AGENDA MEMORANDUM

Meeting Date:           December 13, 2010

From:                          Brandy McDaniel, Budget Manager

                                    Jerry Boop, CPA, CGFO Finance Director                                                                

Subject:                      Ordinance reallocating the 2007 Capital Improvement Bond for the Electric Fund

Staff Recommendation:

Staff recommends adoption of the attached ordinance reallocating the 2007 Capital Improvement Bonds for the Electric Fund.

Analysis:

The following adjustments are required to reallocate the 2007 bond funds among the projects based on actual and projected expenditures (see attached narrative explanation):

Project                                                Current Budget                     Proposed Budget         Difference

Meters                                     $          120,000                               120,000                               -0-

Transformers                                       500,000                               500,000                               -0-

Distribution Lines                            5,563,848                                       6,588,080                    1,024,232

Other Equipment                             1,693,880                                       1,693,880                                -0-

Lighting Projects                                200,000                                          200,000                                 -0-

Subdivisions                                       815,700                                         283,090                       (532,610)

Reconductoring                                1,783,480                                        1,783,480                              -0-

Substations                                         200,000                        200,000                   -0-_       

                                                $     10,876,908                                   $ 11,368,530               $     491,622

The original 2007 Bond Issue included funds for specific Subdivision projects that were expected to be moving forward at the time of Bond Issue.  With the downturn in the economy, certain subdivisions have not developed and the Electric department has identified several critical Distribution Line projects that need to be completed.  Additionally, $491,622 in interest income has accumulated allowing for additional bond proceeds to be used on construction projects.  The reallocation of the available bond funds will allow the Electric department to utilize funding and provide necessary infrastructure improvements.

Options:

1. Adopt the attached ordinance reallocating the 2007 Capital Improvement Bond for the Electric Fund; or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

Interest income of $491,622 on the unspent 2007 Bond Proceeds will be included in the first quarter budget adjustments for Fiscal Year 2010-11.

Submission Date and Time:    12/10/2010 6:05 PM____

Department: _Finance______________ Prepared by:  Brandy________________                      Attachments:         Yes_X__   No ______ Advertised:   ____Not Required ______ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head _JB_____ Finance  Dept. __________JB_____                                    Deputy C.M. ___________________                                          Submitted by: City Manager ___________________

Account No. _________________ Project No. ___________________ WF No. ______________________ Budget  ______________________ Available _____________________

ORDINANCE NO._______________

AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA REALLOCATING THE 2007 CAPITAL IMPROVEMENT ELECTRIC BOND FUNDS; AND PROVIDING AN EFFECTIVE DATE.

WHERAS, it is now necessary to reallocate the 2007 Capital Improvement Bond for the Electric Fund and,

WHEREAS, such action was not anticipated in the original 2007 Capital Improvement Bond for the Electric Fund, and

WHEREAS, additional public purpose capital projects of $1,024,232 have been identified for Distribution Lines and available funding has been found by transferring $532,610 from Subdivisions and recognizing interest income of $491,622;

            NOW THEREFORE, BE IT ENACTED BY THE PEOPLE OF THE CITY OF LEESBURG, FLORIDA:

SECTION I.

This ordinance shall become effective upon its passage and adoption by the Leesburg City Commission in the manner provided by law.

PASSED AND by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _____ day of __December_______ 2010.

                                                                            __________________________

                                                                             Mayor

ATTEST:

__________________________

City Clerk