HomeMy WebLinkAboutRes2008-090Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2008-090
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROPRIATING FUNDS TO COVER EXCESS COSTS
ASSOCIATED WITH WINTER SNOW REMOVAL, AND INCREASED
COSTS ASSOCIATED WITH FUEL, UTILITIES, AND HEATING FUEL
WHEREAS, the city of Seward has experienced a significant growth in costs associated with
rising costs of fuel, impacting the budget for utilities, heating fuel, and gas and tube, with the
magnitude of these cost increases being underestimated in the 2008 budget; and
WHEREAS, mid-way through the fiscal year, it is clear that some departments will be
unable to meet their budget mandate without additional resources to cover the unanticipated rise in
costs; and
WHEREAS, the total unanticipated impact to the General Fund of higher fuel and utility
costs is $103,000, in addition to the need for $50,000 for salary and benefit costs associated with
higher than normal snow removal costs; and
WHEREAS, the net impact to the enterprise funds of these higher costs is as follows: 1)
b... $42,000 higher cost to the Harbor Enterprise Fund; 2) $9,000 higher cost to the SMIC Enterprise
Fund; and 3) $19,600 lower cost to the Electric Enterprise Fund.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The 2008 Budget is amended to authorize additional appropriations as follows
(and as detailed on the attached spreadsheet): 1) $103,000 appropriation to various departments'
utility and fuel line items in the General Fund from the General Fund fund balance account no. 101-
0000-3050; 2) $50,000 appropriation to the Snow and Ice department salary and benefit line items in
the General Fund from the General Fund fund balance account no. 101-0000-3050; 3) $50,000
appropriation to various Harbor departments' utility and fuel line items, offsetting $8,000 in added
revenue for power sales; 4) $24,000 appropriation to various SMIC departments' utility and fuel line
items, offsetting $15,000 in added revenue for power sales; 5) $16,400 appropriation to various
Electric departments' utility and fuel line items, offsetting $36,000 in added revenue for power sales.
Section 2. This resolution shall take affect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 8th day of
September, 2008.
CITY OF SEWARD, ALASKA
RESOLUTION 2008-090
THE CITY OF SEWARD, ALASKA
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Clark Corbridge, Mayor
AYES: Dunham, Valdatta, Kellar, Corbridge
NOES: None
ABSENT: Bardarson, Amberg, Smith
ABSTAIN: None
ATTEST:
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ohanna Dollerhide, CMC
'Assistant City Clerk
(City Seal)
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COUNCIL AGENDA STATEMENT
Meeting Date: September 8, 2008
Through: Phillip Oates, City Manager`~~
From: Kristin Erchinger, Finance Director
RE: Budget Increases for Utilities, Heating Fuel, Gasoline
BACKGROUND & JUSTIFICATION:
Due to the magnitude of rapidly rising costs of fuel and utilities, a budget adjustment is needed to cover
the underestimated cost increases in some department line items. In particular, General Fund
departments are expected to need an additional appropriation of $103,000 to cover those costs through
the end of the current fiscal year. In addition, due to heavy snow falls in the winter of 2007, the Snow
and Ice department is in need of an increased salary and benefit appropriation of $50,000, which assumes
an average level of snowfall for the remainder of this fiscal year.
The enterprise funds require adjustments as follows: 1) Harbor Enterprise Fund requires an additional
appropriation of $50,000, which will be offset by additional revenues of $8,000; 2) SMIC requires an
additional appropriation of $24,000, which will be offset by additional revenues of $15,000; and 3) the
Electric Enterprise Fund requires an additional appropriation of $16,400, but expects to increase revenue
projections by $36,000.
CONSISTENCY CHECK: Where applicable, this agenda statement is consistent with the Seward
City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council
Rules of Procedures. Other:
FISCAL NOTE:
The additional appropriations from each fund will come from available resources in each fund, and
where possible, departments will attempt to curb spending for the remainder of the year to cover higher
costs.
RECOMMENDATION:
City Council appropriate additional funds to cover the higher than expected increase in the costs
of heating fuel, utilities, and gas and Tube.
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BUDGET APPROPRIATION FOR UTILITIES,
HEATING FUEL, GAS AND LUBE
GENERAL FUND: Budget
Increase
Police department gas and tube 6,000
Fire department heating fuel 5,000
Fire department gas and lube 2,000
Public works utilities 28,000
Public works gas and lube 40,000
City Shop gas and tube 1,000
Municipal building utilities 2,000
Municipal building heating fuel 10,000
Parks maintenance gas and tube 5,000
Library heating fuel 4,000
$ 103,000
Snow and Ice salaries & benefits $ 50,000
Total Genera[ Fund appropriation: $ 153,000
HARBOR ENTERPRISE FUND:
Harbor power sales (revenue) 8,000
Harbor float system utilities 15,000
Harbor power for resale 25,000
Harbor General heating fuel 3,500
Harbor General gas and lube 6,500
50,000
Net Harbor Enterprise Fund appropriation: $ 42,000
SMIC ENTERPRISE FUND:
SM[C power sales (revenue) 15,000
SM[C General power for resale 16,000
SMIC General heating fuel 2,000
SMIC General gas and Tube 6,000
24,000
Net SMIC Enterprise Fund appropriation: $ 9,000
ELECTRIC ENTERPRISE FUND:
Electric power sales 36,000
Substation utilities 5,000
Electric General heating fuel 4,000
SMIC General gas and tube 7,400
16,400
Net Electric Enterprise Fund revenues: $ (19,600)
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