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HomeMy WebLinkAboutRes2017-017Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2017-017 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, RETROACTIVELY AMENDING THE 2016 BUDGET TO ACCOUNT FOR ADDITIONAL SALES TAX TO THE HOSPITAL FUND BASED ON ADDITIONAL COLLECTIONS AND CLOSING OUT COMPLETED PROJECTS AT YEAR-END, AND APPROPRIATING FUNDS WHEREAS, the 2016 Operating Budget accounted for one -quarter of all sales tax collections by the City of Seward to 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, the actual sales tax receipts from the Kenai Peninsula Borough during 2016 totaled $4,958,688.88, requiring an additional transfer in excess of the budget, of $95,922.23 to the Hospital Enterprise Fund, for a total annual transfer from the General Fund to the Hospital Enterprise Fund of$1,239,672.23; and WHEREAS, a number of grant projects have been completed at the end of 2016, requiring the residual transfer of cash between Funds to close out those grants and projects. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The 2016 Operating Budget shall be retroactively amended as follows: 1) increase sales tax revenue account 01000-0000-4000 by $383,688.92 to a total of $4,958,688.92 based on sales tax receipts; and 2) appropriate an additional $95,922.23 from the General Fund Transfers -Out account no. 01000-0000-3710-0000-19100 to the Hospital Enterprise Fund. Section 2. The 2016 Budget shall be retroactively amended to close out grants and projects, as follows: a. Funding in the amount of $412,712 is hereby appropriated from CPV Funds toward US Army Corps breakwater loan per Resolution 2015-15 from account 11103-0000-3721- 11000; and b. Funding in the amount of $717,503.99 is hereby appropriated from CPV Funds toward US Army Corps breakwater loan per Resolution 2015-15 from account 11113-0000- 3721-11000; and c. Funding in the amount of $53,680 in unspent funds originating from the Harbor for the Harbor Float replacement project is hereby appropriated and returned to the Harbor from 11370-0000-3721-11000; and d. Funding in the amount of $23,891.87 in unspent funds originating from the Harbor MRRF for the Harbor Float replacement project is hereby appropriated and returned to the Harbor MRRF from 11370-0000-3721-11001; and CITY OF SEWARD, ALASKA RESOLUTION 2017-017 e. Funding in the amount of $53,684.92 in CPV funds representing the State of Alaska's additional administrative fee for the close-out of the harbor float replacement project is hereby appropriated from 11113-0000-3710-11372; and f. Funding in the amount of $33,155.42 in unspent funds from the completed Northeast Harbor Fish Cleaning Station is hereby appropriated to the South Harbor launch ramp project in accordance with the requirements of Resolution 2016-033, from 11390-0000- 3721-11420; and g. Funding in the amount of $9,888.36 is hereby appropriated from the General Fund to close out the ALPAR project from account 01000-0000-3710-30113; and h. Funding in the amount of $13,516.18 in unspent funds originating from the Electric MRRF for the Electric Generator Project is hereby appropriated and returned to the Electric MRRF from 15320-0000-3720-15001; and i. Funding in the amount of $215,237.62 in unspent funds from the North water storage tank project is hereby appropriated to the Lowell Canyon water storage tank refurbishment project from 17310-0000-3721-17330; and j. Funding in the amount of $659.85 in unspent funds from the Fire Simulator project is hereby appropriated and returned to the General Fund from 81030-0000-3710-01000. Section 3. This resolution shall be retroactive to December 31, 2016. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 281n day of March, 2017. THE CITY OF SEWARD, ALASKA 6)t/16� can Bardarson, Mayor AYES: Casagranda, Keil, Squires, McClure, Altermatt, Slater, Bardarson NOES: None ABSENT: None ABSTAIN: None FIN11 lVaLl F J�Cu 1Ls Jo anna Kinn Clerk, CMC (City Seal) 46 • SEAL 10 • •b q�. �• •'tigrF OF A'1,PS•`��s 1 1 1 Council Agenda Statement Meeting Date: March 28, 2016 To: Honorable Mayor and Members of the City Council Through: Jim Hunt, City Manage From: Kristin Erehinger, Finance Director w Agenda Item: Retroactive appropriation of additional sales tax to Hospital Enterprise Fund and close-out of projects at year-end 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 2016 Budget anticipated total sales tax revenues of $4,575,000, and the amount to be allocated for healthcare, of $1,143,750. Sales tax monies are legally required to be used to cover healthcare bond payments per bond covenants, and are available to repay unfunded retirement liabilities associated with former Seward General Hospital employees, for facility capital costs, and for operational needs for healthcare -related operations. Preliminary sales tax cash receipts in 2016 were $4,958,689 with one -quarter of total sales tax cash receipts requiring a transfer to the Hospital Enterprise Fund of $1,239,672, necessitating an additional transfer of $95,922.23. In addition to a retroactive adjustment for sales taxes, the City has completed a number of projects which requiring close-out at the end of the year. Many of these projects can be closed out without explicit appropriation, such as the return of unspent monies on a project to the donor Fund. However, itemizing these transfers via individual appropriations allows the public to see that certain City projects did not utilize all available resources, and the extent to which unspent funds are made available for other priorities and needs. One of the major year-end appropriations is the allocation of CPV Funds to the loan between the City and the US Army Corps of Engineers for the harbor breakwater project. The outstanding balance on the loan is $1,201,195.99, and these transfers will provide the Harbor with the funds to pay off that loan if the Council makes a decision to do so. The allocation of CPV Funds for this purpose was authorized via Resolution 2015-015. The transfers will encumber all remaining CPV funds received to date. An appropriation of remaining funds from the North Seward water storage tank ($215,237.62) is transferred to the Lowell Canyon water storage tank refurbishment, as the next priority water storage tank project. Any future work on that project will require Council appropriation of these funds. An appropriation of remaining funds from the Harbor fish cleaning project ($33,155.42) is made to the South Harbor launch ramp project. The City has committed to the State its willingness to provide 25% of funding for the replacement of the South Harbor launch ramp, with the State covering the remaining 75%, and these unspent project funds will assist with accumulating the City's required grant match. An appropriation of funds to close out the ALPAR project ($9,888.36) results from a reduction in grant funds available for the litter control and prevention project. The City will seek additional grant funding for this activity in the future or will need to scale back its litter control efforts in the future. A number of completed projects with unspent monies are closing out and returning any remaining monies to the Funds which provided the initial matching funds ($659.85 Fire Simulator project), ($13,516.18 Electric Generator project); ($23,891.87 and $53,680 Harbor float project), INTENT: The intent of this resolution is to continue the practice of transferring'/4 ofall sales tax revenue from the General Fund to the Hospital Enterprise Fund for healthcare -related purposes, and to close out projects at year-end, with a retroactive adjustment to the 2016 budget. CONSISTENCY CHECKLIST: Yes No NIA 1. 2. Comprehensive Plan (document source here): Strategic Plan (document source here): 3. 1 Other (list): Resolution 2015-15; Resolution 2016-33; 2016 Budget p. 76. X FISCAL NOTE: This action will increase funding available for healthcare purposes by $95,922. It will complete the accumulation of monies needed to repay the $1.2 million loan with the US Army Corps of Engineers for the breakwater project. It will provide matching funds for upcoming projects ($215,233 for the Lowell Canyon water tank; and $33,155 for the South harbor launch ramp replacement). Approved by Finance Department: Xt ATTORNEY REVIEW: Yes No X RECOMMENDATION: Seward City Council authorize the transfer of an additional $95,955.23 in sales tax revenue from the General Fund to the Hospital Enterprise Fund, and the close-out of various projects at year-end, with corresponding interfund transfers as identified within the resolution.