HomeMy WebLinkAbout07-102
DATE SUBMITTED: March 21, 2007
BILL #
07-tO}...
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
........................................................m................a..............
SUBJECT: Amend the 2007 budget for
additional principal payments on the
Conference Center variable rate debt
obligation
Committee Meeting Date:
COUNCIL MEETING Date:
Department:
Presenter:
Phone:
4/2512007
5/2/2007
Financial Services
Laura Lyon
473-5722
SUMMARY: In 2006, the City experienced strong financial performance in the General Fund. As a result of
increased revenues and reduced expenditures, the General Fund had a higher ending fund balance than was
anticipated to carry forward as the beginning fund balance for 2007. After making consideration for; 1) capital
work that was not completed in 2006 that should be carried forward into 2007, 2) provision of adequate
reserves and contingency planning, and 3) other budget amendments previously approved by the City Council
or anticipated to be approved in the future - there is a net available positive fund balance remaining that is
recommended to be used for additional street maintenance supplies and additional reduction of outstanding
debt obligations in 2007. An expenditure of $125,000 for additional principal retirement ofthe City's
outstanding 2003 Conference Center variable rate debt obligation not only reduces the City's final obligation
for repayment of the debt - but it also results in an estimated interest expense savings of $96,862 over the
remaining term of the loan agreement (using today's variable rate percentage to estimate future period rates). It
is the recommendation of the Director of Financial Services that the City Council approve a budget amendment
authorizing the transfer of $125,000 from the General Fund to the Bond Fund and authorize the expenditure in
the Bond Fund of $125,000 for additional principal repayment on outstanding Conference Center debt.
ATTACHMENTS: Explanatory Memo
FISCAL IMPACTS (Include Budgeted Amount): The requested budget amendment will transfer an
additional $125,000 from the General Fund (Fund 001) to the Bond Fund (Fund 201) and authorize additional
debt principal payments in the Bond Fund of $125,000. The Financial results for 2006 provided a positive
General Fund ending fund balance variance carrying forward into 2007 - which is more than sufficient to cover
this additional expenditure in 2007.
APPROV ALS:
DEPARTMENT DIRECTOR:
CITY ATTORNEY:
FINANCE DIRECTOR:
MA YOR:
COMMITTEE CHAIR
COUNCIL PRESIDENT:
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CONSENT AGENDA
GENERAL BUSINESS D
PUBLIC HEARING D
RECOMMENDED MOTION: Move to approve a budget adjustment authorizing the transfer of
$125,000 from the General Fund to the Bond Fund and authorizing additional debt principal
payments in the same amount.
COUNCIL ACTTON: Lve D Deny D Tahle
D Continue
D No Action