6,473 5,000 5,000 5,000 6,000 1, % Engineering & Architectural Services 21,910 3,000 3,000 3,000 3, % Management & Consulting Services 14,925 14,925 14,925 14, % Rents & Leases Machinery & Equip 297 1,000 1,000 1,000 1, % Telecommunications 11,879 13,000 13,000 13,000 13, % Electric, Water, Sewer & Solid Waste 173, , , , , % Contract/Purchased Services 282, , , , ,375 9, % Minor Capital Furniture & Fixtures 788 1,500 1,500 1,500 1, % Machinery & Equipment 47,957 50,000 50,000 50,000 50, % Computers, Printers & Copiers 176 2,000 2,000 2,000 2, % Minor Capital Outlay 48,921 53,500 53,500 53,500 53, % W - 5

299 Public Works Wastewater Operations Division Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Interdepartmental Charges Interdepartmental Administrative 26,709 28,510 28,510 28,786 30,640 2, % Interdepartmental Human Resources 9,301 10,820 10,820 10,571 11, % Interdepartmental Finance 45,221 51,760 50,760 48,207 56,190 4, % Interdepartmental Info Technology 29,727 28,960 28,960 27,859 26,950 (2,010) 6.9% Interdepartmental Engineering 227, , , , ,000 45, % Interdepartmental KPU Billing Services 48,048 48,050 48,050 48,049 48, % Interdepartmental Insurance 22,318 29,300 29,300 25,190 31,260 1, % Interdepartmental Garage 40,209 30,000 30,000 30,000 30, % Interdepartmental Equipment 15,000 15,000 15,000 15,000 15, % Interdepartmental Charges 464, , , , ,600 52, % Debt Service Debt Service Principal 81, , , , ,944 (6,986) 5.9% Debt Service Interest 49,923 36,495 64,095 63,679 31,739 (4,756) 13.0% Debt Service 131, , , , ,683 (11,742) 7.6% Other Costs Payment in Lieu of Taxes 80,000 80,000 80,000 80,000 80, % Other Costs 80,000 80,000 80,000 80,000 80, % Total Expenditures by Type 2,097,546 2,335,535 2,335,535 2,311,307 2,401,538 66, % NARRATIVE Regular Salaries & Wages: $479,415 This account provides for compensation paid to all regular salaried and hourly employees of the Wastewater Division Overtime Wages: $50,000 This account provides for compensation paid to all regular and temporary hourly employees for hours worked in excess ofa regular working cycle Temporary Wages: $30,000 This account provides for compensation paid to temporary salaried and hourly employees of the Wastewater Services Division Payroll Taxes: $42,800 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $85,840 This account provides for employer contributions to retirement plans Health & Life Insurance: $169,220 This account provides for employer contributions to employee health and life insurance plans Workers' Compensation: $19,210 This account provides for employer contributions to workers' compensation insurance Other Benefits: $4,620 This account provides for expenditures for direct claims from former employees for unemployment benefits paid bythe Stateof Alaska and accrued vacation and sick leave Allowances Public Works Clothing: $2,000 This account provides for employer provided protective clothing allowances paid directly to represented employees of the Public Works Department pursuant to collective bargaining agreements or the Personnel Rules. W - 6

300 Public Works Wastewater Operations Division Allowances Medical Expenses: $600 This account provides for employer provided medical exams paid directly to employees Office Supplies: $2,500 This account provides for paper, pens, pencils, adding machine ribbons and tape, note pads, file folders, scotch tape, toner, ink cartridges, photocopy charges, small desk accessories and minor office equipment such as adding machines, staplers, and tape dispensers Operating Supplies: $11,000 This account provides for supplies that are normally not of a maintenance nature and are required to support department operations. Included are supplies such as laboratory supplies, general materials for public programs and bottled water Safety Program Supplies: $7,000 This account provides for safety training audio and video programs, safety equipment, City required hearing tests, specialized hazardous materials handling and disposal information, specialized protective safety clothing, traffic control equipment, confined space related equipment for air sampling, calibration and man lifting Janitorial Supplies: $7,250 This account provides for cleaning and sanitation supplies used by the in house janitor Small Tools & Equipment: $7,000 This account provides for minor tools, operating and office equipment with a value of less than $1,000. Included are hand tools, chain saws, blow torches, hydraulic jacks, sump pumps, computer accessories, space heaters, radios, calculators, file cabinets and similar types of minor tools and equipment Chemicals: $160,000 This account provides for chemicals used for wastewater treatment and testing Vehicle Maintenance Materials: $10,000 This account provides for the repair and maintenance of vehicles owned or leased and operated by the division. Included are licensed and unlicensed rolling stock Machinery & Equipment Maintenance Materials: $18,300 This account provides for materials required for the repair and maintenance of machinery and equipment operated by the division. Included are office equipment, operating equipment, computernetworks and computers and pump station and treatment plant equipment Infrastructure Maintenance Materials: $75,625 This account provides for materials required for the repair and maintenance of infrastructure operated bythe division. Included are sewer mains, sewer pump stations, generators, treatment plant and SCADA communications Postage: $4,000 This account provides for postal related services such as postage, express delivery and mailing materials Heating Fuel: $36,000 This account provides for heating fuel to heat the wastewater treatment plants Vehicle Motor Fuel & Lubricants: $12,000 This account provides for gasoline, diesel fuel, propane and lubricants for vehicles and the 14 foot sampling skiff Professional & Technical Publications: $500 This account provides for professional and technical publications. Included are professional handbooks and technical journals and wastewater operator manuals Business & Meal Expenses: $500 This account provides for reimbursements to employees for business and job related meals, and other business related expenses Allowances Uniforms/Badges/Clothing: $4,000 This account provides for direct purchases of or reimbursements to employees for work related clothing required by department policies. Included are work clothes, raingear, hats, steel toed boots and gloves. W - 7

301 Public Works Wastewater Operations Division Travel Training: $10,000 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training Training & Education: $5,000 This account provides for registration fees, training fees, training materials, tuition reimbursements and other incidental expenses associated with training and educating employees; and on premises training programs provided by staff or third parties Advertising & Public Announcements: $2,500 This account provides for advertising and announcements in publications, newspapers, trade journals, Internet or broadcasts over radio and television. Included are legal notices, public service announcements, public awareness brochure, community issues, recruiting, requests for proposals, contracts and sales of property and equipment Professional & Technical Licenses: $500 This account provides for fees paid for technical certifications required by collection system and treatment plant operators, lab technicians, operators of special equipment and commercial driver s licenses Assn. Membership Dues & Fees: $500 This account provides for memberships in professional and trade associations such as American Water Works Association, Water Environment Federation and Alaska Rural Water Association Building & Operating Permits: $1,800 This account provides for permits required for construction, right of ways, easements, environmental, occupancy and operations Vehicle Licenses: $500 This account provides for licensing City vehicles for operations on public highways Bank & Merchant Charges: $12,000 This account provides for monthly bank account service charges, merchant fees for use of credit and debit cards, wire transfer fees and other fees for banking services Vehicle Maintenance Services: $3,000 This account provides for expenditures for the repair and maintenance of City vehicles by outside maintenance facilities. Included are licensed and unlicensed rolling stock and boats. This account includes contract labor and materials required to provide the service Software Maintenance Services: $4,500 This account provides for maintenance agreements to support licensed software systems Buildings & Grounds Maintenance Services: $8,000 This account provides contractual services for the repair and maintenance of buildings and the upkeep of grounds owned or leased by the City. This account includes contract labor and materials required to provide the service Machinery & Equipment Maintenance Services: $15,000 This account provides contractual services for the repair and maintenance of office equipment, laboratory equipment, machinery and other operating equipment used by the division. This account includes contract labor and materials required to provide the service. It also includes maintenance service agreements Infrastructure Maintenance Services: $26,150 This account provides contractual services for the repair and maintenance of infrastructure owned or leased by the City. This account includes contract labor and materials required to provide the service. Included are sewer mains, sewer pump stations, generators and SCADA systems Technical Services: $6,000 This account provides for services that are not regarded as professional but require technical or special knowledge. Included are, wastewater testing, data base management, video camera operators, pest control and security Engineering & Architectural Services: $3,000 This account provides for engineering and architectural services outside the scope of available services with internal staff. W - 8

302 Public Works Wastewater Operations Division Management & Consulting Services: $14,925 This account provides for management and consulting services. Included are project management, rate studies, management studies and other management and consulting engagement requiring persons or firms with specialized skills and knowledge Rents & Leases Machinery & Equipment: $1,000 This account provides for the rent and lease of machinery and equipment Telecommunications: $13,000 This account provides for telecommunication services. Included are charges for wired and wireless telecommunications services, cell phones, pagers, Internet, long distance and toll free numbers Electric, Water, Sewer & Solid Waste: $176,000 This account provides for electric, water, sewer and solid waste utility services Furniture & Fixtures: $1,500 This account provides for acquisition of furniture and fixtures. Included are desks, chairs, tables, workstations, file cabinets, storage cabinets and building fixtures Machinery & Equipment: $50,000 This account provides for the acquisition of machinery and equipment usually composed of a complex combination of parts. Included are office equipment, laboratory equipment, pumps, motors, fittings valves and operating equipmentrequiredtoprovideservices ormaintain capital assets Computers, Printers & Copiers: $2,000 This account provides for desktop, laptops, and tablet computers; computer printers and scanners, photocopiers and fax machines Interdepartmental Charges Administrative: $30,640 This account provides for administrative and management services provided by the departments of the City Council, City Clerk, City Attorney and the administrative office of the City Manager Interdepartmental Charges Human Resources: $11,510 This account provides for human resource services provided by the Human Resources Division Interdepartmental Charges Finance: $56,190 This account provides for financial, accounting, payroll, accounts payable, billing, customer service and budgeting services provided by the Finance Department Interdepartmental Charges Information Technology: $26,950 This account provides for information technology services provided by the Information Technology Department Interdepartmental Charges Engineering: $332,000 This account provides for engineering services provided by the Public Works Department Engineering Division Interdepartmental Charges KPU Billing Services: $48,050 This account provides for billing and collection services provided by the KPU Sales, Marketing and Customer Service Division Interdepartmental Charges Insurance: $31,260 This account provides for risk management services and claims Interdepartmental Charges Garage: $30,000 This account provides for fleet maintenance services provided by the Public Works Department Garage Division Equipment Charges: $15,000 This account provides for the expenditure for use of equipment owned by another department of the City Debt Service Principal: $111,944 This account provides for principal on Alaska Clean Water Loans for the Wastewater Division. W - 9

303 Public Works Wastewater Operations Division Debt Service Interest: $31,739 This account provides for interest on Alaska Clean Water Loans for the Wastewater Division Payments in Lieu of Taxes: $80,000 This account provides for payments in lieu of taxes assessed against the enterprise funds of the City. W - 10

304 Public Works Wastewater Capital Budget Budget Adopted/2017 Major Capital Projects Actual Adopted Amended Estimate Budget Incr(Decr) % Vehicles & Moving Equipment 225, ,000 NA Infrastructure and Plant 212,908 1,320,200 2,903,387 2,811, ,676 (940,524) 71.2% Total Major Capital Outlay 212,908 1,320,200 2,903,387 2,811, ,676 (715,524) 54.2% 2017 Capital Improvement Projects Funding Sources Project # Project Wastewater Fund Total Vehicles and Moving Equipment Vactor Sewer Cleaner / Jetter 225, ,000 Total Vehicles & Moving Equipment 225, , Infrastructure and Plant Sewer Main & Manhole Repair/Replacement 75,000 75,000 Upgrade Sewer Laterals 30,000 30,000 Force Main Replacement/Rehabilitation 80,000 80,000 Large Pump Station Upgrades 90,000 90,000 Small Pump Station Upgrades 40,000 40,000 WWTP Equipment Replacement 60,000 60,000 WW Tx Plan Bldg B Underground Storage Tank Removal 4,676 4,676 Total Infrastructure and Plant 379, ,676 Total 2017 Capital Budget 604, ,676 Expenditures by Type Expenditures by Funding Source 37% 63% Vehicles & Moving Equipment Infrastructure and Plant 100% Wastewater Fund W - 11

305 Harbors Summary The Port & Harbors Department operates and maintains six boat harbors: Bar Harbor South, Bar Harbor North, Thomas Basin, Casey Moran, Knudson Cove and Hole In The Wall; three launch ramps; and the Port of Ketchikan. Port & Harbors Harbors Port The Harbors Division of the Port & Harbors Department is comprised of one operating division and oversees one Capital Improvement Program. DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Operations 1,286,987 1,531,810 1,531,810 1,369,798 1,493,454 (38,356) 2.5% Capital Improvement Program 4,200, , , ,573 1,354,705 1,127, % Total 5,487,806 1,759,475 1,919,475 1,691,371 2,848,159 1,088, % Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 565, , , , ,048 28, % Supplies 61,737 70,390 70,390 70,390 70, % Contract/Purchased Services 254, , , , , % Minor Capital Outlay ,000 19,000 19,000 15,000 (4,000) 21.1% Interdepartmental Charges 200, , , , ,070 (33,500) 14.3% Debt Service 203, , , , ,250 (29,450) 7.9% Major Capital Outlay 4,200, , , ,573 1,354,705 1,127, % Total 5,487,806 1,759,475 1,919,475 1,691,371 2,848,159 1,088, % Expenditures by Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % Harbor Fund 1,432,884 1,531,810 1,531,810 1,332,628 1,547,624 15, % Grants 1,425, , ,055 New Harbor Construction 227, , , ,870 (41,795) 18.4% CPV Funds 1,151,761 NA Bonds 1,477, , , , ,610 New Total 5,487,806 1,759,475 1,919,475 1,691,371 2,848,159 1,088, % X - 1

306 Harbors Summary Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Operations , % Total , % X - 2

307 Harbors Operations Division MISSION STATEMENT The mission of the Harbor Division is to maintain and operate the City owned public boat harbors to provide safe and convenient use of the harbors by the commercial fishing fleet, charter boat fleet, pleasure vessels and the general public. The harbors are operated in accordance with the State Boat Harbor Management Agreement and Title 14 of the Ketchikan Municipal Code. The Harbor Division will, with the aid of the City Council, the City Manager s Office, the Port & Harbors Advisory Board and the State of Alaska, identify and pursue construction of new facilities and maintain existing facilities. The Harbor Division will promote the City of Ketchikan and assist the community in maintaining economic growth and prosperity. Port & Harbors Director (.25) Customer Service Representative (.60) Senior Assistant Harbormaster (.75) Administrative Assistant (.60) Assistant Harbormasters (1.80) Maintenance Workers (1.20) Temporary Customer Service Representative (.60) Temporary Assistant Harbormasters (1.80) Temporary Maintenance Harbormasters (1.20) GOALS FOR 2017 Complete design of Bar Harbor South Ramp 3 and begin construction if State Harbor Facility Municipal Matching Grant funding is awarded. Continue replacement of deteriorated concrete deck panels in Bar Harbor North. Beginreplacement of deteriorated decking and bull rails in Thomas Basin. X - 3

308 Harbors Operations Division Completed reconstruction of Hole In The Wall Harbor. ACCOMPLISHMENTS FOR 2016 Completed construction of Thomas Basin Harbor improvements. Replaced remaining two of five waste oil collection tanks. Began design of Bar Harbor South Ramp 3 replacement and applied for a State Harbor Facility Municipal Matching Grant. Completed replacement of decking and bull rails on Bar Harbor South Float 1. DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 565, , , , ,048 28, % Supplies 61,737 70,390 70,390 70,390 70, % Contract/Purchased Services 254, , , , , % Minor Capital Outlay ,000 19,000 19,000 15,000 (4,000) 21.1% Interdepartmental Charges 200, , , , ,070 (33,500) 14.3% Debt Service 203, , , , ,250 (29,450) 7.9% Total Expenditures 1,286,987 1,531,810 1,531,810 1,369,798 1,493,454 (38,356) 2.5% Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % Harbor Fund 1,286,987 1,531,810 1,531,810 1,369,798 1,493,454 (38,356) 2.5% Total Funding 1,286,987 1,531,810 1,531,810 1,369,798 1,493,454 (38,356) 2.5% Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Director of Port & Harbors , % Senior Assistant Harbormaster , % Assistant Harbormasters , % Maintenance Worker , % Administrative Assistant , % Customer Service Rep I , % Total , % X - 4

309 Harbors Operations Division % 2017 Expenditures by Type 23.3% 1.3% 51.8% Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges 6.1% OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below: Personnel Services and Benefits increased by $28,594, or by 5.0%, due to annual employee step increases; a 2.0% cost of living adjustment for IBEW, Local 1547 employees and non represented employees that will become effective January 1, 2017; and employee turnover, which has required adjustments to starting wages and health insurance coverage. An incorrect rate was used in 2016 to determine workers compensation insurance. This error has been corrected for Interdepartmental Engineering Account No decreased by $35,000, or by 42.7%, due to a reduction in the projected need for engineering services in Debt Service Principal and Interest (Accounts No and ) have increased by $21,800 and $7,650, respectively, due to lower interest rates than projected on the general obligation bond that was issued in 2016 to finance capital improvements at the municipally owned harbors. DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 248, , , , ,598 6, % Overtime Wages 15,460 8,000 8,000 8,000 8, % Temporary Wages 106,318 69,000 69,000 69,000 69, % Payroll Taxes 28,330 28,000 28,100 28,100 28, % Pension 59,807 58,130 62,130 61,490 59,300 1, % Health and Life Insurance 78,372 87,900 95,900 95, ,600 24, % Workers Compensation 19,329 23,450 23,450 18,430 16,350 (7,100) 30.3% Other Benefits 9,125 2,540 2,540 2,540 5,700 3, % Personnel Services and Benefits 565, , , , ,048 28, % X - 5

310 Harbors Operations Division Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Office Supplies 2,260 3,450 3,450 3,450 3, % Operating Supplies 3,734 3,300 3,300 3,300 3, % Safety Program Supplies % Janitorial Supplies 1,444 1,850 1,850 1,850 1, % Small Tools & Equipment 3,132 2,150 2,150 2,150 2, % Vehicle Maint Materials 843 2,000 2,000 2,000 2, % Infrastructure Maint Materials 33,667 38,500 38,500 38,500 38, % Postage 3,147 2,940 2,940 2,940 2, % Heating Fuel 2,676 5,700 5,700 5,700 5, % Vehicle Motor Fuel & Lubricants 8,224 8,000 8,000 8,000 8, % Periodicals % Uniforms/Badges/Clothing 2,309 2,100 2,100 2,100 2, % Supplies 61,737 70,390 70,390 70,390 70, % Contract/Purchased Services Travel Business 1,397 1,500 1,500 1,500 1, % Travel Training 1,291 1,300 1,300 1,300 1, % Training and Education 1,075 1,100 1,100 1,100 1, % Ads and Public Announcements 715 1,550 1,550 1,550 1, % Marketing 1,500 1,500 1,500 1, % Assn Membership Dues & Fees % Salvage & Disposal of Impounded Prop 7,000 7,000 7,000 7, % Towing of Impounded Property % Building & Operating Permits % Vehicle Licenses % Bank and Merchant Charges 16,532 18,000 18,000 18,000 18, % Janitorial and Cleaning Services 3,120 3,600 3,600 3,600 3, % Vehicle Maintenance Services 275 2,850 2,850 2,850 2, % Software Maintenance Services 364 2,000 2,000 2,000 2, % Bldg & Grounds Maint Services 4,445 6,700 6,700 6,700 6, % Machinery & Equip Maint Services 3,316 4,100 4,100 4,100 4, % Infrastructure Maint Services 972 8,100 8,100 8,100 8, % Rents & Leases Machinery & Equip % Telecommunications 25,614 26,146 26,146 26,146 26, % Electric, Water, Sewer & Solid Waste 195, , , , , % Contract/Purchased Services 254, , , , , % Minor Capital Furniture and Fixtures 144 2,000 2,000 2,000 2, % Machinery and Equipment 9,200 9,200 9,200 9, % Computers, Printers & Copiers 722 6,000 6,000 6,000 2,000 (4,000) 66.7% Software 1,800 1,800 1,800 1, % Minor Capital Outlay ,000 19,000 19,000 15,000 (4,000) 21.1% X - 6

311 Harbors Operations Division Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Interdepartmental Charges Interdepartmental Administrative 19,121 20,380 20,610 20,608 21,930 1, % Interdepartmental Human Resources 6,659 7,750 7,750 7,568 8, % Interdepartmental Finance 32,374 37,060 35,330 34,512 40,230 3, % Interdepartmental Info Technology 21,282 20,730 20,730 19,945 19,300 (1,430) 6.9% Interdepartmental Engineering 64,840 82,000 77,900 77,000 47,000 (35,000) 42.7% Interdepartmental Insurance 51,497 57,800 49,250 49,250 55,520 (2,280) 3.9% Interdepartmental Garage 4,847 8,850 23,000 23,000 8, % Interdepartmental Charges 200, , , , ,070 (33,500) 14.3% Debt Service Debt Service Principal 85, , ,800 90, ,000 (21,800) 13.1% Debt Service Interest 118, , , , ,250 (7,650) 3.7% Debt Service 203, , , , ,250 (29,450) 7.9% Total Expenditures by Type 1,286,987 1,531,810 1,531,810 1,369,798 1,493,454 (38,356) 2.5% NARRATIVE Regular Salaries and Wages: $295,598 This account provides for compensation paid to all regular salaried and hourly employees of the Harbors Division Overtime Wages: $8,000 This account provides for compensation paid to all regular and temporary hourly employees for hours worked in excess of a regular working cycle Temporary Wages: $69,000 This account provides for compensation paid to temporary salaried and hourly employees of the Harbors Division Payroll Taxes: $28,500 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $59,300 This account provides for employer contributions to retirement plans Health and Life Insurance: $112,600 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $16,350 This account provides for employer contributions toworkers compensation Other Benefits: $5,700 This account provides for expenditures for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Office Supplies: $3,450 This account provides for paper, pens, pencils, adding machine ribbons and tape, note pads, file folders, scotch tape, toner, ink cartridges, photocopy charges, small desk accessories and minor office equipment such as adding machines, calculators, staplers, comb binding machines and tape dispensers Operating Supplies: $3,300 This account provides for supplies that are normally not of a maintenance nature and are required to support department operations. Included are supplies such as medical supplies, coffee, creamer, disposable cups, paper plates, plastic utensils, public trash cans, public benches, keys and locksets. $ X - 7

312 Harbors Operations Division Safety Program Supplies: $300 This account provides for the City safety program. Included are safety information brochures, safety training audio and video programs, safety equipment, OSHA required medical exams, specialized hazardous materials handling and disposal information, specialized protective safety clothing and traffic control Janitorial Supplies: $1,850 This account provides for cleaning and sanitation supplies used by contractedjanitors Small Tools and Equipment: $2,150 This account provides for minor tools and operating & office equipment with a value of less than $1,000. Included are hand held radios, hand tools, chain saws, torches, hydraulic jacks, de watering pumps, computer accessories, portable heaters, radios, welders, and similar types of minor tools and equipment Vehicle Maintenance Materials: $2,000 This account provides for the materials required for maintaining vehicles such as tires Infrastructure Maintenance Materials: $38,500 This account provides for the materials required for the repair and maintenance of infrastructure owned or leased and operated by the Harbor Department. Included are launch ramps, access ramps, floats, piles, lighting, water lines and other items associated with the harbor facilities Postage: $2,940 This account provides for postal related services such as postage, express delivery, mailing materials, etc Heating Fuel: $5,700 This account provides for heating fuel to heat facilities owned or leased by the City and operated by the Harbors Department Vehicle Motor Fuel and Lubricants: $8,000 This account provides for gasoline, diesel fuel, propane and lubricants used in the operations of the Harbor Department Periodicals: $100 This account provides for the newspapers, magazines and trade journals Allowances Uniforms/Badges/Clothing: $2,100 This account provides for direct purchases of or reimbursements to employees for work related clothing required by department policies. Included are work shirts, jackets, float suits, raingear, hats, boots and gloves Travel Business: $1,500 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for business Travel Training: $1,300 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training Training and Education: $1,100 This account provides for registration fees, training fees, training materials, tuition reimbursements and other incidental expenses associated with training and educating employees; and on premises training programs provided by staff or third parties Advertising and Public Announcements: $1,550 This account provides for advertising and announcements in publications, newspapers, trade journals, Internet or broadcasts over radio and television. Included are public service announcements, community issues, recruiting, requests for proposals, contracts and sales of property and equipment Marketing: $1,500 This account provides for announcements in publications, newspapers, trade journals, Internet or broadcasts over radio and television Dues and Membership Fees: $200 This account provides for memberships in professional and trade associations Salvage and Disposal of Impounded Property: $7,000 This account provides for salvaging and/or disposing of junked marine vessels. X - 8

313 Harbors Operations Division Towing of Impounded Property: $500 This account provides for towing and/or storing of impounded vehicles and marine vessels Building and Operating Permits: $900 This account provides for permits required for construction, right of ways, easements, environmental, occupancy and operations Vehicle Licenses: $50 This account provides for licensing City vehicles for operations on public highways Bank and Merchant Charges: $18,000 This account provides for monthly bank account service charges, merchant fees for use of credit and debit cards, wire transfer fees and other fees for banking services Janitorial and Cleaning Services: $3,600 This account provides for services to clean Harbor Department facilities and equipment owned or leased by the City. Included are janitorial, carpet cleaning and laundry services Vehicle Maintenance Services: $2,850 This account provides for services required for the repair and maintenance of Harbor Department vehicles by outside maintenance facilities. Included are licensed and unlicensed rolling stock and boats. This account includes contract labor and materials requiredto provide the service Software Maintenance Services: $2,000 This account provides for maintenance agreements to support licensed software systems Buildings and Grounds Maintenance Services: $6,700 This account provides for services required for the repair and maintenance of buildings and the upkeep of grounds owned or leased by the Harbors Division. This account includes contract labor and materials required to provide the service Machinery and Equipment Maintenance Services: $4,100 This account provides for services required for the repair and maintenance of office equipment, machinery and other operating equipment owned or leased by the Harbor Division. This account includes contract labor and materials requiredto provide the service. It also includes maintenance service agreements Infrastructure Maintenance Services: $8,100 This account provides for the services required for repair and maintenance of infrastructure owned or leased by the Harbors Division. This account includes contract labor and materials required to provide the service. Included are maintenance to ramps, floats, docks, walkways, pavement and utilities Rents and Leases Machinery & Equipment: $900 This account provides for the rent and lease of machinery and equipment Telecommunications: $26,146 This account provides for telecommunication services. Included are charges for wired andwireless telecommunications services, cell phones, Internet, long distance and data streaming for securitycameras Electric, Water, Sewer & Solid Waste: $179,700 This account provides for electric, water, sewer and solid waste utility services Furniture and Fixtures: $2,000 This account provides for acquisition of furniture and fixtures. Included are desks, chairs, tables, workstations, file cabinets, storage cabinets and building fixtures Machinery and Equipment: $9,200 This account provides for the acquisition of machinery and equipment usually composed of a complex combination of parts. Included are office and operating equipment required to provide services or maintain capital assets Computers, Printers & Copiers: $2,000 This account provides for the acquisition of computers, printers and copiers Software: $1,800 This account provides for acquisition of software systems and upgrades not covered by maintenance agreements. X - 9

314 Harbors Operations Division Interdepartmental Charges Administrative: $21,930 This account provides for administrative and management services provided by the departments of the City Council, City Clerk, City Attorney and the administrative office of the City Manager Interdepartmental Charges Human Resources: $8,240 This account provides for human resource services provided by the Human Resources Division Interdepartmental Charges Finance: $40,230 This account provides for financial, accounting, payroll, accounts payable, billing, customer service and budgeting services provided by the Finance Department Interdepartmental Charges Information Technology: $19,300 This account provides for information technology services provided by the Information Technology Department Interdepartmental Charges Engineering: $47,000 This account provides for engineering services provided by the Public Works Department Engineering Division Interdepartmental Charges Insurance: $55,520 This account provides for risk management services and claims Interdepartmental Charges Garage: $8,850 This account provides for fleet maintenance services provided by the Public Works Department Garage Division Debt Service Principal: $145,000 This account provides for principal on general obligation bonds issued to finance harbor capital improvements Debt Service Interest: $199,250 This account provides for interest on general obligation bonds issued to finance harbor capital improvements. X - 10

315 Harbors Capital Budget Budget Adopted/2017 Major Capital Projects Actual Adopted Amended Estimate Budget Incr(Decr) % Vehicles and Moving Equipment 17,000 17,000 NA Infrastructure and Plant 4,200, , , ,573 1,337,705 1,110, % Total Major Capital Outlay 4,200, , , ,573 1,354,705 1,127, % 2017 Capital Improvement Projects Funding Sources Project # Project Harbor Fund Harbor Construction Fund Bonds & Grants Total Vehicles and Moving Equipment 3/4 Ton Work Truck Replacement 17,000 17,000 Total Vehicles and Moving Equipment 17,000 17, Infrastructure and Plant Bar Harbor North Repl Ramp 3 & Floats 10&11 Electrical 139,445 1,114,665 1,254,110 Thomas Basin Float 3 Rehabilitation 35,000 35,000 Security Camera Upgrades 11,425 11,425 Hole in the Wall 37,170 37,170 Total Infrastructure and Plant 223,040 1,114,665 1,337,705 Total 2017 Capital Budget 17, ,040 1,114,665 1,354,705 Expenditures by Type 1% Expenditures by Funding Source 1.25% 16.46% 99% Vehicles and Moving Equipment Infrastructure and Plant 82.29% Harbor Construction Fund Bonds & Grants Harbor Fund X - 11

316 Port Summary The Port & Harbors Department operates and maintains the Port of Ketchikan, six boat harbors: Bar Harbor South, Bar Harbor North, Thomas Basin, Casey Moran, Knudson Cove, and Hole In The Wall; and three launch ramps. Port & Harbors Harbors Port The Port Division of the Port & Harbors Department is comprised of one operating division and oversees a Capital Improvement Program. DEPARTMENT EXECUTIVE SUMMARY Divisions/Cost Center/Programs Actual Adopted Amended Estimate Budget Incr(Decr) % Operations 7,870,158 8,155,211 8,856,211 8,762,965 7,871,082 (284,129) 3.5% Capital Improvement Program 1,151,652 2,022,532 2,022, ,867 4,713,432 2,690, % Total 9,021,810 10,177,743 10,878,743 9,251,832 12,584,514 2,406, % Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 1,010,413 1,098,229 1,084,929 1,022,590 1,112,170 13, % Supplies 61,595 86,095 86,095 86,095 91,595 5, % Contract/Purchased Services 2,874,748 2,990,467 2,988,967 2,988,967 3,082,467 92, % Minor Capital Outlay 1,964 12,500 12,500 12,500 8,500 (4,000) 32.0% Interdepartmental Charges 343, , , , ,000 (40,870) 10.7% Debt Service 2,571,740 2,579,050 3,293,350 3,293,267 2,228,350 (350,700) 13.6% Other Costs 1,006,399 1,007,000 1,007,000 1,007,000 1,007, % Major Capital Outlay 1,151,652 2,022,532 2,022, ,867 4,713,432 2,690, % Total 9,021,810 10,177,743 10,878,743 9,251,832 12,584,514 2,406, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % Port Enterprise Fund 8,029,773 8,435,356 9,136,356 9,031,279 11,084,913 2,649, % Port Repair and Replacement Fund 23, , ,000 53,154 (110,000) 100.0% Grants 968,358 1,632,387 1,632, ,399 1,499,601 (132,786) 8.1% Total 9,021,810 10,177,743 10,878,743 9,251,832 12,584,514 2,406, % Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Operations , % Total , % Y - 1

317 Port Operations Division MISSION STATEMENT The mission of the Port Division is to maintain and operate the Port of Ketchikan in a manner that provides for the safe and convenient use of the Port facilities by the cruise industry, commercial fishing fleet, charter boat fleet and the general public. The Port is operated in accordance with Title 13 of the Ketchikan Municipal Code. The Port Division will, with the aid of the City Council, City Manager s Office, the Port & Harbors Advisory Board, and the Cruise Ship industry, identify and pursue construction of new facilities and maintain existing facilities. The Port Division will promote the City of Ketchikan and assist the community in maintaining economic growth and prosperity. Port & Harbors Director (.75) Customer Service Representative (.40) Senior Assistant Harbormaster (.25) Port Operations Coordinator (1.0) Administrative Assistant (.40) Assistant Harbormasters (1.20) Maintenance Workers (.80) Temporary Port Assistant Harbormaster (3.0) Temporary Customer Service Representative (.40) Temporary Assistant Harbormasters (1.20) Temporary Maintenance Harbormasters (.80) Temporary Port Security/Crossing Guards (30.0) GOALS FOR 2017 Complete construction of Phase IVa of the Berths I & II Rehabilitation Project. Design and begin construction of improvements to Berth III and overhaul of the Berth III barge. Begin design of improvements to Berths I & II to accommodate future classes of cruise ships. Install additional benches, planters and historical signage on Berth III, Berth IV and the promenade. ACCOMPLISHMENTS FOR 2016 Completed construction of Phase IV of the Berths I & II Rehabilitation Project. Began design of Phase IVa of the Berths I & II Rehabilitation Project. Completed review and inspection of Port infrastructure and developed masterplan for improvements to Berths I&II to accommodate future classes of cruise ships. Began and completed emergency repairs to Berth III after allision by cruise ship Infinity. Completed installation of remaining stained glass mosaics on the waterfront promenade. Y - 2

318 Port Operations Division DIVISION SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits 1,010,413 1,098,229 1,084,929 1,022,590 1,112,170 13, % Supplies 61,595 86,095 86,095 86,095 91,595 5, % Contract/Purchased Services 2,874,748 2,990,467 2,988,967 2,988,967 3,082,467 92, % Minor Capital Outlay 1,964 12,500 12,500 12,500 8,500 (4,000) 0.0% Interdepartmental Charges 343, , , , ,000 (40,870) 10.7% Debt Service 2,571,740 2,579,050 3,293,350 3,293,267 2,228,350 (350,700) 13.6% Other Costs 1,006,399 1,007,000 1,007,000 1,007,000 1,007, % Total Expenditures 7,870,158 8,155,211 8,856,211 8,762,965 7,871,082 (284,129) 3.5% Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % Port Fund 7,870,158 8,155,211 8,856,211 8,762,965 7,871,082 (284,129) 3.5% Total Funding 7,870,158 8,155,211 8,856,211 8,762,965 7,871,082 (284,129) 3.5% Full time Equivalent Personnel Actual Adopted Amended Budget Salary Incr(Decr) % Director Port & Harbors , % Senior Assistant Harbormaster , % Port Operations Coordinator , % Assistant Harbormasters , % Maintenance Worker , % Administrative Assistant , % Customer Service Rep I , % Total , % 2017 Expenditures by Type 28.3% 4.3% 12.8% 0.1% 14.1% 1.2% 39.2% Personnel Services and Benefits Supplies Contract/Purchased Services Minor Capital Outlay Interdepartmental Charges Debt Service Other Costs Y - 3

319 Port Operations Division OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Personnel Services and Benefits increased by $13,941, or by 1.3%, due to annual employee step increases; a 2.0% cost of living adjustment for IBEW, Local 1547 employees and non represented employees that will become effective January 1, 2017; and employee turnover, which has required adjustments to starting wages and health insurance coverage. Many of the Port Security and Crossing Guard personnel are college students and historically enough of them have to depart before the end of the season that overtime costs end up being higher than budgeted and temporary wages lower than budgeted. As result, overtime wages have been increased by $10,000 and temporary wages have been decreased by $10,000 for An incorrect rate was used in 2016 to determine workers compensation insurance. This error has been corrected for Supplies Uniforms/Badges/Clothing (Account No ) has increased by $5,500, or by 57.9%, in order to purchase matching black slacks and shorts for Port Security and Crossing Guard personnel. Building & Grounds Maintenance Services (Account No ) has increased by $6,000, or by 28.6%, to account for additional planters at the Port and to expand and/or enhance the seasonal displays of flora. Other Contractual Services (Account No ): This a new account for the purpose of funding ($15,000) a weekly arts series at the Port of Ketchikan. Modeled after Seatac's Experience the City of Music Program, it is an effort to showcase Ketchikan's diverse musical talent to the community's cruise ship visitors. Interdepartmental Engineering (Account No ) decreased by $17,000, or by 33.3%, due the reduced efforts required to support the department's capital improvement program. Interdepartmental Insurance (Account No ) decreased by $29,600, or by 15%, due the reduction in the cost of property insurance for Berth IV. Debt Service Principal and Interest (Accounts No and ) have decreased by $35,000 and $315,700, respectively, due to the refunding of the 2006 Port Bond in The refunding resulted in significant savings in interest costs. DIVISION OPERATING BUDGET DETAIL Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Personnel Services and Benefits Regular Salaries and Wages 251, , , , ,840 7, % Overtime Wages 61,457 45,000 45,800 45,800 55,000 10, % Temporary Wages 374, , , , ,600 (10,000) 2.3% Payroll Taxes 52,334 60,850 60,850 54,940 61, % Pension 136,108 78,090 78,090 72,370 81,930 3, % Health and Life Insurance 85, , ,400 98, ,460 18, % Workers Compensation 39,764 55,310 77,610 64,960 38,050 (17,260) 31.2% Other Benefits 8,588 8,570 8,570 8,570 9,900 1, % Personnel Services and Benefits 1,010,413 1,098,229 1,084,929 1,022,590 1,112,170 13, % Y - 4

320 Port Operations Division Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Supplies Office Supplies 1,749 2,500 2,500 2,500 2, % Operating Supplies 5,300 5,000 5,000 5,000 5, % Safety Program Supplies % Janitorial Supplies 9,703 10,100 10,100 10,100 10, % Small Tools & Equipment 7,672 8,000 8,000 8,000 8, % Vehicle Maint Materials 1,170 2,000 2,000 2,000 2, % Bldg & Grounds Maint Materials 10,099 12,500 12,500 12,500 12, % Machinery & Equip Maint Materials 780 1,000 1,000 1,000 1, % Infrastructure Maint Materials 8,675 20,000 20,000 20,000 20, % Postage % Heating Fuel 2,676 5,900 5,900 5,900 5, % Vehicle Motor Fuel & Lubricants 6,840 8,900 8,900 8,900 8, % Periodicals % Uniforms/Badges/Clothing 6,417 9,500 9,500 9,500 15,000 5, % Supplies 61,595 86,095 86,095 86,095 91,595 5, % Contract/Purchased Services Travel Business 1,397 1,500 1,500 1,500 1, % Travel Training 1,291 2,050 2,050 2,050 2, % Training and Education 3,328 3,700 3,700 3,700 3, % Ads & Public Announcements 899 1,000 1,000 1,000 1, % Marketing 590 1,500 1,500 1,500 1, % Assn. Membership Dues & Fees % Salvage & Disposal of Impounded Prop 2,000 2,000 2,000 2, % Towing of Impounded Property % Building & Operating Permits % Vehicle Licenses % Bank and Merchant Charges % Janitorial and Cleaning Services 14,455 15,000 13,500 13,500 15, % Vehicle Maintenance Services 275 3,000 3,000 3,000 3, % Software Maintenance Services 364 2,000 2,000 2,000 2, % Bldg. & Grounds Maint Services 12,017 21,000 21,000 21,000 27,000 6, % Machinery & Equip Maint Services 2,731 12,000 12,000 12,000 12, % Infrastructure Maint Services 9,720 12,000 12,000 12,000 12, % Technical Services 528 5,000 5,000 5,000 5, % Marketing Services 171, , , , , % Other Contractual Services 15,000 15,000 New Legal and Accounting Services 4,000 4,000 4,000 4, % Engineering & Architectural Services 9,730 8,000 8,000 8,000 8, % Rents & Leases Land & Buildings 420 2,000 2,000 2,000 2, % Rents & Leases Machinery & Equip % Rents & Leases Infrastructure 2,368,087 2,490,000 2,490,000 2,490,000 2,561,000 71, % Telecommunications 23,275 24,146 24,146 24,146 24, % Electric, Water, Sewer & Solid Waste 254, , , , , % Contract/Purchased Services 2,874,748 2,990,467 2,988,967 2,988,967 3,082,467 92, % Minor Capital Furniture and Fixtures 144 3,000 3,000 3,000 3, % Vehicles and Moving Equipment New Machinery and Equipment 2,000 2,000 2,000 2, % Computers, Printers & Copiers 1,820 6,000 6,000 6,000 2,000 (4,000) 66.7% Software 1,500 1,500 1,500 1, % Minor Capital Outlay 1,964 12,500 12,500 12,500 8,500 (4,000) 32.0% Y - 5

321 Port Operations Division Budget Adopted/2017 Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Interdepartmental Charges Interdepartmental Administrative 29,036 30,950 30,950 31,294 33,310 2, % Interdepartmental Human Resources 10,111 11,770 11,770 11,492 12, % Interdepartmental Finance 49,160 56,270 56,270 52,560 61,080 4, % Interdepartmental Info Technology 32,317 31,480 31,480 30,290 29,300 (2,180) 6.9% Interdepartmental Engineering 41,575 51,000 51,000 48,000 34,000 (17,000) 33.3% Interdepartmental Insurance 176, , , , ,300 (29,600) 15.0% Interdepartmental Garage 4,819 3,500 22,000 22,000 3, % Interdepartmental Charges 343, , , , ,000 (40,870) 10.7% Debt Service Debt Service Principal 885, ,000 1,540,000 1,540, ,000 (35,000) 3.8% Debt Service Interest 1,686,740 1,649,050 1,753,350 1,753,267 1,333,350 (315,700) 19.1% Debt Service 2,571,740 2,579,050 3,293,350 3,293,267 2,228,350 (350,700) 13.6% Other Costs Transfer to Port R&R Fund 522, , , , , % Payment in Lieu of Taxes 484, , , , , % Other Costs 1,006,399 1,007,000 1,007,000 1,007,000 1,007, % Total Expenditures by Type 7,870,158 8,155,211 8,856,211 8,762,965 7,871,082 (284,129) 3.5% NARRATIVE Regular Salaries and Wages: $320,840 This account provides for compensation paid to all regular salaried and hourly employees of the Port Division Overtime Wages: $55,000 This account provides for compensation paid to all regular and temporary hourly employees for hours worked in excess of a regular working cycle Temporary Wages: $426,600 This account provides for compensation paid to temporary salaried and hourly employees of the Port Division Payroll Taxes: $61,390 This account provides for employer contributions for Social Security and Medicare and other similar payroll related taxes Pension: $81,930 This account provides for employer contributions to retirement plans Health and Life Insurance: $118,460 This account provides for employer contributions to employee health and life insurance plans Workers Compensation: $38,050 This account provides for employer contributions to workers compensation insurance Other Benefits: $9,900 This account provides for expenditures for direct claims from former employees for unemployment benefits paid by the State of Alaska and accrued vacation and sick leave Office Supplies: $2,500 This account provides for paper, pens, pencils, adding machine ribbons and tape, note pads, file folders, scotch tape, toner, ink cartridges, photocopy charges, small desk accessories and minor office equipment such as adding machines, staplers, and tape dispensers. Y - 6

322 Port Operations Division Operating Supplies: $5,000 This account provides for supplies that are normally not of a maintenance nature and are required to support department operations. Included are supplies such as medical supplies, coffee, creamer, disposable cups, paper plates, plastic utensils, public trash cans, public benches, keys and locksets Safety Program Supplies: $400 This account provides for the City safety program. Included are safety information brochures, safety training audio and video programs, safety equipment, OSHA required medical exams, specialized hazardous materials handling and disposal information, specialized protective safety clothing and traffic control Janitorial Supplies: $10,100 This account provides for cleaning and sanitation supplies used at the Harbormaster Building and public restrooms, including Berths III and IV, by in house and contracted janitors Small Tools and Equipment: $8,000 This account provides for minor tools and operating & office equipment with a value of less than $1,000. Included are hand held radios, hand tools, chain saws, torches, hydraulic jacks, de watering pumps, computer accessories, portable heaters, radios, welders, cabinets and similar types of minor tools and equipment Vehicle Maintenance Materials: $2,000 This account provides for the materials required for maintaining vehicles such as tires Buildings and Grounds Maintenance Materials: $12,500 This account provides for the materials required for the buildings and grounds owned or leased and operated by the Port. Included are the restrooms on Berths III and IV, the security planters and the exterior of the Ketchikan Visitors Bureau building on Berth II Machinery and Equipment Maintenance Materials: $1,000 This account provides for materials required for maintaining machinery and equipment such as the Port crane Infrastructure Maintenance Materials: $20,000 This account provides for materials required for the repair and maintenance of infrastructure owned or leased and operated by the Port. Included are sidewalks, parking lots, promenades, and Port & Harbor berthing facilities Postage: $95 This account provides for postal related services such as postage, express delivery, mailing materials and the rent of post office boxes and postage machines Heating Fuel: $5,900 This account provides for heating fuel to heat the Harbormaster Building, shop and other facilities operated by the Port Vehicle Motor Fuel and Lubricants: $8,900 This account provides for gasoline, diesel fuel, propane and lubricants for Port vehicles and vessels Periodicals: $200 This account provides for the newspapers,magazines and trade journals Allowances Uniforms/Badges/Clothing: $15,000 This account provides for direct purchases of or reimbursements to employees for work related clothing required by department policies. Included are work shirts, jackets, slacks, float suits, raingear, hats, boots and gloves Travel Business: $1,500 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for business Travel Training: $2,050 This account provides for transportation, lodging, meals, per diems and other incidental expenses associated with travel for training Training and Education: $3,700 This account provides for registration fees, training fees, training materials, tuition reimbursements and other incidental expenses associated with training and educating employees; and on premises training programs provided by staff or third parties. Y - 7

323 Port Operations Division Advertising and Public Announcements: $1,000 This account provides for advertising and announcements in publications, newspapers, trade journals, Internet or broadcasts over radio and television. Included are public service announcements, community issues, recruiting, requests for proposals, contracts and sales of property and equipment Marketing: $1,500 This account provides for announcements in publications, newspapers, trade journals, Internet, or broadcasts over radio and television Assn. Membership Dues and Fees: $300 This account provides for memberships in professional and trade associations Salvage and Disposal of Impounded Property: $2,000 This account provides for salvaging and/or disposing of junked marine vessels Towing of Impounded Property: $500 This account provides for towing and/or storing of impounded vehicles and marine vessels Building and Operating Permits: $100 This account provides for permits required for construction, right of ways, easements, environmental, occupancy and operations Vehicle Licenses: $100 This account provides for licensing Port vehicles for operations on public highways Bank and Merchant Charges: $800 This account provides for monthly bank account service charges, merchant fees for use of credit and debit cards, wire transfer fees and other fees for banking services Janitorial and Cleaning Services: $15,000 This account provides for services to clean facilities and equipment owned or leased by the City. Included are janitorial and carpet cleaning for the Harbormaster Building and public restrooms including Berths III and IV Vehicle Maintenance Services: $3,000 This account provides for expenditure for the repair and maintenance of Port vehicles and vessels by outside maintenance facilities. Included are licensed and unlicensed rolling stock and boats. This account includes contract labor and materials required to provide the service Software Maintenance Services: $2,000 This account provides for maintenance agreements to support licensed software systems Buildings and Grounds Maintenance Services: $27,000 This account provides for the services required for the repair and maintenance of buildings and the upkeep of the security planters on the Port. This account includes contract labor and materials required to provide the service Machinery and Equipment Maintenance Services: $12,000 This account provides for the services required for the repair and maintenance of office equipment, machinery and other operating equipment owned or leased by the City. This account includes contract labor and materials required to provide the service. It also includes maintenance service agreements Infrastructure Maintenance Services: $12,000 This account provides for the services required for the repair and maintenance of infrastructure owned or leased by the Port. This account includes contract labor and materials required to provide the service. Included are maintenance to ramps, floats, docks, walkways, pavement and utilities. Repairs by qualified electricians to electrical circuits, lighting and capstans account for the majority of this category Technical Services: $5,000 This account provides for services that are not regarded as professional but require technical or special knowledge. Included are, data base management, video monitoring, website maintenance and pest control Marketing Services: $171,490 This account provides for services to market, improve and promote competitive services offered by the Port. Included are consulting services for developing marketing strategies, customer surveys and direct marketing services offered by third parties such as the Ketchikan Visitors Bureau. Y - 8

324 Port Operations Division Other Contractual Services: $15,000 This account provides funding of a weekly arts series at the Port of Ketchikan. Modeled after Seatac's Experience the City of Music Program, it is an effort to showcase Ketchikan's diverse musical talent to the community's cruise ship visitors Legal and Accounting Services: $4,000 This account provides for legal and accounting services. Included are contract attorney services, public defender services, audit services, accounting and financial services, arbitration services, specialized legal services for complex issues that cannot be addressed by the City s legal department and other legal services Engineering and Architectural Services: $8,000 This account provides for engineering and architectural services Rents and Leases Land and Buildings: $2,000 This account provides for the rent and lease of land and buildings. Included are offices, space rental for events, storage yards and covered storage facilities. Both operating and capital leases are accounted for in this account Rents and Leases Machinery & Equipment: $750 This account provides for the rent and lease of machinery and equipment Rents and Leases Infrastructure: $2,561,000 This account provides for the lease of Berth IV. The annual lease payment includes a fixed amount of $1.8 million plus a variable amount if the number of passengers arriving by cruise ship exceeds 820, Telecommunications: $24,146 This account provides for telecommunication services. Included are charges for wired and wireless telecommunications services, cell phones, Internet, long distance and data streaming for security cameras Electric, Water, Sewer & Solid Waste: $206,531 This account provides for electric, water, sewer and solid waste utility services Furniture and Fixtures: $3,000 This account provides for acquisition of furniture and fixtures. Included are desks, chairs, tables, workstations, file cabinets, storage cabinets and building fixtures Machinery and Equipment: $2,000 This account provides for the acquisition of machinery and equipment usually composed of a complex combination of parts. Included are office equipment and operating equipment required to provide services or maintain capital assets Computers, Printers and Copiers: $2,000 This account provides for the acquisition of computers, printers and copiers Software: $1,500 This account provides for acquisition of software systems and upgrades not covered by maintenance agreements Interdepartmental Charges Administrative: $33,310 This account provides for administrative and management services provided by the departments of the City Council, City Clerk, City Attorney and the administrative office of the City Manager Interdepartmental Charges Human Resources: $12,510 This account provides for human resource services provided by the Human Resources Division Interdepartmental Charges Finance: $61,080 This account provides for financial, accounting, payroll, accounts payable, billing, customer service and budgeting services provided by the Finance Department Interdepartmental Charges Information Technology: $29,300 This account provides for information technology services provided by the Information Technology Department InterdepartmentalCharges Engineering: $34,000 This account provides for engineering services provided by the Public Works Department Engineering Division. Y - 9

325 Port Operations Division Interdepartmental Charges Insurance: $167,300 This account provides for risk management services and claims Interdepartmental Charges Garage: $3,500 This account provides for fleet maintenance services provided by the Public Works Department Garage Division Debt Service Principal: $895,000 This account provides for principalon the 2006 Port Revenue Bonds Debt Service Interest: $1,333,350 This account provides for interest on the 2006 Port Revenue Bonds Transfer to Port R & R Fund: $522,000 This accounts for the funding of the Port Repair and Replacement Fund pursuant to the terms of the City s bond covenants for the 2006 Port Revenue Bonds and the Berth IV lease agreement between the City and Ketchikan Dock Company Payments in Lieu of Taxes: $485,000 This account provides for payments in lieu of taxes in the amount of $319,000 assessed against the Port by the City of Ketchikan and $166,000 in taxes assessed against Berth IV by the City and Ketchikan Gateway Borough. Berth IV is privately owned and is subject to both City and Borough property taxes. Y - 10

326 Port Capital Budget Budget Adopted/2017 Major Capital Projects Actual Adopted Amended Estimate Budget Incr(Decr) % Vehicles and Moving Equipment 17,000 17,000 New Infrastructure and Plant 1,151,652 2,022,532 2,022, ,867 4,696,432 2,673, % Total Major Capital Outlay 1,151,652 2,022,532 2,022, ,867 4,713,432 2,690, % 2017 Capital Improvement Projects Funding Sources Project # Project Port Fund Grants Port Repair and Replacement Fund Total Vehicles and Moving Equipment 3/4 Ton Work Truck Replacement 17,000 17,000 Total Vehicles and Moving Equipment 17,000 17, Infrastructure and Plant Berths I&II Replacement Phase IVa 1,499,601 1,499,601 Berth III Drydock Barge 1,000,000 1,000,000 Berth III Dolphin Modificactions 2,150,000 2,150,000 Benches, Trash Receptacles and Planters 35,000 35,000 Security Camera Upgrades 6,050 6,050 Planning & Design of Port Improvements 5,781 5,781 Total Infrastructure and Plant 3,196,831 1,499,601 4,696,432 Total 2017 Capital Budget 3,213,831 1,499,601 4,713,432 Expenditures by Type Expenditures by Funding Source 32% 100% Infrastructure and Plant 68% Port Fund Grants Y - 11

327 Risk Management Risk management covers the insurance program developed to protect the City from the risk of incurring a substantial financial loss due to damage to its property and equipment and claims arising from third parties for damages to their property or personal injury. Risk management also includes a workers compensation insurance program to protect the City employees in the event that they are injured while performing their duties. The insurance programs are accounted for in the Self Insurance Fund. Each department of the City is assessed an interdepartmental charge that is based on the same method used by the insurance company to develop the premiums charged to the City. Liability insurance is based on the department s personnel costs and property insurance is based on the facilities and equipment used by the department. The amounts paid by the departments for property and liability are accounted for in Account No , Interdepartmental Charges Insurance. The interdepartmental charge for workers compensation insurance is based on rates developed by the National Council on Compensation Insurance (NCCI), adjusted for the City s experience modifier and other discounts offered by the insurance company. The rates developed by the NCCI vary between worker classes. For example, the City pays $6.44 per $100 of compensation to insure its firefighters and $.46 per $100 of compensation to insure its clerical workers. The amount paid by a department depends on the demographics of its work force and its total compensation. The amounts paid by the departments for workers compensation insurance are accounted for in Account No , Workers Compensation. RISK MANAGEMENT SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Contract/Purchased Services 1,255,552 1,523,000 1,523,000 1,327,810 1,532,500 9, % Total 1,255,552 1,523,000 1,523,000 1,327,810 1,532,500 9, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % Interdepartmental Charges 1,255,552 1,523,000 1,523,000 1,327,810 1,532,500 9, % Total 1,255,552 1,523,000 1,523,000 1,327,810 1,532,500 9, % OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. Property insurance premiums decreased by $25,610, or by 7.6%, due to an unanticipated FY2017 insurance rebate, which was partially offset by a projected 5% increase in premiums for the renewal year FY2018 that begins on July 1, Liability insurance premiums decreased by $7,690, or by 9.3%, due to an unanticipated FY2017 insurance rebate, which was partially offset by a projected 5% increase in premiums for the renewal year FY2018 that begins on July 1, Workers compensation premiums increased by $46,120, or by 6.8%, because of rising employee compensation and workers compensation rates. Z - 1

328 Risk Management OPERATING BUDGET DETAIL Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Contract/Purchased Services Property Insurance Premiums 307, , , , ,390 (25,610) 7.6% Comm. Auto Insurance Premiums 46,922 60,000 60,000 46,510 56,650 (3,350) 5.6% Liability Insurance Premiums 74,944 83,000 83,000 68,840 75,310 (7,690) 9.3% Workers Compensation Premiums 631, , , , ,120 46, % Wharfage and Marine Premiums 93,912 93,000 93,000 91,670 93, % Self Insured Claims Property 40,000 40,000 15,000 43,000 3, % Self Insured Claims Auto 5,677 20,000 20,000 7,500 23,000 3, % Self Insured Claims Liability 25, , ,000 52, ,000 (6,000) 4.3% Management & Consulting Services 70,000 75,000 75,000 70,000 75, % Contract/Purchased Services 1,255,552 1,523,000 1,523,000 1,327,810 1,532,500 9, % NARRATIVE Property Insurance Premiums: $311,390 This account provides for premiums paid for property, casualty and fire insurance for the City s buildings and equipment Commercial Auto Insurance Premiums: $56,650 This account provides for premiums paid for auto insurance for the City s fleet Liability Insurance Premiums: $75,310 This account provides for premiums paid for commercial general, public officials and law enforcement and other liability insurance Workers Compensation Insurance Premiums: $721,120 This account provides for premiums paid for workers compensation insurance for all City employees Wharfage and Marine Premiums: $93,030 This account provides for premiums paid for wharfingers and marine insurance Self Insured Claims Property: $43,000 This account provides for property claims not covered by insurance. Included are deductibles and self insured claims Self Insured Claims Auto: $23,000 This account provides for auto claims not covered by insurance. Included are deductibles and self insured claims Self Insured Claims Liability: $134,000 This account provides for liability claims not covered by insurance. Included are deductibles and self insured claims Management and Consulting Services: $75,000 This account provides for risk management services provided by an insurance broker. Z - 2

329 Debt Service Debt service for all tax supported general obligation bond indebtedness is paid by the GO Bond Debt Service Fund. It is from this fund that the City makes principal and interest payments on general obligation bonds and other types of loan obligations for which the City has pledged its full faith and credit. General obligation bonds issued to finance enterprise activities are accounted for in enterprise funds or special revenue funds. Revenue bonds are paid for exclusively by enterprise funds and would not be accounted for in the GO Bond Debt Service Fund. There are four revenue sources that fund the City s GO Bond Debt Service Fund. The first source is a transfer from the City s General Fund. This transfer represents a transfer of resources of the General Fund, primarily property taxes, which have been designated by the City Council for the payment of general obligation debt. The second source is a transfer of sales tax from the Hospital Sales Tax Fund. The third source is derived from the Economic Recovery Zone rebates from the federal government. The fourth source is from bond proceeds remaining in the bond construction funds. DEBT SERVICE SUMMARY Expenditures by Category Actual Adopted Amended Estimate Budget Incr(Decr) % Debt Service 3,541,495 3,549,501 3,549,501 3,549,501 3,553,543 4, % Total Expenditures 3,541,495 3,549,501 3,549,501 3,549,501 3,553,543 4, % Funding Source Actual Adopted Amended Estimate Budget Incr(Decr) % Property Taxes 539, , , , ,943 33, % Bond Proceeds 321, , , ,300 (194,300) 100.0% Contributions 162, ,000 New Hospital Sales Tax 2,548,269 2,562,750 2,562,750 2,562,750 2,570,100 7, % Economic Recovery Zone Rebate 132, , , , ,500 (4,887) 3.8% Total Funding 3,541,495 3,549,501 3,549,501 3,549,501 3,553,543 4, % OPERATING BUDGET CHANGES FOR 2017 Changes between the adopted operating budget for 2016 and the proposed operating budget for 2017 that are greater than 5% and $5,000 are discussed below. There were no significant operating budget changes for OPERATING BUDGET DETAIL Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Debt Service Debt Service Principal 1,240,000 1,265,000 1,265,000 1,265,000 1,310,000 45, % Debt Service Interest 2,284,029 2,284,501 2,284,501 2,284,501 2,243,543 (40,958) 1.8% Debt Service Fees & Other Costs 17,466 NA Debt Service 3,541,495 3,549,501 3,549,501 3,549,501 3,553,543 4, % Total Expenditures 3,541,495 3,549,501 3,549,501 3,549,501 3,553,543 4, % AA - 1

330 Debt Service Operating Expenditures Actual Adopted Amended Estimate Budget Incr(Decr) % Debt Instrument 2015 Refunding Hospital GO Bonds 794, , , , ,400 7, % 2010 Fire Station General Obligation Bonds 632, , , , ,799 (5,708) 0.9% 2012 Library General Obligation Bonds 360, , , , ,644 2, % 2014 Hospital General Obligation Bonds 1,753,700 1,753,700 1,753,700 1,753,700 1,753, % Total Debt 3,541,495 3,549,501 3,549,501 3,549,501 3,553,543 4, % 2017 Expenditures by Bond Issue 49% 10% 23% 18% 2015 Refunding Hospital GO Bonds 2010 Fire Station General Obligation Bonds 2012 Library General Obligation Bonds 2014 Hospital General Obligation Bonds NARRATIVE Debt Service Principal: $1,310,000 This account provides for principal payments required for tax supported general obligation bonds Debt Service Interest: $2,243,543 This account provides for interest payments required for tax supported general obligation bonds. AA - 2