HomeMy WebLinkAboutRes2017-060CITY OF SEWARD, ALASKA Sponsored by: Hunt
RESOLUTION 2017-060
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, ADOPTING THE ELECTRIC ENTERPRISE FUND
BIENNIAL BUDGET FOR CALENDAR YEARS 2018 AND 2019
WHEREAS, the city manager has submitted to the City Council a proposed biennial
budget for the City of Seward for Calendar Years 2018 and 2019; and
WHEREAS, the preliminary biennial budget was reviewed by the City Council in
budget work sessions on September 27, October 2, and October 3, 2017, which were televised to
the public; and
WHEREAS, a public hearing is scheduled on the proposed budget for October 23,
2017, and a second public hearing and final adoption is scheduled for November 27, 2017; and
WHEREAS, the 2018 budget includes a rate increase of 2.1 % to all rate classes,
representing the five-year average CPI, offset by an anticipated Chugach Electric Association
rate decrease of 2.0%, and the 2019 budget includes a rate increase of 1.6% representing the
five-year average CPI; and
WHEREAS, the budget includes proposed increases to the Alaska SeaLife Center
special electrical contract rate, which shall come before the Seward City Council for approval
via separate resolution.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. The Electric Enterprise Fund budget for Calendar Years 2018 and 2019
which is attached hereto and made a part hereof by reference and which contains estimated
revenues and expenses for the period January 1, 2018 - December 31, 2019, 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
27th day of November, 2017.
1
CITY OF SEWARD, ALASKA
RESOLUTION 2017-060
THE CITY OF SEWARD, ALASKA
David Squires, Ma r
AYES: Casagranda, Keil, McClure, Slater, Towsley, Horn, Squires
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Brenda J. l allo , MMC
City Clerk
(City Seal)�.•'y Of .q"�a
SEAL 1 0:
� R•
• i 1• a
�ti�TF OF PAq-;.•'•
'06I811pars•,
1
1
ELECTRIC ENTERPRISE FUND
Budgeted Statement of Revenues and Expenses
Operating revenue:
Sales:
Residential
Small General Service
Large General Service
Harbor Power Sales
Industrial Sales/Special Contracts
Street & Yard Lights
Miscellaneous
Total operating revenue:
Operating expense:
Before depreciation
Salaries
Work order charges (salaries)
Employee benefits
Purchased services
Power for resale
Supplies & maintenance
Work order charges (supplies)
General & Administrative
Total operating expense:
And Change in Net Position
For 20I8 and 20I9
20I6 20I7 20I8 20I9
Actual * Budget Budget Budget
3,262,167
3,466,452
3,277,059
3,32I,034
I,7I I,6I7
I,9I0,004
1,693,794
I,7I7,202
4,550,I8I
4,8I2,600
4,57I,676
4,634,080
4I7,539
320,496
425,000
420,000
993,3I2
I,258,584
I,29 5,475
I,405,I06
69,522
78,996
74,000
74,000
343,724
63,696
76,000
76,000
$11,348,062
$11,910,828IIAI3,$11,647,422
856, I 65
I,I00,294
I,030,20I
I,027,652
(I2I,632)
(99,996)
(60,000)
(60,000)
I,I0I,592
773,360
779,722
80I,324
588,333
I,004,704
1,060,000
873,500
4,997,993
S,I00>OI2
5,I77,700
5,258,944
369,84I
4I5,524
358,000
353,500
(82,479)
(50,004)
(30,000)
(30,000)
97I,249
I, I20,884
I, I 85,293
1,190,906
$8,681,062
$9,364,7789,
00,$9,415,826
Operating income before depreciation 2,667,000 2,546,050 I,9I21088 2,23I,596
Depreciation 1,446,722 1,777,236 I,57I,868 I,55I,440
Earnings from operations $1,220278 $768,9143 ,
Non operating revenue (expense)
Interest income
Interest expense
Other revenue (expense)
Total non -operating mantes (expenses)
Earnings before contributions and transfers
Capital contributions and special items
Transfers (to)/from other funds
Change in net position
Beginning net position
Ending net position
56,659 90,000 57,000 57,000
(260,3I6) (194,323) (207,503) (202,303)
37,468
(I66,I89) (I04,323) (I50,503) (I45,303)
$I,054,089 $664,49I $I89,7I7 $534,853
0 0 0 0
(I,234,780) (I,276,523) (I,253,359) (I272,II3)
(I80,69I) (6I2,032) (I,063,642) (737,260)
$28,799,383 $28,618,692 $28,006,660 $26,943,0I8
$28,618,692 * *28,006,660 $26,943,0I8 $26,205,758
* Ties to annual Comprehensive Annual Financial Report
Of total depreciation expense, the following amounts were attributable to capital assets funded with capital contributions:
(a) $775,74I or 54%; (b) $I,029,996 or 7I%; ( c) $977,062 or 62%; (d) 964,3I5 or 62%
CITY OF SEWARD
ELECTRIC ENTERPRISE FUND
Budgeted Statement of Cash Flow
For 2018 and 2019
Beginning Cash Balance at 1/1/17 (°`);
Cash is provided by (used for):
Change in net position
Add expense items not affecting cash
Depreciation
Net cash provided by operations
Other sources (uses) of cash
Loan repayment from General Fund
Debt principal payments
Capital outlay
Net increase (decrease) in cash
Estimated ending cash balance
2017 2018 20I9
Budget Budget Budget
$5,S3I,6I3
(6I2,032) (I,063,642) (737,269)
I,777,236 1,S71,868 I,55I,440
$I,I65,204 $508226 $814,180
0 0 (a) 0 (a)
(I50,000) (160,000) (b) (I65,000) (c)
(829,996) (645,000) (d) (555,000) (e)
$I85,208-$296,774 $94,I80
$5,7I6,82I $5,420,047 $5,5I4,227
(a) From General Fund to recover payments made to subsidize SMIC enterprise fund. Will postpone for 2 years.
(b) $ I60K represents Electric generator bond
(c) $ I65K represents Electric generator bond
(d)$645K represents Infrastructure $230K; Motor pool $270K; Work orders $90K; Equipment $55K.
(e)$555K represents Infrastructure $I40K; Motor pool $270K; Work orders $90K; Equipment $55K.
City of Seward
Electric Enterprise Fund
2018/2019 Biennial Operating Budget
Revenue Detail by Line Item
2015
2016
2017
2018
2017-18
2019
2018-19
Actual
Actual
Budget
Budget
% Chg
Budget
% Chg
Revenues'
15000 5300 Residential
1,877,138
1,952,352
2,043,252
1,372,805
(32.81)
1,394,769
1.60
15000 5302 Residential fuel factor
857,581
818,728
911,196
1,409,509
54.69
1,423,604
1.00
15000 5303 Residential customer charge
475,214
491,087
512,004
494,745
(3.37)
502,661
1.60
15000 5310 SG Service
1,134,216
1,087,722
1,200,000
866,677
(28.61)
870,384
1.60
15000 5312 SG fuel factor
446,714
408,643
470,004
615,493
30.95
621,648
1.00
15000 5313 SG Customer Charge
209,579
215,262
240,000
221,624
(7.66)
225,170
1.60
15000 5320 LG Service
1,845,847
1,930,492
2,019,996
1,337,268
(33.80)
1,358,664
1.60
15000 5322 LG fuel factor
1,232,933
1,184,352
1,257,000
1,790,339
42.43
1,808,242
1.00
15000 5323 LG customer charge
42,505
44,673
45,600
45,081
(1.14)
45,802
1.60
150006324 LG demand charge
1,373,588
1,390,664
1,490,004
1,398,988
(6.11)
1,421,372
1.60
15000 5326 Alternate Energy
(908)
(605)
0
0
0.00
0
0.00
15000 5340 Spec. Contract Energy
145,302
177,930
144,084
394,081
173.51
486,240
23.39
15000 6342 Special Contract fuel factor
601,710
402,817
640,440
489,083
(23.63)
493,974
1.00
15000 5343 Spec. Contract customer charge
963
988
1,008
1,038
2.98
1,064
2.50
16000 5345 Special Contract Demand
399,679
411,577
473,052
411,273
(13.06)
423,828
3.05
15000 5350 Harbor Fund Power Sales
259,612
308,846
226,500
315,000
39.07
310,000
(1.59)
15000 5352 Harbor power fuel factor
99,275
108,693
93,996
110,000
17.03
110,000
0.00
15000 5360 Street & Yard
67,840
65,660
72,996
70,000
(4.10)
70,000
0.00
15000 5362 Yard Light Fuel
5,137
3,862
6,000
4,000
(33,33)
4,000
0.00
15000 5801 Turn on Fees
17,121
19,776
15,696
20,000
27.42
20,000
0.00
15000 5802 Equipment Rental
14,300
19,660
18,000
20,000
11.11
20,000
0.00
15000 5803 Joint Pole Use
9,984
9,984
9,996
10,000
0.04
10,000
0.00
15000 5804 Work Order Revenue
30,883
36,159
20,004
20,000
(0.02)
20,000
0.00
15000 5805 Chugach Coop Divid,
224,801
251,370
0
0
0.00
0
0.00
16000 6890 Collection of Doubtful Accounts
5,699
1,400
0
1,000
0.00
1,000
0.00
15000 5899 Miscellaneous Revenue
(32)
5,880
0
5,000
0.00
5,000
0.00
15000 5901 EF Investment Interest
76,949
6,074
20,004
7,000
(65.01)
7,000
0.00
15000 6906 EF Penalties and Interest
64,114
50,585
69,996
50,000
(28.57)
50,000
0.00
15000 5919 Contra PERS. On -Behalf paid by SOA
(143,207)
(2,463)
0
0
0.00
0
0.00
15000 5920 PERS On -Behalf paid by SOA
196,217
39,731
0
0
0.00
0
0.00
15000 5931 Assessment Interest
0
0
0
0
0.00
0
0.00
15000 5940 Amon, of CIA - General
938,045
775,741
1,029,996
977,062
(5.14)
964,315
(1.30)
150005941 Amort.Bond Premium
8,366
13,834
1,140
13,834
1.113.61
13,834
0.00
15000 5990 Surplus Sales
0
200
0
0
0.00
0
0.00
Total Revenues
$12,416,165
$12,231,764
$13,031,964
$12,460,900
$ (4.38) $12.682,671
$ 1.78
City of Seward
Electric Enterprise Fund
2018/2019 Biennial Operating Budget
Expenditure Line Item by Fund
2016
2016
2017
2018
2017-18
2019
2018-19
Actual
Actual
Budget
Budget
Budget
°A Ch
Personnel Costs:
6000 Salaries
734,651
761,684
977,210
960,439
(1,72)
960,771
0.03
6001Overtime
128,834
94,481
69,084
69,762
0.98
66,881
(4.13)
6002 Standby Time
130,626
93,334
92,436
91,451
(1.07)
96,353
5.36
6100 Medicare
22,215
19,048
17,484
17,091
(2,25)
17,239
0.87
6101 Unemployment Insurance
0
594
0
0
0.00
0
0.00
6102 Workers' Compensation
47,196
66,222
55,366
83,831
51.44
84,648
0.97
6200 Leave Time
74,667
80,079
113,508
90,065
(20.65)
103,235
14.62
6201 Retirement Benefits
442,078
572,776
193,728
184,003
(5.02)
182,954
(0,57)
6202 Health Insurance
210,350
249,539
277,904
285,306
2.66
288,695
1.19
6204 Meal Allowance
3,543
10,172
2,700
7,125
163.89
7,200
1.05
6205 Electric Union Benefits
26,952
9,828
20,244
20,850
2.99 _
21,000
Total Personnel Costs;
$ 1,821,112
$ 1,957,757
$ 1,819,654
$ 1,809,923
$ (0,53) $
1,828,976
$ 1.05
Non -Personnel Costs:
7001 Communications
16,969
17,068
24,996
21,500
(13.99)
21,500
0.00
7002 Postage and Freight
19,280
13,448
21,996
22,500
2.29
23,000
2.22
7003 Bank and Credit Card Fees
54,450
59,292
55,500
56,000
0.90
58,000
3.57
7004Insurance
62,617
59,109
65,004
62,000
(4.62)
65,000
4.84
7006 Legal
11,928
63,368
50,004
60,000
19.99
60,000
0.00
7007 Legal Settlement
0
852
0
0
0.00
0
0.00
7009 Contracted Services
157,309
172,918
499,684
590,000
18.07
438,000
(25.76)
7010 Engineering
5,536
13,835
26,004
30,000
15.37
30,000
0.00
7011 Testing
1,847
1,755
0
1,500
0.00
600
(66.67)
7012 Other Special Services
13,886
21,792
15,000
15,000
0.00
15,000
0.00
7015 Utilities
92,545
124,586
89,508
160.500
79.31
121,500
(24.30)
7016 Heating Fuel
25,545
18,706
26,004
18,000
(30.78)
18,000
0.00
7017 Rents & Leases
25,296
21,605
23,004
23,000
(0,02)
23,000
0.00
7101 Chugach Power Purchases
2,049,134
2,165,628
2,000,004
2,211,106
10.56
2,246,484
1.60
7102 Power Fuel Costs
2,728,956
2,807,634
3,000,000
2,866,694
(4,45)
2,912,460
1.60
7103 Fuel for Generators
101,087
24,731
100,008
100,000
(0.01)
100,000
0.00
7210 Vehicle Supplies
4,041
33,301
3,000
10,000
233.33
10,000
0,00
7211 Gas & Lube
39,936
27,840
40,500
32,500
(19.75)
38,000
16.92
7212 Uniform Allowance
0
0
0
1,500
0.00
1,500
0.00
7213 Safety Equipment
0
4,358
5,004
6,000
19.90
6,000
0.00
7215 Operating Supplies
172,156
240,388
237,012
183,000
(22.79)
183,000
0.00
7216 Maintenance & Repair
42,040
22,757
106,012
90,000
(14.30)
90,000
0.00
7217 Small Tools & Equipment
6,931
41,198
24,996
35,000
40.02
25,000
(28.57)
7300Advertising
1,320
593
6,000
6,000
0.00
6,000
0.00
7301 Subscriptions & Dues
53,822
46,071
82,008
85,000
3.65
85,600
0.71
7302 Travel & Subsistence
21,136
21,758
28,008
28,000
(0,03)
28,000
0.00
7303 Education & Training
10,133
5,024
28,008
28,000
(0,03)
28,000
0.00
7304 Equipment Rent
5,075
2,552
27,000
35,000
29.63
26,000
(28.57)
7307 GF Administrative Fee
868,558
888,535
909,864
938,293
3.12
953,306
1.60
7330 P.I.L.T,
898,136
902,861
953,004
913,040
(4.19)
931,794
2.05
7331 Reclass PILT to Transfer -Out
(898,136)
(902,861)
(9bj,.
�J lla,:
(4,19)
�. :;
2.05
7805 Promotion
400
0
0
0
0.00
0
0.00
7808 Bad Debt Expense
22,134
3,686
30,000
30,000
0.00
30,000
0.00
7810 Miscellaneous Expense
10,554
3,030
9,996
35,000
250.14
35,000
0.00
7900 Depreciation Expense
1,724,295
1,446,721
1,777.236
1,571,868
(11,56)
1,551,440
(1.30)
8010 Utility Deposit Interest
1,190
1,232
1,200
1r200
0.00
1,200
0.00
8011 Bonding Expense
2,701
73,458
0
0
0.00
0
0.00
8012 Debt Service Interest Expense
271,699
185,626
193,123
185,400
(4.00)
180,200
(2.80)
8014 Amortization of Bond Issue Costs
4,904
0
0
20,903
0.00
20,903
0.00
8101Infrastructure
0
0
440,004
210,000
(52.27)
140,000
(33.33)
8102 Buildings
0
0
0
20,000
0.00
0
(100.00)
8103 Capital Equipment
0
0
64,992
55,000
(15.37)
55,000
0.00
8104 Motor Pool Rent
176,000
291,600
174,996
270,000
54.29
270,000
0.00
8105 Improvements other than Buildings
0
0
0
0
0.00
0
0.00
City of Seward
Electric Enterprise Fund
201812019 Biennial Operating Budget
Expenditure Line Item by Fund
2015
2016
2017
2018
2017-18
2019
2018-19
Actual
Actual
Budaet
Budget
% Chg
Budget
% Chg
8200 Work Order SaVBenerit credits
(100,577)
(121,632)
(99,996)
(60,000)
(40.00)
(60,000)
0,00
8201 Work Order Operating Supply credits
(110,520)
(82,479)
(50,004)
(30,000)
(40.00)
(30,000)
0.00
8300 Debt Service Principal
400,000
240,000
150,000
_ 160,000
6.67
165,000
3,13
Total Non -Personnel Costs:
$ 8,993,312
$ 8,961,944
$ 10,1_ 8�
$ 10,185,364
$ 0,01
$ 9,970,593
$_ (2.11)
Total Expenditures
$ 10,814,424
$ 10,919,701
$ 12,004,329
$ 11,995,287
$ (0.08)
$ 11,799,569
$ (1,63)
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CITY OF SEWARD
ELECTRIC ENTERPRISE FUND
Budgeted Interfund Transfers
2018 and 2019
TRANSFERS FROM OTHER FUNDS:
General Fund - SMIC deficit loan repayment (a)
GF for ASLC Utility Bill reclassed to revenue
TRANSFERS TO OTHER FUNDS:
General Fund:
Electric system permit fee
Federal and state lobbying
Payments -in -Lieu -of -Tax
2018 2019
Transfers- Transfers- Transfers- Transfers -
In Out In Out
$0 $0
$300,000
$300, 000
40,319
40,319
913,040
931,794
$0 $1,253,359
(a) Four-year moratorium on repayment of this loan due to General Fund fiscal gap.
$0 $1,272,113