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HomeMy WebLinkAboutRes2015-097 Sponsored by: Hunt Public Hearing: October 26, 2015 Additional Public Hearing: November 9, 2015 Adoption: November 9, 2015 CITY OF SEWARD,ALASKA RESOLUTION 2015-097 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING THE WATER ENTERPRISE FUND BIENNIAL BUDGET FOR CALENDAR YEARS 2016 AND 2017 WHEREAS, the City Manager has submitted to the City Council a proposed biennial budget for the City of Seward for Calendar Years 2016 and 2017; and WHEREAS, the preliminary biennial budget was reviewed by the City Council in budget work sessions on October 7, 8, 9 and 16, 2015, which were televised to the public; and WHEREAS, a public hearing is scheduled on the proposed budget for October 26 with public hearing and final adoption scheduled for November 9, 2015; and WHEREAS, the water enterprise fund has begun repaying debt on a major Third Avenue water main loan, necessitating rate increases to cover the cost of debt service and other operational needs, with rates slated to rise 4.3% in 2016 (five-year average CPI of 2.3% plus 2%)and 2.4% (five-year average CPI) in 2017. 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 2016 and 2017 which is attached hereto and made a part hereof by reference and which contains estimated revenues and expenses for the period January 1, 2016 - December 31, 2017, 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 9th day of November, 2015. CITY OF SEWARD, ALASKA RESOLUTION 2015-097 THE CITY OF SEWARD,ALASKA 46'- �✓ can Bardarson, Mayor AYES: Keil, Casagranda, Squires, Butts, Altermatt, McClure, Bardarson NOES: None ABSENT: None ABSTAIN: None ATTEST: J i hanna Key, CMC ity Clerk I (City Seal) .••.( OF SEI�{�,4 Ie F • :mss •. • —�_ O _ • • S • EAL , • • ,.r,_ . 0 �'• -.,:st,..;:zAlp , fib. . ti•lF 0.. Arr...', WATER ENTERPRISE FUND Budgeted Statement of Revenues and Expenses and Change in Net Position For Fiscal Year 2016 and 20I7 2014 2015 20I6 20I7 Actual* Budget Budget Budget Operating revenue: Residential 440,828 444,511 442,900 453,600 Small General Service 110,312 I30,921 124,655 I27,650 Large General Service 201,030 225,474 210,550 2I5,603 SMIC Sales 45,I4I 64,I03 57,825 59,210 Industrial Sales 236,152 3I4,263 272,200 278,700 Miscellaneous 137,058 63,787 89,845 91,000 Charges for Services 57,I I0 99,792 80,500 82,500 Total operating revenue: $1,227,631 $I,342,85I $1,278,475 $1,308,263 Operating expense before depreciation: Salaries&Benefits 381,246 393,353 429,124 430,816 Purchased services 231,930 393,600 443,500 396,000 Supplies&Maintenance 63,945 97,100 94,700 97,200 General&Administrative 268,904 269,111 279,954 279,950 Total operating expense: $946,025 $I,153,I64 $1,247,278 $I,203,966 Operating income before depreciation 281,606 189,687 31,I97 104,297 Depreciation 202,548 199,238 192,000 I87,000 Operating income(loss) $79,058 -$9,551 -$160,803 -$82,703 Non-operating revenues(expenses) Interest income 38,268 I0,000 5,000 5,000 Other revenue 76,851 0 2,000 2,000 Interest expense -28,071 -27,286 -25,689 -23,694 Total non-operating revenues(expenses) $87,048 -$17,286 -$I8,689 -$16,694 Earnings before transfers and contributions $166,106 -$26,837 -$I79,492 -$99,397 Transfers Out -600,748 -113,401 -109,950 -I14,636 Transfers In 98,010 0 0 0 Capital contributions and special items 0 0 0 0 Change in net position -$336,632 -$140,238 -$289,442 -$214,033 Beginning net position $6,290,14I $5,953,509 $5,8I3,271 $5,523,829 Ending net position $5,953,509 ' $5,813,271 $5,523,829 $5,309,796 * Ties to annual Comprehensive Annual Financial Report CITY OF SEWARD WA1"E,R ENTERPRISE FUND Budgeted Statement of Cash Flow For Fiscal Year. 2016 and 20I7 2015 2016 2017 Budget Budget Budget Beginning cash balance at 1/1/15: $1,050,027 Cash is provided by(used for): Change in net position (I40238) (289,442) (214,033) Add expense items not affecting cash: Depreciation 199,238 I92,000 187,000 Net cash provided by (used for)operations 59,000 (97,442) (27,033) Other sources (uses) of cash Debt principal payments (170,31I) (180,072) (181,388) Capital outlay (4,500) Net increase(decrease)in cash (1I5,811) (277,5I4) (208,421) Estimated ending cash balance $934,216 $656,702 $448,28I (*) Ties to CAFR and includes only Water Enterprise Fund;excludes related capital projects. Water Fund is not able to transfer funds to MRRF in 2016 or 20I7 due to new 3rd Ave.Water Line debt payments. Foregoing payments into Motor Pool in 20I6 and 20I7. $50,000 contribution from Water MRRF Fund proposed to pay for a portion of two vehicles being requested in 20I6. Note: Cash Balance in Water MRRF Fund at I/I/I5 is$1,711,429. May increase by$500,000 if no local funds needed for lagoon project,due to State loan at 1.5%interest. City of Seward 1:10/13/2015 at 12:09 PM Water Enterprise Fund Page: 4 Revenue Detail by Line Item For 9/30/2015 2016 2017 2014 2015 Budget 2015-16 Budget 2016-17 Actual Budget Request %Chg Request %Chg R ue Residential 440,827 444,511 442,900 (0.36) 453,600 2.42 SG Service 110,312 130,921 124,655 (4.79) 127,650 2.40 LG Service 201,030 225,474 210,550 (6.62) 215,603 2.40 SMIC Sales 45,142 64,103 57,825 (9.79) 59,210 2.40 Spec.Contracts 236,152 314,263 272,200 (13.38) 278,700 2.39 Turn on Fees 9,953 4,784 9,700 102.76 10,000 3.09 Ship Water 57,111 99,792 80,500 (19.33) 82,500 2.48 Hydrant Rentals 57,822 58,703 70,145 19.49 71,000 1.22 Miscellaneous Revenue 69,284 300 10,000 3,233.33 10,000 0.00 EF Investment Interest 29,765 10,000 5,000 (50.00) 5,000 0.00 EF Penalties and Interest 8,503 0 2,000 0.00 2,000 0.00 PERS On-behalf paid by SOA 76,851 0 0 0.00 0 0.00 Amort.of CIA-General 0 22,223 22,223 0.00 22,223 _ 0.00 Total Revenues $1,342,752 $1,375,074 $ 1,307,698 $,251.31 $ 1,337,486 $ 18.80 City of Seward am:10/13/2015 at 1:10 PM 17000-Water Enterprise Fund : 1 Expense Summary by Line Item For 9/30/2015 2016 2017 2014 2015 Budget 2015-16 Budget 2016-17 Actual Budget Request %Chg Request %Chg Expenditures!Expenses 17000 6000 Salaries 153,434 217,622 222,990 2.47 222,990 0.00 17000 6001 Overtime 3,739 4,605 4,606 0.02 4,606 0.00 17000 6002 Standby Time 9,806 11,079 11,081 0.02 11,081 0.00 17000 6100 Medicare 2,271 3,162 3,652 15.50 3,652 0.00 17000 6102 Workers'Compensation 8,648 11,336 8,690 (23.34) 9,250 6.44 17000 6200 Leave Time 20,877 14,691 23,501 59.97 23,501 0.00 17000 6201 Retirement Benefits 114,380 53,652 60,014 11.86 61,146 1.89 17000 6202 Health Insurance 68,007 76,712 94,096 22.66 94,096 0.00 17000 6203 In Lieu of FICA 84 494 494 (0.01) 494 0.00 170007001 Communications 9,294 10,500 12,000 14.29 12,000 0.00 17000 7002 Postage and Freight 4,825 6,750 6,500 (3.70) 6,500 0.00 17000 7003 Bank and Credit Card Fees 5,548 4,500 6,000 33.33 6,000 0,00 17000 7004 Insurance 9,132 8,400 10,000 19.05 10,000 0.00 17000 7006 Legal 929 5,500 6,000 9.09 6,000 0.00 17000 7009 Contracted Services 3,100 104,000 135,000 29.81 80,000 (40.74) 170007011 Testing 9,854 11,450 11,000 (3.93) 11,500 4,55 17000 7015 Utilities 192,349 242,500 257,000 5.98 264,000 2.72 17000 7211 Gas&Lube 9,851 10,400 10,500 0.96 10,500 0.00 17000 7213 Safety Equipment 1,675 2,750 3,000 9.09 3,000 0.00 17000 7215 Operating Supplies 23,719 43,000 46,000 6.98 48,500 5.43 17000 7216 Maintenance&Repair 20,342 33,000 28,500 (13.64) 28,500 0.00 17000 7217 Small Tools&Equipment 5,258 7,950 6,700 (15.72) 6,700 0.00 17000 7300 Advertising 0 2,000 1,500 (25.00) 1,500 0.00 17000 7301 Subscriptions&Dues 2,151 1,300 1,750 34.62 1,750 0.00 17000 7302 Travel&Subsistence 4,247 5,600 5,600 0.00 5,600 0.00 17000 7303 Education&Training 2,411 6,600 5,600 (15.15) 5,600 0.00 17000 7304 Equipment Rent 5,625 9,500 10,000 5.26 10,000 0.00 17000 7307 GF Administrative Fee 238,419 239,611 251,004 4.75 251,000 0.00 17000 7330 P.I.LT. 94,775 107,428 108,663 1.15 108,663 0.00 17000 7331 Rectass PILT to Transfer-Out (94,775) (107,428) (108,663) 1.15 (108,663) 0.00 17000 7808 Bad Debt Expense 1,395 2,000 2,000 0.00 2,000 0.00 17000 7810 Miscellaneous Expense 10,532 2,500 2,500 0.00 2,500 0.00 17000 7900 Depredation Expense 0 196,340 192,000 (2.21) 187,000 (2.60) 17000 8012 Debt Service Interest Expense (99,262) 27,286 25,689 (5.85) 23,694 (7.77) 17000 8103 Capital Equipment 0 0 0 0.00 0 0.00 17000 8104 Motor Pool Rent 4,125 4,500 0 (100.00) 0 0.00 17000 8300 Debt Service Principal 127,334 127,774 132,966 4.06 133,150 0.14 Total Expenditures/Expenses $ 974,099 $ 1,509,064 $ 1,597,933 $ 83.52$ 1,547,810 $ (29.94) Run:10/1312015 at 1:14 PM Expenditure Detail by Department Water Enterprise Fund Water-General For 913012015 2015 2017 2014 2015 Budget 2015-16 Budget 2016-17 Actual Budget Request %Chg Request %Chg Total Expenditures Personnel Costs: 17000 6000 Salaries 137,160 177,899 191,261 7.51 191,261 0.00 17000 6001 Overtime 3,232 4,125 3,846 (6.76) 3,846 0.00 17000 6002 Standby Time 9,806 11,079 11,081 0,02 11,081 0.00 17000 6100 Medicare 2,025 2,569 3,122 21.53 3,122 0.00 17000 6102 Workers'Compensation 7,593 8,944 6,801 (23.96) 7,625 12.12 17000 6200 Leave Time 20,877 14,691 23,501 59.97 23,501 0.00 17000 6201 Retirement Benefits 30,679 7,746 11,804 52.39 11,804 0.00 17000 6202 Health Insurance 61,620 68,782 83,095 20.81 83,095 0.00 17000 6203 In Lieu of FICA 84 494 494 (0.01) 494 0.00 Total Personnel Costs: $ 273,076 $ 296,329 $ 335,005 $ 131.50 $ 335,829 $ 12.12 Non-Personnel Costs: 17000 7001 Communications 9,294 10,500 12,000 14.29 12,000 0.00 17000 7002 Postage and Freight 4,825 6,250 6,000 (4.00) 6,000 0.00 17000 7003 Bank and Credit Card Fees 5,548 4,500 6,000 33.33 6,000 0.00 17000 7004 Insurance 8,315 8,400 9,000 7.14 9,000 0.00 17000 7006 Legal 929 5,500 6,000 9.09 6,000 0.00 17000 7009 Contracted Services 662 100,000 100,000 0.00 50,000 (50.00) 17000 7011 Testing 8,934 9,750 9,000 (7,69) 9,500 5.56 17000 7015 Utilities 165,656 212,500 225,000 5.88 230,000 2.22 17000 7211 Gas&Lube 9,574 9,750 10,000 2.56 10,000 0.00 17000 7213 Safety Equipment 1,175 2,000 2,500 25.00 2,500 0.00 17000 7215 Operating Supplies 22,687 39,000 42,000 7.69 44,000 4.76 17000 7216 Maintenance&Repair 20,227 30,000 25,000 (16.67) 25,000 0.00 17000 7217 Small Tools&Equipment 5,258 7,250 6,000 (17.24) 6,000 0.00 17000 7300 Advertising 0 2,000 1,500 (25.00) 1,500 0.00 17000 7301 Subscriptions&Dues 2,010 1,300 1,500 15.39 1,500 0.00 17000 7302 Travel&Subsistence 4,211 5,000 5,000 0.00 5,000 0.00 17000 7303 Education&Training 2,411 6,000 5,000 (16.67) 5,000 0.00 17000 7304 Equipment Rent 5,625 9,500 10,000 5,26 10,000 0.00 17000 7307 GF Administrative Fee 238,419 239,611 251,004 4.75 251,000 0.00 17000 7330 P.I.L.T. 94,775 107,428 108,663 1.15 108,663 0.00 17000 7331 Reclass PILT to Transfer-Out (94,775) (107,428) (108,663) 1.15 (108,663) 0.00 17000 7808 Bad Debt Expense 1,395 2,000 2,000 0.00 2,000 0.00 17000 7810 Miscellaneous Expense 10,532 2,000 2,000 0.00 2,000 0.00 17000 7900 Depreciation Expense 0 189,382 185,000 (2.31) 180,000 (2.70) 17000 8103 Capital Equipment 0 0 0 0.00 0 0.00 17000 8104 Motor Pool Rent 4,125 4,500 0 (100.00) 0 0.00 Total Non-Personnel Costs: 5 531,812 $ 906,693 S 921,504 $ (56.90) $ 874,000 $ (40.16) Total Expenditures $ 804,888 $ 1,203,022 $ 1,256,509 $ 74.60 $ 1,209,829 $ (28.04) Run:10/1312015 at 1:14 PM Expenditure Detail by Department Water Enterprise Fund Water-SMIC For 913012015 2016 2017 2014 2015 Budget 2015-16 Budget 2016-17 Actual Budget Request %Chg Request %Chg Total Expenditures Personnel Costs: 17000 6000 Salaries 16,274 39723 31,729 (20.12) 31,729 0.00 17000 6001 Overtime 506 480 760 58.33 760 0.00 17000 6100 Medicare 246 593 530 (10.63) 530 0.00 17000 6102 Workers'Compensation 1,055 2,392 1,889 (21.03) 1,625 (13.98) 170006201 Retirement Benefits 1,258 1,481 1,104 (25.46) 1,104 0.00 17000 6202 Health Insurance 6,387 7,930 11,001 38.73 11,001 0,00 Total Personnel Costs: $ 25,726 $ 52,599 $ 47,013 $ 19.82 $ 46,749 $ (13.98) Non-Personnel Costs: 17000 7002 Postage and Freight 0 500 500 (0.01) 500 0.00 170007004 Insurance 816 0 1,000 0.00 1,000 0.00 17000 7009 Contracted Services 2,438 4,000 35,000 775.01 30,000 (14.29) 170007011 Testing 920 1,700 2,000 17.64 2,000 0.00 17000 7015 Utilities 26,693 30,000 32,000 6.67 34,000 6.25 17000 7211 Gas&Lube 277 650 500 (23.08) 500 0.00 17000 7213 Safety Equipment 501 750 500 (33.33) 500 0.00 17000 7215 Operating Supplies 1,032 4,000 4,000 0.00 4,500 12.50 17000 7216 Maintenance&Repair 115 3,000 3,500 16.67 3,500 0.00 17000 7217 Small Tools&Equipment 0 700 700 0.01 700 0.00 17000 7301 Subscriptions&Dues 141 0 250 0.00 250 0.00 17000 7302 Travel&Subsistence 36 600 600 0.00 600 0.00 17000 7303 Education&Training 0 600 600 0.00 600 0.00 17000 7810 Miscellaneous Expense 0 500 500 (0.01) 500 0.00 17000 7900 Depreciation Expense 0 6,958 7,000 0.60 7,000 0.00 17000 8103 Capital Equipment 0 0 0 0.00_ 0 0.00 Total Non-Personnel Costs: $ 32,969 $ 53,958 $ 88,650 $ 760.17 $ 86,150 $ 4.46 Total Expenditures $ 58,695 $ 106,557 $ 135,663 $779.99 $ 132,899 $ (9.52) Run:10113/2015 at 1:14 PM Expenditure Detail by Department Water Enterprise Fund Water Debt Service For 913012015 2016 2017 2014 2015 Budget 2015-16 Budget 2016-17 Actual Budget Request %Chg Request %Chg Total Expenditures Personnel Costs: 17000 6201 Retirement Benefits 82,442 44,425 47,106 6.03 48,238 240 Total Personnel Costs: $ 82,442 $ 44,425 $ 47,106 $ 6.03 $ 48,238 $ 2.40 Non-Personnel Costs: 17000 8012 Debt Service interest Expense (99,262) 27,286 25,689 (5.85) 23,694 (7.77) 17000 8300 Debt Service Principal 127,334 127,774 132,966 4.06 133,150 0.14 Total Non-Personnel Costs: $ 28,072 $ 155,060 $ 158,655 $ (1.79) $ 156,844 $ (7.63) Total Expenditures $ 110,514 $ 199,485 $ 205,761 $ 4.24 $ 205,082 $ (5.23) r CITY OF SEWARD WATER ENTERPRISE FUND 2016 and 2017 Debt Service Schedule Balance 2016 Budget Balance Description Interest Rate @ 1/01/16 Principal Interest Retirement Total @ 12/31/16 Term Third Avenue Water Line DEC Loan 1.50% 1,712,561 132,966 25,689 158,655 1,579,595 2007-2027 PERS Past Service Cost 47,106 47,106 Totals: $1,712,561 $132,966 $25,689 $47,106 $205,761 $1,579,595 Balance 2017 Budget Balance Description Interest Rate @ 1/01/17 Principal Interest Retirement Total @ 12/31/17 Term Third Avenue Water Line DEC Loan 1.50% 1,579,595 133,150 23,694 156,844 1,446,445 2007-2027 PERS Past Service Cost 48,238 48,238 Totals: $1,579,595 $133,150 $23,694 $48,238 $205,082 $1,446,445 CITY OF SEWARD WATER ENTERPRISE FUND Budgeted Interfund Transfers Fiscal Year 2016 and 2017 2016 2017 Transfers- Transfers- Tra nsfers- Transfers- In Out In Out General Fund: Federal and state lobbying $5,973 $5,973 Payments-in-Lieu-of-Tax 103,977 108,663 $0 $109,950 $0 $114,636