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HomeMy WebLinkAboutRes2017-058CITY OF SEWARD, ALASKA Sponsored by: Hunt RESOLUTION 2017-058 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING THE HARBOR ENTERPRISE FUND BIENNIAL BUDGET FOR CALENDAR YEARS 2018 AND 2019 WHEREAS, the city manager has submitted to the City Council a proposed biennial budget for the City of Seward for Calendar Years 2018 and 2019; and WHEREAS, the preliminary biennial budget was reviewed by the City Council in budget work sessions on September 27, October 2, and October 3, 2017, which were televised to the public; and WHEREAS, a public hearing is scheduled on the proposed budget for October 23, 2017, and a second public hearing and final adoption are scheduled for November 27, 2017; and WHEREAS, the 2018 budget includes a rate increase of 2.1 % to all rates which are adjusted according to the five-year average CPI within the Harbor Tariff, and a rate increase of 1.6% for 2019 for those same rates, representing the five-year average CPI. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The Harbor Enterprise Fund biennial budget for Calendar Years 2018 and 2019, which is attached hereto and made a part hereof by reference, and which contains estimated revenues and expenses for the period January 1, 2018 - December 31, 2019, is HEREBY ADOPTED, and the necessary funds are hereby appropriated. Section 2. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 271n day of November, 2017. THE CITY OF SEWARD, ALASKA Davi Squires, Ma r 1 CITY OF SEWARD, ALASKA RESOLUTION 2017-058 AYES: Casagranda, Keil, McClure, Slater, Towsley, Horn, Squires NOES: None ABSENT: None ABSTAIN: None ATTEST: Brenda J. Ballot, MMC City Clerk •,���7��s BC60�• of: SE (City Seal) ; V�,,GOPOR A•%Is C L � OF i K. i +'s••eEaasa•+i 1 C HARBOR ENTERPRISE FUND Budgeted Statement of Revenues and Expenses and Change in Net Position For 20I8 and 2019 2016 20I7 2018 20I9 Actual Budget Budget Budget Operating revenue: Moorage I,628,052 I,710,528 I,725,000 I,730,000 Wharfage 28,216 48,000 48,000 48,000 Boat Lift Fees 92,660 117,324 117,325 117,000 Power Sales 361,865 365,004 372,665 373,000 Passenger Transit Fee 636,027 630,000 625,000 625,000 Launch Fees 46,558 54,2I6 54,2I0 54,250 Rents and Leases 326,020 335,616 364,7I5 364,7IS Miscellaneous 83,S8I 49,716 52,285 49,400 Total operating revenue $3,202,979 $3,3I0,404 $3,359,200 $3,36I,365 Operating expense before depreciation: Salaries & Benefits 1,297,653 I,I98,040 1,108,697 I,I23,687 Purchased Services 336,287 376,296 395,720 384,820 Power for Resale 260,390 306,996 306,300 307,000 Supplies and Maintenance 102,793 I5I,008 142,500 145,S00 General and Administrative 258,073 239,220 266,934 275,076 Total operating expense: $2,255,196 $2,27I,560 $2,220,151 $2,236,083 Operating income before depreciation 947,783 I,038,844 I 139,049 I 125,282 Depreciation 1,8S3,141 1,238,472 I,789,143 I,4I8,309 Operating loss -$905,358 -$I99,62,8 -$650,094 -$293,027 Non -operating revenue (expense) Interest, grants & other income 39,626 30,000 15,000 30,000 Interest & other expense -276,216 -193,10S -224,525 -208,093 Total non -operating revenue (expense) -236,590 -I63,I05 -209,525 -178,093 Income (loss) before transfers -$I,14I,948 -$362,733 -$859,6I9 -$47I,I20 Transfers in 0 1,991,084 0 0 Capital contributions and special items 0 0 0 0 Transfers out -355,977 37I,142 -389,837 -389,370 Change in net position -$I,497,925 $I,999,493 -$I,249,456 -$860,490 Beginning net position 39,227,983 37,730,058 39,729,5SI 38,480,095 Ending net position $37,730.058 $39,729,551 $38A80.09S37,6I9,605 * Ties to annual Comprehensive Annual Financial Report Of total depreciation expense, the following amounts were attributable to capital assets funded with capital contributions: (a) $I,064,I65 or 57%; (b) $945,228 or 76%, (c) $1,I36,678 or 64%; ( d) $974,557 or 69% CITY OF SEWARD HARBOR ENTERPRISE FUND Budgeted Statement of Cash Flow For 20I8 and 20I9 Beginning Cash Balance at I/I/I7*: Cash is provided by (used for): Change in net position Add expense items not affecting cash Depreciation Net cash provided by operations Other sources (uses) of cash Debt principal payments Capital outlay Net increase (decrease) in cash 20I7 2018 20I9 Budget Budget Budget $I,875,2I I I,999,493 -I,249,456 -860,490 I,23 8,472 I,789, I43 I,418,309 $3.237,965 $539,687 $557,819 -480,005 -5I4,354 {a) -53I,I87 (b) -I8,274 -64,000 (c) -64,000 (d) $2,739,686 -$38,667 -$37,368 Estimated ending cash balance: JJIL662aO a Ties to CAFR and includes only Harbor Enterprise Fund, excludes related capital projects 4 538 862 (a) $514K = 2007 Bond-$200K; 2005 Float Extension -$75K; 2006 South Harbor Bond - $21 SK; USACE Loan - $24K (b) $53IK = 2007 Bond -$2I0K 2005 Float Extension -$75K; 2006 South Harbor Bond - $225K; USACE Loan - $2IK (c) $64K Motor Pool contributions. $0 to MRRF. No equipment. (d) $64K Motor Pool contributions. $0 to MRRF. No equipment Note: Balance in Harbor Major Repair & Replacement Fund at 8/3I/I7 = $243,423 Capital Renew/Replace Fee estimated at $ 100,000 in 20I8 and 20I9; directly to Harbor MRRF for capital. City of Seward Harbor Enterprise Fund 2018/2019 Biennial Operating Budget Revenue Detail by Line Item 2015 2016 2017 2018 2017-18 2019 2018-19 Actual Actual Budget Budget % Chg Budget % Chg Revenues 11000 5000 Land Rents & Leases 11000 5001 Land Lease Credits 11000 5100 Transient Moorage 11000 6101 Moorage 11000 5102 Wharfage 11000 5103 Boat Lift Fees 11000 5105 Harbor Power Sales 11000 5150 Shower Fees 11000 5153 Fuel Pumping Fee 11000 5154 Waiting List Fees 11000 5155 Towing Fees 11000 5156 Pumping Boats 11000 5157 North Harbor Launch Fee 11000 5158 South Harbor Launch Fee 11000 5800 Labor & Services 11000 5890 Collection of Doubtful Accounts 11000 5899 Miscellaneous Revenue 11000 5900 EF Interest Revenue 11000 5901 EF Investment Interest 11000 5905 EF Penalties and Interest 11000 5919 Contra PERS On -behalf paid by SOA 11000 5920 PERS On -behalf paid by SOA 11000 5940 Amortization of Contributions -in -Aid 11000 6941 Amortization of Bond Premiums 476,469 388,020 397,620 394,715 (0.73) 394,715 0.00 (124,000) (62,000) (62,004) (30,000) (51.62) (30,000) 0.00 673,471 566,895 570,168 575,000 0.85 680,000 0.87 1,030,016 1,061,157 1,140,360 1,150,000 0.85 1,150,000 0.00 61,526 28,216 48,000 48,000 0.00 48,000 0.00 111,347 92,660 117,324 117,326 0.00 117,000 (0.28) 337,913 361,865 365,004 372,665 2.10 373,000 0.09 16,539 15,833 12,000 15,000 25.00 12,000 (20.00) 27,158 23,115 20,844 20,500 (1.65) 21,000 2.44 8,883 9,009 7,884 7,885 0.01 7,500 (4.88) 1,313 893 900 900 0.00 900 0.00 63 126 300 300 0.00 300 0.00 32,323 28,130 33,756 33,750 (0.02) 33,760 0.00 22,800 18,428 20,460 20,460 0.00 20,500 0.20 9,304 3,831 5,592 5,500 (1.65) 5,500 0.00 1,106 5,597 1,200 1,200 0.00 1,200 0.00 8,540 25,177 996 1,000 0.40 1,000 0.00 10,111 0 0 0 0.00 0 0.00 0 3,634 20,004 5,000 (75.00) 20,000 300.00 10,208 11,713 9,996 10,000 0.04 10,000 0.00 ( ,337) (1,605) 0 0 0.00 0 0.00 131,324 25,884 0 0 0.00 0 0.00 845,468 1,064,165 945,228 1,136,678 20.25 974,557 (14.26) 47,429 43,172 8,376 43.172 415.43 43.172 0.00 Total Revenues $ 3.542,974 $ 3,713,916 $ 3,664,008 $ 3,929,050 $ 7.23 $ 3,784,094 $ (3.69) City of Seward Harbor Enterprise Fund 201812019 Biennial Operating Budget Expenditure Line Item by Fund 2015 2016 2017 2018 2017-18 2019 2018-19 igL :actual Budget Budget % Chg Personnel Costs: 6000 Salaries 494,207 486,212 574,388 523,175 (8.92) 624,264 0.21 6001Overtiime 37,079 21,628 44,604 40,253 (9,75) 40,893 1.59 6002 Standby Time 14,058 13,909 12,720 11,468 (9,84) 11,686 1.90 6100 Medicare 9,758 9,207 10,848 9,953 (8,25) 9,993 0.40 6101 Unemployment Insurance 430 16,163 504 500 (0.79) 500 0.00 6102 Workers' Compensation 34,246 45,634 32,652 37,589 15.12 37,600 0.03 6200 Leave Time 45,689 57,222 70,116 58,942 (15.94) 60,934 3.38 6201 Retirement Benefits 319,937 387,687 153,960 139,910 (9.13) 142,401 1.78 6202 Health Insurance 223,037 259,991 298,248 286,907 3.80 296,416 2.97 Total Personnel Costs: $ 1,178,441 $ 1,297,653 $ 1,198,040 $ 1,108,697 $ (7.46) $ 1,123.687 $ 1.35 Non -Personnel Costs: 7001 Communications 9,955 10,892 12,000 13,000 8.33 11,500 (11.54) 7002 Postage and Freight 2,917 4,831 10,500 9,500 (9.52) 8,500 (10.53) 7003 Bank and Credit Card Fees 51,414 51,679 39,996 51,000 27.51 51,000 0.00 7004Insurance 83,149 86,376 82,704 82,300 (0.49) B2,700 0.49 7006 Legal 13,153 581 9,996 10,000 0.04 10,000 0.00 7009 Contracted Services 83,149 51,185 95,328 95,320 (0.01) 92,000 (3.48) 7011 Testing 1,703 1,439 996 1,000 0.40 1,300 30.00 7015 Utilities 111,413 122,595 114,780 123,600 7.68 117.820 (4,68) 7016 Heating Fuel 9,255 6,707 9,996 10,000 0.04 10,000 0.00 7100 General Power for Resale 260,279 260,390 306,996 306,300 (0.23) 307,000 0.23 7210 Vehicle Supplies 0 0 0 0 0.00 0 0.00 7211 Gas & Luba 14,110 11,005 27,492 18,500 (32.71) 22,500 21.62 7212 Uniform Allowance 0 0 0 0 0.00 0 0,00 7213 Safety Equipment 9,270 8,578 7,500 7,500 0.00 7,500 0.00 7214 Janitorial Supplies 10,173 7,876 9,504 11,000 15.74 10,000 (9.09) 7215 Operating Supplies 24,520 25,109 36,000 36,000 0.00 36,000 0.00 7216 Maintenance & Repair 31,451 39,152 53,004 52,000 (1.89) 52,000 0.00 7217 Small Tools & Equipment 16,041 11,072 17,508 17,500 (0,05) 17,600 0.00 7300 Advertising 4,213 2,137 5,004 5,000 (0.08) 5,500 10.00 7301 Subscriptions & Dues 890 1,413 1,500 1,500 0.00 1,500 0.00 7302 Travel & Subsistence 9,444 9,204 9,996 10,000 0.04 10,000 0.00 7303 Education & Training 3,575 2,939 3,996 4,000 0.10 4,000 0.00 7304 Equipment Rent 1,785 1,780 0 1,000 0.00 1,000 0.00 7321 Harbor General Indirect Costs 431,063 424,384 408,600 468,251 14.60 442,336 (5.53) 7322 Harbor Admin Indirect Costs 288.361 269,238 449,976 460,337 2.30 465,598 1.14 7323 SMIC General Indirect Costs 0 0 0 0 0.00 0 0.00 7324 Gen Fund Indirect Costs 332,948 340,606 348,780 359,680 3.13 365,435 1.60 7325 Harbor Internal Cost Allocation (807,449) (805,942) (1,002,144) (1,058,334) 5.61 (1,034.793) (2.22) 7330 P.I.L.T. 204,645 176,827 185,412 189,558 2.24 189,092 (0.25) 7331 Reclass PI LT to Transfer -Out (204,645) (176,827) (185,412) (189,558) 2.24 (189,092) (0.25) 7801 Contributions 0 0 0 0 0.00 0 0.00 7808 Bad Debt Expense 9,602 10,378 10,008 12,000 19.90 12,000 0.00 7810 Miscellaneous Expense 1,572 1,936 3,504 3,500 (0.11) 2,500 (28.57) 7900 Depreciation Expense 1,367,544 1,853,141 1,238,472 1,789,143 44.46 1,418,309 (20.73) 8011 Bonding Expense 0 50,593 0 0 0.00 0 0.00 8012 Debt Service Interest Expense 252,747 225,623 193,105 224,525 16.27 208,093 (7.32) 8103 Capital Equipment 0 0 18,274 0 (100.00) 0 0.00 8104 Motor Pool Rent 57,810 0 0 64,000 0.00 64,000 0.00 8300 Debt Service Principal 486,254 497,698 480,005 514,354 7.16 531,187 3.27 Total Non -Personnel Costs: $ 3,162,301 $ 3,584,595_ $ 3,0� 03,376 $ 3,703,476 $ 23.31 $ 3,333,985 $ (9.98) Total Expendltures $ 4,340,742 $ 4,882,248 $ 4,201,416 $ 4,812,173 $ 14.54 $ 4,457,672 $ (7.37) M C N N N m o O O D Ln D - m o 3 r ( M 'v fu to O O O Q O CD O 01 O In O V :3 n W N T1 RI m fD O °��' T Q o rt ,� � _ O rt a m !D 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W H N O " O D Do el A N LA ee 0 6 Ln Ln b 00 O A ro m :Nu V [i-- I0 ILn m co V N O W y 91 O A cD A — [n lD �I O N A 00 O O O (n O O O O � F+ W � m O O n •O�i 4 W _QVi W O O O 00 N N O N O N O mm w 1° N \ 3 * Ln N CD NJ r1i (n In H r Do 5 D Q W M � O Cr M EA e-Pm `° m n �L,> mm Q T C C1 Z S m Q C_ fC CITY OF SEWARD HARBOR ENTERPRISE FUND Budgeted Interfund Transfers 2018 and 2019 2018 2019 Transfers- Transfers- Transfers- Transfers - In Out In Out CPV Fund for USACE Loan (a) 0 0 General Fund: One-half of land rents and leases 182,358 182,358 Federal and state lobbying 17,920 17,920 Payments -in -Lieu -of -Tax 189,559 189,092 $0 $389,837 $0 $389,370 No transfers to MRRF in 2018 and 2019. (a) No further funding needed for this loan; sufficient funds are reserved in Harbor Enterprise Fund.