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Agenda 06/09/2009 Item #16C17 Agenda Item No. 16C17 June 9, 2009 Page 1 of 3 EXECUTIVE SUMMARY Recommendation to approve a budget amendment of approximately $2,400,000 to transfer a Master Pump Station Mechanical. Improvement project from the wastewater capital projects fund to the 2006 Revenue Bond Proceeds Fund to segregate the project funded by the 2006 Revenue Bond. OBJECTIVE: To approve a budget amendment of approximately $2,400,000 to transfer a Master Pump Station Mechanical Improvement project from wastewater capital projects fund to the 2006 Revenue Bond Proceeds Fund to segregate the project funded by the 2006 Revenue Bond. CONSIDERATIONS: On November 14, 2006, item 101, the Board authorized the Collier County Water-Sewer District (District) to issue revenue bonds, series 2006, in the aggregate principal amount not to exceed $120,000,000. The Public Utilities Division worked with the County's Finance Committee and Financial Advisor and received $112,290,277.35. Of the total amount, $65,248,635.56 was earmarked to fund capital projects, and $38,000,000 to payoff existing commercial paper loans. The balance of $9,041,641.79 was applied toward a reserve for debt service, underwriters discount, capitalized interest, and cost of issuance. - On February 13, 2007, Item lOG, the Board authorized a budget amendment for $38.198,334.09 to transfer some projects from various water and wastewater capital project funds to the revenue bond fund. On June 26, 2007, Item 16C12, the Board authorized another $15,000,000 to be transferred from the water impact fee capital projects fund to the revenue bond fund. On January 29, 2008, Item 16C5, the Board authorized $11,446,766.41 transferred from the water impact fee fund to the revenue bond fund. On July 22, 2008, Item 16c1, the Board authorized $6,103,000 to be transferred from various water and wastewater capital projects funds to the revenue bond fund. On September 23, 2008, Item l6c 1, the Board authorized $1,800,000 to be transferred from various water and wastewater capital projects funds to the revenue bond fund. Of the $65,248,635 in the revenue bond proceeds earmarked for capital projects, approximately $58 million has been spent; and approximately $7 million remains to be spent. Reductions in impact fee revenue make it fiscally necessary and prudent to fund additional projects with the remaining bond proceeds. While the option of borrowing under a low interest rate State Revolving Fund (SRF) administered by the State is available, the timing of reimbursement for project-related expenses already incurred is protracted due to the financial shortfalls within the SRF pool of funds. Due to the fmancial constraints experienced by the State, the amount and timing of reimbursements is less favorable at this juncture. Staff is working closely with consultants to expedite the process at both the state and national level. - Aoenda Item No. 16C17 - June 9, 2009 Page 2 of 3 To provide adequate and timely funding, it is prudent to move the applicable project from the wastewater capital projects fund to the revenue bond fund and reduce the outstanding balance of the revenue bond. As other budgeted projects are specifically identified when they are closer to the construction phase, it will be preferable to move such projects into fund 415. FISCAL IMPACT: Budget amendments are needed in FY 2009 to move Master Pump Station Mechanical Improvement Project #72548 out of wastewater impact fee capital project fund and into the 2006 Revenue Bond Fund (415). The proposed budget amendments do not change the overall budget amounts or the intent of the projects. LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County Attorney's office, is not quasi-judicial and requires no ex parte disclosure, requires only a majority vote for approval, and is otherwise legally sufficient for board action. -SR T GROWTH MANAGEMENT IMPACT: None. RECOMMENDATION: That the Board of County Commissioners, ac; the Ex- Officio Governing Board of the Collier County WaterlSewer District, approve the necessary budget amendments as requested herein. PREPARED BY: Bala M. Sridhar, Senior Management & Budget Analyst, Public Utilities - Operations ,.-" Page 1 of 1 Agenda Item No. 16C17 June 9, 2009 Page 3 of 3 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 16C17 Recommendation to approve a budget amendment of approximately $2,400,000 to transfer a Master Pump Station Mechanical Improvement project from the wastewater capital projects fund to the 2006 Revenue Bond Proceeds Fund to segregate the project funded by the 2006 Revenue Bond. Meeting Date: 6/9/20099:00:00 AM Prepared By Baja Sridhar Senior Management/Budget Analyst Date Public Utilities Public Utilities Operations 5/26/2009 8:45:03 AM Approved By Thomas Wides Operations Director Date Public Utilities Public Utilities Operations 5/26/2009 9:33 AM Approved By James W. DeLony Public Utilities Administrator Date Public Utilities Public Utilities Administration 5/28/2009 1 :34 PM Approved By OMB Coordinator OMB Coordinator Date County Manager's Office Office of Management & Budget 5/28/2009 1 :42 PM Approved By Susan Usher Senior Management/Budget Analyst Date County Manager's Office Office of Management & Budget 6/1/20092:06 PM Approved By Jeff Klatzkow County Attorney Date County Attorney County Attorney Office 6/1/20092:26 PM Approved By Leo E. Ochs, Jr. Board of County Commissioners Deputy County Manager Date County Manager's Office 6/1/20092:38 PM file:llc:\AgendaTest\Export\131-June%209,%202009\ 16.%20CONSENT%20AGENDA\ 16c... 6/312009