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Home My WebLink AboutRES2026-022 Mid Cycle BudgetSponsored by: Sorensen Substitute Version Postponed: February 23, 2026 Approved: Special Meeting on March 2, 2026 CITY OF SEWARD, ALASKA RESOLUTION 2026-022 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE FY 2025-2026 BUDGET TO REFLECT MID-CYCLE BUDGET ADJUSTMENTS AND APPROPRIATING FUNDS WHEREAS, the FY 2025-2026 Operating Budget was passed on December 16, 2024, reflecting the budget period from January 1, 2025 through December 31, 2026; 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 an increase in revenue collections and updated economic analysis indicate that sales tax revenues are trending higher than originally projected; and WHEREAS, FY2025 revenues form the basis for a revised FY2026 projection of $8,328,618. Continued strength in tourism and seasonal economic activity supports revised tax revenue projections of $901,880 for FY26; and WHEREAS, the City's investment portfolio has generated earnings above original budget estimates due to sustained interest rates and stronger-than-anticipated cash balances, requiring formal recognition through a mid-cycle budget amendment; and WHEREAS, leadership transitions within the Police Department and Library Department, including the appointment of new department heads, necessitate adjustments to salary and benefit allocations and related operational line items to align with current staffing structures and organizational vision; and WHEREAS, the City has evaluated internal cost allocation practices within the Parks and Recreation Department and determined that reallocating personnel costs directly to operational divisions will improve financial transparency, cost tracking, and program-level accountability; and WHEREAS, the City has reinstated the Teen Youth Center (TYC) and seen a growth in the popularity and attendance and determine that it is in the best interest to fund the vacant TYC position to enhance overall operations and avoid a costly PERS termination study; and WHEREAS, a decrease in the Admin expense revenue for the General Fund is due to the transition of expenses to the Electric Department in the amount of $304,0_62 for FY26; and WHEREAS, these additional mid-cycle budget amendments reflect updated information in the CITY OF SEWARD, ALASKA RESOLUTION 2026-022 Page 2 of 3 Enterprise Fund, such as adjustments made to incorporate funding for the Major Repair and Replacement Fund, which is intended to replace capital assets on outgoing infrastructure projects for the Harbor, Water, and Wastewater Funds. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEW ARD, ALASKA: Section 1. Enterprise Fund 2025 reflects allocated revenue and expenses according to the adjustments included on the attached Schedule B, as follows: 1)The Harbor Enterprise Fund revenue is increased by $267,145; the expenditures increased by $267,145 2)The SMIC Enterprise Fund revenue is increased by $126,914; the expenditures increased by $126,914 3)The Parking Enterprise Fund revenue is increased by $258,209 4)The Electric Enterprise Fund expenses are decreased by $304,062; revenue increased by $224,269 5)The Water Enterprise Fund expenses are increased by $100,000; the revenue increased by $100,000, and the Wastewater Enterprise Fund expenses are increased by $100,000; and the revenue increased by $147,899 Section 2. The General Fund 2026 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 $1,033,683 2)Various expenditures are adjusted for a net decrease of ($1,033,683) Section 3. This resolution shall take effect immediately upon its adoption. APPROVED BY THE CITY COUNCIL OF THE CITY OF SEW ARD, ALASKA, ON THE 2 nd DAY OF MARCH 2026. Sue McClure, Mayor CITY OF SEWARD, ALASKA RESOLUTION 2026-022 Page 3 of 3 AYES: NOES : ABSENT: ABSTAIN: ATTEST: Barnwell, Draper, Calhoon, Osenga, McClure None Warner, Crites None �/(�/ Kris Peck City Clerk 2025 2026 Budget Budget Beginning Cash Balance at 1/1/25*:5,721,429$ 4,656,293$ Cash is provided by (used for): Operations (1,489,296)$ (2,028,896)$ Add expense items not affecting cash Depreciation and Motorpool Rent 1,818,930$ 1,818,570$ Net cash provided by operations 329,634$ (210,326)$ Other sources (uses) of cash Investments 15,000$ 15,000$ Debt service: Interest (29,600)$ (4,800)$ Principal (400,000)$ (320,000)$ Infrastructure (151,820)$ -$ Transfers-out (847,788)$ (663,953)$ Other 19,438$ 10,000$ Net increase (decrease) in cash (1,065,136)$ (1,174,079)$ Estimated ending cash balance:4,656,293$ 3,482,214$ * Ties to December 31, 2024 cash and investment balance per ACFR CITY OF SEWARD BOAT HARBOR ENTERPRISE FUND Budgeted Statement of Cash Flow For Fiscal Year 2025 and 2026 2025 2026 Budget Budget Beginning Cash Balance at 1/1/25*:637,112$ 468,571$ Cash is provided by (used for): Operations (1,508,529)$ (1,677,886)$ Add expense items not affecting cash Depreciation and Motorpool Rent 1,535,000$ 1,535,000$ Net cash provided by operations 26,471$ (142,886)$ Other sources (uses) of cash Investments 1,750$ 1,750$ Transfers-out (196,762)$ (149,095)$ Net increase (decrease) in cash (168,541)$ (290,231)$ Estimated ending cash balance:468,571$ 178,340$ * Ties to December 31, 2024 cash and investment balance per ACFR CITY OF SEWARD SMIC ENTERPRISE FUND Budgeted Statement of Cash Flow For Fiscal Year 2025 and 2026 2025 Budget Beginning Cash Balance at 1/1/25*:6,847,519$ Cash is provided by (used for): Operations 470,271$ Add expense items not affecting cash Depreciation and Motorpool Rent 1,853,433$ Net cash provided by operations 2,323,704$ Other sources (uses) of cash Investments 36,050$ Debt service: Interest (561,242)$ Principal (370,000)$ Infrastructure (1,830,436)$ Equipment (901,397)$ Transfers-out (1,311,146)$ Other 27,604$ Net increase (decrease) in cash (4,910,567)$ Estimated ending cash balance:1,936,952$ * Ties to December 31, 2024 cash and investment balance per ACFR CITY OF SEWARD ELECTRIC ENTERPRISE FUND Budgeted Statement of Cash Flow For Fiscal Year 2025 2025 2026 Budget Budget Beginning Cash Balance at 1/1/25*:1,282,695$ 1,502,898$ Cash is provided by (used for): Operations 205,172$ 206,869$ Add expense items not affecting cash Depreciation and Motorpool Rent 43,965$ 33,965$ Net cash provided by operations 249,137$ 240,834$ Other sources (uses) of cash Investments 5,000$ 5,000$ Transfers-out (33,934)$ (34,477)$ Net increase (decrease) in cash 220,203$ 211,357$ Estimated ending cash balance:1,502,898$ 1,714,255$ * Ties to December 31, 2024 cash and investment balance per ACFR CITY OF SEWARD PARKING ENTERPRISE FUND Budgeted Statement of Cash Flow For Fiscal Year 2025 and 2026 2025 2026 Budget Budget Beginning Cash Balance at 1/1/25*:4,000,901$ 4,326,896$ Cash is provided by (used for): Operations 332,456$ 316,693$ Add expense items not affecting cash Depreciation and Motorpool Rent 408,550$ 428,500$ Net cash provided by operations 741,006$ 745,193$ Other sources (uses) of cash Investments 30,000$ 30,000$ Debt service: Interest (6,851)$ (4,602)$ Principal (149,993)$ (152,243)$ Transfers-out (289,167)$ (191,794)$ Other 1,000$ 1,000$ Net increase (decrease) in cash 325,995$ 427,554$ Estimated ending cash balance:4,326,896$ 4,754,450$ * Ties to December 31, 2024 cash and investment balance per ACFR CITY OF SEWARD WATER ENTERPRISE FUND Budgeted Statement of Cash Flow For Fiscal Year 2025 and 2026 CITY OF SEWARD WASTEWATER ENTERPRISE FUND Budgeted Statement of Cash Flow 2025 2026 Budget Budget Beginning Cash Balance at 1/1/25*:3,916,678$ 3,551,357$ Cash is provided by (used for): Operations (329,961)$ (461,672)$ Add expense items not affecting cash Depreciation and Motorpool Rent 343,550$ 363,550$ Net cash provided by operations 13,589$ (98,122)$ Other sources (uses) of cash Investments 20,000$ 20,000$ Debt service: Interest (12,002)$ (10,990)$ Principal (67,444)$ (68,456)$ Equipment (113,072)$ -$ Transfers-out (232,392)$ (134,110)$ Transfers-in 26,000$ 26,000$ Net increase (decrease) in cash (365,321)$ (265,678)$ Estimated ending cash balance:3,551,357$ 3,285,679$ * Ties to December 31, 2024 cash and investment balance per ACFR For Fiscal Year 2025 and 2026 COS Changes to the Transfer Schedule for FY25 & FY26 2025 Account Transfers- Out TRANSFERS FROM OTHER FUNDS: Boat Harbor Enterprise Fund: Transfers to contribution to the MRRF 11000-0000-3710-11001 217,145$ Commercial Vessel Tax Fund: For SVAC ambulance and Fire service to cruise ships, Firefighter position funding, and for GF services to cruise ships, police security, museum movie, etc. 11103-0000-3710-01000 140,000$ Seward Marine Industrial Center Enterprise Fund: Transfers to contribution to the MRRF 12000-0000-3710-11001 50,000$ Water Enterprise Fund: Transfers to contribution to the MRRF 17000-0000-3710-17001 100,000$ Wastewater Enterprise Fund: Transfers to contribution to the MRRF 18000-0000-3710-18001 100,000$ TOTAL TRANSFERS OUT:607,145$ *This change will also be for FY26, transfers will be out of F11103* Harbor Fund Amount Department Account Name Description 196,325$ 11000-2000-5901 EF Investment Interest Increased rate of return 20,820$ 11000-2000-5905 EF Penalties and Interest Increased rate of return 217,145$ Estimated Revenue Increase Amount Department Account Name Description -$ Estimated Expenditure Increase 217,145$ Estimated Net Impact City of Seward - Enterprise Funds 2025 Proposed Mid-Cycle Budget Adjustments Schedule "B" Expenditure Increases (Decreases): Revenue Increases (Decreases): ENTERPRISE FUND CHANGES City of Seward - Enterprise Funds 2025 Proposed Mid-Cycle Budget Adjustments Schedule "B" ENTERPRISE FUND CHANGES SMIC Fund Amount Department Account Name Description 40,000$ 12000-2500-5000 Land Rents & Leases Increase in Leases activity 30,000$ 12000-2500-5901 EF Investment Interest Increased rate of return 56,914$ 12000-2500-5104 Storage Fees Increased in activity 126,914$ Estimated Revenue Increase Amount Department Account Name Description (50,000)$ 12000-2504-8104 Motor Pool Rent Correction on Motorpool rent. Based on depreciation percentages. (50,000)$ Estimated Expenditure Decrease 176,914$ Estimated Net Impact Expenditure Increases (Decreases): Revenue Increases (Decreases): City of Seward - Enterprise Funds 2025 Proposed Mid-Cycle Budget Adjustments Schedule "B" ENTERPRISE FUND CHANGES Parking Fund Amount Department Account Name Description 58,536$ 13000-2900-5901 EF Investment Interest Increased rate of return 40,000$ 13000-0000-5200 S. Harbor Lot Increaed due to increased activity and enforcement (90,878)$ 13000-0000-5201 N. Harbor Lot Budget Adj. due to low activity. 13,545$ 13000-0000-5207 Miscellaneous Parking Fees Increase due parking enforecement 135,438$ 13000- 0000- 5212 Fines - Parking Tickets Increase due parking enforecement 101,568$ 13000-0000-5202 N.E. Ramp Lot Increaed due to increased activity and enforcement 258,209$ Estimated Revenue Increase Amount Department Account Name Description -$ Estimated Expenditure Increase 258,209$ Estimated Net Impact Expenditure Increases (Decreases): Revenue Increases (Decreases): City of Seward - Enterprise Funds 2025 Proposed Mid-Cycle Budget Adjustments Schedule "B" ENTERPRISE FUND CHANGES Electric Fund Amount Department Account Name Description 203,520$ 15000-0000-5901 EF Investment Interest Increased rate of return 20,749$ 15000-0000-5905 EF Penalties and Interest Increased rate of return 224,269$ Estimated Revenue Increase Amount Department Account Name Description (304,062)$ 15000-3000-7307 Admin. Exp. - Electric Decrease of the 28% decrease due a reduction form the GF Adm.Exp. (304,062)$ Estimated Expenditure Decrease (79,793)$ Estimated Net Impact Revenue Increases (Decreases): Expenditure Increases (Decreases): City of Seward - Enterprise Funds 2025 Proposed Mid-Cycle Budget Adjustments Schedule "B" ENTERPRISE FUND CHANGES Water Fund Amount Department Account Name Description 145,144$ 17000-0000-5901 EF Investment Interest Increased rate of return 6,709$ 17000-0000-5905 EF Penalties and Interest Increased rate of return 151,853$ Estimated Revenue Increase Amount Department Account Name Description -$ Estimated Expenditure Increase 151,853$ Estimated Net Impact Revenue Increases (Decreases): Expenditure Increases (Decreases): City of Seward - Enterprise Funds 2025 Proposed Mid-Cycle Budget Adjustments Schedule "B" ENTERPRISE FUND CHANGES Wastewater Fund Amount Department Account Name Description 146,667$ 18000-0000-5901 EF Investment Interest Increased rate of return 1,232$ 18000-0000-5905 EF Penalties and Interest Increased rate of return 147,899$ Estimated Revenue Increase Amount Department Account Name Description -$ Estimated Expenditure Increase 147,899$ Estimated Net Impact Expenditure Increases (Decreases): Revenue Increases (Decreases): GENERAL FUND: REVENUE CHANGES: Amount Account Name Account Number Description Amount Account Name Account Number Description 739,093$ Tax Revenue - Sales 01000 0000 4000 0000 00000 Tax revenue growth is driven by stronger economic activity (160,000) Payments in Lieu of Tax 01000 0000 4030 0000 00000 Contract end in 2025 188,968$ Tax Revenue - Real Property 01000 0000 4010 0000 00000 Tax revenue growth is driven by stronger economic activity (304,062) Admin. Exp. - Electric 01000 0000 4304 0000 00000 28% decrease due a reduction form the GF Adm.Exp. 52,139$ Tax Revenue - Personal Property 01000 0000 4011 0000 00000 Tax revenue growth is driven by stronger economic activity (80,000) Gravel Sales 01000 0000 4611 0000 00000 No sales revenue expected for this year 20,000$ Hotel/Motel Room Tax 01000 0000 4020 0000 00000 Increase in hotels/motels in the area 22,545$ Fines and Bails 01000 0000 4400 0000 00000 Increase in law enforcement in the area. 450,000$ GF Interest on Investments 01000 0000 4500 0000 00000 Better-than-expected investments returns. 10,000$ GF Penalties & Interest 01000 0000 4501 0000 00000 Better-than-expected investments returns. 35,000$ GF Misc Interest Revenue 01000 0000 4503 0000 00000 Better-than-expected investments returns. 20,000$ Franchise Fee - Refuse 01000 0000 4620 0000 00000 Growth in Commercial and residential units. 30,000$ Building Permits 01000 1250 4100 0000 00000 Increase due to development in the area. 10,000$ Puchasing Card Rebate Program Revenue 01000 0000 4634 0000 00000 New Rebate program from the PCard 1,577,745$ Estimated Revenue Increase (544,062)$ Estimated Revenue Decrease 1,577,745$ Estimated Revenue Increases (544,062)$ Estimated Revenue Decreases 1,033,683$ Estimated Net (Decrease) in Revenues City of Seward - General Fund 2026 Proposed Mid-Cycle Budget Adjustments Schedule "A" Revenue Increases:Revenue Decreases: GENERAL FUND: City of Seward - General Fund 2026 Proposed Mid-Cycle Budget Adjustments Schedule "A" EXPENDITURE CHANGES: Amount Account Name Account Number Description Amount Account Name Account Number Description 18,350$ Various- Personnel-P&Z Dept 01000-1115-6XXX Increase in Personnel Expense (124,319) Contingency -Street Dept.01000-1310-7807 To correct Expense Line 850$ Insurance-P&Z Dept 01000-1115-7004 Increase insurance (261,905) Various- Depts 14XX Parks and Rec.01000-14XX-6XXX Adjustment to distribute and allocate personnel expenses in different departments 113,014$ Various- City Manager Dept.01000-1120-XXXX Personnel benefit adj. & CM Contract Res.2025-087 (18,563) Various- Depts 14XX Parks and Rec.01000-14XX-6XXX Adjustment to distribute and allocate personnel expenses in different departments 40,000$ Salary Exp.-IT Dept.01000-1121-6000 Personnel cost correction (145.00) Various- Depts 14XX Parks and Rec.01000-14XX-6XXX Adjustment to distribute and allocate personnel expenses in different departments 12,700$ Health Insurance - Community Dev.Dept 01000-1122-6202 Personnel benefit adj. (6,160.00) Various- Depts 14XX Parks and Rec.01000-14XX-6XXX Adjustment to distribute and allocate personnel expenses in different departments 36,400$ Various- Personnel -Police Dept.01000-1210-6XXX Salary and Overtime needed (40,910.00) Various- Depts 14XX Parks and Rec.01000-14XX-6XXX Adjustment to distribute and allocate personnel expenses in different departments 29,000$ Software/SaaS Subscriptions - General Services - Dept 01000-1180-7022 OpenGov Contract (61,848.00) Various- Depts 14XX Parks and Rec.01000-14XX-6XXX Adjustment to distribute and allocate personnel expenses in different departments 37,000$ Towing fees and Software /Sas Subscriptions-Police Dept.01000-1210-7XXX Increase in Towing fees and Software /Sas Subscriptions (6,120.00) Unemployment Insurance- Library Dept.01000-15000-6101 Entire Budget Adjustment 15,000$ Various- Personnel -Animal Control Dept.01000-1212-6XXX Personnel cost adjustment 167,240$ Various- Personnel - Dispatch Dept.01000-1213-6XXX Personnel cost adjustment 20,000$ Workers Comp -Fire Dept.01000-1220-6102 Workers Comp Adj. 10,000$ Operating Supplies - Fire Dept.01000-1220-7215 Medical Supplies 4,100$ Volunteer Fireman Stipend - Fire Volunteer Dept.01000-1221-7806 Increase of Volunteers Contribution 772,823$ Various- Depts 14XX Parks and Rec.01000-14XX-6XXX Adjustment to distribute and allocate personnel expenses in different departments 75,000$ Various- Personnel- Rec Room Dept.01000-1431-6XXX Funding TYC Position (2nd) 202,176$ Dept. 1500 Library Dept.01000-15000-XXXX Entire Budget Adjustment (519,970)$ Estimated Expenditure Decrease 1,553,653$ Estimated Expenditure Increase 1,553,653$ Estimated Expenditure Increases (519,970)$ Estimated Expenditure Decreases 1,033,683$ Estimated Net (Decrease) in Expenditures and Transfers Out Estimated Net Change in Fund Balance 1,033,683 Estimated Net (Decrease) in Revenues 1,033,683 Estimated Net (Decrease) in Expenditures -$ Estimated net change in fund balance Expenditure Increases:Expenditure Decreases: