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HomeMy WebLinkAboutOrdinance No. 2739-2014u Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2739 -2014 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING APPROPRIATIONS IN THE GENERAL LAND SALES PERMANENT FUND TO TRANSFER EARNINGS IN EXCESS OF BUDGETED AMOUNTS TO THE CITY'S GENERAL FUND. WHEREAS, Article 5, Section 5 -11 of the City's Charter, requires the proceeds from the Sale of all City owned, non -trust lands be deposited in a separate fund, the General Land Sale Permanent Fund, and allows for the investment earnings to be used for any lawful purpose but prohibits the expending of the proceeds from land sales; and, WHEREAS, the allowable transfer amount for the policy is the lesser of 5% of the funds December 31st market value or the actual calendar year earnings; and, WHEREAS, the December 31 balance for the fund was $2,923,441 and the 2013 calendar year earnings were $344,670; and, WHEREAS, 5% of $2,923,441 produces a maximum allowable transfer of $146,172 which is less than the actual earnings of $344,670; and, WHEREAS, the calculated maximum allowable transfer is $8,440 more than originally budgeted for FY14 allowing for an increase to the authorized transfer amount of $8,440. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that appropriation be increased as follows: General Land Sales Permanent Fund Increase Appropriations Transfer to General Fund PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5th day of February, 2014. PAT POR ER, MAYOR ATT T: 11nn�� UVI� San r Modigh, ZSty Clerk Approved by Finance: Introduced: January 15, 2014 Adopted: February 5, 2014 Effective: February 5, 2014 New Text Underlined; ]DELETED TEXT BRACKETED] "Villaye with a Past, C# with a Future" FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014 ^� v I\ To: Rick Koch, City Manager `1.Z From: Terry Eubank, Finance Director Date: January 8, 2014 Re: Ordinance 2739 -2014 The purpose of this memo is to provide support for passage of Ordinance 2739 -2014. This Ordinance will increase the authorized transfer amount from the General Land Sale Permanent Fund (GLSPF)to the City's General 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 GLSPF shall be equal to the lesser of 5% of the funds value at December 31" or actual earnings for the calendar year The December 31, 2013 market value of the GLSPF was $2,923,441 and 2013 actual earnings were $344,670. The FY14 transfer amount calculation is as follows: Market Value December 31, 2013 Portfolio Value $2,923,441 5% of Portfolio Value $146,172 Calendar Year Earnings $344,670 FY14 Allowable Transfer $146,172 The FY14 budgeted transfer amount was $137,732. This Ordinance will increase the budgeted transfer amount to the maximum value of $146,172.