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Sponsored by: Oates <br /> CITY OF SEWARD, ALASKA <br /> RESOLUTION 2010 -083 <br /> A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, <br /> ALASKA, ESTABLISHING A REPAYMENT SCHEDULE FOR THE <br /> ELECTRIC ENTERPRISE FUND $1,889,765 IN CONTRIBUTIONS MADE <br /> SINCE 1996 FOR HOSPITAL AND SMIC SHORTFALLS, AND <br /> APPROPRIATING 2011 REVENUE SHARING FUNDS IN THE AMOUNT <br /> OF $226,846 TOWARD REPAYMENT <br /> WHEREAS, the City of Seward's electric enterprise fund has been tapped repeatedly over <br /> the period since 1996, to assist with covering deficits in the Seward Marine Industrial Center <br /> enterprise fund (SMIC), due to the inability of that fund to generate revenues sufficient to cover <br /> required bond payments, as well as to assist with the costs of closing Seward General Hospital in <br /> 1996; and <br /> WHEREAS, numerous City Councils made decisions over the years to tap the electric fund <br /> for these contributions due to the then -new condition of the electric transmission line (upgraded in <br /> 1995), the level of reserves on hand in the fund at the time, and the fact that contributions to assist <br /> with the closure of the hospital and the extinguishment of the SMIC debt would have required an <br /> increase in taxes or a decrease in City services, which the Councils did not find to be in the public <br /> interest; and <br /> WHEREAS, the electric enterprise fund has not made any such contributions since 2006, <br /> and given the growing list of deferred maintenance projects and the dwindling level of enterprise <br /> fund reserves, the City Council desires to have the General Fund begin to repay the costs that were <br /> more properly the responsibility of the General Fund; and <br /> WHEREAS, the total of the amounts withdrawn from the electric utility since 1996 for these <br /> purposes total $1,889,765; and <br /> WHEREAS, the City of Seward will receive $226,846 in State revenue sharing for FY2011, <br /> which was not included in the City of Seward 2011 Budget due to the uncertainty of the funding <br /> during the budget preparation process; if received, revenue sharing, was originally intended to be <br /> utilized for the purpose of funding General Fund- related capital needs, but the City Council prefers <br /> to utilize it to apply toward repayment of the indebtedness to the electric enterprise fund. <br /> NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY <br /> OF SEWARD, ALASKA that: <br /> Section 1. The Seward City Council hereby establishes an indebtedness to the Electric <br /> Enterprise Fund in the amount of $1,889,765 for the purpose of repaying contributions made by the <br /> electric fund toward SMIC deficits and the closure of Seward General Hospital. <br />