Staff recommends approval of a Special Transfer from the Gas Utility to the Capital Projects Fund in an amount not to exceed $300,000 for the re-roofing of Airport property.
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 proforma 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, 2009:
Minimum Cash Reserve Requirement $1,231,427
Add 15% Reserve 184,714
Minimum Level of Acceptable Cash Reserve $1,416,141
Unaudited Cash Balance as of January 2010 4,096,589
Surplus Cash $2,680,448
The calculation as prescribed by ordinance reflects adequate surplus cash to allow for the special transfer.
1. Approve the special transfer from the Gas Utility to the Capital Projects Fund in an amount not to exceed $300,000 for the re-roofing of the Airport property; Or
2. Such alternative action as the Commission may deem appropriate
The impact on Surplus Cash of the Gas Utility would be minimal decreasing the Surplus Cash from $2,680,448 to $2,380,448. In addition, proforma cash flow projections for the next five years reflect continued growth in cash reserves.
Prepared by: __Jerry Boop__________
Attachments: Yes__X__ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head _JB_____
Finance Dept. ___________JB_____
Deputy C.M. ___________________
City Manager ___________________
Account No. _031-1821-542-6210___
Project No. ____310018_________
WF No. _____WF0628982/1______
A resolution of the City Commission of the City of Leesburg Florida to approve a special transfer from the Gas Fund to the Capital Projects Fund in an amount not to exceed $300,000 for re-roofing of Airport property AT 8646 NORTH HIGHWAY 441; 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 an amount not to exceed $300,000 from the Gas Utility to the Capital Projects Fund to re-roof the building at 8646 N. Highway 441, AKA Family Furniture Building.
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 22nd day of March 2010.