Minutes 02/14/2006 - Laserfiche WebLink

Home Browse Search

February 14. 2006 "ORDINANCE ACCEPTING A GRANT IN THE AMOUNT OF $162,969.66 FROM THE VIRGINIA DEPARTMENT OF SOCIAL SERVICES AND APPROPRIATING THE SAME AMOUNT IN THE FY 2005-2006 SOCIAL SERVICES FUND OPERATING BUDGET FOR A CHILD AND FAMILY SERVICES PROGRAM IMPROVEMENT PLAN." Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst, Holley Nays: None 06-80 Adoption of an ordinance increasing the FY 2006 Operating Budget by $1,250,000 in the General, Golf, Parking and Public Utilities Funds to provide cash funding for bond issuance costs paid from bond proceeds received from the 2005 Bond Sale authorized in FY 2006. Vision Principle: Bold New Directions and a Robust and Prospering Economy. Background: . In May 2005, the FY 2006 Operating Budget was adopted with no funding included for bond issuance costs. The estimated bond issuance costs were not calculated, as bond sale planning had not yet begun. . In June 2005, the City's bond sale planning began to address the sizing, structure and timing of bonding requirements, including "new money" bond proceeds for 4 years of CIP projects and debt restructuring. . In October 2005, the City sold and issued 3 series of G.O. Bonds for a combined total of $120,110,000, with sufficient bond proceeds received at settlement to cover bond issuance costs totaling $1,250,000. . In February 2006, the FY 2006 Operating Budget requires a supplemental appropriation to properly budget and account for the bond issuance costs in the General, Gold, Parking and Public Utilities Funds. Discussion: . The bond issuance costs from the 2005 Bond Sale includes underwriter fees, bond insurance premiums, accounting/escrow/financial advisory/legal/printing fees and other costs are covered by bond proceeds. . The City must budget and account for bond issuance costs resulting from the 2005 Bond Sale in FY 2006. . Financial Impact: There is no net financial impact on the City. Staff Recommends: Adoption of an ordinance increasing the FY 2006 Operating Budget by $1,250,000 in the General, Golf, Parking and Public Utilities Funds to provide cash funding for bond issuance costs paid from bond proceeds received from the 2005 Bond Sale authorized in FY 2006. Vision Principle: Bold New Directions and A Robust and Prospering Economy. Next Steps Following Council Action: . The CFO will ensure that a budget action to increase appropriations by a total of $1,250,000 in the General, Golf, Parking and Public Utilities Funds is processed immediately. . The CFO will also ensure that a journal entry to record the bond issuance costs incurred by the General, Golf, Parking and Public Utilities Funds is processed immediately. Motion by Mr. Moody, and seconded by Ms. Randall, to adopt the following ordinance, and was adopted by the following vote: "ORDINANCE INCREASING THE FY 2005-2006 OPERATING BUDGET BY A TOTAL AMOUNT OF $1,250,000 AND APPROPRIATING THE SAME AMOUNT IN THE FY 2005-2006 GENERAL, GOLF, PARKING AND PUBLIC UTILITIES FUNDS TO PROVIDE CASH FUNDING FOR BOND ISSUANCE COSTS FOR CAPITAL IMPROVEMENT PROJECTS AND DEBT RESTRUCTURING."