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HomeMy WebLinkAboutOrdinance No. 2821-2015Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2821 -2015 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING APPROPRIATIONS IN THE GENERAL LAND SALES PERMANENT FUND TO TRANSFER EARNINGS IN EXCESS OF BUDGETED AMOUNTS TO THE CITY'S GENERAL FUND. WHEREAS, Article 5, Section 5 -11 of the City's Charter, requires the proceeds from the Sale of all City owned, non -trust lands be deposited in a separate fund, the General Land Sale Permanent Fund, and allows for the investment earnings to be used for any lawful purpose but prohibits the expending of the proceeds from land sales; and, WHEREAS, the allowable transfer amount for the policy is the lesser of 5% of the funds December 31st market value or the actual calendar year earnings; and, WHEREAS, the December 31 balance for the fund was $2,941,854 and the 2014 calendar year earnings were $164,585; and, WHEREAS, 5% of $2,941,854 produces a maximum allowable transfer of $147,093 which is less than the actual earnings of $164,585; and, WHEREAS, the calculated maximum allowable transfer is $6,959 more than originally budgeted for FY15 allowing for an increase to the authorized transfer amount of $6,959. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that appropriation be increased as follows: General Land Sales Permanent Fund Increase Appropriations Transfer to General Fund $6,959 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 18th day of March, 2015. PAT PORTER, MAYOR ATTES Sandr M i ,City Cl rk Approved by Finance: a��_� Introduced: March 4, 2015 Adopted: March 18, 2015 Effective: March 18, 2015 New Text Underlined; [DELETED TEXT BRACKETED] "'Villaye with a Past, C# with a Future" FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014 v To: Rick Koch, City Manager ✓/From: Terry Eubank, Finance Director l Date: February 24, 2015 Re: Ordinance 2821 -2015 The purpose of this memo is to provide support for passage of Ordinance 2821 -2015. This Ordinance will increase the authorized transfer amount from the General Land Sale Permanent Fund ( GLSPF) to the City's General Fund for FY15. This increased amount is possible because earnings were higher than projected for calendar year 2014. Pursuant to KMC 7.30.020 the annual transfer from the GLSPF shall be equal to the lesser of 5% of the funds value at December 31" or actual earnings for the calendar year The December 31, 2014 market value of the GLSPF was $2,941,854 and 2014 actual earnings were $164,585. The FY15 transfer amount calculation is as follows: Market Value December 31, 2014 Portfolio Value $2,941,854 5% of Portfolio Value $147,093 Calendar Year Earnings $164,585 FY15 Allowable Transfer $147,093 The FY15 budgeted transfer amount was $140,134. This Ordinance will increase the budgeted transfer amount to the maximum value of $147,093.