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CITY OF SEWARD,ALASKA
RESOLUTION 2017-054
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, TRANSFERRING $254,544 TO THE CAPITAL ACQUISITION
FUND REPRESENTING 50% OF THE GENERAL FUND ANNUAL
SURPLUS FOR 2015 AND 2016,AND APPROPRIATING FUNDS
WHEREAS,the City of Seward maintains a budget policy which allows for designation of
50% of the annual General Fund surplus into the Capital Acquisition Fund for the purpose of
financing major capital repairs and/or replacement,in years when the General Fund's reserves fall
within prescribed policy band limits; and
WHEREAS,as of December 31,2016,the General Fund's fund balance policy band(goal)
is between $3.2 million and $6.4 million, representing between three months' and six months' of
General Fund expenditures and transfers-out, and the General Fund's Unassigned Fund Balance is
$4.8 million equal to 4.6 months of reserves; and
WHEREAS,until the last few years,the City has been at the lower end of the policy band
limits—and often below prescribed limits—relying solely on periodic State revenue sharing funds to
address the repair and/or replacement of governmental fixed assets such as streets, sidewalks,
building repairs, flood mitigation, etc. with insufficient resources to address major infrastructure
needs; and
WHEREAS,the City has yet to identify a consistent source of funding to repair and replace
the$57 Million in governmental fixed assets(net of depreciation),and the periodic transfer of annual
surplus for capital purposes is intended to encourage conservative annual spending in order to
address major infrastructure repair and replacement needs; and
WHEREAS,the City's 2015 annual surplus is$321,309(50%of that surplus is$160,654)
and the 2016 annual surplus is $187,780 (50% of that surplus is $93,890), for a combined total
transfer of$254,544 to the Capital Acquisition Fund for the purpose of addressing governmental
capital needs such as city shop and parks warehouse relocation, City Hall and Annex building
repairs, fire apparatus storage facility, and other major infrastructure needs.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The amount of$254,544 is hereby transferred from the General Fund to the
Capital Acquisition Fund, reducing the General Fund Unassigned Fund Balance to an estimated
$4,618,919, reflecting 4.33 months' reserves, within the established goal of three to six months'
reserves.
CITY OF SEWARD,ALASKA
RESOLUTION 2017-054
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 25th day of
September, 2017.
THE CITY OF SEWARD, ALASKA
an Bardarson, Mayor
AYES: Keil, Squires, McClure, Altermatt
NOES: None
ABSENT: Casagranda, Slater
ABSTAIN: None
ATTEST:
J i hanna Ki 1111, MMC
•ity Clerk
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