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HomeMy WebLinkAboutRes2015-098 Sponsored by: Hunt Public Hearing: October 26, 2015 Additional Public Hearing: November 9, 2015 Adoption: November 9, 2015 CITY OF SEWARD,ALASKA RESOLUTION 2015-098 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING THE WASTEWATER 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, recent sewer lagoon failures have necessitated incurring additional debt to conduct major repairs; and WHEREAS, the 2016 budget includes a rate increase of 4.3%representing the five-year average CPI of 2.3%plus 2%, and the 2017 budget includes a rate increase of 4.4%representing the five-year average CPI of 2.4% plus 2%, with future additional rate increases needed to meet only operating and debt service needs. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA,that: Section 1. The Wastewater 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 2015-098 THE CITY OF SEWARD,ALASKA ç (lJ1) 0 can Bardarson, Mayor AYES: Keil, Casagranda, Squires, Butts, Alterman, McClure, Bardarson NOES: None ABSENT: None ABSTAIN: None ATTEST: Js annaWey, CMC Pity Clerk (City Seal) 1 --a- O • SEAL I • • ti •ti• TF OF PO'•''^ WASTEWAI-ER ENI ERPRISE FUND Budgeted Statement of Revenues and Expenses and Change in Net Position For Fiscal Year 2016 and 2017 2014 2015 2016 20I7 Actual* Budget Budget Budget Operating revenues: Residential 568,985 560,820 6I5,300 620,000 Small General Service 165,574 I71,19I I92,000 200,000 Large General Service 244,239 257,112 276,000 289,000 SMIC Sales 34,370 33,746 37,000 38,400 Miscellaneous 3,722 1,000 2,500 2,500 Total operating revenues: $I,0I6,890 $I,023,869 $1,I22,800 $1,149,900 Operating expenses before depreciation: Salaries&Benefits 364,932 292,938 323,788 327,709 Purchased services 309,408 336,400 409,450 404,450 Supplies&Maintenance 57,507 60,100 70,900 70,900 General&Administrative 164,020 I58,378 169,444 I86,536 Total Operating Expenses: $895,867 $847,816 $973,582 $989,595 Operating income before depreciation 121,023 176,053 I49,218 160,305 Depreciation 222,789 209,861 205,925 205,925 Operating Income(Loss) ($101,766) ($33,808) ($56,707) ($45,620) Non-operating revenues(expenses) Interest income 4,888 2,700 3,500 3,500 Interest expense -I I -30,070 -20,829 -16,985 Other non-operating revenue 62,773 59,2I6 0 0 Total non-operating revenues(expenses) $67,650 $31,846 ($17,329) ($13,485) Income(loss)before operating transfers ($34,II6) ($I,962) ($74,036) ($59,I05) Capital contributions and special item 0 0 0 0 Net transfers In(Out) 412,676 (92,I43) (83,797) (85,965) Change in net position $378,560 ($94,I05) ($157,833) ($I45,070) Beginning net position $5,373,16I $5,751,721 $5,657,616 $5,499,783 Ending net position $5,751,72I * $5,657,6I6 $5,499,783 $5,354,713 * Ties to annual Comprehensive Annual Financial Report CITY OF SEWARD WASTEWA"l ER ENTERPRISE FUND Budgeted Statement of Cash Flow For Fiscal Year 2016 and 2017 2015 2016 2017 Budget Budget Budget Beginning cash balance at I/I/15:* $123,640 Cash is provided by(used for): Change in net position (94,105) (157,833) (145,070) Add expense items not affecting cash Depreciation 209,861 205,925 205,925 Net cash provided by(used for)operations $115,756 $48,092 $60,855 Other uses of cash Debt principal payments (6I,022) (51,689) (a) (52,475) (b) Capital outlay (4,500) 0 (c) 0 (d) Net increase(decrease)in cash $50,234 ($3,597) $8,380 Estimated ending cash balance $173,874 $170,277 $I78,657 (*) Ties to CAFR and includes only Wastewater Enterprise Fund;excludes related capital projects. See below. (a)Sewer Lagoon new loans(2016)-$51,689 (b)Sewer Lagoon new loans(2016)-$52,475 (c)No Motor Pool contributions,equipment purchases or MRRF Contributions in 2016 or 2017. (d)No Motor Pool contributions,equipment purchases or MRRF Contributions in 2016 or 2017. Notc Cash Balance in Wastewater MRRF Fund at 1/1/15 is$I69,982 City of Seward i:10/13/2015 at 12:09 PM Wastewater Enterprise Fund Page: 5 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 Retinal Residential 568,985 589,983 615,300 4.29 620,000 0.76 SG Service 165,574 180,093 192,000 6.61 200,000 4.17 LG Service 244,239 270,482 276,000 2,04 289,000 4.71 SMIC Sales 34,370 35,501 37,000 4,22 38,400 3.78 Work Order Revenue 896 0 0 0.00 0 0.00 Sewer-Inspection 0 526 0 (100.00) 0 0.00 Water/Seward Misc.Service 2,826 526 2,500 375.32 2,500 0.00 EF Investment Interest 3,164 1,200 2,000 66.67 2,000 0.00 EF Penalties and Interest 1,724 1,500 1,500 0.00 1,500 0.00 PERS On-behalf paid by SOA 62,773 0 0 0.00 0 0.00 Amort.of CIA-General 0 164,613 264,000 60.38 264,000 0.00 Total Revenues $1,084,551 $1,244,424 $1,390,300 $419.53 $ 1,417,400 $ 13.42 City of Seward iun:10/13/2015 at 1:17 PM 18000-Wastewater Enterprise Fund Page: 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 18000 6000 Salaries 154,223 159,678 169,013 5.85 169,013 0.00 180006001 Overtime 7,866 3,170 3,170 0.00 3,170 0.00 18000 6002 Standby Time 6,513 6,491 6,492 0.01 6,492 0.00 18000 6100 Medicare 2,220 2,236 2,735 22.31 2,735 0.00 18000 6102 Workers'Compensation 7,881 9,657 8,740 (9.50) 9,250 5.84 18000 6200 Leave Time 18,677 14,894 16,961 13.88 16,961 0.00 18000 6201 Retirement Benefits 101,862 39,603 22,087 (44.23) 22,038 (0.22) 18000 6202 Health Insurance 65,606 56,715 94,096 65.91 97,556 3.68 18000 6203 In Lieu of FICA 84 494 494 (0.01) 494 0.00 18000 7001 Communications 6,446 8,700 8,500 (2.30) 8,500 0.00 18000 7002 Postage and Freight 5,794 4,000 5,250 31.25 5,250 0.00 18000 7003 Bank and Credit Card Fees 7,130 5,700 5,700 0.00 5,700 0.00 180007004 Insurance 6,140 6,500 7,500 15.38 7,500 0.00 18000 7006 Legal 929 5,000 15,000 200.00 15,000 0.00 18000 7009 Contracted Services 78,981 87,000 115,000 32.18 115,000 0.00 18000 7011 Testing 24,028 20,200 25,500 26.24 25,500 0.00 18000 7015 Utilities 176,936 197,000 223,000 13.20 218,000 (2.24) 18000 7016 Heating Fuel 3,024 1,800 3,500 94.44 3,500 0.00 18000 7017 Rents&Leases 0 500 500 (0.01) 500 0.00 18000 7211 Gas&Lube 11,345 8,800 10,900 23.86 10,900 0.00 18000 7213 Safety Equipment 1,424 300 1,500 400.00 1,500 0.00 18000 7215 Operating Supplies 21,121 14,500 19,500 34.48 19,500 0.00 18000 7216 Maintenance&Repair 5,257 33,500 34,500 2.98 34,500 0.00 18000 7217 Small Tools&Equipment 18,361 3,000 4,500 50.00 4,500 0.00 18000 7300 Advertising 193 500 500 (0.01) 500 0.00 18000 7301 Subscriptions&Dues 196 1,700 2,750 61.76 2,750 0.00 18000 7302 Travel&Subsistence 4,117 4,000 4,500 12.50 18,000 300.00 18000 7303 Education&Training 214 2,000 3,000 50.00 3,000 0.00 18000 7304 Equipment Rent 5,625 1,100 6,000 445.43 6,000 0.00 18000 7306 In-Kind Expenses 0 0 0 0.00 0 0.00 18000 7307 GF Administrative Fee 145,600 146,328 149,694 2.30 153,286 2.40 18000 7330 P.I.L.T. 81,351 86,170 89,824 4.24 91,992 2.41 18000 7331 Reclass PILT to Transfer-Out (81,351) (86,170) (89,824) 424 (91,992) 2.41 18000 7808 Bad Debt Expense 3,918 1,750 2,000 14.29 2,000 0.00 180007810 Miscellaneous Expense 32 1,000 1,000 0.00 1,000 0.00 18000 7900 Depredation Expense 0 209,861 205,925 (1.88) 205,925 0.00 18000 8012 Debt Service Interest Expense 11 30,070 20,829 (30.73) 16,985 (18.46) 18000 8103 Capital Equipment 0 0 0 0.00 0 0.00 18000 8104 Motor Pool Rent 4,125 4,500 0 (100.00) 0 0.00 18000 8300 Debt Service Principal 0 91,351 128,529 40.70 129,315 0.61 Total Expenditures/Expenses $ 895,879 $ 1,183,598 $ 1,328,865 $,478.76$ 1,341,820 $296.43 Run:10113/2015 at 1:21 PM Expenditure Detail by Department Wastewater Enterprise Fund Wastewater•General For 913012015 2016 2017 2014 2015 Budget 2015-16 Budget 2016-17 Actual Budget Request %Chg Request %Chg Total Expenditures Personnel Costs: 18000 6000 Salaries 135,670 130,390 143,816 10.30 143,816 0.00 18000 6001 Overtime 7,191 2,628 2,771 5.44 2,771 0.00 18000 6002 Standby Time 6,513 6,491 6,492 0,01 6,492 0.00 18000 6100 Medicare 1,941 1,790 2,317 29.44 2,317 0.00 18000 6102 Workers'Compensation 6,687 7,568 6,640 (12.26) 7,445 12.12 18000 6200 Leave Time 18,677 14,894 16,961 13.88 16,961 0.00 18000 6201 Retirement Benefits 26,278 5,568 8,671 55.73 8,671 0.00 18000 6202 Health Insurance 58,480 49,019 82,585 68.4.8 85,585 3.63 18000 6203 In Lieu of FICA 84 494 494 (0.01) 494 0.00 Total Personnel Costs: $ 261,521 $ 218,842 $ 270,747 $ 171.01 $ 274,552 $ 15.75 Non-Personnel Costs: 18000 7001 Communications 6,446 7,500 7,500 0.00 7,500 0.00 18000 7002 Postage and Freight 5,327 2,500 4,250 70.00 4,250 0.00 18000 7003 Bank and Credit Card Fees 7,130 5,700 5,700 0.00 5,700 0.00 180007004 Insurance 5,321 6,500 6,500 0.00 6,500 0.00 18000 7006 Legal 929 5,000 15,000 200.00 15,000 0.00 18000 7009 Contracted Services 57,459 62,000 65,000 4.64 65,000 0.00 18000 7011 Testing 17,043 12,000 16,000 33.33 16,000 0.00 18000 7015 Utilities 130,491 158,000 175,000 10.76 175,000 0.00 18000 7016 Heating Fuel 0 0 2,000 0.00 2,000 0.00 18000 7017 Rents&Leases 0 500 500 (0,01) 500 0.00 18000 7211 Gas&Lube 11,077 8,000 10,000 25.00 10,000 0.00 180007213 Safety Equipment 1,424 300 1,000 233.33 1,000 0.00 18000 7215 Operating Supplies 17,536 8,000 10,000 25.00 10,000 0.00 18000 7216 Maintenance&Repair 4,338 21,000 25,000 19.05 25,000 0.00 18000 7217 Small Tools&Equipment 18,237 500 3,000 499.95 3,000 0.00 18000 7300 Advertising 193 500 500 (0.01) 500 0.00 18000 7301 Subscriptions&Dues 196 1,700 2,000 17.64 2,000 0.00 18000 7302 Travel&Subsistence 3,052 2,500 3,000 20.00 3,000 0.00 18000 7303 Education&Training 214 1,500 2,000 33.33 2,000 0.00 18000 7304 Equipment Rent 5,625 0 5,000 0.00 5,000 0.00 18000 7306 In-Kind Expenses 0 0 0 0.00 0 0.00 18000 7307 GF Administrative Fee 145,600 146,328 149,694 2,30 153,286 2,40 18000 7330 P.I.LT. 81,351 86,170 89,824 4.24 91,992 2.41 18000 7331 Reclass PILT to Transfer-Out (81,351) (86,170) (89,824) 4.24 (91,992) 2,41 18000 7808 Bad Debt Expense 3,918 1,750 2,000 14.29 2,000 0.00 18000 7810 Miscellaneous Expense 32 1,000 1,000 0.00 1,000 0.00 18000 7900 Depreciation Expense 0 208,936 205,000 (1.88) 205,000 0.00 18000 8103 Capital Equipment 0 0 0 0.00 0 0.00 18000 8104 Motor Pool Rent 4,125 4,500 0 (100.00) 0 - 0.00 Total Non-Personnel Costs: $ 445,713 $ 666,214 $ 716,644 $,115,40 $ 720,236 $ 7.22 Total Expenditures $ 707,234 $ 885,056 $ 987,391 $,286.41 $ 994,788 $ 22.97 Run:10/13/2015 at 1:21 PM Expenditure Detail by Department Wastewater Enterprise Fund Wastewater-SMIC For 9/3012015 2016 2017 2014 2015 Budget 2015-16 Budget 2016-17 Actual Budget Request %Chg Request %Chg Total Expenditures Personnel Costs: 18000 6000 Salaries 18,554 29,288 25,197 (13,97) 25,197 0.00 18000 6001 Overtime 675 542 399 (26.39) 399 0.00 18000 6100 Medicare 279 446 418 (6.29) 418 0.00 18000 6102 Workers'Compensation 1,194 2,089 2,100 0.53 1,805 (14.05) 180006201 Retirement Benefits 1,518 1,251 1,236 (1.20) 896 (27.51) 18000 6202 Health Insurance 7,126 7,696 11,511 49.56 11,971 4.00 Total Personnel Costs: $ 29,346 $ 41,312 $ 40,861 $ 2.24 $ 40,686 $ (37.56) Non-Personnel Costs: 180007001 Communications 0 1,200 1,000 (16.67) 1,000 0.00 18000 7002 Postage and Freight 467 1,500 1,000 (33.33) 1,000 0.00 18000 7004 Insurance 819 0 1,000 0.00 1,000 0.00 18000 7009 Contracted Services 21,522 25,000 50,000 100.00 50,000 0.00 18000 7011 Testing 6,985 8,200 9,500 15.85 9,500 0.00 18000 7015 Utilities 46,445 39,000 48,000 23.08 43,000 (10.42) 18000 7016 Heating Fuel 3,024 1,800 1,500 (16.67) 1,500 0.00 18000 7211 Gas&Lube 267 800 900 12.49 900 0.00 18000 7213 Safety Equipment 0 0 500 0.00 500 0.00 18000 7215 Operating Supplies 3,585 6,500 9,500 46.15 9,500 0.00 18000 7216 Maintenance&Repair 919 12,500 9,500 (24.00) 9,500 0.00 18000 7217 Small Tools&Equipment 124 2,500 1,500 (40.00) 1,500 0.00 18000 7301 Subscriptions&Dues 0 0 750 0.00 750 0.00 18000 7302 Travel&Subsistence 1,065 1,500 1,500 0.00 15,000 900.00 18000 7303 Education&Training 0 500 1,000 99,98 1,000 0.00 18000 7304 Equipment Rent 0 1,100 1,000 (9.09) 1,000 0.00 18000 7900 Depreciation Expense 0 925 925 0.00 925 0.00 18000 8103 Capital Equipment 0 0 0 0.00 0 0.00 Total Non-Personnel Costs: $ 85,222 $ 103,025 $ 139,075 $ 157.79 $ 147,575 $ 889.58 Total Expenditures $ 114,568 $ 144,337 $ 179,936 $ 160.03 $ 188,261 $852.02 Run:10/1312015 at 1:21 PM Expenditure Detail by Department Wastewater Enterprise Fund Wastewater Debt Service For 913012015 2016 2017 2014 2015 Budget 2015-18 Budget 2016-17 Actual Budget Request %Chg Request %Chg Total Expenditures personnel Costs: 18000 6201 Retirement Benefits 74,066 32,784 12,180 _ (62.85) 12,471 2.39 Total Personnel Costs: $ 74,066 $ 32,784 $ 12,180 $ (62.85) $ 12,471 $ 2.39 Non-Personnel Cost 18000 8012 Debt Service Interest Expense 11 30,070 20,829 (30.73) 16,985 (18.46) 18000 8300 Debt Service Principal 0 91,351 128,529 40.70 129,315 0.61 Total Non-Personnel Costs: $ 11 $ 121,421 $ 149,358 $ 9.97 $ 146,300 $ (17.85) Total Expenditures $ 74,077 $ 154,205 $ 161,538 $ (52.88) $ 158,771 $ (15.46) CITY OF SEWARD WASTEWATER 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 Lowell Point Sludge Loan est.$750K 1.50% 750,000 32,416 11,129 43,545 717,584 2016-2035 LP&SMIC Sludge Loan 1.50% 445,900 19,273 9,700 28,973 426,627 2016-2035 ' 0.00% .11-24.97-1-50 76;840 0 76,810 1,142,310 -paid-e# PERS Past Service Cost 12,180 12,180 Totals: $2,415,050 $51,689 $20,829 $12,180 $84,698 $2,286,521 Balance 2017 Budget Balance Description Interest Rate @ 1/01/17 Principal Interest Retirement Total @ 12/31/17 Term Lowell Point Sludge Loan est.$750K 1.50% 717,584 32,905 10,645 43,550 684,679 2016-2035 LP&SMIC Sludge Loan 1.50% 426,627 19,570 6,340 25,910 407,057 2016-2035 i to GF to repay 1090 Jett+ 0;00% 1,142,310 76,840 0 6,840 1,065,470 k il-paid-eff PERS Past Service Cost 12,471 12,471 Totals: $2,286,521 $52,475 $16,985 $12,471 $81,931 $2,157,206 The City Council established a repayment schedule in 1999 to repay the General Fund for$1,603,350 loaned to the Wastewater Fund for Lowell Point Sewer Lagoon. Annual payments were approved in the amount of$76,840. Payments go to the Capital Acquisition Fund to ensure they are not used to pay GF operating costs. In 2016 and 2017 loan payments were deferred by Council to provide funding for Lowell Point and SMIC Sewer Lagoons. CITY OF SEWARD WASTEWATER ENTERPRISE FUND Budgeted Interfund Transfers Fiscal Year 2016 and 2017 2014 2015 Transfers- Transfers- Transfers- Transfers- In Out In out General Fund: Federal and state lobbying $5,973 $5,973 Payments-in-Lieu-of-Tax 89,824 91,992 RV dump station payments 12,000 12,000 L.P. Sewer Lagoon loan (a) 0 0 $0 $107,797 $0 $109,965 Net Transfers: ($107,797) ($109,965)