HomeMy WebLinkAboutRes2017-064CITY OF SEWARD, ALASKA Sponsored by: Hunt
RESOLUTION 2017-064
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ADOPTING THE HEALTHCARE 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 and 2019 budgets include $500,000 for hospital capital
contributions necessary to replace major assets at the hospital and Seward Mountain Haven, with
an additional 1210,000 set aside in 2018 and 1310,000 set aside in 2019 for the purpose of future
facility expansion, to be made available to the Seward Community Health Center for operational
and/or capital needs as a first priority; and
WHEREAS, the 2018 and 2019 budgets include $300,000 in 2018 and $200,000 in 2019
for Seward Community Health Center operating needs, with any unspent funds accruing to a
newly established health facility expansion account to address the need for expansion for both the
clinic and hospital.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. The Healthcare Enterprise Fund biennial budget for Calendar Years 2018 and
2019 which is attached hereto and made a part hereof by reference and which contains estimated
revenues and expenditures 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 27`h
day of November, 2017.
1
CITY OF SEWARD, ALASKA
RESOLUTION 2017-064
THE CITY OF SEWARD, ALASKA
David Squires, M or
AYES: Casagranda, Keil, McClure, Slater, Towsley, Horn, Squires
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
1
Brenda J. Ballou, ,fC
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City Clerk
(City Seal) •.•• Of SEA,''•,
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HEALTHCARE ENTERPRISE FUND
Budgeted Statement of Revenues and Expenses
and Changes in Net Position
For 20I8 and 20I9
Revenues:
Operating Expenses:
Hospital contributions for capital needs (a)
Health Facility Expansion (b)
Community Health Center (c)
Depreciation
Total operating expenses
Non -operating revenues (expense)
2016 2017 2018
Actual * Budget Budget
$0
200,000
I55,889
500,000
326,095
$1,181,984
Investment earrings 849
Debt service interest (d) (39,48I)
Capital equipment and other
Total non -operating revenue (expense) ($38,632)
2019
Budget
$a
$o
$o
200,000
500,000
500,000
26I,379
0
0
400,000
300,000
200,000
203,953
201,058
I61293
$1,065,332
$1,001,058
$861,293
0
0
0
(39,481)
(36,379)
(33,113)
($39,48I) ($36,379) ($33,II3)
Earnings (loss) before transfers ($1,220,616) ($1,104,813) ($1,037,437) ($894,406)
Operating transfers from other funds (e) I,239,672 I,I50,000 I,250,000 I,262,500
Operating transfers to other funds (f) 0 0 (I,192,898) (463,924)
Change in net position $19,OS6 $45,I87 ($980,335) ($95,830)
(a) Providence Seward hospital, ER, long-term care facility capital budget
(b) Funding assigned to health facility expansion; classified as a transfer -out starting 2018. Bond reserve is deemed higher priority than facility
expansion.
(c) Seward Community Health Center operating budget request. In addition, $200K in 20I8 and $300K in 20I9 can be accessed for operations
instead of health facility expansion if operations fall short, upon request of CHC Board and approval of Seward City Council,
(d) Represents inter -fund loan payable to Motor Pool for Seward General Hospital pension loan. Balance at I/I/I8 is $692,929.
(e) Represents one -quarter of all City sales tax equal to I% sales tax (the City's total sales tax rate is 4%).
(f) See Schedule of Interfund Transfers. Health facilities expansion, $200K - 20I8; $300K - 2019. SMH bond reserves, $992,898 - 2018;
$163,924 - 20I9.
a Does not tie to CAFR since City budgets Hospital and LTC separately, and does not budget for PSMCC operations. The CAFR aggregates the
City's hospital enterprise fund, LTC enterprise fund, and PSMCC financial statements into one fund, since PSMCC operational surpluses or
deficits accrue to taxpayers.
CITY OF SEWARD
HEALTHCARE 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
Debt principal (a)
Net increase (decrease) in cash
2017 2018 2019
Budget Budget Budget
$651,430
45,187 (980,335) (95,830)
203,953 20I,058 161,293
249,140 (779,277) 65,463
($59,095) ($62,I98) ($65,463)
190,045 (841,475) 0
Estimated ending cash balance $841,475 $0 $0
(a) Reflects retirement debt related to former employees of Seward General Hospital which was owned by the City.
Public Employees' Retirement System (PERS) debt was paid by the General Fund until 2013 when bonds issued to
construct the new hospital matured. Since that time, sales tax reserved for healthcare purposes became the new source of
repayment of SGH PERS debt. This debt is carried as a liability on the books of the Hospital Enterprise Fund and
reflects an internal loan to the Motor Pool Internal Service Fund which provided the cash to pay off the SGH PERS debt
with the State of Alaska.
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CITY OF SEWARD
HEALTHCARE ENTERPRISE FUND
Budgeted Interfund Transfers
2018 and 2019
2018
Transfers- Transfers -
In Out
From sales tax devoted to healthcare 1,250,000
Health Facilities Expansion Fund 200,000
Seward Mountain Haven bond reserves 992,898
2019_
Transfers- Transfers -
In Out
1,262,500
300,000
163,924
$1,250,000 $1,192,898 $1,262,500 $463,924