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HomeMy WebLinkAboutRes2014-094 Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2014-094 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE 2015 BUDGET TO REFLECT MID-CYCLE BUDGET CHANGES, AND APPROPRIATING FUNDS WHEREAS,the 2014/2015 Biennial Budget was passed in November 2013,reflecting the budget period from January 1, 2014 through December 31, 2015; and WHEREAS,this amendment is offered as a mid-cycle budget adjustment to reflect changes to the budget based on updated information,projects and priorities impacting the City in 2015; and WHEREAS, this resolution adopts specific changes to the General Fund, the Motor Pool Internal Service Fund, and most enterprise funds, with specific changes being reflected on the schedule attached hereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA, that: Section 1. The General Fund 2015 Budget is hereby amended and funds are hereby g Y Y appropriated,according to the specific modifications included on the attached schedule,as follows: 1) Revenues are decreased by $74,649; 2) Expenditures are increased by $241,100 with $108,000 being one-time expenditures; and 3) Transfers-out increase by$420,000. Section 2. The Harbor Enterprise Fund 2015 Budget is hereby amended and funds are hereby appropriated, according to the specific modifications included on the attached spreadsheet, as follows: 1) Revenues remain unchanged; and 2) Expenses are increased by the net amount of $138,273.09, including $87,500 in one-time matching funds for the design of S Launch ramp. Section 3. The Seward Marine Industrial Center 2015 Budget is hereby amended and funds are hereby appropriated, according to the specific modifications included on the attached spreadsheet, as follows: 1) Revenues are increased by $5,000; and 2) Expenses are increased by $17,300. Section 4. The Electric Enterprise Fund 2015 Budget is hereby amended and funds are hereby appropriated,according to the specific modifications included on the attached spreadsheet,as follows: 1)There are no changes to revenues or transfers;and 2)Expenses are increased by$14,300. Section 5. The Water Enterprise Fund 2015 Budget is hereby amended and funds are hereby appropriated, according to the specific modifications included on the attached spreadsheet, as y,r,,,, follows: 1)There are no changes to revenues or transfers;and 2)Expenses are increased by$1,400. CITY OF SEWARD, ALASKA RESOLUTION 2014-094 Section 6. The Wastewater Enterprise Fund 2015 Budget is hereby amended and funds are hereby appropriated,according to the specific modifications included on the attached spreadsheet,as follows: 1)There are no changes to revenues or transfers;and 2)Expenses are increased by$99,123, including new debt service associated with loans authorized by the Seward City Council for the sewage lagoons. Section 7. The Motor Pool Internal Service Fund 2015 Budget is hereby amended and funds are hereby appropriated,according to the specific modification included on the attached spreadsheet, as follows: 1) There are no changes to budgeted revenues, expenses, or transfers; and 2) Cash Inflows are hereby increased $147,012.43 to reflect a loan repayment from SMIC for 330-Ton Travelift loan. Section 8. The Capital Improvement Plan includes a number of additions as included on the attached spreadsheets,with only one appropriation reflecting a transfer-in in the amount of$420,000. Section 9. This resolution shall take effect immediately upon its adoption, and the budget shall be amended effective January 1, 2015. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 8th day of December, 2014. THE CITY OF SEWARD ALASKA _. 4 , a can Bardarson, Mayor AYES: Keil, Squires, Butts, Darling, Bardarson NOES: Casagranda ABSENT: Terry ABSTAIN: None ATTEST: J anna Kinn , CMC C. y Clerk •.• F St"?.'",, • (City Seal) b wad SEAL G ° • cit 9 • e. 'sr � y♦ Agenda Statement of sett, Meeting Date: December 8, 2014 4- To: Seward City Council It Asir."' From: Jim Hunt, City Manager Agenda Item: 2015 Mid-Cycle Budget Adjustments BACKGROUND & JUSTIFICATION The Seward City Council passed the 2014/2015 Biennial Budget in November 2013 for the period January 1,2014 through December 31,2015. Although budget amendments can be proposed at any time during the year, staff and Council routinely review the budget prior to the start of the second year of the biennial budget, and propose changes necessary to reflect known changes in conditions, programs, services, revenues, or capital projects, since the budget was originally approved. The City Council and staff met in a work session to discuss proposed amendments to the 2015 Budget, and the attached narrative reflects the amendments proposed by the administration during that work session. INTENT: To amend the 2015 Budget effective January 1, 2015, to reflect changes to revenues, expenditures and transfers between funds, as well as to update the Capital Improvement Plan. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan X 2. Strategic Plan: X 3. Other (list): Amends the 2014/2015 Biennial Budget X FISCAL NOTE: The impact of proposed budget changes on each affected Fund is reflected on the attached spreadsheet. A narrative explanation further explains each of the specific changes being proposed. Approved by Finance Department: i i2 ATTORNEY REVIEW: Yes No X RECOMMENDATION: A Council approve Resolution 201 4�, amending the 2015 Budget to reflect mid-cycle budget modifications. City of Seward Mid-Cycle Budget Appropriations by Fund See attached narrative for more detailed information. This schedule tallies increase in revenues, expenses/expenditures,transfers. General Fund: Revenues: $ (74,649.00) Reduced jail contract fee due to overestimate in prior year Expenditures: $ 45,000.00 Contract with a firm for mid-level maintenance 2,100.00 Planning&Zoning commissioner training 4,500.00 Boards &Commissions training 16,400.00 Affordable Care Act transitional reinsurance fee 3,000.00 New project manager operating costs 5,100.00 Animal control training, travel, operating 2,000.00 Finance travel/training on new software 25,000.00 Estimated added audit costs 30,000.00 Estimated added health insurance costs 133,100.00 One-time project costs: $ 48,000.00 One-time contract for"Your Clean Energy"grant opportunity 25,000.00 Nuisance abatement/Code compliance and enforcement 35,000.00 Fire department temporary summer hires $ 108,000.00 Transfers-Out: $ 420,000.00 To Capital Fund ADA sidewalks$60K; P&R warehouse$60K; DOT Roads$300K Motor Pool: Cash: $ 147,012.43 Reimbursement from SMIC for 330-Ton Travelift Loan Harbor Enterprise Fund: Expenses: $ 68,198.10 USACE debt service for breakwater construction (15,896.01) Savings on debt from refunding 2005 and 2006 Harbor bonds (5,929.00) Savings on debt from refunding 2005 and 2006 Harbor bonds 87,500.00 Matching Funds to design S Launch ramp 4,400.00 Increase health insurance 138,273.09 CIP: Add projects to CIP; no appropriations at this time; see attached narrative. SMIC Enterprise Fund: Revenue: $ 5,000.00 Added for SMIC washdown pad Expenses: $ 17,000.00 Crane rental for installation of new travelift 300.00 Increase health insurance 17,300.00 CIP: Revise dates for CIP; no appropriations at this time; see attached narrative. Electric Enterprise Fund: Expenses: $ 10,000.00 Increase utility/heat costs for City Hall annex 4,300.00 Increase health insurance $ 14,300.00 Water Enterprise Fund: Expenses: 1,400.00 Increase health insurance $ 1,400.00 Wastewater Enterprise Fund: Expenses: 1,000.00 Increase health insurance 74,053.00 Increase principal for debt (see attached) 24,070.00 Increase interest for debt(see attached) 99,123.00 CIP: $ 420,000.00 Transfer-In from General Fund CITY OF SEWARD 2015 MID-CYCLE BUDGET ADJUSTMENTS GENERAL FUND: Revenues: • Jail Contract—reduce 2015 budget from $745,470 to$670,821 to match new five-year contract. The Jail Contract has increased each year from $491,341 in 2011, $567,395 in 2012,$655,464 in 2013 and $670,821 thereafter Expenditures: • Public building maintenance contract: Add$45,000. RFP around Jan. 1 for mid-level maintenance, i.e. bigger than janitorial but smaller than specialized technical work • Planning Department—Planning and Zoning Commission training:Add$2,100 for commissioners to attend the Alaska Planning Conference in Anchorage, registration and travel • Boards and Commissions training:Add $4,500 in attorney and staff time for training sessions on Open Meetings Act, Roberts Rules of Order, roles and responsibilities of persons acting in quasi-judicial capacities, ex parte contact, etc. • General Services—Affordable Care Act requires transitional reinsurance fee of$16,400. One-time contract of$48,000 for"Your Clean Energy"grant opportunity allows City to hire a firm to assist the City in grant readiness to establish heating district in pursuit of clean energy grant funding. • Allocation of identifiable operating costs of City Hall Annex splits 50% Electric Utility and 50%General Fund. No change to General Fund overall budget of$15,600. Increase in Electric budget of$10,000. Y-T-D Actual costs through September, 2014 approx. $42K,with $15K being initial facility remodel costs. • Engineering -- Project Manager wages beginning 09/22/14 allocated to SMIC rock project within SOA grant. 2014 funds budgeted before 9/22/14 are unexpended. 2015 will see those costs mostly going to the Lowell Point Sewage Lagoon, SMIC breakwater project, and Electrical Warehouse project. Propose at this point a 33/33/33 split. Will result in salary/benefit savings in General Fund, Water Fund and Wastewater Fund, but we will not amend the budget, but will expect a cost savings compared to budget. Increase operating costs for project manager auto fuel, office supplies, software ($3,000). Will move PM costs out of General Fund Streets and into General Fund Engineering to segregate; no net impact to General Fund budget. • Animal Control to address training(add $600), travel (add $2,500)and operating costs(add$2,000) • Community Development: add $25,000 Nuisance Abatement/Code compliance and enforcement • Finance—add $2,000 added cost for travel/training for new Accufund system • Mayor&Council—add $25,000 estimated added audit costs • Fire—$35,000 to hire two temporary summer employees to get caught up on department projects(testing fire hose,testing breathing apparatus tanks, etc.) • Library—utilize salary savings from retirement to increase part-time hours; no net added cost • Transfer to Capital Acquisition Fund $420,000 to cover ADA sidewalk repairs($60K), P&R warehouse stabilization -engineering ($60K), DOT roads project matching funds(300K) Miscellaneous: o 2015 Budget already includes 3%estimated increase for Health Insurance. Increase health insurance$30,000 to account for estimated 5% increase rather than 3%originally budgeted. o 2015 Budget already includes$5,000 estimated revenue for RV Dump Station fees. No change. o No increase in budget but moving some personnel costs between the public works and engineering departments (project manager)and between the city manager and finance departments(personnel). o Will create sub-codes to segregate individual boards and commissions (P&Z, PACAB, Historic Preservation); no impact on budget MOTOR POOL: • $147,012.43 reimbursement from SMIC for 330-Ton Travelift Loan (applies to receivable, so no impact on revenue or expense; loan at 0% interest) HARBOR ENTERPRISE FUND: Expenses: • $68,198.10 new annual debt service ($25,605.01 principal and $42,593.09 interest) to repay USACE for breakwater construction $1.201,196 at 3.875% over 30 years, representing second 10% City contribution. Seeking federal funding to forego the need to repay this loan • Minus$5,102.40 debt service interest savings on 2005 Harbor Bond refunding • Minus$10,793.61 debt service interest savings on 2006 Harbor Bond refunding • Minus$5,929.00 eliminating amortization of bond issue costs • $87,500 Matching funds for design of replacement S Launch Ramp(and update CIP). • Increase health insurance budget estimate from 3%to 5%; impact$4,400. CIP: • Add to Harbor CIP—New sewage pump-out grant($39,576 project cost is$9,894 Harbor funded--already appropriated --and$29,682 grant) • Add to Harbor CIP—City Matching funds required of$2.684 Million for B,C,S Float replacement SMIC ENTERPRISE FUND: Revenues: • $5,000 Revenue for SMIC washdown pad (conservative estimate) Expenses: • $17,000(bid price)for crane rental for installation of new travelift • Budget already amended via RES 2014-061 for$147,012.43 debt service payment for new 330-Ton Travelift loan. No change. • Increase health insurance budget estimate from 3%to 5%; impact$300. CIP: • Revise date in SMIC CIP for 330-Ton Travelift for 2015 • May propose future revision to SMIC CIP for breakwater, dredging, new docks cost, as project design proceeds. ELECTRIC ENTERPRISE FUND: Expenses: • Increase Utility costs in administration, for City Hall annex cost share, $10,000. • Increase health insurance budget estimate from 3%to 5%; impact$4,300. WATER ENTERPRISE FUND: Expenses: • Increase health insurance budget estimate from 3%to 5%; impact$1,400. WASTEWATER ENTERPRISE FUND: Expenses: • $1.2M DEC loan for LP sludge removal -$52,715 principal • $1.2M DEC loan for LP sludge removal -$16,958 interest • $490K DEC loan for SMIC/Sludge removal -$21,338 principal • $490K DEC loan for SMIC/Sludge removal-$7,112 interest • Increase health insurance budget estimate from 3%to 5%; impact$1,000 CAPITAL ACQUISITION FUND: • Public Works—Add $60,000 for sidewalk/ADA access repairs and upgrades • P&R Warehouse—Add stabilization and engineering-$60,000 • DOT roads project matching funds—Add $300,000 • Carry forward$95,000 for City Hall carpet previously included in CIP slated for 2014, to 2015 (see p. 179 CIP)