AGENDA MEMORANDUM

Meeting Date:           April 13, 2009

From:                          Brandy McDaniel, Budget Manager

                                    Jerry Boop, CPA, CGFO Finance Director                                                                

Subject:                      Ordinance reallocating the 2007 Capital Improvement Bond for the Electric Fund

Staff Recommendation:

Staff recommends adoption of the attached ordinance reallocating the 2007 Capital Improvement Bonds for the Electric Fund.

Analysis:

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                            7,            257,728                            5,563,848                    (1,693,880)

Other Equipment                                       -0-                            1,693,880                     1,693,880

Lighting Projects                                 200,000                               200,000                           -0-

Subdivisions                                        815,700                               815,700                           -0-

Reconductoring                                1,783,480                                        1,783,480                          -0-

Substations                                         200,000                        200,000               -0-___        

                                                $     10,876,908                                   $ 10,876,908               $          -0-

The 2007 Bond issue project list included funding of $1,740,000 to underground College Drive to Radio Road/Hwy 441.  On March 23, 2009, the City Commission approved the contract with Power Secure to purchase interactive generator transfer switches and associated services.  The project total of $1,693,880 consists of Power Secure $1,652,880 and $35,000 to connect the generator at the Public Works site.  Bond counsel has verified that the funds are eligible to be reallocated to the other equipment project.

Options:

1. Adopt the attached ordinance reallocating the 2007 Capital Improvement Bond for the Electric Fund; or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

There is no fiscal impact on the Electric fund:

FUND	FY 2009 CURRENT	CHANGE	FY 2009 AMENDED
Electric	$  84,077,751	$       -0-	$  84,077,751

Submission Date and Time:    4/9/2009 9:28 AM____

Department: _Finance______________ Prepared by:  Brandy________________                      Attachments:         Yes_X__   No ______ Advertised:   ____Not Required ______ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________             Revised 6/10/04

Reviewed by: Dept. Head __JB____ Finance  Dept. ___________JB_____                                    Deputy C.M. ___________________                                          Submitted by: City Manager ___________________

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

Narrative Explanation- Reallocation of Funds 2007 Electric Fund

Capital Improvement Bond Funded Projects

Distribution Lines (-1,693,880)

Funding to include the cost to install poles and fixtures used for supporting overhead conductors and service wires used for distribution purposes.  Additionally, funding for underground conduit, conductors, and devices will be used for distribution purposes. 

Other Equipment (+1,693,880)

Funding to provide equipment and services for eight city-owned generators.  The project will retrofit eight existing City owned emergency generators to accommodate operation during hours of peak demand each month providing the opportunity to reduce power supply costs.  Additionally, funding is provided to install the existing Public Works generator at the Public Works site.

ORDINANCE 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.

WHERAS, 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, there is no fiscal impact on the Electric Fund

            NOW THEREFORE, BE IT ENACTED BY THE PEOPLE OF THE CITY OF LEESBURG, FLORIDA:

SECTION I.

The reallocation of the 2007 Capital Improvement Electric bond funds of $1,693,800 from the distribution project to the other equipment project is to align the needs of the Electric utility.

SECTION II.

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 _____ day of __April_______ 2009.

                                                                            __________________________

                                                                             Mayor

ATTEST:

__________________________

City Clerk