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Home My WebLink AboutRes2013-004 Sponsored by: Hunt CITY OF SEWARD, ALASKA imp RESOLUTION 2013 -004 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE 2012/2013 BIENNIAL BUDGET TO REFLECT MID -CYCLE BUDGET CHANGES, SETTING THE MILL RATE (UNCHANGED) FOR 2013, AND APPROPRIATING FUNDS WHEREAS, the 2012/2013 Biennial Budget was passed on December 12, 2011, reflecting the City's second biennial budget, and covering the period from January 1, 2012 through December 31, 2013; and WHEREAS, the City conducts a mid -cycle budget adjustment at the end of each even - numbered year, to adjust the "off budget year" to reflect changes to the budget based on updated revenue information, economic conditions, newly anticipated costs, and other timely and relevant information impacting the upcoming budget year; and WHEREAS, this resolution adopts specific changes to the General Fund, the Harbor Enterprise Fund, the Electric Enterprise Fund, the Water Enterprise Fund, the Wastewater Enterprise Fund, the Motor Pool Internal Service Fund, and the Healthcare Enterprise Fund with each specific line item change being reflected on the spreadsheet attached hereto; and WHEREAS, this resolution further sets the mill rate for 2013 unchanged, at 3.12 mills. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The General Fund 2013 Budget is hereby amended and funds are hereby appropriated, according to the specific modifications included on the attached spreadsheet, as follows: 1) Revenues are increased by $380,000; 2) Expenditures are increased by $267,952; and 3) Transfers -out are increased by $10,000 for a total increase in the General Fund budgeted fund balance of $102,048. Section 2. The Harbor Enterprise Fund 2013 Budget is hereby amended and funds are hereby appropriated, according to the specific modifications included on the attached spreadsheet, as follows: 1) Revenues are unchanged; 2) Expenses are increased by $91,360; and 2) inter -fund transfers are unchanged, for a total net decrease in the Harbor Enterprise Fund budgeted net assets of $91,360. CITY OF SEWARD, ALASKA RESOLUTION 2013 -004 Section 3. There are no budget amendments to the Seward Marine Industrial Center Enterprise Fund or Parking Enterprise Fund 2013 Budgets. Section 4. The Electric Enterprise Fund 2013 Budget is hereby amended and funds are hereby appropriated, according to the specific modifications included on the attached spreadsheet, as follows: 1) There are no changes to revenues or transfers; and 2) Expenses are increased by $33,990, for a total net decrease in budgeted net assets of $33,990. Section 5. The Water Enterprise Fund 2013 Budget is hereby amended and funds are hereby appropriated, according to the specific modifications included on the attached spreadsheet, as follows: 1) There are no changes to revenues or transfers; and 2) Expenses are increased by $63,071, for a total net decrease in budgeted net assets of $63,071. Section 6. The Wastewater Enterprise Fund 2013 Budget is hereby amended and funds are hereby appropriated, according to the specific modifications included on the attached spreadsheet, as follows: 1) There are no changes to revenues or transfers; and 2) Expenses are increased by $62,111, for a total net decrease in budgeted net assets of $62,111. Section 7. The Healthcare Enterprise Fund 2013 Budget is hereby amended and funds are hereby appropriated, according to the specific modifications included on the attached spreadsheet, as follows: 1) There are no changes to budgeted revenues or expenses; and 2) Transfers -in from the General Fund will increase by $10,000 related to an increase in budgeted sales tax revenues, for a total net increase in budgeted net assets of $10,000. Section 8. The Motor Pool Internal Service Fund 2013 Budget is hereby amended and funds are hereby appropriated, according to the specific modifications included on the attached spreadsheet, as follows: 1) Expenses are hereby increased by $75,000 to reflect 2012 unspent appropriations for a used dump truck carrying over to 2013; 2) revenues and transfers are unchanged, for no net change in budgeted net assets for 2012 and 2013 combined. Section 9. The total assessed valuation as determined by the Kenai Peninsula Borough Assessor, and any supplemental assessment rolls for said period which may be certified by the Borough Assessor at a future date, shall be the basis for computing estimated property tax revenues for the City of Seward, Alaska. Section 10. The rate of levy on the 2013 real and personal property tax rolls shall be and is hereby levied at the rate of 3.12 mills per dollar of assessed valuation in Municipal Service Zones One (Borough designation TCA 40) and Two (Borough designation TCA 41). Section 11. This resolution shall take effect immediately upon its adoption. CITY OF SEWARD, ALASKA RESOLUTION 2013 -004 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14` day of January, 2013. THE CITY OF SEWARD ALASKA David Seawar s , ayor AYES: Valdatta, Bardarson, Keil, Shafer, Casagranda, Terry, Seaward NOES: None ABSENT: None ABSTAIN: None ATTEST: Johanna Kinne , , - . ty Clerk (City Seal) sol os BM fsit °%ok.4 O F SE...... • o° CP ,1^ • <a r/ ∎ • ® • SEAL • r ♦ • •• / • i •• A� P �.• ° COUNCIL AGENDA STATEMENT , of � SE- " � q� ,'' 0 Meeting Date: January 14, 2013 :t Through: James Hunt, City Manager ,'�) deASKP From: Kristin Erchinger, Finance Director ' " RE: Mid -Cycle Budget Modifications for 2013 Budget and setting 2013 mill rate BACKGROUND & JUSTIFICATION: The City of Seward passed its 2012/2013 biennial budget on December 12, 2011covering the period January 1, 2012 through December 31, 2013. The resolution before Council today represents a mid -cycle budget adjustment which is submitted at least once during the off -year of each biennial budget cycle (generally at the end of each even - numbered year, in preparation for the second year of the approved biennial budget). The purpose of the adjustment is to update information relative to current economic conditions, changes to major revenue categories, newly- acquired or more timely information regarding changes in costs which tend to swing broadly (i.e. heating fuel, health insurance), and any additional relevant financial information that is expected to impact the upcoming budget cycle. The Seward City Council met with staff in three budget work sessions on November 5, 6, and 7, 2012. The first budget work session focused on mid -cycle budget adjustments in all funds, primarily related to increased utility costs, refuse rate increases, health insurance and workers' compensation rate increases. The remaining two budget worksessions focused on capital budgets for all funds. During the off - budget year, staff has committed to doing a deeper dive on big -topic issues such as long -range financial planning, enterprise fund rate reviews, and capital budgeting. This year's budget work by the administration focused on improving the City's capital budget cost estimates and refining critical and high -risk capital needs. INTENT: To modify the 2013 approved budget to reflect mid -cycle budget adjustments, and to approve the 2013 property tax mill rate which will remain unchanged from 2012. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): X 2. Strategic Plan (document source here): X 3. Other (list): X ATTORNEY REVIEW: Yes X No FISCAL NOTE: The net overall impact to fund balance /net assets in each Fund, resulting from the proposed budget modifications, is as follows: General Fund increase in fund balance $ 102,048 Harbor Enterprise Fund decrease in net assets $( 91,360) SMIC Enterprise Fund and Parking Enterprise Fund no change Electric Enterprise Fund decrease in net assets $( 33,990) Water Enterprise Fund decrease in net assets $( 63,071) Wastewater Enterprise Fund decrease in net assets $( 62,111) Healthcare Enterprise Fund increase in net assets $ 10,000 Motor Pool Internal Service Fund (net for 2012/2013) no change 07013° RECOMMENDATION: City Council approve Resolution 2012- amending the 2013 Budget, setting the 2013 mill rate unchanged at 3.12 mills, and appropriating funds. CITY OF SEWARD 2013 Mid -Cycle Budget Adjustments Administration Recommendations GENERAL FUND: Amount Department COST ADDITIONS: Delay retirement of fire position 20,000 Fire Building inspection- related certification/inspection training & travel 1,000 Building Utility costs under- budgeted 45,000 All GF depts Utility rate increases for 2013 17,000 All GF depts Refuse 25% cost increases 17,000 All GF depts Workers' compensation insurance 20,776 All GF depts Heating fuel costs under- budgeted 10,000 All GF depts Heating fuel cost increases for 2013 2,800 All GF depts Property, general liability insurance (8 %) 17,888 All GF depts Health insurance (5 %) 57,388 All GF depts Planning and Zoning training/travel 2,000 Boards Increased funding to senior center 10,000 Contributions Host Obihiro Delegation in 2013 20,000 Mayor & Council New accounting software training/travel 5,000 Finance Clerk's department equipment rent 100 City Clerk Move unspent Codification funds ($5K) from 2012 to 2013 - City Clerk Police department overtime 22,000 Police 267,952 REVENUE ADDITIONS: Raw fish tax receipts over budget in 2013 to GF 200,000 New campground dump station fee ($5 each) 20,000 Jail contract funding increase 90,000 Sales tax revenue increase 40,000 Offset by 1/4 of sales tax revenue increase going to hospital d/s fund (10,000) Project management fees 30,000 370,000 TRANSFER -OUT ADDITIONS: Transfer to Healthcare Enterprise Fund (1/4 of sales tax increase) 10,000 Harbor Enterprise Fund Power for resale (purchased from Electric Fund) underbudgeted 56,000 Power for resale (2013 utility cost increase) 12,300 Utilities (to account for refuse increase) 12,500 Increase health insurance (5 %) 10,560 591,360 Electric Enterprise Fund Utilities underbudgeted 21,000 Utilities cost increases 2013 3,950 Heating fuel 5,200 Increase health insurance (5 %) 3,840 S33,990 Water Enterprise Fund Utilities underbudgeted 50,000 Utilities cost increases 2013 10,000 Increase health insurance (5 %) 3,071 S63,071 Wastewater Enterprise Fund Utilities underbudgeted 50,000 Utilities cost increases 2013 10,000 Increase health insurance (5 %) 2,111 S62,111 Motor Pool Fund Move 2012 used dump truck funding ($75K) to 2013 $75,000 Healthcare Enterprise Fund Transfers -In from General Fund (representing 1/4 of sales tax increase) $10,000