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:
- 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.
- 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 |
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