HomeMy WebLinkAboutRes2012-090 Sponsored by: Hunt
CITY OF SEWARD,ALASKA
RESOLUTION 2012-090
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROPRIATING $25,000 IN ONE-TIME PROJECT
MANAGEMENT FEES TO THE CAPITAL ACQUISITION FUND FOR
CAPITAL BUDGET NEEDS
WHEREAS,the City of Seward("City")has significant capital infrastructure needs related
to general government, including: streets and sidewalks; ADA accessibility; fire hall repairs; City
Hall repairs;waterfront erosion,etc.without an identified revenue source to address those needs;and
WHEREAS,the City has a budget policy to direct one-time revenues toward capital repairs
and replacement rather than to build those revenues into the General Fund to fund routine
expenditures; and
WHEREAS, that budget policy mandates one-time revenues be allocated to the Capital
Acquisition Fund when the General Fund's fund balance level has reached six months' of
expenditures and transfers-out,but since the City has not been at that level of fund balance in more
than ten years and must address capital needs, it is recommended that this revenue be allotted for
capital purposes.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The General Fund project management fee account budget (101-0000-4410-
0410)is hereby increased from$0 to$25,000,and that amount is authorized to be transferred from
the General Fund account no. 101-0000-3071-0103 to the Capital Acquisition Fund account no. 103-
0000-3070-0101.
Section 2. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 26th day of
November,2012.
THE CITY OF SEWARD,ALASKA
David Seaward, a
CITY OF SEWARD,ALASKA
RESOLUTION 2012-090
AYES: Valdatta, Keil, Shafer,Terry, Seaward
NOES: None
ABSENT: Bardarson, Casagranda
ABSTAIN: None
ATTEST:
Johanna ey, CMC
City Clerk
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Coun cil Agenda Statement
Meeting Date: November 26, 2012 ,
Through: James Hunt, City Manager
From: Kristin Erchinger, Finance Director
Agenda Item: One-time Project Management Fees to be used for Capital Budget needs
BACKGROUND & JUSTIFICATION:
The City of Seward strives to balance its annual operating budget without the use of one-time
revenues. This practice ensures that in years when one-time revenues are not available,there is not
an adverse impact on the operating budget. It also provides an opportunity to use those one-time
revenues to assist with one-time costs, such as replacement of major infrastructure assets.
The City's budget policy related to the use of one-time revenues states:
One-time Revenue Policy: One-time revenues (such as grant administration fees, sales of
fixed assets, legal settlements, etc.)should not be utilized to fund ongoing expenditures, but
should be used to fund capital repairs and replacement. The use of one-time revenues to
fund annual budgets promotes structural budget deficits in future years. To the extent that
the General Fund fund balance has reached 6 months'of expenditures and transfers-out,
one-time revenues will be allocated annually to the Capital Acquisition Fund.
The policy states that one-time revenues will be allocated to the Capital Acquisition Fund when the
General Fund's fund balance or reserve levels are at the six-month level. However, since that has
not occurred in more than ten years,and the City's list of infrastructure needs is growing without an
identified source of revenue to assist with those needs,the administration recommends use of these
one-time revenues for capital purposes.
INTENT:
To ensure that one-time revenues are not used to cover routine expenditures, as that encourages
long-term budget instability. Also to recognize the very real need to identify revenue sources to fund
the City's growing list of deferred infrastructure needs.
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan (document source here):
1 Support development of infrastructure 3.7.1.1;Relocate and rebuild X
selected City facilities for compatibility with land use 3.7.3.2;
Implement ADA transition plan 3.7.3.3, etc.
2 Strategic Plan (document source here):Page 12, 14, 17 (public parks, X
playgrounds, downtown/SMIC, etc.
3. Other (list): X
ATTORNEY REVIEW: Yes X No
FISCAL NOTE:
This resolution amends the 2012 budgets to increase project management fee revenues and transfer
those from the General Fund to the Capital Acquisition Fund. It does not appropriate these monies
for a specific project at this time. It does not have a net impact on the General Fund's budget but
will reduce the available balance in the General Fund reserves by$25,000 since project management
fees would otherwise have been recorded in the General Fund.
Finance Department:
RECOMMENDATION:
City Council approve Resolution 2012- authorizing the transfer of these one-time project
management fees to the Capital Acquisition Fund.