Staff recommends adoption of the attached ordinance reallocating the 2007 Capital Improvement Bonds for the Electric Fund.
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.
2. Such alternative action as the Commission may deem appropriate
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.
Prepared by: Brandy________________
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. _________________
Project No. ___________________
WF 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.
WHEREAS, 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:
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 10th day of January 2011.