HomeMy WebLinkAboutORDINANCE 1505-1992
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Suggested by: City Council
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City of Kenai
ORDI~ N4. 1505-9~.
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KEN1~I, ALASKA ADDING A NEW
CHAPTER TO THE MUNICIPAL CODE ESTABLISHING ACCOUNTING PROVISIONS FOR
THE CONGREGATE HOUSING FAGILITY.
WHEREAS, the City is constructing a forty unit Congregate Housing
Facility for senior citizen residential housing; and
' WHEREAS, the City Council desires to establish accounting provisions
that will ensure that monies are set aside for mayor capital repairs,
renewals, and replacements of the facility; and
WHEREAS, excess income not needed for a repair and replacement reserve
shall be transferred to the General Fund.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNGIL OF THE CITY OF KENAI,
ALASKA that the City of Kenai Code of Ordinances ie hereby amended by
adding a new chapter to be numbered 7.32, which shall read as follows:
Chapter„ 7_32
CONGREGATE HOUSING FACILITY
Sections:
7.32.010 Congregate Housing Fund Created
7.32.020 Repair and Replacement Reserve
7.32.030 Transfer to General Fund
7.32.010 Congregate Housing Fund Created: Th® Congregate
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Housing Fund is hereby created, which shall be an enterprise fund of
the City. The fund shall consist of the senior citizen residential
housing complex, including motor vehicle parking ar®as, adjacent
grounds, and other assets to be added to the facility. The fund shall
exclude the adjacent multi-purpose Senior Citizen Center. Interest
revenues earned on the fund's equity in the City's central treasury
shall accrue to the fund.
7.32.020 R®pair and Re~lacem,~,ent Reserve: There sha~.l be
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established a reserved retained earnings account which segregates
equity for significant repairs, renewals, and replacements of assets
of the fund. The annual deposit into the reserve account shall be the
sum of (a) and (b) below:
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Ordinance No. 1505-92
Page Two
(a) The greater of (1) or (2) below:
(1) The first $50,000 of annual operating income,
after increasing financial statement operating
income by depreciation on assets financed by
grants externally restricted for capital
acquisitions,
(2) One-half of annual operating income, after
increasing financial statement operating income
by depreciation on assets financed by grants
externally restricted for capital acquisitions.
(b) Interest revenue earned by the fund based upon a
reasonable method of allocation.
(c) No addition to the reserve account, individually or
cumulatively, shall create a deficit in unreserved retained earnings.
It may be necessary to reduce the reserve account to eliminate a
deficit in unreserved retained earnings.
(d) The goal of the City is to continue such annual reserve
account deposits to obtain and maintain a balance of $500,000 in the
reserve account.
(e) Reserved equity may only be spent for purposes that are
determined by the City Council to be significant repairs, renewals, or
replacements to the fixed assets of the fund. Any such appropriations
shall be made by ordinance.
7.32.030 Transfer to General Fund: There shall be an annual
operating transfer from the Congregate Housing Fund to the General
Fund in the amount of (a) minus (b) below:
(a) Income before operating transfers, after increasing
such financial statement income by depreciation on
assets financed by grants externally restricted for
capital acquisitions,
(b) The annual reserve deposit required by KMC 7.32.020
above.
(c) No annual operating transfer shall create a deficit in
unreserved retained earnings.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 1st day of
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Approved by Finance: C ~
(6/10/92)
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Introduced: June 17', 1992
Adopted: July 1, 1992
Effective: August 1, 1992
carol L. Freas, City Clerk