2014 Annual Report

A NOTE FROM THE CITY MANAGER....

The City’s success in 2014 can be attributed to the leadership of the Mayor, City Council, Boards, Commissions,
Task Forces, Committees, and the hard work of the dedicated public employees. A review of the 2014 Annual Report will confirm that City government is functioning at a high level, that its fiscal policies are sound, and that Homer continues to be a place people want to live, work, and play. 2014 was another challenging but successful year for the City of Homer. The fiscal challenges on the horizon for the State of Alaska have affected municipalities, including the City of Homer. There continues to be disconnect between what residents want and what they are willing to pay for. Nevertheless, the City of Homer is fortunate to have a community that is engaging in those difficult conversations through venues such as the Park, Art, Recreation and Culture (PARC) study and a vibrant and diverse electorate. Despite the climate of fiscal uncertainty, the City government remains in a fiscally sound and stable position overall. According to FY 2014 Audit, the fund balance in the General Fund was a healthy $6,569,000 which is approximately fifty percent of the annual budget. Revenues exceeded budget projections by $686,682 (excluding PERS relief from the State) and the excess of revenues over expenditures was $521,249. 2014 was the first year of a new fee structure for the Water and Sewer Utility fund which resulted in expenses over budget projections of $197,000 (excluding PERS relief). The fund carries a significant debt load and annual debt service is approximately $1 million. This debt is repaid through a combination of sales taxes and property assessments. The Port and Harbor Enterprise Fund was healthy in 2014 and generated enough money to cover operating expenses and mandatory transfers into bond reserves ($4,197,852). As always, more funds need to be transferred to depreciation accounts. In 2014 the City finalized many capital projects that
make necessary infrastructure improvements and will stimulate the economy. Chief among them was completion of a city-wide natural gas distribution system. The City of Homer strives to be as efficient, productive, and responsive to the needs of its residents as possible. City staff are constantly looking for ways to operate more efficiently and do more with less. I am proud of the work, professionalism, and high level of service City of Homer employees provide to the public.

The City’s success in 2014 can be attributed to the leadership of the Mayor, City Council, Boards, Commissions,
Task Forces, Committees, and the hard work of the dedicated public employees. A review of the 2014 Annual Report will confirm that City government is functioning at a high level, that its fiscal policies are sound, and that Homer continues to be a place people want to live, work, and play.

Katie Koester, City Manager