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Sponsored by: Garzini
CITY OF SEWARD, ALASKA
RESOLUTION NO. 96-010
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, EXTENDING A LINE OF CREDIT
FOR CASH FLOW NEEDS AT SEWARD GENERAL HOSPITAL
AND RESURRECTION BAY HEALTH CENTER
WHEREAS, in October, 1995, Seward General Hospital and Resurrection Bay Health
Center were found to be headed for financial crisis as a result of several months of low census and
high expenditures; and
WHEREAS, in an effort to stem the then current level of losses, the City Council assumed
the role of the hospital board and appointed Michael Yanez to serve as interim hospital administrator
until a private operator could be found to manage the City's health care facilities; and
WHEREAS, although Yanez has begun to implement recommended expenditure reductions,
the hospital and clinic are still suffering from a hangover effect of the heavy losses experienced
during the first half of the fiscal year; and
WHEREAS, in addition, it was the desire of the City Council to delay implementation of
some staff reductions until after the holiday season and the prospective private operator has
requested delay of enactment of some major items for a period oftime, making it impossible to make
immediate and significant reductions in expenditures to date; and
WHEREAS, all of these factors have led to a depletion of cash reserves to meet on-going
expenses of the City's health care facilities; and
WHEREAS, it is anticipated that the hospital/clinic could need as much as an additional
$175,000 over projected revenues in order to meet its cash flow needs through the end of the fiscal
year; and
WHEREAS, it is the desire of the City Council to extend a line of credit to the hospi-
tallclinic to allow the City's health care facilities to meet its financial obligations by drawing on the
line of credit on an as needed basis;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. A line of credit for Seward General Hospital in an amount not to exceed $85,000
through April 1, 1996, is hereby approved at an interest rate established by the twenty year bond
CITY OF SEWARD, ALASKA
RESOLUTION NO. 96-010
index on the date of approval of this resolution and with provision for semi-annual payments of the
principal and accrued interest over a three-year period starting January 1, 1997.
Section 2. Be it further resolved that the sum of $85,000 of the General Fund fund balance
is hereby designated as loans available to the hospital/clinic through April 1, 1996.
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 22nd
day ofJanuary, 1996.
THE CITY OF SEWARD, ALASKA
AYES:
NOES:
ABSENT:
ABSTAIN:
Anderson, Bencardino, Crane, Deeter, Keil, King
Sieminski
None
None
ATTEST:
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