HomeMy WebLinkAbout11012022 City Council Special Meeting Laydown - Reierson Comments 2_2- ( ( O ( LiAtDdwi
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10/28/22
To:Seward City Council and City Manager
From:Skip Reierson
RE:23/24 Budget Recommendations for Council/Admin consideration
1. For Hospital Enterprise Budget:
a) Have we received a CIP from Providence for 2023 Equipment or Building Upgrade to support$687k payment?
b)The$150k Transfer into Mt Haven Bond Reserve was intended back in 2020 when Bond Payment Revenues
were short due to low census, and with census very strong please confirm that this annual amount is sufficient
to assure continued growth of Mt Haven Bond Fund Reserves..
2. Hospital Fund:City is 100%responsible for losses and gains from the operations for Hospital/Mt Haven.
Thus recommend City Amend Prov Contract&attain all Cash Surpluses from Providence as of 12/31/21, and
deposit in the City's Mt Haven Bond Reserve account to assure ample funds for City's full payment of Mt Haven
Bonds, without requiring any use of 1%of Sales Tax proceeds. (City has a$500,000 for Hospital LOC for
Payroll/Operations, unless City/Prov deem that higher LOC amount is required, such as 3 months expenses)
3. Hospital Fund: Recommend that we Transfer$800,000(remainder of 1%Sales Tax) into the MH Bond Reserve
for each year 2023 and 2024, for a total of$1.6mm, as there is no need for surplus hospital funds.
4. Harbor: It appears that the Harbor Passenger Fees for @ $600,000 may not be in the Harbor Budget Revenue,
which only appears in"Statement of Net Position"as these funds come from another Fund outside of normal
harbor operations, but these funds pay for Harbor Bonds by/thru Harbor Enterprise Fund.
5. Harbor and Parking: Both of these Funds appear to be missing the Loan Payment activities for 23/24 as a
result of the 2021 $733k Loan by Parking to Fund Harbor shortfall for NE Launch Ramp Project.
6. Electric Enterprise:
a) Include a$200,000/year for Tree Clearing Reserve Expense: Build a Tree Clearing Fund for future Tree
Clearing.
b) Reinstate$300,000 Right of Way(ROW)Transfer Fee and start to charge Telelaska/GCl/Others for the use
of our City's ROW Easement Corridors as a source of new revenue, like other City's/Utilities.
c) Update Capital Bond Principal Payments in "Electric Cash Flow"for 2016 Bond from$190k for 2023/2024 to
$200k and$205k respectively.
7. Electric Interest Expense: Need to look at adding a NEW"Source of Funds"in Electric Cash Flow for$220,875
for 2023 for Prepaid (Accrued) Interest Expense paid for by Bond Bank Accrued Interest that are part of new
Bonds for$499,423.
8. G.F.:Add$330,000 Annual Transfer for 3-years from GF to Electric Infrastructure Fund to Repay$1.053mm Loan
to SMIC for Losses,to help pay for$18mm Electric Infrastructure Project.
9. Motor Pool: Reinstate Motor Pool Rents to 2022 Budget, and Include$50k for 330-ton lift, until a Motor Pool Rent
Workshop or Motor Pool Rent Calculations are updated and adopted by Council and to be updated each
3 to 5 years thereafter.
10. PW-Water/Fire: Reinstate$134,000 Fire Hydrant Rent Revenue in PW Water Enterprise, as well as Expense in
Fire, otherwise this revenue Shortfall to Water may result in a rate increase to Ratepayers, sooner than later.
11. Motor Pool:Appropriate Funds from Hospital Enterprise Fund to pay off the Loan from Motor Pool for
old-hospital PERS Liability.
12. PW: Recommend the re-instatement of separate PW Streets and PW Snow/Ice Dept Budgets to assure
transparency and better accountability for taxpayers.
13. Cash:Highly recommend for Enterprise Cash Flow we use Unrestricted Enterprise Cash, NOT ALL Cash.