HomeMy WebLinkAboutRes2011-085 Sponsored by: Administration
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CITY OF SEWARD, ALASKA
RESOLUTION 2011 -085
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ADOPTING THE WATER ENTERPRISE FUND BIENNIAL
BUDGET FOR CALENDAR YEARS 2012 AND 2013
WHEREAS, the Seward City Council met on August 23, 2011 and September 12, 2011
to authorize budget policies and provide budget guidance to the administration, and conducted no
less than eight extensive work sessions for the purpose of discussing enterprise fund capital
infrastructure needs and rate reviews; and
WHEREAS, on September 12, 2011, the City Manager submitted to the City Council a
proposed biennial budget for the City of Seward for Calendar Years 2012 and 2013; and,
WHEREAS, the biennial budget was introduced at the regularly scheduled Council
meeting on September 12, 2011, and work sessions were conducted and televised; and
WHEREAS, a public hearing was held on the proposed budget on November 14, 2011
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with final adoption scheduled for December 12, 2011.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. The Water Enterprise Fund budget for Calendar Years 2012 and 2013 which
is attached hereto and made a part hereof by reference and which contains estimated revenues
and expenses for the period January 1, 2012 - December 31, 2013, 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 12`
day of December, 2011.
THE CITY OF SEWARD, ALASKA
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D s ea . r d, M.yor
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -085
AYES: Valdatta, Bardarson, Keil, Shafer, Casagranda, Terry, Seaward
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
(4.`
• Zanna Kinn , CMC
ty Clerk
(City Seal)
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WATER ENTERPRISE FUND
Budgeted Statement of Revenues and Expenses
and Change in Net Assets
For Fiscal Year 20I2 and 20I3
20I0 20II 20I2 2013
Actual * Budget Budget Budget
Operating revenue:
Residential 375,22I 396,521 397,858 421,729
Small General Service
104,175 123,362 106,113 I I 2,480
Large General Service I71,312 165,217
SMIC Sales 176,208 I86,780
58,343 66,087 63,553 67,366
Industrial Sales 168,915 143,188
Miscellaneous 164,921 174,816
iscellaneous
95,659 60,500 65,750 65,850
Charges for Services 61,263 88,1I5
operating revenue: 84,500 87,000
Total
° p g $I,034,888 $I,042,990 $I,058,903 $I,I16,02I
Operating expense before depreciation:
Salaries & Benefits 273,392 360,385 338,568
Purchased services 340,247
244,080 595,500 271,435 276,855
Supplies & Maintenance 82,381 138,600 94,345
General & Administrative 96,130
246,493 275,I44 268,334 267,695
Total operating expense: $846,346 $I,369,629 $972,682 $980,927
Operating income before depreciation I88,542 - 326,639 86,221
Depreciation 135,094
204,604 (c) 202,133 (d) 208,527 I98,883
Operating income (loss) -$16,062 - $528,772 - $I22,306
r r - $63,789
Non - operating revenues (expenses)
Interest income 36,2I5 68,000 67,000
Other revenue 67,000
8,776 0 0 0
Interest expense - 39,793 - 46,602 - I59,482 - 39,764
Total non - operating revenues (expenses) $5,I98 $2I,398 - $92,482 $27,236
Earnings before transfers and contributions - $I0,864 - $507,374 - $2I4,788
- $36,553
Transfers Out - 88,291 - 89,460 - 300,527 - 295,66I
Transfers In 0 0 0
Capital contributions and special items 94I 0
941,943 0 0 0
Change in net assets $842,788 - $596,834 - $5I5,3I5
- $332,2I4
Beginning net assets $5,568,643 $6,411,431 $5,8I4,597
$5,299,282
Ending net assets $6,411,431 * $5,8I4,597 $5,299,282
$4,967,068
* Ties to annual Comprehensive Annual Financial Report
Of total depreciation expense, the following amounts were attributable to capital assets funded with capital contributions:
(a) $29,439 or 14 %; (b) $27,653 or 14 %; (c) $27,653 or I3 %; (d) $27,653 or 14%
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CITY OF SEWARD
WATER ENTERPRISE FUND
Budgeted Statement of Cash Flow -
For Fiscal Year 2012 and 2013
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2011 2012 2013
Budget Budget Budget
Beginning cash balance at 1 /1 /11: * $I,604,28I
Cash is provided by (used for):
Change in net assets - $596,834 - $5I5,315 - $332,2I4
Add expense items not affecting cash:
Depreciation 202,133 208,527 198,883
Net cash provided by (used for) operations - $394,701 - $306,788 - $133,33I
Other uses of cash
Debt principal payments - 142,534 -1,903 - 12I,621
Capital outlay - 40,000 0 (a) 0 (a)
Net increase (decrease) in cash - $577,235 (b) - $308,691 - $254,952
Estimated ending cash balance $I,027,046 $7I8,355 $463,403
( °) Ties to CAFR and includes only Water Enterprise Fund; excludes related capital projects. See below.
(a) No money available for equipment or infrastructure work.
(b) Anticipate department head will seek 2011 budget modification to shift 2011 costs to 2012 improving 2011 deficit picture.
Notes:
Water Fund is transferring I00% of depreciation to MRRF ($208,527 n 20I2 and $ 198,883 in 2013), because of critical and
high risk capital needs, with only $4,0I9 in funding in the MRRF Fund.
Water Enterprise Fund is carrying a loan receivable from the SMH Debt Service Reserve of $ I.9 million.