HomeMy WebLinkAboutRes2019-099 Sponsored by: Meszaros
Public Hearing#1: November 25, 2019
Public Hearing#2: December 9,2019
CITY OF SEWARD,ALASKA
RESOLUTION 2019-099
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ADOPTING THE ELECTRIC ENTERPRISE FUND BIENNIAL
OPERATING BUDGET FOR CALENDAR YEARS 2020 AND 2021
WHEREAS, the City Manager has submitted to the City Council a proposed biennial
budget for the City of Seward for Calendar Years 2020 and 2021; and
WHEREAS,the preliminary biennial budget was reviewed by the City Council in budget
work sessions on October 15, October 16, October 25 & November 8, 2019, which were
televised to the public; and
WHEREAS, a public hearing is scheduled on the proposed budget for November 25,
2019, and a second public hearing and final adoption is scheduled for December 9, 2019; and
WHEREAS, the 2020 budget includes a rate increase of 1.2% to all rate classes,
representing the five-year average CPI, and the 2021 budget includes a rate increase of 1.2%
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 a
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 2020 and 2021,
which is attached hereto and made a part hereof by reference and which contains estimated
revenues and expenses for the period January 1, 2020 - December 31, 2021, 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 9`h
day of December.
CITY OF SEWARD,ALASKA
RESOLUTION 2019-099
T CI OF SEWA ASKA
risty T ry, Ma r
AYES: Seese,Butts, McClure, Osenga, Terry
NOES: Baclaan, Lane
ABSENT: None
ABSTAIN: None
ATTEST:
renda J. Ballou MC
City Clerk
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ELECTRIC ENTERPRISE FUND
Budgeted Statement of Revenues and Expenses
And Change in Net Position
For Fiscal Years 2020 and 202I
20I8 20I9 2020 202I
Actual# Budget Budget Budget
Operating revenue:
Sales:
Residential 3,283,7I5 3,32I,034 3,220,5II 3,358,883
Small General Service I,745,758 I,7I7,202 I,737,809 I,758,4I5
Large General Service 4,I42,930 4,634,080 4,689,689 4,745,298
Harbor Power Sales 366,385 420,000 39I,320 397,640
Industrial Sales/Special Contracts I,260,I36 I,405,I06 I,42I,968 I,438,829
Street&Yard Lights 75,993 74,000 74,888 75,776
Miscellaneous I05,I28 76,000 75,900 76,800
Total operating revenue: $10,980,04S $11,647,422 $11,612,085 I I,85I;54I
Operating expense:
Before depreciation:
Salaries and Benefits 1,7I9,944 I,849,980 I,757,466 I,807,476
Work order charges(salaries) (47,340) (60,000) (70,000) (70,000)
Purchased services 845,887 911,210 899,7I4 906,907
Power for resale 5,250,I47 5,258,944 5,574,042 5,385,I59
Supplies &maintenance 35I,620 353,500 372,232 376,924
Work order charges(supplies) (36,960) (30,000) (40,000) (40,000)
General&Administrative I,4I7,I07 I,I90,906 I,I74,236 I,I88,527
Total operating expense: $9,500,40S $9,474,540 $9,667,690 9,554,993
Operating income before depreciation I,479,640 2,I72,882 I,944,395 2,296,648
Depreciation I,63I,726 1,55I,440 I,585,249 I,606,83I
Earnings from operations - I52,086 $621,442 $359,146 $689,817
Non-operating revenue(expense)
Interest income 113,956 57,000 70,000 70,000
Interest expense (I84,242) (202,303) (194,067) (I85,582)
Other revenue(expense) 42,759 - 800 800
Total non-operating revenues(expenses) (27,527) (I45,303) (I23,267) (114,782)
Earnings before contributions and transfers -$I79,6I3 $476,I39 $235,879 $575,035
Capital contributions and special items 87,297 0 0 0
Transfers(to)/from other funds (I,3I7,770) (I,272,I I3) (I,283,2I3) (I,294,394)
Change in net position (I,4I0,086) (795,974) (I,047,334) (7I9,359)
Beginning net position $28,654,835 $27,244,749 $26,448,775 $25,40I,44I
Ending net position $27,244,749 * $26,448,775 $25,40I,44I $24,682,082
lies to annual Comprehensive Annual Financial Report
Of total depreciation expense,the following amounts were attributable to capital assets funded with capital contributions:
(a)$990,369 or 6I%;(b) $964,3I5 or 63%;(c)$975,887 or 62%;(d)$975,887 or 6I%
33
City of Seward
Electric Enterprise Fund
2020/2021 Biennial Operating Budget
Revenue Detail by Line Item
10/31/2019
2016 2017 2018 2019 2019 2020 2019-20 2021
tevenues Actual Actual Actual Actual YTD Budget Budget %Chg Budget
5000 5300 Residential 1,952,352 2,072,006 1,517,626 1,417,621 1,394,769 1,411,506 1.20 1,428,243
5000 5302 Residential fuel factor 818,728 1,068,739 1,247,069 1,161,548 1,423,604 1,300,312 (8.66) 1,415,915
5000 5303 Residential customer charge 491,087 503,864 519,020 354,388 502,661 508,693 1.20 514,725
5000 5310 SG Service 1,087,722 1,105,833 862,705 823,761 870,384 880,829 1.20 891,273
5000 5312 SG fuel factor 408,643 520,371 631,499 624,564 621,648 629,108 1.20 636,568
5000 5313 SG Customer Charge 215,252 226,855 241,554 170,391 225,170 227,872 1.20 230,574
5000 5320 LG Service 1,930,492 1,916,749 1,091,555 1,187,054 1,358,664 1,374,968 1.20 1,391,272
5000 5322 LG fuel factor 1,184,352 1,436,201 1,688,124 1,622,224 1,808,242 1,829,941 1.20 1,851,640
5000 5323 LG customer charge 44,673 46,327 47,062 31,095 45,802 46,352 1.20 46,901
5000 5324 LG demand charge 1,390,664 1,384,044 1,316,334 1,011,552 1,421,372 1,438,428 1.20 1,455,485
5000 5326 Alternate Energy (505) 0 (145) 0 0
5000 5340 Spec.Contract Energy 177,930 285,470 347,979 433,459 486,240 492,075 11.20 497,910
5000 5342 Special Contract fuel factor 402,817 547,322 493,290 387,965 493,974 499,902 1.20 505,829
5000 5343 Spec.Contract customer charge 988 1,010 1,290 1,048 1,064 1,077 1.22 1,090
5000 5345 Special Contract Demand 411,577 439,898 417,577 315,997 423,828 428,914 1.20 434,000
5000 5350 Harbor Fund Power Sales 308,848 276,617 212,669 140,438 310,000 280,000 (9.68) 285,000
5000 5352 Harbor power fuel factor 108,693 117,926 153,716 112,634 110,000 111,320 1.20 112,640
5000 5360 Street&Yard 65,660 65,522 70,096 59,823 70,000 70,840 1.20 71,680
5000 5362 Yard Light Fuel 3,862 4,646 5,897 4,894 4,000 4,048 1.20 4,096
5000 5801 Turn on Fees 19,776 17,833 27,779 21,224 20,000 20,240 1.20 20,480
5000 5802 Equipment Rental 19,660 47,189 11,893 0 20,000 20,240 1.20 20,480
5000 5803 Joint Pole Use 9,984 10,152 10,776 0 10,000 10,120 1.20 10,240
5000 5804 Work Order Revenue 36,159 21,021 21,865 (430) 20,000 20,240 1.20 20,480
5000 5805 Chugach Coop Divid. 251,370 92,359 23,616 281,043 0
5000 5890 Collection of Doubtful Accounts 1,400 0 0 0.00 0
868 129 1,000 800 (20.00) 800
5000 5899 Miscellaneous Revenue 5,880 0 9,199 26,749 5,000 5,060 1.20 5,120
5000 5901 EF Investment Interest 6,074 69,101 86,204 138,189 7,000 30,000 328.57 30,000
5000 5905 EF Penalties and Interest 50,585 48,333 27,752 35,675 50,000 40,000 (20.00) 40,000
5000 5919 Contra PERS On-Behalf paid by SOA (2,463) 4,931 0 0 0
5000 5920 PERS On-Behalf paid by SOA 39,731 28,811 0 0.00 0
(5
5000 5923 Spec.Proj.Other Rev. 0 47 ,58
5,914 0 0 0 0 0.00 0
0 0 0 0 0.00 0
5000 5940 Amort.of CIA-General 775,741 981,212 990,369 817,890 964,315 975,887 1.20 975,887
5000 5941 Amort.Bond Premium 13,834 13,834 13,834 0 13,834 14,000 1.20
5000 5990 Surplus Sales 200 0 .20 14,000
0 0 0 0 1 0
otal Revenues $12,231,764 $13,830,090 $12,083,489 $11,180,925 $12,682,571 $12,672,772 $ (0.08) $12,912,328
34
City of Seward
Electric Enterprise Fund
2020/2021 Biennial Operating Budget
Expenditure Line Item by Fund
2016 2017 2018 2019 2019 2020 2019-20 2021
Personnel Costs: Actual Actual Actual Thru 9/30 Bud et Budget %Cho Bud et
6000 Salaries 761,684 835,591 827,109 666,231 967,539 893,050 (7.70) 910,172
6001Overtime 94,481 247,895 146,001 101,612 66,881 61,252 (8.42) 62,958
6002 Standby Time 93,334 94,183 95,317 82,470 96,353 97,951 1.66 100,626
6100 Medicare 19,048 23,444 18,629 14,115 17,239 15,975 (7.33) 16,345
6101 Unemployment Insurance 594 7,968 6,886 0 0 0 0.00 0
6102 Workers'Compensation 66,222 112,723 78,867 62,579 84,648 81,749 (3.42) 84,001
6200 Leave Time 80,079 87,340 87,516 72,468 103,235 98,982 (4.12) 106,860
6201 Retirement Benefits 572,776 121,169 199,011 155,754 184,062 206,218 12.04 210,420
6202 Health Insurance 249,539 262,752 260,158 224,149 301,823 281,352 (6.78) 298,872
6204 Meal Allowance 10,172 14,257 6,353 4,211 7,200 7,286 1.19 7,373
6205 Electric Union Benefits 9,828 18,455 1,868 2,135 21,000 21,252 1.20 21,504
6209 PERS DC Forfeitures 0 0 (7,771) 3,023 0 0 0.00 0
Total Personnel Costs: $ 1,957,757 $ 1,825,777 $ 1,719,944 $ 1,382,701 $ 1,849,980 $ 1,765,067 $ (4.59) $ 1,819,131
Non-Personnel Costs:
7001 Communications 17,068 27,074 19,986 16,302 21,500 21,758 1.20 22,016
7002 Postage and Freight 13,448 21,565 14,078 12,785 23,000 19,692 (14.38) 19,884
7003 Bank and Credit Card Fees 59,292 68,867 77,500 72,017 90,760 91,849 1.20 92,938
7004Insurance 59,109 58,682 64,797 74,422 65,000 65,780 1.20 66,560
7006 Legal 63,368 21,889 13,745 33,702 60,000 50,540 (15.77) 51,080
7007 Legal Settlement 852 0 0 0 0 0 0.00 0
7009 Contracted Services 172,918 226,541 400,208 164,717 442,950 386,049 (12.85) 389,069
7010 Engineering 13,835 42,897 41,514 38,201 30,000 65,000 116.67 65,000
7011 Testing 1,755 4,812 4,609 1,153 500 1,000 100.00 1,000
7012 Other Special Services 21,792 16,059 13,851 10,315 15,000 15,000 0.00 15,360
7015 Utilities 124,586 159,066 144,238 135,404 121,500 141,554 16.51 142,016
7016 Heating Fuel 18,706 20,031 29,483 9,245 18,000 18,216 1.20 18,432
7017 Rents&Leases 21,605 17,633 21,877 23,286 23,000 23,276 1.20 23,552
7101 Chugach Power Purchases 2,165,628 2,163,292 1,890,465 1,784,251 2,246,484 2,273,442 1.20 2,300,400
7102 Power Fuel Costs 2,807,634 3,722,365 3,334,521 2,579,005 2,912,460 3,200,000 9.87 2,982,359
7103 Fuel for Generators 24,731 17,037 25,161 17,840 100,000 100,600 0.60 102,400
7210 Vehicle Supplies 33,301 21,105 12,059 22,067 10,000 10,120 1.20 10,240
7211 Gas&Lube 27,840 45,229 31,376 17,996 38,000 38,456 1.20 38,912
7212 Uniform Allowance 0 43 1,782 15,935 1,500 17,000 1,033.33 17,000
7213 Safety Equipment 4,358 10,605 7,944 13,469 6,000 5,560 (7.33) 5,620
7215 Operating Supplies 240,388 287,784 266,277 106,252 183,000 185,196 1.20 187,392
7216 Maintenance&Repair 22,757 44,506 19,439 15,575 90,000 95,720 6.36 97,160
7217 Small Tools&Equipment 41,198 18,838 12,742 22,416 25,000 25,180 0.72 25,600
7300Advertising 593 8,419 1,389 672 6,000 6,072 1.20 6,144
7301 Subscriptions&Dues 46,071 10,209 30,854 3,957 85,600 36,627 (57.21) 37,654
7302 Travel&Subsistence 21,758 28,340 37,332 16,055 28,000 48,096 71.77 48,192
7303 Education&Training 5,024 15,134 11,719 10,143 28,000 28,336 1.20 28,672
7304 Equipment Rent 2,552 32,164 5,037 30,127 25,000 35,180 40.72 35,360
7307 GF Administrative Fee 888,535 909,860 938,293 794,422 953,306 964,745 1.20 976,185
7330 P.I.L.T. 902,861 973,193 874,797 624,976 931,794 928,967 (0.30) 948,131
7331 Reclass PILT to Transfer-Out (902,861) (973,193) (874.797) (624,976) (931,794) (928,967) (0.30) (948,131)
7808 Bad Debt Expense 3,686 8,297 52,844 (172) 30,000 20,000 (33.33) 20,480
7810 Miscellaneous Expense 3,030 37,498 3,771 272 35,000 35,180 0.51 35,840
7900 Depreciation Expense 1,446,721 1,585,449 1,631,726 1,360,189 1,551,440 1,585,249 2.18 1,606,831
8010 Utility Deposit Interest 1,232 1,300 1,324 1,093 1,200 1,214 1.17 1,229
8011 Bonding Expense 73,458 41,137 0 0 0 0 0.00 0
8012 Debt Service Interest Expense 185,626 192,344 184,242 105,158 180,200 171,950 (4.58) 163,450
8013 Amortize Deferred Loss on 0 20,903 20,903 0 0 0 0.00 p
Bonds
8014 Debt Service Amortization of 0 0 0 0 20,903 20,903 0.00 20,903
Bond Issue Costs
8101Infrastructure 0 0 0 58,800 140,000 140,240 0.17 143,360
8103 Capital Equipment 0 0 85,163 15,281 55,000 55,540 0.98 56,320
8104 Motor Pool Rent 291,600 175,000 270,000 225,000 270,000 360,000 33.33 276,480
35
City of Seward
Electric Enterprise Fund
2020/2021 Biennial Operating Budget
Expenditure Line Item by Fund
2016 2017 2018 2019 2019 2020 2019-20 2021
Actual Actual Actual Thru 9/30 Budget Budget %Chq Bu et
d
8105 Improvements other than 0 0 3,450 0 0 0
Buildings 0.00 0
8200 Work Order Sal/Benefit credits (121,632) (200 428) (47,340) 0 (60,000
8201 Work Order Operating Supply (82.479) (62,987) (36,960 400 ) (40,000) 16.67 (70,000)
credits ) (30,000) (40,000) 33.33 (40,000)
8300 Debt Service Principal 240,000 150,000 160,000 165,000 165,000 170,000 3.03 180,000
Total Non-Personnel Costs: $ 8,961,944 $ 9,968,559 $9,801,399 $ 7,972,752 $10,008,303 $10,420,320
Total Expenditures $ 4.12 $10,201,090
$ 10,919,701 $11,794,336 $11,521,343 $9,355,453 $11,858,283 $12,185,387 $ 2.76 $12,020,221
36
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37
CITY OF SEWARD
ELECTRIC ENTERPRISE FUND
Budgeted Interfund Transfers
Fiscal Year 2020 and 2021
2020 2021
Transfers- Transfers- Transfers- Transfers-
In Out In Out
TRANSFERS FROM OTHER FUNDS:
General Fund - interfund loan repayment (a)
General Fund for ASLC Utility Bill (b)
TRANSFERS TO OTHER FUNDS:
General Fund:
Electric system permit fee $300,000 $300,000
Federal and state lobbying 40,319 40,319
Payments-in-Lieu-of-Tax 942,894 954,075
$0 $1,283,213 $0 $1,294,394
38
City of Seward
Electric Enterprise Fund Electric•Administration
202012021 Biennial Operating Budget
Expenditure Detail by Department
2016 2017 2018 2019 2020 2019-20 2021 2020-21
Actual Actual Actual B u get
Personnel Costs: ;5 C h g Budget °:°Cng
15000 6000 Salaries 225,401 219,322 187,333 273,950 291,858 654 294,065 0.7
15000 6001 Overtime 1,661 1,387 32 750 5 0.00 750 0.0
15000 6002 Standby Time 49 0 0 0 0 0,00 0 00
15000 6100 Medicare 4,789 3,842 3,956 4,355 4,463 248 4,508 1.0
150006101 Lfnemp!oymentInsurance 0 0 6,188 0 0 0.00 0 O.O;
15000 6102 Markers'Compensation 2,727 3,352 2,099 2,873 2,552 (11.17) 2,579 10
15000 6200 Leave Time 31,000 35,031 32,136 29,974 30,334 1.20 32,211 61f
15000 6201 Retirement Benefits 27,615 24,053 16,520 24,536 15,974 (34.90) 16,137 1.0:
15000 6202 Health Insurance BUM 90,919 76,855 117,672 123,600 5.04 133,200 7.71
Total Personnel Cost;: S 382.148 S 377,913 S 325.119 S 454A 10 S 469.531 S 3,40 S 483.451 S 2.9E
Non-Personnel Costs:
150007001 Communications 10,628 16,090 10,101 10,000 10,120 120 10,240 1 i
15000 7002 Postage and Freight 345 11 550 1,000 500 (50.00) 500 0.0C
150007003 Bank and Credit Card Fees 0 38 0 0 fl
15000 7004 Insurance 160 307 140 0 0 0.00 0 000
15000 7005 Legal 11,899 1,925 --0 �_ 15.000_____ _. SQaQ __-_(56,67). 5,004 w_._ _.w__Q00
15000700TLegalS-Tement_ -___ __T 85 -____ _.. �._____-_-- 0 D
0 0.00 0 0 00
15000 7009 Contracted Services 5,928 57,770 92.667 80,000 80,000 0.00 81,920 2.40
15000 7010 Engineering 1,199 0 0 0 0 000 0 0.00
15000 7011 Testing 165 307 1,398 500 1,000 10000 1,000 0.00
15000 7012 Other Special Services 12,755 12 1311 10,000 15.000 15,000 000 15,330 2.40
15000 7017 Rents&Leases 0 2080 0 0 0 090 0 0.00
15000 7210 Vehicle Supplies 1,161 0 0 0 0 0.00 0 000
15000 7211 Gas&Lube 2,100 18,464 5,333 3,000 3,036 1.20 3.072 1.19
15000 7212 Uniform Allowance 0 43 1.356 0 0 0,00 0 000
15000 7213 Safety Equipment 0 0 329 1,000 500 (50 00) 500 000
15000 7215 Operating Supplies 8,381 9,442 8115 10,000 10,120 120 10,240 1,19
15000 7216 Maintenance&Repair 0 0 0 0 0 000 0 0.00
15000 7217 Small Tools&Equipment 0 1.797 0 10,000 10.000 0.00 10.240 240
15000 7300 Advertising 307 5275 1,324 1,000 1.012 120 1,024 1.19
15000 7301 Subscriptons&Dues 44,402 7.175 27,760 80,000 30,960 31 20 310
15000 7302 Travel&Subsistence 18,970 25,684 23,266 20,000 40, 00 4 00 000
15000 7303 Education&Training 3,161 14.672 6 214 15,000 15,180 1.20 15, " 119
15000 7304 Equipment Rent 2,552 2.552 5.fl37 3,000 3,036 1.20 3.072 1 19
15000 7808 Bad Debt Expense 0 0 0 0 0 000 0 0.00
15000 7810 Miscellaneous Expense 0 341 3214 0 0 0,00 0 0.00
15000 7900 Depreciation Expense 7,430 5,104 5.104 5.104 0 (100.00) 0 000
15000 8103 Capital Equipment 0 0 0 10,000 10.000 0.00 10.240 2.40
15000 6104 Motor Foci Rent 194,400 65.000 180,000 270,000 270,000 0.00 276,480 240
Total Non-Personnel Costs S 326.798 S 287,208 S 381,908 $ 549,604 S 505,464 S (8.03) S 516,168 $ 212
Total Expenditures $ 708,946 $ 645,121 $ 707,027 $ 1,003,714 $ 974,995 $ (2,86) $ 999,619 $ 2.53