HomeMy WebLinkAboutR-2003-135 Establish a designated fund balance for Legal, consulting and other fees RESOLUTION NO. 2003-135
A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA, DIRECTING THE
DIRECTOR OF FINANCE TO ESTABLISH A DESIGNATED FUND BALANCE IN THE
GENERAL FUND IN AN AMOUNT OF $500,000 FOR LEGAL, CONSULTING AND
OTHER FEES REQUIRED TO PROTECT CITY .RESIDENTS HOMES AND
BUSINESSES THREATENED BY PROPOSED AIRPORT EXPANSION; PROVIDING
FOR CONFLICTS; PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, on May 13, 2003, the City Commission approved Resolution 2003-115 to direct
staff to derive a designated source of funds in the amount of$500,000 for legal, consulting and other
fees related to the Airport Expansion issue; and
WHEREAS, Finance Staff has discussed with the City's current auditor, bond counsel and
banking institutions on the feasibility of establishing a line of credit;
WHEREAS, Finance Staff believe it is in the best interest and less cost to the City to establish
a designated fund balance for this said purpose.
NOW BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA:
Section 1. That the Finance Director is authorized to establish a designated fund balance in the,
amount of$500,000 for expenses related to,the airport issue, and that this funding:mill be transferred from the
current available General Fund fund balance.
Section 2. That all resolutions or parts of resolutions in conflict with this resolution are repealed to the
extent of such conflict.
Section 3. That this resolution shall be in force and take effect immediately upon its passage and
adoption.
PASSED and ADOPTED this 28th day of May, 2003.
A ON
MAYOR—CO ISSIONER
ATTEST- ROLL CALL:
COMMISSIONER CHUNN - YES
%44441 COMMISSIONER FLURY -YES
ARLENE JOH SON COMMISSIONER MIKES - YES
CITY CLERK VICE MAYOR MCELYEA -YES
MAYOR ANTON - YES
1 RESOLUTION NO. 2003-135
OPPROVED AS TO FO M AND CORRECTNESS:
BY:
THO MA S : ANSB O
TY AT CITORNEY
2 RESOLUTION NO. 2003-135
_ Agenda Request Form
City of Dania Beach
e >.
Agenda Item: 7s
Date of Commission meeting: 5/27/2003
Description of Agenda Item: Establish a designated fund balance for airport related expenses
Commission action being requested:
Adopt Resolution or Ordinance ® Expenditure ❑ Award BID / RFP ❑
Presentation ❑ General approval of item ❑ Continued from meeting
C3ther(Ple see expl }
Summary -xplanatian,antl background
Commission approved at the May 13, 2003 Commission meeting to commit $500,000 for airport related
expenses and directed staff to derive a designated source of funds for this purpose.
Attached exhibits and additionali'fiackup materiaf"(Plez% list),:
Staff Memo
Resolution
For purchasing requests ONLY
Department: Amount:
Fund: General: ❑ Water: ❑ Sewer: ❑ Stormwater: ❑ Grants: ❑ Capital: ❑
Account Name: Account Number:
Submitted by: Patricia Varney Date: 5/22/2003
Department Director: Date:
Admin. Services Director.• Date:
® Finance Director: Patricia Varney Date: 5/22/2003
City Manager. Ivan Pato Date: 5/22/2003
CITY OF DANIA BEACH
• DEPARTMENT OF FINANCE
MEMORANDUM
TO: Ivan Pato, City Manager Memo: DF-03-023
FROM: Patricia Varney, Director of Finance
DATE: May 20, 2003
SUBJECT: $500,000 designated resource for airport related expenses
Purpose
To derive a designated resource of funds for airport related expenses
Background
The City's Commission directed staff at the May 13, 2003 commission meeting for Finance Staff to
derive a designated resource of funds for future airport related expenses.
Staff has discussed with two banking institutions, SunTrust Bank and Wachovia Bank, the feasibility
® of establishing a line of credit in the amount of $500,000. Both banks indicated there will be an up
front legal document cost of $5,000 to establish the line of credit. Wachovia Bank indicated that
there will also be another cost of approximately $5,000 to the City for the commitment of the funds.
As for SunTrust, although they do not have a commitment of funds charge to the City, they will for
any use funds from the $500,000 a 20 basis point cost per year. For example, if there is an unused
fund of $400,000 there will be a cost of $800 per year. Line of credit is a short term loan, and is
expected to be paid back within two to three years period. Both banks indicated that line of credit
is usually set up for short term capital needs, emergency use such as during a disaster, or short term
cash shortfall towards the end of a fiscal year and that repayment will be made within a year or two,
or when cash is available when ad valorem tax is received. Florida Statute does not allow City to
enter in to any bond indenture for operating purposes.
Since it is only a short term loan, and that the City as of FY 2002 has an available General Fund
fund balance of $2,153,242, staff recommends after discussing with our current auditor, to transfer
$500,000 from the General Fund fund balance to a designated fund balance established for airport
related expenses. This will not incur any unnecessary cost to the City andhwill serve the same
purpose of setting a line of credit. As of May 20, 2003, the General Fundtlas $8,560,207 in available
cash and investments.
0