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HomeMy WebLinkAboutOrdinance No. 2941-2017r Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2941 -2017 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 31 st market value or the actual calendar year earnings; and, WHEREAS, the December 31 balance for the fund was $2,996,033 and the 2016 calendar year earnings were $208,664; and, WHEREAS, 5% of $2,996,033 produces a maximum allowable transfer of $149,802 which is less than the actual earnings of $208,664; and, WHEREAS, the calculated maximum allowable transfer is $1,793 more than originally budgeted for FYI allowing for an increase to the authorized transfer amount of $1,793. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that: Section 1. Form: That this is a code ordinance. Section 2. That estimated revenues and appropriations be increased as follows: General Land Sales Permanent Fund Increase Estimated Revenues - Investment Earnings $1,793 Increase Appropriations Transfer to General Fund $1,793 New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2941 -2017 Page 2 of 2 Section 3: That pursuant to KMC 1.15.070(f) this Ordinance shall take effect upon enactment. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 1st day of March, 2017. BRIAN GABRIEL, SR., MAYOR Introduced: February 15, 2017 Adopted: March 1, 2017 Effective: March 1, 2017 New Text Underlined; [DELETED TEXT BRACKETED] r� To: Mayor Gabriel Council Members '"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 Thru: Paul Ostrander, City Manager O �/ From: Terry Eubank, Finance Director Date: February 7, 2017 Re: Ordinance 2941 -2017 The purpose of this memo is to recommend passage of Ordinance 2941 -2017. This Ordinance will increase the authorized transfer amount from the General Land Sale Permanent Fund ( GLSPF) to the City's General Fund for FY17. This increased amount is possible because earnings were higher than projected for calendar year 2016. 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, 2016 market value of the GLSPF was $2,996,033 and 2016 actual earnings were $208,664. The FY17 transfer amount calculation is as follows: Market Value December 31, 2016 Portfolio Value $2,996,033 5% of Portfolio Value $149,802 Calendar Year Earnings $208,664 FY17 Allowable Transfer $149,802 The FY17 budgeted transfer amount was $148,009. This Ordinance will increase the budgeted transfer amount to the maximum value of $149,802, an increase of $1,793.