HomeMy WebLinkAbout2006 07 10 Consent 404 Police Impact Fee Fund Reserve Parks Impact Fee
COMMISSION AGENDA
ITEM 404
Consent X
Informational
Public Hearing
Regular
July 10. 2006
Regular Meeting
~
Mgr. /
Authorization
@
Dept.
REQUEST:
The Finance Department is requesting that the City Commission authorize a
supplemental appropriation in the amount of $47,612 from the Police Impact Fee
Fund Reserve and $95,223 from the Parks Impact Fee Fund Reserve and $23,077
from the 2004 LOC (Line of Credit) Debt Service Fund Reserve. These funds,
totaling $165,912, will be used to payoff the Police Headquarters Expansion and
the Wincey Property purchase (Parks) portion of the Year 2004 Sun Trust Line of
Credit in the Fiscal Year 2005/2006 Budget.
PURPOSE:
The purpose of this Agenda Item is to ask for a supplemental appropriation in the
amount of $165,912 to payoff the Year 2004 SunTrust Line of Credit in the
Fiscal Year 2005/2006 Budget as discussed at the June 26, 2006 Fiscal Year
2006/2007 Budget Workshop.
The Year 2004 SunTrust Line of Credit was obtained for the following projects:
Police Headquarters Expansion, Wincey Property Purchase (Parks), Fire Truck,
Parker Property Improvements, City Hall Expansion and New Public Works
Facility. The Fire Truck portion of this line of credit was paid off in July 2004.
This payment will payoff the line of credit in full for the funds drawn down to-
date. There is $1,900,000 available from the line of credit for the Parker Property
Improvements, City Hall Expansion and New Public Works Facility projects that
have not been drawn down yet. The City has until February 28, 2007 to draw
down the remaining funds.
CITY OF WINTER SPRINGS
CITY COMMISSION
REGULAR MEETING -JULY 10,2006
CONSENT AGENDA ITEM "XXX"
PAGE20F2
CONSIDERATIONS:
During the Fiscal Year 2006/2007 Budget Workshop held on June 26, 2006,
during the "Expenditure Highlights - Interim Debt: Current Line of Credit
Loans," the City Manager discussed paying off this existing line of credit. Due to
the building permit activity this fiscal year, the Police and Parks Impact Fee
Reserve Fund Balances will allow for early payoff. By paying off this debt early,
the City will forgo future interest payments and be able to utilize those funds for
future capital projects.
FUNDING:
A supplemental appropriation from: Police Impact Fee Fund Reserve of $47,612
and the Parks Impact Fee Fund Reserve of $95,223, which will both be transferred
to the 2004 LOC (Line of Credit) Debt Service Fund (230) for Line Code 230-
57110 Debt Service - Principal $142,835; and from the 2004 LOC (Line of
Credit) Debt Service Fund Reserve of $23,077, which will be reallocated to Line
Code 230-57110 Debt Service - Principal. These funds totaling $165,912 will be
used to payoff the Police Headquarters Expansion and Wincey Property purchase
(Parks) portion of the line of credit.
RECOMMENDATION:
Staff recommends that the City Commission approve this supplemental
appropriation totaling $165,912 to pay off the Year 2004 SunTrust Line of Credit
in the Fiscal Year 2005/2006 Budget.
ATTACHMENTS:
Page from 6/26/06 Commission Workshop Package: FY 07 Budget Message:
"Expenditure Highlights - Interim Debt: Current Line of Credit Loans" page A-7
COMMISSION ACTION:
City of Winter Springs
Preliminary Budget Fiscal Year 2006-2007
1126 E. State Road 434
Winter Springs, FL 32708
(407)327-7590 .
I
I
I
I
I
-
I
I
I
I
I
I
I
I
I
I
I
I
I
I
EXPENDITURE HIGHLIGHTS - INTERIM DEBT
urrent Line of Credit Loans
Based upon building permit activity to date it appears that we will be able to payoff all eXisting)' j
line of credit loans with associated impact fees in FY 06. These loans were for expansion of the
Police Station paid off by Police Impact Fees ana Central Winds Park improvements paid off by
the Park Impact Fees.
Transportation Impact Fee Fund
It appears that transportation impact fees may not grow sufficiently to keep up with
transportation impact fee road projects that must be completed in FY 07 in the Town Center,
including Orange Avenue and Spine Road.
Therefore, I am recommending $50,000 in the general fund to finance an interim loan for these
projects, if needed.
City Hall Expansion
Public facilities impact fees will not grow sufficiently over the next five years to fund the project.
Additionally, due to the unprecedented increase in cost they may never be sufficient to pay the
project off in full. The latest estimate for this project is $1,900,000. The longer we wait the
more costly this project will become.
Therefore, I am recommending $150,000 in the general fund for a long term loan or bond with
an early call provision that would allow the Git)l ,to pay the loan or bond issue off when impact
fess have accumulated sufficiently to make a full or substantial~contribution to the payoff.
I am recommending that the previausfinarfcin'g strategy which involved the Public Facilities
Impact Fee Fund making a $600,000 contribution to the new Public Works Facility be changed,
eliminating the Public Facilities Impact Fee Fund contribution to that project. This is being
recommended to channel all Public Facilities Impact Fees to the City Hall Expansion Project.
The Utility Funds pro rata share contribution to the City Hall Expansion Project is roughly equal
to the Public Facilities Impact Fee contribution to the Public Works Facility Project. To simplify
the funding we are eliminating the transfers back and forth and funding the project fully under a
General Fund loan payable from Public Facilities Impact Fees and the General Fund.
Transportation Impact Fee Fund Loan
City Hall Loan or Bond
Total
$ 50,000
$150,000
$200,000
A-7