Loading...
HomeMy WebLinkAboutOrdinance No. 2982-2017CITY OF KENAI ORDINANCE NO. 2982-2017 Sponsored by: Administration AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE SECTION 7.30.010 -AIRPORT LAND SALE PERMANENT FUND, TO ELIMINATE REFERENCES TO THE AIRPORT ENTERPRISE FUND WHICH IS NO LONGER UTILIZED. WHEREAS, The City operates a permanent fund which invests the proceeds from the sale of property deeded to the City by the Federal Aviation Administration for the use and benefit of the Kenai Municipal Airport; and, WHEREAS, in July 2008 via Ordinance 2326-2008, a new investment methodology was authorized for the Airport Land Sale Permanent Fund; and, WHEREAS, Ordinance 2326-2008 also established a percent of market value distribution methodology for the fund by which the annual transfer from the permanent fund to the Airport Special Revenue Fund, for airport operations and capital purchases, cannot exceed five (5) percent of the five (5) year average of the fund's calendar year end market value; and, WHEREAS, KMC 7.30.010 references an Airport Enterprise Fund and should be amended as operations of the airport are accounted for utilizing a special revenue fund; and, WHEREAS, this is essentially a housekeeping amendment as there will be no change in the management of, accounting for, or distributions from the Airport Land Sale Permanent Fund. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is a code ordinance. Section 2. Amendment of Section 7.30.010 of the Kenai Municipal Code: That Kenai Municipal Code, Section 7.30.010, is hereby amended as follows: 7.30.010 Airport Land Sale Permanent Fund. (a) A separate fund of the City of Kenai is hereby established as the Airport Land Sale Permanent Fund. The purpose of the fund is to account for the principal proceeds of the sale of Airport Land. Airport Lands shall consist of all land owned by the City of Kenai and held by it for the use or benefit of the Kenai Municipal Airport under the terms of the 1963 Quitclaim Deed from United States of America recorded at Book 27, Page 303 at the Kenai Recording District, Kenai, Alaska. Additionally, any other land owned by the City and acquired with airport funds shall be Airport Lands. (b) The Airport Land Sale Permanent Fund shall be a restricted fund. The establishment of the fund known as the Airport Land Sale Permanent Fund is within the discretion of the Kenai City New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2982-2017 Page 2 of 2 Council. Deed restrictions, Federal regulations and grant assurances require that airport funds be used for the use and benefit of the Kenai Municipal Airport. (c) The net proceeds received by the City on closing sale of Airport Lands shall be deposited in the Airport Land Sale Permanent Fund. Where notes are taken in payment for Airport Lands, all [PRINCIPAL] payments on said notes shall be deposited in the Airport Land Sale Permanent Fund. [INTEREST ON NOTES TAKEN IN PAYMENT FOR AIRPORT LANDS SHALL BE TRANSFERRED TO THE AIRPORT ENTERPRISE FUND.] (d) Money placed in the Airport Land Sale Permanent Fund shall not be available for use by the City for any purpose other than for investments in accordance with City ordinances. (e) [INTEREST OR INCOME EARNED BY THE AIRPORT LAND SALE PERMANENT FUND SHALL BE DEPOSITED IN THE AIRPORT ENTERPRISE FUND.] The City Council may, by ordinance, transfer funds from the Airport [ENTERPRISE] Special Revenue Fund to the Airport Land Sale Permanent Fund. After such a transfer, the money will become a part of the Airport Land Sale Permanent Fund to be used only for the investment purposes for which the fund is established. Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 201" day of September, 2017. BRIAN GABRIEL SR., MAYOR Heinz, City Clerk Introduced: September 6, 2017 Enacted: September 20, 2017 Effective: October 20, 2017 New Text Underlined; [DELETED TEXT BRACKETED] �\ tl�e city of v MEMORANDUM 11111a<e wit�i a fast, ('i� alit% a Ftw�e �� 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 1 Fax: (907) 283-3014 www.kenai.city TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager"Fc-�% -75�0011 FROM: Terry Eubank, Finance Director DATE: August 31, 2017 SUBJECT: Ordinance 2982-2017 The purpose of this memo is to recommend adoption of Ordinance 2982-2017. Ordinance 2982- 2017 will amend KMC 7.30.010 to reflect current practice and the correct fund title and type. Currently KMC 7.30.010 references an "Airport Enterprise Fund". The Kenai Municipal Airport is accounted for as a Special Revenue Fund and not an Enterprise Fund. This change is essentially housekeeping in nature and will not impact any account balances or the methods by which the operations of the Airport are accounted for. KMC 7.30.010 should have been amended with the 2008 change in investment and distribution methodology. Current practice is to record all investment earnings and land sales in the fund and base distribution on the average five year ending balance. Discussion of distributions was no longer needed in 7.30.010 with the adoption of Ordinance 2326-2008 which created KMC 7.30.020(f) which defines how distribution are to be made from the fund. This ordinance will remove the distribution provisions from this chapter. This ordinance completes the changes started with Ordinance 2326-2008 and the changes reflect current practice. Your support is respectfully requested.