Agenda 07/22/2008 Item #16C 1Agenda Item No. 16C1
July 22, 2008
Page 1 of 3
EXECUTIVE SUMMARY
Recommendation to approve budget amendments of approximately $11,100,000 to
transfer projects from various water and wastewater capital projects funds to a
2006 Revenue Bond Proceeds Fund to segregate the projects funded by the 2006
Revenue Bond.
OBJECTIVE: That the Board of County Commissioners (Board) approve budget
amendments of approximately $11,100,000 to transfer projects from various water and
wastewater capital projects funds to a 2006 Revenue Bond Proceeds Fund to segregate
projects funded by the 2006 Revenue Bond.
CONSIDERATIONS: On November 14, 2006, item 10I, 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 pay off 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 10G, 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.
Of the $65,248,650 in the revenue bond proceeds earmarked for capital projects,
approximately $47 million has been spent; approximately $18 million remains to be
spent. Reductions in impact fee and user rate revenues makes 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
financial 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. In addition, funding these projects with the
proceeds of the 2006 Revenue Bond will position the county to stay in compliance with
the arbitrage regulations.
To provide adequate and timely funding, it is prudent to move the applicable projects
from the various capital projects funds to the revenue bond fund where such projects can
be tracked. Out of the approximately $18 million available in the revenue bond fund for
the funding of capital projects, approximately $11.1 million is recommended to be moved
Agenda Item No. 16C1
July 22, 2008
Page 2 of 3
to the revenue bond fund 415 at this time. 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: The proposed budget amendments do not change the overall
budget amounts or the intent of the projects. However, they do segregate the projects in
the appropriate fund for proper monitoring purposes.
Budget amendments are needed to transfer projects from 708921to 708922, 725461 to
725642, 739661 to 739663, and 739701 to 739702 as follows:
Increase
County Water Sewer Bond Fund (415)
Fund Center #
Proiect #
Title
Amount
273411 -Water
708922
South County Regional Water
$6,100,000.00
Impact Fee 2006 RB
Treatment Plant Well field
Expansion- Easement
263413 - Wastewater
725462
Pump Station Improvements
$2,500,000.00
Impact Fee 2006 RB
263614 - Watewater
739663
North County Water Reclamation
$1,300,000.00
User Rate 2006 RB
Facility Bleach System
263614 - Watewater
739702
Pump Station Improvements
$1,200,000.00
User Rate 2006 RB
TOTAL $11,100,000.00
This proposed transfer to move projects from various funds to the 2006 Revenue Bond
Fund was approved by the finance committee.
GROWTH MANAGEMENT IMPACT: None.
RECOMMENDATION: That the Board of County Commissioners (Board) approve
budget amendments of approximately $11,100,000 to transfer projects from various water
and wastewater capital projects funds to a 2006 Revenue Bond Proceeds Fund to
segregate projects funded by the 2006 Revenue Bond.
PREPARED BY: Bala M. Sridhar, Senior Management & Budget Analyst, Public
Utilities- Operations
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Agenda Item No. 16C1
July 22, 2008
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COLLIER COUNTY
`
BOARD OF COUNTY COMMISSIONERS
Item Number:
16C1
Item Summary:
Recommendation to approve budget amendments of approximately
$11,100.000 to transfer
projects from various water and wastewater capital projects funds to a 2006 Revenue Bond
Proceeds Fund to segregate the projects funded by the 2006 Revenue Bond.
Meeting Date:
7/22/2008 9:00.00 AM
Approved By
Thomas Wides
Operations Director
Date
Public Utilities
Public Utilities Operations
6/27/2008 9:45 AM
Approved By
James W. DeLony
Public Utilities Administrator
Date
Public Utilities
Public Utilities Administration
7111200810:14 AM
Approved By
OMB Coordinator
OMB Coordinator
Date
County Manager's Office
Office of Management & Budget
711120081:26 PM
Approved By
-� Susan Usher
Senior Management/Budget Analyst
Date
County Manager's Office
Office of Management & Budget
7/8/2008 11:40 AM
Approved By
James V. Mudd
County Manager
Date
Board of County
County Managers Office
7/8/2008 12:14 PM
Commissioners
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