HomeMy WebLinkAboutRes2018-007Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2018-007
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, RETROACTIVELY AMENDING THE 2017 BUDGET TO
ACCOUNT FOR ADDITIONAL SALES TAX TO THE HOSPITAL FUND
BASED ON ADDITIONAL COLLECTIONS AND CLOSING OUT
COMPLETED PROJECTS AT YEAR-END, AND APPROPRIATING
FUNDS
WHEREAS, the 2017 Operating Budget accounted for one -quarter of all sales tax
collections by the City of Seward to be transferred to the Hospital Enterprise Fund to pay
healthcare related costs, including debt service costs for the long-term care facility, the hospital
Public Employees Retirement System (PERS) liability, major repair and replacement costs,
capital costs, and operating costs associated with healthcare; and
WHEREAS, the actual sales tax receipts from the Kenai Peninsula Borough during 2017
totaled $5,099,213, requiring an additional transfer in excess of the budget, of $124,803.31 to the
Hospital Enterprise Fund, for a total annual transfer from the General Fund to the Hospital
Enterprise Fund of $1,274,803.31; and
WHEREAS, a number of grant projects have been completed at the end of 2017,
including: 1) close-out of the 2012 storm event which caused widespread electrical outages and
damages to water and sewer lines, 2) the 2013 storm event which caused wind -related damage,
flooding and landslides, and 3) the summer ALPAR litter patrol project, requiring the residual
transfer of cash between Funds to close out those grants and projects.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. The 2017 Operating Budget shall be retroactively amended to close out grants
and projects, as follows:
A. Funding in the amount of $124,803.31 is hereby appropriated from the General Fund
Transfers -Out account no. 01000-0-3710-0-19100 to the Hospital Enterprise Fund
Transfers -In account no. 19100-0-3700-0-01000.
B. Funding in the amount of $8,732.66 is hereby appropriated from the General Fund to
close out the 2012 FEMA Disaster Fund account related to a storm event causing
electrical outages and water and sewer line damages, from account 01000-0-3710-0-
70024 to account 70024-0-3700-0-01000; and
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CITY OF SEWARD, ALASKA
RESOLUTION 2018-007
C. Funding in the amount of $14,255.01 is hereby appropriated from the General Fund to
close out the 2013 FEMA Disaster Fund account related to a windstorm event
between October 27-29, 2013, from account 01000-0-3710-0-7003X to account
7003X-0-3700-01000; and
D. Funding in the amount of $11,159.11 is hereby appropriated from the General Fund to
close out the ALPAR project from account 01000-0-3710-0-30113 to account 30113-
0-3700-0-01000.
Section 2. This resolution shall be retroactive to December 31, 2017.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
22"d day of January, 2018.
THE CITY OF SEWARD, ALASKA
David Squires, May r
AYES:
Casagranda, Keil, McClure, Slater, Towsley, Horn, Squires
NOES:
None
ABSENT:
None
ABSTAIN:
None
ATTEST:
iml-'t'2
BngnJ. Ballou,
City Clerk
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Council Agenda Statement
Meeting Date: January 22, 2018
To: Honorable Mayor and Members of the City Council
Through: Jim Hunt, City Manager4r
From: Kristin Erchinger,, Finance Director OW
Agenda Item: Retroactive appropriation of additional sales tax to Healthcare Enterprise
Fund and close-out of projects at year-end
BACKG0ROUND & JUSTIFICATION.
The City of Seward sets aside a I% sales tax (currently one-fourth of all sales tax revenue) for the
purpose of supporting local healthcare. When the City first initiated a sales tax in March, 1982
(Ordinance No. 507), the Ordinance explicitly addressed the funding of healthcare in Sewar'd as a
primary purpose of the tax. The 2017 Budget anticipated the total amount of sales tax to be allocated
to healthcare at $1,150,,000. Sales tax monies are legally required to be used to cover healthcare
bond payments per bo nd covenants, and are available to repay unfunded retirement liabilities
associated with fonner Seward General Hospital employees, for facility capital costs, and for
operational needs for healthcare -related operations.
Preliminary sales tax cash receipts in 2017 were $5,099,213 with one -quarter of total sales tax cash
receipts requiring a transfer to the Hospital Enterprise Fund of $1 274,803.311, necessitating an
additional transfer of $124,803.3 1.
In addition to a retroactive adjustment for sales tax, the City has completed a number of projects
which require close-out at the end of the year.
Appropriations are needed to close out two FEMA storm events that occurred in 2012 and 2013, and
the annual ALPAR little patrol project. The 2012 storm event caused electrical outages and damage
to water and sewer lines and when FEMA completed their reconciliation of the project, the City"s
remaining share of costs for that project is $8,732.66. The 2013 storm event related to a windstorm
between October 27 and 29 2013, 1
which caused widespread flooding and some landslides, with the
City's final share of those project costs at $14,255.02. The final close-out of the ALPAR project is a
total cost of $11 � 159.11.
INTENT:
The intent of this resolution is to continue the practice of transferring 1, °4of all sales tax revenue from
the General Fund to the Hospital Enterprise Fund for healthcare -related purposes, and to close out
projects at year-end, with a retroactive adjustment to 2017.
CONSISTENCY CHECKLIST:
I - Comprehensive Plan (docut nent source here).-
2. Strategic Plan (document source here):
Other (list) -
Yes I No I N/A
91
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FISCAL NOTE:
This action will increase funding available for healthcare purposes by $124,803.31 and reduce
undesignated reserves by $34,146.79. However, the City did receive excess FEMA reimbursements
for various storm -related project worksheets, and those funds were previously transferred to the
General Fund as those storm related projects were completed.
Approved by Finance Department: M4404D 444A46t-
n
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
Seward City Council authorize the transfer of an additional $124,803.31 in sales tax revenue from
the General Fund to the Hospital Enterprise Fund, and close-out of various projects at year-end.
Resolution 2018-007
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