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HomeMy WebLinkAboutR-2002-008 Amending Resolution No. 2001-125, which resolution amended its general fund budget for Fiscal Year 2000-2001 RESOLUTION NO. 2002-008 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA, AMENDING RESOLUTION NO. 2001-125, WHICH RESOLUTION AMENDED ITS GENERAL FUND BUDGET FOR FISCAL YEAR 2000-2001, BY REDUCING CERTAIN REVENUE ESTIMATES AND BY BORROWING $750,000 FROM THE WATER FUND AND $750,000 FROM THE SEWER FUND, SO THAT THE LOANS OF $750,000 FROM THE WATER FUND AND $750,000 FROM THE SEWER FUND TO THE GENERAL FUND ARE RECLASSIFIED AS INTERFUND TRANSFERS, PROVIDING THAT ALL RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT HEREWITH BE REPEALED TO THE EXTENT OF SUCH CONFLICT; AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, Resolution No. 2001-125 transferred $750,000 from the Water Fund and $750,000 from the Sewer Fund to the General Fund; and WHEREAS, this action was taken for the purpose of providing sufficient resources to the General Fund on a cash-flow basis to operate for the remainder of fiscal year 2001; and WHEREAS, this action was determined at that time to be necessary as a result of reserves in the General Fund being insufficient to meet such needs, and projections showing that certain revenues for the General Fund for Fiscal Year 2001 were over- estimated; and WHEREAS, upon discussion with the the City's auditors, S. Davis & Associates, P.A., it was determined that the nature of the transaction was an operating transfer, and that an adjustment of the recording of the transaction would be necessary in order to achieve the City's goal in this matter; and 1 RESOLUTION NO.2002-008 WHEREAS, the City intends to voluntarily make repayment to the Water and Sewer OFunds on the same schedule as established in the initial resolution. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That the transaction taken previously as an interfund loan between the Water and Sewer Funds to the General Fund be amended to reclassify it as an interfund transfer. Section 2. That all resolutions or parts of resolutions in conflict herewith be replealed to the extent of such conflict. Section 3. That the effective date of this resolution shall be September 30, 2001. PASSED AND ADOPTED THIS 22Id day of January, 2002. • PATRICIAL FLURY - MAYOR-COMMISSIONER ATTEST: ROLL CALL: COMMISSIONER BERTINO - YES COMMISSIONER MCELYEA - YES C RLENE JONNSON COMMISSIONER MIKES - ABSENT CITY CLERK VICE-MAYOR CHUNN - YES MAYOR FLURY - YES APPROVED AS TO FORM AND CORRECTNESS: BY: (V i THO AS J. ANSBRO CITY ATTORNEY 2 RESOLUTION NO.2002-008 — t CITY OF DANIA REACH T DEPARTMENT OF FINANCE MEMORANDUM TO: Ivan Pato, Memo: DFA-02-008 City Manager FROM: David Keller, Director, CGFM Director of Finance DATE: January 14, 2002 SUBJECT: Amendment to Resolution No. 2001-125 Issue The issue is the amendment to Resolution No. 2001-125 to reclassify the interfund loan between the Water and Sewer Funds to the General Fund as an interfund transfer. ® Explanation Resolution No. 2001-125 transferred $750,000 from the Water Fund and $750,000 from the Sewer Fund to the General Fund. This action was taken in order to provide sufficient resources to the General Fund on cash-flow basis to operate for the remainder of FY 01 . Insufficient reserves in the General Fund and over-estimation of certain revenue projections for the General Fund for FY 01 were the primary factors necessitating the transfer. The City's auditors, S. Davis & Associates, P.A., determined that the nature of the transaction was an operating transfer, and that an adjustment of the recording of the transaction would be necessary in order to achieve the City's goals in this matter. The City intends to voluntarily make repayment to the Water and Sewer Funds on the same schedule as established in the initial resolution. Recommendation For your information. C: Mayor/Commission