HomeMy WebLinkAboutRes2019-102 Sponsored by: Meszaros
Public Hearing#1: November 25, 2019
Public Hearing#2: December 9, 2019
CITY OF SEWARD,ALASKA
RESOLUTION 2019-102
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ADOPTING THE WATER 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 water enterprise fund has begun repaying debt on a major Third Avenue
water main loan, necessitating rate increases to cover the cost of debt service and other
operational needs, with rates slated to rise 1.2% in 2020 (five-year average CPI) and 1.2% (five-
year average CPI) in 2021.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD,ALASKA,that:
Section 1. The Water 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 9th
day of December.
CITY OF SEWARD,ALASKA
RESOLUTION 2019-102
r.d
TH T OF ARD, ALASKA
isty Terry Mayo
AYES: Seese,Butts, McClure, Osenga,Terry
NOES: Baclaan, Lane
ABSENT: None
ABSTAIN: None
ATTEST:
rends J. Ballo , MMC
City Clerk
(City Seal).md-,� a`�r-, >,„,
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WATER ENTERPRISE FUND
Budgeted Statement of Revenues and Expenses
and Change in Net Position
For Fiscal Year 2020 and 202I
20I8 20I9 2020 202I
Actual# Budget Budget Budget
Operating revenue:
Residential 509,634 476,492 S I7,000 523,000
Small General Service IS5,657 I32,422 IS7,000 IS9,000
Large General Service 222,7S3 223,6S4 220,000 222,000
SMIC Sales 58,I84 6I,4I9 S4,000 S4,200
Industrial Sales I76,960 289,I06 I78,000 I80,475
Miscellaneous I52,52I I44,394 I56,000 I59,000
Charges for Services -Ship Water 80,39S I0S,580 93,000 94,600
Total operating revenue: $I,356,I04 $1,433,067 $1,375,000 $I,392,275
Operating expense before depreciation:
Salaries &Benefits 378,844 386,672 384,029 395,I I I
Purchased services 280,283 407,500 404,S00 46I,I86
Supplies &Maintenance 46,722 89,500 89,500 92,I85
General&Administrative 379,114 288,69I 288169I 295,811
Total operating expense: $I,084,963 $I,I72,363 $I,I66,720 $I,244,293
Operating income before depreciation 27IJ4I 260,704 208,280 I47,982
Depreciation 393,588 392,I99 628,253 622,443
Operating income(loss) -$I22,447 -$I3I,495 -$4I9,973 -$474,46I
Non-operating revenues(expenses)
Interest income 44,I47 7,270 I5,500 I5,500
Other revenue 8,468 0 0 0
Interest expense -20,429 -I9,669 -17,6I2 -I5,523
Total non-operating revenues(expenses) 32,I86 -$I2,399 -$2 I I2 -$23
Earnings before transfers and contributions -$90,26I -$I43,894 -$422,085 -$474,484
Transfers Out -II4,46I -II4,S42 -IIS,973 -II7,3S5
Transfers In 0 0 0 0
Capital contributions and special items SS4,3I7 0 0 0
Change in net position $349,595 -$258,436 -$538,058 -$59I,839
Beginning net position $I0,308,9I2 $I0,658,507 $I0,400,07I $9,862,0I3
Ending net position $I0,658,507 # $I0,400,07I $9,862,0I3 $9,270,I74
* Ties to annual Comprehensive Annual Financial Report
Of total depreciation expense, the following amounts were attributable to capital assets funded with capital contributions:
(a) $I86,725 or 47%; (b) $209,090 or 53%;(c) $205,000 or 33%;(d) $20S,000 or 33%
42
City of Seward
Water 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 °/a Ch g Budget
7000 5300 Residential 481,202 495,280 509,634 433,129 476,492 517,000 8.50 523,000
7000 5310 SG Service 131,223 147,929 155,657 143,033 132,422 157,000 18.56 159,000
7000 5320 LG Service 229,373 224,982 222,753 189,620 223,654 220,000 (1.63) 222,000
7000 5330 SMIC Sales 47,066 60,861 58,184 54,341 61,419 54,000 (12.08) 54,200
7000 5340 Spec.Contracts 245,585 260,992 176,960 167,863 289,106 178,000 (38.43) 180,475
7000 5801 Turn on Fees 11,182 17,032 18,331 15,550 10,369 16,000 54.31 17,000
7000 5804 Work Order Revenue 0 0 0 0 0 0 0.00 0
7000 5806 Ship Water 93,877 87,550 80,395 110,454 105,580 93,000 (11.92) 94,600
7000 5807 Hydrant Rentals 55,572 112,191 128,653 119,190 123,655 130,000 5.13 132,000
7000 5899 Miscellaneous Revenue (2,190) 4,503 5,537 14,128 10,369 10,000 (3.56) 10,000
7000 5901 EF Investment Interest 2,393 22,998 43,725 45,827 5,191 15,000 188.96 15,000
7000 5905 EF Penalties and Interest 4,250 687 422 593 2,079 500 (75.95) 500
7000 5919 Contra PERS On-behalf paid by SOA (593) 1,329 0 0 0 0 0.00 0
7000 5920 PERS On-behalf paid by SOA 9,565 7,766 (4,579) 0 0 0 0.00 0
7000 5940 Amort.of CIA-General 24,402 186,036 186,725 171,003 209,090 205,000 (1.96) 205,000
otalevenues $ 1,332,907 $ 1,630,136 $ 1,582,397 $ 1,464,731 $ 1,649,426 $ 1,595,500 $ (3.27) $ 1,612,775
43
City of Seward
Water 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/ 0 Budget Bud et %Chq Bud et
6000 Salaries 160,656 172,542 180,164 155,532 187,526 180,304 (3.85) 183,519
6001Overtime 8,440 18,519 11,774 12,947 4,226 4,632 9.61 4,726
6002 Standby Time 8,515 8,243 7,503 7,463 9,862 8,817 (10.60) 9,027
6100 Medicare 2,937 2,954 3,083 2,580 3,387 2,951 (12.87) 3,018
6102 Workers'Compensation 7,781 9,334 13,917 12,473 12,141 12,788 5.33 13,033
6200 Leave Time 11,496 17,769 9,582 10,242 20,420 19,833 (2.87) 21,346
6201 Retirement Benefits 137,889 23,690 57,453 40,758 44,470 44,852 0.86 45,796
6202 Health Insurance 81,174 88,155 98,539 98,588 104,640 101,352 (3,14) 109,224
6203 In Lieu of FICA 461 0 0 0 0 0 0.00 0
6209 PERS DC Forfeitures 0 0 (3,171) (1,804) 0 0 0.00 0
Total Personnel Costs: $ 419,349 $ 341,206 $ 378,844 $ 338,779 $ 386,672 $ 375,529 $ (2.88) $ 389,689
Non-Personnel Costs:
7001 Communications 9,208 8,183 6,790 6,709 12,000 10,000 (16,67) 10,000
7002 Postage and Freight 2,443 4,330 3,242 2,107 6,500 5,500 (15.38) 5,515
7003 Bank and Credit Card-Fees 6,782 7,401 9,192 9,007 10,950 10,950 0.00 11,279
7004Insurance 12,150 14,891 16,267 19,237 11,000 11,000 0.00 11,330
7006 Legal 0 0 0 0 5,000 5,000 0.00 5,150
7009 Contracted Services 22,824 8,303 25,947 7,852 92,050 92,050 0.00 94,812
7011 Testing 4,796 8,945 6,938 4,303 11,000 11,000 0.00 11,330
7015 Utilities 185,732 232,487 210,525 182,451 259,000 259,000 0.00 266,770
7016 Heating Fuel 3,067 0 1,382 732 0 0 0.00 0
7210 Vehicle Supplies 1,361 171 0 0 0 0 0.00 0
7211 Gas&Lube 4,844 6,522 3,356 5,073 10,500 10,500 0.00 10,815
7213 Safety Equipment 2,052 2,401 1,707 290 3,000 3,000 0.00 3,090
7215 Operating Supplies 23,869 21,566 17,620 13,501 44,500 44,500 0.00 45,835
7216 Maintenance&Repair 6,367 31,383 17,820 2,818 25,000 30,000 20.00 30,750
7217 Small Tools&Equipment 6,234 5,233 6,221 4,475 6,600 6,500 0.00 6,695
7300Advertising 0 30 1,312 0 1,000 1,000 0.00 1,030
7301 Subscriptions&Dues 880 1,279 227 227 1,700 1,700 0.00 1,751
7302 Travel&Subsistence 3,611 901 1,248 210 5,600 5,600 0.00 5,768
7303 Education&Training 2,507 449 1,300 300 5,600 5,600 0.00 5,768
7304 Equipment Rent 1,350 0 0 0 8,000 8,000 0.00 8,240
7307 GF Administrative Fee 245,122 251,004 258,849 219,159 262,991 262,991 0.00 269,340
7330 P,I.L.T. 103,606 112,843 108,488 78,567 108,569 110,000 1.32 111,382
7331 Reclass PILTto Transfer-Out (103,606) (112,843) (108,488) (78,557) (108,569) (110,000) 1.32 (111,382)
7808 Bad Debt Expense 715 456 97,898 0 2,000 2,000 0.00 2,060
7810 Miscellaneous Expense 103 8,130 233 0 1,800 1,800 0.00 1,854
7900 Depreciation Expense 200,323 396,425 393,588 353,010 392,199 628,253 60.19 622,443
8012 Debt Service Interest Expense 24,098 5,923 20,429 4,850 19,669 17,612 (10.46) 15,523
8103 Capital Equipment 0 0 17,387 0 0 0 0.00 0
8104 Motor Pool Rent 0 0 5,000 4,167 5,000 5,000 0.00 5,150
8300 Debt Service Principal 131,182 133,150 135,147 137,176 137,175 139,232 1.50 141,321
Total Non-Personnel Costs: $ 901,620 $ 1,149,563 $ 1,259,625 $ 977,653 $ 1,339,734 $ 1,577,788 $ 17.77 $ 1,593,619
Total Expenditures $ 1,320,969 $1,490,769 $ 1,638,469 $ 1,316,432 $ 1,726,406 $1,953,317 $ 13.14 $ 1,983,308
44
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CITY OF SEWARD
WATER ENTERPRISE FUND
Budgeted Interfund Transfers
Fiscal Year 2020 and 2021
2020 2021
Transfers- Transfers- Transfers- Transfers-
In Out In Out
General Fund:
Federal and state lobbying $5,973 $5,973
Payments-in-Lieu-of-Tax 110,000 111,382
$0 $115,973 $0 $117,355
46