Agenda 01/29/2008 Item #16C 5
Agenda Item No. 16C5
January 29,2008
Page 1 of 3
EXECUTIVE SUMMARY
Recommendation to approve a budget amendment for $11,446,766.41 to transfer
funds for South County Regional Water Treatment Plant (SCRWTP) Well field
Expansion project 708921 Water Impact Fee capital projects fund to a 2006
Revenue Bond Proceeds Fnnd.
OBJECTIVE: Recommendation to approve a budget amendment for $11,446,766.41 to
transfer funds for South County Regional Water Treatment Plant (SCRWTP) Well field
Expansion-Easement project 708921 Water Impact Fee capital projects fund to a 2006
Revenue Bond Proceeds Fund. Primary purpose of this request is to enable timely
payment of invoices for the project utilizing available cash in the existing Revenue Bond
Fund instead of borrowing from any a1tel11ate source of funding.
CONSIDERATIONS: The SCRWTP Well field Expansion-Easement project 708921
has a budget of $24,500,114.25 approved by the Board for FY 08. This project was also
included in the Master Plan approved by the Board on June 6, 2006, Item# 10D. This
project was originally scheduled to be funded 100% by a State Revolving Fund (SRF)
loan and approved as such by the Board on March 13, 2007, item # 101.
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The execution rate of these projects exemplifies desirable project outcomes and
deliverables in terms of magnitude, timeliness, and quality. Furthel1110re, there is a
likelihood of time lag between the disbursement of payments and reimbursement from
the FDEP. Ho_ver, the resulting expenditure rate, while still within budget, has
outpaced SRF funding releases. As a result, staff recommended and the Board approved
on June 26, 2007, item 16C12, a budget amendment to move $11 million from water
impact fee fund 411 to the 2006 Revenue Bond fund 415.
As outlined in the executive summary of the June 26, 2007 meeting referenced above, the
recent developments at the federal congressional level had delayed the typical flow of
funds from the state. It was also mentioned that if the uncertainty continued; staff would
evaluate the need to modify the agreement with the FDEP and transfer more of this
project to be funded from the proceeds of the 2006 Revenue Bond. Based on
conversations with the FDEP officials and consultants, staff believes that we will not be
getting sufficient reimbursements from the FDEP in time to meet our future obligations.
Approximately $37 million has been spent so far on this project. The County has
received only $8 million as reimbursement from the DEP; therefore, it is fiscally prudent
to fund part of the project with the SRF loan and part of it with the revenue bond
proceeds. The Board had already authorized, as stated earlier, transfer of approximately
$11 million from SRF funding to Revenue Bond funding for this project. This request to
transfer an additional $11,446,766.41 will provide the County with the flexibility to
execute the project without jeopardizing the cash availability and to meet payment of
invoices in a timely manner. This will also enable the staff to utilize existing cash in the
revenue bond fund instead of having to borrow from altel11ative funding sources.
<,-'"
Agenda Item No. 16C5
January 29, 2008
Page 2 of3
On November 14, 2006, item lOI, the Board authorized Collier County Water-Sewer
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; $65,248,650 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 towards setting up a reserve for debt
service, undenl,lriters discount, capitalized interest, and cost of issuance.
The bond proceeds were deposited in the County Water/Sewer Bond Fund (415) to fund
various water and wastewater projects as needed.
This recommendation was approved by the Finance Committee.
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 financial monitoring and control purposes.
In the Water Impact Fee Fund (411), reduce the project SCRWTP wellfield expansion
project (70892) costs and the SRF loan transfer from the debt service fund 410 by
$11,446,766.41. In the 2006 Revenue Bond Proceeds Fund (415) increase the SCRWTP
wellfield expansion project costs and reduce Resen'es by $11,446,766.41. In the
water/sewer Dcbt Service Fund (410) decrease the transfer to the Water Impact Fee Fund
(411) and the SRF Loan Procecds by $11,446,766.41.
GROWTH MANAGEMENT IMPACT: This action elicits no impact on Growth
Management.
RECOMMENDATION: Recommendation to approve a budget amendment for
$11,446,766.41 to transfer funds for the South County Regional Water Treatment Plant
(SCRWTP) Well field Expansion project 708921 Water Impact Fee capital projects fund
to a 2006 Revenue Bond Proceeds Fund.
PREPARED BY: Bala M. Sridhar, Senior Management & Budget Analyst, Public
Utilities-Operations
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Page 1 of 1
Agenda Item No. 16C5
January 29, 2008
Page 3 of 3
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
16C5
Recommendation to approve a budget amendment for $11.446,766.41 to transfer funds for
South County Regional Water Treatment Plant (SCRWTP) Well field Expansion project
708921 Water Impact Fee capital projects fund to a 2006 Revenue Bond Proceeds Fund.
Meeting Date:
1129/20089:0000 AM
Prepared By
Bala Sridhar
Senior Management/Budget Analyst
Date
Public Utilities
Public Utilities Operations
1/16/200811 :28:05 AM
Approved By
Thomas Wi des
Operations Director
Date
Public Utilities
Public Utilities Operations
11161200811 :42 AM
Approved By
James W. DeLany
Public Utilities Administrator
Date
Public Utilities
Public Utilities Administration
1116/20081 :34 PM
Approved By
OMS Coordinator
OMS Coordinator
Date
County Manager's Office
Office of Management & Budget
1117/20084:19 PM
Approved By
Susan Usher
Senior Management/Budget Analyst
Date
County Manager's Office
Office of Management & Budget
1/22120084:28 PM
Approved By
James V. Mudd
County Manager
Date
Board of County
Commissioners
County Manager's Office
1122/20085:05 PM
file://C :\AgendaTest\Export\99-January%2029, %202008\ 16. %20CONSENT%20AGENDA \... 1/23/2008