HomeMy WebLinkAboutRes2012-013 Sponsored by: Hunt
.. CITY OF SEWARD, ALASKA
RESOLUTION 2012 -013
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING THE 2011 BUDGET AND APPROPRIATING
$24,953 IN SALES TAX REVENUE TO THE HOSPITAL DEBT SERVICE
FUND
WHEREAS, the 2011 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 healthcare related costs, including the debt service costs related to construction
of the hospital; the hospital Public Employees Retirement System (PERS) liability; debt service
costs related to construction of Seward Mountain Haven (if necessary); and to finance major
repair and replacement costs associated with healthcare; and
WHEREAS, the 2011 Operating Budget included an estimated amount of $981,632 in
sales tax revenues to be transferred from the General Fund to the Hospital Debt Service Fund,
based on estimated total sales tax cash receipts of $3,926,526; and
WHEREAS, the actual sales tax receipts from the Kenai Peninsula Borough during 2011
are expected to exceed budgeted estimates by approximately $99,810, requiring an additional
transfer of $24,953 to the Hospital Debt Service Fund, for a total annual transfer from the
General Fund to the Hospital Debt Service Fund of $1,006,584.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. The 2011 Operating Budget shall be amended as follows: 1) increase sales
tax revenue account 101- 0000 - 4120 -0100 by $99,810; and 2) appropriate an additional $24,953
from the General Fund Transfers -Out account no. 101- 0000 - 3071 -0801 to the Hospital Debt
Service Fund Transfers -In account no. 801- 0000 - 3070 -0101.
Section 2. The 2011 Operating Budget amendment shall be effective retroactive to
December 31, 2011.
Section 3. This resolution shall be effective upon passage and posting.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
13th day of February, 2012.
THE CITY OF SEWARD, ALASKA
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Aims
David Seaward, !y •
AYES: Valdatta, Keil, Shafer, Casagranda, Terry, Seaward
NOES: None
ABSENT: Bardarson
ABSTAIN: None
ATTEST:
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Jo anna Kinney
C' y Clerk, CMC
(City Seal)
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Council Agenda Statement
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Meeting Date: February 13, 2012 k { b, 4 %
Through: City Manager Jim Hunt
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From: Kristin Erchinger, Finance Director Up
Agenda Item: Appropriation of additional sales tax to Hospital Debt Service Fund
BACKGROUND & JUSTIFICATION:
The City of Seward has historically set aside a 1% sales tax (currently one -fourth of all sales tax revenues) for
the purpose of supporting healthcare. In fact, when the City first initiated a sales tax in March, 1982
(Ordinance No. 507), the Ordinance explicitly addressed the funding of healthcare in Seward, as a primary
purpose of the sales tax. The 2011 Budget anticipated total sales tax revenues of $3,926,526, with one - quarter
of that amount ($981,632) to be utilized for healthcare. The City transfers the amount for healthcare from the
General Fund to the Hospital Debt Service Fund, and it is used primarily for payment of bonded debt and to
repay a loan that paid off Seward General Hospital's public employees retirement unfunded liability.
The actual sales tax cash receipts in 2011 were $4,026,336, representing an increase of $195,583 from the
prior years' cash receipts. This amounts to an increase in revenues over budget of $99,810. To transfer one -
quarter of the additional cash receipts to the Hospital Debt Service Fund requires an additional appropriation
of $24,953.
INTENT:
The intent of this resolution is to continue the practice of transferring 1 /4 of all sales tax revenue from the
General Fund to the Hospital Debt Service Fund for
CONSISTENCY CHECKLIST: Yes No N/A
1. Comprehensive Plan (document source here):
2. Strategic Plan (document source here):
3. Other (list): 2011 Budget p. 36 and p. 76. X
FISCAL NOTE:
This action (splitting sales tax revenues between Funds) has no net financial impact on the City, although the
increased overall sales tax revenues will have a positive ' • : t on both the General Fund ( +$74,859) and the
Hospital Debt Service Fund ( +$24,953).
Approved by Finance Department: , 01,,1
ATTORNEY REVIEW: Yes X No
RECOMMENDATION:
Seward City Council authorize the transfer of an additional $24,953 in sales tax revenue from the General
Fund to the Hospital Debt Service Fund.