CITY OF HOMER

HOMER, ALASKA

                                                                                                  City Manager

ORDINANCE 07-46

 

AN ORDINANCE OF THE CITY COUNCIL OF HOMER, ALASKA AMENDING THE FY 2007 BUDGET (CAPITAL EQUIPMENT) BY AUTHORIZING THE ACQUISITION OF CERTAIN EQUIPMENT USING CASH FROM DEPRECIATION RESERVE ACCOUNTS INSTEAD OF LOAN FINANCING.

 

            WHEREAS, The FY 2007 Operating Budget (Capital Equipment) appropriated funds for the acquisition of a track excavator, a striper, a roadside mower, a dozer, and angle blades; and

 

            WHEREAS, The approved budget authorized acquiring this equipment using loan financing with the intent of reducing the impact on fund balances in depreciation reserve accounts; and

 

            WHEREAS, During the process of applying for and negotiating a loan agreement, it became apparent to the Administration that it would not be able to secure an interest rate and terms that were in the best interest of the City; and

 

            WHEREAS, The Administration has concluded and now recommends that it would be financially prudent for the City to purchase this equipment with cash using funds from the General Fund, Port and Harbor Fund, and Water and Sewer Fund Depreciation accounts.

 

            NOW THEREFORE, THE CITY OF HOMER ORDAINS:

 

            Section 1. The City Council hereby finds that it is in the best interest of the City to purchase the equipment described above using cash from depreciation reserves instead of financing and amends the FY 2007 Budget as follows:

 

ACCOUNT                               DESCRIPTION                                 AMOUNT

 

152-383-5901                            Track Excavator                                 $46,601.42

152-383-5901                            Striper                                                 $62,614.70

156-395-5901                            Roadside Mower                                $10,600.00

156-395-5901                            Dozer                                                 $83,871.00

                                                   Angle Blades

215-378-5901                                                                                                                                                                                $ 5,000.00

215-379-5901                                                                                                                                                                                $ 4,750.00

152-374-5902                                                                                                                                                                                $10,250.00

 

Section 2. This is a budget amendment ordinance, is not permanent in nature, and shall not be codified.

 

PASSED AND ENACTED by the Homer City Council this ______ day of ________ 2007.

 

                                                                        CITY OF HOMER

 

                                                                        _____________________________

                                                                        JAMES C. HORNADAY, MAYOR

 

ATTEST:

 

 

______________________________

JO JOHNSON, CMC, CITY CLERK

 

Introduction:

Public Hearing:

Second Reading:

Effective Date:

 

AYES:

NOES:

ABSTAIN:

ABSENT:

 

Reviewed as to form and content:

 

 

______________________                            _______________________ 

Walt Wrede, City Manager                             Gordon Tans, City Attorney

 

Date: __________________                           Date: __________________

 

Fiscal Note: See Detail Above