Memorandum 14-114 Mid Year Budget Amendment for Port and Harbor

Memorandum 14-114

TO:                       MAYOR BETH WYTHE & HOMER CITY COUNCIL

FROM:                 BRYAN HAWKINS, PORT DIRECTOR/HARBORMASTER

DATE:                  JULY 22, 2014

SUBJECT:           FY 2014 MID-TERM BUDGET AMENDMENT

The Port and Harbor’s approved 2014 budget is in need of account adjustments to either repair accounts that were underfunded as an oversight, or to add funding to accounts due to unforeseen expenditures that came up during the Spit trails and harbor improvements projects.  Mid-term adjustments are requested for the following accounts:

601-5202:    We do not have a line item for signage in our operations budget, therefore all harbor signage costs are coded to our operations supplies budget, which has been exceeded. This expenditure replaced signage that was either faded out and unreadable or addressed necessary changes in signage due to construction of the trail and improvements at the Load and Launch Ramp.

601-5207:    The new “No Wake” harbor buoys were an end-of-the-season purchase that was intended to be paid for out of our 2013 budget, but the auditors disagreed and instead moved the expenditure to our 2014 account, effectively wiping out our vehicle boat maintenance account for the year.

601-5287, 602-5218, 604-5218: These expense accounts have corresponding revenue accounts related to electrical retail sales on System 5 and water retail sales on the Pioneer and Deep Water Dock.  Because there have been significant increases in sales, the expenses too have increased and are exceeding budget.

400-0380:    When we set up our bond reserves, we funded it from the Port and Harbor reserves. When the City Manager applied for the bond he was told by the bank that we “overfunded” the account and that our goal should be to keep 1.25 times the total amount of an annual bond payment in the bond reserves. This adjustment accomplishes that goal and helps our depreciation reserves picture at the same time.

400-0380:    Revenues earned in 2013 exceeded expenditures.  This adjustment moves those surplus monies to the Port and Harbor Depreciation Reserve.   

Recommendation

Approve the attached mid-term budget requests recommended by Finance and Port and Harbor.

Attached:                 Email from John Li, Finance Director Re: Port & Harbor Mid-Term Budget Amendment Requests dated July 11, 2014

Fiscal Note:             Harbor Operating Supplies 400-0601-5202

          Harbor Vehicle/Boat Maintenance 400-0601-5207

          Harbor Electrical Supplies 400-0601-5287

          Pioneer Dock Water 400-0602-5218

          Deep Water Dock Water 400-0604-5218

          Bond Reserve 400-0382

          Port & Harbor Depreciation Reserve 400-0380