HomeMy WebLinkAboutRes2021-043 Substitute Resolution
CITY OF SEWARD,ALASKA
RESOLUTION 2021-043 Sponsored by: Regis
111 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING THE 2021 BUDGET TO REFLECT MID-
CYCLE BUDGET ADJUSTMENTS, AND APPROPRIATING
FUNDS.
WHEREAS,the 2020/2021 Biennial Budget was passed December 9, 2019 reflecting the
budget period from January 1,2020 through December 31, 2021; and
WHEREAS, budget adjustments are made at various points during the year and these
additional mid-cycle budget amendments reflect updated information such as adjustments to sales
and bed tax due to changing economic conditions; and
WHEREAS, COVID-19 had a significant negative impact on the 2020 summer season,
reducing sales and bed tax receipts over$2 million combined; and
WHEREAS,it is not anticipated that 2021 activity will bring in sufficient revenues to meet
the budgeted revenues passed through the budget cycle at the end of 2019; and
WHEREAS, new camping fees go into effect for the 2021 camping season, increasing
anticipated camping revenue by$820,000; and
WHEREAS, additional federal aid appropriated $579,856 for revenue replacement; and
WHEREAS, in order to accurately project budget and actuals, adjustments must be made
to the 2021 budget.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The General Fund 2021 Budget is hereby amended and funds are hereby
appropriated according to the specific line item adjustments included on the attached Schedule B,
as follows: 1) Revenues are adjusted for a net increase of$53,873 and 2) Various expenditures
are adjusted for a net increase of$122,255.
Section 2.This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 26tn
day of April, 2021.
CITY OF SEWARD, ALASKA
RESOLUTION 2021-043
TH *IT OFia WA ► P .r KA
orr
Christy Terry, . or
AYES: Osenga, Seese, McClure, Casagranda, DeMoss, Baclaan, e
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Brenda J. Ballou, MMC f} e ,c „ 9 C y c
City Clerk ,�
(City Seal) mg]
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Council Agenda Statement
Meeting Date: April 12, 2021
To: City Council
Through: Norm Regis, Acting City Manager
From: Sam Hickok, Deputy Finance Director
Agenda Item: 2021 Mid-Cycle Budget Adjustments
BACKGROUND & JUSTIFICATION:
The 2020/2021 Biennial Budget which covers the period January 1, 2020 through December 31,
2021 was passed December 9, 2019. Periodically, adjustments are made to the budget as new data
becomes available regarding revenues and/or changing priorities and projects. The specific
requested budget adjustments are listed on the attached schedules with major changes described
below.
Due to the large economic impact of COVID-19, it is necessary for the City to adjust projected
revenues for 2021 as well as reduce expenses where possible. The 2020 summer season saw a
Iarge negative impact on the tourism and hospitality industry, a major source of revenue for
Seward. Sales tax revenues came in $1.68 million under budget and hotel/motel room tax came in
$426,566 under budget. Administration proposes to reduce 2021 sales tax projections by
$1,680,000 and hotel/motel room tax by $350,000, both on the conservative side.
Recently, President Biden signed a$1.9 trillion COVID relief package, which includes a state and
local relief appropriation. Seward is projected to be allocated $579,856 which will be put directly
in the General Fund.
Council approved RES 2020-086, revising municipal camping fees. This action is expected to
bring in an additional $820,000 in camping revenue to the General Fund.
Finance and administration met with department heads to discuss where budgets could be cut. The
attached Schedule A reflects cuts agreed upon, mostly to Travel & Subsistence.
INTENT:
The intent of this resolution is to amend the 2021 Budget as described in the narrative above, plus
appropriate funds as listed on the attachments.
CONSISTENCY CHECKLIST: Yes No NIA
L Com rehensive Plan (document source here):
2 Strategic Plan(docuntent source here):
3. Other(list):.Resolution 2019-098 X
FISCAL NOTE:
This action results in an anticipated decrease in General Fund fund balance for 2021, of$752,399.
Approved by Finance Department: J _..
98
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
Seward City Council approve Resolution 2021-043, to approve the 2021 Mid-Cycle Budget
Adjustments in substantial form as attached hereto.
99