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HomeMy WebLinkAboutRes2017-019Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2017-019 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE 2017 BUDGET TO REFLECT MID -CYCLE BUDGET ADJUSTMENTS, AND APPROPRIATING FUNDS WHEREAS, the 2016/2017 Biennial Budget was passed in November 2015, reflecting the budget period from January 1, 2016 through December 31, 2017; and WHEREAS, budget adjustments are made at various points during the year and this additional amendment reflects a mid -cycle budget adjustment to reflect budget amendments based on updated information since the passage of the 2017 Budget in 2015, as well as new projects and priorities impacting the City in 2017; and WHEREAS, this resolution adopts specific changes to the General Fund and enterprise funds, with specific changes reflected on the schedule and narrative attached hereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY -OF SEWARD, ALASKA, that: Section 1. The General Fund 2017 Budget is hereby amended and funds are hereby appropriated, according to the specific modifications included on the attached schedule, as follows: 1) Revenues are increased by $605,000; 2) Expenditures are increased by $555,967 with $33,500 being one-time expenditures; and 3) Transfers -out increase by $15,000. Section 2. The Harbor Enterprise Fund 2017 Budget is hereby amended and funds are hereby appropriated, according to the specific modifications included on the attached spreadsheet, as follows: 1) Revenues remain unchanged; and 2) Expenses are decreased by $67,074. Section 3. The Electric Enterprise Fund 2017 Budget is hereby amended and funds are hereby appropriated, according to the specific modifications included on the attached spreadsheet, as follows: 1) There are no -changes to revenues or transfers; and 2) .Expenses are increased by $163,599, with $207,000 being one-time costs. Section 4. The Water Enterprise Fund 2017 Budget is hereby amended and funds are hereby appropriated, according to the specific modifications included on the attached spreadsheet, as follows: 1) There are no changes to revenues or transfers; and 2) Expenses are increased by $4,400. Section 5. The Wastewater Enterprise Fund 2017 Budget is hereby amended and funds are hereby appropriated, according to the specific modifications included on the attached spreadsheet, as follows: 1) There are no changes to revenues or transfers; and 2) Expenses are decreased by $1,596. CITY OF SEWARD, ALASKA RESOLUTION 2017-019 1 Section 6. The Hospital Enterprise Fund 2017 Budget is hereby amended and funds are hereby appropriated, according to the specific modifications included on the attached spreadsheet, as follows: 1) There are no changes to revenues or transfers; and 2) Expenses are decreased by $36,128, due to the payoff of the Seward General Hospital PERS loan to the Electric MRRF in 2016. Section 7. The Seward Mountain Haven Enterprise Fund 2017 Budget is hereby amended and funds are hereby appropriated, according to the specific modification included on the attached spreadsheet, as follows: 1) There are no changes to budgeted revenues or transfers; and 2) Expenses are decreased by $338,707 related to the refunding of 2008 bonds and the defeasance of $3 million of bond principal in 2016. Section 8. The City Council hereby approves the parks maintenance technician full-time year-round position to become a summer seasonal position and the campground coordinator summer seasonal position to become a full-time year-round position with benefits, in order to provide more consistent training and supervision of the growing campground operations in the summer, at an anticipated budget savings of $2,471. Section 9. The electric department is hereby authorized to hire a replacement operations supervisor position six months prior to the stated retirement date of the current employee in that position, in order to facilitate adequate transition planning for a key position with significant knowledge of the City's electrical infrastructure and system configuration. Section 10. The City Council hereby approves a $5 per hour increase in the pay scale for all patrol officers, investigator, lieutenant and sergeant positions in the police department, in order to attract and retain qualified police officers and to reduce the impact of staff turnover associated with external competition from police departments in other Alaskan cities. Section 11. This resolution shall take effect immediately upon its adoption, and the budget shall be amended effective January 1, 2017. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 281n day of March, 2017. THE CITY OF SEWARD ALASKA Jean Bardarson, Mayor CITY OF SEWARD, ALASKA RESOLUTION 2017 019 AYES: Casagranda, Keil, Squires, McClure, Altermatt, Slater, Bardarson NOES: None ABSENT: None ABSTAIN: None ATTEST: II Jph,Ana Ki Qytlerk (City Seal) Obg,fl Aliktpr er ®F rj 6 •� V' 10 Bs•. 1 1 CITY OF SEWARD 2017 MID -CYCLE BUDGET ADJUSTMENTS March 28, 2017 Summary of Impacts by Fund: General Fund - positive impact of $ 34,033.00 Harbor Fund - positive impact of $ 67,074.00 Electric Fund - negative impact of $ (163,599.00) Water Fund - negative impact of $ (4,400.00) Sewer Fund - positive impact of $ 1,596.00 Hospital Fund - positive impact of $ 36,128.00 Seward Mountain Haven Fund - positive impact of $ 338,707.00 Positive Negative Budget Budget Account Impact Impact GENERAL FUND: Increase sales tax revenue 01000-0000-4000 a $ 300,000.00 Increase property tax revenue 01000-0000-4010 b $ 230,000.00 Reduce fish tax revenue 01000-0000-4206 c $ (100,000.00) Increase camping revenue 01000-1410-4350 d $ 75,000.00 RV dump costs transfer to Sewer 01000-1411-7015 e $ (15,000.00) Health insurance cost increase 01000-XXXX-6202 f $ (73,300.00) Police $5/hr. wage increase; Officers only 01000-1210-6000 g $ (118,283.00) Road bond debt service principal 01000-1900-8300 h $ (137,504.00) Road bond debt service interest 01000-1900-8012 h $ (92,895.00) Campground and Parks staffing change 01000-1410-6000 i $ 2,471.00 Increase ASLC credit toward utility bill 01000-0000-3710-15000 j $ (2,956.00) One-time costs: Cemetery expansion; current section full 01000-1412-7009 k $ (25,000.00) City Clerk document shredding 01000-1113-7009 1 $ (2,500.00) Accufund on -site new staff training 01000-1140-7009 m $ (6,000.00) $ 607,471.00 $ (573,438.00) HARBOR FUND: Health insurance cost increase 11000-XXXX-6202 f $ (12,000.00) Harbor bond refunding - principal savings 11000-2090-8300 n $ 21,187.00 Harbor bond refunding - interest savings 11000-2090-8012 n $ 57,887.00 $ 79,074.00 $ (12,000.00) ELECTRIC FUND: Health insurance cost increase 15000-XXXX-6202 f $ (4,400.00) Electric bond refunding - principal increase 15000-3090-8300 n $ (15,000.00) Electric bond refunding - interest savings 15000-3090-8012 n $ 62,801.00 One-time costs: Replace operators 17-year old truck 15000-3000-8103 0 $ (45,000.00) NorthStar mass meter exchange contract p $ (25,000.00) NorthStar utilization review contract p $ (15,000.00) ITRON meter reading device configure & assist p $ (8,000.00) Position overlap 6-mos due to Operations Supery 15000-3001-6XXX q $ (54,000.00) Vegetative clearing of transmission line r $ (60,000.00) $ 62,801.00 $ (226.400.00) WATER FUND: Health insurance cost increase SEWER FUND: Health insurance cost increase Sewer loan adjustment - principal savings Sewer loan adjustment - interest savings HOSPITAL FUND: Hospital loan payoff - principal savings Hospital loan payoff - interest savings SEWARD MOUNTAIN HAVEN FUND: SMH bond refunding - interest savings 17000-4500-6202 f $ (4,400.00) 18000-4500-6202 f $ (1,200.00) 18000-4590-8300 n $ 2,274.00 18000-4590-8012 n $ 522.00 $ 2,796.00 $ (1,200.00) 19100-0000-8300 n $ 21,658.00 19100-0000-8012 n $ 14,470.00 $ 36,128.00 19200-0000-8012 n $ 338,707.00 Council Agenda Statement Meeting Date: March 28, 2016 To: Honorable Mayor and Members of the City Council Through: Jim Hunt, City Manage From: Kristin Erchinger, Finance Director ,agenda Item: 2017 Mid -Cycle Budget Adjustments BACKGROUND & JUSTIFICATION: The 2016/2017 Biennial Budget which covers the period January 1, 2016 through December 31, 2017 was passed in November 2015. Periodically, adjustments are made to the budget as new data becomes available regarding expected revenues and/or changing priorities and projects. The specific requested budget adjustments are listed on the attached spreadsheet and described more fully below: Sales tax revenues came in higher than budgeted in 2016 by approximately $430,000, and the recommended increase in the 2017 budget is $300,000, bringing the 2017 Budget to $105,000 lower than 2016 actuals. Property tax revenues reflect an increase in revenues of $230,000 as approved by the voters in an election in October 2016, for the purpose of funding road improvement bonds in an amount not to exceed $3 million. Offsetting these revenues is an increase in principal and interest on road bonds. A resolution to increase the mill rate will come before the Council in April. Fish tax revenues are reduced $100,000 to reflect the significant decline in fish landings over the past year, in order to more conservatively estimate raw fish tax. The police department is experiencing challenges associated with retention of trained patrol officers due to hiring practices in other cities which offer signing bonuses to trained officers to relocate, and nearby cities offering approximately $10 more per hour starting pay. To attract and retain qualified patrol officers, the administration is requesting Council approval of a $5 per hour increase for all patrol officers, including the investigator, sergeant and lieutenant positions. This will not impact dispatch, DMV, jail or police chief positions. The total added cost is $118,283, but is expected to reduce turnover, especially of newly -trained employees which cost the City significant time and resources to prepare and train for patrol, as well as to retain the quality patrol officers currently employed by the City. Health insurance costs rose higher than anticipated in the budget, resulting in an increase in the General Fund of $73,300, the Harbor Fund of $12,000, the Electric Fund of $4,400, the Water Fund of $4,400, and the Sewer Fund of $1,200. Camping revenues came in higher than budget by $135,00 in 2016 and this conservative budget adjustment request of$75,000 reflects the fact that 2016 saw record -high visitor numbers. A portion of these increased revenues ($25,000) is requested to go toward expanding available cemetery sites and providing road access to those sites, to address capacity issues in the current public cemetery. Utility costs in the campgrounds are budgeted to increase $15,000 reflecting the pass -through of sewer dump station costs to the Sewer Fund, rather than remaining in the General Fund as originally budgeted. The current full-time year-round parks maintenance position is slated to become a part- time position and the part-time campground coordinator position will become a fall -time position, in order to alleviate the challenges associated with having to re-train a new person each summer to supervise the work of all the seasonal employees in the campgrounds. The pay for the campground coordinator is lower than the parks maintenance position, and is expected to save $2,471 annually. The 2017 Budget calls for $16,800 in utility subsidies to the Alaska Sealife Center from the General Fund, representing 20% of their annual payment -in -lieu -of -tax to the City. Based on their actual PILT in 2016 however, that subsidy will be higher by $2,956. The Clerk's office has requested $2,500 for a document shredding contract to address a backload of records destruction planned for the coming summer. The finance department requests $6,000 to provide on -site software training and configurations from the new accounting system software vendor. The Harbor Fund will see savings from debt refunding of $79,074; Electric, savings are $47,801; long-term care facility savings are $338,707; and the payoff of hospital debt for Seward General Hospital PERS will save $36,128 annually. The Electric Fund requests funding of $54,000 to hire a new Operations Supervisor six months in advance of the retirement of the individual in that position, to facilitate a smooth transition from a long-term employee with significant institutional knowledge of the City's electrical infrastructure. In addition, $45,000 is requested to replace a 17-year old operator's truck, and $60,000 to conduct annual vegetative clearing of the transmission and distribution lines. Funding totaling $48,000 is also requested to obtain assistance from our billing system software vendor and the handheld radio meter reading vendor to facilitate a smooth mass meter exchange of system -wide electrical meters coming in Spring. INTENT: The intent of this resolution is to amend the 2017 Budget as described in the narrative above, including to authorize a $5 per hour increase above their base pay for all patrol officers, investigator, lieutenant and sergeant in the police department, to authorize the parks maintenance technician to become a seasonal summer position rather than a year-round position with benefits and the campground coordinator position to become a year-round position with benefits, and to authorize the six-month early hiring of an operations supervisor in the electric fund to replace a long-time employee who will be retiring, in order to facilitate a smooth transition of historical knowledge of system infrastructure and configurations.. ' � JL- Yes No N/A 1. Comprehensive Plan (document source here): 2, 1 Strategic Plan (document source here): Other (list)% iX FISCAL NOTE: This action will improve the General Fund budget by $34,033; the Harbor Fund budget by $67,074; the Sewer Fund budget by $1,596; the Hospital Fund budget by $36,128; and the Seward Mountain Haven Fund budget by $338,707. It will result in a budget reduction in the Electric Fund of ($163,599) and the Water Fund of ($4,400). However, the Electric Fund is expected to end 2016 with net revenues and expenses corning in lower than budget by more than $1.5 million in savings, due to much lower than expected investment in infrastructure projects in 2016. Approved by Finance Department: ATTORNEY REVIEW: Yes No X RECOMMENDATION: Seward City Council authorize the 2017 Mid -Cycle Budget Adjustments in substantial form as attached hereto.