HomeMy WebLinkAboutRes2018-102' CITY OF SEWARD, ALASKA Sponsored by: Bridges
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 Fond 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 ofone 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.
CITY OF SEWARD
RESOLUTION 2018-102
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this I I
day of December, 2018.
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
THE CITY OF SEWARD, ALASKA
""A
David quires, Mayor
Il za�
MMC
City Clerk
• SEAL
OF
D
Council l Agenda Statement
Meeting Date: December 11, 2018
To: Honorable Mayor and Members of the City Council
Through: Jeff Bridges, City Mana
From: Kristin Erchinger, Finance Director OW
,�genda 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 described
below.
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. As
a result, 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 ta�ahlc sales growth, sales tax revenues are expected to
exceed budget b� at least $300,000. The -\tc � yet ast.i,.: ,,rie-quarter of the City's sales tax revenues
to fund the �`_ its s hospital, accounting for the transfer -out from the General Fund to the Healthcare
Fund of $75,000.
State revenue sharing funds have become more uncertain over time and to avoid factoring one-time
uncertain revenues into the City's op: -"tit i ;,g budget, the City has operated under a policy of utilizing
one-time revenues to fund one-tim-c _�, )Ital needs. Revenue sharing came in at $123,422.59,
necessitating a transfer from the Gen(.i Lt 1 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 of catchment levels. Revenues have been upward adjusted by
$175,000 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 $69,00(% is icflect the State's reimbursement of a portion of one-time
repair costs associated with bathrocib, 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.
Du- ing the 2018/2019 Budget process, two city shop positions were eliminated; one half -way
the 2018 year and one effective January 1, 2019. This mid -cycle budget adjustment
to permanently eliminate one full-time custodial position (currently vacant) and to create
one fu'!-time operator/mechanic position in public works. Additional line item adjustments are
proposed in 2018 to cover the impact of this change 1 '018.
The finance department expects to bring forth additl:, ,: �� i _; i lc;�,c+ amendments after year-end,
including State contributions on the City's behalf to ` . i snal � I j,Ject close-outs, and other
items which cannot be fully known until the City closes tic hooks ford-,,., rear.
INTENT:
The intent of this resolution is to amend t nc ?018 Budget as described in the narrative above, and to
eliminate one custodial position and ci-,_,�a,-, one mechanic/operator position.
CONSISTENCY CHECKLIST:
Yes
No
N/A
1.
Comprehensix c flan (document source here):
2.
Strate is 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 (anticipates' 6eficit spending of $250,469)
and the amended budget through November 30, 2018 (anticipated deficit spending of $551,757).
Approved by Finance Department:,a
ATTORNEY REVIEW: Yes No X
MLA- YIIVrEMUA ION:
Seward City Council authorize the 2018 Mid -Cycle Budget Adjustments in substantial form as
attached hereto.
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