Agenda - 12/11/2008 - 4h - Laserfiche WebLink

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Source of Funds School Capital County Capital Pro'ect Fund Pro'ect Fund Additional Funds Needed $8,430,000 $9,291,944 Unallocated Alternative Financing $1,347,000 Unallocated Bonds 907,000 School Capital Reserve Funds 580,000 From Closed Projects 455,000 Interest Earnings $ 875,000 Revenue Available within Projects 2,136,255 Total Funds Available b Fund $3,289,000 $3,011,255 Grand Total Funds Available $6,280,689 Park Bonds to be issued to com lete ro'ect fundin 5,500,000 Net Shortfall $5,141,000 $780,689 Total Both Funds $5,921,689 Staff Proposal for Covering Remaining Shortfall As stated earlier, $5.9 million in additional capital funding is needed to cover the shortfall. Based on current year cash flow needs, at least $3.5 million of the shortfall is needed in the current fiscal year. The remaining $2.4 million will be needed in FY 2009-10. Staff s analysis shows the majority of the remaining shortfalls resulted from differences between the pay-as-you-go funds budgeted for projects in the two capital project funds and the amount of money transferred to the two capital projects funds from the General Fund. Most of these differences existed when the conversion to MUNIS was made. This means they occurred prior to the end of fiscal year 2003 over one or more fiscal years. If those additional amounts of pay- as-you-go revenue had been transferred from the General Fund, the fund balance would be less than it currently stands. Staff recommends the Board approve atwo-year funding plan to .replenish the shortfall by appropriating General Fund available fund balance. Based on preliminary estimates, the County's General Fund available fund balance at the end of FY 2007-08 is projected to be approximately 14.4% of expenditures or $24.7 million. If this plan is implemented, based on conservative projections, the projected available fund balance at the end of FY 2008-09 could be approximately 12% of expenditures or $21.85 million. The appropriation of $2.4 million in FY 2009-10 would decrease the fund balance to 11.1 % or $21.64 million. While this percentage amount is higher than the Local Government Commission recommendation of a minimum 8 percent of expenditures, it is below the staffs recommended target of 15 percent of expenditures. Staff will bring budget amendments to the Board to implement the recommended action if approved by the Board. Additionally, budget amendments will be brought to the Board in those cases where project expenditures have exceeded the project budgets and where appropriation of other identified sources, such as the transfer of the remaining School Capital Reserve Funds, is necessary.