HomeMy WebLinkAboutOrdinance No. 2530-2011ce.9,f
KENA .ALASKA
CITY OF KENAI
ORDINANCE NO. 2530 -2011
Suggested by: Administration
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY $31,819 IN THE AIRPORT LAND
SALES PERMANENT FUND AND BOTH INCREASING AND DECREASING ESTIMATED
REVENUES IN THE AIRPORT FUND FOR FUNDS RECEIVED FROM THE AIRPORT
LAND SALES PERMANENT FUND.
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 Saks 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 third year and all
subsequent years is 5% of the funds December 31st average market value for the
preceding five years (three years for FY 1 1 and four years for FY 12); and,
WHEREAS, the December 31 balance for the fund was $17,825,369, 520,264,072, and
21,909,110 for years 2008, 2009, and 2010 respectively for a three year average of
5 19,999,517; and,
WHEREAS, 5% of 519,999,517 produces a maximum allowable transfer of $999,976
which is $31,819 more than originally budgeted for FY11 requiring an increase to the
budget of $31,819.
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 Fund
Increase Estimated Revenues:
Investment Earnings
Increase Appropriations
Transfer to Airport Fund
New Text Underlined; [DELETED TEXT BRACKETED]
$31,819
31,819
Ordinance No. 2530 -2011
Page 2 of 2
Airport Fund
Increase Estimated Revenues:
Transfer From Airport Land Sales Permanent Fund 531,819
$31,819
Decrease Estimated Revenues:
Appropriation of Fund Balance
PASSED BY THE COUNCIL OF THE CITY OF K NAI, ALASKA, thiasecond day of
February, 2011.
ATTEST:
Carol L. Freas, ity Clerk
Approved by Finance:
7 C6
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PAT PORTER, MAYOR
Introduced: January 19, 2011
Adopted: February 2, 2011
Effective: February 2, 2011
the catty of
KENAI, ALASKA
To: Mayor Porter
Council Members
Thru: Rick Koch, City Manager
7 i From: Terry Eubank, Finance Director
Date: January 10, 2011
Re: Ordinance 2530 -2011
December 31,
"Villaye with a Past, Ct y with a Future
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 283 -7535 ext 221 FAX: 907 283 -3014
Pursuant to KMC 7.30.020 the annual transfer from the Airport Land Sale Permanent Fund
(ALSPF) shall be equal to 5% of the five -year average of the funds value at December 31 This
is the third fiscal year of the current investment methodology and a three year average is being
used as called for in KMC 7.30.020. FY12 will utilize a four -year average and a five year
average will be used beginning in FY13.
The December 31, 2010 market value of the ALSPF was $21,909,110. The FY11 transfer
amount calculation is as follows:
2008 2009
Market Value
Portfolio Balance $17,825,369 $20,264,072 $21,909,110 $19,999,517
$19,999,517 X 5% 999,976
2010 Average
The FYI 1 budgeted transfer amount was $968,157. Ordinance 2530 -2011 will increase the
budgeted transfer amount to the 5% maximum of $999,976.