Item No: 4.C.1.
Meeting Date: September 23, 2013
From: Bill Spinelli, Finance Director, CPA
Subject: Resolution approving a special transfer from the Worker’s Compensation Fund to the Capital Projects Fund in the amount of $26,000.00 and to the General Fund for $24,000.00, or a total of $50,000.00 for various capital projects
Staff recommends approval of a transfer in FY 2013-2014 from the Worker’s Compensation Fund to the Capital Projects Fund in the amount of $26,000.00 and to the General Fund for $24,000.00, or a total of $50,000.00 for various capital projects.
During the preparation of the FY 2013-14 budget, it was determined that $50,000.00 could be used from the Worker’s Compensation Fund for the following capital projects:
Capital Projects Fund:
Rehab Community Building Restrooms $10,000
Replace Ceiling tiles Community Building 3,000
Clean HVAC Duct Work Community Building 6,000
Install Audio/Visual System Community Building 7,000
Total Capital Projects Fund $26,000
Security Improvements Gymnasium $10,000
Upgrade Restrooms Marina 3,000
Reconfigure/Paint Marina 6,000
Replace Venetian Gardens/Marina Sign on Dixie 5,000
Total General Fund $24,000
Total Worker’s Compensation Transfer Amount $50,000
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 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 September 30, 2013:
Minimum Cash Reserve Requirement $1,204,766
Add 15% Reserve 180,715
Minimum Level of Acceptable Cash Reserve $1,385,481
Unaudited Cash Balance as of September 2013 1,744,141
Surplus Cash $ 358,660
The calculation as reflects adequate surplus cash to allow for the special transfer.
1. Approve the special transfer in FY 2013-2014 from the Worker’s Compensation Fund to the Capital Projects Fund in the amount of $26,000 and to the General Fund in the amount of $24,000, or a total of $50,000 for various capital projects; or,
2. Such alternative action as the Commission may deem appropriate
The impact on the surplus cash of the Worker’s Compensation Fund would be minimal decreasing the surplus cash from $358,660 to $308,660.
Prepared by: ______________________
Attachments: Yes____ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. BLM,_____________
Deputy C.M. ___________________
City Manager ___________________
Account No. 065-1350-581-9501
Project No. ___________________
WF No. ______________________
RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING A SPECIAL TRANSFER FROM THE WORKER'S COMPENSATION FUND TO THE CAPITAL PROJECTS FUND AND THE GENERAL FUND NOT TO EXCEED $50,000 FOR VARIOUS CAPITAL PROJECTS; 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 transfer in FY 2013-2014 of $50,000 from the Worker’s Compensation Fund to the Capital Projects Fund and the General Fund for various capital projects.
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 _23rd ____ day of _September________ 2013.