HomeMy WebLinkAboutRes2012-097 Sponsored by: ii••• CITY OF SEWARD, ALASKA
RESOLUTION 2012 -097
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING THE 2012 GENERAL FUND BUDGET FOR RAW
FISH TAX PROCEEDS, AND APPROPRIATING FUNDS
WHEREAS, the Seward City Council authorized transfer of 100% of the raw fish tax
proceeds from the General Fund to the Harbor Enterprise Fund in 2010 ($302,261.97) and 2011
($599,451.41), for the purpose of developing a revenue source to assist the harbor with
replacement of critical capital infrastructure which was nearing the end of its useful life; and
WHEREAS, the 2012 budget anticipated receiving $320,000 in raw fish tax proceeds
and transferring that amount from the General Fund to the Harbor Enterprise Fund, with actual
fish tax proceeds in 2012 amounting to $519,688.98 for a surplus of $199,688.98; and
WHEREAS, the Harbor Enterprise Fund implemented a new Capital Repair and
Replacement Fee in 2011, intended solely to fund major maintenance and repair of harbor
infrastructure, recognizing however that this revenue source alone is not sufficient to address the
Harbor's infrastructure needs; and
WHEREAS, the administration recommends allocating the $199,688.98 excess raw fish
tax proceeds in 2012 for two purposes; first, 10% of the overall raw fish tax proceeds for 2012 be
available for the purpose of salmon enhancement in Resurrection Bay to improve future fish
runs, in the amount of $51,000, with the remaining $144,688.98 available to fund general
government infrastructure, since the General Fund lacks a source of revenue to pay for a growing
list of capital repair and replacement needs.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
Section 1. General Fund raw fish tax budgeted revenues are hereby increased to
account 101- 0000 - 4350 -0130 by $199,688.98; transfers -out from the General Fund (101 -0000-
3071 -0103) to the Capital Acquisition Fund (103- 0000 - 3070 -0101) are hereby increased by
$144,688.98; and contributions to salmon enhancement in Resurrection Bay are hereby
appropriated in the amount of $51,000 to account 101 - 1191 -5790.
Section 2. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
10 day of December 2012.
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CITY OF SEWARD, ALASKA
RESOLUTION 2012 -097
THE CITY OF SEWARD, ALASKA
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David Seawar or,
AYES: Valdatta, Bardarson, Keil, Shafer, Casagranda, Terry, Seaward
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
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City Clerk
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Council Agenda Statement
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Meeting Date: December 10, 2012 •� � ►a � "'Q�
Through: James Hunt, City Manager
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From: Kristin Erchinger, Finance Director
Agenda Item: Appropriating 2012 excess shared fisheries business tax for general
government capital infrastructure and fish enhancement in Resurrection Bay
BACKGROUND & JUSTIFICATION:
The City of Seward has received the following allocations of shared fisheries business tax in the past
three years: 2010 = $302,261.97; 2011 = $599,451.41; 2012 = $519,688.98. Prior to 2010, the
entirety of these tax proceeds accrued to the benefit of the General Fund based on the State of
Alaska's established intent of the shared fisheries business tax program.
AS 29.60.450 states, in pertinent part, that a municipality may receive a fisheries business tax
allocation if the municipality demonstrates that the municipality suffered significant effects from
fisheries business activities during the year... "effect" means the result of fisheries business activities
on the municipalities, population, employment, finances, air and water quality, fish and wildlife
habitats, and ability to provide essential public services including health care, public safety,
education, transportation, marine garbage collection and disposal, solid waste disposal, utilities, and
government administration."
Beginning in 2010 however, a decision was made to allocate shared fisheries business tax proceeds
to the Harbor Enterprise Fund's Major Repair and Replacement Fund, to assist that Fund in
addressing major capital infrastructure needs. Unfortunately, due to the decline in passengers during
the period of economic recession since 2009, the harbor passenger fee revenue source has not been
sufficient to pay bonded debt on Harbor debt. Therefore, the shared fisheries business tax proceeds
have been used both to help the Harbor cover the debt payment shortfall, as well as contributing to
major repair and replacement funding.
The General Fund is in a position similar to the Harbor Enterprise Fund, with no identified source of
funding to address major repairs and replacement of existing infrastructure such as roads, sidewalks,
fire hall repairs, City Hall repairs, parks and recreation warehouse, bike path erosion, etc. In 2012,
actual tax proceeds totaled $519,688.98 which is $199,688.98 higher than anticipated in the 2012
budget. Therefore, the administration is recommending that the surplus shared fisheries business tax
proceeds be used for two purposes: 1) utilize 10% of the tax proceeds ($51,000) for salmon
enhancement in Resurrection Bay; and 2) the remaining $144,688.98 to the Capital Acquisition Fund
to address capital repair and replacement needs identified in the General Fund capital budget.
INTENT:
To allocate excess shared fisheries business tax proceeds to salmon enhancement and general
government capital infrastructure needs. The exact use of the salmon enhancement proceeds has yet
to be determined, and these funds will be reserved until the City Council provides specific direction
as to the specific use of these funds. The capital budget funding will not be appropriated for a
specific purpose until the City Council directs the use of those funds.
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CONSISTENCY CHECKLIST: Yes No N/A
1. Comprehensive Plan (document source here): X
2. Strategic Plan (document source here): X
3. Other (list): X
ATTORNEY REVIEW: X Yes No
FISCAL NOTE:
This resolution amends the 2012 budget. It has no net impact on the General Fund since funding will
be split between salmon enhancement efforts in Resurrection Bay, and the Capital Acquisition Fund.
Finance Department: �� �[iLG��•
RECOMMENDATION:
City Council approve Resolution 2012- authorizing an increase in the budgeted revenues for shared
fisheries business tax, and allocation of those revenues for salmon enhancement efforts and general
government infrastructure needs.
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