Description: AGENDAHED.JPG
 

Item No.:                   5H.(2)- Substitute for 5H.

 

Meeting Date:           September 24, 2012

 

From:                          Bill Spinelli, Finance Director, CPA

 

Subject:                      Resolution approving a Special Transfer from the Gas Utility Fund to the Capital Projects Fund in the amount of $430,800 and to the General Fund for $60,500, or a total of $491,300 for various Capital Projects

 

 


Staff Recommendation:

Staff recommends approval of a Special Transfer from the Gas Utility Fund to the Capital Projects Fund in the amount of $430,800 and to the General Fund for $60,500, or a total of $491,300 for various Capital Projects.

 

Analysis:

After further review of the City’s projected budget shortfall for FY 2012-13 an alternative strategy has been developed to use the $491,300 to offset Capital Projects in the General Fund and the Capital Projects Fund. 

 

The proposed budget includes the following projects totaling $491,300:

Capital Projects Fund:

 

City Hall Re-roof

$226,800

Childs St Bldg Re-roof

29,000

Fire Renovations to Station #2

100,000

Airport Update Signage

               75,000

   Total Capital Projects Fund

$430,800

General Fund:

 

Fire- ALS Equipment

$12,500

Fire- Thermal Imaging Camera (2)

20,000

Fire- Extraction Tools

28,000

Total General Fund

$60,500

Total Gas Transfer Amount

$491,300

 

In an effort to improve its cash position, staff updated and the City Commission adopted new cash policies in fiscal year 2007.  Ordinance 07-80, Section 2-230 provides for utilization of surplus cash which is defined as cash that exceeds 115% of the minimum acceptable level of cash reserve.  Utilization of Surplus Cash can be approved for any one of the following; elimination of shortfalls in related funds, reduction or avoidance of debt, funding of a renewal and replacement program, one time capital needs and for use in funding tax, fee or rate stabilization.  In addition to the Surplus Cash test, Ordinance 07-82 provides for a five year pro forma cash flow projection to determine the financial impact if any on the fund from which the transfer is drawn (attached).   The following test reflects the amount of Surplus Cash available as of September 30, 2012:

 

Minimum Cash Reserve Requirement                         $1,203,621

Add 15% Reserve                                                           180,543

Minimum Level of Acceptable Cash Reserve              $1,384,164

Unaudited Cash Balance as of September  2012          8,979,937

Transfer to Magnolia Townhomes                                  966,820

                                                Surplus Cash               $6,628,953

 

The calculation as prescribed by ordinance reflects adequate surplus cash to allow for the special transfer.

 

Options:

1.  Approve the special transfer from the Gas Utility Fund to the Capital Projects Fund in the amount of $430,800 and to the General Fund in the amount of $60,500, or a total of $491,300 for various Capital Projects; Or

2.  Such alternative action as the Commission may deem appropriate

 

 

Fiscal Impact: 

The impact on the surplus cash of the Gas Utility Fund would be minimal decreasing the surplus cash from $6,628,953 to $6,137,653.  In addition, pro forma cash flow projections for the next five years reflect continued growth in cash reserves.

 

 

Submission Date and Time:    9/24/2012 3:34 PM____

 

Department: ______________________

Prepared by:  ______________________                     

Attachments:         Yes____   No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. __________________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. 042-2088-581-9151___

                       042-2088-581-9131 __

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________

 

RESOLUTION NO.___________

 

 

RESOLUTION OF THE CITY COMMISION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING A SPECIAL TRANSFER FROM THE GAS UTILITY FUND TO THE CAPITAL PROJECTS FUND AND THE GENERAL FUND NOT TO EXCEED $491,300 FOR VARIOUS CAPITAL PROJECTS; AND PROVIDING AN EFFECTIVE DATE.

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

 

            THAT the City Commission hereby authorizes the Special Transfer of $491,300 from the Gas Utility Fund to the Capital Projects Fund and the General Fund for various Capital Projects.

 

             THAT this resolution shall become effective immediately.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _24TH ____ day of _September________ 2012.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

_________________________________

City Clerk