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HomeMy WebLinkAboutRes2017-0591 CITY OF SEWARD, ALASKA Sponsored by: Hunt RESOLUTION 2017-059 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING THE SMIC ENTERPRISE FUND BIENNIAL BUDGET FOR CALENDAR YEARS 2018 AND 2019 WHEREAS, the city manager has submitted to the City Council a proposed biennial budget for the City of Seward for Calendar Years 2018 and 2019; and WHEREAS, the preliminary biennial budget was reviewed by the City Council in budget work sessions on September 27, October 2, and October 3, 2017, which were televised to the public; and WHEREAS, a public hearing is scheduled on the proposed budget for October 23, 2017, and a second public hearing and final adoption is scheduled for November 27, 2017; and WHEREAS, the 2018 budget includes a rate increase of 2.1 % to all rates which are adjusted according to the five-year average CPI within the Seward Marine Industrial Center (SMIC) Tariff, and a rate increase of 1.6% for 2019 for those same rates, representing the five- year average CPI. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The SMIC Enterprise Fund budget for Calendar Years 2018 and 2019 which is attached hereto and made a part hereof by reference and which contains estimated revenues and expenses for the period January 1, 2018 - December 31, 2019, is HEREBY ADOPTED, and the necessary funds are hereby appropriated. Section 2. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 271h day of November, 2017. THE CITY OF SEWARD, ALASKA David Squires, Ma r CITY OF SEWARD, ALASKA RESOLUTION 2017-059 AYES: Casagranda, Keil, McClure, Slater, Towsley, Horn, Squires NOES: None ABSENT: None ABSTAIN: None ATTEST: A'/ CA.-7z,�W4 __-- J. toukmw City Clerk (City Seal) ,••160 o......Edvl *., �• V� foaPo�,;T., �•e SEAL® lo s ••' 1 1 1 SMIC ENTERPRISE FUND Budgeted Statement of Revenues and Expenses and Change in Net Position For 20I8 and 2019 Operating revenue: Moorage Wharfage Boat Lift Fees Storage Power Sales Rents and Leases Miscellaneous Total operating revenue: Operating expense before depreciation: Salaries & Benefits Purchased Services Power for Resale Supplies and Maintenance General and Administrative Total operating expense: Operating income before depreciation Depreciation Operating Ions Non -operating revenue (expense) Investment income and other Interest expense Total non -operating revenue (expense) Income (loss) before contributions & transfers Transfers in Capital contributions Transfers out Change in net position Beginning net position Ending net position 20I6 20I7 2018 20I9 Actual ° Budget Budget Budget 23,573 3,000 I3,000 11,000 10,996 6,252 6,250 6,250 163,286 I40,004 I40,94I 140,000 96,362 114,996 115,000 115,000 145,029 40,956 59,000 41,000 16I,274 I52,700 I79,745 179,745 8,289 I2,192 I07,208 110,208 $608,809 $470,I00 $621,I44 $603,203 101,548 75,444 96,459 97,405 I04,360 80,424 91,026 80,400 I53,550 29,I24 49,000 28,500 24,351 53,496 51,500 57500 203,233 203,952 228,749 227,398 $587,042 $442,W $5I6,734 $49I,203 2I,767 27,660 I04,4I0 I12,OW 755,466 I,I40,264 I,018,409 L0I7,898 (733,699) (1,112,604) (9I3,999) (905,898) 0 0 0 0 0 0 0 0 0 0 0 0 (733,699) (I,1I2,604) (913,999) (905,898) 165,750 I72,033 322,439 102,567 0 0 0 0 (I24,919) (10I,746) (117,269) (I15,909) ($692,868) ($1,042,317) ($708A29) ($9I9,240) $37,205,235 $36,SI2,367 $35,470,050 $34,761,221 * Ties to annual Comprehensive Annual Financial Report $36,5I2,367 * $35,470,050 $34,761,221 $33,84I,98I Of total depreciation expense, the following amounts were attributable to capital assets funded with capital contributions: (a) $50I,230 or 66%; (b) $1,017,528 or 89%; (c ) $767,846 or 75%; (d) $505,980 or 50% SMIC ENTERPRISE FUND Budgeted Statement of Cash Flow For 2018 and 2019 2017 20I8 2019 Budget Budget Budget Beginning Cash Balance at I/I/17 #: -$211,515 Cash is provided by (used for): Change in Net Position (1,042,317) (708,829) (9I9,240) Other Uses - Debt Principal -98,004 -98,008 -98,008 Add expense items not affecting cash Depreciation I,I40,264 1,0I8,409 1,017,898 Net increase (decrease) in cash (57) 211,572 649 Estimated ending cash balance: -$211,572 $0 $649 * Ties to CAFR Revenues 12000 4632 Insurance Recovery 12000 5000 Land Rents & Leases 12000 5001 Land Lease Credits 12000 5101 Moorage 12000 5102 Wharfage 12000 6103 Boat Lift Fees 12000 5104 Storage Fees 12000 5106 SMIC Power Safes 12000 5109 Washdown Pad Fees 12000 6153 Fuel Pumping Fee 12000 5800 Labor & Services 12000 5901 EF Investment Interest 12000 5905 EF Penalties and Interest 12000 5940 Amortization of Contributions4n-Aid Total Revenues City of Seward SMIC Enterprise Fund 2018/2019 Biennial Operating Budget Revenue Deta(I by Line Item 2015 2016 2017 2018 2017-18 2019 2018-19 Actual Actual Budget Budget % Chg Budget % Ch 522 0 0 0 0.00 0 0.00 157,073 172,515 152,700 179,745 17.71 179.745 0.00 0 (11,241) 0 0 0.00 0 0.00 14,201 23,573 3,000 13,000 333.33 11,000 (16.38) 6,969 10,996 6,262 6,250 (0.03) 6,250 0.00 176,777 163,286 140,004 140,941 0.67 140,000 (0.67) 98,727 96,362 114,996 115,000 0.00 115,000 0.00 125,974 146,029 40,956 59,000 44.06 41,000 (30.51) 8,864 3,453 8,196 6,200 (36.65) 8,200 57.69 1,731 3,908 3,000 3,000 0.00 3,000 0.00 2,993 928 996 1,000 0.40 1,000 0.00 (1,582) 0 0 0 0.00 0 0.00 0 0 0 0 0.00 0 0.00 484,905 601,230 1,017,528 767,846 _ (24.54} _ 506,980 (34.10} $ 1,077,154 $ 1,110,039 $ 1,487,628 $ 1,290,982 $ (13.22) $ 1,011,175 $ (21.67) City of Seward SMIC Enterprise Fund 201812019 Biennial Operating Budget Expenditure Line Item by Fund 2015 2016 2017 2018 2017-18 2019 2018-19 cttjl Actual Budoet Budget Ch Budget ° Ch Personnel Costs: 6000 Salaries 66,905 61,308 53,784 54,584 1.49 54,607 0.04 6001Overtime 10,559 875 3,360 5,129 52.65 5,228 1.93 6100 Medicare 1,180 933 912 932 2.19 935 0.32 6102 Workers' Compensation 7,091 7,062 4,164 6,710 61.14 6,710 0.00 6201 Retirement Benefits 6,109 0 1,272 1,735 36.40 1,743 0.46 6202 Health Insurance 24,926 31,370 11,952 27,369 128.99 28,182 2.97 Total Personnel Costs: $ 116,770 $ 101,548 $ 75,444 $ 96,459 $ 27.86 $ 97,405 $ 0.98 Non -Personnel Costs: 7001 Communications 0 0 504 500 (0.79) 500 0.00 7002 Postage and Freight 999 360 5,508 5,500 (0.15) 5,500 0.00 7004Insurance 17,525 14,284 14,400 17,900 24.31 14,400 (19.55) 7006 Legal 25,100 65,300 9,996 15,000 50.06 10,000 (33,33) 7009 Contracted Services 89,000 7,221 30,012 30,000 (0.04) 30,000 0.00 7015 Utilities 14,856 14,756 15,000 17,126 14.17 15,000 (12.41) 7016 Heating Fuel 7,227 2,439 5,004 5,000 (0,08) 5,000 0.00 7100 General Power for Resale 44,178 153,550 26,628 49,000 84.02 26,000 (46.94) 7102 Power Fuel Costs 0 0 2,496 0 (100.00) 2,500 0.00 7211 Gas & Lube 6,488 2,990 9,996 8,000 (19,97) 10,000 25.00 7213 Safety Equipment 330 0 0 0 0.00 0 0.00 7215 Operating Supplies 4,672 5,856 6,000 6,000 0.00 6,500 8.33 7216 Maintenance & Repair 12,355 13,331 36,000 36,000 0.00 36,000 0.00 7217 Small Tools & Equipment 9,222 2,173 1,500 1,500 0.00 5,000 233.33 7300 Advertising 779 0 3,000 3,000 0.00 3,000 0.00 7302 Travel & Subsistence 43 0 0 0 0.00 0 0.00 7321 Harbor General Indirect Costs 52,859 55,262 51,324 65,425 27.47 61,804 (5.53) 7322 Harbor Admin Indirect Costs 35,176 57,058 56,532 64,320 13.78 65,054 1.14 7323 SMIC General Indirect Costs 128,824 111,978 136.740 1166,911 22.06 135,347 (18,91) 7324 Gen Fund Indirect Costs 88,421 90,913 93,108 96,004 3.11 97,540 1.60 7325 Harbor Internal Cost Allocation (128,824) (111,978) (136,752) (166,911) 22.05 (135,347) (18.91) 7330 P.I.L.T. 38,639 35,803 25,392 27,396 7.89 26,036 (4.96) 7331 Reclass PILT to Transfer -Out (38,639) (35,803) (25,392) (27,396) 7.89 (26,036) (4,96) 7810 Miscellaneous Expense 530 0 0 0 0.00 0 0.00 7900 Depreciation Expense 733,630 766,467 1,140,264 1,018,409 (10.69) 1,017,898 (0.05) 8103 Capital Equipment 0 0 160,600 0 (100.00) 0 0.00 8300 Debt Service Principal 147,012 98,008 98,004 98,008 0.00 98,008 0.00 Total Non -Personnel Costs: $ 1,290,402 $ 1,338,968 $ 1,765,864 $ 1,536,692 $ 1__ f 2.98) $ 1,5_ 09,704 $ (1.76) Total Expenditures $ 1,407,172 $ 1,440,516 $ 1,841,308 $ 1,633,151 $ (11.30) $ 1,607,109 $ (1.59) ■ci r N O F-� 00 n) 7 CL N v m a rr vs tD 2 n CD S fD d C m O n N m D v CITY OF SEWARD S.M.I.C. ENTERPRISE FUND Budgeted Interfund Transfers 2018 and 2019 General Fund to cover SMIC deficit General Fund: One-half of land rents and leases Payments -in -Lieu -of -Tax 2018 2019 Transfers- Transfers- Transfers- Transfers - In Out In Out 322,439 102,567 89,873 89,873 27,396 26,036 $322,439 $117,269 $102,567 $115,909 T/F-In from GF reduced $98,008 each year. SMIC will utilize one-time Project Admin grant monies to make this payment in 2018 and 2019.