Staff recommends approval of a Special Transfer from the Gas Utility to the Capital Projects Fund in an amount not to exceed $80,000 for the re-roof of City owned building at 415 W. Magnolia St. (Currently occupied by the Leesburg Partnership and Leesburg Center for the Arts).
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, 2010:
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 September 2010 6,315,688
Surplus Cash $4,899,547
The calculation as prescribed by ordinance reflects adequate surplus cash to allow for the special transfer.
The impact on Surplus Cash of the Gas Utility would be minimal decreasing the Surplus Cash from $4,899,547 to $4,819,547. The requested transfer of $80,000 has been increased by $4,209 over the amount required of $75,791 in order to allow for any unexpected costs associated with the roofing project. 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 ________
Finance Dept. _______JB_________
Deputy C.M. ___________________
City Manager ___________________
Account No. _031-5193-519-6210___
Project No. __310051_____________
WF No. _____WF0693563/1_______
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 $80,000 FOR RE-ROOF OF CITY OWNED BUILDING AT 415 W MAGNOLIA; 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 $80,000 from the Gas Utility to the Capital Projects Fund to re-roof the building at 415 W Magnolia.
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 20th day of December 2010.