HomeMy WebLinkAboutOrdinance No. 2738-2014Suggested by: Administration
CITY OF KENAI
ORDINANCE NO. 2738 -2014
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
APPROPRIATIONS IN THE AIRPORT LAND SALES PERMANENT FUND TO TRANSFER
EARNINGS IN EXCESS OF BUDGETED AMOUNTS TO THE AIRPORT'S OPERATING
FUND.
WHEREAS, KMC 7.30, requires all investment earnings on funds received from the
sale of land deeded to the City by the Federal Aviation Administration for the operation
of the Airport 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 is 5% of the funds December
31st average market value for the preceding five years; and,
WHEREAS, the December 31 balance for the fund was $20,264,072, and 21,909,110,
20,920,217, 22,258,484, and 24,095,421 for years 2009 thru 2013 respectively for a
five year average of $21,889,461; and,
WHEREAS, 5% of $21,889,461 produces a maximum allowable transfer of $1,094,473
which is $3,901 more than originally budgeted for FY14 requiring an increase to the
authorized transfer amount of $3,901.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that appropriation be increased as follows:
Airport Land Sales Permanent Fund
Increase Appropriations
Transfer to Airport Fund
$3,901
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5th day of
February, 2014.
A ST:
f
S di Modigh, Nty Clerk
Approved by Finance:
xt'�CJ
PAT PORTER, MAYOR
Introduced: January 15, 2014
Adopted: February 5, 2014
Effective: February 5, 2014
New Text Underlined; ]DELETED TEXT BRACKETED]
V llaye with a Past, C# with a Future
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
\ttiecrof Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014
I
�n To: Rick Koch, City Manager
1" �\ From: Terry Eubank, Finance Director
!!! Date: January 8, 2014
Re: Ordinance 2738 -2014
The purpose of this memo is to provide support for passage of Ordinance 2738 -2014. This
Ordinance will increase the authorized transfer amount from the Airport Land Sale Permanent
Fund to the Airport Operating Fund for FY14. This increased amount is possible because
earnings were higher than projected for calendar year 2013. 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 315c
The December 31, 2013 market value of the ALSPF was $24,095,421. The FY14 transfer
amount calculation is as follows:
Market Value
December 31,
Portfolio Balance
Actual Actual Actual Actual Actual
2009 2010 2011 2012 2013
$20,264,072 $21,909,110 $20,920,217 $22,258,484 $24,095,421
5 Year Average $21,889,461 X5% 1,094,473
The FY14 budgeted transfer amount was $1,090,572. This Ordinance will increase the budgeted
transfer amount to the 5% maximum of $1,094,473.