HomeMy WebLinkAboutRES2024-012 Mid-Cycle Budget Sponsored by: Sorensen
CITY OF SEWARD,ALASKA
RESOLUTION 2024-012
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING THE FY 2023-2024 BUDGET TO REFLECT MID-
CYCLE BUDGET ADJUSTMENTS AND APPROPRIATING FUNDS
WHEREAS, the FY 2023-2024 Operating Budget was passed on December 12, 2022,
reflecting the budget period from January 1, 2023, through December 31, 2024; and
WHEREAS, budget adjustments are made at various points during the year, and these
additional mid-cycle budget amendments reflect updated information in the General Fund,such as
decreases in expenditures and revenue related to the closure of the Jail Facility, adjustments to the
PILT contribution to the General Fund due to increase of the Electric Power Rate charge, an
increase of investment income across the City due to market conditions, increased of revenue
incorporated new fee schedule to the budget. Increase in expenditures to the General Fund related
to adjustments on the salaries funding a vacant position in the Police Department and personnel
corrections for various departments. Increase in expenses to the General Fund due to outsourcing
the utility billing services.
WHEREAS, these additional mid-cycle budget amendments reflect updated information
in the Enterprise Fund, such as an increase in the revenue due to the increase of .06 by KwH on
the Electric Power Rate charge on the Electric Department and an increase in the expenses across
the city as utility expenses. Adjustments are made to incorporate the funding of the Electric Major
Repair and Replacement Fund,which is intended to replace electric capital assets on the outgoing
infrastructure projects. Increase of the expenditures related to the contracting services of the MEA
management contract and the Right of Way Clearing. The increase in revenue in the Harbor Fund
is related to the increases in the Harbor Power Sales and the Increase in revenue for the SMIC due
to the increase in activity. Increase of the revenue on the Parking Fund due to increased activity
and enforcement.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD,ALASKA, that:
Section 1. The General Fund 2024 Budget is hereby amended, and funds are hereby
appropriated according to the adjustments included on the attached Schedule A, as follows: 1)
Revenues are adjusted for a net increase of$16,033;2)Various expenditures are adjusted for a net
decrease of($115,989).
Section 2. Enterprise Fund 2024 reflects allocated revenue and expenses according to the
adjustments included on the attached Schedule B, as follows: 1) The Harbor Enterprise Fund
revenue are increased by $107,000; the expenditures increased by $105,000 2) The SMIC
Enterprise Fund expenses are increased by $180,000; the revenue is increase by $74,500 3) the
CITY OF SEWARD,ALASKA
RESOLUTION 2024-012
Page 2 of 2
Parking Enterprise Fund expenses are increased by $10,000; the revenue is increased by $42,000
4) the Electric Enterprise Fund expenses are increased by $4,567,313; the revenue is increase
reflecting the increase of the Electric Power Rate Charge by KwH by $3,641,454) the Water
Enterprise Fund expenses are increased by $36,000; the revenue increase by $50,000 and 6) the
Wastewater Enterprise Fund expenses are increased by $210,000; the revenue are increased by
$50,000.
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, on the
12th day of February 2024.
THE CITY OF SEWARD,ALASKA
Eta-Mc Clw &
Sue McClure, Mayor
AYES: Crites,Wells,Finch, Barnwell, Calhoon, Osenga, McClure
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Kris Peck
City Clerk
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Resolution 2024-012
City Council Agenda Statement
Meeting Date: February 12, 2023 -To: City Council f
Through: Kat Sorensen, City Manager J
From: Sully Jusino Finance Director
Subject: Resolution 2024-012: Amending the FY 2023-2024 Budget to Reflect Mid-Cycle
Budget Adjustments and Appropriating Funds
Background and justification
The 2022 Annual Budget,which covers the period January 1,2023,through December 31,2024,was passed
on December 12, 2022. Periodically, adjustments are made to the budget as new data becomes available
regarding revenues and/or changing priorities and projects.It is prudent for the City to budget revenues on the
conservative side to avoid adverse impacts that come from reduced economic activity,higher fuel costs,State
budget reductions, or cost—shifting.
The specific requested budget adjustments are listed on the attached schedules,with major changes described
below.
Mid-cycle budget adjustments are made at various points during the year, and these additional mid-cycle
budget amendments reflect updated information in the General Fund,such as decreases in expenditures and
revenue related to the closure of the Jail Facility, adjustments to the PILT contribution to the General Fund
due to increase of the Electric Power Rate charge, an increase of investment income across the City due to
market conditions,increased of revenue incorporated new fee schedule to the budget.Increase in expenditures
to the General Fund related to adjustments on the salaries funding a vacant position in the Police Department
and personnel corrections for various departments. Increase in expenses to the General Fund due to
outsourcing the utility billing services.
These additional mid-cycle budget amendments reflect updated information in the Enterprise Fund,such as an
increase in the revenue due to the increase of.06 by KwH on the Electric Power Rate charge on the Electric
Department and an increase in the expenses across the city as utility expenses. Adjustments are made to
incorporate the funding of the Electric Major Repair and Replacement Fund, which is intended to replace
electric capital assets on the outgoing infrastructure projects. Increase of the expenditures related to the
contracting services of the MEA management contract and the Right of Way Clearing. The increase in
revenue in the Harbor Fund is related to the increases in the Harbor Power Sales and the Increase in revenue
for the SMIC due to the increase in activity. Increase of the revenue on the Parking Fund due to increased
activity and enforcement.
The intent of this resolution is to amend the 2022 Budget as described in the narrative above,plus appropriate
funds as listed in the attachments.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with(citation listed):
Comprehensive Plan: 11.3 City Government and Finances
Strategic Plan:
Other:
126
Resolution 2024-012
Certification of Funds
Total amount of funds listed in this legislation:
This legislation(✓):
✓ Creates revenue in the amount of:
General Fund Revenue Net Increase: $ 161033
✓ Enterprise Fund Revenue Net Increase: $ 319641954
✓ Creates expenditure in the amount of:
General Fund: $ (115,989)
Harbor Enterprise Fund $ 1051000
SMIC Enterprise Fund $ 1801000
Parking Enterprise Fund $ 101000
Electric Enterprise Fund $ 415671313
Water Enterprise Fund $ 361000
Wastewater Enterprise Fund $ 210,000
Creates a savings in the amount of: $
Has no fiscal impact
Funds are (v ):
Budgeted Line item(s): Various please see the attachments.
✓ Not budgeted
Not applicable
Unassigned Fund Balance and Available Unrestricted Cash Balance Information
Fund(v ):
✓ General ✓ SMIC ✓ Electric ✓ Wastewater
✓ Boat Harbor ✓ Parkin ✓ Water Healthcare
Motor Pool Other
General Fund Available Fund Balance*: $ 1114691872 *Unaudited numbers.
Period ends 12/31/23.
Harbor Enterprise Available Fund Balance*: $ 3716501508
SMIC Enterprise Available Fund Balance*: $ 4413271680
Parking Enterprise Available Fund Balance*: $ 114551100
Electric Enterprise Available Fund Balance*: $ 1017311258
Water Enterprise Available Fund Balance*: $ 9,1401652
Wastewater Enterprise Available Fund Balance*: $ 6,03 8,265
Finance Signature:
127
Resolution 2024-012
Attorney Review
Yes Attorney Signature:
✓ Not applicable Comments:
Administration Recommendation
✓ Adopt Resolution
Other:
128