HomeMy WebLinkAboutRes2014-016 Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2014-016
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, RETROACTIVELY AMENDING THE 2013 BUDGET AND
APPROPRIATING AN ADDITIONAL $84,087 IN SALES TAX REVENUE
TO THE HOSPITAL ENTERPRISE FUND
WHEREAS, the 2013 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 Enterprise Fund to
pay healthcare related costs including debt service costs for the hospital and the long-term care
facilities; the hospital Public Employees Retirement System (PERS) liability; major repair and
replacement costs, and operating costs associated with healthcare; and
WHEREAS, actual sales tax receipts from the Kenai Peninsula Borough during 2013
totaled $4,544,418, requiring an additional transfer of$84,087 to the Hospital Enterprise Fund,
for a total annual transfer from the General Fund to the Hospital Enterprise Fund of$1,136,104.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. The 2013 Operating Budget shall be amended as follows: 1) increase sales
tax revenue account 101-0000-4120-0100 by $296,566 to a total of $4,544,632; and 2)
appropriate an additional $84,087 from the General Fund Transfers-Out account no. 101-0000-
3071-0801 to the Hospital Enterprise Fund Transfers-In account no. 801-0000-3070-0101.
Section 2. This resolution shall be retroactive to December 31, 2013.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 10111
day of February, 2014.
THE CITY OF SEWARD, ALASKA
an Bardarson, Mayor
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CITY OF SEWARD, ALASKA
RESOLUTION 2014-016
AYES: Keil, Casagranda, Terry, Squires, Butts, Bardarson uwi
NOES: None
ABSENT: None
ABSTAIN: None
VACANT: One
ATTEST:
Ad ArANIP .1.4- 41
Jo anna Kinne
C'ty Clerk, CMC
(City Seal)
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Council Agenda Statement
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Meeting Date: February 10, 2014 ' ►.;' ``pa
To: Honorable Mayor and Members of the City Council a sP
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Through: City Manager Jim Hunt
From: Kristin Erchinger, Finance Director Ott
Agenda Item: Appropriation of additional sales tax to Hospital Enterprise Fund
BACKGROUND &JUSTIFICATION:
The City of Seward sets aside a 1%sales tax (currently one-fourth of all sales tax revenues)for the
purpose of supporting local healthcare. 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 tax. The 2013 Budget anticipated total sales tax revenues of$4,248,066,and
the amount to be allocated for healthcare, of$1,052,071. {Note: This amount is not exactly one-
quarter of estimated sales tax revenues due to a budget amendment to revenues that failed to also
allocate one-quarter of that amount for healthcare.} These funds are used to cover bond payments,to
repay unfunded retirement liabilities associated with former Seward General Hospital employees,for
facility capital costs, and for operational shortfalls.
Preliminary sales tax cash receipts in 2013 were$4,544,418, representing an increase of$332,164
from the prior years' cash receipts. To transfer one-quarter of the additional cash receipts to the
Hospital Debt Service Fund requires an additional appropriation of$84,087.
INTENT:
The intent of this resolution is to continue the practice of transferring V4 of all sales tax revenue from
the General Fund to the Hospital Enterprise Fund for healthcare-related purposes.
CONSISTENCY CHECKLIST: Yes No N/A
1. Comprehensive Plan(document source here):
2. Strategic Plan(document source here):
3. Other(list): 2013 Budget p. 76 and p. 163. X
FISCAL NOTE:
This action has no net financial impact on the City, but will provide additional fun. g of$84,087
for healthcare purposes. Approved by Finance Department: L,
ATTORNEY REVIEW: Yes No X
RECOMMENDATION: Rtc,o l,„4—;a vl ZO t4 --0 l tto
Seward City Council authorize the transfer of an additional $84,087 in sales tax revenue from the
General Fund to the Hospital Enterprise Fund.