HomeMy WebLinkAboutORDINANCE 1203-19870
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Suggested By:
CITY OF xmmz
ORDIxAMCs 1203-87
Administration
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA,
INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $408,113 IN
THE 1984/1986 ADVANCE REFUNDING DEBT SERVICE FUND.
WHEREAS, as a result of an accounting change to be implemented in
the current fiscal year, debt service payments on 1984 and 1986
advance refunding general obligation debt will be accounted for
in a new Debt Service Fund, rather than a series of Special
Assessment Funds; and,
WHEREAS, such debt service payments made in the 1986-1987 year
amount to $408,112.49; and,
WHEREAS, legal adoption of a Debt Service Fund budget will allow
better and clearer disclosures in the City's June 30, 1987
financial statements.
NOW THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA that estimated revenues and appropriations be increased as
follows:
1984/1986 Advance Refunding Debt Service Fund
Increase Estimated Revenues:
Special Assec:Tments
Increase Appropriations:
Principal
Interest
PASSED BY THE COUNCIL OF THE
of May, 1987.
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4013 's
$198, 206
209.907 ='
408 113 ...... ', :.:
CITY OF KENAI, ALASKA, this 20th dap
OHN-J WILLIAMS, MAYOR r`
ATTEST:
VaAtzz-
P"Ot Whelan, City Clerk
First Reading:
Second Reading:
Effective Date:
Approved by Finance: CV_
(4/17/87)
CITY OF KENAI, ALASKA, this 20th dap
OHN-J WILLIAMS, MAYOR r`
ATTEST:
VaAtzz-
P"Ot Whelan, City Clerk
First Reading:
Second Reading:
Effective Date:
Approved by Finance: CV_
(4/17/87)
May 6,
1987
May 20,
1987
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May 20,
1987
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M®ID TO: Kenai City Council
FM: Charts A. Brown, Finance Direator
DAIS: April 17, 1987 t°aQ
=511Mt: Special Assessments
The Governmental Accounting Standards Hoard (GASS) has recently issued
Statement No. 6, Accounting and Financial Reporting for Special
Assessments. The Statement is effective for fiscal years beginning
after June 15, 1987, meaning that we don't have to apply the statement
to our 1986-87 financial statements. However, I believe it is to the
City's advantage to apply the Statement early, to our 1986-87
financial statements. The reasons for this are the beneficial
treatment of the special assessment (G.O.) debt in the General
Long-term Debt Account Group, at,d the accounting treatment applied to
the advance refunding of such debt which took place in August, 1986.
To summarize, application of GASS #6 will result in:
1) Elimination of the Special Assessment fund type.
2) Shifting the llability for the special assessment bonds (which
in our case are in fact general obligation bonds) from the
Special Assessment Funds to the General Long-term Debt Account
Group.
3) Recording construction activity related to Special Assessments
in the Capital Project Funds.
4) Recording debt payments relating to the bonds in a new Debt
Service Fund.
5) Recording assessments receivable in the General Fund or Debt
Service Funds, as appropriate.
In the past, the City has budgeted for construction activity in
special assessment funds, but we have not budgeted for debt payment
activity, relying upon bond covenants approved by ordinance as payment
authorization. while we no doubt still have such authority, as a
matter of practice, the City does budget for debt payments in Debt
Service Funds.
The long and short of this tale is that if I don't prepare a budget ,.t.
for the new 1984/1986 Refunding Debt service Fund for the current
year, when I apply GASH #6 to our 6-30-87 financial statements I'll`
have a a reporting problem. I'll have some, but not all, Debt Service
Funds with annual budgets. _ __ '
I ask the Council Council to adopt the attached ordinance providing
such a budget. I will prepare appropriate amendments to next year's
-
budget . �
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