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County Administrator's Report 13. 5.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	02/15/2018
Issue: Interfund Loan from LOST III to LOST IV
From:	Stephan Hall
Department:	Asst County Administrator
CAO Approval:

RECOMMENDATION:

Recommendation Concerning an Interest-Free Interfund Loan between the Local Option Sales Tax III Fund (352) and the Local Option Sales Tax IV Fund (353) - Stephan Hall, Budget Manager, Management and Budget Services

That the Board take the following action:

A. Approve a revolving interfund loan from the Local Option Sales Tax (LOST) III Fund (352) to the LOST IV Fund (353), in an amount not to exceed $3,000,000, to cover cash shortfalls until LOST IV proceeds are received starting in February 2018; and

B. Waive all interest payments on any outstanding balance of this revolving interfund loan.

This interfund loan request is necessary due to pending expenditures in LOST IV until cash is received. Pending projects include the Navy Federal Economic Development Project ($1,000,000), Florida Department of Transportation (FDOT) Burgess Road Project ($1,000,000), and Open Grade Coal Mix (OGCM) ($250,000), including other LOST Projects totaling $11.6 million that are moving forward. LOST receipts average approximately $3.5 million per month based on the Fiscal Year 2017 revenues. LOST IV revenue receipts should begin February 2018.

BACKGROUND:

The proceeds attributed to LOST IV will begin following the termination of LOST III on December 31, 2017. In an effort to provide cash for the LOST IV Fund for projects that are in progress and interfund loan is necessary to pay vendors until cash is received.

There are pending expenditures in LOST IV until cash is received. Pending projects include the Navy Federal Economic Development Project ($1,000,000), FDOT Burgess Road Project ($1,000,000), and Open Grade Coal Mix (OGCM) ($250,000), including other LOST Projects totaling $11.6 million that are moving forward. LOST receipts average approximately $3.5 million per month based on the Fiscal Year 2017 revenues.

Interest on this interfund loan would be charged to one LOST Fund and received by another LOST Fund. This action would not benefit either fund, based on this assessment staff recommends waiving interest payments on this loan. It is anticipated that this loan will be repaid by September 30, 2020.

BUDGETARY IMPACT:

N/A

LEGAL CONSIDERATIONS/SIGN-OFF:

N/A

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

The Board must approve interfund loans.

IMPLEMENTATION/COORDINATION:

N/A

Attachments
Investment Policy Disclosure