Description: AGENDAHED.JPG

Description: AGENDAHED.JPG

Item No:                    5.J

 

Meeting Date:           March 26, 2012

 

From:                          Gladys Johnson, Interim Finance Director

 

Subject:                      Resolution authorizing an Interfund Loan between the Stormwater Utility and the Communications Utility

 

 


Staff Recommendation:

Staff recommends approval of a Special Interfund Loan from the Stormwater Utility to the Communications Utility in an amount not to exceed $315,000 for the Lake County School project to increase the infrastructure.

 

Analysis:

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 pro forma 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 January 31, 2012:

 

Minimum Cash Reserve Requirement                         $  387,000

Add 15% Reserve                                                             58,050

Minimum Level of Acceptable Cash Reserve              $  445,050

Unaudited Cash Balance as of January 31,2012            2,238,357

                                                Surplus Cash                $1,793,307

 

The calculation as prescribed by ordinance reflects adequate surplus cash to allow for the special transfer.

 

Options:

  1. Approve the special interfund loan from the Stormwater Utility to the Communications Utility in an amount not to exceed $315,000 for the Lake County School project to increase the infrastructure.
  2. Such alternative action as the Commission may deem appropriate

 

 


Fiscal Impact: 

The impact on Surplus Cash of the Stormwater Utility would be minimal decreasing the Surplus Cash from $1,793,307 to $1,478,307. In addition, pro forma cash flow projections for the next three years reflect continued growth in cash reserves. 

 

 

Submission Date and Time:    3/21/2012 4:14 PM____

 

Department: __Finance_______________

Prepared by  Puggy Johnson                     

Attachments:         Yes__X__   No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. _______PJ_________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No.___________________

 

Project No. ___________________

 

WF No. ______________________

 

Budget  _______-0-_______________

 

Available ______-0-_______________


 

RESOLUTION NO._______________

 

 

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, TO APPROVE A SPECIAL INTERFUND LOAN FROM THE STORMWATER UTILITY TO THE COMMUNICATIONS UTILITY IN AN AMOUNT NOT TO EXCEED $315,000 TO INCREASE INFRASTRUCTURE FOR THE AGREEMENT WITH THE LAKE COUNTY SCHOOL BOARD; 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 Interfund Transfer of an amount not to exceed $315,000 from the Stormwater Utility to the Communications Utility to increase infrastructure as needed per the agreement with the Lake County School Board.

 

             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 26th day of March, 2012.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

_______________________

City Clerk