Ordinance 14-06(A) Providing a Loan to the Port and Harbor Enterprise Fund to Complete the Financing Package for the New Port and Harbor Building

CITY OF HOMER

HOMER, ALASKA

                                                                                                                                    City Manager

ORDINANCE 14-06(A)

AN ORDINANCE OF THE CITY COUNCIL OF HOMER, ALASKA, AMENDING THE FY 2014 OPERATING BUDGET BY APPROPRIATING UP TO $300,000 FROM THE GENERAL FUND BALANCE FOR THE PURPOSE OF PROVIDING A LOAN TO THE PORT AND HARBOR ENTERPRISE FUND TO COMPLETE THE FINANCING PACKAGE FOR THE NEW PORT AND HARBOR BUILDING.

               WHEREAS, The Port and Harbor Building Task Force has been meeting regularly and working with staff and the architects on building design and cost control; and

               WHEREAS, The Task Force has been looking for efficiencies and cost cutting measures and has settled on a design and estimated project cost that is reasonable given the City’s budget and does not unduly compromise the building’s attractiveness, function and utility; and

               WHEREAS, The City Council was briefed on the current status of the project by the Chair of the Task Force and it discussed back-up Memorandum 14-003 with recommendations at its regular meeting on January 13, 2014; and

               WHEREAS, The Architects have been instructed to proceed to 65% plans which will result in even more precise cost estimating; and

               WHEREAS, The current estimated project budget is $2,296,772 of which $1,500,000 will come from a re-appropriated Legislative grant; and

               WHEREAS, As part of the Legislative capital request, the City pledged to provide a local match of 25% or $500,000; which it has done through adoption of Ordinance 14-05; and

               WHEREAS, An additional $300,000 is needed to complete the building financing package and both the Task Force and the Administration recommend a loan from the General Fund Balance.

NOW, THEREFORE, THE CITY OF HOMER ORDAINS:

               Section 1. The City Council hereby amends the FY 2014 Operating Budget by appropriating up to $300,000 from the General Fund Balance for the purpose of providing a loan to Port and Harbor Enterprise Fund to complete the financing package for the new port and harbor building as follows:

Transfer From:

Account                                           Description                                                  Amount

                100-0100                                         General Fund Balance                                             $300,000                                   

Transfer To:

Account                                           Description                                                  Amount

415-0935                                         Port and Harbor Building                       $300,000

Project Account    

               Section 2. The term of the loan is five years, the first annual principal payment is January 15, 2015, and the annual interest rate is two percent (2%).

               Section 3.   This is a budget amendment ordinance only, is not permanent in nature, and shall not be codified.

               ENACTED BY THE CITY COUNCIL OF HOMER, ALASKA, this ______ day of ______ 2014.

CITY OF HOMER
 

                                                                                                         ______________________

                                                                                                         MARY E. WYTHE, MAYOR

ATTEST:

_____________________________

JO JOHNSON, MMC, CITY CLERK

YES:

NO:

ABSTAIN:

ABSENT:

First Reading:

Public Hearing:

Second Reading:

Effective Date: 

Reviewed and approved as to form.

Walt Wrede, City Manager                                                                 Thomas F. Klinkner, City Attorney

Date:                                                                                                             Date:                                                       

Fiscal Note: Noted within ordinance.