BOARD OF COUNTY COMMISSIONERS
Agenda Item #32
Title
Inter-fund loans from the General Fund to both the MSTU-Law Enforcement fund and the Combined Communication Center fund (Amended)
Amount
009=$1,100,000 and 144=$450,000
Description
Request inter-fund loans from General Fund to the MSTU-Law Enforcement Fund (009) of $1,100,000 and the Combined Communications Center Fund (144) of $450,000
Recommendation
Approve the inter-fund loans from the General Fund 001 to MSTU-Law Enforcement fund 009 (not to exceed $1,100,000) and the Combined Communication Center fund 144 (not to exceed $450,000)
Alternative(s)
Do not approve loans
Requested By
Suzanne Gable
Originating Department
Office of Management & Budget
Attachment(s) Description
N/A
Documents Requiring Action
None
Executive Summary
Approval of inter-fund loans from the General Fund to the MSTU-Law Enforcement fund (009) and the Combined Communications Center fund (144)
Background
Beginning October 1, 2002, the Board established an MSTU-Law Enforcement fund. This fund receives revenues from unincorporated ad valorem taxes as well as Communication Services Tax, Public Services Tax. Appropriations in this fund are for costs associated with unincorporated law enforcement and the Combined Communications Center. Pursuant to the inter-local agreement between the City of Gainesville, the Alachua County Sheriff's Office and the Alachua County Board of County Commissioners for a Combined Communications Center, the County transfers to the Sheriff the total amount of the budget needed to operate the Combined Communications Center facility. Additionally, the City of Gainesville remits to the County on a monthly basis their proportionate share of the costs. In accordance with the Comprehensive Financial Policies, inter-fund loans are intended to provide parameters and guidance for the management of loans between funds. Inter-fund loans may be necessary to provide adequate cash flow for reimbursable grants and contractual obligations with deferred revenues. Repayment of any loan shall not exceed one year without approval of the Board of County Commissioners. Loans outstanding at fiscal year end will be reported to the Board of County Commissioners. Any fund may receive a total loan of up to $25,000 with approval from the Clerk of the Courts, Finance Director, and the Director of the Office of Management and Budget or County Manager. Any fund may receive a total loan in excess of $25,000 with the approval from the Board of County Commissioners. Due to the receipts of ad-valorem taxes not being sufficiently received until the end of November, the County may not have sufficient cash carry forward fund balances to maintain an adequate cash flow in the beginning of the fiscal year. Therefore upon the approval from the Clerk of the Courts, Finance Director, Director of the Office of Management and Budget, and the County Manager, the General Fund or MSTU Fund may borrow short-term from other appropriate funds until the receipts of ad-valorem tax revenue provide adequate cash flow. In no instance, without approval of the Board of County Commissioners, shall the loan remain unpaid past December 31st of the year the loan is made.
Issues
Due to timing differences between receiving and expending funds, the MSTU-Law Enforcement fund and the Combined Communication fund will be exhausted prior to fiscal year end. Therefore, it is necessary to transfer: 1. $1,100,000 from the General Fund to the MSTU-Law Enforcement fund 2. $450,000 from the General Fund to the Combined Communication Center fund in order to meet it’s current and future liabilities anticipated through September 30th, 2008. If approved, the loans will be repaid prior to December 31st, 2008 when adequate cash will be available in the MSTU-Law Enforcement fund and the Combined Communication Center fund keeping Alachua County in compliance with Florida Statutes and Inter-local agreement.
Fiscal Recommendation
A temporary reduction of cash balance in General Fund; provides adequate funding of budgeted transfer to Sheriff's Office.
Fiscal Alternative(s)
None
Funding Sources
General Fund cash balance
Account Code(s)
None