HomeMy WebLinkAbout9/19/2001 - STAFF REPORTS (15) DATE: September 19, 2001
TO: City Council
FROM: Director of Finance and Treasurer
CREATION OF NEW FUND— BOND SAVINGS CAPITAL PROJECTS
RECOMMENDATION:
It is recommended that the City Council authorize the creation of a new fund, the Bond Savings
Capital Projects Fund, to segregate for accounting purposes the proceeds of the recent refinancings
of Assessment Districts No. 157 and No. 158.
SUMMARY:
This action creates a new fund in the City's accounting system. The proceeds from the recent
refinancing of AD 157 and AD 158, $300,000, will be transferred into the new fund and be available
for capital improvements.
BACKGROUND:
The City refinanced AD 157 and AD 158 on September 4, 2001. By taking advantage of lower
interest rates, the City saved just over $300,000. The use of this money is restricted to capital
improvements, and must be expended within 3 years. To facilitate the necessary accounting and
reporting requirements, staff is recommending that the bond savings be segregated in a new fund.
The attached resolutions authorize the creation of the Bond Savings Capital Projects Fund, and
authorize the transfer of the cash from the existing Capital Projects Fund,where the bond proceeds
had been temporarily deposited. The new fund could either fund existing capital improvements
already budgeted in other funds, or, at Council's discretion, fund new capital improvements.
SUBMITTED BY: APPROVED:
Thomas M. Kanarr David H. Ready
Director of Finance and Treasurer City Manager
ATTACHMENTS: Resolution for creation of new fund
Resolution for budget transfer
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RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA ESTABLISHING A BOND SAVINGS CAPITAL
PROJECTS FUND
WHEREAS Resolution No. 18982, establishes certain policies pertaining to budget
processes; and
WHEREAS the City Council must approve the creation of any new accounting Funds;
and
WHEREAS it is prudent to have an accounting structure in place to track the
expenditures made from funds provided from savings realized as a result of bond
refinancings; and
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs
as follows:
Section 1. Establishment of Bond Savings Capital Projects Fund
The Bond Savings Capital Projects Fund is hereby established, as a new Fund in the
Capital Projects Group of City funds, and the Director of Finance & Treasurer is directed
to create the appropriate accounting structure.
ADOPTED this day of 12001
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED & APPROVED as to form
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RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA,AMENDING THE BUDGET FOR THE 2001-02
FISCAL YEAR.
WHEREAS Resolution 20062 approving the budget forthe fiscal year2001-02 was adopted
on June 6, 2001; and
WHEREAS the City Manager has recommended, and the City Council desires to approve,
certain amendments to said budget;
NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record
inter-fund cash transfers as required in accordance with this Resolution, and that Resolution
20062, adopting the budget for the 2001-02 fiscal year is hereby amended as follows:
SECTION 1. ADDITIONS - GROUP 3
Fund Activity Account Amount
261 39920 300,159.61
Capital Projects Bond Proceeds
Purpose: To transfer cash temporarily deposited into the Capital Projects into a new fund
called Bond Savings Capital Projects
SECTION 2. SOURCE: Net savings from the refinancing of AD 157 and 158
FUND Activity Account Amount
262 39920 300,159.61
Bond Savings
Capital Projects
Adopted this day of , 2001.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED
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