HomeMy WebLinkAboutOrdinance No. 2255-2007Suggested by: Administration
CITY OF KENAI
ORDINANCE NO. 2255-200?
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY X36,909.53 IN THE GENERAL
FUND TO PROPERLY ACCOUNT FOR IN KIND SERVICES PROVIDED TO THE
SOCCER PARK CAPITAL PROJECT FUND.
WHEREAS, in FY2007 General Fund personnel performed work related to the Soccer
Park Capital Project, for which the Soccer Park Capital Project Fund was charged
$19,209.53; and,
WHEREAS, General Fund equipment was used in performing this work for which the
Soccer Park Capital Project Fund was charged $17,700. This amount was recorded as
Miscellaneous Revenue in the General Fund in FY2007; and,
WHEREAS, the costs paid by the Soccer Park Capital Project Fund result in a cash
shortfall in the fund of $36,909.53; and,
WHEREAS, these funds are in the General Fund fund balance as a result of the
FY2007 transactions noted above; and,
WHEREAS, a transfer to the Soccer Park Capital Project Fund from the General Fund
in the amount of $36,909.53 needs to be done to close the project.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA that estimated revenues and appropriations be increased as follows:
General Fund
Increase Estimated Revenues:
Appropriation of fund balance $36,909.53
Increase Appropriations:
Transfer to Capital Project $36,909.53
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17~ day of
October, 2007. (~ C/ ~~-Lr,/
PAT PORTER, MAYOR
ATTEST:
Carol L. Freas, City Clerk
Approved by Finance:
(09/17/2007)hl
Introduced: October 3, 2007
Adopted: October 17, 2007
Effective: October 17, 2007
MEMORANDUM
To: City Council
~`' Through: Rick Koch, City Manager
From: Larry Semmens, Finance Director
Date: September 24, 2007
Subject Ordinance 2255-2007 Soccer Park Transfer
This ordinance is a cleanup measure to close out the Soccer Park Capital Project Fund.
Ordinance 2217-2007 increased estimated revenue and appropriations by $115,140 in the
capital project fund for in-kind services. Otu auditors do not agree with the
characterization of wages and equipment used on the project as `in kind' services
revemie. So the wages were charged to the project instead of to the General Fund and the
equipment utilized was charged to the pi°oject as if it were rented from an outside
company. The General Fund reported revenue from the capital project fund in FY 2007.
The result is that the FY 2007 General I~'und fund balance increased From what was
expected by the amount of $19,209.53 for wages charged to the project and by $17,700
for equipment rental revenue from the capital project fund. This totals $36,909.53 and is
currently in the fetid balance of the General fund.
Since the capital project fund used cash in this amount but did not receive cash to cover
the expenditures, if is short of cash at the end of the project. The appropriate place to get
this cash is the General Fund since it benefited from the `in-kind' h-ansactions in FY
2007.
After this ordinance takes effect, the fired balance of the General Fund will be the same
as it would have been if these `in-kind' transactions had not taken place last year.
The City does not typically chv-ge grant funded projects in this manner; however, tlus
project used substantially more General Fund services than is typical and charging these
services to the project more accurately captures the full cost of the project.
The final cost for the project was $688,31635 including $10,465.11 fees (7.5% of a
portion of the grant) paid to the State of Alaska for administering the federal grant of
$326;548.