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Sponsored by: Hunt <br /> CITY OF SEWARD, ALASKA <br /> him <br /> RESOLUTION 2014-060 <br /> A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, <br /> ALASKA, TRANSFERRING$1,321,335 TO THE CAPITAL ACQUISITION <br /> FUND, REPRESENTING 50% OF THE GENERAL FUND ANNUAL <br /> SURPLUS FOR 2012 AND 2013, AND APPROPRIATING FUNDS <br /> WHEREAS,the City of Seward maintains a budget policy which allows for the designation <br /> of 50% of the annual General Fund surplus into the Capital Acquisition Fund, for the purpose of <br /> financing major capital repairs and replacement,in years when the General Fund's fund balance level <br /> falls within prescribed policy band limits; and <br /> WHEREAS,as of December 31,2013,the General Fund's fund balance policy band(goal) <br /> is between $3,087,023 and $6,174,047, representing between three months' and six months' of <br /> General Fund expenditures and transfers-out, and the General Fund's Unassigned Fund Balance is <br /> $5,948,459, equal to 5.78 months of reserves; and <br /> WHEREAS, for more than a decade, the City has been at the lower end of the policy band <br /> limits--and often below prescribed limits--relying solely on periodic State revenue sharing funds to <br /> address the repair and/or replacement of governmental fixed assets such as streets, sidewalks, <br /> building repairs, flood mitigation, etc., with insufficient resources to address major infrastructure <br /> needs; and <br /> WHEREAS,the City has no consistent source of funding identified to repair and replace the <br /> City's $58.9 Million in governmental fixed assets, and the periodic transfer of annual surplus for <br /> capital purposes is intended to encourage conservative annual spending in order to address major <br /> infrastructure repair and replacement needs; and <br /> WHEREAS,the City of Seward's 2013 annual surplus is$1,265,724(50%of that surplus is <br /> $632,862) and the 2012 annual surplus is $1,376,945 (50% of that surplus is $688,473), for a <br /> combined total transfer of$1,321,335 to the Capital Acquisition Fund for the purpose of addressing <br /> governmental capital needs such as street and sidewalk improvements,city shop relocation,building <br /> repairs, and other major infrastructure needs. <br /> NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY <br /> OF SEWARD, ALASKA, that: <br /> Section 1. The amount of$1,321,335 is hereby transferred from the General Fund to the <br /> Capital Acquisition Fund, reducing the General Fund Unassigned Fund Balance to a budgeted <br /> balance of$4,627,124,reflecting 4.5 months' of reserves,within the established goal of three to six <br /> months' reserves. <br />