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HomeMy WebLinkAbout12112018 City Council Special Meeting ePacket Special City Council Meeting Tuesday, December 11, 2018 Council Chambers, City Hall Immediately following the adjournment of the work session Seward City Council Agenda Packet SPECIAL MEETING REQUEST Pursuant to Seward City Code 2.10.030 (2), this is to serve as the written notice calling a Special City Council Meeting on Tuesday, December 11, 2018 immediately following the adjournment of the Work Session for the purpose of: Resolution 2018-102, Amending The 2018 Budget To Reflect Mid-Cycle Budget Adjustments, And Appropriating Funds. The meeting will commence in the City Council Chambers, City Hall, 410 Adams Street, Seward. All interested persons are invited to attend the meetings. Signed this 10th day of December, 2018 at 9:00 a.m. Mayor C i ager 2 Council Members Upon this request the City Clerk will give due and proper notice as required by SCC 2.10.032 No business shall be transacted other than stated above.) SPECIAL MEETING NOTICE Pursuant to Seward City Code 2.10.030 (2), this is to serve as the written notice calling a Special City Council Meeting on Tuesday, December 11, 2018 immediately following the adjournment of the Work Session for the purpose of: Resolution 2018-102, Amending The 2018 Budget To Reflect Mid-Cycle Budget Adjustments, And Appropriating Funds. The meeting will commence in the City Council Chambers, City Hall, 410 Adams Street, Seward. All interested persons are invited to attend the meetings. Posted: Monday, December 10, 2018 at 10:30 a.m. City Hall bulletin board U.S. Post Office Harbormaster's Building City of Seward, Alaska Council Agenda December 11, 2018 Page 1 The City of Seward, Alaska Special City Council Meeting Tuesday, December 11, 2018 Immediately following the adjournment of the work session David Squires Mayor Term Expires 2019 Marianna Keil Vice Mayor Term Expires 2018 Ristine Casagranda Council Member Term Expires 2018 Sue McClure Council Member Term Expires 2019 Sharyl Seese Council Member Term Expires 2018 Suzi Towsley Council Member Term Expires 2019 Jeremy Horn Council Member Term Expires 2019 Jeff Bridges Interim City Manager Brenda Ballou City Clerk Will Earnhart City Attorney 1. Pledge Of Allegiance 2. Roll Call 3. Citizen Comments On Any Subject Except Those Items Scheduled For Public Hearing. [Those Who Have Signed In Will Be Given The First Opportunity To Speak. Total Time For This Agenda Item is 36 Minutes.] 4. Approval Of Agenda And Consent Agenda [Approval of Consent Agenda passes all routine items indicated by asterisk (*). Consent Agenda items are not considered separately unless a council member so requests. In the event of such a request, the item is returned to the Regular Agenda.] 5. Special Orders, Presentations And Reports – None 6. New Business Resolutions Resolution 2018-102, Amending The 2018 Budget To Reflect Mid-Cycle Budget Adjustments, And Appropriating Funds. 7. Council Comments 8. Citizen Comments 9. Council And Administration Response To Citizen Comments 10. Adjournment Sponsored by: Bridges CITY OF SEWARD, ALASKA RESOLUTION 2018-102 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE 2018 BUDGET TO REFLECT MID-CYCLE BUDGET ADJUSTMENTS, AND APPROPRIATING FUNDS WHEREAS, the 2018/2019 Biennial Budget was passed November 27, 2017 reflecting the budget period from January 1, 2018 through December 31, 2019; and WHEREAS, budget adjustments are made at various points during the year and these additional mid-cycle budget amendments reflect updated information such as adjustments to revenues, the transfer of additional sales tax and dump station revenue to other Funds, closing out the Alaskans for Litter Prevention and Recycling grant, and transfer of unanticipated State revenue sharing funding to the Capital Acquisition Fund in accordance with the City’s budget policy on one- time revenues; and WHEREAS, this resolution authorizes the elimination of one full-time Custodian position (currently vacant) and the addition of one full-time Operator/Mechanic Position in the General Fund, with specific budgeted line item changes reflected on the schedule attached hereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The General Fund 2018 Budget is hereby amended and funds are hereby appropriated according to the specific line item adjustments included on the attached Schedule C, as follows: 1) Revenues are increased by the net amount of $780,422.59; 2) Various Expenditures are increased and decreased for a net impact of $0.00; and 3) Transfers-out increase by $206,745.05. Section 2. The 2018 Budget is further amended to account for transfers-out of the General Fund into other Funds, as follows: 1) The Healthcare Fund transfers-in account is increased by $75,000; 2) The Wastewater Enterprise Fund transfers-in account is increased by $3,000 reflecting additional RV dump station revenues; 3) The ALPAR Fund transfers-in account is increased by $5,322.46; and 4) the Capital Acquisition Fund transfers-in account is increased by $123,422.59 representing 100% of state revenue sharing funding, consistent with the City’s budget policy on one- time revenues. Section 3. The City Council hereby approves elimination of one full-time custodian position from the City Hall department and the addition of one full-time operator/mechanic position from the Public Works department, both within the General Fund, with the 2018 budget impacts reflected on the attached Schedule C. Section 4. This resolution shall take effect immediately upon its adoption. Council Agenda Statement Meeting Date: December 11, 2018 k viz To: Honorable Mayor and Members ofthe City Council 4tAsv-P Through: Jeff Bridges, City Mana?lb.- From: Kristin Erchinger, Finance Director fes"v Jgenda Item: 2018 Mid-Cycle Budget Adjustments BACKGROUND & JUSTIFICATION: The 2018/2019 Biennial Budget which covers the period January 1, 2018 through December 31, 2019 was passed November 27,2017. Periodically,adjustments are made to the budget as new data becomes available regarding expected revenues and/or changing priorities and projects. The specific requested budget adjustments are listed on the attached Schedules with major changes describedbelow. It is prudent for the City to budget revenues on the conservative side to avoid adverse impacts that come from reduced economic activity,higher fuel costs, State budget reductions or cost-shifting. Asaresult, in a positive economic climate it is not uncommon for some major revenue categories to exceed budget projections. During economic declines, the City's over-dependence on the visitor industry for revenues, can have the opposite effect. As a result of the current year's positive taxable sales growth, sales tax revenues are expected to exceed budget by at least$300,000. The voters set aside one-quarter of the City's sales tax revenues to fund the City's hospital, accounting for the transfer-out from the General Fund to the HealthcareFundof$75,000. State revenue sharing funds have become more uncertain over time and to avoid factoring one-time uncertain revenues into the City's operating budget,the City has operated under a policy ofutilizingone-time revenues to fund one-time capital needs. Revenue sharing came in at $123,422.59, necessitating a transfer from the General Fund to the Capital Acquisition Fund in accordance with the City's budget policy. Raw Fish Tax revenues depend on fish harvest volumes and the City budgets those revenues conservatively due to the uncertainty ofcatchment levels. Revenues have been upward adjusted by175,000 to reflect the amount by which anticipated receipts will exceed 2018 projections. Camping fees have reached record-breaking levels,coming in over budget by an estimated$60,000.Building rent is increased $69,000 to reflect the State's reimbursement of a portion of one-time repair costs associated with bathroom and carpet upgrades in City Hall. The litter patrol program is partially funded through grants and requires an additional $5,322 to close-out at year-end. The RV dump station revenues were higher than expected;an inter-fund transfer pays the additional revenue to the Wastewater Fund. The increase in Sealife Center payments-in-lieu-of-tax (PILT) represents a portion of sales tax collected by the Center and remitted to the City. The City's budget anticipates that a portion of the PILT will be used to help offset increased utility costs for the Center(Contra PILT). Thus,when the Sealife Center's PILT increases, so does the portion of PILT transferred to their utility bill. During the 2018/2019 Budget process, two city shop positions were eliminated; one half-waythroughthe2018yearandoneeffectiveJanuary1, 2019. This mid-cycle budget adjustment proposes to permanently eliminate one full-time custodial position(currently vacant) and to create one full-time operator/mechanic position in public works. Additional line item adjustments are proposed in 2018 to cover the impact of this change in 2018. The finance department expects to bring forth additional 2018 budget amendments after year-end, including State contributions on the City's behalf to PERS, final grant project close-outs,and other items which cannot be fully known until the City closes the books for the year. INTENT: The intent ofthis resolution is to amend the 2018 Budget as described in the narrative above,and to eliminate one custodial position and create one mechanic/operator position. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): 2. Strategic Plan (document source here): 3. Other(list):.Resolution 2017-057; City Budget Policies re: one-time revenues X FISCAL NOTE: This action results in an anticipated increase in General Fund fund balance for 2018,of$21,920.54. This is an improvement over the initial approved budget(anticipated deficit spending of$250,469) and the amended budget through November 30, 2018 (anticipated deficit spending of$551,757). Approved by Finance Department: ,,,,i4,2723 ATTORNEY REVIEW: Yes No X RECOMMENDATION: Seward City Council authorize the 2018 Mid-Cycle Budget Adjustments in substantial form asattachedhereto. Re 6- 1 p2