HomeMy WebLinkAboutRes2007-008
Sponsored by: Yoder
CITY OF SEWARD, ALASKA
RESOLUTION 2007-008
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING THE 2006 BUDGET AND APPROPRIATING
$50,093 IN SALES TAX REVENUES TO THE HOSPITAL DEBT
SERVICE FUND
WHEREAS, the 2006 Operating Budget anticipated that one cent of every four cents in
sales tax collected by the City of Seward would be transferred to the Hospital Debt Service Fund
to be used to pay: the debt service costs related to construction of the hospital facility; the
hospital Public Employees Retirement System (PERS) liability; and to finance major repair and
replacement costs associated with healthcare; and
WHEREAS, the 2006 Operating Budget included an estimated amount of $805,875 in
sales tax revenues to be transferred from the General Fund to the Hospital Debt Service Fund,
based on estimated total sales tax cash receipts of$3,223,500; and
WHEREAS, the actual sales tax receipts from the Kenai Peninsula Borough during 2006
are expected to exceed budgeted estimates by approximately $200,370, requiring an additional
transfer of $50,093 to the Hospital Debt Service Fund, for a total annual transfer from the
General Fund to the Hospital Debt Service Fund of $855,968.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. The 2006 Operating Budget shall be amended by appropriating an additional
$50,093 from the General Fund Transfers-Out account no. 101-0000-3070-0801 to the Hospital
Debt Service Fund Transfers-In account no. 801-0000-3070-0101.
Section 2. This resolution shall be retroactive to December 31, 2006.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
22nd day of January, 2007.
THE CITY OF SEWARD, ALASKA
f~~
Vanta Shafer, Mayor
CITY OF SEWARD, ALASKA
RESOLUTION 2007-008
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Dunham, Valdatta, Schafer, Bardarson, Thomas, Amberg, Shafer
None
None
None
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City Clerk, CMC
(City Seal)
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COUNCIL AGENDA STATEMENT
Meeting Date: January 22, 2007
Through: Marvin Yoder, Interim City Manager
From: Kristin Erchinger, Finance Director
Agenda Item: 2006 Budget Amendment appropriating additional sales tax revenues to the
Hospital Debt Service Fund
BACKGROUND & JUSTIFICATION:
The City Council has historically agreed to allocate one cent of every four cents in sales tax
toward hospital-related costs to pay debt service costs related to construction of the new hospital
facility, retire the hospital Public Employee’s Retirement System (PERS) liability, and to provide
for major repairs and replacement for healthcare facilities. The 2006 Budget included an
estimated amount of $805,875 to be transferred from the General Fund to the Hospital Debt
Service Fund, based on estimated sales tax receipts of $3,223,500.
The actual sales tax collected from the Kenai Peninsula Borough during 2006 is expected to
exceed budgeted projections by approximately $200,370, necessitating a budget amendment.
Based on the total sales tax collected, an additional $50,093 must be transferred from the General
Fund to the Hospital Debt Service Fund, bringing the total transfer for 2006 to $855,968. This
amount will offset the total 2006 debt service payments on the hospital bond of $720,563, leaving
a surplus of $135,405 that can be made available for future hospital capital expenditures.
CONSISTENCY CHECKLIST: Yes No
1. Comprehensive Plan
2. Strategic Plan
3. Other
4. Not applicable X
FISCAL NOTE:
Additional unbudgeted sales tax revenues will be utilized to facilitate this transfer, so there is no
adverse impact to the General Fund’s fund balance.
Approved by Finance: ______________________________
RECOMMENDATION:
Council approve Resolution 2007-____ amending the 2006 Operating Budget by appropriating an
additional $50,093 from the General Fund Transfers-Out account to the Hospital Debt Service
Fund Transfers-In account, effective December 31, 2006.