AGENDA MEMORANDUM

Meeting Date: May 14, 2007

From:                          Jerry Boop, CPA, Deputy Finance Director

Subject:                      Ordinance amending the Fiscal Year 2006-07 for the General, Capital Projects, and Electric Funds and reallocating the 2004 Capital Improvement Bond Funds.

Staff Recommendation:

Staff recommends adoption of the attached ordinance amending the fiscal year 2006-07 budget for the General, Capital Projects, and Electric Funds and reallocating the 2004 the Capital Improvement Bond Funds.

Analysis:

As established in the Budget Policy, adopted September 28, 1998, total appropriations within a fund cannot increase or decrease without formal action by the City Commission. 

These budget adjustments are required due to the following changes:

General Fund:                                                           Funding Source

Bassmasters Tournament                    $   25,000        Florida Sports Commission Grant

Stump Grinder                                     $   15,250        Urban Forestry Grant

Stump Grinder                                     $     6,000        Electric Contribution

Public Safety-Fire                                $   18,405        Workforce Grant

Library-Dell Computers                       $   36,007        Lake County Grant

Public Safety-Police                            $    7,318         Lake County Sheriff-Hollywood Lights

Crappie Masters Tournament              $  20,000         Florida Sports Commission Grant

Recreation-Swim Team                       $    1,414         Donations For a Starting Block

Public Safety-Police                            $    2,763 Lake County Sheriff-Undercover Overtime

Total Increases                                    $132,157

Reductions & Reallocations

Housing & Economic Development   $(224,898)       Program Expense/Professional Services

Public Safety-Police                            $  (50,000)       Communications-Radio System Upgrade

Information Systems                            $(160,000)       Computer Hardware

Public Safety-Police                            $ 164,350        2006  Police Pension Actuarial Shortfall

Public Safety-Police                            $ 188,538        2007 Police Pension Actuarial Shortfall

            Total Reductions                     $  (82,010)

Total General Fund $    50,147

Capital Projects Fund:

Library Self Check stations                  $     8,971        Lake County Grant

Fountain Lake Trail amenities             $   20,000        Lake County Grant

Highway 441 Landscaping Phase II     $ 805,000        State Grant

Hardening Fire Station II                     $   17,639        Federal Grant

            Total Increases                                    $ 851,610       

Reductions

Hardening Community Center             $(108,218)       Federal Grant

Hardening Public Works                     $(  74,609)       Federal Grant

Hardening City Hall $(114,342)       Federal Grant

            Total Reductions                     $(297,169)

Total Capital Projects Fund             $ 554,441

Electric                                              

Electric Department                            $     5,922        Workforce Grant

Total Electric                                     $     5,922

The following adjustments are required to reallocate the 2004 bond funds among the projects based on actual and projected expenditures (see attached narrative explanation):

Options:        

1.         Adopt the attached ordinance amending the fiscal year 2006-07 budget for the General and Capital Projects Funds, or

2.         Such other action as the City Commission may deem necessary.

Fiscal Impact: 

The following funds will change as illustrated below:

FUND	FY 2007 CURRENT	CHANGE	FY 2007 AMENDED
General	$29,515,098	$50,147	$29,565,245
Capital Projects	22,174,192	554,441	22,728,633
Electric	71,023,252	5,922	71,029,174
Total	$122,712,542	$610,510	$123,323,052

Submission Date and Time:    5/25/07 8:42 AM____

Department: ______________________ Prepared by:  __________________                       Attachments:  Yes____   No ______ Advertised:   ____Not Required ______ Dates:   __________________________                      Newspapers: _________________________________                                                     _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. ____wp______________                                    Deputy C.M. ___________________                                           Submitted by: City Manager ___________________

Account No. _________________ Project No. ___________________ WF No. ______________________ Budget  ______________________ Available _____________________

Narrative Explanation – Reallocation of Funds

2004 General Fund Capital Improvement Bond-Funded Projects

New Library Project (No Change)

This project is expected to be completed without the need for additional bond funds.

Public Works Facility (No Change)

This project has been completed without the need for additional bond funds.

Old Library Rehab ( - $1,638,349.65)

This project is contingent upon completion of the New Library project and vacation of the premises now occupied by the Leesburg Public Library.  The project will be an extensive renovation of the interior of the old library building and some interior modifications of the existing City Hall building (to modify spaces vacated by those departments moving to the old library building).  If possible, some exterior modifications will be made to update the appearance of the old library building.  The estimate prepared by PBS&J for the project is $4,500,000 (current dollars), and does not include some additional parking which the City would likely need.  Since it would not be possible to construct the project with the bond funding currently available, and the project also could not be constructed within the 3-year construction window anticipated in the bond covenants, the City is better served by eliminating the project from the 2004 bond project list, and attempting to fund it at a later date. 

Gymnasium ( +$2,099,388.06)

The gymnasium was originally anticipated to be constructed at the Susan Street Recreational Complex, requiring no land acquisition.  Further evaluation revealed that the site would not allow for expansion of the facility in the future, and would require relocation of some amenities.  The City acquired 11 acres of land from the School Board adjacent to Carver Middle School for $617,000.  Construction costs had also increased from the time the original estimates were generated (2004) and the time the project was awarded (2007).  The construction contract alone is $2,731,752.00, which includes an 8% owner’s contingency.  Total project costs (design, construction, and FF&E) are expected to be $3,581,741.00, necessitating additional funding. 

Community Center ( +$6,768.00)

Funding for the Community Center Project (a.k.a. the Civic Center Project) was reduced from $5,000,000 to $35,000 after the soils and preliminary engineering reports revealed that the total projects cost could exceed $7M due to soils remediation and foundation work.  The $35,000 was not sufficient to cover all invoices from the preliminary engineering and soils exploration work. 

Swimming Pool ( - $1,270,588.24)

This project was added to the project list subsequent to the elimination of the Civic Center.  The desire of the Commission was to replace the pool at Venetian Gardens with a new pool in the vicinity of the Recreation and Parks office.  An exploratory committee determined that land acquisition would likely be needed to provide adequate parking and stormwater retention, that additional land would be needed off-site to accommodate the displaced maintenance yard, and that the $1.2M in bond funds would likely be insufficient to cover construction.  Given the growing scope of this project, and the need to expend bond funds within the three-year window, the City is better served by eliminating this project and attempting to fund it at a later date.

City Hall Parking Lot  ( +$579,411.76)

The City Hall Parking Lot was added to the project list subsequent to the elimination of the Civic Center.  This project will retro-fit the existing parking lot for ADA compliance and will add a decorative plaza to the northern entrance of City Hall.  This also includes relocation of the City Hall back-up generator, required stormwater improvements, and landscaping.  The construction bid for the project came in at $1,369,657, which already exceeded the allotted $1,270,588.  The balance of the $1.85M includes design, electrical, lighting, new generator (and transfer switch), and landscaping.

Transportation Improvements ( +$189,382.65)

This category allows the City to expend bond funds on a variety of transportation improvements, and has served as the default category for unspent bond funds (this is the reason the category would receive the $189,382.65 increase).  To date, only $555,264 has been spent on transportation improvements, which has been for the Crystal Breeze Reverse Frontage Road (see breakdown below) and the 441 Phase II landscaping design ($143,000).  If the two “pending” parcels below are purchased, the unencumbered balance would be $1,102,507.  The balance of the funds may be used for the acquisition of right-of-way for the Magnolia Street Extension, or any transportation project that the Commission so desires.

Approved Purchases                                           Pending / Anticipated Purchases

Hart & Garcia                          $61,000              Automotive Realty         $111,000

Neil Fischer                           $113,478              Summerwind                    $32,670

Day Care                                $237,786              TOTAL                          $143,670

TOTAL                                 $412,264

Canal Street Rebuild ( +$33,987.41)

This completed project was a complete re-build of all utilities (stormwater, fiber, gas, water, electric, and wastewater) within the Canal Street right-of-way and installation of a new roadway and recreational trail.  The project was funded from a variety of sources (enterprise funds) as well as the 2004 bond funds.  The bond funds covered the general fund portion of the project, which included the road surface, trail, and sidewalks.  The additional $33,987 covers added work for the pedestrian trail (including design, signage, and striping) and decorative mast arms at Canal and Main.

ORDINANCE NO.____________________
	AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AMENDING THE FISCAL YEAR 2006-07 1st QUARTER BUDGET FOR THE GENERAL, CAPITAL PROJECTS, AND ELECTRIC FUNDS; REALLOCATING THE 2004 CAPITAL IMPROVEMENT BOND FUNDS; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Leesburg adopted a budget for Fiscal Year 2006-07 on September 25, 2006, which they felt was in the best interest of the citizens of the City of Leesburg, and
WHEREAS, it is now necessary to amend the current budget for Fiscal Year 2006-07 to provide funds for various projects as adopted at City Commission meetings, and
WHEREAS, such action was not anticipated in the original 2006-07 annual budget;
NOW THEREFORE, BE IT ENACTED BY THE PEOPLE OF THE CITY OF LEESBURG, FLORIDA:
SECTION I.
Pursuant to Section 200.065, Florida Statutes, and all other applicable laws, the following amounts for use by the various funds during Fiscal Year 2006-07 as reflected below, including all modifications or amendments made during this meeting, are hereby adopted as increases/decreases to the original budget for Fiscal Year 2006-07 for the City of Leesburg, Florida:
	GENERAL FUND
	ESTIMATED REVENUES AND OTHER RECEIPTS
	Other Financing Sources:
	Grants-Federal	18,405
	Grants-State	$15,250
	Grants-Other Local Units	46,088
	Transfer from Electric	6,000
	Charges for Services/ Special Events	45,000
	Donations	1,414
	Fund Balance-Expense Reduction	(82,010)
	TOTAL ESTIMATED REVENUES AND OTHER RECEIPTS	$50,147
	PROPOSED APPROPRIATIONS
	General Government	$(138,750)
	Public Safety	331,374
	Economic Environment	(224,898)
	Culture/Recreation	82,421
	TOTAL PROPOSED APPROPRIATIONS	$50,147
	CAPITAL PROJECTS FUND
	ESTIMATED REVENUES AND OTHER RECEIPTS
	Other Financing Sources:
	Grants-Federal	(279,530)
	Grants-State	805,000
	Grants-Other Local Units	$28,971
	TOTAL ESTIMATED REVENUES AND OTHER RECEIPTS	$554,441
	PROPOSED APPROPRIATIONS
	General Government	$(188,951)
	Public Safety	17,639
	Culture/Recreation	(79,247)
	Transportation	805,000
	TOTAL PROPOSED APPROPRIATIONS	$554,441
	Electric Fund
	ESTIMATED REVENUES AND OTHER RECEIPTS
	Other Financing Sources:
	Grants-Federal	$5,922
	TOTAL ESTIMATED REVENUES AND OTHER RECEIPTS	$5,922

	PROPOSED APPROPRIATIONS
	Physical Environment		$5,922
	TOTAL PROPOSED APPROPRIATIONS		$5,922
	ALL FUNDS
	ESTIMATED REVENUES AND OTHER RECEIPTS
	Other Financing Sources:
	Grants-Federal		$(255,203)
	Grants-State		820,250
	Grants-Other Local Units		75,059
	Transfer from Electric		6,000
	Charges for Services/ Special Events		45,000
	Donations		1,414
	Fund Balance		(82,010)
	TOTAL ESTIMATED REVENUES AND OTHER RECEIPTS		$610,510
	ALL FUNDS
	PROPOSED APPROPRIATIONS
	General Government		($327,701)
	Public Safety		349,013
	Transportation		805,000
	Economic Environment		(224,898)
	Culture/Recreation		3,174
	Physical Environment		5,922
	TOTAL PROPOSED APPROPRIATIONS		$610,510
SECTION II.
The 2004 General Fund Capital Improvement Bond Funds shall be reallocated among the various projects pursuant to the following: SECTION III. This ordinance shall become effective upon its passage and adoption by the Leesburg City Commission in the manner provided by law.
PASSED AND ADOPTED at a regular meeting of the City Commission of the City of Leesburg, Florida held on the _______ day of May, 2007.
		Sanna Henderson, Mayor
ATTEST:
City Clerk