HomeMy WebLinkAboutOrdinance No. 3187-2021KENAI
CITY OF KENAI
ORDINANCE NO. 3187-2021
Sponsored by: Administration
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS IN THE AIRPORT LAND SALE
PERMANENT FUND TO TRANSFER EARNINGS IN EXCESS OF BUDGETED AMOUNTS TO
THE CITY'S AIRPORT FUND.
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,
WHEREAS, KMC 7.30.020(a)(4) provides for appropriations from the Airport Land Sale
Permanent Fund be limited to 3.8% or 4.2% of the fund's five-year, December 31st fair market
value; and,
WHEREAS, 3.8% of the average five-year December 31st value, may be transferred if the fund's
year end value is below the fund's inflation adjusted value; and,
WHEREAS, 4.2% of the average five-year December 3151 value, may be transferred if the fund's
year end value exceeds the fund's inflation adjusted value; and,
WHEREAS, the Airport Land Sale Permanent Fund's 2020 -year ending balance was $28,632,059
and the five-year average market value was $25,524,254 and is below the inflation adjusted
principal balance of $26,531,145 thus limiting the allowable transfer to the lower bound of
spending rate (3.8%) or $969,922; and,
WHEREAS, the FY2021 budgeted transfer from the Airport Land Sale Permanent Fund was
$955,050 meaning the actual will be $14,872 more than budgeted and increasing the transfer
amount to the maximum amount is in the City'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 Airport Land Sale
Permanent Fund be increased as follows:
Airport Land Sale Permanent Fund:
Increase Estimated Revenues—
Investment Earnings $1 872
Increase Appropriations —
Transfer to Airport Fund $14.872
Ordinance No. 3187-2021
Page 2 of 2
Section 2. 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 3. Effective Date: That pursuant to KMC 1.15.0700, this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 171 day of February,
2021.
ATTEST:
ami Heinz, CMC, City Clerk
Approved by Finance: /
BRIAN GABRIEL SR., MAYOR
Introduced: February 3, 2021
Enacted: February 17, 2021
Effective: February 17, 2021
New Text Underlined; [DELETED TEXT BRACKETED]
KENAI
City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.lcenai.city
MEMORANDUM
TO:
Mayor Gabriel and Council Members
THROUGH:
Paul Ostrander, City Manager
FROM:
Terry Eubank, Finance Director
DATE:
January 22, 2021
SUBJECT:
Ordinance No. 3187-2021 — ALSPF Appropriation Increase
The purpose of this memo is to recommend passage of Ordinance 3187-2021. This Ordinance
will increase the authorized transfer amount from the Airport Land Sale (ALSPF) to the City's
Airport Fund for FY21. This increased amount is possible because earnings were higher than
projected for calendar year 2020.
ALSPF
Pursuant to KMC 7.30.020 (a) (4) the annual transfer from the ALSPF will be based upon the five
(5) year average of the fund's calendar year end market value. An amount not to exceed three
and four-fifths percent (3.8%) of the five (5) year average market value may be distributed if the
average market value is less than the fund's inflation adjusted principal balance. An amount not
to exceed four and one-fifth percent (4.2%) of the five (5) year average market value may be
distributed if the average market value is greater than the fund's inflation adjusted principal
balance.
The December 31, 2020 5 year -average market value of the portfolio ($25,524,254) was below
the inflation adjusted principal ($26,531,145), thus the allowable transfer is limited to the lower
bound of the spending rate (3.8%). The 2020 allowable transfer based upon this calculation is
$969,922.
The FY21 budgeted transfer amount was $955,050. This Ordinance will increase the budgeted
transfer amount to the maximum value of $969,922, an increase of $14,872.
Your support for Ordinance 3187-2021 is respectfully requested.