HomeMy WebLinkAbout2004 06 28 Consent 205
COMMISSION AGENDA
ITEM 205
Consent X
Informational
Public Hearing
Regular
June 28. 2004
Regular Meeting
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Dept.
Mgr. 1
Authorization
REQUEST:
The Fire Department is requesting that the City Commission authorize a
supplemental appropriation in the amount of $278,050 from the General Fund
Reserves, to be used along with the current budgeted funds, to payoff the Fire
Truck Loan in the Fiscal Year 200312004 Budget.
PURPOSE:
The Fire Department is requesting that the City Commission authorize a
supplemental appropriation in the amount of $278,050 from the General Fund
Reserves, to be used along with the current budgeted funds, to payoff the Fire
Truck Loan in the Fiscal Year 200312004 Budget as discussed at the June 1,2004
Fiscal Year 2004/2005 Budget Workshop.
CONSIDERATIONS:
During the Fiscal Year 2004/2005 Budget Workshop held on June 1, 2004, the
City Manager discussed "Prepayment of Notes." It was determined that in order
to fund new operating costs in the Fiscal Year 200412005 without a tax increase;
be in compliance with the City's Current Position Policy, which provides that
recurring expenses (personnel, operating and debt payments) may not be funded
from non-recurring revenue sources (fund balance, reserves and revenues
dedicated to non-recurring expenses, such as grants); as well as, be in compliance
with the City's Fund Balance Policy, which provides the General Fund must not
maintain less than a three-month operating reserve unless there is a declared
emergency, the City needed to consider paying off the Fire Truck note. It was
City Commission consensus that evening to proceed with this initiative.
CITY OF WINTER SPRINGS
CITY COMMISSION
REGULAR MEETING -JUNE 28, 2004
CONSENT AGENDA ITEM "205"
PAGE20F2
FUNDING:
A supplemental appropriation from the General Fund Reserves of $278,050 will
be transferred to the 2004 Line of Credit Debt Service Fund (230) for Line Code
230-57110 Debt Service - Principal. These funds along with the current budgeted
funds will be used to payoff the Fire Truck Loan in the Fiscal Year 200312004
Budget.
RECOMMENDATION:
Staff recommends that the City Commission approve a supplemental
appropriation in the amount of $278,050 to pay of this loan in fiscal year
200312004.
ATTACHMENTS:
Page from 6/1/04 Commission Workshop Package: FY 05 Budget Issues:
"Prepayment of Notes"
COMMISSION ACTION:
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FV05
BUDGET ISSUES
"PREP A YMENT OF NOTES"
ISSUE:
Does the Commission support payment of the 2002 Information System note and Fire Truck note
to fund the FY 05 Budget in conformance with established budget policies?
DISCUSSION:
Numerous laws policies and practices guide the financial management of City funds, two of the
most important are the Current Position Policy and the Fund Balance Policy.
Fund Balance Policy:
The Fund Balance Policy provides that the General Fund must not maintain less than a three-
month operating reserve unless there is a declared emergency.
The City is currently in compliance with this policy.
Current Position Policy:
After several years of planning the City has worked itself into. conformity with a Current Position
Policy which provides that recurring expenses, (personnel, operating, and debit payments) may
not be funded from non-recurring revenue sources (fund balances, and reserves and revenues
dedicated to non-recurring expenses such as grants). This is an extremely important fmancial
discipline which if violated will most certainly led to financial problems.
The City is currently in compliance with this policy.
FY 05:
In order to fund new operating costs like those listed below without a tax increase, and to be in
compliance with the above budget policies, we need to prepay the remaining $87,000 of the FY
2000 Information System note and pay cash for the $302,000 Fire Truck, removing
approximately $137,000 in recurring note payments from the General Fund.
Expanded Roadway Landscape Maintenance
Senior Bus Service Increases
New. 'Fown Center Street Lighting
New Town Center Maintenance
New Parker property Park Maintenance
TOTAL
$47,000
$13,000
$45,000
$40,000
$60.000
$205,000
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FISCAL IMPACT:
If these recurring note payments are left in the FY 05 budget, a millage increase of 0.1003 mills
would be necessary to maintain the current position policy which discourages the use of non-
recurring revenues to pay for recurring cost.
Payment of these notes will reduce the projected FY 04 ending fund balance to approximately
$4.6 million, some $600,000 above our minimum fund balance policy requirement.
RECOMMENDATION:
It is recommended that the Commission approve the prepayment of the FY 2000 Information j
System note and $302,000 Fire Truck note from General Food Reserves.