CITY COUNCIL AGENDA ITEM
Memo Date: May 3, 2021
Agenda Date: May 11, 2021
Prepared By: Christi Grant, Staff Accountant
Through: Rebecca Bowman, MBA, CGFO, CGFM, Finance Director
Requested Action:
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Approval to Reallocate Proceeds from the Water and Sewer System Revenue Bonds, Series 2018B; Approve a Resolution Amending the FY 2021 Budget, BAF#21-073-A. Approve the current Series 2018B Bond Project Listing.
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BACKGROUND:
In October 2018, the City received proceeds from the sale of Water and Sewer System Revenue Bonds, Series 2018B ("Series 2018B W/S Bond"). The bond included a list of projects that the bond proceeds were planned to fund. The City is currently implementing the capital improvement projects funded by the Series 2018B W/S Bond.
In April 2020, the City reallocated the proceeds from the sale of Water and Sewer System Revenue Bonds, Series 2018B ("Series 2018B W/S Bond") in order to fully fund the CCRIP project, taking budget from other projects previously budgeted that either had not been started at that time or had been completed under budget, including the following bond projects: WS0501, WS1201, WS18FB, WS18SW, and WS19SS.
Staff has conducted an audit of the 426 Series 2018B Bond Proceeds Fund and has determined the following corrections are needed:
Interfund transfers in the amount of $276,677 and $927,731 were erroneously recorded and need to be reversed.
The interest earned in FY2020 needs to be spent on the bond projects, and as a result Staff is requesting to increase the budget for the Pineda Subaqueous Pipe Project (WS18MI) for amount of the FY2020 earned interest.
The FY2020 cost of investment management fees was not shown as a reduction of funds available for bond projects. Staff is requesting to reduce the budget in Project WS18MI for the investment management fees.
The project budget rollover into FY2021 did not consider the non-capital expenditures. As a result, the project budget f...
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