FY2025 Draft Budget

Fiscal Year 2025 Draft Budget

The FY2025 Draft Budget is now available for review and comment. 

A public Budget Work Session will take place on Saturday, May 4, 2024.

Basis of Budgeting

For all Governmental Funds the City prepares a modified accrual basis budget, which is the same basis utilized in preparation of the City’s Comprehensive Annual Financial Report. A modified accrual basis budget recognizes revenues when they are measurable and available. Revenues are considered available when they are collectible in the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to claims and judgments and compensated absences, are recorded on when payment is due.

For the Proprietary Funds of the City an accrual basis budget is prepared using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of cash flows. Grants and similar programs are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Budget Adoption

The City of Kenai adopts a legally binding annual budget in accordance with Kenai Municipal Code (KMC) 7.25, which provides legal standards for preparing, presenting, adopting, implementing and monitoring the budget. The City’s Fiscal Year runs from July 1st to June 30th. The City’s budget serves as a roadmap for the fiscal year’s expenditures and reflects the goals and policies of the City.

Per KMC 7.25.010(g) the adoption of a budget shall be completed by the tenth day of June annually. Finance Department staff began the preparation of the FY2024 Budget in November 2023.  By the beginning of April, a preliminary budget was submitted to Council for its consideration. A public work session was held on April 29, 2023 where staff presented the proposed budget to the Council and citizens of Kenai. The budget adoption ordinance was introduced on May 17, 2023 with a public hearing and adoption occurring on June 7, 2023.