HomeMy WebLinkAboutOrdinance No. 3029-2018_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3029-2018
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
APPROPRIATIONS IN THE GENERAL AND AIRPORT LAND SALES PERMANENT FUNDS TO
TRANSFER EARNINGS IN EXCESS OF BUDGETED AMOUNTS TO THE CITY’S GENERAL
AND AIRPORT SPECIAL REVENUE 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, section 7.30.010 of the Kenai Municipal Code (KMC) established a fund to account
for the proceeds from sale of land deeded to the City by the US Government for benefit of the
Kenai Municipal Airport, and allows for up to 5% of the five-year average ending balance to be
used for any lawful airport purpose; and,
WHEREAS, the General Land Sale Permanent Fund’s 2017-year ending balance of $3,231,213
was an increase of $235,180 from the December 31, 2016 balance. The allowable transfer to the
General Fund for operations is limited to the lesser of 5% of the funds year ending balance,
$161,561 or the years actual earning $384,982; and,
WHEREAS, the FY2018 budgeted amount for the General Land Sale Permanent Fund was
$150,993 meaning the actual will be $10,568 more than budgeted and increasing the transfer
amount to the maximum amount is in the City’s best interest; and,
WHEREAS, the allowable transfer amount of the Airport Land Sale Permanent Fund with a 2017-
year ending balance of $25,751,927 is $1,210,348; and,
WHEREAS, the FY2018 budgeted transfer amount was $1,191,711 meaning the actual will be
$18,637 more than budgeted and increasing the transfer amount to the maximum amount is in
the City and Kenai Municipal Airport’s best interest.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. That the estimated revenues and appropriations in the General Land Sale
Permanent Fund be increased as follows:
General Land Sale Permanent Fund:
Increase Estimated Revenues –
Investment Earnings $10,568
Ordinance No . 302 9-2018
Page 2 of 2
Increase Appropriations -
Transfer to General Fund $10.568
Section 2. That the estimated revenues and appropriations in the Airport Land Sale
Permanent Fund be increased as follows :
Airport Land Sale Permanent Fund:
Increase Estimated Revenues -
Investment Earnings
Increase Appropriations -
Transfer to Airport Special Revenue Fund
$18 .637
$18 .637
Section 3. Severability: That if any part or provision of this ordinance or a pplication thereof to
any pe rson 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
upon adoption.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of June, 2018.
---L/....=....:....._.:._~t/~~===.._~11'
New T ext Underlined; [DE LETED T EXT BRAC KETED]
Introduced : June 6, 2018
Enacted : June 20, 2018
Effective: June 20 , 2018
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: May 24, 2018
SUBJECT: Ordinance 3029-2018
______________________________________________________________________
The purpose of this memo is to recommend passage of Ordinance 3029-2018. This Ordinance
will increase the authorized transfer amount from the General Land Sale (GLSPF) and Airport
Land Sale Permanent Funds (ALSPF) to the City’s General Fund and Airport Funds for FY18.
This increased amount is possible because earnings were higher than projected for calendar year
2017.
GLSPF
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 31st or actual earnings for the calendar year
The December 31, 2017 market value of the GLSPF was $3,231,213 and 2017 actual earnings
were $384,982. The FY18 transfer amount calculation is as follows:
December 31, 2017
Portfolio Value $3,231,213
5% of Portfolio Value $161,561
Calendar Year Earnings $384,982
FY18 Allowable Transfer $161,561
The FY18 budgeted transfer amount was $150,993. This Ordinance will increase the budgeted
transfer amount to the maximum value of $161,561, an increase of $10,568.
ALSPF
Page 2 of 2
Ordinance 3029-2018
Pursuant to KMC 7.30.020 (a) 4, 5% of the fund’s five-year average, December 31st ending
balance may be transferred to the Airport for operations. The fund’s five-year average, December
31st ending balance was $24,206,962, allowing for a transfer of $1,210,348 as calculated below.
Market Value
Actual Actual Actual Actual Actual
December 31, 2013 2014 2015 2016 2017
Portfolio
Balance
$24,095,421
$24,348,075
$23,149,202
$23,690,184
$
25,751,927
5 Year
Average
FY 19 Budget
$24,206,962 X 5%
$
1,210,348
The FY18 budgeted transfer amount was $1,191,711. This Ordinance will increase the budgeted
transfer amount to the maximum value of $1,210,348, an increase of $18,637.
Your support for Ordinance 3029-2018 is respectfully requested.