HomeMy WebLinkAboutRes2010-016 Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2010 -016
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING THE 2009 BUDGET TO ACCOUNT FOR
UNBUDGETED REVENUES FROM EXXON VALDEZ OIL SPILL
SETTLEMENT PROCEEDS
WHEREAS, the City of Seward received $1,622,052.36 as its share of the Exxon Valdez Oil
Spill Qualified Settlement Fund punitive damages interest proceeds which were not anticipated in the
2009 annual operating budget; and
WHEREAS, the City's total share of all recoveries to -date, net of 22.4% attorneys fees, is
$2,980,405.01; and
WHEREAS, it is necessary to modify the 2009 Budget retroactively in order to more
accurately reflect estimated annual revenues.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The amount of $1,622,052.36 is hereby accepted from the Exxon Qualified
Settlement Fund to account 101- 0000 -4630, retroactive to December 31, 2009.
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22nd
day of February, 2010.
THE CITY OF SEWARD ALASKA
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Willard E. Dunham, Mayor
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CITY OF SEWARD, ALASKA
RESOLUTION 2010 -016
AYES: Valdatta, Bardarson, Keil, Amberg, Shafer, Dunham
NOES: None
ABSENT: Smith
ABSTAIN: None
ATTEST:
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Council Agenda Statement
Meeting Date: February 22, 2010
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From: Kristin Erchinger, Finance Director /✓' u � ' �
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Through: Phillip Oates, City Manage 411:TicSr0"
Agenda Item: Supplemental Appropriation of Revenues — Exxon
Valdez Settlement Proceeds
BACKGROUND & JUSTIFICATION:
The City of Seward received a check in the amount of $1,622,052.36, representing its share ofthe Exxon
Valdez Oil Spill Qualified Settlement Fund proceeds related to punitive damages interest earnings. While
the City was expecting some level of settlement earnings, it was unclear whether we would receive the
money in 2009 or 2010, and the amount of the settlement check was not known.
Since the funds were received in 2009, the budget for 2009 should be amended to account for these
revenues which were not originally anticipated in the 2009 budget.
The City of Seward has been awarded a total of $3,448,626.34 to -date as our share of recoveries, prior to
payment of mandatory attorney fees to the settlement fund. The City has received three checks: $544,551
from CRAW Funds; $813,801.65 from Exxon Qualified Settlement Funds; and this check for $1,622,052.36
for punitive damages interest earnings, bringing the total cash receipts from the Exxon Valdez Oil Spill to
$2,980,405.01.
CONSISTENCY CHECKLIST:
Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive Plans,
Land Use Plans, Strategic Plan and City Council Rules of Procedures.
INTENT:
The intent of this action is to modify the 2009 Budget to reflect unanticipated revenues from the Exxon
Valdez Oil Spill punitive damages interest earnings.
FISCAL NOTE: These proceeds will be used to bring the City of Seward's General Fund fund balance
account into compliance with our budget policy, which requires reserves sufficient to cover three to six
months' expenditures and transfers -out in the General Fund.
Approved by Finance €, 4,14/
ATTORNEY REVIEW: no
RECOMMENDATION:
The City Council authorize a retroactive amendment to the 2009 Budget to reflect unbudgeted
receipt of Exxon Valdez Oil Spill settlement proceeds.
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