HomeMy WebLinkAboutOrdinance No. 2413-2009ry.
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SUBSTITUE
Suggested by: Administration
ORDINANCE NO. 2413-2009
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY $283,044.08 IN THE AIRPORT
LAND SALES PERMANENT FUND AND BOTH INCREASING AND DECREASING
ESTIMATED REVENUES IN THF_. AIRPORT FTTND FOR FUNDS RECEIVED FROM THE
AIRPORT LAND SALES PERMANENT FUND.
WHEREAS, prior to Ordinance 2326-2008 all investment earnings of the Airport Land
Sales Permanent Fund were budgeted and reported as investment earnings in the
Airport Fund; and,
WHEREAS, Ordinance No. 2326-2008, KMC 7.30.020, changed the investment
methodology for the Airport Land Sales Permanent Fund; and,
WHEREAS, Ordinance No. 2326-2008, KMC 7.30.020, requires all investment
earnings to be reported in the Airport Land Sales Permanent Fund and then allows for
a percent of market value of the fund to be transferred annually to the Airport Fund
for operations; and,
WHEREAS, the allowable transfer amount for the policy's first is restricted to 5% of
the funds value at the time of 2326-2008's passage (~ 17,404,406) or the funds actual
earnings through May 31, 2009 which ever is less; and,
WHEREAS, the actual funds earnings of $283,044.08 is less than X870,220, 5% of the
funds balance at the passage of Ordinance 2326-2008; and,
WHEREAS, earnings on the Airport Land Sales Permanent Fund previously budgeted
as investment earnings in the Airport Fund are no longer proper and should be shown
as a transfer from the Airport Land Sales Permanent Fund.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that estimated revenues and appropriations be increased as follows:
Airport Land Sales Permanent F~md
Increase Estimated Revenues:
Investment Earnings
Increase Appropriations
Transfer to Airport Fund
New Text Underlined; [DELE'PED TEXT BRACKETED]
$283,044.08
$283,044.08
Ordinance No. 2413-2009 SUBSTITUTE
Page 2 of 2
Airport Fund
Increase Estimated Revenues:
Transfer From Airport Land Sales Permanent Fund
Decrease Estimated Revenues:
Investment Earnings
PASSED BY THE COUNCIL OF THE CITY
2009.
$283,044.08
$283,044.08
OF KE~~iiAI L SKA this third day of June,
~~v_~--~C,/ -- --
PAT PORTER, MAYOR
ATTEST: per///~/4/~~[[~~/
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Carol L. Freas, ity Clerk
Approved by finance: /~
Introduced: May 20, 2009
Adopted: June 3, 2009
Effective: June 3, 2009
New 'S'ent Underlined; [DELCTED TEXT BRACKFTEDj
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FINANCE DEPARTMENT
"~ 210 Fidalgo Avenue, Kenai, Alaska 99611-7794
~ f Telephone: 907-283-7535 ext 221 /FAX: 907-283-3014
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KENA~ SKA
To: Rick Koch, City Manager
y~From: Terry Euba~ilc, Finance I7irector
Date: June 2. 2009
Re: Ordinance 2413-2009 -Substitute
Since inU~oduction of Ordinance 2413-2009 the valuation date of the policy has passed and actual
values are now Irnown. The substitute being provided takes into account the actual earnings of
the fm1d. For the eight and one-half months ending May 31, 2009 the portfolio earned
$314,7]9.30 and paid $3=,675.22 in management fees for net earnings of $283,044.08 an
annualized rate of 2.30%. KMC 7.30.0201imits the first year's transfer to 5% of the funds value
at the time of passage of Ordinance 2326-2008 or actual earnings through that May 31, 2009.
The actual net earnings of $283,044.08 are less than $870,220 5% balance, thus making
X283,044.08 available for transfer.
Three changes have been made to Ordinance 2413-2009 to create this substitute. The amount
$17,221,464 in the fifth whereas has been change to $17,404,406. The original amount only
included. the vahie of securities transferred and mistakenly did not include the additional cash
that was transferred at the time of implementing Ordinance 2326-2008. The $17,404,406
amount represents the total value of the Airport Lands Sales Permanent Fund at the time of
passing Ordinance 2326-2008. With the first change if became necessary to change $861,073 in
the fifth whereas to $870,220 which represents 5% of $17,404,406 rather thv7 5% of 17,221,464.
The final change replaced $350,000 in the body of the docwnent with $283,044.08 (in total 6
replacements were made).