Staff recommends authorizing a temporary transfer of funds not to exceed $500,000 from the Gas Fund to the Solid Waste fund to facilitate compliance with the Fund Balance Policy.
The Solid Waste Fund continues to reflect the operational improvements and efficiencies its management staff adopted throughout fiscal year 2009. Were it not for additional costs related to an old dump site approximating $120,000, costs related to the expansion of commercial services approximating $98,000 and an old invoice from Lake County for tipping fees related to fiscal year 2006 of $70,000, the Solid Waste fund would be near compliance to the City’s Fund Balance Policy. The August 2009 Unaudited Financial Statement for Solid Waste reflect a cash reserve deficiency of $367,730. A temporary transfer of $500,000 would cover this deficiency and allow for a buffer. Payment back to the Gas Fund would occur once the total cash balance of the Solid Waste Fund exceeds $1,100,000. Any excess over and above the threshold of $1,100,000 would be paid back to the Gas Fund monthly until the temporary transfer has been paid in full. The August 2009 Unaudited Financial Statement for the Gas Fund reflects cash on hand of $4,221,219 which exceeds the required reserve by $2,891,914.
1. Approve the temporary transfer of funds from the Gas Fund to the Solid Waste Fund of an amount not to exceed $500,000 to facilitate compliance with the City’s Fund Balance policy; or,
2. Such alternative action as the Commission may deem appropriate
There will be a temporary cash reduction in the Gas Fund of $500,000 which could be easily absorbed by the Gas Fund current excess of $2,891,914. The transfer would temporarily decrease the Gas Funds current excess of $2,891,914 to $2,391,914.
Prepared by: ___Jerry Boop_______
Attachments: Yes__X__ No ______
Advertised: ____Not Required __X____
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head __JB____
Finance Dept. ____________JB____
Deputy C.M. ___________________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF No. ______________________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING A TEMPORARY TRANSFER OF FUNDS FROM THE GAS FUND TO THE SOLID WASTE FUND TO BRING THE SOLID WASTE FUND INTO COMPLIANCE WITH THE FUND BALANCE POLICY; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, staff has determined the Gas Fund has sufficient reserves to facilitate a temporary transfer to the Solid Waste Fund; and
WHEREAS, staff has determined it is in the City’s best interest to maintain healthy cash balances within its respective Enterprise Funds; and
WHEREAS, the Solid Waste Fund will pay back the temporary transfer from the Gas Fund from cash balances in excess of $1,100,000 on a monthly basis;
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the Mayor and City Clerk are hereby authorized to execute this temporary transfer of funds not to exceed $500,000 to the Solid Waste Fund.
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 12th day of October 2009.