HomeMy WebLinkAboutRes2006-007
Sponsored by: Corbridge
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CITY OF SEWARD, ALASKA
RESOLUTION 2006-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING THE 2005 BUDGET AND APPROPRIATING
$96,305.59 IN SALES TAX REVENUES TO THE HOSPITAL DEBT
SERVICE FUND
WHEREAS, the 2005 Operating Budget anticipated that one cent of every four cents in
sales tax collected by the City of Seward would be transferred to the Hospital Debt Service Fund
to be used to pay: the debt service costs related to construction of the hospital facility; the
hospital Public Employees Retirement System (PERS) liability; and to finance major repair and
replacement costs associated with healthcare; and
WHEREAS, the 2005 Operating Budget included an estimated amount of $747,500 in
sales tax revenues to be transferred from the General Fund to the Hospital Debt Service Fund,
based on initial estimated total sales tax cash receipts of $2,990,000 (final sales tax projections
for 2005 were $3,060,000); and
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WHEREAS, the actual sales tax receipts from the Kenai Peninsula Borough during 2005
are expected to exceed budgeted estimates by approximately $315,222, requiring an additional
transfer of $96,305.59 to the Hospital Debt Service Fund, for a total estimated annual transfer
from the General Fund to the Hospital Debt Service Fund of$843,805.59.
NOW THEREFORE, BE IT RESOL YED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. The 2005 Operating Budget shall be amended by appropriating an additional
$96,305.59 from the General Fund Transfers-Out account no. 101-0000-3070-0801 to the
Hospital Debt Service Fund Transfers-In account no. 801-0000-3070-0101.
Section 2. This resolution shall be retroactive to December 31, 2005.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 9th
day of January, 2006.
THE CITY OF SEWARD, ALASKA
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Vanta Shafer, Mayor
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CITY OF SEWARD, ALASKA
RESOLUTION 2006-07
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AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Dunham, Valdatta, Lorenz, Schafer, Thomas, Shafer
None
None
None
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J eaq Lewis (
CitY Clerk, C
(City Seal)
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COUNCIL AGENDA STATEMENT
Meeting Date: January 9, 2006
Through: Clark Corbridge, City Manager
From: Kristin Erchinger, Finance Director
Agenda Item: 2005 Budget Amendment appropriating additional sales tax
revenues to the Hospital Debt Service Fund
BACKGROUND & JUSTIFICATION:
The City Council has historically agreed to allocate one cent of every four cents in
sales tax toward hospital-related costs to pay debt service costs related to construction
of the new hospital facility, retire the hospital Public Employee’s Retirement System
(PERS) liability, and to provide for major repairs and replacement for healthcare
facilities. The 2005 Budget included an estimated amount of $747,500 to be
transferred from the General Fund to the Hospital Debt Service Fund, based on initial
estimated sales tax receipts of $2,990,000.
The actual sales tax collected from the Kenai Peninsula Borough during 2005 is
expected to exceed budgeted projections by approximately $315,222, necessitating a
budget amendment. Based on the total sales tax collected, an additional $96,305.59
must be transferred from the General Fund to the Hospital Debt Service Fund, bringing
the total transfer for 2005 to $843,805.59. This amount will offset the total 2005 debt
service payments on the hospital bond of $705,750, leaving a surplus of $138,055.59
that can be applied to the outstanding Public Employees Retirement System debt
associated with Seward General Hospital employee pension obligation costs.
CONSISTENCY CHECKLIST: Yes No
1. Comprehensive Plan
2. Strategic Plan
3. Other
4. Not applicable X
FISCAL NOTE:
Additional unbudgeted sales tax revenues will be utilized to facilitate this transfer, so it
does not adversely impact the General Fund’s fund balance.
Approved by Finance Department
RECOMMENDATION:
Council approve Resolution 2006-____ amending the 2005 Operating Budget by
appropriating an additional $96,305.59 from the General Fund Transfers-Out account
to the Hospital Debt Service Fund Transfers-In account, effective December 31, 2005.