Agenda 09/23/2008 Item #16C 1Item # 16C1
September 23, 2008
Page 1 of 3
EXECUTIVE SUMMARY
Recommendation to approve budget amendments of approximately $1,800,000 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 $1,800,000 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. On July 22, 2008, Item 16C1, the Board authorized $6,103,000 to be
transferred from various water and wastewater capital projects fund to the revenue bond
fund.
Of the $65,248,635 in the revenue bond proceeds earmarked for capital projects,
approximately $56 million has been spent; approximately $9 million remains to be spent.
Reductions in impact fee and user rate revenue 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
Item # 16C1
pSeptember 23, 2008
be tracked. Out of the approximately $9 million available in the revenue bond fund ?oqe 2 of 3
the funding of capital projects, approximately $1.8 million is recommended to be moved
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: Budget amendments are needed in FY 2008 to move various
project budgets out of impact fee and user fee capital project funds and into the 2006
Revenue Bond Fund (415). Below is a detail schedule of projects.
Since the above action was not considered when preparing the FY 2009 budget, a budget
amendment is needed to reduce the Reserves and Carryforward budget in the 2006
Revenue Bond fund 415. Also, the allocation of the annual debt service payment
between the impact fee funds and the Water /Sewer Operating fund (408) has shifted with
this action. Therefore budget amendments are needed so the annual debt service payment
is funded by the correct allocation.
The proposed budget amendments do not change the overall budget amounts or the intent
of the projects.
Increase
Countv Water Sewer Bond Fund (415)
Fund Center #
Project #
Title
Amount
273411 -Water
700932
Immok. Road 36" WWM 951 to
$558,500.00
Impact Fee Proect
Orangetree
273411 -Water
710023
North County Regional Water
$457,600.00
Impact Fee Project
Treatment Plant TDS RO
273412 -Water User
710522
North County Regional Water
$65,400.00
Rate Project
Treatment Plant Sand Filter
263614 - Watewater
730502
Sewer Line Rehab.
$672,000.00
User Rate Project
263614 - Watewater
739663
North County Water Reclamation
$29,100.00
User Rate Project
Facility Bleach S stem
TOTAL $1,782,600.00
GROWTH MANAGEMENT IMPACT: None.
RECOMMENDATION: That the Board of County Commissioner, as the Ex- Officio
Governing Board of the Collier County Water /Sewer District approve all the necessary
budget amendments.
PREPARED BY: Bala M. Sridhar, Senior Management & Budget Analyst, Public
Utilities- Operations
Item # 16C1
September 23, 2008
Page 3 of 3
Recommendation to approve budget amendments of approximately $1,800,000 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.
Prepared By:
Department Date
PU Operations 9/8/2008 1:24:33 PM
Approved By:
Department Approval
Public Utilities Approved
Approved By:
Date
9/10/2008 8:12 AM
Department Approval Date
Office of
Management Approved 9/15/2008 11:29 AM
and Budget
Approved By:
Department Approval Date
County pending
Manager's Office
ATTACHMENTS:
Name: Description: Type:
❑ 1 axe sum to move funds to Approve Budget Amendment for approximately $1,800,000 Executive Summary
415_rgv _f2l:d-gQ