HomeMy WebLinkAboutRes2016-008 Sponsored by: Hunt
CITY OF SEWARD,ALASKA
RESOLUTION 2016-008
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, RETROACTIVELY AMENDING THE 2015 BUDGET AND
APPROPRIATING AN ADDITIONAL $134,787.84 IN SALES TAX
REVENUE TO THE HOSPITAL ENTERPRISE FUND
WHEREAS, the 2015 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 Enterprise Fund to
pay healthcare related costs including debt service costs for the long-term care facility; the
hospital Public Employees Retirement System (PERS) liability; major repair and replacement
costs, capital costs and operating costs associated with healthcare; and
WHEREAS, actual sales tax receipts from the Kenai Peninsula Borough during 2015
totaled $4,909,151.36, requiring an additional transfer over budget, of $134,787.84 to the
Hospital Enterprise Fund, for a total annual transfer from the General Fund to the Hospital
Enterprise Fund of$1,227,287.84.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. The 2015 Operating Budget shall be amended as follows: 1) increase sales
tax revenue account 01000-0000-4000 by $527,644 to a total of$4,909,151; and 2) appropriate
an additional $134,787.84 from the General Fund Transfers-Out account no. 01000-0000-3710-
0000-19100 to the Hospital Enterprise Fund Transfers-In account no. 19100-0000-3700-0000-
01000.
Section 2. This resolution shall be retroactive to December 31, 2015.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 8th
day of February, 2016.
THE CITY OF SEWARD, ALASKA
can Bardarson,Mayor
CITY OF SEWARD,ALASKA
RESOLUTION 2016-008
AYES: Keil, Squires, Butts, McClure, Altermatt, Bardarson
NOES: None
ABSENT: Casagranda
ABSTAIN: None
ATTEST:
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J s anna Kinne'
ty Clerk, CMC
(City Seal)
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Council Agenda Statement
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Meeting Date: February 8, 2016 -, t'�'�
To: Honorable Mayor and 1-mb-. s of the City Council q� p
Through: City Manager Jim Hun
From: Kristin Erchinger, Finance Director W"
Agenda Item: Appropriation of additional sales tax to Hospital Enterprise Fund
BACKGROUND &JUSTIFICATION:
The City of Seward sets aside a 1% sales tax(currently one-fourth of all sales tax revenues)for the
purpose of supporting local healthcare. When the City first initiated a sales tax in March, 1982
(Ordinance No. 507), the Ordinance explicitly addressed the funding of healthcare in Seward as a
primary purpose of the tax. The 2015 Budget anticipated total sales tax revenues of$4,381,507,and
the amount to be allocated for healthcare, of$1,092,500. {Note: This amount is not exactly one-
quarter of estimated sales tax revenues due to a budget amendment to revenues that failed to also
allocate one-quarter of that amount for healthcare.} These funds are used to cover bond payments,to
repay unfunded retirement liabilities associated with former Seward General Hospital employees,for
facility capital costs, and for operational shortfalls.
Preliminary sales tax cash receipts in 2015 were$4,909,151,representing an increase of$362,142
from the prior years' cash receipts. One-quarter of total sales tax cash receipts amounts to a total
transfer to the Hospital Enterprise Fund of $1,227,288, necessitating an additional transfer of
$134,788 over budget.
INTENT:
The intent of this resolution is to continue the practice of transferring 1/4 of all sales tax revenue from
the General Fund to the Hospital Enterprise Fund for healthcare-related purposes.
CONSISTENCY CHECKLIST: Yes No N/A
1. Comprehensive Plan (document source here):
2. Strategic Plan (document source here):
3. Other(list): 2015 Budget p. 79 and p. 161. X
FISCAL NOTE:
This action has no net financial impact on the City,but will provide additional fundin of$1 34,788
for healthcare purposes. Approved by Finance Department: 56.0,
ATTORNEY REVIEW: Yes No X
RECOMMENDATION: 1 s - O0?
Seward City Council authorize the transfer of an additional$134,788 in sales tax revenue from the
General Fund to the Hospital Enterprise Fund.