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CITY OF SEWARD, ALASKA
RESOLUTION 2019-023
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING PAYOFF OF AN INTERFUND LOAN OWED
TO THE MOTOR POOL INTERNAL SERVICE FUND FROM THE SMIC
ENTERPRISE FUND IN THE REMAINING AMOUNT OF $490,042.57
RELATED TO THE PURCHASE OF A 330-TON TRAVELIFT, AND
APPROPRIATING FUNDS
WHEREAS, at its meeting of July 14, 2014, the Seward City Council approved
Resolution 2014-054, authorizing the purchase of a 330-ton boat lift and further authorizing a
loan from the Motor Pool Internal Service Fund to the Seward Marine Industrial Center
("SMIC") Enterprise Fund, as part of a funding package; and
WHEREAS, SMIC borrowed $1,029,087 from the Motor Pool Fund for an initial period
of seven years, with said period extended to 2024 during the budget process due to budgetary
constraints; and
WHEREAS, due to the collection of grant administrative fees related to SMIC, the
assignment of expansion costs to a State grant, increased boat lift revenues and recent increased
economic activity at SMIC, the SMIC Enterprise Fund is in a position to repay the loan in full;
and
WHEREAS, the City's taxpayers have been paying for the 330-ton boat lift loan using
General Fund sources due to the SMIC Fund having insufficient resources to pay the loan,
resulting in a drawdown of General Fund reserves each year ranging from $147,012 to $98,008,
and the administration recommends paying off this debt to reduce the budgetary impact on the
General Fund by $98,008.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
Section 1. The Seward City Council hereby authorizes the payoff of an interfund loan
due to the Motor Pool Internal Service Fund from the SMIC Enterprise Fund in the amount of
$490,043 representing the remaining outstanding balance of the loan issued to purchase the 330-
ton boat lift at the Seward Marine Industrial Center.
Section 2. The amount of $490,043 is hereby appropriated and transferred from the
SMIC Enterprise Fund 330-Ton Loan payable account no. (12000-0000-3710-03000) to the
Motor Pool loan receivable account no. (03000-0000-3700-12000).
Section 3. This resolution shall take effect immediately upon adoption.
CITY OF SEWARD, ALASKA
RESOLUTION 2019-023
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
11`h day of March, 2019.
THE CITY OF SEWARD,ALASKA
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Davi Squires,May ay r r
AYES: Towsley, McClure, Lane, Osenga, Horn, Seese, Squires
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Brenda J. Bal u, MMC
City Clerk
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