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Sponsored by: Oates <br /> CITY OF SEWARD, ALASKA <br /> RESOLUTION 2010 -124 <br /> A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, <br /> ALASKA, AMENDING THE 2010/2011 BIENNIAL BUDGET TO REFLECT <br /> MID -CYCLE BUDGET CHANGES TO THE ELECTRIC ENTERPRISE <br /> FUND ONLY, AND APPROPRIATING FUNDS <br /> WHEREAS, the 2010/2011 Biennial Budget was passed on November 23, 2009, reflecting <br /> the City's first biennial budget, and covering the period from January 1, 2010 through December 31, <br /> 2011; and <br /> WHEREAS, the City intends to do a mid -cycle budget adjustment at the end of each even - <br /> numbered year, to adjust the "off budget year" to reflect changes to the budget based on updated <br /> revenue information, economic conditions, and other timely and relevant information impacting the <br /> upcoming budget year; and <br /> WHEREAS, the City's Electric Enterprise Fund rates are insufficient to cover current <br /> operating costs and reserves are inadequate to cover capital - related costs, resulting in the rapid <br /> depletion of Electric Enterprise Fund reserves, and requiring significant cost - cutting measures which <br /> are primarily related to postponing right -of- way - clearing and deferring generator project costs and <br /> generator relocation costs; and <br /> WHEREAS, the budget as proposed results in a decrease in budgeted cash in 2011 of <br /> $48,587, and an estimated ending cash balance at December 31, 2011 of $623,263, and without <br /> further rate increases as recommended by the administration, or expense reductions, the Electric <br /> Enterprise Fund cash balance is expected to be fully depleted by the end of 2012; and <br /> WHEREAS, this resolution adopts specific changes to the Electric Enterprise Fund, with <br /> each specific line item change being reflected on the spreadsheet attached hereto. <br /> NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE <br /> CITY OF SEWARD, ALASKA, that: <br /> Section 1. The Electric Enterprise Fund 2011 Budget is hereby amended and funds are <br /> hereby appropriated, according to the specific modifications included on the attached spreadsheet, as <br /> follows: 1) Operating revenues are decreased by $1,883,299 primarily due to reduced fuel costs <br /> passed through to customers; 2) Operating expenses are decreased by $1,505,632 due primarily to <br /> lower than projected fuel costs, as well as the postponement in right -of -way clearing costs; and 3) <br /> Transfers -in are increased by $110,784 to reflect a loan payment from the General Fund, for a total <br /> decrease in the Electric Enterprise Fund budgeted net assets of $266,883. <br />